Persistent volatility drives consistent uncertainty for renewable diesel and biodiesel producers. With increased regulatory action and production growth on the horizon, alongside mounting geopolitical tensions, stakeholders need a weekly insight into their operational costs and returns.
What happened?
US renewable diesel (RD) margins pulled back from four-month highs last week as losses in the April Nymex ULSD contract outpaced feedstock declines.
SBO gained leaving biodiesel margins at the lowest level in two and a half months.
Used cooking oil (UCO) remained the highest returning feedstock last week followed by Bleached Fancy Tallow (BFT). SBO bucked the trend amid continued gains.
RINs proved modestly supportive to the margin environment as 2023 vintage D4 firmed amid carry-through buying following comments to the EPA from the advanced biofuel industry urging for higher mandates.
The California Low Carbon Fuel Standard (LCFS) market surged as the California Air Resource Board held a hawkish workshop.
PBF and ENI announced a 50/50 joint venture, St. Bernard Renewables LLC, to run a new plant in Chalmette, Louisiana. The 360mn gallons/yr facility is expected to come online during the first half of 2023 and will include full pretreatment allowing the consumption of 1.1mn t/yr of feedstock consumption.
