An Iowa biodiesel plant is the latest victim of the government’s inaction on measures that are aimed to help the biofuels industry. This article from the Dubuque (IA) Telegraph Herald says the 30-million gallon nameplate Western Dubuque Biodiesel has had to stop production completely – just another of the too many biodiesel refiners that have had to shut down due to the federal government’s failure to give clear direction on the Renewable Fuel Standard (RFS) and the expiration of the $1-a-gallon federal biodiesel tax credit.
“All the tanks are full and no one is buying,” General Manager Tom Brooks said. “How do you sell product to a buyer who doesn’t know what he has to blend against? That’s the frustration.”
Across the U.S., biodiesel production fell from a high of 1.8 billion gallons in 2013 to 1.75 billion last year. In Iowa, production fell slightly, but it remains the nation’s leading producer, accounting for 16 percent of biodiesel output in 2014, according to the Iowa Renewable Fuels Association.
Uncertainty sent prices falling nearly 25 percent for all of 2014 and led to a 73 percent decline in industry profitability, Brooks said. The result: Dozens of biodiesel plants have stopped production or laid off workers in recent months.
“It creates doubt and uncertainty for investors and lenders, because they don’t know whether the industry is stable. Is the business growing or stagnating?” he said. “And when you’re running the plant at half capacity, your costs increase.”
The article goes on to say that state biodiesel tax credits have helped a little, but industry officials worry the same uncertainty in federal policy will continue to plague biodiesel in 2015.