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EIA: US ethanol capacity expands in February as biodiesel output holds steady

EIA: US ethanol capacity expands in February as biodiesel output holds steady
US biofuels production capacity showed a mixed but generally positive picture in February, according to the latest data from the US Energy Information Administration.

Ethanol capacity continued its upward trajectory, reflecting ongoing investment and strong demand, while biobased‑diesel capacity remained unchanged, signalling a period of consolidation in that segment of the industry.

The EIA reported that total US ethanol production capacity increased slightly month on month, driven largely by incremental expansions at several Midwestern plants.

These upgrades, often involving efficiency improvements or modest equipment additions, have enabled producers to boost output without major new construction.

The rise underscores the continued centrality of ethanol within the US renewable fuels landscape, supported by steady domestic blending requirements and resilient export interest.

In contrast, capacity for biobased diesel – which includes both biodiesel and renewable diesel – held firm compared with January.

This stability suggests producers are taking stock after a period of rapid growth in renewable diesel over the past few years. Factors such as feedstock availability, policy uncertainty, and evolving market economics are likely contributing to the pause in further expansion.

Together, the figures highlight a sector that is still growing but doing so unevenly, with ethanol leading the current phase of capacity gains.


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