Chevron to Restart Iowa Biodiesel Plant With Landus Feedstock Deal

what happened

Chevron U.S.A. Inc., a unit of Chevron Corporation, said it will resume operations at its biodiesel plant in Ralston, Iowa, according to TradingView. The decision reflects better conditions in the biodiesel market. The restart is supported by an agreement with Landus Cooperative, a farmer-owned agriculture firm whose neighboring processing facility gives the plant a short feedstock supply chain.

At full production, the plant has capacity of nearly 42 million gallons per year. Landus processes more than 28 million bushels of soybeans annually and is described as the largest mechanical crush facility in the U.S. The restart will be staged, starting with staffing, maintenance and operational-readiness work before production resumes.

why it matters

For the market this is a modest addition to regional biofuel supply. Chevron also points to tight global oil markets and refinery utilization of nearly 98% in the third quarter. The direct impact is limited to the biodiesel and Iowa soybean processing segments.

market impact

Biodiesel and soybeans in Iowa: expanded crushing creates demand for feedstock

• ▲Soybeans pressure up — higher crushing at Ralston increases demand for feedstock from Iowa farmers

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