Ethanol Blog

Demand for biodiesel remains strong, underpinned by a combination of the 2013 Renewable Fuel Standard blending mandate of 1.28 billion gallons and $1 gallon tax credit reinstated this year.

"As long as we have this RFS2 and requirements related to it, demand continues to be very strong," Pete Moss, president of Frazier Barnes of Memphis, Tennessee said this morning.

U.S. biomass-based diesel production was at nearly 700 million gallons after six months of production, according to the Environmental Protection Agency monthly data, more than halfway to the renewable volume obligation. This year's biomass-based diesel RVO, finalized Aug. 6 by EPA, is up from last year's 1.0 billion gallons.

"I think there's a pretty safe assumption that we're going to meet (the 2013 blending) requirements for biomass-based diesel," Moss said.

He said physical biodiesel prices have been "sideways" for the past two months -- range bound within a 15 to 20 cents range -- indicating stable demand.

Myke Feinman can be reached at myke.feinman@telventdtn.com.

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