Biomass-based diesel shifting from a commodity to premium product
A governing board member for Clean Fuels Alliance America says the growing biodiesel and renewable diesel industry has been bringing added value to farming operations.
Dave Walton, who also raises soybeans, corn, alfalfa, and mixed hay and pastures in eastern Iowa, says the value of soybean oil is driven by biofuels.
“Right now I think it’s around 13% of the value of a soybean is directly due to the biodiesel industry. So, if you think about the prices today, even though they are depressed, what would happen if we didn’t have that 13%? We’d be looking at $1.50 less for every bushel of soybeans.”
He tells Brownfield the biomass-based diesel industry is starting to see a shift from being a commodity to a premium product.
“We actually have customers like PepsiCo, they are trying to decarbonize their trucking fleet and there’s real value that they’re willing to pay for. We’re going to go from being just a commodity in the market, competing with #2 diesel to actually the premium product in the market that’s being demanded by those customers.”
Walton also raises beef cattle, sheep, and cow-calf pairs and runs a small feedlot. He spoke to Brownfield at the recent 2024 Clean Fuels Conference.
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Author: Brent Barnett