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Biodiesel US

US biodiesel tax credit change favours US producers

US biodiesel producers won a major leg up at the expense of biodiesel importers as the Senate Finance Committee overwhelmingly passed an amended tax extenders’ bill Tuesday.
The altered legislation would shift the existing $1/gal biodiesel blenders’ credit to US producers from the beginning of 2016 after extending the tax credit in its existing form retroactively for 2015. The move would automatically improve US producers’ economics while tilting the US market against imported biodiesel. Shipments of RIN-qualified Argentinian biodiesel have been rising steadily to the US this summer as slumping prices have hammered domestic producers’ margins.
Neste was one major beneficiary of the retroactive extension of the existing blenders’ credit late last year, booking EUR89mn in additional fourth quarter margin thanks to the credit on its US-bound shipments of mainly Singaporean HVO.
The amended bill will need to pass scrutiny in front of the full Senate and House before it can become law.

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