The Biodiesel Profitability Squeeze

We begin by briefly reviewing data on renewable diesel and FAME biodiesel production trends in recent years.Figure 1 shows monthly U.S. renewable diesel and FAME (fatty acid methyl ester) biodiesel production from January 2011 through January 2023.FAME biodiesel production reached a monthly peak of 172 million gallons in August 2018, but it has drifted lower ever since.Driven by the opening of a number of new plants (farmdoc daily, March 8, 2023), renewable diesel production took off starting 20