BRIGHT POTENTIAL
When You Want to Stand Out
The biomass-based diesel industry is facing challenges, but the prompt release of critical policy components could course-correct.
BY ANNA SIMET
Industry experts discuss federal and provincial biomass-based biofuel production, consumption, mandates and goals.
BY KATIE SCHROEDER
With exclusive licensing to a camelina seed variety, Ash Creek Renewables is breaking down commercialization barriers. BY
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2025 International Fuel Ethanol Workshop & Expo
June
9-11, 2025
Omaha, NE (866) 746-8385 | www.fuelethanolworkshop.com
Now in its 41st year, the FEW provides the ethanol industry with cutting-edge content and unparalleled networking opportunities in a dynamic business-to-business environment. As the largest, longest running ethanol conference in the world, the FEW is renowned for its superb programming—powered by Ethanol Producer Magazine—that maintains a strong focus on commercialscale ethanol production, new technology, and near-term research and development. The event draws more than 2,300 people from over 31 countries and from nearly every ethanol plant in the United States and Canada.
2025 Sustainable Fuels Summit
June 9-11, 2025
Omaha, NE (866) 746-8385 | www.sustainablefuelssummit.com
The Sustainable Fuels Summit: SAF, Renewable Diesel and Biodiesel is a premier forum designed for producers of biodiesel, renewable diesel, and sustainable aviation fuel (SAF) to learn about cutting-edge process technologies, innovative techniques, and equipment to optimize existing production. Attendees will discover efficiencies that save money while increasing throughput and fuel quality. Produced by Biodiesel Magazine and SAF Magazine, this world-class event features premium content from technology providers, equipment vendors, consultants, engineers, and producers to advance discussions and foster an environment of collaboration and networking. Through engaging presentations, fruitful discussions, and compelling exhibitions, the summit aims to push the biomass-based diesel sector beyond its current limitations. Colocated with the International Fuel Ethanol Workshop & Expo, the Sustainable Fuels Summit conveniently harnesses the full potential of the integrated biofuels industries while providing a laser focus on processing methods that deliver tangible advantages to producers. Registration is free of charge for all employees of current biodiesel, renewable diesel, and SAF production facilities, from operators and maintenance personnel to board members and executives.
2025 North American SAF Conference & Expo
September 22-24, 2025
Minneapolis, MN (866) 746-8385 | www.safconference.com
Serving the Global Sustainable Aviation Fuel Industry
Taking place in September, the North American SAF Conference & Expo, produced by SAF Magazine, in collaboration with the Commercial Aviation Alternative Fuels Initiative (CAAFI) will showcase the latest strategies for aviation fuel decarbonization, solutions for key industry challenges, and highlight the current opportunities for airlines, corporations and fuel producers.
ALL EYES ON POLICY
Anna Simet
Biodiesel Magazine
It seems that every day this magazine is in production, something changes policywise. Just this week, we’ve seen lots of movement with the release of President Trump’s proposed “big, beautiful bill” and its potential 45Z implications, as well as the U.S. EPA’s delivery of two Renewable Fuel Standard rulemakings to the White House Office of Management and Budget. One of those rulings for the 2026 renewable volume obligations and purportedly “also contains several regulatory changes to the RFS program intended to improve the program’s implementation.”
I haven’t yet come across any speculation as to what these changes are, but rumors allege that the renewable volume obligation proposal for biomass-based diesel will not be set at the industry’s ask of 5.25 billion gallons, but short of that. It’s expected we’ll know in late May or early June, so the waiting game continues.
In any case, I’ve had to make some updates to feature article “Ready to Bounce Back” on page 14, and I wouldn’t be surprised at all if by the time this magazine hits desks, even more has changed. The policy pieces that the industry has been waiting for are long overdue, so these movements are very welcome. My main interview for this article was with Grant Kimberley of the Iowa Biodiesel Board and Iowa Soybean Association. Iowa has the most biodiesel plants of all the states at 10, with a collective production capacity at 416 MMgy. In the article, he discusses the impact that policy inaction has had on Iowa’s biodiesel industry, and what is needed overall to get back to a healthy state. In particular, he emphasizes the critical impact of strong RVOs. “All indications from experts and marketplace are that a strong RVO would reset the RFS in a very positive way, strengthen RIN prices and be a huge boom to the marketplace,” Kimberley says.
Changing gears a bit, our page-21 feature shifts the focus to Canada. In “Fueling Canadian Decarbonization,” associate editor Katie Schroeder takes a deep dive into the Canadian biofuel sector—what it looks like and where it’s headed, the policy and incentives available (and needed) to help with the buildout, and how the United States’ biofuel policy has impacted development there.
Finally, we’re about three weeks out from the International Fuel Ethanol Workshop being held in Omaha, Nebraska, June 10-12. Being held in conjunction with that is the Sustainable Fuels Summit, which is focused solely on biodiesel, renewable diesel and sustainable aviation fuel. It’s great timing to connect with stakeholders and learn about the impacts impending policy could or will have on the industry, among many other things. If you’re a biofuel producer, your pass is complimentary—register at fuelethanolworkshop.com.
Paul Winters Director, Public Affairs and Federal Communications
Clean Fuels Alliance America
Reestablishing Policy Certainty
In 2024, the U.S. biodiesel, renewable diesel and sustainable aviation fuel (SAF) industry achieved record production. A new report, “Economic Impact of Biodiesel on the U.S. Economy 2024,” shows that the industry’s rapid growth also generated a record economic impact. The industry supported 107,400 American jobs and $42.4 billion in domestic economic activity.
The total economic impact was nearly double the figure from Clean Fuels’ previous study in 2022. That’s no surprise, since U.S. production capacity doubled between 2022 and today. Nationwide in 2024, availability of biomass-based diesel—including biodiesel, renewable diesel, renewable jet and heating oil—topped 5.1 billion gallons, meeting more than 9% of fuel demand for heavy-duty, on-road transportation. The industry— both fuel producers and soybean processors—invested billions to sustain this growth.
Nevertheless, the industry is facing policy uncertainty that threatens those investments and jobs. While market demand and potential for clean fuels continues to grow—with rail, marine heating, and aviation interest strong and growing—many producers are currently shut down and laying off workers.
To bolster market certainty and resume growth, Clean Fuels advocated that the U.S. EPA make a step change in the Renewable Fuel Standard volumes for 2026 and 2027, asking for an increase of the biomassbased diesel (BBD) volume to 5.25 billion gallons in 2026. That’s 1.9 billion gallons higher than the 2025 volumes. And the industry asked for continued growth, with BBD volumes raised to 5.75 billion gallons for 2027.
In April, Clean Fuels launched a six-figure advertising campaign to back up the industry’s advocacy efforts and build support for a timely bump in BBD volumes. The campaign was designed to highlight for policymakers the unified, industrywide agreement on the request.
Earlier, in March, along with farm and feedstock groups, Clean Fuels sent a letter asking the EPA to set 2026 biomass-based diesel (BBD) volumes at 5.25 billion gallons. Later that month, Clean Fuels, the American Petroleum Institute, American Soybean Association, National Oilseed Processors Association, and ethanol trade groups met with EPA to present agreed upon volumes for the 2026 rule, including the 5.25-billion-gallon BBD volume.
The group of stakeholders agree that U.S. biomass-based diesel capacity of roughly 6.5 billion gallons is more than sufficient to meet the increase in RFS volumes. Much of the existing capacity is underutilized. The stakeholders also point to projections from the U.S. Energy Information Administration that demand will reach 5.5 billion gallons in 2026, and capacity will continue to grow to 7.3 billion gallons.
The stakeholders further agreed that the feedstocks to produce the volumes in America are available. According to an analysis by S&P Global on behalf of NOPA, the soybean processing industry invested more than $6 billion to expand or build 20 crush facilities across 10 Midwest states. The investments will support 1.4 billion additional gallons of U.S. production by 2030, with enough capacity coming online by 2026 to support the 5.25-billion-gallon goal.
The U.S. biodiesel and renewable diesel industry used more than 1 billion pounds of domestic soybean oil each month throughout 2024—an increase of 15% since 2022. Biodiesel and renewable diesel production support $1.10 in value for every bushel of soybeans grown in the U.S. Demand for 5.25 billion gallons of biomass-based diesel will create a value-added market for more than 50 billion pounds of fats and oils each year. If the trend for policy during the next several years is for domestic feedstocks and domestic production, then our industry is going to create a lot of new demand for U.S. agriculture and biomass production.
For our industry to follow through and make good on the investments and growth of the past few years—and to get American biodiesel workers back to producing much-needed fuel—we need stable policy that enables us to coordinate production growth with feedstock supplies and innovation. An appropriate step upward in the RFS program is a great start.
News Roundup
EIA: US SAF Production Takes Off as New Capacity Comes Online
Sustainable aviation fuel (SAF) production is growing in the United States as new capacity comes online. U.S. production of “other biofuels,” the category that the U.S. Energy Information Administration uses to capture SAF in its Petroleum Supply Monthly report, approximately doubled from December 2024 to February 2025. In addition to SAF, the other biofuels category includes renewable heating oil, renewable naphtha, renewable propane, renewable gasoline, and other emerging biofuels that are in various stages of development and commercialization.
Prior to 2025, renewable naphtha and renewable propane, byproducts of renewable diesel production, made up most of other biofuels production and was growing because of growing renewable diesel production. SAF made up only a small portion of other biofuels production because of limited production capacity. At the beginning of 2024, U.S. SAF production capacity was only around 2,000 barrels per day (b/d), with just two plants capable of producing SAF: World Energy’s plant in Paramount, California, and Montana Renewables’ plant in Great Falls, Montana.
U.S. SAF production capacity increased by about 25,000 b/d in late 2024. Phillips 66 completed its 10,000-b/d SAF project in Rodeo, California, in the third quarter of 2024, before temporarily halting production in Q4. Diamond Green Diesel completed its 15,000-b/d SAF project in Port Arthur, Texas, in Q4 2024.
A couple of smaller projects will bring additional SAF produc-
tion capacity online in 2025. New Rise Renewables announced it began SAF production at its plant in Reno, Nevada, in February 2025, adding up to 3,000 b/d of SAF production. Par Pacific plans to begin SAF production at its plant in Kapolei, Hawaii, in the second half of the year, adding about 2,000 b/d of SAF production capacity. With SAF production capacity now around 30,000 b/d and growing in 2025, SAF will likely drive significant growth in other biofuels production and make up most of U.S. other biofuels production.
In January, U.S. production of other biofuels reached 33,000 b/d, nearly 30% more than the previous record high set in September 2024. Production increased another 30% in February to 44,000 b/d. In the EIA’s latest Short-Term Energy Outlook, it is forecasted that U.S. production of other biofuels will more than double between 2024 and 2025, and increase by about another 20% in 2026. Although the EIA does not publish a forecast for each fuel that makes up the category, it expects increased SAF production to drive most of that growth. Despite strong growth in SAF on a percentage basis, the absolute volumes will remain relatively low, making up less than 2% of about 1.7 million b/d of U.S. jet fuel consumption in 2025 and about 2% in 2026. (By the U.S. Energy Information Administration)
Proposed Bill Includes 45Z Extension, Eliminates Indirect Land Use Change
The House Ways and Means Committee and House Committee on Energy and Commerce on May 12 released draft proposals for their respective portions of a reconciliation budget package, referred to by President Donald Trump as the “big, beautiful bill.” Provisions in the draft legislative language include amendments to the 45Z clean fuel production credit and the rescission of funding for the Renewable Fuel Standard that was allocated by the Inflation Reduction Act.
Language related to the 45Z credit is included in the proposal released by the House Ways and Means Committee. Provisions included in the draft bill would limit eligibility for the credit to fuels made using feedstocks produced or grown in the U.S., Mexico and Canada. The bill would also change how lifecycle greenhouse gas (GHG) emissions are calculated for purposes of the 45Z credit by excluding any emissions associated with indirect land use change. For transportation fuels derived from animal manure, bill language stipulates that a distinct emissions rate would be provided with respect to each of the specific feedstocks used to produce eligible fuel. This includes dairy manure, swine manure, poultry manure and other such sources.
In addition, the draft bill would extend the 45Z credit through the end of 2031. The credit is currently scheduled to expire on Dec. 31, 2027. The bill would also prohibit specified foreign entities and foreign-influenced entities from claiming the 45Z credit.
The House Committee on Energy and Commerce’s draft bill aims to repeal Section 60108 of the Inflation Reduction Act of 2022, which allocated funding to the U.S. EPA to support certain functions related to the RFS. Under Section 60108, the IRA allocated $5 million to the EPA to support the development and establishment of tests and protocols regarding the environment and public health effects of a fuel or fuel additive; perform internal and extramural data collection and analyses to regularly update applicable regulations, guidance, and procedures for determining lifecycle GHG emission of a fuel; and review, analyze and evaluate the impacts of all transportation fuels, including fuel lifecycle implications, on the general public and on low-income and disadvantaged communities.
Information released by the House Committee on Energy and Commerce specifies Section 60108 “does not fund the EPA’s administration of the [RFS]. Rather, the funding is for data collection of [GHG] emissions and testing the environmental impact of biofuels.”
The House Agriculture Committee was also expected to release draft language for its portion of the bill the week of May 12. All three committees were scheduled to hold markup sessions on their respective portions of the legislation on May 13.
EIA Maintains 2025, 2026 Production Forecasts for Biobased Diesel, SAF
The U.S. Energy Information Administration maintained its 2025 and 2026 forecasts for biodiesel, renewable diesel and “other biofuel” production, which includes sustainable aviation fuel (SAF), in its latest Short-Term Energy Outlook, released May 6.
The EIA currently predicts biodiesel production will average 90,000 barrels per day in 2025, increasing to 100,000 barrels per day in 2026. Both forecasts were maintained from the April STEO. Biodiesel production averaged 110,000 barrels per day in 2024.
Net imports of biodiesel are expected to be zero this year and next year, unchanged from last month’s outlook. Net imports of biodiesel were at 20,000 barrels per day in 2024.
The EIA also maintained its forecasts that biodiesel consumption will average 90,000 barrels per day in 2025, expanding to 100,000 barrels per day in 2026. Biodiesel consumption was at 120,000 barrels per day last year.
Renewable diesel production averaged 210,000 barrels per day last year and is expected to increase to 220,000 barrels per day this year and 250,000 barrels per day in 2026. Both forecasts were unchanged from April.
The EIA currently expects net imports of renewable diesel to be at zero in 2025 and 2026, compared to last month’s outlook of 10,000 barrels per day for each year. Net imports of renewable diesel averaged 30,0000 barrels per day in 2024.
The agency maintained its forecasts for 2025 and 2026 renewable diesel consumption at 210,000 barrels per day and 250,000 barrels per day, respectively. Renewable diesel consumption averaged 240,000 barrels per day in 2024.
Canadian Agency Rejects Claim That US Renewable Diesel Imports Harm Domestic Producers
The Canadian International Trade Tribunal on May 5 announced that a preliminary investigation launched earlier this year did not find evidence that imports of United States renewable diesel are causing harm to Canada’s domestic renewable diesel industry.
On March 6, the Canada Border Services Agency announced it was initiating investigations into alleged dumping and subsidizing of renewable diesel from the U.S. The investigation was launched as a result of complaints filed by Tidewater Renewables Ltd. in late 2024. The complaint alleged that unfairly traded imports of renewable diesel from the U.S. were significantly undermining the Canadian industry.
In its compliant, Tidewater claimed it has suffered material injury in the form of lost market share, lost sales, price undercutting, price depression, reduced profitability, negative cash flow and return on investment, and ability to raise capital as a result of subsidized U.S. renewable diesel dumped in the Canadian market.
According to information released in March, CBSA and the CITT would each play a role in the investigations. The CITT was to begin a preliminary inquiry to determine whether the imports are harming Canadian producers, with a decision issued by May 5. Concurrently, the CBSA is investigating whether the imports are being sold in Canada at unfair prices or are being subsidized, and is expected to make preliminary decisions by June 4.
On May 5, CITT issued an announcement concluding “that the evidence does not disclose a reasonable indication that the dumping and subsidizing of the subject goods have caused injury or retardation or are threating to cause injury.” As a result, the CITT has terminated the preliminary injury inquiry with respect to U.S. imports of renewable diesel.
Tidewater expressed disappointment with CITT’s decision and indicated the company is reviewing its options and may soon file an amended or new complaint with CBSA. "While we are disappointed with the Tribunal's decision, Tidewater Renewables remains committed to free and fair trade in Canada's renewable diesel market,” said Jeremy Baines, CEO of Tidewater Renewables. “Our view remains that the facts support a finding that unfair trade practices by the United States have caused a flood of subsidized and dumped renewable diesel into Canada. This flood of imports has significantly injured Tidewater, currently the sole Canadian producer of renewable diesel.”
Bill Aims to Retroactively Extend Biodiesel, Second-Generation Fuel Tax Credits
Reps. Mike Carey, R-Ohio, and Mariannette Miller-Meeks, RIowa, on May 1 introduced legislation that aims to retroactively extend the $1-per-gallon biodiesel blenders tax credit (BTC) and the second-generation biofuel producer tax credit, which provides up to $1.01 per gallon for eligible fuels.
Both tax credits expired at the end of 2024 and have been replaced by the technology-neutral 45Z clean fuel production tax credit, which came into effect this year. The Treasury Department’s delay in releasing full 45Z guidance, however, is negatively impacting U.S. biofuel producers. The bill, H.R. 3079, aims to provide more certainty to biofuel producers by enacting a two-year extension of the expired tax credits. Language included in the bill would prevent taxpayers from claiming both the 45Z and legacy credits for the same gallon of fuel.
The BTC provides up to $1 per gallon for eligible biobased diesel fuels, including renewable diesel. The second-generation biofuel producer tax credit provides up to $1.01 per gallon for eligible fuels produced from cellulosic or algae-based feedstocks, including cellulosic ethanol produced from corn kernel fiber.
The bill has earned support from many groups including the American Trucking Associations, Clean Freight Coalition, Energy Marketers of America, Illinois Soybean Association, National As-
sociation of Convenience Stores, National Energy & Fuels Institute, Renewable Fuels Association and the Sustainable Advanced Biofuels Refiners.
According to SABR, the two-year tax credit extension proposed by the legislation would provide time for Congress to fix fundamental flaws in the 45Z credit. It would also allow time for the Trump administration to propose and finalize regulations implementing the 45Z credit.
Montana Renewables to Expedite First Phase of MaxSAF Initiative
Calumet Inc. reported that sustainable aviation fuel (SAF) capacity at its Montana Renewables biorefinery is expected to reach 120 MMgy to 150 MMgy sooner than previously reported, and for a fraction of the originally expected cost.
Montana Renewables, an unrestricted subsidiary of Calumet, in October 2024 was awarded a conditional commitment for a $1.44 billion U.S. Department of Energy loan guarantee to support its proposed MaxSAF initiative, which aims to increase annual production at the biorefinery to 330 MMgy, including 300 MMgy of SAF and 30 MMgy of renewable diesel. Under the original timeline for the MaxSAF initiative, Calumet expected to have approximately half of the proposed 300 MMgy of SAF capacity online by 2026, with the project expected to be complete in 2028. The estimated capital cost for the first phase of the initiative was estimated to be in the range of $150 million to $250 million.
During a first-quarter earnings call, Calumet CEO Todd Borgmann announced plans to accelerate development of the MaxSAF expansion for a fraction of the original expected cost. He explained that the company’s operations team has rapidly advanced the understanding of the potential of its assets and SAF production technology. Rather than wait for an additional reactor to be shipped and installed with other new-build assets, the company now believes it can enhance its existing reactor and some supporting assets already in Montana to bring 120 MMgy to 150 MMgy of SAF capacity online in early 2026 for $20 million to $30 million in capital. The project is expected primarily to consist of catalyst work and asset configuration, Borgmann explained, with improvements expected to increase SAF yields from the current level of 2,000 barrels per day to 8,000 to 10,000 barrels per day. The company also expects to achieve a minor increase in total renewable throughput. The plan to have 300 MMgy of total SAF capacity in place by 2028 remains unchanged.
the heart of our supporting clean fuels, you’re no just fueling vehicles. In 20 25 , clean fuels will utili Visit cleanfuels .o rg A meric a’s soy bean farmer s are at ou r na tion’s future. B y su pp orti n g yo u’re n ot j ust f uelin g vehicles. In f uels will utili z e 1 3.6 billion p ounds o f so y bean oil. or g . a n d l ea rn h o w c l ea n f ue l s ca n s ecu r e a st ro n g er future for U. S . a g riculture .
Ready to Bounce Back
The biodiesel industry has been facing turbulence, but the release of long-overdue policy could course-correct.
BY ANNA SIMET
In late December, Western Dubuque Biodiesel in Farley, Iowa, announced that it had paused production. The 35 MMgy facility, built in 2005, has been vocal regarding the impact that the expired blender’s credit, vague guidance surrounding its replacement—the 45Z Clean Fuel Production Credit—and the long-delayed Renewable Fuel Standard renewable volume obligations, to name the core challenges. “Had we continued running, we would have been losing anywhere from 30 cents to 50 cents per gallon,” said Tom Brooks, general manager of Western Dubuque Biodiesel, per the Iowa Biodiesel Board. “The economics simply do not favor running, and without clear policy direction, we can’t make sound business decisions.”
Other plants, too, have been plagued by these issues and volatile market conditions, and forced to implement similar measures—eight months before then, in March 2024, Chevron announced that would idle two biodiesel plants in Ralston, Iowa, (30 MMgy) and Madison, Wisconsin, (20 MMgy) citing poor market conditions.
According to FastMarkets, a biodiesel production survey performed during the week ending March 14 revealed “that only about 38% of biodiesel capacity was being used, with an additional 122 MMgy entering the start-up phase of production.”
For these plants, decisions regarding operational status aren’t made lightly, and they’ll hang on as long as they can before shutting down completely, says Grant Kimberley, executive director of the Iowa Biodiesel Board and senior director of market development at the Iowa Soybean Association. Iowa is home to 10 biodiesel plants with a collective capacity upward of 415 MMgy. “The decisions these plants make might be, ‘Well, I still can’t make money, but I may not lose as much by running a little bit,’ because sometimes, they’re better off running at lower rates,” Kimberley says. “They can only do that for so long, but if they can run to cover variable costs for a while, sometimes that’s a better business decision than not running at all. When things are so far out of whack like they were the whole winter, though, it got to the point where some couldn’t run at all.”
Kimberley remains optimistic the tide will soon turn. “I think the market has started to turn a little bit … just the rumors alone help with RIN values and some other things—there might be an opportunity here pretty soon for some people to start doing a little bit [more.]”
D4 RIN prices have been volatile over the past few years, sinking 72.3% from January 2023 to January 2024, according to an S&P Global report, and they have struggled to rebound. The industry produced 1.2 billion gallons above the 2023 biomass-based diesel RVO, according to S&P, primarily due to a surge and subsequent oversupply of renewable diesel production. As for this year, U.S. EPA data shows D4 RINs hovering between 66 cents and 78 cents from January to April, which saw a rise to 89 cents. At press time on May 16, Intercontinental Exchange showed D4 RINs trading at $1.14.
“This [situation] can’t last forever,” Kimberley continues. “Let’s hope the rumors are true and we get an RVO in the next month— that might change everything.”
As of mid-May, the U.S. EPA had yet to release the long-overdue RFS renewable volume obligation proposals for 2026. Some rumors suggest that it is slated to happen in early June, but during a May 14 congressional hearing, EPA Administrator Lee Zeldin repeatedly referenced “the next few months” in regard to the rulemaking process, suggesting the possibility that it may be late summer before the RVOs are finalized.
The collective industry ask is a minimum of 5.25 billion gallons for 2026, over 2.25 billion gallons more than what was set for 2024. Paul Winters, director of public affairs and federal communications at Clean Fuels Alliance America, says this bolstered RVO is needed to make up for the lackluster numbers set two years ago. “In the 2023-‘25 RFS rule, the EPA set biomass-based diesel volumes substantially below the growth in production already obvious in June 2023,” he explains. “The rule constrained the U.S. market, forcing producers to increase exports and rationalize domestic production capacity. The uncertainty created by delays in tax guidance and new tar-
iffs may be the final nails in the coffin, but the RFS Set 1 rule was the first.”
Winters’ remarks precede a trade war reprieve, which began on May 12 and will last at least 90 days. For China and the U.S., the tariffs have dropped to 30% and 10%, respectively. If the tariffs end up increasing again, Kimberley says that won’t have much impact on biodiesel in the U.S. “Biodiesel production and use is for the domestic market—we aren’t exporting much biodiesel—but renewable diesel is different. The tariffs might impact imported used cooking oil (UCO) and other feedstocks, but it doesn’t mean they can’t come in. To a degree, it would help domestic feedstocks and put them on a level footing, and that, I think, is what the industry has been wanting in the end with the tax credit. We can import feedstocks, let’s just not give them extra incentives—U.S. taxpayer dollars—to go toward these, which already kind of have an advantage in markets like California, because of how the carbon accounting system works in the LCFS program. So, let’s make the domestic feedstocks first in line rather than last in line.”
Kimberley notes that there isn’t necessarily uniform agreement across the industry on this issue. “Of course, some in the industry would certainly like access to as cheap of imported feedstocks as they can get—it depends on where you’re located—but most Midwestern biodiesel plants aren’t importing feedstock anyway.”
A recently proposed bill, President Trump’s “big, beautiful bill,” could do just what Kimberley describes if its initial components stay intact during markups and reviews.
Blenders’ Credit, 45Z and the BBB
“The second piece of all of this is getting certainty on the tax credit side,” Kimberley says. “If we don’t get those things, and it keeps lingering on and we get into this summer, then I think it’s a whole different discussion about these things—it could get much worse and a lot of companies could be in bad position. “
The 45Z tax credit was meant to replace the $1-per-gallon biodiesel blenders’ credit but has come with uncertainty, and vague and incomplete guidance. Some stakeholders suggest
IMAGE: IOWA BIODIESEL BOARD
that bringing back the blenders’ credit temporarily would help bridge the gap until there is clarity regarding 45Z. A recent bill, H.R. 3079, proposes to retroactively extend the blenders’ credit for two years, along with the $1.01-pergallon, second-generation biofuel tax credit. Many groups are rallying behind the bill, such
as the American Trucking Association, National Energy & Fuels Institute, Renewable Fuels Association, Sustainable Advanced Biofuel Refiners and more. “The expiration of the biodiesel blenders’ tax credit (40A) along with the lack of implementing regulations on Section 45Z have effectively shut the biodiesel in-
dustry down for all of 2025, with no end in sight,” said Joe Jobe, CEO of the SABR Coalition, in statements released by the organization. “This bill to extend 40A would turn the markets back on immediately because the implemention regulations for 40A are already in place and the markets understand them.”
According to the SABR Coalition, the twoyear tax credit extension proposed by the legislation would provide time for Congress to fix fundamental flaws in the 45Z credit. It would also allow time for the Trump administration to propose and finalize regulations implementing the 45Z credit. “The biodiesel industry is in a world of hurt,” Jobe continued. “It’s not just the biodiesel industry that is largely shut down, but
Grant Kimberley Iowa Biodiesel Board
An employee at Western Iowa Energy overlooks the plant's operations. WIE is one of 10 biodiesel plants in the state and has a capacity of 45 MMgy.
IMAGE: JOE MURPHY, IOWA SOYBEAN ASSOCIATION
the entire value chain is shut down. Farmers can’t sell their beans to crushers, who can’t sell their soybean oil to biodiesel producers, who can’t sell their fuel to distributors and byproduct to glycerin refiners.
And those fuel distributors can’t sell their fuel to truck stop operators … So, this doesn’t just impact biodiesel producers—several separate industries are involved in the value chain, and they’re all being devastated by the biodiesel industry being shut down by government inaction.”
Kimberley is skeptical the blenders’ credit will be reinstated. “If this drags on a long time on the tax credit side of things, it might increase the likelihood that it could come back
'After two decades of study, researchers still cannot find consensus that indirect land use change significantly contributes to U.S. biofuels’ carbon intensity—the uncertainty in many models is far too high.'
-Paul Winters, Clean Fuels Alliance America
… it’s possible, but all indications, from what we’ve heard from congressional leadership, are that it’s unlikely, unless it’s dramatically changed or reduced. The cost is a big stumbling block, we’ve heard.”
As for 45Z, Kimberley says that how it was designed originally versus how it ends up could be a lot different. “Congressionally, they’re looking at ways to change how the carbon accounting mechanism works, such as eliminating indirect land use change (ILUC) as one of the factors used in calculating the carbon intensity score, and just moving to some-
thing more along the lines of direct land use change,” he says. “This way, U.S. ag feedstocks wouldn’t be penalized for something that goes on in Brazil. Brazilian feedstocks could have a different direct land use change carbon score relative to U.S. soybeans … I think everyone is in agreement that the science on ILUC is all over the board and there is not a lot of consensus. This [removing ILUC] could level the playing field between waste feedstocks and row crop ag feedstocks … those discussions are still going on right now, so we’ll have to wait and see.”
Paul Winters CFAA
Winters says Clean Fuels is in support of leveling the playing field for U.S. agriculture to supply feedstock for biodiesel, renewable diesel and SAF production, emphasizing that ILUC is hurting progress. “After two decades of study, researchers still cannot find consensus that indirect land use change significantly contributes to U.S. biofuels’ carbon intensity—the uncertainty in many models is far too high,” he says. “Nevertheless, the half-finished 45Z tax credit carbon intensity model launched in January prospectively assigns a heavy ILUC penalty to U.S. crops, making them less competitive in the biofuel market. Congress and Treasury should fix this and utilize the widely accepted, well-established GREET model to calculate carbon intensity.”
Kimberley’s and Winters’ remarks hit the nail on the head, as Trump’s “big, beautiful bill” released on May 12 not only extends the 45Z credit from 2027 to the end of 2031, but removes IDLC from the carbon accounting methodology, among other changes. Those components of the bill have already survived the House Ways and Means Committee mark up, and the bill has received widespread support from industry organizations and stakeholders.
“We were told we’re supposed to sell more products here domestically—that was what started this on the trade side of things—
but it’s just not really possible when it comes to Midwestern row crop ag or livestock agriculture,” Kimberley says. “We just produce way more than we could ever hope to consume here in the U.S. But, if we did have a robust biofuel or renewable fuel policy, it would help get a little closer to that.”
That is especially the case with soybeans, Kimberley adds, as U.S. whole bean exports to China are around 54% of its annual crop. “There is no other soybean market in the world,” he explains. “The rest of the world combined isn’t bigger than China, for whole soybeans. So, if we have strong use for soybean oil domestically for biofuels, that would help us diversify and give us opportunities. Biofuel policy is so critical to farmers, especially in today’s environment. And it’s critical to all the investments that have been made over the years, from the biofuel industry itself—all the jobs in rural America and at these plants, jobs in small towns and communities. It has so many benefits, including the energy security piece, America first, economic development … all of those things can fit within the goals of the current administration, and we think they’re starting to better understand that, based off of some of the conversation.”
The Trump administration views U.S. biofuels as part of the American energy dominance strategy and as a vital tool to meet the
increasing demand for affordable energy in the United States, Winters says. “Bipartisan support for the industry remains very strong in Congress and among state leaders, as we’ve seen recently with letters to the EPA advocating for robust and timely RFS volumes. We continue to see state policies that will support new investments in SAF and biodiesel infrastructure, and we hope that support makes it easy for EPA to get the RFS back on track, and for Congress and Treasury to finalize rules for the 45Z tax credit.”
Bouncing Back
All indications from experts and the marketplace are that a strong RVO would reset the RFS in a very positive way, strengthen RIN prices and be a huge boon to the marketplace, Kimberley adds. “And I think you’d see all these plants turn back on. In the end, we just need to get them back operating, we need to get certainty in the marketplace, we need to help rural economic development, and we need to help farmers. Farmers are on the front lines … the best way to help them in the shortterm, with the trade disruption and while negotiations continue, is to ensure a positive domestic biofuels policy that is robust, significant and moving in the right direction.”
Author: Anna Simet Senior Editor, Biodiesel Magazine
Ag Processing Inc.'s 65 MMgy Sergeant Bluff, Iowa, biodiesel plant was the first commercial-scale soy biodiesel facility in the United States. The company also operates biodiesel plants in Algona, Iowa, and St. Joseph, Missouri, and 10 soybean processing plants across the Midwest.
IMAGE: AGP
Biofuels Canada's map illustrates its clean fuel mandates, contrasting 2025 and 2030 requirements across the country at both the federal and provincial level.
FUELING CANADIAN DECARBONIZATION
Industry experts weigh in on the status of Canada’s renewable fuels industry and the impact of government policy and regulation.
BY KATIE SCHROEDER
Trade turbulence supplies both new challenges and opportunities as tensions with the United States, Canada’s closest trading partner, remain high. Meanwhile, provincial governments are increasingly recognizing their local renewable fuel producers and looking for ways to encourage local use of Canadian-made fuels. According to Canadian industry experts, however, the expiration of the U.S. Biodiesel Blenders’ Tax Credit and the implementation of its subsequent replacement, the 45Z Clean Fuel Production Credit, will harm the Canadian industry. Unlike the BTC, 45Z is paid to the domestic (U.S.) producer, and the fuel is exportable to Canada. Before the BTC expired, Canadian fuel was able to be sent to the U.S. where it was blended to receive the BTC.
The federal and provincial support structures built to promote renewable fuels production and usage in Canada are part of the country’s strategy to decarbonize. Each year, Advanced Biofuels Canada commissions a study to track the state of the country’s biofuels industry. Titled the “Biofuels in Canada Report,” prepared by Naivus Research, it assesses the impact of low-carbon fuel policies across the country. Fred Ghatala, president of Advanced Biofuels Canada, explains that his organization has commissioned this report series to track the state of the biofuels industry in Canada since 2010. The study’s longitudinal tracking provides helpful context to newly collected biofuel use information. The 2024 report reflects on data from 2023 and provides a helpful jumping-off point for deeper dialogue with government entities looking for data about renewable fuels.
One of the study’s key data points is the change in clean fuel consumption each year. The report shows that ethanol consumption increased by 13% from 2022 to 2023, and bio-
mass-based diesel consumption grew by 68% with much of that increase due to a “surge” in renewable diesel usage.
Production Volumes
Canada possesses over 2 billion liters (approximately 530 million gallons) of installed ethanol capacity and 1.9 billion liters of biomass-based diesel capacity, which includes both renewable diesel and biodiesel. The biodiesel sector produces 550 million liters per year, and the two renewable diesel facilities have the collective capacity to produce roughly 1.2 billion liters yearly, according to Dany Laferriere, vice president of communications and outreach with the Canadian Biofuels Association. The country’s biomass-based diesel production volume will likely expand in 2025 when the new Imperial Oil RD facility, located near Edmonton in Strathcona, Alberta, comes online with a production capacity of 1.16 billion liters.
A total of 16 biodiesel, renewable diesel and sustainable aviation fuel (SAF) production facilities are either under construction or producing fuel in Canada, according to research from Biodiesel Magazine’s data specialist, Chloe Piekkola. The country’s production portfolio includes five operational biodiesel facilities and 11 RD or SAF facilities, six of which are under development, two under construction and three operational facilities.
The report reflects the impact that Canada’s Clean Fuel Regulations have had on the fuel supply since they came into effect in June 2022, explains Ghatala. The CFR received support from a broader base of constituents because the regulations contain compliance pathways “that are an opportunity for the refining sector,” Ghatala says. Refineries are able to generate Category 1 compliance credits by implementing refinery improvements. “There are lots of ways that you can nip and tuck emissions around a refinery and that can generate compliance credits,” Ghatala adds.
To date, most of the volume obligations under the CFR have been met through imports, explains Laferriere. He describes the Canadian low-carbon fuels industry as “small but growing.” Renewable diesel projects make up much of the industry’s development focus at the moment. Canadian biorefineries have room to grow in order to meet the projected demand of 4 billion liters by 2030. ABFC’s report shows that the nationwide blending for biomass-based diesel reached 6.5% in 2023, projected to increase up to 7% when 2024 numbers are released.
In 2030, the volume demand for renewable fuels in the national gasoline pool is expected to reach 7 billion liters. The Canadian ethanol industry likely will not be able to supply this volume on its own. “We could be just about self-sufficient on the diesel side, but we are forecast to continue being importers
on the gasoline side, which generally reflects Canada’s agricultural landscape,” Ghatala says. “Because of our canola sector, we are larger lipid producers than we are sugar producers— we simply don’t grow as much corn as the U.S. does[.]”
Provincial Standards
Canada’s plethora of provincial clean fuel standards stand alongside the country’s CFR. In recent months, however, economic pressures led Prime Minister Mark Carney to remove the consumer carbon tax, which was an achievement of former Prime Minister Justin Trudeau’s environmental agenda.
Provinces across the country have enacted renewable fuel and clean fuel regulations with different structures. Because 95% of fuels supplied in Canada are covered under a provincial regulation, producers are able to stack compliance credit values in some provinces, explains Ghatala. Renewable fuel programs exist in “every province [from] Quebec and west [of it],” he says.
In 2023, renewable diesel blend rates hit above 20% in British Columbia—far exceeding the province’s 4% minimum volumetric blending requirement—in order to meet carbon intensity reduction requirements. When 2024 numbers come out, Ghatala anticipates that B.C.’s numbers will stand at around 30%. After the trade turbulence began, B.C. increased the minimum volume obligation to
8%, along with a requirement that the obligated volumetric portion must be met with domestically produced renewable fuels. The requirement came into effect on April 1.
“We see the renewable and lower-carbon fuels being pulled to markets that have this visible credit price,” Ghatala says. “Of all the provinces, British Columbia’s policy has the most transparent compliance credit market.”
Most other provincial programs, such as those in Manitoba and Saskatchewan, have volumetric requirements without any compli-
ance credit trading. Manitoba’s clean fuel mandates for 2025 are set at 5% for diesel and 10% for gasoline. Saskatchewan’s blending mandate stands at 2% for diesel and 7.5% for gasoline.
Quebec holds the highest minimum volume requirements of any province, with the 2025 minimum set at 12% renewable content in gasoline and 5% renewable content in diesel; the requirements are set to increase to 15% and 10%, respectively, by 2030.
Ontario’s 2025 volume requirements are set at 11% for gasoline and 4% for diesel. Al-
berta’s requirements are lower on the gasoline front this year, standing at 5%, with diesel at 2%.
ABFC’s report found that the renewable fuels industry saves Canadians half a cent per liter of fuel. Ghatala explains that this calculation originates from the price for renewable diesel and biodiesel being more expensive than conventional fuels by five cents, and ethanol being cheaper by six cents. “We’re seeing the average cost of carbon abatement through renewable fuels to be about $123,” he says.
Coprocessing Production
Coprocessing constitutes a small portion of Canada’s renewable fuels volume, but it provides a cost-effective option to increase renewable fuel production, according to Laferriere. This process uses renewable content such as vegetable oil or animal fats and requires mixing with a crude oil input at a petroleum refinery. Depending on where the renewable material is inserted into the refinery’s hydrotreater or fluid catalytic cracker unit, the renewable material ends up in one of the refinery’s products.
Provincial regulations across the country include methodologies for calculating credit generation, such as carbon-14 dating and a monitoring, measurement and verification program, he explains. According to ABFC’s report, 100 million liters per year of coprocessing capacity are available.
Refineries across the country are limited in the amount of organic content they can
Parkland Corp. announced it had successfully begun production of Canada’s first batch of low-carbon aviation fuel (SAF) at its Burnaby Refinery in December 2024. The SAF was produced using existing infrastructure to process canola and tallow as core feedstocks, according to Parkland. The company was acquired by Sunoco LP in early May.
add, Ghatala explains. For example, jet fuel can only have 5% organic feedstock added. “Policymakers, I think, view the opportunity that coprocessing provides as an additional means through which to pursue reducing emissions of liquid transportation fuels. The fact that we have coprocessing diesel, renewable diesel, biodiesel, sustainable aviation fuel and related products like biodiesel distillation bottoms [and] arctic-grade renewable diesel, and that those fuels can be used in different transportation modes means that we have the tools at hand to address transportation emissions growth.”
Opportunities and Obstacles
Policy structures for increasing biofuel usage across Canada are present at both the provincial and federal level. However, implementation of the U.S. 45Z tax credit constitutes a significant challenge to the Canadian biofuels industry. “Our domestic sector has been negatively impacted by the 45Z tax incentive and its exportability to the Canadian market, along with other factors,” Ghatala says. Concerns abound as to whether Canadian producers can compete with U.S. imports and Canadian policies are durable enough to handle the influx of foreign fuel.
The shift away from the Biodiesel Blenders’ Tax Credit to 45Z’s Clean Fuel Production Tax Credit has triggered a “rationalization” in the North American biomass-based diesel
market, Ghatala explains. In the past, U.S. renewable fuel producers would import Canadian feedstock to make biodiesel or renewable diesel, then sell the fuel into Canada. In light of 2025’s trade turbulence, Canadian federal and provincial governments started looking for strategies to encourage energy security and domestic resilience. Rather than crossing the border, Canadian feedstocks are used to produce biofuels at home, and those fuels are sold into local markets. “We are seeing renewable fuels be a big part of that conversation because they link so many things in our economy together,” Ghatala says. “They link agriculture with industry, they link agriculture with oil and gas refining, with greenhouse gas targets and energy security, and all of those things tied together is a very formidable consortium to encourage action.”
Even before trade turbulence, renewable fuels grew in popularity as the conversation around decarbonization has shifted in recent years, and policymakers have realized how long the road to full electrification is, Ghatala explains. A growing understanding that other options are needed to attain the net-zero target—especially for Class 7 and 8 vehicles— has brought renewable fuels back into the spotlight. “Renewable fuels do provide the ready-made, available now, commercially distributed technology that can reduce emissions immediately and pairs very well with electrification,” he says. Hybrid vehicles’ decarboniza-
tion potential when combined with renewable fuels offers drivers a cheaper option to pursue a lower carbon footprint.
Mandated volumes of SAF provide a firm basis for the growth of the country’s domestic SAF industry, another positive for the biofuels space. B.C. has implemented the first SAF mandate in North America, starting in 2026. The province’s revised LCFS regulations, which came into effect January 2024, mandate a 2% carbon intensity reduction for aviation fuel in 2026, increasing to 10% in 2030. A volumetric mandate begins in 2028, set at 1%, and increases to 3% in 2030.
The potential for a robust Canadian renewable fuels industry is there, but experts agree that the government needs to take action, ensuring that Canadian fuels get a fair shot. “Canada is well-positioned to lead globally in low-carbon fuel production, thanks to its abundant natural resources, existing infrastructure and technical expertise,” Laferriere says. “To realize this potential, CFA supports clear, stable and technology-neutral policies based on carbon intensity. These principles are critical to attracting long-term investment and building a resilient clean fuel sector.”
Author: Katie Schroeder Associate Editor, Biodiesel Magazine
SAF Magazine, in collaboration with the Commercial Aviation Alternative Fuels Initiative (CAAFI), will showcase the latest strategies for aviation fuel decarbonization, solutions for key industry challenges, and highlight the current opportunities for airlines, corporations and fuel producers.
The North American SAF Conference & Expo is designed to promote the development and adoption of practical solutions to produce SAF and decarbonize the aviation sector. Exhibitors will connect with attendees and showcase the latest technologies and services currently offered within the industry.
on the RISE Oilseed
With exclusive licensing to a camelina seed variety, Ash Creek Renewables is breaking down barriers to a renewable future.
BY CAITLIN SCHERESKY
John Cusick has seen many doors open and close in his 20-year career in biofuels. The most recent of these has been the opportunity to serve as CEO of Ash Creek Renewables, a renewable fuel feedstock startup based in Connecticut. ACR is making steady progress, its most recent milestone being the securing of exclusive licensing rights from Montana State University for a high-performance camelina seed variety.
Camelina (Camelina sativa) is a nonfood oilseed variety that is low-carbon and high-energy, requiring very little input and providing a secondary revenue stream for farmers. Camelina shows significant drought and spring freezing tolerance, a resistance to flea beetles, and potential to serve as a beneficial addition to small grain crop rotations, according to MSU. And ACR is just getting started. “We were patient to share what we’ve come up with and what we think we have until we got there,” Cusick says. “We effectively have one of the two new camelina seed licenses Montana State has developed and issued into the private sector, with Sustainable Oils, who has been in Montana for 13 years, getting the other one.
“That was a very big win for a new company and market entrant,” Cusick says. “But the real win for us isn’t the license as much as the opportunity we found for the [camelina] industry with the bioplastics IP, because that is what unlocks the opportunity to scale camelina and create meaningful volumes of camelina oil to decarbonize aviation fuel.”
Maneuvering the Field
Ash Creek’s story begins with Cusick’s previous work in the biomass-based diesel veins of several commodity and renewable energy companies. Many of the insights he’d learn on the business and trade side of the industry would carry into his next venture as a senior analyst and co-owner of The Jacobsen Publishing. “I’m a biodiesel caveman who’s trying to find his way into the innovative future of the world,” Cusick says. “I have a lot of history and experience running large biodiesel trading, large ag reach, heavy trading boots, and dancing amongst the credits and all the various moving pieces of that world for most of my career.
“Ash Creek was founded as I was selling The Jacobsen,” he continues. “While I was doing that, I was starting to get some feelers from the usual recruiters, and there were a bunch of jobs starting to pop up for strategy guys who understood feedstock markets and renewable fuels.”
Cusick called on his connections in private equity from his time at The Jacobsen, resulting in ACR. A young startup, ACR put its eggs in several baskets of interest; this broad excitement paid off when Tailwater Capital, a private equity firm, absorbed ACR. “I had this really amazing couple of years of work with The Jacobsen that parlayed beautifully into strategy and insights into how to build the midstream company between those converted sustainable aviation fuel (SAF) and [renewable diesel] refineries and the feedstock origination,” he says. “So that was our very narrow focus
Camelina sativa is a low-carbon and high-energy oilseed, boasting uses for both the seed's oil content and plant meal.
with Ash Creek. The shift in biomass was diesel to biodiesel to renewable diesel and into SAF, and there were these huge refineries being converted that have traditionally been fed by pipelines and big ships,” he explains. “These whole new supply chains would need to be created to feed these other agricultural inputs, so that was the thesis.”
To begin with, ACR worked on soybean oil. “We had an enzymatic process on the Mississippi River for soybean oil, and we were taking all the metals out of crude soybean oil, making it perfect for renewable diesel, shipping it down to Diamond Green,” Cusick continues. A significant drop in the soy industry due to Low Carbon Fuel Standard credits crashing encouraged ACR to switch its focus to something greater.
“We started ... at 10 feedstocks, and where we are two years later is looking at two,” Cusick says. “We’ve narrowed our focus to used cooking oil because it’s so relevant and so highly valued, and it’s liquid so we can participate today. And then the other high mark we went to is camelina—that’s been something I’ve been excited about since 2007.”
Cusick cites ACR’s next-generation feedstock lead, Mike Logan, as crucial to the success of ACR and its acquisition of camelina. “We came in [to Ash Creek] with a really, really strong team and set of practical experience that we thought was unique in the market, and we continued to build that out over the past couple years,” Cusick says.
A Seed of Many Uses
Camelina has been a hot topic at MSU since its first appearance on campus in 2004 when the Montana Agricultural Experiment Station, a team of faculty and staff focused on crop and animal production research and outreach programs, began its ini-
tial work on the crop. MSU’s focus on the oilseed has been broad since the start, and its work has resulted in the earning of several grants in the process. “We believe [camelina’s] necessary. We believe that to decarbonize stuff, you must have the readily available starting points like camelina catch on fire, because the food versus fuel debate will stop SAF, and there aren’t enough waste oils that can be protected from fraud and supply chain authenticity,” Cusick says. “It’s gotta be camelina. I don’t see another option. I don’t know what camelina’s lifespan is before something better comes, but it’s the only thing that’s baked into EPA pathways, and it’s the logical starting point right now.”
It’s camelina’s oil percentage that truly sets it apart from other oilseeds. MSU reports a 30% to 40% oil content on a dry mat-
Ash Creek Renewables saw a successful camelina yield in its 2024 pilot grows in Montana.
IMAGE: ASH CREEK RENEWABLES
Camelina meal can be converted into a renewable bioplastic, a process on which ACR’s focus resides.
IMAGE: ASH CREEK RENEWABLES
ter basis, which offers a pathway to biofuel production for tracks like SAF. But despite its impressive numbers, the seed’s oil content doesn’t solve everything—it instead makes things a little more interesting. “It’s impossible to scale camelina oil purely on the available credit stack that’s there today,” Cusick explains. “Now, the credit stack started to really shine 10 years ago, when the carbon intensity (CI) value of 16 was attributed to camelina bicarb. That’s when the lights came on for camelina.”
This uphill climb to scalability has led ACR to turn to the rest of the crop to find a balance. The plant meal, too, has potential to serve several areas, including animal food quality improvements, home heating and bioplastics, which Cusick says has become an encouraging area. “Luckily, those two things stand on their own feet where we’ve landed, and what we’ve found is that camelina meal makes an excellent bioplastics input.
“So, by us being able to buoy meal value and show that’s the answer to scale, others are going to chase us—others are going to follow us, innovate around and beyond us. We’re unlocking this to make this work now,” Cusick says.
ACR conducted successful pilot grows in 2024 and is increasing acreage in Montana and North Dakota this spring to grow its newly licensed, received variety, Logan adds. “And I think our original grow last year was super advantageous for us in regard to building a seed inventory, and also to create volume for us to do intense [research and development] into the meal and send down to our partners, Elementa Foods, in Argentina.”
Unexpected challenges have turned ACR into an evolutionary company, an added benefit from its young age. “Right now, quite frankly, it’s really hard to suggest super strong forward earnings from the biofuels market in America,” Cusick says. “So, if we can feed some hog farms and make some money off bioplastics this year, we look like smart guys in the room.”
Reap What You Sow
Receiving exclusive licensing rights for one of two seed varieties isn’t just impressive—it’s a badge of honor. “Ash Creek, two years old with [an initial appetite for] wide feedstock and strategy has now narrowed to yuca and camelina and positioned itself in a really exciting place amongst the present competitive landscape,” Cusick says.
ACR’s competition extends outside of the U.S. all the way to Argentina, where ACR’s partner, Elementa Foods, thrives. “Down there we’ve got Sustainable Oils, Dreyfus, Bungee and Chevron ... So what do we have that differentiates us as the smallest, least tenured player?” Cusick asks. “We’ve got a bunch of smart, creative people. We’ve got amazingly great partners around the U.S., companies like Eni, Macquarie, Tailwater Capital, partners like Montana Renewables, supporting us all along the way,” he says. “And so, you’ve got a really clear competitive landscape.”
For ACR, camelina meal is just as exciting as, if not more than, the oil. “We’re focused on the development of camelina and scaling the cultivation of camelina, and we see that being done by figuring out more innovative and genius ways to create a higher value for the meal,” Cusick explains. “And we have found one in bioplastics, but we’ve got three others we’re going to find, too. And we hope everybody chases us so that we can have camelina, 10 years from now, as a cover crop all over the globe.”
Author: Caitlin Scheresky
Junior Staff Writer, Biodiesel Magazine
ACR's next generation feedstock lead Mike Logan observes a potential camelina field for preplanting in Brady, Montana.
IMAGE: ASH CREEK RENEWABLES
Camelina seeding for 2025 has already begun in Montana, and Cusick is optimistic that the crop will soon take roots worldwide.
IMAGE: ASH CREEK RENEWABLES
Renewable Diesel: A Long-Term Solution for Decarbonization
BY HEIDI HERZOG
For some who don’t believe in technology neutrality and favor hydrogen or electric vehicles, renewable fuels are often described as bridge fuels, transition fuels or stopgaps. However, several major car manufacturers are scaling back on their ambitious EV production targets, which highlights the challenges and complexities of transitioning to a sustainable transportation system. There is no silver bullet to reduce all the greenhouse gas (GHG) emissions within the transportation industry, and we need to leverage all the possible solutions to fight against climate change. As a drop-in solution that works for all types of diesel engines, renewable diesel is already well positioned to be a significant player in the long-term energy landscape.
Long-Term Benefits
The biggest difference between fossil diesel and renewable diesel is the raw materials used. Fossil diesel is derived from crude oil, which accelerates climate change, while renewable diesel is produced from 100% renewable raw materials, even from waste and residue materials such as used cooking oil and animal fat waste. Hydrotreatment technology specially adapted for processing renewable materials allows carbon molecules that already exist in the environment to be used over and over again to create renewable diesel, which means that their combustion in engines does not release any new carbon into the atmosphere. The proprietary NEXBTL technology allows Neste to turn a wide variety of low-quality raw materials into premium-quality renewable products. In 2024, waste and residue materials accounted for 90% of Neste’s total renewable material inputs.
As a leading producer of renewable diesel and sustainable aviation fuel, Neste’s renewable diesel can typically deliver above 60%, even up to 75% less GHG emissions over its life cycle compared to fossil diesel. Furthermore, as a drop-in fuel, renewable diesel works in all types of diesel engines without requiring any modifications to current infrastructure. For fleet operators, the switch to renewable diesel can immediately cut the carbon footprint of their fleet without costly investment in new equipment or interruptions to business.
Neste has produced renewable diesel since 2007 and began selling it in the United States in 2012. Over the past decade, Neste has observed an increase in the consumption of renewable diesel globally as well as in the U.S., mainly driven by two factors: businesses adopting lowerGHG-emission goals and more sustainable solutions to demonstrate commitment to sustainability, as well as supportive policy frameworks like low carbon fuel standard frameworks in states like California, Oregon, Washington and New Mexico that help promote the use of renewable diesel.
Applications Beyond Road Transportation
Today, renewable diesel is primarily used to reduce GHG emissions
from on-highway transportation. However, it is also poised to play a significant role in decarbonizing other heavy-duty segments, such as construction, mining and power generation. These harder-to-decarbonize industries rely heavily on fossil fuels for their operations and lack immediate solutions, such as electrification, to achieve net-zero emissions.
For the construction sector, renewable diesel can power heavy machinery and equipment, reducing emissions from excavation, materials handling and transportation within construction sites. Neste’s partnership with Power Engineering, a construction company specializing in heavy-civil and marine construction, is a good example. Enabled by one of Neste’s fuel distributors, Diesel Direct, Power Engineering transitioned its entire harbor craft marine fuel supply and land-based equipment fleet to run on Neste’s renewable diesel in 2023. In just one year, the switch to renewable diesel helped Power Engineering reduce up to 470 tons of GHG emissions and enabled the company to be compliant with dynamic regulations while maintaining operational performance.
For the mining industry, renewable diesel can be used in mining vehicles, blast operations, haul trucks and more to reduce its climate impact. For power generation, renewable diesel can serve as a cleaner fuel source for backup generators and remote power systems, ensuring that critical infrastructure can remain in operation during outages. In Finland and Singapore, respectively, Neste has helped data center operators Verne and ST Telemedia Global Data Centres transition to renewable diesel to power their backup generators.
CONTRIBUTION: The claims and statements made in this article belong exclusively to the author(s) and do not necessarily reflect the views of Biodiesel Magazine or its advertisers. All questions pertaining to this article should be directed to the author(s).
Neste MY Renewable Diesel is also known as HVO100. It is made from 100% renewable raw materials and reduces greenhouse gas emissions by up to 75% over its lifecycle, compared to fossil diesel.
IMAGE: NESTE
The adoption of renewable diesel in these off-highway applications is crucial for achieving broader decarbonization goals and transitioning toward a more sustainable future. While road transportation has been a primary focus for GHG emissions reductions, renewable diesel offers a viable solution for decarbonizing these hard-to-abate sectors and com plements other solutions that are in early stages of development.
Internal Combustion Engines and Liquid Biofuels
According to a recent research study commissioned by the Engine Technology Forum for heavy-duty vehicles, internal combustion engine (ICE) technology will power one-third to one-half of the new vehicle fleet in 2032. Presently, the few battery-powered and hydrogen-fueled vehicles available typically deliver shorter ranges than ICE engines. Most modern EVs offer a range of over 250 miles on a full charge, and hydro gen fuel cell vehicles can typically offer a driving range of 300 to 400 miles on a full tank of hydrogen. Multiple OEMs are developing hydrogen internal combustion engines (hydrogen ICE). According to Cummins, it has debuted two hydrogen ICE concept trucks, and the heavy-duty truck is expected to have an operating range of more than 500 miles. However, as of 2024, there are only 54 hydrogen stations in the U.S., with most of them in California. While waiting for the numbers of hydrogen vehicles and stations to grow, ICE manufacturers are continuously working to make the next generation of diesel engines combust more efficiently and reduce emissions more significantly.
While manufacturers continuously improve engines, renewable fuel producers are exploring the next generation of raw materials to produce renewable diesel. Currently, hydrotreatment is the most common process employed by commercial fuel producers, with animal fats, used cook ing oil and vegetable oils being among the most common raw materi als. However, these materials alone are not sufficient to meet long-term forecasted demand. To continue driving innovation, producers like Neste are working to develop technologies that can diversify supply with new, scalable materials, such as novel vegetable oils produced with regenerative farming practices and lignocellulosic waste and residue materials. Novel vegetable oils refer to renewable raw materials produced using regenera tive agricultural practices that help restore soil health and increase farm productivity. For example, in early 2025, Neste signed a memorandum of understanding with Bayer that aims to develop a winter canola ecosystem in the U.S. Winter canola not only has the potential to be a lower-carbonintensity raw material, but can also bring additional environmental ben efits to cropping systems. Once they become scalable, these raw materials can play a crucial role in meeting the growing global demand for renew able products.
Renewable diesel is readily available at scale, and it can deliver im mediate GHG emissions reduction for road transportation as well as a variety of heavy-duty industries. For all these reasons, it is evident that renewable diesel is not just a bridging solution, but will continue to play a vital role in the future energy mix for decades to come. We need all the available solutions to fight climate change, and renewable diesel enables us to take actions today to help transportation and heavy-duty industries operate with reduced emissions.
Author: Heidi Herzog Commercial Director, Renewable Diesel Sales & Trading Americas
The Road to Renewable Fuel Readiness Runs Through Feedstock Integrity
The commercial expansion of HEFA-based sustainable aviation fuel and renewable diesel hinges on verifiable feedstock traceability and proactive regulatory engagement.
BY DAVID DIX
As global efforts to decarbonize aviation and ground transport accelerate, the urgency to grow the hydroprocessed esters and fatty acid (HEFA)-based renewable diesel (RD) and sustainable aviation fuel (SAF) business has never been greater. Yet, for producers and developers of such projects, one of the biggest barriers to growth isn’t infrastructure—it’s sourcing consistent, traceable feedstock and complying with complex and evolving regulations.
Despite these challenges, demand for SAF in the U.S. continues to climb. The market’s momentum underscores a growing urgency to overcome feedstock and compliance challenges. In February 2025, U.S. domestic demand for SAF was five times higher than the average monthly demand in 2024, as reflected in the U.S. Environmental Protection Agency’s D4 renewable identification number (RIN) generation data. (Figure 1)
This surge in demand reflects more than just market enthusiasm—it signals a critical juncture for SAF and RD developers. As the industry scales, the ability to align innovative project concepts with the realities of feedstock availability and regulatory expectations becomes a defining factor in long-term viability.
The Feedstock Challenge
To reach a final investment decision, SAF and RD project developers need longterm feedstock security. However, this is often complicated by geography. SAF and RD feedstocks such as used cooking oil (UCO), tallow, soybean oil and canola are often not produced in the same regions where the finished fuels are consumed. For example, UCO is often collected in densely populated urban centers or imported from Asia, whereas SAF production and consumption are frequently concentrated near airports or coastal hubs. This disconnect raises costs and increases lifecycle carbon intensity (CI), which can make it difficult to participate in credit programs like California’s Low Carbon Fuel Standard and similar state and provincial programs.
Technology flexibility adds another layer of investment costs. While most SAFcapable facilities can also produce RD, the reverse is often the case, requiring additional processing infrastructure. As SAF demand grows due to airline decarbonization targets and environmental, sustainability and governance reporting, production flexibility—the ability to switch between RD and SAF—is becoming a strategic advantage for developers. However, adding SAF capacity to an existing RD facility
adds capital expenditure and operational expenditure.
Traceability and Compliance Risks
As feedstock values rise, so does the risk of fraud. For example, regulatory programs in the European Union and United Kingdom restrict or cap many virgin oil feedstocks and create an incentive for UCO fraud in major UCO exporting countries. In some cases, suppliers may fry a single item in virgin oil and falsely label it as UCO to qualify for compliance programs. This not only undermines compliance integrity and increases scrutiny from regulators, but it also disincentivizes the proper end-oflife treatment of materials, as economic pressure favors labeling waste streams as renewable feedstocks, regardless of origin. Feedstock traceability tools that include detailed documentation of origin, transportation and chemical analysis are now critical for maintaining regulatory alignment across jurisdictions.
Recent cases underscore the risk. In Norway, for example, retroactive credit callbacks were issued when imported tallow failed to meet compliance standards. These events signal the growing need for robust chain-of-custody systems and strict supplier verification.
CONTRIBUTION: The claims and statements made in this article belong exclusively to the author(s) and do not necessarily reflect the views of Biodiesel Magazine or its advertisers. All questions pertaining to this article should be directed to the author(s).
SOURCE:U.S.
Aligning Facility Design with Feedstock Geography
Regional advantages must drive feedstock decisions. Tallow is abundant in cattle-producing regions like Texas, Montana and Brazil. UCO thrives in countries with high rates of deep-frying, particularly across Asia. Woody biomass and agricultural residues are prevalent in the Pacific Northwest and southeastern U.S. Eschewing regional logic in favor of convenience often leads to high CI scores and lower credit values.
Furthermore, transportation emissions, energy inputs and process efficiency can impact the CI score of the fuel. Therefore, facility siting decisions should also reflect access to both feedstock and lowcarbon energy inputs.
Timing is Everything
In one recent case, a production facility was built and feedstock secured, only for the company to realize that EPA pathway approval would take nine months to a year to complete. Early engagement with federal and state regulators, as well as thirdparty advisors with regulatory and compliance expertise, is essential to run in parallel to engineering, procurement and front-end planning stages. This approach sets investors and stakeholders on a path to realizing long-term value creation for their RD and SAF investment.
It is also important for SAF and RD developers to work backward from their targeted start date, identifying milestones for life-cycle assessment modeling, feedstock validation and tax credit registration and compliance.
US, EU Policy Picture
Meanwhile, policy uncertainty continues to hamper progress. In the U.S., SAF and RD producers are awaiting further guidance on the Section 45Z Clean Fuel Production Tax Credit under the Inflation Reduction Act. Without it, revenue modeling and investment decisions remain speculative. Meanwhile, the expiration of the Section 40B tax credit and uncertainty surrounding the import treatment of feedstocks, such as tallow, further complicate the market.
In the EU, mandates under ReFuelEU Aviation, part of the “Fit for 55” package, require increasing volumes of SAF in aviation fuel starting in 2025, with targets rising steadily to 2050. It is worth noting that in the EU, the amount of UCO feedstock that can contribute to the Renewable Energy Directive is capped at 1.7% in the road transport sector, but it is not capped in aviation fuel mandates. Meanwhile, maritime programs, such as the FuelEU Maritime Regulation, are expected to drive RD demand, but feedstock competition and infrastructure gaps remain. Globally, a
unified SAF credit and traceability system is lacking, forcing producers and airlines to juggle multiple compliance frameworks with differing definitions and requirements.
Best Practices to Mitigate Feedstock Risk
To navigate these challenges, producers should:
1. Secure long-term feedstock and offtake agreements that align with financing and regulatory requirements and consequences.
2. Document traceability thoroughly, from origin to final use, using bills of lading, testing data and compliance certifications.
3. Engage early with regulators and compliance experts to understand the timing and requirements for fuel pathway approvals and tax credit eligibility.
4. Align feedstock selection with regional supply advantages to minimize lifecycle emissions and cost.
5. Design facilities with flexibility in mind to adjust to future shifts in demand and policy.
Looking Ahead
The renewable fuel sector is at an inflection point. As SAF and RD projects develop, their long-term success depends on feedstock integrity, traceability and regulatory foresight. Clarity on tax credits, global policy harmonization and smarter infrastructure decisions are critical to reducing both operational and capital risk. Developers who treat compliance and traceability not as regulatory hurdles, but rather as strategic investments from the outset, will be best positioned to deliver the low-carbon fuels the world urgently needs.
Author: David Dix
Account Manager, Low-Carbon Petroleum SAF, Renewable Diesel and Carbon Markets EcoEngineers
Figure 1: U.S. Consumption of Domestically Produced SAF
PQ Corporation
PQ’s line of Sorbsil® silica adsorbents is tailored to the feedstock processing of Renewable Diesel and Biodiesel production. They are designed to efficiently remove contaminants, minimize oil loss and waste generation, and reduce plant operating costs. Contact us to learn more and discuss how it can improve biofuel production.
Arnold Wong
Marketing Director
484.467.7018
Arnold.Wong@pqcorp.com
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