The world\u2019s biggest renewable-diesel producer is looking to convert everything from tree limbs to landfill garbage into fuel for motor vehicles and planes as demand surges for low-carbon fuel sources.<\/p>\n
In Canada\u2019s Quebec province, Neste Oyj is part of a consortium looking at the possibility of building a refinery that would use forestry waste such as treetops and branches to produce renewable diesel, Jeremy Baines, president of the Finnish company\u2019s North American operations, said in an interview.
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The search for additional feedstocks comes as demand strains availability of traditional biofuel ingredients like soy oil, contributing to food inflation and destruction of forests to plant crops. More fossil-fuel companies are entering the market, and U.S. production capacity for renewable diesel is expected to jump almost sixfold by the end of 2024, according to JPMorgan Chase & Co. Neste said it isn\u2019t worried about heightened competition for raw materials.<\/p>\n
\u201cIt\u2019s fun to see the petroleum companies starting to do what we worked at 15 years ago,\u201d Baines said. \u201cIt\u2019s also a demonstration that the oil industry has got the skills and assets to convert from petroleum to renewable.\u201d<\/p>\n
Neste, which works with low-carbon-intensity sources like used cooking oil and animal fats, also is studying potential raw materials including crops used to enrich soil to solid landfill waste. The company currently doesn\u2019t use soy oil or other edible oils to make renewable diesel in North America.
\nGreen Jet Fuel<\/p>\n
The push for new feedstocks comes as Neste is also looking to expand into the markets for \u201cgreen\u201d jet fuel and bioplastics. It has a head start as the world\u2019s biggest maker of sustainable aviation fuel.
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\u201dThere are no electric cables long enough to power a plane,\u201d Baines said.<\/p>\n
Read More: Green Diesel Opening Up Bioplastics, Sustainable-Aviation Usage<\/p>\n
In the U.S., more states are adopting low-carbon fuel markets similar to California\u2019s, while Canada is rolling out subsidies to curb emissions from crude-based motor fuels.
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\u201cYou really have this green corridor of states and provinces that are looking to decarbonize their transportation,\u201d Baines said.<\/p>\n
Tradable biomass-based diesel credits, used to track compliance with U.S. biofuel blending rules, have more than doubled since November, when the election of President Joe Biden raised the outlook for stronger environmental market policies.
\nBiofuel Credits Soar<\/p>\n
As far as the threat of electric vehicles to the biofuels industry, Baines said he\u2019s not concerned and also personally owns an EV.<\/p>\n
\u201cThere\u2019s no one magic bullet to decarbonize,\u201d he said. \u201cWe will need electrification. We will need hydrogen. We will need liquid renewable fuels. There is space for everyone in this.\u201d<\/p>\n
Neste has also experimented for years with some potential biofuel feedstocks such as algae, and these new ingredients are now very close to becoming viable, he said.<\/p>\n
\u201cI think with most of these we are pretty close. This is not something that is 10 years out. This is less than 10 years out. This is probably more in the three to five year\u201d range, he said.
\n(Updates with detail about Canadian project in the second paragraph. An earlier version of this story corrected the first paragraph to show Neste is the biggest producer of renewable diesel, not of all biofuels)<\/p>\n","protected":false},"excerpt":{"rendered":"
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