Struggling energy companies are increasing the production of renewable diesel, which can reduce greenhouse gas emissions.
Excerpt from this New York Times story:
Many businesses are betting that electric and hydrogen-powered cars and trucks will play a critical role in the fight against climate change. But some oil companies are hoping that so will smelly restaurant grease and slaughterhouse waste.
Companies that refine crude oil into fuel are increasingly using such putrid scraps to make a renewable version of diesel that can significantly reduce greenhouse gas emissions from trucks, buses and industrial equipment without requiring families and businesses to invest in expensive new vehicles and factory gear. Phillips 66, Marathon, HollyFrontier and several other refiners are spending roughly $2 billion to retool refineries to produce the fuel over the next four years.
Renewable diesel has been around for years, and its production, while tiny compared with its fossil fuel counterpart, has grown steadily because the federal government and California offer incentives for companies to make and sell it. That support has made the fuel even more attractive to oil refiners during the pandemic because demand for regular diesel, gasoline and jet fuel has plunged as people drive and travel less.
Production of renewable diesel is up roughly 7 percent this year. If current trends continue, refineries could produce as much as 3.8 billion gallons of renewable diesel by 2025, or more than 5 percent of the total diesel production last year, according to S&P Global Platts, an energy research firm.
Renewable diesel is appealing for several reasons. It can be used in existing diesel engines without having to be blended with regular diesel — its biggest advantage over biodiesel and ethanol, which are also made from organic material but generally cannot be used without being mixed with petroleum products. Renewable diesel, like biodiesel, is produced from waste agricultural products and animal fats, but it is processed differently to make it chemically identical to conventional petroleum diesel.
People who buy diesel may not even know they are using renewable diesel because pumps can handle it, oil-based diesel or a combination of the two and typically carry no special labels.
Burning renewable diesel produces between 50 and 80 percent less greenhouse gas emissions than conventional diesel, depending on which raw materials are used to make the fuel. And oil refineries can make renewable diesel with a few upgrades.














