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Drax reports improved pellet margins, new market opportunity in SAF feedstock supply

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By Erin Krueger

November 12, 2024

Pellets Power Business Sustainable Aviation Fuels 

Drax Group plc on Nov. 12 reported its pellet production business is performing well on increased production and improved margins. The company is also working to develop new market opportunities for pellets, including SAF feedstock.

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Neste and Air Canada have signed an agreement for the supply of 60,000 metric of neat Neste MY Sustainable Aviation Fuel. Neste will deliver the SAF, blended with conventional jet fuel, to the Vancouver marine terminal starting in December 2024.

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NATSO, representing truck stops and travel centers, and SIGMA: America’s Leading Fuel Marketers, on Nov. 8 urged Congress to take action during the Lame Duck session to extend the $1 per gallon biodiesel blenders’ tax credit.

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Neste on Nov. 8 announced its Rotterdam refinery has been shut down due to a fire. The fire has been extinguished and did not cause any injuries. Production will be down for several weeks, impacting renewable diesel customer deliveries.

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Calumet Inc. on Nov. 8 released third quarter financial results and outlined plans for the development of Montana Renewables’ MaxSAF initiative, which will be supported by a U.S. Department of Energy loan guarantee.

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Gevo Inc. released Q3 financial results on Nov. 7, discussing the impact of the conditional commitment for its DOE loan guarantee and confirming the company’s acquisition of Red Trail Energy remains on track to close in early 2025.

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Veolia has been awarded a contract to assume operations and maintenance of the City of Toronto’s Dufferin organics processing facility. The company has operated and maintained Toronto’s other anaerobic digestion facility at Disco Road since 2014.

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Clean Energy Fuels Corp. on Nov. 6 released third quarter financial results, reporting that renewable natural gas (RNG) gallons sold reached 59.6 million gallons during the quarter, up 5.1% when compared to last year.

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Cathay has announced its Corporate Sustainable Aviation Fuel (SAF) Programme has achieved significant growth this year. The program partners together in 2024 have committed to using 2,650 metric tons of SAF (equal to 906,000 U.S. gallons).

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Greenlane Renewables Inc. on Nov. 6 announced two service agreements signed with an international energy company for two of its dairy RNG project sites in U.S. for which Greenlane previously supplied the biogas upgrading systems.

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Marathon Petroleum Corp. on Nov. 5 confirmed the Martinez Renewable Fuels biorefinery in California remains on track to be operating at full nameplate capacity by the end of the year. At full capacity, the facility can produce 730 MMgy.

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OPAL Fuels Inc. announced on Nov. 6 that construction has commenced on a new landfill-gas-to-RNG facility at the Kirby Canyon Landfill, located in Santa Clara County, California. The new facility is the company’s 17th RNG project.

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The American Fuel & Petrochemicals Manufacturers on Nov. 1 petitioned the U.S. EPA to waive a portion of the compliance year 2024 Renewable Fuel Standard renewable volume obligation (RVO) for cellulosic biofuel.

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Chesapeake Utilities Corp. held a ribbon-cutting ceremony on Oct. 28, to mark the official completion of its renewable natural gas (RNG) facility at Full Circle Dairy (FCD) in Lee, Florida. The facility began producing RNG in June.

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Hill Aircraft has furthered its commitment in providing alternative jet fuel through an expanded support agreement with World Fuel Services that will make it the first FBO in Georgia to offer dedicated SAF for business aviation customers.

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DG Fuels on Oct. 30 announced plans to construct a 193 MMgy sustainable aviation fuel (SAF) facility in Moorhead, Minnesota. The proposed project supports the development of the Minnesota SAF Hub, an initiative spearheaded by the Greater MSP Partnership.

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Imperial Oil Ltd. on Nov. 1 confirmed that its renewable diesel project under construction at the company’s Strathcona refinery near Edmonton, Alberta, continues to progress on schedule with startup expected during the first half of next year.

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Renewable energy company Drax has announced the launch of its virtual tour of its Mississippi pellet plant. The tour allows visitors to explore the plant’s operations, including the production of a wood pellet.

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BioVeritas LLC has announced the launch of The BioVeritas Process for SAF. This breakthrough technology converts biomass via fermentation into volatile fatty acids (VFAs), a key precursor for a range of high-value products, most notably SAF.

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PBF Energy Inc. on Oct. 31 announced that its St. Bernard Renewables facility produced 13,000 barrels per day of renewable diesel during the third quarter. Production is expected to increase during the fourth quarter.

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The California Air Resources board has announced an historic agreement with the nation’s leading passenger and cargo airlines to dramatically accelerate the use of sustainable aviation fuel (SAF) for flights within the state.

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OPAL Fuels Inc. on Oct. 31 announced the start of commercial operations at its RNG facility at the Polk County municipal landfill in Jones Corner, Florida. The facility has the capacity to produce 1.1 million MMBtus of RNG annually.

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The USDA on Oct. 30 awarded $120 million to six fertilizer production projects through its Fertilizer Production Expansion Program. One of the awards will support the development of a biochar project in Port Angeles, Washington.

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CVR Energy Inc. on Oct. 29 announced that the renewable diesel unit at its Wynnewood refinery in Oklahoma processed 19.6 million gallons of vegetable oil feedstock during the third quarter, down from 23.8 million gallons during the same period of 2023.

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The USDA on Oct. 29 announced it is allocating $200 million to the newly created Biobased Product Market and Access Grant Program, which will support innovative biobased technologies and bridge the gap between pilot-scale demonstrations and commercial viability.

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Vision RNG, in collaboration with Laurel Ridge Landfill, L.L.C., a subsidiary of Waste Connections, Inc., and Delta Gas, has announced the start of commercial operations at its new RNG facility located at the Laurel Ridge Landfill in Lily, Kentucky.

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Phillips 66 on Oct. 29 reported that its renewable fuels segment was impacted by lower margins during Q3, but company officials expect margins to improve moving forward. The company also reported it began producing SAF in September.

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Synthica Energy, a developer of anaerobic digestion facilities that convert organic waste into renewable natural gas (RNG), has selected Archer Western Construction as its partner for development of Synthica’s new facility in San Antonio, Texas.

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Golden State Natural Resources on Oct. 22 announced the release of a draft environmental impact report (DEIR) for its proposed 1-million-metric-ton-per-year industrial wood pellet project under development in California.

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Italian energy company Eni and U.S.-based KKR on Oct. 24 announced an agreement under which KKR will purchase a 25% stake in Eni’s Enilive business, which encompasses the company’s biorefining, biomethane, and smart mobility solutions businesses.

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