U.S. biodiesel prices soared by 59% y/y last year, making biofuel less competitive compared to fossil fuels. The average FOB price for American biodiesel B100 was $5.58 per gallon in November 2021, while the on-highway average price for conventional diesel was $3.74 per gallon. 

LOS ANGELES, Feb. 02, 2022 (GLOBE NEWSWIRE) -- U.S. biodiesel prices skyrocketed in 2021, and their growth is to continue this year, a recent report published by market research firm IndexBox reveals. According to USDA data, the average spot FOB export price for biodiesel B100 from the plants in Illinois, Indiana and Ohio reached $5.58 per gallon in November 2021, surging by 59% against 2020. The on-highway average price for conventional diesel soared by 41% y/y to $3.64 per gallon, remaining much lower than those of biodiesel. 

The rising costs of vegetable raw materials and energy constitute the key reasons for the biodiesel price increase and further propelling the biofuel prices this year. According to World Bank’s forecast, the price for soybean oil, one of the major raw types for biodiesel production, is set to grow by nearly 4% totalling $1,425 per tonne in 2022. The cost of fossil fuels is also projected to remain at the high level of 2021, which implies increased expenditures for energy in biodiesel manufacturing. 

U.S. Biodiesel Exports by Country

Biodiesel exports from the U.S. surged to 476K tonnes in 2020, rising by 25% from the previous year's figure. In value terms, supplies fell modestly to $381M.

Canada (424K tonnes) was the main destination for biodiesel exports from the U.S., with an 89% share of total supplies. Moreover, exports to Canada exceeded the volume sent to the second major destination, Peru (19K tonnes), more than tenfold. The Netherlands took the third position in this ranking (14K tonnes), with a 2.9% share.

In value terms, Canada ($351M) remains the key foreign market for biodiesel from the U.S., comprising 92% of total exports. The second position in the ranking was taken by the Netherlands ($9.9M), with a 2.6% share of total supplies. It was followed by Peru, with a 2.3% share.

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Companies Mentioned in the Report

Cosan, Renewable Energy Group, Verbio, Green Plains, Aemetis, Gevo, American Resources, Green Plains Partners, REX American Resources, Targray, R.W. Davis Oil Co., Merrimac Energy Group, Dreyfus, Aemetis, Inc., Shipley Energy, Hightowers Petroleum Co., SK Chemicals America, Alternative Petroleum Technologies, Golden Leaf Energy, Taylor Oil Co., Seaport Refining, World Energy, Pacific Biodiesel Technologies, Phoenix Petroleum Co., Western States Petroleum, KCA Solar Power Generating Company Ltd, Piedmont Biofuels Industrial, GPM Empire, Delek US Holdings Inc., RKA Petroleum Companies, Sunpol Resins & Polymers, Ricochet Fuel Distributors

Sources

U.S. - Biodiesel - Market Analysis, Forecast, Size, Trends and Insights

World - Biodiesel - Market Analysis, Forecast, Size, Trends and Insights

World - Crude Palm Oil - Market Analysis, Forecast, Size, Trends and Insights

World - Crude Soybean Oil - Market Analysis, Forecast, Size, Trends and Insights

World - Ethyl Alcohol - Market Analysis, Forecast, Size, Trends and Insights

Contact Information
Mekhrona Dzhuraeva
Editor
media@indexbox.io