Viewpoint: Refined vegoils to feed into 2022 RD supply

Viewpoint: Refined vegoils to feed into 2022 RD supply

Houston, 30 December (Argus) — The feedstock slate for nearly half of total current and announced renewable diesel (RD) plant capacity will require refined vegetable oils through mid-2022 or later, which could push refined/bleached/deodorized (RBD) soybean oil prices to retest recent highs.

Of the total 6.9bn USG/yr (450,100 b/d) of current and announced US renewable diesel capacity, 41pc will lack pretreatment units (PTUs) until mid-2022 or after, creating more demand for refined vegetable oils, of which RBD is the most widely used.

Renewable diesel facilities lacking a PTU are unable to process lower-quality feedstocks like used cooking oil (UCO), distillers corn oil (DCO) and tallows due to higher levels of impurities. So those lacking PTUs have to depend on refined feedstocks like RBD soybean oil and refined canola oil to produce renewable diesel.