Weather’s role in wildfires in Atlantic Canada | SaltWire #weather #climatechange #wildfireseasonNEW YORK - A rush by U.S. fuel makers to recalibrate their plants to produce renewable diesel has created a supply glut for low-emissions biofuels, hammering profit margins for refiners and threatening to impede a young industry.
Renewable diesel is a complete substitute for diesel, whereas biodiesel can only be used as a blend, making the former more attractive for producers. "The crux of the matter is that market participants convinced themselves that 'if we build it, the EPA will mandate it'. That didn't happen," Irwin said.
Rival HF Sinclair said lower credit prices swung its renewables segment to an adjusted loss of $18.6 million before interest, tax, depreciation and amortization in the first quarter, from a $3 million profit in the prior year. Meanwhile, large renewable diesel producers are standing firm despite the oversupply, betting that they can withstand lower margins until smaller companies are pushed out of the industry, Capozzola said.U.S. refiners are widely expected to turn to other markets in Canada and Europe for their excess renewable diesel, market participants said. However, they will face stiff competition from local producers.