In Tennessee, MarketWatch reports Delek U.S. Holdings announced that it idled its three biodiesel plants in Arkansas, Texas, and Mississippi during the second quarter of 2024 due to a significant downturn in the biodiesel market. This decision led to a $22.1 million impairment for the Tennessee-based fuels producer.
The three plants, which collectively have a production capacity of up to 40 million gallons per year, utilize various feedstocks, including used cooking oil, poultry fat, beef tallow, choice white grease, and vegetable oils. Delek’s decision to pause operations underscores the challenges faced by the biodiesel sector amid fluctuating market conditions.
Additionally, Delek welcomed a ruling from the D.C. Circuit Court on July 26, which found the EPA’s blanket denial of Renewable Fuel Standard compliance exemptions in 2022 to be improper. This ruling mandates the EPA to reconsider several exemption requests from small refiners. Delek’s President and CEO, Avigal Soreq, expressed approval of the court’s decision, highlighting the financial burden of RFS compliance, which cost the company approximately $300 million from 2018 to 2020.
Tags: Delek U.S. Holdings, Tennessee
Category: Fuels
