Ormat backs away from its $1.8m biodiesel investment

After investing $1.8 million in a biodiesel plant (out of a planned investment of beween $35 and 50 million), Ormat Industries will be postponing further development in the facility. The idea had been to use "high-yield non-edible plants for biodiesel production" at the plant in the plant, but those plants aren't ready yet and soy prices haven't been kind to biodiesel producers. According to Globes Online, Ormat's statement said that the company will continue to focus on developing the the biological plants instead of the production facility. Ormat's stated reasons for the postponement are increased costs (e.g., soy went from $3-4 a bushel to $12 in the past year).
As IBI Investment House analyst Yuval Zehira told Globes Online, "Today, most biodiesel and ethanol companies in the world are losing money because of high commodities prices."

[Source: Globes Online]