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Page added on October 24, 2017

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California Cars Are Running on Restaurant Grease

Alternative Energy

California’s battle against climate change is being fought more fiercely in fast food restaurants than in Tesla Inc.’s car factory in Fremont.

Seven years after the Golden State began offering credits to producers of low-carbon fuels, cities and companies across California are using diesel brewed from fats and oils to fuel everything from fire trucks to United Parcel Service Inc. delivery vehicles. Now, the value of the credits exceed those from electric vehicles fourfold and are second only to ethanol.

The company that’s benefited most from California’s embrace of renewable diesel is based 6,000 miles away in Helsinki. Neste Oyj started sending tankers of the fuel from its refineries in Singapore and Europe around 2012. It’s now the biggest supplier, according to Ezra Finkin, policy director at the Diesel Technology Forum, a Frederick, Maryland-based advocacy group.

The market “is definitely growing,” Dayne Delahoussaye, Neste’s head of North American public affairs, said in a phone interview from Houston. “Renewable diesel has become very popular with the refining community as a good tool to meet obligations.”

Renewable diesel generated almost 628,000 metric tons of credits in the fourth quarter of last year, up from about 6,000 in 2011, state data show. The credits, which sold at a six-month high of $91.74 per metric ton in early October, are poised to surge as the state accelerates its carbon cuts to meet its goal of reducing emissions to 30-year-old levels by decade’s end. The price will more than double to $215 by 2019, Irvine, California-based Stillwater Associates LLC said in a June report.

Refiners and other purchasers of the credits have paid almost $650 million for them over the past year, costs that are passed onto consumers at the pump.

The credits will add 15 to 20 cents a gallon to the cost of fuel over the next two years, Leigh Noda, senior associate at Stillwater Associates, said in a phone interview. “Ultimately, these programs are designed to subsidize the price of the biofuel suppliers.”

Related: Funding Tesla Angers Automakers That Need Electric Car Credits

Renewable diesel is made from organic materials such as plants and animal fat that are processed in special refineries. Unlike biodiesel, renewable diesel can be used without blending because of its similarity to petroleum diesel. Biodiesel can typically compose only a fifth of the blended fuel without harming engines.

In recent years, cities such as San Francisco, Oakland, and San Diego, as well as Sacramento County, have transitioned to using renewable diesel to power buses, fire engines and other city vehicles. Alphabet Inc.’s shuttle buses in Silicon Valley also burn it, and UPS said two years ago that it would buy 46 million gallons of the fuel to run its fleet of delivery trucks.

California Market

California represents more than half of the U.S. market for the biofuel, Diesel Technology Forum’s Finkin said. The state’s appeal for biofuel producers is built on its Low-Carbon Fuel Standard program, which was first implemented in 2011 with the aim of reducing the carbon intensity of California transportation fuels by 2020 to least 10 percent below 2010 levels.

The program allows oil refiners to buy credits from producers of low-carbon fuels, such as biofuel manufacturers, to offset the carbon intensity of the motor fuels they make.

When the program began, ethanol accounted for almost 80 percent of credits generated, compared with about half by the end of last year, state data show. Renewable diesel was the second-biggest generator of credits, followed by biodiesel, compressed natural gas and electricity for powering vehicles.

A court ruling in 2013 effectively froze carbon reductions for two years until changes were made in how the program was implemented. That means that half the cuts will come in 2018 and 2019. For the first time in the program’s history, the number of banked credits fell in the first quarter, as demand measured by credits needed exceeded supplies generated.

Neste sells about 30 percent of its renewable diesel volumes in North America versus 70 percent in Europe, Juha-Pekka Kekalainen, the company’s vice president of investor relations, said in an email.

The cost of producing renewable diesel, not including the expense of feedstocks such as oils and fats, is about $110 a ton, down from $200 a ton a “few years” back, Kekalainen said.

bloomberg



11 Comments on "California Cars Are Running on Restaurant Grease"

  1. Mick on Tue, 24th Oct 2017 7:48 am 

    Cool so the more fries and chicken nuggets I order the less conventional oil we need . Problem solved

  2. fmr-paultard on Tue, 24th Oct 2017 8:35 am 

    i’m not for virtual farming like they do in the phils and neither i’m a permacultist because it’s a fraud trying to get women back into traditional roles. lioness hunt lion kings eat. the idea that you can negotiate with nature through some esoteric permaculture thinking is dumb. there’s no negotiation with nature. water is natural and it gets to whereever it wants to do destruction.

    i’m not for industrial ag either but it’s the best we can do currently. i think it needs to use less energy and chemicals. i want it goes more toward direction of manufcturing because it’s a human domain and we control the variables.

    for example your crops may be perfect but then a quick freeze destroys everything. permacultists would like you to believe that their esoteric design will prevent this like local climate or whatever.

    if it’s manufactured then it’d be shield from the elements/nature.

    i want ag to lean more toward manufacturing and lazy man farming if at all possible.

    i want to get it to a stage where we combine genetic engineering and manufacturing. like how differnet plants are rich in differnet minerals …i think we should fabricate deep roots and use osmosis or capillary actions to collect these nutrients. then we use them and LED to grow plant cells in the ag manufacturing factory. that’s all to it.

    i love everyone even the permacultists. if they’re wrong they’re wrong. i don’t want them to convert to muslim and disguise themelves when they go shooping for industrial ag. products.

    but above all i want women to improve their lives by doing the killing. i don’t want to maintain the existing transportation infrastructure. if i have any say it would be like pneumatic tubes or hyperloop and i’d have to say only women will enjoy transportation.

    this puts the impetus on them as to whom they want to mate with. i don’t score but i’m brave. i don’t fear rejection. i bank on my idea of loving women will they reward me handsomely. if they don’t it’s not a big deal. not everybody has to be winners. the world is not all the same. there are supertards and there are regular tards like myself.

    that’s my manifesto

  3. fmr-paultard on Tue, 24th Oct 2017 8:41 am 

    i thanks sis and his words to uppertards that let me stay. i was banned left and right until i complained that this site censored diversed opinions and promote SENTPs supremacist extremist nazi tard preachers. When i started it was a toxic mess. it was radio eurotard and aswang media 24/7/365. i said i want to destroy alt-tard media and that’s always been teh goal.

  4. fmr-paultard on Tue, 24th Oct 2017 8:46 am 

    alt tard media done tons of damages to me. lack of fluoride destroyed my teeth! and then paultardism destroyed my bank account with large holding in gold.

    i hate alt-tard media. they’re preachers and they should be eliminated like how we drone extremist isis preachers.

    that’s why i’m urging President Trump to grab everything else his heart desires but not the bumpski.

    But he’s boss and he can do whatever. if he puts a limitation on 2A then 1ST also have limitations. i’ll work either way. limitation on 1ST means no alt-tard media and no SENTPs. SENTPs traffic took a dive and disappeared from polite media intardweb. SENTPs will be tagged for physical elimination soon, I think.

  5. fmr-paultard on Tue, 24th Oct 2017 8:53 am 

    at some point backlash will be against alt tard media and SENTPs and all the tards on the intarwebs will team up with govt to extermiate SENPTs and alt-tard media.

    There’s already labeling of ZH as fake news and that’s good. it’s fake when lazy alt-tarders adn SENTPs are not open to scrutiny and criticism.

    How many videos on youtube telling you about the glorious prepping and farming and permacultist design? TONS

    How many document their failures? NONEXISTENCE.

    Donald Knuth documented his bugs you can’t say that about alt-tard media

  6. Apneaman on Tue, 24th Oct 2017 10:46 am 

    Records fall across region in SoCal heat wave; triple-digit temperatures forecast for World Series

    http://www.latimes.com/local/lanow/la-me-heat-wave-los-angeles-20171023-story.html

    Triple-digit October temps break heat records in SoCal

    http://abc7.com/weather/triple-digit-october-temps-break-heat-records-in-socal/2559644/

  7. Apneaman on Tue, 24th Oct 2017 11:05 am 

    For the past five years, global September temperature was more than 1°C warmer than the 1880-1910 baseline. This has never happened before.

    https://twitter.com/rahmstorf/status/921710865266675712

  8. rockman on Tue, 24th Oct 2017 1:01 pm 

    “The program allows oil refiners to buy credits from producers of low-carbon fuels, such as biofuel manufacturers, to offset the carbon intensity of the motor fuels they make.” IOW it allows the refineries to produce more petroleum based motor fuels which explains why such consumption has increased in the last few years. Not as much as if those biofuels didn’t add to the mix but still an increase. So CA still contributing the problem but not as much.

  9. Anonymouse1 on Tue, 24th Oct 2017 4:25 pm 

    California Cars Are *NOT* Running on Restaurant Grease.

    Fixed it for you jewberg.

    Honest, reality-based header

    California Cars Are Running on fossil-fuels (like they have for the last century).

  10. makati1 on Tue, 24th Oct 2017 6:47 pm 

    Bloomberg, purveyors of fantasy news.

    15,000,000+ cars in California today. Few, if any run on used cooking oil. Then there are the tens of thousands of truck, buses and other vehicles, most of which run on diesel, not McDonalds grease. Propaganda for the renewables crowd.

    BTW: Michael Bloomberg, a Jew, owns 88% of Bloomberg, was mayor of NYC on 9/11, prevented emergency help from getting to the twin towers site after, and supported the Iraq war.

    https://en.wikipedia.org/wiki/Michael_Bloomberg

  11. Sissyfuss on Tue, 24th Oct 2017 8:33 pm 

    Don’t forget, fmrlatter. With a California fillup you can get fries with that.

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