Tuesday, December 06, 2011
Calling all Biodiesel Producers
Congress’ on-off support of biodiesel-renewable diesel has left the industry in a state of uncertainty at least in terms of long-term planning. As we noted in the two previous posts, federal tax incentives are set to expire once again at the end of December 2011. We have already had a chance to observe the impact of tax incentive sunset in 2010, which was a year of reduced production compared to the 2009 the last time the tax incentives had been in place. Reinstatement of the incentives led to a banner production year in 2011.
The National Biofuels Bureau claims over 160 member-producers ranging from the large producers such as Cargill and Archer Daniels Midland (ADM: NYSE) to small-fry such as Amerigreen Biofuel (private) based in Pennsylvania. The question is: are they still in business? We decided to try to track down the various biodiesel and renewable diesel producers to find out which ones are still in business and the general view on 2012 production and sales in an “incentive-less” world.
Our fingers are crossed for a better response than our effort to review algae-based biofuel production capacity and yield achievement. That was a flat 0% response rate.
Neither the author of the Small Cap Strategist web log, Crystal Equity Research nor its affiliates have a beneficial interest in the companies mentioned herein.