Key facts
- US Gulf Coast renewable diesel producers are redirecting sales to Texas.
- Demand for renewable diesel in California has slowed.
- US renewable diesel production reached a record 6.86 million barrels in May.
- Texas's diesel excise tax abatement makes renewable diesel competitive.
- Renewable diesel is being offered in Houston at a discount to conventional ULSD.
Renewable diesel producers along the US Gulf coast are increasingly selling into the Texas ultra-low sulphur diesel (ULSD) market as bulk demand slows across California, the largest R99 market in the country. This shift coincides with record-high US output of the fuel.