Aug 15 (Reuters) - Five new renewable diesel production
plants opened last year, boosting U.S. output of the drop-in
diesel substitute and other emerging biofuels by 44% to 282,000
barrels-per-day (bpd), U.S. Energy Information Administration
(EIA) data showed on Thursday.
Two renewable diesel plants opened in both the U.S. Gulf
Coast and West Coast, while one facility opened on the East
Coast, taking the countrywide total to 22, according to the EIA
data. West Coast capacity was two and a half times higher at the
start of this year than last, at 82,000 bpd.
U.S. fuel makers have rushed to add renewable diesel
facilities to their portfolios in recent years, seeking ways to
survive the transition away from their petroleum-based products.
Renewable diesel is more expensive to make, and its production
and imports have been heavily subsidized by the federal
government and some state-level governments.
However, that rush has forced some biodiesel producers out
of the market, as that older-generation biofuel can only be used
on blending into renewable diesel, and attracts lower financial
incentives.
Three biofuel plants shuttered over the past year, one each
on the East Coast, West Coast and in the Midwest, the EIA data
showed. Analysts expect more biodiesel plants to shutter if they
don't get more government support.
However, biodiesel output capacity was largely unchanged at
approximately 136,000 barrels per day, according to the EIA
data.
In terms of ethanol output, one plant shuttered on the East
Coast but a larger facility opened on the Gulf Coast, boosting
output capacity by 2% to 1.18 million bpd from the 187 plants in
operation at the start of this year.