It’s imperative that agriculture becomes a more sustainable industry. The world cannot function without farms, but the sector is also responsible for considerable greenhouse gas (GHG) emissions and resource consumption. Reducing equipment emissions is a good start, and renewable diesel may be an ideal solution.

What Is Renewable Diesel?

Renewable diesel is chemically identical to petroleum diesel but comes from renewable feedstocks instead of crude oil. These sources are often fats and oils from crops like soybeans or rapeseed but can even include reusable waste like used cooking grease.

Some farmers may confuse renewable diesel with biodiesel, but they are separate fuels. While both are fossil fuel replacements and are chemically similar, they come from different processes and function differently.

Biodiesel comes from a reaction called transesterification, which involves introducing feedstocks to alcohol and a chemical catalyst. It also often needs blending with petroleum fuel before it can function in farm equipment. By contrast, renewable diesel uses similar production methods to conventional diesel and can power combustion engines with no blending.

Benefits of Renewable Diesel for Agricultural Equipment

Switching to renewable diesel has several benefits for the agricultural industry. The most obvious is that it’s a far cleaner alternative to fossil fuels. It produces 50% fewer GHG emissions than petroleum diesel — a figure that jumps to 80% when considering its life cycle emissions, which include production and transport.

Being a drop-in replacement for fossil fuels is renewable diesel’s most notable quality in the short term. Farms can start using it in machinery they already own without any engine modifications.

While the emissions reductions may not be as significant as using electric farm equipment, the drop-in status is worth considering. It’s more accessible than electric alternatives because it requires no upgrades. Consequently, it could deliver bigger sustainability gains before electrification costs fall.

Farms can derive practical benefits from renewable diesel, too. These fuels have better thermal efficiency and fuel consumption than their petroleum counterpart, thanks to a higher cetane rating. As a result, switching to green diesel could improve farm equipment performance. Similarly, cleaner combustion means less buildup and fewer maintenance concerns down the road.

Can Renewable Diesel Power Farms by 2025?

In light of such benefits, renewable diesel is promising for farms trying to lower their carbon footprints. It’s particularly valuable as a near-term environmental solution. Industry-wide changes could come as soon as 2025, depending on a few trends.

Renewable Diesel Availability

The first factor determining this fuel’s success in the coming years is its supply. While current availability is far below that of fossil fuels, it will likely see substantial growth within the next year and beyond.

Current trends suggest the U.S. will produce roughly 5.1 billion gallons of renewable diesel annually by 2024’s end. Such growth represents an over 100% increase over 2022’s levels. It would also mean renewable alternatives account for as much as 5% of total diesel production capacity.

Today’s production provides enough for many farms to get the renewable diesel they’d need to power their equipment without trouble. As more make the switch, the ensuing demand will likely spur additional output growth as oil refineries adapt to the changing market. Unlike other renewables, these increases can also occur fairly quickly, as the manufacturing process is similar to practices for petroleum fuel.

Feedstock Viability

The supply of raw materials is also worth consideration. Soybeans and other feedstocks do not face the same constraints as crude oil, and their renewability means they can support consistent long-term demand. However, a renewable diesel boom could occur faster than crop growth can keep up.

Despite achieving record soybean crush levels for four consecutive years, the U.S. became a net soybean importer for the first time in 2023. Some of this is from cheaper competition from other nations, while some is from the demand spike. Regardless of its origins, though, it indicates feedstock consumption is accelerating beyond what domestic production can support.

At the same time, there are other feedstocks to consider. Canola oil supplies remain strong, even though the U.S. relies on imports. A staggering 91% of canola oil exports from Canada — the world’s largest exporter of it — go to the U.S., and Canada has announced plans to increase its capacity for the resource.

Environmental Impact

Finally, farms should think of renewable diesel’s viability in terms of sustainability. While the fuel is not a perfect solution, it is among the best short-term improvements.

Renewable diesel does emit some GHG emissions, albeit far less than conventional power sources. Farm equipment as a whole also accounts for just 6% of GHG emissions in agriculture — soil management, manure and cattle make up most of the rest. Consequently, switching to green diesel won’t make the industry significantly more sustainable.

While overall emissions savings from the fuel may be relatively small, any improvement is beneficial. Other, better solutions also will take additional time and investment. Reducing equipment-generated carbon quickly could buy farms some time to implement larger changes in their net-zero journey.

Potential Obstacles to Renewable Diesel Adoption

Overall, current trends paint a promising picture of the near-term future of renewable diesel in agriculture. However, a few obstacles deserving attention remain.

Feedstock Competition

The biggest issue facing broader renewable diesel adoption is the materials it uses as feedstocks. While there are enough crops to sustain demand in the future when factoring in imports, such resources are also critical to food supplies.

Soybeans and canola oil are staple food products. Consequently, draining their supply for fuel production could lead to price and availability concerns over people’s groceries. The inverse may also be true — rising food-related consumption could reduce available diesel supplies.

Further research and development may provide solutions to this challenge. It’s possible to produce diesel from non-food sources such as algae or recycled waste. These feedstocks are not common today, but they may provide a better long-term answer as the population grows and renewable diesel use increases.

High Costs

Renewable diesel also carries high costs. This problem is not unique to alternative diesel — the average electric car costs $66,000 — but it still might slow the green transition.

Prices will fall with larger production volumes, and the fact that farmers can use renewable diesel in their current equipment offsets some costs. However, the fuel is not a competitively priced alternative to petroleum yet.

Tax credits and other incentive programs could help. For now, though, many farms will have to choose between lower operating costs and higher sustainability.

Renewable Diesel Could Become Widespread Before Long

Sustainable fuels face some challenges, but they remain promising, especially in the near term. As more farms seek to reduce their carbon footprints, alternative diesel could quickly become common. While it may not be what disrupts the sector in the long run, it’s an important step toward a greener future.