MOBILE, Ala. — Vertex Energy has officially commissioned Alabama’s first renewable diesel production facility, marking a significant transition for the former Shell refinery site. The project, which required a $115 million capital investment over the past year, is designed to process domestic soybean oil into a low-carbon diesel alternative that functions as a direct drop-in replacement for traditional petroleum-based fuels.

This facility represents a shift in domestic energy logistics, aiming to link state agricultural output directly to the heavy-duty transport sector. By utilizing locally sourced feedstock, the site intends to stabilize the supply chain for renewable energy. The commissioning ceremony, attended by Gov. Kay Ivey and local business leaders, emphasized the facility's role in the broader national push to reduce carbon emissions within the freight and logistics industries.

Vertex Energy CEO Benjamin Cowart stated that the site serves as a cornerstone for the company’s transition toward sustainable growth. While soybean oil serves as the primary feedstock, the refinery is engineered to eventually incorporate other organic waste oils. This operational flexibility is intended to support the increasing demand for advanced biofuels across the United States, positioning Alabama as a central hub for the production of cleaner-burning fuels for long-haul shipping and trucking.

What This Means for Drivers

For the average CDL-A driver, the emergence of this facility suggests that renewable diesel will become increasingly common at the pump in the coming years. Because this fuel is chemically similar to conventional diesel, owner-operators do not need to modify their engines to utilize it. As more trucking companies hiring drivers transition to these biofuels to meet corporate sustainability goals, fleets will likely integrate this product into their standard fueling networks. Drivers can expect to see more renewable options appearing on fuel cards without the performance concerns often associated with older biodiesel blends.

Industry Reaction

A coalition of trade groups, including the American Short Line and Regional Railroad Association and the National Energy & Fuels Institute, recently pressed the EPA to raise volume requirements for biomass-based diesel. These organizations argue that the current production capacity for renewable diesel and sustainable aviation fuel is being undervalued by federal regulators. They maintain that these fuels are already commercially viable and necessary for the long-term decarbonization of the American supply chain, urging the EPA to align its 2023-2025 volume standards with actual industry investment levels.

Key Points

• Vertex Energy converted a former Shell refinery in Mobile into a dedicated renewable diesel site.
• The $115 million project focuses on using soybean oil as the primary feedstock to produce low-carbon fuel.
• Trade associations are lobbying the EPA to increase biomass-based diesel volumes for 2023-2025.
• The produced fuel acts as a drop-in replacement, requiring no vehicle engine modifications for current equipment.

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