Benefits and Solutions for Fleets to Implement Biofuels Today

To better understand the lower carbon conversation within the freight and shipping industry, Chevron Renewable Energy Group teamed up with FreightWaves to survey a variety of carriers about their perceptions and use of lower carbon fuels.

Jon Scharingson (JS), Chevron Renewable Energy Group's Executive Director, Strategic Initiatives, talks with Tim Donner, host and producer of WHAT THE TRUCK?!? podcast to discuss the availability of biofuels and how Chevron is helping carriers implement renewable fuels.

Here is a summary of the podcast:

Q: Could you discuss the current availability of liquid lower carbon fuels, such as biodiesel, renewable diesel, or blends? Additionally, what is Chevron Renewable Energy Group doing to help carriers more easily implement these lower carbon fuels?

JS: With the accessibility and use of high-quality alternative fuels expanding, carriers have options. Since 2020, 1,289 biodiesel stations and 602 renewable diesel stations have opened.

For biodiesel in particular, the number of fueling stations has increased by 297% since 2022, according to data from the US Department of Energy.

Biodiesel is broadly available across the United States. In places like Iowa, Minnesota, Illinois, Texas, Pennsylvania and others, it is commonly available at most travel center locations. If fleets have bulk fuel tanks, Chevron can deliver product to their facilities anywhere in the continental US. 

Renewable diesel (RD) is mainly found on the West Coast including California, Oregon and Washington due to state incentives in these markets.  RD is found at both retail and bulk fuel locations throughout the West Coast.

Q: If you could share one key message with carriers related to lower carbon fuel infrastructure for biodiesel and renewable diesel, what would that message be?

JS: Biodiesel and renewable diesel provide solutions for fleets with targets to lower lifecycle carbon intensity that are available today and are cost competitive with traditional diesel. These solutions require little if any infrastructure investment in trucks or tanks. Companies around the globe are actively managing their efforts at reducing their greenhouse gas emissions. Fleets that can help their customers achieve these targets have an opportunity to grow their business with these companies.

Carriers who act now to begin addressing emissions reduction position themselves to benefit from developing relationships with suppliers, while helping to improve operations today. These carriers will be able to point to their long-term carbon reduction efforts as a possible benefit for their supply chain partners.

This value proposition for partners can become stronger over time. Utilizing alternative fuels can help carriers stand out among competitors due to their ability to help partners with their emissions targets. Now, with the growing availability of alternative fuel solutions, carriers can make incremental shifts over time—enabling them to hit required emissions targets without investing in a time-consuming, potentially expensive and frustrating overhaul of their fleets.

I’ll also mention that fleets currently have access to a number of financial incentives from the federal and state governments. When fleets identify and utilize these financial incentives, the potential cost savings of switching to alternative fuel have improved due to lower upfront costs and in some cases, ongoing tax benefits. These resources provide an underutilized opportunity to begin embracing more lower carbon solutions without blowing their budgets. Fleets that embrace alternative fuels early will find that there are more programs available to them than those that wait until adoption is more widespread.