The state is a magnet for clean fuels thanks to its Low Carbon Fuel Standard program, which awards valuable credits for products sold there. Renewable diesel, a like-for-like replacement for petroleum-based diesel, generates about a third of all credits and now makes up almost a quarter of California’s diesel consumption. Biodiesel accounts for a further 8%.
The jump in supply over the three quarters is likely due in large part to Marathon Petroleum’s new Dickinson facility, which began operations in late 2020 and ramped up during 2021. BloombergNEF expects production to continue to rise as many companies have projects in the pipeline, including Phillips 66 and HollyFrontier. READ MORE
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