Earnings Calls: Q3 '24 Highlights (part 3)

BTC shift to PTC, RD, Ethanol, EV charging, California grid batteries

CARBs board finally voted on the long awaited LCFS amendments process Friday evening after a 12 hour meeting including staff presentation, comments from the public, Q&A between board members and CARB staff along with debate amongst board members. The LCFS amendments passed in a 12-2 vote with only Diane Takvorian and Dean Florez voting no.

Neste (NTOIY)

“…the U.S. renewable credit prices as well as spot premiums in Europe have both clearly weakened in a yearly comparison. At the same time, the waste and residue prices have remained relatively flat and not really giving us a helping hand margin-wise…Martinez continued to have a diluting impact on Neste’s overall comparable sales margin as well…(Singapore facility) encountered an unforeseen equipment failure that led to the shutdown of the production line at the refinery. This is also expected to influence some renewable diesel customer deliveries to the U.S. in the fourth quarter…here is an uncertainty one has to consider when one is a global company like Neste. This question of the U.S. CFTC (clean fuels production tax credit) versus BTC (blenders tax credit), of course, if BTC continues, that would be positive for us…Neste is investing heavily and has invested heavily into Europe. We’re now building world-class facilities in Holland, in Rotterdam, we have two lines, first one converted, second one is being built as we speak…we’re looking forward to increase our SAF sales also in the fourth quarter from the third quarter level…but in the U.S., UK, it’s (Renewable Sales margin) around about $1,000 per ton. In the EU, it’s been somewhere north of $900, maybe $920. But then you are north of $800 in China…”

-Martti Ala-Härkönen (CEO)