Biodiesel's Future | Green Energy News

January 9, 2005 – Vol.9 No.42

BIODIESEL’S FUTURE.

Biodiesel is both a rising star and a shining star in renewable fuels. Right now, in its pure 100 percent form, it’s a bit too pricey for most diesel vehicle drivers, but that’s changing slowly with growing production capacity, growing sales and help from Uncle Sam.

When blended with petroleum diesel - such as B5 (5 percent biodiesel, 95 percent petroleum diesel, for example) - the higher cost of biodiesel is, well, diluted.

The federal tax credit - which was set to go into force at the turn of year, deducts 1 penny per percent of blend per gallon (B20 gets two dimes off) - should put biodiesel blends in competition with petroleum diesel, provided diesel prices at the pump stay high.

(The credit, however, has yet to make it to retailers because of bureaucratic snags in Washington.

The tax credit will put pure B100 when sold at the pump (a dollar off) within the price reach of petroleum diesel

And, it’s safe to say that diesel drivers really want pure, B100 biodiesel. The allure of driving a car on a fuel that is pretty close to vegetable oil is strong. Fewer toxic emissions, significantly lower greenhouse gas emissions (78 percent lower in a full-cycle analysis) and total independence from oil barons, certainly make biodiesel appealing.

Right now at one extreme you can have 5 gallon containers of 100 percent biodiesel delivered to your door for $8 a gallon plus shipping. High Performance Fuels and Additives can do this and take your order via the Web.( Far too expensive for most.)

However, the price drops dramatically if there’s pump near you. SeQuential Biofuels, operating in Oregon and Washington state, will sell you B-100 for $3.61 a gallon. (Once the tax credit is implemented this could drop to $2.61, less than dollar or so above conventional diesel. )

Further, if automakers would move ahead with diesel/electric hybrids the really-high fuel economy will make the fuel additionally appealing.

The Partnership for Next Generation (PNGV) vehicles of the 1990’s, built by the U.S. government and industry partners, achieved nearly 80 miles per gallon on conventional diesel fuel. A Toyota Prius diesel hybrid (if there was such a vehicle, there isn’t) might get that and more with its state-of-the-art hybrid technology.

(However expect diesel hybrids - if they are developed - to carry an even greater premium than gas/electric hybrids because of the higher initial cost of diesel engines.)

World Energy is one example of optimism in renewable fuels and considers itself one of the premier biodiesel companies in the U.S. The company has announced it has signed a production agreement with Dow Halterman Custom Processing (in the Dow Chemical family), to supply biodiesel fuel to World Energy.

Visit High Performance Fuels and Additives at http://www.hiperfuels.com/ , SeQuential Biofuels at http://www.sqbiofuels.com/ (the website posts the current price at the pump for their biodiesel), World Energy at http://www.worldenergy.net/ and Dow Halterman Custom Processing at http://www.dowhaltermann.com/ .