02 March 2010 16:45 [Source: ICIS news]
HOUSTON (ICIS news)--US Senate Democrats introduced a bill that would reinstate a blending tax credit that the biodiesel industry says is needed to restart production, sources said on Tuesday.
The $1/gal blending credit was part of a legislative package sponsored by Senate Majority Leader Harry Reid (Democrat-Nevada) and Senator Max Baucus (Democrat-Montana). It would apply retroactively to 1 January 2010 and expire at the end of this year.
Biodiesel producers said the credit’s expiration on 31 December 2009 halted sales as the renewable fuel became more expensive than petroleum-based diesel. Many refiners stopped producing, while some laid off employees.
Pure soy-based biodiesel (SME) was assessed at $3.34-3.44/gal on 25 February, according to global chemical market intelligence service ICIS pricing. Petroleum-based diesel prices were 2.86/gal on 1 March, according to the US Energy Information Administration (EIA).
There are about 171 biodiesel refiners in the US with a combined capacity of 2.7bn gal/year, according to the latest data from the National Biodiesel Board (NBB).
($1 = €0.74)
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