U.S. Government Axes Biodiesel-From-Waste Tax Credit

Posted by EcoFriendly

Sep 25

Yesterday the U.S. Senate voted to renew a one year extension for renewable energy tax credits worth $18 billion dollars. Conspicuously absent from the package was a tax credit aimed at helping food giant Tyson and oil giant ConocoPhillips turn a profit by converting fats leftover from Tyson’s processing of beef to the biodiesel that ConocoPhillips blends with regular diesel.

The legislation would continue a $1 per gallon credit for other types of biodiesel production, but biodiesel made from waste fat â€” known as tallow â€” would only be eligible for a 50 cent per gallon credit. According to Tyson and ConocoPhillips, without the $1 per gallon credit for making biodiesel from tallow, their proposed biodiesel project is a no go.