U.S. East Coast Utilizes Small but Increasing Volumes of Renewable Diesel: EIA

In 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, according to a Dec. 3 report published by the U.S. Energy Information Administration. As there is no renewable diesel production across the East Coast, supplies are procured via interregional U.S. shipments and imports.

In terms of renewable diesel trading dynamics, the U.S. imported 29 percent more renewable diesel through the January to May 2024 period, compared to the same period during 2023. The rise in imports can be attributed to production capability increasing at Neste’s Singapore plant and higher renewable diesel storage capacity at Vopak’s terminal in Los Angeles.

The U.S. is also 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.

Over the May to September 2024 period, renewable diesel usage on the East Coast has ranged between 5,000 barrels per day (b/d) to 7,000 b/d, volumes for all five months have been above the previous record high. The surge in renewable diesel usage in the region can be attributed to choices made by a number of local governments and suppliers. For example, Sprague opened the first East Coast retail station providing renewable diesel during 2024. Neste, the globe’s largest renewable diesel producer, collaborated with Diesel Direct and K.W. Rastall Oil to deliver the fuel to New Jersey Natural Gas and the Township of North Brunswick. Moreover, Global Partners started delivering renewable diesel at its terminal in East Haven, Connecticut.

Neste’s plants in the Netherlands, Singapore and Finland have accounted for over half of the renewable diesel supplied to the East Coast during 2024. Around two thirds of total renewable diesel imports to the region have gone to New Jersey, with the remaining being directed towards Georgia.

In spite of the recent surge in the region’s renewable diesel usage, renewable diesel still accounts for less than one percent of the East Coast’s distillate fuel oil pool. In the absence of clean fuel programs in East Coast states, renewable diesel is not expected to replace distillate fuel oil in the region.