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Renewable diesel production ‘booming’ as national availability remains in question

April 18, 2023

Source: Commercial Carrier Journal

Market forecast reports are indicating a large uptick in renewable diesel production in the U.S. as most of low-carbon fuel continues to be confined to California.

The Department of Energy reported that renewable diesel production could more than double by the end of 2025 “based on several announcements for projects that are either under construction or could start development soon.”

Major energy companies, including BP, Chevron, Marathon, Phillips 66 and Shell, have announced or already added renewable diesel production to a growing line-up of carbon-cutting fuels. Diamond Green Diesel continues to dominate production in the U.S. with one plant in Texas and another in neighboring Louisiana with Marathon quickly closing in for the No. 2 spot.

According to the 2022 State of Sustainable Fleets report from Gladstein, Neandross & Associates (GNA), Marathon is “converting a refinery in Martinez, California, which is slated to become the second-largest renewable diesel facility in the U.S.” this year with annual production capacity anticipated at 730 million gallons.

The DOE reported that U.S. renewable diesel production reached 2.6 billion gallons in 2022, and by the end of 2025 they think production could reach 5.9 billion gallons a year.

Drawing on recent data, GNA’s vice president of market development, Nate Springer, said they expect to see renewable diesel production ramp up fast.

“GNA’s analysis of LCFS [Low Carbon Fuel Standard] data from the first three quarters of 2022 in California reveals that RD made up 83% of all bio-based diesel consumed in transportation,” Springer said. “We believe that national RD production has at least doubled in the past year, and we expect the industry will hit its 2025 goal early of 5-billion-gallons in annual capacity.

Read more via Commercial Carrier Journal.