Illinois Bets on Biodiesel: Expanding the Market for Domestic Soybeans

By Naomi Taxay

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.

“We’re absolutely looking to use more of our product here, to make sure that we’re insulated from trade instability,” said David Kubik, the Illinois Soybean Association’s biofuels and trade policy manager. “Regardless of national politics happening around trade, it’s important to diversify these markets.”