Oregon Public Broadcasting

The biggest biodiesel refinery in the West will ease back in production this week. Workers at the Grays Harbor plant have repaired the damage from an explosion in December.

Tom Banse reports the economics for the alternative fuel are looking up too.

Luckily, no one was injured three months ago when an over-pressurized tank of glycerin exploded at the Imperium Renewables refinery.

Insurance covered the repairs. But another crucial factor for resumed production is a revival in demand.

Company CEO John Plaza says Washington's neighbors to the north and south just started requiring a small percentage of biodiesel be blended into regular diesel fuel.

John Plaza: "British Columbia is 3 percent. Oregon is 2 percent. But these are still significant markets."

Plaza is also counting on the U.S. Congress to renew a tax credit that lowers the price of biodiesel at the pump. The credit expired at the end of last year.

John Plaza: "This is key to make it more palatable to the consumers to buy a home grown fuel."

The much heralded green fuel refinery on the Grays Harbor waterfront sat idle for most of last year due to low demand and high raw materials prices.