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Energy in Oregon

Transportation accounts for about one-third of Oregon’s energy use. Alternative fuels like ethanol or biodiesel can increase energy security, reduce fossil fuel emissions, and cut negative health effects of fossil fuels.

Biodiesel Station

Renewable Natural Gas/Biogas

Some Oregon facilities currently generating biogas simply flare the biogas, while others burn it in a special internal combustion engine that is connected to a generator that produces electricity. Those facilities either consume that electricity on-site or sell it onto the grid through a Power Purchase Agreement with an electric utility. Another option is emerging in Oregon: cleaning up biogas to meet natural gas pipeline quality standards – at which point it is called Renewable Natural Gas (RNG) – and then injecting it into an existing natural gas pipeline. The RNG can be sold as either a direct use stationary fuel or as a transportation fuel. 

Oregon recently quantified opportunities to convert persistent, long-term waste streams into useful energy as biogas and RNG. Municipal waste streams — garbage, wastewater, and waste food — and agricultural waste streams like manure, all generate methane, a powerful greenhouse gas. Redirecting these waste streams into controlled processes can capture and use the methane, reducing greenhouse gas emissions and air pollutants when the resulting RNG is substituted for fossil fuels in our transportation and stationary fuels sectors. If Oregon’s potential volume of RNG could be captured and used to displace fossil-based natural gas for stationary combustion, we would prevent the release of approximately two million metric tons of greenhouse gases into the atmosphere. Redirecting this fuel source into these sectors can also potentially result in increased economic opportunity, and provide energy security and resilience for Oregon communities.​​


Ethanol is a renewable fuel made from various plant materials, primarily corn. Oregon’s renewable fuel standard requires nearly all gasoline sold to be a 10 percent ethanol blend.

A higher blend of ethanol – known as E85 – is also available in Oregon. This fuel must be used in flexible fuel vehicles, which can run any combination of gasoline and ethanol blends. E85 is available at five public retail locations in Oregon. Additionally, five fleets use E85, including the Department of Administrative Services, the Department of Transportation, the Department of Forestry, the Eugene Water and Electric Board, and the Veterans Affairs Portland Campus.

Several steps are involved in making ethanol available as a vehicle fuel:

  1. Feedstocks are grown, collected, and transported to an ethanol production facility.
  2. Ethanol is made from these feedstocks at a production facility along with byproducts such as animal feed and corn oil. The fuel is then transported to a blender/fuel supplier.
  3. Ethanol is mixed with gasoline by the blender/fuel supplier and distributed to fueling stations.

We expect non-edible plant material, rather than corn, will become the dominant source of ethanol in the future. This “cellulosic” material cannot be used as food, so it wouldn’t reduce edible resources.



Biodiesel is produced from a diverse mix of feedstocks including recycled cooking oil, agricultural oils, and animal fats. The state renewable fuel standard requires five percent of diesel consumed in state must be biodiesel.

Oregon-based biodiesel company SeQuential produces most of its fuel from used cooking oil collected from restaurants and food processors around the region. SeQuential sells its fuel at more than 60 locations in the state. 

Several fleets such as the Oregon Department of Forestry, the Oregon Department of Transportation, the Eugene Water and Electric Board, Organically Grown, and the City of Portland use high blends of biodiesel in their fleets.


Renewable Diesel

Hydrogenation-derived renewable diesel is made from fats or vegetable oils – alone or blended with petroleum – refined by a process called hydrotreating. This fuel is cleaner and has a lower carbon footprint than petroleum-based diesel, and it can also operate at colder temperatures than standard diesel or biodiesel.

Several fleets in Oregon use renewable diesel, though most of the renewable diesel is imported and only available in limited quantities.

 Renewable Energy Development Grants​

​ ​Contact the Planning & Innovation Team: