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domesticfuel.com has several recent posts on profitablity and the futur of ethanol, biofuels and the possible reinstatement of the fuel tax credit.

Grassley Looks for Biodiesel Credit Renewal in Feb.
Comment on this post Posted by John Davis – January 29th, 2010
One of the biggest advocates for renewal of the $1-a-gallon federal biodiesel blender’s tax incentive looks for renewal of the credit sometime next month.

Agriculture.com reports that Iowa Senator Chuck Grassley has been working with the Chairman of the Senate Finance Committee, Max Baucus to get it restored very soon:

“It would be my hope that we would have this to the president by the week we take off for town meeting recesses — president’s holiday,” he told Agriculture.com on Tuesday.

Late last year the House of Representatives passed a bill extending several tax credits, including the $1-a-gallon biodiesel credit that helps make the soybean-based fuel competitive with diesel. But the Senate, unable to reach an agreement on the federal estate tax, failed to renew the biodiesel tax credit which expired at the end of 2009.

Grassley, of Iowa, is the top ranking Republican on the Finance Committee and seems to have a good working relationship with Baucus, a conservative Democrat from Montana.

Later, Grassley’s press aide, Beth Levine, said in an e-mail message that “Senator Grassley had a long discussion with Senator Baucus about tax extenders, and in particular about the necessity of extending the biodiesel tax credit.

Fellow Iowan Senator Tom Harkin, a Democrat, blames the delay on the Republicans. However, most Washington observers agree that the Senate was too busy debating the unpopular health care bill to get to the biodiesel tax credit. Harkin thinks it could get done by the end of February, but he’s not sure.

related topics: Biodiesel, Government, Legislation

[i]Another Record Month for Ethanol Production
1 Comment Posted by Cindy Zimmerman – January 30th, 2010
November set yet another record for ethanol production in the United States.

According to the latest figures from the Energy Information Administration (EIA), U.S. ethanol production hit a record high in November 2009 of 761,000 barrels per day (b/d). That is a 93,000 barrel increase from the previous year.

Ethanol demand, as calculated by the Renewable Fuels Association, also reached an all time high at 781,000 b/d in November, up from 683,000 b/d a year ago. Ethanol demand is averaging 702,000 b/d through November.

EIA also reports fuel ethanol imports of 12 million gallons in September.

related topics: Ethanol, Ethanol News,

DF Cast: Ethanol, Biodiesel Industries Optimistic on 2010
Comment on this post Posted by John Davis – January 29th, 2010
The new year brings in new hope, and it’s no different for the ethanol and biodiesel industries in this country.

You couldn’t blame the folks who make biofuels in the U.S. if they just wanted to forget about 2009 … especially when you consider the fights over food versus fuel, delays of regulatory implementations that would have helped both ethanol and biodiesel, indirect land use issues, and to cap it off, the loss of the $1-a-gallon federal biodiesel blender’s tax incentive.

But, as I said, a new year brings new hope, and the people who represent ethanol and biodiesel in this country, are hopeful they’ll see a new Renewable Fuels Standard (RFS-2) soon, and the green fuels industries will bounce back.

In this edition of the Domestic Fuel Cast, listen in on my conversations with Tom Buis, the CEO of Growth Energy, a group representing America’s ethanol producers; the Renewable Fuels Association’s Matt Hartwig; and Joe Jobe, Chief Executive Officer of the National Biodiesel Board, as they discuss how they believe each of their respective industries moves forward in 2010.