US consumers use record amount of biodiesel in 2015

Biodiesel consumption in the US has hit a record number of nearly 2.1 billion gallons in 2015, according to US Environmental Protection Agency (EPA).

According to the data, fuel companies reported producing 2.09 billion gallons of biodiesel in 2015, up from about 1.97 billion gallons in 2014, reducing US carbon emissions by at least 18.2 million tonnes. 

Biodiesel is the first and currently only commercial-scale fuel to meet the EPA’s definition of an advanced biofuel, meaning the EPA has determined that it reduces greenhouse gas emissions by more than 50% when compared with petroleum diesel.

Biodiesel industry leaders said the year-end figures demonstrate biodiesel’s rising popularity and its continued success.

“Consumers are seeking out cleaner alternatives to fossil fuels and they see biodiesel as a high-performing, cost-competitive alternative to petroleum diesel,” said Joe Jobe, CEO of the National Biodiesel Board (NBB), the industry’s US trade association.

“Biodiesel is still a young industry, but it is becoming a mainstream American fuel that’s having a real impact in helping us cut pollution, create jobs, and diversify the fuels market,” he said.

Increasing imports

But the figures also continue to show increasing amount of imports entering the US market and undercutting US production.

According to the data, domestic production remained flat at about 1.42 billion gallons, compared with about 1.47 billion gallons in 2014 and 1.50 billion gallons in 2013.

Meanwhile, imports rose from 510 million gallons in 2014 to an estimated 670 million gallons in 2015, a jump of more than 25%. 

NBB has urged US Congress to reform the $1-per-gallon biodiesel tax incentive from a blender’s credit to a producer’s credit.

Under the existing blender’s structure, biodiesel that is produced overseas and blended in the US is increasingly taking advantage of the incentive.

Most of the imports already receive incentives overseas, while US companies are typically barred from taking advantage of such foreign incentives, the NBB says. 

“We welcome competition but US companies can’t fairly compete against foreign companies that are double-dipping on overseas and US incentives while not letting US producers compete in their domestic markets,” Jobe said.