S&P Global Commodity Insights (SPGCI) client is a major global supplier of biofuels including and specifically low carbon renewable diesel. The market for these fuels is expanding rapidly, raising questions about feedstock availability, feedstock price, and the price relationship between low-carbon feedstocks and soybean oil. The client needed a five-year perspective on where feedstock markets were going and how to factor these perspectives into their strategy.
In the very short timeframe needed by the client, the project team provided a comprehensive report covering the pricing structure of the soybean oil (SBO) market and related low carbon feedstocks, did a price analysis of SBO and other feedstocks including identification of key drivers, provided baseline and scenarios based on alternative outlooks and described the alternative uses for the various feedstocks and how these uses might impact demand and availability. These findings were delivered in both PowerPoint and verbal formats where the client was able to interact with the project team and gain further insights specific to their needs.
Using our insights, the client was able to map a strategy for expansion and development that took into account the risks but also the opportunities of what has become a volatile feedstock environment for biofuels producers.
