Associated Press - May 31, 2009 12:25 PM ET

MEMPHIS, Tenn. (AP) - Less than three years ago two West Tennessee biodiesel plants opened with the potential to produce millions of gallons of biodiesel fuel annually, but today the plants are idle.

Milagro Biofuels and Memphis BioFuels opened in Memphis when the renewable fuels industry seemed to have a limitless future, and Memphis appeared poised to become a pivotal hub.

Now it is uncertain when or if they'll resume production.

The Commercial Appeal reports Memphis BioFuels laid off 30 employees this month and Milagro laid off all but a few workers.

The local shutdowns are part of a national collapse that's ravaged the biodiesel market after years of exponential growth. At least a third of all biodiesel plants across the nation have ceased operation, and production this year is expected to be no more than half last year's total of 700 million gallons.

Information from: The Commercial Appeal, http://www.commercialappeal.com

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