2010 Looks to Be a Tough Year for Biodiesel

The federal tax credit that gave $1 per gallon to producers of biodiesel expired on January 1.

As a result, 2010 could be an even tougher year for the industry than 2009–a year in which biodiesel makers suffered due to heavy import tariffs imposed by the European Union and a steep drop in the price of traditional diesel.

The biodiesel industry is currently operating at only 15% of its potential capacity, according to the National Biodiesel Board.

A one-year extension of the biodiesel tax credit was included in a bill that was approved by the U.S. House recently, but it never made it through the Senate.

Read the ful Washington Post story at the link below.