This content is sponsored by Clean Fuels Alliance America.
Biomass-based diesel production capacity in the United States expanded rapidly between 2021 and 2024. A new study shows that the economic impact – job creation and economic activity associated with production, raw materials and transportation of the fuels – nearly doubled as a result. And with more capacity already built and ready to go, the economic impact could still grow.
In May, Clean Fuels Alliance America released a new study, Economic Impact of Biodiesel on the U.S. Economy 2024. GlobalData, a global information services company, conducted the study, building on a previous report that examined 2021 data.
In 2021, U.S. biodiesel and renewable diesel producers supplied 2.5 billion gallons of fuel to the U.S. market. In 2024, according to the analysis and considering both imports and exports, U.S. producers delivered more than 5 billion gallons to American consumers. Overall imports also added to the supply and economic impact.
The growing economic impact mirrors the production increase. U.S. production of biodiesel and renewable diesel supports 107,400 U.S. jobs, $5.8 billion in wages, and $42.4 billion in economic activity, according to new analysis by GlobalData. Since 2022, the industry’s economic impact has grown 83%, up from $23.2 billion. The number of jobs supported by the industry increased by 43% to the current 107,400. And total wages paid jumped from $3.6 billion in 2022.
The jobs and economic benefits benefit the entire value chain, from farming to fuel production and distribution. Nearly half the jobs and economic activity are in fuel production — $19.9 billion worth of economic activity. And those jobs pay well. The 41,500 Americans who work directly in biodiesel and renewable diesel production earn a collective $2.4 billion in wages.
Farmers and other feedstock providers also see a large share of the benefits. There are nearly 30,600 American jobs in the soybean growing industry supported by biodiesel and renewable diesel production, with an economic impact of $15.2 billion. For the oilseed processing sector, biodiesel and renewable diesel production supports 8,600 jobs and an economic impact of $3.9 billion. Similarly for the rendering industry, clean fuels support 12,691 jobs. Moving the feedstocks and fuels around the country – and even around the world – supports additional jobs and economic benefits, according to GlobalData.
The industry’s expansion has brought benefits to traditional oil states as well as agricultural states. Big winners among states include Louisiana, where production of renewable diesel has expanded rapidly. Louisiana is now benefitting the most, with $8.1 billion in economic impact and 13,500 jobs. Texas too is seeing a rapid expansion of renewable diesel and an associated $2.4 billion in economic impact and support for 6,000 American jobs. California is the largest market for renewable diesel, using nearly half of all clean fuel produced or imported to the United States. That’s bringing $3.4 billion in economic impact to the state and support for 6,700 jobs.
Traditional agriculture states – especially leaders in soybean production – continue to see economic benefits. North Dakota – which grows both soy and canola and has seen major investments in oilseed processing as well as renewable diesel production – is experiencing $3.1 billion in economic impact and 9,100 jobs.
Iowa remains the leading biodiesel producer and one of the top soybean growers. Consequently, the state sees $3.5 billion in economic impact and support for 12,000 jobs. And Illinois is traditionally the top soybean producer and sees $3.2 billion in economic impact as well as support for 8,100 jobs from U.S. biodiesel and renewable diesel production.
The economic benefits are still increasing. U.S. production capacity is expected to grow to 7.3 billion gallons in 2026 with projects that are already built and starting up. The GlobalData study includes a scenario where that production capacity is fully utilized to supply the U.S. market. The growth would bring an estimated $60.2 billion in economic impact and support 145,700 jobs.
The potential for the biodiesel and renewable diesel industry is considerable. Demand for these clean fuels is growing among railroads, in ports, and heating. The economic benefits also flow into these sectors as more American jobs are associated with producing and distributing the raw materials and finished renewable fuels.
