Then the European Union imposed new tariffs on imported biodiesel, killing 95 percent of the export market for American producers. Finally, the beginning of a new year meant the expiry of the tax credit. With lower oil prices, biodiesel was no longer financially viable. Heading into 2010, the U.S. biodiesel industry is running at only 15 percent of its capacity, a situation likely to get worse as the year goes on. The House of Representatives passed an extension to the subsidy late in 2009 but it has yet to make it through the Senate. If the extension does get approved, it would still only provide a brief respite, unless oil prices start to rise significantly again.
[Source: Detroit News]