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BIODIESEL PLANTS RETURN TO PROFITABILITY
Source: Brock Report

According to a profitability model developed at Iowa State University, it was a great summer for biodiesel producers.

The main variables used in this model are biodiesel, soybean oil, methanol and natural gas prices.

Starting in May, the net return per gallon of biodiesel has been roughly 50 cents-the largest return in four years.

The biodiesel industry is extraordinarily profitable because U.S. production down at a time when demand is spiking, thanks to two governmental support mechanisms.

Many biodiesel plants did not survive the negative returns of 2009/10, but this year both the federal government's RFS2 usage mandate and the $1 per gallon biodiesel tax credit are in place.


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