Surpassing the mandate

2011 is not only shattering the biodiesel industry's previous record year of 690 million gallons, but it's also proving that the mandate is truly a floor and not a ceiling.
By Ron Kotrba | December 28, 2011

The U.S. EPA reported last Thursday that nearly 108 million gallons of biomass-based diesel was sold during the month of November, continuing a record year of production.

Biodiesel production specifically reached an all-time high of 908 million gallons through the end of November, according to annual figures compiled by the EPA. If December figures are similar to November’s, then we’re looking at more than a billion gallons of production in 2011. The previous annual record for biodiesel production was 690 million gallons in 2008.

RFS2 only requires that 800 million gallons be used in the U.S. diesel fuel pool in 2011, so are obligated parties blending more than is required of them this year in order to carry the excess over into next year (up to 20 percent) in anticipation of the tax credit being gone, and blend economics being less attractive?