The Rise of Renewable Diesel: What You Need to Know for OTR Trucking

Reviewed by
Vedant Khamesra
Published date:
August 8, 2024

Renewable diesel is quickly becoming a game-changer in over-the-road (OTR) trucking. As fleet managers and truck drivers look for ways to reduce emissions and improve performance, renewable diesel fuel offers a promising alternative to conventional petroleum diesel. 

In this blog, we'll explore renewable diesel, its benefits, environmental impact, and how it compares to traditional fuels. We'll also provide practical guidance for fleet integration, cost considerations, and future trends in renewable diesel technology.

What is Renewable Diesel Fuel?

Renewable diesel, also known as green diesel or hydrotreated vegetable oil (HVO), is a type of bio-based diesel fuel.1 Unlike traditional biodiesel, which is produced through transesterification, renewable diesel is created by hydrotreating renewable feedstocks like vegetable oils, animal fats, and used cooking oils. This process produces a fuel that is chemically identical to petroleum diesel, making it compatible with existing diesel engines and infrastructure.

Benefits of Renewable Diesel for OTR Trucking

Using renewable diesel in OTR trucking brings numerous advantages. Here are some of the benefits that you can get from using renewable diesel:

  • Improved Emissions: Renewable diesel significantly reduces greenhouse gas (GHG) emissions compared to conventional diesel. It can cut GHG emissions by up to 80%, helping fleets meet stringent low-carbon fuel standards.2
  • Enhanced Performance: Renewable diesel offers better combustion properties, resulting in cleaner burning and reduced engine deposits. This leads to improved engine performance and longevity.
  • Sustainability: Produced from renewable sources, renewable diesel reduces dependence on fossil fuels, contributing to energy security and environmental sustainability.

Environmental Impact of Renewable Diesel

Renewable diesel plays a crucial role in reducing the transportation sector's carbon footprint.3 By using renewable feedstocks like vegetable oils and animal fats, renewable diesel production helps divert waste from landfills and reduce reliance on crude oil. Additionally, renewable diesel's lower carbon intensity means fewer carbon emissions per gallon compared to fossil diesel.

Renewable Diesel vs. Conventional Diesel

You might be asking, “Is renewable diesel the same as diesel?”

When considering fuel options for OTR trucking, it's essential to compare renewable diesel with conventional diesel. These fuels differ not only in their composition but also in their performance, efficiency, and environmental impact.

Performance and Efficiency

Fuel performance and efficiency are critical factors for OTR trucking operations. The choice between renewable diesel and conventional diesel can significantly impact a fleet’s overall efficiency, maintenance needs, and operational reliability. 

  • Renewable Diesel: Renewable diesel offers similar or even superior performance compared to conventional diesel fuel. One of its standout features is its better cold flow properties, which prevent fuel gelling in low temperatures.
  • Conventional Diesel: While conventional petroleum diesel is widely used and readily available, it lacks the enhanced performance benefits of renewable diesel. Conventional diesel can lead to higher maintenance costs due to the formation of engine deposits over time.

Environmental Impact

The environmental implications of using different types of diesel fuel are significant, influencing not only the carbon footprint but also the overall sustainability of fleet operations.

  • Renewable Diesel: Renewable diesel is significantly cleaner than conventional diesel, making it a more environmentally friendly option for OTR trucking. The production and use of renewable diesel result in substantially lower greenhouse gas (GHG) emissions.
  • Conventional Diesel: Conventional diesel is associated with higher carbon emissions and environmental degradation. The extraction and refining of crude oil for diesel fuel release significant amounts of carbon dioxide and other pollutants into the atmosphere.

Implementing Renewable Diesel in Your Fleet

Integrating renewable diesel into your fleet operations requires careful planning and consideration:

Evaluate Compatibility

Before making the switch, evaluate whether your existing diesel engines are compatible with renewable diesel. Most modern engines can use renewable diesel without any modifications, but it's essential to consult with engine manufacturers and review technical specifications to confirm compatibility. This will help you choose the right diesel fuel type for your fleet.

Secure Supply

Establishing a reliable supply chain for renewable diesel is crucial. Partner with reputable suppliers, such as Chevron Renewable Energy Group, to ensure consistent availability and quality of the fuel. It's essential to negotiate long-term contracts to lock in stable prices and supply quantities. You might also want to search if your diesel fuel has a shelf life.

Transition Plan

Develop a phased transition plan to minimize disruptions to your operations. Start by blending renewable diesel with conventional diesel. Gradually increase the proportion of renewable diesel as you gain confidence in its performance and availability. This phased approach helps in managing risk and allows time for addressing any issues that arise.

Training and Support

Provide ongoing training for your team to understand the benefits and best practices for using renewable diesel. This training should cover the technical aspects of renewable diesel, its impact on engine performance, and any new maintenance procedures that might be required.

You should also develop support resources, such as manuals, FAQs, and troubleshooting guides, to assist your team in managing the transition. Encourage open communication and feedback to improve the integration process continuously. For example, outline the best practices for handling water contamination in OTR diesel fuel.

Cost Considerations for Renewable Diesel

While renewable diesel can be more expensive than conventional diesel, several factors can offset the higher initial costs:

  • Fuel Efficiency: Improved fuel efficiency and engine performance can lead to long-term savings.
  • Incentives and Subsidies: Take advantage of government incentives and subsidies for using renewable fuels, such as the Renewable Fuel Standard (RFS) and low carbon fuel standard programs.
  • Environmental Benefits: Reduced environmental impact can lead to savings on carbon credits and compliance with emissions regulations.

Future Trends in Renewable Diesel

The renewable diesel market is evolving rapidly, with several trends indicating a bright future:

  • Increased Production Capacity: Renewable diesel production capacity is expanding, with new renewable diesel plants coming online and existing facilities increasing output.
  • Technological Innovations: Advances in renewable feedstocks and production processes are improving efficiency and reducing costs.
  • Sustainable Aviation Fuel: The development of sustainable aviation fuel (SAF) from renewable diesel feedstocks is opening new markets and opportunities for growth.

Integrating Fuel Cards with Renewable Diesel Benefits

Using fleet fuel cards like those offered by AtoB can streamline the procurement of renewable diesel and maximize savings for fleet managers:

Simplified Purchasing

Fuel cards simplify the purchasing process by allowing drivers to buy renewable diesel at participating fuel stations without the need for cash or personal credit cards. This reduces the administrative burden on both drivers and fleet managers, as all transactions are processed through a centralized system.

Tracking and Reporting

Fuel cards' advanced tracking features provide fleet managers with real-time data on fuel purchases. This includes information on the quantity of renewable diesel purchased, the location of the transaction, and the cost. Real-time monitoring helps in making informed decisions and quickly addressing any discrepancies.

In addition, fuel cards generate detailed reports that break down fuel consumption by vehicle, driver, and route. These reports can help identify patterns and areas for improvement in efficiency.

Discounts and Rebates

Many fuel card programs like those from AtoB offer discounts on renewable diesel purchases. These discounts can be negotiated as part of a bulk purchasing agreement or provided through partnerships between fuel card providers and renewable diesel suppliers. Over time, having a fleet fuel card with discounts can lead to significant cost savings for fleets.

Enhanced Security

Fuel cards come with built-in security features to prevent unauthorized use. These features may include PIN verification, driver ID numbers, and transaction limits. Enhanced security measures help protect the fleet’s financial resources and reduce the risk of fraud.

Renewable diesel is poised to revolutionize OTR trucking by offering a cleaner, more sustainable alternative to conventional diesel. By understanding renewable diesel, its benefits, and how to implement it in your fleet, you can reduce emissions, improve performance, and contribute to a greener future. 

With the support of fuel card providers like AtoB, integrating renewable diesel into your operations has never been easier. Embrace the rise of renewable diesel and drive your fleet towards a more sustainable future.

Sources:

Veolia. Biodiesel vs. Renewable Diesel: Are They the Same?. https://blog.veolianorthamerica.com/biodiesel-vs.-renewable-diesel-are-they-the-same

CCJ Digital. Renewable diesel a more effective tool to decarbonize trucking than BEV, report says. https://www.ccjdigital.com/alternative-power/article/15669218/report-renewable-diesel-cleans-up-trucking-better-than-bev

Booster USA. Renewable Diesel: A Convenient Way To Control Pollution. https://boosterusa.com/blog/renewable-diesel-a-convenient-way-to-control-pollution/

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Reviewed by

Vedant Khamesra

Vedant Khamesra is the driving force behind product management at AtoB. Specializing in strategic partnerships, SMB solutions, and new product development, Vedant seamlessly navigates P&L responsibilities while leading product execution and strategy. He is fueled by AtoB's mission to empower truckers and fleets with intelligent financial tools and services, making their lives easier and more rewarding.

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