(Benchmark) Producing renewable fuels is a potentially rewarding opportunity for refiners to enhance their services for profitable and lasting portfolios. From feedstock and technology selection to project delivery methods and complementary projects, several considerations can affect the feasibility of such projects.
Picking Your Pathway: Pros and Cons
ASTM International has approved seven pathways for SAF. These are brief overviews about the three most promising options:
…
Reducing Carbon Intensity
Current legislation incentivizes transportation fuels with lower carbon intensity (CI). Producers can consider a variety of ways in which they can reduce the CI of their product along the chain of production, distribution and usage of fuels. This also helps plant operators reap the financial incentives that can help drive project success.
…
In the field
Everything from fertilizer choice to land use changes can impact CI scores. By testing soils and minimizing manufactured nitrogen use, applying precision agriculture technologies, and leveraging field management techniques, scores can be reduced.
Transportation and logistics
How far feedstock must be transported to the plant, and by which transportation method, can make a significant difference in CI, as can how far the renewable fuel products must be shipped to their final destinations.
Processing
Producers can make a significant impact on CI through the choice of steam, electricity or other plant energy sources, as well as the chemicals used in processing. In some markets, facilities can lower their CI by using carbon capture and sequestration instead of releasing carbon dioxide into the atmosphere.
Feedstock selection
Renewable fuel economics can be optimized by using feedstocks not intended for human consumption when possible. Food feedstocks hurt CI scores due to the deferred land use and fertilizer charges associated with their production. However, vegetable oil feedstock pathways such as soybean oil and canola oil tend to have a higher carbon footprint than animal fats, waste oils and cover crops.
Fuel choice
CI scores can be improved by minimizing high-carbon inputs such as natural gas and choosing lower-carbon inputs (e.g., renewable natural gas) where they can be monetized through incentives. High-carbon inputs can be further reduced by finding alternatives to hydrogen (such as blue or green hydrogen), since both the purchase price and carbon value must be accounted for in biofuel plants.
…
Three keys to preparing projects for success:
Speed to market
…
Cost assurance
…
Partner selection READ MORE