The United States has witnessed a remarkable shift towards renewable energy in recent years, with a growing emphasis on reducing greenhouse gas emissions and achieving a sustainable future. Renewable diesel has emerged as a alternative to conventional petroleum-based diesel, while providing engine performance on par with petroleum diesel.
Renewable Diesel Producers in the United States:
Neste, a global leader in renewable diesel production, has made significant strides in the United States. The company operates multiple renewable diesel refineries across the world, including its flagship facility in Rotterdam, the Netherlands. To cater to the growing demand in North America, Neste has expanded its production capacity in the United States. The company’s renewable diesel is derived from 100% renewable raw materials, such as waste fats and vegetable oils, resulting in a fuel with significantly lower carbon emissions. Neste has already established a strong presence in the United States, and their production volumes are expected to increase significantly over the next five years.
Diamond Green Diesel (Valero and Darling Ingredients):
Diamond Green Diesel (DGD) is a joint venture between Valero Energy Corporation and Darling Ingredients Inc. that focuses on producing renewable diesel in the United States. The DGD facility, located in Norco, Louisiana, is one of the largest renewable diesel refineries in the country. It has the capacity to produce approximately 18,000 barrels per day (bpd) of renewable diesel, equating to over 600 million gallons per year. The joint venture partners are committed to expanding their renewable diesel production capabilities, with future projects expected to increase production volumes even further.
Renewable Energy Group (REG):
Renewable Energy Group (REG), headquartered in Ames, Iowa, is a leading producer of advanced biofuels, including renewable diesel, in the United States. The company operates multiple bio-refineries across the country, strategically located to maximize feedstock availability and transportation logistics. REG’s renewable diesel production is expected to witness significant growth in the coming years due to increasing demand and favorable regulatory policies promoting renewable fuels. The company has continuously invested in expanding its production capacity, making them a key player in the renewable diesel market.
Marathon Petroleum Corporation, one of the largest petroleum refining companies in the United States, has also entered the renewable diesel market. The company is repurposing existing refining infrastructure to produce renewable diesel from a variety of feedstocks, including soybean oil, corn oil, and animal fats. Marathon Petroleum aims to capitalize on its extensive refining capabilities and distribution network to expand its renewable diesel production and meet the growing demand for sustainable transportation fuels.
Estimated Production Volumes and Driving Factors:
The production of renewable diesel in the United States is expected to experience substantial growth over the next five years. While precise figures can vary due to market dynamics and regulatory changes, industry experts anticipate a significant increase in production capacity and output. Factors driving this growth include:
Federal and state-level regulations, such as the Renewable Fuel Standard (RFS) and Low Carbon Fuel Standard (LCFS), have played a pivotal role in incentivizing the production and consumption of renewable fuels, including renewable diesel. These policies impose blending mandates and create markets for renewable fuels, encouraging companies to invest in production infrastructure and increasing overall production volumes.
Environmental Sustainability Goals:
The commitment to environmental sustainability and reducing carbon emissions has become a top priority for businesses, governments, and consumers alike. Renewable diesel, otherwise referred to as R99, offers a viable solution for achieving these goals, as it significantly reduces greenhouse gas emissions compared to traditional diesel. The increasing awareness and demand for cleaner transportation fuels are expected to drive the production of renewable diesel in the United States.
Investment in Production Infrastructure:
Major players in the energy industry, such as Neste, Valero, and Marathon Petroleum, have made substantial investments in retrofitting existing refineries and constructing new facilities dedicated to renewable diesel production. These investments indicate a long-term commitment to renewable diesel and signal the potential for significant production increases in the coming years.
Renewable diesel production in the United States is poised for remarkable growth over the next five years, driven by regulatory support, environmental sustainability goals, and significant investments by key industry players. Companies like Neste, Diamond Green Diesel, Renewable Energy Group, and Marathon Petroleum are leading the charge, expanding their production capacities to meet the growing demand for sustainable transportation fuels. With these advancements, the United States is well on its way to achieving a greener and more sustainable future, reducing carbon emissions and promoting a cleaner energy landscape.