Although the ethanol industry is now coming back like gang busters; the biodiesel industry, especially the soy based feedstock biodiesel industry, is "on hold" awaiting the $1/gallon blenders tax credit. "Talk" in Washington is all about green jobs. Talk does not get it done at the bank. Although it is "near" a sure thing that it will get renewed, whether or not it is retroactive to the start of the year has stopped the industry in it tracks. Money is draining and wealth is being lost each day they dither in Washington.
Greenshift's corn oil is cheaper to produce than soy oil, however I suspect uncertainty in the ethanol plant financing may slow the COES licensing deals until that extra dollar a gallon is settled. A five or ten year deal is what the industry needs, they likely will have to settle for one.
*************Some of the biggest advocates for renewal of the $1-a-gallon federal biodiesel blender’s tax incentive looks for renewal of the credit sometime next month.
See rest of Article here:
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Excerpt From Agriculture Online:Because of uncertainty over whether the tax credit would be retroactive to the start of 2010, the market for biodiesel has virtually dried up. REG plants are likely to be running at about 15% of capacity in February, Stroburg said.
All this is happening just after President Barack Obama touted green energy jobs in his State of the Union Address this week. As tough as pay cuts and layoffs have been for the biodiesel industry, inaction will be even worse for rural investors who pioneered creating green jobs.
"Those investors could be wiped out as soon as working capital gets depleted," Stroburg said.
"Once a plant goes into default and investors lose their equity, there's no getting it back."
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Rest of Article Here:
SkunK
Thanks to a reader for the original link.
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