Recent article Chevron shutting for now. two biodiesel plants due to lousy market, Chevron (CVX) Shuts Down Biodiesel Plants Amid Market Challenges Hard to grasp overall situation from the article, but we get some clues. Sounds like Biden admin has reduced ethanol volume mandates (mandates set in 2006 were always based on growth wrong data). Now that hybrids and EV's are taking hold, it is impossible to blend so much ethanol in the smaller gaso pool. Biodiesel is made from methanol/Veggie Oil reaction, and is less good than advanced "biodiesel" where the Veggie Oils/Animal Fats (Triglycerides) are completely hydrogenated to form clean regular diesel. It is very expensive to make, but California is heavily subsidizing, so it seems like they are saying the advanced biodiesel is taking over for now, whereas the subsidies for the regular biodiesel are lower in the market due to part to the reduced demand for corn ethanol.
Countering the benefits of biodiesel as a fuel is the fact that it has a high gel point that makes it unsuitable for winter use. Plus, engines currently on the road are limited in what blends they can tolerate. Advanced 'biodiesel' doesn't have those issues; it is a direct drop in replacement fuel. Even without the economic forces, we'd probably see some biodiesel plants close as advanced ones come on line. I think a station chain in California already sells 100% advanced. The advanced/next gen biodiesel is also referred too as HVO(hydrotreated/hydrocracked vegetable oil), though it and biodiesel can be made from any type of fat. Animal fat gives better quality biodiesel, but vegetable oils are cheaper to get and process.
It's great to hear that a California station chain already sells 100% advanced biodiesel. Animal fat may yield better quality, but the cost-effectiveness of vegetable oils makes them a popular choice for production.
