Biomass-based diesel suppliers face a challenging market environment for facilities that have been using soybean oil as their sole or major feedstock choice, sources said. Fluctuations in feedstock costs have caused margins to compress since the third quarter of 2023.
Incremental operations that either use soybean oil as their main feedstock, do not have pre-treatment capabilities of their own, and/or do not have feedstock flexibility, are finding themselves in a difficult economic situation, according to market participants.
Several soybean oil based, non-vertically integrated biodiesel facilities have either idled or are currently idling because the economics are not in place to continue. Chevron closed two facilities this year, and the company is known for its feedstock flexibility.
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10.17.2024
US DOE to guarantee nearly $3 billion in SAF loans to Gevo, Montana Renewables
The US Department of Energy’s Loan Programs Office announced on Wednesday October 16 conditional commitments for up to $2.9 billion in loans for two sustainable aviation fuel (SAF) producers.
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US fats and oils markets quiet amid industry event; DCO production up
The US animal fats and oils markets were quiet on Thursday October 17, with the majority of participants attending the American Fats and Oils Association (AFOA) event in Nashville.
The...
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US animal proteins market steady on October 17
US animal protein prices were steady on Thursday October 17, with market participants indicating a slow day for trading.
September USDA Feed Outlook
Grain consuming animal units (GCAUs)...