Vertex Energy, Inc. (VTNR)

Vertex Energy pauses renewable diesel output to switch back to fossil fuels

U.S. refiner Vertex Energy said on Thursday it will pause renewable diesel production at its refinery in Mobile, Alabama, and convert it to produce fossil fuels instead, citing macroeconomic woes which might persist through next year. Renewable diesel can fully substitute traditional diesel, but it is much more expensive to make and therefore relies on government blending mandates and subsidies. Experts say these mandates have failed to keep up with supply growth, cratering margins for those who bet on biofuels as a means to survive the transition away from fossil fuels.