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Valero impacted by lower renewable diesel margins in Q4, SAF project progressing on schedule

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By Erin Voegele

January 30, 2024

Advanced BiofuelsBusiness

Valero Energy Corp. released Q4 financial results on Jan. 25, reporting an increase in renewable diesel production volumes despite lower margins. The SAF project under development in Texas remains on schedule for completion next year.

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Honeywell announced that Acelen Renewables has selected its Ecofining technology to help support the efficient production of a targeted 20,000 barrels per day SAF and renewable diesel at its facility in Bahia, Brazil.

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Biomass Magazine has announced the general session speakers for the 17th Annual International Biomass Conference & Expo taking place March 4-6, 2024 at the Greater Richmond Convention Center in Richmond, Virginia.

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Topsoe on Jan. 23 announced it has signed a licensing and engineering agreement with Preem to provide its HydroFlex technology for renewable diesel and SAF production to Preem’s refinery conversion project in Lysekil, Sweden.

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The U.S. EPA’s 2023 RFS data shows that U.S. production of biomass-based diesel – including biodiesel, renewable diesel, SAF, and heating oil – reached 4 billion gallons in 2023, according to Clean Fuels Alliance America.

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The International Energy Agency released a new report on Jan. 11, Renewables 2023, predicting that global biofuel demand will expand by 38 billion liters (10.4 billion gallons) between 2023 and 2028.

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Ethanol Producer Magazine and BBI International announced that they are now accepting speaker presentation proposals for the 2024 International Fuel Ethanol Workshop & Expo. The event will be held June 10-12, 2024, in Minneapolis, Minnesota.

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The USDA recently awarded two Delaware State University researchers a three-year just under $300,000 grant for a project that could leverage the properties of microalgae toward energy and cancer treatment purposes.

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In research supported by the U.S. DOE Bioenergy Technologies Office, a team of scientists examined the unique properties of phosphorus uptake in the algal strains living in the Revolving Algal Biofilm (RAB) systems.

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Neste has completed the strategic study launched in September 2022, and begins a gradual transformation of its crude oil refinery in Porvoo, Finland into a leading renewable and circular solutions refining hub.

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The government of British Columbia on Dec. 11 released regulations for its revamped low carbon fuels program, becoming the first jurisdiction in North America to require the use of sustainable aviation fuels (SAF).

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Biomass Magazine on Dec. 6 released the agenda for the 17th Annual International Biomass Conference & Expo taking place March 4-6, 2024 at the Greater Richmond Convention Center in Richmond, Virginia.

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Swedish fuel company Preem on Nov. 27 announced it will invest SEK 5.5 billion ($532.82 million) to convert its refinery in Lysekil, Sweden, to produce renewable diesel and sustainable aviation fuel (SAF).

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Santa Maria Renewable Resources has selected Topsoe as its technology provider and will implement the company’s Hydroflex and H2bridge technologies at its planned biorefinery in Texas. Chemex Global will provide FEED for the plant.

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The U.S. Department of Commerce’s International Trade Administration has announced its Renewable Energy and Energy Efficiency Advisory Committee will hold a virtual meeting on Nov. 30. The meeting is open to the public, but registration is required.

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Reps. Nikki Budzinski, D-Ill., and Zach, Nunn, R-Iowa, on Nov. 15 announced the introduction of a bill that aims to update the USDA’s Biorefinery, Renewable Chemical and Biobased Products Assistance loan guarantee program.

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Gevo Inc. released Q3 financial results on Nov. 13, reporting that company has completed a planned capacity expansion of its RNG operations and is in the formal due diligence stage with the U.S. DOE regarding a loan guarantee for its SAF project.

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Aemetis expects to secure the authority to construct air permit for its proposed SAF/RD project in early 2024, according statements made during a Q3 earnings call. Company officials also discussed ongoing biogas, ethanol, biodiesel and CCS projects.

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Emerson, a leader in industrial software and technology, has been chosen by DG Fuels to provide comprehensive automation and project engineering to help transportation sector decarbonization efforts through production of advanced biofuels.

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Honeywell has announced that CVR Renewables CVL LLC will utilize its Ecofining technology in its evaluation of a potential project that would produce sustainable aviation fuel (SAF), renewable diesel and other products.

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Novozymes, a global leader in biosolutions, marks a significant milestone in the renewable diesel and SAF industry with the launch of Quara LowP, an enzymatic solution designed to transform the feedstock pre-treatment process.

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Eni and Saipem on Nov. 6 signed an agreement for the development of biorefining. The agreement supports the development of biorefineries for the production of renewable diesel and sustainable aviation fuel (SAF).

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Southwest Airlines Co. on Nov. 2 announced an offtake agreement with USA BioEnergy LLC for up to 680 million gallons of neat sustainable aviation fuel (SAF) to be delivered over a 20-year period from USA Bioenergy’s proposed facility in Texas.

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CVR Energy Inc. processed a record volume of renewable feedstock at its Wynnewood refinery during Q4. The facility’s feedstock pretreatment unit is nearing mechanical completion and CVR is continuing to evaluate the possibility of producing SAF.

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Sens. Amy Klobuchar, D-Minn., and Jerry Moran, R-Kan., on Oct. 26 announced the introduction of a bill that aims to update the USDA’s Biorefinery, Renewable Chemical and Biobased Products Assistance loan guarantee program.

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Seventy industry leaders covering nearly the entire supply chain for SAF, including major airlines, are calling on the Biden Administration to recognize the GREET model as a “similar methodology” for purposes of the IRA’s SAF tax credit.

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Phillips 66 has confirmed the renewables conversion of its refinery in Rodeo, California, is progressing on schedule with startup expected in Q1 2024. Once fully operational, the facility will have the capacity to produce 800 MMgy of renewable fuels.

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Valero Energy Corp. released Q3 financial results on Oct. 26, reporting significantly higher earnings and production volumes for its ethanol segment. Renewable diesel sales volumes were also up and the company’s SAF project remains on schedule.

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Neste Corp. released third quarter financial results on Oct. 26, reporting a 40 percent increase in comparable EBITDA for its Renewable Products segment. Margins and sales volumes for renewable diesel and SAF were also up.

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The call for presentation abstracts for the 17th Annual International Biomass Conference & Expo, produced by Biomass Magazine, is now open. The event will take place March 4-6, 2024, at the Greater Richmond Convention Center in Richmond, Virginia.

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