Now is the Time to Start Conversations About Next Year’s Biodiesel Supply

Renewable liquid fuel dealers require a reliable, year-round supply of biodiesel

Renewable liquid fuel dealers require a reliable, year-round supply of biodiesel and should look to providers and producers early to reserve the gallons that will be needed during heating season, protect pricing and ensure delivery of the highest quality product.

Now is the time to start a conversation with your fuel provider to begin securing next year’s biodiesel supply. Chevron Renewable Energy Group’s Jason Lawrence, Senior Business Development Manager, defines some important reasons why it’s advantageous to start discussions early and to speak with suppliers having strong partnerships, strategic feedstock planning and stringent quality standards.

Supply Assurance

With 11 biomass-based diesel plants around the world and facilities that aren’t limited to a single feedstock source or type, there is always a consistent supply of Chevron Renewable Energy Group’s lower carbon fuels.

“Waiting to order your fuel can affect the probability of getting the products your customers want,” says Lawrence. “Smaller producers and providers of better-quality products alike may sell out of large volumes of fuels early.”

“We have a diverse footprint of facilities with a variety of advantageous logistics for both feedstock and product distribution. Our locations can be served by rail, truck, barge and large vessel,” Lawrence said.

Strong feedstock partnerships also contribute to supply assurance. In 2022, Chevron Renewable Energy Group utilized more than 15 different types of feedstocks from more than 100 suppliers across the globe. Sixty-eight percent of its suppliers have been partners for 10 years or longer. The company works to source feedstocks through long-term contracts, typically greater than 12 months.

Chevron Renewable Energy Group’s strategy for purchasing feedstocks in advance of capacity expansion is critical for manufacturing efficiency and increased production. Chevron Renewable Energy Group has been ramping up feedstock purchasing ahead of a capacity expansion and improvement project for the Geismar, Louisiana biorefinery that will increase production capacity to an estimated 340 million gallons per year.

Industry-Leading Quality

Quality is more important than ever as biodiesel blended fuels evolve from B2 to B50 or even B100. Within these higher blends, the purity of the biodiesel becomes the defining characteristic of the delivered fuel.

Chevron Renewable Energy Group has been an industry leader for more than 25 years. The company goes beyond ASTM standards by participating in the BQ-9000® program as a fuel producer and marketer. BQ-9000® combines ASTM specs with additional quality assurance steps on biodiesel production, distribution and storage. These more stringent standards produce biodiesel with cetane numbers typically above 50, well above the 47 required by the ASTM for biodiesel.

A key factor in Chevron Renewable Energy Group’s fuel quality is its proprietary pretreatment process, in which the feedstocks used to create biodiesel are refined before actual biodiesel production begins. The pretreatment process is what enables the company’s unique feedstock flexibility, as even lower-cost feedstocks with higher levels of contaminants are refined to produce a higher quality, lower carbon product.

“Additionally, we are also broadening our lower carbon intensity feedstock sources to supply our German pre-treatment expansion project. The ability to be nimble and change feedstocks is key to a consistent supply of higher-quality fuels. We are investing significant time and money into feedstock research, looking at how we can optimize our current feedstocks and what novel feedstocks
can be added to the feedstock pool,” Lawrence said.

Feedstock flexibility offers Chevron Renewable Energy Group customers more predictable pricing and availability, lower emissions and custom feedstock blends to capture specific properties such as lower cloud points or higher cetane numbers.

“You can depend on us to have a consistent supply of high-performing, lower carbon biofuels that meets and, in some cases, exceeds ASTM standards. Our finished fuel stands out in the industry due to our feedstock knowledge, flexibility, optimization and industry-leading quality standards,” Lawrence said.

Choosing the right fuel and product specifications can be challenging. All Chevron Renewable Energy Group bio-refineries have on-site labs to test the quality of the incoming and outgoing
materials. Working with the Technical Services team, the company can provide fuel sample testing, filter analysis and technical advice on storing, handling and blending fuel.

As with all products – including other types of fuel – there are differences between manufacturers. Biodiesel wholesalers and retailers should secure the highest quality and most consistent supply early, by contacting Jason Lawrence at Chevron Renewable Energy Group, (717) 989-1313 or jason.lawrence@chevron.com.

BQ-9000^® is a trademark of the Clean Fuels Alliance. 

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