Refiners Turn to Bio-Based Jet Fuel to Cushion Green-Diesel Pain
Valero Energy Corp., Phillips 66, and Calumet Specialty Products Partners LP are modifying renewable diesel facilities to produce sustainable aviation fuel (SAF) amidst declining returns. SAF, derived from sources like cooking grease, is significantly costlier to produce but benefits from government incentives aimed at decarbonizing aviation. These efforts are expected to boost SAF profitability, making it a viable option despite initial production challenges, as reported by BloombergNEF.
Some US fuel makers are overhauling facilities so they can produce so-called sustainable aviation fuel amid slumping returns from renewable diesel.
Valero Energy Corp., Phillips 66 and Calumet Specialty Products Partners LP are among producers that have retrofitted renewable diesel plants to also make SAF — jet fuel derived from things like cooking grease. Government incentives aimed at decarbonizing the aviation industry are expected to help improve returns on SAF, which is markedly more expensive to produce, according to BloombergNEF.
Source Link: https://www.bloomberg.com/news/articles/2024-07-03/refiners-turn-to-bio-based-jet-fuel-to-cushion-green-diesel-pain
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