U.S. Biodiesel and Renewable Diesel Imports Decline 36% in 2014
After reaching record levels in 2013, United States imports of biomass-based diesel fuel (both biodiesel and renewable diesel) fell 36%, to 333 million gallons in 2014.
Analysts attributed the development to uncertainty surrounding future Renewable Fuel Standard (RFS) targets and the absence of a late-year influx of volumes from Argentina.
The strongest drivers of the resurgence in U.S. biomass-based diesel demand since 2012 have been increasing RFS targets and the on-again, off-again biodiesel tax credit.
Biodiesel and renewable diesel are valuable because they qualify for the two major renewable fuel programs in the United States: the RFS applied at the national level, and California’s Low Carbon Fuel Standard (LCFS).
Biomass-based diesel fuels have, according to some experts, additional advantages over other renewable fuels because of their relatively high energy content and low carbon intensity, which allow them to qualify for higher credit values in both renewable fuel programs.
Both biodiesel and renewable diesel fuels are produced from refining vegetable oils or animal fats. Biodiesel is blended with petroleum diesel up to 5% or 20% by volume (referred to as B5 and B20, respectively).
Renewable diesel is a diesel-like fuel that meets specifications for use in existing infrastructure and diesel engines, and thus is not subject to any blending limitations.
Category: Fuel and Oil
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