Rising soybean oil prices stall US biodiesel

THE fledgling US biodiesel industry may have stalled as rising prices make soybean oil too expensive.

“Two years ago soy oil was in the low 20s (cents per pound),” says Ed Ulch, a soybean farmer from Solon, Iowa. “Now it’s 52 cents per pound. The break-even price for these biodiesel plants is 43 cents.”

The industry is exploring feedstocks made from other sources, such as canola (rapeseed). Many biodiesel plants are scrambling to incorporate animal fat, or spent fryer grease from restaurants.

“We might as well face up to it - I don’t think we’re going to supply the needs to furnish all the feedstocks to the biodiesel industry,” he adds. “If we can supply enough to take care of excess soy oil and keep the price up, we should be happy with that.”