EIA: US capacity to produce biofuels increased 7% in 2023
The U.S. biofuels production capacity increased by 7% in 2023, reaching 24 billion gallons annually by January 2024, driven largely by a 44% rise in renewable diesel and other biofuels. Ethanol remains the largest category, with capacity reaching 18 billion gallons per year. Iowa leads production, and new renewable diesel plants were launched in states like Louisiana and California.
October 19, 2024
BY U.S. Energy Information Administration
Capacity to produce biofuels increased 7% in the United States during 2023, reaching 24 billion gallons per year (gal/y) at the start of 2024, led by a 44% increase in a category we call renewable diesel and other biofuels. Other biofuels includes renewable heating oil, renewable jet fuel (also known as sustainable aviation fuel), and renewable naphtha and gasoline.
Given continued state and federal tax incentives, regulatory policies, plant expansions, and projected new plant construction, we expect U.S. biofuels production capacity to continue increasing.
Capacity gains by fuel
Capacity at U.S. producers of renewable diesel and other biofuels totaled 4.3 billion gal/y in January 2024, 1.3 billion gallons more per year than in 2023. Fuel ethanol—primarily produced from corn kernel starch and blended with gasoline—accounts for most of U.S. biofuels production capacity. U.S. fuel ethanol production capacity increased about 2% between January 2023 and January 2024, reaching 18.0 billion gal/y. U.S. biodiesel production capacity stayed essentially flat, totaling 2.1 billion gal/y in January 2024.
Biofuel production capacity by state
Most U.S. biofuels production capacity is located in Iowa, with more than 5.4 billion gal/y. Fourteen states located largely in the Midwest, the Gulf Coast, and the West Coast regions account for 90% of U.S. biofuels production capacity.
New plants
In January 2024, biofuels producers in 22 states reported adding renewable diesel and other biofuels capacity, compared with 17 states in 2023. New plants started producing renewable diesel and other biofuels in Alabama, California, Louisiana, Pennsylvania, and Washington.
Louisiana in the Gulf Coast region and California in the West Coast region each have more than 1 billion gallons of renewable diesel and other biofuels production capacity. These two regions represent more than 80% of U.S. renewable diesel and other biofuels production capacity.
Biodiesel capacity increased by 3.8 million gal/y between January 2023 and January 2024. Even though there were new reporting plants, located in Florida and Kentucky, there were also plant closures in Georgia, Iowa, Oregon, and South Carolina.
Source Link : https://ethanolproducer.com/articles/eia-us-capacity-to-produce-biofuels-increased-7-in-2023
