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Released March 25, 2022 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Renewable diesel is picking up momentum as an alternative fuel source. The U.S. Energy Information Administration (EIA) predicts the U.S. renewable-diesel supply (from both domestic production and net imports) will grow to 130,000 barrels per day (BBL/d) in 2022 and 145,000 BBL/d in 2050. Industrial Info is tracking about $14.8 billion worth of active renewable diesel projects in the U.S., more than $4.4 billion of which already are under construction.
Click in the image at right for an EIA graph detailing projections for renewable and biodiesel supply in the U.S. through 2050.
Renewable diesel and biodiesel are refined from the same types of fat, oil and grease feedstocks. But recent developments in sustainable energy have favored renewable diesel over biodiesel. Renewable diesel burns cleaner and can be used in engines that were designed to use petroleum diesel, as it has the same chemical structure. Renewable diesel also fares better in cold weather and can be transported via pipelines.
Indeed, renewable diesel's projected growth is attributed by the EIA to its compatibility with existing distribution infrastructure and engines, as well as increased state and federal targets for renewable fuel production; incentives from state and federal tax credits; and the conversion of existing petroleum refineries into renewable diesel refineries. But the EIA also projects renewable diesel and biodiesel together will account for less than 8% of the U.S. diesel production in 2050, with renewable diesel generally more expensive than biodiesel to produce.
Click in the image at right for a graph detailing the top 10 U.S. companies for active renewable-diesel investments, by total investment value.
Velocys plc (Oxford, England) is preparing to begin construction early next year on an estimated $1.5 billion renewable diesel plant in Natchez, Mississippi, one of the highest-valued U.S. projects of its kind. The plant will process 3,000 tons per day of woody biomass into synthesis gas, for production of 33 million gallons per year of renewable diesel and sustainable aviation fuel. Research and Markets recently predicted the global sustainable aviation fuel market will see a compound annual growth rate of nearly 61% from 2021-2027.
The Natchez project received a boost this week when a public-private project to rehabilitate a local short-line railway was completed, bolstering access to the site, according to The Natchez Democrat. Subscribers to Industrial Info's Global Market Intelligence (GMI) Alternative Fuel Project Database can learn more from a detailed project report.
Diamond Green Diesel LLC (DGD), a subsidiary of Valero Energy Corporation (NYSE:VLO), is at work on its $1.45 billion DGD 3 expansion project at its renewable diesel complex in Port Arthur, Texas, which follows the completion of the DGD 2 expansion that started operations in the fourth quarter, on budget and ahead of schedule. Subscribers can read detailed reports on the DGD 2 and DGD 3 projects.
"This [DGD 2] expansion brings DGD's total annual renewable diesel capacity to 700 million gallons," said Joe Gorder, the chief executive officer of Valero, in an earnings-related conference call earlier this year. "Looking ahead, the DGD 3 project at our Port Arthur refinery is progressing ahead of schedule, and is now expected to be operational in the first quarter of 2023. With the completion of this 470 million-gallon-per-year plant, DGD's total annual capacity is expected to be 1.2 billion gallons of renewable diesel and 50 million gallons of renewable naphtha."
Renewable Energy Group Incorporated (Ames, Iowa) began construction in October on $950 million worth of upgrades and expansions to its renewable diesel plant in Geismar, Louisiana, which will increase the site's production capacity from 90 million to 340 million gallons, while improving operational reliability and logistics. The project, which is expected to be completed by the end of 2023, has been supported by tax incentives and other actions from the state of Louisiana. Subscribers can learn more from Industrial Info's detailed project report.
Chevron Corporation (NYSE:CVX) (San Ramon, California) agreed last month to purchase Renewable Energy Group in a $3.15 billion cash deal, in an effort to diversify Chevron away from purely fossil fuels. The deal is expected to close in the second half of the year. Chevron announced last year it would more than triple its investments in renewables to about $10 billion through 2028, including about $3 billion on renewable fuels.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
Click in the image at right for an EIA graph detailing projections for renewable and biodiesel supply in the U.S. through 2050.Renewable diesel and biodiesel are refined from the same types of fat, oil and grease feedstocks. But recent developments in sustainable energy have favored renewable diesel over biodiesel. Renewable diesel burns cleaner and can be used in engines that were designed to use petroleum diesel, as it has the same chemical structure. Renewable diesel also fares better in cold weather and can be transported via pipelines.
Indeed, renewable diesel's projected growth is attributed by the EIA to its compatibility with existing distribution infrastructure and engines, as well as increased state and federal targets for renewable fuel production; incentives from state and federal tax credits; and the conversion of existing petroleum refineries into renewable diesel refineries. But the EIA also projects renewable diesel and biodiesel together will account for less than 8% of the U.S. diesel production in 2050, with renewable diesel generally more expensive than biodiesel to produce.
Click in the image at right for a graph detailing the top 10 U.S. companies for active renewable-diesel investments, by total investment value.Velocys plc (Oxford, England) is preparing to begin construction early next year on an estimated $1.5 billion renewable diesel plant in Natchez, Mississippi, one of the highest-valued U.S. projects of its kind. The plant will process 3,000 tons per day of woody biomass into synthesis gas, for production of 33 million gallons per year of renewable diesel and sustainable aviation fuel. Research and Markets recently predicted the global sustainable aviation fuel market will see a compound annual growth rate of nearly 61% from 2021-2027.
The Natchez project received a boost this week when a public-private project to rehabilitate a local short-line railway was completed, bolstering access to the site, according to The Natchez Democrat. Subscribers to Industrial Info's Global Market Intelligence (GMI) Alternative Fuel Project Database can learn more from a detailed project report.
Diamond Green Diesel LLC (DGD), a subsidiary of Valero Energy Corporation (NYSE:VLO), is at work on its $1.45 billion DGD 3 expansion project at its renewable diesel complex in Port Arthur, Texas, which follows the completion of the DGD 2 expansion that started operations in the fourth quarter, on budget and ahead of schedule. Subscribers can read detailed reports on the DGD 2 and DGD 3 projects.
"This [DGD 2] expansion brings DGD's total annual renewable diesel capacity to 700 million gallons," said Joe Gorder, the chief executive officer of Valero, in an earnings-related conference call earlier this year. "Looking ahead, the DGD 3 project at our Port Arthur refinery is progressing ahead of schedule, and is now expected to be operational in the first quarter of 2023. With the completion of this 470 million-gallon-per-year plant, DGD's total annual capacity is expected to be 1.2 billion gallons of renewable diesel and 50 million gallons of renewable naphtha."
Renewable Energy Group Incorporated (Ames, Iowa) began construction in October on $950 million worth of upgrades and expansions to its renewable diesel plant in Geismar, Louisiana, which will increase the site's production capacity from 90 million to 340 million gallons, while improving operational reliability and logistics. The project, which is expected to be completed by the end of 2023, has been supported by tax incentives and other actions from the state of Louisiana. Subscribers can learn more from Industrial Info's detailed project report.
Chevron Corporation (NYSE:CVX) (San Ramon, California) agreed last month to purchase Renewable Energy Group in a $3.15 billion cash deal, in an effort to diversify Chevron away from purely fossil fuels. The deal is expected to close in the second half of the year. Chevron announced last year it would more than triple its investments in renewables to about $10 billion through 2028, including about $3 billion on renewable fuels.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
