US imports of biodiesel plummet to a decade-low

Imports of biodiesel and renewable diesel fuel into the United States in the first half of 2025 dropped to the lowest level in the past ten years due to changes in the tax incentive system, according to the US Energy Information Administration (EIA).

This year, the United States revised the mechanism for providing tax incentives aimed at stimulating the production and consumption of biofuels. The new rules effectively canceled incentives for imported biodiesel and renewable diesel fuel. Previously, imports and domestic production received the same benefit of €0.85 per gallon, but now it applies only to fuel produced in the US.

“These changes in tax incentives have placed imports in an unfavorable economic position,” EIA officials noted.

According to EIA data, biodiesel imports in the first half of 2025 averaged 2,000 barrels per day, compared to 35,000 barrels per day for the same period last year. Imports of renewable diesel fuel fell to 5,000 barrels per day from 33,000 barrels per day in 2024. For both types of fuel, these are the lowest figures for the first six months of the year since 2012.

In addition to changes in tax policy, the decline in imports is also linked to reduced domestic consumption due to uncertainty regarding fuel blending requirements and negative profitability in biofuel production, EIA reported. At the same time, despite ambitious development plans, renewable biodiesel production in the US is also decreasing.

Tags: USA, biofuel