Renewable diesel is now available at all Penske Truck Leasing locations in California and Oregon. To make this transition as easy as possible for our customers, Penske has made the switch to renewable diesel.
Renewable diesel — an advanced fuel option that reduces greenhouse gas emissions while meeting the same specifications as petroleum diesel — can be added to existing fuel truck systems to help lower a fleet’s carbon footprint. As a drop-in fuel that can be used in place of ultra-low-sulfur diesel (ULSD), renewable diesel is helping bridge the gap as the trucking industry moves toward zero-emission vehicles without extra equipment or infrastructure cost related to battery-electric vehicles.
Renewable diesel is refined just like regular fossil petroleum but comes from refining plant-based oils up to R-99. It is identical to ULSD but has a well-to-wheel differential of 60-90+% in greenhouse gas production.
Renewable diesel has experienced dramatic increase in supply and demand, according to the State of Sustainable Fleets 2023report. Erik Neandross, CEO of Gladstein, Neandross & Associates, which created the report, said that in 2022, domestic RD production doubled from 800 million gallons in 2021 to more than 1.7 billion gallons. On the demand side, consumption increased by more than 45% for the second year in a row, and it represented 83% of all bio-based diesel consumed in transportation in California for the first three quarters of 2023.
Penske currently offers R-99 — 99% renewable diesel fuel — at multiple locations on the West Coast.
Renewable diesel can be produced from crop residues, wood and sawdust, animal fats, used cooking oil, vegetable oil, fish fat and switchgrass. It qualifies as an advanced biofuel under the U.S. Environmental Protection Agency’s (EPA) Renewable Fuel Standard (RFS) Program.
Renewable diesel significantly reduces emissions compared to fossil-fuel-based diesel. More specifically, renewable diesel reduces:
There are also performance benefits due to higher cetane, lower aromatics for improved public health, and excellent cloud point for cold-weather use.
Penske sells neat R-99 and does not blend it with biodiesel. Unlike biodiesel, renewable diesel doesn’t contain oxygen, as it is refined just like carb diesel, so users will not encounter the challenges biodiesel presents relating to freezing temperatures and short storage life. As a result, it remains operable at temperatures as low as -34°C. Plus, renewable diesel burns cleaner than biodiesel and does not require any blending. This cleaner burn means fewer regens and longer diesel particulate matter filter life.
Due to California’s low carbon fuel standard (LCFS) credits, the cost is comparable to ULSD. Since renewable diesel currently has a more expensive feedstock than petroleum-based diesel products, Penske focuses on supplying renewable diesel to locations in states with LCFS programs. As the refining capacity expands, the product should be more readily available and the price more competitive.
Renewable diesel is a drop-fuel that can be used in place of conventional diesel or biodiesel fuel. As the trucking industry moves toward zero-emission vehicles, renewable diesel is helping bridge the gap without the extra equipment or infrastructure costs that may be required to support other forms of alternative vehicles such as battery electric, hydrogen, etc.
This informative guide will help you gain a better understanding of renewable diesel and Penske’s high-level strategy for securing it for our customers. You’ll get:
Penske Truck Leasing announced it has expanded its use of renewable diesel in California through a preferred supplier agreement with Shell Oil Products U.S. The move is a continuing effort by Penske to help reduce emissions across its truck rental, heavy-duty truck leasing and logistics fleet operations.
“In California, renewable diesel provides a realistic pathway for fleets to reduce emissions from well to wheel as the industry continues to decarbonize,” said Josh Tippin, vice president, energy and fuel supply at Penske Transportation Solutions. “Collaborators like Shell are essential in supporting our fleet sustainability efforts by securing and supplying lower-carbon fuel sources such as renewable diesel and collaborating with us on other carbon reduction initiatives.”
All vehicles refueling at Penske Truck Leasing’s 32 locations equipped with fuel islands in California are now receiving renewable diesel at its pumps. Penske plans to expand its use of renewable diesel in other markets as supply increases, and as carbon compensation programs for replacing traditional diesel fuel with renewable diesel become more widely available.
According to the California Energy Commission and California Department of Tax and Fee Administration statistics, approximately 3 billion gallons of diesel fuel is sold annually in the state, with only about a third being sold as renewable diesel.
Penske first piloted renewable diesel in Southern California for several months to ensure there were no adverse effects on vehicles or their operation. To the contrary, Penske found an overall net positive effect on the vehicles related to renewable diesel. Of note were reduced maintenance-related issues along with the added benefits of lower overall emissions and a cleaner fuel compared with traditional ultra-low sulfur diesel. The renewable diesel provided by Shell is fully compatible with all diesel engines and has a higher cetane level.
Penske has been working closely with Shell to progress decarbonization of the road transport sector, launching sustainable solutions across its operations. For example, Penske is currently installing approximately 100 Level 2 electric vehicle chargers in six states during 2022. This is in collaboration with Shell Recharge Solutions to support Penske’s growing fleet of light-duty electric rental trucks.
By "Move Ahead" Staff
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