The Energy Information Administration predicts renewable diesel production to increase by 30 percent annually in both 2024 and 2025. In its latest Short-Term Energy Outlook, the EIA says renewable diesel production will average approximately 230,000 barrels per day in 2024 and expand to 290,000 barrels per day in 2025.
In comparison, production averaged approximately 200,000 barrels per day at the end of 2023. Renewable diesel production capacity has expanded significantly in recent years. EIA data shows capacity was at 1.75 billion gallons a year in January 2022 and had reached 3.85 billion gallons a year by November 2023. The EIA also announced it is reducing U.S. crude oil capacity forecast by 120,000 barrels per day beginning in March.
That prediction comes after Phillips 66 plans to permanently stop processing crude oil at its Rodeo refinery in California next month. The company is planning to convert the facility to produce renewable diesel.