The Value of What We Do

Fixed Cost Tolling

Steamboat Fuels has a unique business plan, in that we operate under a tolling arrangement:

  • We take the Client’s feedstock and process it into three products: Renewable Diesel, Renewable Naptha and Mixed LPG. Renewable Diesel comprises approximately 90% of the refined product mix, with the remainder equally divided between Renewable Naptha and Mixed LPG.
  • The Client is charged a fixed fee (the “toll”) per gallon produced. The toll is the same amount for each type of renewable fuel produced.
  • The Client then takes all refined product for their own account. Since the Client retains title to the feedstock throughout the tolling process, all environmental attributes (RINs, LCFS credits, etc.) are retained by the Client.
  • As a tolling facility, Steamboat Fuels has, in effect, “contracted cash flows” via minimum contracted feedstock volume commitments from each Client. This in turn, enables us to generate steady predictable cash flows and a profitable return on invested capital.
  • The tolling arrangement is very beneficial to the Client. It provides cost certainty with respect to refining costs and eliminates capital outlays that would otherwise be incurred. Further, our facility is designed to run virtually all types of animal fats and vegetable oils, either separately or mixed.

    Diagram source: Haldor Topsoe

    Renewable Diesel: Premium Quality Fuel

    Renewable Diesel is premium quality fuel that is the result of refining low carbon sustainable materials such as vegetable oils and animal fats via a hydro-processing process. Advantages include:

    • Cetane rating of approximately 80.
    • 85% less Sulphur than conventional diesel.
    • “Drop in” quality. Compatible with all diesel engines.
    • Can be mixed with petroleum diesel or biodiesel to improve fuel quality.
    • Up to 80% lower lifecycle emissions compared to petroleum diesel.
    • Cleaner fuel results in longer engine life.
    • Can be stored for long periods of time with no deterioration of quality.
    • Odor free, which means it is less harmful to drivers, handlers and the environment.
    • Carbon intensity is 50-80% lower than conventional diesel.