US biodiesel production plunges to 22 percent of capacity; feedstock costs, low demand are culprits

The National Biodiesel Board reports that US biodiesel producers are operating at 22 percent of their 1.85 billion gallon capacity, due to high feedstock prices and low demand from petroleum marketers. The NBB said that US biodiesel production would reach 400 million gallons in 2007.

The group said that the United States produced 250 million gallons out of a capacity of 580 million gallons in 2006, or 43 percent of capacity. The new US Renewable Fuel Standard mandates that petroleum marketers blend a minimum of 500 million gallons of biodiesel in 2009.

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