Chevron's renewable diesel (RD) plant in Geismar, Louisiana, has resumed output after a fire halted production six weeks ago.
Chevron confirmed today that its 5,000 b/d Geismar renewable fuels plant "has safely resumed operations" after the 19 September fire.
The company does not "anticipate any impact" from the fire on a project to expand the facility's output to 22,000 b/d of renewable diesel, renewable propane and renewable naphtha. Chevron did not provide an updated timeline for finishing the project, which was initially set for completion this year.
US biofuel producers have confronted challenging economics over the last year, as ample supply of renewable fuels used to comply with government blending requirements has helped depress prices of environmental credits and narrowed margins. Chevron in March said it was indefinitely idling biodiesel plants in Wisconsin and Iowa, citing "market conditions."
There is also uncertainty around an Inflation Reduction Act tax credit kicking off in January, which will offer greater federal subsidies to fuels that produce fewer greenhouse gas emissions. But the federal government has yet to clarify how it will calculate the carbon intensities of various fuel production pathways, leaving many biorefineries unsure whether they can economically produce fuel next year. More biodiesel plants, especially those without access to lower-carbon waste feedstocks, could be idled, according to market participants.
