The production of renewable fuels like renewable diesel (RD) and hydrotreated vegetable oil (HVO) and sustainable aviation fuel (SAF) heavily relies on various feedstocks. Key feedstocks include used cooking oil (UCO), tallow, yellow grease, and vegetable oils such as palm, corn, canola, and soybean oil. Each of these feedstocks has unique properties and challenges associated with its collection, processing, and transportation.
Used cooking oil (UCO) is a significant feedstock, collected from restaurants and food processing facilities worldwide. In major cities, the collection process is well-established, with specialized trucks transporting UCO to processing plants. However, the volume of UCO often falls short of the demand, leading to concerns about its authenticity and potential blending with other oils.
Tallow and yellow grease, byproducts of animal processing, are also crucial in renewable fuel production. These feedstocks are sourced from the rendering of beef, pork, and poultry fats. Their availability is tied to the meat processing industry, making them reliable yet variable in supply.
Vegetable oils, including corn, palm, canola, and soybean oil, contribute to the feedstock pool but face limitations due to their higher value in other applications. Palm oil, despite its potential, is less favored due to environmental concerns and stringent regulations in markets like Europe.
The cost-effective acquisition of these feedstocks is essential for the sustained growth of the renewable fuel industry. As the market evolves, innovations in feedstock sourcing and processing will be crucial in meeting the increasing demand for cleaner, sustainable fuels.
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By Matthew Andrews
Ship Broker, Partner
Quincannon Associates
Low Carbon Solutions Team