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RVO volumes driving biofuels turnaround

The CEO of Clean Fuels Alliance America says a year has made a big difference in the bio-based diesel industry.

Donnell Rehagen says the EPA’s move this spring to increase renewable volume obligations (RVOs) for biodiesel and renewable diesel has rejuvenated an industry that saw numerous plants idle at the end of 2025.

“It was a massive increase in volume for the biomass-based diesel industry, exactly what we needed.”  He says, “The volume they set is much closer to where our production capacities are.”

He tells Brownfield the increased demand for biofuels has also driven up demand for feedstocks, primarily soybeans.

“It also affects the price of soybeans at the farm gate.”  He says, “We’re seeing the soybean oil value is taking precedent over even the meal value.”

Rehagen says record high diesel prices are a reminder that expanding homegrown biofuels benefits the country in several ways.

“Why is our fuel highly priced? It’s because there’s just not enough of it being produced.”  He says, “We in the clean fuels industry are contributing 10% of that pool, so where would things be today if we were not producing?”

Rehagen says the certainty provided by the RVO policy is a main factor in already announced new soy crush facilities in states like Wisconsin, Indiana, Missouri, Nebraska, North Dakota, and others, and he expects more announcements of infrastructure projects in the coming months as the levels are set to increase again in 2027.

AUDIO: Donnell Rehagen – Clean Fuels Alliance America