U . S . biomass-based diesel imports by country of origin ( 2013-2018 ) million barrels
Biodiesel is a mixture of chemical compounds known as alkyl esters and is often combined with petroleum diesel in blends of 5 % to 20 %, or B5 to B20 . Renewable diesel is composed of hydrocarbon chains that are indistinguishable from petroleum diesel , meaning that it meets specifications for use in existing infrastructure and diesel engines and is not subject to any blending limitations . Biodiesel and renewable diesel are produced from a variety of fats , oils , and grease , collectively referred to as FOGs .
Because biomass-based diesel typically costs more than petroleum diesel , consumption of biomass-based diesel is largely driven by federal and state policies . At the federal level , biomass-based diesel qualifies as an advanced biofuel under the U . S . Environmental Protection Agency ’ s RFS program , which mandates the blending of renewable fuels into the nation ’ s fuel supply . Biomass-based diesel also generates credits under California ’ s Low Carbon Fuel Standard ( LCFS ) and is increasingly used to meet the tightening fuel standards in the LCFS given its favorable greenhouse gas reduction score .
When DOC announced its anti-dumping and countervailing investigations in March 2017 , U . S . imports of biodiesel from Argentina decreased from 29,000 b / d in 2016 to 19,000 b / d in 2017 and fell to zero in 2018 . Indonesia did not export any biodiesel to the United States during 2018 .
With the elimination of imports from Argentina and Indonesia , Canadian biodiesel volumes made up most of U . S . imports in 2018 , totaling 5,000 b / d , with the remainder coming from European countries . Overall , U . S . imports of biodiesel totaled 11,000 b / d in 2018 , a 58 % decrease from 2017 levels and 76 % below the record level set in 2016 .
U . S . biodiesel production has increased in the last two years largely as a result of the decrease in imported biodiesel in the face of increasing RFS targets for biomass-based diesel . U . S . biodiesel production reached 102,000 b / d in 2016 , rose slightly in 2017 , and rose again in 2018 to reach a record of nearly 121,000 b / d , or nearly 1.9 million gallons .
Renewable diesel imports have been sourced exclusively from Singapore since 2015 and totaled 11,000 b / d in 2018 . All U . S . renewable diesel imports enter the country in California , most likely for compliance in the LCFS , as renewable diesel has one of the lowest carbon intensities of the approved pathways for LCFS compliance . Total U . S . renewable diesel imports have fallen over the last two years
14 JUNE 2019 | FUEL OIL NEWS | www . fueloilnews . com