Biodiesel output slumps in 2014

WASHINGTON, D.C. – The U.S. biodiesel market shrunk in 2014 amid policy uncertainty in Washington that destabilized the industry and caused many biodiesel plants to shut down or reduce production.

According to the Environmental Protection Agency, total U.S. biodiesel consumption fell to 1.75 billion gallons for the year, down slightly from nearly 1.8 billion gallons in 2013.

The downturn came as the Obama Administration failed to finalize biodiesel volumes under the Renewable Fuel Standard (RFS) and the U.S. Congress allowed the biodiesel tax incentive to lapse at the beginning of 2014.

“These numbers reflect the consequences of policy inaction,” said Joe Jobe, CEO of the National Biodiesel Board (NBB), the industry trade association.

“The drop in production represents lost jobs and economic activity. It represents a lost opportunity to reduce greenhouse gas emissions and other pollutants. And it represents another year in which we fail to tackle our dangerous dependence on oil in the fuels sector.”

“The numbers would have been even lower had the EPA not signaled throughout the year that it will strengthen the RFS proposal and finalize it promptly,” Jobe said. “But companies can operate on faith for only so long. We have already seen many producers close their doors, and many others are struggling to stay open as we enter a New Year with continued uncertainty.”

Biodiesel – made from a variety of resources including recycled cooking oil, plant oils such as soybean oil, and animal fats – is the first EPA-designated Advanced Biofuel to reach commercial-scale production nationwide. According to the EPA, biodiesel reduces greenhouse gas emissions by 57 percent to 86 percent compared with petroleum diesel. With plants in nearly every state in the country, the industry supports some 60,000 jobs.

The EPA figures, which can be found here, reflect U.S. consumption of Biomass-based Diesel, the vast majority of which is produced domestically.

 


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