Biodiesel industry consolidation increases ahead of blending credit expiry

October 25, 2016 |

In Minnesota, Ocean Park Advisors said that as biodiesel blending credits near expiry, biodiesel producers need to have strong balance sheets to weather the storm until they are renewed, followed by a burst of profit that makes the whole hassle worthwhile. As such, it is typically a period of consolidation in the industry in the run up to expiry, as is expected for the end of this year. At the moment, just 10 producers own 62% of installed production capacity at 28% of the plants nationwide.

Category: Fuels

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