Biodiesel prices seen soaring further in 2022

In California, U.S. biodiesel prices skyrocketed in 2021, and their growth is to continue this year, a recent report published by market research firm IndexBox reveals. According to USDA data, the average spot FOB export price for biodiesel B100 from the plants in Illinois, Indiana and Ohio reached $5.58 per gallon in November 2021, surging by 59% against 2020. The on-highway average price for conventional diesel soared by 41% y/y to $3.64 per gallon, remaining much lower than those of biodiesel.

The rising costs of vegetable raw materials and energy constitute the key reasons for the biodiesel price increase and further propelling the biofuel prices this year. According to World Bank’s forecast, the price for soybean oil, one of the major raw types for biodiesel production, is set to grow by nearly 4% totaling $1,425 per metric ton in 2022. The cost of fossil fuels is also projected to remain at the high level of 2021, which implies increased expenditures for energy in biodiesel manufacturing.