Biodiesel plants cease operations without tax incentives

Jan. 22, 2010 - - With the U.S. Senate having so far failed to extend the $1-per-gallon biodiesel blender’s tax credit, most biodiesel plants have ceased operations, according to Michael Frohlich, director of communications for the National Biodiesel Board (NBB). “Pretty much every plant is idle,” he said. Frohlich thinks some larger biodiesel plants might wait before releasing all employees in hopes that Congress will take action soon. Congress might address the issue in February or March, according to some lawmakers. Even with the federal tax incentives, the biodiesel industry was already having financial troubles. U.S. biodiesel production was down 31 percent last year compared with 2008 due to a lack of profitability. Nationwide, last year’s capacity utilization was only 15 percent.