The United States is expected to grow its biofuel production by 7% in 2023, reaching a total annual capacity of 24 billion gallons by the start of 2024. According to the Energy Information Administration (EIA), this growth was primarily driven by a dramatic 44% increase in the production of renewable diesel and other biofuels, including renewable aviation fuel and renewable heating oil. As of January 2024, US renewable diesel and other similar biofuels production capacity was 4.3 billion gallons per year, up 1.3 billion from the previous year. EIA attributes this increase to both federal and state tax incentives and regulatory policies that have spurred expansion of existing facilities and construction of new ones.

Ethanol, made primarily from corn starch and blended with gasoline, remains the leading biofuel produced in the US, with capacity growing 2 percent over the same period to 18.0 billion gallons annually. Biodiesel production remained flat at 2.1 billion gallons annually.

Finally, the majority of biofuel production facilities are concentrated in Iowa, which alone provides over 5.4 billion gallons per year. This is joined by other key areas such as the Midwest, Gulf Coast and West Coast, which together account for 90% of the country's total production capacity.