Australia's biodiesel producers face squeeze

Australia last year commissioned four biodiesel plants with a total capacity of 280 million liters annually, and a fifth plant in Darwin is expected to come on line soon adding another 140 million liters per year of capacity, the Australian Bureau of Agricultural and Resource Economics reported. “Many of the plants currently operational are operating significantly below production capacity and expect to continue doing so over the next year,” the report said. Current concerns for prospective fuel ethanol producers include the rising cost of feedstock, as well as contracts for the supply of biodiesel for blending, the report said. (March 8, 2007)