U.S. East Coast Begins Consuming Renewable Diesel in Small Volumes

The demand for renewable diesel in the U.S. is steadily increasing. In 2024, the East Coast began consuming small volumes of renewable diesel, marking a major shift in the region’s energy landscape, and positioning the East Coast as a hub for renewable diesel consumption. This progress is primarily driven by initiatives from select suppliers and local governments to promote and adopt this alternative fuel. Since renewable diesel is not produced on the East Coast, suppliers and local governments source their imports and shipments from other regions of the United States and globally to meet the demand.

The Positioning of Renewable Diesel on the East Coast

Renewable diesel is a hydrocarbon fuel derived from renewable resources like vegetable oils, animal fats, and waste cooking oils, collectively referred to as biomass. Unlike biodiesel, that is produced through transesterification, renewable diesel is formulated via hydrotreating—a process that involves treating the feedstock with hydrogen under high temperatures and pressures. Hydrotreating produces a fuel that is chemically identical to petroleum diesel, enabling it to function as a direct replacement without the need for modifications to existing diesel engines or infrastructure.

Most of this fuel is used on the West Coast, as California, Oregon, and Washington are the only states with active clean fuel programs that encourage its use. Between May and September of last year, renewable diesel consumption on the East Coast has consistently surpassed previous record highs, with usage ranging between 5,000 and 7,000 barrels per day. As the East Coast begins to consume small but steady volumes of renewable diesel, it contributes to the overall increase in demand for renewable diesel in the U.S.

Supply Chain Dynamics

What makes this pivotal moment in the adoption of renewable diesel on the East Coast stand out, even in the smaller volumes, is the region’s ability to embrace the transition to alternative fuels despite the challenges of supply chain dynamics.

Renewable diesel is not produced locally on the East Coast, so the supply is met through global imports and interregional shipments. In 2024, more than half of the renewable diesel supplied to the East Coast was imported from facilities in Singapore, Finland, and the Netherlands, averaging 3,000 barrels per day through September. Additionally, the remaining renewable diesel consumed by the East Coast in 2024 was transported from the U.S. Gulf Coast via tankers or barges. Although these shipments only arrived on the East Coast in April and June, they provided enough renewable diesel supply to meet the region’s demand for two months.

Market Impact and Future Outlook

The East Coast now accounts for nearly 10% of the renewable diesel inventories in the United States and attracts a similar percentage of the country’s supply. While the effect of the East Coast’s renewable diesel consumption on both national and international markets has been minimal compared to other regions, its impact is major.

Several Northeastern states are considering clean fuel programs, which, if enacted, could further boost renewable diesel consumption. Despite these advancements, challenges persist, including infrastructure limitations, like the scarcity of Jones Act-compliant vessels required for shipping goods between U.S. ports, and policy uncertainty, with no active clean fuel programs currently in place on the East Coast. Without legislative support, renewable diesel is unlikely to displace traditional petroleum diesel in the near term. However, the gradual adoption of renewable diesel reflects a broader shift toward sustainable energy sources. Ongoing infrastructure developments, strategic partnerships, and potential policy changes point to a promising trajectory for renewable diesel in the region’s energy future.