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EIA: US Biofuel Production Capacity Grew by 7% in 2023

by Krystal

The U.S. Energy Information Administration (EIA) has announced that the capacity to produce biofuels in the United States increased by 7% in 2023. This growth brought the total capacity to 24 billion gallons per year at the beginning of 2024. A significant driver of this increase was a 44% rise in what the EIA categorizes as renewable diesel and other biofuels.

The term “other biofuels” includes renewable heating oil, renewable jet fuel—commonly known as sustainable aviation fuel (SAF)—as well as renewable naphtha and gasoline.

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Looking ahead, the EIA anticipates further growth in U.S. biofuels production capacity. This expectation is supported by ongoing state and federal tax incentives, favorable regulatory policies, expansions of existing plants, and plans for new plant construction.

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As of January 2024, U.S. producers of renewable diesel and other biofuels reached a capacity of 4.3 billion gallons per year, an increase of 1.3 billion gallons compared to 2023. Fuel ethanol, primarily made from corn kernel starch and blended with gasoline, constitutes the bulk of U.S. biofuels production capacity. The capacity for fuel ethanol rose by about 2% from January 2023 to January 2024, reaching 18 billion gallons per year. In contrast, biodiesel production capacity remained stable at 2.1 billion gallons per year in January 2024.

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Iowa leads the nation in biofuels production capacity, boasting more than 5.4 billion gallons per year. In total, 14 states, primarily located in the Midwest, Gulf Coast, and West Coast regions, account for 90% of U.S. biofuels production capacity.

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In January 2024, biofuels producers across 22 states reported adding capacity for renewable diesel and other biofuels, up from 17 states in 2023. New production facilities began operations in Alabama, California, Louisiana, Pennsylvania, and Washington.

Both Louisiana and California have surpassed 1 billion gallons of renewable diesel and other biofuels production capacity. Together, these two states contribute over 80% of the total U.S. capacity for renewable diesel and other biofuels.

From January 2023 to January 2024, biodiesel capacity increased by 3.8 million gallons per year. Despite new plants being reported in Florida and Kentucky, some closures occurred in Georgia, Iowa, Oregon, and South Carolina.

Fuel ethanol production capacity also grew by 2% during the same period. The Midwest states of Iowa, Nebraska, Illinois, South Dakota, Minnesota, and Indiana each produce over 1.4 billion gallons of fuel ethanol, benefiting from substantial corn production, the primary feedstock for fuel ethanol.

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