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Released December 18, 2017 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--U.S. biodiesel production levels for the first nine months of 2017 were slightly higher than those for the same period in 2016, according to the U.S. Energy Information Administration (EIA). Recent changes to import policies could further fuel the rally, offsetting the effects of a major tax credit that expired at the end of 2016. Industrial Info is tracking $1.28 billion in active biodiesel-related projects in the U.S., and $5.65 billion globally.
Although biodiesel production, like corn ethanol, is concentrated in Midwestern states such as Iowa, it is delivered via rail and truck across the country. The largest U.S. biodiesel project under construction is Valero Energy Corporation's (NYSE:VLO) (San Antonio, Texas) $190 million Diamond Green biodiesel plant expansion in Norco, Louisiana, where new pre-treatment and other equipment is expected to boost capacity by 115 million gallons per year to 275 million gallons. For more information, see Industrial Info's project report.
Even farther from the heartland, Hawaiian Electric Industries Incorporated (Honolulu, Hawaii) is at work on its $150 million Schofield Generating Station in Schofield Barracks, Hawaii, which is expected to wrap up early next year. The facility will generate about 50 megawatts (MW) for Oahu's electric grid from a combination of biofuels and natural gas, through six Wartsila Internal Combustion Engines. Land for the facility is being leased to Hawaiian Electric by the U.S. Army. For more information, see Industrial Info's project report and July 25, 2017, article - U.S. Army, Hawaiian Electric Aim to Finish Biofuel Power Plant at Schofield Barracks Next Year.
None of this is to shortchange the Great Plains states, which traditionally are seen as a global leader in biodiesel production. Minnesota Soybean Processors (Brewster, Minnesota) is preparing to begin construction early next year on a $30 million unit for its soybean-processing plant in Spritwood, North Dakota, which is expected to process soybean oils into 30 million gallons per year of biodiesel and glycerin. It is part of a broader, $287 million soybean crush plant and refinery that is designed to process 42 million pounds per year of soybean oil and 900,000 tons per year of soybean meal. For more information, see Industrial Info's project reports on the biodiesel unit and full complex.
Also in the Midwestern area, TARA Industries LLC (Livonia, Missouri) expects to finish construction on its $25 million biodiesel plant in Tina, Missouri, by the middle of 2018. It is designed to process soybean oil into 60 million gallons per year of biodiesel. And in Iowa, often called the global capital of biodiesel production, Renewable Energy Group Incorporated (NASDAQ:REGI) (Ames, Iowa) is nearing the finish line on a $24 million expansion of its biodiesel plant in Ralston. The additions are expected to take the 12 million-gallon-per-year facility to 30 million gallons per year of production. For more information, see Industrial Info's reports on the Missouri and Iowa projects.
State and federal incentives were the biggest drivers of biodiesel production for many years. The federal biodiesel blender's tax credit, valued at $1 per gallon, had been renewed by Congress every time it expired until the end of last year, according to the EIA. But the U.S. Department of Commerce gave the domestic industry a boost when it opened an ongoing investigation in April into whether biodiesel imports from Argentina and Indonesia put U.S. biodiesel producers at a disadvantage; this month, after further investigations from the U.S. International Trade Commission, the Department of Commerce put in place countervailing duty orders, with rates ranging from 34% to 72%, according to the EIA.
Imports from Argentina alone accounted for nearly 20% of U.S. biodiesel consumption in 2016, according to the EIA. But traffic slowed in response to the investigations, and are likely to remain low unless a settlement is reached or U.S. biodiesel prices rise to offset the final duties.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
Although biodiesel production, like corn ethanol, is concentrated in Midwestern states such as Iowa, it is delivered via rail and truck across the country. The largest U.S. biodiesel project under construction is Valero Energy Corporation's (NYSE:VLO) (San Antonio, Texas) $190 million Diamond Green biodiesel plant expansion in Norco, Louisiana, where new pre-treatment and other equipment is expected to boost capacity by 115 million gallons per year to 275 million gallons. For more information, see Industrial Info's project report.
Even farther from the heartland, Hawaiian Electric Industries Incorporated (Honolulu, Hawaii) is at work on its $150 million Schofield Generating Station in Schofield Barracks, Hawaii, which is expected to wrap up early next year. The facility will generate about 50 megawatts (MW) for Oahu's electric grid from a combination of biofuels and natural gas, through six Wartsila Internal Combustion Engines. Land for the facility is being leased to Hawaiian Electric by the U.S. Army. For more information, see Industrial Info's project report and July 25, 2017, article - U.S. Army, Hawaiian Electric Aim to Finish Biofuel Power Plant at Schofield Barracks Next Year.
None of this is to shortchange the Great Plains states, which traditionally are seen as a global leader in biodiesel production. Minnesota Soybean Processors (Brewster, Minnesota) is preparing to begin construction early next year on a $30 million unit for its soybean-processing plant in Spritwood, North Dakota, which is expected to process soybean oils into 30 million gallons per year of biodiesel and glycerin. It is part of a broader, $287 million soybean crush plant and refinery that is designed to process 42 million pounds per year of soybean oil and 900,000 tons per year of soybean meal. For more information, see Industrial Info's project reports on the biodiesel unit and full complex.
Also in the Midwestern area, TARA Industries LLC (Livonia, Missouri) expects to finish construction on its $25 million biodiesel plant in Tina, Missouri, by the middle of 2018. It is designed to process soybean oil into 60 million gallons per year of biodiesel. And in Iowa, often called the global capital of biodiesel production, Renewable Energy Group Incorporated (NASDAQ:REGI) (Ames, Iowa) is nearing the finish line on a $24 million expansion of its biodiesel plant in Ralston. The additions are expected to take the 12 million-gallon-per-year facility to 30 million gallons per year of production. For more information, see Industrial Info's reports on the Missouri and Iowa projects.
State and federal incentives were the biggest drivers of biodiesel production for many years. The federal biodiesel blender's tax credit, valued at $1 per gallon, had been renewed by Congress every time it expired until the end of last year, according to the EIA. But the U.S. Department of Commerce gave the domestic industry a boost when it opened an ongoing investigation in April into whether biodiesel imports from Argentina and Indonesia put U.S. biodiesel producers at a disadvantage; this month, after further investigations from the U.S. International Trade Commission, the Department of Commerce put in place countervailing duty orders, with rates ranging from 34% to 72%, according to the EIA.
Imports from Argentina alone accounted for nearly 20% of U.S. biodiesel consumption in 2016, according to the EIA. But traffic slowed in response to the investigations, and are likely to remain low unless a settlement is reached or U.S. biodiesel prices rise to offset the final duties.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
