Biodiesel Information

Biodiesel in the U.S. Fuel Market

Biodiesel is a renewable fuel component used in the U.S. diesel supply chain. It is typically blended with petroleum diesel rather than sold as a stand-alone retail product, with common blends including B5 and B20. In practice, biodiesel helps fuel suppliers meet renewable-fuel obligations and serve customers who want lower-carbon diesel options.

Biodiesel plays a business role as much as a fuel role. Most of it is blended before fuel reaches end users, which makes it part of terminal operations, distribution planning, and compliance management. For many diesel marketers, it is one of the main ways to participate in the renewable fuels market without changing the core diesel product line.

Common Blends

The most common biodiesel blends are B5 and B20. B5 contains up to 5% biodiesel, while B20 contains 6% to 20% biodiesel, and B100 is pure biodiesel that is usually used as a blendstock rather than as a regular transportation fuel. B20 is popular because it balances emissions benefits, cost, cold-weather performance, and engine compatibility.

Higher blends can be used in some fleets, but they come with tradeoffs. Biodiesel has less energy per gallon than petroleum diesel, so fuel economy can be slightly lower at higher blend levels, and very high blends can create storage, cold-flow, and warranty considerations. That is why most commercial use in the U.S. stays at lower blend levels or managed fleet applications.

State and Federal Rules

Federal renewable fuel policy has been a major driver of biodiesel use in the U.S. The EPA’s Renewable Fuel Standard requires blending targets for biomass-based diesel, and EPA notes that biomass-based diesel must meet a 50% lifecycle greenhouse gas reduction threshold. Recent EPA rulemaking has continued to push higher biofuel use, which supports demand for biodiesel and renewable diesel in the market.

Some states also require biodiesel blends in diesel sold locally. Minnesota is the clearest example, with a mandated B20 summer blend and B5 in the rest of the year, along with a short spring transition period. Other states have adopted or discussed similar blend requirements, showing that biodiesel demand is shaped by both federal policy and state-level market rules.