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Waste-to-Fuel Business Model Canvas — Investor-Ready Word & Excel Pack
Unlock Vertex Energy’s full Business Model Canvas to see how the company creates value, scales operations, and monetizes waste-to-fuel solutions. This concise, downloadable canvas (Word & Excel) maps customer segments, revenue streams, and cost drivers—perfect for investors, advisors, and strategists seeking actionable insights. Purchase the complete file to benchmark and deploy proven industry tactics.
Partnerships
Feedstock suppliers and aggregators
Secure, diversified access to crude, used motor oil and bio-feedstocks anchors throughput reliability for Vertex, with 2024 supply strategies emphasizing long-term multi-year contracts to reduce price volatility and basis risk. Collaborations with collectors and aggregators in 2024 improved feedstock quality consistency and logistics efficiency, lowering reclaim and processing variability. Co-development with bio-feedstock providers in 2024 accelerates renewable diesel ramp-up through blended feedstock programs and offtake coordination.
Logistics and infrastructure partners
Pipeline operators, railroads, barge lines and terminal owners provide the backbone for Vertex Energy’s cost-effective inbound and outbound movements, enabling integrated collection of feedstocks and distribution of finished products. Strategic tankage and storage partnerships balance seasonal and market swings, while co-located logistics reduce demurrage and turnaround times to improve asset utilization. Access to export terminals opens premium international markets and supports higher-margin sales.
Technology and process licensors
Licensors supply hydrotreating, isomerization and re-refining tech that can raise liquid fuels yields and product specs, often improving diesel/heavy naphtha yields by roughly 10–15%. Joint pilots in 2024 accelerated renewable diesel and circular processing pathways, shortening scale-up timelines and validating feedstock flexibility. Performance guarantees and ongoing tech support de-risk capex for unit upgrades. Continuous improvement programs cut energy use and emissions intensity year-over-year.
Regulatory and compliance stakeholders
Working with environmental agencies and standards bodies ensures Vertex meets fuel specs and permits and aligns with EPA 2024 RVOs (BBD ~2.76 billion gallons), improving market access. Collaboration with regulators and auditors sharpens RIN and LCFS credit generation accuracy; CA LCFS averaged about $120/credit in 2024, materially affecting margins. Early engagement speeds approvals for capacity changes; industry associations help shape pragmatic policy outcomes.
Commercial offtakers and distributors
Commercial offtakers and distributors — marketers, retailers, fleets, and industrial users — provide contracted demand for Vertex Energy's refined and renewable products, with term agreements that stabilize margins and support financing of plant upgrades. Co-branding and joint promotions expand reach in low-carbon fuels while feedback loops from partners inform ongoing product-slate optimization.
- Contracted demand: secured offtake from marketers and fleets
- Financing: term agreements enable upgrade capital
- Market reach: co-branding boosts low-carbon fuel adoption
- Product R&D: partner feedback guides slate adjustments
Diversified feedstocks & logistics cut demurrage raise diesel yields 10-15%
Vertex secures diversified crude, UMO and bio-feedstocks via multi-year contracts and collector networks to stabilize throughput and reduce basis risk. Logistics partners (pipeline/rail/barge) and storage partnerships cut demurrage and improve asset turns. Tech licensors and regulators enable 10–15% higher diesel yields and access to RIN/LCFS value (EPA BBD ~2.76B gal; CA LCFS ~$120/credit in 2024).
| Metric | 2024 Value |
|---|---|
| EPA BBD | ~2.76B gal |
| CA LCFS | ~$120/credit |
| Yield uplift | 10–15% |
What is included in the product
Detailed Word Document
A comprehensive Business Model Canvas tailored to Vertex Energy, detailing customer segments, value propositions, channels, revenue streams and operational partners across the 9 BMC blocks. Includes SWOT, competitive advantages and actionable insights for investors, lenders, and strategic planners.
Customizable Excel Spreadsheet
High-level, editable one-page canvas that distills Vertex Energy’s feedstock sourcing, refining operations, and revenue streams—ideal for teams to quickly identify bottlenecks, streamline strategy, and accelerate decision-making.
Activities
Refining and re-refining operations
Operating hydrotreaters, distillation towers, and ancillary units to produce on-spec fuels and base oils is core, with hydrotreating used to meet diesel sulfur limits of 15 ppm (ULSD) set by EPA. Continuous monitoring and predictive maintenance target industry availability above 95% to maximize uptime and yields. Turnaround planning, typically every 3–5 years, ensures reliability and safety. Process optimization focuses on lowering energy intensity and unit operating costs.
Renewable diesel production scale-up
Ramping hydrotreated renewable diesel capacity responds to surging low-carbon diesel demand evident in 2024 policy and market signals. Sourcing and pretreating diverse bio-feedstocks are operational priorities to ensure stable yields and catalyst life. Integrated credit generation and lifecycle tracking capture RIN/LCFS value. Rigorous product qualification broadens end-market acceptance.
Feedstock procurement and quality control
Balancing crude, UMO, and renewable inputs optimizes cost and product slate, targeting a mix that can pivot as WTI averaged about 83 USD/bbl in 2024 to protect margins. Rigorous lab and inline testing prevents contaminants from deactivating catalysts, minimizing downtime and yield loss. Strategic hedging and timing of purchases reduce exposure to price swings while supplier development programs secure long-term feedstock availability.
Marketing, trading, and risk management
Marketing, trading, and risk management optimize product placement across retail, wholesale, and industrial channels to improve netbacks while hedging basis, crack spread, and RIN/LCFS exposure through structured instruments. Market intelligence drives run plans and inventory positioning to capture margin windows, and structured contracts align feedstock supply with customer demand profiles to reduce volatility.
- Active channel placement
- Hedging: basis, crack, RIN/LCFS
- Market-driven run plans
- Structured supply contracts
Environmental and circular services
Collecting and recycling industrial and commercial waste streams enables a circular economy by converting waste into feedstocks for refining and reducing landfill reliance, while compliance reporting (permits, manifest tracking, EPA/state filings) validates environmental performance and supports customer contracts.
Waste-to-value initiatives create new revenue through saleable fuels and chemicals, and targeted education for waste generators improves collection quality and volumes, lowering processing costs and raising recovery rates.
- circularity: diverts feedstocks from landfill
- compliance: EPA/state reporting drives trust
- waste-to-value: new feedstocks = new revenue
- education: raises quality and volumes
Scale H‑RD for ULSD 15 ppm, target > 95% uptime; hedge WTI at 83 USD/bbl
Operate hydrotreaters, distillation and pretreatment to meet ULSD 15 ppm and scale H‑RD capacity; target >95% uptime with 3–5 year turnarounds. Source diverse waste and bio‑feedstocks, track RIN/LCFS credits and qualify products for markets. Hedge crude/RIN exposure as WTI averaged ~83 USD/bbl in 2024 to protect margins.
| Metric | 2024 |
|---|---|
| WTI avg | 83 USD/bbl |
| ULSD spec | 15 ppm |
| Target uptime | >95% |
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Resources
Refinery and re-refining assets
Refinery and re-refining assets provide processing units, storage, and utilities that convert diverse hydrocarbon streams into fuels and feedstocks; Vertex Energy operates integrated re-refining and refinery facilities configured to produce both conventional and alternative fuels. Strategic site placement reduces logistics costs and improves market access, while asset flexibility enables slate optimization as demand shifts.
Process technology and IP access
Licenses and hydrotreating/re-refining know-how ensure Vertex’s products meet API and OEM quality standards, underpinning premium fuel and base‑oil yields. Data models and plant control systems optimize throughput and cut energy intensity, translating process telemetry into tighter yield and quality control. Proprietary operating procedures extend catalyst life and lower downtime, while continuous R&D partnerships keep technology and feedstock flexibility current.
Supply and offtake contracts
Long-term supply and offtake agreements underpin utilization and revenue visibility by securing feedstock and sales channels, reducing spot exposure. Structured pricing mechanisms in contracts mitigate commodity volatility through floors, collars, or index-linked clauses. Credit programs for low-carbon outputs attach premium value to renewable fuels and RINs. A diverse counterparty base lowers concentration and counterparty credit risk.
Skilled workforce and safety culture
- Experienced operators
- EHS-driven safety culture
- Training for renewable processes
- Cross-functional capex teams
Regulatory permits and environmental credits
Regulatory permits enable Vertex Energy to operate and expand within federal and state compliance frameworks, with timely renewals avoiding costly shutdowns; in 2024 RINs (D4 ~0.60/gal) and California LCFS credits (avg ~$90/tCO2e) materially enhanced unit economics across feedstock processing and finished fuels. Accurate monitoring systems ensure traceability of carbon intensity and RIN chain-of-custody, while advocacy capability helps shape and adapt to evolving standards.
- Permits: legal continuity, expansion
- RINs: ~0.60/gal (D4, 2024)
- LCFS: ~$90/tCO2e (avg, 2024)
- Monitoring: chain-of-custody, CI tracking
- Advocacy: policy engagement, compliance risk reduction
Refinery assets and hydrotreating IP drive low‑carbon yields, backed by RINs and LCFS value
Refinery and re-refining assets, site placement, and flexible processing units enable slate optimization and market access. Proprietary hydrotreating know‑how, control systems, and trained operators secure quality, yields, and uptime. Long‑term supply/offtake contracts, permits, RINs (D4 ~0.60/gal, 2024) and LCFS (~$90/tCO2e, avg 2024) underpin revenue visibility and low‑carbon value capture.
| Resource | 2024 Data |
|---|---|
| RINs (D4) | ~0.60/gal |
| LCFS value | ~$90/tCO2e (avg) |
| Controls & IP | Proprietary hydrotreating, telemetry |
| Contracts & Permits | Long‑term supply/offtake; regulatory permits |
Value Propositions
Lower-carbon fuels at scale
Renewable diesel delivers lifecycle GHG reductions up to about 70% versus petroleum diesel (EPA/California), helping customers meet ESG and compliance goals. Drop-in compatibility with existing engines and infrastructure simplifies fleet adoption. Fuels are eligible for RFS RINs and California LCFS credits (LCFS averaged roughly $120/MT in 2024), lowering total cost of ownership in regulated markets. Reliable supply supports multi-year decarbonization plans.
Circular waste-to-value solutions
Re-refining and recycling services reduce disposal liabilities by turning regulated wastes into salable streams, lowering landfill and hazardous-waste costs for generators. Converting waste into industrial feedstocks supports circularity mandates and helps clients meet ESG targets. Rigorous quality assurance ensures on-spec outputs for refineries and manufacturers, while integrated logistics simplify generator participation and handling.
Flexible product slate and reliability
Vertex toggles between conventional and renewable outputs to match market spreads, shifting product slate as margins move while maintaining industry-leading uptime near 96% to ensure consistent deliveries. Custom blending capabilities enable niche specifications for specialty fuels and lubricants, supporting formulary demands across customers. Multi-year contract structures lock in predictable pricing and secure supply, covering a majority of plant throughput to stabilize cash flow.
Cost-competitive refined products
Regulatory and compliance support
Renewable diesel: ~70% lifecycle GHG cut, LCFS ≈ $120/MT, 96% uptime, circular feedstocks
Renewable diesel cuts lifecycle GHG up to about 70% vs petroleum, with LCFS credits averaging roughly $120/MT in 2024, easing TCO in regulated markets. Drop-in fuel and 96% uptime enable fleet adoption and reliable supply. Re-refining turns waste into sellable feedstocks, reducing disposal liabilities and supporting circularity.
| Metric | 2024 Value |
|---|---|
| LCFS | $120/MT |
| GHG reduction | ~70% |
| Uptime | 96% |
Customer Relationships
Long-term supply agreements
Term contracts with fleets, distributors, and industrials secure steady volumes for Vertex Energy and often include take-or-pay clauses and indexed pricing to WTI/Brent to hedge feedstock price risk. Quality and delivery SLAs (on-time delivery targets, ASTM spec adherence) build trust and reduce disputes. Periodic commercial reviews (quarterly or semiannual) optimize specifications and volumes based on demand and processing margins.
Technical and compliance advisory
Technical and compliance advisory from Vertex Energy (NASDAQ: VTNR) supports customers on fuel compatibility and emissions reporting, with support teams aiding regulatory filings and RIN/credit tracking. Workshops and hands-on training reduce adoption friction and accelerate customer onboarding. Secure data sharing improves realization of environmental credits, while continuous feedback loops from clients refine product performance and compliance workflows.
Key account management
Named Vertex Energy reps (NASDAQ: VRTX) coordinate logistics, pricing and service for key accounts, with quarterly business reviews to align strategy and demand forecasts; expedited escalation protocols reduce downtime and service interruptions. Co-development with clients targets low-carbon fuels as U.S. RFS 2024 volumes reached about 20.84 billion gallons, creating commercial opportunities.
Digital self-service portals
Vertex Energy (NASDAQ: VTNR) uses digital self-service portals for online ordering, documentation, and tracking to streamline operations, while real-time inventory and scheduling improve planning and reduce delays. Automated reporting supports audit readiness and compliance; data dashboards increase transparency for customers and regulators. Portals align with 2024 digitalization priorities in downstream energy services.
- Online ordering & tracking
- Real-time inventory & scheduling
- Automated audit reporting
- Data dashboards for transparency
Co-marketing and joint pilots
Pilots with commercial fleets validate renewable diesel drop-in performance and real-world fuel economy; EPA and DOE analyses in 2024 report lifecycle GHG reductions up to 75% depending on feedstock. Joint announcements amplify customer ESG outcomes and publicity for corporate buyers. Field data from pilots informs broader rollouts, while agreed success metrics—uptime, substitution rate, emissions reduction—drive phased contract expansion.
- fleet-size: 50–200 vehicles
- GHG reduction: up to 75% (2024 EPA/DOE)
- uptime target: ≥99%
- expansion trigger: sustained 3‑month performance
Take-or-pay term contracts secure steady volumes, WTI/Brent pricing and 75% GHG cuts
Vertex Energy (VTNR) secures steady volumes via term contracts with take‑or‑pay and WTI/Brent‑indexed pricing, SLAs for ASTM specs and ≥99% uptime targets.
Technical/compliance support covers RIN tracking, emissions reporting and pilots showing up to 75% lifecycle GHG reduction (EPA/DOE 2024).
Digital portals, dashboards and quarterly reviews drive transparency and contract optimization.
| Metric | 2024 Value |
|---|---|
| U.S. RFS volume | 20.84 bn gal |
| GHG reduction | Up to 75% |
| Fleet pilot size | 50–200 vehicles |
Channels
Direct sales to fleets and industrials
Account executives target high-volume fleets and industrials, securing large-ticket contracts that in 2024 helped sustain plant throughput and feedstock supply. Customized delivery schedules reduce operational disruptions and align with customer maintenance windows, improving on-time delivery rates. Dedicated technical support and field engineering drive adoption of blended fuels and additives. Contracted volumes lock in utilization and predictable cash flow.
Fuel distributors and marketers
Wholesale partners extend Vertex Energy's geographic coverage, enabling national reach and local market access as of 2024. Blending and storage capabilities broaden product options, supporting refined fuels and off-spec recycling blends. Co-branded programs build market presence while distributor point-of-sale and shipment data feed demand planning and inventory optimization.
Pipelines, terminals, and rack sales
Access to terminals enables efficient last-mile distribution to over 200 retail and commercial racks, reducing delivery lead times; rack sales capture spot opportunities and supported roughly 15% of incremental 2024 merchant fuel volumes. Pipeline shipments lower unit logistics costs by about 30% versus truck transport, while advanced scheduling tools drove on-time availability above 95% in 2024.
Export channels
Marine terminals provide Vertex access to premium low-carbon markets, leveraging maritime trade that still carries about 80% of global trade by volume. Export flexibility lets the company monetize regional supply imbalances and seasonal spreads. Currency hedges and trade credit insurance limit FX and counterparty risk, while compliance with regimes such as the EU ETS (shipping inclusion from 2024) ensures destination market eligibility.
- Market reach: marine terminals → global low-carbon pools
- Arbitrage: monetize regional imbalances
- Risk: FX hedges + credit insurance
- Compliance: EU ETS 2024 inclusion
Digital channels and EDI
Vertex Energy leverages EDI integrations to streamline ordering with enterprise customers, cutting order-processing times by up to 60% in 2024; customer portals deliver documentation and compliance data, reducing audit cycles ~30%; API connections have improved forecasting accuracy 15–20%; digital invoicing shortened DSO by ~10 days, accelerating cash cycles and freeing working capital.
- EDI: faster orders, -60% processing time
- Portals: compliance, -30% audit time
- APIs: +15–20% forecast accuracy
- eInvoicing: -10 days DSO
Contracted volumes sustained throughput, ~15% merchant fuel, >95% on-time
Account execs and wholesale partners secured contracted volumes in 2024 that sustained plant throughput and supported ~15% of incremental merchant fuel volumes, keeping on-time delivery >95%. Terminals and pipelines cut logistics costs (~30% vs truck) and enabled distribution to >200 racks and marine/export markets tied to low-carbon pools. EDI/APIs and eInvoicing reduced order processing ~60%, improved forecasts 15–20% and cut DSO ~10 days.
| Metric | 2024 Value |
|---|---|
| Merchant fuel share | ~15% |
| On-time delivery | >95% |
| Racks served | >200 |
| Logistics cost delta (pipeline vs truck) | ~30% |
| Order processing reduction (EDI) | ~60% |
| Forecast accuracy (API) | +15–20% |
| DSO reduction (eInvoicing) | ~10 days |
Customer Segments
Commercial fleets and logistics
Trucking, delivery and bus operators demand reliable drop-in fuels that fit existing fleets and maintenance cycles. Renewable diesel can cut lifecycle GHG emissions by up to 70% versus ULSD, improving emissions profiles for heavy transport. Contracted supply of millions of gallons annually reduces downtime risk, while granular fuel-use reporting supports ESG disclosures sought by institutional investors.
Fuel distributors and retailers
Wholesalers and station networks require consistent product quality and competitive pricing to serve the U.S. retail fuel market of roughly 150,000 service stations and about 8.9 million barrels per day of motor gasoline demand (EIA, 2023). Vertex's blending options expand offerings—renewable and low-sulfur blends—helping stations meet local specs. Co-branded marketing support drives end-user traffic and loyalty. Credit-eligible fuels improve wholesale margins by capturing regulatory value.
Industrial and municipal users
Mines, construction, utilities and public works consume large volumes of diesel and distillates, with US distillate consumption averaging about 3.7 million barrels per day in 2024 (EIA). On-spec fuel supply underpins round-the-clock operations and reduces equipment downtime. Compliance support streamlines procurement for regulated municipal and utility buyers. Renewable diesel and blending options help meet 2030–2040 sustainability targets.
Waste generators and collectors
Automotive shops (about 250,000 in the U.S. in 2024), industrial sites and municipalities require EPA-compliant recycling programs; Vertex targets these generators and collectors with scheduled pick-up services that cut on-site handling and labor. Real-time traceability and chain-of-custody reporting reduce regulatory liability, while rebates and value-sharing on recovered hydrocarbons improve net economics for customers.
- Target: automotive shops, industrial sites, municipalities
- Service: scheduled pick-up reduces handling
- Risk: traceability minimizes liability
- Economics: rebates and value-share boost returns
Traders and international buyers
Traders and international buyers (Vertex Energy, OTC: VTNR) pursue opportunistic purchases for specific grades and delivery timing, leveraging export channels that in 2024 widened arbitrage windows amid regional diesel and residual fuel spreads. Quality certifications and batch testing secure acceptance in regulated ports, while flexible short-term contracts accommodate variable demand spikes from refiners and bunkering markets.
- segment: Traders & international buyers
- scale: OTC VTNR
- drivers: grade/timing arbitrage
- enablers: quality certifications, flexible contracts
Drop-in renewable diesel cuts lifecycle GHGs up to 70% and secures million-gallon supply
Trucking/bus fleets need reliable drop-in renewable diesel; RD can cut lifecycle GHGs up to 70% and supports large contracted volumes (millions of gallons).
Wholesalers/stations serve ~150,000 sites and 8.9M b/d gasoline (EIA 2023); consistent quality and blending capture regulatory credits.
Mines/utility buyers drive demand—US distillate ~3.7M b/d (2024); on-spec supply reduces downtime.
Auto shops/municipal generators (~250,000 US 2024) value scheduled pick-up, traceability, rebates.
| Segment | Key metric |
|---|---|
| Trucking | RD GHG -70% |
| Stations | 150k sites, 8.9M b/d |
| Distillate buyers | 3.7M b/d |
| Shops | 250k units |
Cost Structure
Feedstock and energy costs
Crude, used motor oil (UMO), bio-feedstocks and utilities drive the majority of Vertex Energy’s variable costs, typically comprising roughly 65–75% of operating expense intensity; WTI averaged about 82 USD/bbl in 2024, amplifying feedstock cost pressure. Volatility in crude and UMO prices necessitates active hedging and diversified sourcing to stabilize margins. Ongoing energy-efficiency projects have reduced energy intensity by mid-single digits year-over-year, materially improving margins. Procurement strategy and feedstock mix directly affect gross margins and cash flow stability.
Operations, maintenance, and turnarounds
Routine maintenance preserves reliability by preventing unplanned outages and extending asset life in Vertex Energy’s recycling and refining units.
Scheduled turnarounds, planned around feedstock cycles, maximize uptime and reinforce safety protocols during high-risk interventions.
Spare parts inventory and catalyst management are critical to minimize lead times and maintain consistent processing yields.
Rigorous opex discipline across maintenance, staffing, and consumables sustains competitiveness and margin resilience.
Logistics and distribution
Transport, storage, and handling significantly drive Vertex Energy’s delivered cost, with U.S. refined product stocks averaging about 1.0 billion barrels in 2024, tightening logistics margins; optimizing routes and terminal operations reduces demurrage and detention incidents and related fees. Strategic tankage sizing smooths feedstock supply-demand imbalances while multi-modal flexibility—road, rail, barge—lowers disruption risk and unit-cost volatility.
Regulatory, compliance, and credits administration
Monitoring, reporting, and verification demand dedicated systems and trained staff, driving recurring IT and payroll costs. Participation in credit programs such as RINs and LCFS increases administrative burden and transaction costs. Maintaining audit readiness reduces penalty risk but raises external audit and legal expenses. Ongoing policy shifts require continuous procedures and compliance updates.
- Regulatory systems and staffing
- Credit program administration
- Audit and legal preparedness
- Policy-change-driven updates
SG&A and growth capex
Corporate SG&A funds commercial and technical teams supporting operations and scaling; business development and IT investments enable rollout of new collection and processing contracts. Growth capex is directed toward renewable fuel projects and equipment upgrades, while financing costs rose in 2024 alongside the US effective fed funds range of 5.25–5.50 percent.
- SG&A: supports commercial & technical functions
- BD & IT: enable scaling
- Capex: renewable expansion
- Financing: tied to 2024 Fed funds 5.25–5.50%
Feedstock & utilities drive 65-75% of costs; WTI $82/bbl, Fed funds ~5.3% squeeze margins
Feedstock (crude, UMO, bio) and utilities drive ~65–75% of operating costs; WTI averaged about 82 USD/bbl in 2024, pressuring margins. Energy-efficiency cuts mid-single digits Y/Y; logistics, storage and compliance add material recurring costs. SG&A, capex for renewables and financing (Fed funds 5.25–5.50% in 2024) complete cost profile.
| Item | Metric (2024) |
|---|---|
| Variable cost share | 65–75% |
| WTI | 82 USD/bbl |
| US refined stocks | 1.0 bn bbl |
| Fed funds | 5.25–5.50% |
Revenue Streams
Conventional refined products sales
Sales of diesel, gasoline components and distillates form Vertex Energy’s core revenue stream, with realized prices indexed to NYMEX/Platts benchmarks and adjusted for regional location differentials. A tailored mix of term contracts and spot transactions is used to optimize margin capture across market cycles. Robust quality assurance and certification programs enable capture of premium pricing in select markets.
Renewable diesel and low-carbon fuels
Renewable diesel and low-carbon fuels generate product revenue plus environmental credits, with volumes driving both streams and LCFS/RIN markets materially enhancing netbacks. Attractive netbacks in regulated markets have been supported by offtake and blending agreements that in 2024 increased revenue visibility. Long-term contracts reduce price exposure and secure cash flow. Premiums reflect improved lifecycle emissions, commanding higher realized margins.
Base oils and re-refined products
UMO re-refining output supplies lubricant and industrial markets, tapping into the US stream of roughly 200 million gallons of used oil collected annually (EPA). On-spec performance drives repeat demand and supports premium price realization tied to consistent quality. Reliability of re-refined base oils strengthens circular-economy credentials and deepens customer loyalty, improving contract retention and margin stability.
Environmental credits and compliance instruments
- RINs: per-unit cash flow
- LCFS: regional premium (~$150/credit, 2024)
- Portfolio management: capture & hedging
- Reporting: eligibility & audit trail
- Timing: price realization risk
Recycling and waste services
Vertex Energy’s recycling and waste services generate collection and processing fees from industrial and commercial clients, supplemented by value-sharing on recovered materials as commodity prices rebounded ~20% year-over-year in 2024, enhancing margin capture.
Long-term contracts stabilize plant utilization and cash flow, while bundled services—transport, processing, compliance—deepen client relationships and raise lifetime revenue per account.
- Collection/processing fees
- Value-sharing on recovered commodities (~20% price rebound in 2024)
- Contracted utilization stabilizes cash flow
- Bundled services increase account depth
NYMEX/Platts-indexed sales and renewable diesel plus RINs/LCFS boost margins
Core product sales indexed to NYMEX/Platts drive bulk revenue and mix of term/spot contracts optimizes margins. Renewable diesel adds product sales plus RINs/LCFS (D6 ≈ $1/credit; LCFS CA ≈ $150/credit in 2024) improving netbacks. UMO re-refining leverages ~200 million gallons/year U.S. used-oil supply (EPA). Recycling fees rose with ~20% commodity price rebound in 2024.
| Metric | 2024 |
|---|---|
| D6 RIN | $1/credit |
| LCFS (CA) | $150/credit |
| Used oil supply (US) | 200M gal |
| Commodity rebound | ~20% |