The Geography of America’s Biodiesel

Biodiesel is a renewable fuel made from vegetable oils, animal fats, or recycled cooking grease. Instead of being pumped from underground like petroleum diesel, it’s produced by refining these organic oils into a liquid fuel that can be blended with, or sometimes replace, regular diesel in trucks, buses, and farm equipment. Because it comes from renewable feedstocks and burns cleaner, biodiesel can help cut greenhouse-gas emissions, reduce dependence on imported oil, and support local farm economies.

According to the EIA, as of January 2025 the United States has 48 active biodiesel plants capable of producing roughly 1.99 billion gallons of biodiesel each year, about 130,000 barrels per day. About three-quarters of all U.S. biodiesel production is centered in the Midwest.

Why the Midwest Leads

The heavy concentration in the Midwest reflects the region’s agricultural advantage. States like Iowa, Illinois, and Missouri grow vast amounts of soybeans (the main feedstock for U.S. biodiesel) along with corn oil, animal fats, and other by-products from food processing. Being close to these feedstocks lowers transportation costs and makes production more efficient.