In 2024, the U.S. biodiesel, renewable diesel and sustainable aviation fuel (SAF) industry achieved record production. A new report, “Economic Impact of Biodiesel on the U.S. Economy 2024,” shows that the industry’s rapid growth also generated a record economic impact. The industry supported 107,400 American jobs and $42.4 billion in domestic economic activity.&nbsp;The total economic impact was nearly double the figure from Clean Fuels’ previous study in 2022. That’s no surprise, since U.S. production capacity doubled between 2022 and today. Nationwide in 2024, availability of biomass-based diesel—including biodiesel, renewable diesel, renewable jet and heating oil—topped 5.1 billion gallons, meeting more than 9% of fuel demand for heavy-duty, on-road transportation. &nbsp;The industry—both fuel producers and soybean processors—invested billions to sustain this growth.Nevertheless, the industry is facing policy uncertainty that threatens those investments and jobs. While market demand and potential for clean fuels continues to grow—with rail, marine heating, and aviation interest strong and growing—many producers are currently shut down and laying off workers.To bolster market certainty and resume growth, Clean Fuels advocated that the U.S. EPA make a step change in the Renewable Fuel Standard volumes for 2026 and 2027, asking for an increase of the biomass-based diesel (BBD) volume to 5.25 billion gallons in 2026. That’s 1.9 billion gallons higher than the 2025 volumes. And the industry asked for continued growth, with BBD volumes raised to 5.75 billion gallons for 2027.In April, Clean Fuels launched a six-figure advertising campaign to back up the industry’s advocacy efforts and build support for a timely bump in BBD volumes. The campaign was designed to highlight for policymakers the unified, industrywide agreement on the request.&nbsp;Earlier, in March, along with farm and feedstock groups, Clean Fuels sent a letter asking the EPA to set 2026 biomass-based diesel (BBD) volumes at 5.25 billion gallons. Later that month, Clean Fuels, the American Petroleum Institute, American Soybean Association, National Oilseed Processors Association, and ethanol trade groups met with EPA to present agreed upon volumes for the 2026 rule, including the 5.25-billion-gallon BBD volume.The group of stakeholders agree that U.S. biomass-based diesel capacity of roughly 6.5 billion gallons is more than sufficient to meet the increase in RFS volumes. Much of the existing capacity is underutilized. The stakeholders also point to projections from the U.S. Energy Information Administration that demand will reach 5.5 billion gallons in 2026, and capacity will continue to grow to 7.3 billion gallons.The stakeholders further agreed that the feedstocks to produce the volumes in America are available. According to an analysis by S&amp;P Global on behalf of NOPA, the soybean processing industry invested more than $6 billion to expand or build 20 crush facilities across 10 Midwest states. The investments will support 1.4 billion additional gallons of U.S. production by 2030, with enough capacity coming online by 2026 to support the 5.25-billion-gallon goal.The U.S. biodiesel and renewable diesel industry used more than 1 billion pounds of domestic soybean oil each month throughout 2024—an increase of 15% since 2022. Biodiesel and renewable diesel production support $1.10 in value for every bushel of soybeans grown in the U.S. Demand for 5.25 billion gallons of biomass-based diesel will create a value-added market for more than 50 billion pounds of fats and oils each year. If the trend for policy during the next several years is for domestic feedstocks and domestic production, then our industry is going to create a lot of new demand for U.S. agriculture and biomass production.For our industry to follow through and make good on the investments and growth of the past few years—and to get American biodiesel workers back to producing much-needed fuel—we need stable policy that enables us to coordinate production growth with feedstock supplies and innovation. An appropriate step upward in the RFS program is a great start.Author: Paul Winters&nbsp;&nbsp; Director, Public Affairs and Federal Communications&nbsp;&nbsp; Clean Fuels Alliance America&nbsp; &nbsp;

Reestablishing Policy Certainty

Upcoming Events

North American SAF Conference & Expo

2026 International Biomass Conference & Expo

Reestablishing Policy Certainty.css-7jxktu{position:absolute;bottom:0px;left:0px;right:0px;height:3px;border-radius:3px;background-color:var(--chakra-colors-brandBlack);}

Upcoming Events

North American SAF Conference & Expo

2026 International Biomass Conference & Expo

Reestablishing Policy Certainty