Biomass-based Diesel Production Hits All-Time High

New federal data released by the U.S. Environmental Protection Agency (EPA) demonstrates that America’s biomass-based diesel industry is responding to stronger market signals with record-setting production.

According to figures highlighted by Clean Fuels Alliance America in July, U.S. producers generated a record 494 million gallons of domestic biomass-based diesel in June, underscoring the industry’s ability to expand production while supporting the nation’s growing demand for lower-carbon transportation fuels.

Renewable diesel accounted for 327 million gallons during the month—the highest monthly production level ever recorded—while domestic biodiesel production climbed to 140.2 million gallons, its strongest performance since December 2024. Overall, U.S. biodiesel facilities operated at approximately 86 percent of their installed production capacity, reflecting increased utilization across the industry.

The production gains follow EPA’s announcement of the largest-ever Renewable Fuel Standard (RFS) renewable volume obligations (RVOs) for biomass-based diesel for 2026 and 2027. Those finalized volumes provided producers with greater long-term market certainty, encouraging increased production and investment throughout the renewable fuels supply chain.

In a statement shared on social media, Clean Fuels Alliance America thanked EPA Administrator Lee Zeldin and USDA Secretary Brooke Rollins for supporting the historic RFS volumes, noting that the policy is helping drive domestic production, strengthen U.S. energy security, and create new economic opportunities for farmers, feedstock processors, fuel producers, and rural communities.

Clean Fuels CEO Donnell Rehagen said the industry’s June production numbers validate what the renewable fuels sector has maintained all along—that American producers have the capacity to meet ambitious federal renewable fuel targets when provided with stable, long-term policy signals.

“We knew it could be done, we said it could be done, and it’s been done,” Rehagen said, crediting soybean growers, livestock producers, used cooking oil collectors, crushers, feedstock processors, and biodiesel and renewable diesel producers for working together to achieve the milestone.

The record production highlights the growing role that biodiesel and renewable diesel continue to play in diversifying the nation’s fuel supply, supporting domestic agriculture, and reducing lifecycle greenhouse gas emissions while utilizing existing diesel engines, equipment, and fueling infrastructure.

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