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Study predicts U.S. oilseed to exceed renewable fuel needs

New study shows U.S. oilseed feedstock can meet future renewable fuel demands

By Farms.com

A groundbreaking study by S&P Global Commodity Insights, commissioned by the National Oilseed Processors Association (NOPA), projects that U.S. oilseed feedstocks will significantly exceed the federal renewable fuel requirements set for the next decade.

This research suggests that domestic oilseed production will facilitate the manufacturing of an additional 1.4 billion gallons of renewable diesel and biodiesel by 2030.

The U.S. oilseed industry has made substantial investments, totaling $6 billion, to boost crushing capacity by nearly 30% relative to 2023 levels. This expansion ensures the industry's preparedness to meet and surpass the Renewable Volume Obligations (RVOs) stipulated by the U.S. Renewable Fuel Standard (RFS).

"The study’s findings make it clear that the U.S. oilseed industry is more than capable of meeting and exceeding demand for food, feed and fuel well into the next decade," stated Kailee Tkacz Buller, NOPA President and CEO.

In 2023, U.S. and imported feedstocks already supported the production of 4.3 billion gallons of biomass-based diesel (BBD), outpacing the annual RVO targets for 2023, 2024, and 2025. 

With the planned expansions, domestic feedstocks will alone support an additional 1.4 billion gallons of BBD by 2030, while imports could contribute another billion gallons.

This development is timely as more states adopt incentives and credits through Low Carbon Fuel and Clean Fuel Programs, underscoring the role of domestic oilseed as a viable, low-carbon alternative to petroleum.

This shift is poised to advance air quality, reduce petroleum dependency, and bolster the rural economy across the United States.


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