oils and animal fats , greases etc . which are then hydrotreated at a high temperature . The outcome is a colourless and odourless fuel of an even quality that has an identical chemical composition to fossil diesel .
This differs from FAME-based biodiesel , which is produced by esterifying vegetable oils or fats .
As renewable diesel is processed in a similar way to petroleum diesel , it is chemically the same , meaning : 1 . Because it ’ s hydrogenated , renewable diesel doesn ’ t contain oxygen and , as a result , does not present the same issues that FAME biodiesel does with regard to freezing temperatures ( CFPP @ -40 ° C ) and storage stability ( due to oxidation )
2 . The hydrogenation process results in renewable diesel burning cleaner than biodiesel ( Cetane No . @ 70 + cf . 51-65 ).
3 . Because it has the same chemical structure as petroleum diesel , renewable diesel can be used in engines that are designed to run on conventional diesel fuel , with no blending required , and is , therefore , an ideal drop-in fuel .
Neste ( Finland ) is the world ’ s largest producer of renewable diesel ( HVO ), from waste and residues – around 3 million mt / year from four plants – two in Finland ( one located at its Poorvo oil refinery ), one in Rotterdam and one in Singapore . The production process also makes available quantities of biojet and renewable petrol .
Preem ( Sweden ) is also a major producer , with its ‘ Evolution ’ product , based on tall oil as a feedstock .
Bio-refineries , converted from former oil refineries , in France and Italy are also large HVO producers .
In France , Total has converted its former La Mede ( in Provence ) oil refinery in to a bio-refinery with a capacity ( commenced production last year ) to produce 500,000 tonnes / year of HVO , using as feedstocks 60-70 % sustainable vegetable oils and 30-40 % treated waste ( UCO , residues , etc .). The company plans to convert its Grandpuits ( near Paris ) oil refinery to a bio-refinery , producing 400,000 mt / year of renewable fuels , including 170,000 mt / year of HVO , commencing in 2024 .
In Italy , ENI has converted two former oil refineries , at Port Maghera ( Venice ) and Gela ( Sicily ) into bio-refineries . The former started production , of 350,000 tonnes / year of HVO , in 2014 , which will be expanded to 600,000 tonnes this year . The Gela plant started production in 2019 and can process up to 720,000 tonnes annually of used vegetable oil ,
frying oil , fats , algae and waste by-products .
There are a number of planned conversions of oil refineries in to bio-refineries in the USA , the largest of which is the Phillips 66 Rodeo , California plant , which , when commissioned in 2024 , will be the world ’ s largest bio-refinery , with an annual capacity of 2 million mt , of which 70 % will comprise renewable diesel , 20 % renewable jet fuel and 10 % renewable petrol .
Co-processing is another potential supply source ; the Phillips 66 Humber refinery has been producing circa 50,000 mt / year since 2018 , using waste oil and a new UCO module is being added to the plant enabling expansion to 150,000 mt / year this year , with further expansion plans to 250,000 mt / year in 2024 .
Biojet : The Scandinavian refiners , Neste and Preem , are also in the vanguard for the production and sale of biojet or sustainable aviation fuel ( SAF ).
Neste currently produces 100,000 mt / year of renewable jet fuel , which will be expanded to 1 million mt in 2022 and 1.5 million mt in 2023 . The fuel is already sold through partnership with Air BP to deliver SAF to customers in Sweden and France . In addition , Lufthansa and KLM use the renewable product , blended 50 / 50 with Jet A-1 , continuously on flights departing from Frankfurt and Schiphol Airport . The company recently announced entering into a strategic partnership with Avfuel Corporation to create an efficient , continuous supply of SAF in the United States .
Preem and SAS have signed a letter of intent to produce renewable aviation fuel . SAS is seeking to replace current Jet A-1 volumes for domestic routes with biojet by 2030 . The production unit at the company ’ s Gothenburg oil refinery is expected to start up by end 2022 , with an annual biojet capacity of circa 250,000 mt .
Perhaps the biggest impetus to more widespread adoption of biojet will result from countries introducing mandates . For example , Spain has already done so – at 2 % in 2025 . The UK intends to include an , as yet unspecified , requirement . A major challenge , however , will be around the feasibility of ‘ scaling up ’ production of the product . The global Jet A-1 market requires circa 350 million mt / year of fuel ( 2019 out-turn – with 2020 expected to be 25-30 % lower ).
E-Fuels : E-fuels or synthetic fuels are manufactured from renewable energy . Hydrogen is produced using renewable electricity and then combined with carbon dioxide , e . g . from industrial exhaust gases or from the air , to form a hydrocarbon with zero net greenhouse gas emissions . The resultant products are not , technically , different from their fossil fuel counterparts , so can be used as ‘ drop-in ’ fuels .
Repsol is planning to develop one of the world ’ s largest synthetic fuel plants in Spain using , as feedstocks , CO2 from its Bilbao refinery and green hydrogen from a new plant powered entirely by renewables , to produce a range of e-fuels that can be used in cars , trucks , aviation , etc . The facility is expected to be fully operational sometime in 2024 .
The major obstacles to widespread adoption are production costs and availability of sufficient renewable energy on a cost-effective basis . It is estimated that unit production costs need to be reduced by circa 75-80 % to compete with fossil fuels .
The future ‘ trajectory ’ of the adoption of renewable liquid fuels in the transport sector is inextricably linked to the pace of the transition away from the internal combustion engine in surface transport and from jet propulsion in aviation ( the latter being a much longer transition ). This , in turn , will determine the measure of the incentive and attendant urgency to pursue the required ‘ scaling up ’ of bio-refining and co-processing . One way or another , these fuels constitute one of numerous components of the suite of solutions that must be pursued to address the wider de-carbonisation challenge .
As a well-known slogan reminds us , ‘ every little helps ’!
Fuel Oil News | March 2021 25