Ethanol Blog

U.S. biodiesel production is expected to remain at its current pace or may slow before the end of this year, even with an increase in the annual Renewable Volume Obligation.

The industry has already produced 97% of the proposed annual mandated blending volume of 1.28 billion gallons at 1.247 billion gallons of biomass-based diesel in the first three quarters of 2014.

The RVO is now 11 months late, due by statute by the end of November of the previous year.

Analysts project a modest increase in the mandate when the Environmental Protection Agency releases its finalized version for the 2014 RVO, but Jerrod Kitt, Linn Group Strategist based in Chicago, Illinois, said at the current production pace, a slight bump above 1.28 billion gallons won't matter.

"The only way to shock this market is if the mandate [is finalized] above 1.5 billion," Kitt explained.

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

(ES)

© Copyright 2014 DTN/The Progressive Farmer. All rights reserved.