2024 ESG Report FINAL - Report - Page 11
Low-Carbon
Sustainable Aviation Fuel or SAF
Made with feedstocks used in the renewable diesel process, synthetic paraf昀椀nic
kerosene (SPK) or neat SAF is a non-petroleum-based fuel. Blending SPK and
traditional jet fuel results in SAF, and current aviation regulations allow SPK to be
blended up to 50% with jet fuel for use in an aircraft. Valero has announced a
large-scale SAF project at its renewable diesel plant in Texas, which is expected
to be completed in the fourth quarter of 2024. The SAF project is intended to
provide optionality to upgrade approximately 50% of the plant's annual 470
million-gallon renewable diesel production capacity to SPK. See global SAF
mandates to decrease GHG emissions in the aviation sector on page 15.
The commonly used term,
SAF, includes a wide range
of neat SAF blended with
jet fuel. Based on ASTM,
the industry standard
speci昀椀cation, the
maximum blending limit
for neat SAF is 50%.13
An alternative pathway for producing SAF is the alcohol-to-jet (ATJ) process. With abundant supply of ethanol,
Valero’s participation in carbon sequestration projects may provide a competitive advantage for ATJ production,
as the CI of ethanol is expected to decrease by more than 40% with carbon sequestration.
Bene昀椀ts of Renewable Arctic Diesel10 11 12 - The cold truth is that winter
temperatures greatly affect the charging and range of electric
vehicle (EV) batteries. Unlike EVs, renewable arctic diesel is designed
to withstand freezing temperatures in arctic climates and maintain
its performance.
EVs in Cold Temperatures
Renewable Arctic Diesel
(Arctic RD)
The lower the temperature, the
longer it can take to charge EV
batteries.
Arctic RD is a drop-in fuel,
just like renewable diesel,
made to withstand freezing
temperatures.
Cold can decrease battery
power, making it challenging
to ful昀椀ll optimal charge range
and accessories, such as cabin
heating, seat heating or defrosting
functions.
Vehicles powered with Arctic RD
can use all accessories, just like
in any other liquid fuel-powered
vehicle.
EV driving range can start to
deplete at 40°F, an unexpected
concern if you are not in proximity
to chargers.
Emergency vehicles running
on Arctic RD are reliable and
dependable.
In cold temperatures, EVs may
need to be recharged more
frequently.
Refueling of Arctic RD is quick,
and frequency is not affected by
temperatures.
According to Consumer Reports:
“…we found that short trips in the cold with frequent stops and the
need to reheat the cabin saps 50 percent of the range [of an EV].”11
“Under the coldest conditions, the rate of charging [of an EV] was
roughly three times slower than at warmer temperatures.”12
Fiber Cellulosic Ethanol
In addition to starch ethanol,
we use an enzymatic process
to convert waste 昀椀bers into
cellulosic ethanol, a secondgeneration fuel.
"When [cellulosic ethanol
is] used as a vehicle
fuel, it can support deep
reductions in [life cycle]
greenhouse gas emissions,
with a carbon footprint 73%
smaller than conventional
gasoline." 15
Compared to gasoline’s CI of
approximately 100 gCO2e/MJ
and EV's average CI of about
50 gCO2e/MJ (depending
upon battery components,
manufacturing place and the
electric grid),14 cellulosic ethanol
has a CI in the high 20s.15
When combined with carbon
sequestration, the cellulosic
ethanol product can have a
CI in the single digits, further
increasing the value of ethanol
in low-carbon markets.
Environmental, Social and Governance Report •
11
