MMSA Methanol Notes – 2020-03-24
US Methanol Demand Into Biodiesel – Fast Start Before COVID-19 Impacts
In a turnabout, the US biodiesel industry showed signs of life in the first month of 2020, as the EPA finally provided guidance and tax credits under its Renewable Fuel Standard (RFS). Total demand for biodiesel in the US grew negatively in 2019 for a third consecutive year. However, data for the first month of 2020 suggest that producers welcomed the EPA tax credits, unleashing pent-up demand for methanol. However, the ability of this growth to sustain for the full year is now under threat from COVID-19 effects, including a step change down in energy and refined product (including diesel) pricing.