InterviewHigh diesel costs may spark renewables

The American Automobile Association (AAA) said on Thursday the average retail price for diesel fuel was 402.20 cents/gal.

The supply of gasoline imported from Europe has also tightened.

European refiners normally send gasoline to North America for the US summer driving season. However, softer US gasoline markets has deprived European refiners of an economic outlet to dispose of surplus gasoline output, the EIA said.

Despite the benefits of a diesel-powered vehicle over a gasoline-powered vehicle, such as increased fuel-efficiency and a lessened environmental impact, Hodge said motorists will only look at the price at the pump.

Those looking to alleviate price pressure at the pump may look to renewable diesel, he said.

The difference between what is commonly referred to biodiesel and lesser-known renewable diesel is in the process.

Renewable diesel can used biomass as a feedstock but utilizes thermal depolymerization, a heat process, while biodiesel is an esterification process using vegetable oils and fats.

“The higher the diesel prices, the more likely renewable diesel will be economic and attractive,” Hodge said.

Additional reporting by Judith Taylor

By: Steven McGinn
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