Iowa Renewable Fuels Association executive director Monte Shaw says reports that the U.S. Senate will not act before the end of the year to extend the federal biodiesel blenders tax credit that expires December 31, 2009 is not good news for Iowa biodiesel producers, farmers and the state's economy.
"I am profoundly disappointed with news reports that Congress will not extend the biodiesel blenders tax credit before it expires at the end of the year. Without the biodiesel tax credit most biodiesel refineries will be forced to shut down production and lay off employees," says Shaw. We all like to enjoy some time off to celebrate the holidays, but Congress' inaction may force biodiesel employees to take a much longer – and unpaid – Christmas break than anticipated."
While it is becoming less a factor, availability continues to be the number one reason biodiesel users may not always use biodiesel.
Biodiesel users remain a solid fan club. For the third year in a row, 99 percent of respondents to a national survey say they would recommend biodiesel to others. Energy security and environmental/health benefits continue to reign as the top reasons for biodiesel support in the annual survey of biodiesel users across the United States. The Biodiesel Alliance project supported by the United Soybean Board has conducted the online survey for the past three years. More than 500 biodiesel users responded to the 2009 survey. Respondents own, operate or manage a total of 4,025 diesel vehicles. They identified themselves as 46 percent motorists, 8 percent farmers, 7 percent fleet managers, 4 percent petroleum distributors, 4 percent truck drivers, and 28 percent other. The average respondent had used biodiesel for four years, and 89 percent reported little to no engine and/or fuel quality problems using biodiesel. Biodiesel support by an original equipment manufacturer was an important consideration in decisions for 87 percent of respondents when making a purchase of that company’s products. This is up from 82 percent the previous year. By far, the leading reason for not using biodiesel was availability at 80 percent, down slightly from the previous year’s 89 percent. At 15 percent, price was the next biggest obstacle cited for not using biodiesel. Go to http://www.biodiesel.org/aboutnbb/alliance/ to join the Biodiesel Alliance for organizations and companies, or the Biodiesel Backers program for individuals.
This article backs up what I have always thought, there are so many advantages to using biodiesel, it is difficult to fault the logic of it. You guys are loyal fans, according to this survey. Agree?
New Mexico Gov. Bill Richardson fills up a drag car during a Blue Sun Biodiesel promotional event. PHOTO: BLUE SUN BIODIESEL
As the industry evolves, companies are trying to distinguish themselves with branding campaigns that emphasize service, additive packages and premium quality.
Usually drivers don’t go out of their way to fill with a particular brand of gasoline—they pull into whatever station is convenient as they start to run low. Subsequently, gasoline and diesel aren’t usually marketed from a quality standpoint. There are, however, still lingering consumer concerns about biodiesel so marketers have been designing elaborate branding campaigns, which are relatively unique in the fuel world. There are many biodiesel brand names in the market today: Archer Daniels Midland Co. markets Connediesel mostly in Europe; Chicago-based Ultra Green Energy Service sells Ultra Green Diesel; there is SoyPower and REG-9000 from Renewable Energy Group Inc.; Northland Choice from FUMPA Biofuels in Redwood Falls, Minn.; and Southern Gold from North Mississippi Biodiesel, to name a few.
The New York City Sanitation Department runs 4,000 of its diesel vehicles on B5, and anticipates moving to B20 eventually.
New York City is known as one of the cultural and fashion capitals of the world. You could also say it is the garbage capital of the world. No other city has a larger municipal refuse fleet, and when it comes to fueling its 4,000 diesel vehicles, the City of New York’s Sanitation Department trusts biodiesel. “We were already a leader in using other renewable fuels when biodiesel started gaining popularity in 2006,” said Spiro Kattan, supervisor of mechanics. “We wanted to gain experience with biodiesel, so we launched a 5 percent blend at one location in about 40 vehicles. It performed extremely well, so we decided to go citywide with B5 in 2007.” That mammoth fleet includes diesel garbage trucks, dump trucks and salt spreaders. “We can’t afford for our garbage trucks not to run,” Kattan said. “Our trucks don’t only pick up garbage. They are also equipped with snowplow hitches. We’re a part of the city’s snow emergency plans and our mayor would not be too happy if our vehicles went down during a snow storm.” Reliability is one reason the department decided to build a BQ-9000 requirement into its fuel procurement process. The biodiesel industry’s fuel quality assurance program requires that the producer or marketer meet stringent practices. Sprague Energy, which supplies the department’s fuel, became the first petroleum marketer to earn BQ-9000 certification several years ago. “Those trucks have to run, and BQ-9000 gives us a higher comfort level that our provider is meeting a high standard,” Kattan said. “When it comes to any fuel—not just biodiesel—it’s all about quality, quality, quality. The BQ-9000 program is a real plus for us.” The department is running a 20 percent blend (B20) in one location and is considering moving everything to B20 in the future.