By Andi Anderson
Illinois is strengthening its biodiesel industry to create a stable market for domestic soybeans. Companies like Incobrasa Industries are expanding their facilities to nearly double production capacity. This growth reflects the state’s long-term investment in renewable fuel.
Biodiesel is made from soybean oil and offers a cleaner alternative to traditional diesel. Rising diesel prices, along with state tax incentives, have increased its demand. In fact, the company reported that it was shipping biodiesel faster than it could produce it during recent market surges.
Global factors such as the U.S. war with Iran and trade uncertainties have further increased interest in local energy sources.
Illinois, the largest soybean-producing state, has faced fluctuations in exports, especially due to dependence on China. These challenges encouraged farmers and policymakers to focus on local markets.
David Kubik, Illinois Soybean Association’s biofuels and trade policy manager, said, “We’re absolutely looking to use more of our product here, to make sure that we’re insulated from trade instability,” and added, “Regardless of national politics happening around trade, it’s important to diversify these markets.”
The soybean crushing process has helped increase domestic use. It separates soybeans into oil for biodiesel and meal for livestock feed. This not only supports fuel production but also lowers feed costs, helping stabilize meat prices.
In 2022, Illinois introduced a law promoting biodiesel blends. By April, only B20 fuel qualified for sales tax benefits. Kubik stated, “The incentive is pretty strong. 90% of all gallons sold at the retail level are taking advantage.”
State Rep. Charlie Meier, R-Okawville, said, “I’ve burned biodiesel in my tractors and combines for years,” and added, “Why wouldn’t I support the product that’s supporting us?”
Experts say biodiesel cannot fully replace diesel but can help during energy shortages. However, rising costs and tariffs on equipment remain challenges.
Kerry Fogarty, Incobrasa quality control manager, said, “Not just for Incobrasa, but in general for companies trying to expand, tariffs have put an unnecessary financial burden on the company,” and added, “In some cases, this burden actually prohibits growth.”
Photo Credit: gettyimages-kn1
Categories: Illinois, Energy