Feedstock Demand Boom: How are tax credits playing a role in the surge?

Demand for renewable diesel has been growing over the last decade, and that has caused a surge in demand for imports of feed stocks. It is a trend that could keep going as more tax credits aim to incentivize domestic production of fuel.

Demand has surged since 2015 in part because of California’s low carbon fuel standard. Consumption of renewable diesel doubled there between 2020 and last year. During the same time, imports of animal fat and vegetable oil have also doubled while imports of used cooking oil from China tripled.

The Renewable Fuel Standard and tax credits for blenders are expected to lead to increased production.