It might not be just the jingle of sleigh bells that puts a smile on biodiesel producers faces this Christmas season. With Congress passing the tax extenders legislation and the president signing it into law, many producers will enjoy a little extra figurative jingle in their pockets, as the federal $1-a-gallon biodiesel blenders tax credit is made retroactive for 2015 and covers all of 2016.
Business Record reports biodiesel behemoth Renewable Energy Group will see a windfall of $125 million to $135 million from the measure passing. And Canadian biodiesel maker BIOX, with a 16 million gallon per year biodiesel refinery in Ontario, announced it would see increased profits thanks to the credit.
Alan Rickard, CEO of BIOX Corporation said, “This is a significant piece of legislation that will provide much needed industry stability and support. On the retroactive passage of this legislation, BIOX expects a positive impact of approximately US$7 million to be recorded in our Fiscal Q1 results, related to the entire 2015 calendar year. Even greater is the market stability that the proactive passage of this legislation provides. This, combined with the EPA setting the Renewable Volume Obligations for the Renewable Fuel Standard (RFS2) from 2014 through 2017 and Ontario’s Greener Diesel requirement increasing to 3% in 2016, gives us a positive outlook for the biomass based diesel market in North America.”