U.S. Renewable Diesel Capacity Sees Record Growth in 2024

The U.S. Energy Information Administration (EIA) reports that the country’s renewable diesel production capacity has reached record levels in 2024, driven by new facilities and increased production from existing plants. Renewable diesel, a cleaner alternative to traditional diesel, has gained significant traction as the U.S. pushes toward its climate goals, with demand from both federal mandates and commercial users fueling this growth.

As of early 2024, the EIA’s data shows that the nation’s renewable diesel production capacity hit nearly 5 billion gallons per year. This expansion is the result of numerous new projects coming online and upgrades at existing facilities, reflecting heightened investment in sustainable fuel sources. Unlike biodiesel, renewable diesel can be used directly in diesel engines without modifications, making it an attractive option for transportation sectors aiming to reduce greenhouse gas emissions.

Renewable diesel’s growing capacity is largely concentrated in the Gulf Coast, West Coast, and Midwest regions, where facilities benefit from proximity to feedstocks like soybean oil, animal fats, and other biowastes. Federal incentives, such as tax credits for renewable fuel production, have also played a crucial role in supporting the expansion of these facilities.

The EIA notes that renewable diesel's rising production capacity aligns with the government’s environmental targets and has the potential to displace a significant portion of fossil fuel diesel in the coming years. As renewable diesel production continues to increase, the U.S. aims to further reduce its carbon footprint and support a transition to more sustainable energy sources across industries.