PLAINS, Ga. --- Alterra Bioenergy has delayed plans for a biodiesel refinery because of high soybean oil prices, the Macon Telegraph reported.

 Alterra Bioenergy is exploring the use of non-food canola oils or chicken fat instead of soybeans to produce the biofuel.

 In recent weeks, the price of soybean oil has climbed from 31 cents to 50 cents. As a result, the biodiesel fuel would cost more than $5 a gallon. That's not competitive with what's on the market now.

 Alterra representatives said the Macon-based company's plant in Gordon is producing only half its capacity after opening five months ago. The company originally planned to have the Plains plant operational by November.

Originally posted on Fleet Financials