Introduction: Baker & O’Brien was retained to determine the value of renewable diesel production assets located on the West Coast of the United States.

Understanding the regulatory framework and incentive structures is a cornerstone of valuing renewable diesel assets. Our consultants' analysis incorporated various national and state regulatory requirements, which included the following:

• U.S. Renewable Fuel Standard (RFS)
• Canadian Clean Fuels Regulations
• State/province-level Low Carbon Fuel Standards (LCFS) programs
• Inflation Reduction Act of 2022
  • U.S. Section 40A – Biomass-Based Diesel Blenders Tax Credit (BTC)
  • U.S. Section 40B – Sustainable Aviation Fuel (SAF) Credit
  • U.S. Section 45Z – Clean Fuel Production Credit (CFPC)
• California SB-32/AB-197 Global Warming Solutions Act

Baker & O’Brien’s analysis provided a comprehensive examination of both historical and future growth trends of renewable fuels for North American markets. The analysis also considered policy initiatives aimed at reducing the carbon intensity of transportation fuels through low-carbon fuel standard programs and the Renewable Fuel Standard Program’s mandated renewable blending requirements. This examination required a complex understanding of pathways to meet policy milestones, notably renewable diesel blending, and feedstock diversification strategies needed to meet future diesel demand globally.

Our team’s analysis allowed Baker & O’Brien’s consultants to provide a robust outlook on regional supply and demand for renewable diesel and sustainable aviation fuel and an in-depth understanding of historical and projected profit drivers for renewable fuel production. The Baker & O’Brien economic model of renewable fuel production assets allowed our client to understand and interpret the value of renewable diesel production assets.