Renewable Diesel ("RD") is produced/refined using natural fats, vegetable oils (such as Palm and Soybean) and animal fats as the processing feedstock versus petroleum diesel or Biodiesel.
Biodiesel is vastly different in its processing methods due to its oxygenation process versus a hydrogenation process used for RD.
The oxygenation process used to make Biodiesel causes the fuel to be more unstable, freeze in cold weather, separate while in storage, and has a higher emission level than RD.
RD, once hydrogenated, contains very similar chemical characteristics as petroleum diesel and, therefore, can be blended with petroleum diesel to produce a stable, cleaner burning diesel.
RD can be easily pipeline shipped and stored by like other transportation fuels, whereas Biodiesel cannot.
GROWING DEMAND
The growing global emphasis on lower emissions is creating a rapidly growing market and demand for Renewable Diesel.
Significant investment capital has been earmarked for ESG investing initiatives which is ideally suited for Renewal Diesel projects.
Global demand is anticipated to exceed 6.8 billion gallons annually by 2025 and could continue to grow as jet fuel demand grows also.
More states are implementing "Lower Carbon Standards" that could further accelerate the growth curve in RD demand.
There are significant financial incentives to producers of RD currently from both Federal and State Government programs such as;
Renewable Fuel Standard ("RFS"),
the Low Carbon Fuel Standard ("LCFS")
Blender's Tax Credit ("BTC").
These incentives are generating significant market interest from a number of current refiners and greenfield developers.
EOR ENERGY EXPERTISE
EOR and its engineers are very experienced in the refining process and with the technology required to produce Renewable Diesel and other refined petroleum products.
The Company is focused on a number of opportunities in the US for the development and operation of greenfield and/or co-processing facilities to produce RD.
The co-processing facilities can be constructed either inside (“ISBL”) or just outside (“OSBL”) of an existing petroleum refinery.
Market opportunities also exist to convert an existing or shuddered petroleum refinery into a facility that would produce 100% Renewable Diesel.