By Todd Neeley
DTN Staff Reporter
OMAHA (DTN) â€” Despite the biofuels industry operating on thin margins and dealing with federal policy uncertainty in 2019, the number of mergers and acquisitions in the industry was historically low last year, according to a new report from an investment bank focused on biofuels transactions.
Overproduction in the ethanol industry, as well EPAâ€™s continued issuance of small-refinery exemptions last year, led to the idling of at least 20 ethanol plants. The biodiesel industry struggled as well from the expiration of the biodiesel blenders tax credit and SREs.
According to a report from Ocean Park, based in Los Angeles, the industry continued to hold on to assets despite all the struggles in 2019.
“No large-scale, operating biofuels plants changed hands â€” which is rare for the biofuels M&A market,” Ocean Park said.
Just four operating biodiesel, ethanol and advanced biofuels plants, combined, were sold in 2019, with a combined capacity of just 133 million gallons per year.