In 2007, the US Congress passed the Energy Independence and Security Act which updated mandates under the Renewable Fuel Standard (RFS 2) program requiring increasing production of four types of renewable fuels – renewable fuels, advanced biofuels, biomass-based diesel and cellulosic biofuel - in the United States. The result of this mandate is a substantial renewable fuels market totaling 36 billion gallons by 2022.
RFS 2 creates a vast mandated market for KiOR’s blendstocks. For example, each of the top 10 oil refiners in the US, who account for 70% of total capacity, will be required to purchase at least $1 billion worth of renewable fuels per year by 2022.
In fact, KiOR believes its blendstocks offer unique value within the RFS system, as they will allow customers to meet the full suite of categories within the mandate unlike some other biofuels.