2024 ESG Report FINAL - Report - Page 13
Low-Carbon
About Low-Carbon Fuels
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).
What is life cycle analysis or LCA?
It is a cradle-to-grave analysis. In the case
of liquid transportation fuels, life cycle
analysis (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 to the right.
FEEDSTOCK
PRODUCTION AND
TRANSPORTATION
FUEL PRODUCTION
AND DISTRIBUTION
CROP-BASED AND
WASTE
LOW-CARBON FUEL
FACILITY
Energy Inputs
Chemical Inputs
Process Energy Use
Material Inputs
USE OF THE
FINISHED FUEL
TRANSPORTATION
FUEL
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.
Depending on the feedstocks and the LCA pathway, renewable diesel offers up to 80% lower life cycle GHG
emissions, 2 compared with traditional diesel. 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, which can also affect the differential between the CI of renewable
diesel and the CI of the diesel benchmark.
Are there enough feedstocks to
produce low-carbon fuels?
Appetites that fuel our low-carbon fuels — More than
150,000 restaurants, supermarket chains, casinos,
theme parks, stadiums and arenas nationwide
provide used cooking oil to our joint venture member
for conversion into renewable diesel, much of which is
processed at our renewable diesel facilities.16
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
production is 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 corn oil. In addition, the
other member of our renewable diesel joint
venture is the world's largest renderer, which
provides a source of animal fats.
Environmental, Social and Governance Report •
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