California LCFS: Clean Fuels for Carbon Credit Markets

Targray is a leading supplier of low-carbon clean fuels optimized for the California LCFS program. Our high-performance biodiesel is ideal for customers seeking to create new efficiencies via the state of California’s low carbon fuel standard (LCFS), a law that encourages the use of lower carbon-emitting fuels.

Select biodiesel fuels show significant carbon savings compared to standard diesel fuel and, as a result, generate significant tax credits. The feedstock used to make biodiesel affects the Carbon Intensity (CI) rating of the biodiesel. Some feedstocks create a very small number of carbon credits, while others create a very large number of credits. The resulting credits are sold per metric ton of carbon saved / avoided. The price per ton fluctuates daily and is reported by various industry sources such as OPIS and Argus.

LCFS Carbon Intensity Chart

The CI values for different biodiesel feedstocks are listed in the table below. The lower the CI, the greater the number of tax credits generated, resulting in higher savings for end users. Our California LCFS fuel is ideally suited to end users seeking to take advantage of the state’s low-carbon emitting incentives.

In 2017, the California Air Resources Board (CARB) moved away from using generic pathways to assign Carbon Intensity (CI) values to various clean fuels. CI values are now based on the specific practices of individual biofuel production facilities.

Pathway Description Carbon Intensity Values (gCO2e/MJ)*
Conversion of Midwest soybeans to biodiesel (fatty acid methyl esters – FAME) 51.83
Conversion of waste oils (Used Cooking Oil) to biodiesel (fatty acid methyl esters – FAME) where “cooking” is required. Fuel produced in the Midwest 19.87
Conversion of North American Canola to biodiesel (fatty acid methyl esters – FAME) 50.23
Conversion of Midwest corn oil to biodiesel 28.68
Conversion of mixed tallow to biodiesel (FAME process); feedstock originates in and production occurs in the United States; cooking required 32.83

*The CI scores shown in this table are being used for indicative purposes only.

Pathway Identifier Pathway Description Carbon Intensity Values (gCO2e/MJ)
BIOD001 Conversion of Midwest soybeans to biodiesel (fatty acid methyl esters – FAME) 83.25
BIOD002 Conversion of waste oils (Used Cooking Oil) to biodiesel (fatty acid methyl esters – FAME) where “cooking” is required 15.84
BIOD003 Conversion of waste oils (Used Cooking Oil) to biodiesel (fatty acid methyl esters – FAME) where “cooking” is not required 11.76
BIOD004 Conversion of waste oils (Used Cooking Oil) to biodiesel (fatty acid methyl esters – FAME) where “cooking” is required. Fuel produced in the Midwest 18.72
BIOD005 Conversion of waste oils (Used Cooking Oil) to biodiesel (fatty acid methyl esters – FAME) where “cooking” is not required. Fuel produced in the Midwest 13.83
BIOD006 Conversion of North American Canola to biodiesel (fatty acid methyl esters – FAME) 62.99
BIOD007 Conversion of corn oil, extracted from distillers grains prior to the drying process, to biodiesel 4.00
BIOD008 Conversion of mixed tallow to biodiesel (FAME process); feedstock originates in and production occurs in the United States; cooking required 40.18

Targray can help you select the best combination of biofuel price vs. freight cost vs. LCFS value in order to optimize your LCFS fuel purchases in California. Contact us for more information.

renewable diesel
Renewable Diesel

We supply Renewable Diesel produced from vegetable oils & waste animal fats.

biodiesel sales
Domestic Biodiesel Sales

We are an industry leading supplier of Biodiesel in the United States and Canada.

biodiesel exports
Biodiesel Exports

We supply ocean vessels of B20 / B99 / B100 Biodiesel to markets around the world.

+1 (514) 695-8095

To speak with a Targray representative.