Biodiesel industry consolidation increases ahead of blending credit expiry

In Minnesota, Ocean Park Advisors said that as biodiesel blending credits near expiry, biodiesel producers need to have strong balance sheets to weather the storm until they are renewed, followed by a burst of profit that makes the whole hassle worthwhile. As such, it is typically a period of consolidation in the industry in the run up to expiry, as is expected for the end of this year. At the moment, just 10 producers own 62% of installed production capacity at 28% of the plants nationwide.

Category: Fuels