# Biodiesel Industry Bleeds Red in 2021 While Renewable Diesel Production Explodes

> A University of Illinois analysis estimates the representative US biodiesel plant lost $18.3 million in 2021, a -77.5% return to equity, and the industry lost roughly $987 million. The losses came from soybean oil costs that outpaced biodiesel prices, which were driven by a policy-fueled boom in renewable diesel.

- Date: 2022-02-17 · published 2022-02-17T12:00:00.000Z
- Category: report · region US · magnitude low
- Page: https://feedsoft.ai/events/42786-biodiesel-industry-bleeds-red-in-2021-while-renewable-diesel-production-explodes
- Commodities: [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

Persistent losses at soy-based biodiesel plants reduce soybean oil demand from the biofuel sector, while growth in renewable diesel keeps competing for feedstock. Net effect is a structural tug on soyoil and vegetable oil prices.

## Read by commodity

- SBO: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SBO | 2020-04-30 | [US biodiesel production falls by 2 million gallons in February](https://feedsoft.ai/events/53734-us-biodiesel-production-falls-by-2-million-gallons-in-february.md) | -1.0% | +6.2% |
| SBO | 2020-06-02 | [Renewable diesel drives growth in 2019 biomass-based diesel imports -
		U.S. Energy Information Administration (EIA)](https://feedsoft.ai/events/52475-renewable-diesel-drives-growth-in-2019-biomass-based-diesel-imports-u-s-energy.md) | +1.8% | +0.1% |
| SBO | 2022-02-17 | [US biodiesel industry walloped in 2021 with potential aggregate loss of nearly $1 billion](https://feedsoft.ai/events/42788-us-biodiesel-industry-walloped-in-2021-with-potential-aggregate-loss-of-nearly.md) | +6.8% | +4.4% |
| SBO | 2024-08-12 | [August WASDE maintains forecast for 2024-’25 soybean oil use in biofuel production  \| Biodiesel Magazine](https://feedsoft.ai/events/28877-august-wasde-maintains-forecast-for-2024-25-soybean-oil-use-in-biofuel.md) | -5.1% | -2.1% |
| SBO | 2025-08-13 | [August WASDE maintains outlook for 2025-’26 soybean oil use in biofuel production  \| Biodiesel Magazine](https://feedsoft.ai/events/23409-august-wasde-maintains-outlook-for-2025-26-soybean-oil-use-in-biofuel.md) | -3.0% | -4.1% |

## Sources

- dtnpf.com: https://www.dtnpf.com/agriculture/web/ag/news/business-inputs/article/2022/02/17/biodiesel-industry-bleeds-red-2021

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.