So the tax credit compensates the gasoline blender for blending in a higher cost feedstock.

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"What feedstock is available at what cost is totally a regional thing, " says Pat Gruber, chief executive of Pasadena, Calif.

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We expect this vertical integration in the plastics division to ensure a stable and consistent supply of feedstock, hence providing low-cost advantages in the long run.

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"The current delivered cost of biomass is comparable or even cheaper than petroleum-based feedstock on an energy basis, " said Huber.

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