Ructions in the global oil market have spread to restaurant kitchens across the US as chefs who once had buyers vying for used cooking oil find they must now pay to have it taken away.
The rise of US biodiesel, refined from fats and vegetable oils, turned a waste product into a sought-after commodity when crude prices were high, even attracting the attention of thieves armed with vacuum hoses.
But the collapse in crude oil prices has blunted biodiesel’s edge against conventional diesel. Production capacity at the refineries which turn fat into fuel is also far larger than demand, causing the US biodiesel industry to lose about $130m last year, a University of Illinois economist has estimated.
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