What’s Ahead in the FOG Markets?
Rising Tide – What’s Ahead in the FOG Markets Ryan Standard, Fastmarkets / The Jacobsen The following video is a capture from The Jacobsen Fuels & Feedstocks Virtual Conference...
The Environmental Protection Agency (EPA) reported 1.42 billion gallons of renewable fuel was consumed during April, a four percent decline from March but 55 percent above April 2020. Renewable Fuel Standard (RFS) credit generation slipped 4.5 percent to 1.57 billion credits but was 49 percent over April 2020.
Biomass-based diesel (D4) output declined 4.9 percent in April but was 6.3 percent higher than it was in April 2020. During April, biodiesel consumption slipped two percent, renewable diesel use declined 12 percent, and renewable jet fuel production was 1.5 percent higher month over month. In year over year comparisons, biodiesel consumption is down four percent compared to April 2020, renewable diesel, despite its monthly decline, is up 12 percent, and renewable jet fuel consumption is 76 percent lower.
Advanced biofuel (D5) credit generation accounted for a large portion of the overall program decline in April. Credit production declined 27 percent from March, largely driven by a reduced co-processed renewable diesel and naphtha consumption. Co-processed renewable diesel is renewable diesel that is produced when an oil company adds renewable feedstock to the traditional petroleum refining process. This type of renewable diesel is only allowed under the D5 fuel code. Co-processed renewable diesel output reached a 16-month low in April.
The D6 conventional renewable fuel category saw demand fall in April after pushing sharply higher in March. March D6 consumption was five percent below March bit 76 percent over April 2020. The decline is attributed to a five percent drop in non-cellulosic ethanol consumption.
D4 biomass-based diesel production was 246.3 million gallons during April (biodiesel 161.52 million; RD 82.36 million; renewable Jet 293,289), generating 386.1 million credits. D4 production has reached 889.5 million gallons for the year and has filled 37 percent of the D4 mandate.
Total biodiesel and renewable diesel consumption, which includes consumption within the D5 and D6 fuel codes, as well as the D4 code, was 254.9 million gallons in April, six percent under March but five percent over April of 2020. Total renewable diesel and biodiesel production has reached 933.7 million gallons for the year.
Aprils domestic biodiesel production of 144.3 million gallons was four percent below March, while imports of 17.2 million gallons were 13.6 percent over March. Domestic March renewable diesel consumption of 50.2 million gallons was 15 percent below March, while imports of 43.1 million gallons were seven percent lower.
Total April RFS renewable fuel consumption was four percent below March but 55 percent over April 2020. For the year, 5.3 billion gallons of renewable fuel have been consumed, generating 5.9 billion RFS credits.