US biodiesel production grows in April - EIA

04 August 2009 17:48  [Source: ICIS news]

HOUSTON (ICIS news)--US biodiesel production rose month over month in April for the first time since November 2008, but was still considerably down compared with last year’s levels, the US Energy Information Administration (EIA) said on Tuesday.

US refiners produced 38m gal of biodiesel in April, up 19% from 32m gal in March. However, the amount was down 28% from 53m gal in April 2008.

The biodiesel industry produced 139m gal of fuel from January to April, the EIA said. That figure is 29% below the 196m gal it produced during the first four months of 2008.

Demand for US biodiesel suffered greatly after the EU hoisted heavy tariffs onto it in March in protest of government subsidies the material receives. The EU extended the tariffs for five additional years in July.

The industry has recently benefited from increased sales of lower-cost fatty acid methyl ester (FAME), more states imposing biodiesel mandates and sales of biodiesel blends that fall below the EU tariff guidelines.

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By: Ben Lefebvre
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