Renewable Diesel Market Value Proposition
IV
PRODUCT LOCATION ADVANTAGE
Expanding LCFS Markets
California, Oregon and British Columbia have existing LCFS programs
• Washington state and Canada (nationwide) LCFS programs launching now
23 states currently have some form of GHG reduction target, others considering
British Columbia LCFS
⚫10% Cl reduction from 2010 levels by 2020
• 20% Cl reduction required by 2030
Washington (Passed)
Signed into law May 17, 2021;
Start Jan. 2023
10% Cl reduction from 2017
levels by 2028
• 20% Cl reduction by 2038
Oregon Clean Fuels Program
Regulatory Backdrop
Canada (Enacted)
• Start in July 2023
⚫12-point Cl reduction by 2030
New York (Proposed)
• In senate Committee review
MRL Product Advantages
• Product off-take bids were 3x oversubscribed; deep and
broad market demand for our renewables production
•
•
Speed to customer advantage; shortest product route into
LCFS mandated Pacific Northwest and Canada
Truck delivery is viable; environmentally friendly alternative
to rail within 500 miles of facility
• Renewable Kerosene (RK) has premium pricing to RD;
sold at the higher of SAF or renewable arctic spec diesel
• Canadian uplift not included in MRL model; but is in
some offtake agreements due to proximity of plant
23
23
10% Cl reduction from 2015
levels by 2025
Midwest (In Discussion)
California LCFS
10% Cl reduction from 2010 levels
by 2020
20% Cl reduction required by 2030
New Mexico (Proposed)
⚫10% Cl reduction from 2018 levels by 2030
.28% Cl reduction by 2040
Nevada (In Discussion)
Colorado (In Discussion)
• Deferred after recent review
• 20% Cl reduction by 2030
Northeast U.S (Proposed)
Proposed to start in 2022
• Up to 26% emissions reduction by
2032
Logistic Upside Compared to Peers
Product Rail Rates
($/bbl)
From Great
From USGC (1)
Falls
To Seattle
$6.77
$15-17
To Vancouver, BC
$7.47
$16-19
To Calgary, AB
$2.93
$13-16
LCFS Passed (In Effect)
LCFS Passed (2022 Implementation)
Future LCFS Proposed
GHG Emission Goal
To San Francisco
$10.00
$12-13
Source: RBN Energy and Baker & O'Brien
(1) Houston, Gesimar average.View entire presentation