EIA: Almost all US renewable diesel is consumed in California; most isn’t made there
22 July 2023
California accounts for nearly all renewable diesel consumption in the United States, but most of it isn’t made in the state, according to the US Energy Information Administration (EIA). More than eight times the renewable diesel was consumed in California than was produced there in 2021. Instead, most of California’s renewable diesel was produced in other states or was imported, mostly from Singapore.
Data source: US Energy Information Administration, State Energy Data System
California’s renewable diesel consumption grew substantially after its Low Carbon Fuel Standard (LCFS) went into effect in 2011. Between 2011 and 2021, consumption grew from 1 million barrels to 28 million barrels per year—more than 18 times its original volume.
The California LCFS requires transportation fuels used in the state to be mixed with biofuels to lower their carbon intensities. California is the only state that offers a rebate to customers who purchase renewable diesel specifically, increasing renewable diesel use in the state as it becomes more economically competitive with biodiesel. Other states have various biodiesel laws and incentives.
Oregon was the only other state where renewable diesel was consumed in 2021, but it accounted for less than 1% of the US total. Oregon requires petroleum diesel fuel sold in the state to be blended with either biodiesel or renewable diesel. Beginning in 2023, Washington also began requiring petroleum diesel to be blended with biodiesel or renewable diesel, but it did not report any renewable diesel consumption in 2021.
Six states—Louisiana, North Dakota, California, Wyoming, Washington, and Kansas—accounted for all renewable diesel production in the United States in 2021. Many of the plants in the other states have exclusive agreements to send all of the renewable diesel they produce to distributors in California.
Louisiana, with its substantial petroleum infrastructure, has been the state with the most renewable diesel production since 2011. More than 9 million barrels of renewable diesel was produced in Louisiana in 2021—about 46% of the US total. A plant located in Norco, Louisiana, has the most renewable diesel production capacity in the United States, about 64,000 barrels per day.
US renewable diesel production capacity could more than double by 2025, boosting domestic production. EIA expects that both renewable diesel production and consumption will continue to grow in the United States over the next few years.
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