Renewable diesel is considered a fungible, drop-in replacement for petroleum distillate, meaning it can be used in diesel engines in any concentration. Renewable diesel is a transportation and heating fuel that is chemically equivalent to petroleum-based distillate fuel but is produced using fats, oils, or greases rather than petroleum. Renewable diesel and biodiesel are the two biomass-based diesel fuels that can be used in place of petroleum distillate. The primary cause for the decline is the replacing of petroleum diesel with biofuels, namely renewable diesel, which has gained a larger market share of the region’s diesel pool as clean-fuel programs incentivize biofuels. West Coast, as measured by product supplied, decreased to its lowest level since 2002 last year and continues its decline this year. Biofuels are displacing petroleum-based distillate fuel oil consumption on the West CoastĬonsumption of distillate fuel oil in the U.S.
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