Biofuels Issue Brief

Clean Fuels: Powering a Brighter Tomorrow

Good for the Planet, Good for Performance and Good for our Economy.


Clean fuels are made from renewable resources like plants and agricultural crops, like soybeans. They burn cleaner than traditional fossil fuels, significantly reducing greenhouse gas emissions and improving air quality.

Hand removing a green biofuel nozzle from a fuel pump.

Key Messages

  • Clean fuels demand surpassed 5 billion gallons in 2024. This demand has set the industry up well for further growth in aviation, marine, rail and heavy-duty transportation use.
  • Driven by demand for renewable energy and stricter emissions standards, the global bioheat fuel market is projected to grow from $922 million in 2024 to more than $2 billion by 2035.
  • Renewable diesel capacity has increased from 0.8 billion gallons in 2020 to 5 billion in 2024. The number of renewable diesel plants has jumped from six to 22, creating new jobs and economic opportunities.
  • USB is researching, educating and promoting clean fuels in marine and rail. All six Class 1 railroads are committed to scaling up biofuel use in FY25, further demonstrating the industry's commitment to sustainability.

Snap Shot

$1.78

Added value per bushel for soybean farmers from biodiesel demand

Types of Clean Fuels

Imagine a fuel that's not only powerful but also good for the planet. That's the promise of clean fuels. From cars and trucks to trains, planes and even homes, clean fuels are powering a more sustainable future. Here are some key types of clean fuels:

  • Biodiesel: A renewable, cleaner-burning replacement for traditional diesel fuel. You can use it in existing diesel engines without making any changes – it's an easy switch that makes a big impact.
  • Renewable Diesel: A versatile and reliable "drop-in" replacement for petroleum diesel. That means it meets the same standards and can be used in any vehicle that runs on diesel, from your car to heavy-duty trucks.
  • Sustainable Aviation Fuel (SAF): A drop-in jet fuel made from renewable SAF helps reduce carbon emissions from air travel, making flying more sustainable.
  • Bioheat® Fuel: A blend of biodiesel and ultra-low sulfur heating oil. Bioheat provides a more environmentally friendly way to heat homes, especially in the northeastern U.S. It brings warmth without the worry.

Why Clean Fuels Matter: It's About More Than Just Fuel

Clean fuels aren't just a trend; they're a vital part of a healthier future for our planet, our communities, and our businesses.

Fueling a Stronger Economy:

  • Clean fuels drive a massive $23.2 billion in annual U.S. economic activity, creating jobs and supporting local communities. (Source)
  • From farms to engineering to manufacturing, clean fuels support over 75,000 American jobs. (Source)
  • The growth of the clean fuels industry is driving investment in rural communities, creating new opportunities for farmers.

Protecting Our Planet:

  • By 2030, clean fuels will eliminate over 50 million metric tons of CO2-equivalent greenhouse gas emissions annually. That equates to taking millions of cars off the road! (Source)
  • Biodiesel and renewable diesel reduce greenhouse gas emissions by more than 70% on average compared to traditional petroleum diesel. (Source)
  • Clean fuels are made from renewable resources, reducing our reliance on finite fossil.
  • Biodiesel, renewable diesel, and sustainable aviation fuel are made from a diverse mix of renewable and recycled resources that are cleaner than traditional fossil. In ground, air, marine and rail transportation, as well as home heating applications, clean fuels use will exceed 6 billion gallons by 2030. This use will eliminate more than 50 million metric tons of CO2-equivalent greenhouse gas emissions annually. (Source)

Improving Public Health:

  • Biodiesel and Bioheat fuel reduce harmful particulate emissions, leading to cleaner, healthier air.
  • Research shows that clean fuels can help prevent 457,000 asthma cases annually. (Source)
  • By reducing air pollution, clean fuels can prevent over 1,100 premature deaths and more than $7.5 billion in health costs each year. (Source)

Supporting American Farmers:

  • Soybean farmers are at the forefront of the clean fuel revolution, with a growing demand for soybean oil to produce biodiesel and renewable energy.
  • Clean fuels increase the value of soybean oil, supporting U.S. farmers and the agricultural economy.

The Revolution Is Happening Now

The clean fuels industry is booming, and it's transforming American agriculture and rural communities. It's not just a future possibility; it's a present-day reality. It's creating jobs, boosting the agricultural economy, and driving investment in rural communities across the country. The momentum is building, and the future of fuel is here.

  • The U.S. biomass-based diesel industry generated $42.4 billion in economic activity in 2024, supported 107,400 jobs and paid $6 billion in annual wages. (Source)
  • This surge in demand is driving a 30% increase in soybean crush capacity across the United States. (Source)
  • More than 20 new soybean processing plants or expansions are underway, adding 650 million bushels of capacity. This represents an investment of over $6 billion (about $18 per person in the U.S.) in rural America. (Source)

How Clean Fuels Impact U.S. Soybean Farmers and the Public

U.S. soybean farmers are the backbone of the biodiesel industry, and they're reaping the rewards of its growth.

  • Biodiesel supports 10% of the per-bushel price of soybeans. That 10% translates to an extra $1.78 per bushel for soybean farmers, according to Clean Fuels Alliance America.
  • Increased demand for soybean oil from biodiesel production means more soybean meal, which benefits the U.S. soybean industry's No. 1 customer — animal agriculture.
  • The U.S. biodiesel and renewable diesel industry generates more than 3 billion gallons of better, cleaner fuels each year, driving down the price of traditional diesel by 4% in 2021 overall. (Source)

Resources

Resources and partnerships for U.S. Soy℠ in biofuels
  • Represents the biodiesel, renewable diesel, and sustainable aviation fuel industries as the national trade association, partially funded through checkoff investment.

  • Showcases the versatility of U.S. Soy and how it supports food, feed, fuel and a more sustainable future.

  • Built on USDA data, the dashboards provide feed manufacturers, animal nutritionists, feed formulators, and poultry producers with reliable, regularly updated insights and trends.

  • Demonstrates how clean fuels can improve air quality and support better public health.

  • Explains the federal regulations that support and drive growth in the clean fuels industry.

  • Provides data and insights on U.S. petroleum, natural gas, biofuels and other energy sources.