Biodiesel producers lose $1 a gallon tax credit

Bad start to 2010 after ‘rough year’ for entire biofuel industry

OKLAHOMA CITY – An alternative fuel for diesel engines is off to a shaky start this year even though it emits fewer pollutants and cuts down on petroleum use because it’s made from environmentally friendly waste and vegetable oil.

A federal tax credit that provided makers of biodiesel $1 for every gallon expired Friday. As a result, some U.S. producers say they will shut down without the government subsidy.

Biodiesel’s woes come on top of a year of problems for the fledgling biofuel industry