Renewable diesel supply to exceed that of biodiesel: US Energy Information Administration 

Renewable diesel supply to exceed that of biodiesel: US Energy Information Administration 
Renewable diesel supply is projected to hit 130,000 barrels daily in 2022 (Shutterstock)
Short Url
Updated 24 March 2022
Follow

Renewable diesel supply to exceed that of biodiesel: US Energy Information Administration 

Renewable diesel supply to exceed that of biodiesel: US Energy Information Administration 

 

RIYADH: Renewable diesel supply has been estimated to exceed that of biodiesel supply, according to the US Energy Information Administration’s Annual Energy Outlook 2022. 

Renewable diesel supply is projected to hit 130,000 barrels daily in 2022 and to reach 145,000 barrels daily by 2050.

This indicates that renewable diesel production capacity will ramp up in the near future.

Both fuels are made of the same oils and fats; yet, the differences between them lie in the refining process and cold weather viability.

The hike in supply is mainly attributed to renewable diesel’s compatibility with existing distribution infrastructure and engines as well as higher state and federal targets for renewable fuel production.

Another reason for the projected jump in supply is incentive from tax credits and the transformation of existing petroleum refineries into renewable ones.

Both renewable diesel and biodiesel compete for the same feedstocks; therefore, any growth in renewable diesel production displaces that of biodiesel.

Together, both fuels are expected to account for less than 8 percent of diesel production in the US by 2050.