Biodiesel imports to the United States fell to their lowest in ten years over the first half of the year after the federal government axed subsidies for such imports at the start of the year.
From 2025, the subsidies, at $1 per gallon of biodiesel and renewable diesel, remained in effect for domestic producers of the fuel only, Reuters recalled in a report on the news, which comes from the U.S. Energy Information Administration.
Per the EIA, biodiesel imports between January and June averaged 2,000 barrels per day, compared with 35,000 barrels daily for the first half of 2024. Renewable diesel imports stood at an average of 5,000 barrels daily, down from 33,000 barrels daily a year ago.
In addition to the removal of subsidies for imported biofuel, consumption was affected by doubts about the future prospects of biofuels under the Trump administration, as well as sub-zero margins for domestic biofuel refiners.
“Compared with 1H24, U.S. consumption of renewable diesel was down about 30% in 1H25, and biodiesel consumption was down about 40%. This lower consumption reduced demand for both imported and domestically produced biofuels,” the Energy Information Administration said.
Imports of biofuels are expected to remain subdued through 2026 because of the change in incentives, even though consumption of biodiesel and renewable diesel is set to increase in the second half of the year because of the fuel blending mandates under the Renewable Fuel Standard program.
Earlier this year, the Trump administration proposed an increase in biofuel blending requirements for the next two years to boost reliance on domestic supply and reduce imports. For 2026, the amount proposed by the EPA is 24.02 billion gallons, which would be up from 22.33 billion gallons for this year. For 2027, the proposed blending mandate is 24.46 billion gallons.
By Charles Kennedy for Oilprice.com
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