Updated April 27, 2021:
As part of the Sustainability Analysis project, efforts recently have been toward combating claims of indirect emissions and lack of feedstock. As new policy and corporate emission reduction targets are driving increased demand for sustainable solutions, biodiesel and renewable diesel have become a preferred commercial solution for immediate, low-cost carbon reductions in heavy duty applications.
However, as the industry's success has grown—now consuming over 22 billion pounds of fats and oils, of which
approximately 50% is soy oil—the opposition to our industry continues to claim that we are sourcing vegetable oils and animal fats in an unsustainable manner. While these arguments have traditionally focused on potential “Indirect Land Use Change” associated with crop-based feedstocks, more recently these lines of reasoning have expanded and now arguing that increased demand for biodiesel is limiting the ability of waste fats, like yellow grease and used cooking oil, to be included in animal rations. In response, NBB is undertaking an animal ration supply and demand study, focusing specifically on the source of energy calories used in the state of Iowa. Preliminary estimates show that while intentional lipid inclusion from waste fats and oils in the animal ration has declined since 2000, the data and timeline seem to suggest this resulted from a consumer preference for animals fed with vegetable diets, regulations like the Food Safety Modernization Act, and in particular the increased use of distiller's grains, which often contain a significant fraction of corn oil. We believe these changes in supply, coupled with the limited amount of fats certain animals can consume, has shifted the demand for energy calories from waste lipids to corn-based commodities. The completion and subsequent peer review of this research will lead to a more robust and accurate displacement methodologies when attempting to assign indirect penalties to biodiesel and other biofuels.