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Section 45Z is here: Act fast, monetize smart

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By McCord Pankonen

July 25, 2025

Policy Advanced Biofuels Cellulosic/Advanced  Sustainable Aviation Fuels 

While final IRS guidance is still pending, the foundation of the 45Z program is well defined. Clean fuel producers should no longer be waiting; they can now move forward with critical planning and preparation, according to EcoEngineers.

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Neste Corp. on July 24 released second quarter results, reporting record quarterly renewable product sales volumes despite weaker margins. SAF sales were up nearly 80% when compared to the first quarter of 2025.

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Valero Energy Corp. on July 24 released second quarter results, reporting a profitable three-month period for its ethanol segment. The renewable diesel segment posted a loss, but the company’s new sustainable aviation fuel (SAF) unit operated well.

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Par Pacific Holdings Inc., Mitsubishi Corp. and ENEOS Corp. on July 21 announced the signing of definitive agreements to establish Hawaii Renewables LLC, a joint venture to produce renewable fuels at Par Pacific’s refinery in Kapolei Hawaii.

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A new study published by the ABFA finds that the U.S. EPA’s proposal to cut the RIN by 50% for fuels made from foreign feedstocks, as part of its 2026 and 2027 RVOs, could stall the growth of the biomass-based diesel (BBD) industry.

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Broco Energy on July 17 announced a new partnership with the Massachusetts Port Authority (Massport) to deliver and transition Massport's fuel tanks to renewable diesel across its various facilities.

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The U.S EPA on July 17 released data showing more than 1.9 billion RINs were generated under the RFS during June, down 11% when compared to the same month of last year. Total RIN generation for the first half of 2025 reached 11.17 billion.

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Biomethanol offers a flexible platform for converting available sustainable feedstocks into low-carbon fuel.

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The U.S. Energy Information Administration maintained its forecast for 2025 and 2026 biodiesel, renewable diesel and sustainable aviation fuel (SAF) production in its latest Short-Term Energy Outlook, released July 8.

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U.S. fuel ethanol capacity fell slightly in April, while biodiesel and renewable diesel capacity held steady, according to data released by the U.S. EIA on June 30. Feedstock consumption was down when compared to the previous month.

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XCF Global Inc. on July 8 provided a production update on its flagship New Rise Reno facility, underscoring that the plant has successfully produced SAF, renewable diesel, and renewable naphtha during its initial ramp-up.

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The U.S. EPA on July 8 hosted virtual public hearing to gather input on the agency’s recently released proposed rule to set 2026 and 2027 RFS RVOs. Members of the biofuel industry were among those to offer testimony during the event.

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President Trump on July 4 signed the “One Big Beautiful Bill Act.” The legislation extends and updates the 45Z credit and revives a tax credit benefiting small biodiesel producers but repeals several other bioenergy-related tax incentives.

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Global digital shipbuilder Incat Crowther announced on June 11 the company has been commissioned by Los Angeles operator Catalina Express to design a new low-emission, renewable diesel-powered passenger ferry.

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DCAS and NYC DOT announce first barge delivery of renewable diesel

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By NYC Department of Citywide Administrative Services

June 26, 2025

On June 17, the NYC Department of Citywide Administrative Services and the Department of Transportation announced the start of the Staten Island Ferry’s transition to renewable diesel, marked by the delivery of the first barge of fuel.

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The International Energy Agency in June published its World Energy Investment 2025 report, predicting that investment in liquid biofuels, biogases and low-emissions hydrogen will increase 30% this year to a record high of nearly $25 billion.

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Diesel Direct is proud to support the Steamship Authority in launching its landmark renewable diesel pilot program this summer aboard the M/V Island Home, which operates on the Woods Hole–Martha's Vineyard route.

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The U.S. EPA on June 18 announced 1.75 billion RINs were generated under the RFS in May, down from 2.07 billion that were generated during the same period of last year. Total RIN generation for the first five months of 2025 reached 9.06 billion.

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The U.S. EPA on June 13 released a proposed rule to set strong 2026 and 2027 RFS RVOs. The rulemaking also aims to limit the participation of imported fuels and feedstocks, eliminate eRINs, and reduce the 2025 cellulosic RVO.

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Oregon Department of Transportation’s POINT intercity bus service has joined Oregon’s transit agencies in making a leap toward sustainability by transitioning its Cascades Route fleet from petroleum diesel to renewable diesel.

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Total U.S. biofuels production, including ethanol, renewable diesel, biodiesel and other biofuels, including SAF, averaged a record 1.39 million barrels per day last year, according to data released by the U.S. EIA on June 9.

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The U.S. EIA reduced its 2025 and 2026 production forecasts for a category of biofuels that includes SAF in its latest Short-Term Energy Outlook, released June 10. The forecast for 2025 renewable diesel production was also revised down.

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Airport company Finavia's Helsinki Airport has achieved net-zero carbon emissions targets in its own operations and has received an international Airport Carbon Accreditation program’s net-zero certification with the help of renewable diesel.

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AM Green and the Port of Rotterdam Authority signed a memorandum of understanding to focus on building a green energy supply chain between India and Northwestern Europe via Rotterdam. This includes the supply of bunkering fuels and SAF.

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U.S. production of renewable diesel and biodiesel fell sharply in the first quarter of 2025 because of uncertainty related to federal biofuel tax credits and negative profit margins, according to the U.S. Energy Information Administration.

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The U.S. Department of Energy on May 30 released an updated version of its 45ZCF-GREET modeling tool to account for new feedstocks and methods of production, including ethanol from corn wet-milling and natural gas from coal-mine methane.

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Moeve has reached a strategic agreement with Grupo Armas Trasmediterránea to supply 2G marine biofuels in the Canary Islands, with approximately 40,000 tons to be delivered through December 2025 under a long-term contract.

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Biomass Magazine has announced the dates for the 19th annual International Biomass Conference & Expo. The event is scheduled to be held March 31-April 2, 2026, in Nashville, Tennessee, at the Gaylord Opryland Resort & Convention Center.

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Keolis Commuter Services, the Massachusetts Bay Transportation Authority’s operations and maintenance partner for the Commuter Rail, has launched an alternative fuel pilot utilizing renewable diesel for some locomotives.

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Clean Fuels Alliance America on May 22 delivered a letter to U.S. EPA Administrator Lee Zeldin, urging him to set the 2026 RFS biomass-based diesel volume at no less than 5.25 billion gallons and allow continued growth in the 2027 volumes.

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