Soy Energy statement:
Current volatile market conditions and continued production challenges have taken a toll on Soy Energy, LLC and its employees. In order to ensure the long-term health of the business for both our customers and our employees, we have made the difficult decision to temporarily shut down our facility until market conditions improve. Unfortunately, this temporary shutdown has included the layoff of a number of our employees. We value every one of our employees and deeply regret the impact this will have on them.
While this is a major setback for the company, we are hopeful that the market will improve in the coming months. This is as a result of the Obama Administration’s decision to increase the federal Renewable Fuels Standard – 2 biomass-based diesel requirements from 1 billion gallons this year to 1.28 billion gallons in 2013. We anticipate that this will increase the national biodiesel market by almost one-third in 2013, an encouraging development that could help our company next year. In the meantime, we are currently exploring potential options to move the business forward. Soy Energy is a multi-feedstock plant, and hopes to be a leader in the use of inedible corn oil technology. We believe this asset has great potential in the market.
The biofuels industry is going through some significant challenges right now, particularly with the volatile commodities market, and the political environment in Washington, D.C. While the RFS has helped the biodiesel market stay afloat, the 2012 demand has essentially been met. Also, Congress has failed to reinstate the Biodiesel Blenders Tax Credit. Like other plants, Soy Energy is greatly affected by these challenges.
Any shutdown is a painful process for a company and its employees, but we believe it is a necessary step to re-evaluate and attempt to rebuild the company. With the new partnerships we’re currently exploring, it is our hope that Soy Energy can emerge from this challenge stronger than before.
Jeff Oestmann
President & CEO
Soy Energy LLC
