In-brief analysis
October 17, 2024
In a striking surge, the United States witnessed a remarkable 7% escalation in its capacity to produce biofuels throughout 2023, propelling the total to an astounding 24 billion gallons per year (gal/y) by the dawn of 2024. This increase was driven primarily by a staggering 44% leap in a category we classify as renewable diesel and other biofuels. This umbrella includes a diverse array of alternatives: renewable heating oil, the eco-friendly jet fuel dubbed sustainable aviation fuel, and renewable naphtha and gasoline.
Thanks to a confluence of favorable tax incentives at both state and federal levels, thoughtful regulatory frameworks, ambitious plant expansions, and the anticipated construction of new facilities, projections herald a continued rise in U.S. biofuels production capacity.
Capacity gains by fuel
In January 2024, the collective capacity among U.S. producers of renewable diesel and related biofuels reached 4.3 billion gal/y—an impressive increment of 1.3 billion gallons compared to the previous year. Notably, fuel ethanol, predominantly derived from the starch of corn kernels and blended into gasoline, constitutes the bulk of U.S. biofuels production capacity. Between January 2023 and January 2024, capacity for fuel ethanol saw a minor yet significant increase of about 2%, climbing to 18.0 billion gal/y. Conversely, biodiesel production capacity remained nearly stagnant, maintaining a steady level of 2.1 billion gal/y as of January 2024.
Biofuel production capacity by state
A vast majority of U.S. biofuels production capacity is concentrated in Iowa, which alone boasts over 5.4 billion gal/y. In total, fourteen states—primarily located in the Midwest, Gulf Coast, and West Coast—account for a staggering 90% of biofuels production capacity across the nation.
New plants
As of January 2024, biofuels manufacturers across 22 states reported enhancing their capacity for renewable diesel and other biofuels—a notable rise from 17 states in 2023. New production facilities began operations in states such as Alabama, California, Louisiana, Pennsylvania, and Washington.
Both Louisiana and California each surpass the billion-gallon threshold in renewable diesel and other biofuels capacity, with these coastal regions collectively accounting for over 80% of U.S. production in this category.
Biodiesel capacity experienced an uptick of 3.8 million gal/y between January 2023 and January 2024. Despite the addition of new plants in Florida and Kentucky, we also observed closures affecting facilities in Georgia, Iowa, Oregon, and South Carolina.
Fuel ethanol production capacity
The United States saw a 2% growth in fuel ethanol production capacity from January 2023 to January 2024. The Midwest region—home to prolific corn production—includes states like Iowa, Nebraska, Illinois, South Dakota, Minnesota, and Indiana, all recording capacities exceeding 1.4 billion gallons each.
In August, we refreshed the following reports:
These documents present the latest estimates of plant production capacities within the U.S. biofuels sector, delineating operational capacities for biofuels as of January 1, 2024, along with the identities of reporting plants categorized by state and region.
Principal contributor: Chris Buckner