JEFFERSON CITY, Mo. – According to Clean Fuels Alliance America (CFAA), the U.S. is on pace to surpass 5 billion gallons of biodiesel and renewable diesel consumption for the first time, capping a 2024 that 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.
CFAA CEO Donnell Rehagen said 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.”
States implement clean fuel policy
State policy in 2024 helped grow clean fuel use with the following changes reported in 2024:
- New Mexico: New Mexico became the fourth state to implement a Clean Transportation Fuel Standard.
- Nebraska: The state 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: Biodiesel and renewable diesel grew 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: Numbers released this year show Iowa reached a record 486.5 million gallons of biodiesel sales in 2023, nearly triple the 2007 volume, driven by state incentives like tax credits and infrastructure investments. This growth solidifies 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 create 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,” the CFAA said in a press release.
- 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.
Biodiesel, renewable diesel make farms stronger
According to the release, 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,” the release said. “This also represents growth in feedstock diversity, as over 20% of the new U.S. crush capacity will process soft seeds like canola.”
Looking ahead
Rehagen noted in the release that 2024 laid the groundwork for even more growth in 2025.
“The rail and marine sectors are poised for growth, and airlines are ready to start using more sustainable aviation fuel,” Rehagen said. “We’ve only just begun to meet the growing needs for clean fuel in the U.S. and around the world.”
Dana Guthrie is an award-winning journalist who has been featured in multiple newspapers, books and magazines across the globe. She is currently based in the Atlanta, Georgia, area.
