NEW YORK, Dec 3 (Reuters) - Consumption of renewable diesel on the U.S. East Coast has been on the rise, the U.S. Energy Information Administration said on Tuesday, but the upcoming Clean Fuel Production Tax Credit could shift trade dynamics and weigh on importers that supply over half of the fuel to the region.

Renewable diesel is primarily consumed on the West Coast in states with active clean fuel programs like California, Oregon, and Washington. The East Coast relies heavily on imports and interregional shipments to meet demand.

However, the Clean Fuel Production Tax Credit (PTC), a provision in the Inflation Reduction Act of 2022 that will take effect next year, would make biofuel imports ineligible for tax credits.

More than half of the fuel supplied to the East Coast this year has come from imports, notably from overseas plants operated by Neste (NESTE.HE) , opens new tab, the world’s largest producer of renewable diesel.

Of the renewable diesel imported into the East Coast, about two-thirds has been destined for New Jersey.

Consumption of renewable diesel on the East Coast from May to September was within the range of 5,000-7,000 barrels per day, the EIA said, above the previous record high.

The East Coast now holds almost 10% of renewable diesel inventories in the United States and attracts almost 10% of U.S. imports, the EIA said.

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https://www.reuters.com/sustainability/climate-energy/us-east-coast-becomes-consistent-destination-renewable-diesel-eia-says-2024-12-03/