A supply shortage in feedstocks used to produce cleaner road, rail and air transportation fuel could be exacerbated in the European Union (EU), one of the world’s largest markets for biofuels, by growing demand stoked in large part by stricter environmental policies in the region.
The mandated demand for renewables under the latest iteration of the Renewable Energy Directive (RED III) necessitates the production of advanced products such as Renewable Diesel as this enables the suppliers to blend beyond the aforementioned B7 limits.1 A similar situation is occurring for Sustainable Aviation Fuel, where a growing share of jet fuel sales must be made from renewable sources. This continued increase in demand for renewables across all transport sectors, spearheaded by biofuels, is creating a supply crunch in the supply of feedstocks.Â
Higher demand from hydrotreating biofuel producers is creating potential supply…
