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Originally Posted by RWebb
renewable fuels like cooking or other used oil to diesel is limited, but not a pipe dream
do you know what type of renewable fuel they are claiming to convert to?
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Pipe dream means it is not a viable business model, because there is not enough raw material available to run these plants economically or be in any way profitable.
Marathon petroleum is also talking about converting it's shut-down Martinez ca refinery to renewable fuels, but there just isn't enough feed stocks available to keep these plants running at a rate that will generate enough income to pay for the operation.
Quote:
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At full capacity, Marathon would expect to produce about 736 million gallons per year of renewable fuels – predominately diesel – from such biobased feedstocks as animal fat, soybean oil and corn oil.
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That is a plant that made
half a million gallons of a fuel PER DAY before it shut down. And it was barely profitable at that high rate. That's why it was shut down, it didn't make economical sense to keep it running.
Now they plan to make as much fuel in a year as they used to make in a day and a half?? Won't cover the property tax.
They can fight over used french fry oil, they can fight over soy bean oil, they can fight over a few hundred bbls of algae a day, but the only way they can stay in operation is if the gubmint gives them truck-loads of $$$$ to operate at a loss.
That is in addition to the gubmint mandating the use of renewable diesel in the state at a cost of at least $20/bbl. I'm betting that's what they are counting on.
Now THAT will be an oil company subsidy. Bigtime.
And who pays for that? the consumer.
**** is gonna get 'spensive.
DISCLOSURE: I spent the last couple a years trying to figure out how to make this work.