Oil & Gas Journal: Refiners are shifting toward renewable diesel (RD) for higher growth and better returns, according to analysis from Morgan Stanley.
The prospect of higher growth and better returns through renewable diesel is attracting US refiners. With growing focus on sustainability, Morgan Stanley expects carbon reduction efforts to drive incremental demand for renewable diesel, particularly commercial usage. Project economics are robust, with returns over 30-40%, supported by government subsidies. This is compelling given that typical refining and midstream opportunities offer lower returns and less growth potential.
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