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...
Capacity Transitions from Biodiesel to Renewable Diesel in December – EIA
U.S. renewable fuel capacity fell to a four-month low during December due to a 145 million gallon per year (mgy) drop in biodiesel capacity and a 43 mgy decline in ethanol capacity. These declines were partially offset by renewable diesel capacity expanding 89 mgy as the market continues to transition from biodiesel to renewable diesel production.
Total December biofuel operable production was pegged at 20.735 billion gallons, down from 20.834 billion in November.
Comparing the EPA’s EMTS fuel consumption data with the U.S. Energy Information Administration’s (EIA) capacity data, total domestic biofuel production was running at 91 percent of capacity in December. Ethanol output was 89 percent of capacity, biodiesel production was 88 percent, and renewable diesel/other biofuel was 120 percent of EIA projected capacity for the month.
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