Green Options

Yesterday the U.S. Senate voted to renew a one year extension for renewable energy tax credits worth $18 billion dollars. 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 so-called “renewable diesel” that ConocoPhillips blends with regular diesel (for a look at what renewable diesel is, check out Jason Burroughs comment below).

The legislation enacts a $1 per gallon credit for biodiesel production, but the “renewable diesel” made from waste fat, or tallow, would only be eligible for a 50 cent per gallon credit. According to Tyson and ConocoPhillips, without the $1 per gallon credit for making “renewable diesel” from tallow, their proposed project is a no go.

Texas biodiesel producer GreenHunter Energy says that hurricane damage to its gulf coast refinery — currently the largest in the nation — will take it out of production for 6 to 8 weeks.

The GreenHunter facility is capable of producing 100 million gallons of biodiesel per year (Mgy) using a combination of animal fats and vegetable oils. Prior to Hurricane Ike, they had been ramping up production and last Friday announced that they had achieved a 65 Mgy output. It’s unclear how the hurricane damage will affect their time frame for reaching full capacity.