U.S. Renewable Diesel Projects Widespread, but Flow to California

Researched by Industrial Info Resources (Sugar Land, Texas)--Industry watchers believe renewable diesel will play an important role in the future U.S. energy mix, but to date nearly all of its domestic consumption has been in California, according to recent findings from the U.S. Energy Information Administration (EIA). But the state--so far, the only to offer rebates to customers who purchase renewable diesel specifically--only accounted for a fraction of U.S. renewable diesel production in 2021, with most coming from energy stalwarts like Louisiana and Pennsylvania. Industrial Info is tracking more than $23 billion worth of active and proposed renewable diesel projects across the U.S., including $3.8 billion worth in California. More than $5 billion of the total is attributed to projects nearing or under construction.

Click on the image at right for a graph detailing the top 10 U.S. states for active and proposed renewable diesel projects, by total investment value.

Six states--Louisiana, North Dakota, California, Wyoming, Washington and Kansas--accounted for all U.S. renewable diesel production in 2021, according to the EIA, but Industrial Info's Global Market Intelligence (GMI) Alternative Fuels Project Database is tracking active and proposed renewable diesel projects across 23 states that are set to begin construction within the coming decade. The bulk of these projects are in their planning phases, where plenty of factors could alter, delay or diminish the proposed investments.

Louisiana has led the U.S. in renewable diesel production since 2011, including more than 9 million barrels--or about 46% of the U.S. total--produced in Louisiana in 2021, according to the EIA. It also leads all other states in active and proposed renewable diesel projects for the foreseeable future, including two projects set to finish construction by the end of 2023: Chevron Corporation's (NYSE:CVX) (San Ramon, California) $950 million in upgrades and expansions at its renewable diesel plant in Geismar, and PBF Energy Incorporated's (NYSE:PBF) (Parsippany, New Jersey) $325 million hydrocracker unit conversion at its refinery in Chalmette, Louisiana.

Chevron expects its expansion will boost the Geismar plant's production from 90 million to 340 million gallons per year. PBF completed the bulk of its hydrocracker unit conversion in the spring, and is in the process or replacing deteriorated equipment so the new unit can produce 20,000 barrels per day (BBL/d) of renewable diesel using Honeywell International's (NASDAQ:HON) (Charlotte, North Carolina) UOP Ecofining Technology. Subscribers to Industrial Info's GMI Alternative Fuels Project Database can learn more from detailed reports on the Geismar and Chalmette projects.

Earlier this year, PBF and Eni Sustainable Mobility, a subsidiary of Eni SpA (NYSE:E) (Rome, Italy) agreed to a 50:50 joint venture to own and run the Chalmette Refinery. For more information, see February 6, 2023, article - PBF, Eni Reach Joint Venture Deal for Louisiana Renewable Diesel Refinery.

Other projects proposed for Louisiana include Shell plc's (NYSE:SHEL) (London, England) plan to convert its 240,000-BBL/d refinery in Convent, Louisiana, into a low-carbon, alternative fuels plant. The first stage of the conversion would build production capacity for renewable diesel and sustainable aviation fuel (SAF). Subscribers can learn more from Industrial Info's project report.

Although it lags other states in renewable-diesel production, California has several projects set to finish construction within the coming year, including Global Clean Energy Holdings Incorporated's (Torrance, California) $560 million renewable diesel plant in Bakersfield and World Energy LLC's (Boston, Massachusetts) $350 million modernization and expansion of its refinery in Paramount. Global Clean Energy aims to produce 15,000 BBL/d of renewable diesel from rendered animal fats and organic feedstocks, while World Energy aims to increase its production of jet fuel. Subscribers can read detailed reports on the Bakersfield and Paramount projects.

California's renewable diesel consumption grew substantially after its Low Carbon Fuel Standard (LCFS) went into effect in 2011, according to the EIA. Between 2011 and 2021, consumption grew from 1 million barrels to 28 million barrels per year.

The highest-valued renewable-diesel project under construction outside Louisiana and California is SEP-I LLC's (Pottstown, Pennsylvania) $142 million plant in Pottstown, Pennsylvania. The facility is designed to gasify cellulose waste that would otherwise go to a landfill into renewable diesel and "biochar," a type of charcoal used as a fertilizer component. Subscribers can learn more from Industrial Info's project report.

Earlier this year, the EIA said that if all proposed renewable diesel projects in the U.S. were to be constructed, the U.S. could potentially double its renewable diesel production capacity from 2.6 billion gallons per year at the end of 2022 to as much as 5.9 billion gallons per year by the end of 2025. For more information, see February 6, 2023, article - EIA: U.S. Renewable Diesel Capacity Could More than Double by 2025.

Subscribers to Industrial Info's GMI project and plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.

Subscribers can click here for a full list of reports for active and proposed renewable diesel projects across the U.S.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).