Central Iowa Energy's new 30-million gallon biodiesel facility near Newton, Iowa (photo by Dan Looker).Dan Looker, who in my view covers biofuels issues as well as anyone in the business, walked into my office last Thursday with a just bit of an attitude, and some self-deprecating humor. We had been less than prompt in posting his new story on the opening of a new biodiesel plant in Iowa. The $20 million facility near Newton is "one of the largest and most efficient biodiesel plants in the nation," Dan wrote. But a big question mark hangs over the facility and the whole industry, in fact.
Anyway, Dan clearly had enjoyed working on the story and was eager to see it online. It had been filed late in the afternoon, but wasn't posted until early evening. We should have had it live in ten minutes. If you follow this industry at all--as a farmer, investor, or consumer of biofuels, it's certainly a must-read story.
Dan captures the central issue of the day in this fledgling business: "The soybean oil that can make up to about 80% of a typical plant's production costs is approaching record prices, at a time when the soybean crushing industry is almost swimming in a record supply of oil."
The law of supply and demand has taken an odd twist here, one that Dan follows with the clear eye of a great reporter.
Check it out on Agriculture Online: Will biodiesel flounder in a sea of soybean oil?
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