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|  | Senate Passes Energy Bill Containing Key Biodiesel Provisions |  |
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Last week, the Senate passed an Energy Bill containing important biodiesel provisions. The Senate Energy Bill extends the biodiesel tax incentive through 2010 - which was the biodiesel industry's No. 1 legislative priority - thanks to Sen. Chuck Grassley (R-IA). It also creates a Renewable Fuels Standard (RFS) requiring the use of 8 billion gallons of renewable fuels, like biodiesel and ethanol, by 2012. National Biodiesel Board (NBB) calls for support of the provisions as the Senate goes into conference with the House, which passed its version of the Energy Bill in April.
“The biodiesel tax incentive passed last year has truly jumpstarted the biodiesel industry,” said NBB Chairman Darryl Brinkmann, a soybean farmer from Carlyle, Ill. “As a result, the demand for biodiesel has reached record levels. The biodiesel tax extension gives biodiesel producers the confidence to expand to meet this growing demand.”
Other provisions offer tax incentives for farmers who wish to build biodiesel plants and tax incentives for fueling infrastructure for B20 blends at retail stations. The provisions have received strong bipartisan support from leaders such as Senator Blanche Lincoln (D-AR) and Representative Kenny Hulshof (R-MO).
In May, Senators Jim Talent (R-MO) and Tim Johnson (D-SD) introduced an amendment to the Senate Energy Bill that would require the use of 8 billion gallons of renewable fuels, like biodiesel and ethanol, by 2012, with a phase-in for renewable fuel volumes over 7 years, beginning with 4 billion gallons by 2006 and ending at 8 billion gallons in 2012. It grows proportionately with fuel consumption after that. It is estimated that the RFS will help create more than 230,000 new jobs in every sector of the economy.
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| | Willie Nelson Launches Biodiesel Truck Stops in South, Southeast | |
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 Legendary musician and biodiesel advocate Willie Nelson June 7 announced that a twenty percent blend of biodiesel (B20) is now available along the Eastern Seaboard to truck drivers and other motorists. Nelson made the announcement at a Spinx Co. filling station in Greer, S.C., where a B20 “BioWillie biodiesel” is on offer. To signify greater energy independence, on Independence Day weekend, he also kicked off availability of B20 at Carl’s Corner, Texas, a unique truck stop along Interstate 35. Willie Nelson Biodiesel is the supplier of “BioWillie,” the singer’s unique brand of B20.
"Biodiesel is the future,” said Nelson, founder of Willie Nelson Biodiesel, while in South Carolina. “This is a great day for America. All of the major automotive and truck manufacturers are struggling to find new ways to meet fuel emissions standards and biodiesel is the most practical and readily available alternative. We have it here at home. We have the necessary product; the farmers can grow it.
“By working with alert and innovative retailers we plan to establish a chain of BioWillie Refueling stations throughout the southeasten U.S.,” said Nelson. Company representatives say future plans include truck stops carrying the B20 along the east coast from Miami up to Rochester. Nelson and Peter Bell, of biodiesel supplier Distribution Drive, and three other partners formed the company in December 2004. Likewise, the Spinx Company plans on introducing B20 at more of its locations in the future.
Nelson did not supply the only star power behind biodiesel. Actor Dennis Weaver and South Carolina soybean grower Woody Green attended the June 7 event. “We are thinking about the future, no longer stuck in the past,” said Weaver. “The simple truth is we cannot grow oil. Here today we are changing the way we relate to the earth.”
In Texas, Carl’s Corner is not only the name of the city, but also the truck stop of the July 3 biodiesel celebration, which included amusements such as a chili cook-off and concert by Nelson. “The response from my trucker customers so far has been phenomenal,” said Carl Cornelius, co-owner Carl’s Corner. “Almost everybody who’s used it has been totally satisfied. I’m learning from truckers they find better mileage, smoother performance, more power. They’re pretty excited. Everybody ought to get on this bandwagon.”
During the Texas event, the National Biodiesel Board presented Cornelius with the Biodiesel Pioneer Award for his commitment to bringing biodiesel to truckers.
To find out more about Willie Nelson Biodiesel, visit www.wnbiodiesel.com.
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| | Cargill to Build Nation’s Largest Biodiesel Plant in Iowa | |
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With the capacity to produce 37.5 million gallons of renewable, clean-burning biodiesel a year, Cargill’s biodiesel plant in Iowa Falls, Iowa is set to be larger than any of the United States’ current biodiesel plants. Cargill also plans to build a 30-million-pounds-per-year glycerin refinery that will be adjacent to its existing soybean crush facility in Iowa Falls.
Construction of the new plant is planned to start this summer, with production expected in April 2006. Cargill’s plant will meet BQ-9000 certification requirements. Organizers say the plant will initially produce biodiesel exclusively from soybean oil, but in the future, they hope to add animal fat and waste grease capabilities as well.
“I think it’s great that Cargill is entering the biodiesel market. It’s wonderful,” said Roy Arends, a director for the Iowa Soybean Promotion Board and farmer from Alexander, Iowa. “Some might see this as competition for the farmer-owned biodiesel plants, but I see it as a good sign for the future. Cargill obviously thinks it’s going to be profitable long term or they wouldn’t be doing it.”
Iowa farmers have invested millions of checkoff dollars in the development, production and promotion of soy biodiesel.
There are currently three biodiesel plants operating in Iowa – West Central in Ralston, Soy Solutions in Milford and AGP’s plant in Sergeant Bluff. Iowa produces about 25 million gallons of biodiesel each year, and will increase to more than 50 million gallons when a plant in Wall Lake begins production later this year. There are 52 biodiesel retail-fueling sites and more than 350 biodiesel fuel distributors in the state.
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| | MSHA Rules Biodiesel a PM Control | |
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The Mine Safety and Health Administration (MSHA) published a final rule June 6 on diesel particulate matter. Biodiesel was included as a feasible diesel particulate matter control technology. MSHA also vehemently refuted all arguments raised by commenters against biodiesel use, including cost vs. benefits; clogging problems and equipment manufacturers not being supportive of biodiesel use.
The MSHA conducted various tests to reach this conclusion on several mines with various types of biodiesel fuel.
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| | County in Maryland Goes Biodiesel, Fleet Wide | |
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 Queen Anne’s County, Maryland, Department of Public Works held a ceremonial announcement, check presentation and “Fuel Fill-up” event last Tuesday on its use of 20 percent soy biodiesel (B20) fuel. Queen Anne’s County will be the first Maryland County to use B20 fleet wide. Queen Anne’s County’s fleet consists of approximately 180 units, including 20 school buses. The use of B20 will significantly reduce the emissions from the 230,000 gallons of diesel fuel the fleet consumes annually.
Queen Anne’s County is the largest producer of soybeans in the State of Maryland. The Queen Anne’s County Commissioners and the project team have named this effort “Farmers Fueling our Future - Queen Anne’s County Soy Biodiesel Project.” This project is funded by a $60,000 grant from the Maryland Energy Administration (MEA).
Besides presentations from county and soybean leaders, also featured were county vehicles including buses, heavy and light duty trucks and on and off road equipment.
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| | Indiana Offers Biodiesel Education Workshops | |
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The Indiana Energy Group, the Indiana Soybean Board and the Central Indiana Clean Cities Alliance are offering education on the latest on biodiesel-blended fuels by inviting decision makers and potential users to attend a free workshop that brings together state and national biodiesel leaders. At the workshop, attendees will receive practical information from different perspectives with a fast-paced program that has been designed to encourage an exchange of ideas. A take-home binder will be given on the items discussed.
Topics and presenters will include Indiana biodiesel success stories; “Biodiesel Technology and Use,” Dr. K. Shaine Tyson, U.S. Department of Energy’s National Renewable Energy Laboratory; “Biodiesel Availability and Distribution,” Jon Lantz, Vice President of Indiana petroleum refiner Countrymark Co-op; panel discussion on school, government, farm and commercial applications; and funding opportunities for businesses, non-profit institutions, and units of local government, by the Lt. Governor’s Office. Workshop dates and locations:
July 12, 2005 – The Pines Evergreen Room – Seymour, Indiana
July 13, 2005 – Holiday Inn Lakeview – Clarksville, Indiana
July 14, 2005 – Holiday Inn Conference Center – Evansville, Indiana
July 15, 2005 – Holiday Inn – Terre Haute, Indiana
To ensure the appropriate number of meal tickets and take-home materials, please reserve seats by calling the Indiana Soybean Board at 800.735.0195 or emailing bmason@indianasoybean.com
Will Sing for Biodiesel
Indiana has also demonstrated its growth in biodiesel recently with events such as the Indy Jazz Fest. This June marked the first time the event used biodiesel in its generators, thanks to Cummins Mid-States Power Group Vice President Greg Gilmore not only offering generators to the show, but also suggesting the use of biodiesel to power those units, improving the air quality for the 50,000 attendees.
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| | Strong Sales Mark Launch of Jeep Liberty Diesel | |
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Launch of the 2005 Jeep(R) Liberty CRD, the first diesel-powered mid-sized SUV in the U.S. market, has been met with strong customer response, with vehicles moving quickly out of dealer showrooms and into the hands of new owners. At the end of May more than 6,000 units had been shipped to dealers, and 3,000 of those sold. Vehicles are sitting on the dealer lots an average of 23 days, about one-third the typical time.
"The 2005 Jeep Liberty diesel has gotten off to a strong start, demonstrating that there is a latent interest in modern, clean-running diesels -- an interest that we believe can be nurtured and expanded," said Jeff Bell, Vice President, Chrysler & Jeep, as he addressed the Motor Press Guild in Los Angeles.
Chrysler Group has fueled each new Jeep Liberty common-rail diesel (CRD) leaving the assembly plant in Toledo, Ohio, with B5 fuel -- made with 5 percent biodiesel made from Ohio soybeans. Bell noted that cleaner fuels are needed to make diesel vehicles acceptable to Americans. Low-sulfur diesel fuels that will be phased in beginning in 2006 are critical, he said.
DaimlerChrysler launched the Jeep Liberty CRD to test the U.S. consumer response to diesel and to change the image of diesel among U.S. consumers. "The Jeep Liberty CRD is helping to dispel the myths about diesel technology. And that's because, most importantly it is a clean-running, common-rail diesel, with the latest Jeep technologies and benefits," Bell said.
Because of an infusion of technology, including CRD, today's diesel engines have 80 percent lower particulate emissions, 70 percent lower NOx emissions, 15 percent improved fuel consumption, 50 percent more power and 30 percent more torque than diesel engines had just a decade ago. They are also much quieter.
The 2005 Jeep Liberty CRD, equipped with a 2.8-liter, four-cylinder, turbo CRD engine, has the acceleration of a V-6 and the fuel economy of a four-cylinder engine. Benefits of the Jeep Liberty CRD include best-in-class torque and towing capacity, best-in-class range - 500 miles highway, and 22 percent higher fuel economy compared with a comparable gasoline-powered Liberty (3.7-liter, V-6 engine). Further, Chrysler Group is extending the warranty on diesel engines in all 2006 model year vehicles; the Diesel Engine Limited Warranty covers engine parts and components up to five years or 100,000 miles.
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| | Biodiesel Fuel Comes To Midcoast Maine | |
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Biodiesel continues its marine use availability with Maritime Energy announcing in June that the fuel is now available at its Union, Maine, Maritime Farms convenience store.
John Ware, Sr., Pres. of Maritime Energy, touted some of the benefits of biodiesel when used in boats: reduced diesel exhaust odor, cleaner boats, and if spilled, B20 biodegrades twice as fast in water as regular diesel fuel.
“We’re very proud and excited to introduce this fuel product to Midcoast Maine,” said Ware. “Although we cannot solve the world energy problems alone, we are pleased to do our part by offering an environmentally friendly and renewable energy product.”
Maritime Energy is a family owned independent fuel company which services Knox, Waldo and Lincoln Counties. Maritime Energy operates convenience stores, Maritime Farms, which are located throughout midcoast Maine.
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| | J.D. Power and Associates Say Diesel Vehicle Market Share to Grow | |
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New vehicles powered by clean diesel or hybrid electric engines are expected to garner 11 percent of U.S. sales by 2012—up from 4.8 percent in 2005—according to a report by J.D. Power-LMC Automotive Forecasting Services. The report shows that diesels are expected to grow from 3 percent market share in 2004 to 7.5 percent by 2012.
"Higher gas prices are acting as a catalyst for automakers and consumers to find alternatives to the traditional gasoline internal combustions engine," said Anthony Pratt, senior manager of global powertrain forecasting at J.D. Power-LMC. "We anticipate this will lead to dramatic growth, particularly with diesels, over the next several years."
While automakers continue to design hybrid vehicles, they also are turning to diesels to help them offer more fuel-efficient alternatives. However, new U.S. Environmental Protection Agency regulations, which go into effect in 2007-2008, require cars and light-duty trucks to meet Tier 2 emissions standards of 0.07 grams of NOx per mile. Diesel technology, coupled with low-sulfur fuel that will be available at gas stations next year, will have to meet these standards before these vehicles can be sold in the United States.
"Most consumers are already familiar with diesel technology, whereas automakers are still trying to educate consumers about hybrid technology," Pratt said. "Outside of meeting future emission standards, the biggest challenge for automakers concerning diesel technology will be convincing consumers that today’s diesel engines have increased performance and run cleaner and quieter than previous-generation diesels."
The number of diesel models is expected to grow from 14 to 26 by 2012. "The bloom of diesel vehicles will be in the pickup truck segment, as well as the luxury car and SUV segments," Pratt said.
J.D. Power and Associates is an ISO 9001-registered global marketing information services firm operating in key business sectors including market research, forecasting, consulting, training and customer satisfaction. The firm’s quality and satisfaction measurements are based on responses from millions of consumers annually.
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| | Minnesota Tractorcade to Run on Biodiesel | |
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“Farming…The Backbone of America,” has been chosen as the theme for Minnesota’s second annual Biodiesel Tractorcade. “We are so happy that the Minnesota Soybean Growers have again jumped on board as the major sponsor with biodiesel,” said an organizer.
The Biodiesel Tractorcade has expanded to a two-day event. It will begin at the Faribault County Fairgrounds in Blue Earth, Minn., on Mon., Aug. 1, and will travel to St. James. The Biodiesel Tractorcade will then leave the morning of Aug. 2 from St. James and end at Farmfest, just ouside Morgan. Tractors will be on display Monday night in St. James and at Farmfest Tuesday afternoon. Additional cities are included in this year’s route. The route and approximate times at each city will be posted at www.tractorcade.com.
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| | Upcoming Events | |
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- Ecare Fair (E. Coast Alt. Renewable Energy)
Aug. 12
Cambria Co. Fairgrounds
Ebensburg, PA
Ecarefair.com
- Energy Technology Expo and Conference
Aug. 30
Denver, CO
energytechexpo.com
- Renewable Finance 2005 Infocast
Sept. 8, 2005
Sheraton Colonial Hotel and Gold Club
infocastinc.com
- BioCycle Conf. on Renewable Energy-Organics Recycling
Sept. 12
Madison, Wisconsin
jgpress.com/conferences1/conferences1.html
- Transport and Sustainable Mobility
Sept. 19
Brussels, Belgium
euconferences.com
- Energy Independence Days (North Carolina)
(Regional Wind Summit, The End of Oil Beginning Now, Summit of Colleges for Sustainability, and Fair)
September 19-24, 2005
NC State University and Central Carolina Comm. College
Raleigh, NC and Pittsboro, NC
- National Biodiesel Conference
Feb. 5-8, 2005
San Diego
biodiesel.org/expo2006
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