U.S. Capacity to Generate Biofuels Rose Seven Percent During 2023: EIA

U.S. capacity to produce biofuels rose seven percent during 2023, according to an Oct. 17 report published by the U.S. Energy Information Administration. U.S. biofuel production totaled 24 billion gallons per year (gal/y) during 2023. The agency projects U.S. biofuels production capacity to increase further, on the back of favorable regulatory policies, state and federal tax policies which incentivize biofuel production, plant extensions and expected new plant construction.

U.S. production capacity for renewable diesel and other biofuels was recorded at 4.3 billion gal/y during January 2024, up 1.3 billion gal/y compared to 2023. Fuel ethanol accounted for the majority of the U.S. biofuel generation capacity. U.S. fuel ethanol generation rose around two percent between January 2023 and January 2024 and was recorded at 18 billion gal/y. U.S. biodiesel generation capacity was flat year and year and totaled 2.1 billion gal/y during January 2024.

Majority of U.S. biofuels production capacity is located in Iowa, with the state producing over 5.4 billion gal/y during January 2024. Around 90 percent of the U.S. biofuel generation capacity comes from 14 states mostly located in the West Coast, Midwest, and the Gulf Coast. Nebraska is the second largest state with biofuels generation capacity, followed by Illinois.

During January 2024, biofuel producers across 22 states across the U.S. added renewable diesel and other biofuels capacity, in comparison to 17 states during 2023. New plants began generating renewable diesel and other biofuels in Washington, Alabama, Louisiana, California and Pennsylvania.  Louisiana and California have over billion gallons of renewable diesel and other biofuels generation capacity and both states account for over 80 percent of U.S. renewable diesel and other biofuels generation capacity.

Biodiesel capacity rose by 3.8 million gal/y between January 2023 and January 2024.  Meanwhile, U.S. fuel ethanol generation capacity rose by two percent during the same period.