Renewable diesel is emerging as a viable alternative to fossil fuels, providing lower carbon emissions while remaining compatible with existing diesel engines. Unlike biodiesel, renewable diesel undergoes a refining process that makes it chemically similar to petroleum diesel, enabling seamless integration into supply chains. As industries seek to reduce emissions, renewable diesel is attracting increased attention from regulators, investors, and consumers.
Life Cycle Assessment is an essential tool for evaluating the environmental impact of renewable diesel. It provides a data-driven approach to measuring emissions, resource use, and overall sustainability. By analyzing every phase — from feedstock cultivation to fuel combustion — LCA helps producers refine processes and reduce their carbon footprint.
With governments setting stricter sustainability targets, the demand for transparent environmental assessments is increasing. Companies producing renewable diesel need to demonstrate that their products genuinely contribute to emissions reduction. Without comprehensive LCA studies, claims of sustainability can be difficult to verify, leading to uncertainty in the market.
This blog post explores how LCA applies to renewable diesel, its benefits and challenges, and how companies are using it to meet sustainability goals.
Life Cycle Assessment for renewable diesel
Life Cycle Assessment is a methodology for evaluating the environmental impact of a product throughout its entire life cycle. For renewable diesel, this includes feedstock production, transportation, usage, and end-of-life disposal. This method measures a variety of environmental impacts, including carbon emissions, water usage, and energy consumption, allowing for a comprehensive assessment of sustainability.
Conducting an LCA for renewable diesel typically involves four main steps: goal and scope definition, inventory analysis, impact assessment, and interpretation. This process helps identify areas where emissions can be reduced, energy use can be minimized, and overall sustainability can be improved, making it an invaluable tool for producers and stakeholders alike.
LCA benefits for the renewable diesel sector
Life Cycle Assessment provides a detailed understanding of the environmental impact of renewable diesel from production to consumption. By analyzing emissions, resource use, and efficiency, LCA helps producers refine processes and meet sustainability goals. Below are five key advantages demonstrating why LCA is essential for renewable diesel production.
Accurate carbon footprint calculation
LCA quantifies emissions across every stage of renewable diesel production, from feedstock cultivation to fuel combustion. This enables companies to accurately measure, report, and reduce their carbon footprint. Unlike basic emissions estimates, LCA considers indirect factors like land-use changes and transportation impacts. By identifying major emission sources, producers can take targeted actions to cut greenhouse gases and improve sustainability metrics.
Improvement of production processes
Life Cycle Assessment identifies inefficiencies within renewable diesel production, helping companies reduce energy use, emissions, and waste. By analyzing feedstock choices, refining techniques, and supply chain logistics, LCA uncovers opportunities for environmental improvements. For example, switching from first-generation crops to waste-based feedstocks can significantly lower emissions. A data-driven approach helps producers make adjustments that enhance both sustainability and profitability.
Enhanced transparency for stakeholders
Investors, regulators, and consumers increasingly demand verifiable sustainability data. LCA provides a standardized method to assess renewable diesel’s environmental footprint, ensuring transparency. This helps businesses build trust and credibility by presenting objective, science-based insights. Whether responding to corporate sustainability commitments or regulatory inquiries, LCA equips companies with the data needed to back up environmental claims and avoid accusations of greenwashing.
Regulatory compliance
Governments worldwide have strict sustainability requirements for renewable fuels, including carbon intensity thresholds and lifecycle emissions limits. Life Cycle Assessment ensures compliance by providing detailed emissions data that align with regulatory frameworks like the Low Carbon Fuel Standard (LCFS) and Renewable Energy Directive (RED II). Companies that conduct LCAs can more easily secure certifications and market access while staying ahead of evolving environmental policies.
Improved marketability and public perception
Sustainability is a powerful differentiator in the renewable fuels market. Companies that use LCA to validate their environmental performance gain a competitive advantage. Demonstrating lower emissions and responsible feedstock sourcing attracts eco-conscious buyers and strengthens brand reputation. With growing demand for low-carbon solutions, businesses that integrate LCA into their strategy position themselves as leaders in sustainable energy production.
LCA challenges in renewable diesel production
Conducting an LCA for renewable diesel may seem straightforward—mapping emissions, analyzing data, and comparing outcomes. But real-world execution is far from simple. Data gaps, high costs, and regional inconsistencies complicate the process. Supply chains add another layer of complexity, and without standardization, results vary widely. Let’s break down these challenges and why they matter.
Data availability and quality
Reliable LCA results depend on accurate, comprehensive data, yet sourcing high-quality information is one of the toughest hurdles. Many renewable diesel producers rely on multiple feedstocks, each with different farming, processing, and transportation impacts. Some suppliers don’t track emissions at the level LCA requires, and inconsistencies arise when data from different sources use varying assumptions. Even the best databases contain gaps, forcing analysts to rely on estimates, which weakens credibility.
High cost of LCA studies
Running a full-scale LCA isn’t cheap. Software licenses, expert consultants, and data collection efforts quickly add up, making it difficult for smaller producers to justify the expense. Some companies resort to generic datasets rather than commissioning primary data collection, which reduces accuracy. Grants and subsidies can help offset costs, but financial barriers still limit widespread adoption. The challenge is balancing cost with the need for precision.
Complexity of supply chain assessment
Renewable diesel production involves a vast, intricate supply chain — from feedstock cultivation and collection to refining and distribution. Each step has its own environmental footprint, influenced by region-specific farming practices, logistics, and energy sources. Palm oil sourced from Indonesia has vastly different emissions than used cooking oil from the United States. Aggregating this data into a single LCA model while maintaining accuracy is a major challenge.
Variability in regional impacts
Renewable diesel production is not a one-size-fits-all process. The same feedstock can yield vastly different LCA results depending on where and how it’s produced. Electricity grids, land-use impacts, and farming practices vary between countries — and even within regions. An LCA that looks favorable in one area may not hold up elsewhere. This variability complicates carbon intensity calculations and makes regulatory compliance a moving target.
Lack of standardization
Without universal guidelines, LCA methodologies differ widely. Some studies focus on direct emissions, while others include indirect land-use changes or supply chain factors. Regulatory bodies like California’s Low Carbon Fuel Standard (LCFS) and the EU’s Renewable Energy Directive (RED) have their own frameworks, leading to inconsistencies in reported carbon intensities. The absence of a standardized approach makes cross-comparisons difficult and leaves room for greenwashing.
LCA methodologies for renewable diesel development
Life Cycle Assessment provides a data-driven approach to making renewable diesel production more sustainable. It helps producers evaluate environmental trade-offs, identify improvement opportunities, and align operations with sustainability goals. From selecting feedstocks to managing end-of-life impacts, LCA plays a critical role in decision-making at every stage. Below are 5 ways companies apply LCA to renewable diesel production.
Feedstock selection
Selecting the right feedstock is crucial to ensuring the sustainability of renewable diesel. LCA helps compare the environmental impact of options like used cooking oil, animal fats, and vegetable oils. For instance, used cooking oil generally results in lower emissions than virgin vegetable oils, reducing land-use concerns. Companies use LCA to assess greenhouse gas emissions, water use, and biodiversity impacts, ensuring the most sustainable feedstock is selected while maintaining fuel quality and availability.
Process improvement
Life Cycle Assessment helps producers refine manufacturing methods by identifying energy-intensive steps and areas generating excessive emissions. For example, some refineries use hydrogen sourced from fossil fuels, increasing emissions. LCA can pinpoint alternative hydrogen sources, such as electrolysis powered by renewable energy. By adjusting processes based on LCA insights, producers can lower their carbon footprint while improving efficiency, ultimately reducing costs and environmental impact.
Waste minimization
Minimizing waste is essential for sustainable renewable diesel production. LCA identifies waste streams at each stage, from refining byproducts to excess feedstock materials. For example, some producers capture and repurpose glycerin, a byproduct of biodiesel, instead of discarding it. This approach not only reduces environmental impact but also creates additional revenue streams. By continuously assessing waste generation, companies can implement circular economy principles and improve resource efficiency.
Transportation and distribution
The environmental impact of transporting renewable diesel varies based on distance, mode, and infrastructure. Life Cycle Assessment allows companies to compare transport emissions from pipelines, rail, and trucks to choose the lowest-carbon option. For instance, pipeline transport generally has a smaller footprint than trucking over long distances. Companies also use LCA to evaluate the benefits of regional production facilities, reducing transportation-related emissions and making distribution networks more sustainable.
End-of-life management
Life Cycle Assessment extends beyond production and is used to assess what happens to renewable diesel products at the end of their lifecycle. For instance, some producers analyze the impact of blending renewable diesel with conventional fuels, affecting engine performance and emissions. This practice also helps evaluate disposal or recycling methods for processing residues. By examining these factors, companies can improve product design, ensure regulatory compliance, and reduce environmental impact beyond the production phase.
Renewable diesel companies using LCA to drive sustainability
Life Cycle Assessment is becoming a standard practice among renewable diesel producers looking to measure and reduce their environmental impact. Companies across the industry are applying LCA to evaluate feedstocks, improve production efficiency, and ensure compliance with sustainability standards. Below are examples of industry leaders using LCA to refine their renewable diesel operations and enhance transparency in their environmental reporting.
Tidewater Renewables
Tidewater Renewables is driving renewable diesel production in Canada with a strong focus on sustainability. The company integrates LCA into its operations to assess carbon intensity across the fuel’s life cycle, from feedstock sourcing to combustion. By analyzing emissions at each stage, Tidewater can refine production methods and make data-backed adjustments to reduce overall environmental impact. Its renewable diesel facility in Prince George, British Columbia, is designed to produce low-carbon fuel that supports Canada’s Clean Fuel Regulations.
Kern Oil
Kern Oil, a California-based refinery, has been incorporating LCA to support its transition to renewable diesel. By evaluating different feedstocks, Kern Oil identifies sustainable raw materials that lower carbon emissions while maintaining fuel performance. The company also uses LCA to track production efficiency and identify ways to reduce waste. Its efforts align with California’s Low Carbon Fuel Standard (LCFS), ensuring its renewable diesel contributes to lower greenhouse gas emissions in the transportation sector.
Alliance Energy Services
Alliance Energy Services applies LCA to improve the sustainability of its renewable diesel production and supply chain. By assessing feedstock choices, refining methods, and transportation logistics, the company minimizes environmental impact while maintaining fuel quality. Alliance also works with industry partners to enhance transparency, using LCA data to validate emissions reductions. This approach strengthens its commitment to sustainability while meeting the needs of customers seeking cleaner fuel alternatives.
Equinor
Equinor, a global energy company, has expanded into renewable diesel with a focus on minimizing carbon emissions through LCA. By analyzing the full life cycle of its fuels, Equinor identifies opportunities to use cleaner feedstocks and adopt more efficient refining processes. The company’s investment in biofuels aligns with its broader strategy to reduce reliance on fossil fuels and transition toward a low-carbon energy future. Equinor also collaborates with regulatory bodies to ensure its LCA methodology meets industry standards.
Diamond Green Diesel
Diamond Green Diesel, a joint venture between Valero and Darling Ingredients, is one of the largest renewable diesel producers in North America. The company uses LCA to validate the sustainability of its waste-derived feedstocks, such as used cooking oil and animal fats. This analysis helps ensure its production process maintains a lower carbon footprint compared to petroleum-based diesel. By continuously refining its LCA models, Diamond Green Diesel remains ahead of regulatory requirements and delivers fuel with a validated environmental advantage.
Gevo
Gevo is integrating LCA into its renewable diesel production to quantify and improve sustainability metrics. The company evaluates greenhouse gas emissions at every stage, from feedstock cultivation to end-use combustion. By using this data, Gevo refines its processes to achieve carbon reduction targets while optimizing fuel efficiency. Gevo’s commitment to transparency means it shares LCA results with partners and stakeholders, reinforcing its position as a leader in sustainable fuel innovation.
Honeywell
Honeywell is developing advanced refining technology for renewable diesel and incorporating LCA to assess the sustainability of its processes. By analyzing different production pathways, Honeywell UOP identifies the most efficient and environmentally friendly options for fuel producers. Its technology supports refiners looking to transition from traditional fossil fuels to renewable alternatives while ensuring compliance with emissions standards. Through its LCA-driven approach, Honeywell UOP helps the industry move toward cleaner and more sustainable fuel production.
LCA software for renewable diesel operations
Life Cycle Assessment software helps streamline sustainability assessments for renewable diesel, reducing time and effort while improving accuracy. These tools enable producers to analyze environmental impact, compare scenarios, and ensure compliance with sustainability standards. The right software transforms complex calculations into actionable insights, making LCA more accessible and reliable for businesses focused on renewable diesel production.
Here are the major features and functionalities of LCA software for renewable diesel:
Database access
LCA software includes extensive databases with life cycle inventory (LCI) data specific to renewable diesel feedstocks and production processes. These databases provide scientifically validated datasets on emissions, resource use, and environmental impacts across different production methods. Access to high-quality data ensures that LCAs reflect real-world conditions, reducing uncertainties and strengthening sustainability claims for regulators, investors, and supply chain partners.
Scenario modeling
Comparing different production pathways is essential for refining renewable diesel processes. LCA software allows users to model various scenarios — such as changing feedstocks, improving energy efficiency, or adopting new processing techniques. By simulating different conditions, companies can assess trade-offs and make informed choices about reducing emissions, conserving resources, and improving overall sustainability.
Carbon footprint tracking
Accurately tracking carbon emissions throughout the renewable diesel life cycle is critical for sustainability reporting and regulatory compliance. LCA software quantifies emissions from feedstock cultivation to fuel combustion, identifying where reductions can be made. This enables companies to report progress transparently, meet climate targets, and gain an edge in markets where low-carbon fuels receive incentives.
Compliance Reporting
Meeting sustainability regulations requires precise documentation of environmental impact. LCA software simplifies compliance by aligning assessments with international standards such as ISO 14040, GREET, and EU Renewable Energy Directive (RED II). Automated reporting features help companies efficiently generate the necessary documentation, reducing manual effort and ensuring alignment with evolving regulatory frameworks.
Integration with supply chain data
Renewable diesel production involves complex supply chains, from raw material sourcing to fuel distribution. LCA software integrates data from multiple sources — including suppliers, logistics providers, and refinery operations — offering a holistic view of environmental impact. This integration improves traceability, helping companies make data-driven adjustments that enhance sustainability across the entire value chain.
Renewable diesel-driven LCA templates
Pre-built LCA templates tailored for renewable diesel streamline the assessment process by offering structured workflows and preloaded datasets. These templates help users quickly evaluate different feedstocks, production technologies, and geographic variations without building models from scratch. By reducing setup time and improving consistency, templates make LCA more accessible for both experienced analysts and newcomers looking to assess renewable diesel sustainability.
LCA trends for renewable diesel
As the renewable diesel landscape evolves rapidly, Life Cycle Assessment is adapting to meet new challenges. Advances in feedstock, automation, and new technologies are transforming how sustainability is measured. Staying ahead of these trends isn’t just beneficial — it’s crucial for those committed to cutting emissions and enhancing efficiency in renewable diesel refining. Let’s dive into the trends improving efficiency in renewable diesel production.
Increased focus on sustainable feedstocks
Not all feedstocks are created equal. Some cut emissions significantly, while others raise concerns about land use and biodiversity. Used cooking oil and agricultural waste outperform virgin vegetable oils in LCA results, but availability is limited. The industry is investing in advanced feedstocks like algae and cover crops to expand options without displacing food production.
Advances in green hydrogen technology
Hydrogen plays a major role in refining renewable diesel, but how it’s produced makes all the difference. Traditional hydrogen production emits carbon, while green hydrogen — made from electrolysis using renewable energy — slashes emissions. As electrolysis costs drop and renewable energy capacity grows, green hydrogen is becoming a viable way to improve the carbon intensity of renewable diesel. Source
Enhanced carbon capture and storage (CCS)
Refineries are under pressure to reduce emissions, and CCS is gaining traction as a solution. By capturing CO₂ before it’s released into the atmosphere, facilities can lower the life cycle emissions of renewable diesel. Projects integrating CCS with biofuel production, like those in North Dakota and Texas, are already demonstrating its potential.
Circular economy models
Waste isn’t waste if it has value. The shift toward circularity means producers are looking beyond traditional feedstocks to municipal waste, forestry residues, and even carbon captured from the air. Companies like Neste and Fulcrum BioEnergy are turning landfill-bound materials into high-quality fuels, reshaping LCA calculations in the process.
Automation and data-driven decision making
Life Cycle Assessment used to be a slow, manual process. Now, automation and AI-powered analytics are speeding things up, providing real-time insights into emissions, resource use, and efficiency. Companies integrating IoT sensors and blockchain for supply chain transparency are setting a new standard for continuous LCA monitoring and emissions tracking.
LCA software for transportation fuels
With increasingly stringent regulations, fuel producers require precise LCA data to ensure compliance. Advanced software platforms, like SimaPro and GaBi, help companies track carbon intensity, evaluate supply chain impacts, and model future scenarios. With low-carbon fuel standards evolving, robust LCA tools are becoming non-negotiable for staying competitive.
Insights on Life Cycle Assessment for renewable diesel
Life Cycle Assessment is an essential tool for ensuring that renewable diesel production meets real sustainability goals. It provides a full picture of environmental impact — from feedstock selection to final use — helping producers, regulators, and stakeholders improve processes, reduce emissions, and build a more responsible energy future.
As the demand for cleaner fuels grows, this tool is becoming an industry standard, shaping regulations, guiding investment, and influencing consumer trust. Companies that integrate LCA into their operations gain deeper insights into their environmental impact and can make meaningful improvements based on data rather than assumptions.
Despite challenges like data availability, supply chain complexity, and standardization issues, advances in LCA software are making assessments more accessible and precise. With real-time carbon tracking, scenario modeling, and supply chain integration, modern tools allow producers to streamline sustainability evaluations and align with evolving regulations.
While renewable diesel has significant potential to reduce emissions, its true impact relies on continuous assessment and improvement. Companies that take LCA seriously can set themselves apart, demonstrating transparency and accountability in an industry that is rapidly evolving.
Interested in how LCA software can enhance renewable diesel sustainability assessments? Get your guided demo with our LCA expert team and experience the P6 platform firsthand.
