NEW YORK, Jan 9 (Reuters) – New Jersey biodiesel producer U.S. Bioenergy of America, Inc, filed for bankruptcy protection this week, the latest bad news for the infant U.S. biodiesel industry,
The company, based in Edison, New Jersey, filed for the protection in the U.S. Bankruptcy Court in Trenton, court records showed.
The company, which has production plants in Colorado, listed debts of $10 million to $50 million and assets of between $1 million and $10 million.
Biodiesel producers have suffered in recent months as prices for soy, the main U.S. feedstock for the alterative fuel, have soared. Soy prices hit a record of over $13 a bushel this week on global demand for vegetable oils for food and fuels.
Still, surging oil prices and government incentives helped the biodiesel industry to triple to about 250 million gallons in sales in 2006, the latest year for which statistics are available.
By comparison, U.S. ethanol industry capacity recently topped 7.5 billion gallons per year. The U.S. government offers $1 per gallon in incentives for biodiesel, which can be blended into motor fuel and heating oil.
Earlier this month, Imperium Renewables, Inc, the largest biodiesel producer on the U.S. West Coast, withdrew its plan for an initial public offering, citing unspecified unfavorable market conditions.
Late last month, Imperium Chairman and CEO Martin Tobias left the Seattle-based company. No explanation was given for his departure.
U.S. Bioenergy did not immediately return phone calls about the filing. (Reporting by Timothy Gardner; Editing by Christian Wiessner)NEW YORK, Jan 9 (Reuters) – New Jersey biodiesel producer U.S. Bioenergy of America, Inc, filed for bankruptcy protection this week, the latest bad news for the infant U.S. biodiesel industry,
The company, based in Edison, New Jersey, filed for the protection in the U.S. Bankruptcy Court in Trenton, court records showed.
The company, which has production plants in Colorado, listed debts of $10 million to $50 million and assets of between $1 million and $10 million.
Biodiesel producers have suffered in recent months as prices for soy, the main U.S. feedstock for the alterative fuel, have soared. Soy prices hit a record of over $13 a bushel this week on global demand for vegetable oils for food and fuels.
Still, surging oil prices and government incentives helped the biodiesel industry to triple to about 250 million gallons in sales in 2006, the latest year for which statistics are available.
By comparison, U.S. ethanol industry capacity recently topped 7.5 billion gallons per year. The U.S. government offers $1 per gallon in incentives for biodiesel, which can be blended into motor fuel and heating oil.
Earlier this month, Imperium Renewables, Inc, the largest biodiesel producer on the U.S. West Coast, withdrew its plan for an initial public offering, citing unspecified unfavorable market conditions.
Late last month, Imperium Chairman and CEO Martin Tobias left the Seattle-based company. No explanation was given for his departure.
U.S. Bioenergy did not immediately return phone calls about the filing. (Reporting by Timothy Gardner; Editing by Christian Wiessner)