U.S. Government Axes “Renewable Diesel” Tax Credit
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.
