Multiple sources have indicated that several Midwestern biodiesel facilities are planning to idle production in January, citing growing uncertainty around renewable fuel credits such as the Clean Fuel Production Credit (45Z) and increasingly narrow operating margins.

Additionally, some plants are reportedly stepping away from the feedstock markets entirely, either temporarily for planned maintenance or due to challenges in affording material at current price levels.

One biodiesel producer confirmed they have been out of the market for weeks, citing unsustainable economics. “We’ve seen Q1 bio offers in the high $2’s [per gallon], but with current feedstock prices, we’re not anywhere close to being able to pay for the oil, let alone convert it to fuel,” they said.

This lack of demand has created bearish conditions in the local truck markets, with bids continuing to decline.

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