As the conversation of sustainability goes global, the use of renewable and sustainable materials for household necessities and daily operations has graduated from being a nice-to-have to a need-to-have. Energy sectors across the world especially reflect this, with many countries looking at sustainable fuel sources to increase energy security. The U.S. is taking strides to take advantage of sustainable energy options, especially in the fuel industry. According to the International Energy Agency, biofuels constituted 3.6 percent of global transport energy demand, primarily road transport, in 2021. In the same year, biofuels consumption made up about 5 percent of total U.S. transportation sector energy consumption as recorded by the U.S. Energy Information Administration.

Renewable diesel is the main driver for the increase in U.S. biomass-based diesel production and consumption. As the demand for renewable diesel grows, so does the demand for feedstock. However, environmental conditions, including the weather, have affected the supply of grains like soybeans, and the S&D balance sheet for soybean oil has become increasingly tight. EPA’s recent approval of the use of canola (rapeseed) for advanced biofuel came at the right time to help diversify feedstock used for renewable diesel and contain the growing demand for advanced biofuels in the U.S. We may see canola acreage expand in North Dakota and Canada as a result.

Monthly utilization of major biomass-based diesel feedstocks

Source: USDA
Posted by: Information Services
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