# Refiners start to add renewable diesel capacity, seen as cost-cutting move

> Refiners including HollyFrontier and CVR Energy are adding renewable diesel production to cut costs at older refineries and offset blending compliance costs. Only about 1.3 million barrels of renewable diesel were produced in 2019, a small share of diesel output. Federal and state incentives, including a $1 per gallon blender's credit that expires in 2022, drive investment.

- Date: 2020-06-24 · published 2020-06-24T12:00:00.000Z
- Category: policy · region US · magnitude low
- Page: https://feedsoft.ai/events/52478-refiners-start-to-add-renewable-diesel-capacity-seen-as-cost-cutting-move
- Commodities: [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

Growing renewable diesel output would pull more fats and oils into fuel production, supporting vegetable oil prices. Logistical limits may slow this demand growth.

## Read by commodity

- SBO: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SBO | 2020-10-04 | [U.S. oil refiners look to leapfrog Canadians in making renewable diesel](https://feedsoft.ai/events/50523-u-s-oil-refiners-look-to-leapfrog-canadians-in-making-renewable-diesel.md) | +6.9% | +5.2% |
| SBO | 2020-02-10 | [Regulations to drive up U.S renewable diesel capacity through 2025 - ADI Analytics](https://feedsoft.ai/events/54469-regulations-to-drive-up-u-s-renewable-diesel-capacity-through-2025-adi-analytics.md) | -1.3% | -11.8% |
| SBO | 2020-06-01 | [HollyFrontier to convert oil refinery into renewable diesel plant](https://feedsoft.ai/events/52476-hollyfrontier-to-convert-oil-refinery-into-renewable-diesel-plant.md) | +2.8% | -0.7% |
| SBO | 2020-11-04 | [Evolve or die: US refiners grasp renewables lifeline to stay viable](https://feedsoft.ai/events/50025-evolve-or-die-us-refiners-grasp-renewables-lifeline-to-stay-viable.md) | +6.7% | +10.9% |
| SBO | 2022-11-10 | [CHS sees 'bullish' demand in soybean oil, citing renewable diesel](https://feedsoft.ai/events/38751-chs-sees-bullish-demand-in-soybean-oil-citing-renewable-diesel.md) | -1.8% | -13.0% |

## Sources

- hydrocarbonprocessing.com: https://hydrocarbonprocessing.com/news/2020/06/refiners-start-to-add-renewable-diesel-capacity-seen-as-cost-cutting-move/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.