Volume 6, Issue 4
Published: May 7, 2012
Slowly but surely

It is still early in the year, but the US biodiesel industry seems headed for little demand growth in 2012 compared with a year prior when domestic production facilities recorded output of 1.1 billion gallons. That is more than enough to satisfy the federal mandate, with the 2012 Renewable Fuels Standard (RFS) requirement for 1 billion gallons of biomass-based diesel to be used in lieu of petroleum-based fuel this year.

 

In fact, data from the Environmental Protection Agency’s (EPA) Moderated Transaction System shows 212.5 million Renewable Identification Numbers (RINs), or more than 20% of the RFS target have been generated during the first two months of the year, with RINs the credit used to show compliance in meeting the federal mandate. An obligated party under the RFS can carry over 20% of a prior year’s RINs to satisfy their Renewable Volume Obligation (RVO), so it does not mean all of these RINs will be used in 2012.

 

To this point, the US Energy Information Administration (EIA), the statistical and analytical arm of the Department of Energy, estimates actual domestic consumption of biodiesel in 2011 was 772 million gallons. A late in the year production push was also seen capturing the subsidy from an expiring tax credit that paid $1 (€0.75) for each gallon of biodiesel that was blended into petroleumbased diesel. That tax credit expired at year end and there are no expectations that it will be renewed. 

To read the article in full you have to be a subscriber...
Further Articles in this Issue:
L ast year CONCAWE, the oil companies’ European research association, based in Brussels, Belgium, began a one-year passenger car test programme on 10% ethanolpetrol blends in order to test their... [Read more]
It is still early in the year, but the US biodiesel industry seems headed for little demand growth in 2012 compared with a year prior when domestic production facilities recorded output of 1.1 billion... [Read more]
Consumers across the US are now paying close to $4 (€3) for a gallon of petrol. Prices at the pump are directly tied to world oil prices for the very simple reason that there is a lack of competition... [Read more]
On 9 March 2012 the API, which represents more than 500 oil and natural gas companies, filed a lawsuit in the DC Circuit Court challenging the Environmental Protection Agency’s 2012 requirements... [Read more]
Italy’s biofuels market started slowly. Competition from South America, and confusing EU and Italian legislation delayed growth. The industry has been struggling to meet its EU 2020 mandatory 10%... [Read more]
Spring is here in the UK, and as the lambs gambol and the birds sing overhead, a distant rumble can be heard through the countryside of northeast England. Grain trucks are beginning their pilgrimage to... [Read more]
When it comes to wheat processing plants, bioethanol certainly hits the mega-league for size. An average flour miller or animal feed compounder might use 50–200,000 tonnes of wheat per annum, with... [Read more]
There are some compelling conclusions that can be drawn from the trends of the last 10-15 years. First, wheat production has risen due to an upward trend in average crop yield and increasing acreage in... [Read more]
Biofuels technology company Solazyme, based in San Francisco, stumbled across a discovery in January that its technology could not only create biofuels but chemicals that could be used for skincare.  ... [Read more]
Bio-based plastics, chemicals and fuels are gradually penetrating our daily life. Increasing oil prices, medium- to long-term scarcity and a national urge for oil independency led governments across the... [Read more]
A lubricant is a substance, either fluid, semi-fluid or solid, introduced between two moving surfaces to reduce friction. The primary purpose of any lubricant is to reduce wear and heat between the contacting... [Read more]
Ocean-going ships consume a significant part of global transportation fuels. Although commercial shipping is, by far, the most energy efficient mode of transporting goods around the world, the global shipping... [Read more]
In an unpredictable market, partly created and limited by government mandates, plagued with operational inefficiencies and limited ability to process less expensive feedstock, low-cost producers have a... [Read more]
Up until now, almost all filtration systems installed on bulk fuel storage tanks were placed between the tank and the fuel dispenser downstream of the tank. Whilst filtering at this location is important,... [Read more]
Membranes are highly engineered, physical barriers that are used in processes for liquid/liquid and liquid/solid separation. They permit the passage of materials only up to a certain size, shape or character.... [Read more]
More than 60% of the 87 million barrels of oil consumed every day power the world’s transportation sector, and liquid fossil fuels account for 94% of the energy supply to the sector.1   The... [Read more]
Those involved with building plants do not see their project from the same viewpoints as their lenders or investors, and neither has the same perspective as other project participants. Lawyers, for example,... [Read more]