US imports of biomass-based diesel, including biodiesel and renewable diesel, totaled 14.1 million barrels in 2017, a 36% decrease from 2016. Despite the fact that increasing Renewable Fuel Standard (RFS) targets have increased biomass-based diesel demand in recent years, imports fell in 2017 because of US import duties imposed on foreign biodiesel volumes.
According to EIA, biomass-based diesel generates credits under California’s Low Carbon Fuel Standard (LCFS), a cap-and-trade system aiming to reduce the carbon intensity of transportation fuels. Because biomass-based diesel has relatively high energy content and low carbon intensity relative to other biofuels used to meet RFS and LCFS targets, its use has increased as RFS and LCFS targets have become more stringent.
New US contracts for biodiesel from Argentina decreased after the announcement of DOC anti-dumping and countervailing investigations in March 2017. Indonesia did not export any biodiesel to the US during 2017, possibly because of a preference for Argentine biodiesel. Overall, US imports of biodiesel totaled 9.3 million barrels in 2017, a 44% decrease from 2016 levels.
[smlsubform prepend=”GET THE SAFETY4SEA IN YOUR INBOX!” showname=false emailtxt=”” emailholder=”Enter your email address” showsubmit=true submittxt=”Submit” jsthanks=false thankyou=”Thank you for subscribing to our mailing list”]
Sizeable volumes of biodiesel imports from Argentina or Indonesia are unlikely in the short term without either an increase in the spot price of domestic biodiesel to offset the duties or a settlement among these two countries and the US.
Renewable diesel imports were 4.7 million barrels in 2017, 12% lower than in 2016. Renewable diesel has been sourced exclusively from Singapore since 2015, and all cargoes go to California, most likely for compliance with the LCFS.
EIA expects import duties to continue leadind to reductions in biomass-based diesel imports through 2019. Net imports of biomass-based diesel are forecast to be about 500 million gallons (11.9 million barrels) in both 2018 and 2019.
