RE:RE:What is the Real Cost of Producing Renewable Diesel?Good insights here.
The focus on SAF is a big concern for me. The RD investment was substantially over budget and does not currently have a visible pathway to profitablity and presumably will not until the Credits issue is resolved (if it can be resolved). The SAF project would be a big $ investment ($500 million?) which they do not have. Unfortunately the solid financial position that came with the Pipestone sale (a very good deal) has now been largely eroded by the need for TWM to provide substantial financial support to Renewables.
The two company structure made sense when TWM needed to finance the RD facility but is now a complication that I would like to see removed. Best time to do that is now, while the Reneables shares are under $3.
If I was running TWM I would probably have made merging the 2 companies a condition for providing the financial support. Not sure TWM got a great deal on the financial support.