Several industrial procedures are used to create renewable diesel, often known as green diesel or hydrotreated vegetable oil (HVO). The most often used method is called hydro processing or hydrotreating. In a crude oil refinery, the process of hydrotreating crude oil is similar to that of "cracking" it into gasoline, diesel, and other petroleum products. As a result, facilities for producing renewable diesel are progressively converting portions of crude oil refineries or entire refineries. Some are brand-new refinery buildings. All technologies have the ability to transition between refining oils and crude oil, as well as organic fats, if the situation warrants it.
North America Renewable Diesel Market Driving Factors and Challenges
Driving Factors- Government initiatives to cut carbon emissions and promote sustainability are a key driver of the renewable diesel market's expansion. Globally, a lot of nations have established goals to cut their emissions of greenhouse gases, and one important tool for achieving these targets is renewable diesel. Governments are providing a variety of financial incentives, such as tax credits, grants, and subsidies for the production and use of renewable diesel, in order to assist the expansion of the renewable diesel business. Furthermore, a number of governments are putting targets or regulations in place for the use of renewable diesel in many industries, including transportation.
Challenges- The cost and availability of feedstock are two significant factors impeding the growth of the renewable diesel market. Large volumes of organic resources, such as leftover cooking oil, animal fats, and other vegetable oils, are needed to produce sustainable diesel. These resources may not always be readily available, especially in some areas or markets, which can make it challenging for businesses to increase production volumes. Furthermore, supply and demand can affect feedstock costs, which can have an effect on how profitable it is to produce renewable diesel. Renewable diesel may find it challenging to compete in the market if feedstock costs are sometimes more than those of conventional diesel.
Impact of COVID-19 on North America Renewable Diesel Market
COVID-19 dealt the market for renewable diesel a mixed bag of blows. Sales of renewable diesel were negatively impacted by travel bans and lockdowns, which severely reduced demand for all transportation fuels, including diesel. Renewable diesel becomes less competitive as a result of falling crude oil prices. Still, the pandemic's emphasis on sustainability has brought attention back to emissions reduction, which may eventually help renewable diesel as demand rises and environmental concerns gain hold.
North America Renewable Diesel Market Key Players:
The market study provides market data by competitive landscape, revenue analysis, market segments and detailed analysis of key market players such as Aemetis, Inc., Chevron Group (Renewable Energy Group), Gevo, Inc., Marathon Petroleum Corporation, Neste Oyj, PBF Energy Inc., Phillips 66, and Valero Energy Corporation, Others.
North America Renewable Diesel Market Segmentation:
By Type: Based on the Type, North America Renewable Diesel Market is segmented as; Lipids, Cellulosic Biomass.
By Application: Based on the Application, North America Renewable Diesel Market is segmented as; Locomotive, Ships, Power Plant, Truck, Others.
By Feedstocks: Based on the Feedstocks, North America Renewable Diesel Market is segmented as; Waste Oils, Vegetable Oils.
By Region: This research also includes data for United States, Mexico, Canada, Rest of North America.
This study also encompasses various drivers and restraining factors of this market for the forecast period. Various growth opportunities are also discussed in the report.