18 August 2011 20:41 [Source: ICIS news]
HOUSTON (ICIS)--US biodiesel production hit 81m gal (307m litres) in June and is on track to keep that pace in forward months, the National Biodiesel Board (NBB) said on Thursday.
“Production is on target to stay at this pace the remainder of the year,” an NBB spokesperson said.
June’s production output was higher than in April and May, both of which were in the 70m gal range, according to the NBB.
The industry got off to a slow start in January, following the late December reinstatement of the critical $1/gal federal blender tax credit that was also made retroactive to 2010.
The industry welcomed the tax credit reinstatement, but has worked hard to pull itself up from less than an approximated 15% production capacity utilisation.
According to the NBB, there are 180 plants now registered under the RFS2 (Renewable Fuel Standard 2) of the US Environmental Protection Agency (EPA), with an overall production capacity of 2.3bn gal/year.
How many of these plants are actually operating remains a question.
“We really do not know exactly,” the NBB admitted.
The EPA has established an 800m gal biodiesel production mandate for 2011. According to the NBB, 379m gal of biodiesel have been produced for the year through June.
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