In Washington, Energy Information Administration data shows that in January 2023, U.S. production capacity of renewable diesel and other biofuels reached 3 billion gallons per year, surpassing U.S. biodiesel production capacity for the first time. Rising targets for state and federal renewable fuel programs and the renewal of biomass-based diesel tax credits are driving this growth in U.S. renewable diesel capacity.
The EIA began collecting data about U.S. capacity of renewable diesel and other biofuels in 2021. Since 2021, renewable diesel and other biofuels production capacity has more than tripled in the United States. Over the same period, biodiesel capacity has declined 13%. Renewable diesel is a fuel that is chemically equivalent to petroleum diesel and nearly identical in its performance characteristics. The same is not true of biodiesel, which is chemically different from petroleum diesel.
Nationwide, overall biofuels production capacity—which includes renewable diesel, biodiesel, ethanol, and other biofuels—reached 23 billion gallons per year (gal/y) in January 2023, a 6% increase in total production capacity from January 2022. Fuel ethanol accounted for 78% of U.S. biofuel production capacity, renewable diesel and other biofuels accounted for 13%, and biodiesel accounted for 9%.
