Companies continue to cut investment in biodiesel production

Companies around the world continue to cut investments in biofuels projects, while also curtailing research programs and laying off workers.

Chevron Renewable Energy Group’s Ames, Iowa, plant is set to lay off more than 70 Chevron employees beginning June 18. The layoffs come amid uncertainty in the biodiesel industry, with a number of Iowa biodiesel plants idled in the state due to a lack of guidance on state biofuel tax policy and current demand levels.

Chevron REG has closed two of its Midwest biodiesel plants in 2024, citing poor market conditions caused by weak demand for biodiesel under the federal Renewable Fuel Standard.

Also last week, it was reported that Finnish forest industry company UPM plans to halt development of its potential second biomass-to-fuel plant in the port of Rotterdam.

Earlier, it was reported that British oil and gas multinational BP has suspended plans to build a biofuel plant from biomass at its disused Kwinana refinery in Australia. Global production of biodiesel and hydrotreated vegetable oil (HVO) is expected to fall this year as profitability in the sector has fallen significantly.

Tags: biodiesel, biofuel