At the 2024 ADI Forum, Mike Reed, CEO, Renewable Biofuels, and Chris Efird, CEO, NXTClean Fuels, joined Panuswee Dwivedi, Project Manager, ADI Analytics. They participated during the fuels and refining panel. The conversion of existing U.S. oil refineries to produce biofuels like renewable diesel (RD) and sustainable aviation fuel (SAF) was significantly slowing the growth of new, traditional refinery capacity. This trend, coupled with maintenance delays, had led to slower overall U.S. refining growth. Meanwhile, exports continue to rise.
The biofuels market faced complexities due to the Renewable Fuel Standard (RFS) and Low Carbon Fuel Standard (LCFS). Additionally, volatile RIN prices contributed to market challenges. The panelists emphasized that the future of RD and SAF heavily relies on consistent government policy support and incentives. Their production costs are currently much higher than traditional fuels. Concerns were also raised about market volatility stemming from misaligned regulatory timelines. This highlights the critical need for stable, long-term policies to drive investment in these emerging industries.
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ADI is a prestigious, boutique consulting firm specializing in oil and gas, energy transition, and chemicals since 2009. We bring deep expertise in a broad range of markets where we support Fortune 500, mid-sized and early-stage companies, and investors with consulting services, research reports, and data and analytics, with the goal of delivering actionable outcomes to help our clients achieve tangible results.
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