US biodiesel industry has broken 1 billion gallon mark

For the second year in a row, the US biodiesel industry has broken the one billion gallon mark.

Indeed, according to the US Environmental Protection Agency (EPA), the amount of biodiesel produced was six million gallons more in 2012 compared to 2011.

"These numbers reflect the ongoing growth and development of our industry and represent real jobs at plants across the country," said Anne Steckel, vice president of federal affairs for the National Biodiesel Board, the industry trade association.

"Biodiesel continues to account for the vast majority of the nation's advanced biofuel production and is playing a significant role in diversifying our energy supplies with clean, American-made fuel."

Production was particularly high in May of 2012, when companies generated nearly 115 million gallons of biodiesel.

However, there has been some criticism about what could have happened had the US government renewed the biodiesel tax incentive sooner. In the end, Congress ultimately renewed the $1 per gallon incentive on New Year's Day as part of the "fiscal cliff" legislation.

Owing to the delay, December was the lowest monthly volume of the year, totalling just 59 million gallons.

The whole latter part of the year suffered an almost month-to-month decline, with November seeing just 69 million gallons.

"It's difficult not to wonder how much additional production and jobs could have been created if the biodiesel tax incentive had remained in place in 2012," Ms Steckel said.

"It was a missed opportunity that significantly hurt many producers. But we are pleased that Congress reinstated the tax credit earlier this month and we expect significant growth in 2013."

Biodiesel is an advanced biofuel made from soybean oil, animal fats or used cooking oil and has long been thought of as one of America's greatest industries.