Producing renewable fuels - a silver lining for oil refineries

Recent developments in biofuels legislation and investment are focused on renewable fuels such as sustainable aviation fuel (SAF) and renewable diesel (HVO) which are produced from waste oils and fats, as well as other residues and by-products. The integration of renewable fuel production within existing fossil fuel refineries presents a significant opportunity to advance sustainable energy goals while leveraging established infrastructure. We expect renewable fuels margins to be many-fold better than fossil fuel refinery margins in the longer term. So, refiners can also improve their competitiveness by producing renewable fuels. Besides improving margins, renewable fuels will also help improve carbon competitiveness of refiners. The biggest challenge for biofuel expansion will remain feedstock availability. Securing long-term access to sufficient waste feedstock will be an increasingly crucial part of investment success in the biofuels space.