http://www.agrinews-pubs.com/farm_equipment/biodiesel-sees-record-use-in/article_21308954-05c1-52ab-a4b6-1bef9757a42a.html
Biodiesel sees record use in 2016
Feb 6, 2017
JEFFERSON CITY, Mo. — U.S. consumers saw a record of almost 2.9 billion
gallons of biodiesel and renewable diesel in 2016, outpacing the
previous record by almost 40 percent. Also for the first time, the
monthly market topped 300 million gallons, with December’s numbers
coming in at 362 million gallons.
“We are proud to be delivering record gallons of American-made
biodiesel, but that success is undermined by the fact our members are
losing more than a third of the market to foreign imports,” said
National Biodiesel Board CEO Donnell Rehagen.
According to numbers released Jan. 19 by the EPA, the 2.9 billion
gallons was an increase of 800 million gallons from 2.1 billion gallons
of biodiesel and renewable diesel in 2015. At the same time domestic
production rose from about 1.4 billion gallons in 2015 to more than 1.8
billion gallons in 2016, well below available capacity. Imports
increased by more than 50 percent from an estimated 670 million gallons
in 2015 to more than 1 billion gallons in 2016, shortchanging potential
economic benefits to U.S. producers.
“The market realities spotlight two important points. First the RFS is
working to deliver energy choices to consumers and promote local
economic activity. Second that reforming the biodiesel tax incentive as
a domestic production credit remains critical to grow these programs in
America’s best interest,” Rehagen said.
According to a study conducted by LMC International, a 2.9 billion
gallon biodiesel and renewable diesel market divided between domestic
and foreign supply supports about 64,000 U.S. jobs and $11.42 billion in
total impact. Economic benefits increase substantially with growing
domestic production, rather than imports. For example, just 2.5 billion
gallons domestic production would support at least 81,600 U.S. jobs and
$14.7 billion in total economic benefit.
“It’s just common sense that our tax dollars should benefit American
jobs and local companies instead of incentivizing imports,” Rehagen said.
The biomass-based diesel category under the RFS alone saw a record 2.6
billion gallon market, allowing the advanced biofuel program to reach
more than 4 billion ethanol-equivalent gallons. These numbers exceeded
EPA’s estimates for 2016, and track the board’s projections, showing the
industry can deliver on the goals set by Congress.