A Brief Synopsis of the Biodiesel Industry

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November 9, 2006 - William A Knudson

Introduction

This brief paper outlines current policies designed to promote the use of biodiesel as well as the potential demand for biodiesel and market outlets for biodiesel. The increasing price of soybean oil has reduced the profitability of biodiesel. Also, variations in the price of petroleum have also affected the biodiesel market. However, outlets for biodiesel remain.


Sales to schools and other types of fleets show the most promise, as well as the increased interest in low sulfur diesel fuel. A biodiesel producer will need to have customers lined up and contracts signed in order to insure a market for its product.

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