The Promise of Renewable Diesel in Trucking
Exploring the transformative potential of renewable diesel in the trucking industry
The American Transportation Research Institute (ATRI) recently unveiled a comprehensive report assessing the role of renewable diesel (RD) in transforming the trucking industry towards a more sustainable future. As global efforts intensify to reduce carbon emissions, the viability of RD as an alternative fuel has garnered significant attention, especially when compared to traditional diesel and emerging battery-electric vehicle (BEV) technologies.
Comparative Analysis of RD and BEV Trucks
ATRI’s research meticulously evaluated the lifecycle emissions from diesel-powered trucks against those utilizing RD and BEVs. The findings are compelling: RD drastically reduces lifecycle CO2 emissions by 67.3% in existing Class 8 trucks, presenting a more substantial decrease than the 30% reduction observed with BEVs. This stark contrast is further underscored by RD's chemical identity to petroleum diesel, allowing current diesel trucks to switch to RD without any modifications—an advantage that BEVs, with their range and weight constraints, cannot match.
Operational and Environmental Benefits
The study contrasts RD trucks with BEVs across various operational scenarios. In a hypothetical fleet of three trucks:
Scenario 1: Trucks running solely on petroleum diesel emit 11.1 million pounds of CO2.
Scenario 2: Switching all trucks to RD slashes emissions to 3.6 million pounds.
Scenarios 3-5: Gradually replacing RD trucks with BEVs raises emissions incrementally to 7.8 million pounds for three BEV trucks.
These scenarios highlight RD's superiority in reducing emissions over both traditional diesel and BEVs. Moreover, the operational range of RD trucks significantly outstrips that of BEVs, with diesel trucks capable of traversing over 1,000 miles per fuel-up compared to the 150-250 mile range of currently available BEVs.
Financial and Regulatory Considerations
The financial implications of adopting RD over BEVs are profound. Initial costs for BEV trucks are considerably higher—nearly $300,000 more than their diesel counterparts. While diesel fuel costs are subject to global crude oil prices, RD benefits from stable pricing, particularly in states like California where prices are nearly equivalent to traditional diesel due to subsidies from the Low Carbon Fuel Standard program.
Market Trends and Future Projections
Renewable diesel is on an upward trajectory, with U.S. consumption soaring by 67% in just one year, largely concentrated in California where 73% of RD is sold. The burgeoning RD production capacity, which saw a nearly 280% increase from 2021 to 2023, is set to continue its steep ascent. Projections by the University of Illinois suggest that RD production could rise to 7.4 billion gallons per year post-2025, bolstered by diesel refineries converting to RD production.