Biodiesel producers running at 40% production capacity waiting for tax credit extension

In Texas, ICIS reports that biodiesel producers hit the statutory blending requirement for the year by early November which has forced producers to cut production by up to 60% as they wait for the renewal of the biodiesel production tax credit of $1/gallon that may never come along. With the Environmental Protection Agency not expected to meet its November 30 deadline for announcing next year’s biodiesel blending mandate, producers have little in the way of keeping demand for fuel float.