NBB releases new study on economic impact of biodiesel tax credit

In Washington, the National Biodiesel Board (NBB) released a new report, “The Importance of the Biodiesel Tax Credit,” showing how the emerging biodiesel industry relies on the combined values of the tax credit and Renewable Fuel Standard (RFS) credits to compete with petroleum diesel in the current market. The report was written by John Urbanchuk, managing partner of ABF Economics.

The report examines relative prices and values for biodiesel (B100) and petroleum-based ultra-low sulfur diesel (ULSD) from 2016 to the first quarter of 2019. Biodiesel and ULSD compete for market share within the same applications, the report explains. While biodiesel is higher priced compared to ULSD, it is profitable on average to produce because its value in meeting the RFS standards helps recoup its production cost.