reality sets in

ie - there is no such thing as a 'cheap' feedstock for biofuel production. Cellulosic is the only way forward ...

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Rain and overseas demand causes tallow price increase

Wednesday, 06/06/2007

Biodiesel plants across Australia are paying historically high prices for tallow, or rendered animal fat.

Traditionally it is the cheapest feedstock available to produce biodiesel but increased international demand and recent rain in Australia has seen prices jump $300 a tonne in the past month.

Australian Renewable Fuel uses tallow in plants in Western Australia and South Australia and chief executive John Lilleywhite says he has never seen prices this high.

"At the moment Tallow is being used throughout Asia as an input to soap while Palm Oil prices remain high and also in Australia it seems as though there is less animals going to slaughter as farmers restock after good rains in some of the east coast agricultural regions," he said.

"We factored in these prices to be in the market for a couple of months but obviously we'd like a return to historical averages as soon as possible."

http://www.abc.net.au/rural/news/content/2006/s1943940.htm