Renewable Diesel vs Biodiesel: What’s the Difference?

Production

• Biodiesel: Made through a process called transesterification, where oils or fats are purified to produce fatty acid methyl esters (FAME), which is biodiesel. The biodiesel is then blended with petroleum diesel, which is necessarily to avoid damaging any plastic or rubber parts. B100 is pure biodiesel in its unblended form. B5 would be blended with at least 95% petroleum diesel.
• Renewable Diesel: Produced through a process called hydrotreating, which uses hydrogen to treat feedstocks such as vegetable oils, animal fats, or waste oils. This process converts the oils into hydrocarbons which are chemically similar to petroleum diesel, allowing HVO to be used as a direct replacement or combined with any amount of petroleum diesel.

Cost

• Biodiesel: Typically cheaper than renewable diesel, but price varies on the blend. Since it’s commonly blended with petroleum diesel, the price can fluctuate based on the price of diesel.
• Renewable diesel: Typically more expensive than biodiesel because of its production costs, as well as its demand due to high-quality performance standards and drop-in capability.

Performance

• Biodiesel: During the production process, oxygen is introduced into the fuel. The oxygen causes cold weather performance issues, which is something that should be taken into consideration when burning or storing the fuel. It is typically blended with petroleum diesel (B20 = 20% biodiesel, 80% petroleum diesel) to avoid engine compatibility issues.
• Renewable diesel: Can be used as a direct replacement in any diesel engine without blending, and has no limitations on cold weather temperatures. Renewable diesel can also be used in pipelines, unlike biodiesel.

Regulatory and Industry Standards

• Biodiesel: Must meet a different standard (ASTM D6751) and is typically blended with petroleum diesel so that it is safe to be used in diesel engines.
• Renewable Diesel: Meets the same specifications as petroleum diesel (ASTM D975) allowing it to be used in existing infrastructure and diesel engines.

Environmental Impact

• Biodiesel: While still a greener alternative to petroleum diesel, especially in terms of biodegradability and reduced air pollutants, FAME diesel releases nitrogen oxcide (NOx) emissions, which is a key contributor to smog and air pollution.
• Renewable Diesel: Tends to have a lower overall environmental impact, primarily due to its greater reductions in greenhouse gas emissions, lower carbon footprint, and better energy efficiency.

Which Is Best for Your Business?
The one you choose depends on the vehicle you drive, weather conditions, and what your ultimate goals are. As discussed above, the cost of biodiesel is cheaper. Therefore if you don’t live in a state that gets freezing temperatures and cost is a factor, biodiesel might be the better option. But ultimately, renewable diesel is a higher end product that has better performance, can be used in existing infrastructure, and produces fewer harmful emissions.