Flexibility and Timing of Incentives: Navigating the Fuel Transition in Refinery Production
This project explores the trade-offs between refineries specialized in renewable diesel and those capable of flexible production between renewable diesel and sustainable aviation fuel (SAF). Using technical production data, we estimate the value of flexibility in switching between fuels. Scenarios such as on-road fuel demand decline and shifts in policy support for SAF allow us to analyze how timing of incentives impacts refinery decisions. These insights provide a clearer understanding of optimal production strategies, helping refineries adapt to evolving market conditions and policy shifts.
Jan 1, 2024