Increased awareness and new policies are driving record use of biodiesel and renewable diesel fuels.
The U.S. is on pace to surpass 5 billion gallons of biodiesel and renewable diesel consumption for the first time ever.
According to the Clean Fuels Alliance, 2024 saw increased efforts from states to drive adoption, updates to technical standards, growth in soybean crush capacity and growing public support for clean transportation fuel.
The result, according to Clean Fuels Alliance America CEO Donnell Rehagen, is that a strong 2024 has set the industry up well for further growth in air, marine, rail and heavy-duty transportation use.
“Consumers and corporations are demanding more clean fuel, and they are increasingly turning to biodiesel and renewable diesel to meet those demands,” Rehagen said. “Our industry has become a central force in the global effort to curb greenhouse gas emissions.”
More State Clean Fuel Policies
State policy in 2024 helped grow clean fuel use, according to the Clean Fuels Alliance.
Notable examples include:
- New Mexico, which became the fourth state to implement a Clean Transportation Fuel Standard.
- Nebraska expanded its biodiesel retail program to allow for more participation from state fuel retailers. Nebraska also became the latest state to pass incentives for the in-state production of sustainable aviation fuel (SAF).
- California saw both biodiesel and renewable diesel grow under the state’s Low Carbon Fuel Standard. The two fuels are now 75% of California’s diesel fuel supply, and they generate more credits (45%) than any other fuel type.
- Iowa reached a record 486.5 million gallons of biodiesel sales in 2023, nearly triple the 2007 volume. This growth was driven by state incentives like tax credits and infrastructure investments. This results also solidify Iowa’s leadership in renewable energy, benefiting the agricultural sector, boosting local economies, and making biodiesel a key player in the state’s diesel market, now accounting for 58.7% of sales.
Updated Fuel Specs and New Opportunities
Thanks to the work of the Clean Fuels technical team and other industry experts, 2024 brought new market opportunities with updated fuel specifications and growing compatibility with manufacturers.
These include:
- ASTM D6751 standard (specifications for Biodiesel Fuel Blendstock for Middle Distillate Fuels) was updated to ensure that higher biodiesel blends can meet the stringent requirements of modern engines and after-treatment systems by including lower limits for metals content.
- Global rail technology leader Wabtec conditionally approved B20 biodiesel blends for their locomotive engines after extensive testing.
- ISO 8217:2024 specification for marine fuels was adopted, allowing use of up to B100 in nearly every grade of marine fuel applications for both distillates and residual fuels.
Making Farms Stronger
According to the Clean Fuel Alliance, clean fuel production uses more than a billion pounds of soybean oil per month and increasing amounts of soybean meal for feed markets.
This is driving a 30% increase in crush capacity across the United States.
More than 20 new processing plants or expansions are underway that will add 650 million bushels of capacity, representing an investment in rural America of more than $6 billion.
This also represents growth in feedstock diversity, as over 20% of the new U.S. crush capacity will process soft seeds like canola.
Taken as a whole, 2024 laid the groundwork for even more growth in the year ahead, Rehagen said.
“The rail and marine sectors are poised for growth, and airlines are ready to start using more sustainable aviation fuel,” he said. “We’ve only just begun to meet the growing needs for clean fuel in the U.S. and around the world.”
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