Hydrogen Shortages Threaten Gulf Renewable Diesel Production
In Texas, Fast Markets reports hydrogen supply disruptions are beginning to affect renewable diesel operations in the U.S. Gulf, although the scale and duration remain uncertain. Commercial renewable diesel plants use hydrogen-intensive hydrotreating to convert fats and oils into fuel, requiring roughly 25–50 kilograms of hydrogen per metric ton of feedstock. Shortages could temporarily reduce feedstock consumption even while margins remain attractive. Participants reported fewer Gulf bids and weaker sales, raising concerns for UCO, tallow and other feedstocks. A prolonged disruption could redirect excess supplies into alternative markets, putting additional downward pressure on prices.
Category: Fuels
