Slight price change would give biodiesel edge over Brazilian ethanol

01/10/2013 | Farmdoc Daily (University of Illinois)

Current prices indicate that the return of the biodiesel blender's tax credit is not enough to erase the advantage of Brazilian ethanol in meeting this year's undifferentiated advanced biofuel requirement under the Renewable Fuel Standard, according to Scott Irwin and Darrel Good, economists at the University of Illinois. However, a reduction of as little as 25 cents in biodiesel prices "would flip the economics of RFS advanced biofuels compliance in favor of biodiesel," Irwin and Good note.

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Farmdoc Daily (University of Illinois)

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