Illinois to require labeling of B6 to B20 blended biodiesel; move to increase biodiesel awareness

In Illinois, a state law will go into effect July 1, requiring labeling of all pumps selling B6 to B20 blended biodiesel. The move is supported by the Illinois Soybean Association to promote awareness of biodiesel. Illinois is the largest consumer of biodiesel among US states, but awareness has been low to date because B1-B20 blends were unlabeled.

The news was positive for the Illinois biodiesel industry, which had been cited by BBI International as the third biggest biodiesel producing state, with 199 Mgy in actual or planned capacity. The state has been beset by high soybean oil prices.

Recently, construction was halted at the North Prairie Productions biodiesel plant in Illinois owing to high soybean oil prices. The company is planning a strategic review before potentially resuming construction efforts. However, Nova Biosource Fuels announced a $41 million senior secured credit facility with WestLB AG, including a $36 million construction loan and $5 million in working capital. The funds will be used to complete the company’s 60 Mgy biodiesel plant in Seneca, Illinois. The plant is scheduled to be complete by summer 2008.

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