January 2, 2025

Why diesel fuel in Oregon may go up in 2025 https://staroilco.net/wp-content/uploads/2024/10/3.png 940 788 Star Oilco Star Oilco //staroilco.net/wp-content/uploads/2022/10/StarOilco-Logo-RGB-C-Lg-Simple.png January 2, 2025 January 7, 2025

Why diesel fuel in Oregon may go up in 2025

What are the market forces impacting diesel in Oregon for 2025?

There are some big changes coming for diesel fuel in Oregon and it is not widely reported. The biggest likely change being a smaller supply of renewable diesel in the first quarter of 2025. Renewable Diesel is expected to see a shorter supply than in recent years as imports drop off with the removal of subsidies.

Oregon is going to see several major market forces impacting the wholesale, as well as retail cost of diesel to those that buy it. To list them simply, the following events will converge on New Years Eve:
– The end of the $1 a gallon US Blenders Tax Credit (BTC) subsidy on biodiesel and renewable diesel.
– The subsidy replacing the BTC, the Producers Tax Credit (PTC), blocks imported biofuels such as Neste Renewable Diesel.
– Oregon is relaunching its Climate Protection Program which will cap the market allowance for fossil fuels.
– Portland has a Renewable Fuels Program that requires the blending of Biodiesel and Renewable Diesel under a 60% reduction in CO2 emissions from petroleum diesel (biofuels sold in Portland must be below a 40CI under Oregon’s Clean Fuels Program).
– California has mandates for Renewable Diesel in many uses raising the cost of R99 renewable diesel throughout the US.

These forces will raise the cost of fossil fuel diesel, renewable diesel and biodiesel while at the same time Oregon and Portland are requiring the use of these biofuels. This will mean a higher retail and wholesale price inside Oregon compared to the rest of the United States. We cover the details of these trends below in depth.

THE OREGON CLIMATE PROTECTION PROGRAM

The biggest change impacting the price for on-road diesel is the return of Oregon’s Climate Protection Program (CPP). The program’s more common name is Cap and Invest, in fuel pricing it is referred to as “Cap at the Rack” as its allowance requirements are priced on a gallon of fossil fuel. The program caps the total fossil fuel allowed to be sold inside Oregon. Then, revenue generated from selling the allowances to import CO2 contributing fossil fuels into the state, is invested to reduce future needs for these fuels. In 2025, this program will return and fuel importers into the state of Oregon will have to capture the cost of reducing their CO2 emissions under this program.

Oregon previously had a “Cap and Invest” program limiting the total market share allowed for petroleum diesel fuels. This created a higher cost for diesel fuels refined from petroleum compared to renewable diesel and biodiesel. This program was stopped by an Oregon court decision in 2023. The Oregon Department of Environmental Quality (DEQ) just finished and published the new rules for this program correcting the issues the court had with the program.

The way the Oregon Cap and Invest works on the market is similar to musical chairs. If you imagine the market for diesel is limited just like seats in musical chairs, every year they will take a few of the fossil fuel chairs away. That means that anyone maintaining their existing customer gallons or trying to grow their volumes must meet this demand with renewable diesel, biodiesel or some other fuel. The limited market for fossil fuels is represented by “Allowances” provided by the Oregon DEQ. If a fuel seller cannot reduce their fossil fuel dependency, they need to buy a CPP Allowance in an Oregon DEQ curated market for them.

The value of these CPP Allowances is actually charged on each gallon of fuel sold by the regulated parties. It is commonly called “Cap at the Rack” and can range in cost from nothing to over $.50 a gallon depending on how hard it is to meet the need of the program. The biggest impact on the Cap at the Rack cost is how much renewable diesel or biodiesel is being used by those selling fuel. Prior to the stoppage of Oregon’s CPP program, the Cap at the Rack cost usually ran around $.05 to $.30 a gallon. It is expected we will see a return to this cost starting January 1st, 2025. OPIS reports have an adjusted and non-adjusted option to capture the cost of this program.

The way the CPP program is designed is that if a fuel seller brings in a lower CO2 fuel like renewable diesel or biodiesel into the state of Oregon those gallons do not count towards the fossil fuel market cap. So a R99 seller has no CPP Allowance obligations for those gallons. A B20 biodiesel blender, as well, picks up 20% more gallons available to sell as those biodiesel gallons do not count against their CPP Allowances. This facet of the CPP is why the market of renewable diesel in particular is a big deal for diesel prices.

The intent of Oregon is for consumers, fleets, farmers, municipalities, and industry in Oregon to grow their energy needs, they will need to use more low carbon energy. If this energy use is a fleet running over 32,000 GVW this will mean low CO2 biomass based diesel fuels. At the same time, the CPP program is kick-starting back into existence, the world of these biofuels is seeing some major market changes.

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OREGON CLEAN FUELS PROGRAM

Oregon has another program to reduce the CO2 of the liquid fuels sold inside the state. This program is additional and works in conjunction with the CPP. It is the Clean Fuels Program (CFP) and is extremely similar to the California Low Carbon Fuel Standard (LCFS). This program creates a market for Carbon Credits that are traded and required by fuel importers into Oregon. OPIS also shows this program’s cost per gallon on their reporters.

Where the Climate Protection Program is like musical chairs with market share as the allowed market for fossil fuel shrinks year over year, the Clean Fuels Program is like a coupon required with sales of fossil fuel. The major importers of fossil fuels into Oregon must show they are blending lower CO2 biofuels by presenting CO2 credit generated under the CFP program. Users of fuel inside Oregon also see a benefit for bringing in low CO2 fuels when the market needs the credits so that voluntary users of high blend biofuels like R99, B99, B20 or E85 (85% ethanol) get financial support via a reduced final cost per gallon if using those fuels.

The reason we see renewable diesel in Oregon compared to the rest of the United States is because of this program. This value of a Carbon Credit is usually taken to buy down the competitive price of these biofuels. The concept is that if a fuel importer is bringing low CO2 fuels into Oregon, the reduction in CO2 these fuels represent can generate a CO2 credit. That credit being sold on an open market to help reduce the cost of a low CO2 fuel compared to a fossil fuel. The market for these credits is banked and has been building for years. Currently, the CO2 value is low as there are plenty of credits.

If the market availability of renewable diesel and biodiesel is dropping, the value of these credits should be rising. The overall market will be bearing this cost though consumers will likely never see it. In effect these regulatory market impacts of less renewable diesel in Oregon will mean a higher Carbon Credit price under the CFP program. That will help lower the blended or delivered costs of B99 biodiesel and R99 renewable diesel hitting the end consumer.

RENEWABLE DIESEL AND BIODIESEL SUPPLY IN OREGON

Biodiesel and renewable diesel are called “Biomass Based Diesel” as a respective class of biofuels. Where fossil fuel diesel is made from crude petroleum, biomass based diesels are diesel fuels made by several technologies from biomass feedstocks. The most widely used feedstock being fats, oils, and greases from virgin vegetable seed oils (soy and canola) or waste streams like recycled deep fryer oils, meat processors rendering fats, recovered trap greases, and many other sources of fat waste streams.

The 2025 Oregon Fuels Forecast for Oregon predicts a 199+ million gallon need for R99

The Oregon Department of Administrative Services Office of Economic Analysis produces a Clean Fuels Forecast which describes the size of the market need in Oregon. In 2023, Oregon used 133.3 million gallons of R99 inside the state. The fossil fuel diesel used in 2023 was 577.6 million gallons by comparison. So R99 and B99 blended with those gallons is a substantial 26% of the diesel burned in Oregon by the most recent total data. The forecast for 2024 Renewable Diesel is 46.6 million gallons of R99, which appears to be exceeded by quite a bit.

We do not have total consumption numbers for 2024 yet, but we do know thanks to the US Energy Information Agency, that imported R99 from Neste Singapore by itself through October was roughly 62 million gallons rounding up. The Oregon Clean Fuels Forecast expects 199.5 million gallons of renewable diesel in 2025. As the program ramps up with this expectation, the imports of previous years will be far less competitive without subsidies. This means the price of renewable diesel will be higher, unless US production scales to not only fill this market void but also add tens of millions of gallons into the state.

Of that 133.3 million gallons of R99 used in 2023 in Oregon, a third, more than 40 million gallons of it was imported Neste Renewable Diesel. 973,000 barrels of renewable diesel was shipped from Singapore to Oregon that year. Other renewable diesel refiners such as Diamond Green, HF Sinclair, Marathon, Montana Renewables, Phillips 66 and Chevron also had R99 product sold into Oregon. Regardless of the expansion of US domestic Renewable Diesel production in recent years, the Neste product no longer receiving subsidies will have a real impact to maintain these 133+ million gallons of R99 inside Oregon.

This same projection reports that Oregon’s B99 Biodiesel use inside the state in 2023 was 78.8 million gallons. With a projection of Biodiesel to rise 83.8 million gallons in 2025. Given these market needs, Star Oilco predicts R99 to be expensive compared to petroleum diesel. Biodiesel will be more competitive given the available product and no substantial change in suppliers. Biodiesel will also need to be used to replace R99 gallons under the CO2 reduction programs of Oregon. Due to these market forces Star Oilco has contracts for supply at reasonable prices for our existing customers.

R99 is mandated in certain diesel uses in California by the California Air Resource Board (CARB) which make for an inelastic price. Diesel equipment operators in California will have to buy R99 at any price. This will raise the prices we in Oregon can expect to see renewable diesel at. The other low CO2 diesel fuel biodiesel will not be impacted by CARB the same way and we can expect to see B20 become more widely sold because of its more competitive price.

Biodiesel has a much more widely used market development around the US, especially in over-the-road trucking. The plants that make biodiesel also tend to be co-located, owned in collaboration with feedstock producers, and integrated within the Soy industry that produces the feedstock. Expect that biodiesel will continue to be more competitive with diesel than renewable diesel if price is the concern.

It is worth mentioning that the CARB mandates for R99 use in California will have impact to set the price for renewable diesel in other states. If the market demand mandated by CARB continues and the market is short, the price can be expected to rise to meet this demand. So unsubsidized imported R99 will likely continue to flow into California and other states but it will be at a full cost to make up the subsidy. This will likely mean that incremental gallons of R99 needed to meet the market growth projected in Oregon will be at a premium over Oregon diesel to match California’s diesel market.

US BLENDERS TAX CREDIT EXPIRATION IMPACTING OREGON

The biggest unknown on how expensive diesel will be for Oregonians relates to Federal biofuel policy. For the last twenty years the US Government has had an on-again/off-again subsidy on biodiesel and more recently renewable diesel. There have been years the subsidy was not renewed which informs us of what probably will happen with prices on biodiesel. Renewable diesel though is a stickier market. The reaction of R99 renewable diesel prices in California, Washington and Oregon market is the big question and it comes down to an issue of production. Two big issues at play are how much renewable diesel will these states continue to see from Neste’s Singapore plant and how much new US production for renewable diesel comes online to feed the market need.

The Blenders Tax Credit will be replaced with the Producers Tax Credit

The Blenders Tax Credit expired December 31st. There are those that hope that in January the new Congress will take up an extension of this but most experts in the industry do not expect and are not betting an extension will not occur. Meanwhile there is subsidy regime named the “Clean Fuels Production Credit” or the slang term preferred by industry the Producers Tax Credit (PTC) which ranges from $.20 a gallon to $.80 a gallon depending on how low CO2 the fuel as well as some labor practices. The PTC also bars imported renewable diesel and biodiesels from getting any money at import. Approximately more than 40,000,000 gallons a month of renewable diesel flows from Neste Singapore to the west coast, this will have a huge impact on Oregon. For those accustomed to that fuel at the same price as fossil fuel diesel, the expiration of this subsidy will raise our prices for those demanding R99 renewable diesel which was already in short supply prior to this change.

There is also another wrinkle in the subsidy policy of the US with this. The subsidy on Sustainable Aviation Fuel (SAF), basically renewable diesel meeting the Jet A fuel specification, is still in place for imported product for another year. Europe also has some significant incentives and mandates for SAF. Renewable diesel refiners, both domestic as well as foreign have a huge financial incentive to make renewable jet fuel over renewable diesel. This reality probably means that if a gallon of fuel can go to a jet fuel market over a transportation market it will.

So the market forces for renewable diesel in particular probably means less R99 available nationwide in the US. While that is happening, the state of California has mandated that all off road equipment run R99 Renewable Diesel. So regardless of what the price of this fuel is, California will have to use it in huge volumes. Markets being what they are, for high volume fleets demanding R99 they can expect the R99 price in Oregon will track the price paid in California. There will be exceptions of contract relationships for supply of R99 as well as retail brands moving renewable diesel blends to meet their strategic CPP requirements. This will definitely mean anyone wanting R99 will want to line up a contractual supply agreement or can expect a higher price than in 2024.

THE FEDERAL RFS AND RINS

It should also be mentioned that the US EPA has a Renewable Fuel Standard of its own. It is a completely different regulatory system compared to the Portland RFS. This program requires gasoline refiners as well as importers to use so much biofuel in their sales inside the United States. Federally refiners and importers must prove they blended specifically assigned amounts of ethanol, and biomass based diesel fuels.

This program attaches a Renewable Industry Number (RIN) on every gallon of biofuel sold in the US. As there are many unobligated users of this biofuel in the US those blending their own biodiesel, renewable diesel and ethanol generate RINs that can be sold to the refiners and importers of gasoline inside the US.

The RIN value has been low compared to historic values for biomass based diesels. As Biodiesel and Renewable Diesel generate the same type of RIN, the reduction in imported R99 might raise the value of these RINs. This value increase for the Renewable Industry Number is expected to slightly off set the hard subsidy. It will be a market based value so it can not be relied upon for lowering the cost of biofuels, but can be expected to help with price.

As more US produced renewable diesel is coming online, hopefully enough to replace the lost imported gallons before the busy summer diesel season, these RIN values may not have a major contribution to the wholesale price of R99.

CONCLUSION

We predict diesel prices to rise in Oregon compared to the US in the first quarter of 2025

Star Oilco’s team saw these market conditions coming during the summer of 2024. We have locked in contractual supply of R99 renewable diesel for our existing customers and have additional supply for customers seeking R99 renewable diesel by Star Oilco owned cardlock sites, mobile onsite fueling or smaller volume bulk delivery.

Star Oilco expects a Cap at the Rack price from the Oregon CPP to be between $.10 and $.40 a gallon by the end of January depending on biofuel supply. With unofficial conversational predictions with several large fossil fuel refiners and brokers, there is an expectation of over $.25 a gallon as a Cap at the Rack price. We think it will be higher than that with the removal of millions of gallons of R99 from Oregon’s market. In the first quarter with the removal of imported R99 hitting the state we expect the Cap at the Rack price to start in the higher $.30 a gallon range where it left off when the program was ended by a court. As the low CO2 exempt renewable diesel gallons shrink in the first quarter a heavier reliance on fossil diesel will be required.

We expect quite a bit of biodiesel to be loaded up ahead of the $1 a gallon subsidy being ended on December 31st. Renewable diesel will be in short supply due to disruptions in supply of imported product. So first quarter R99 will be at a premium and B99 for blending with diesel will be a deal to be had as fossil fuel diesel prices rise. Expect to see far more B10 and B20 offered in the market place as either a more common than not fuel at retail gas stations, truck stops, and most cardlock stations, especially in Portland. Star Oilco will have options for our customers of either B20, R99, or R20 blends of diesel all complying with the City of Portland Renewable Fuel Standard inside the city. Star Oilco’s Portland CFN and Pacific Pride locations will have both R99 and B20 hoses available for customers.

California will continue to demand any and all R99. If the market is short R99 because of a removal of imported renewable diesel, the value of R99 in California will rise to justify foreign R99 to enter the market without a subsidy. Star Oilco presumes that number will be between $.40 to $.80 a gallon. If R99 in California is able to demand a premium, Oregon will have to pay that price for incremental gallons. Oregon has a specific need for R99 and B99 for retail gasoline sellers to meet the Climate Protection Program (if you sell so much gasoline you must reduce your market share someplace and R99 diesel is the easiest way to do that). Oregon retailers will be seeking to move a budgeted amount of renewable diesel and biodiesel to meet their fossil fuel allowance budgets under the CPP. Each gallon beyond that will have to compete with California at a high price.

R99 will still be available but we expect incremental gallons to be at a premium. Contractual gallons direct with a refiner of renewable diesel will have a consistent price that a business can manage fuel surcharges against diesel. Outside of a contract for volumes, the wholesale rack price of R99 may vary wildly compared to a B5 ULSD fossil fuel diesel prices depending on how high diesel is going for are as well as the CPP and CFP values of a Carbon Credit and Cap at the Rack.

The big unknown to price is how one key importer of R99 will respond to the market without a subsidy. It is the assumption of Star Oilco that California will continue to buy imported R99 without a subsidy for it’s off-road mandated market. If the economics of Neste are such, they can compete and open the floodgates of R99 and this could change. This open flood of product is not expected especially given the economics of Sustainable Aviation Fuel which renewable diesel plants are expected to make more of in 2025.

The Oregon and Washington market will see a flow of new capacity of R99 for retailers mandated to reduce their fossil fuel volumes. US production of R99 is expected to more than compensate by 2026, but 2025 will be a chasm to jump. Chevron, HF Sinclair, Marathon, and Phillips 66 will be procuring and supplying US made biomass based diesel to the Pacific NW for their retail gas station needs. We would expect to see R99 or blends of it sold at parity with branded diesel in the retail market in Oregon.

Commercial sellers of wholesale unbranded diesel will have a tougher time lining up R99 at a price in line with wholesale B5 or B20 ULSD. No doubt with these higher prices we will be seeing an evolution of R20 (20% renewable diesel) as well as blends of biodiesel with renewable diesel available inside the City of Portland for it’s Renewable Fuel Standard as a premium fuel at a competitive price with diesel.

Star Oilco has R99 and R20 blends for commercial customers in the Portland, Oregon area. We also have R99 available for Clark County Washington commercial and municipal fleets. Star Oilco also has biodiesel blends and can support fleets seeking to succeed with it. Call us if you would like to talk about your fuel supply in 2025.

If your fleet has an interest in a consistent and contractual supply of R99 renewable diesel or wants to develop a relationship that prioritizes a 20% of renewable diesel blended to meet Portland’s Renewable Fuel Standard compliance please feel free to reach out to Star Oilco.

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For further reading of news coverage of the Oregon Climate Protection Program please see the following:

KGW8 – Climate Protection Program returns after being struck down by court

KATU2 – Oregon adopts Climate Protection Program to cut fossil fuel pollution by 90% by 2050

Oregon Capital Chronicle – Redo of Oregon program to cap greenhouse gas pollution ready for public review.

The Oregonian – Oregon restores signature Climate Protection Program to cut greenhouse gases.

Central Oregon Daily News – Oregon commission approves redo of landmark climate program after lawsuit derailed it

Oregon Public Broadcasting – Oregon to reinstate ambitious climate program amid divided reactions from industries, environmentalists

US Energy Information Agency: Biofuels Displacing Petroleum on the West Coast

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Our team of fuel experts would be happy to work with you and help you understand how this affects your operations

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May 31, 2024

Every Question We Have Been Asked About Renewable Diesel https://staroilco.net/wp-content/uploads/2024/02/3-star-oilco-portland-or-renewable-diesel-1024x696.jpg 1024 696 Star Oilco Star Oilco //staroilco.net/wp-content/uploads/2022/10/StarOilco-Logo-RGB-C-Lg-Simple.png May 31, 2024 September 5, 2024

Every Question We Have Been Asked About Renewable Diesel

Renewable Diesel Frequently Asked Questions (FAQ)

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.

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.

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.

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

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October 6, 2022

Star Oilco Speaks On Decarbonizing Heavy Duty Trucks https://staroilco.net/wp-content/uploads/2022/10/48-decarbonizing-heavy-duty-trucks-mindful-mobility-1024x768.jpeg 1024 768 Star Oilco Star Oilco //staroilco.net/wp-content/uploads/2022/10/StarOilco-Logo-RGB-C-Lg-Simple.png October 6, 2022 September 12, 2024

Star Oilco Speaks On Decarbonizing Heavy Duty Trucks

Decarbonizing Heavy Duty Fleets By Using B99 Biodiesel.

Name: Star Oilco
Address: 232 NE Middlefield Rd., Portland, OR, 97211, United States
Telephone: 503-283-1256
Price range: $$

Mark Fitz joined the Clean Cities Coalition Mindful Mobility Tech Talk series for their High GHG Reductions webinar. Mark spoke on the benefits of B99 and how fleets can begin decarbonizing their emissions today!
On September 28th, 2022, three representatives were invited to speak on how they are not only saving large amounts of energy but are also having a big impact on reducing greenhouse gas emissions.

B99 Biodiesel reduces CO2 footprint of a 105,500 GVW truck and trailer by more than half at a lower cost than petroleum diesel.

How Can I Utilize B99 or B100 for Decarbonizing My Own Fleet?

Star Oilco uses The Vector System developed by Pittsburgh-based Optimus Technologies. The Vector System allows upgrades for any medium or heavy-duty engine to operate on 100% biodiesel. This is the only EPA-compliant biodiesel engine system and can be installed in as little as 12 hours. Contact Optimus Technologies or reach out to Star Oilco locally to learn more about The Vector System.

Star Oilco’s Field Test

Star Oilco fielded the Optimus Technologies system on our 105,500 GVW truck and trailers. We began with a single Freighliner truck and trailer operating a Cummins ISX as a trial. This truck’s typical route was approximately 305 miles round trip from Portland, Oregon to Grays Harbor, Washington.

Over the last year and a half this truck has performed amazingly well. The only maintenance concern is swapping the fuel filters more regularly with every oil change. Neither drivers nor our Elog system noticed differences in mileage and power. On a few occasions a loss of power was experienced requiring an in between service fuel filter swap.

Follow the links below for more information on B99 Biodiesel and Star Oilco’s field test of the Optimus Technologies System:

B99 Biodiesel As A Heavy Duty Fuel

Biodiesel As A Heavy Duty Low Co2 Solution

This event is part of the Columbia Willamette Clean Cities Coalition’s Mindful Mobility Tech Talk series. A series designed to educate and expand on the evolving trends in fleet technology relevant to fleets seeking to decarbonize their miles traveled.

March 6, 2021

Oregon Legislature proposes an end to petroleum diesel https://staroilco.net/wp-content/uploads/2021/03/57-oregon-legislature-proposes-an-end-to-petroleum-diesel-1024x683.jpg 1024 683 Star Oilco Star Oilco //staroilco.net/wp-content/uploads/2022/10/StarOilco-Logo-RGB-C-Lg-Simple.png March 6, 2021 September 12, 2024

Oregon Legislature proposes an end to petroleum diesel

What are the alternatives to petroleum diesel in Oregon?

If Oregon bans the sale of petroleum diesel, a rapid transition to biofuels such as renewable diesel and biodiesel would happen.

Oregon HB3305 explained

In Oregon, HB3305 is a House Bill proposed by Representative Karin Power to outlaw 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.

Given the media coverage of this law, which no doubt will grow if this bill progresses to hearings. 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?

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. Under current Oregon law all diesel fuel must contain a 5% blend of biodiesel or renewable diesel. 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 would allow to be used by diesel motor vehicles in Oregon if this bill was passed into law?

The two fuels immediately available if this law was passed into law 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 begins Spring 2021). If you fleet wants to trial renewable diesel, Star Oilco can work with you on a loaner tank for a 90 day demonstration of the fuel. 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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February 24, 2021

Do you have questions about Renewable Diesel in Oregon? https://staroilco.net/wp-content/uploads/2021/02/54-do-you-have-questions-about-renewable-diesel-star-oilco-portland-oregon-1024x768.jpeg 1024 768 Star Oilco Star Oilco //staroilco.net/wp-content/uploads/2022/10/StarOilco-Logo-RGB-C-Lg-Simple.png February 24, 2021 September 12, 2024

Do you have questions about Renewable Diesel in Oregon?

Renewable Diesel delivered in Oregon

Renewable Diesel direct to your fleet.

Imagine a superior next generation renewable diesel direct to your fleet.

Star Oilco is delivering R99 Renewable Diesel to fleets now.

Renewable Diesel delivered to your fleet by mobile onsite fueling or in bulk.

Imagine a fuel that is cleaner and drier than your typical diesel fuel bought in Oregon. Now imagine that this dry and clean characteristic means a better performing fleet. A fuel that causes less maintenance and increased performance benefits as it relates to your modern Tier 3 Diesel Emission systems. Fewer DPF (particulate trap) regens and other post engine maintenance issues in your fleet while more power and up time reported by the drivers behind the wheel. Now add to that a more than half reduction in CO2 emissions and Oregon has incentives for the adoption of this fuel because it is a biofuel. A biofuel that outperforms traditional diesel in performance, emissions, and in lifecycle analysis.

That next generation biofuel is here. Renewable Diesel!

Star Oilco can deliver Renewable Diesel to your tank in Oregon and Washington. If you are looking at this fuel we will work hard to make it easy for you regardless of how small or large your fleet. It is immediately available for bulk customers. If you are interested in mobile on-site refueling, wet-hosing, construction job site fueling, or a retail option for the fuel we can work with you as well to make that happen.

Renewable Diesel: A Next Generation low CO2 Diesel Fuel.

This product is available in Oregon and we are excited to make getting this fuel simple. Star Oilco is a proud seller Renewable Diesel product. If decarbonizing your fleet is your goal while reducing the total cost of maintenance on your fleet, Star Oilco is ready to serve your needs.

Renewable Diesel is available from several manufacturers of Renewable Diesel shipped to Oregon, Washington and California. This product being made available given it’s lower than petroleum CO2 emissions meeting the Low Carbon Fuel standards created by California, Oregon, and expected in Washington state.

For more on Renewable Hydrocarbons, please check out the US Department of Energy’s Alternative Fuels Data Center page on the subject.

Call Star Oilco with any questions you may have about Renewable Diesel, Biodiesel, Ethanol or other emerging alternative fuels. We have a track record of making alternative fuels easy for those wanting to use them. Call 503-283-1256 or email OrderDesk@Star Oilco.net and we can get you in conversation with our team about a future fuel available today.

Star Oilco is delivering R99 Renewable Diesel to fleets in bulk and by mobile onsite fueling.

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For more on Renewable Diesel please also see the following:

Renewable Diesel as a major Transportation Fuel in California

Every Question Star Oilco has been asked about Renewable Diesel

Renewable Energy Group’s Ultra Clean Diesel (Renewable Diesel fuel blends)

October 30, 2020

Biodiesel Feedstocks – Sunflower Oil & Tung Oil https://staroilco.net/wp-content/uploads/2020/10/49-biodiesel-feedstocks-sunflower-oil-tung-oil-1024x683.jpg 1024 683 Star Oilco Star Oilco //staroilco.net/wp-content/uploads/2022/10/StarOilco-Logo-RGB-C-Lg-Simple.png October 30, 2020 September 12, 2024

Biodiesel Feedstocks – Sunflower Oil & Tung Oil

We are nearing the end of our journey, as there is only one more blog after this one. If you would like to look back and see all of the feedstocks we have covered start here with our first post. In this post we explore the feedstocks Sunflower Oil and Tung Oil as we continue our look into different types of feedstock that Renewable Energy Group (REG) studied in 2009 in the Feedstock and Biodiesel Characteristics Report.

Sunflower Oil

The Sunflower oil in this project was purchased from Jedwards, International, Inc. The common sunflower scientific name is Helianthus annuus.

First domesticated in the Americas the plant was exported to Europe in the 16^th century and has become a staple as a cooking ingredient. According Wildflower.org the common sunflower prefers full sun and well-drained soil. The plant grows up to 8 feet tall and has coarse hairy stems and leaves. The flowers are bright yellow surrounding a central maroon disk, that as it matures, holds the seeds and produces the oil.

The most known uses for sunflower seeds and its oils include; foods, cooking oils and butters. The pressed seed oil is useful for food and the resulting cake (matter left after the oil is harvested) is commonly used as animal food. One of the more interesting uses for the plant is, that it can produce a natural latex in its leaves. This latex can be used to produce hypoallergenic gloves. The purpose of this post though is to discuss the possibility of biofuel created from sunflower seeds. Biodiesel magazine talks about both the pros and cons for this plant as a feedstock option:

“Because sunflower oil is priced higher than soybean and canola oils, its use as a feedstock for commercial biodiesel refining may be hindered in the U.S. market, according to the National Sunflower Association (NSA). However, there is an interest in the tall golden flowers because the seeds yield about 600 pounds of oil per acre, considerably more than soybeans, which produce a little over 500 pounds per acre.”

Because of the high value of the oil in other areas, using the oil for biodiesel can be cost prohibitive. Higher concentrates of oil per acre can be vital as more efficiency in biofuel production becomes necessary. According to Farm Energy, 15,000 to 25,000 plants per acre can be grown. This means that a small or large farm can use this crop profitably or simply in the production of fuel for that farm.

Tung Oil

The Tung oil from this study was purchased from Sigma-Aldrich Co. The Tung tree, Vernicia fordii, is native to China and Vietnam. This tree can be over 60 feet in height and is deciduous. According to Texas Invasive Species Institute:

“The bark is smooth, thin, and exudes white sap when cut. The leaves are simple, heart-shaped or with three lobes, and 6-10 inches long. The white flowers have 5 petals with red veins, and they bloom before the leaves emerge. The toxic fruits can grow up to 3 inches in diameter and are reddish green when fully developed.”

This tree is valued for its oil from the seeds. Traditionally this oil was used in lamps and even as waterproofing on boats. In more contemporary time this oil is used in varnishes and paint. This value encouraged the importation of this tree. According to Texas Invasive Species Institute there was over 10,000 acres planted in the United States in 1927. Cultivation of this tree has waned in the US after frosts and hurricanes destroyed many of the plantations.

This is one feedstock that isn’t part of the food vs fuel controversy. The Tung tree and its oil is poisons to humans. Even one seed from the fruit can be fatal, with symptoms including slowed breathing, vomiting and diarrhea.

Last article for biodiesel feedstocks was – Soybean Oil & Stillingia Oil

If you would like to learn more about bio-diesel you can check out this post Every Question We Have Been Asked About Biodiesel

June 22, 2020

Biodiesel Feedstocks – Soybean Oil & Stillingia Oil https://staroilco.net/wp-content/uploads/2019/06/86-biodiesel-feedstocks-caster-oil-and-cwg-1024x721.jpg 1024 721 Star Oilco Star Oilco //staroilco.net/wp-content/uploads/2022/10/StarOilco-Logo-RGB-C-Lg-Simple.png June 22, 2020 September 17, 2024

Biodiesel Feedstocks – Soybean Oil & Stillingia Oil

This post covers one of the most common Feedstocks in the US, Soybean Oil. In addition, we are also looking into Stillingia Oil in our deeper dive into the feedstocks that Renewable Energy Group (REG) studied in 2009 in the Feedstock and Biodiesel Characteristics Report. If you would like to learn more you can follow the link to read more here about the feedstocks we have examined in the past.

Soybean Oil

Soybean (Glycine max) is a legume that originated in East Asia. This plant has had a long history of cultivation. Many botanists believe that this bean was first domesticated as early as 7000 BCE in China. It grows well in warm, well-drained sandy soil. According to Encyclopedia Britannica,

“The soybean is an erect branching plant and can reach more than 2 metres (6.5 feet) in height. The self-fertilizing flowers are white or a shade of purple. Seeds can be yellow, green, brown, black, or bicoloured, though most commercial varieties have brown or tan seeds, with one to four seeds per pod.”

The United States has had soybeans as part of its history as far back as 1765. In the 1950’s the US became the world’s largest exporter of soybeans. If you would like to learn a little bit more about how this crop became important to the US check out this link.

This edible bean has a lot of uses. A bean is made up of about 20% oil and 80% meal. According to NC Soybean Producers Association, most soybeans are processed for the oil. After the oil is removed, 3% is used directly in food products with the rest of the meal used for animal feed.

The United Soybean Board breaks down which animals are using soybeans as the protein source.

“The soybean meal fed in the U.S. goes to several segments of animal agriculture.

Poultry eats about 67 percent.
Pigs consume nearly 21 percent.
Beef and dairy cattle use just over 10 percent.
The rest goes to aquatic farming like fish and shrimp, other farm animals and companion animals like horses and pets.”

The oil is then used as food (68%) such as cooking oil – most cooking oils in the US that are listed as vegetable oil is soybean oil. This oil can be turned into biofuel later.

The rest of the oil is used to create biodiesel and other products such as candles, paints and even plastics. This crop is important to much of the farming community in United States. If you would like to learn more there is a plethora of information about this subject on the internet.

Stillingia Oil

The Stillingia Oil from this study comes from the Chinese tallow tree (Triadica sebifera). Common names for this plant include; Florida aspen, grey popcorn tree, candleberry tree or chicken tree. A native plant to Eastern China and Taiwan, while it can be an invasive species in the US. This video from UF / IFAS Center for Aquatic and Invasive Plants talks a little bit about how the plant looks and some of the characteristic of it.

This tree has spectacular fall colors and it loves warm, and moist climates. The tree grows up to 30 to 40 feet and loses its leaves in the winter (deciduous).

There are several uses for this tree, include soap made from the seed’s aril (the extra seed covering that are white and waxy in this plant). Use as a nectar plant for honeybees. (source) In areas with seasons it is ornamental and displays beautiful colors along with being a great shade tree in the summer.

Finally, there is a large potential for biodiesel from the seed Oil. Biodiesel magazine talks about some of the potentials for this feedstock:

As a biodiesel feedstock, both the outer coating and the kernel of the tallow tree seeds are high in oil content, as the seeds contain 45 percent to 60 percent oil. Commercial plantations in other countries typically contain about 160 trees per acre, which are trimmed low for hand harvesting. Yields average 12,500 pounds of seed per acre, which can produce 2,300 pounds of stillingia oil, 2,500 pounds of vegetable tallow, 1,400 pounds of meal and nearly 5,000 pounds of biomass waste. In China, the meal is used as a high-nitrogen fertilizer. Breitenbeck says commercially produced trees average 645 gallons of oil per acre and some experts cite yields as high as 970 gallons per acre.

Since this is an invasive species in the US the benefits and the issues will need to be compared.

Last article for biodiesel feedstocks was – Poultry Fat & Rice Bran Oil

February 7, 2020

Biodiesel Feedstocks – Poultry Fat & Rice Bran Oil https://staroilco.net/wp-content/uploads/2019/06/86-biodiesel-feedstocks-caster-oil-and-cwg-1024x721.jpg 1024 721 Star Oilco Star Oilco //staroilco.net/wp-content/uploads/2022/10/StarOilco-Logo-RGB-C-Lg-Simple.png February 7, 2020 September 12, 2024

Biodiesel Feedstocks – Poultry Fat & Rice Bran Oil

Looking further into biodiesel feedstock we continue with Poultry Fat and Rice Bran Oil in our deeper dive into the feedstocks that Renewable Energy Group (REG) studied in 2009 in the Feedstock and Biodiesel Characteristics Report. If you would like to see more you can read more here about the feedstocks we have examined in the past.

Poultry Fat

Rendering is the process of turning the left over animal products into fat or tallow. After the common parts of the animal are harvested the remaining parts are ground up and cooked. The oil and fat is then separated from the protein solids. Poultry fat, commonly made from chicken, is different from other forms of fat and tallow. It tends to have less saturated fat. According to Farm Energy:

“Beef tallow and pork lard are typically about 40% saturated (sum of myristic, palmitic and stearic acids). Chicken fat is lower at about 30-33%. For comparison, soybean oil is about 14% saturated and canola oil is only 6%. Thus, tallow and lard are usually solid at room temperature and chicken fat, while usually still liquid, is very viscous and nearly solid.”

The high content of saturated fat can be a draw back for biodiesel produced from animal products. Beef Tallow in this study produced B100 (100% biodiesel) with a cloud point of 16° C or 60.8° F. The Poultry Fat B100 in this study had a cloud point of 6.1° C or 42.98° F, in comparison Soybean Oil B100 in the same study was 0.9° C or 33.62° F.

One of the benefits of using animal fats for biodiesel is a higher Cetane number. (Source) “cetane number is a measurement of the quality or performance of diesel fuel. The higher the number, the better the fuel burns within the engine of a vehicle.” Petroleum based fuels have a cetane number between 40 -44, soybean based biodiesel is between 48 – 52 and animal fat based biodiesel can have values over 60. (Source)

Rice Bran Oil

Rice bran oil is a vegetable oil which is greatly available in East Asia countries. It is a byproduct of rice processing, containing about 15-23% oil. The Rice Bran Oil that was used in this study was refined, bleached, deodorized, winterized (RBDW).

Rice bran oil is similar in make up to peanut oil made up of monounsaturated, polyunsaturated, and saturated fatty acids.

While the Oil is this study was considered non-edible, when processed in other ways the oil can be used in cooking and is popular for Asian countries such as Bangladesh, China, India and Japan.

Last article for biodiesel feedstocks was – Palm Oil & Perilla Seed Oil

November 22, 2019

Biodiesel Feedstocks – Palm Oil & Perilla Seed Oil https://staroilco.net/wp-content/uploads/2019/06/86-biodiesel-feedstocks-caster-oil-and-cwg-1024x721.jpg 1024 721 Star Oilco Star Oilco //staroilco.net/wp-content/uploads/2022/10/StarOilco-Logo-RGB-C-Lg-Simple.png November 22, 2019 September 12, 2024

Biodiesel Feedstocks – Palm Oil & Perilla Seed Oil

This deeper look into biodiesel feedstock includes one that is very controversial – palm oil. We will also be covering perilla seed oil as we continue our look into different types of feedstock that Renewable Energy Group (REG) studied in 2009 in the Feedstock and Biodiesel Characteristics Report. Read more about the feedstocks we have examined in the past.

Palm Oil

Palm oil is produced from the fruit of oil palms such as the American oil palm Elaeis oleifera, the maripa palm Attalea maripa, and most commonly the African oil palm Elaeis guineensis which is originally native to the area between Angola and the Gambia. This plant is different than the coconut oil that that comes from Cocos nucifera. (Read here for more information about coconut oil as a feedstock.) The E. guineensis can grow between 60 – 90 feet high with a single stemmed palm tree. Fruits are ovoid-oblong drupes, ¾ inch –2 inches long, tightly packed in large bunches with 1000–3000 fruits (Source).

The natural state of palm oil as a saturated fat, is slightly reddish and semisolid at room temperature. For every 225 lbs. of fruit bunches, typically 50 lbs. of palm oil and 3.5 lbs. of palm kernel oil can be extracted. Based on the picture of the sample, we can assume that this source has been refined, bleached and deodorized to remove the beta-carotene that gives it the reddish color the natural state of palm oil.

Palm oil is edible and is used as a cheap substitute for butter and other vegetable oils. In fact, palm oil is in about half of all packaged products that are sold in supermarket, and not just in the food, but in things like soaps, cosmetics, and detergents. The controversy over palm oil is where it is grown and how the farmland is acquired. The main culprit is the African palm oil tree. It has been introduced and grown in Madagascar, Sri Lanka, Malaysia, Indonesia, Central America, the West Indies and several islands in the Indian and Pacific Oceans.

The problem that arises is rainforests are being cut down and replaced with this profitable crop. The incredible diversity of the rainforest is replace with a single species, and this has led to reductions in animal habitats such as orangutans, elephants, rhinos, and tigers (Source). If you would like to know more follow some of the links that were supplied as sources. As far as green house gases and the reduction of them a recent study by the University of Göttingen investigated the whole life cycle of the greenhouse gases and here are the results (Source):

“The researchers found that using palm oil from first rotation plantations where forests had been cleared to make way for palms actually leads to an increase in greenhouse gas emissions compared to using fossil fuels. However, there is potential for carbon savings in plantations established on degraded land. In addition, emissions could be reduced by introducing longer rotation cycles or new oil palm varieties with a higher yield. “

The other side of this argument is that the production of this oil is a lifeline for some countries. Malaysia and Indonesia alone employ 4.5 million people directly in the industry with millions more depending on palm oil production indirectly for employment (Source). Stopping the use of palm oil would endanger many of these people.

Perilla Oil

Perilla oil comes from the plant Perilla ocymoides, a synonym for the more common name Perilla frutescens. It is native to India and China in the mountainous regions and cultivated in China, Korea, Japan, and India. Introduced varieties of this plant are considered a weed in the United States and go by the common names Chinese basil, wild basil, perilla mint, beefsteak plant, purple perilla, wild coleus, blueweed, Joseph’s coat, and rattlesnake weed. This herb grows easily unattended, but is toxic for cattle and horses.

This annual herb is 1 ft to 6 ft tall with a square stem and green or purple minty smelling leaves. The plant takes about 4 months from germination to start flowering, and the seeds mature about 6 weeks after.

The flowers, leaves, seeds, and sprouts are all used in Japanese, Korean, and Vietnamese foods either as flavoring or a garnish. According to Pl@ant Use:

“Perilla serves as a side dish with rice and as an important ingredient in noodles, baked fish, fried foods, cakes and beverages. The leaves can be easily dried for off-season use. The purple-leaved forms, which contain large amounts of anthocyanins, are used for coloring pickled fruits and vegetables. These forms are also very decorative ornamental plants.”

While mostly used as a food, the plant is also used for an antidote for fish and crab meat allergies in Japan and has some potential as an anti-inflammatory and anti-allergic reagent.

The seeds contain 35-45 percent oil. In addition to being made into biodiesel, this oil is also used for perfumes and sweetening agents.

Last article for biodiesel feedstocks was Moringa oleifera Oil and Neem Oil

July 19, 2019

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Biodiesel Feedstocks – Moringa Oil & Neem Oil

We’re continuing our deeper look into different types of feedstock that Renewable Energy Group (REG) studied in 2009 in the Feedstock and Biodiesel Characteristics Report. This posts two feedstocks are Moringa oleifera Oil and Neem Oil. To see more of the feedstocks we have already covered follow this link to the main page of feedstocks we have examined so far.

Moringa oleifera Oil

Moringa oleifera is a tree with the common names moringa, drumstick tree, horseradish tree and ben oil tree. This tree ranges in height from 15 to 30 feet tall, and is native to India, Africa, Arabia, Southeast Asia, the Pacific and Caribbean islands, South America, and the Philippines. This deciduous tree is fast-growing and drought-resistant. It loves sun and heat and doesn’t tolerate freezing weather. Moringa oleifera is a slender tree with drooping branches, brittle stems and whitish-grey corky bark. It has feathery green to dark-green foliage tripinnate leaves and yellowish-white flowers. The trees usually begin producing about second year about 300 pods, but it can take a few years to get to the 1000 or more pods a good tree can yield.

There are a vast amount of uses for this tree. According to Purdue University, almost every part of the plant has value as a food. The seeds can be eaten like a peanut, the roots can be eaten and taste like horseradish, and the leaves are eaten in salads, curries and used for seasoning.

The plant has other non-food uses include Moringa seeds being pressed for oil. This oil is used in arts and lubricating small and delicate machines, and it clear, sweet and odorless it is edible and is also used in manufacturing perfumes and hair products. The wood can be used to create a blue dye and the bark is used in tanning.

The oil from the seeds contain between 33 and 41 % oil. It is also known as Ben Oil, due to its content of behenic (docosanoic) acid. This oil can be used in the production of biodiesel, (Source) and the remaining seed cake can be used as fertilizer.

Neem Oil

The Neem tree is also known as nimtree, Indian lilac, or margosa tree. The scientific name is Azadirachta indica. This large evergreen tree that is usually 49 to 66 ft tall but can get as big as 130 ft tall. This fast growing tree is found in India, Pakistan, Sri Lanka, Burma, Malaya, Indonesia, Japan, and the tropical regions of Australia. It has long skinny leaves that are dark green in color and produces white fragrant flowers. The flowers produce a smooth olive like fruit. The seed in the center is called the kernel which contain 40-50% of an acrid green to brown colored oil. The oil in the REG study was pure, cold pressed neem oil that was purchased from The Ahimsa Alternative, Inc.

This tree can tolerate high to very high temperatures but does poorly in temperatures below 40^o F. It grows best in dry, sandy well-draining soil. (Source) Neem trees are drought resistant, but begin to lose leaves in prolonged droughts. The tree propagates itself by seeding and in some non-native environments the plant has been classified as a weed.

There are many uses of the Neem tree. The wood is strong and durable, the tree is related to the mahagony family, so furniture and other durable good can be made from the wood. The leaves are dried and used in cupboards as an insect deterrent to prevent insects from eating clothes and rice. The trees oil and products can be found in shampoos, soaps creams, toothpastes and mouthwashes. The young twigs are even used as toothbrushes in rural areas. (Source) The oil extracted from the seeds are used as a natural insecticide, repellent and fungicide. The oil is also used as a lubricant, lamp fuel and can be turned into biodiesel.

Last article for biodiesel feedstocks was Lesquerella Oil & Linseed Oil.

Next Generation Fuels

Why diesel fuel in Oregon may go up in 2025

What are the market forces impacting diesel in Oregon for 2025?

THE OREGON CLIMATE PROTECTION PROGRAM

OREGON CLEAN FUELS PROGRAM

RENEWABLE DIESEL AND BIODIESEL SUPPLY IN OREGON

The 2025 Oregon Fuels Forecast for Oregon predicts a 199+ million gallon need for R99

US BLENDERS TAX CREDIT EXPIRATION IMPACTING OREGON

The Blenders Tax Credit will be replaced with the Producers Tax Credit

THE FEDERAL RFS AND RINS

CONCLUSION

We predict diesel prices to rise in Oregon compared to the US in the first quarter of 2025

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Star Oilco Speaks On Decarbonizing Heavy Duty Trucks

Decarbonizing Heavy Duty Fleets By Using B99 Biodiesel.

B99 Biodiesel reduces CO2 footprint of a 105,500 GVW truck and trailer by more than half at a lower cost than petroleum diesel.

How Can I Utilize B99 or B100 for Decarbonizing My Own Fleet?

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Oregon Legislature proposes an end to petroleum diesel

What are the alternatives to petroleum diesel in Oregon?

If Oregon bans the sale of petroleum diesel, a rapid transition to biofuels such as renewable diesel and biodiesel would happen.

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

News coverage of Oregon HB 3305 is below

What HB 3305 means in the real world?

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

Biodiesel and Renewable Diesel are very different fuels.

What are non-petroleum diesel fuels?

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)

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

What are the fuels HB 3305 would allow to be used by diesel motor vehicles in Oregon if this bill was passed into law?

The two fuels immediately available if this law was passed into law are B99 Biodiesel and R99 Renewable Diesel.

B99 Biodiesel in depth.

R99 Renewable Diesel in depth.

Renewable Diesel from Hydrogenation or Hydrotreating

Renewable Diesel from Fischer Tropsch process.

Where can you get Renewable Diesel in Oregon?

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Biodiesel Feedstocks – Sunflower Oil & Tung Oil

Sunflower Oil

Tung Oil

Biodiesel Feedstocks – Soybean Oil & Stillingia Oil

Soybean Oil

Stillingia Oil

Biodiesel Feedstocks – Poultry Fat & Rice Bran Oil

Poultry Fat

Rice Bran Oil

Biodiesel Feedstocks – Palm Oil & Perilla Seed Oil