# Renewable diesel plans unrealistic: analyst | The Western Producer

> An economist at the University of Illinois argues that US renewable diesel and biodiesel capacity plans, about 6 billion gallons by 2025 and 7.4 billion in later years, exceed the EPA's 4 to 4.5 billion gallon mandate. He says some plants will not be built, will run well below capacity, or will push existing biodiesel plants out of business. He cites the wide premium of biodiesel and renewable diesel over conventional diesel as a key strain.

- Date: 2023-12-28 · published 2023-12-28T12:00:00.000Z
- Category: policy · region US · magnitude medium
- Page: https://feedsoft.ai/events/15250-renewable-diesel-plans-unrealistic-analyst-the-western-producer
- Commodities: [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

If planned capacity outruns the mandate, feedstock demand for soybean oil and canola could weaken, pressuring oil prices. The mismatch also raises the risk of plant closures that cut feedstock buying.

## Read by commodity

- SBO: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SBO | 2024-01-30 | [Renewable biodiesel and soybean prices: What to expect](https://feedsoft.ai/events/15244-renewable-biodiesel-and-soybean-prices-what-to-expect.md) | +0.0% | -1.4% |
| SBO | 2020-01-20 | [Argentine biodiesel producers stuck between a rock and a hard place at home too  : The Daily Digest](https://feedsoft.ai/events/55173-argentine-biodiesel-producers-stuck-between-a-rock-and-a-hard-place-at-home-too.md) | -5.5% | -8.6% |
| SBO | 2019-07-29 | [Federal Register
       :: 
      Renewable Fuel Standard Program: Standards for 2020 and Biomass-Based Diesel Volume for 2021, Response to the Remand of the 2016 Standards, and Other Changes](https://feedsoft.ai/events/57954-federal-register-renewable-fuel-standard-program-standards-for-2020-and-biomass.md) | -1.0% | -0.5% |
| SBO | 2023-12-13 | [Something’s Gotta Give – Five Ways the Market Could React to Surging Renewable Diesel Output, RIN Generation – Prometheus Institute](https://feedsoft.ai/events/15256-something-s-gotta-give-five-ways-the-market-could-react-to-surging-renewable.md) | +0.3% | -3.8% |
| SBO | 2018-04-26 | [Winners and losers from the proposed ban on palm oil - Renewable Carbon News](https://feedsoft.ai/events/65525-winners-and-losers-from-the-proposed-ban-on-palm-oil-renewable-carbon-news.md) | -1.4% | +3.0% |

## Sources

- producer.com: https://www.producer.com/news/renewable-diesel-plans-unrealistic-analyst/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.