Renewable Diesel Consumption Continues to Increase on The U.S. West Coast: EIA

Renewable diesel is gradually compensating petroleum diesel on the U.S. West Coast, according to an Feb. 18 report published by the U.S. Energy Information Administration. State level policies are incentivizing new production capacity and shipments to the region. Renewable diesel continues to be mainly utilized in California but also accounts for a significant share of Washington and Oregon’s smaller distillate pools.

The U.S. is a producer of renewable diesel. Financing in innovative renewable diesel production capability has increased significantly across the U.S. because of renewable diesel’s compatibility with petroleum diesel in current petroleum infrastructure and because of government incentives. Oregon, Washington and California are states with active clean fuel plans that incentivise usage of renewable diesel. Renewable diesel is mainly used in the West Coast, however small but growing amounts of the fuel are currently being used in the East Coast. During 2024, the U.S. East Coast emerged as a consistent destination for small renewable diesel shipments, driven by initiatives from a few suppliers and local governments offering or consuming the fuel. As there is no renewable diesel production across the East Coast, supplies are procured via interregional U.S. shipments and imports.

Renewable diesel utilization in the West Coast has nearly doubled since the first quarter of 2023, with higher domestic production accounting for most of the growth. The majority of the increase in production has come from California, where Marathon’s Martinez plant and Phillips 66’s Rodeo plant have added new capacity.

During November 2024 renewable diesel production on the West Coast totaled over 90,000 barrels per day (b/d), nearly four times the volume from the first quarter of 2023 and making up around 45 percent of the region’s renewable diesel consumption. The agency’s data suggests that most of the renewable diesel is utilized in California, despite consumption increasing in Oregon and Washington.