Currently production capacity is 580MM gallons; an additional 1,400MM gallons are expected to be produced within the next 18 months, bringing the total supply around 2 billion gallons annually. Demand is very heavy due to government tax incentives and regulations, however at some point the market price of biodiesel has to decrease as consolidation in the supply market (like Exxon) will drive prices lower. Currently price of biodiesel is around $2.75/gallon. What is the impact of supply oversaturation in the biodiesel price?
Originally posted 2008-11-28 14:04:33.
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