‘Diesel vs doughnuts’: new biofuel refineries stir up US food industry

‘Diesel vs doughnuts’: new biofuel refineries stir up US food industry

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A search for lower-carbon motor fuel is pitting food companies against the energy industry over tightening supplies of a humble commodity: vegetable oil. 

Fuel refiners including Marathon Petroleum and ExxonMobil are adding “renewable diesel” to their product mix in response to government incentives for cleaner fuels. The raw materials are typically edible oils extracted from plants or animal fat. 

The push has alarmed food companies coping with record prices for many edible oils this year. But the energy sector is just whetting its appetite in the vegetable oil market, according to analysts and public announcements from refining companies. 

“We support renewable fuels and the green agenda, but soyabean oil [prices] have tripled. Our members are worried that they may not be able to buy any oil,” said Robb MacKie, chief executive of the American Bakers Association. The trade group, which counts Krispy Kreme, Bimbo Bakeries USA and Pepperidge Farm as members, recently met officials at the US Environmental Protection Agency to urge lower federal mandates for biofuels. 

Food groups have long opposed biofuels targets in the US, notably over corn ethanol mandates that were sharply raised in 2007. This