More biodiesel and renewable diesel plants may close in 2024, according to industry analysts. The cause? Production capacity exceeds demand. The average Midwestern biodiesel plant lost 20 cents per gallon from 2021 to 2024.

Chevron announced the shuttering of its biodiesel plants in both Iowa and Wisconsin with a combined volume of 50 million gallons per year due to “poor market conditions”. The company is retaining seven other biodiesel plants across the country. Even with these reductions, USDA reports that roughly half of U.S. soybean oil will be used in biofuels this year, compared to 38% in 2022.

Read more on soybean oil and biodiesel here.