Oil Giants Continue Investment in Renewable Diesel, Other Biofuels

SUGAR LAND, Texas, Jan. 31, 2022 (GLOBE NEWSWIRE) -- Researched by Industrial Info Resources (Sugar Land, Texas)--Before the rise of the oil and gas industry, homes were heated by coal or wood, and they were lit by whale oil, lard oil, coal oil, etc. To the great benefit of whales, by the mid-1870s, most of these options were being replaced by petroleum-based kerosene.

Now the clamor for reduction in a fuel's carbon intensity is pushing oil companies to

help with the next energy transition. They're doing this by partnering with renewable energy producers and researchers to speed the process and further reduce the energy intensity involved even in renewables. Carbon intensity is defined by the U. S. Energy Information Administration (EIA) as "The amount of carbon by weight emitted per unit of energy consumed (CO2 emissions/energy)."

If all proposed renewable diesel projects are completed, the EIA reports, the nation's production capacity for the fuel would rise from the .5 billion gallons available in 2020 to about 5 billion gallons per year in 2024. Industrial Info is tracking more than $18 billion worth of renewable diesel projects in the U.S. and Canada.

But it's not just any renewables, says IIR Energy's Vice President of Natural Gas Processing Greg Carlson. "These companies are going after stricter carbon intensity (CI) ratings." Crude oil tops that list, but a previous darling, biodiesel, also has a higher CI rating, but is less engine-friendly, than the newer form called renewable diesel. Although CI includes the amount of carbon released in burning a fuel, it also includes carbon expended all the way up the supply chain, from mining/harvesting to refining.

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Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.

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Brian Ford
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