According to the US Energy Information Administration (EIA), renewable diesel production is projected to increase through 2024 in anticipation of several projects under development. By the end of 2020, renewable diesel production capacity was 600 million gallons a year or 38,000 barrels a day. With the addition of these current projects and accompanying incentives (state and federal targets for this energy source and tax credits), the projected production figure is 5.1 billion gallons by the end of 2024.
Diesel emissions have been reduced by 95 percent in response to stricter federal regulations. Furthermore, the government intends to decrease diesel emissions by 25 percent by 2027.
In addition to these measures, the demand for cleaner fuels is growing, and as a result, more businesses have invested in renewable diesel globally, including in the United States. On the west coast, such as California, Oregon, and Washington, the expectation is a large part of the demand for energy produced on the Gulf Coast will come from these states. The EIA also stated that some of these projects requiring renewable diesel would be located on the Gulf Coast.
The fuel source offers both advantages and disadvantages. It is has been referred to as a “next-generation synthetic diesel fuel.” In actuality, renewable diesel is not petroleum-based. Instead, it is made from vegetable oil or other biomass, such as wood, agricultural waste, or garbage. It can also be made from coal or natural gas.
Renewable diesel is made from either hydrogenation or Fischer-Tropsch. Through either one of these processes, renewable diesel is created by taking each molecule, breaking it into smaller parts, and then reforming it, but this time including hydrogen. It is a process of taking vegetables in turning them into cleaner fuel.
The process does come with a few caveats. First, it is more expensive to produce than standard diesel, and these costs are usually passed on to consumers. The second disadvantage is that some of the product's sources have raised environmental concerns. For instance, in the case of harvesting palm oil, these concerns relate to deforestation and the destruction of natural habitats.
Even with these disadvantages, the fuel source has several benefits, especially for industry. One of its more immediate advantages is that it can be used by itself or with regular diesel fuel without impacting the specification of the fuel.
Furthermore, there are no compatibility issues with the vehicle either. The fuel can be stored for a long time without risking deterioration in quality or water accumulation, which creates microbial growth. In heavy-duty diesel engines, the fuel can be used directly without any modifications.
Moreover, this high-quality diesel fuel offers up to between 50 and 80 percent of lower lifecycle greenhouse gas emissions in comparison to petroleum diesel fuel. The fuel allows for better vehicle performance with a lower carbon dioxide footprint. In fact, renewable diesel offers drivers better performance in cold weather, ensuring faster starts, improved throttle response, and less noise.
These benefits make the fuel compatible with vehicles that experience idling and stopping, for example, utility budget trucks and garbage haulers. Renewable diesel has cost savings in that it can reduce maintenance costs on a modern, clean diesel truck.
