US Biofuels Industry Expected to Consolidate

[cacofonix]

The US biofuels industry is expected to undergo consolidation in 2009, with many of ethanol and biodiesel plants either closing or being absorbed by a few larger players who will dominate the market.

The US has 171 biodiesel refineries with estimated capacity at more than 2.4bn gal/year, well ahead of the 6m gal/year mandated by the US government for 2009.

With domestic renewable fuel infrastructure relatively underdeveloped and Europe taking an increasingly aggressive stance against US biodiesel imports, many analysts consider the US market oversupplied.

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