Biodiesel versus Renewable Diesel: Understanding the Key Differences and Benefits

Biodiesel versus Renewable Diesel: Understanding the Key Differences and Benefits

Greentech Blog 13/03/2025

The shift toward sustainable fuels has sparked growing interest in alternatives to conventional diesel. Among these alternatives, biodiesel and renewable diesel stand out as biomass-based fuels with significant environmental and economic advantages. Although they originate from similar feedstocks, their production processes, chemical compositions, and practical applications differ significantly. Understanding these differences is crucial for making informed decisions regarding their use in transportation, industry, and policy development. As global efforts to reduce carbon emissions intensify, these fuels are playing a vital role in the transition to cleaner energy sources.

What Is Biodiesel?

Biodiesel, often referred to as Fatty Acid Methyl Ester (FAME) oil, is produced through a chemical reaction known as transesterification. This process involves reacting organic fats and oils with alcohols (typically methanol) in the presence of a catalyst. The result is clean fuel and glycerol as a byproduct. FAME has been widely adopted as a sustainable alternative due to its compatibility with existing diesel engines when blended properly and its potential to reduce greenhouse gas emissions.

How Fatty Acid Methyl Ester Is Produced

  1. Step 1- Feedstock Pre-Treatment: Vegetable oils or animal fats undergo purification to remove impurities and improve quality.

  2. Step 2- Transesterification: The purified feedstock reacts with methanol and a base catalyst (e.g., sodium hydroxide) to produce FAME and glycerol.

  3. Step 3- Separation & Purification: The mixture settles, separating the glycerol from bio-based diesel. The clean fuel is washed multiple times to remove excess methanol, soap, and other contaminants that may affect performance.

  4. Step 4- Drying & Storage: The purified fuel undergoes a drying process before being stored for use, ensuring optimal quality and longevity.

For every 100 pounds of feedstock, about 100 pounds of biodiesel and 10 pounds of glycerol are produced. This is roughly equivalent to 7,5 pounds of feedstock per gallon of clean fuel. 

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The production process is relatively straightforward and can utilize a range of feedstocks, including used cooking oil, soybean oil, and animal fats.

Biodiesel: Characteristics and Potential Issues

Biodiesel contains oxygen, which inherently reduces its energy content by approximately 7% compared to petroleum diesel. Another challenge with this eco-friendly diesel is its susceptibility to oxidation, leading to potential degradation when stored for extended periods. 

Additionally, its higher cloud point, particularly in the case of soybean-based clean fuel, which freezes at around 34°F, makes it less practical for use in extremely cold climates compared to petroleum diesel, which has a lower freezing point of 16°F. Furthermore, bio-based diesel has a higher risk of microbial contamination in storage tanks, necessitating regular maintenance and the use of biocide additives for long-term storage stability.

Due to these limitations, bio-based diesel is blended with petroleum diesel to improve performance. Common blends include B5 (5% organic fuel) and B20 (20% organic fuel), while B100 (pure organic fuel) is rarely used in conventional diesel engines without modifications. FAME’s ability to reduce tailpipe emissions and reliance on fossil fuels makes it an attractive option for fleet operators and policymakers aiming to promote sustainable transportation.

What Is Renewable Diesel?

Renewable diesel, also known as Hydrotreated Vegetable Oil (HVO) or green diesel, is produced through a process called hydrotreating. 

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What Is Renewable Diesel?

This process is similar to refining crude oil and involves treating feedstock with hydrogen under high pressure and temperature. 

The result is a fuel that is chemically nearly identical to petroleum diesel but derived from renewable sources, offering a seamless transition for users looking to adopt sustainable alternatives.

How Hydrotreated Vegetable Oil Is Made

Step 1- Feedstock Pre-Treatment: Impurities are removed from the feedstock (vegetable oils, animal fats, or waste oils) to ensure high-quality final fuel.

Step 2- Hydrotreating: The feedstock is mixed with hydrogen and exposed to a catalyst under high pressure and temperature. This process breaks down molecules and removes oxygen, producing hydrocarbons with properties nearly identical to petroleum diesel.

Step 3- Separation & Refining: The mixture undergoes separation, where gases and byproducts (e.g., propane, naphtha) are removed, ensuring a cleaner-burning final product.

Step 4- Distillation: The final product is distilled into green diesel, jet fuel, and other co-products, making it a versatile alternative fuel source.

Approximately 8 pounds of feedstock are required to produce 1 gallon of clean diesel. Unlike bio-based diesel, green diesel does not require blending and can be used as a direct replacement for conventional diesel in any diesel engine.

Renewable Diesel Properties and Advantages

Renewable diesel is a hydrocarbon-based fuel that is chemically identical to petroleum diesel, ensuring seamless compatibility and optimal engine performance. One of its key advantages is the absence of oxygen content, resulting in a higher energy density compared to bio-based diesel, which in turn leads to improved fuel economy. Additionally, green diesel excels in cold-weather performance, boasting a low cloud point, making it an ideal choice for use in colder climates where traditional biofuel may struggle. 

As a drop-in fuel, Hydrotreated Vegetable Oil requires no blending with petroleum diesel and is fully compatible with existing diesel engines and infrastructure, eliminating the need for modifications. Moreover, it has longer storage stability and a lower risk of microbial contamination, making it a more reliable fuel for long-term storage, ensuring fewer maintenance issues over time.

Can renewable diesel be considered the same as biodiesel?

No, Hydrotreated Vegetable Oil is not the same as Fatty Acid Methyl Ester. While both are derived from the same feedstocks (vegetable oils, animal fats, and waste oils), they differ significantly in their production processes and chemical properties. Hydrotreated Vegetable Oil is a hydrocarbon fuel that can fully replace petroleum diesel, whereas Fatty Acid Methyl Ester is an oxygenated fuel that must be blended with petroleum diesel for optimal performance.

Is Renewable Diesel a Biofuel?

Yes, HVO is classified as a biofuel because it is produced from renewable biological sources like vegetable oils and animal fats. It meets the requirements of the Renewable Fuel Standard (RFS), which mandates the blending of biofuels into transportation fuels.

Major Differences Between Biodiesel and Renewable Diesel

While both are derived from renewable sources, they differ significantly in their production processes, chemical properties, and performance. Below is a detailed comparison to help you understand the key distinctions between FAME and HVO.

FAME vs HVO A Side-by-Side Comparison

Feature

Biodiesel (FAME)

Renewable Diesel (HVO)

Production Process

Transesterification

Hydrotreating

Chemical Composition

Fatty acid methyl esters

Hydrocarbon fuel

Blending Requirement

Requires blending (e.g., B5, B20)

No blending needed (drop-in fuel)

Oxygen Content

Contains oxygen (lower energy)

No oxygen (higher energy)

Energy Content

7% less energy by volume than diesel

4% less energy by volume than diesel

Cold Weather Performance

High cloud point (~34°F for soybean biofuel)

Low cloud point (similar to petroleum diesel)

Storage Stability

Vulnerable to oxidation and the growth of microorganisms.

Long-lasting and storage-friendly fuel

Compatibility

Requires fuel system modifications at high blends

Works seamlessly with diesel engines without modifications.

Which Fuel Is Right for You?

Choosing between biodiesel and renewable diesel depends on availability, cost, intended application, and climate conditions.

Cost Considerations

  • Biodiesel is generally cheaper due to lower production costs and widespread availability.
  • Renewable diesel has higher production costs but offers superior performance and longer lifespan. HVO is becoming more widely available, and prices may decrease as production scales up.

Environmental Impact

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Environmental Impact

Both biodiesel and renewable diesel offer environmental benefits compared to petroleum diesel, but they differ in their impact

  • Biodiesel: Reduces tailpipe emissions of particulate matter, carbon monoxide, and hydrocarbons. However, its higher cloud point and storage challenges can limit its usability in certain conditions.
  • Renewable Diesel: Reduces hydrocarbon and nitrogen oxide emissions, making it a cleaner-burning fuel. Its drop-in nature and superior cold weather performance make it a more versatile option for reducing emissions in urban fleets and cold climates.

Environmental Impact

Both fuels help reduce greenhouse gas emissions, but their impacts differ:

  • Using biodiesel helps cut down on particulate matter, carbon monoxide, and hydrocarbon emissions
  • Renewable diesel reduces hydrocarbon and nitrogen oxide emissions while offering higher efficiency and lower carbon intensity.

Best Uses and Recommendations for Different Applications

The choice between biodiesel and renewable diesel depends on your specific needs:

  • Biodiesel: Ideal for users seeking a cost-effective, environmentally friendly fuel that can be blended with petroleum diesel.
  • Renewable Diesel: Best for users requiring a drop-in fuel with superior cold weather performance and storage stability, particularly in urban fleets or cold climates.

Conclusion

As the transition to sustainable energy accelerates, both biodiesel and renewable diesel play essential roles. FAME remains a cost-effective, widely available option, while HVO offers a seamless drop-in replacement with superior performance and storage stability. As the demand for sustainable fuels grows, understanding the differences between these two options will help you make informed decisions for your needs., ultimately reducing greenhouse gas emissions and promoting a cleaner, more sustainable future.

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