Summary

This report highlights a decline in renewable diesel, modest biodiesel recovery, and record renewable jet fuel growth. Ethanol output and exports remain robust, supported by international demand. Feedstock dynamics show stronger soybean oil use alongside rising imports of used cooking oil and beef tallow, particularly from Brazil.

Biomass-Based Diesel

Biomass-based renewable diesel production declined by 6% in July to 225 million gallons, backing off from the strong June print, according to data from the Environmental Protection Agency. Output for the year reached 1.35 billion gallons, down 5.2% year-over-year. 

Biodiesel production totaled 106 million gallons, up 9.2% from the previous month. Volumes were still 27% lower than the same month last year. Year-to-date production was down 32% at 634 million gallons. Total biomass-based diesel production has been heavily challenged since the expiration of biofuel tax credits at the end of December. Renewable diesel production has bounced back more rapidly than biodiesel.

Renewable jet fuel production surged 39% in July to a record 25 million gallons. Year-to-date production is up 442% at 89.2 million gallons. The drop-in alternative to petroleum-based jet fuel has grown substantially since the renewable diesel boom, primarily in 2024. 

While biomass diesel production took a sizable hit in the first quarter of 2025, renewable jet fuel experienced sizable growth and more than doubled from the previous quarter as new production facilities came online. 

Ethanol

U.S. ethanol production totaled 1.357 billion gallons in June, down slightly from the previous month but 3.8% higher than last year, according to data from the Energy Information Administration. Total production for the first half of 2025 rose to 8 billion gallons, up 2.6% year-over-year. 

Ethanol processors have achieved record output this year despite lower crush volumes. In June, the corn ethanol conversion rate was about 3 gallons per bushel of corn, according to calculations using USDA crush data and EIA production data. 

Strong international demand for U.S. exports has kept ethanol processors optimistic despite a rocky start to the primary driving season. However, domestic gasoline consumption has improved significantly over the past month after rebounding from seasonally low levels. 

Monthly data from the U.S. Census Bureau showed that July ethanol exports totaled 164 million gallons, down 8% from the previous month but 21% higher than last year. Shipments to Canada grew during the month, totaling 67 million gallons, representing 41% of July shipments. Shipments increased from June for the Netherlands, the United Kingdom, and Peru. 

Total exports continued to progress at a record pace, sitting 12% higher than a year ago at 1.23 billion gallons. Top importers for the current calendar year include Canada, the Netherlands, the UK, Colombia, and the Philippines. 

Feedstock Usage

Feedstocks used for biofuel production totaled 2.918 billion pounds in June, down slightly from the previous month, according to the EIA. Canola oil usage rose by 68% from May to 239 million pounds. Corn oil usage fell by 18% to 345 million pounds. UCO usage rose by 5% to 490 million pounds, while beef tallow used in biofuel production dropped 7% to 756 million pounds. 

Soybean oil used in biofuel production totaled 1.045 billion pounds, up 2% from the previous month and the largest volume since December 2024. Soybean oil accounted for about 36% of total feedstock usage following a decline in tallow and corn oil. However, the percentage has been in a downtrend since peaking in 2022. 

Soybean oil used in biodiesel production totaled 533 million pounds, down from 581 million the previous month. Soybean oil used in renewable diesel jumped to 511 million pounds, up from 444 million in May. Soybean oil used for renewable diesel represented about 49% of total biomass-diesel usage, the highest since June 2024. 

Increased imports of foreign feedstocks such as UCO and beef tallow have led to a lower overall percentage of soybean oil in biofuel production over the past year. Total usage of canola oil, soybean oil, and UCO has seen a decline in the first half of the year. Meanwhile, corn oil and beef tallow usage are higher. Total feedstock usage is down nearly 14% for the first half of the year. 

Biofuel Feedstock Imports

U.S. feedstock imports of canola oil, UCO, and beef tallow rose 45% in July to 1.18 billion pounds, according to data from the U.S. Census Bureau. 

Canola oil imports fell 80% to 380 million pounds. Year-to-date imports are down about 34% from the same period last year. Lower shipments from Canada have been driving the decline. UCO imports totaled 443 million pounds, up 115% from the previous month. Total shipments for the calendar year are 9% higher than a year ago, led by strong shipments from Malaysia, Australia, and China. 

Beef tallow imports surged 144% higher than the previous month to a record 360 million pounds. The increase was led by a jump in shipments from Brazil ahead of the Trump administration imposing a 50% tariff on imports from the country. Total volumes are up 33% from the same period last year. 

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