Representing New York's Heating Fuels Industry

Biofuel News

EPA Releases Final RFS Volumes for 2018
Reprinted with permission of Oil & Energy Magazine

20180228_EPA.jpgOn Friday, November 30, the United States Environmental Protection Agency (EPA) finalized a rule that establishes the required renewable fuel volumes under the Renewable Fuel Standard (RFS) program for 2018, and biomass-based diesel volume requirements for 2019. The final standards are only slightly changed from the proposed standards that EPA issued earlier last year.

Final Volume Requirements 2018-2019
Cellulosic biofuel (million gallons) 288 n/a
Biomass-based diesel (billion gallons) 2.1 2.1
Advanced biofuel (billion gallons) 4.2 n/a
Renewable fuel (billion gallons) 19.29 n/a

In the weeks and months leading up to November 30, many in the biofuels industry had expressed concerns regarding the EPA's plans to maintain, or even lower, renewable volume requirements rather than raise them. While the final volume requirements are not as low as some of the numbers EPA had tossed around earlier in the year, they do fall significantly shy of the increases that the biodiesel industry had requested. It is estimated that more than 60 million gallons of biodiesel are needed to meet the state biofuel blending requirements of Rhode Island and New York. NEFI has sponsored a study of the heating oil and biodiesel markets in the Northeast and Mid-Atlantic states. Look for more information in an upcoming issue of Oil & Energy.

Trade Commission Affirms Tariffs on Biodiesel from Argentina & Indonesia
Reprinted with permission of Oil & Energy Magazine

20180228_ITC.jpgOn December 5, 2017, the U.S. International Trade Commission (ITC) issued its final determination that biodiesel imports from Argentina and Indonesia harm U.S. producers. This affirmation ensures that current antidumping and anti-subsidy duties remain in effect for at least five years. In November, the U.S. Department of Commerce (DOC) set steep trade barriers that sharply reduced shipments of soy-based biodiesel from Argentina and palm-oil-based supplies from Indonesia. The tariff rates range from 71.45 to 72.28 percent for biodiesel from Argentina, and from 34.45 to 64.73 percent for biodiesel from Indonesia, depending on the particular foreign producer/exporter involved. The tariffs all but eliminate the flow of imported biodiesel into New England. All four ITC votes were in favor of finding that the U.S. biodiesel industry is materially injured by reason of imports from Argentina and Indonesia that DOC determined are subsidized by their respective governments. The ITC vote effectively locks in place the duties set by DOC. The National Biodiesel Board petitioned the government in March 2017 to impose the duties, claiming the imports were priced below the cost of production and undercutting U.S. producers. Argentina said the anti-subsidy duties that were as high as 72.28 percent made their biodiesel too expensive for the U.S. market. Argentina's biodiesel exports in the third quarter of 2017 fell 30 percent, due in part to the duties.

Don't Miss Out on the Benefits of Distilled Biodiesel
By Dave Slade, Executive Director, Biofuel Technology and Services, REG
Reprinted with permission of Oil & Energy Magazine

20180227_superior-cold-performance.jpgShowing heating oil companies how they can benefit from distilled biodiesel is as easy as counting to three.

  • Superior cold weather performance after blending with petroleum heating oil
  • Lower carbon intensity (CI) plus decreased supply and price fluctuations thanks to feedstock flexibility
  • Easier blending with petroleum heating oil

Getting some heating oil companies to take advantage of these benefits is where the challenge sometimes occurs. Although companies are increasingly offering Bioheat® blended fuel, which is traditional heating oil blended with biodiesel, some are still requesting biodiesel from a specific feedstock -- typically soybean oil -- rather than requesting higher quality biodiesel. Those that do are missing out on the benefits of distillation.

Superior Cold Weather Performance

Distillation is the most thorough process for purifying a liquid product -- in this case biodiesel. It is better than any other purification method at removing certain minor components, such as steryl glucosides, which are naturally present in vegetable oils and can contribute to filter plugging issues when using biodiesel blends.

The removal of those minor components contributes to distilled biodiesel's advanced cold performance properties. Far too often people think biodiesel Cloud Point is the only thing that matters when using biodiesel blends in cold conditions. But distilled biodiesel with a higher Cloud Point can outperform undistilled low-cloud biodiesel in cold weather.

Click here to read more.