Reports related to this article:
Project(s): View 6 related projects in PECWeb
Plant(s): View 9 related plants in PECWeb
Released December 14, 2021 | SUGAR LAND
en
Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--The industrial energy transition is creating several billion-dollar opportunities, such as renewable diesel and biodiesel fuels. To stay ahead in this fast-growing niche industry, IIR Energy is now offering a new service so users can track existing facilities, new-build projects, refinery conversions, unit additions and expansions, including both scheduled and unscheduled offline events for these commodities.
Industrial Info is tracking the scheduled start of construction on about 70 renewable diesel and biodiesel projects through 2025 across North America, valued at about $19.5 billion.
The North American market regions with the largest amount of renewable diesel and biodiesel capital projects under development are the Southwest U.S., Western Canada, U.S. West Coast and Southeast U.S. The growing and broad demand for these commodities is promoting construction of new capacity in these key market regions, as well as Atlantic Canada, U.S. Mid-Atlantic, Ontario and Mexico.
Click on the image at right to see which North American market regions have the largest dollar value of planned capital projects for renewable diesel and biodiesel.
Renewable diesel and biodiesel are similar, although not chemically identical. Renewable diesel is a fuel produced from biomass sources through a variety of biological, thermal and chemical processes. It turns vegetable oils, animal fats, greases, algae and cellulosic material--like crop residues and woody biomass--into a transportation fuel. Renewable diesel can be used in traditional diesel engines as a 100% replacement fuel.
Biodiesel also is produced from vegetable oils, animal fats and recycled restaurant grease, although it does not use any cellulosic materials as feedstock. To be used in traditional diesel engines, biodiesel must first be blended with petroleum diesel.
A growing number of refineries in the U.S. are converting some or all of their traditional petroleum-based capacity to produce renewable diesel.
"Consumer and investor expectations are helping drive investment in these more sustainable transportation fuels," said IIR Energy President Paul Copello. "Consumers want cleaner, more sustainable transportation fuel options. Investors are applying more environmental screens to their investments. Thus, the burgeoning market for renewable diesel and biodiesel."
To ensure IIR Energy's data platform accurately show the dynamism of these markets, the platform is updated regularly by IIR Energy's market-leading researchers.
Today, North American petroleum refineries can produce up to about 44,000 barrels per day (BBL/d) of renewable diesel. By 2025, however, the 44 new units that are scheduled to be built will be capable of producing about 413,500 BBL/d of renewable diesel, according to IIR Energy's Global Marketing Intelligence (GMI) platform. Production capacity is scheduled to grow more than 900%.
Currently, North American biodiesel production facilities have the capability to produce roughly 110,000 BBL/d of fuel. But by yearend 2025, 14 projects under development will add about 14,000 BBL/d to that capacity. Production capacity is scheduled to expand about 13%.
North American biodiesel facilities can produce more fuel today than renewable diesel because the biodiesel has been in the market for decades. "Renewable diesel is the newer product, and its ability to directly substitute petroleum diesel makes it a far higher value product than biodiesel," Copello said. Demand for renewable diesel is expected to soar over the next few years compared with demand for the more traditional biodiesel.
"As the global energy market transitions, IIR Energy has been developing new energy information services to help refiners, traders, analysts and bankers track this dynamic market and identify profitable new opportunities," he added.
"Our new service will enable users to position their companies favorably in this dynamic market by planning around scheduled outages and executing profitable trades," Copello predicted. "It also will help refiners reposition their product slate while responding to the expectations of ESG (Environmental, Social and Governance) concerns of their investors."
For more information, send a note to iirteam@iirenergy.com to learn more about this new service as well as other services under development to help clients more easily and profitably navigate the energy transition.
A unit of Industrial Info Resources, IIR Energy provides real-time, supply-side global market intelligence for the commodity-trading community, including physical and financial traders, investors, analysts and asset owners. Energy asset infrastructure and production intelligence is now more important than ever for predictive modeling. Having a resource you can rely on for quality market intelligence through primary research is key to profitable trading. IIR Energy is the source for traders when it comes to real-time knowledge of offline events for power generation stations, oil and gas pipelines, terminals and production facilities, as well as petrochemical and petroleum refineries.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
Industrial Info is tracking the scheduled start of construction on about 70 renewable diesel and biodiesel projects through 2025 across North America, valued at about $19.5 billion.
The North American market regions with the largest amount of renewable diesel and biodiesel capital projects under development are the Southwest U.S., Western Canada, U.S. West Coast and Southeast U.S. The growing and broad demand for these commodities is promoting construction of new capacity in these key market regions, as well as Atlantic Canada, U.S. Mid-Atlantic, Ontario and Mexico.
Renewable diesel and biodiesel are similar, although not chemically identical. Renewable diesel is a fuel produced from biomass sources through a variety of biological, thermal and chemical processes. It turns vegetable oils, animal fats, greases, algae and cellulosic material--like crop residues and woody biomass--into a transportation fuel. Renewable diesel can be used in traditional diesel engines as a 100% replacement fuel.
Biodiesel also is produced from vegetable oils, animal fats and recycled restaurant grease, although it does not use any cellulosic materials as feedstock. To be used in traditional diesel engines, biodiesel must first be blended with petroleum diesel.
A growing number of refineries in the U.S. are converting some or all of their traditional petroleum-based capacity to produce renewable diesel.
"Consumer and investor expectations are helping drive investment in these more sustainable transportation fuels," said IIR Energy President Paul Copello. "Consumers want cleaner, more sustainable transportation fuel options. Investors are applying more environmental screens to their investments. Thus, the burgeoning market for renewable diesel and biodiesel."
To ensure IIR Energy's data platform accurately show the dynamism of these markets, the platform is updated regularly by IIR Energy's market-leading researchers.
Today, North American petroleum refineries can produce up to about 44,000 barrels per day (BBL/d) of renewable diesel. By 2025, however, the 44 new units that are scheduled to be built will be capable of producing about 413,500 BBL/d of renewable diesel, according to IIR Energy's Global Marketing Intelligence (GMI) platform. Production capacity is scheduled to grow more than 900%.
Currently, North American biodiesel production facilities have the capability to produce roughly 110,000 BBL/d of fuel. But by yearend 2025, 14 projects under development will add about 14,000 BBL/d to that capacity. Production capacity is scheduled to expand about 13%.
North American biodiesel facilities can produce more fuel today than renewable diesel because the biodiesel has been in the market for decades. "Renewable diesel is the newer product, and its ability to directly substitute petroleum diesel makes it a far higher value product than biodiesel," Copello said. Demand for renewable diesel is expected to soar over the next few years compared with demand for the more traditional biodiesel.
"As the global energy market transitions, IIR Energy has been developing new energy information services to help refiners, traders, analysts and bankers track this dynamic market and identify profitable new opportunities," he added.
"Our new service will enable users to position their companies favorably in this dynamic market by planning around scheduled outages and executing profitable trades," Copello predicted. "It also will help refiners reposition their product slate while responding to the expectations of ESG (Environmental, Social and Governance) concerns of their investors."
For more information, send a note to iirteam@iirenergy.com to learn more about this new service as well as other services under development to help clients more easily and profitably navigate the energy transition.
A unit of Industrial Info Resources, IIR Energy provides real-time, supply-side global market intelligence for the commodity-trading community, including physical and financial traders, investors, analysts and asset owners. Energy asset infrastructure and production intelligence is now more important than ever for predictive modeling. Having a resource you can rely on for quality market intelligence through primary research is key to profitable trading. IIR Energy is the source for traders when it comes to real-time knowledge of offline events for power generation stations, oil and gas pipelines, terminals and production facilities, as well as petrochemical and petroleum refineries.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
