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California is All Set to Receive a New Biodiesel Unit From USD Clean Fuels
California is All Set to Receive a New Biodiesel Unit From USD Clean Fuels

California is All Set to Receive a New Biodiesel Unit From USD Clean Fuels

  • 19-Jan-2023 4:43 PM
  • Journalist: Gabreilla Figueroa

USA- The rising demand for cost-effective biofuel and the pressure on the US government to decline its dependency on petroleum-based fuel has resulted in an incline in market prices of Biodiesel in the regional market. To follow the same and improvise the Biodiesel capacity, USD Clean Fuels LLC (USDCF) announced plans to construct a new biofuel terminal with the ability to translate renewable diesel (Biodiesel and ethanol blended biofuel) in California. One of the biggest freight carriers in the US, BNSF Railway, will enable effective delivery of clean fuels to the area from the Midwest and US Gulf Coast and serve the terminal. One of the biggest freight carriers in the US, BNSF Railway, will enable effective delivery of clean fuels to the area from the Midwest and US Gulf Coast and serve the terminal. The operational pace is expected to begin by 2024 in the US market.

For Biodiesel production, the US mainly uses soybean oil, and the minor use palm and other vegetable oils. The overall market prices of soybean oil have inclined for the past two weeks, consequently raising the production cost of Biodiesel. According to the company officials, the Terminal Services Agreements have been signed to supply clients with high-quality finished goods. This agreement will cover the incoming rail shipping of Biodiesel as well as four truck-loading sites with in-line injection capabilities.

It is the second terminal in a network of clean fuel terminals that will be built by USD cleans. Based on strong customer and railroad interest, the routes include California, Oregon, Washington, Canada, and the Texas Gulf Coast terminals. According to the senior vice president of USD Clean Fuels, these terminals will provide the necessary infrastructure to boost the efficiency of downstream logistics for producing Biodiesel and feedstocks.

Biodiesel is a popular alternative that complies with California's aim of reducing greenhouse gas emissions throughout the state by 2030 due to growing political and public pressure to reduce dependency on fossil fuels, reduce and reuse waste streams, and cut greenhouse gas emissions. As per ChemAnalyst, the market prices of Biodiesel are anticipated to follow the northwards momentum owing to the inclining demand in the regional market.

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