Over the course of 2021 and 2022, various companies announced plans to expand renewable diesel production capacity by over 7.4 billion gallons. The capacity expansion includes 2.7 billion gallons from conversion of existing oil refineries and 4.7 billion gallons from new construction. Expanded renewable diesel supply will help compensate for the idled petroleum refining capacity and moderate diesel fuel prices. Biomass-based diesel production reduces #2 diesel prices because it increases the supply of diesel fuel.

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Screencap - The Offsetting Impact of Expanded Biomass Based Diesel Production on Diesel Prices