The National Biodiesel Board reported that two thirds of the U.S. biodiesel production capacity remains unused due to the economic recession and the decline of oil prices over the past year.

“The global credit crisis, a glut of capacity, lower oil prices and delayed government rules changes on fuel mixes are threatening the viability of two of the three main biofuel sectors — biodiesel and next-generation fuels derived from feedstocks other than food,” according to a Wall Street Journal article by Ann Davis and Russell Gold.

The Wall Street Journal further notes that “[e]thanol, the largest biofuel sector, is also in financial trouble, although longstanding government support will likely protect it.”

Biodiesel and other biofuel producers plan on more lobbying to pressure legislators to pass blending mandates and to extend biodiesel tax credits which expire in December.

Read more at http://online.wsj.com/article/SB125133578177462487.html

Photo: http://www.flickr.com/photos/jsbarrie/280557626/

—K.J.Collins