Read the full article at Capitol News Illinois.
GILMAN – At Incobrasa Industries, one of four soybean processing and biodiesel manufacturing companies in Illinois, a construction project is expected to roughly double the company’s production capacity by mid-June.
The expansion reflects Illinois’ yearslong investment in biodiesel, a renewable fuel made from soybean oil. In April, Incobrasa was shipping out biodiesel faster than it was making it as rising diesel prices and Illinois’ tax incentives drove increased demand, according to the company.
The surge highlights how global oil shocks, brought on by the U.S. war with Iran, and trade uncertainty have increased interest in homegrown energy alternatives.
Illinois, the nation’s largest soybean-producing state, has long depended on China as a major buyer of U.S. soybeans. But sharp swings in exports over the last decade — driven by tariff disputes and growing competition from Brazil — exposed how vulnerable the industry was to geopolitics, pushing Illinois farmers, processors and lawmakers to invest more heavily in domestic markets for the crop.
State Rep. Charlie Meier, R-Okawville, who helps operate his family’s southern Illinois farm, said he saw biodiesel as a way to support soybean farmers, create jobs and promote cleaner fuel alternatives.
“I’ve burned biodiesel in my tractors and combines for years,” Meier said. “Why wouldn’t I support the product that’s supporting us?”
Backed by the Illinois Soybean Association and bipartisan lawmakers including Meier, Illinois passed a bill in 2022 that gradually increased the amount of biodiesel required to qualify for a sales tax exemption for retailers. Beginning in April, only B20 — diesel blended with 20% biodiesel — qualified for the incentive, marking the final step in the law’s implementation.