The U.S. Energy Information Administration (EIA) reports that renewable diesel consumption on the East Coast hit record highs in the past five months (May–September 2024), ranging from 5,000 to 7,000 barrels per day (b/d). This uptick stems from initiatives by suppliers and local governments. For example:
Despite the absence of East Coast renewable diesel production, suppliers have sourced the fuel through imports and interregional shipments. In 2024, Neste shipped renewable diesel from its facilities in Singapore, Finland, and the Netherlands, accounting for more than half of the region’s supply. The remaining volumes arrived from Gulf Coast tankers and barges.
Renewable Diesel’s Unique Value Proposition
Renewable diesel is chemically identical to petroleum-based diesel but is derived from fats, oils, and greases, offering a more sustainable alternative. It can serve as a transportation and heating fuel, reducing greenhouse gas emissions compared to traditional fuels. While most renewable diesel has been consumed on the West Coast, the East Coast’s entry into this market highlights the potential for expansion.
Challenges and Opportunities Ahead
Despite the growth, renewable diesel consumption on the East Coast still represents less than 1% of the region’s distillate fuel oil pool. The lack of clean fuel programs in East Coast states limits its adoption compared to regions like California, Oregon, and Washington. However, proposed legislation in several Northeastern states could change this trajectory, fostering demand for renewable fuels.
Additionally, the implementation of the Section 45Z Clean Fuel Production Credit in 2025 could reshape trade dynamics. The provision, part of the Inflation Reduction Act of 2022, excludes imported biofuels from tax credits, potentially increasing reliance on domestic production.
Diesel Direct’s Role in Renewable Diesel’s East Coast Expansion
At Diesel Direct, we are proud to be at the forefront of this transformation. By helping to bring renewable diesel to key clients, we contribute to the region’s growing inventory of renewable alternative energy. Delivering sustainable fuel options aligns with our mission to provide innovative fueling solutions and supports our commitment to environmental stewardship.
Looking Ahead
The modest but steady growth of renewable diesel consumption on the East Coast signals a promising future for sustainable fuels. With continued partnerships, infrastructure investments, and supportive policies, renewable diesel could play a more significant role in reducing the region’s carbon footprint. We are excited to be part of this journey, delivering solutions that drive both efficiency and sustainability.
Learn more about this exciting development from the U.S. Energy Information Administration’s latest article: Renewable Diesel Gains Traction on the East Coast
Sources: U.S. Energy Information Administration, Petroleum Supply Monthly.
