Markets and Trade
AreaUnited States of America
Commodity GroupBiofuels
CommodityRenewable diesel
Date01/06/2021
Policy CategoryRenewable energy
Policy InstrumentBioenergy policies
DescriptionPredicted ‘renewable diesel’ production in the United States to increase significantly through 2024, fuelled by increasingly strict renewable fuel legislation, a series of production incentives, and technological advances. (N.B. Obtained through a hydrogenation process, oil/fat-based ‘renewable diesel’ is chemically identical to petroleum-based diesel; it is valued for its versatility and flexibility in existing petroleum infrastructure and can be blended into regular diesel at any level.)
NotesUNITED STATES OF AMERICA – biofuel policy – renewable diesel production: According to the US Energy Information Administration, renewable diesel production in the United States could increase significantly through 2024. Based on industry projects announced and under construction, the agency forecasted production capacity to grow from 2 million tonnes per year at the end of 2020 to 17 million tonnes by 2024. Increasingly demanding state and federal renewable fuel programmes, various production incentives, and technological advances are expected to drive this expansion. While renewable diesel shares the same oil and fat feedstock as biodiesel, it is chemically identical to petroleum-based diesel and can be blended into regular diesel at any level. Reportedly, besides being valued for its versatility and flexibility in existing petroleum infrastructure, renewable diesel achieves favourable greenhouse gas reduction scores in state/federal biofuel programmes. (See also MPPU June’21)