As environmental concerns grow, more people are looking for renewable energy sources to reduce the harmful effects of climate change. Some businesses are switching to solar or wind energy to help sustain their operations. Still, many companies rely on standard diesel fuel to power their machinery or backup equipment.
Renewable diesel fuel is a simple and environmentally friendly solution that can help you stay in operation during a power outage. Learn more about green diesel and how it can benefit your business.
Renewable diesel, also known as hydrotreated vegetable oil (HVO), has a nearly identical chemical structure to petroleum diesel but doesn’t rely on fossil fuels. Like biodiesel, it repurposes animal fat and oils from plants like soybeans and canola to make fuel.
Without its dependency on fossil fuels, renewable diesel offers a clean energy source, reducing the release of carbon into the atmosphere. The lower emissions and strong performance of this green diesel provide diverse fuel options for businesses.
Renewable diesel has unique characteristics from other fuels, particularly petroleum diesel and biodiesel. Here’s how they differ.
While petroleum and renewable diesel share the same chemical structures, renewable diesel is a cleaner form of fuel that releases less carbon when burned. Since the chemical makeup of renewable and petroleum diesel is the same, you can use renewable diesel in engines that run on traditional diesel blending.
The presence of oxygen in biodiesel can attract hydrogen atoms, creating water that can freeze in colder climates. The renewable diesel production process removes oxygen, making it suitable for environments where biofuel would freeze.
The production of renewable diesel is similar to the process of petroleum diesel, but with specific steps that make it a cleaner energy source. Discover how sustainable diesel is made:
Renewable diesel’s main advantage is that it drastically reduces carbon emissions compared to petroleum diesel. Fewer carbon emissions help keep the atmosphere intact and limit the effects of climate change. Reducing your emissions also helps improve the air quality in your area.
In addition to lower emissions, renewable diesel offers several benefits:
Switching to renewable diesel can also qualify businesses for the federal biodiesel tax credit (BTC). The BTC applies to biodiesel as renewable identification numbers (RINs) do to renewable diesel, offsetting those fuels’ higher costs to encourage greener energy consumption. All biodiesel and renewable diesel products that meet ASTM standards qualify for the $1.00 BTC tax credit per gallon and businesses can deduct the tax credit from their overall tax liability.
Some states also have incentives for businesses that switch to renewable diesel.
The price of renewable diesel varies by location due to availability and distribution costs. However, federal incentives like the BTC and RINs help offset the costs and make the switch to renewable diesel a worthwhile investment. Renewable diesel requires less maintenance than other types of fuel, which can help reduce costs for business owners.
Renewable diesel is relatively new in the market and starting to emerge as a popular form of renewable fuel. As renewable diesel grows in popularity, states are more likely to adopt incentives to help reduce renewable fuel costs for businesses. Several states, including California, offer additional savings through low carbon fuel standard (LCFS) credits.
More and more states are looking to offer tax incentives to businesses that switch to clean energy like renewable diesel. The potential for these incentives and the existing federal tax credits make switching to renewable diesel an attractive option for many companies.
As the market for renewable diesel grows, its availability is growing as well. Many fuel suppliers are starting to offer renewable diesel as part of their services in response to businesses looking for ways to reduce their carbon footprint.
If you’re looking to switch to renewable diesel, consider your local supplier. Foster Fuels is one of Virginia’s leading wholesale fuel distributors, with a national fueling network and strategic operations in North Carolina, Arizona, Texas and Florida. As a wholesale fuel supplier, we let you buy your renewable diesel in bulk at a lower price per gallon than the market price.
Since renewable diesel works similarly to petroleum diesel, you can use renewable diesel with any traditional diesel engine. Diesel engines are popular in various industries, such as the military sector, agriculture, construction, healthcare and telecommunication. Many of these industries use diesel engines as part of a generator system to help sustain power during an outage.
Renewable diesel is a reliable alternative if you’re looking for a clean energy source to power the diesel engines for your heavy machinery, generators and more. Federal incentives including BTCs and RINs make switching competitive when upgrading to a greener fuel. If you live in a state with LCFS incentives for renewable diesel, it’s even more beneficial to make the switch.
If you’re looking for a cleaner fuel with virtually the same performance quality as petroleum diesel reduced emissions, consider switching to renewable diesel. You’ll be helping the environment on top of the many other benefits renewable diesel offers.
Foster Fuels’ Mission Critical division can provide you with renewable fuel as part of our routine fuel delivery program. We even offer remote fuel tank monitoring to make fuel management and overall operations easier for you. Count on us to help you make the switch to green fuel smoothly and continue your daily tasks without downtime.
Contact us today and learn more about our renewable diesel.
