Industry Update Scott Hughes Director, Governmental Affairs National Biodiesel Board
Feb 01, 2016
Industry Update
Scott HughesDirector, Governmental Affairs
National Biodiesel Board
Dramatic Growth Biodiesel production has doubled year
over year for the past two years.
Anticipate seeing continued strong growth into the foreseeable future.
Estimated US Biodiesel Production
0.5 2 515
2025
75
0
10
20
30
40
50
60
70
80
Mill
ion
s o
f G
allo
ns
1999 2000 2001 2002 2003 2004 2005
Estimated US Biodiesel Production
0.5 2 515 20 25
75
150
0
20
40
60
80
100
120
140
160
Mill
ion
s o
f G
allo
ns
1999 2000 2001 2002 2003 2004 2005 2006
2006 est.
Production Locations (4/28/06)
BQ-9000 Accredited Producers
65 Plants
Biodiesel Plants Under Construction & Expansion (4/28/06)
No Window
Plant Status
Construction (50)Expansion (8)
Industry Growth Drivers Public Policy
Tax Incentive (or others) ULSD RFS State Policies
Crude oil price Feedstock prices Economies of Scale Distribution Costs
Federal Tax Incentives Federal volumetric tax credit has
been the primary stimulant for industry growth.
Set to sunset in 2008. Extension is our top priority. Industry is working with stakeholders
& members of Congress to extend the credit for at least 2 years.
Summary Strong interest in biofuels to enhance
energy security, economic benefits, and environmental benefits.
Anticipate continued strong interest & growth.
A vibrant biofuels industry will have a direct positive impact on our national energy security, economy, and environment.
For more information about biodiesel, visit the NBB’s
website:
www.biodiesel.org