EIA predicts continued growth in biofuel consumption

U.S. biofuels consumption has risen in 2022 and that growth is expected to continue, according to the U.S. Energy Information Administration’s latest Short-Term Energy Outlook, released July 13. Renewable diesel is expected to account for much of the increase.

According to the EIA, increasing demand for transportation fuels, higher 2022 Renewable Fuel Standard blending obligations, and new renewable diesel production capacity coming online all contribute to the expected increase in biofuels consumption.

The EIA noted that prices for renewable identification numbers (RINs) have increased in 2022, reaching near record-high prices, which has facilitated growing biofuel consumption. When compared to the first half of 2021, ethanol consumption for the first half of 2022 was up 32,000 barrels per day, or 3 percent. During the same period, renewable diesel consumption grew by 32,000 barrels per day, or 46 percent, while the consumption of other biofuels increased by 6,000 barrels per day, or 133 percent. Biodiesel consumption was unchanged, according to the EIA.

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