Every Question We Have Been Asked About Renewable Diesel
Renewable Diesel Frequently Asked Questions (FAQ)
What is renewable diesel?
Renewable diesel is a low CO2 synthetic diesel fuel, typically seeing purity and real world performance response superior to petroleum diesel fuel. Renewable diesel is a next generation biofuel made by either the Fischer-Tropsch or Hydrogenation processes. The technology that makes renewable diesel involves taking various lower grade feedstocks, typically garbage, and turning then into a diesel hydrocarbon by gasifying and then reforming the molecular stew created with a catalyst and the addition of hydrogen in the process.
What is renewable diesel made of?
Renewable diesel can be made from a host of things, usually a low value waste product. The most common feedstock used currently is waste vegetable oil, wastes from animal rendering, and other biologically derived oils. Processes using bio-oils are following a Hydrogenation process to turn low value waste oils into high value diesel and jet fuel.
Renewable Energy Group and Diamond Green Diesel (Diamond Green is in a joint venture with Valero) are the largest producer of renewable diesel with their REG Ultra Clean Diesel product in the United States. Neste is the largest producer of renewable diesel internationally, with its “Neste My” product. being the two largest producers of low CO2 bio-oil derived renewable diesel fuels. There are quite a few newer Renewable Diesel projects coming on line around the United States as well as in the Pacific Northwest.
Other refiners of renewable diesel (on a much smaller scale of production) are using a Fischer-Tropsch process with wood waste, sorted higher grade municipal garbage, and other high btu value carbon based waste products. Many expect this to technology to be the future of all diesel and jet fuel refining turning refuse into fungible low carbon fuel.
What is renewable hydrocarbon diesel?
Renewable hydrocarbon diesel is a synthetic diesel fuel made from non-petroleum feedstocks like vegetable oil, animal fats, municipal waste, agricultural biomass, and woody biomass. It is characterized by having a low CO2 and renewable resource for its feedstock and is made without crude petroleum, coal, or natural gas as a direct feedstock input in the refining process.
How do they make renewable diesel?
Renewable diesel is made by several processes. If you are buying renewable diesel, it is probably from a Hydrogenation process used by Renewable Energy Group and Neste for their products. Other smaller volume producers are using a Fischer-Tropsch process or Fast Pyrolysis. Both processes involve taking energy dense molecules, cracking those molecules under heat and pressure, then reforming them in the presence of a catalyst and added hydrogen, which forms a renewable diesel molecule.
Is renewable diesel a lower carbon fuel compared to petroleum diesel?
Yes, to this point all renewable diesel made from renewable feedstocks have appeared to be a lower CO2 fuel compared to petroleum diesels. The California Air Resource Board in particular has done research on this in depth.
The low CO2 lifecycle emissions of Renewable Diesel also is tracked closely and supervised by California’s Low Carbon Fuel Standard and Oregon’s Clean Fuels Program. The highest value markets for low CO2 fuels in the United States are California and Oregon, which both have mechanisms that track and price the CO2 intensity of diesel fuels as well as the sustainable lower CO2 substitutes and blendstocks that can go in those diesels. They track, rate, and determine the carbon intensity of the fuels providing a neutral and scientifically defensible number for CO2 reduction.
Is renewable diesel available in Oregon?
Renewable diesel is readily available for delivery from Star Oilco throughout the Pacific Northwest via 10,000 gallon volumes of bulk delivery. Star Oilco is also offering bulk delivery of any size and mobile onsite fueling service within 100 miles of the Portland, Oregon market. Star Oilco is planning on offering renewable diesel at several cardlock location in the spring of 2021.
What is the difference between biodiesel and renewable diesel?
Biodiesel and renewable diesel are very different fuels made with very different processes. In a nutshell, biodiesel is made with a simple chemical reaction that turns vegetable and animal fats into fuel. Renewable diesel is made from far more complicated process where vegetable and animal fats (as well as other feedstocks) are cracked on a molecular level and built back into synthetic diesel fuel.
What is the difference between renewable diesel and renewable jet fuel?
The difference between the fuels is the specific gravity and general specification for what the fuel is used for. Jet fuel and on-road diesel fuel are different fuels and therefore have different specifications. Renewable diesel is typically referring to a #2 diesel specification for on road diesel use. Renewable jet fuel is typically referring to “Jet A” or “JP8” jet fuel specification for fuel. This is a #1 diesel range fuel with use and handling requirements that are far more stringent than for on-road or off-road diesel fuels. Renewable jet fuel can be used as a kerosene or #1 diesel fuel but renewable diesel cannot be used as a jet fuel.
Where do I buy renewable diesel in Oregon or Washington?
Renewable Diesel is currently available for bulk delivery and mobile onsite fueling. It will soon be offered at commercial cardlock in the Portland area. It is being sold as R99 and as Ultra Clean Diesel, which is a mixture of biodiesel, renewable diesel, and petroleum diesel.
What is R99?
R99 stands for 99% renewable diesel and 1% petroleum diesel. Federal rules over alternative diesel fuels made fuels requires that manufacturers of non-petroleum derived diesel fuels must blend a minimum 1% petroleum with the fuel to generate a Renewable Industry Number or “RIN” under the US Federal Renewable Fuel Standard. Additionally there are other incentives that require a “blender of record” to receive these tax credits.
Is renewable diesel being made in Oregon?
Red Rock Biofuels is focused on making renewable jet fuel, which is expected to be completed and in operation sometime in 2019. Next Renewable Fuels does not have a disclosed completion date.
What is renewable diesel made from?
Renewable diesel can be made from many energy dense carbon based material. By volume of produced product sold in the United States, vegetable oils and animal fat based wastes are the most common feedstock. Woody biomass, agricultural wastes, and sorted municipal wastes are also sources for renewable diesel production.
Is renewable diesel made from palm oil?
Palm oil can be used as a feedstock for renewable diesel. There are producers who use palm oil as a feedstock. In the United States, feedstocks and carbon intensity are tracked closely under both Oregon and California’s fuel programs. You can determine if a supplier is using palm oil as a feedstock through these regulated pathways.
How much does renewable diesel cost?
This is a tough question to answer given there are several markets intersecting. From the feedstocks to the market demand for finished product as well as both California and Oregon’s Clean Fuel Standards which place a price on the CO2 intensity of the fuel which reduces the cost of the fuel if consumed in Oregon and California. These days, your guess is as good as ours.
It has consistently been trending between the same cost and over a $1 a gallon higher than petroleum diesel depending on the state you buy renewable diesel in. In California, renewable diesel is very close to petroleum diesel depending on the value of CO2 credits for lower carbon fuels. In Oregon, it has consistently been between $.30 to $.80 a gallon higher than diesel also depending on the value of CO2 abatement associated with the fuel and what these carbon credits are trading for.
Can you mix petroleum diesel and renewable diesel?
Yes. Renewable diesel and petroleum diesel can be blended in any mixture without worry. They are drop-in substitutes for each other in your fleet’s use. Renewable Diesel is a drop in fuel. It is a hydrocarbon diesel that will work mixed with diesel or biodiesel blends of petroleum diesel.
Will Renewable Diesel be available if Oregon bans petroleum diesel?
Renewable Diesel is available in the Oregon market right now. To learn more about why Oregon might be banning petroleum diesel click here. Pricing would be a concern. New renewable plants are in planning and old petroleum plants are being converted now. The increased demand that outright banning fossil diesel could escalate prices quickly. Developing a relationship with a provider of biodiesel and renewable diesel is key to ensure your supply.
More questions coming… or if you would like to learn more contact us.