Interesting post on Xeconomy blog looking at the situation at Imperium Renewables. While I’m not able to comment on the comapny’s situation, some of the issues facing the business of biodiesel in the US look pretty stark in the article. The most worrying is the quote from Michael Butler, chairman of Seattle-based Cascadia Capital and a leading cleantech supporter,he places the blame for Imperium’s woes squarely on the biodiesel market.
”The cost of input–primarily soy and corn–costs too much given theprice they get for their biodiesel,” says Butler.
If that’s your problem, then you need to cut costs in your process as much as possible, or if you’ve got the financial muscle, integrate downstream into raw material production and upstream into distribution. It can be very uncomfortable sitting in the middle.