We came across an article on checkbiotech.org about a surplus in biodiesel so we wanted to give a quick update. The article mainly discussed that the fact that biodiesel supplies are now in surplus. This surplus is largely due to two things.
The first is the fact that the European Union has enacted a ban on imported biodiesel. The European union made up roughly 80% of the sales from US diesel manufacturers.
The other significant reason is the cost. US manufacturers have used soybeans in the manufacturing process. Now, soybeans can cost upwards of 30% more than they did just a few years ago.
The article also discussed the issue of political uncertainty. The industry is stuck waiting to see what the policies of the U.S. Environmental Protection Agency will yield. If the EPA goes with a 650 million to 800 million requirements the surplus should disappear rather quickly.
This issue of a surplus will also be affected as the economy recovers. As more trucking jobs are created and more trucks are on the road surpluses will be drawn down.
The full and complete checkbiotech article can be found at: http://bioenergy.checkbiotech.org/news/us_biodiesel_industry_drowning_surplus
Tags: BioDiesel