Where Renewable Diesel Actually Fits in Fleet Operations Today

Renewable diesel has become one of the most talked-about alternative fuels in transportation, and for good reason. Unlike many emerging technologies, renewable diesel can be used in existing diesel engines, storage tanks, and fueling infrastructure without modifications.

That simplicity has made renewable diesel an attractive option for fleets looking to lower emissions without disrupting operations.

But despite growing interest, renewable diesel is not the right fit for every fleet.

The reality is that geography often determines whether renewable diesel is a practical and cost-effective solution. Fleets can incorporate renewable diesel with little or no increase in fuel costs, while others may pay a premium to achieve sustainability goals.

Renewable Diesel Works Almost Anywhere. The Economics Don’t.

One of the biggest misconceptions surrounding renewable diesel is that its adoption is limited by equipment compatibility. In reality, renewable diesel meets ASTM D975 specifications and can be used in most existing diesel engines and blended with conventional diesel at any percentage.

Today, renewable diesel is generally most competitive in states with low-carbon fuel programs or other incentives that help offset production and distribution expenses. California, Oregon, Washington, and New Mexico all have programs that place additional value on lower-carbon fuels, helping narrow the price gap between renewable diesel and conventional diesel.

Outside these markets, renewable diesel often carries a premium, making sustainability rather than economics the primary driver for adoption.

Because incentives vary widely by state, fleets should evaluate their local market before making a decision. The U.S. Department of Energy’s Alternative Fuels Data Center maintains a state-by-state database of alternative fuel incentives and laws. You can check your state’s programs here: Alternative Fuels Data Center State Incentives Database.

When Renewable Diesel Makes Sense

Renewable diesel’s biggest advantage is its ability to reduce lifecycle greenhouse gas emissions. According to the U.S. Environmental Protection Agency, qualifying renewable diesel pathways must achieve at least a 50% reduction in lifecycle greenhouse gas emissions compared with petroleum diesel. Actual reductions may be higher depending on the feedstock and production process.

That makes renewable diesel particularly attractive for organizations pursuing ESG goals, corporate sustainability targets, or customer-driven emissions requirements.

For fleets looking for immediate emissions reductions, renewable diesel offers another advantage. Other decarbonization strategies, including battery-electric and hydrogen fuel-cell vehicles, often require new vehicles and dedicated charging or fueling infrastructure. The U.S. Department of Energy notes that fleet electrification involves vehicle selection, charging infrastructure planning, utility coordination, and site development before deployment. Renewable diesel, by comparison, can typically be introduced using existing diesel vehicles and fueling infrastructure.

Why Renewable Diesel Is Getting More Attention

Renewable diesel is no longer a niche fuel. U.S. Energy Information Administration, U.S. renewable diesel production capacity has grown significantly in recent years and now exceeds 300,000 barrels per day as of January 1, 2025.

At the same time, heavy-duty transportation remains one of the most difficult sectors to decarbonize. Trucks, construction equipment, generators, and other diesel-powered assets often remain in service for many years, making equipment replacement both expensive and time-consuming.

Renewable diesel offers a way to lower emissions without waiting for the next generation of vehicles and infrastructure to become widely available.

Questions Every Fleet Should Ask Before Switching

Before making the move to renewable diesel, fleet operators should evaluate whether the fuel aligns with both their operational and financial goals.

The first question is simple: whether renewable diesel is available where your fleet operates? Supply has expanded significantly in recent years, but availability still varies by region.

Working with an experienced fuel provider can help fleets understand local availability and develop a supply strategy that aligns with their operations. Mansfield supplies renewable diesel across a growing network of markets and can help businesses evaluate where renewable diesel is available today and how it fits into their fuel program.

Once availability is established, the next question is cost. A fleet operating in California will likely see a very different pricing environment than one operating in Tennessee or Georgia because state incentives, fuel demand, and supply infrastructure vary across markets.

Fleets should also consider why they are exploring renewable diesel in the first place. For some organizations, emissions reductions support customer requirements, corporate sustainability goals, or broader ESG initiatives. For others, the primary objective is reducing emissions without replacing diesel-powered equipment or investing in new fueling infrastructure.

Finally, it is worth evaluating whether state incentives or tax programs improve the regional economy. Depending on where a fleet operates, those programs can make renewable diesel a more competitive option while allowing businesses to lower emissions using their existing vehicles and fueling systems.

How Mansfield Can Help

Every fleet’s path to lower emissions looks different. Renewable diesel may be an ideal solution for some operations, but less practical for others.

Mansfield helps fleets evaluate renewable diesel based on real-world factors, including fuel availability, regional incentives, sustainability objectives, and total fuel costs. With relationships across the renewable diesel supply chain and tens of millions of gallons supplied annually, Mansfield can help businesses determine where renewable diesel fits within their broader fuel strategy.

Ready to explore whether renewable diesel makes sense for your operation? Mansfield can help evaluate your options and develop a fuel strategy tailored to your fleet’s unique needs.