With the LCFS in full swing and California’s goals of offsetting carbon continuing to intensify into 2020, so has the demand for low CI feedstocks for bio and renewable diesel production. This has been especially apparent in the distillers corn oil market, which has seen both price and usage increases over the last few months.
Initially, bio and renewable diesel producers saw an opportunity for additional feedstock from the distillers’ corn oil production, and ethanol producers saw an additional revenue stream. Assuming an annual biodiesel production capacity of 2.1 billion gallons, as reported by the EIA, that translates loosely into 16 billion pounds of feedstock needed to make said fuel. The combined production of US recycled products, excluding distillers corn oil, is 9 billion pounds. That 7 billion pound gap left a lot to be filled with higher priced virgin vegetable oils, and the addition of corn oil into the feedstock stream over the last few years has been a big benefit to the industry.Read More