Biodiesel manufacturer could close
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GREENSBORO -- A Greensboro biodiesel company is falling on tough times after a government subsidy ran out in December and the sale of their product dropped. Patriot Biodiesel started back in 2008 with hopes of turning vegetable oil into alternative fuel. But now, company leader's aren't sure how much longer they can last like this.
“This building was buzzing. It was every motor, every pump was just going crazy,” said Gabe Neeriemer, co-owner of Patriot Biodiesel.
But now, most of the time these machines are kept off. Not because they can't make biodiesel, but because there is no one to buy it. “People aren't buying biodiesel, not because they don't like biodiesel but because the price is too high, much higher than the price of diesel now,” Neeriemer said. “Our price stays the same, no matter what's going on with the price of diesel, and the price of diesel has dropped considerably.”
Add to that a $1 federal tax credit that wasn't renewed and this local business is struggling to survive. “We don't rely on the tax credit to be profitable,” Neeriemer said. “But we use the tax credit to offset the government regulations and taxes already placed on fuel.”
Officials say the benefits of using biodiesel are clear. “This is one of the major things that can help that can help the environment. Biodiesel, you reduce emissions, you cut down on a lot of the factors that are causing the ozone layer to deteriorate,” Patriot Biodiesel co-owner Brad Duncan said.
But if things don't change, Neeriemer says the industry could be in big trouble. “Every biodiesel company in the nation is struggling right now," he said. "Most have closed their doors, 80 percent of biodiesel refineries have shut down and the 20 percent that are still open are operating under 50 percent capacity. Most are operating under 20 percent capacity, just enough to keep the doors open.”
As for Patriot Biodiesel, the next few weeks will determine whether or not they'll close their doors too.