OAKHURST, N.J. (DTN) -- Domestic biodiesel production is expected to be slightly below the 2020 output rate this year before growing in 2022, driven by the biofuel's role in meeting multiple Renewable Fuel Standard targets and the existence of the biodiesel production credit through 2022, the Energy Information Administration said in its Short-term Energy Outlook on Wednesday.
Here are some key points from the report:
-- 2021 biodiesel production to average 117,000 barrels per day (bpd) compared with 118,000 bpd last year.
-- EIA expects biodiesel production next year to average 129,000 bpd.
"Despite RIN prices that have recently been at all-time highs, record-high feedstock costs are expected to limit biodiesel production growth over the forecast period," said EIA.
-- U.S. net biomass-based diesel imports estimated at 29,000 bpd in 2021, up 7,000 bpd.
-- U.S. net imports of biomass-based diesel seen at 44,000 bpd in 2022.
"Increased net imports of biomass-based diesel primarily reflect increased volumes of renewable diesel imported to meet both California Low Carbon Fuel Standard requirements and RFS targets for biomass-based diesel and advanced biofuels," EIA said.
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