US biodiesel beats slump to record consecutive production high

The US biodiesel industry broke the 1 billion gallon mark in 2012 for the second consecutive year, according to year-end production figures released by the EPA.

The total volume of nearly 1.1 billion gallons was roughly flat over 2011 production, exceeding it by 6 million gallons.

‘These numbers reflect the ongoing growth and development of our industry and represent real jobs at plants across the country,’ says Anne Steckel, VP of federal affairs for the National Biodiesel Board. ‘Biodiesel continues to account for the vast majority of the nation's advanced biofuel production and is playing a significant role in diversifying our energy supplies with clean, American-made fuel.’

The lowest monthly volume of the year was December with a production total of 59 million gallons. The December total marked the close of a year-end slump in which biodiesel production dropped significantly as Congress failed to renew the biodiesel tax incentive, though it did ultimately renew the $1-per-gallon incentive on 1 January as part of the "Fiscal Cliff" legislation.

‘It's difficult not to wonder how much additional production and jobs could have been created if the biodiesel tax incentive had remained in place in 2012,’ Steckel adds. ‘It was a missed opportunity that significantly hurt many producers. But we are pleased that Congress reinstated the tax credit earlier this month and we expect significant growth in 2013.’

Biodiesel production is reported under the EPA's biomass-based diesel category in the Renewable Fuel Standard.

Made from an increasingly diverse mix of resources such as recycled cooking oil, soybean oil and animal fats, biodiesel is the first and only EPA-designated Advanced Biofuel that's produced on a commercial scale across the US.