ADI provided a comprehensive analysis of key policies influencing biofuel and feedstock markets in Canada and the US for an institutional investor. This analysis focused on understanding how these policies generate revenue streams for ethanol, biodiesel (BD), renewable diesel (RD), and sustainable aviation fuel (SAF). Key deliverables included:
- Market Dynamics: A clear picture of how policy frameworks shape and influence the biofuel and feedstock markets in both Canada and the United States.
- Revenue Stream Breakdown: A detailed understanding of revenue generation streams for different biofuels. This included:
- Credit Generation: Analysis of credit generation based on the biofuel product’s carbon intensity (CI) and its ability to stack credits from multiple programs.
- Policy Incentives: Examination of how policy design incentivizes specific feedstocks and production pathways, ultimately influencing product flows and credit prices.
- Policy Interaction and Market Impact: Insights into how interactions between different policies affect product flows and credit pricing within the biofuel market.
- Scenario Modeling: A comprehensive scenario analysis based on potential changes in macroeconomic conditions and policy landscapes.
- Carbon Intensity Analysis: An in-depth analysis of CI values for various feedstocks and biofuels under different policy scenarios. This analysis provided the investor with insights into how policy changes could impact the relative attractiveness of different feedstock and production options.
