Renewable Diesel Bubble Begins to Burst as Costs Spark Pullback
- Exxon axes supply deal after delay, Cargill puts plant on hold
- Labor woes contribute to rising costs for building plants
Cargill said it has suspended plans to build a giant soybean-processing plant that would have provided feedstock to the renewable diesel industry due to “shifting market dynamics.”
Photographer: Diego Giudice/Bloomberg
The US renewable diesel rush is losing steam as soaring costs eat into profits, prompting the world’s top crop trader and North America’s largest energy company to pull back on planned investments.
Agricultural behemoth Cargill Inc. said it has suspended plans to build a giant soybean-processing plant that would have provided feedstock to the renewable diesel industry due to “shifting market dynamics.” Exxon Mobil Corp. has meanwhile canceled a deal to buy the green fuel from Global Clean Energy Holdings Inc., a company that said it’s facing project delays in part from lack of skilled workers.