Biodiesel Report Reveals Strategies for Market Success

Kline, a worldwide consulting and research firm, yesterday announced the launch of a new line of research studies called Kline FlashPoint. The first report, “Biodiesel: Helping to Solve the Oil Crisis, but at What Cost?” offers a strategic overview and assessment of the complex global biodiesel market and provides recommendations for companies that are evaluating their options for participation.

Among the significant issues addressed in the biodiesel report is the consideration of H.R. 2776, the Renewable Energy and Energy Conservation Act of 2007, by the U.S. House of Representatives. The bill, if passed, would extend the $1 per gallon biodiesel blender’s tax credit, which is set to expire at the end of 2008, for another two years. This has participants at all points in the biodiesel value chain paying close attention.

“FlashPoint is an exciting new tool that will help our clients make critical decisions about how they will respond to opportunities and issues that are currently unfolding,” says Nancy Mills, Kline FlashPoint project manager. “These reports will allow clients to be proactive regarding market developments based on the analysis and counsel provided in each report.”

“Several of the large companies have found biodiesel production to be barely economically viable with the tax credit,” Mills adds. “How Congress votes on this issue will have a major impact on the industry.”

Meanwhile, higher growth rates are expected in Asia as countries like Malaysia, Indonesia, and the Philippines are beginning to mandate biofuel usage, which is driving demand for an increase in production capacity. In turn, demand for the native palm and coconut oils are driving up prices to unprecedented levels. Kline’s report explores alternate raw materials that don’t interfere with the food supply or forest lands.

Because of the turmoil in the global market, Mills notes that Kline recommends a vertical integration strategy, perhaps through strategic partnerships that also provide for flexibility, as a strategy for success.

“This type of examination and insight of an emerging market development is what distinguishes the FlashPoint series from Kline’s traditional In-Depth research reports,” says James M. Weatherall, senior vice president and head of the firm’s market research arm. “Where our in-depth reports drill deeply into market size and segmentation based on years of data in established industry markets, Kline FlashPoint reports are very forward looking. They focus on current issues and provide Kline’s point of view and recommendations to help executives develop timely strategies to maximize business opportunities.”

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