The rise of renewable diesel and its impact on the market
- New York City to run heavy vehicles on renewable diesel by June
- California uses biofuel for over half of its diesel consumption
- Renewable diesel supply has been soaring
- Domestic production of renewable diesel is increasing
Renewable diesel made from animal fats and plants is gaining traction as a fuel source for heavy vehicles. New York City plans to transition its garbage trucks and ambulances to renewable diesel by June, showing their commitment to the fuel despite its higher cost. California has already embraced biofuel, with over half of its diesel consumption coming from renewable sources. The supply of renewable diesel has been rapidly increasing, with U.S. plants projected to produce three billion gallons annually by 2023. However, this surge in supply has outpaced demand, leading to lower margins and share prices for biofuel producers. Despite this, there is hope that the market for renewable jet fuel will develop, especially if California accelerates its carbon reduction efforts.
Public Companies: PBF Energy (PBF), Neste (NESTE), Darling Ingredients (DAR), Marathon Petroleum (MPC)
Private Companies: undefined
Key People: Matthew Blair (Tudor Pickering Holt’s Analyst)
Factuality Level: 7
Justification: The article provides information about the use of renewable diesel in trucks on both coasts of the US, specifically in New York City and California. It mentions the cost of renewable diesel compared to regular diesel and the success of California’s low-carbon fuel standard. It also discusses the increase in renewable diesel supply and the potential for a new market in renewable jet fuel. The information provided seems to be factual and supported by sources.
Noise Level: 7
Justification: The article provides information on the use of renewable diesel in New York City and California, as well as the growth of renewable diesel production. It includes data and examples to support its claims. However, it lacks a thoughtful analysis of long-term trends or antifragility, and does not provide actionable insights or solutions.
Financial Relevance: Yes
Financial Markets Impacted: Renewable diesel producers like Darling Ingredients and Neste
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the use of renewable diesel in heavy vehicles in New York City and California. It also mentions the increase in renewable diesel supply and its impact on biofuel producers. While there is no mention of an extreme event, the information provided is relevant to financial markets and companies in the renewable energy sector.
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