Ethanol Blog

Friday 12/07/12

Biodiesel Producers Stalled until 2013 Mandate Kicks In

Biodiesel producers are in a holding pattern until the 2013 demand mandate kicks in amid a lack of buying interest from refiners, blenders and importers.

"We've all but completely walked away from biodiesel for this year," said a New Jersey biodiesel trade source this morning.

The 2012 Renewable Fuel Standard mandate for biomass-based diesel that one billion gallons be blended into petroleum-based diesel this year has likely been satisfied, with the industry producing nearly a billion gallons this year through October.

Moreover, "The fact that it is wintertime, and many plants need some portion of their feedstock to be soy to help with cloud point (which) raises their overall feedstock cost," Kenneth Pete Moss, president of Frazier, Barnes and Associates, Memphis, Tennessee told DTN this week has further stymied biodiesel producers.

Myke Feinman can be reached at myke.feinman@telventdtn.com.

Posted at 11:54AM CST 12/07/12
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