A poor market environment and lack of clarity regarding the Clean Fuel Production Credit (CFPC) may have had an impact on several biofuel producers, causing either a suspension of operations or an exit from the industry.
On May 9, US refiner Vertex Energy announced its decision to suspend renewable diesel production at its refinery in Mobile, Alabama. This echoes Chevron’s March 1 decision to suspend roughly 77 million gallons of capacity. Economic indications are expected to pressure additional plant closures in coming months.
According to investment bank UBS, almost all petroleum refiners are now invested in renewable diesel production, and these assets are under pressure from an earnings standpoint, due to overcapacity.
Many refiners have had a year of straight losses and will need to decide if they really want to remain in the business.
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10.04.2024
US RD interregional shipments decline to 6-month low in July: EIA
The US Energy Information Administration’s (EIA) Petroleum Supply Monthly report released Monday September 30, showed that July interregional shipments of renewable diesel (RD) and biodiesel to the US West...
10.04.2024
Geopolitical tensions, policy uncertainty stymies US animal fats, oils trade
The Missouri River choice white grease (CWG) market moved to a low of 42.5 cents per lb FOB after trading was done late on Thursday October 3.
Distiller’s...
10.04.2024
Hurricane Helene impact on US animal proteins still unknown
US animal proteins prices were steady on Friday October 4, with most participants working on logistical challenges for the current and upcoming week.
Hog producers and production facilities...