Renewable refinery capacity additions are gaining momentum
Renewable refinery fuels/drop-in fuels are gaining importance globally as they are relatively environmentally friendly when compared to crude oil-based refined fuels.
As a result, renewable refinery capacity additions are gaining momentum with North America set to witness the highest capacity additions among all the regions, forecasts GlobalData, a data and analytics company.
GlobalData report, “Renewable Refineries New Build and Expansion Projects Analysis by Type, Development Stage, Key Countries, Region and Forecasts, 2022-2026,” reveals that North America is expected to witness a renewable refinery production capacity of 10,942 million gallons per year (mmgy) in 2026, followed by Asia and Europe with 3,641 mmgy and 3,288 mmgy, respectively.
Himani Pant Pandey, Oil and Gas Analyst at GlobalData, commented: “Many countries are taking initiatives to reduce carbon emissions as part of their plans to reduce carbon footprint. Therefore, the demand for renewable refinery fuels such as sustainable aviation fuel (SAF) and renewable diesel is increasing globally, which in turn is resulting in capacity additions, especially in North America, Asia, and Europe.”
The US is expected to witness the highest renewable refinery production capacity additions in North America as well as globally, with 8,324 mmgy capacity expected to be added by 2026 from several planned and announced projects. All the upcoming projects in the US are through standalone renewable refineries.
Panama, Singapore, and Canada are the other key countries where considerable renewable refinery production capacity additions are expected to take place through 2026.
Pandey concluded: “Renewable refinery capacity additions are mainly through standalone refineries while some of the crude refineries are either being converted into fully or partially as renewable refineries to boost renewable fuel production.”