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Volume 6, Issue 1
Published: February 1, 2012
US biodiesel output to keep on growing

One might anticipate doom following the loss the Biodiesel Mixture Excise Tax credit, a federal tax subsidy that paid $1 (€0.8) for each gallon of biodiesel or renewable diesel fuel blended into petroleumbased diesel fuel, which expired at the end of 2011.

The credit was allowed to expire at the end of 2009, and biodiesel production in the US plummeted while plants shut down in 2010. It was a disastrous year for the industry, with many companies filing for bankruptcy.

The tax credit was reinstated in December 2010 for one year, while also made retroactive for 2010. After a slow ramp up in 2011, biodiesel production surged.

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