Sustainable Feedstock Contracts

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June 17, 2014

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by Todd A. Taylor (Biodiesel Magazine) If you are a biodiesel producer, you already believe in sustainability and taking care of our natural resources. You already have your renewable fuel standard (RFS) pathway and are making the best biodiesel you can while trying to make the highest profit possible. Sustainability is part of your DNA, but is it part of your feedstock contracts?
Sustainability in biodiesel feedstock contracts means many things. Historically, it has meant simply buying feedstock that allows for the resulting biodiesel to qualify for a renewable identification number (RIN) under the RFS. Increasingly, however, sustainabilty is starting to be looked at more broadly, and biodiesel companies need to be aware of the specifics of what makes a feedstock and fuel sustainable.
When it comes to establishing a pathway for biodiesel, feedstock is key. The “better” the feedstock, the lower the carbon score and, thus, the more you can get paid for your biodiesel. This is especially true in California under the low carbon fuel standard (LCFS) where a lower carbon score means more money.
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Tilling, irrigation, fertilizer use, GMOs, even transportation distances between feedstock supplier and biodiesel plant, are all critical elements, and each can be part of an offtake contract you may be facing in the future. READ MORE

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