Why Illinois Farmers Should Be Proud

At Clean Fuels Alliance America, our economic impact study is updated every two years. We do that for one simple reason: farmers, policymakers, and industry leaders deserve up-to-date facts about what biodiesel and renewable diesel are delivering for our country. The most recent study, conducted by GlobalData, evaluates the economic impact of U.S. biomass-based diesel— meaning biodiesel and renewable diesel — across the entire value chain. That includes everything from raw material production and oilseed processing to fuel production, distribution and the ripple effect throughout rural communities.

For Illinois soybean farmers, the findings should be both encouraging and affirming. The numbers tell a story many of you already see firsthand: Clean fuels are no longer a niche market. They are essential to the U.S. economy, to farm income and to energy security.

BIODIESEL AND RENEWABLE DIESEL: BETTER TOGETHER

I’m often asked about the difference between biodiesel and renewable diesel — and whether one is better than the other. The truth is, they’re both superior diesel replacements made primarily from the same feedstocks, including soybean oil.

Biodiesel was the first to enter the marketplace with decades of performance history. Renewable diesel has expanded rapidly in the past 10 years. The primary difference lies in how they are produced. Renewable diesel is made in a manner similar to petroleum diesel through a high-heat, high-pressure process called hydrotreating, allowing it to serve as a drop-in replacement. Biodiesel is made using transesterification, a process that separates glycerol from fat or plant oil and replaces it with methanol to produce a finished fuel that is typically blended with petroleum diesel.

Both fuels meet ASTM specifications and are high-quality, high-performing fuels. Biodiesel improves lubricity and engine longevity. Renewable diesel mirrors petroleum diesel performance. When paired, they can deliver even greater emissions reductions and performance benefits.

Today, biodiesel and renewable diesel together represent about 7% of the U.S. distillate pool, according to the U.S. Energy Information Administration. This is no longer a niche fuel category. Clean fuels are an essential part of America’s diesel supply.

REAL GROWTH, REAL RESULTS

The data confirms that biodiesel and renewable diesel are delivering substantial economic benefits across agriculture and rural America.

Since our previous study, the industry’s economic impact has grown 83% — increasing from $23.2 billion to $42.4billion nationwide. That growth reflects expansion in soybean crush capacity, new and expanded renewable diesel facilities and sustained demand for low-carbon fuels.

Today, biodiesel and renewable diesel production support approximately 107,000 U.S. jobs. Wages have increased, economic activity has expanded, and investment continues to flow into the clean fuels sector.

ILLINOIS BY THE NUMBERS

Because Illinois is the No. 1 soybean-producing state, we broke out state-specific data. The results are significant. In Illinois alone, biodiesel and renewable diesel production contribute:

• $3.2 billion in total economic impact
• 8,124 full-time equivalent jobs
• $411 million in wages

That is a substantial contribution to the state’s economy — and it starts with the soybeans grown in Illinois fields.

Farmers are the backbone of this country. The crops you grow help keep our economy moving. This study reinforces that reality with hard data.

WHAT THIS MEANS AT THE FARM GATE

When we look at the national breakdown by sector, fuel production supports roughly 41,500 jobs. Oilseed production accounts for about 30,600 jobs. Oilseed processing supports about 8,600 jobs, and the rendering industry adds another 12,700 jobs. For soybean farmers, that translates to tangible value.

The clean fuels industry represents about 10% of the value of every U.S. soybean bushel. As renewable fuels utilization grows, that share of value has the potential to grow as well.

One of the most important things to understand is that biodiesel was originally developed to address surplus soybean oil. In the early 1990s, we had excess oil in the market. The question was: How can we turn that surplus into value? The answer was biodiesel.

When we crush more soybeans domestically, we keep both the meal and the oil here at home. The oil is used in food production and as fuel. The meal supports livestock production or exports. That creates opportunity, stability and return on investment for soybean farmers.

MARKET STABILITY AND BASIS SUPPORT

Growing demand for biodieseland renewable diesel strengthens local markets and diversifies marketing channels. The more fuel we produce here on American soil, the stronger the boost to our domestic economy — and back to the farm gate.

A robust clean fuels market creates stability and reliability. It reduces reliance on a single-demand stream and helps support basis by increasing local crush demand.

We’ve witnessed a major investment in crush expansion across the country, including in the Midwest. That infrastructure represents confidence in long-term soybean oil demand. For farmers, diversified demand equals greater resilience.

THE ROLE OF POLICY

The Renewable Fuel Standard (RFS) establishes a nationwide baseline for biodiesel and renewable diesel demand. State-level clean fuel programs build on that foundation by rewarding fuels with lower carbon intensity. Together, these policies translate environmental performance into market value.

Our study analyzed the expected future capacity of 7.4 billion gallons based on announced investments in new and expanded facilities. If the U.S. biomass-based diesel industry reaches that capacity, it could support approximately 145,000 jobs and generate $60.25 billion in U.S. economic activity.

Those projections show policymakers that the industry is prepared and ready to deliver. They demonstrate that investments in crush plants, refining capacity and infrastructure are not speculative — they are real and operational. For Illinois agriculture, that signals long-term opportunity and market stability.

THE KEY TAKEAWAYS

If there’s one thing I hope Illinois soybean farmers take away from this study, it’s this: Biodiesel and renewable diesel are essential to farm and food security. You should be proud of what you’ve built. We are proud to partner with Illinois, qualified state soybean boards and the United Soybean Board. It was your vision that helped get clean fuels off the ground, and it’s your continued commitment that keeps these markets growing.

CLEAN FUELS ARE ESSENTIAL.

Americans depend on diesel, and clean diesel is an increasingly important part of that pool. The economic impact study confirms your soybeans are doing more than feeding and fueling the world. They are supporting jobs, strengthening rural communities, enhancing energy security and delivering measurable economic returns. That’s something to be proud of — and something worth continuing to grow.