US biodiesel will follow petro model - producer

28 June 2007 19:17  [Source: ICIS news]

HOUSTON (ICIS news)--The US biodiesel market structure will follow that of the petroleum diesel and refining market, a renewable energy company executive said on Thursday.

Speaking at the Platts Biodiesel Investor conference in Houston, Standard Renewable Energy chief executive and chairman John Berger said the biodiesel industry is capital intensive like the petroleum energy model.

“Biodiesel is materially different than ethanol,” Berger said. “This business [biodiesel] will have to follow the petro market because it’s more similar to it than it is to the ethanol market.”

He added that biodiesel producers would need to realise the importance of location and logistics in the same way petroleum refiners have done in order to stay in business. 

Galveston Bay Biodiesel in Galveston, Texas, is Standard Renewable Energy’s first project, according to Berger. The project is part of a joint venture with Chevron that includes ramping up the plant’s current capacity of 20m gal (76m litres)/year to 100m gal/year.

By: Judith Taylor
+1 713 525 2653

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