Biodiesel producer Ever Cat Fuels ceases operations

Ever Cat Fuels, a biodiesel producer headquartered in Isanti, Minnesota, USA, recently announced that it is shutting down all production activities and ceasing its biodiesel business operations. As a company once regarded as a pioneer in the industry, this shutdown has triggered the market to think deeply about the future development of the U.S. biodiesel industry.

Multiple factors make the business unsustainable

Ever Cat Fuels said in a statement that the main reasons for the shutdown include the following:

1. Deteriorating market conditions: Biodiesel market prices have fluctuated dramatically, and profitability has been further compressed.

2. Unstable policy support: The lack of consistency in the US government’s renewable fuels policy, especially the US Environmental Protection Agency’s (EPA) decision to include petroleum-based renewable diesel and biodiesel in the same Renewable Identification Numbers (RINs) category, further exacerbated the inequality of competition in the market.

3. Insufficient supply of feedstock: The supply chain of feedstock, such as waste vegetable oil, on which companies rely for production is unstable and difficult to support sustainable production.

4. Uncertainty in tax policy: The uncertain direction of the U.S. Department of the Treasury’s Clean Fuels Producer Tax Credit, which is due to be introduced in 2025, has further increased operational risk.

The combination of these factors makes it difficult for Ever Cat Fuels to continue to operate in the current environment.

The reality behind technological innovation

Ever Cat Fuels was founded in 2009 to produce biodiesel using the unique Mcgyan® process. Developed by inventors McNeff, Gyberg and Yan, the process relies on a non-homogeneous metal oxide catalyst for efficient, low-cost biodiesel production in a fixed-bed flow-through reactor.

Although innovative, the Mcgyan® process was ultimately unsustainable due to its limited scale of production (only 3.3 million gallons per year), as well as unfavourable market and policy environments.

New DG Fuels SAF plant to be built in Nebraska

company has been awarded a contract by DG Fuels to provide early engineering, licensing, and the Process Design Package (PDP) for a state-of-the-art SAF plant in Nebraska, USA.

The project will leverage MyRechemical’s proprietary NX Circular™ gasification technology, a cutting-edge solution designed to convert residual biomass into high-value SAF. With an expected annual production capacity of 450 million liters, the facility is poised to become a significant contributor to the global push for decarbonized aviation.

Scheduled to be operational by 2029, the plant represents a major step in reducing the aviation sector’s carbon footprint. By utilizing residual biomass as its primary feedstock, it underscores a commitment to circular economy principles while offering a scalable model for future SAF facilities.

This partnership between MAIRE, MyRechemical, and DG Fuels reflects the growing demand for innovative technologies to address the challenges of sustainable energy transitions. The Nebraska plant is expected to set new benchmarks in efficiency, sustainability, and the practical implementation of advanced gasification technology.

Aemetis India to deliver $103 million worth of biodiesel to OMC by 2024

Aemetis Inc., a renewable natural gas and renewable fuels company specialising in low and negative carbon intensity products, today announced that its Indian subsidiary, Universal Biofuels, has successfully delivered $103 million worth of biodiesel to three state-owned oil marketing companies (OMCs) under a cost-plus supply agreement, which ended on 9 September 2024 ending on 30 September 2024 under cost-plus supply agreements.

Aemetis recently received an initial $58 million of new quota from OMC to supply biodiesel in the current marketing year ending 30 September 2025 and has been producing biodiesel with deliveries scheduled to begin this month.OMC released the first biodiesel delivery quota for the year in late November 2024 and delivery pricing will be based on a cost-plus pricing formula. In the previous supply year ending 30 September 2024, OMC issued multiple solicitations and expects to issue multiple solicitations again in the current year.

During the most recent biodiesel plant upgrade and maintenance cycle, Universal Biofuels significantly expanded the production capacity of its proprietary process, which produces biodiesel from wastes and by-products, which Universal Biofuels utilises to produce biofuels that are less carbon-intensive and significantly lower in cost.

STX Group Acquires Feedstock Trader to Expand Biofuels Business

STX Group announced on 3 December the acquisition of Marine Olie, a leading trader of waste-based advanced feedstocks.

STX Group said the strategic acquisition strengthens its position in the biofuels value chain and supports the company’s vision to become a leading global trader in the integrated feedstock-to-fuel-to-ticket market.

Marine Olie’s experience in fats and oils polymerisation, blending and optimisation in the Amsterdam-Rotterdam-Antwerp region, as well as its strategic infrastructure position, will be combined with STX Group’s broader environmental market footprint, regulatory expertise and access to capital.

Invests $1.2bn in methanol plant, serves biodiesel industry

The Indonesian government plans to invest $1.2 billion in a methanol plant to serve the biodiesel industry.

Currently, about 80 per cent of methanol consumption comes from imports. The 800,000 metric tonne plant will be located in East Java.

Demand for methanol will continue to rise as the government continues to increase biodiesel blending requirements. By increasing the biodiesel blend to 50 per cent, the country will be able to meet its own diesel needs without the need for imports.

Australia urges governments to urgently develop national biofuel feedstock strategies

The Australian Sugar Council (ASMC) recently called on governments to urgently develop a national biofuel feedstock strategy to boost the local biofuel industry and contribute to economic growth.

ASMC CEO Ash Salardini said ASMC has been advocating for this feedstock strategy since early 2024. He emphasised that sugar manufacturers could be at the heart of Australia’s future biofuels industry by producing bioethanol and other biofuel feedstocks. However, some of the current plans run counter to this goal, Salardini noted, ‘The currently proposed alcohol-to-fuel Sustainable Aviation Fuel (SAF) plant will not use any Australian feedstock, but will instead rely on bioethanol imports from places such as Brazil.’

The sugar industry has significant potential for biofuel development. Not only can sugarcane be processed into products such as bioethanol, but its by-product, bagasse, can also be converted into biofuels. The report states that by utilising these resources wisely, Australia’s sugar industry could meet approximately 8%** of the demand in the **domestic aviation fuel market. This fact highlights the need for a local feedstock supply chain.

ASMC has called on the government to establish a steering group of key feedstock suppliers to provide advice on feedstock supply and take steps to build a stable domestic supply chain.Salardini further stated, ‘We expect the Federal Government and the Queensland Government to really drive the implementation of this feedstock strategy, as they too want to see the Australian biofuels industry the economic uplift that the Australian biofuels industry will bring.’

The report also points out that only through a well-developed feedstock strategy and domestic supply chain will it be possible to reduce reliance on imported feedstocks, realise the full potential of Australia’s local resources, and drive the country’s biofuels industry into the long term.

Salardini concluded by emphasising that biofuels are at the heart of the energy transition, and that developing a national biofuels feedstock strategy will help Australia to capture a greater share of the international market in this area, while contributing to the green transformation and sustainable growth of the domestic economy.

Used cooking oil(UCO) market to reach $10.9 billion by 2032

The used cooking oil market is expected to be valued at over US$10.9 billion by 2032, says a report by Global Market Insights.

‘The market is expanding due to growing demand for sustainable solutions, with biodiesel production being one of the major applications. As an environmentally friendly energy source, biodiesel made from used cooking oil helps reduce waste and supports recycling. In addition to biodiesel, used cooking oil is increasingly being used in animal feed, cosmetics and various industrial applications,’ the report states.

The report states that the used cooking oil market will be valued at $2.7 billion in 2023 and is expected to grow at a CAGR of 5.9 per cent through 2032.

The report adds, ‘The used cooking oil market in China will be valued at USD 2.2 billion in 2023 and is expected to grow at a CAGR of 5.7 per cent by 2032.’

China’s first shipment of RSPO Certified Sustainable Palm Oil (CSPO) arrives at Shanghai port

China’s sustainable palm oil market has achieved a major milestone with the arrival of the first shipment of RSPO Certified Sustainable Palm Oil (CSPO) at the port of Shanghai. The ground-breaking shipment was led by Asia’s top dairy brand and global industry leader, Inner Mongolia Yili Industrial Group (Yili Group), in partnership with China’s largest palm oil trader and member of Fung Yih Group’s RSPO Group, Yihai Jiali Jinlongyu Holding Company Limited (Yihai Jiali).

The shipment, comprising 750 tonnes of certified sustainable palm oil, is Yili’s first palm oil purchase for the 2024-2025 period. It is certified under the Identity Preserved (IP) supply chain model, which ensures that certified palm oil is kept separate from conventional supply throughout the supply chain, thus ensuring traceability and sustainability. This delivery follows the RSPO-IP certification of Shanghai Kerry Food Industry, a subsidiary of Fung Yick, in August 2024, making it the first mill in China to achieve this certification.

RFA discusses importing UCO feedstock with CARB

The Renewable Fuels Association this week responded to a request for information from the California Air Resources Board urging them to do more to ensure the integrity of imported waste cooking oil (UCO) and tallow in order to produce biomass-based diesel in accordance with the state’s Low Carbon Fuel Standard, according to a report on EnergyAgwired.com.

The RFA noted that according to CARB data on California’s fuel consumption, the use of biomass-based diesel (BBD) produced from UCO doubles and the use of BBD produced from tallow triples from 2019 to 2023, and that some in the marketplace believe there may be questions about the source and composition of these feedstocks.

Many biofuels market participants and other observers are concerned about the legality of importing ‘waste’ feedstocks and question whether some UCOs contain palm oil and/or other mislabelled fats, oils and greases,’ said Scott Richman, RFA’s chief economist.

Prohibition of the use of taxpayers’ money to subsidise the use of biofuels produced by imported UCOs

U.S. Senator Sherrod Brown (D-Ohio) has announced the introduction of a new bipartisan bill that would prohibit the use of taxpayer money to subsidise biofuels produced using imported foreign feedstocks, such as waste cooking oil from China and ethanol from Brazil.

The bill would also extend the 45Z Clean Fuel Production Credit. 45Z Clean Fuel Production Credits were passed as part of the Inflation Reduction Act to make the U.S. more energy independent and to stimulate the production of biofuels using U.S.-produced feedstocks – opening up new markets for U.S. farmers.

In July, Brown called on Treasury Secretary Janet Yellen and the Biden administration to limit eligibility for the 45Z tax credit to renewable biofuels produced from domestic feedstocks. Brown’s bill would ensure that eligibility for the tax credit is limited to biofuels produced from domestic feedstocks.

Brown’s legislation would also extend the credit for 10 years, providing the U.S. ethanol industry with the time and financial incentives to build the infrastructure needed to produce sustainable jet fuel.