Specialist
Managing Director, UK at Green Fuels Ltd
Agenda
- Supply-demand dynamics for biofuel feedstocks, including UCO (used cooking oil), and price impacts
- Pricing environment and sourcing networks
- Key players’ supply chains, such as Neste (HEL: NESTE), and feedstock-sourcing strategies
- Regulatory environment and impact on feedstock availability and types
Questions
1.
Could you highlight the differences across feedstocks? Where do you expect growth across the classifications of first-, second- and third-generation biofuels?
2.
Feedstocks seem to be a key driver of renewable diesel or biofuel producers’ margins, considering UCOs [used cooking oils] and the ticket and price dynamics. Could you break down the collection and processing costs associated with waste and residues compared to first-generation feedstocks?
3.
You mentioned the UCO quality range and the necessary pre-treatment when collected. What are the main UCO types, where are they being supplied and how does the quality differ across collected UCOs on the market?
4.
How would you assess the supply-demand balance for used waste oils regionally and globally?
5.
Could you break down the supply chain for oil producers, collectors and first purifiers? How does that supply chain connect and which players are significant in it?
6.
How much growth do you expect in the UCO industry? You said that demand is outstripping supply and that Europe is already importing a significant amount of UCO. Is there still supply to be found and sourcing networks that could be utilised better, or is it a very tight market that won’t have a lot of growth?
7.
What’s your outlook for UCO or virgin vegetable oil prices, given the demand? Prices have been fairly high over the past year. How much downward margin pressure might biofuel producers face?
8.
You said you noticed UCO prices rise above those of virgin oils. How much do the support policies in place balance out using UCOs, even if they’re more expensive or more difficult to source?
9.
Neste recently partnered with Kinder Morgan in the US to create a storage hub, but what are the broader infrastructure requirements for UCO collection, storage and transportation?
10.
You said there’s a lot of variation around the quality of collected oil and the required processing. What margins are used waste oil collectors and suppliers making, and what’s driving their margins? Are they dependent on the original oil quality?
11.
We’ve discussed UCO demand growing. Would you say renewable diesel or biofuel producers are considering new ways of increasing lower-quality feedstock in their pre-treatment and processing? How are they working to secure supply chains in the tight market for these oils?
12.
Does SAF [sustainable aviation fuel] have any different feedstock requirements or needs, or is it just a different hydrotreating process within the refining process? SAF is set to have some increase in capacity and production coming online. I believe Shell is planning to produce around two million tonnes by 2025.
13.
Are any regulations impacting the UCO or oil supply chain for biofuels? There is some discussion around banning palm oil usage, but do you expect any regulations to impact that?
14.
There’s a move away from crop-based feedstocks towards waste oils, but it’s a tight market. What are the challenges surrounding the adoption of advanced feedstocks and third generation, with algae as an option? Is this a feasible growth area for biofuel feedstocks?
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