Renewable diesel made from animal fats and plants is fueling trucks on both coasts. New York City said this past week that its heavy vehicles, like garbage trucks and ambulances, will be running on renewable diesel by the end of June. New York officials believe in the fuel so much they’re willing to pay up for it: The first shipment, sent by barge from Louisiana in September, cost $4.81 per gallon. Diesel’s retail price at the end of September was $4.59 a gallon.
In California, biofuel accounts for over half of the diesel consumed. “California has been a huge success story through its low-carbon fuel standard,” says Tudor Pickering Holt’s Matthew Blair. Oregon and Washington also have standards that mandate carbon-emitters to buy credits to offset emissions.
Renewable diesel supply has been soaring. At the start of 2023, U.S. plants could make three billion gallons annually, up from 1.75 billion in 2022 and 791 million in 2021. Italian energy company
ENI
and U.S. refiner
PBF Energy
opened a new Louisiana plant this year that will pump out 300 million gallons annually once it hits full…
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