This is an excerpt from EERE Network News, a weekly electronic newsletter.

November 30, 2005

Biodiesel Production Expected to Triple in 2005

The National Biodiesel Board (NBB) announced in early November that it anticipates 75 million gallons of biodiesel production in 2005, three times as much as produced in 2004. NBB credits a federal tax incentive, state legislation, and a diesel shortage for the rise in demand. According to NBB, there are currently 45 biodiesel production plants, each averaging about 6.5 million gallons per year, although some of the latest plants weigh in with capacities at about 30 million gallons per year. To keep up with growing demand, developers have proposed building another 54 biodiesel plants. See the NBB press release (PDF 27 KB). Download Adobe Reader.

A number of companies have announced biodiesel production plans in recent months. TexCom, Inc. is planning to build two plants—each with a capacity of 30 million gallons per year—in the Texas cities of Seabrook and Corpus Christi. Both plants will produce biodiesel from soybean oil and both should be operating by the end of 2006. Archer Daniels Midland Company (ADM) plans to build a 50-million-gallon-per-year facility in Velva, North Dakota, producing biodiesel from canola oil. See the October 3rd and November 10th press releases from TexCom and the ADM press release.