The U.S. Energy Information Administration (EIA) has begun publishing new data series on biofuels and distillate consumption in its September 2024 Short-Term Energy Outlook. These new series help better capture how biofuels, such as renewable diesel and biodiesel, contribute to total U.S. distillate fuel consumption (which includes diesel, fuel oil and heating oil).
Previously, EIA only reported volumes of distillate fuels based on petroleum products. However, this new approach includes biofuels as a significant part of total consumption. This is particularly relevant on the U.S. West Coast, where policies such as California’s Low Carbon Fuel Standard are driving the growth of biofuels. By 2024, biofuels are expected to account for 9% of total distillate consumption.
Renewable diesel has grown rapidly, with production increasing from 70,000 barrels per day (b/d) in 2021 to 240,000 b/d in 2024. This growth reflects increased private investment in biofuel production, which has led to an increase in its share of the fuel market.
