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CoBank: Policy uncertainty negatively impacts biobased diesel producers

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By Erin Voegele

3 hours ago

Advanced Biofuels Markets Business Policy 

CoBank latest quarterly research report highlights current challenges facing the biobased diesel industry. The report cites policy uncertainty and trade disruptions due to tariff disputes as factors impacting biofuel producers.

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The USDA on April 14 announced the cancellation of its Partnerships for Climate-Smart Commodities program. Select projects that meet certain requirements may continue under a new Advancing Markets for Producers initiative.

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The governors of Iowa, Nebraska, South Dakota and Missouri on April 10 sent a letter to U.S. EPA Administrator Lee Zeldin urging the agency to set higher Renewable Fuel Standard renewable volume obligations (RVOs).

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President Donald Trump on April 8 issued an executive order that aims to protect oil, natural gas, coal, hydropower, geothermal, biofuel, critical mineral, and nuclear energy resources from state overreach.

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Growth Energy and Clean Fuels Alliance America on April 14 filed a reply brief in a case challenging the U.S. EPA for its failure to reallocate gallons lost due to SREs granted after RVOs have been issued under the Renewable Fuel Standard.

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Virgin Australia and Qatar Airways have agreed to work together with Renewable Developments Australia to become key partners on a project that will set out to deliver a homegrown SAF production facility in Australia.

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The USDA reduced its outlook for 2024-’25 soybean oil use in biofuel production in its latest World Agricultural Supply and Demand Estimates report, released April 10. The outlook for soybean oil pricing was revised up.

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Sen. Roger Marshall, R-Kan., and Rep. Marcy Kaptur, D-Ohio, on April 10 reintroduced legislation to extend the 45Z clean fuel production credit and limit eligibility for the credit to renewable fuels made from domestically sourced feedstocks.

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Representatives of the U.S. biofuels industry on April 10 submitted comments to the U.S. Department of Treasury and IRFS providing recommendations on how to best implement upcoming 45Z clean fuel production credit regulations.

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The U.S. Energy Information Administration reduced its 2025 forecasts for renewable diesel and biodiesel in its latest Short-Term Energy Outlook, released April 10. The outlook for “other biofuel” production, which includes SAF, was raised.

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Lawmakers in Wisconsin on April 3 announced their intent to introduce legislation that would create a $1.50 per gallon production tax credit for SAF. The bill is currently circulating for co-sponsorship support and will be formally introduced soon.

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Neste has started producing SAF at its renewable products refinery in Rotterdam. The refinery has been modified to enable Neste to produce up to 500,000 tons of SAF per year. Neste’s global SAF production capacity is now 1.5 million tons.

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Jet Zero Australia Pty Ltd has announced a FEED contract with Technip Energies and continuation of the owner’s engineering services contract with Long Energy & Resources for an ethanol-to-SAF project that will use LanzaJet technology.

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A group of 16 senators, led by Sens. Chuck Grassley, R-Iowa, and Amy Klobuchar, D-Minn., on April 8 sent a letter to U.S. EPA Administrator Lee Zeldin urging the agency to increase RVO and account for SREs in the agency’s upcoming RFS rulemaking.

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Tidewater Renewables Ltd. has reported that its biorefinery in Prince George, British Columbia, operated at 88% capacity last year. A final investment decision on the company’s proposed SAF project is expected by year end.

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A group of small refineries on April 4 sent a letter to President Donald Trump urging him “to sent the multi-national oil and biofuels companies back to the drawing board to come up with a biofuels policy that does no harm.”

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BDI-BioEnergy International has signed a contract with Ghent Renewables BV to begin the construction of a pioneering biofuel feedstock refinery plant. Construction is underway and the facility is expected to be operational by the end of 2025.

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Verity Holdings LLC, a subsidiary of Gevo Inc., has partnered with Minnesota Soybean Processors (MnSP) to implement Verity’s proprietary track and trace software. The collaboration aims to unlock additional value through export premiums.

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USGC evaluates SAF market in China

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By U.S. Grains Council

April 04, 2025

The USGC’s office in Beijing in March organized a set of meetings aimed at assessing demand for SAF. USGC Director in China Manuel Sanchez led the team that included USGC Program Manager Ellie Yan and USGC Regional Ethanol Consultant Aaron Goh.

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IAG and Microsoft are extending their 2023 co-funded purchase agreement for SAF by five years. The SAF used under the agreement will be produced by Phillips 66’s Humberside refinery and LanzaJet’s facility in the U.S.

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IATA: SAF registry goes live

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By International Air Transport Association

April 03, 2025

The International Air Transport Association has launched the Sustainable Aviation Fuel (SAF) Registry with its release to the Civil Aviation Decarbonization Organization. The registry is now live and under CADO management.

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Varo Energy, a European energy company based in Switzerland, on March 31 announced an agreement to acquire Preem, a Sweden-based petroleum and biofuels company that is developing additional renewable diesel and SAF capacity.

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The U.S. Department of Commerce has disbanded an advisory committee that provided the agency with private sector advice aimed at boosting the competitiveness of U.S. renewable energy and energy efficiency exports, including ethanol and wood pellets.

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U.S. operatable biofuels capacity increased slightly in January, with gains for ethanol, according to the U.S. EIA’s Monthly Biofuels Capacity and Feedstock Update, released March 31. Feedstock consumption was down when compared to December.

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Gevo Inc. CEO Patrick Gruber discussed the company’s proposed sustainable aviation fuel (SAF) project in South Dakota during a fourth quarter earnings call, held March 27, indicating financial close could be achieved by year-end.

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U.S. farmers are expected to plant 83.5 million acres of soybeans in 2025, down 4% when compared to last year, according to the USDA National Agricultural Statistics Service’s annual Prospective Plantings report, released March 31.

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Farnborough Airport signs SAF deal

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By Farnborough Airport

March 31, 2025

U.K.-based Farnborough Airport, on March 20 announced that it has signed a landmark deal with Hydrogen Refinery for 12.5 million liters or 10,000 metric tons per annum of sustainable aviation fuel (SAF) produced locally from waste.

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Global Bioenergies has announced its sustainable aviation fuel (SAF) has been tested in collaboration with aircraft equipment manufacturer Safran on the injection phase, and with ONERA, a French aerospace research center, on the combustion phase.

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The International Air Transport Association has established the Civil Aviation Decarbonization Organization to manage the IATA-developed Sustainable Aviation Fuel (SAF) Registry when it is released.

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LRQA acquires EcoEngineers

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By LRQA

March 27, 2025

LRQA, the leading global assurance partner backed by Goldman Sachs Alternatives, has acquired EcoEngineers, a U.S.-based consulting, auditing and advisory firm with an exclusive focus on the energy transition.

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