Renewable Diesel: Supply and Demand Through 2025
Renewable diesel is one of the fastest growing advanced biofuels in the U.S., with 22 operational facilities and 20 more in development or under construction. As a drop-in fuel, chemically identical to petroleum diesel, renewable diesel can be seamlessly integrated into the existing fuel supply chain.
The expansion of renewable diesel production facilities has boosted overall capacity, with forecasts from the Energy Information Administration and Lipow Oil Associates predicting substantial growth in renewable diesel and biodiesel through 2025.
To sustain this growth in production capacity, policymakers must ensure feedstock availability keeps pace. Fortunately, a study conducted by LMC International estimates that 68 million metric tons of feedstocks – enough to produce over 19 billion gallons of renewable diesel – will be available by 2025, even after meeting global food demand.
We are at a climate crossroads, and the urgency to reduce emissions – both domestically and globally – has never been greater. The nation has set several ambitious climate deadlines, including President Biden’s goals to transition to zero-emission heavy-duty vehicles by 2050, and the aviation industry’s target of net zero emissions by 2050, Achieving these goals will require an all-of-the-above approach, including renewable diesel.
This data clearly shows that the renewable fuels industry is prepared to meet the world’s demand for clean, low-carbon fuels. Companies such as Braya Renewable Fuels, Global Partners, Lanza Jet, Neste, and World Energy – just a few of ABFA’s member companies – are already supplying renewable diesel worldwide. To achieve these critical climate goals, we must fully embrace this inclusive energy strategy and support the biofuels sector.
To ensure these growth predictions become a reality, it is crucial to revise the Renewable Fuel Standard (RFS) to accurately reflect advanced biofuels’ production capacity. With supportive policies in place, ABFA’s members can drive the transition to a cleaner, decarbonized future, with projected annual growth of 41.8% over the next six years. We call on U.S. policymakers to recognize advanced biofuels as a vital power source in the green energy landscape.
For more information on ABFA’s member companies, explore our newly released member guidebook.