The Economics of Biodiesel in 2007

Study Shows Biodiesel Will Add $24 Billion to U.S. Economy

WASHINGTON, Dec. 29, 2006 - America's biodiesel industry will add $24 billion to the U.S. economy between 2005 and 2015, according to a study by the National Biodiesel Board. The figure foresees biodiesel growth reaching 650 million gallons of annual production by 2015. There are 88 plants in the nation producing an estimated 200 - 250 million gallons of biodiesel in 2006. That’s triple last year’s production of 75 million gallons.

The economic analysis, conducted by John M. Urbanchuk of LECG and funded by the soybean checkoff through the United Soybean Board, also found that biodiesel production will create a projected 39,102 new jobs in all sectors of the economy.

Additional tax revenues from biodiesel production will more than pay for the federal tax incentives provided to the industry, concluded Urbanchuk. It will keep $13.6 billion in America that would otherwise be spent on foreign oil. This total impact of biodiesel on the economy includes the temporary impacts of construction, the permanent impacts of annual production and the direct value of biodiesel and co-products (glycerin).