US biodiesel depends on location, logistics

28 June 2007 20:45  [Source: ICIS news]

By Judith Taylor

HOUSTON (ICIS news)--Location is becoming critical to the future of the US biodiesel industry, US producers said on Thursday.

“The US biodiesel market is largely an export market right now,” said John Berger, chief executive and chairman of Standard Renewable Energy.

“With so much of the soy methyl ester (SME) production done in the midwest, it makes the logistics part harder in getting biodiesel to the export markets along the coasts,” another producer said at the Platt’s Biodiesel conference in Houston. .

“Biodiesel producers will look to the petroleum model,” another supplier said. “There’s a reason there is so much oil and refining business along the Gulf coast,” he said. “It is cost effective.”

“Deep water port facilities will make the difference for biodiesel,” another supplier said.

When asked about possibilities for a biodiesel pipeline to facilitate logistics, a representative of World Energy Biodiesel said, “it is not good.” However, a representative from Standard Renewable Energy said a combination of biodiesel with petroleum diesel could offer options.

According to the National Biodiesel Board (NBB), the US has about 149 biodiesel plants, mostly clustered in the midwest and southeast.
By: Judith Taylor
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