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BIODIESEL MANUFACTURERS CONTINUE TO LOSE MONEY, MORE PLANT CLOSURES IN THE FUTURE?
Mar. 13, 2024
Agri-Pulse reports:
A new analysis of profits in the biodiesel industry underscores the volatility and tough times the industry is facing as it competes with renewable diesel for the biofuel market.
Biodiesel production finances have whipsawed between losses and profits since 2021, with plants losing 59 cents per gallon during the early period of the renewable diesel but then recovering to 41 cents, according to the analysis by Scott Irwin of the University of Illinois. Since 2023, biodiesel production has been losing about 19 cents a gallon, he found.
To read Dr. Irwin's report click here.
Bottom line: "If the losses in 2024 to date continue, more biodiesel plant shutdowns may be in the offing," Irwin writes.
Keep in mind: Both biodiesel and renewable diesel plants have been struggling due to where EPA set the usage targets in 2023, according to Irwin and industry officials. Chevron recently announced plans to close a pair of biodiesel plants in Iowa and Wisconsin.
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