BioTenn - A Partnership for Homegrown Energy

Bio Tenn in Tennessee

For immediate release August 31, 2007



Nashville, Tenn. – Manufacturers of biodiesel fuel in Tennessee will begin receiving a $.20/per gallon incentive for every gallon produced and sold to Tennessee companies beginning tomorrow, September 1, 2007as the result of legislation passed by the General Assembly last session.

“This incentive is a positive and calculated step in the Governor's overall vision for biofuel production in Tennessee," Economic and Community Development Commissioner Matt Kisber said. "The biofuel industry is still very much in its infancy, and the state needs to provide the necessary resources to ensure the long-term vision of increasing consumption of alternative fuels is met. Incentivizing biodiesel production in this way will make it easier for manufacturers to provide the product to consumers, and it demonstrates the Governor's commitment to make biofuels available to Tennesseans.”

Kisber said that this incentive will also encourage other companies to enter into the biodiesel fuel production business.

The incentive is available to any Tennessee company producing biodiesel fuel that sells to distributors in Tennessee, a condition that will be certified through the Tennessee Department of Revenue. The Department of Revenue estimates that the incentive will significantly increase biodiesel fuel production.

“Tennessee companies produced and sold approximately 2.7 million gallons on biodiesel fuel to Tennessee distributors in 2006," Department of Revenue Commissioner Reagan Farr said. "This incentive should result in an estimated two million additional gallons of biodiesel fuel made available to Tennessee consumers.”

The biodiesel manufacturers' incentive is being welcomed by the industry.

"Producers play a key role in meeting the renewable fuels objective for Tennessee and we greatly appreciate this investment from the state," said Diane Mulloy, president of Milagro BioFuels of Memphis. "In Tennessee, our industry is still emerging and has yet to stabilize. As market demand continues to grow, this incentive will allow companies to continue to supply biodiesel fuel to Tennesseans without interruption."

Additional information on biodiesel and other biofuels in Tennessee can be found at