Biobased Diesel Magazine Summer 2025

Summer 2025

Best Practices [p.32] Storage, Maintenance Tips for Optimal Biodiesel Performance

The Effects of US Policy Uncertainty [p.24]

Reputation Matters [p.36] BIOBASED-DIESEL.COM

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VOL. 5 ISSUE 2 | CONTENTS

Features

EDITOR AND PUBLISHER: Ron Kotrba editor@biobased-diesel.com GRAPHIC DESIGN: Doug Conboy Raised Brow Productions

32

MAGAZINE PRINTING: Century Publishing

24

COVER PHOTO: MiABC Technical Director Pete Probst collects a biodiesel sample from an underground tank.

PHOTO: MICHIGAN ADVANCED BIOFUELS COALITION Biobased Diesel® is published by RonKo Media Productions LLC. Subscriptions are free of charge to those in the United States and Canada.

To subscribe, visit biobased-diesel.com and fill out the contact form in the website footer. For subscribers outside the United States and Canada, a digital version of the magazine will be emailed. For those located outside the United States and Canada who wish to have a print version of Biobased Diesel® mailed, please email editor@ biobased-diesel.com with the request.

A nominal postage fee may be required.

For mail correspondence, write to: RonKo Media Productions PO Box 86 Warren, MN 56762 All rights reserved. No part of this publication may be transmitted or reproduced in any form without written permission from the publisher.

The information contained within has been obtained from sources believed to be reliable. Neither the publisher nor any other party assumes liability for loss or damage as a result of reliance on this material.

Appropriate professional advice should be sought before making personal, professional, or financial decisions. Outside of our staff authors, articles written by providers or professionals are invited authors and represent the opinions of that particular individual, business, group or organization. ©Copyright 2025 RonKo Media Productions LLC

The Effects of US Policy Uncertainty............24

Policy chaos has contributed to a collapse in profit margins and a decline in production.

By John Campbell

Defossilizing Chemical Production............28 Advanced catalytic processes can optimize conversion of biobased feedstocks.

By Ju Zhu

Departments

Editor’s Note........................ 12 News..................................... 14 Information......................... 20 Perspective.......................... 44

40

Storage and Maintenance Tips for Optimal Biodiesel Performance............................. 32 Industry experts provide best practices for trouble-free operations.

By Karen Potratz

Reputation Matters...............36 How UCO collectors can show the world what they stand for.

By Kristof Reiter

Introduction to CMP Technology Through Circulation Plans....................40 Canned-motor pumps minimize installation costs and operating expenses.

By Jim Hoffman

Advertiser Index American Lung Association....................19 Baker Commodities/New Leaf Biofuel......23 BDI-BioEnergy International...................64 Biobased Diesel Daily®................... 12, 22 Biodiesel Coalition of Missouri................16 Clean Energy Consultants......................59 Clean Fuels Alliance America........... 14, 55 CPM | Crown Global Companies.............10 Desmet.................................................3 Dicalite..................................................5 EcoEngineers.......................................49 Engine Technology Forum.......................51

Evonik.................................................31 Frazier, Barnes & Associates LLC............63 HERO BX................................................4 Imerys...................................................2 Iowa Biodiesel Board/ Iowa Soybean Association......................61 Iowa Central Fuel Testing Laboratory.......45 Michigan Advanced Biofuels Coalition........35 Missouri Soybeans.................................17 Myande Group........................................8 Ocean Park..........................................27

Pacific Biodiesel......................................6 PQ Corp.................................................7 Reiter USA...........................................39 Render magazine..................................18 RINSTAR..............................................53 R.W. Heiden Associates LLC...................13 Saint Paul Commodities........................15 Teikoku USA Inc....................................43 Topsoe.................................................47 Veriflux................................................57 WWS Trading..........................................9

Biobased Diesel® Summer 2025 [11]

EDITOR’S NOTE |

UNLEASH US Dear President Trump, I realize the chances of you reading this are slim, but I am taking this opportunity in my editor’s note to let you know that hardworking Americans who helped get you elected twice are suffering. These farmers, renderers, grease collectors, oilseed crushers, biodiesel producers and even petroleum refiners who manufacture renewable diesel and sustainable aviation fuel (SAF) have endured significant hardship recently. They are counting on you to fix these policy disasters and save a great American energy industry, over 100,000 jobs and hundreds of billions of dollars in economic activity and investment.

You say you are committed to unleashing American energy.

Of all the energy sectors we have, biobased diesel is the most American. Midwestern farmers grow soybeans crushed at agprocessing facilities to make animal feed and soybean oil, grease collectors aggregate fryer grease from places like McDonald’s where you enjoy the food, and these materials are converted at production facilities throughout this land into liquid gold, a renewable substitute for diesel fuel that powers the great American economy—commerce, construction, farming, overthe-road trucking, shipping, aviation, home heating and so much more.

I understand you disavow “climate change” but biodiesel existed long before the “Green New Deal.” In fact, American biodiesel began in the early 1990s as an ingenious way for farmers to develop a value-added product to consume the growing glut of soybean oil that was dragging down farm prices. This was also a way then, and after 9/11, to reduce dependence on foreign oil. The fuel also provided much-needed lubricity when the federal government lowered sulfur limits for diesel fuel. It is higher cetane as well and reduces many tailpipe emissions like particulate matter. As political agendas changed over the years, biobased diesel also happened to be recognized as low carbon,

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which isn’t a bad thing, Mr. President, considering all the other benefits to rural America, air quality and the economy at large.

The former administration set volumes for biobased diesel under the Renewable Fuel Standard far below industry capacity for three years (2023-’25). This not only devastated biodiesel producers, particularly the smaller ones, but it also adversely impacted those who critics said you catered to during your first term—petroleum refiners, most of which now make renewable diesel and SAF. You can fix this by directing EPA to set volumes at 5.25 billion gallons for 2026 and 5.75 billion gallons for 2027.

I realize EPA’s proposal may come out before this magazine is printed. In that case, there is time between the proposal and final rule to do this.

The previous administration also failed to provide clear and speedy guidance on section 45Z, which has created significant uncertainty since the biodiesel tax credit lapsed and 45Z was supposed to replace it. Your influence in Congress to bolster 45Z and make it more robust and fairer for biodiesel and renewable diesel, specifically those fuels made from crop oils grown by American farmers, would very much help get people in these industries back to work. The draft passed in the House’s version of the “big, beautiful bill” is a good start.

If you truly want to unleash American energy and make this country energy dominant again, then simply unleash us. The fine, hardworking men and women in the biobased diesel sector are ready to roll up their sleeves and make it happen.

Ron Kotrba Editor and Publisher

Correction: In the Summer 2024 print issue, we incorrectly labeled author photos in the Topsoe article on pages 40-42. This has been corrected in the digital version found at biobased-diesel.com/print.

Biobased Diesel® Summer 2025 [13]

NEWS |

SAF News Briefs

Global project development and completion dominate headlines.

Topsoe has secured three contracts so far this year to supply its HydroFlex® technology for sustainable aviation fuel (SAF) manufacturing in China, and its fourth since April 2024. In May, Topsoe announced an agreement with Zhongneng Yida for its technology at a project in Shijazhuang to produce 400,000 tons per year (tpy) of SAF for operations in 2027. In April, Topsoe signed a contract with Zhejiang Jianglan for a 300,000 tpy project in Zhoushan City expected to start in late 2026. In January, Topsoe announced an agreement with Chuangui New Energy in Qinzhou City for its technology deployment at a 300,000 tpy SAF plant to be running by the end of 2026. [BBD] Calumet Inc. plans to implement the first phase of the MaxSAF™ expansion project at its Montana Renewables subsidiary in Great Falls for much cheaper than previously anticipated. The MaxSAF™ project will expand SAF capacity from 30 million gallons a year (mgy) to 300 mgy by 2028, for which the company received a $1.44 billion U.S. DOE loan guarantee. Previously, the company expected to reach half its fully expanded SAF capacity—approximately 150 mgy—by 2026 through installation of a second reactor at an estimated cost of $150 million to $250 million. Now, Calumet anticipates achieving 120 mgy to 150 mgy of SAF capacity in 2026 at a fraction of the original cost—just $20 million to $30 million. Two years of operating experience, debottlenecking and better utilization of its existing technology will be leveraged to reach Phase 1 expansion at the reduced cost. [BBD]

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Bangchak Group inaugurated Thailand’s first standalone neat SAF production unit at the Bangchak Phra Khanong refinery. Operated by BSGF Company Ltd., a Bangchak Group affiliate, the unit features an initial production capacity of more than 264,000 gallons per day. The production process was developed in collaboration with two global technology leaders: Desmet of Belgium, specializing in pretreatment technologies, and Honeywell UOP of the U.S. [BBD] Total Energies confirmed in April that an initial project to produce 50,000 tpy of SAF via coprocessing will be implemented at its Antwerp refinery in Belgium this year. [BBD] Neste Corp. started producing SAF at its biorefinery in Rotterdam, the Netherlands, this spring. The refinery has been modified to enable up to 500,000 tpy of SAF production (approximately 165 mgy).

As a result, Neste’s global SAF production capability has increased to 1.5 million tpy. Neste continues its strategic growth-investment project in Rotterdam, which will more than double the company’s production capacity there to 2.7 million tpy of renewables, making the site the world’s largest facility producing renewable diesel and SAF. This expansion, to be completed in 2027, will increase Neste’s total global annual renewable fuels production capacity to 6.8 million tons with total annual SAF production capability accounting for 2.2 million tons. Neste also has SAF production capabilities in Singapore and Finland. [BBD] BP has successfully led a taskforce to achieve approval from the U.K. defense ministry for coprocessing SAF with up to 30 percent feedstock concentration, a significant increase from the current limit of 5 percent. This standard is now approved for the production of Jet A-1 globally, BP stated. [BBD]

Renewable Diesel News Briefs Two U.S. biorefineries implement solar power.

A solar facility at Phillips 66’s Rodeo Renewable Energy Complex in California is now operating. The development, a collaboration between Phillips 66 and NextEra Energy Resources, is one of the largest on-site solar facilities in the U.S. and the largest in California. The Rodeo complex is scaled to produce 800 million gallons per year (mgy) of hydrotreated biofuels, mostly renewable diesel and up to 150 mgy of sustainable aviation fuel (SAF). The 30.2-megawatt facility reduces Rodeo’s grid-power demand by 50 percent. [BBD] In early April, BioStar Renewables said it has partnered with Sea­board Energy to develop and construct a behind-the-meter solar array to produce electricity for Seaboard’s 85 mgy renewable diesel plant in Hugoton, Kansas. The 15-megawatt solar array consists of more than 27,000 solar panels. BioStar developed the project and provided engineering, procurement and construction (EPC) services. [BBD] Desmet has been awarded a new contract by LG-Eni Biorefining, a joint venture between LG Chem and Eni. In collaboration with the main contractor GS Engineering & Construction, Desmet said it will deliver a hydrotreated vegetable oil (HVO) pretreatment plant in Daesan, South Korea. The state-of-the-art facility will feature cutting-edge technology and an impressive capacity to enable up to

340,000 tpy of HVO, SAF and bionaphtha production from a variety of waste feedstocks. [BBD] A new study commissioned by Clean Fuels Alliance America and conducted by GlobalData shows the U.S. biobased diesel industry generated $42.4 billion in economic activity in 2024, supported 107,400 jobs and paid $6 billion in annual wages.

The study used actual data from 2024, including 5 billion gallons of domestic production. The study also analyzed a near-future capacity scenario of 7.4 billion gallons. At that level, the industry could support 145,700 jobs and contribute $60.25 billion annually to the U.S. economy. [BBD] Global Clean Energy Holdings, which owns a renewable diesel facility in Bakersfield, California, announced in mid-April that it has filed for Chapter 11 bankruptcy. The company plans to restructure and continue operating with support from its lenders. [BBD] The Canadian International Trade Tribunal terminated an inquiry into dumped and subsidized renewable diesel from the U.S., a trade complaint initiated by Tidewater Renewables in late 2024.

“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 CEO Jeremy Baines. [BBD] A key ingredient for the renewable diesel sold in Europe is likely fraudulent, according to a study by the European Federation for Transport and Environment (T&E). Nearly twice as much palm-oil mill effluent (POME), a residue of palm-oil production, is being used for European biofuels than is available globally. “There needs to be stronger policy restrictions, and dedicated incentives for POME biofuels should be removed to avoid ‘waste’ biofuels simply being palm oil in disguise,” T&E said. [BBD]

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NEWS |

Biodiesel News Briefs

Project developments juxtaposed with revenue loss, layoffs and plant closure.

Argent Energy commissioned a wastewater membrane bioreactor (MBR) at its biodiesel plant in Amsterdam, the Netherlands. Now both of Argent Energy’s biodiesel facilities in Stanlow, U.K., and Amsterdam are equipped with MBR systems, with each plant recycling all process water. The advanced microfiltration technology ensures wastewater is cleaned and reused. With plans to soon triple its biodiesel capacity in Amsterdam, the MBR system will play a crucial role in managing water use efficiently at the site. [BBD] Brazilian biodiesel producer Be8 started operations at its new BeVant manufacturing unit in Passo Fundo, Rio Grande do Sul, Brazil, this spring. BeVant is a highly pure biodiesel that can be used at 100 percent concentration (B100). The product undergoes double distillation and receives chemical additives in a patented process. Be8 has also received certification from California Air Resources Board for its biodiesel pathway based on animal fats.

It is the first biodiesel producer in South America authorized by CARB to export biodiesel to California made via this production route under the Low Carbon Fuel Standard. [BBD] BDI-BioEnergy International signed a contract with Ghent Renewables BV to begin construction of a feedstock-pretreatment plant in Belgium. This facility will integrate BDI’s advanced technologies for feedstock refining and will feature significant production capacity. Construction is underway and the plant is expected to be running by the end of 2025. [BBD]

Hawaii Gov. Josh Green proclaimed March 18, 2025, to be “Pacific Biodiesel Day” in Hawaii, honoring Pacific Biodiesel on its 30th anniversary. National Biodiesel Day is observed across the U.S. on March 18. Pacific Biodiesel created the first retail biodiesel pump in America on Maui where the company was founded in 1995

by Bob and Kelly King. Pacific Biodiesel is the longest-operating biodiesel producer in the U.S. and produces nearly 6 million gallons per year (mgy) at its refinery on Hawaii Island. [BBD] Despite FutureFuel Corp.’s first-quarter (Q1) revenue dropping 70 percent compared to Q1 2024 and a net loss of $17.6 million due, in part, to an extended turnaround at its nearly 60 mgy biodiesel plant in Batesville, Arkansas, the company continues to invest in growth. “Our new backward-integrated capacity project remains on track and is expected to come online in late summer,” FutureFuel stated. “We anticipate it will begin contributing revenue by the end of Q3.” [BBD] Chevron is laying off 70 people from its Renewable Energy Group headquarters in Ames, Iowa, effective June 18. The layoffs repre­sent nearly a quarter of the Chevron REG workforce in Ames. [BBD] Greenergy has temporarily suspended operations at its biodiesel plant in Immingham, England, due to challenges facing the U.K. biofuels industry. [BBD])

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11/7/2024 11:40:48 AM

IMO advances net-zero agenda, shipping firms leverage biofuels to reduce customers’ supplychain emissions.

The International Maritime Organization achieved another step toward establishing a legally binding framework to reduce greenhouse-gas (GHG) emissions from ships globally, aiming for net-zero emissions by or around 2050. The IMO net-zero framework is the first in the world to combine mandatory emissions limits and GHG pricing across an entire industry sector. Approved by the Marine Environment Protection Committee during its 83rd session (MEPC 83) April 7-11, the measures include a new fuel standard for ships and a global pricing mechanism for emissions. These measures, set to be formally adopted in October before entry into force in 2027, will become mandatory for large ocean-going ships over 5,000 gross tonnage, which emit 85 percent of the total CO2 emissions from international shipping. For the biofuel sector, one of the key outcomes of the MEPC 83 approval is the biofuels carriage limit for conventional bunker tankers will be raised from 25 percent to 30 percent. [BBD] Denmark-based shipping company Norden is working on a pilot project with Microsoft to help reduce Microsoft’s maritime supply-chain emissions by utilizing Norden’s biofuel voyage and book-and-claim solution. Norden used certified waste-based

Swire Shipping has switched three of its vessels serving the South Pacific to B24 and B30 marine biofuel. The vessels will bunker B24 in Singapore in the second quarter en route to the South Pacific and will subsequently transition to B30. The biofuel program brings together Swire Shipping and its sister company, Argent Energy, a waste-based biodiesel producer. The collaboration includes an agreement with BP, a supplier of biofuel in Singapore, to explore new feedstocks for marine fuel. With the launch of its biofuel program, Swire Shipping will also launch a carbon-abatement program, Voyage to Zero, to help customers decarbonize their supply chains. Participating customers will receive third-party verified certificates of emission savings toward scope 3 emissions reductions. Last August, Swire Shipping conducted a successful B24 trial that allowed the company to test operational readiness to adopt biofuels on its owned vessels for the long term. [BBD]

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Marine Biofuel News Briefs

biofuel over several voyages, offering an 80 percent to 90 percent lifecycle-emissions reduction compared to traditional fossil fuels.

Norden then transferred the emissions reductions to Microsoft via its book-and-claim solution, providing full transparency on the transferred reductions. In other company news, Norden performed its first-ever biofuel voyage out of the U.S. in collaboration with its customer Albioma. The certified B24 blend was bunkered in the port of Houston, Texas, prior to loading 30,000 metric tons of wood pellets in Mobile, Alabama. The biofuel was used on a voyage to an island in the Indian Ocean, where the wood pellets were discharged. With a new supplier in place, Norden said it can now provide customers trading out of the U.S. with marine biofuel, supporting the company’s ambition to lower its customers’ supplychain emissions. [BBD]

Biobased Diesel® Summer 2025 [17]

What’s Affecting Tallow and UCO Markets?

Find out in Render magazine!

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INFORMATION |

U.S. SAF Production Capacity Grows 1,400% Since Early 2024

IMAGE SOURCE: U.S. ENERGY INFORMATION ADMINISTRATION DATA SOURCE: U.S. ENERGY INFORMATION ADMINISTRATION, PETROLEUM SUPPLY MONTHLY, COMPANY ANNOUNCEMENTS AND TRADE PRESS. NOTE: OTHER BIOFUELS INCLUDES SAF, RENEWABLE HEATING OIL, RENEWABLE NAPHTHA, RENEWABLE PROPANE, RENEWABLE GASOLINE AND OTHER EMERGING BIOFUELS THAT ARE IN VARIOUS STAGES OF DEVELOPMENT AND COMMERCIALIZATION. SAF PRODUCTION CAPACITY IS AN ESTIMATE BASED ON COMPANY ANNOUNCEMENTS AND TRADE PRESS AND ONLY INCLUDES HYDROPROCESSED ESTERS AND FATTY ACIDS (HEFA) SAF. EIA DOES NOT PUBLISH SAF PRODUCTION CAPACITY DATA.

Sustainable aviation fuel (SAF) production is growing in the United States as new capacity comes online. U.S. production of “other biofuels,” the category the U.S. Energy Information Administration uses to capture SAF in its Petroleum Supply Monthly, approximately doubled from December to February.

Investments in SAF have increased, according to EIA, because of the federal Renewable Fuel Standard, federal tax credits and state programs and tax credits incentivizing use of the fuel.

In addition to SAF, EIA’s “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, which are byproducts of renewable diesel manufacturing, made up most of the “other biofuels” production and was increasing 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 [20]

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production capacity was only around 2,000 barrels (84,000 gallons) per day, 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 barrels (1.05 million gallons) per day in late 2024. Phillips 66 completed its 10,000-barrel-per-day (420,000-gallonper-day) SAF project in Rodeo, California, in the third quarter of 2024, before temporarily halting production in the fourth quarter.

Diamond Green Diesel completed its 15,000-barrel-per-day (630,000-gallon-perday) SAF project in Port Arthur, Texas, in the fourth quarter.

A couple of smaller projects will bring additional SAF production capacity online in 2025. New Rise Renewables announced it began SAF production at its plant in Reno, Nevada, in February, adding up to 3,000 barrels (126,000 gallons) per day 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 barrels (84,000 gallons) per day of SAF production capacity.

With SAF production capacity now around 30,000 barrels (1.26 million gallons) per day and growing in 2025, SAF will likely drive significant growth in “other biofuels” production and make up most of the fuel in that EIA category.

In January, U.S. production of “other biofuels” reached 33,000 barrels (nearly 1.39 million gallons) per day, nearly 30 percent more than the previous record high set in September. Production increased another 30 percent in February to 44,000 barrels (nearly 1.85 million gallons) per day.

In EIA’s latest Short-Term Energy Outlook, it forecasts that U.S. production of “other biofuels” will more than double between 2024 and 2025 and increase by about another 20 percent in 2026. Although 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 percent of about 1.7 million barrels (71.4 million gallons) per day of U.S. jet fuel consumption in 2025 and about 2 percent in 2026.

U.S. Biodiesel Use Increases Outside of Transportation Sector

“

EIA estimates that the residential and commercial sectors combined accounted for nearly 5 percent of U.S. total biodiesel consumption in 2023, up from about 1 percent a decade earlier.

IMAGE SOURCES: U.S. ENERGY INFORMATION ADMINISTRATION DATA SOURCES: U.S. ENERGY INFORMATION ADMINISTRATION, STATE ENERGY DATA SYSTEM

A small but increasing amount of biodiesel in the United States is consumed in the residential, commercial and electric-power sectors, according to new estimates now published in the U.S. Energy Information Administration’s State Energy Data System. Previously, EIA allocated all U.S. biodiesel consumption to the transportation sector, where the vast majority of biodiesel is consumed.

Biodiesel is a renewable fuel produced using fats, oils or greases usually blended with petroleum diesel and consumed by trucks. In 2023, the most recent year for which EIA has estimates, the transportation sector accounted for about 95 percent of the nearly 46 million barrels (1.93 billion gallons) of biodiesel consumed in the United States.

Biodiesel can also be blended with heating oil to heat homes and businesses. EIA estimates that the residential and commercial sectors combined accounted for nearly 5 percent of U.S. total biodiesel consumption in 2023, up from about 1 percent a decade earlier. The introduction of biofuel-blending mandates for heating oil in some Northeast states is contributing to that growth. Although customers in other states likely blend biodiesel to heat homes and businesses, EIA said it only estimates consumption for New York, Connecticut and Rhode Island.

Consumption of biodiesel in the residential and commercial sectors is higher in New York than in any other state, accounting for 57 percent of the U.S. total for those sectors in 2023. New York City passed the nation’s first law requiring biodiesel blending with heating oil, mandating a minimum 2 percent biodiesel blended with heating oil beginning in 2012. Later, New York enacted a 5 percent minimum state-wide blend law beginning in 2022, which increases to 10 percent in 2025 and 20 percent in 2030. According to the U.S. Census Bureau’s American Community Survey, nearly 16 percent of homes in New York used heating oil as their primary heat source in 2023, about four times more than the U.S. average of about 4 percent.

Connecticut and Rhode Island also have similar statewide minimum biofuel-blend laws for heating oil. Connecticut’s 5 percent blend law began in 2022 and ramps up to 10 percent in 2025, 15 percent in 2030, 20 percent in 2034, and 50 percent in 2035. Rhode Island was the first state to enact a minimum biofuel heating-oil blend law that began with a 5 percent blend in 2017 and increased to 10 percent in 2023. Rhode Island’s blend law increases more quickly than the other states—up to 20 percent in 2025 and 50 percent in 2030. More than

34 percent of homes in Connecticut and 26 percent of homes in Rhode Island reported heating oil as their primary heat source in 2023.

Biodiesel can also be burned to generate electricity, and the electricpower sector accounted for less than 1 percent of U.S. biodiesel use in 2023. In 2006, a test plant in Tennessee reported the first biodiesel use for electric power in the United States. Hawaii has accounted for nearly all U.S. biodiesel consumed for electric power since 2009. In 2023, petroleum fueled about 68 percent of Hawaii’s total electricity generation, the highest share of any state, and EIA estimates that biodiesel fueled about 1 percent of the state’s total generation.

Biobased Diesel® Summer 2025 [21]

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FEATURE |

The Effects of US Policy Uncertainty Policy chaos has contributed to a collapse in profit margins and a substantial decline in production, but higher RVOs and a modified 45Z credit could stimulate a quick revival.

By John Campbell The U.S. biobased diesel (BBD) industry has faced challenging times and an uncertain future frequently over the past 30 years. Led by farmers, it has continued to grow from very meager beginnings to a robust industry dominated by major oil companies accounting for an estimated $42 billion in economic impact.

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The renewable fuels policy environment has never been as chaotic as it is today. Does renewable fuels policy fall under the rubric of “the green new scam” or is it an answer to the “energy emergency” declared by President Trump? Trying to outguess policy direction is futile, but we know that Trump 2.0 is far different than Trump 1.0, at least to date. In the first

Trump administration, there were wins and losses for biofuels.

For example, renewable volume obligations (RVO) under the federal Renewable Fuel Standard were set reasonably high, but they were mitigated by substantial amounts of small-refinery exemptions (SREs).

On tax policy, the industry is dependent on a new clean fuel production credit hooked to a carbon-intensity (CI) score included in section 45Z of the Inflation Reduction Act of 2022. Section 45Z was intended to replace the blenders tax credit (BTC), but the rules were not finalized by the Biden administration. While the U.S. Department of the Treasury and Internal Revenue Service released initial guidance regarding section 45Z and the production tax credit (PTC) this January, there have been further amendments as evidenced by the House committee’s draft bill in May to extend the 45Z tax credit through 2031 (from 2027). The consequence of this continuing ambiguity is that most renewable diesel and biodiesel producers are neither booking these tax credits nor able to monetize them.

Policy uncertainty has contributed to a collapse in profit margins and a substantial decline in production. Diamond Green Diesel, the renewable diesel bellwether jointly owned

by Darling Ingredients and Valero, generated only 6 cents of EBITDA per gallon in the first quarter (Q1) of this year compared to 69 cents in Q1 2024, a 91 percent decline. DGD’s total renewable diesel production decreased by 36 percent during this period. Darling Ingredients stated on its earnings call that “DGD had a challenging first quarter with lower-than-expected margins … Receiving guidance on 45Z in late January created a choppy first quarter as supply chains had to be redirected, contracts had to be modified, and customers had to adjust.” HF Sinclair, another renewable diesel producer, indicated that “our goal is to have our renewable diesel business be break even, to slightly positive in these bottom-of-market conditions.”

In Q1 2025, total U.S. BBD production of 868 million gallons declined by 34 percent compared to Q4 2024 and decreased by 18 percent versus Q1 2024, as shown in the chart below.

Renewable diesel production peaked in Q4 2024 at 865 million gallons but subsequently fell by 27 percent to 633 million gallons in Q1 2025. Biodiesel experienced a significantly

“

The proposed amendments to section 45Z would disallow use of the discredited indirect land-use change from computer models that assign CI scores for vegetable oils. larger decline than renewable diesel, with Q1 2025 production decreasing by nearly 50 percent from the prior quarter. This January’s monthly biodiesel production of just 66 million gallons set a new multiyear record low. Typically, there is an inventory buildup in the last months of a year when the BTC expires. This results in lower production the following quarter and a “risk on,” no-tax-credit environment.

Trade policy is not just about tariffs but also about the application of the PTC, in which eligibility for the 45Z tax credit is limited to producers of clean transportation fuels made from feedstocks produced or grown in the U.S., Canada and Mexico—as opposed to the old BTC, which allowed foreign feedstocks and production to qualify. This may encourage the greater use of domestic feedstocks, thereby strengthening domestic supply chains.

Total feedstock used for U.S. BBD production has nearly tripled from 13.4 billion pounds in 2020 to 38 billion pounds in 2024, as illustrated in the table on page 26. While soybean oil constitutes the greatest share of vegetable oils, its usage in total BBD production has declined sharply from 63 percent in 2020 to 35 percent in 2024. Among waste feedstocks, used cooking oil (UCO) has grown its share exponentially by over 600 percent, from 1.1 billion pounds in 2020 to 7.4 billion pounds in 2024. In addition, tallow, which comprises 84 percent of total animal fats, has grown its usage in total BBD production from 3 percent in 2020 to 19 percent in 2024.

In recent years, there has been a robust expansion in both soybean crushing and renewable diesel capacity, which is at odds with an RVO that was disappointingly low. Soy crushers

Biobased Diesel® Summer 2025 [25]

US Imports by Waste Feedstock, 2020-2024 B lbs 8

7.5

6

4.9

4 2 0

2.2 1.1

0.9

0.5

0.7

1.2

2020

2021

2022

0.8

UCO

Tallow

5.4

3.0 1.7 0.2 2023

1.9 0.2 2024

White Grease

SOURCE: RENDER MAGAZINE

and renewable diesel producers may or may not follow through on announced capacity expansions depending on what happens with future RVO announcements and especially SRE policy. Limitations on conventional ethanol blending spill over into demand for BBD beyond the BBD RVO. SREs are a hall pass for total biofuel demand unless exempt obligated-party volumes are reallocated to nonexempt parties.

Both the yet-to-be-finalized PTC and proposed California Air Resources Board rules reduce the viability of soybean oil as a feedstock for BBD, thereby pushing the demand for imported low-CI waste feedstocks such as UCO and tallow. As recently as 2021, the U.S. was a net exporter of waste feedstocks. The subsequent renewable diesel construction boom, led by the obligated parties, resulted in a complete reversal with the U.S. importing 7.5 billion pounds of waste feedstocks in 2024, as shown in the chart above. UCO comprised the greatest imports at 5.4 billion pounds and increased 80 percent year-over-year, of which 54 percent originated from China in 2024.

The proposed amendments to section 45Z would disallow use of the discredited indirect land-use change from computer [26]

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models that assign CI scores for vegetable oils. This change would help level the playing field among feedstocks. Since 45Z eligibility precludes feedstock imports outside of North America, this may help offset the trend of declining soybean-oil usage.

How will all of the policy variables sort out? Keep in mind that the RVO drives total demand and tax policy allocates who pays the premium for BBD—consumers or taxpayers. Under the proposed PTC, policy changes will also drive relative feedstock values based on CI scores.

Author: John Campbell Managing Director Ocean Park 402-680-7111 jcampbell@oceanpk.com

Biobased Diesel® Summer 2025 [27]

FEATURE |

Defossilizing Chemical Production

The chemical sector’s future is being shaped by industrial demand for diversified inputs, regulatory pressures and changing consumer priorities.

By Ju Zhu Almost 90 percent of feedstocks used to produce chemicals are currently derived from fossil fuels such as crude oil, natural gas and coal. These sources have been the backbone of the chemical industry for decades. They provide the initial raw materials needed to produce intermediate chemicals through manufacturing processes and, ultimately, a vast array of downstream products integral to our modern society and economy. As the global population grows and industrialization [28]

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continues—driving demand for more consumer goods, agricultural products and technological advancements—fossil feedstocks will no doubt continue to play a role, with demand projected to increase in the foreseeable future.

The reliance on fossil-based feedstocks, however, is not without its challenges. The extraction and processing of these materials contribute to greenhouse-gas emissions, air and water pollution, and ecological disruption. Approximately 6

percent of global CO2-equivalent emissions are attributed to the chemical industry. Additionally, the finite nature of fossil resources raises concerns about long-term sustainability and supply security. These issues are compounded by fluctuating prices and geopolitical tensions that can disrupt supply chains and affect market stability.

A combination of regulatory and voluntary forces is propelling the shift from fossil feedstocks to more sustainable alternatives. Initiatives like the European Climate Law, the U.S. Federal Sustainability Plan and ISO Net Zero Guidelines mandate renewable energy use, providing financial incentives for biobased technology development and enforcing stricter environmental regulations. As such, many chemical companies are setting ambitious sustainability targets regarding emission reduction and increasing their use of biobased and circular raw materials. In parallel, consumer demand for sustainable products has been growing, as more people prioritize environmental responsibility and are willing to pay a premium for ecofriendly options.

While the chemical industry may currently be based on fossil energy, its future stands to be shaped by an increasing industrial demand for diversified feedstocks, regulatory pressures and changing consumer demand. As such, we can expect to see a greater embrace of defossilization and the expansion of biobased feedstocks—with catalysts playing a crucial role.

Decarbonization or Defossilization?

A sustainable chemical industry does not necessarily require comprehensive “decarbonization” since most chemicals inherently contain carbon atoms essential to their structure. It is possible to significantly defossilize the industry, however, by replacing fossil feedstocks with alternative nonfossil sources of carbon (such as reusable plastic waste and renewable biobased feedstocks), facilitating the transition to a net-zero chemical industry.

Despite its importance, defossilization faces several significant hurdles and challenges that have slowed its widespread implementation. These include technological limitations in developing and scaling up the use of nonfossil alternatives, high economic costs compared to cheaper fossil fuels and complex supply-chain issues for nonfossil materials.

Additionally, inconsistent regulations and lack of supportive policies, along with the need to increase market acceptance and consumer demand for nonfossil-based products, further complicate the transition.

While defossilization presents challenges, it also offers opportunities for innovation and the development of new products and processes, opening up new markets and fostering growth. Biobased feedstocks have evolved as a key component in defossilization, attracting growing interest and significant efforts towards technological advancements.

Biobased Diesel® Summer 2025 [29]

Biobased Feedstocks: The Current State

Biobased feedstocks are renewable raw materials derived from biological sources. They are generally classified into three main categories: • First generation, derived from traditional edible crops such as corn, sugarcane and soybeans.

• Second generation, referring to nonfood cellulosic crops, residues or waste from agriculture, forests and municipalities.

• Third generation, obtained from nontraditional organisms, typically nonland-based sources like algae.

These diverse sources offer flexibility and the potential to tap into locally available resources, thereby reducing dependency on imported fossil fuels. The chemical industry can integrate biobased feedstocks into existing production processes or develop new processes specifically designed for these materials, depending on the varying levels of difficulty.

Utilizing first-generation biobased feedstocks is relatively straightforward due to their well-studied chemical composition and established processing technologies. Several biobased products sourced from these feedstocks are already in commercial production. For example, NatureWorks manufactures polylactic acid (PLA) from corn starch for biodegradable plastics; Raízen produces bioethanol from sugarcane, a well-established biofuel; and Braskem produces biobased polyethylene from sugarcane ethanol. Despite their presence, these biobased products currently represent a small fraction of the overall market. While first-generation biobased feedstocks have been instrumental in advancing the biofuel industry and remain essential to current production, especially in regions like Southeast Asia, there are ongoing efforts to optimize their use while improving sustainability.

A Catalytic Necessity

As the generations of biobased feedstocks advance, their utilization difficulty increases due to their inherently complex composition. Notably, these feedstocks help mitigate food competition and utilize waste, offering greater environmental benefits and future potential.

In the realm of second-generation biobased feedstocks, Evonik Catalysts has achieved considerable success by using alkoxide catalysts to produce sustainable biodiesel fuel from waste fats such as used cooking oil or tallow. Nonfood cellulosic crops and agricultural/forest residues, when used to produce higher-value-added bioproducts—such as furanbased chemicals and materials—typically involve more complex and costly decomposition and conversion processes due to their high cellulose and lignin content. As such, the solution requires active collaboration among catalyst-manufacturing companies, key industry stakeholders and companies across the entire value chain to collectively facilitate the industrialscale production and application of these nonfood biomassderived chemicals and materials.

The challenges are even greater with third-generation biobased feedstocks. Considerations that need to be taken into account include optimizing algae-growth conditions, efficient harvesting, cost-effective conversion processes, scaling up production and more.

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“

Biobased feedstocks have evolved as a key component in defossilization, attracting growing interest and significant efforts towards technological advancements.

Addressing these challenges requires continuous—and, in some cases, disruptive—technological innovations. By leveraging advanced catalytic processes, the industry can optimize the conversion of biobased feedstocks into highvalue products more efficiently and cost effectively, improving scalability and economic viability. With a focus on biobased feedstocks, Evonik continues to prioritize research and development in catalyst innovation to enhance the efficiency and sustainability of converting renewable resources into valuable products.

Evonik’s Next Gen catalysts enable defossilization of the process industry by driving more efficient and sustainable production methods. The company’s alkoxides catalysts portfolio assists in reducing energy consumption and carbon footprint, and optimizing resource efficiency through improved selectivity and yield, which helps maximize biodiesel output while minimizing waste. These catalysts also facilitate the use of alternative raw materials to reduce reliance on fossil fuels, enabling biobased feedstocks to be transformed into valuable fuels, chemicals and materials for greater circularity.

Conclusion

As the chemical industry seeks to reduce reliance on fossil fuels, an exhaustible resource that poses significant environmental and economic challenges, biobased feedstocks offer a renewable and sustainable alternative. In theory, the production and use of these alternative feedstocks could be sustained indefinitely. Financial incentives, continuous innovation and robust collaboration are necessary, however, to increase adoption—similar to how the fossil-fuel industry has historically been supported. This transition is both an environmental necessity and a strategic opportunity to future proof the wider industry.

Author: Ju Zhu Innovation and Growth Manager Evonik Catalysts ju.zhu@evonik.com

Let your Biodiesel Business flourish.

Growth in renewable fuels like biodiesel is unstoppable. So are your partners at Evonik – with reliable supplies of alkoxides to keep your biodiesel business up and running. And targeted technical support when and where you need it. With production facilities in all major markets, we’re never far away. Let’s talk about boosting your business in this key source of renewable energy.

Are you interested in learning more?

Please contact us at: Evonik Corporation Phone +1 331 666-8235 fabio.tufano@evonik.com evonik.com/catalysts

Let’s talk about what Evonik can do for you.

Evonik Catalysts. Let’s make a difference.

Biobased Diesel® Summer 2025 [31]

FEATURE |

Storage and Maintenance Tips for Optimal Biodiesel Performance Follow these best practices for trouble-free operations.

By Karen Potratz High-quality fuel samples should be clear and bright. Keep in mind that even the best-quality fuel will fail if the tank or dispensing equipment is faulty or contaminated.

PHOTO: MICHIGAN ADVANCED BIOFUELS COALITION

Whether you are running on petroleum or biobased fuels, storage and dispensing systems need regular maintenance to ensure optimal fuel performance. Too often, biodiesel is falsely blamed for fuel issues when the real culprit lies within the storage system. Even the best-quality fuel will fail if the tank or dispensing equipment is faulty or contaminated. To avoid problems, always follow these best practices, especially when implementing biofuels for the first time.

Avoid Water Contamination Water is the No. 1 enemy of fuel quality, corroding tanks, promoting microbial activity and leading to fuel icing during cold weather. Pete Probst, technical director for the Michigan Advanced Biofuels Coalition (MiABC), advises operators to sample fuel tanks at least once per year to visually check for water contamination.

“Electronic tank monitors don’t always convey water levels accurately,” Probst says. “Water is more dense than fuel, so it settles to the bottom of the tank. Therefore, to accurately assess water contamination, it’s important to take fuel samples from the tank bottom. Sample as many access points [32]

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as possible since tanks may shift after installation and cause water to settle at different parts of the tank.”

Probst advises collecting samples in a clear container to better judge fuel appearance. High-quality fuel should be clear and bright. If the sample is cloudy and hard to see through, it could indicate small water droplets are suspended, or entrained, in the fuel. The amount of moisture that can be entrained in the fuel is called the “saturation level” and is a function of fuel temperature and type.

When entrained water in fuel exceeds the saturation point, it will come out of solution and settle into a layer of free water at the tank bottom. This frequently occurs at the start of winter.

Relatively warm fuel can get pumped into a colder vehicle fuel tank, causing any entrained water to drop out. Free water can cause filter icing, corrosion and poor engine performance.

Note that biodiesel tends to have a higher capacity to hold water in suspension compared to petroleum diesel. Regardless, the ASTM moisture content limit of 500 parts per million (ppm) is the same for diesel, biodiesel and biodiesel blends.

Moisture can infiltrate fuel in several ways. Humid air can

If microbes are detected, apply a biocide treatment to kill them, following the product manufacturer’s recommendations.

After biocide treatment, prepare for additional filter changes. Tank cleaning or fuel polishing may also need to be considered.

“Severe cases of microbial activity may require the entire fuel system to be drained and cleaned since the microbes can persist and coat the interior tank surfaces,” Probst says.

Inspect Fuel-System Components

Using a tank-bottom sampling device, collect fuel samples at least once per year to check for potential contaminants.

PHOTO: MICHIGAN ADVANCED BIOFUELS COALITION

enter storage tanks through vents as fuel is pumped out. When temperatures drop, the moisture can condense and enter the fuel. Equipment providers offer vent desiccant filters that trap moisture before it reaches the tank.

If cloudy fuel is an issue, talk with your fuel provider or fuel-additive supplier to determine which additive can reduce the entrained moisture.

To prevent water entry, conduct a thorough inspection to find any moisture-infiltration points and repair as needed. Continue monitoring the tank to make sure the water contamination does not return.

microbial contamination. The best way to determine microbial activity is to send a fuel sample to a lab that can perform test method ASTM D6974. This test measures colony-forming units and can determine if the microbes are bacteria, fungi or algae. Sampling equipment must also be clean and sterilized with alcohol to prevent cross-contamination or false positives.

Beyond the tank, it’s important to regularly inspect all nozzles, caps, hoses and gaskets and replace them if needed.

These components can loosen or deteriorate over time, providing an entry point for water and other contaminants.

Spill buckets and sump-pump pits should be inspected monthly. Remove water immediately if detected.

All dispensing equipment and hardware must be properly rated for the biodiesel blend being used, according to Brad Crawford, director of engineered fuel systems at Benecor of Fenton, Michigan. Benecor recently joined MiABC as a stakeholder.

“Biodiesel can accelerate the degradation of certain materials used in fuel-system components,” Crawford

Prevent Microbial Growth The presence of free water in the tank could lead to microbial activity, affecting fuel performance and damaging equipment. Microbes cannot survive without free water.

“Microbial contamination has become more common with the adoption of ultralow sulfur diesel,” Probst says. “Sulfur has natural antimicrobial properties.

Before sulfur was removed from diesel fuel, it acted as a natural deterrent to microbial growth. Also note that microbial activity tends to be more common in warm and humid environments.”

A hazy fuel sample with a sediment that appears soft could be a sign of

Contaminated fuel will settle into layers as indicated in this photo. Water is the main enemy of fuel quality and can lead to microbial growth. Further testing can confirm if the microbes are bacteria, fungi or algae.

PHOTO: MICHIGAN ADVANCED BIOFUELS COALITION

Biobased Diesel® Summer 2025 [33]

says. “Metals such as copper, brass, bronze, lead, tin and zinc can catalyze the breakdown of fuel and cause potential performance issues. These metal components must be replaced with biodiesel-compatible materials before using biodiesel blends.”

Any rusted components should also be replaced or sanded, primed and painted to prevent leaks. Aboveground storage tanks and piping should be painted white to prevent excessive heating from the sun.

Underground or Aboveground Tanks: What’s Best?

For those considering a new biodiesel storage system, an important decision must be made about the type of fuel tank to install. Understanding the differences between underground storage tanks (USTs) and aboveground storage tanks (ASTs) will help determine the best fit. The choice between USTs and ASTs depends on multiple factors, including site layout, environmental conditions and fuel blend.

“Regardless of the storage system you select, it’s important to consider component compatibility, heating requirements and equipment certification to ensure safe, efficient and trouble-free biodiesel operations,” says Brad Crawford, director of engineered fuel systems at Benecor.

USTs offer the advantage of temperature stability.

Soil temperatures typically average around 50 degrees Fahrenheit at a tank depth of 10 feet. This natural insulation often eliminates the need for heating equipment, even when storing high blends of biodiesel. But operators must be aware of the need for rigorous maintenance and regular inspections to avoid potential environmental impacts from USTs. On the other hand, ASTs are generally more cost-effective to install and easier to maintain. They also offer site flexibility and the ability to relocate or expand the storage system if needs change in the future. ASTs, however, must be equipped with insulation and heating systems to accommodate the higher cloud point of biodiesel blends of B30 up to B100.

To prevent gelling or flow issues, storage-tank temperatures need to be maintained at 5 degrees to 10 degrees F above the fuel’s cloud point.

“When purchasing a new storage tank, whether underground or aboveground, evaluate every component of the fuel system to ensure compatibility with the biodiesel blends you plan to use,” Crawford adds. “This includes dispensing equipment, piping, motors and seals.”

Parts made from Teflon®, Viton™, fluorinated plastics or nylon will extend longevity and resist fuel-induced swelling or degradation. Keep in mind that many states require full documentation of all components at the time of tank installation. Consult the fuel-tank manufacturer or distributor for guidance on biodiesel-compatible components.

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Use Proper Filters, Replace Regularly A properly sized filter installed on dispensing equipment is an economical way to protect diesel engines and help prevent problems.

“Filtration plays a critical role in preserving the quality of any fuel, including biodiesel,” Crawford says. “Selecting the right filter media ensures that particulate matter is effectively removed from the fuel.”

Filters with microglass media are recommended for particulate-matter removal from biodiesel blends up to 100 percent, as well as from ultra-low sulfur diesel, gasoline and ethanol blends up to 25 percent.

If the fuel-filter change intervals are occurring more quickly than normal, check the fuel tank for sediment and consider sending the filter to a lab for analysis. Replace filters at least once or twice a year.

Be aware that biodiesel tends to act as a solvent and can clean the accumulated varnish and sediment from older fuel systems. The loosened materials will get caught in the dispenser filters, requiring filters to be changed more often.

After the cleaning action is complete, you’ll be able to resume normal filter-change schedules.

Adjust for Cold Weather In colder climates, heating elements may be needed in pipes and dispensing hardware to maintain proper flow rates and system performance, especially when using higher biodiesel blends. Since fuel thickens as temperatures drop, consider a larger 30-micron fuel filter during winter months. A fuel’s cold-weather operability and the effectiveness of cold-weather additives should be tested in the lab before winter sets in.

Keep Accurate Records Regardless of time of year, ensure all workers are trained in safe and proper fuel handling, including fuel delivery. Keep accurate records of training, maintenance, inspections, tests and repairs—for regulatory compliance as well as fuel reliability and trouble-free operation. Sound management practices will support smooth operations, regardless of fleet size and the type of fuel being used.

Biodiesel Assistance Available For biodiesel users or distributors in Michigan, MiABC has funding and expertise available to help diagnose and troubleshoot fuel-quality issues. Email contact@ miadvancedbiofuels.com for assistance with fuel sampling, training, fuel-quality testing, or any other biofuel questions.

Author: Karen Potratz Communications Director Michigan Advanced Biofuels Coalition 262-470-3709 klpotratz@gmail.com

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FEATURE |

Reputation Matters

By Kristof Reiter

How UCO collectors can show the world what they stand for.

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The used cooking oil (UCO) collection industry is essential to the renewable fuel supply chain, but it’s no secret that the sector has its darker corners. From oiltheft rings to fraudulent recordkeeping and greenwashing of non-EPA-approved feedstocks, the underbelly of the UCO world poses a growing threat—not just to collectors, but to the integrity of the entire biofuels market.

The UCO sector is increasingly plagued by rampant theft and sophisticated fraud. Reports suggest up to 40 percent of feedstock entering Europe comes from markets known for high levels of fraud. News reports detail organized crews hitting multiple restaurants in a single night, siphoning valuable oil and leaving behind less desirable residues. It’s a great business model for thieves—no need to purchase tanks or equipment.

The financial losses can be staggering.

One restaurant owner reported losing $40,000 from the theft of 20,000 gallons of UCO over a period of time. This is not merely petty theft. It represents a coordinated assault on the legitimate supply chain, demanding a more sophisticated response than simple container locks.

Many renderers and downstream buyers now face a difficult question: Are they unknowingly (or worse, knowingly) buying stolen oil? Federal and state regulations require that UCO sold into the renewable fuel industry be traceable to its origin. “Records fraud” is not unheard of, however, and in an industry where paperwork can unlock lucrative government credits, the incentive for deception is real.

The consequences of noncompliance are severe. EPA enforcement actions against RFS fraud have resulted in substantial civil penalties (e.g., a $320,000 fine for Quad County Corn Processors) and, in cases of deliberate fraud, criminal prosecutions leading to lengthy prison sentences (up to 87 months reported in one case) and multimilliondollar financial judgments against perpetrators who generated invalid RINs. In this high-stakes environment, operating “under the radar” or relying on outdated practices are no longer viable strategies. The market, regulators

and legitimate trading partners are demanding proof of legitimacy. For UCO collectors, demonstrating ethical sourcing, meticulous documentation, regulatory adherence and transparent practices is now essential—not just for maintaining reputation, but for ensuring market access, mitigating significant financial and legal risks, and securing long-term survival and profitability.

That’s why reputable traders like Reiter Trading, which is committed to the long-term viability of the industry, work hard to ensure that the oil they purchase is sourced ethically. We refuse to support thieves who harm our legitimate collectors. We protect our buyers from liability. When UCO is purchased from Reiter Trading, buyers can be confidently prepared for any audit. Our integrity and reputation are our advantages—and yours.

So how can UCO collectors demonstrate to the world—and to their trading partners—that they’re legitimate?

Start with these principles outlined below.

Document Sources Oil theft often starts with container theft. Don’t become part of that chain.

Keep records of where containers come from—who they’re bought from, when they were placed, and at which accounts. If containers are acquired from abandoned sites, understand the difference between lawful reclamation and theft.

In most states, formal notice must be given to the container’s owner before removing it and a statutory holding period must be observed—unless it’s a health or safety hazard that the restaurant has documented and reported. Even then, best practices dictate holding it, offering pickup, and documenting and dating everything with the restaurant owner. Playing it by the book protects the collector and sends the message of “We don’t take what’s not ours.”

Use Provenance-Tracking, Route-Optimization Software In the past, scribbled route logs might have sufficed. Today, government-backed renewable fuel programs demand thorough traceability—from fryer to fuel.

Investing in technology should be viewed not as a mere expense but as a strategic imperative. It facilitates compliance, Biobased Diesel® Summer 2025 [37]

generates operational savings (in fuel, labor and maintenance), reduces risks associated with theft and fraud, and can even enable significant business growth without proportional increases in administrative staff.

Automation extends to job scheduling and dispatching, streamlining workflows and improving resource allocation.

Mobile applications empower drivers in the field with realtime access to schedules, customer details and digital workorder submissions, eliminating cumbersome paperwork and reducing administrative overhead.

Using industry-grade UCO software like Route Simplified does more than make your route 20 percent to 40 percent more efficient. It builds a secure, timestamped, digital trail of every pickup made. This ensures that when the oil is ready to sell, it has provenance—and trading partners have confidence.

Choose a Trading Partner with Matching Values Stolen oil needs a buyer. The unfortunate truth is that some traders turn a blind eye to red flags—containers without branding, unrealistic route logs or suspiciously new “collectors” with unusually high volumes.

Both traders and collectors bear a responsibility to conduct due diligence on their partners. Knowingly or negligently selling to buyers who aid the movement of stolen or undocumented oil perpetuates the cycle of theft and fraud, damaging the reputation of the entire industry. The choice of a trading partner becomes an implicit statement about the collector’s own operational standards. By choosing the right trading partners with values who work to reduce demand for stolen oil, this strengthens the position of companies in the industry working to strengthen your position.

Reputable firms like Reiter Trading vet their suppliers.

They check for red flags, audit route data and build long-term relationships—not just price-based transactions. If a value is placed on these practices, then find a likeminded trader.

Build Strong Relationships with Restaurants Restaurants are a collector’s frontline allies. Their staff are positioned to notice suspicious activity such as unfamiliar trucks, personnel attempting access outside of scheduled times, or signs of tampering with locked tanks. Building trust through reliable service, clear communication and fair dealings makes restaurants far more likely to report such incidents promptly.

When they know a UCO collector is dependable and legitimate, they’re far more likely to report things like stolen containers or rogue collectors trying to undercut contracts.

As a professional tip, provide clients with incidentdocumentation forms and encourage them to take photos if something seems off. Being proactive strengthens partnerships and protects a collector’s footprint.

Prepare for Regulatory Audit— Before It Comes If collected UCO flows into the renewable fuel stream—and if it’s sold to a company that claims tax credits, it almost certainly does—then the parties involved are part of a regulated supply [38]

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“

Collectors who are prepared not only avoid fines, but they also gain a reputation as trustworthy professionals in a maturing market. chain. Auditors will primarily focus on verifying the legitimacy and traceability of the feedstock. They will demand access to comprehensive records: point-of-origin documentation (restaurant addresses), detailed collection logs (dates, times, volumes), transfer documents establishing chain of custody, restaurant-account histories and, potentially, records related to container management.

Auditors may request records dating back up to 10 years.

That means collection logs, location data, account histories and container documentation must be stored and digitally accessible. Waiting until an audit is announced is too late.

Collectors who are prepared not only avoid fines, but they also gain a reputation as trustworthy professionals in a maturing market.

Final Thought: The Market Is Watching In a tightening regulatory landscape, the path to profitability is paved with accountability. Every reputable collector has a role to play in pushing out bad actors, preserving market value and safeguarding the clients who rely on us. Economically, the adoption of best practices and technology unlocks significant advantages. Documented compliance provides access to premium markets. Technology-driven efficiencies in routing, scheduling and administration reduce operational costs and free up resources for growth. Building a reputation for reliability and integrity attracts both restaurant clients and downstream buyers. Plus, when it comes time to retire, detailed records and high-integrity business practices increase company value.

Reiter Trading is proud to work with collectors who operate with transparency, efficiency and pride. If you’re building a business that puts ethics first, let’s build the future of UCO trading together.

Author: Kristof Reiter CEO, Reiter USA 888-428-5617 kristof@reiterscientific.com

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Biobased Diesel® Summer 2025 [39]

FEATURE |

SOURCE: TEIKOKU USA INC.

Introduction to CMP Technology Through Circulation Plans [40]

www.biobased-diesel.com

Canned-motor pumps are uniquely suited to meet industry demands by minimizing installation costs and long-term operating expenses.

By Jim Hoffman As the biofuels sector continues to grow in response to global demand for cleaner, renewable energy, the need for safe, reliable and leak-free process equipment remains at an all-time high. In an ongoing effort to reduce the carbon footprint traditionally linked to energy production, operators of biorefineries and feedstock processes are turning to seallesspumping technologies. In the realm of sealless-centrifugal pumps, canned-motor pumps (CMPs) offer mechanical simplicity, proven dual containment and superior safety and reliability with an array of design configurations to best handle a wide range of applications common throughout the biofuels production chain.

CMPs integrate a centrifugal pump and motor to create a dual-containment pressure vessel with a single rotating part, free of mechanically contacting bearings and a totally enclosed, liquid-cooled motor. All CMPs are offered with onboard diagnostics for monitoring sleeve-type, thin-film liquid bearing condition in real time. CMPs use either the pumped fluid or a compatible flush fluid to cool the motor, support the rotating assembly on the thin liquid film of the bearing and provide axial balance of the rotating assembly. In operation, CMPs offer a completely nonmechanically contacting system to achieve the highest level of reliability. Most often the primary reason users gravitate toward CMPs is at the heart of the design—inherent secondary containment, meaning any breach of primary containment will never result in an emission to the environment, satisfying ever-tightening leak detection and repair (LDAR) and layers of protection analysis (LOPA) constraints.

The basic CMP-design principle utilizes a slip stream of the pumped fluid driven by the pump’s developed pressure as the motor’s source of cooling and lubrication before returning it to the pump side, otherwise known as internal circulation (API Plan 1-S), which acts as the building block for all other circulation designs.

Internal circulation is ideal for clean (particulate-free), nonvolatile processes like vegetable oil and other biobased oils, brine solutions, glycols, animal fats and finished biofuels.

While ideal for these processes, internal circulation tends to become unviable as the volatility of the process fluid increases due to potential for vaporization inside the liquid-cooled motor.

Vaporization of process liquid within a CMP could lead to a disruption of the liquid-film bearing operation. Therefore, the circulation design is adjusted accordingly for volatile fluids to provide adequate vapor-pressure margin to ensure that the fluid remains in a liquid state.

Reverse circulation (API Plan 13-SE) is a variant of internal circulation ideal for most volatile fluids where, instead of returning to the pump side, the process fluid exits the rear of the motor across an orifice. This results in increased pressure exerted on the fluid inside the motor so the fluidvapor pressure (after the temperature increase across the motor) remains below the total pressure on the fluid to ensure operation only in a liquid state.

This design requires the slip stream to be returned to the vapor space of the suction vessel or column. Plan 13-SE CMPs handle fluids like methanol, ethanol, light hydrocarbons and ammonia, particularly at elevated process temperatures.

For some installations, routing the circulation line back to the vapor space of the suction vessel is prohibitive for the system arrangement and/or a greater pressure is required to prevent vaporization in the canned motor. In such cases, employing pressurized circulation (API Plan 1-SD) offers the same result as reverse circulation but without any added piping. Pressurized circulation takes the slip stream from the pump discharge, returning it to the rear of the motor before it is further pressurized by a small auxiliary impeller on the rear of the rotating assembly. The pressure is maintained by a restriction installed behind the impeller at the liquid’s reentry point to the pump.

Volatile fluids can also be handled by a third approach that introduces subcooling to reduce the vapor pressure of the circulated liquid rather than increasing pressure on the liquid.

Such designs utilize standard external circulation through a cooler (API Plan 21-S.) Plan 21-S design utilizes either an integrated heat exchanger or a third-party heat exchanger to include any variety of code certifications.

All four of these circulation designs are ideal for process temperatures up to approximately 300 degrees Fahrenheit with a standard, Class C (220 degrees Celsius) motorinsulation system. Designs are also available for processes up to 650 degrees F without cooling by employing hightemperature insulation systems rated for 300 degrees C and 400 degrees C. For high process temperatures beyond the capabilities of standard Class C insulation, the circulation design is often adjusted to maintain the standard motor by separating the motor section from the pump casing to create a thermal barrier (API Plan 23-S.) Plan 23-S is a variant of externally cooled Plan 21-S circulation design where the fluid circulates on the motor side separately from the pump side, allowing the motor-side Biobased Diesel® Summer 2025 [41]

“

Regardless of circulation design, CMPs are always designed and manufactured for extremely stable rotodynamic operation, making them an ideal choice for many of the applications in renewable biofuels production processes.

temperature to be controlled independently, resulting in much higher maximum-temperature limits. This design is often used on applications like bio-oils from pyrolysis or thermal oils for reactors/distillation units.

Unlike any of the other circulation designs detailed above, Plan 23-S circulates the same physical process liquid through the motor repeatedly as opposed to continuously introducing fresh process liquid to the motor. This allows the pump to handle process temperatures up to 1,000 degrees F while using a basic motor with a standard Class C insulation system, resulting in both lower upfront and potentially lower lifetime operating costs relative to CMPs with high-temperature insulation systems. A small auxiliary impeller on the back of the rotating assembly drives the circulation flow through the motor and heat exchanger continuously while the circulating liquid reaches an equilibrium temperature between heat input from the motor versus heat removed by the heat exchanger, regardless of process temperature.

CMPs are an excellent solution for clean fluids, but sometimes processes will contain more than trace amounts of solid particulates and/or dissolved gases, which are not ideal for thin liquid-film sleeve bearings. For these applications, CMP designs are available to completely isolate the motor from the pump casing by introducing a clean, compatible flush liquid through the motor. Isolated motor circulation (API Plan 32-S or 54-S) maintains the process liquid exclusively to the pump casing by introducing the clean flush under a given pressure to create a one-way transfer from the motor to the pump casing. By doing this, all motorsection components are isolated from particulates and/ or dissolved gases present in the process. These designs are frequently used on applications for food/animal waste, cellulosic matter, used cooking oil, various reaction catalysts and diesel hydrotreating.

Plan 32-S is ideal when dilution of clean flush fluid into the process is not a concern, whereas Plan 54-S is better suited for situations where dilution must be limited as much as possible.

Plan 32-S design may dilute processes by as much as several gallons per minute while Plan 54-S employs an independent circulation loop (much like Plan 23-S) with a restriction, resulting in dilution rates as low as 3 cubic centimeters per hour.

Regardless of circulation design, CMPs are always [42]

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designed and manufactured for extremely stable rotodynamic operation, making them an ideal choice for many of the applications in renewable biofuels production processes.

This aspect, on top of integrated condition monitoring, puts CMPs in a reliability class of their own by eliminating unnecessary maintenance between long preventativemaintenance intervals—allowing for simple, well-documented maintenance procedures. CMPs inherently exceed the level of protection offered by API 610- and ASME ANSI B73.1compliant mechanically sealed pumps even after increasing layers of protection per these industry standards. As a result, users often consider replacing mechanically sealed pumps with standard CMPs. As the biofuels industry continues to evolve, the demand for highly reliable and safe pumping solutions grows increasingly critical. CMPs are uniquely suited to meet this demand by minimizing installation costs and long-term operating expenses. Their sealless, compact design eliminates the need for traditional infrastructure like concrete foundations, alignment procedures, rigid baseplates and auxiliary support systems, resulting in simpler, faster and more cost-effective installations. With an integrated motor and no external couplings, CMPs reduce the risk of leaks and mechanical failures, helping to ensure maximum uptime and minimal process disruptions. Their smaller footprint—roughly one-third that of comparable mechanically sealed or mag-drive pumps—makes them an especially attractive solution for biofuels facilities looking to optimize both space and performance.

Author: Jim Hoffman Eastern Regional Business Manager Teikoku USA Inc. 267-485-4094 jhoffman@teikokupumps.com

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PERSPECTIVE |

A Very Unique Partnership The Iowa Central Fuel Testing Laboratory, an independent business on the campus of Iowa Central Community College, leveraged the school’s resources to establish itself years ago and recently expand into a brand-new facility.

By Donald Heck I came to Iowa Central Community College in 2005 to start a biofuels-technology degree program to prepare students for careers in the biofuels industry, which was a good fit owing to the many biodiesel and ethanol plants operating in Iowa. The capstone of the program was a sizeable grant that allowed us to outfit a teaching laboratory filled with some high-tech instruments that our students could use to learn about ASTM methods for testing biofuels. Looking for a room to house all this new equipment, we took up residence in the old greenhouse adjoining the science building, which we spruced up with a little fresh paint and new curtains. This was a cozy home for the time being, but we couldn’t do much to stop the rain from leaking through the ceiling. So, when it did rain, we just arranged the instruments to keep them dry.

Shortly after setting up our teaching laboratory, we were approached by a local tucking firm looking for a partnership to study the effects of using biodiesel in its over-the-road fleet. This would be a robust study looking at a total of 20 units—10 trucks running B20 and 10 matched diesel controls— collectively running more than 2 million miles over a two-year period. Dubbed the “2 Million Mile Haul,” the study provided data that was pleasantly unremarkable, showing a seamless transition to B20, even in harsh midwestern winters. The study also provided the beginnings of a very unique partnership.

Other than bookstores or cafeterias, community colleges typically don’t run independent businesses. Several interested parties from the 2 Million Mile Haul collaboration determined we should do just that. They concluded that since we already had several pieces of fuel-testing equipment for the teaching laboratory, they should work together to secure funding to establish an independent fuel-testing laboratory with an emphasis on renewable fuels. Initial funding was secured through a state appropriation to purchase laboratory casework and a round of new instruments. A curious result of this process was that we were to become the official fuel-testing laboratory for Iowa’s Bureau of Weights and Measures. Additional funding was provided through a U.S. DOE grant that allowed for more instrument purchases, salary support and training equipment for the diesel-technology program on campus.

Working with Iowa Central Community College certainly has its advantages. For example, we can leverage the college’s power and talent to achieve big funding projects.

In 2008, the college solicited a bond issue that allowed for the construction of the Bioscience and Health Sciences Building where we were given laboratory and office space for our operation. This got us out of the greenhouse and into a modern academic building, which served us well for 15 years.

Due to our growth, we soon outgrew this space and we were able to secure partial funds for our new facility through the college’s 2018 bond issue. This new, state-of-the-art facility was just completed in late 2024 and was designed and built

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PHOTO: IOWA CENTRAL COMMUNITY COLLEGE

The expanded lab includes new cetane- and octane-rating engines.

PHOTO: IOWA CENTRAL COMMUNITY COLLEGE

from the ground up as an industrial laboratory. Finally, a proper space to call home.

With this new facility comes newly expanded capabilities. Our current BQ-9000 and ISO 9001 accreditations cover all aspects of liquid fuels including biodiesel, diesel, ethanol, gasoline and home-heating oils. We also work with various biodiesel feedstocks, glycerin and atypical samples like plugged fuel filters.

Leveraging the college’s talent and resources once more we were able to secure additional state funding for our latest round of instrument purchases. These newest acquisitions include one cetane- and two octane-rating engines, the only such engines available for fuel testing in Iowa. We also purchased instruments that will allow us to do the basic ASTM D1655 test panel for aviation turbine fuels. In addition to jet-fuel testing, this will allow us to move forward into testing sustainable aviation fuel (SAF).

We are in the process of acquiring ISO 17025 certification for our jet-fuel testing capabilities.

Looking back over 20 years it’s a little crazy to think that I came here to teach science and ended up running a selfsustaining, independent fuel-testing laboratory. I am amazed at the amount of support that went into creating this enterprise and the continued support that keeps it nourished. This includes all our clients, elected officials, numerous industry advocates, and many college leaders through the years. But most importantly, none of this could happen without the day-to-day dedication of our employees, several of whom are alumni of the college. They make sure the facility is staffed—rain, shine or blizzard—and that our clients are getting personal service, rapid turnaround and the lowest cost possible.

Author: Donald Heck Director Iowa Central Fuel Testing Laboratory 800-362-2793 heck@iowacentral.edu

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Biobased Diesel® Summer 2025 [45]

PERSPECTIVE | recycle-gas compressors to maintain hydrogen supply. Their Navigating SAF Coprocessing and acidic nature and chloride content can also cause corrosion,

Critical factors to consider for derisked, readily scalable SAF production.

By Ignacio Costa

Interest in coprocessing is growing as it offers a practical and scalable way to ramp up sustainable aviation fuel (SAF) production to meet 2030 targets. For refineries, this method enables integration of renewable feedstocks into conventional refining processes, blending them with fossilbased feedstocks. The result is a drop-in biojet fuel produced within a mostly already-existing infrastructure, making coprocessing an economically viable and efficient approach to increasing SAF supply without requiring a significant change or expenditure.

Because coprocessing leverages current refining assets, it significantly minimizes capital expenses. It also reduces the carbon footprint and sidesteps the need for building new, specialized units. Coprocessing can be implemented across various hydroprocessing units including kerosene hydrotreaters, diesel hydrotreaters and hydrocrackers. Among these, the kerosene hydrotreater stands out as the most effective unit for SAF production. This may sound surprising to many. Kerosene hydrotreaters typically do not operate at favorable conditions or have significant catalyst volumes. But Topsoe has developed a dewaxing catalyst that is able to thrive in these conditions and achieve fully on-spec SAF, while keeping the valuable renewable molecules in the liquid.

Coprocessing is a well-established and proven technology.

Topsoe has been producing renewable fuels through coprocessing since 2004, with over 90 successful implementations across various refinery-unit types. The technology and catalysts behind blending renewable and fossil feedstocks successfully is not new—it has been refined, derisked and optimized over time. This makes it a reliable and mature solution for refineries looking to scale SAF production quickly and efficiently.

In an existing kerosene hydrotreater, for example, ASTM clearly defines the amounts allowed to be coprocessed for SAF production. The easiest pathway is to introduce up to 5 percent renewable feedstock by volume in the existing asset. For many units, this will require a new catalyst system but low, or no, revamping cost.

The introduction of renewable feedstock may require a larger catalyst volume and different catalyst compared to the original fossil kerosene-hydrotreater design. To meet Jet A or Jet A-1 freezing-point specifications (minus 40 degrees Celsius and minus 47 degrees C, respectively), the n-paraffins present in renewable feedstocks must be effectively isomerized. Isomerization can be achieved with dewaxing catalyst, and this is nothing new. But the groundbreaking development is that Topsoe’s TK-930 D-wax™ catalyst can meet this low freezing point while retaining biogenic carbon in the final jet-fuel product, even at unfavorable conditions of kerosene-hydrotreating units.

Due to their high oxygen content, renewable feedstocks can require up to 25 times more hydrogen than fossil-kerosene feedstocks, potentially necessitating upgrades to the make-up [46]

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so depending on where the feedstock is introduced, material checks may be needed to mitigate risk. Additionally, the formation of ammonium-chloride salts might require relocating wash-water injection points at the reactor outlet. Furthermore, since triglyceride-based feedstocks contain about 11 percent oxygen, hydroprocessing them generates significantly more water—along with some CO and CO2—possibly requiring increased water-boot capacity.

The operating conditions for coprocessing in a hydroprocessing unit are highly variable and depend on a range of factors specific to each case. While most hydroprocessing units are suitable for coprocessing, there are no universally recommended conditions that apply across all scenarios. Instead, the optimal conditions are determined by several key factors that influence the efficiency and effectiveness of the process.

One critical factor is the amount of renewable feedstock being coprocessed. The volume of renewable feedstock can significantly impact the operating parameters. For instance, higher volumes may necessitate adjustments to temperature, hydrogen-to-oil ratio and more to ensure smooth and efficient processing.

Similarly, the hydrogen-to-oil ratio is a critical parameter that can affect the stability of the catalyst utilized for coprocessing operations. This ratio often needs to be fine-tuned based on the type and volume of renewable feedstock being processed.

The range of a unit’s design and operational temperatures also plays a vital role in coprocessing. The temperature at which the unit is able to operate must align with the requirements of the feedstock and the desired product. Some facilities do not have the necessary heating capacity to ensure achievement of the desired freezing point.

Lastly, the available catalyst volume or the liquid hourly space velocity (LHSV) can influence the coprocessing operation.

The amount of catalyst volume available in the unit is crucial to fix the correct catalyst-loading scheme that will ensure attaining product specs for the desired cycle length.

European legislation gives a clear directive on how to correctly evaluate and certify coprocessed SAF and many refineries there have placed orders or are already operating with Topsoe’s TK-930 D-wax™ to produce SAF by coprocessing. In the U.S., coprocessing is not eligible for credits under section 45Z. There is no one-size-fits-all solution for coprocessing. At Topsoe, a thorough evaluation is conducted for each specific case to determine how to make coprocessing a reality at each refinery.

Author: Ignacio Costa Technology Licensing Manager Topsoe ifco@topsoe.com

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Join Destination Net Zero.

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Biobased Diesel® Summer 2025 [47]

PERSPECTIVE |

Unlocking the Full Potential of SAF Markets Rigorous LCA and QAP participation is crucial for ensuring SAF market access, maximizing regulatory incentives and establishing confidence in a competitive global environment.

By Kristine Klavers Sustainable aviation fuel (SAF) has emerged as the cornerstone of aviation’s decarbonization strategy. Achieving market access, however, demands a robust commitment to carbon accounting, lifecycle analysis (LCA) and participation in a rigorous Quality Assurance Program and associated protocols.

A defensible carbon-intensity (CI) score is the gateway to regulatory incentives, such as federal tax credits and carbon credits to participate in markets such as California, Oregon, Washington, British Columbia or Europe, enhance market value and ensure long-term viability. Without proper documentation, verification and rigorous carbon accounting, even the most innovative SAF producers may miss out on critical opportunities.

Put simply, the CI score is a key entrance ticket to participating in regulatory and compliance market programs.

Each LCA must be done accurately and in accordance with regulatory requirements to avoid potential compliance issues, which may impact a company’s financial health and future operations. Regulators often conduct rigorous audits and double-check disclosures to ensure accuracy and validity. This involves third-party verifications, site inspections and detailed reviews of submitted documentation.

LCAs assess the environmental impacts associated with a fuel’s entire lifecycle—from feedstock sourcing to production, distribution and end-use. Developed initially to compare the environmental impacts of consumer goods, LCAs today form the scientific and technical backbone of nearly every lowcarbon fuel regulation.

For SAF producers, CI scores help determine renewable identification number (RIN) codes, California Low Carbon Fuel Standard credits, Carbon Offsetting and Reduction Scheme for International Aviation credits, and federal tax incentives like the section 45Z clean fuel production credit.

Each jurisdiction or program may have a different carbonmodeling system, such as the Argonne National Laboratory’s Greenhouse Gases, Regulated Emissions and Energy use in Technologies (GREET) model, CA-GREET, or the International Civil Aviation Organization’s GREET. Furthermore, each system may carry distinct assumptions and default values, requiring careful navigation.

Although not always required, SAF and renewable diesel producers, especially foreign entities and entities with complex feedstock supply chains, would find enrolling in the U.S. EPA’s Renewable Fuel Standard QAP beneficial to ensure SAF and renewable diesel comply with RFS regulations and prevent fraudulent activities.

EPA’s QAP program ensures RINs are properly generated through audits of renewable fuel production conducted by independent third parties. It also provides an affirmative defense for the transfer or use of invalid RINs verified under an approved QAP. Buyers often do not accept the fuel without making sure it is fully in compliance. QAP compliance can [48]

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also help streamline compliance requirements for other jurisdictions, reducing financial and resource burdens.

LCA models can vary substantially, although all models should follow International Organization for Standardization (ISO) 14000 series standards. GREET tools dominate U.S. markets while CORSIA relies on ICAO-approved frameworks.

Meanwhile, Renewable Energy Directive (RED III) compliance in Europe introduces another set of modeling expectations.

ICAO, a specialized United Nations agency, develops international standards and regulations to support safe, efficient and environmentally responsible global air transport.

Within this framework, CORSIA is ICAO’s key initiative to curb carbon emissions from international aviation. CORSIA aims to cap aviation emissions at 2020 levels by requiring airlines to offset any growth in CO2 emissions.

One of the main pathways for airlines to reduce their offsetting obligations under CORSIA is through the use of CORSIA-eligible SAFs. Eligibility, however, hinges on meeting minimum lifecycle-emissions reductions. According to CORSIA, to be certified as a CORSIA-eligible fuel, SAFs must meet the CORSIA sustainability criteria, including a 10 percent reduction in lifecycle emissions compared to the petroleumbased jet-fuel baseline of 89 grams of CO2-equivalent per megajoule (gCO2e/MJ). The greater the emissions savings, the more effectively the SAF reduces an airline’s offsetting burden, making low-carbon fuels particularly attractive under the scheme.

Each carbon-modeling system may handle key factors such as feedstocks, transportation emissions, process energy, land-use change and coproduct allocation differently.

Successful SAF projects must report these inputs with accuracy to ensure that final CI scores are valid and verifiable across multiple jurisdictions.

Regulatory landscapes are rapidly evolving around the world. Organizations that proactively invest in accurate LCA modeling, robust QAP and compliance protocols, and traceable supply chains will be best positioned to thrive in this competitive environment. Ensuring data quality, auditability and adaptability will be essential in securing both compliance and market leadership.

Author: Kristine Klavers Managing Director, Houston Low-Carbon Petroleum EcoEngineers kklavers@ecoengineers.us

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PERSPECTIVE |

Advanced Engines, Renewable Fuels Are Sustainable Solutions for Power, Mobility While federal policy and economic outlooks are murky for now, clean diesel engines and sustainable biofuels remain clear choices available today for carbon and other emissions reductions.

By Allen Schaeffer Our new energy frontier is starting to take shape, one based on “achieving American energy dominance” by leveraging all domestic resources—both those extracted from under the ground and those that grow upon it. Like a three-legged stool, three pieces must be in place: a 5.25-billion-gallon U.S. EPA renewable volume obligation (RVO) under the federal Renewable Fuel Standard for 2026; reasonable IRS tax policy under section 45Z; and strong market drivers, including supportive environmental regulations and firm corporate commitments.

It is notable if not historic that the oil industry and renewable fuels leaders have come together in agreement to seek from EPA a 5.25-billion-gallon RVO in 2026—finally a level based on current reality and realistic growth potential. The clean fuel production tax credit (45Z) hangs in the balance awaiting final guidance from the U.S. Department of the Treasury and IRS. Lackluster initial guidance from the Biden administration sets the stage for a potential course correction under a new Trump administration. Regardless of these outcomes, there is a new set of fundamentals the renewable fuels sector will have to navigate, characterized by uncertainty.

New tariff and trade policies contributed to the firstquarter U.S. gross domestic product (GDP) falling by 0.3 percent. Though likely due to stockpiling of goods before the tariffs were implemented, the contraction of the economy is a sign of brewing weakness. Beyond slowdowns in consumer spending, the longer-term effect of the new tariffs is somewhat predictable: fewer imports arriving by container ship and fewer trucks needed to deliver to retail customers, all of which translates into lower overall demand for fuel. Until the trade and tariff situation becomes clearer, economic uncertainty rules the day. The renewable diesel fuel sector was already reeling at some level with plants being idled due to poor market conditions, and now the oil sector is feeling bearish as the price of crude oil is trending down below $60 a barrel.

A major overhaul of federal environmental rules is underway.

While efforts to repeal the endangerment finding that effectively underpins most climate policies may have a lower chance of success, support for eliminating California’s waiver to establish more stringent vehicle-emissions policies under the Clean Air Act is gaining ground from industry and Congress alike. A revocation of the endangerment finding would likely move the federal government out of the decarbonization business for good.

Overturning the California emissions waivers could shift the U.S. back to a single national standard for vehicle and fuel regulations. This would be a welcome change for automakers currently navigating both a federal baseline and a Californialed, electric vehicle-focused standard adopted by 15 states and [50]

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increasingly out of sync with consumer demand. Regardless of the outcome, such a move would almost certainly trigger a prolonged legal battle.

In the commercial-trucking industry, policy is a key driver of fuel and technology choices. Every major rule governing emissions, fuel economy and greenhouse gases is now under scrutiny by the new EPA leadership. These are the rules that drive carbon and other emissions reductions and require introduction of zero-emissions vehicles (ZEVs). Truck and engine manufacturers—including Cummins, Daimler, Paccar, Volvo and International—have affirmed their readiness for “all regulatory eventualities,” including compliance with the new diesel-engine emissions standards that will further reduce nitrogen-oxide emissions by about 90 percent starting with 2027 models. They also acknowledge the new challenges facing the adoption of ZEVs without significant government funding and support. While resigned to a slower adoption timeline, they remain committed to ZEV technology. At the same time, these truck and engine makers also reaffirm their support for advanced diesel and renewable biofuels as practical, near-term solutions for their customers.

Beyond public policy lies public sentiment, and what people are saying. Bloomberg Green analyzed transcripts of S&P 500 company-earnings calls going back to 2020, tracking mentions of more than a dozen terms including “climate change,” “global warming,” “ESG,” “clean energy” and “green energy.”

On average, companies are talking about the environment 76 percent less now than they were three years ago.

While there may be less talk about carbon emissions, efforts to address them will persist—though ongoing economic uncertainty is likely to complicate progress. State governments and corporate America will have to take the lead if the federal government unhitches fully from the decarbonization bandwagon. With a 5.25-billion-gallon EPA RVO, reasonable IRS tax policy and adequate market conditions, we are wellpositioned to benefit from the continued growth of renewable biobased diesel fuels in the years ahead.

Author: Allen Schaeffer Executive Director Engine Technology Forum 301-668-7230 info@enginetechforum.org

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enginetechforum.org Biobased Diesel® Summer 2025 [51]

PERSPECTIVE |

Stress-Free RFS Compliance Now a full-service compliance partner, RINSTAR has been simplifying RFS obligations since 2007.

By Brianna Welsh The Renewable Fuel Standard program is at the heart of America’s push toward cleaner energy, but keeping up with its ever-evolving requirements can feel like navigating a maze.

That’s where RINSTAR comes in. As the first renewable fuels registry—and now a full-service compliance partner—RINSTAR has been simplifying RFS obligations for fuel producers, importers, blenders, biogas facilities and renewable natural gas (RNG) separators since 2007. Our friendly and expert team takes the complexity out of RIN management so you can focus on growing your business and driving a more sustainable future.

Founded by refining-industry pioneer Clayton McMartin, RINSTAR quickly carved out its niche as an independent, U.S. EPA-compliant registry for renewable identification number (RIN) credits. Today, under the leadership of Brett Hicks, CEO, and Cutler McMartin, chief technology officer, our company continues to blend visionary thinking with practical, hands-on support. Hicks brings a track record of operational excellence and people-first leadership while McMartin’s background in reliability engineering—honed at companies like Milwaukee Tool and Schlumberger—ensures our platform stays rock-solid.

Backed by a team of U.S.-based technicians and regulatory specialists boasting over 38 years of combined experience, we’re uniquely positioned to guide you through every facet of RFS compliance.

Comprehensive RIN Management

At the core of our company is an intuitive, cloud-based platform that puts you in full control of your RIN portfolio.

• Real-time tracking and trading: Monitor RIN generation, transfers and retirements as they happen, with built-in alerts to keep you ahead of deadlines.

• Bulk generation and transfers: Whether you’re consolidating RINs from multiple batches or executing a large-scale transfer, our system makes batch processing simple and error free.

• RIN integrity reports: Before finalizing any transaction, RINSTAR runs a comprehensive integrity check to catch potential discrepancies or rounding issues.

Mistakes happen, regulations change, and EPA Moderated Transaction System glitches occur. What matters is how quickly you can respond. When a compliance issue arises, RINSTAR acts as your personal liaison with EPA fuels support. We handle the lion’s share of remedial actions, from submitting the initial inquiry to tracking resolutions, all under a white-glove service model that keeps you informed at every turn.

Juggling multiple quarterly and annual deadlines can stretch any team thin. RINSTAR’s autogenerated reporting tools simplify this process by: • Custom reporting screens: Your dashboard adapts to your business registration—whether you’re a biogas producer, RNG separator or traditional renewable fuel blender—so you only see the reports that matter to you.

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• Renewable volume obligation (RVO) calculator: Automated calculations take the guesswork out of meeting your fuelvolume targets, with real-time updates as your inventory changes.

• Boutique custom reports: Need a specialized RIN-related report that isn’t on the EPA’s list? We can build it for you, ensuring you have the precise data you need for internal audits, investor updates or lender reviews.

Seamless Registration, Pathway Support

From initial EPA/Central Data Exchange registration to adding new facilities or pathways, RINSTAR’s guidance streamlines every step: 1.

Business and facility registration: We handle the paperwork and troubleshoot common pitfalls, so your registration sails through the EPA’s review.

2.

Pathway approvals: Navigating the EPA’s pathwayapproval process is faster and less stressful with our seasoned regulatory specialists by your side.

3.

Amendments and updates: Changing a facility’s registration or updating feedstock details? We manage those updates, track EPA feedback and confirm that your new registrations are properly reflected in EMTS. EMTS outages can bring RIN transactions to a halt— unless you’re using RINSTAR. Our platform queuing system captures every transaction you initiate during an outage and automatically uploads them once the system is back online.

You never lose time, and you stay confident that your RIN activity remains continuous and compliant.

We’ve also just enhanced our platform to include dedicated profiles for biogas producers, RNG producers, and RNG separators. Now you can seamlessly manage your biogas token/K3 RIN inventory and handle all your biogas/RNG compliance reporting in one place.

Dedicated, Customer-First Support

We know your team can’t wait days for answers. That’s why our support hours run from 8 a.m. to 5 p.m. Central time Monday through Friday with emergency monitoring around the clock and on holidays. Whether you have a quick procedural question or need real-time troubleshooting, our specialists aim to respond within the same business day—and often within the hour.

Ready to experience stress-free RFS compliance? Visit rinregister.com to learn more, schedule a demo or chat with one of our specialists today. Let RINSTAR handle the details so you can focus on what you do best—advancing renewable energy and growing your business.

Author: Brianna Welsh Compliance Analyst/ Member Support RINSTAR bdw@cfch.com

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PERSPECTIVE |

RFS Stakeholders Unite With interested parties agreeing on robust RFS volumes for biobased diesel, EPA is further encouraged to unleash growth of domestic energy.

By Paul Winters After a decade and a-half of annual regulatory, legal and political donnybrooks over Renewable Fuel Standard volumes, the renewable fuel and petroleum industries have joined hands to support robust, timely 2026 volumes.

In March this year, Clean Fuels Alliance America, farm and feedstock groups sent a letter asking U.S. EPA to set 2026 biobased diesel (BBD) volumes at 5.25 billion gallons.

Later the same 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.

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 to 5.25 billion gallons for 2026.

Unity on BBD volumes was easy to achieve in a few ways.

American fuel producers, soybean processors and oil refiners have invested billions of dollars over the past five years to increase U.S. biodiesel and renewable diesel production.

According to a new report from GlobalData commissioned by Clean Fuels, capacity for biodiesel, renewable diesel and SAF could expand to 7.4 billion gallons in 2026 if current projects move forward. The industry’s capacity is already at 6.5 billion gallons—so the BBD industry could meet the requested 2026 volume with just 75 percent of existing capacity.

Higher volume requirements are needed to revive languishing biodiesel production as well as to encourage producers to turn SAF enthusiasm into real gallons. Clean Fuels is also advocating a BBD volume of 5.75 billion gallons for 2027 to accommodate this anticipated growth.

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 has 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-billiongallon 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 percent since 2022. That level of demand supported $1.10 in value for every bushel of soybeans grown in the United States.

Demand for BBD is strong and still growing. The U.S. market for biodiesel, renewable diesel and SAF topped 5.1 billion gallons in 2024. Moreover, in its April 2025 Annual Energy Outlook, the U.S. Energy Information Administration projects demand to reach 5.5 billion gallons in 2026. Six major U.S. rail companies joined Clean Fuels’ membership in the past year because the sector is looking for a readily available decarbonization tool—and biodiesel and renewable diesel fit the bill. Shipping companies are also interested in adopting cleaner fuels. Biodiesel and renewable diesel are drop-in fuels [54]

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for marine vessels. Airlines, the heating-oil industry and fleets across the country continue to seek more clean fuels.

Continued growth of the U.S. BBD industry will bring economic value to farmers, feedstock producers and fuel producers. According to Clean Fuels’ GlobalData report, the U.S. BBD industry supports 107,400 jobs and contributes $42.4 billion to the U.S. economy. Nearly half of the economic impact—$19.9 billion and 41,500 jobs—is in fuel production.

But the U.S. BBD industry also supports 30,600 jobs in oilseed production, bringing a $15.3 billion economic impact to soybean-growing states. There are major employment impacts for oilseed processors (8,600 jobs) as well as the rendering industry (12,700 jobs), according to GlobalData.

There’s more economic growth and employment at stake in the next few years. According to GlobalData, if the U.S. BBD industry reaches 7.4 billion gallons of capacity, it could support 145,700 jobs and $60.25 billion in economic activity at full capacity.

“We have seen the cost to rural communities when [renewable volume obligation (RVO)] levels are set too low,” a bipartisan group of 16 senators wrote EPA Administrator Lee Zeldin in an April letter. In the aftermath of the 2023-’25 RFS volumes for BBD and advanced biofuels, which EIA noted were set “significantly below production trends,” biodiesel and renewable diesel facilities shuttered, delayed start-up and laid off workers. Uncertainty over the new tax credit served as the final nail for many companies, but the low RVOs in the “set” rule prepared the groundwork. Producers did not purchase soybean oil, tallow and other U.S. renewable feedstocks for the first quarter of 2025, undercutting agriculture markets.

With unity among RFS stakeholders on the RVOs for 2026 and 2027, EPA Administrator Zeldin can finalize volumes that meet growing U.S. energy demand, unleash American energy producers from regulatory constraints, and support domestic economic growth. And RFS stakeholders will be appreciative.

Author: Paul Winters Director of Public Affairs and Federal Communications Clean Fuels Alliance America 202-737-8803 pwinters@cleanfuels.org

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Biobased Diesel® Summer 2025 [55]

PERSPECTIVE |

From Prediction to Prescription: The Compliance Headache and the Cure Veriflux launched a suite of purpose-built tools to make compliance simpler, faster and more reliable.

By Dani Charles At the start of 2024, we made two bold predictions: that traceability would go global, and that compliance demands would intensify. Both have come to pass—faster and harder than many in the industry expected.

Traceability is no longer optional. From section 45Z in the U.S. to Canada’s Clean Fuel Regulations, and from Europe’s Renewable Energy Directive (RED III) and Union Database for Biofuels to the Carbon Offsetting and Reduction Scheme for International Aviation and updates in CA-GREET 4.0, the regulatory landscape has shifted dramatically. Every node in the value chain—renderers, collectors, farmers, aggregators, traders, producers and consumers alike—is being asked to do more. More documentation, more recordkeeping, more reporting and more audits. The result? Compliance fatigue.

What was once a powerful tool for building trust and accessing new markets has, for many, become overwhelming.

Compliance teams are navigating an ever-expanding maze of forms, formats and frameworks, each well-intentioned but collectively exhausting. Instead of fueling forward momentum, compliance today can often feel like a full-time effort just to stay afloat. And while compliance remains essential, the growing complexity of requirements can make it harder to see how compliance connects back to broader business goals.

At Veriflux, we saw this coming. And we set out not just to support compliance—but to simplify it. We believe compliance should serve commercial goals, not stand in their way. It should be a bridge to new markets, not a bottleneck to growth. And it should function as a tool to eliminate fraud and bad actors— not as a mechanism that penalizes the good ones, especially the first movers who take sustainability seriously. That mindset guides everything we build.

That’s why in 2025 we launched a suite of purpose-built tools designed to make compliance simpler, faster and more reliable: • Ledger helps enterprises manage multilayered, multisite, and multischeme sustainability ledgers at scale— eliminating duplicate tracking and reconciliation issues.

• Snapshot allows stakeholders to perform a pretransaction compliance check—ensuring everything is aligned before a deal is signed.

• FLUXchain brings cryptographic integrity to your data, making it more trustworthy, auditable and tamper resistant.

Think of us as your compliance aspirin: When the headache hits, we’re here to ease the pain. But the truth is, we don’t just want to manage the headache—we want to prevent it altogether. That’s why we’re doubling down on automation and artificial intelligence (AI), not to make Veriflux more powerful but to make you more independent.

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We don’t believe traceability should mean more time in software. And we’re not here to build tools that simply shift paperwork from one format to another. We’re not just giving paper collection slips a digital facelift. We’re not just helping you upload your data to meet reporting requirements. And we’re certainly not handing you a dolled-up document repository or mass-balance spreadsheet and calling it a compliance solution.

Instead, we’re focused on delivering real utility—tools that anticipate what auditors need, surface gaps before they become issues, and align compliance efforts with your commercial strategy. It’s not about checking a box. It’s about clearing the path.

That’s why we continue to serve as a nominated U.S. EPA and California Low Carbon Fuel Standard recordkeeper for fuel producers and obligated parties across the U.S., while also supporting audits under CFR in Canada. It’s why we pursued and were nominated as an access point and service provider for the EU’s UDB. It’s why we’ve expanded support for CORSIA as sustainable aviation fuel (SAF) demand accelerates. And it’s why we’re investing ahead of the curve for 45Z and CA-GREET 4.0 changes—so you’re not left scrambling when the rumors become reality.

As weird as it may sound, in the end, we don’t want you to spend more time in our platform—we want you to spend less.

That’s the future we’re building. A future where compliance becomes seamless and traceability doesn’t distract from commercial execution but amplifies it. Where data doesn’t just flow, but flows with integrity, confidence, purpose and minimal human intervention.

We know there are a lot of tools out there. Collection apps, CRMs, ERPs, CTRMs, LCA software, dashboards, “independent recordkeepers” and more. They require a lot of data collection, a lot of data aggregation, a lot of data entry, and a lot of data management … frankly, it’s a lot of noise.

We’re not here to add to that noise. We’re here to make it all a little quieter.

2025 won’t be the year you escape compliance. But it might just be the year you stop fearing it.

Author: Dani Charles Co-founder, Veriflux 720-838-7233 dani@veriflux.io

THE FUTURE OF TRACEABILITY & SUSTAINABILITY MANAGEMENT IS FINALLY HERE!

Are you tired of managing traceability and sustainability data in spreadsheets and folders or

scattered across multiple systems? Manually reconciling multiple site-specific EPA, LCFS, CFR,

and ISCC ledgers? Keeping track of biomass attestations, SFWCs, SDs, PoSs, CFR declarations and more? Are you worried about proof of RIN eligibility? 45Z CI calculations? LCFS pathway

verification? UDB connectivity? Do you wish you could have a single interface for all your

traceability and sustainability needs? Automate assignment and allocation of materials and

products? Validate addresses? Manage inventory and what products qualify in which markets?

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Biobased Diesel® Summer 2025 [57]

PERSPECTIVE |

An Overview of Regulatory Compliance for Policy Fuels Biodiesel, renewable diesel and SAF are often grouped together from a regulatory-compliance perspective, but these three distinct industries are headed in different directions.

By Ernie Pollitzer Biodiesel, renewable diesel and sustainable aviation fuel (SAF) are liquid fuels that each utilize biomass feedstock oils, whether they come from plant, animal or waste streams. For these common characteristics, they are lumped together from the perspective of regulatory compliance. These are, however, three distinct industries going in different directions. Renewable diesel and SAF are gearing up for big expansions over the next 10 to 20 years and beyond. For biodiesel, there currently is some retrenchment and a determination of how and where this fuel can compete for market share, both in terms of feedstock supply and fuels sales.

Feedstock

One big, common issue for all three industries is securing feedstock sources. Every producer is looking to secure longterm agreements for feedstock supplies. A great example is the new Heartwell Renewables in Nebraska that is being built as a joint venture with a feedstock supplier (Cargill).

With the already existing surplus renewable diesel refining capacity and the expected increase in SAF refining capacity, expanding those feedstock supplies is required. This will need to be a multipronged approach in getting the most out of each source, especially having dedicated agricultural acreage for these feedstock oils.

Regulatory Compliance

Staying in front of regulatory compliance is required to maximize environmental credits. For the U.S. EPA’s Renewable Fuel Standard program, these industries can look to the recent RFS biogas-reform rule for some potential changes in the regulations in the coming years. This could mean additional tracking, measuring and reporting of feedstocks as part of the renewable identification number (RIN) credit-generation protocol. There could also be additional measurement and testing requirements for the renewable fuel, including confirming the fuel’s biogenic content.

Another potential area for RFS review is with biointermediates.

Biointermediates are partially treated feedstock at a separate facility that is then transported to one or more renewable fuel facilities. A biointermediates facility is registered in the RFS program with similar reporting requirements as a renewable fuel facility. For the California Low Carbon Fuel Standard program, the key is a robust data-management system for carbon-intensity (CI) modeling and credit generation. California’s LCFS verification program can be very time-consuming for both the producer and third-party verifier. Utilizing the latest data-management technology can reduce this verification time and provide insights to reduce a facility’s CI score.

Environmental-Credit Pricing

Regulatory programs like RFS and LCFS basically set the annual price for the environmental credits associated with these fuels. Credit pricing and tax credits are the economic drivers for these industries—as much as, if not more than, the price of the fuel itself.

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One might think EPA sets annual renewable volume obligations (RVO) under RFS based on the renewable fuel production capacity with these industries, but this is not what actually happens. The RVOs are determined by a mixture of renewable production capacity, feedstock supplies, effects on fuel pricing, potential effects on overall transportation fuel supply, and of course political pressures. The RVOs need to match up closer to the surplus production capacity in order to see an appreciable increase in RIN pricing.

Currently the new IRS clean fuel production credit under section 45Z for biodiesel and renewable diesel is being revised based on public comments and issues raised from the latest release. A big difference between the production tax credit and the previous blenders tax credit is the use of CI modeling to determine the value of the fuel credit. The latest version of the CI model puts strong emphasis on specific feedstocks, which will put additional strain on procurement and operations as refineries look at how to utilize those feedstocks. For some facilities, the current IRS CI model is untenable and may not even be worthwhile registering. A lot of producers are looking to Congress to bring back the $1-per-gallon blenders tax credit as a bridge for 2025 until issues with the 45Z production credit are resolved.

For SAF, producers need to continue working to explore other potential environmental credits associated with their fuel product. These probably can’t be generated per gallon but perhaps in concert with the carbon-footprint agendas for the airlines and large companies that can invest in these programs.

Fuel Markets

Renewable diesel producers have a ready market for their fuel, especially in states with their own low-carbon fuel programs like California, Oregon, Washington and perhaps New Mexico by the end of year. The market for biodiesel is quite different, as this is largely a blend-only fuel in order to stay in compliance with engine-manufacturer warranties. Since nearly all renewable diesel goes to states with renewable fuel programs (primarily California), this allows biodiesel to be used elsewhere around the country, especially in states that have a renewable fuel mandate and/or state tax incentives for biodiesel. Biodiesel producers, therefore, need to target more states that are considering these types of biodiesel incentives for future markets.

Author: Ernie Pollitzer Owner Clean Energy Consultants 770-331-2858 ernie@ cleanenergyconsultants.net

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PERSPECTIVE |

Amid Federal Uncertainty, Iowa’s Biodiesel Success Offers Key Lessons

Biodiesel sales in Iowa set records last year thanks to strong state policies, but these gains are in jeopardy if federal policy issues are not corrected soon.

By Grant Kimberley This spring, like generations before me, I climbed into the tractor and planted soybeans on my family’s farm in central Iowa. Farming has always involved a certain level of risk—that comes with the territory. But this year, there was a different kind of uncertainty weighing on my mind. Not only about the weather, or even the markets and tariffs, but about what’s happening in Washington—and what it means for the future of biodiesel.

As both a soybean farmer and a biodiesel advocate, I’ve seen how closely tied our nation’s energy supply is to agriculture. And how quickly momentum can vanish when policy support falters.

That’s why the recent biodiesel-sales report from the Iowa Department of Revenue stood out. In 2024, Iowa set a record— nearly 86 million gallons of biodiesel sold, a 19 percent increase from the year before. B20 or higher blends made up the lion’s share of sales, coming in at 238 million gallons of blended fuel.

The numbers are impressive and a hopeful reminder of what’s possible when good policy meets real-world demand.

But context matters. These gains came before the impact of federal policy uncertainty began to fully assert itself.

This year, Iowa biodiesel producers—like many across the country—have faced mounting challenges. Uncertainty around the Renewable Fuel Standard, instability in the biodiesel tax credit, and confusing signals on 45Z implementation have all contri­buted to a sharp downturn. Many plants in Iowa have since shut down or are operating at greatly reduced capacity.

Long-term invest­ments, including new soybean-crush capacity, are now at risk.

No state—not even one as deeply committed to biofuels as Iowa—can fully overcome that kind of federal uncertainty. Still, there’s no question that smart state policy made those 2024 gains possible and can help shape who benefits most when federal policies do work.

So what’s working in Iowa? Here are a few key policies that helped drive biodiesel demand last year: • A per-gallon producer incentive for in-state biodiesel manufacturers.

• A retailer tax-credit structure rewarding higher biodiesel blends like B11, B20 and even B30—the first to do so.

• A diesel-fuel tax differential, favoring biodiesel blends at the pump.

• The Iowa Renewable Fuels Infrastructure Program, which supports retailer upgrades for seamlessly offering biofuels.

Together, these tools encouraged investments, built stability and predictability into the market, and strengthened publicprivate collaboration across the value chain. They’ve helped Iowa become a national leader in biodiesel blending, with over 90 percent of on-road diesel sold in the state containing at least 11 percent biodiesel.

But here’s the reality: Iowa’s diesel demand is small on a national scale. Even with strong state policies, we can’t support [60]

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Kimberley on his John Deere planter.

PHOTO: IOWA BIODIESEL BOARD

our entire industry without a reliable federal framework.

Federal inaction now threatens to undo the success we built together just a year ago.

And it’s not just a policy problem—it’s personal. Many Iowa biodiesel plants are farmer owned. That means when a plant idles or closes, it’s not only workers and producers who lose out. It’s also the farmers who invested in those facilities to create value-added markets for their soybeans. This industry was built from the ground up by farmers, engineers, fuel marketers and innovators—and that foundation is at risk.

We don’t need perfect federal policy—but we do need consistent signals. The biodiesel tax credit must be clarified and extended. RFS volumes must be set on time and at levels that reflect real-world production. Small-refinery exemptions (SREs) must be accounted for and handled transparently. And outdated, subjective indirect land-use change (ILUC) penalties must be reevaluated to reflect current agricultural practices so soybeans aren’t unfairly penalized.

Biodiesel is a reliable, low-carbon fuel that’s already working. It’s reducing emissions, supporting rural economies and delivering value across the supply chain—from feedstock providers to fleet operators. But like any other infrastructureintensive industry, it depends on long-term certainty to thrive.

As I reflect on the seeds planted this spring—both literally and figuratively—I’m hopeful we can get back to a place where federal and state policies align again. We’ve shown what’s possible when they do.

Author: Grant Kimberley Executive Director Iowa Biodiesel Board grantk@iowabiodiesel.org

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IASOYBEANS .COM Biobased Diesel® Summer 2025 [61]

PERSPECTIVE |

Commonsense Reforms to Revive the Renewable Fuel Industry An agricultural and biofuel producer crisis unfolding today can be thwarted with a few simple but effective solutions.

By Pete Moss It is too late for some and may be too late for many biodiesel plants. The renewable fuel industry has been on a rollercoaster ride for a long time with bad policies, mismanaged regulations, loopholes and unfair trade, just to name a few issues affecting the market. Fixing it really is just a matter of common sense. Most people want clean air, clean water and a clean environment. And most people who have invested billions of dollars in U.S. agricultural processing and renewable fuels want these industries to succeed. Yet over half of the biodiesel plants are idled, with many permanently shuttered. Many renewable diesel plants are also idled or operating at reduced capacity.

The ethanol industry is also distressed. Why? Uncertainty and bad policy. The whole system is broken, not just parts of it. Poor policies have strangled the industry with lapsing credits and caps that limit growth.

Market Reforms Needed

Perhaps it is time for an overhaul. Not everyone will agree, but it is certainly worth considering. Commonsense reforms for both biodiesel and ethanol could ensure that we have a robust renewable fuel industry that is also good for agriculture and the environment: • Delay 45Z implementation for biobased diesel and reinstate the blenders tax credit (BTC).

• Raise the renewable volume obligations (RVOs) under the Renewable Fuel Standard.

• Make year-round E15 permanent.

• Reform or eliminate the Quality Assurance Plan (QAP) program.

• Stop penalizing agriculture with uncertainty.

Section 45Z is half-baked and should be delayed or scrapped altogether for biodiesel. There is too much investment and too many jobs on the line. Continuing to wait on 45Z clarification will destabilize the industry further. Billions of U.S. dollars have been invested in soybean-processing and renewable fuel facilities. These are existing domestic industries that farmers rely on for value-added markets. While not nearly as sexy as artificial intelligence (AI) data centers, this is the foundation of our economy. Biodiesel and ethanol are not “Green New Deal” industries—they have been producing liquid renewable fuels for decades while creating thousands of jobs across the country and fostering an interdependent value chain. The BTC, which has lapsed multiple times over the years only to be retroactively reinstated, should be immediately extended for 2025 and 2026 to allow more time for a 45Z tax credit to be thoughtfully planned. This will provide immediate stability for biofuel producers. If this happens before this article is published, then that would be great.

The biobased diesel RVO should be raised to 5.25 billion gallons (at minimum) for 2026 to reflect the realities of the actual combined production capacity of renewable diesel and biodiesel, which the U.S. Energy Information Administration states is over 7 billion gallons. This will reflect the real, existing, combined [62]

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capacities of these industries. The 2027 RVO should be at least 6.5 billion gallons to reflect industry capacity and the additional soybean-processing plants currently being constructed. Higher RVOs will incentivize production without distorting the market.

Year-round E15 should be made permanent. Special waivers are given by EPA administrators to “bring down the cost of gasoline,” but there is no certainty to these waivers. A permanent E15 would put a continuous downward pressure on gasoline prices and help the ethanol industry by providing clarity through expanding the domestic market. No other industry faces such arbitrary production caps, which limit ethanol growth and consumer choices.

Eliminate the QAP program or make it mandatory. It serves no purpose except to punish small producers. The major buyers have independent vetting processes and the QAP program is just a redundant quagmire. It is a multitiered system in which small producers must pay for verification yet still get discounted on their RINs—if they can sell them at all. Q-RINs do not really mean anything anymore and they represent a very small percentage of RIN generation. If unqualified oil is imported on a large scale and used to produce fuel by a non-QAP entity, who is watching? There should not be multiple standards for detecting and preventing RIN fraud.

Clarity Needed

The industry desperately needs clarity. Soybean and corn farmers created these markets in part to help add value and remain competitive. We are already losing farmland to urban sprawl and solar farms at an alarming rate. Is it wise to further punish corn and soybean farmers? Ethanol, biodiesel and renewable diesel are all on their heels, in large part due to the 45Z debacle and unprecedented uncertainty.

The current renewable fuel regulatory structure is broken.

Farmers pioneered biofuels markets to add value to their crops, yet ironically the very crops that they grow are somehow bad.

Domestic-crop acreage is diminishing, not increasing. Now is the time to simplify the regulatory structure with commonsense reforms and let the industry continue to grow and become more efficient, just like it has over the past two decades. This will revive the industry, open closed plants, bring jobs back and improve rural economies. It seems like common sense to me.

Author: Pete Moss President Frazier, Barnes & Associates 901-725-7258 fbapete@frazierbarnes.com

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