by Niamh Boyle (Biodiesel Magazine/Prima Markets) Prima Markets provides a comprehensive summary of the growing international demand for low carbon fuels, including U.S. policy drivers and waste feedstock consumption, along with a detailed overview of the international trade of low carbon feedstock.
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Policy changes in the U.S. and Europe are quickly regearing biodiesel demand toward a focus on the carbon emissions cuts which feedstocks can hit, triggering an upsurge in international interest in feedstocks able to deliver low carbon emissions. Demand growth for low carbon, particularly waste-based feedstocks in North America, is being driven independent of federal policymakers.
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California’s Low Carbon Fuel Standard carbon cap-and-trade scheme for the road transport fuels sector has pioneered the carbon counting approach now mushrooming across other western states and parts of Canada.
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The success of California’s program meanwhile has inspired the Canadian government to consider launching its own transport fuel carbon cap-and-trade program, which will supplement provincial carbon-cutting efforts, including Ontario’s high-GHG threshold for blended biofuels.
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Chinese exports of used cooking oil (UCO) climbed almost 200 percent to more than 176,000 tons in the first eight months of this year, with two-thirds shipped to the EU.
A hefty flow of UCO, corn oil and other feedstocks, such as fish and tall oils, has been scheduled to ship to Europe from the U.S. this year. European buyers continue to seek fresh supply from Asia, North Africa and South America.
U.S. exports of corn oil to Europe have breached 100,000 tons so far this year, according to shipping data collated by Prima Markets. Strong overseas demand for U.S. yellow grease into waste-dominated biofuels markets such as the U.K. has been constrained by falling U.S. domestic supply, driving U.S. prices higher.
While domestic tallow consumption as a biodiesel feedstock in the U.S. has been weaker YoY, California’s insatiable appetite for imported renewable diesel is ironically pulling the strings behind much of the recent export boom. Exports of inedible tallow skyrocketed 38 percent YoY through the first seven months of 2017. Most of this was shipped to feed renewable diesel production in Singapore, before being sent back to the U.S. West Coast. READ MORE