
The renewable diesel industry is currently experiencing significant changes. Federal and state policies are now prioritizing emission reductions as the world looks toward the future. These policies have created substantial renewable diesel production capacity growth in both domestic and international feedstock markets.
As this sector evolves, it becomes increasingly clear that renewable diesel will continue to be a pivotal force in shaping the demand for feedstocks—particularly grease and oils.
Renewable Diesel Market in the Spotlight
Federal and state mandates have set ambitious targets for reducing greenhouse gas emissions. These new standards have shifted the renewable diesel sector into the spotlight.
US Energy Information Administration data highlights a period of remarkable growth in renewable diesel demand over recent years. For instance, US renewable diesel imports in 2024 jumped 29% in the first five months compared to that same period in 2023. These numbers are projected to continue trending upward as ports further expand their import capacity.
The demand surge has pushed domestic end-users beyond their traditional comfort zones to secure the resources they need. The broadened perspective now looks outward to the global market to meet the demand.
As the renewable diesel industry matures, it finds itself navigating a landscape filled with policy uncertainties. Despite these challenges, one constant remains: the industry's growing reliance on imported fats and greases to satisfy its blending requirements.
Renewable Diesel Feedstocks Highlight Supply Chain Challenges
Beyond imports of biodiesel itself, US demand for the feedstocks that create it has also skyrocketed.
According to data from the United States Department of Agriculture (USDA), the US has substantially increased its imports of fats, greases and oils.
In 2023 alone, the US imported approximately 1.4 million tons of used cooking oil (UCO) from countries such as China, Canada, Australia, New Zealand, and Chile. This underscores the global interconnectedness of the renewable diesel supply chain and the US's increasing dependency on international partners.
The import of tallow, another critical feedstock, has seen a dramatic increase. Since 2019, US tallow imports have quadrupled to a record 779,300 tons in 2023. Canada, Brazil, Mexico, Australia, and New Zealand have emerged as primary suppliers to the US.
In total, the US imported nearly 2.2 million tons of waste-based feedstocks, including tallow and UCO, in 2023.
The broader landscape of animal fats, greases, and processed oils has also seen unprecedented growth. US imports of these materials, which include edible tallow, inedible tallow, lard, poultry fats, and used cooking oil, skyrocketed to nearly 5 billion pounds (2.27 million tons) in 2023. This is over double the volume from the 2.2 billion pounds (997,900 tons) in 2022.
This dramatic increase in imports highlights the escalating demand and the critical role that international trade plays in sustaining the US renewable diesel industry.
Biodiesel Market Shifts Bring Uncertainty
The US renewable diesel sector is navigating a complex and evolving marketplace that is directly influenced by policy initiatives aimed at reducing emissions. Many challenges have emerged—particularly with policy uncertainties and market dynamics. The industry's growing reliance on international feedstocks only increases these complexities.
This trend not only reshapes domestic markets, but it also strengthens ties with global suppliers. As the industry progresses, monitoring these developments and their implications for domestic and international markets will become even more essential.
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