Back from the Brink, Biodiesel Industry is Here to Stay

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Researched by Industrial Info Resources (Sugar Land, Texas)--When the biodiesel tax incentive lapsed on December 31, 2009, it resulted in the closing or shuttering of 31 production facilities across the U.S. Now that the tax credits have been reinstated, domestic biodiesel production is back on the rise and seems to be here to stay.

For the month of June, U.S. biodiesel production rose to a record level of 81 million gallons, and the industry is on track to produce approximately 800 million gallons in 2011. The previous record level reported in 2008 was 700 million gallons per year. Production dropped to 315 million gallons in 2010.

With revived production, the industry will support more than 31,000 U.S. jobs and generate income of nearly $1.7 billion to be circulated throughout the economy. It also is expected to generate an estimated $345 million in federal tax revenue and $283 million in state and local tax revenues.

In Texas, the industry scored big with the changes to the motor fuel tax reporting rule, making it easier for fuel retailers to offer more biodiesel blends and increased markets for the state.

The changes across the country show the cooperation of the biodiesel industry, petroleum industry, and state and federal regulators. It is estimated that biodiesel blending resulted in the replacement of nearly 1 billion gallons of imported petroleum diesel. Support came from the National Biodiesel Board, the Renewable Energy Group, the Texas Oil and Gas Association, Valero Energy (NYSE:VLO), the Texas Petroleum Marketers and the Convenience Store Association.

Industrial Info's databases provides a comprehensive outline of all current development activities in the emerging alternative fuels market. Our North American Biodiesel Database covers 136 operational plants and 90 plants under development. Our North American Ethanol Database covers 214 plants currently in operation and 138 plants in various phases of development. Our North American Wood Fuel Pellet Database includes 63 operational plants producing greater than 25,000 tons annually, and 38 projects in progress.

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR'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.