Higher blending mandates for ethanol, biodiesel, and renewable diesel could spur demand for biopropane as the Renewable Fuel Standard expands through 2027.
The Environmental Protection Agency finally finalized its “Set 2” Renewable Fuel Standard (RFS) rule, raising the annual blending requirements for ethanol, biodiesel and renewable diesel for the next two years. The rule, which was adopted after a lengthy public comment period, lifts the 2025 ethanol mandate to 15.6 billion gallons and pushes biodiesel and renewable diesel targets to 3.1 billion gallons each. While the language focuses on traditional liquid biofuels, the EPA explicitly noted that producers of biopropane—also known as renewable propane—could benefit from the expanded domestic biofuel mandate.
Renewable propane is produced by upgrading biogas or by hydrogenating bio‑derived feedstocks, yielding a propane‑like fuel with a carbon intensity up to 90 percent lower than conventional propane. Industry analysts estimate that the new RFS volumes could create an additional 150–200 million gallons of market opportunity for renewable propane by 2027, especially in regions with strong agricultural waste streams. “The rule sends a clear signal that the EPA is committed to expanding the role of advanced biofuels, and that includes renewable propane,” said Mark T. Clevenger, senior policy director at the National Propane Gas Association.