US Renewable Diesel Production Capacity Increased 5.3% in 2025, Ethanol Output Down Less Than 1%: EIA

U.S. renewable diesel and “other biofuel” production capacity rose by 5.3% last year to 4.97 billion gal/yr, thanks largely to growth in the West Coast (PADD 5) and Gulf Coast (PADD 3) markets, the U.S. Energy Information Administration (EIA) said on Thursday.

The agency said the 4.97-billion-gal/yr total production capacity as of Jan. 1 was up from 4.719 billion gal/yr on the same date in 2025. EIA’s “other biofuels” category includes renewable heating oil, jet fuel, naphtha, and gasoline.

The report said PADD 3 production capacity at the start of the year was 2.46 billion gal/yr from 19 plants, up 15.5% from 2.13 billion gal/yr a year earlier.

The largest renewable diesel plant in the country is Diamond Green Diesel’s (DGD) 982 million gal/yr facility in Norco, La. DGD also has a 613 million gal/yr plant in Port Arthur, Texas, putting its total capacity at 1.595 billion gal as of Jan. 1. These two facilities account for about 65% of total renewable diesel and other biofuels production capacity on the Gulf Coast.

DGD is a joint venture between Valero Energy and Darling Ingredients.

The report said PADD 5 renewable diesel production capacity rose 1.5% from 1.799 billion gal/yr from seven facilities on Jan. 1, 2025, to 1.827 billion gal/yr on Jan. 1, 2026, from the same number of plants.

The EIA said U.S. biodiesel production capacity slipped less than 1% to 1.97 billion gal/yr on Jan. 1, down from 1.986 billion gal/yr last year, but it added that three plants closed last year.

Meanwhile, total fuel ethanol production capacity as of Jan. 1 was 18.44 billion gal/yr, down less than 1% compared to the previous year when it stood at 18.48 billion gal/yr. The agency noted that it removed two plants from this year’s total of 189 compared to 191 a year ago – both of which were in the Midwest (PADD 2).

The lion’s share of ethanol plants is concentrated in PADD 2, where 175 facilities have a collective production capacity of 17.43 billion gal/yr.