A growing number of trucking fleets are turning to renewable, biomass derived diesel fuels as convenient, drop in substitutes for petroleum diesel cutting emissions without sacrificing performance or modifying equipment.
Renewable diesel and biodiesel are emerging as realistic decarbonization pathways that work seamlessly with today’s engines, trucks, and fueling networks.
Mike Roeth, executive director of the North American Council for Freight Efficiency, explains:
“Renewable diesel, biodiesel, and renewable natural gas offer easier decarbonization options today than battery electric solutions.”
With recent rollbacks of federal and state emission rules that once favored electric trucks, interest in bio-based fuels is growing even faster, noted Nate Springer, vice president of market development at TRC.
“Fleets are no longer channeling all their resources into Advanced Clean Fleet compliance and that opens the door for renewable diesel adoption,” he said.
A Practical, No-Hassle Path to Cleaner Freight
Many experts emphasize that renewable fuels are not simply a temporary “bridge” technology.
Josh Tippin, vice president of fuels and energy at Penske Transportation Solutions, said:
“There’s no single solution to decarbonize trucking. Diesel is deeply integrated into our industry replacing it requires multiple strategies.”
Penske began offering renewable diesel (HVO) at West Coast fueling sites three years ago, and demand has only increased.
Companies focused on lowering their CO₂ and greenhouse gas footprint frequently seek out HVO, Tippin added. In California, Penske’s fuel stations dispense renewable diesel exclusively representing 10% to 15% of total bulk fuel sales.
Renewable diesel delivers strong environmental benefits, including:
- 40%+ reduction in particulate matter
- 25%+ reduction in carbon monoxide
- 20%+ reduction in total hydrocarbons
- 10% reduction in nitrogen oxides
Because renewable diesel is chemically similar to petroleum diesel, it can be used at any blend rate without changing engines or infrastructure.
“It’s one of the only fuels that truly drops right in no new equipment, no facility upgrades,” Tippin said.
Production Is Rising but Access Remains Limited
Global investments in renewable diesel refining have surged, dramatically increasing supply over the past five years.
“There’s been substantial investment from major energy companies,” said Springer of TRC. “We’re seeing supply expand and certain markets begin to reach saturation.”
The U.S. Energy Information Administration estimates renewable diesel production averaged 220,000 barrels per day in 2024, up from 170,000 in 2023, with an additional 5% increase expected this year.
Despite these gains, access remains uneven. Availability is mostly concentrated in states with low carbon fuel standards.
Matt McLelland, vice president of sustainability and innovation at Covenant Logistics, noted:
“Outside California, Oregon, and Washington, it’s still difficult to find.”
Renewable diesel made up only 5% of Covenant’s fuel purchases in 2024.
Production tends to be clustered along the coasts and the Gulf region, where feedstock supply is strongest. Changes to federal fuel tax credits have also shifted market dynamics, making renewable diesel affordable primarily in states offering incentives.
Roeth of NACFE summarized the challenge:
“Renewable diesel is the easy button if fleets can get it. But transporting it long distances adds $1–$2 per gallon, and many customers won’t absorb that cost.”
Making the Business Case for Renewable Fuels
Economic conditions are influencing how aggressively fleets adopt bio-based diesel.
Volvo Trucks North America began fueling newly assembled vehicles with HVO in 2024 but paused after a few months due to market pressures.
“We temporarily suspended HVO factory fills as a cost-management measure,” said VTNA public relations manager Allison Daigle, while emphasizing that the company still supports policies that expand supply and lower costs.
Penske Truck Leasing is conducting a year long controlled trial to measure renewable diesel performance against traditional diesel. Two identical trucks same make, model, mileage, and route, are being compared, with complete separation of fuel sources to ensure accuracy.
“We’re getting as close to a scientific comparison as possible,” Tippin said. Results are expected in late 2026.
High Biodiesel Blends Gain Ground for Scope 3 Emissions Reduction
Beyond renewable diesel, some fleets are adopting high biodiesel blends made from vegetable oils, animal fats, and used cooking grease.
Covenant Logistics recently switched select trucks to high biodiesel blends to help a customer cut Scope 3 supply chain emissions.
ADM Trucking, a subsidiary of Archer Daniels Midland, now operates 10% of its fleet on B99 biodiesel, citing marginal cost differences and operational advantages.
“The performance differences are minimal with more positives than negatives,” said ADM’s fleet and sustainability manager Brandon Rick.
Both Covenant and ADM are working with Optimus Technologies to expand biodiesel use. Optimus’ Vector system allows trucks to run on B100 (100% biodiesel) across a wide range of climates.
Warranty concerns remain common, but Optimus CEO Colin Huwyler clarified:
“High-blend biodiesel does not void OEM warranties.”
International Trucks reinforced that message, stating that vehicles equipped with the Optimus system will maintain full warranty coverage.
Cold weather issues a long time biodiesel concern have largely been addressed through heated fuel systems and advanced software. Optimus systems prevent gelling or filter clogging even at –35°C, ensuring reliable winter performance.
Rick recommends fleets test biodiesel with a small pilot group first:
“Focus on progress, not perfection. Start with a couple of units, learn, and scale from there.”
Momentum Builds As Fleets Collaborate and Share Results
Industry adoption continues to grow as more fleets share data and success stories. Pepsi, for example, operates 800+ trucks on high biodiesel blends an example that helped other carriers gain confidence.
ADM’s Rick emphasized the role of partnership:
“Coalitions of B100 users can combine demand, making it worthwhile for fuel providers to add B100 pumps.”
Tippin added that long term adoption will require supportive policy and financial incentives.
“Biomass feedstock costs more than crude, refining costs more, and logistics add another layer. Incentives at the state level are critical to bringing renewable diesel to more regions.”
