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Flexible feedstock future for biodiesel

The company headquarters
The company headquarters
Like every other industry, biodiesel has been reeling since COVID-19 started engulfing the world. From a biodiesel producer’s perspective, the situation is troubling because fuel demand has been low. The pandemic has also caused supply chain disruptions affecting some feedstocks putting even more pressure on biodiesel margins.
At the same time, a substantial drop in eating out has hit used cooking oil supplies while disruption in meat supply has reduced animal fat supplies.
To make matters more difficult, a sharp drop in corn ethanol demand has affected the output of the by-product corn oil for biodiesel. In Europe, margins for biodiesel from rapeseed were negative in April and May when feedstock prices rose, and biodiesel prices remained flat.
The message is clear - biodiesel producers have to find ways to be more flexible so they can achieve their goals – even in uncertain times.
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