US biomass-based diesel imports hit new record in 2016

The United States’ biomass-based diesel imports grew by 65 percent in 2016 to a new record of 916 million gallons, according to recently released data from the U.S. Energy Information Administration (EIA).

Higher Renewable Fuel Standard (RFS) targets and the biodiesel blender’s tax credit helped promote this growth. The biodiesel blender’s tax credit recently expired. It has expired on several occasions in the past, most recently in 2014, but was reestablished.

Biomass-based diesel, which includes biodiesel and renewable diesel fuels, are produced by refining vegetable oils or animal fats. Biodiesel is mixed with petroleum diesel up to five percent and 20 percent by volume. Renewable diesel can be used in current infrastructure and diesel engines without blending.

U.S. imports of biodiesel totaled 353 million gallons in 2015. In 2016, that number almost doubled to reach a new record of 693 million gallons. Sixty four percent of U.S. imports of biodiesel originated from Argentina. Fifteen percent came from Indonesia and 14 percent from Canada. Fifty three percent of biodiesel imports were destined for the Atlantic Coast.

Renewable diesel imports grew by nine percent from 2015 levels to 223 million gallons in 2016. Singapore supplied all U.S. imports of renewable diesel. The imports primarily arrived along the West Coast most likely due to California’s Low Carbon Fuel Standard (LCFS) program.

According to EIA’s most recent Short-Term Energy Outlook, biomass-based diesel imports levels will change little in 2017 due to the expiration of the blender’s tax credit but will surge in 2018 because of rising RFS targets.