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US accelerates global Renewable Diesel feedstock imports

Pace of US imports of alternative waste oils for Renewable diesel is accelerating with Brazilian tallow now joining the ranks of Used Cooking Oil from China. There has been no deceleration of imports reflecting healthy demand in US. This writer does not foresee any decelaration as US moves from a blender credit to a producer credit by Jan1. We can also discern a strong preference for Renewable Diesel/HVO instead of conventional Biodiesel in US. The economics of Renewable diesel remain supportive under IRA and increasing additions of new EPA pathways like Carinata oil and Camelina oil are increasing the diversity of feedstocks. The key question for the global biodiesel/HVO industry is how to reconcile the incredible market draw of the US Renewable diesel sector against the Renewable Energy Directive in EU which keeps losing both feedstock diversity and pricing power. This is happening in real time and this year.

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