EIA Reports Modest Growth in U.S. Biofuels Capacity for January

by Amelia

The operational biofuels capacity in the United States experienced a slight increase in January, primarily driven by ethanol expansion, according to the latest Monthly Biofuels Capacity and Feedstock Update from the U.S. Energy Information Administration (EIA), released on March 31. However, overall feedstock consumption saw a decline compared to December.

Total biofuel production capacity reached 24.99 billion gallons per year in January, marking an increase of 105 million gallons per year (MMgy) from the previous month and a rise of 1.23 billion gallons per year compared to January 2024.

Ethanol and Biodiesel Capacity Trends

Ethanol capacity grew to 18.426 billion gallons per year in January, reflecting an increase of 116 MMgy from December and a 596 MMgy rise compared to the same month in 2024.

In contrast, biodiesel capacity declined to 1.984 billion gallons per year, down by 11 MMgy from the prior month and 89 MMgy lower than in January 2024.

Renewable Diesel and Associated Biofuels

Capacity for renewable diesel and related biofuels—including renewable heating oil, jet fuel, naphtha, gasoline, and other biofuels—remained unchanged at 4.58 billion gallons per year. This level has remained steady since September 2024 but represents an increase of 723 MMgy from January 2024.

Feedstock Consumption Declines

Biofuel producers utilized approximately 28.903 billion pounds of feedstock in January, reflecting a 5.23% decrease from December. However, this figure was still 4.14% higher than in January 2024.

Corn remained the dominant feedstock, with 26.204 billion pounds consumed in January, a slight drop from 26.861 billion pounds in December but higher than the 24.7 billion pounds recorded in January 2024.

Grain sorghum consumption stood at 353 million pounds, decreasing from 372 million pounds in December but significantly higher than the 76 million pounds used in January 2024.

Soybean, Corn, and Canola Oil Consumption

Soybean oil consumption saw a notable decline, falling to 654 million pounds in January, with 384 million pounds used in biodiesel production and 270 million pounds in renewable diesel. This was down from December’s 1.097 billion pounds and also lower than January 2024’s 960 million pounds.

Conversely, corn oil consumption rose to 358 million pounds in January, with 58 million pounds allocated to biodiesel and 299 million pounds to renewable diesel. This was up from December’s 320 million pounds but higher than January 2024’s 335 million pounds.

Canola oil consumption dropped sharply to 193 million pounds in January, with 49 million pounds used in biodiesel production and 144 million pounds in renewable diesel. This marked a significant decrease from December’s 524 million pounds and a decline from January 2024’s 376 million pounds.

Other Biofuel Feedstocks

Biofuel producers also consumed 710 million pounds of tallow, 399 million pounds of yellow grease, and 32 million pounds of white grease in January. These figures compare to December’s consumption of 707 million pounds, 540 million pounds, and 46 million pounds, respectively, and January 2024’s levels of 631 million pounds, 616 million pounds, and 45 million pounds.

The EIA withheld data on the consumption of agricultural and forestry residues, poultry fat, and other waste oils and fats to protect proprietary company information.

You may also like

blank

Welcome to our Crude Daily Oil Futures! We’re your premier destination for all things related to the crude oil industry. Dive into a wealth of information, analysis, and insights to stay informed about market trends, price fluctuations, and geopolitical developments. Whether you’re a seasoned trader, industry professional, or curious observer, our platform is your go-to resource for navigating the dynamic world of crude oil.

Copyright © 2024 dailyoilfutures.com