Ethanol is still the king of biofuels in the U.S., but biodiesel is making, and will continue to make, big gains… that’s according to a USDA long-term projection reported on CattleNetwork.com:

Biodiesel production capacity and output have increased rapidly in the past 2 years and are projected to rise rapidly again in 2007/08. Slower growth is then projected for several years, with biodiesel output leveling off beyond 2010/11 as higher soybean oil prices reduce profitability. At its projected high of 700 million gallons, biodiesel uses about 23 percent of soybean oil production, but accounts for less than 2 percent of highway diesel fuel use in the United States.

The story goes on to say that most of the U.S. biofuel expansion over the next few years will be dominated by ethanol produced from corn.