2011 US biodiesel production sets all-time record

In Washington, D.C., the latest government figures show that U.S. biodiesel production has already set a new record for 2011. The National Biodiesel Board (NBB) reports that the industry has produced more than 802 million gallons of biodiesel, more than doubling 2010 production of about 315 million gallons, breaking the previous record of about 690 million gallons set in 2009. The main reason for the increased production is the reinstatement of the federal tax incentive for biodiesel, which is again due to expire at the end of 2011 without congressional action.

Operating without the incentive in 2010, production dropped dramatically as dozens of plants shut down and thousands of jobs were lost. According to a recent economic study conducted by Cardno-Entrix, this year’s increased production will support more than 31,000 jobs – up from fewer than 13,000 last year – while generating at least $3 billion in GDP and $628 million in federal, state and local tax revenues.