ship.energy

US refiners facing challenge of renewable diesel glut

US refiners’ efforts to reset their plants to produce more renewable diesel may have gone too far, as a ‘supply glut of biofuels is ‘hammering profit margins’, according to news agency Reuters.

In an article published today (13 May), Reuters said the U.S. renewable diesel production capacity nearly quadrupled following the coronavirus pandemic from just 791 million gallons a year in 2021 to 3 billion gallons by 2023, and now the ‘glut’ could threaten the nascent renewables industry and ‘potentially stall the transition away from traditional fossil fuels’.

Some producers of these biofuels have already shuttered plants this year, and industry participants told Reuters that more could withdraw from the market before the year’s end.

Vertex Energy announced last week that it was ‘pausing’ the production of renewable diesel at its Mobile refinery and ‘pivoting to producing conventional fuels’.

Image: Shutterstock

Ian Taylor

Add comment