Industry Leaders Point to Collective Potential of Biodiesel and Renewable Diesel

In 2023, domestic renewable diesel production capacity reached 3 billion gallons annually, according to the U.S. Energy Information Administration. In doing so, its capacity surpassed that of biodiesel for the first time. This is exciting news for soybean producers, but it is also particularly striking considering that figure is more than three times what it was in 2021. Such a rapid increase reflects the unbridled enthusiasm for renewable diesel's potential.

However, that's not to say that biodiesel's star has lost its shine. From the perspective of Clean Fuels Alliance America (formerly the National Biodiesel Board), both renewable diesel and biodiesel will continue to factor prominently in the future of clean energy as governmental and corporate entities look for ways to lower greenhouse gas (GHG) emissions.

Clean Fuels director of communications Heather Buechter pointed to the persistence and ingenuity of the soybean farmer-led organization and other industry advocates, coupled with increased emphasis on emissions reductions, when discussing the growth in demand for cleaner, biomass-based fuels.

"We've been knocking on doors with these industries for three decades, and now we're finally having them come to us saying, 'Hey, we want to learn more about your fuels and how they might be a solution for us,'" said Buechter. "They've set these goals, and the easiest, most cost-effective ways available to meet them are going to be with biodiesel and renewable diesel."

The difference between renewable diesel and biodiesel

You aren't alone if you're trying to figure out the difference between renewable diesel and biodiesel. Both are considered biomass-based fuels made from identical feedstock — primarily vegetable oils, animal fats and used cooking oil — that are drop-in replacements for petroleum diesel. Still, the two are not one and the same.

Biodiesel, produced through a process called transesterification, has been used widely for more than two decades. Most diesel engines in today's market support B20 (20 percent biodiesel) without modification, but some will accommodate up to B100 (pure biodiesel).

Renewable diesel is a much newer product derived from a high-heat, high-pressure process that more closely mirrors traditional diesel fuel production. It can be used in place of petroleum diesel without blending or engine modifications.

According to Clean Fuels, biodiesel and renewable diesel reduce GHG emissions by 70 percent or more on average when used in place of petroleum diesel. But biodiesel extends environmental benefits even further by producing less particulate matter, aromatic compounds and carbon monoxide. In fact, a practical, environmentally friendly approach that would require no engine modifications involves utilizing an 80/20 blend of renewable diesel and biodiesel.

New industries turn to cleaner, biomass-based fuels

Ground freight transportation represents the largest consumer of biomass-based fuels, but Clean Fuels has seen significant progress in other sectors as well, including marine transport and the rail industry. Union Pacific recently became a Clean Fuels member, and the industry giant is one of several rail leaders that have piloted projects incorporating biodiesel and renewable diesel into their fleets.

"They're really bullish on biodiesel because they want to lower emissions by the end of the decade," explained Buechter. "The easiest way to do that is to implement biodiesel into their fleets."

Municipal public transportation and school bus fleets have also turned to biodiesel and renewable diesel in recent years, guided largely by emissions goals and environmental commitments.

The broad adoption of biomass-based fuels points back to the longstanding environmental commitments of soybean farmers. "A lot of soybean farmers would tell you that they're the original environmentalists, that everything they do they view as sustainable," said Buechter. "I think we're just continuing that mission with using that soybean oil to turn it into biodiesel and renewable diesel, and now we're fueling the world."

Learn more about clean fuels

South Dakota Soybean remains committed to advancing biomass-based fuels like biodiesel, renewable diesel and sustainable aviation fuel (SAF) through its work with Clean Fuels Alliance America. To learn more, farmers can visit cleanfuels.org. They can also find an interactive biodiesel locator and take a closer look at the full breadth of research and promotion efforts funded through their checkoff at sdsoybean.org.