Passage of Washington low-carbon fuel standards law will have impact on soybean oil demand
A recently passed law bringing Washington State’s low-carbon fuel standards in line with California’s, Oregon’s and British Columbia’s, will strengthen demand for Midwestern soybean oil. The law means more biodiesel and renewable diesel will be needed along the West Coast, according to Tom Verry, director of outreach and development at the National Biodiesel Board.
“With Washington coming on-board with the low-carbon fuel standard, we think in five years that’s going to double to 2.5 billion gallons of biodiesel and renewable diesel demand on the West Coast,” Verry told Brownfield Ag News. “That’s what it means.”
With passage of the legislation, every West Coast state as well as British Columbia have emissions restrictions that favor low-carbon fuels.
Biodiesel and renewable diesel can each be made from any vegetable or animal fat, but Verry says half the feedstock is soybean oil.
“Biodiesel and renewable diesel producers both prefer soybean oil as their feedstock to make biodiesel and renewable diesel,” said Verry. “It’s going to mean more and more demand for soybean oil.”
The case for soybean oil as a preferred renewable fuel feedstock is advanced by the fact that fuel producers want it for its consistency, said Verry. “Soybean oil is really the best feedstock out there because a high-quality consistent input gives you a high-quality consistent output,” said Verry. “Soybean oil delivers that.”