Renewable diesel (RD)

The IRA has been crucial in promoting second-generation biofuels and driving research and development efforts to convert non-food biomass feedstocks into sustainable fuels. As a result of the IRA’s implementation, renewable diesel (RD) production capacity in the U.S. is expected to grow by approximately 125% by 2025, as the U.S. Energy Information Administration (EIA) reported. This expected expansion stems from projects either under construction or in the early stages of development.

In 2022, RD production in the U.S. reached 35 million barrels, equivalent to 6,520 million liters, representing a remarkable 66% growth compared to 2021. The adoption of California’s Low Carbon Fuel Standard (LCFS) in conjunction with incentives provided by the IRA has been instrumental i