Domestic Biodiesel Production Steady While Imports Grow Exponentially

WASHINGTON, DC – While the U.S. ethanol industry continues to struggle with low prices and poor demand due to the ongoing coronavirus shutdown, the future for renewable diesel looks challenging. According to the May 2020 Short-Term Energy Outlook (STEO) from the U.S. Energy Information Administration (EIA), continued growth is expected in renewable diesel imports into California. The majority of biomass-based diesel imports last year came from Singapore, rising 49 percent year over year to a record of nearly 17,000 barrels per day. Biomass-based diesel generates credits under California’s Low Carbon Fuel Standard (LCFS) and is increasingly used to meet the increasing fuel standards due to favorable greenhouse gas reduction scores. Since 2016, all renewable diesel imports have entered the country in California, and EIA projects this years’ levels to increase by 25 percent. In addition, imports are expected to flood the market in 2021, increasing by almost 60 percent, while domestic biodiesel production this year will be similar to last season’s levels.
(SOURCE: U.S. Energy Information Administration)