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US Biodiesel Update: Increased Production and Usage Amplifies Market

US Biodiesel Update: Increased Production and Usage Amplifies Market

The US biodiesel market is moving upward very quickly.

We're seeing investments in this renewable fuel in US-based business and governmental operations nationwide.

This post highlights several newsworthy announcements and initiatives centered on the emerging biodiesel market.

Lincoln, Nebraska Invests in Renewables with B20 Biodiesel in Municipal Fleet

The city of Lincoln, Nebraska has acquired financial backing from the Nebraska Soybean Board (NSB) to incorporate B20 biodiesel into its municipal fleet.

This biodiesel incentive plan marks a crucial point in Lincoln's continuing commitment to sustainability and a deliberate move to reduce carbon emissions.

The project involves substituting 215,000 gallons of petroleum diesel with B20 biodiesel. The change will impact close to 130 service vehicles.

The term 'B20' refers to a 20% blend of biodiesel in a gallon of fuel. B20 can be directly used in the city's fleet without requiring any modification to the current equipment or facilities.

Mayor Leirion Gaylor Baird expressed his gratitude to the Nebraska Soybean Board for choosing Lincoln to receive these funds. Incorporating biodiesel into the city's fleet will assist in reducing its carbon footprint and achieving its broader sustainability goals.

Lifecycle emissions of biodiesel are 74% less than that of regular diesel. Switching to biodiesel will produce a cumulative effect that will continue expanding as other sustainability initiatives are adopted.

The move directly connects with Lincoln's Climate Action Plan, aimed at cutting 80% of greenhouse gas emissions by 2050. An approximately 13% increase in the price per soybean bushel could also improve the farmers' financial prospects.

(Source: Nebraska TV News)

Marathon’s Martinez Renewable Biorefinery Expected to Reach 100% Capacity by Year’s End

Marathon Petroleum Co. has confirmed that its Martinez Renewable Fuels biorefinery in California is currently running at about half of its maximum potential. But the good news is that the company anticipates achieving full capacity before the year's end.

The recent Martinez biorefinery operations were a part of Marathon's Q1 earnings report. As a former Marathon oil refinery for fossil fuels, the facility has been transformed into a renewable diesel biorefinery. This comes thanks to a 2022 joint venture between Marathon and Neste Corp.

The Martinez Renewables facility kickstarted operations in early 2023. But a late 2023 fire derailed progress, with current capacity at around 50%.

During the earnings call, Marathon's president, Maryann Mannen, indicated ongoing work with regulators to determine necessary repairs and to guarantee future secure, stable operations. The facility will maintain its 50% capacity into the second quarter of 2024. By mid-third quarter, operations are projected to increase to 75% of capacity.

Full capacity, approximately 48,000 lb barrels per day, is expected to occur by the end of the year.

(Source: Biodiesel Magazine)

Michigan Bill Proposes Tax Credits to Encourage Biodiesel Availability

Biodiesel advocates are pushing Michigan legislators to implement a tax incentive to hasten the production and distribution of the fuel.

Even though two factories located in the state produce more than 16 million gallons of biodiesel each year, the fuel isn't widely available.

According to a recent study of 250 retail fuel outlets across Michigan, only three stations offered biodiesel blends of B5 to B20.

Mark Schrupp, Chief of the Detroit Wayne County Port Authority, recently said that the port's cargo activities generate upwards of 27,000 tons of carbon emissions annually. He believes biodiesel is the quickest solution for achieving emission reduction targets.

Schrupp argued that the most effective strategy for immediate emission reduction is biodiesel utilization. This will come with increased biodiesel availability at fuel centers throughout Southeast Michigan. The move will enable truck drivers to opt for biodiesel and consequently enhance air quality.

Representing Clean Fuels Alliance America, Jeff Earl noted that House Bill 4847, mirroring similar laws in the Midwest, will trigger a value-added ripple effect on local communities.

The raw materials grown and processed in these states contribute to the local economies, adding value.

House Bill 4847 proposes tax credits for fuel retailers, offering $0.02 per gallon for the sale of B5+ fuel and $0.05 per gallon for B11+ fuel until the end of 2029.

(Source: Michigan Legislature)

Biodiesel Usage Up in US Farming Operations

The Nebraska Soybean Board (NSB) has acknowledged a marked increase in the use of biodiesel in farming operations.

Wesley Wach, NSB's demand and utilization coordinator, recently noted that biodiesel provides a cleaner alternative to petroleum-based diesel. Switching to renewables contributes significantly to emissions reduction.

In the early days of biodiesel, adopters experienced unexpected challenges. This included issues around pricing spikes and performance issues in the equipment, amongst others.

However, similar to the progression of cell phone technology, the know-how behind biodiesel has vastly improved over time.

The Nebraska Soybean Board has actively participated in this journey, hosting informative biodiesel workshops to debunk misconceptions about the fuel. The board’s work connects the farming community with the resources needed to address biodiesel-related concerns or queries.

Wach also pointed out the impressive growth of biodiesel, which has mushroomed into an industry exceeding 2 billion gallons per year. Ongoing research and funding have played a crucial role in this industry's growth, and it’s only looking up from here.

(Source: WJAG)

Biodiesel Price Reporting and Insights Made Easy

ResourceWise provides a wealth of pricing data, market intelligence, and expert insights across the global biodiesel markets. Our online platform Prima CarbonZero gives subscribers access to weekly reports for all relevant market sectors:

  • Green Diesel North America
  • Green Diesel South America
  • Green Diesel Europe
  • International Vegetable Oils

Our data reflects decades of collective knowledge and experience within the rapidly emerging biofuels sector. Learn more about all the ways ResourceWise can help your organization’s own transition into renewables with Prima CarbonZero.