Download Sample
Schedule a Meeting
October 2025
The U.S. renewable diesel market size is calculated at USD 11.55 billion in 2024, grew to USD 12.33 billion in 2025, and is projected to reach around USD 22.28 billion by 2034. The market is expanding at a CAGR of 6.79% between 2025 and 2034The growth of the market is driven by the growing and rapidly changing climate and concerns associated with it, which demand sustainable and eco-friendly alternatives in alignment with government policies.
The significance of the U.S. renewable diesel market is its ability to significantly lower greenhouse gas emissions and carbon intensity in transportation amid rising environmental concerns and a growing shift towards sustainability.
This also helps in managing and enhancing the national energy security by reducing the reliance on foreign oil, which helps in increasing the economy and provides income to the farmers. The net-zero initiatives and alignment with government policies help the market to grow.
Key technological shifts in the market include advancements in hydrotreating and co-processing for greater efficiency, feedstock flexibility through improved use of waste oils and fats, and innovative blending strategies (like the Chevron UltraClean Blend) to improve cold-weather performance and overcome operational constraints.
These technologies, supported by policy initiatives such as the Inflation Reduction Act and the Renewable Fuel Standard (RFS), are driving capacity expansions, reducing costs, and positioning renewable diesel as a mainstream, drop-in fuel solution.
| Report Attributes | Details |
| Market Size in 2025 | USD 12.33 Billion |
| Expected Size by 2034 | USD 22.28 Billion |
| Growth Rate from 2025 to 2034 | CAGR 6.79% |
| Base Year of Estimation | 2024 |
| Forecast Period | 2025 - 2034 |
| Segment Covered | By Feedstock Type, By Product / Fuel Type, By Application, By End-User |
| Key Companies Profiled | Neste Corporation (U.S. operations), Diamond Green Diesel (Valero & Darling Ingredients JV), World Energy, Phillips 66 / Renewable Diesel Projects , Marathon Petroleum Corporation, REG (Renewable Energy Group) , Cargill, Inc., Bunge Limited, ADM (Archer Daniels Midland Company), Chevron / Renewable Diesel Initiatives , Tyson Foods (feedstock/animal fats supply), Gevo, Inc. (advanced biofuels / renewable diesel projects) , Renewable Energy Group / REG Life Sciences , Pacific Biodiesel Technologies , Green Plains Inc. |
| Country / Region | Regulatory Body | Key Regulations | Focus Areas | Notable Notes |
| United States | U.S. EPA (Environmental Protection Agency), California Air Resources Board (CARB), U.S. Department of Energy (DOE), ASTM International | - EPA Renewable Fuel Standard (RFS2, 40 CFR Part 80) → mandates blending of renewable fuels, creates RIN credits - CARB Low Carbon Fuel Standard (LCFS) → scarbon intensity reduction targets for fuels sold in California - ASTM D975 & D975 Annex → fuel quality specifications for diesel and renewable diesel - ASTM D975 & D7467 → biodiesel/renewable diesel blends - Blender’s Tax Credit (BTC, $1/gal) – federal tax incentive for renewable diesel producers |
- GHG reduction - Fuel quality & compatibility - Compliance with blending mandates - Incentives for production & use |
California LCFS provides the strongest demand pull, while federal RFS creates a nationwide credit market (RINs). ASTM standards ensure renewable diesel is fully interchangeable with petroleum diesel. Incentives like the BTC significantly boost the economy. |
Which Feedstock Type Segment Dominated The U.S. Renewable Diesel Market In 2024?
The soybean oil segment dominated the market with an approximate share of 40% in 2024. Soybean oil remains a major renewable diesel feedstock in the U.S. due to its availability and integration with existing agricultural supply chains. It offers stable yields, supports farm-based economies, and benefits from federal incentives. Producers are expanding soybean processing capacity to meet growing demand for low-carbon fuels.
The used / waste cooking oil segment expects significant growth in the market during the forecast period. Used and waste cooking oil is gaining momentum as a sustainable feedstock for renewable diesel. Its circular economy benefits, and lower carbon intensity make it highly attractive. In the U.S., waste oil collection programs and partnerships with restaurants are increasing feedstock availability for large-scale fuel production.
How Did the B100 (Pure Renewable Diesel) Segment Dominated The U.S. Renewable Diesel Market In 2024?
The B100 (pure renewable diesel) segment dominated the U.S. renewable diesel market with an approximate share of 50% in 2024. B100 renewable diesel offers a fully decarbonized alternative to petroleum diesel, meeting ASTM standards for direct substitution. It is used in specialized fleets seeking maximum emissions reduction. In the U.S., demand is driven by state-level low-carbon fuel programs and municipal fleet decarbonization initiatives.
The blends for the commercial fleets segment are expected to experience significant growth in the market during the forecast period. Blended renewable diesel provides a practical transition option for commercial fleets. It improves fuel performance, reduces greenhouse gases, and integrates seamlessly into existing infrastructure. In the U.S., long-haul trucking and logistics sectors are rapidly adopting blends to meet corporate sustainability goals while balancing operational costs.
Which Production Tech Segment Dominated The U.S. Renewable Diesel Market In 2024?
The hydroprocessing / hefa-hvo segment dominated the market with an approximate share of 65% in 2024. Hydroprocessed esters and fatty acids (HEFA-HVO) technology dominates renewable diesel production in the U.S. It ensures high-quality fuel compatible with existing engines and infrastructure. HEFA plants are expanding rapidly, supported by investment incentives and commitments from major refiners and biofuel companies to scale domestic renewable capacity.
The co-processing in the refineries segment is expected to experience significant growth in the market during the forecast period. Co-processing allows petroleum refineries to integrate renewable feedstocks with fossil streams, offering a lower-cost, transitional pathway to renewable diesel. In the U.S., refiners are increasingly adopting this approach to comply with renewable fuel standards while maximizing utilization of existing infrastructure and reducing overall carbon intensity.
How Did the Transportation Segment Dominated The U.S. Renewable Diesel Market In 2024?
The transportation (road freight & buses) segment dominated the U.S. renewable diesel market with an approximate share of 55% in 2024. Road freight and buses are the largest consumers of renewable diesel in the U.S. Its drop-in compatibility, reduced particulate matter, and lower lifecycle emissions make it attractive for heavy-duty fleets. Federal and state incentives continue to push adoption, especially in California and other low-carbon standard states.
The aviation/marine segment expects significant growth in the market during the forecast period. The aviation and marine sectors are beginning to adopt renewable diesel, often as part of early trials and blended fuels. U.S. ports and airlines are exploring renewable options to meet international emission reduction targets. Growth is expected as sustainable aviation fuel (SAF) pathways overlap with renewable diesel technologies.
Which End-User Segment Dominated The U.S. Renewable Diesel Market In 2024?
The commercial transport fleets segment dominated the market with an approximate share of 50% in 2024. Commercial fleets, including logistics and delivery operators, are major adopters of renewable diesel in the U.S. The fuel’s compatibility with existing engines reduces transition costs. Companies are turning to renewable diesel to meet ESG targets, achieve carbon neutrality, and comply with evolving state regulations.
The municipal / government fleets segment expects significant growth in the market during the forecast period. Municipal and government fleets play a leading role in renewable diesel adoption, especially in California, Oregon, and Washington. Public buses, waste management trucks, and emergency vehicles increasingly run on renewable diesel to lower emissions, demonstrating government commitment to decarbonization and supporting broader market expansion.
By Feedstock Type
By Product / Fuel Type
By Production Technology
By Application
By End-User
NA : +1 804 441 9344
APAC : +91 9356 9282 04
EU : +44 7782 560 738
sales@towardschemandmaterials.com
October 2025
October 2025
October 2025
September 2025
Annual Access, Limitless Research! Unlock all market research reports with our annual subscription. Stay on top of market trends and crucial insights year-round!
2500+
Client Queries in 20235000+
Insights Published40+
Consulting Projects Per Year25+
Analysts