U.S. Biodiesel & Renewable Diesel Imports Fall Sharply in 2025 after Tax Credit Change - CleanTechnica

In the first half of 2025, U.S. imports of biodiesel and renewable diesel dropped sharply compared to previous years, reaching their lowest levels since 2012. Biodiesel imports fell from 35,000 barrels per day (b/d) in 1H24 to 2,000 b/d in 1H25, while renewable diesel imports declined from 33,000 b/d to 5,000 b/d. This decline is primarily attributed to the loss of a $1 per gallon tax credit (BTC) for imported biofuels, which was replaced in 2025 by a tax credit applying only to domestically produced fuels. This policy change created an economic disadvantage for imports. Additionally, overall U.S. consumption of these fuels decreased due to uncertainty around blending requirements and negative profit margins, with renewable diesel consumption down about 30% and biodiesel consumption down about 40% compared to 1H24. The combined effect of reduced consumption and the tax credit