Low Carbon Solutions Team

Renewable fuels have long been viewed as a critical step in the transition away from Carbon-based fuels. Significant technological advancements have allowed producers to crack waste products from the refining of edible oils and convert these into clean burning fuels. These advancements have not come without a cost and the business itself relies heavily on subsidies to compete with conventional fuels.

The United States has implemented the Renewable identification numbers (RINs) which are credits used for compliance and are the “currency” of the RFS enacted by Congress.

The European Union has mandated that 32% of its energy needs come from renewable sources as of 2023. The EU Carbon offsets are one of the main incentives for the consumption of renewables.

China is already producing over 50% of its energy needs from renewable sources, a year ahead of schedule.

Fuel Types: In line with certain ESG’s, some of the major airline operators have signed on to using SAF (Sustainable Aviation Fuel) to reduce emissions. HVO (Hydrotreated Vegetable Oil) and SAF are the main focus now which reduce GHG, have a longer shelf life, and provide better performance in cold climates. Additional co-products like Renewable Naphtha and Renewable LPG are also seen as potential growth markets, however so far, the volumes are not really there.

With the growth in renewable feedstocks movements, has come increased pressure on the IMO 2 fleet with these products competing directly with Petrochemicals and Veg oils for capacity.