Renewable Fuels 101: What is Renewable Diesel?
Backed by policies and incentives, renewable diesel is a versatile fuel used by fleets throughout the country that has surpassed producer — and user — expectations. In this short article, learn about renewable diesel and why many have found this fuel to be the right fit for their fuel journey.
What is renewable diesel and how is it created?
Renewable diesel is a type of fuel made from feedstocks, like vegetable oil, used cooking oil and waste animal fats. Most renewable diesel today is produced through a two-step process — hydrotreating and isomerization — where the feedstocks are converted into a fuel with properties that are similar to conventional diesel.
Because of its similarities to conventional diesel, renewable diesel can often be used as a direct replacement fuel, meaning it can be substituted for or blended with conventional diesel with no or minimal changes to a diesel engine.
Renewable diesel meets the same ASTM D975 standard as conventional diesel but can perform differently in cold weather. Notably, the cloud point of renewable diesel is typically around -10°C (+14°F). Blending renewable diesel with low cloud point biodiesel can reduce the freezing point.
How can the use of renewable diesel help reduce carbon intensity?
Depending on the specific feedstocks, the use of renewable diesel can decrease lifecycle carbon emissions on average by 65% when compared with conventional diesel.
What is the current and growing availability of renewable diesel?
In prior years, demand for renewable diesel has been propelled, at least in part, by policy advancements, such as the Blender’s Tax Credit (BTC), that offset production costs. Of note, the BTC expired at the end of 2024 and has not been renewed at the time of this article’s publication.
California quickly adopted supportive policies, and between 2020 and 2023, the state’s consumption of renewable diesel was more than double the consumption growth of the rest of the United States.
In 2025, the Clean Fuel Production Credit (CFPC), or 45Z went into effect. This tax credit provides incentives for the production of transportation fuels with lifecycle greenhouse gas (GHG) emissions below certain levels.
Policy has expanded production and consumption of renewable diesel to historic levels as renewable diesel usage exceeds that of other biofuels. Renewable diesel can often be used as a direct replacement for conventional diesel. As production of renewable diesel fuel has increased, it has set off a chain reaction that includes a rise in demand for certain feedstocks, which, in turn, has led to a greater need for the U.S. to import vegetable and waste oils and animal fats. As demand for biofuels fluctuates and policies change, Chevron is ready to help customers navigate this complex landscape.
What industries can utilize renewable diesel?
On and off highway fleets, rail, marine and mining operations that prioritize diesel engines in their everyday use may benefit from switching to renewable diesel to power their equipment. The replacement of a traditional fossil fuel with renewable diesel, or a renewable diesel blend, can lead to more flexibility and help operations meet lower carbon intensity targets.
How to connect with Chevron to learn more about the fuel type
Chevron offers lower carbon intensity fuel solutions that strive to meet demand today. Fill out the form below to connect with a Chevron expert today to get started on your fuel journey.