Biodiesel is set to make big waves in 2026. Minnesota soybean farmers, soy processors and fuel industry representatives had the opportunity to learn about the latest advancements, market opportunities and policy updates in the biodiesel, renewable diesel and sustainable aviation fuel industries as part of the Minnesota Soybean Research & Promotion Council’s annual visit to the 2026 Clean Fuels Conference, which was held Jan. 19-22 in Orlando. This year’s conference focused heavily on federal and state policies that are driving the industry, new market opportunities such as marine and aviation and quality and supply of biofuels. 

“We’ve had some real excitement around some additional markets for biofuels, particularly the marine market which has some huge upsides, but like anything some challenges as well,” said Mike Youngerberg, MSR&PC sr. director of product development & commercialization. “It’s also been a really great conference for looking for information on the inside scoop on policy and what’s happening there. All around very informative.” 

Shifting tides 

While 2025 was a far cry from the record-setting year that was 2024 for the biodiesel, renewable diesel and sustainable aviation fuel industries, the tides are expected to turn in 2026, pending long-awaited finalization of the EPA’s renewable volume obligations (RVO) and final guidance of the 45Z tax credit policy. The RVO proposed by the EPA would set a minimum target of 5.6 billion gallons of biobased diesel in 2026 and 5.86 billion in 2027, which would surpass the record production of just over 5 billion gallons produced in 2024 when the RVO was set at just over 3 billion gallons.  

Clean Fuels Alliance America hosted a standing-room only breakout session during the conference  providing a federal policy outlook with experts from Washington D.C. and Clean Fuels staff to discuss what lies ahead for clean fuels policy. While the RVO proposals look promising, those in the clean fuels industry are demanding certainty to give them the momentum needed for increased production. 

“The long runway is what this industry needs. We need certainty, and we need it soon,” said Chris Hill, Brewster farmer who represents MSR&PC on the Clean Fuels governing board. “So, if we can get the 45Z tax credit guidance and the RVO numbers finalized, we’re going to move along pretty nicely. Policy is what drives this industry.” 

On the state policy side, there are also promising developments that could mean a boost for the biofuels industry. New Mexico is in the process of finalizing a Clean Transportation Fuel Standard, which could lead to an annual increase of 720 million gallons of biodiesel and renewable diesel, and California, the leading consumer of biofuels in the nation, has made adjustments to their CARB act, which would allow for crop-based biodiesel blends of up to B20 (20% biodiesel).  

Treading new waters 

A new market opportunity for biodiesel and renewable diesel is emerging, as the International Marine Organization (IMO) looks to decarbonize and lower CO2 emissions significantly by the year 2030. While the marine fuels industry consumes nearly 100 billion gallons of fuel per year globally, the most likely impact for soy-based biodiesel will come domestically, where annual consumption is around 7 billion gallons, including about 150-160 million gallons in the Great Lakes. Biodiesel production currently sits around 400 million gallons in the Great Lakes region with most of the ships already capable of running biodiesel, making it an excellent, drop-in candidate for reducing emissions, helping engines last longer and supporting farmers. 

“There’s a great opportunity for the brown water marine industry, specifically the Great Lakes and Mississippi waterway,” Youngerberg said, “mainly because many of those ships are very old – we even heard of one in operation that was 100 years old – and those are types of vessels that the biodiesel market can make a huge impact in reducing their greenhouse gases and improving sustainability efforts in a fairly simple way.” 

Globally, the marine shipping industry accounts for about 3% of all global emissions. About 2% of all U.S. soybean exports are shipped via the Great Lakes-St. Lawrence Seaway System.  

See for Yourself 

MSR&PC’s See for Yourself visit to the Clean Fuels Conference was coordinated in conjunction with MEG Corp, who works alongside soybean checkoff programs in Minnesota, Wisconsin, South Dakota and Nebraska to provide technical, educational and promotional support to advance use of renewable fuels. In addition to farmer leaders, MSR&PC worked with MEG Corp to invite a handful of folks who work in the biodiesel industry, including mechanics and fuel providers, to give them a better understanding of trends in the marketplace and better knowledge of the fuel itself.  

“The hope is that they get to see biodiesel from a broader perspective, give them a chance to be in on the policy conversations, learn about quality, mingle with the farmers driving the industry and kind of see how it all comes together,” said Lisa Pedderson, president of MEG Corp. “It’s really important in a state like Minnesota that has a biodiesel mandate that they can see biodiesel from a different perspective. Here, they can see the advancements that are being made and learn about OEMs like John Deere that are making engines to run on higher blends, or how fleets are asking for it and have a real desire for it.” 

One of those from the fuel industry that was in attendance was Jake Swiers, Energy Sales Manager for Lake Community Co-op in Perham. Swiers says the conference allowed him the opportunity to get a better grasp on the biodiesel industry and also to network with other fuel providers in the state. 

“I learned how interconnected everything is and how the industry is using biodiesel to lower their carbon footprint,” Swiers said. “The networking was probably my favorite part and getting to learn from others in my industry and how they handle biofuels. Thanks to MEG Corp for the opportunity and when we get back, we’ll keep the conversation going.” 

For the farmer leaders in attendance, the See for Yourself mission was an opportunity to see how one of their checkoff investments continues paying off.  

 “I like seeing how our product is being used in more diverse ways and expanding the market that way,” said Starbuck farmer Paul Freeman, MSR&PC District 4 director. “The biofuels market is one that’s ready to take off and there are a lot of opportunities.” 

Another trending topic at the Clean Fuels Conference was biodiesel quality and how it continues to meet the industry’s strict quality standards and specifications, which provides trust for OEM’s and encourages  expanded use of the product. 

“What amazes me is we’re not talking about technical issues much anymore,” Freeman said. “We have a great product that people trust.”  

The trust in biodiesel is now prevalent with John Deere, which recently approved the use of biodiesel blends of up to B30 in all of their tier 4 engines and showcased products at the conference.  

While the soybean industry is never smooth sailing, the biodiesel industry is showing that it can be a much-needed life vest to help keep farmers afloat during stormy seas. For soybean farmers, checkoff investments in biodiesel continue to increase demand by 13%  

“We can’t afford to not be supporting the biodiesel industry,” Freeman said. “It’s lowering emissions, it’s supporting jobs right here in Minnesota and, last but not least, it’s supporting farmers.” 

Also attending the Clean Fuels Conference from Minnesota were MSR&PC District 8 Director Rochelle Krusemark and Lawrence Sukalski, who represents the United Soybean Board.