Renewable Diesel Revenue
XCF Global Reports $10 Million in August Fuel Sales Following Facility Restart
Anonymous
XCF Global reported more than $10 million in August revenue tied to shipments of 1.3 million gallons of renewable diesel from its New Rise Renewables Reno facility, marking its first month of completed commercial sales after the facility restarted in July. The company said the reported revenue included fuel sales, incentives and renewable attributes, and that daily production and sales were about 50,000 gallons, with a goal of exceeding 70,000 gallons and eventually reaching the facility’s nameplate capacity of more than 100,000 gallons per day. The announcement showed the restart beginning to generate sales, but a sustained production ramp, clearer margins and resolution of financing and facility disputes remain important uncertainties. XCF shares fell 12.3% on Friday, closing down five cents at 36 cents.
Key Points
1
Renewable diesel is chemically processed from fats, oils and greases and can be used in existing diesel engines and fueling equipment without modifications; unlike biodiesel, it behaves like petroleum diesel.
2
Depending on the feedstock and production process, renewable diesel can reduce lifecycle greenhouse-gas emissions by up to about 80% compared with the petroleum fuel it replaces.
3
Renewable-fuel producers can earn revenue from both fuel sales and tradable Renewable Fuel Standard credits known as RINs, while uncertainty over federal tax credits and future blending requirements has affected the industry’s economics.
4
XCF says its Reno facility has permitted nameplate capacity of up to 38 million gallons annually, and it is pursuing possible expansion opportunities in Nevada, North Carolina and Florida.
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