By producing fuel using sources with lower carbon intensity than traditional petroleum-based products, the U.S. biofuels sector is well-positioned to play a major role in reducing greenhouse gas emissions. According to a new report from CoBank’s Knowledge Exchange, the recent surge of investments in U.S. renewable diesel production capacity is likely to ignite a period of growth and transition for the biofuels industry.
“The outlook for biofuels is favorable as the U.S. and other leading developed countries embrace renewable liquid transportation fuels as a solution to reduce greenhouse gas emissions,” said Kenneth Scott Zuckerberg, lead grain and farm supply economist for CoBank. “Renewable diesel offers the most intriguing opportunity in the biofuels space, given the extraordinary growth potential.”
As major oil companies have begun embracing renewable diesel, U.S. production is expected to increase exponentially. Several industry stakeholders have announced plans for new soybean crush and refinery facilities over the last two years. Soybean oil is the feedstock most commonly used for producing renewable diesel. Combined, the proposed crush and refinery projects would increase U.S. renewable diesel production capacity six-fold by 2030 to 6.5 billion gallons annually.
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