Renewable Diesel: A Sustainable Solution
What is Renewable Diesel?
Renewable Diesel is a drop-in replacement for petroleum diesel. Like biodiesel, Renewable Diesel is made from renewable resources (rather than derived from fossil fuels like conventional diesel). However, unlike biodiesel, Renewable Diesel is chemically identical to petroleum-based diesel, and meets the same ASTM spec, so it's completely compatible at any blend level and there are no concerns about differing properties when it comes to filters, fittings, or the temperature at which the equipment is operating. Renewable Diesel is a truly drop-in replacement, so no tank draining, engine retrofitting, or special handling is required to switch over or blend in any desired percentage of R99 to existing equipment.
What about performance?
Because Renewable Diesel meets the ASTM spec for diesel fuel, it performs like conventional diesel fuel in engines. The major differences are that Renewable Diesel boasts a higher cetane number than conventional diesel, which means improved engine efficiency. It's essentially zero sulfur content and lower density mean cleaner burning, cleaner emissions, and fewer deposits throughout the exhaust system (which means less lifetime maintenance on your equipment). A slightly superior lubricity also means less wear and tear on fuel injectors and fuel pumps, and smoother operation.
What about Winter?
Unlike biodiesel, Renewable Diesel does not have cold performance concerns. Actually, the cloud point on Renewable Diesel runs significantly lower than conventional petroleum-based diesel. This is really significant news for those of us in the Northeast, where winterizing fuel with kerosene and/or additives is a major decision process every year. In theory, if Renewable Diesel ultimately became the standard fuel, analyzing how to handle additives/kero on a load by load or season by season basis, as well as deciding whether to fix additive or kerosene gallons for the winter months could become a thing of the past.
What does the market look like?
Renewable Diesel is CARB 2024 compliant, which means it exceeds emissions requirements across the country, essentially. California's Low Carbon Fuel Standard (LCFS) program has fueled enormous growth in the product. According to the EPA, California used 100 million gallons, or 10% of total diesel use in the form of R99 in the second quarter of 2018 and that grew up to 28 million barrels in 2021, with growth continuing to rise.
Oregon's RFS requires 5% biodiesel or Renewable Diesel in all diesel fuel. The State also set a Clean Fuels Program up in 2020 that targets a 25% emission reduction in transportation by 2035, much of which will come from the use of Renewable Diesel. Washington State similarly requires 2% biodiesel or Renewable Diesel in all diesel fuel, and mandates at least 20% of diesel in state agency vehicles be Renewable Diesel or Biodiesel.
As it becomes more widely used across California, British Columbia, and the Western States, we are seeing the market expand East. New York City in 2023 moved to transition all heavy duty vehicles to Renewable Diesel. All agencies now run on Renewable Diesel in NYC, from ferry services to trash trucks to the NYPD. The NYC contract is expected to replace 16 million gallons of conventional diesel fuel with Renewable Diesel per year.
Although Massachusetts and the other New England states have yet to mandate specific percentages for Renewable Diesel, it seems reasonable to assume that regulations or suggestions will be introduced to comply with States' Climate Initiatives and 2050 emissions goals, presumably in line with current biodiesel levels. Since R99 is RFS and CARB compliant, its use could be a critical addition to the steps being taken on Climate initiatives.
Where can I get it?
Renewable Diesel is still in the relatively early stages in the Northeast but is being added to terminals continually. In terms of terminals, right now there are options available in Albany NY, Providence RI, and East Haven CT. It looks like the next option will likely be Chelsea MA in the coming months.
Currently, we are able to deliver customers Renewable Diesel out of Albany NY and Providence RI. As product becomes more available across terminals in the Northeast, we anticipate Renewable Diesel lifting options being available across our footprint much like you currently see with our conventional diesel options.
