A biofuels market specialist says demand has been increasing for biomass-based diesel.
Paul Nees, general manager of global supply and trading with Chevron Renewable Energy Group, says new production capacity has been coming online. “So much so that we’re actually starting to see some compression of margins as the production of the fuels has outpaced the mandates from the Renewable Volume Obligations.”
He tells Brownfield the U.S. EPA’s RVO levels need to be a focus for the industry. “Renewable Volume Obligations already set for 2025. But we’ll start the rule making process for 2026 and forward. The EPA will start collecting information and making some decisions, collecting input from the industry.”
Earlier this year, Chevron REG shutdown two of its Midwestern biodiesel plants citing poor market conditions resulting from weak biodiesel volumes under the federal Renewable Fuel Standard.
Nees says higher volume targets in 2026 will be critical to the future of biomass-based diesel production.
Click here for the interview.
Originally shared by Brownfield News, July 5, 2024. Title updated for clarity and purpose, July 8, 2024.