Biodiesel from soybeans costs an
estimated $2 to $2.50 per gallon to produce.
Biodiesel from yellow grease is about $1
a gallon cheaper, but the available supply
in the U.S. is much smaller – enough
to make 100 million gallons per year.
Producers of biodiesel from pure vegetable
oil are eligible for a federal excise tax
credit of $1 for every gallon blended with
conventional diesel.
Biodiesel from used cooking oil earns a
credit of 50 cents per gallon.
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