US biodiesel production overtakes 2010 volumes

The production of biodiesel in the US reached record highs in June this year when volumes hit 81 million gallons, according to the Environmental Protection Agency (EPA).

Biodiesel production for the first half of 2011 alone has already surpassed the levels produced in the whole of 2010, having exceeded 375 million gallons. These figures come following the reinstatement of the biodiesel tax credit earlier this year, the National Biodiesel Board (NBB) says.

In 2010 the US manufactured 315 million gallons of biodiesel after the biodiesel tax incentive was allowed to temporarily expire. However, with its reinstatement, this is expected to more than double by the end of this year, reaching at least 800 million gallons.

This boom in production levels could generate almost $1.7 billion (€1.2 billion) in income, in addition to $345 million in federal tax income and $283 million in state and local tax revenues.

'Policy makers should take a look at our experience over the last couple of years. It's a textbook case in how sound energy policy equates to sound economic policy,' says Joe Jobe, CEO of NBB. 'Congress should not allow the biodiesel tax incentive to expire again at the end of this year. In this kind of economy, we need every tool we have.'