Renewable diesel gains momentum on US East Coast

On the US East Coast, small but steady renewable diesel deliveries have averaged 12.9 million gallons per quarter through 2024 and reached a record 14.4 million gallons in the third quarter. The US Energy Information Administration reported that 57% of East Coast imports originated from Singapore, 37% from Finland and 6% from the Netherlands.

RD adoption has gained significant traction on the East Coast in 2024, with several milestones marking its growth. New York City Mayor Eric Adams said Oct. 4 that the city's fleet of 12,500 heavy-duty and off-road vehicles had transitioned entirely to renewable diesel, representing the first large-scale use of the fuel in the region. Earlier in the year, New York City opened its first retail station offering renewable diesel Jan. 11, followed by another opening in Connecticut Sept. 20.

In July, Neste partnered with North Brunswick, New Jersey, enabling the township's diesel fleet to run on renewable diesel, making it the first municipality in the state to adopt this cleaner fuel. These developments highlight the growing momentum of renewable diesel on the East Coast this year.

Renewable diesel imports into the US reached a record 166 million gallons in the third quarter of 2024, an 81% increase from the same quarter last year and 28% higher than the previous quarter, according to the EIA. Singapore was the largest source of these imports, supplying 108 million gallons, followed by Canada with 43.5 million gallons, as detailed in the EIA's Petroleum Supply Monthly report.

Market participants expect imports of biomass-based diesel to decline once the CFPC is implemented in 2025, as domestic production is expected to be incentivized.

The Platts LA renewable diesel (99%) price was assessed at 257.95 cents/gal, up 6.32 cents from the previous settlement, on Dec. 4.

Platts is part of S&P Global Commodity Insights.