2025 Valero Report on Guiding Principles - Flipbook - Page 13
Introduction
Safety
Environment
Community
People
Governance
Appendix
Low-Carbon Fuels — Frequently Asked Questions
What is carbon intensity
or CI?
CI means the quantity of life cycle
GHG emissions for a particular fuel
per unit of transportation energy
delivered, which is expressed in
grams of carbon dioxide equivalent
per megajoule (gCO2e/MJ).
Are there enough feedstocks
to produce low-carbon
fuels?
Our ethanol and renewable diesel
plants are in advantaged locations.
In the case of ethanol, the U.S.
Midwest offers abundant corn supply.
Our renewable diesel and neat SAF
production are competitively located
in the U.S. Gulf Coast with access
to domestic and global feedstocks,
which allows for 昀氀exibility of supply
of used cooking oil, animal fats,
soybean oil and inedible corn oil. In
addition, the other member of our
renewable diesel joint venture is the
largest renderer in North America
and globally, which provides a source
of animal fats.
What is life cycle analysis or LCA?
It is a cradle-to-grave analysis to determine a fuel's CI. In the
case of liquid transportation fuels, LCA means calculation of the
aggregate quantity of GHG emissions related to the full fuel life
cycle, including all stages of fuel and feedstock production and
distribution, from feedstock generation or extraction through the
distribution, delivery and use of the 昀椀nished fuel by the ultimate
consumer, as depicted in the graphic below.
FEEDSTOCK
PRODUCTION AND
TRANSPORTATION
FUEL PRODUCTION
AND DISTRIBUTION
USE OF THE
FINISHED FUEL
CROP-BASED AND
WASTE
LOW-CARBON FUEL
FACILITY
TRANSPORTATION
FUEL
Energy Inputs
Chemical Inputs
Process Energy Use
Material Inputs
Do low-carbon fuels reduce GHG emissions?
Yes, low-carbon fuels reduce life cycle GHG emissions. In the case
of corn ethanol, our product offers at least 30% lower life cycle
GHG emissions, 2 compared with petroleum gasoline. The reduction
percentage could be higher if certain feedstocks such as corn kernel
昀椀ber are used or if the energy intensity in ethanol's production or
supply chain decreases.
Renewable diesel and neat SAF offer up to 80% lower life cycle
GHG emissions, 2 compared with traditional diesel and jet fuel,
respectively. The reduction percentage changes depending on the
LCA methodology or pathway, feedstocks and energy intensity in the
supply chain, such as feedstock gathering mileage or distribution
mileage of 昀椀nished product. In addition, global low-carbon
fuel programs calculate life cycle GHG emissions with different
assumptions.
Do low-carbon fuels have tailpipe emissions?
Appetites that fuel our low-carbon
fuels – Our joint venture member
is a leading provider of recycled
animal fats and used cooking oil for
conversion into renewable diesel
or neat SAF at our renewable diesel
facilities.10
Yes, low-carbon fuels combust just like the fossil fuel counterparts.
However, low-carbon fuels have lower life cycle emissions than fossil
fuels due to the biological origins of the feedstock. For instance,
in life cycle GHG emissions calculations, the tailpipe emissions
released from combusting ethanol are offset by the carbon uptake
during new corn crop growth. As a result, vehicles running on lowcarbon fuels produce less net CO2 per mile traveled than vehicles
running on conventional fuels.
Valero Report on Guiding Principles •
13
