The U.S. Energy Information Administration (EIA) reported that imports of biodiesel and renewable diesel are set to fall to their lowest levels in more than a decade during the first half of 2025. This sharp decline follows recent changes to the federal fuel tax credit policy, which previously granted a $1 per gallon credit to both domestic production and imports. Under the revised framework, only domestically produced fuels are eligible, placing imports at a significant economic disadvantage.

According to EIA data, U.S. biodiesel imports averaged just 2,000 barrels per day in the first half of 2024, compared with 35,000 barrels per day in the same period a year earlier. Renewable diesel imports also plunged from 33,000 barrels per day to 5,000 barrels per day, marking the lowest levels since 2012. In addition to the tax credit changes, uncertainty around blending requirements and negative margins for blending have further dampened demand.

While consumption may rise in the coming months to comply with the Renewable Fuel Standard (RFS), EIA projects that U.S. net imports of biodiesel will remain depressed through 2025 and 2026, hitting their lowest point since 2012.