Clean Fuels Alliance America is celebrating progress in 2024 with the U.S. on pace to surpass 5 billion gallons of biodiesel and renewable diesel consumption for the first time, thanks to a year that saw increased efforts from states to drive adoption, updates to technical standards, growth in soybean crush capacity and growing public support for clean transportation fuel.
Clean Fuels CEO Donnell Rehagen says a strong 2024 has set the industry up well for further growth in aviation, marine, rail and heavy-duty transportation use. “Consumers and corporations are demanding more clean fuel, and they are increasingly turning to biodiesel and renewable diesel to meet those demands,” Rehagen said. “Our industry has become a central force in the global effort to curb greenhouse gas emissions.”
Among the wins for the industry this year:
– New Mexico became the fourth state to implement a Clean Transportation Fuel Standard.
– Nebraska expanded its biodiesel retail program and passed incentives for the in-state production of sustainable aviation fuel.
– California grew its use of iodiesel and renewable diesel under the state’s Low Carbon Fuel Standard, now accounting for 75% of California’s diesel fuel supply.
– Iowa reached a record 486.5 million gallons of biodiesel sales in 2023, nearly triple the 2007 volume, now accounting for 58.7% of diesel sales in the state.
In addition, through the work of the Clean Fuels technical team and other industry experts, 2024 brought new market opportunities with updated fuel specifications and growing compatibility with manufacturers.
Clean fuel production uses more than a billion pounds of soybean oil per month and increasing amounts of soybean meal for feed markets. This is driving a 30% increase in crush capacity across the United States.
More than 20 new processing plants or expansions are underway that will add 650 million bushels of capacity, representing an investment in rural America of more than $6 billion. This also represents growth in feedstock diversity, as over 20% of the new U.S. crush capacity will process soft seeds like canola.
Rehagen says he expects greater growth in the year ahead. “The rail and marine sectors are poised for growth, and airlines are ready to start using more sustainable aviation fuel,” he said. “We’ve only just begun to meet the growing needs for clean fuel in the U.S. and around the world.”