Renewable fuels 101: What is renewable diesel?

A versatile fuel backed by policies and incentives used by fleets throughout the country have surpassed producer — and user — expectations. In this short article, learn about renewable diesel and why many have found this to be a relatively straightforward choice in 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 petroleum diesel.

Because of its similarities to petroleum diesel, renewable diesel can be used as a direct replacement fuel, meaning it is compatible with petroleum diesel and can be mixed in or blended with petroleum diesel or substituted with no or minimal changes to a diesel engine.  

Renewable diesel meets the same ASTM D975 standard as petroleum diesel but can perform differently in cold weather. Notably, the cloud point of renewable diesel is typically around -10°C (+14°F) and, unlike petroleum diesel, common cold flow improver additives are less effective in renewable diesel. Blending renewable diesel with low cloud point biodiesel can reduce the freezing point and creates a mix that can be stored, handled and successfully used at lower temperatures than renewable diesel alone.

How does the use of renewable diesel help reduce greenhouse gas emissions?

The feedstocks used to manufacture renewable diesel, when compared to that of petroleum diesel, can lead to a decrease in certain greenhouse gas emissions in the production process.

What is the current and growing availability of renewable diesel?

In recent years, demand for renewable diesel has been propelled 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 greenhouse gas (GHG) emissions below certain levels.

Policy has expanded production and consumption of renewable diesel to historic levels as renewable diesel usage bypasses that of other biofuels. Renewable diesel can be used as a direct replacement for petroleum diesel. As production of renewable diesel fuel has increased, it has set off a chain reaction that includes a rise in demand for 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 is this fuel type fit for?

On and off highway fleets, rail, marine and mining operations that prioritize diesel engines in their everyday use and could 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 lower carbon dioxide and nitrogen oxide emissions.

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.