US Renewable Fuel Maker Defends Used Cooking Oil From China

May 15, 2024 | blog

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(Bloomberg) — Darling Ingredients Inc., a significant US producer of renewable diesel, defended imports of used cooking oil as a feedstock to provide climate-friendly fuels.

The US has been flooded with used cooking oil — or UCO — from China, eroding earnings for corporations that crush soybeans to make renewable diesel and sustainable aviation gasoline. The improve has stirred hypothesis that some imports is probably not genuine and as an alternative are blended with recent vegetable oils, doubtlessly undermining US biofuel legal guidelines. A US soybean commerce group is asking for elevated tariffs on Chinese UCO. 

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Chinese imports are “a legitimate source of used cooking oil,” Darling Chief Executive Officer Randall Stuewe mentioned, noting that there are 12.6 million eating places in China and solely 700,000 within the US.

“That doesn’t mean there aren’t some bad actors out there, but at the end of the day there are legitimate suppliers,” Stuewe mentioned on the BMO Global Farm to Market convention in New York.

Read More: Suspicions of Fake China Cooking Oil Alarm US Biofuel Industry

Darling, a meals ingredient vendor, produces renewable diesel via its Diamond Green Diesel partnership with Valero Energy Corp. Stuewe mentioned the corporate hasn’t come out in opposition to UCO imports as a result of the corporate operates on many fronts, together with importing used cooking oil.  

“The reality is that it is all legitimate and it is the lowest carbon intensity feedstock in the world,” he mentioned.

The CEO additionally mentioned he sees sturdy demand for sustainable aviation gasoline. “Ultimately, the margins are coming back into where we thought they would and ultimately, we’re oversubscribed,” Stuewe mentioned. He added that Diamond Green’s first SAF plant below building in Port Arthur, Texas, is near being accomplished.

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