The U.S. uses a significant amount of biodiesel: in the billions of gallons per year.
Most of that goes into transportation, especially heavy-duty diesel vehicles.
Use in heating (residential/commercial) is growing, though it still represents a smaller share.
The biodiesel industry is facing some production challenges, but “biomass-based diesel” as a broader category (biodiesel + renewable diesel) is growing rapidly.
Interesting Facts About U.S. Biodiesel Production and Consumption
- Production and Consumption
- In 2022, the U.S. produced about 1.62 billion gallons of biodiesel.
- In the same year, U.S. consumption was ~1.66 billion gallons.
- According to a more recent source, combined “biomass-based diesel” (which includes biodiesel plus renewable diesel, SAF, etc.) reached 4 billion gallons in 2023.
- Sector Breakdown (Where It’s Used)
- Historically, most biodiesel has been used in the transportation sector (especially trucks).
- But usage is expanding: in 2023, about 5% of U.S. biodiesel was used in residential and commercial sectors (e.g., for heating).
- Trends & Changes
- Biodiesel production has faced headwinds: in Q1 2025, production dropped significantly (e.g., ~60,000 barrels/day in January 2025), partly due to tax credit uncertainty.
- Meanwhile, U.S. renewable diesel capacity has grown rapidly. As of January 2023, renewable diesel production capacity surpassed biodiesel capacity.
- According to forecasts, biodiesel + renewable diesel usage could exceed 5 billion gallons in 2025.
- Environmental / Feedstock Notes
- Biodiesel is typically made from vegetable oils, animal fats, used cooking grease, etc.
- It offers a reduction in greenhouse gas emissions compared to petroleum diesel, but the exact benefit depends heavily on feedstock and land-use.