This post is one in a series of feature stories on trends that shape advanced energy markets in the U.S. and around the world. It is drawn from Advanced Energy Now 2017 Market Report, which was prepared for AEE by Navigant Research.
The biofuels market in the United States is primarily driven by the Renewable Fuel Standard (RFS). While Congress set the original targets in 2007, the U.S. Environmental Protection Agency (EPA) sets the final mandate for each calendar year to adjust for market conditions. In 2016, the EPA expanded the biofuels market by nearly 1.2 billion gallons for 2016, and another 1.17 billion gallons for 2017 across the four major renewable fuel categories: advanced biofuels; biomass-based diesel; cellulosic biofuel, made from cellulose or lignin; and “renewable fuel,” primarily corn-based ethanol, the largest category.