Soybean oil and new feedstocks drive growth in clean fuels industry
Tomorrow is National Biodiesel Day, observed each year on March 18, it highlights the growing role of renewable fuels in today’s energy system and honors the legacy of Rudolf Diesel.
Rudolf Diesel, the inventor of the diesel engine, originally designed his engine to operate using peanut oil. His early vision showed that vegetable oils could serve as renewable fuel sources, an idea that continues to shape the clean fuels industry today.
The biodiesel industry has expanded significantly over the years. In 2023, the United States produced about 4 billion gallons of biodiesel and renewable diesel. Soybean oil remains one of the most important feedstocks used in this production, contributing roughly half of the total supply.
Today, nearly 50 percent of the soybean oil produced in the United States is used to make biofuel. The clean fuels industry also consumes nearly one billion pounds of soybean oil every month to support biodiesel, renewable diesel, and sustainable aviation fuel production.
“Demand is better than ever, as organizations continue to seek the lowest cost option to decarbonize using domestically produced feedstocks,” said Clean Fuels COO Doug Whitehead. “The benefits include cleaner air, economic growth for our rural communities, immediate cost savings and overall better engine performance.”
This strong demand for soybean oil supports farm income and agricultural markets. Nationally, biodiesel demand contributes about 10 percent of the price of a bushel of soybeans, showing how renewable fuel markets help strengthen crop values for farmers.
The economic benefits can also be seen at the state level. In Kansas alone, the biomass-based diesel industry generated about 149 million dollars in value for farmers in 2024. These growing markets provide new opportunities for agricultural producers while supporting rural communities.
To meet rising demand, researchers and farmers are exploring additional feedstock. Winter cover crops and oilseed crops such as pennycress and Brassica carinata are being studied as new sources for renewable fuels. These crops can be integrated into existing crop rotations and provide additional income opportunities for farmers.
Industry leaders say demand for renewable fuels continues to grow as companies and transportation sectors look for affordable ways to reduce carbon emissions. Biodiesel, renewable diesel, and sustainable aviation fuel offer immediate solutions that can lower emissions while supporting domestic agriculture.
As innovation continues and new feedstocks are developed, renewable fuels are expected to play an important role in creating a more sustainable energy future.
Photo Credit: Pexels - Engin Akyurt