Biodiesel in the United States

Biodiesel is commercially available in most oilseed-producing states in the United States. As of 2005, it is somewhat more expensive than fossil diesel, though it is still commonly produced in relatively small quantities (in comparison to petroleum products and ethanol fuel).

Due to increasing pollution control and climate change requirements and tax relief, the U.S. market is expected to grow to 1 or 2 billion US gallons (4,000,000 to 8,000,000 m³) by 2010.

The total U.S. production capacity for biodiesel reached million 2,240 US gallons (8,500 l) per year in 2007, although poor market conditions held 2007 production to about million 450 US gallons (1,700 l), according to the National Biodiesel Board (NBB) [http://www.biodiesel.org/pdf_files/fuelfactsheets/Production_Capacity.pdf] .

In 2004, almost 30 million US gallons (110,000 m³) of commercially produced biodiesel were sold in the U.S., up from less than 0.1 million US gallons (380 m³) in 1998.

Price

The price of biodiesel in the United States has come down from an average $3.50 per US gallon ($0.92/l) in 1997 to $1.85 per US gallon ($0.49/l) in 2002. This appears economically viable with current petrodiesel prices, which as of 2005-09-19 varied from $2.648 to $3.06.

Farming And Sources

A pilot project in Unalaska/Dutch Harbor, Alaska, is producing fish oil biodiesel from the local fish processing industry in conjunction with the University of Alaska Fairbanks. It is rarely economic to ship the fish oil elsewhere and Alaskan communities are heavily dependent on diesel power generation. The local factories project 3.5 million tonnes of fish oil annually.

Many farmers who raise oilseeds use a biodiesel blend in tractors and equipment as a matter of policy, to foster production of biodiesel and raise public awareness. It is sometimes easier to find biodiesel in rural areas than in cities. Similarly, some agribusinesses and others with ties to oilseed farming use biodiesel for public relations reasons.

Soybeans are not a very efficient crop solely for the production of biodiesel, but their common use in the United States for food products has led to soybean biodiesel becoming the primary source for biodiesel in that country. Soybean producers have lobbied to increase awareness of soybean biodiesel, expanding the market for their product.

Production

GreenHunter Energy, Inc. has begun commercial operations at its biodiesel refinery in Houston, Texas, that can produce million gallon|105 per year of biodiesel. That production capacity makes it the largest biodiesel refinery in the United States, barely beating out the million gallon|100 per year biodiesel refinery built by Imperium Renewables in Washington.

GreenHunter Energy claims that its new facility is able to produce biodiesel from animal fats, vegetable oils, or a blend of the two, and the facility has zero emissions. The facility was originally a waste-oil recycling facility owned by Channel Refining Corporation, and GreenHunter Energy bought it in early 2007 and converted it into a biodiesel plant. As a result, the Houston biorefinery features 700,000 barrels of storage capacity, a methanol distillation system that is five times larger than needed, and a system to neutralize the crude glycerin byproduct, making it a more valuable product. The company was founded Gary Evans, a former oil executive. [ [http://greenhunterenergy.com/InvestorRelations/News/06022008.html GreenHunter Energy, Inc. - News ] ] [ [http://greenhunterenergy.com/Projects/projects_biofuels.html GreenHunter Energy, Inc. - GreenHunter BioFuels ] ]

In 2006, Fuel Bio Opened the largest biodiesel manufacturing plant on the east coast of the United States in Elizabeth, New Jersey. Fuel Bio's operation is capable of producing a name plate capacity of 50,000,000 US gallons of biodiesel per year. [http://fuelbio.com/templates/fuel_bio/PDF/In_The_Media/http.pdf]

Commercialization

In 2005, U.S. entertainer Willie Nelson was selling B20 Biodiesel in four states under the name BioWillie.By late 2005 it was available at 13 gas stations and truck stops (mainly in Texas). Most purchasers were truck drivers. It was also used to fuel the buses and trucks for Mr. Nelson's tours as well as his personal automobiles.ref|www.nytimes.com.806

On October 16, 2006, the city of Kalamazoo, Michigan announced an agreement with local Western Michigan University's biodiesel R & D program to use the biodiesel research to build a gallon|100000 per year production system at the city wastewater treatment plant, and convert the city bus system to run entirely off of the fuel. Its use of "trap grease" from the waste tanks of restaurants around the city may be the first of its kind in the US. [ [http://www.wmich.edu/wmu/news/2006/10/059.html WMU News - Bronco Biodiesel will fuel Kalamazoo buses ] ]

Mcgyan Process announced

The Mcgyan Process flows super critical alcohol and feedstock through a tube reactor packed with sulfated metal oxide microspheres to produce biodiesel in seconds with virtually no waste stream. The unreacted alcohol and any residual fatty acids can be recycled through the reactor making the process entirely continuous and able to achieve 100% conversion. The process was invented by SarTec Co. and Augsburg College and the discovery was announced on Friday March 7th 2008. [cite web |url=http://www.kare11.com/news/news_article.aspx?storyid=501156 |title=McGyan Process News Release] Plans to build a prototype commercial production facility that will employ this novel process have been announced by Ever Cat in Isanti, MN. [cite web |url=http://isanticountynews.com/index.php?option=com_content&task=view&id=1863&Itemid=1 |title=Isanti Welcomes Biodiesel Facility]

Incentives

Tax credits

As of 2003, some tax credits were available in the U.S. for using biodiesel.

By State

Alaska and Oklahoma are the only states currently without retail Biodiesel fueling sites [ [http://www.biodiesel.org/buyingbiodiesel/retailfuelingsites/ Biodiesel.org - Retail Fueling Sites ] ] , though pricing and blend availability vary by state. [ [http://www.eere.energy.gov/afdc/pdfs/afpr_jul_07.pdf Clean Cities Alternative Fuel Price Report July 2007 ] ]

Minnesota

Minnesota Governor Tim Pawlenty signed a bill on 2008-05-12 that will require all diesel fuel sold in the state for use in internal compression engines to contain at least 20% biodiesel by 2015-05-01. [ [http://www.eere.energy.gov/news/news_detail.cfm/news_id=11766 EERE News: Minnesota to Require 20% Biodiesel Blends by 2015, with Caveats ] ]

In March 2002, the Minnesota State Legislature passed a bill which mandated that all diesel sold in the state must contain at least 2% biodiesel. The requirement took effect on June 30, 2005. [ [http://www.newrules.org/agri/biodieselmn.html New Rules Project - Agriculture - Biodiesel Mandate - Minnesota ] ]

Washington State

In March 2006, Washington became the second state to pass a 2% biodiesel mandate, with a start-date set for December 1, 2008. [ [http://apps.leg.wa.gov/billinfo/summary.aspx?bill=6508 SB 6508 - 2007-08 ] ]

ee also

* National Biodiesel Board

Notes

External links

* [http://econ.worldbank.org/WBSITE/EXTERNAL/EXTDEC/EXTRESEARCH/EXTWDRS/EXTWDR2008/0,,contentMDK:21501336~pagePK:64167689~piPK:64167673~theSitePK:2795143,00.html World Bank, Biofuels: The Promise and the Risks. World Development Report 2008: Agriculture for Development]
* [http://www.biodieselconference.org/ National Biodiesel Conference]
* [http://nbb.grassroots.com/08Releases/ObamaPA/ Barack Obama Kicks Off Official Campaign with Biodiesel Plant Tour] .