RECENT NEWS
Motley Fool  Aug 11  Comment 
With strong sales and light earnings given global market pressures, the rendering and biodiesel company keeps moving forward.
The Economic Times  May 18  Comment 
'Indizel is a bio fuel made from renewable vegetable oils and is currently the only fuel in India that meets Euro 6 requirements, making it the greenest fuel in India with low emissions.'
Motley Fool  May 12  Comment 
The rendering and biodiesel company continued to execute on its strategic initiatives to start 2017.
Agrimoney.com  May 5  Comment 
Ideas the US will slap tariffs on $1.5bn of biodiesel imports send soyoil futures up 3%. And that may be just the start, according to Rabobank
Agrimoney.com  May 4  Comment 
... "ultimately", says Bunge boss Soren Schroder, who also terms a "big thing" US proposals to slap tariffs on biodiesel imports
Reuters  Apr 14  Comment 
The United States said on Thursday it would start an investigation into imports of biodiesel from Indonesia and Argentina for possible dumping and subsidisation.
Biomass Magazine  Apr 5  Comment 
BBI International is pleased to announce that due to a rebounding, growing U.S. biodiesel market, the Grand Forks, North Dakota-based publishing company is increasing print frequency of its second-longest-running publication, Biodiesel Magazine.
The Hindu Business Line  Apr 4  Comment 
Railway Convention Committee report
Biomass Magazine  Mar 30  Comment 
California Air Resources Board recently released a set of carbon intensity (CI) pathways for fuels certified under the readopted LCFS. Eighteen pathways have been certified in March, including four for renewable diesel.
Biomass Magazine  Mar 27  Comment 
A close look at export data for wood pellets, fuel ethanol and biodiesel reveals a varying reliance on export markets for U.S. producers.




 
TOP CONTRIBUTORS
Biodiesel is a nearly perfect substitute to petroleum derived diesel fuel. It is derived from the transesterification of biogenic oils such as vegetable oil and animal fats. The US biodiesel industry is burgeoning- it has tripled each year during the past few years. So much so, in fact, that vegetable oil prices, which account for around 80% of production costs, have almost become prohibitive to biodiesel's production as demand for biogenic oils - mainly soybean, palm, and rapeseed (canola) - has pushed their prices to unprofitable levels. Biodiesel has a well defined place in a sustainable energy portfolio, but the nascent biodiesel industry has a long way to go.

State of the Industry

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Recent Soybean Oil Prices

The National Biodiesel Board(NBB) just published the latest US biodiesel capacity numbers. 148 existing plants are reported (up from 105 in January 2007), for a total of 1.39 billion gallons/year of capacity. 96 new projects, and 5 expansions are currently underway, which will account for 1.89 billion gpy of capacity when they come online by the end of 2008. Here are the maps: existing and in construction.

The total is 3.28 billion gallons. This is a nameplate capacity: the output possible when running 24/7, 350 days/year. Collectively, US biodiesel plants run at about 25% of their capacity, a severe underutilization of assets. To put that 3.28 billion gallons per year capacity in perspective, at full capacity it would replace 5.1% of US diesel consumption, take up 126% of US soy oil production, take up 113% of all US vegetable oil production, and take up 84% of all US animal fat and vegetable oil production.

Future Developments

Food for Fuel

Clearly, biodiesel demand pushes up food prices. High oil prices, and subsequently biofuel prices, will cause food prices to rise, potentially pricing out poor people. This effect is well recognized, and many countries, including China, have set limitations on biofuels to combat the possibility of hunger problems resulting from biofuels.

Carbon Credits

Biodiesel reduces carbon dioxide emissions significantly- 70% is a frequently quoted percentage reduction of carbon emissions. The reduction won't approach 100% any time soon- it takes fertilizers, diesel tractors, petroleum powered transportation measures, and methanol to get biodiesel to the pump. However, [Carbon Trading] has the potential to benefit biodiesel producers immensely- on an energy basis, substituting a gallon equivalent of biodiesel for diesel (biodiesel has about 92% of the energy content of petroleum diesel) saves about 6.5 kg of CO2 emissions. It takes about 150 gallons to eliminate a metric ton (mt, or 1000kg) of CO2 emissions, making the roughly $4/mt carbon credit that the Chicago Climate Exchange offers reduce the price of a gallon of biodiesel by a mere 2.6 cents. To eliminate the need for the $1/gallon subsidy currently in place, the price of a ton of CO2 would have to be about $150.

Alternative Feedstocks

In its current form, the biodiesel market scope is small. For the long term, soybean, rapeseed, and palm biodiesel are not great solutions: soybean and rapeseed crops compete with food and have low oil/area yields relative to plants like palm and jatropha. Palm oil is a great feedstock, however it is currently being developed in a highly unsustainable form: deforesting land for palm oil production. It takes many decades to recapture the carbon emitted from forest destruction by planting biodiesel crops. Renewable fuels must become globally traded commodities if they are to have any significant impact on the world's energy portfolio.

Who stands to benefit

Companies who have their hands in jatropha plantations and those with logistics favorable to an international oilcrop market.

Who stands to lose

Companies in the middle of Iowa.

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