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US Renewable Diesel, SAF Capacity Rises as Feedstock Diversification Expands, TPH Says

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US renewable diesel and sustainable aviation fuel capacity rose in April, driven by new facility startups and a pivot toward lower-carbon-intensity feedstocks, TPH Energy strategists said in a note, citing data from the Department of Energy.

Total domestic production capacity climbed to 4.97 billion gallons per year in April, up from 4.89 billion gallons in March and a significant increase from the 4.58 billion gallons recorded a year earlier.

Matthew Blair, an analyst at TPH Energy, attributed the growth largely to the early-Q2 start of operations at Par Pacific Holdings' (PARR) 61-million-gallon-per-year SAF plant in Hawaii.

TPH said that the industry also showed a marked shift in feedstock utilization. The share of low-carbon-intensity feedstocks rose to 68% in April, up from 63% the previous month.

Blair said that market participants said that an increase in used cooking oil imports from China likely fueled this transition.

Meanwhile, the use of vegetable oils declined, with soybean oil's share of the feedstock mix dropping to 22% from 24%, while canola oil's contribution fell to 11% from 13%.

However, despite a tight domestic market, US renewable diesel exports edged higher, reaching 45 million gallons in April, up from 42 million gallons in March.

TPH said that the continued outflow of product has surprised some analysts, given that the ambitious 2026 Renewable Volume Obligations are widely expected to create a supply shortage in the US.

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