IBF Market

The biodiesel market is in a rapid growth phase resulting from to the strong government incentives and mandates and all the recent publicity for global climate change. There is a very strong demand for biofuels. However, the biodiesel distribution network is currently extremely fragmented as many new bio-refineries are coming on line. In addition, many customers who have never purchased biofuels before are entering the market. As a result, these customers have difficulty understanding the market and often cannot find the products they require. With the exception of one other, to our knowledge there are no other regional or national distributors and, especially on the West Coast, customer demands are often unmet.

Recent government acts encourage biodiesel use: tax credits from 50 cents to $1 per gallon of agri-biodiesel, the renewable fuel standard that will require the use of 7.5 billion gallons of renewable fuel by 2012, and a new EPA rule that requires sulfur in diesel to be reduced from 500ppm to 15ppm (97% reduction). Biodiesel contains significantly less sulfur than conventional diesel fuel and it provides superior lubricity in low blends.