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Person looking through binoculars in an autumn forest with vibrant fall colors reflected in both lenses, symbolizing focus on Oregon’s diesel and CO2 credit market conditions.
2025 Fall Diesel Outlook for the Oregon Market 1024 1024 Star Oilco

2025 Fall Diesel Outlook for the Oregon Market

What market forces are impacting the Oregon diesel outlook?

The US market is short diesel in storage while the Oregon market is short CO2 credits causing a unique market condition as we head into fall.

Diesel prices in the Pacific Northwest have not been following National trends for diesel.  The west coast is paying a premium compared to other nearby states.  Diesel in Oregon is significantly higher than the national average.  More to the point, the carbon credits associated with biodiesel and renewable diesel in Oregon are trading at recent record high prices. Higher than California’s CO2 credit prices. What’s going on?

Well for once it isn’t the price of crude oil causing this, or the amount of biofuels. Its all about todays Oregon diesel and carbon markets.  The story starts a few weeks before Memorial day.

Memorial day is often cited as the kick off to the driving season.  It also is when we usually see construction and trucking pick up with the summer weather.  A few weeks before Memorial day the Olympic pipeline went down unexpectedly.  The Olympic pipeline serves Portland and Eugene with their diesel and gasoline fuels from the refineries in northwest Washington state.

That pipeline had an unexpected outage.  Those happen for plenty of reasons usually safety checks or repairs. When the pipeline went down the market was notified it would probably be a week and open again the Monday before memorial day.  That Monday, the Monday before one of the bigger fuel weekends of the year, came and notice went out the pipeline would still be down for another week.

At that moment supply was already short for gas and diesel. Especially diesel.  The Portland and Eugene market saw diesel like a dollar cheaper in states like Idaho, Utah and others. So guess where diesel started flowing from? Markets responded as the bigger players on the ground in Oregon started moving diesel from those states.  Your local truck stops, gas stations, and cardlocks didn’t run out of fuel in several parts of Oregon because of these efforts.

In a US diesel market that was already tight for diesel supply, Portland, Oregon had an event that made it even tighter demanding diesel from around the region. Markets responded sending higher price offers to bring diesel into Oregon. Source is US EIA.

Oregon does not have any petroleum refineries or even biofuel plants.  It can only be supplied by pipeline, barge, rail or truck from outside the state.  When the pipeline came back online quite a bit of outside diesel had flowed into the state from nontraditional sources by rail and truck.

The people who moved that diesel are regulated in Oregon with two programs for CO2 emissions.  One is called the Clean Fuels Program which requires anyone importing diesel into Oregon to come up with a CO2 reductions by either blending low carbon biofuels or buying CO2 credits from others that use those fuels in the state.  Oregon also has a Cap and Invest program which only allows so much fossil fuel to be sold inside Oregon in a calendar year.  Oregon caps the total market for fossil fuels sold at retail stations as part of it’s carbon reducing strategy.

Guess what happens when a bunch of suppliers start bringing in gas and diesel to meet the market need?  They have to come up with Carbon credits and allowances to meet those carbon reduction programs for liquid fuels.  When unexpected volumes of diesel get imported into Oregon the CO2 market dynamics change.

For diesel, they need to start blending biofuels such as renewable diesel and biodiesel.  So since that Memorial Day pipeline outage the people who imported diesel from other states need CO2 credits under Oregon Clean Fuels Program as well as to ensure they done sell to many additional gallons of fossil fuel diesel to exceed the allowance of Oregon’s cap and invest regime.

Therefore CO2 credits are high, people are trying to blend more biofuels to catch up to the unexpected volumes of diesel they moved into Oregon.  Prices are higher than the rest of the US for diesel as a hangover to the supply disruption.

Upside for the first summer in a few years there is plenty of Renewable Diesel in the Portland, Oregon market as the CO2 credit prices are higher than California and the diesel prices are also high to help.  In the last month we have seen a huge amount of Renewable Diesel show up into the terminals in Portland.  So hopefully we will see lower prices heading into fall as all this works itself out.  As we pass by Labor Day the market cost of diesel should normalize and return to a much more affordable price.

The one downside of high diesel prices is that it makes Renewable Diesel the same price as fossil diesel.  If you want to try it, now is a good time where you can get it affordably and field test it for results with your fleet.  Want to see how it performs in reducing truck regens, EGR services, and see if fuel economy improves with a cleaner burning synthetic diesel running in your fleet.  This fall is a good time to experiment with it.

If you want to try Renewable Diesel in your fleet.  Star Oilco has it immediately available.  Please reach out to give it a try at either our Cardlock locations, with Mobile Onsite Refueling in your yard, or a Loaner Bulk Tank trial of the fuel in a few trucks.

Star Oilco has Renewable Diesel seven days a week for your fleet: Mobile Onsite Fueling, Cardlock, and Bulk Delivery.
Call us at 503-283-1256 or email at OrderDesk@StarOilco.net.

Renewable Diesel in Oregon

Yellow diesel backup generator for emergency power
Backup Generator’s – Why Fuel Quality Matters. 1024 683 Star Oilco

Backup Generator’s – Why Fuel Quality Matters.

    Emergency Back Up Generator Diesel Fuel Quality

The fuel in your generator is the single most overlooked item in maintaining a back up generator.  Be prepared and know your back up generator diesel fuel quality is ready with these best practices.

When the power goes out, don’t let a decade old tank of diesel be your weak link.

 

Diesel Generator Fueling Service

As a provider of back up generator fueling services we know how critical fuel is in an emergency.

Back up generators are everywhere when you start looking for them.  Rarely needed but when a storm or disaster strikes their failure to fire will be extremely conspicuous. In the Pacific Northwest where resilience planning around a major subduction zone earthquake is a monthly subject of talk.  Back up diesel will be the only immediately power source after a quake.  Diesel generators are taking center stage for emergency preparedness, placing those who maintain them in some high level policy discussions.

Avoid a double emergency when the back up power isn’t there for your need by focusing on the diesel fuel quality.

The worst case scenario for fuel quality is water getting into your diesel fuel reservoir as well as biological growth occurring in that water logged diesel. If water is present in diesel, and that diesel is in a warm dark place, bacteria will start growing in your tank. So first preventive step is watch for water.  The most likely problem with fuel you will see is the fuel aging and degrading in place over years of not being used.  That can be addressed with your routine maintenance on the tank.

CIM-TEK water absorber

NOTE: To get a small amount of water or to ensure a dryer tank of fuel, CIM TEK makes a Tank Dryer which absorbs a small amount of water in a tank. Handy similar to adding a desiccant into a closet with a slight condensation issue. 

Back up power generator diesel fuel quality.

The big rule for storing back up generator fuel is to make sure the diesel you use is clean and dry.

First ensure you are testing the generator by running it once a month.  Move fuel through the system and ensure the generator is starting right up. Run the generator for a while to use up fuel and be prepared to order a regular top off when you get below 3/4th of a tank. When checking the fluids on the generator prior to start up see if the fuel filter has a visual transparent bottom where you can see what the fuel looks like there. If it looks like dirty fuel or there is evidence of water take notice.  After cycling the generator take a peek and make sure the fuel it’s pulling into the generator is bright (not dark and degraded).  If you are seeing any water (even a small drop) that is an indication of real concerns.

If you are using up half a tank a year and adding to it, the fuel quality will usually stay within specification.  If you have worries the easiest way is to just start over. With older generators sometimes it’s a good idea to just evacuate the tank (empty all the older diesel fuel) and replace it with fresh diesel treated and stabilized for long term storage.

Most back up generators are seeing routine annual maintenance where the mechanical needs of the equipment are walked through. If this is occurring ask for a bottom sample from the back up generators fuel tank. Also ask to see what the fuel in the bottom of the fuel filter (assuming they are changing that) would give an indication if problems might exist deep in the fuel tank.

Back Up Diesel Generator Fuel Service

Sampling and Onsite Testing of Fuel from Generator Diesel Tank:

  1. Pull sample from tank bottom
    1. Use a professional “Bacon-Bomb Sampler” (google it to see one) or a small fuel transfer pump available at any auto parts store.
  2. Visually inspect it by swirling it in a beaker or mason jar.
    • Look for water and dirt fall out as you swirl.  If you see a few drops of water form you’ve got a water problem. If you are seeing coffee ground type material in the fuel, that’s biological growth. If an algal or gunk type slime appears, that’s also biological growth.
    • If clear like cranberry juice and bright – your fuel is in good shape.  If a darker cherry color yet still clear, your fuel is aging and you should consider swapping or burning fuel off in the next year.
  3. If fuel is dark in color (showing that it is aging in the tank) you can send that sample to a lab to test it. You want to ensure you are confirming the following:
    • Oxidation Stability (or Accelerated Stability)
    • Water Content in PPM (under 50 PPM is what you want, under 100 PPM is not uncommon, and over 100 PPM there is probably water in the fuel and you want to pursue remedial action.)
    • Make sure the fuel testing lab you are using (your current fuel vendor should have a recommendation or do it for free for you) is checking for:
      • oxidative stability (if it’s aging out of specification),
      • biological growth (if bugs are growing in it),
      • water content (indicating a puddle someplace in the tank causing higher water content in the fuel) and,
      • dirt content of the fuel (if there is dirt, there is probably biological growth or some other problem).
  4. Set aside sample in a warm dark place for a month and check it for biological growth occurring which will confirm if you have fuel growing inside the tank.
    • How to test diesel for biological growth In-House:
      • Take your sample that appears to be in great condition and set it aside in a warm dark place for a month (day light kills most biological growth in fuel, though day light ages your diesel in other ways).
      • When you come back to look at the sample, if a film or layer of darker color is appearing in the fuel, this is biological growth occurring.
      • If you see nothing and want to experiment further, add a slight amount of water to this sample, shake it up, and put it back in a warm dark place.
      • When you check back if there is a a new layer of darker color on the surface of where the water contacts the fuel, that’s what grows in your tank.
      • If nothing grows, your fuel is safely stabilized for storage this year. Even if water is finding its way into your fuel tank, the fuel is safe and will be ready to start.
        • NOTE: Do not leave water in your tank, even if the fuel looks good. Eventually it will be a major problem and something will grow. If you are putting biocide in your tank regularly and their is an environment for growth, something resistant to that biocide will take root and you WILL NOT be able to get it out of the tank without serious effort.

NOTE: If you are curious to see a fuel lab analysis of the diesel this is an example.  This is a lab analysis from Hydrotex, Star Oilco’s premium diesel additive provider.  They are very supportive in testing everything we send them for quality assurance. 

 

Do you have questions about generator diesel fuel storage?

If you have questions about fuel storage, Star Oilco has answers.  Star Oilco does not do tank cleaning, we still will help you figure out what you need to do in order to have the result you need.

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For more on Diesel Fuel Quality Assurance please see these other Star Oilco articles:

Desiccant breathers, dry diesel, and keeping your diesel fuel clean.

Every question Star Oilco has been asked about dyed diesel.

Keep and make your diesel fuel cleaner. 

Bioguard Plus 6, Kill and prevent biological growth in your diesel fuel storage tank.

 

Close-up splash of diesel fuel in liquid form
Fuel Filtration-Clogged Filters-Cleaning Them Up. 1024 678 Star Oilco

Fuel Filtration-Clogged Filters-Cleaning Them Up.

Has your fleet experienced black diesel fuel or clogged fuel filters?  
Do you wonder what makes diesel go bad or cause further issues?  

contaminated_diesel

In most cases, it’s water and dirt in the fuel leading to further degradation over time. If gone unchecked it will lead to mechanical failures in your fleet.

 

Donaldson Filter has a great educational video about the high stakes importance of aggressive filtering of your diesel prior to going into your fleet. Today aggressive filtering and ongoing quality assurance of your fuel is a must. Star Oilco calls this Precision Fuel Management and we offer it to all of our bulk fuel customers.

Precision Fuel Management is the ongoing improvement of your diesel fuel quality.

This is done by adding aggressive Donaldson filtration to the dispenser on your diesel tank or filtering fuel on Star Oilco’s Mobile Onsite trucks when wet hosing our customers). For bulk storage tanks, we include a Donaldson desiccant breather to the vent on your tank to scrub moisture from the air as it is pulled into your tank, as well as Hydrotex PowerKleen Premium Diesel Additive. In addition to these best practices Star Oilco will also sample your tank bottom, as well as take a representative sample out of your diesel nozzle and lab test this fuel according to the ULSD ASTM standard D975, as well as check for the ISO cleanliness level of your fuel. We test twice a year going into Summer and Winter to confirm if there is water on the bottom of your tank as well as any worries about dirt, biological growth, or any other recurring, but preventable fuel quality problems.

NOTE: ASTM D975 is the specification for ultra low sulfur diesel in the United States. ISO Cleanliness is a standard to check for microscopic dirt that can harm the performance of your engine systems long term if it’s getting past your engine filtration. 

https://staroilco.net/bulk-fuel/biofuels/precision-fuel-management/

Diesel technology has advanced a long way in the last decade to meet the extremely high emission standards of the EPA and CARB for diesel engines. What this advanced diesel tech means is that your engine has extremely high-operating fuel pressures and extremely tight tolerances for the fuel acceptable to the long term use of your engine.

What does this mean in a nutshell?

High operating fuel pressures and tight tolerances in the fuel rail mean dirt and water can destroy injectors and affect the operation of your fleet. These two contaminants (dirt and water) are the source of most other fuel-related problems and therefore your highest exposure to preventable maintenance cost. If you have experienced unexplained fuel filter spinning, failed injectors, and DPF maintenance that is more than normal, it may be fixable with Precision Fuel Management.

Precision Fuel Management is aggressive filtration at the fuel dispenser combined with PowerKleen Premium Diesel and a clean dry tank bottom that is sampled and tested regularly. If you want to look into cleaning up your bulk fuel, give Star Oil a call. Our first step is a complementary test of your fuel.

If you have an immediate concern about biological growth and long-term storage with your diesel, we recommend an alternative stopgap measure. Treat your fuel with Bioguard Plus 6 to kill the bugs growing in your diesel fuel.

Fill out the form to get a complementary diesel tank test for ASTM and ISO cleanliness of your fuel.

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Welcome to Oregon road sign on a forested highway
The Next Generation Of Diesel – Bio Diesel 1024 683 Star Oilco

The Next Generation Of Diesel – Bio Diesel

B99 and R99 Biofuels are the alternatives to petroleum diesel in Oregon

Oregon bans the sale of petroleum diesel, a rapid transition to biofuels such as renewable diesel and biodiesel are happening.

 

Oregon HB3305 explained

 

 

HB 3305 Petroleum Diesel ban

In Oregon, HB3305 is a House Bill proposed by Representative Karin Power outlaws the sales of petroleum diesel to the public for use in motor vehicles.  HB3305 quoted below:

“Prohibits retail dealer, nonretail dealer or wholesale dealer from selling petroleum diesel for use in motor vehicle on or after specified dates. Requires public improvement contract to require that motor vehicles be powered by fuel other than petroleum diesel. Prohibits public body from using petroleum diesel in motor vehicle under control of public body”

The full text of the current version of HB3305 can be seen here.

HB 3305 mandates non-petroleum diesel be the only legal fuel for sale to diesel powered motor vehicles in Oregon.

Star Oilco has customers ask about this proposal and how real it is?  In Oregon the focus on low CO2 fuels in the legislature is so consistent we can expect this to not go away.  Even if HB 3305 does not move this Legislative session, this will not be the last of biofuel mandates.  For this reason Star Oilco has been working to be ahead of the curve with non-petroleum diesel substitutes. Star Oilco has been selling B99 biodiesel since 2002 and renewable diesel since 2015.  If your fleet has an interest in learning more about low CO2 fuels or try these fuels, Star Oilco is ready to serve you with both R99 renewable diesel and B99 biodiesel.

News coverage of Oregon HB 3305 is below

The Center Square’s Oregon, whose coverage of this has been syndicated to many other online news organizations, lead with the headline: Bill in the Oregon Legislature would ban diesel fuel sales by end of decade.

CDL Life had this to say: The bill would begin to ban the sale of “petroleum” diesel by “non-retail dealers” as soon as 2024 in Clackamas, Washington or Multnomah counties and state-wide by 2027.

Landline as well has following the story: Oregon bill would ban petroleum diesel. Later in the article they add this to the background of HB 3305’s origin: Power said in a statement that her goal is to phase out petroleum-based diesel and replace it with renewable diesel. She says she introduced the bill on behalf of Titan Freight, a local trucking company she says has already transitioned to renewable diesel.

KXL covered this local news quoting Oregon State Representative Shelly Boshart-Davis, a legislator who owns a trucking company and actually buys quite a bit of petroleum diesel.

Lars Larson radio interviews Rep. Shelly Boshart-Davis about HB 3305.

KQEN news radio in Douglas County also covered it with the headline: GOP says supermajority declares war on working class.

The Wildcoast Compass covered the story quoting Rep.Vikki Breese-Iverson (R-Prineville): “There is absolutely no way we can implement this legislation in accordance to these timelines without extreme disruption to Oregonians’ daily lives and the obliteration of our economy as we know it,” 

Oregon Public Broadcasting covered HB 3305 a few days after the bill dropped which might be an indication it’s moving forward. From the story: One bill, House Bill 3305, would set a staggered timeline for ending sales of diesel in the state — first in the Portland area, then throughout Oregon. Its backers hope to spur widespread use of “renewable diesel,” a product with far lower emissions that can be used in any diesel engine. They say the fuel could be an important and near-instant way for the state to cut into greenhouse gas emissions while other technologies emerge.

The Banks Post covered HB 3305 as well with the headline: Diesel fuel under fire in Oregon legislature.

What HB 3305 means in the real world?

HB 3305 means the petroleum diesel used by any commercial vehicles operated on Oregon’s highways will be replaced with biofuels.

Biofuels will replace on-road petroleum diesel at all Oregon:

  • Retail gas stations
  • Trucks stops
  • Commercial cardlocks (Pacific Pride and CFN)
  • Privately owned bulk tanks
  • Mobile on-site fueling (wet hose fueling), and
  • All other bulk deliveries of diesel fuel. Star Oilco wanted to provide more background of what this law would mean for Oregon.  We hope this provides in depth information about what the options are for diesel fuels and a whole host of background information.  The news coverage so far fails to really provide this depth and background for those with concerns.  If you have questions, please do not hesitate to ask. Star Oilco seeks to be a neutral and accurate source of information.

Star Oilco sells renewable diesel in bulk and by our mobile on-site fueling service. It is worth mentioning from our first hand experience that users of it become raving fans.  Renewable diesel is a new fuel that many believe out performs petroleum diesel in every way. Many customers who have used it experienced improvements in horse power, fuel economy, and emission regeneration system performance.

Currently renewable diesel is in extreme high demand, limited production, and commands a high premium over petroleum diesel with few sources of supply.  Renewable diesel has some major backers in the trucking industry as well as OEMs.  As the availability of this next generation fuel grows, the number of plants manufacturing it expands, and it’s price comes down, this type of law may make far more sense.

If petroleum diesel is no longer legal for sale in Oregon, what does that mean diesel vehicles will use?

There are two immediately available diesel rated biofuels that can replace petroleum diesel.  These are two very different fuels. Renewable Diesel and Biodiesel have differences in their properties.  So please don’t confuse biodiesel and renewable diesel as the same fuels.

Biodiesel and Renewable Diesel are very different fuels.

Biodiesel is a proven and longtime available fuel in Oregon.   Biodiesel is not actually a hydrocarbon diesel though, it is a diesel like biofuel made from vegetable oil usually sold in a 5% to 20% blend with petroleum diesel. It is not recommended to run pure biodiesel in late model diesel engines if they have a particulate trap.  This differs from Renewable Diesel which is a next generation synthetic hydrocarbon diesel made from various feedstocks including vegetable oil.  It is actually diesel, it can be used as a pure drop in fuel without any blending with petroleum diesel.

What are non-petroleum diesel fuels?

Oregon HB 3305

Biodiesel or B99 (99% Biodiesel + 1% Petroleum Diesel)

Renewable Diesel or R99 (99% Renewable Diesel + 1% Petroleum Diesel)

Blends of Biodiesel and Renewable Diesel (branded REG UltraClean Diesel)

HB3305 allows for biofuels in replacement for diesel.  We assume that change would be from a current Oregon fuel mandates of B5 or R5 biofuel diesel blend to a B99 or R99 mandated fuel.  Oregon’s biofuel content law can be read at ORS 646.922 and we can assume this would change that to a 99% mandate. Why 99% instead of 100%, that is a good question relating to Federal regulation of the US diesel and gasoline markets.

 

Why does this require a 99% blend (B99/R99) instead of 100% biofuel?

The reason biodiesel and renewable diesel are sold at a 99% blend is because of Federal rules associated with how petroleum companies must handle these fuels.  For this fuel to be used under the US EPA’s Renewable Fuel Standard program biodiesel and renewable diesel must be blended at a minimum 1%.  When fuel is blended at 1% with diesel, the EPA enables it to generate a “Renewable Identification Number” or “RIN” which is regulated to ensure a minimum amount of biofuels is used in the stream of commerce for fuel in the United States.  This Federal program is separate and unrelated to any program in Oregon, though the law recognizes and seeks to align with the framework created by the EPA.

What are the fuels HB 3305 allows to be used by diesel motor vehicles?

The two fuels immediately available if are B99 Biodiesel and R99 Renewable Diesel.

Both of these fuels exist today but have their own drawbacks.  In a nutshell, B99 is not a drop in substitute for petroleum diesel.  It is recommended to be blended at 20% with petroleum diesel (NOTE: B99 biodiesel can be used in modern diesel with an up-fit kit provided by Optimus Technologies).  On the upside, biodiesel is plentiful and competitive with petroleum diesel in cost.  If HB 3305 passed though this plentiful fuel wouldn’t be a ready substitute beyond a 20% blend with renewable diesel or with mechanical changes to existing trucks.  Contrast this with  R99 renewable diesel as a drop in ready to go substitute for petroleum diesel.  It is ready to use without blending, but has the downside of being in short supply and at a cost premium above petroleum diesel.

If Oregon’s over 2,000,000 gallons of diesel usage a day (or 750+ million gallons a year) was mandated to renewable diesel no doubt that premium would probably exceed $2 a gallon over petroleum diesel given R99’s lack of ready additional supply.  This $5 a gallon presumes that Oregon would have to pay more for the existing renewable diesel supply finding it’s way to California with several dollars a gallon of value paid for it’s lower CO2 baseline value.  California has a Clean Fuel Standard and a CO2 Cap and Trade program which provide a monetary value for renewable diesel’s lower CO2 numbers.  Oregon has a Clean Fuel Program as well, but it’s program does not pay as much for low CO2 fuels as California, making low CO2 fuels such as renewable diesel more expensive in Oregon.

B99 Biodiesel in depth.

Blends of biodiesel below 20% are extremely common in Oregon.  All fuel must contain at least 5% biodiesel content and many retail outlets, cardlocks, and major truck stops commonly sell a 10% to 20% blend of biodiesel around the state.

Biodiesel is a diesel like fuel manufactured by a chemical reaction called transesterfication, typically from vegetable oil or recycled cooking oil.  It is made by a relatively simple process and biodiesel has been a proven fuel in use in Oregon for nearly twenty years.  Star Oilco started handling and selling biodiesel in 2002.  Prior to 2007, B99 was commonly used by many commercial fleets due to it’s huge reductions in tail pipe emissions.  Vehicles manufactured after 2007, are clean diesels.  The US EPA required new clean diesel emissions systems which are impressive in their ability to make modern diesel engines extremely clean, but they can only handle biodiesel blends below B20 or 20% biodiesel unless an upgraded system is added.

Today B99 is a possible fuel for a modern clean diesel fleet with an upgrade to existing vehicle fuel supply system.  Optimus Technologies has an approved technology to enable a modern diesel aftertreatment system to operate without problems on B99.   Star Oilco has purchased five of these systems and is currently fielding them in the Pacific NW.  We expect these systems to be mainstream in coming years, but just like Renewable Diesel the technology is newly available and scaling up.

For more information about biodiesel please see our biodiesel FAQ titled Every question Star Oilco has been asked about biodiesel.

If you are interested in using biodiesel in your fleet, you can contact Star Oilco with questions or if you want to start researching we highly recommend starting with this US Department of Energy handbook titled Biodiesel Use and Handling.

 

R99 Renewable Diesel in depth.

Renewable Diesel is a next generation biofuel made from fats, oils, and greases. It is not an alternative diesel, renewable diesel is a petroleum free hydrocarbon diesel fuel. It is diesel! Renewable diesel not only less than half the CO2 of diesel refined from petroleum fuel, but it is cleaner burning and has shown evidence of reducing the cost of maintenance in fleets using it. Renewable diesel is a profound technology which has the potential to use the lowest grade trap greases, sewer materials, rendering wastes, municipal garbage, and a host of other refuse products making them into this high performance, sustainable, low CO2 diesel.

There are two categories of technology that renewable diesel is made from.  Hydrogenation and Fischer Tropsch process.

Renewable Diesel from Hydrogenation or Hydrotreating

Hydrogenation derived renewable diesel is very similar in manufacture to modern petroleum diesel in that the molecules of a the feedstock is cracked and reformed in the presence of a catalyst to form a very specific series of hydrocarbon molecules.  These being diesel and propane range fuels. The feedstocks used by renewable diesel plants are vegetable oils and animal fats.

The hydrotreating plants providing renewable diesel to Oregon currently are Neste from a plant in Indonesia, Diamond Green (in a joint venture with Valero), Sinclair, and Renewable Energy Group. All of these plants are over subscribed and 100% of their production is being taken at a premium primarily by the California low CO2 fuels market.   There are several new renewable diesel plants under way though.  Holly Frontier, Marathon, CVR Energy, and Phillips 66 are converting existing petroleum refineries into renewable diesel plants.  This process costs billions of dollars, will take years to complete, and also will be likely destined for California’s low CO2 fuel market with smaller markets like Oregon being an afterthought.

Renewable Diesel from Fischer Tropsch process.

Currently there are a number of smaller demonstration facilities making renewable diesel from wood waste and other feedstocks.  The largest proposed project currently on the books is Illinois Clean Fuels which will be collocated with major CO2 capture facility making their product negative CO2.  Fischer Tropsch renewable diesel is expected to be the future of refining given it’s flexibility of feedstock.  It’s process enables the use of municipal garbage, agricultural waste, woody biomass, and other low value plentiful materials as feedstock.  Given that the United States is called by some the “Saudi Arabia of garbage” we have plenty of supply waiting for a higher and better use as low CO2 transportation fuel.  Illinois Clean Fuels has a great explanation of how Fischer Tropsch makes renewable diesel and jet fuels.

Where can you get Renewable Diesel in Oregon?

Star Oilco currently is selling R99 Renewable Diesel for commercial use.  We can deliver to fleets seeking it in bulk or mobile onsite delivery (wet hose R99 diesel service began in the Spring of 2021).  Call Star Oilco if you have an interest in Renewable Diesel for your fleet 503-283-1256.

If you have questions about renewable diesel, Star Oilco wants to provide answers.  Feel free to reach out if we do not have the answer we will research it.

For more information about renewable diesel please see our renewable diesel FAQ titled Every question Star Oilco has been asked about Renewable Diesel.

 

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Diesel Soaps: Identification And Negative Impact. 1024 768 Star Oilco

Diesel Soaps: Identification And Negative Impact.

Star Oilco answers: What are Diesel Soaps?

Cliff Burbrink, chemical technology specialist at Cummins Filtration, provides a layman’s definition of diesel soaps:

“Diesel soap is not very different chemically than the soap used to wash your hands. The main ingredient in a bar of soap is formed when lye reacts with fats or oils. Lye is sodium hydroxide.

Fats and oils contain fatty acids. When they react, they form sodium soaps. Diesel soaps are formed from acidic additives in the fuel [such as some corrosion inhibitors and lubricity improvers] reacting with trace amounts of sodium.”

 

Rick Chapman, Industry & OEM Liaison Manager, Innospec Fuel Specialties, adds that acids can be derived also from other sources:

“[Soaps] can also be formed from free fatty acids in biodiesel starting materials and carboxylic acids derived from oxidatively degraded fuel and/or biodiesel.”

 

From a layman’s point of view, then, the formation of diesel soaps is the result of metals, such as sodium, calcium and potassium (in the form of positively charged ions, or cations), reacting with various sources of acid in the fuel.

 

“When these two species [acidic compounds and cations (usually sodium)] come together, diesel soap can form,” says Chapman.

“There are a lot of other factors or variables that can play into it, of course, such as pH, solubility, mixing intensity and so forth—but this is the basis for it. Unfortunately, when these soaps form, assuming they are formed from additives, they make the corrosion inhibitor or lubricity improver inert, and the corrosion or lubricity protection provided by the additive is lost.”

 

 

 Diesel soaps

 

  1. Plug fuel filters
  2. Form injector deposits that lead to over-fueling
  3. Create Turbocharger problems
  4. Generate Oil dilution
  5. Cause Poor performance, and poor fuel economy

 

In a May 2013 report, “Case Study—Impact of Poor Diesel Fuel Quality on an Urban Fleet,” Cummins Filtration investigated problems with diesel engines in a New York City bus fleet.

Complaints ranged from an excessive number of turbocharger fault codes to smoke at start-up to fuel-injector failures. The investigation uncovered excessive soot deposits in the turbocharger, resulting from over-fueling, which was determined to be the result of fuel injectors sticking because of deposits that were “rich” in the metals of sodium and calcium.

Although injectors showed sign of scuffing—the result of hard particle contamination, which, says the report,

“is the greatest fuel quality concern for high-pressure/common-rail fuel systems, worldwide”

—investigators determined that scuffing was not the primary issue for the immediate problems the bus engines were exhibiting.

The culprits in this instance were “metal carboxylates” in the fuel, more commonly know as “diesel soaps.” The recommended fix for the problem was use of a fuel additive that could both clean the Injectors and minimize further deposits, coupled with much tighter filtration.

 

Another Bad Actor

 

 

 

Biofuel is manufactured by reacting a plant-derived fat or oil (usually soybeans in the United States) with an alcohol, using sodium hydroxide as a catalyst. An unwanted by-product of the process is glycerin.

Although most of the glycerin is washed out during the manufacturing process, regulations do allow 200 ppm to remain.

Biofuel usually is mixed with petroleum diesel in 5-, 10- or 20-percent concentrations to form biofuel blends, but even at these relatively low concentrations, enough glycerin remains to create filter-plugging problems when, under certain fuel moisture and temperatures conditions, it becomes a solid and drops out of solution.

To help counteract glycerin’s effects, Jim Peterson, sales manager for Donaldson’s Hydraulics and Clean Solutions Group, suggests these measures:

  • Filter fuel on the dispensing side of the bulk tank and use proper on-machine filters
  • Keep fuel dry with proper tank flushing and proper breathers
  • If possible, moderate the temperature of stored fuel above the glycerin dropout level
  • Turn over fuel as quickly as possible
  • Keep fuel infrastructure as free from particulate contamination as possible
  • Ask OEMs about using detergent additives to keep glycerin in solution, both in equipment and bulk storage

 

Filtration and Additives

 

 

 

As noted before, the contamination of diesel fuel with soaps is not as prevalent, at least in many fleets, as other sources of fuel contamination.

These other fuel contaminates include hard particulates, increased water in biofuel blends, rapid oxidation of such blends, microbial growth, so-called asphaltenes (compounds that can agglomerate into an oily sludge), acetic acid formation and glycerin.

Glycerin being an unwanted by-product of biofuel manufacturing. “There are so many inherent problems with diesel fuel today,” says Hydrotex’s Cummins, “that machine owners must take a holistic approach when attempting to resolve them.”

The best defense against diesel soaps (and for most other contaminants, as well) seems to be the use of premium filtration, like the “Donaldson clean & Dry kit which includes 4 micron particulate and water filters. The kit also incorporates a desiccant breather to absorb moisture.”

Donaldson Clean and Dry Filter kit

In addition, (tank intake, tank dispensing, and on-machine), good tank housekeeping, and a well-chosen additive package.

Additives might be included in “premium” diesel fuel offered by some jobbers, but solving a serious soap problem might require consultation with an additive supplier who can take a comprehensive, laboratory-assisted view of all the fuel-quality issues in a particular fleet.

But, the best efforts are no guarantee of complete success when dealing with diesel soaps.

“We’ve seen soap deposits form in engines that use our most effective filters—those proved to remove 99.9 percent of material 4 microns and larger and significant amounts of material smaller than 4 microns,”  says Cummins Filtration’s Burbrink.

“If soap particles don’t agglomerate before the filter, they can pass through it. When they hit the injectors, the heat can cause these particles to deposit on metal.”

 

Deposit control

 

 

 

“We have seen great success with some additives,” says Burbrink. “The use of good detergents has dropped the failure rate significantly in some applications. Unfortunately, we also have seen customers having issues even though they are using detergents.”

That said, a well-formulated additive package seems to be an integral part of the potential resolution of problems with diesel soaps.

A good, multi-functional package will contain corrosion inhibitors and lubricity improvers (some formulations use nonacid, non-reacting lubricity improvers), as well as a deposit-control agent that will assist in cleaning injectors and minimizing further deposits.

 

The Key

 

 

 

“The key to diminishing field issues is the use of a two-prong strategy,” says Innospec’s Chapman. “One, use an additive that provides the required lubricity but is resistant to reaction with metal hydroxides, and, two, use a deposit-control additive to ‘clean up’ and ‘keep clean’ any deposits that may form, regardless of the their source. Deposit-control additives are useful for reducing injector deposits, reducing filter plugging, and for carrying through trace amounts of water. In lower-dose rates, or at a ‘keep-clean’ level, they will put a protective coating on metal surfaces and not allow deposits to form—or will limit their formation.”

Hydrotex’s Cummins makes the point, too, that treatment rates for additives, a corrosion inhibitor, for example, might have to be adjusted to meet the conditions of a particular storage tank. Cummins also reminds machine owners that deposit-control additives might need time to work in certain situations: “Soap deposits can get very deep into the injectors, become sticky, and cause poor actuation of the pintle. A good additive package will help clean the injectors, but given the nature of the deposits, it’s usually not a quick fix. The process might require four or five tanks of treated fuel before improvement is noticed.”

Sunrock’s Dennis offers this suggestion to fellow fleet managers: “I would recommend that fleet managers, if they haven’t already done so, educate their fuel suppliers on the subject of upstream fuel-contamination issues and their effects on diesel engines.

Managers can use that opportunity to register their concerns about diesel soaps—for the purpose of promoting a partnership in utilizing countermeasures against diesel-fuel contamination. Their fleet reliability depends on it.”

 

 

To read more technical data on Diesel Soap click link below

SOAP AND GLYCERIN REMOVAL FROM BIODIESEL  

Star Oilco truck fueling a large generator during winter conditions
Treating And Refilling Your Diesel Backup Tanks 1024 768 Star Oilco

Treating And Refilling Your Diesel Backup Tanks

Here’s good advice if you are relying on diesel as a back up fuel in the Pacific NW.

Now is the time to refill and treat your back up fuel tanks.

Diesel as a back up fuel

Quite a bit of our business at Star Oilco is fueling back-up generators, emergency water pumps, refrigerated trailers and other long term off-road diesel storage requirements. In the Pacific Northwest, biodiesel blending is required by state laws and you need to take an extra duty of care when storing diesel as a back-up fuel.

This means that most off-road diesels and heating oils are ultra low sulfur diesel containing a small quantity of biodiesel.  That means long term storage requires a proactive approach.  You can’t just hope and wait to see what the fuel begins to look after years of storage.

Technical advice from Government Fleet Magazine to help you with storing diesel fuel.

Here is an article from Government Fleet Magazine on the subject which runs through the specifics of long term storage and what causes fuel to degrade when stored.  Government Fleet Magazine – How to Maintain Stored Diesel Fuel.

Star Oilco has also worked up a PDF check list on how to verify if your fuel is in need of freshening or is still in emergency ready shape.  If you are a customer of ours, we will deliver a laminated card version to keep next to your back up generator. If you are not a customer (or outside of our service area) drop us a message below and we will gladly email you the PDF.

For our customers, we recommend that you check the tank bottom fuel quality on an annual basis to make sure the product looks good. If the tank has sat for years and is dark in color (good diesel is bright and transparent – you will notice if it is in bad shape), we recommend pumping the tank out at least partially and replacing with fresh fuel. Often you can also hugely improve the quality of the fuel by polishing the fuel. Polishing is when you circulate fuel from the bottom of the tank through a pump, filter repeatedly in order to remove any sediment or growth from the fuel, and then place this fuel back in the same tank.

Look at your fuel for a bright and clear color.

For stored fuel, you also want to make sure it is stabilized and contains a biocide. Stabilizers prevent the oxidation of the fuel and prevent the effect of metals like lead, copper and zinc, which can react and degrade fuel. For heating oil systems with a return line, for instance, the fuel is flowing through a copper line to the furnace and then back to the tank in a return line.

Use additives designed to prolong the life of your emergency diesel fuel.

Biocides prevent the growth of biological activity in the tank. In scenarios whcontaminated_dieselere micro-organisms like algae, bacteria, yeasts, and other bugs are growing in your fuel, biocides can kill this growth. It is still important to remove the residual grit and other contaminants that are the hallmark of bugs growing in your tank. Usually you remove them by filtration or total turn over of the fuel. If your tank absolutely has to be clean, you can contract a tank professional to enter the tank and physically clean the tank bottom or reline the tank with either fiberglass or an epoxy resin.

Water in diesel destroys fuel quality rapidly. Check your tank for water every fall and spring.

In events where water finds its way into your storage tank, that can also be corrected by pumping the tank bottom. Additionally, you want to put in an absorbent material designed to absorb water and not fuel. If your long term storage tank has water and you are not planning to burn 100% of the fuel in the near future, DO NOT add anything that removes water by distributing into the fuel. Adding a “fuel drier” that actually pushes the water into solution with the diesel will worsen the long term quality of your fuel, not improve it. That water is where bugs find their home to grow in fuel.

Star Oilco will test your fuel at no charge if you have an open account.

Feel free to call us with any questions you may have about long term storage of diesel. Star Oil can also deliver treated diesel ready for long term storage complete with Hydrotex PowerKleen Premium Diesel additive to improve the long term storage quality of your fuel. For biocide, we use Valvtect BioGuard fuel microbiocide to kill any possible biological activity and prevent any chance of it starting.

Diesel Testing and Storage in Portland

If you have a long term diesel storage tank and you are in the Portland, Oregon area, we are here to test your fuel.  Make sure your diesel is there for you when disaster strikes.

Tank Testing Form

  • This field is for validation purposes and should be left unchanged.

 

For more reading on diesel fuel quality assurance:

Fight Humbug in your Diesel Tank (using Valvtect Bioguard Plus 6 to stabalize your stored diesel)

Diesel Fuel Technical Review (an easy to read and free text book on diesel fuel)

Emergency Back Up Generator Fuel Quality (designed to provide a checklist to help Facility Managers keep those back up generators ready for emergency action)

Using Desicant Breathers to keep diesel fuel dry and clean (an introductory primer on desicant breathers and how they can be used to keep long term diesel storage drier and cleaner)

Using Diesel Filters to clean up your diesel fuel quality (an introductory primer on using aggressive filtration in line with diesel fuel dispensing for fuel quality assurance)

Construction Loaner Diesel Tanks
Diesel Fueling for Construction Jobsites 720 720 Star Oilco

Diesel Fueling for Construction Jobsites

Diesel fueling for construction jobsites in Portland, Oregon.

Keep full service for construction jobsites with R99 Renewable Diesel available.

Diesel Fuel for Construction

 

If you are managing a project we will keep that jobsite full.

Diesel fueling for construction jobsites seven days a week in the Portland metro region.  We have a variety of diesels accompanied with DEF top off to keep your operation running without interruption. We can provide a consistent schedule to keep going seven days a week.  If you are running generators, blowers, heaters and other 24-7 equipment we can keep those running through the weekends.  Our autofill construction service can provide the fuel you need, tanks for your project, and regular scheduled service to guarantee uptime.

Does your diesel fueling for construction needs call for a guaranteed stops on a schedule? Do your projects sometime require every 12 hour or 6 hour fueling? Does you fueling project needs call for generators, heaters, reefer-trailers, light sets, and yellow iron?  Star Oilco can do a few gallons wet hose fueled into your equipment to 100,000+ supply contracted for your project.  We have trucks dispatched seven days a week with several shifts.  Star Oilco can do twice a day fueling if needed for your project including regular 0 gallon stop by visits to confirm your equipment is running.

We can keep your generators running, your heaters blowing hot air, your pumps pumping, and your crew running without having to stop for fuel or DEF!

 

Fueling Back Hoe on construction site

Jobsite fueling service to meet the needs of your project management.

Off Road Diesel, Dyed Renewable Diesel and DEF available for your project need.

 

Mobile Fueling of Construction site in Portland, Oregon

Keep Full Mobile Onsite Fueling

Star Oilco can provide scheduled mobile fueling to your jobsite seven days a week.  Our diesel construction fuel service includes onsite tanks as well as DEF equipment for your project needs. At start of shift and end of shift schedule is also available for delivery.

 

 

 

Tight Access Diesel Construction Fueling Available.

Star Oilco’s fleet includes smaller fuel trucks able to access tight to reach areas in parking garages, active facilities, back alleys, inside buildings, and other hard to reach areas required by a project.

 

 

 

 

DEF Delivery Included with your Diesel Fueling.

Diesel Exhaust Fluid (DEF) keep full and bulk delivery service to your jobsite.  We have DEF bulk equipment as well as boxes available for your project.  What you want for your operations is what we want. Keeping those small DEF tanks full and generators running is what we can do for you.  We are here to make it easy.

 

 

 

Renewable Diesel in Oregon

Dyed Renewable Diesel for your Diesel Construction Fueling needs.

Does your project require a lower CO2 footprint?  We have off-road R99 Renewable Diesel on our trucks daily.  Star Oilco also has multiple sources for R99 in the Pacific Northwest for your needs to guarantee supply. If large volumes are needed for Renewable Diesel for a project in the future we can enable a contract to meet these needs.

 

 

Construction Loaner Diesel Tanks

 

Diesel Fueling Construction Tanks available.

Star Oilco has fuel tanks available for your project.  Our typical inventory of tanks sizes are 250 and 500 gallon UL142 double wall thanks.  We have 100 and 50 gallon fuel cells for moving fuel around a jobsite in the back of a fuel truck. Larger sizes available for longer term and larger projects with advance planning.

 

 

 

Wet Hose Fueling Service in Vancouver, WashingtonStar Oilco can provide your project with the fuel you request.
– B5 ULSD Dyed Diesel
– B20 ULSD Dyed Diesel
– Dyed R99 Renewable Diesel
– E10 Gasoline
– Non-Ethanol Premium Gasoline
– Kerosene, and others if the project calls for it.

Schedule Your Fuel Delivery Today

  • This field is for validation purposes and should be left unchanged.
comparison chart showing difference between off-road diesel and on-road diesel fuel in Portland OR
The Future of Diesel Fuel 940 788 Star Oilco

The Future of Diesel Fuel
Retail Diesel Dispenser Example
Retail Diesel Pumps with a variety of blends of diesel. Biodiesel, Renewable Diesel, and Fossil Diesel blends shown in Portland, Oregon.

The Future of Diesel is Low CO2 Synthetic Fuels

The stew of molecules your diesel is made of has been changing. A next level technology in chemistry is enabling garbage to be transformed into hydrocarbon fuels like diesel, jet fuel, naphtha, and propane as well as other high value chemicals. These technologies enable petroleum refineries in the United States to retool themselves and move into making biofuels with the very technology used to refine modern gasoline and diesel fuels from crude oil.  Currently oil refineries take crude petroleum and crack the molecules and reform them with a hydrotreater.  This hydrogenation is what makes renewable diesel from fats, oils and greases.

If you have ever worked under your sink at home. Remember the greasy mess inside the pipes below your kitchen sink.  These renewable hydrogenation technologies can turn that trash into a super clean high performance synthetic diesel fuel.  That waste stream along with used deep fryer oil, the animal fats from rendering and other sources is the feedstock for renewable diesel.  It is exciting and this will be the future of our diesel and jet fuels.  These fuels also have a fraction of the CO2 footprint of a fossil fuel equivalent as measured by Oregon, Washington or California’s rules to measure the carbon intensity of fuels.

Diesel Fuel in Oregon and Washington

Star Oilco has been getting questions on the changes of diesel in Portland, Oregon.  If you have not noticed, many diesel pumps at retail gas stations and cardlock have seen changing stickers on the face of the fuel pumps.  As of July 1st, 2024 the City of Portland requires a minimum 15% biofuel content of all diesel sold.  This policy is called the Portland Renewable Fuel Standard.  Portland currently plans to ramp up this requirement to a 50% biofuel blend in May of 2026.  So that every gallon of diesel sold inside the City of Portland must be half biomass based diesel products blended with fossil diesel.

This has caused quite a few changes in what fuel pumps have as their fuel for sale.  Usually people notice this change with teh color of the diesel coming out of the retail nozzle.  Diesel fuel buyers are noticing the bright yellow color of B20 biodiesel, the fully clear color of Renewable Diesel or a mix of several fuels tinting the color of their diesel.  This trend is bigger than just Portland.

Today on the west coast there are a variety of product label stickers you will see on diesel pumps.  These show the variety of diesel fuel specifications that are being sold to diesel vehicles today. Blends of petroleum ultra low sulfur diesel, R99 (99%) renewable diesel, and B99 (99%) Biodiesel are combined to meet the market needs of the diesel we all buy.

This change is because of a combination of pure market forces, government rules and local decisions by fuel haulers.  Today’s diesel not only has a commodity market for the fuel it also has a market for CO2 credit value and a cap of total petroleum diesel fuel that can be sold into a west coast state with a “Cap and Invest” program requiring blends of low CO2 biofuels, the liquid fuels sold for vehicles.

Add on top of these market forces, advances in technology used to make the liquid diesel fuel.  The diesel arriving at truck stops, gas stations, cardlock or out of a hose from a bulk truck has been changing and it’s often in good ways.  Knowing how can be helpful in navigating why diesel may cost one price or another and may have a need or maintenance that another fuel does not.

THE RISE OF RENEWABLE DIESEL

Renewable diesel, also called R99 as in 99% renewable diesel, is a synthetic diesel fuel made from the same feedstock as biodiesel. The big difference though is that renewable diesel’s finished product is hydrocarbon diesel.  Biodiesel chemically is not a hydrocarbon or made up of diesel molecules.  Renewable diesel is a biofuel, but it is also chemically diesel on a molecular level. For fuel regulation they refer to it (as well as biodiesel) as “Biomass Based Diesel” for labeling at the fuel pump.

There have been billions of plant capacity brought online in the United States for renewable diesel.  During the COVID market drop in fuel prices a number of petroleum refineries shut down, then upgraded their technology to make hydrocarbon diesel fuels out of the very biobased fats, oils, and greases biodiesel is made from.  These refineries use hydrotreating technology just like they do with a crude petroleum to make an actual hydrocarbon diesel molecule.   With this technology adoption to make diesel and jet fuels from vegetable oils and animal fats billions of gallons of low CO2 diesel fuels are coming on the market and governments are requiring it’s use, such as Portland’s Renewable Fuel Standard.

Renewable Diesel Consumption it the US Source: Alternative Fuels Data Center

THE AVAILABILITY OF BIODIESEL

The US makes billions of gallons of biodiesel.  A fuel that’s quality and performance continues to improve.  If you are not a fan of biodiesel in your fuel thinking strategically about the fuel will likely benefit your fleet operation.  The big concern with diesel fuel in a ultra low sulfur world is water and dirt suspended in the fuel affecting the performance of diesel emission systems.  With clean and drier quality specifications of B99 blend stocks today versus a decade ago the use of this fuel has grown substantially especially in the truck stop market.

When crude petroleum prices are high and therefore refined diesel prices are equally as high biodiesel is often an extremely competitive fuel.  Recently changes in Federal subsidies on biodiesel have changed this market dynamic a bit but you can presume that biodiesel will often be sold at a discount against fossil fuel diesel.  If a large seller of diesel (including petroleum refiners) can pick up pennies per gallons on millions of gallons sold they will do so.  Therefore Biodiesel is often seen in diesel in small blends even if you do not see a label on retail pump.  For blends above 5% a label is required for retail fuel sales.

R99 Renewable Diesel label indicating 99% biomass-based diesel content
Ultra Low Sulfur Retail Diesel Label
Biodiesel Blend Percentage label for retail diesel dispenser

Above are a variety of labels used to denote what fuel blend is coming out of a retail diesel dispenser. Feel free to call Star Oilco at 503-283-1256 if this confuses you and you want it explained.  We would be glad to do so.

These labels can be found together often at one pump.  All state and Federal standards require ultra low sulfur diesel for any on-road diesel sale.  The Federal standards also adopted by the states require a disclosure at the fuel pump if a blend is above 5% biodiesel.  The max allowable blend of biodiesel for diesel truck manufactures is a 20% blend.  If a truck dealership says that you cannot blend biodiesel up to 20% they need to take that up with the Federal Government because they need to support it.  This is why the label shows a blend may contain between 5% and 20% biodiesel content.

Renewable diesel is a hydrocarbon diesel. 

 

It is diesel meeting the ASTM D975 specification for diesel. 

Retailers selling blends of R99 in their fuel do not need to label it given this.  They still do label it given the benefits of the fuel’s performance and that customers are seeking that fuel.

Contact Us Today To Schedule Your Next Bulk Fuel Delivery

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Many retail places will have stacked labels showing they may be blending 5% to 20% biodiesel as well as may be adding R99 Renewable Diesel to the fuel as market conditions dictate it is the more cost competitive fuel.  When seeing a label like this it can usually be assumed they are blending a R80 (80% Renewable Diesel) and a B20 (20% Biodiesel) blend of fuel.  This blend is actually believed by some to be a higher performing fuel seeing better performance that a R99 or B20 fossil fuel blend.

Fossil fuel diesels are being replaced or blended with biomass based diesels.  Be it Renewable Diesel or Biodiesel.  These blends are driven by more than one industry requirements, government rules, or other market forces. One of these being Portland’s banned on petroleum diesel through the Renewable Fuel Standard (RFS). This is resulting in an increase of low-carbon biofuel blends that will ultimately move to a mix of 99% renewable fuel requirement by 2030.

Renewable Diesel and Biodiesel Blend fuel dispenser label.

The big drivers are industry specification for fuels (both labeling as well as chemical characteristics), state rules on selling these fuels, their quality assurance as well as CO2 content, and of course the market forces.  Market forces being the supply and demand availability of fuel needed to meet customers.  Less fuel available to sell means higher prices for customers.

A decade ago the market for diesel was far simpler. Though you had biofuels and some blend mandates basically you had a diesel specification accepted and the daily price as tracked by a lighted retailers sign, a wholesale market average or spot buying by some customers.   Today this market is far more complicated by government regulation on the west coast.  There are three big programs at state levels impacting this.

State Fuel Rules cause a unique need for one state or another. Whereas twenty years ago if Oregon or Washington fuel was selling for more than the Gulf Coast you might see brokers bring fuel into the region then driving down high prices.  With the creation of various complex and unique rules on diesel, imports of fuel to these low CO2 fuel states has dropped.  The amount of people moving product into west coast states has dropped.  The big rules causing this are the Cap and Invest programs of the West Coast states, the Low CO2 Fuel Standards of the states, and the fuel blend mandates of various jurisdictions of these states. For instance California now requires all off-road diesels but 99% renewable diesel.  Portland, Oregon also has a CO2 requirement and minimum 15% blend of biomass based diesel on all fuel sold in the state.

WHAT ARE THE DIESEL FUELS AND THEIR SPECIFICATIONS

Petroleum Diesel:
ASTM D975 Specification.

The ASTM D975 is a series of tests used to maintain consistent industry standard product performance for diesel fuel.  It includes among several tests cloud point, cold filter plug point (CFPP), several masurements of diesel fuel operability performance, intrained water content, sediment, carbon residue, ash, distillation, viscosity, sulfur, copper corrosion, cetane number, cetane index, aromaticity, and conductivity.

Renewable Diesel:
ASTM D975 Specification.

Renewable Diesel is following the same series of tests as petroleum refined diesel fuels.  It is the same ASTM D975 specification. Though Renewable Diesel has some different properties that exceed the ASTM specification of diesel.  Renewable Diesel is highly prized as a fuel because it typically is a cleaner and drier diesel fuel than petroleum diesel. This being seen by the tests on sediment and water content in a parts per million level.  Renewable Diesel content in diesel fuel can also be tested for looking for a C14 molecule (the chain typically created in a Hydrotreated Diesel process from fats, oils and greases.

Biodiesel (Methyl Esther):
ASTM D6751 Specification.

The ASTM for Biodiesel tests a mono-alkyl esters of long chain fatty acids derived from vegetable oils and animal fats. The testing for quality assurance covers an analysis for flash point, methanol, water and sediment, kinematic viscosity, sulfated ash, oxidation stability, sulfur, copper strip corrosion, cetane number, cloud point, acid number, carbon residue, total and free glycerin, phosphorus, reduce pressure distillation temperature, atmospheric equivalent temperature, combined calcium and magnesium, and combined sodium and magnesium.

For more on Biodiesel Use and Handling the National Renewable Energy Laboratory has a great book on the subject.

THE HISTORY OF DIESEL FUEL SPECIFICATIONS IN THE UNITED STATES

In the 1990’s the US EPA passed rules that demanded a phase out of sulfur in diesel fuel.  The presence of sulfur was very good for the fuel’s storage stability as well as fuel lubricity, but was horrible for air quality.   Additionally the big smog contributor was NOx (nitrous oxide) which was one of the EPA’s reason’s for pulling sulfur out of diesel.  For the EPA to get engine manufacturers to treat the NOx emissions at the tailpipe they needed all the sulfur gone (ultra low sulfur diesel) for modern diesel emission systems to be able to eliminate NOx as well as a host of other pollutants including particulates.

The story of changing diesel fuel standards in the US under the EPA is one of removing sulfur from our diesel fuel.  In 1996 the fuel refiners and sellers of diesel had to move the sulfur content of the fuel sold for on-road purposes to below a 500 parts per million standard. Commonly referred to as Low Sulfur Diesel fuel.   In 2006 the standard moved to a maximum of 15 parts per million of sulfur for all on road fuels.

In 2006 while the sulfur content of fuel was dropping the City of Portland released the first mandated blend of biodiesel content.  This being a 5% biodiesel blend.  The next year, the State of Oregon followed with its own Renewable Fuel Standard requiring this throughout the state.  This began the expectation of biodiesel in most diesel fuel in the Portland, Oregon area.  Washington also passed a similar policy for blending biodiesel but the enforcement and need for the fuel is less specific at Washington fuel pumps.

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Star Oilco truck refueling off-road diesel at a job site in Portland OR
Every Question We Have Been Asked About Renewable Diesel 1024 768 Star Oilco

Every Question We Have Been Asked About Renewable Diesel

Renewable Diesel Frequently Asked Questions (FAQ)

Every Question we have been asked about Renewable Diesel

What is renewable diesel?

Renewable diesel is a synthetic diesel fuel, known for it’s lower CO2 characteristics, typically seeing purity and real world performance response superior to petroleum diesel fuel.  Renewable diesel is a next generation hydrocarbon diesel biofuel made by either the Fischer-Tropsch or Hydrogenation processes.

Hydrogenated renewable diesel is made by taking fats, oils, and greases by use of a hydro-treater.  The biomass based oil or fat is cracked and reformed in the presence of hydrogen and  catalyst forming a hydrocarbon diesel molecule.

Fischer-Tropsch renewable diesel is used by converting any btu dense feedstock (wood waste, woody biomass, municipal garbage, coal, and an endless list of low value waste products into syngas, then converting this into a wax that is reformed into hydrocarbon diesel.

Is it true that Renewable Diesel reduces CO2 emissions by more than half?

It depends on the feedstock and processes that determine the fuel pathway.  But for the most part it is safe to presume that if you use a R99 Renewable Diesel product in Oregon that it will have a lower than 50CI which would cut the CO2 emissions in half versus an equivalent gallon of gasoline used.  Sometimes Renewable Diesel can be blended with fossil fuel diesel as well as biodiesel.  Star Oilco currently presumes 99% renewable diesel is the fuel being used when describing Renewable Diesel and “cutting emissions in half” as a claim, backed up by the scientific data associated with the Oregon Clean Fuels Program and its pathways.

According to the Oregon Clean Fuels Program list of pathways for Renewable Diesel approved to be sold in Oregon shows the lowest CO2 value to be 16.36 CI and the highest to be 65CI.  Most, nearly all, of the Renewable Diesel pathways in Oregon are below 50% reduction in CO2 emissions associated with the fuel.  You can see these by reviewing the downloadable spreadsheet of “Fuel Pathways – Carbon Intensity Values” available on the left hand side of the Oregon Clean Fuels Program website under the heading “Participating Facilities” as an easy sharable link is not available.

To learn more about this please see the Oregon Department of Environmental Quality’s Clean Fuels Program page where CO2 emission pathways are disclosed for renewable fuels distributed in Oregon.  The system used to measure CO2 emissions and reduction is a modified Oregon “GREET” model.  GREET stands for Greenhouse gas, Regulated Emissions, and Energy Use in Technology. The GREET scientific system to review CO2 emissions was developed by the US Department of Energy and similar systems are used by California and Washington in their Low Carbon Fuel Standards as well.

Is HVO or Hydrogenated Vegetable Oil the same as Renewable Diesel?

Yes.  HVO is either R100 or R99 renewable diesel. The reason you will hear the phrase HVO or Hydrogenated Vegetable Oil instaed of renewable diesel is that the regulations and various incentives for renewable diesel have restrictions.  If renewable diesel is used in stationary power generation it is treated differently for the various subsidies and incentives.  The regulations on fuels for vehicles and equipment differ compared to utility scale power generation.  For this reason the power generation industry will refer to renewable diesel as “HVO” to denote it’s end use.

Is Sustainable Aviation Fuel or “SAF” the same as Renewable Diesel?

No.  Sustainable Aviation Fuel or “SAF” is a Jet A specification or a Number 1 diesel fuel. A Number 1 diesel fuel can be mixed with Number 2 without impacting it’s specification requirements.  Number 1 though cannot be mixed with Number 2 diesel weights and stay in specification.  It is a lighter end than Number 2 diesel meaning it has a different specific gravity weight of the fuel.   So in short SAF can be used as Renewable Diesel but has a much higher standard to meet than is required for Renewable Diesel. Therefore the products are very different based on this need for quality assurance to meet the aviation jet fuel specification.

There is a huge demand for Sustainable Aviation Fuel and many of the current Renewable Diesel plants in operation are upgrading their technology to make SAF.  It is expected that in the hydrotreating processes to make renewable diesel and SAF, the Jet A fuel specification is a harder one to produce.  So as the refining of SAF increases we will expect to see subgrade SAF (product made to be SAF that does not meet the standard) be moved to the Renewable Diesel market.  We will not see Renewable Diesel being used in jets though.

Can Renewable Diesel be used as Heating Oil?

Yes.  Renewable Diesel is a synthetic hydrocarbon diesel fuel.  It can be used interchangeably with petroleum diesel products of similar grade. Heating Oil is typically number 2 diesel which is the same specification as Dyed R99 Renewable Diesel (or blends of Renewable Diesel with petroleum diesel).   Star Oilco now offers R99 Heating Oil delivered in the Portland metro region area of Oregon.

Most modern oil heat appliances use a Becket Burner.  For more on heating fuel compatibility with oil furnaces and oil burning appliance please see “Alternative Fuels and Becket Burners” for more information.

Why do people use renewable diesel over petroleum diesel?

Fleet managers operating R99 Renewable Diesel report a lower mechanical cost of operation using the fuel.  Beyond the immediate benefit of R99 cutting CO2 emissions by half or more, fleets experience performance benefits from the fuel.  The big savings are seen the the performance of Tier 4 Emission systems on modern diesel seeing far less wear of the Diesel Particulate Filter system as well as far fewer regenerations of the system.  Additionally Renewable Diesel is a very clean and dry diesel fuel improving the storage stability, field operation, and general predictability of the fuel’s performance.

How do I know Renewable Diesel is being sold at a retail location?

Renewable Diesel is a hydrocarbon diesel that meets the specification for petroleum diesel known as ASTM D975 specification.  This means currently R99 can be readily blended and sold with petroleum diesel without a disclosure.  The US Federal Trade Commission and local state Weights and Measures have rules for retail pump labeling.  Blend percentages of biomass based diesel must be labeled especially if being advertised.  As R99 Renewable Diesel has a higher value and is sought out by many consumers though usually it is disclosed.  The pump labeling for R99 Renewable Diesel typically looks like the below.

R99 Renewable Diesel fuel dispenser label

What is renewable diesel made of?

Renewable diesel can be made from a host of things, usually a low value waste product. The most common feedstock used currently is waste vegetable oil, wastes from animal rendering, and other biologically derived oils. Processes using bio-oils are following a Hydrogenation process to turn low value waste oils into high value diesel and jet fuel.

Chevron Renewable Energy Group and Diamond Green Diesel (Diamond Green is in a joint venture with Valero) are the largest producer of renewable diesel with their REG Ultra Clean Diesel product in the United States. Neste is the largest producer of renewable diesel internationally, with its “Neste My” product.  being the two largest producers of low CO2 bio-oil derived renewable diesel fuels.

Major petroleum refiners have also turned around existing petroleum refineries into Renewable Diesel Refineries to produce this in demand low CO2 fuel. HF Sinclair , Marathon, Phillips 66, and Montana Renewables. There are quite a few newer Renewable Diesel projects planned and in progress around the United States as well as in the Pacific Northwest.

Other refiners of renewable diesel (on a much smaller scale of production) are using a Fischer-Tropsch process with wood waste, sorted higher grade municipal garbage, and other high btu value carbon based waste products.  Many expect this to technology to be the future of all diesel and jet fuel refining turning refuse into fungible low carbon fuel.

What is renewable hydrocarbon diesel?

Renewable hydrocarbon diesel is a synthetic diesel fuel made from non-petroleum feedstocks like vegetable oil, animal fats, municipal waste, agricultural biomass, and woody biomass. It is characterized by having a low CO2 and renewable resource for its feedstock and is made without crude petroleum, coal, or natural gas as a direct feedstock input in the refining process.

How do they make renewable diesel?

Renewable diesel is made by several processes. If you are buying renewable diesel, it is probably from a Hydrogenation process used by Renewable Energy Group and Neste for their products. Other smaller volume producers are using a Fischer-Tropsch process or Fast Pyrolysis. Both processes involve taking energy dense molecules, cracking those molecules under heat and pressure, then reforming them in the presence of a catalyst and added hydrogen, which forms a renewable diesel molecule.

Is renewable diesel a lower carbon fuel compared to petroleum diesel?

Yes, to this point all renewable diesel made from renewable feedstocks have appeared to be a lower CO2 fuel compared to petroleum diesels. The California Air Research Board in particular has done research on this in depth.

The low CO2 lifecycle emissions of Renewable Diesel also is tracked closely and supervised by California’s Low Carbon Fuel Standard, Washington’s Low Carbon Fuel Standard, and Oregon’s Clean Fuels Program. The highest value markets for low CO2 fuels in the United States are California and Oregon, which both have mechanisms that track and price the CO2 intensity of diesel fuels as well as the sustainable lower CO2 substitutes and blend-stocks that can go in those diesels. They track, rate, and determine the carbon intensity of the fuels providing a neutral and scientifically defensible number for CO2 reduction.

Is renewable diesel available in Oregon?

Renewable diesel is readily available for delivery from Star Oilco throughout the Pacific Northwest via 10,000 gallon volumes of bulk delivery.   Star Oilco is also offering bulk delivery of any size and mobile onsite fueling service within 100 miles of the Portland, Oregon market.

Star Oilco has R99 Renewable Diesel available with a Star Oilco CFN Cardlock card in Portland, Oregon.

What is the difference between biodiesel and renewable diesel?

Biodiesel and renewable diesel are very different fuels made with very different processes. In a nutshell, biodiesel is made with a simple chemical reaction that turns vegetable and animal fats into fuel. Renewable diesel is made from far more complicated process where vegetable and animal fats (as well as other feedstocks) are cracked on a molecular level and built back into synthetic diesel fuel.

What is the difference between renewable diesel and Sustainable Aviation Fuel?

The difference between the fuels is the specific gravity and general specification for what the fuel is used for. Jet fuel, or Sustainable Aviation Fuel, and on-road diesel fuel are different fuels and therefore have different specifications. Renewable diesel is typically referring to a #2 diesel specification for on road diesel use.

Sustainable Aviation Fuel or “SAF” is typically referring to “Jet A” or “JP8” jet fuel specification for fuel. This is a #1 diesel range fuel with use and handling requirements that are far more stringent than for on-road or off-road diesel fuels. Renewable jet fuel can be used as a kerosene or #1 diesel fuel but renewable diesel cannot be used as a jet fuel.

Where do I buy renewable diesel in Oregon or Washington?

Renewable Diesel is currently available for bulk delivery and mobile onsite fueling. It will soon be offered at commercial cardlock in the Portland area. It is being sold as R99 and as Ultra Clean Diesel, which is a mixture of biodiesel, renewable diesel, and petroleum diesel.

What is R99?

R99 stands for 99% renewable diesel and 1% petroleum diesel.  Federal rules over alternative diesel fuels made fuels requires that manufacturers of non-petroleum derived diesel fuels must blend a minimum 1% petroleum with the fuel to generate a Renewable Industry Number or “RIN” under the US Federal Renewable Fuel Standard. Additionally there are other incentives that require a “blender of record” to receive these tax credits.

Is renewable diesel being made in Oregon?

As of Spring 2022, renewable diesel is not being manufactured in Oregon. There is a major projects underway, Next Renewable Fuels in Port Westward, Oregon.

What is renewable diesel made from?

Renewable diesel can be made from many energy dense carbon based material.  By volume of produced product sold in the United States, vegetable oils and animal fat-based wastes are the most common feedstock. Woody biomass, agricultural wastes, and sorted municipal wastes are also sources for renewable diesel production.

Is renewable diesel made from palm oil?

Palm oil can be used as a feedstock for renewable diesel. There are producers who use palm oil as a feedstock. In the United States, feedstocks and carbon intensity are tracked closely under both Oregon and California’s fuel programs.  You can determine if a supplier is using palm oil as a feedstock through these regulated pathways.

How much does renewable diesel cost?

This is a tough question to answer given there are several markets intersecting.  From the feedstocks to the market demand for the finished product as well as both California and Oregon’s Clean Fuel Standards which place a price on the CO2 intensity of the fuel which reduces the cost of the fuel if consumed in Oregon and California.

It has consistently been trending between the same cost and over $1 a gallon higher than petroleum diesel depending on the state, you buy renewable diesel in. In California, renewable diesel is very close to petroleum diesel depending on the value of CO2 credits for lower-carbon fuels. In Oregon, it has consistently been between $.05 to $.80 a gallon higher than diesel also depending on the value of CO2 abatement associated with the fuel and what these carbon credits are trading for.

When petroleum diesel costs are high Renewable Diesel tends to be more competitive with petroleum diesel.  When petroleum diesel is below $3 a gallon the cost of Renewable Diesel by comparison is usually higher unless CO2 credits are in higher than normal demand for Clean Fuels Program demands.

Can you mix petroleum diesel and renewable diesel?

Yes. Renewable diesel and petroleum diesel can be blended in any mixture without worry. They are drop-in substitutes for each other in your fleet’s use.  Renewable Diesel is a drop-in fuel. It is a hydrocarbon diesel that will work mixed with diesel or biodiesel blends of petroleum diesel.

Green fuel nozzle representing renewable diesel with Star Oilco logo - serving Oregon and Washington fleets.

Learn more about renewable diesel and how it can benefit your operations. Contact us today.

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Clear Premium Non-Ethanol Gasoline. 683 1024 Star Oilco

Clear Premium Non-Ethanol Gasoline.

Do you need Non-Ethanol Gasoline delivered in the Portland, Oregon area?

If you are looking for Non-Ethanol Premium Gasoline delivered to your bulk tank or available at a Commercial Cardlock, Star Oilco has your needs covered in the Pacific Northwest.

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Premium Unleaded without Ethanol in the Gasoline

Nonoxy Premium is the fuel you want in a gasoline tank if you are storing equipment with a full tank of fuel.

Premium gasoline without any ethanol blended into it goes by several names.  Clear premium unleaded, Non-Oxy (non-oxygenated) premium, nonethanol gasoline, or Clear 91 Octane are a few of the terms used.  Regardless of what it is called, getting gasoline without ethanol in the Portland, Oregon area requires buying a premium rated gasoline.

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Clear Gasoline Premium bulk tank delivery

Why is the only ethanol free gasoline in Oregon and Washington premium grade of 92 octane?

This is because of several laws in Oregon as well as Washington that require the blending of 10% ethanol with all gasoline with the exception of premium grades for small engines, classic cars, aviation uses, and other type specification needs.

With the blend requirements for 10% ethanol this changed the way gasoline was supplied in the Pacific Northwest.  This was caused by the octane ratings of gasoline.  Regular gasoline is a 87 octane rating.  E98 ethanol has a 107 octane rating. With this blend requirement, the gasoline changed to account for the high octane of ethanol.  So refiners and sellers of gasoline began to use what the industry calls a “sub-octane” gasoline at 85 octane because the guaranteed blend of 10% ethanol would boost the octane rating back up to 87 octane.

This is usually where people ask: “Why does this effect premium unleaded as well, and why the heck is clear premium so expensive?”

There are three reasons nonoxygenated gas costs more:

1- Ethanol is a lower cost fuel than gasoline, so less ethanol means a slight higher price of the fuel.

2- Fewer terminals carry a non-ethanol option for Premium unleaded reducing options for customers demanding the fuel and therefore higher prices.

3- CO2 regulations have raised the cost of fuels without biofuel blends in them as well.

REASON 1

The reason why is for several decades before the 10% ethanol blend mandate, the industry has been upgrading retail gas stations, cardlocks, and truckstops to blend regular gasoline and premium gasoline to the midgrade gasoline at the island. With a 10% ethanol blend mandate for regular unleaded and midgrade this required any and all retailers with blending pumps to use E10 (10% ethanol) premium to be legal with their midgrade product sold.  This also means that a non-ethanol premium pump requires a stand alone pump, line set up, and infrastructure need.

REASON 2

The blend mandates for gasoline caused all of the major branded gas station chains to move to a defacto 10% blend at the terminal level reducing availability of non-ethanol or “Clear” premium gasolines. With far fewer petroleum terminals, brokers, refiners, and other upstream wholesale dealers of gasoline exiting the non-ethanol gasoline market due to far lower volumes of it, the price went up.  This also means that there is far less volume of ethanol free premium unleaded being sold at the wholesale level. Reducing the volume of sales of a single fuel grade raises the cost risk in a volatile commodity market like gasoline.

REASON 3

Recently the entire western coastal states (Oregon, Washington, and California) passed laws around CO2 emissions and liquid fuels like gasoline.  This means that there is a cost for fossil fuels over biofuels which prices into the gallon of fuel.  The less biofuel the higher the CO2 cost for those buying it. Add to that the western states have Cap and Invest rules which put a total limit on volumes of fossil fuels.  These “Cap at the Rack” charges for fossil fuel have been as high as a full $1 for a gallon of fossil fuel in past years.  Cap at the Rack charges on fossil fuel gasoline is usually in the $.40 a gallon added cost range of the price you pay.

If Clear Premium Gas is so expensive why do people still use it?

It is the optimal fuel for small engines that have a habit of being stored for long periods of time without use.  Nonethanol fuel stores stable for a longer time and has a better cold start performance than an E10 gasoline fuel that has sat for over a year.  Add to that it also does not absorb water or impact plastic/rubber/elastomer seals in equipment.  That is why people prefer it.  Sure, the limited availability of terminals carrying this product makes it a specialty in Oregon and Washington.  But the added cost is worth it for sensitive low tolerance engines or for vehicles with long periods of storage between uses.

Choose Star Oilco as your fuel provider for your clear premium non-ethanol gasoline

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