Revamps 2025 Issue

is frequently a source of animal feed. Brown grease is recovered from grease traps in large- scale food preparation facilities, plumbing, and by air flotation in waste disposal plants. • Tallow, rendered from beef or mutton, is widely used in the production of biofuels and oleochem- icals. Its high energy content makes it an ideal candidate for renewa- ble energy applications. Tallow is also used in soaps and cosmetics, adding to its competitive market aspect. Technical and inedible tallows offer the most potential for RD and SAF feedstocks.

$ 45.00

CCA price Auction oor price

$ 40.00

$ 35.00

$ 30.00

$25.87

$ 25.00

$25.70

$24.04

$22.21

$ 20.00

$16.68

$19.70

$17.71

$ 15.00

$15.62

$14.53

$13.57

$12.10 $12.73

$ 10.00 $11.34

$ 5.00

Figure 2 California Carbon Allowance pricing trends 5

of supply will be from higher CI, and consequently lower regulatory benefit, first-generation oil crops (edible crops) such as soybean oil, rapeseed or canola oil, and palm oil. Figure 5 projects a scenario for supply and duly notes a likely shortfall.⁸ The renewable feed lipid sources for HEFA co-process- ing contain a multitude of highly variable contaminants that must be removed to acceptable levels for hydroprocessing to assure reasonable catalyst life and performance. Table 2 lists characteristic contaminants and levels, as well as the limiting levels specified by technology providers for com - mon hydroprocessing systems.² Contaminant metals include alkali/alkali earth metals (Na, K, Ca, Mg) that are part of organic acid salts, as well as Fe, B, Si, Zn, and Al. The presence of phospholipids in renewable feeds, compounds similar to triglycerides, other than one fatty acid chain has been substituted by a phos- phate group chain, are an issue in deactivation by phos- phorus even at parts per million levels. Operators of HEFA

• Lard, derived from pigs, is primarily used in food applica- tions. As such, it may not be a likely source for renewable feedstocks. The impact of animal fats’ competitive uses is illus- trated by a European example projected in 2021 by the International Council on Clean Transportation (ICCT). The ICCT estimated that only 1.7 Mt of UCO and 0.75 Mt of ani- mal fats biofuels would be sustainably available from 2030, mainly because of competition with other uses. This would convert into a maximum potential of 1.4% of the projected aviation fuel demand being covered by animal fats via SAF in 2050. The sustainability of livestock farming also factors into the equation. The blunt real-world estimate of the number of pig carcasses required to fuel a trans-Atlantic flight by SAF is nearly 9,000, bringing home the context. Animal fat production is nonetheless slated to grow from some 29 million mt/year currently to 34 million in 2030. Assuming at

least 50% is more highly valued in competitive alternatives, with current HEFA yields from fat, this would provide about 5 million mt solely of SAF in 2030. In short, feedstock sup- ply issues seen in the EU could continue to be the norm if UCO and animal fats/tallows, as low-CI feed sources, are in the highest demand. Due to the demand tightness of these highly desirable feedstocks, even by 2030 a significant amount

Petroleum diesel production Oilseeds crushing

Feedstock Fat/UCO rendering

Conversion Combustion

Transportation CCLUB/GREET ICAO

EPA CARB

Petroleum diesel

Soy

Canola

Carinata

Corn oil

Tallow

UCO

Renewable diesel

Figure 3 Renewable diesel LCA emissions⁶

Revamps 2025