04.26.2024
P66 Rodeo to begin producing SAF in Q3
Phillips 66 brought its long-awaited Rodeo Renewable Energy Complex online during the first quarter of 2024, but it is not producing sustainable aviation fuel (SAF) yet, the company said...
Falling soybean oil prices coupled with improved biodiesel values in the Midwest lifted margins for soybean oil-based biodiesel to levels not seen since the first quarter of 2020. During the week ending November 5, 2021, crude-degummed soybean oil prices reached a six-week low at just under 65 cents per pound. Biodiesel prices in parts of the Midwest climbed to $5.64, a 12-week high. These prices were inclusive of governmental production credits.
Soybean oil-based biodiesel margins have covered estimated variable costs in four of the past five weeks and have covered estimated total cost in each of the past two weeks. Positive margins when using soybean oil as a feedstock has been elusive over the past year. While fixed costs are not the same for all plants, using an estimation from Iowa State University indicates margins have covered all costs in only seven…