News Roundup

The U.S. exported 36,718 metric tons (approx. 27.46 million gallons) of biodiesel and blends of B30 and greater in March, up from 29,252 in the same month last year, according to data released by the USDA Foreign Agricultural Service on May 4. During the month, the U.S. exported biodiesel to approximately six countries. Canada was the top destination at 31,587 metric tons, followed by Peru at 4,405.7 metric tons and Germany at 289 metric tons.

The value of U.S. biodiesel exports reached just over $61 million in March, nearly doubling from the previous month at $32.31 million, and up from $46.86 million in the same month last year.

Total U.S. biodiesel exports for the first quarter of 2023 reached 68,203 metric tons at a value of $116.14 million, compared to 71,324 metric tons exported during the same period of 2022 at a value of $108.15 million.

As for imports, the 146,427 metric tons of biodiesel and blends of B30 and greater imported in March was up compared to both the 123,302 metric tons imported in February and the 105,175 metric tons imported in March of last year. The U.S. imported biodiesel from approximately 10 countries in March. Germany was the primary source of U.S. biodiesel imports at 42,825 metric tons, followed by Canada at 40,483 metric tons and Spain at 30,363 metric tons.

The total value of U.S. biodiesel imports reached $256.78 million in March, up approximately $31 million from previous month, and up $94 million from March 2022.

Total U.S. biodiesel imports for the first three months of the year reached 402,766 metric tons at a volume of $737.41 million, compared to 183,878 metric tons imported during the same period of 2022 at a value of $275.23 million.

U.S. operable biofuels production capacity increased in February, with gains for ethanol, biodiesel and renewable diesel and associated fuels, according to data released by the U.S. Energy Information Administration on April 28. Total feedstock consumption was up slightly when compared to February 2022. Biodiesel capacity was at 2.063 billion gallons per year in February, up 12 MMgy when compared to January, but down 169 MMgy when compared to February 2022.

Total soybean oil consumption reached 910 million pounds in February, with 536 million pounds consumed by biodiesel plants and 374 million pounds consumed by renewable diesel facilities. Total soybean oil consumption was at 941 million pounds in January, including 557 million pounds consumed at biodiesel plants and 384 million pounds consumed at renewable diesel facilities. In comparison, soybean oil consumption was at 741 million pounds in February 2022, including 519 million pounds consumed by bio- diesel plants and 222 million pounds consumed by renewable diesel facilities.

According to the EIA, biofuel producers consumed 404 million pounds of yellow grease, 192 million pounds of beef tallow, 33 million pounds of white grease and 22 million pounds of poultry fat in February. The EIA withheld data on other types of waste oils, fats and greases consumed in order to avoid disclosure of individual company data.

The U.S. EPA on April 20 released data showing nearly 1.91 billion renewable identification numbers (RINs) were generated under the Renewable Fuel Standard in March, up from 1.82 billion generated during the same period of last year. Total RIN generation for the first quarter of 2023 reached 3.63 billion, down from 4.95 billion generated during the same quarter of 2022. Total D4 RIN generation for the first quarter of this year reached 1.66 billion. That volume includes 769.26 million generated for nonester renewable diesel by domestic producers, 547.26 million generated for biodiesel by domestic producers, 171.02 million generated for nonester renewable diesel by foreign entities, 160.62 million generated for biodiesel by importers, 4.64 million generated for renewable jet fuel by foreign entities, and 3.04 million generated for renewable jet fuel by domestic producers.

Total D5 RIN generation for the first quarter of the year reached 47.63 million. That volume includes 21.59 million generated for naphtha by domestic producers, 15.95 million generated for nonester renewable diesel by domestic producers, 7.78 million generated for ethanol by domestic producers, 1.09 million generated for renewable heating oil by domestic producers, 1.08 million generated for liquefied petroleum gas by domestic producers, and 147,104 generated for compressed RNG by domestic producers.

Nearly 1.22 billion D6 renewable fuel RINs were generated in March, including 1.02 billion generated for ethanol by domestic producers and 13.7 million generated for nonester renewable diesel by foreign entities.

Total D6 RIN generation for the first three months of 2023 reached 3.56 billion. That volume includes 3.52 billion generated for ethanol by domestic producers, 39.36 million generated for nonester renewable diesel by foreign entities, and 1.19 million generated for ethanol by importers.

No D7 cellulosic diesel RINs have been generated so far this year.

Cavitation Technologies Inc., a design and manufacturer of innovative flow-through nanotechnology systems for fluid processing applications, announced two purchase orders for its low-pres- sure Nano Reactor System from a biodiesel production facility in Colombia, South America, with an expected capacity of 400 metric tons per day. It will be Cavitation’s third installation in the country, the biodiesel industry of which is driven by palm oil.

Optimus Technologies announced a $17.8 million Series A funding round led by Mitsui & Co. out of Tokyo, Japan. The round included participation from one of North America’s largest commercial fleets, Chevron Renewable Energy Group, and Pittsburgh regional investors including: Idea Foundry Inc., Innovation Works, Richard King Mellon Foundation and Urban Redevelopment Authority of Pittsburgh. The capital raise will fund the further development and deployment of Optimus’ Vector System, an advanced fuel system technology that enables heavy-duty diesel engines to operate on B100 biodiesel.

PBF Energy Inc. reported in early May that the renewable diesel production unit under development as part of the St. Bernard Renewables project in Louisiana is mechanically complete. A feedstock pretreatment unit is under construction and scheduled for completion in June. Company officials discussed development of the project during a first quarter earnings call, held May 5. The SBR renewable diesel project is collocated with PBF Energy’s oil refinery in Chalmette, Louisiana. Once fully operational, the facility is expected to have the capacity to produce approximately 320 MMgy of biobased products, primarily renewable diesel. The biorefinery employs Ecofining technology developed by Eni in cooperation with Honeywell UOP

Oleo-X, a producer of premium renewable fuel feedstocks, announced the launch of its renewable diesel and sustainable aviation fuel feedstock merchant pretreatment facility. In addition to the facility launch, Oleo-X announced the appointment of longtime airline fuel executive Sergio Correa as CEO. Located in Pascagoula, Mississippi, Oleo-X's facility has the potential capacity to produce up to 300 MMgy of premium feedstock.

CVR Energy Inc. is continuing to ramp up renewable diesel production at its Wynnewood refinery in Oklahoma. Total vegetable oil throughput during the first quarter of 2023 was approximately 22.4 million gallons, up from 12.8 million gallons during the fourth quarter of last year, according to information released in the company’s first quarter financial report. CVR Energy CEO David Lamp discussed the company’s renewable diesel operations during the company's first quarter earnings call, held May 2. According to Lamp, CVR Energy is completing the second planned catalyst change in the renewable diesel unit. The company expects to see significant improvements in renewable diesel yield with the new catalyst, he said. Total throughput for the renewables unit is expected to range from 15 million to 22 million gallons during the second quarter

Marathon Petroleum Corp. released first quarter financial results on May 2, confirming the second phase of its renewables conversion project at the Martinez refinery in California is progressing on schedule and expected to be complete by year end. The Martinez project is being developed in partnership with Neste The biorefinery reached full Phase I production capacity of 260 MMgy during the first quarter of 2023. Phase II construction activities are progressing on schedule, according to the company, with feedstock pretreatment capabilities expected to come online during the second half of this year. By the end of 2023, the biorefinery is expected to be capable of producing 730 MMgy.

BBI International recently announced it has entered into a collaborative agreement with the Commercial Aviation Alternative Fuels Initiative to produce the first annual North American SAF Conference & Expo. The conference will be held at the Minneapolis Convention Center from Aug. 29-30, in downtown Minneapolis, Minnesota. This year’s inaugural North American SAF Conference & Expo will provide two days of content for the sustainable aviation fuel industry. The program is set to mirror much of CAAFI’s focus, which is to encourage the development of alternative jet fuel options that promote environmental improvement and energy supply security for aviation.

Calumet Specialty Products Partners LP on May 10 announced the first production and initial shipments of sustainable aviation fuel (SAF) to Shell Trading Co. from its Montana Renewables subsidiary, which operates a biorefinery located in Great Falls, Montana. A celebratory event was held on-site and included participation of key aviation stakeholders, as well as Montana Gov. Greg Gianforte.

In December, Calumet reported the biorefinery had generated a full month of on-spec renewable diesel and had commenced rail shipments of the product. During a May 5 quarterly earnings call, Calumet CEO Todd Borgmann confirmed that the biorefinery’s renewable hydrogen plant was commissioned during Q1, and noted that the feedstock pretreatment and SAF units were brought online in April.

Donnell Rehagen, CEO, Clean Fuels Alliance America