Biodiesel trading has been subdued over the past week, with producers mostly filling contracts. Production economics have soured, and a lack of guidance on the Clean Fuel Production Tax Credit (CFPC) has forced biodiesel producers to forgo feedstock purchases until there is more certainty in the market, Fastmarkets has heard.
“We are not entering into 2025 contracts at this time,” a producer said. “The economics are impossible, and capital isn’t free. Interest rates are higher than net income margins for some, and many can’t afford to run as the Blenders Tax Credit (BTC) becomes the unknown CFPC.”
A truck stop operator said the economic situation had become so difficult that “a handful of suppliers I used to use are now going out of business [and] I know of seven producers who have already shutdown production.”
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01.30.2025
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