Clean Fuels: Biomass-based diesel can replace Russian oil

Today, Clean Fuels Alliance America sent a letter to President Biden pledging readiness to maintain homegrown fuel supplies, mitigate consumers’ economic pain, and speed the nation’s clean energy future in support of the administration’s ban on imports of Russian petroleum. The letter urges the administration to get the Renewable Fuel Standard back on track as a key policy driver of American energy independence.

“America’s biodiesel, renewable diesel, and sustainable aviation fuel producers are working hard to provide better, cleaner fuels that provide consumers value and extend the diesel fuel supply,” the letter states.

“Reducing availability of biodiesel and renewable diesel right now would impose higher costs on American consumers – both in the price of fuel and other goods today and in terms of health tomorrow. We urge your administration to have confidence in the potential of America’s biomass-based diesel producers to replace Russian oil with homegrown, renewable, low-carbon fuel,” the letter concludes.

The letter notes that in 2020, during the pandemic and associated shortfalls in fuel refining, the clean fuels industry contributed more than 3 billion gallons of biodiesel and renewable to maintain fuel supplies and keep essential goods moving. According to data from the World Agricultural Economic and Environmental Services, the additional supply of clean fuel that year kept diesel fuel prices $0.24 per gallon lower than they would have been otherwise.

Kurt Kovarik, Clean Fuels’ vice president of federal affairs, adds, “The Renewable Fuel Standard was established as a cornerstone of America’s energy independence. Since homegrown biodiesel and renewable diesel are direct replacements for foreign oil, a strong RFS is more important today than ever for the nation’s national security.”

The letter requests that the administration quickly finalize the proposed RFS volumes for 2021 and 2022 and drop the proposal to “reset” previously established 2020 volumes.

The U.S. biodiesel and renewable diesel industry supports 65,000 U.S. jobs and more than $17 billion in economic activity each year. Every 100 million gallons of production supports 3,200 jobs and $780 million in economic opportunity. Biodiesel production supports approximately 13 percent of the value of each U.S. bushel of soybeans.