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Biodiesel is a renewable, biodegradable alternative fuel made from a blend of modified vegetable oil and diesel fuel. Biodiesel is much better for the environment as regular fuels.

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Biodiesel usage

Biodiesel is rarely used in its pure form. Currently, you see very much biodiesel based on regular diesel. In America, many vehicles use B20 diesel, which is diesel that contains between 6-20% of biodiesel with the rest being regular diesel. Biodiesel is good for the introduction of sustainable fuel, by using vegetable oil, among other things, it makes the fuel sustainable.

The production cost of biodiesel is about the same as petroleum. Government incentives have helped keep market prices competitive. Federal standards for low-sulfur diesel have also boosted biodiesel.

Biodiesel market trends

The global biodiesel market was valued at USD 32.09 billion in 2021 and is expected to grow at an annual growth rate of 10.0% 2030.

Increasing demand for biodiesel to replace traditional fossil fuels in power generation and automotive applications is expected to drive market growth. This is due to stricter regulations on regular diesel.

Because biodiesel contains over a lot of renewable resources and the use of biodiesel is very popular we also suspect that the market will only continue to grow.

There is a lot of demand for biodiesel in the auto industry this is because biodiesel emits less greenhouse gases given the climate developments so this is a very good outcome.

In March 2017, soybean oil was the largest feedstock for biodiesel production. This accounted for 360 million pounds of the total 857 million pounds of feedstock, followed by corn oil and canola oil. Developing countries such as India, China, Brazil and some EU countries, plan to replace 10 – 20% of total fossil fuels with biodiesel used in the transportation sector.

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