Florida’s Agri-Source halves production as biodiesel “crush spread” evaporates

In Florida, the Agri-Source biodiesel plant in Dade City has reduced production from 3 Mgy by 50 percent as the crash in fuel prices have wiped out the required margin, or “crush spread”, between fuel and feedstock prices.   The company confirmed that, while profitable in the summer, it is losing money on production of B20 biodiesel.

Agri-Source recently received a $4 million state grant to be used for the location of a second biodiesel facility, and is investigating land in Santa Rosa County. However, company executives did not discuss a timetable for new capacity construction or returning to full utilization of current capacity.

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