Biofuels Production and Development in the United States

Addressing transportation emissions will require a combination of policy interventions, technological innovations, and behavioral changes. To decrease transportation-related carbon emissions, we recommend transitioning to cleaner and more efficient transport, expanding public transportation, and promoting sustainable urban planning. Transitioning to biofuels in the U.S. transportation sector presents a host of environmental, economic, and strategic advantages. Environmentally, biofuels offer a promising avenue for reducing greenhouse gas (GHG) emissions compared to conventional fossil fuels. Biofuels produce fewer harmful emissions, such as particulate matter and nitrogen oxides, compared to conventional fuels, thereby improving local air quality, and reducing health risks associated with air pollution. The U.S. government issued a "Sustainable Aviation Fuel (SAF) Grand Challenge" to promote the development of SAF and address the decarbonization of commercial aviation. The targets are to expand current domestic SAF production to 3 billion gallons per year by 2030, and then to 35 billion gallons by 2050, while achieving life cycle GHG reduction of at least 50% relative to fossil Jet A. The United States' biofuel production capacity rose to 23.8 billion gallons per year in 2023, a growth of more than 1.7 billion gallons since 2022. Ethanol nameplate capacity has reached 17.8 billion gallons per year since 2023, the ethanol production is 15.6 billion gallons in 2023 as capped by EPA regulation. Biodiesel production capacity stands at 2.1 billion gallons, and renewable diesel capacity is now 3.9 billion gallons. This newsletter keeps you informed on the state of biofuels in the United States, policy and regulations, technology advancements, and environmental and social impacts.