11.22.2024
Biodiesel margins rise, but window of opportunity limited
Biodiesel margins continued to rise during the week to Friday November 22. The bean oil/heating oil (BOHO) spread boosted margins by falling to its lowest level since August 27.
In August of 2023, Montana Renewables (MRL) reported a leak in the steam recovery system on their renewable hydrogen plant. The plant was able to continue operations with a projected run rate of 8,000 bpd. MRL has a production capacity of 12,000 bbd of renewable fuel. The leak was anticipated to be repaired in September.
MRL provided a subsequent update October 20, 2023, stating that after fully inspecting the identified leak in the steam recovery system, the company decided to replace the steam drum rather than repair it. The replacement was expected to be completed in November and MRL moved forward their planned 2024 turnaround to coincide with the replacement.
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