Renewable Diesel Due Diligence Technology Evaluation

Process Engineering International, LLC (PROCESS) was contracted to perform a third party due diligence on a renewable diesel facility. The client was a foreign alternative energies company considering purchasing the technology associated with this facility and was developing its own facility.  The technology involved the hydrocracking and hydrotreating of a variety of animal fats, e.g., tallow, yellow grease, and brown grease.

The process consists of a catalyzed reactor, a separation step, and a fractionation step.  The catalyzed reactor used hydrogen to treat the incoming grease.  The separation step removed the water made in the reaction step, and the fractionation step separated the diesel from the naphtha and light end products.

PROCESS reviewed the process technology claims, plant operating data, a process simulation previously generated by another engineering company, and the process heat and material balance.  PROCESS also had numerous discussions with the technology company’s technical representatives and executed process simulations of portions of the facility to gain a good understanding of plant operation and capabilities.  PROCESS then visited the technology company’s pilot plant facility where the process was inspected, plant engineering and operations personnel were interviewed, and additional insights were gained regarding the key aspects of the technology.  PROCESS performed all of these tasks under a joint confidentiality agreement with both the technology company and the ultimate client.

PROCESS then provided a written report of its findings to the ultimate client. A key finding was that the project economics have little dependence on feed stock costs and are instead highly dependent on a ready supply of hydrogen.