Renewable diesel: the economics?

This data-file models the economics of a new renewable diesel plant, converting waste oils into green diesel. It is based on technical papers and cost estimates from past projects.

A strong, c25% IRR is attainable if renewable diesel maintains a $1.0/gallon pricing premium to conventional diesel, as has been historically supported by the blenders tax credit.

The IRR is obliterated and falls to zero if this premium is lost, for example, due to emerging competition from carbon offsets. Please download the model to flex our input assumptions and stress test the economics.