Illinois biodiesel plant halts construction, citing high soybean oil prices

In Illinois, construction was halted at the North Prairie Productions biodiesel plant owing to high soybean oil prices. The company is planning a strategic review before potentially resuming construction efforts.

The shutdown continues a trend which has affected at least ten biodiesel plants worldwide.

Last month, the Freedom Fuels biodiesel plant in Mason City has shut down production due to the high cost of soybean oil. The plant has a capacity of 30 Mgy of biodiesel, and hopes to resume production in November. Four people were laid off from their jobs as a result of the shut down. Rising soybean prices shuttered two Texas biodiesel plants. Grainnet.com reported last month on two plant shutdowns in Pennsylvania, where state production has dropped to 5% of capacity.

In Australia, all biodiesel production activity has halted, and major German producers are slowing or closing die to high feedstock prices and the impact of US biodiesel exports, which receive a state subsidy, on European prices.

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