Biofuels displacing distillates on the US West Coast - EIA

Biofuels, and particularly renewable diesel, are displacing petroleum-based distillate fuel oil consumption on the US West Coast, a new report finds.

PHOTO: Getty Images

Consumption of distillate fuel oil on the US West Coast fell to its lowest level last year than at any time since 2002, and consumption has continued to decline into this year, according to a report by the US Energy Information Administration (EIA).

This decline can be attributed to the growing market share of biofuels and renewable diesel, on the back of clean fuel programmes that incentivise their use, says EIA.

Data from the California Air Resources Board and the US Department of Energy’s Alternative Fueling Station Locator suggests that most of this fuel is consumed in California, EIA says in its report.

The rest of the US, meanwhile, has seen petroleum-based distillate fuel oil consumption remain at near a five-year average with no new or noticeable trend, other than returning to pre-pandemic consumption levels.

This discrepancy in distillate fuel oil consumption between the West Coast and the rest of the US highlights the impact of biofuel and renewable diesel consumption on the overall consumption patterns, argues the EIA.

When asked about road fuel consumption, a spokesperson from the EIA told ENGINE that California and other states on the West Coast of the US use more biodiesel and renewable diesel for trucks more than the rest of the US.

The EIA expects a steady decline in distillate fuel oil consumption on the West Coast going forward, too. It further expects biofuel to play a significant role in reducing the consumption of traditional fossil fuels.

From the beginning of this year, harbour craft vessels in California have had to burn at least 99% renewable diesel (R99), the EIA says it is not entirely clear how the mandate has impacted renewable diesel demand in California.

“You can see in our data that West Coast imports of renewable diesel have been above average in 2023. It’s possible that high supply in Europe is the sole factor, but perhaps the mandate is part of it,” James Troderman, a spokesperson from the EIA, told ENGINE.

“Domestically, I would expect most renewable diesel production to flow to the West Coast regardless of the mandate,” he added.

By Aparupa Mazumder 

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