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.
US sustainable aviation fuel (SAF) production could surge to nearly 30,000 barrels per day by the end of 2024, from 2,000 bpd at the start of the year, should all announced capacity additions come on line, the US Energy Information Administration (EIA) said on Wednesday July 17 in its “Today in Energy” report.
The increased production will come mostly from two domestic facilities — Phillips 66’s Rodeo Renewed refinery, which is expected to produce as much as 10,000 bpd of SAF this summer, and Diamond Green Diesel’s Port Arthur SAF project, which is likely to churn out around 15,000 bpd of the fuel by year’s end.
Historically, SAF has accounted for just a small portion of total US biofuels production due to limited capacity. At the beginning of 2024, only two plants were capable of producing SAF in the US — World Energy’s facility in Paramount, California, and Montana Renewables’ plant in Great Falls, Montana.
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