What’s That: Biointermediates

As more companies switch to renewable diesel and biodiesel to meet sustainability goals, there’s growing interest in how these fuels are made—and why it matters. One important, lesser-known part of that process is the use of biointermediates. These materials help turn raw organic matter into clean, finished fuel, playing a key role in expanding supply and lowering carbon emissions. These intermediates undergo specialized chemical and biological processes that prepare them for conversion into fuels such as ethanol, biodiesel, or next-generation biofuels. With ongoing advancements in technology, the development of newer types of biointermediates could greatly enhance energy independence and lessen the reliance on fossil fuels. In today’s “What’s That Wednesday,” we’re breaking down what biointermediates are, how they’re made, and why they matter in the future of renewable fuel production.

What are Biointermediates?

Biointermediates are partially processed materials made from things like agricultural waste, algae, or plant oils. Instead of being turned into fuel at one facility, they’re first processed at one location, then sent to another to be finished into renewable diesel or biodiesel. This two-step process allows for more flexibility in how fuel is made and can help reduce costs or expand the types of materials used. This process is necessary for creating sustainable energy solutions and is regulated under the U.S. Environmental Protection Agency’s (EPA) Renewable Fuel Standard (RFS). The RFS defines biointermediates as feedstocks that are substantially altered but not yet converted into finished renewable fuels, emphasizing that they must be processed at separate facilities to qualify.

The EPA’s biointermediate provisions were established to expand feedstock availability and clearly define regulatory criteria under 40 CFR 80.1401. Biointermediates must be processed at a separate facility from the renewable fuel production site and cannot generate RINs on their own. They must follow EPA-approved pathways, with current eligible materials including biocrude, glycerin, soapstock, digestate, free fatty acids, and undenatured ethanol. While these rules open the door for broader participation and new product types like sustainable aviation fuel, they also impose strict compliance—most notably, participation in a Quality Assurance Plan (QAP) audit to prevent RIN double counting.

The Role of Biointermediates in the Sustainability Sector

Biointermediates play a fundamental role in expanding the feedstock pool for renewable fuel production, enabling more sustainable options like sustainable aviation fuel (SAF) and renewable diesel. Innovations in biointermediate processing techniques, such as using pyrolysis oil or butyric acid derived from biomass, highlight their potential to diversify renewable fuel markets and improve production efficiency.

Biointermediates offer several advantages that enhance sustainability in renewable fuel production:

• Diversification of Feedstocks: By enabling the use of unconventional feedstocks like free fatty acids and distillate bottoms, biointermediates expand the pool of resources available for renewable fuel production.
• Support for Advanced Fuels: Biointermediates facilitate the production of advanced fuels like SAF and 100% renewable biodiesel, addressing feedstock shortages and aligning with long-term industry goals.
• Scalability: Biointermediates open new pathways for scaling up renewable fuel production by optimizing supply chains and integrating innovative technologies such as pyrolysis and gasification.

These expanded rules are already influencing supply chain planning and investment strategies. U.S. shale producers are reassessing growth due to falling revenue expectations and rising equipment costs tied to tariffs. The IEA recently lowered its U.S. supply growth forecast, while the global market anticipates an oversupply in 2025, with non-OPEC+ output expected to exceed demand. Analysts are already adjusting price forecasts, with Brent crude projected to hover in the mid-$60s through 2026. These dynamics could make biointermediates increasingly attractive as a cost-effective and flexible feedstock option.

Looking ahead, biointermediates hold great promise for advancing sustainability in energy production. Their ability to integrate diverse feedstocks into renewable fuel pathways positions them as a key component in achieving global decarbonization goals. Continued innovation in processing technologies and regulatory support will be critical for unlocking the full potential of biointermediates.

The biointermediate rule also introduces practical limitations. For example, a biointermediate producer may only supply a single renewable fuel facility, while renewable fuel producers can source from multiple biointermediate providers. Both parties must use the same QAP auditor and undergo engineering reviews, EPA registration, and regular reporting. Despite the regulatory burden, these provisions unlock new possibilities—such as the use of free fatty acids and distillate bottoms, which were previously cost burdens, as valuable feedstocks. There’s also potential for innovations like 100% renewable biodiesel through the inclusion of renewable alcohols like undenatured ethanol, which can lower carbon intensity and improve fuel performance in various markets.

What Corporate Fuel Customers Should Know

If you’re purchasing renewable diesel or biodiesel, biointermediates could help make these fuels more available, affordable, and sustainable. By allowing producers to use a wider variety of feedstocks—like byproducts that were previously discarded—biointermediates support a more stable fuel supply. This means fewer shortages, better pricing, and fuels that meet increasingly strict sustainability targets. You may not see “biointermediate” on your invoice, but these materials are helping shape the future of clean fuel behind the scenes.

As renewable fuel options grow, understanding how they’re made—even at a basic level—can help you make more informed purchasing decisions. Biointermediates are one of the tools that fuel producers are using to stretch resources, reduce emissions, and meet rising demand for low-carbon fuel. It’s just one more way the industry is innovating to support a cleaner, more resilient fuel supply.