05.17.2024
Uncertainty with 45z tax credit may affect Q1 2025 biofuel contracts
The expiring BTC provides a one dollar per gallon blenders credit up front with an additional 30 to 40 cents of credit to producers on the backend. Crimson...
Glycerin Supply Remains Constrained
Biomass-based diesel consumption has reached 1.913 billion gallons through August 2021 in the EPA’s D4 fuel code. This is up 3.4 percent from 2020. Within all fuel codes, biodiesel, and renewable diesel consumption are at 1.995 billion gallons combined. Total biodiesel and renewable diesel consumption (within all fuel codes) are up 3.5 percent relative to 2020 through the same January through August period.
At first blush, this might seem bullish for glycerin supply, but since biodiesel and renewable diesel differ in their production process, they also differ in the by-products produced. Glycerin is a byproduct of biodiesel production, not of renewable diesel production.
Renewable diesel production through August 2021 is 27 percent over 2020 through the same timeframe. Biodiesel production is 7.5 percent below 2020. Through August 2021, biodiesel production is 98.6 million…