Renewable Diesel Consumption in California Continues to Grow

Renewable diesel (RD) consumption on the US West Coast is following a steady upward trend, with California leading in both usage and production. State-level policies promoting low-carbon fuels have driven significant growth in renewable diesel supply and consumption, making it a dominant fuel in California’s distillate market.

According to the U.S. Energy Information Administration (EIA), renewable diesel made up nearly 65% of California’s transportation distillate consumption in the third quarter of 2024, down slightly from 70% in the second quarter. Biodiesel accounted for more than 5% of the total.

The expansion of renewable diesel consumption is supported by California’s Low Carbon Fuel Standard (LCFS), which incentivizes the use of cleaner-burning fuels. As a chemically identical alternative to petroleum diesel, renewable diesel can be used in existing diesel engines without modifications, making it an attractive option for fleet owners and operators seeking to reduce emissions.

Supply and Production Growth

Domestic production has been the primary driver of increased renewable diesel supply in California. The Marathon Martinez and Phillips 66 Rodeo refineries have significantly expanded capacity, contributing to the state’s growing production levels. In November 2024, renewable diesel production on the West Coast exceeded 90,000 barrels per day—nearly four times the volume recorded in early 2023.

To meet demand, renewable diesel is also being transported from other US regions via rail, tanker, and barge. Interregional rail shipments accounted for about 20% of the West Coast’s renewable diesel consumption, while tanker and barge shipments contributed nearly 25%. The remainder came from imports and inventory draws.

Regional Trends and Comparisons

Although California dominates consumption, Oregon and Washington are also seeing a growth in renewable diesel use. In Oregon, biofuels comprised roughly one-quarter of the transportation distillate fuel used in the third quarter of 2024, with renewable diesel accounting for twice the share of biodiesel. This represents a decline from the second quarter, when biofuels made up about one-third of Oregon’s distillate supply.

Washington is experiencing a similar trend. In the second quarter of 2024, biofuels accounted for 20% of the transportation distillate consumed in the state, with renewable diesel contributing over 15%. However, data for the third quarter has yet to be released.

Outlook for Renewable Diesel in California

As renewable diesel use continues to grow in California and across the West Coast, state policies and infrastructure investments will play a key role in sustaining this trend. While fluctuations in biofuel shares are expected, the overall demand for renewable diesel remains strong, reinforcing California’s position as a leader in alternative fuel adoption.

Are you looking for an RD supplier? Look no further!

Understanding and implementing renewable diesel can seem daunting, but Mansfield’s team of sustainability experts makes the transition smooth. With comprehensive support, from quantifying the benefits for your specific fleet through total cost of ownership assessments to integrating renewable diesel into your fueling strategy, Mansfield ensures that every fleet can maximize the advantages of this innovative fuel.

As the demand for sustainable fuel solutions grows, renewable diesel stands out as an easy-to-implement choice that does not compromise performance. Mansfield Energy is at the forefront of this revolution, ready to help data centers, fleet and equipment operators understand and harness the benefits of switching to renewable diesel. Contact us today!