Biodiesel’s evolution in a changing renewable fuels market

HVO and SAF have led headlines in recent years, fostering a boom in renewable fuels reminiscent of the biodiesel boom of the early 2000s. In many ways, the biodiesel and ethanol industries paved a path for HVO, SAF and other next generation biofuels to find quick success.

Governmental regulations, subsidies and incentives have provided a crucial driving force for biofuels producers to develop new projects and find ways to increase capacities. The increased focus on HVO and SAF has put pressure on biodiesel producers as they compete for the same feedstocks.

In certain regions, however, biodiesel has maintained a stronghold. In Brazil, for example, biodiesel is a very strong market. Increases in blending mandates have stimulated investment in new plants and significant capacity expansion. As the third largest producer of biodiesel globally, and with double-digit production increases in recent years, there is an upward trajectory in the industry with significant momentum to continue expanding biodiesel production. This combination of factors seems to have overshadowed investment in HVO and SAF in this region.

Biodiesel technology has...