Rising biomass-based diesel production under the latest Renewable Fuel Standard (RFS) targets is expected to significantly increase demand for U.S. soybeans, strengthen soybean processing and create additional value across the agricultural supply chain, according to Clean Fuels Alliance America.
The industry body said expanded blending requirements for biomass-based diesel are projected to drive higher consumption of soybean oil while supporting growth in biodiesel and renewable diesel production across the United States, Agronews reported.
Donnell Rehagen, Chief Executive Officer of Clean Fuels Alliance America, said biomass-based diesel output made from soybean oil is expected to increase from 1.3 billion gallons in 2025 to 2.6 billion gallons by 2027 under the latest programme targets.
According to Rehagen, the increase in blending volumes is enhancing the value of soybeans, soybean oil and soybean processing operations while strengthening domestic demand.
He said the Renewable Fuel Standard continues to support production growth in both biodiesel and renewable diesel sectors, creating additional market opportunities that ultimately benefit soybean farmers.
The increased demand for soybean-derived feedstocks is also helping build momentum for greater domestic use of soybean oil.
Rehagen added that U.S. soybean crushing capacity has expanded by 25 per cent over the last five years, reflecting growing investment and confidence in the industry’s long-term outlook.
He said the increase in processing capacity provides a direct value signal to farmers and noted that such expansion would not have taken place without expectations of continued growth in biomass-based diesel production.
Clean Fuels Alliance America, which represents the U.S. biodiesel and renewable diesel industries, said renewable fuel demand is becoming an increasingly important driver of investment across the soybean value chain.
