Industry: Biofuels

The COVID-19 pandemic severely impacted the global refining sector, causing dramatic fuel demand cuts, especially in transportation, which led to oversupply and plummeting margins. In response, refiners worldwide reduced utilization and altered product yields. They also slashed capital spending, deferred projects, and even shut down or converted facilities. While global fuel demand remains subdued with […]

In the December 2020 edition of the ADI chemicals newsletter, we covered private equity’s chemical industry outlook post-COVID-19, alongside signs of global economic recovery despite a projected 2020 GDP drop. The industry saw actions on plastic pollution, a LyondellBasell acquisition, a Formosa project pause, biofuel and recycling developments, and various international projects and business activities.

U.S. refiners and majors have announced several closures of refineries.

Operators’ pursuit of better ESG outcomes provides a great opportunity for industrials.

The U.S. renewable diesel demand is currently fulfilled by limited domestic production (~26,000 bpd) and increasing imports from Singapore. To address this supply gap, U.S. refiners plan to increase their renewable diesel production capacity by approximately 300% (228,000 bpd) over the next five years, primarily driven by California’s Low Carbon Fuel Standard (LCFS).

Will reshaping Latin American fuel markets threaten U.S. refined product exports?

Decreased refinery utilization in Latin America over the last decade, falling by nearly 30% to just over 50% of capacity, has been a key factor driving refined product imports. Despite planned investments in new capacity, regional economic and political challenges have largely hindered their realization.

Environmental, social, and governance (ESG) issues are all the rage in oil & gas and energy markets today. ADI has compiled the top 10 ESG trends in energy based on our research and consulting work.

In 2019, U.S. renewable diesel capacity was around 26,000 barrels per day (Exhibit 1) but U.S. refiners are growing this capacity by more than twice with several new renewable diesel capital project announcements. U.S. renewable diesel capacity is expected to grow to 171,000 barrels per day over the next five years with several announced plants […]

At the 2020 ADI Forum, Neville Fernandes, Manager of Renewable Jet at Neste, discussed the burgeoning growth in renewable diesel investments driven by the global push for climate action. Governments were implementing stricter emissions policies and introducing new incentives, leading to rapid expansion in the renewable fuel market. Key drivers included the Blender’s Tax Credit, […]

Interest in hydrogen as a fuel and source of energy is surging again.

ADI has launched a monthly subscription service covering the North American downstream market, including insights on crude oil to chemicals. Our research service provides a monthly report comprising two parts. Our goal is to provide research, market intelligence, analytics, and insights to help subscribers build a strategic, forward-looking view of downstream markets, operations, assets, and […]