(Credit: Pixabay)California is the largest consumer of renewable diesel in the United States, though most of it isn’t produced in the state.
In fact, California used eight times more the amount of renewable diesel than was consumed there in 2021. The diesel used by the state was mostly imported from Singapore or produced in other states, according to the U.S. Energy Information Administration, which published a report on annual U.S. renewable diesel consumption and production.
Renewable diesel, which is similar to biodiesel, is a liquid biofuel that is chemically equivalent to petroleum diesel and can be used as an additive or substitute for diesel fuel in vehicles, according to the EIA.
“Unlike biodiesel, renewable diesel can be transported in petroleum pipelines and sold at retail stations without blending with petroleum diesel,” the EIA explained in its report. “It is often produced at existing petroleum refineries that are retrofitted to make biofuels instead of petroleum products.”
One major influence on California’s high consumption of renewable diesel is the state’s Low Carbon Fuel Standard, which went into effect in 2011 and requires a reduction in carbon intensity in transportation vehicles by mixing transportation fuels with biofuels. Between 2011 and 2021, consumption grew 28 million barrels per year, up from 1 million barrels per year.
California is one of only two states that consumed renewable diesel in 2021, with Oregon consuming less than 1% of the U.S. total. Oregon requires petroleum diesel fuel sold in the state to be blended with either biodiesel or renewable diesel, though California is the only state to offer rebates to customers who purchase renewable diesel specifically. Washington enacted a requirement for diesel to be blended with biodiesel or renewable diesel, but the state did not consume renewable diesel in 2021, the year of the report.
While consumption of renewable diesel is mostly confined to California, six states are the producers –– Louisiana, North Dakota, California, Wyoming, Washington and Kansas. Many of the production plants have contracts to exclusively send all renewable diesel to distributors in California.
Louisiana, in particular, has a booming petroleum infrastructure and has lead with the most renewable diesel production since 2011, producing more than 9 million barrels in 2021. That’s about 46% of the U.S. total for the year. One single plant, located in Norco, Louisiana, produces about 64,000 barrels per day.
With more states enacting new fuel standards, renewable diesel and biodiesel demand is expected to continue rising in the United States. Fortunately, the EIA predicts renewable diesel production capacity could more than double by 2025.
