Until recently, the soft U.S. biofuels market had been offset by demand in the European market, where mandated biodiesel markets had made biodiesel competitive. This advantage ended on March 3 of this year when the European Union enacted tariffs on imported US produced biodiesel.
“This confluence of market-driven and geopolitical events has made it very difficult to operate our business as we had planned. The failure in implementation of US policy initiatives such as the Renewable Fuel Standard which was enacted by the Energy Independence and Security Act of 2007 (H.R. 6) has further deteriorated the market.” said Plaza.
“Despite these challenges, we remain hopeful that there will be a strong future for biodiesel given the Obama administration’s leadership on renewable energy,” he continued. “He has called for doubling renewable energy consumption in the next three years, enforcing the existing renewable fuel mandates, and enacting future biofuel-friendly policies such as low-carbon fuel standards and a carbon emission cap and trade system. Such forward thinking policies will be required to create a stable market for current and next generation biofuels.”
About Imperium Renewables
Imperium Renewables is a producer of biodiesel. Its flagship facility in Grays Harbor has an operating capacity of 100 million gallons per year, and is the largest BQ-9000 certified facility in the United States. Biodiesel is a clean-burning alternative fuel made from oils derived from farm crops, and can be used in any conventional diesel engine. It can be used in pure form (100 percent biodiesel) or in a “blended” form, in which it replaces a percentage of petroleum diesel.