U.S. Biodiesel Production Reaches New High

In the United States, petroleum is the most-consumed fuel for transportation by a wide margin. But recently the share of fuels other than petroleum used for U.S. transportation has increased to its highest level since 1954. The mid-20th century saw a rapid decline in the use of coal as rail and ship travel decreased, with a corresponding increase in automobile and airline travel; both of which relied on petroleum.

In the modern era, the increase in non-petroleum-based fuels is mostly attributable to increased use of electricity, natural gas, ethanol and the beginnings of hydrogen as a transportation energy source. However, a major contributor has been the use of biomass to produce biodiesel.

According to the U.S. Energy Information Administration, U.S. production of biodiesel amounted to 135 million gallons in June 2016. That figure is 2 million gallons higher than the production total for May. Biodiesel production from the Midwest region accounted for 68 percent of the total. Nationwide biodiesel production facilities total 95 refining plants with a combined production capacity of 2.1 billion gallons per year. Many plants are currently operating well below capacity.

Of the biodiesel supply produced, 68 million gallons were sold as B100 (100% biodiesel) and an additional 72 million gallons were sold in biodiesel blends mixed with petroleum-based diesel fuel. Biodiesel is most often blended with petroleum diesel in ratios of 2 percent (B2), 5 percent (B5), or 20 percent (B20).

“There was a total of 980 million pounds of feedstocks used to produce biodiesel in June 2016,” the EIA reported. “Soybean oil remained the largest biodiesel feedstock during June 2016 with 519 million pounds consumed.”

Iowa leads the nation in biodiesel refining capacity. The state is home to nine refineries with combined capacity of 289 million gallons per year. Texas also hosts nine plants with combined capacity of 281 million gallons per year. Missouri comes in third with 8 plants and capacity of 169 million gallons each year. California has six biodiesel refineries, while Florida, Georgia, and Minnesota each have four plants. 28 other states have at least one biodiesel refinery apiece, including Alaska and Hawaii.