Image source: Corteva Agriscience

Federal and state policies have helped fuel a boom in renewable fuel. California’s Low Carbon Fuel Standard has helped drive demand. The USDA’s Foreign Agriculture Service reported the state’s consumption more than doubled between 2020 and 2023. The national Renewable Fuel Stanard and a blender’s tax credit also contributed to growth.

These federal and state policies create demand for feedstocks including yellow grease, soybean oil, corn oil, tallow and canola oil. Much of this has been sourced from foreign markets. Animal fat and vegetable oil imports more than doubled between 2020 and 2023. According to the American Soybean Association, used cooking oil imports went from less than 300 million pounds in 2021 to more than 3 billion pounds in 2023. Canola oil imports jumped from 2 million metric tons to more than 3.5 million metric tons.

Demand for soybean oil transformed the U.S. into a net importer of soybean oil for the first time in 2023, according to the USDA’s Foreign Agricultural Service. Feedstock imports are anticipated to increase with the demand for renewable diesel. However, there are questions on where the increased demand for feedstocks will be sourced.

Read more on how the renewable fuel boom is driving demand for feedstocks here.