The energy transition is here and more vehicles that rely on fuels that aren’t oil-based take to the roads every single day. While internal combustion engines (ICE) won’t disappear any time soon, now is the time to start considering what the next evolution of your fleet will look like in the coming years. Booster is here to help with expert knowledge of fuel options and a reliable source for renewable diesel and biofuels.
The rising popularity of these alternative fuels brings with it new concerns and challenges. Globally, renewable fueling adoption can reduce the need to import crude oil from other countries to make fuels for cars, trucks, trains, and planes. Biofuels are also cleaner-burning fuels and are considered to have lower carbon-dioxide emissions than fuels made from fossil fuels.
Luckily, the U.S. is already the global leader in biofuel production capacity, with total capacity reaching 24 billion gallons per year at the start of 2024 following a 7% increase during 2023. We have substantial biodiesel and renewable diesel production capabilities totaling over 5 billion gallons annually combined, and our ethanol production dominates: capacity is 18.0 billion gallons per year. The US is also projected to significantly expand our market dominance: forecasting indicates America is on track to produce about 1.3 million barrels of oil equivalent per day of biofuels by the end of this decade, representing 40% of total global output.
The renewable diesel sector has shown particularly strong growth, with capacity increasing 44% in the category of renewable diesel and other biofuels in the last few years alone. This robust production tradition puts us far ahead of other major producers like Europe and Brazil, and proves we are the undisputed biofuel production powerhouse with significant room for continued expansion. As Booster has become a leader in renewable diesel adoption, this is fantastic news for our team and for your fleets.
Our relationships with local producers have guaranteed our continued and steady access to American-made renewable diesel producers for our clients. We are the exclusive mobile fueling partner of Chevron’s Renewable Energy Group who supply our bio-based diesel. We believe so strongly in this need for renewable fuels that we have committed to working alongside REG to grow the nationwide infrastructure of biofueling. We’ve carefully built these fueling relationships to make sure our clients can continue to depend on the availability of affordable biodiesel to fuel their fleets even while the global market is in flux.
However, the new higher reliances on renewable diesel is not without its challenges:
- Global production is evolving quickly and can fluctuate with regional disparities and evolving market conditions. The US’s current tariff standoffs have local renewable diesel purchasers fearful of price gauging and supply shortages.
- In Europe, production reached 3.9 billion liters in 2023 and forecasts suggest continued growth. This expansion is supported by regulatory measures and a focus on domestic production, especially following the imposition of antidumping duties on Chinese imports.
- In Asia, countries like Singapore and South Korea are investing in renewable diesel to meet environmental targets, though the region’s market share remains smaller compared to North America and Europe.
- US policy shifts and feedstock constraints have created challenges nationally, leading to a 6.3% decrease in output in January 2025 compared to the previous year.
Here’s a closer look at the specific challenges Booster is already preparing for so we can guarantee availability to our customers:
Biodiesel Feedstock Challenges
At the heart of the renewable diesel scarcity threat lies a fundamental truth: suitable feedstocks are not always in high supply. Biodiesel production relies heavily on feedstocks like soybean oil, used cooking oil (UCO), and animal fats. But the recent surge in production has intensified competition for these resources, leading to market distortions. For example, the heightened demand for soybean oil in renewable fuel production has driven domestic prices upward, rendering U.S. exports uncompetitive on the global stage. Consequently, U.S. soybean oil exports plummeted by 80%, leading to a rise in US importing of soybean oil. This shift underscores the strain on domestic feedstock supplies and the broader implications for global agricultural trade. In light of current global economic trade realities, we could see this affect domestic supply in the future.
Renewable Fuel Policy Shifts and Market Uncertainty
Policy changes have also destabilized reliable production. The transition from the Biomass-Based Diesel Blenders Tax Credit (BTC) to the Clean Fuel Production Credit (CFPC) introduced new complexities into the market. While the CFPC wants to incentivize low-carbon fuel production, its structure has led to reduced overall incentives for biodiesel producers. For example, under the CFPC, the tax credit for 40-CI renewable diesel drops to 15.6 cents per gallon, an 84.4% decrease from the previous $1 per gallon under the BTC. This reduction in financial support has coincided with declining Renewable Identification Number (RIN) prices, further squeezing profit margins for renewable diesel producers. In February 2025, D4 RINs tied to biodiesel and renewable diesel fell below 40 cents per gallon for the first time since 2019, down from an average of $1.50 between 2021 and 2023.
Renewable Diesel Production Slowdowns and Facility Closures
The combined pressures of feedstock availability and reduced financial incentives have led to tangible impacts on renewable diesel production. In January 2025, production decreased to 215.66 million gallons, a 6.3% drop from the same month in the previous year. Some facilities have responded by scaling back operations or even reverting to fossil diesel production.
Regional Disparities and Infrastructure Challenges
The distribution of biodiesel consumption across the country also reveals regional disparities. The West Coast, particularly California, has embraced renewable diesel, with the fuel accounting for nearly 65% of the state’s distillate fuel consumption for transportation in Q3 2024. On the other coast, biodiesel consumption has only been adopted in small volumes, relying heavily on imports from international producers. This uneven adoption highlights infrastructure limitations and the need for investment in renewable fuel production and distribution networks across the country.
Sustainable Biofuel Infrastructure Development
While the current landscape presents significant challenges, there are pathways to address the scarcity of American renewable diesel fuel:
- Diversifying Feedstock Sources: Investing in alternative feedstocks, such as algae-based oils or waste-derived fats, could alleviate pressure on traditional sources.
- Policy Stability and Support: Establishing consistent and supportive policies can provide the financial certainty needed for producers to invest in biodiesel production.
- Infrastructure Development: Creating infrastructure that promotes equitable access to biodiesel and renewable fuels nationwide will help drive production and further adoption.
Choosing mobile fueling partners like Booster who can purchase renewable diesel in bulk, guaranteeing customer access while also demonstrating market value to producers can also help solidify the foundation of renewable fueling options domestically. Learn more about Booster’s renewable energy options, and our commitment to a sustainable future by contacting a member of our team today.