Renewable Diesel (or HVO, Hydrotreated Vegetable Oil)
Renewable Diesel originated from vegetable oils is one of the areas of interest and work of NextChem. The Hydrotreated Vegetable Oil (HVO) production has been developing rapidly and the high demand needs technological solutions for the implementation of production facilities.
We are working on High Efficiency Pretreatment technologies of 2G raw material feedstocks (tall oil, acid oils, UCO, Greases, others). NextChem has a partnership ongoing with the Kansas-based Saola Energy to license in the international market a technology for the production of Renewable Diesel (HVO) from vegetable oils and residual fats. Saola Energy’s patented technology consists of a hydrotreatment step followed by isomerization to produce high-quality Renewable Diesel fuel from oils and residual fats.
NextChem is the licensor worldwide and can provide clients with Engineering, Procurement and Construction services and training to ensure successful deployment. The technology can process at industrial scale a wide range of feedstocks with a modularized approach, conceived for capacities as low as 10 million gallons per year (approximately 30.000 ton/year), making it ideal for both smaller bolt-on facilities with access to a limited supply of captive feedstock and larger standalone plants that can aggregate larger amounts of raw materials.
NEXTCHEM and SAOLA ENERGY have joined forces to offer a Renewable Diesel technology that can be scaled to the supply chains of our customers, allowing them to capture the full market value of their feedstock. The key benefits of our technology are modularity, flexibility in scale and feedstock, as well as seamless co-location.
Renewable Diesel is the fastest growing segment of the biofuels sector. It is creating enormous economic value for industry players. However, small and mid-size companies that have only captive or regional access to FOGs (Fats Oils and Greases) are not capitalizing on the value of their feedstock, thus leaving it to large players downstream. These include fuel ethanol companies, renderers and other FOG recyclers. Our offering is economically attractive and enables these industry players to participate in the market for second generation renewable fuels. As an example, co-locating our technology with fuel ethanol plants to process their residual, inedible oil to renewable diesel improves the profitability of these operations and diversifies their business.
In the picture: the East Kansas Agri Energy plant using Saola Energy Renewable Diesel Technology
Saola Energy’s patented technology consists of a hydrotreatment step followed by isomerization to produce high-quality Renewable Diesel fuel from oils and residual fats. Hydrogen and fats, oils, or greases are the feed streams into the plant. Renewable diesel, fuel gas, and naphtha are produced. NextChem will be the licensor of the combined technology and will provide clients with Engineering, Procurement, Construction services and training to ensure successful deployment of the technology.
Renewable diesel is a drop-in fuel, chemically indistinguishable from diesel produced in a petroleum refinery. It runs in all diesel engines with no blending limits or modifications to infrastructure. This allows for easy marketing and earns a premium in the range of $1/gal over biodiesel. The renewable diesel produced will also be eligible for capture D4 RINs, blender’s tax credits and additional value in Low Carbon Fuel Standard markets. Our Renewable Diesel technology also opens up the opportunity to produce Renewable Jet Fuel, a sizeable and economically attractive market with limited options to displace petroleum use.
Finally, the use of Renewable Diesel reduces greenhouse-gas emissions. Lifecycle analyses for Renewable Diesel pathways from different feedstock are well established. The use of waste vegetable oils and residual fats delivers the best environmental performance with a reduction in the emissions of greenhouse-gas of up to 75%, when compared with fossil fuels.