Is biofuel industry boom going bust?

Distribution, capacity woes, growing costs dim prospects

By Nancy Cole

LITTLE ROCK — The fledgling U.S. biodiesel industry is struggling to cope with soaring soybean-oil prices, a glut of production capacity and a poorly developed distribution system.

One of Arkansas' two biodiesel producers operates only seasonally, yet four new plants are scheduled to open during the first half of 2008, adding more than 63 million gallons of annual production capacity to the existing potential of 27 million gallons.

Industry experts say a shakeout is inevitable, with many plants closing and others operating at well below their production capacities.

For more information see today's Arkansas Democrat-Gazette.

Subscribers can read the story here on ArkansasOnline.