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Neste: Renewables margins down in Q2, but SAF production increases

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By Erin Voegele

July 25, 2024

Sustainable Aviation Fuels Business Operations 

Neste Corp. on July 25 released second quarter results, reporting that operational performance at the company’s facilities was solid during the three-month period despite a very challenging market environment for renewables.

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Valero Energy Corp. released Q2 financial results on July 25, reporting strong performance for both its ethanol and renewable diesel segments. The company’s SAF project in Texas remains on track to begin operations later this year.

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Viridi Energy announced on July 24 that it has signed a 20-year offtake agreement with Énergir, L.P., the largest natural gas distribution company in Quebec and sole pipeline natural gas distributor in Vermont.

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The Sustainable Aviation Fuel (SAF) Coalition responds to USDA request for information on biofuel feedstocks, encouraging the agency to ensure federal policies are science-based and technology and feedstock neutral.

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Clean Fuels Alliance America on July 25 submitted a highly detailed, technical response to USDA’s request for information on climate smart agriculture practices for biofuel feedstocks, and emphasized the need for immediate 45Z guidance.

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Firefly Green Fuels and Synagro Technologies Inc. have partnered to bring Firefly’s novel fuel-production techniques to the U.S. market. Synagro has agreed to be the exclusive supplier of the biosolids feedstock used in Firefly’s innovative process.

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Rep. Mike Carey, R-Ohio, on July 18 introduced legislation that aims to extend the existing $1 per gallon blenders tax credit for biodiesel and renewable diesel for one year, through the end of 2025.

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A bipartisan group of 16 senators and 36 representatives on July 23 sent a letter to U.S. Treasury Secretary Janet Yellen urging her agency to take immediate action to finalize the rules to implement the 45Z clean fuel production credit.

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Clean Energy Fuels Corp. announced it has broken ground on a renewable natural gas (RNG) production facility at South Fork Dairy in Dimmitt, Texas. Construction on the project is expected to be complete in 2025.

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Bright Renewables and BerQ RNG are partnering to develop four new RNG projects in Michigan and New York. The two companies currently operate six upgraders at three different locations and hope to collaborate on several more projects.

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Neste has commissioned terminal capacity at ONEOK’s terminal in Houston for blending and storing its SAF. Neste now has approximately 33.6 million gallons of SAF storage capacity at the facility with direct connection to pipeline infrastructure.

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LanzaJet on July 24 announced a strategic investment from Airbus. The investment enables LanzaJet to continue to build its capability and capacity to scale its proprietary ethanol to sustainable aviation fuel (SAF) process technology.

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American Farm Bureau Federation, National Corn Growers Association, Biotechnology Innovation Organization, American Soybean Association, and American Biogas Council are among more than 500 organizations calling for the passage of a new Farm Bill.

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U.S. manufacturers produced approximately 850,000 tons of densified biomass fuels in April, according to the July edition of the U.S. EIA’s Monthly Densified Biomass Fuels Report. Sales of densified biomass fuel reached 780,000 tons during the month.

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The U.K. Department for Transport on July 22 sent a written statement to the U.K. Parliament confirming that, subject to Parliamentary approval, the agency will introduce a sustainable aviation fuel (SAF) mandate starting on Jan. 1, 2025.

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Boeing has released guidance to defense customers that company-built military aircraft can operate on sustainable aviation fuel (SAF) at currently approved limits of up to 50% blend with conventional fuel.

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The U.S. DOE has announced awards for the FY24 Phase I Release 2 of the Small Business Innovative Research and Small Business Technology Transfer program. Thirteen of 229 selected projects focus on bioenergy research and development.

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The U.S. EPA on July 18 announced it has reached a settlement with Lupton Petroleum Products Inc., and its affiliate Brad Hall Associates Inc., for violations of the Clean Air Act’s conventional and renewable fuel requirements.

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The U.S. Department of Transportation’s Federal Aviation Administration has launched $1 billion fiscal year (FY) 2025 funding opportunity that could help U.S. airports develop infrastructure to increase access to sustainable aviation fuel (SAF).

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Amp Americas on July 22 announced the completion of a project that converts dairy waste into RNG at Darlington Ridge Farms in Darlington, Wisconsin. The facility is the latest of Amp Americas’ 12 operating digesters.

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Growth Energy and others filed two intervenor briefs in the U.S. Court of Appeals for the District of Columbia Circuit related to a set of consolidated lawsuits filed by oil industry and environmental petitioners challenging EPA’s RFS “set” rule.

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Zone-Éco and Waga Energy commissioned an RNG production unit at a landfill site in Cowansville, Quebec, Canada. Each year, it will average an injection of 102,000 MMBtu of RNG, representing consumption for around 1,750 households in the province.

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Cargill has surpassed the 50% completion milestone in the construction of its new canola facility located in West Regina, Saskatchewan. The new facility will produce canola oil for food and biofuels markets and canola meal for animal feed.

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The DOE has announced its intent to fund partnerships between industry stakeholders and Feedstock-Conversion Interface Consortium researchers. The partnerships will address the cost and risk impacts of feedstock and process variability.

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Nearly 2.04 billion RINs were generated under the RFS in June, down from 2.06 billion generated during the same month of last year. Total RIN generation for the first half of 2024 reached 12.07 billion.

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The U.S. EPA on July 18 released updated small refinery exemption (SRE) data, reporting that seven new SRE petitions have been filed under the RFS during the past month. A total of 46 SRE petitions are now pending.

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U.S. farm groups are urging the Biden administration to maximize the benefits of the 45Z clean fuels production tax credit by ensuring only fuels made using domestically produced feedstocks are eligible and improving climate-smart ag provisions.

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This year marks the 50th anniversary of Drax Power Station beginning to generate power and to celebrate this occasion the owners of the new ship, Ultrabulk, invited Drax to name their latest vessel.

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Benson Hill Inc., a seed innovation company, on July 16 shared further advancements in its innovation pipeline to deliver advantaged traits for end users in larger soy markets, including animal feed, soybean oil, and biofuels.

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Maine Gov. Janet Mills on July 2 announced the award of a $100,000 grant to the Maine Pellet Fuels Association. The funding will support efforts to expand domestic markets for wood pellet fuel manufactured within the state.

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