Biodiesel and Renewable Diesel Industry Generates $23.2 Billion in Economic Activity
The Clean Fuels Association of America (CFAA) has released a new study conducted by LMC International that evaluates the economic impact of biodiesel and renewable diesel, and sustainable aviation fuel in the US market. The study, titled “Economic Impact of Biodiesel on the US Economy 2022,” examines the direct, indirect, and induced impacts across the entire value chain from raw material production to fuel production and distribution.
The study indicates that the biodiesel and renewable diesel industry provided an economic boost of $23.2 billion while supporting 75,200 jobs and paying $3.6 billion in annual wages in the US. The farming, oilseed processing, and fuel production sectors gained the most economic benefits and employment opportunities through the production of biodiesel and renewable diesel.
The farm sector benefits from 30% of the overall economic activity, or $7.4 billion, and supports 28,236 US jobs earning $1.36 billion in wages. Meanwhile, the oilseed processing industry benefits from more than 20% of the economic activity, or $4.97 billion, and the biodiesel and renewable diesel market supports 6,024 US jobs earning $380 million in wages.
The study also found that the production supports 14,661 jobs earning $560 million in wages in the waste grease recycling and animal fat rendering sector. Clean fuel producers support $9.57 billion in economic activity, equal to 41% of the overall economic impact, and 17,120 US jobs earn $880 million in wages.
The economic impact is most significant in Midwest states that lead the nation in soybean production. For example, the biodiesel industry generates $4.29 billion in economic activity and is associated with more than 10,500 jobs in Iowa. In Illinois, the industry generates more than $2.75 billion in economic activity and supports 7,800 jobs.
The study highlights the significant economic benefits associated with the bio and renewable diesel industry in the US. As the US moves towards a more sustainable future, these findings provide crucial information for policymakers, investors, and industry leaders to understand the economic potential of biodiesel and renewable diesel. With the increasing demand for alternative fuels, the biodiesel and renewable diesel industry is poised for further growth and expansion, bringing even more economic benefits and employment opportunities to communities across the country.
This article is part of Daily Market News & Insights
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