Chevron REG calls for higher RVO levels

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A biofuel market specialist says demand for diesel fuel produced from biomass is growing.

Paul Nees, general manager of global supply and trading for Chevron Renewable Energy Group, says new capacity is coming online. “To the point where we’re starting to see some margin compression as fuel production has exceeded the requirements of the Renewable Volume Obligations.”

He tells Brownfield that the U.S. Environmental Protection Agency’s RVO levels need to be a focus for industry. “The renewable energy volume mandates are already in place for 2025. But we’ll start the rulemaking process for 2026 and beyond. The EPA will start collecting information and making decisions based on industry input.”

Earlier this year, Chevron REG closed two of its Midwest biodiesel plants, citing weak market conditions resulting from weak biodiesel volumes under the federal Renewable Fuels Standard.

Nees says higher volume targets in 2026 will be critical to the future of biomass diesel production.

AUDIO: Paul Nees, Chevron Renewable Energy Group 7-3-2024