Biodiesel Supporters Urge Congress for Incentives - 5/28/06 - BioDiesel

Biodiesel supporters are urging congress to extend existing programs that will continue to support the growth of using soybeans to produce biodiesel. Tax incentives and small producer credits will expire the end of 2008 unless Congress extends the programs. The American Soybean Association hosted a conference urging Congress to extend these programs. They believe these are two key programs that have fueled the biodiesel industry. U.S. Representative Collin Peterson believes these incentives are important because it makes financing biodiesel plants more difficult with these incentives.

Boosting fuel supplies with biodiesel should have a good impact on fuel prices. Ag Processing Inc. is a biodiesel pioneer with operating plants that plan to expand production to 58 million gallons of biodiesel annually. Biodiesel is made here in the U.S. from home grown soybeans. Biodiesel improves air quality and is good for rural economies.

Production of biodiesel has grown from 2 million gallons in 2000 to 150 million gallons in 2006. Soybean farmers are ready to fill the need for biodiesel said ASA president Bob Metz. There is about 100 million gallons of dedicated biodiesel capacity, 50 million of swing capacity and 115 million gallons in capacity under construction. This will mean within 12 to 18 months there will be capacity to convert 2 billion pounds soybean oil into biodiesel. Biodiesel plants are not as expensive to build as ethanol plants.

Congressman Peterson said Brazil and Europe are far ahead of the U.S. in biodiesel use. He believed Congress is shortsighted focusing on the crisis at the moment and not at the long run solution. He said “All we can do is keep plugging away, doing things like we’re doing here today to try to get the word out to the public”.

Source: http://www.agrinewspubs.com/Main.asp?SectionID=1&SubSectionID=207&ArticleID=10177

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