Renewable Diesel Fuel US – Low-carbon diesel alternatives derived from renewable feedstocks.

Renewable Diesel Fuel US demand and production represent the single largest engine of global market growth. The US market is characterized by a unique regulatory landscape that has profoundly shaped its growth trajectory. Key policies are the Federal Renewable Fuel Standard (RFS) and the highly influential California Low Carbon Fuel Standard (LCFS). The LCFS, in particular, rewards fuels based on their verified carbon intensity (CI) score, making high-quality green diesel—which achieves a 60-90% reduction in lifecycle GHG emissions—an extremely valuable compliance tool.

This policy landscape has triggered a wave of investment, leading to the conversion of numerous existing petroleum refineries into renewable diesel plants, with US capacity exceeding that of conventional biodiesel in recent years. This strategic shift in refining capacity ensures a robust domestic supply. However, the recent shift from a blenders' tax credit to a producer's credit (Section 45Z Clean Fuel Production Credit) has caused a sharp decline in imports, favoring domestically produced fuel and further stimulating US-based capital investment and production expansion. For sectors like long-haul trucking and rail, renewable diesel fuel US is considered the most viable, near-term solution for decarbonization.

Renewable Diesel Fuel US

Q1: What is renewable diesel fuel?
A1: A drop-in fuel chemically similar to petroleum diesel, but made from renewable sources.

Q2: How is it different from biodiesel?
A2: Unlike biodiesel, renewable diesel is fully compatible with existing engines.

Q3: Why is the US market growing?
A3: Federal and state policies promoting renewable fuel standards.

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