This is growing concern about biodiesel prices. The federal blenders tax credit has done little to bring down cost for end users as evidenced by this chart from Va Clean Cities. I intend to create one for North Carolina and anticipate that it will reveal much the same.Demand is simply outstripping supply. We need to get some production facilities up and running in NC. Hopefully that would help the tight supply and high price situation, although this is not any guarantee if demand is rising across the country. 80% of the biodiesl being produced in VA is being sold out of the state.
posted by NC Solar Center Clean Transportation @ 9:20 AM
1 Comments:
As a producer ( Evans Environmental Energies), the main factor of pricing is feedstock cost, which are being driven by corn which is being driven by ethanol. Soy oil has gone up from .24/lbs to .35/lbs in one year. This translates to $1.82/gal to 2.66/gal. Increasing production will actually make this go up. Right now the futures market is keeping the price high with the thought that demand will increase, but at the prices we have now I predict it will not and pricing will begin to fall eventually. If the blenders tax credit was not in place there would be no production of biodiesel at current feedstock pricing levels. What really needs to happen is a federal mandate of B2 or B5 over a period of time that would over several years stabilize pricing and give us a fuel produced here by our people at $3.50 to $4.00 per gallon range and everyone from the farmer to the end user would benefit.
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