Category Archives: Biodiesel Production

From Festive to Feedstock, San Franciscans “Treecycle”

Christmas trees are collected curbside in San Francisco. Credit: SFGate.com

In many American cities, nothing quite marks the end of the holiday season (or the beginning of the New Year) like gutters strewn with discarded Christmas trees.

But for the past 25 years, the city of San Francisco has been breathing new life into these signs of yester-yule with Recology’s “Treecycling” Program — an initiative that not only rescues Christmas castoffs from the local landfill but goes one step further by chipping the trees into valuable biomass, which can be used for things like renewable fuels.

According to Bob Besso, Recology’s waste reduction and recycling manager, who spoke with the Bay Citizen about the program, more than 500 tons of Christmas trees were collected in San Francisco in 2010.

Because of fir trees’ high acid content, they shouldn’t be mixed with regular compost, so turning the trees into wood chips is the preferred, if not perfect, alternative.

While the chipping process does result in air pollutants, it’s superior to allowing the trees to decompose, which would produce methane and 21 times the gases associated with chipping, according to Kevin Danaher, outreach and communication program manager with San Francisco Department of the Environment.

Perhaps the best solution for a city constantly on the cutting edge of eco-friendly practices? Renting fresh, if unconventional, Christmas trees that can be replanted following the holiday season through organizations such as Friends of the Urban Forest (the program was so popular, it sold out in 2011).

Still, fans of tradition and the environment can rest a little easier knowing that the fresh-cut variety can fuel more than the holiday spirit thanks to Treecycling efforts. To learn more about the program and to read the full story, vist The Bay Citizen online.

B20 Biodiesel powers land speed record

This is not your granddady’s diesel pickup truck. The Hajek Motor’s Ford F250 Super Duty powertrain truck recently broke the land speed record for diesel vehicles on the Bonneville Saltflats–then they filled ‘er up with Biodiesel B20, turned around, and broke the record again!

The previous speed record was set by a BMW motorcycle at 130 mph. The Hajek Ford F250 had slight modifications to upgrade the fuel injectors, fuel system, and turbocharge, but was otherwise mostly stock. Running petroleum diesel, the truck reach over 177 mph, but with biodiesel B20 they smashed the record, reaching speeds over 182 mph.

Depending on the feedstock, biodiesel delivers greater energy density than petroleum diesel. According to the National Biodiesel Board, the B20 used by Hajek was produced by a Missouri biodiesel plant and purchased and donated by the Missouri Soybean Merchandising Council.

Read more from Autoblog.

“I believe in biodiesel because…”

Why do you believe in biodiesel? As this montage of video testimonials compiled by the National Biodiesel Board demonstrates, there are countless reasons to stand behind this renewable fuel. Biodiesel is clean. Sustainable. Green. American. It supports the domestic economy and creates green jobs. It’s the fuel the diesel engine was designed around. And according to biodiesel enthusiasts, the list goes on!

Do you believe in biodiesel? Let us know by sharing your comment, below — or, to learn more, including where you can find biodiesel near you, vist Propel Fuels or the National Biodiesel Board online.

Nuts for biodiesel!

It’s big, it’s shaped like a peanut and, best of all, it runs on biodiesel.

The latest incarnation of the Planters Nutmobile is going green, using a biodiesel-powered modified Isuzu NPR box truck as the base for its fiberglass body. The nutty vehicle also touts a rooftop wind turbine, solar panels, LED interior lighting, recycled parts and reclaimed-wood floors.

It is fitting that the Planters Nutmobile should be powered by biodiesel since Rudolf Diesel originally designed his engine to run on peanut oil. There’s no word on if the biodiesel used will be of a nutty variety.

Read more from the New York Times.

BMW diesel Super Bowl ad. Fueling ch-ch-change.

Propel Hosts First Stop of EcoTREK’s “Best of America Tour”

EcoTREK is driving 10,000 miles crosscountry in an American-made Flex Fuel vehicle, powered with cellulosic ethanol provided by POET — all with the goal of increasing awareness of the economic, environmental and national security benefits of domestically grown biofuels.

Tom Holm, Executive Director and intrepid driver for EcoTREK, made Propel’s Oakland Clean Fuel Point the tour’s first destination. Propel CEO, Matt Horton welcomed Tom to the station and shared his enthusiasm for EcoTREK’s goal. “Today we got a preview of ultra-low carbon fuels from non-food sources, representing the next level of sustainability for fuels that can run in our vehicles today. Propel, EcoTREK and POET each represent critical pieces to reducing our dependence on petroleum; widespread consumer access, advanced vehicle technologies, and the next generation of renewable fuels.”

POET’s cellulosic ethanol is produced from corn cobs and light stover (leaves, husks, some stalk) at a pilot pant in Scotland, South Dakota. Work is underway at Project LIBERTY, POET’s planned 25 million-gallon-per-year cellulosic ethanol plant, which will be built in Emmetsburg, Iowa.

Read more about EcoTREK’s Propel visit.

Follow Tom’s journey on the EcoTREK blog.

EcoTREK in Oakland

Music: Quiet Life hailing from Portland, OR. Check out their music.

Waste Grease Biodiesel Plant for San Francisco

Plans for a biodiesel plant at Pier 92 in San Francisco have finally gained approval from the city’s Port Commission. The plant will produce 10 million gallons of waste-grease biodiesel each year, creating local production jobs as well as locally-produced, renewable fuel.

The plant will be in an old rendering facility run by Darling International, who has been in operation on the pier since the 1960s. The facility is already equipped to create tallow from grease and other waste products. The switch over to biodiesel production will include new odor-regulation devices and alert systems.

Read more from San Francisco Gate.

Waste fats into renewable Dynamic Fuels

In Geismar, LA, Dynamic Fuels’ production facility is converting non-food grade tallow and other animal fats into ASTM-certified renewable diesel fuel.

The production facility, a joint venture of Syntroleum Corporation and Tyson Foods, Inc., began processing fuel in early October and is currently producing 2,500 barrels a day.

Dynamic’s diesel fuel is made from renewable sources, reducing carbon emissions by  75%. What’s more, the performance specifications outshine petroleum diesel, boasting cetane rating of 88, more than twice that of regular diesel.

Read more from Syntroleum.

Propel tours San Diego’s New Leaf biodiesel production facility

New Leaf Biofuel is a waste-source biodiesel production company located in San Diego, CA. Propel had the opportunity to tour the New Leaf facility earlier this week.

Jennifer Case, CEO of New Leaf, hosted the facility tour, walking through the production process of using waste-oil and waste-grease refined into quality biodiesel fuel ready to put straight into tanks. New Leaf collects waste oil and grease from local San Diego restaurants to use as the feedstock for their biodiesel production.

New Leaf is a great example of a local producer working within a community to process waste products into quality renewable fuel.

Learn more about New Leaf Biofuels.

US Senator Patty Murray and Propel discuss economic impacts of biodiesel industry

Monday morning, Senator Patty Murray (D – WA) & Propel hosted a press conference to discuss support for the Biodiesel Blenders Tax Credit and its positive impacts on job growth, carbon emissions reduction and national security. Since the tax credit was left to expire in January, US biodiesel production has largely screeched to a halt. As a result, many producers including Imperium Renewables have looked to markets outside of the US to sell its fuel. The industry’s message was clear; renew the tax credit and our industry will immediately increase production, and create jobs.

The event was held at Propel Fuels Clean Fuel Point, the first renewable fuels station in downtown Seattle, Senator Murray was joined by the leaders of companies from up and down the biodiesel value chain (bioscience, refining, production and retail consumer access), who discussed the importance of the extension of the tax credit currently being debated in Congress.

Speakers included Matt Horton, CEO of Propel Fuels, Todd Ellis, VP of Business Development for Imperium Renewables, Dr. Margaret McCormick, COO for Targeted Growth, and Cameron Hewes, President and CEO of General Biodiesel.

Can’t recycle that soiled cardboard? Try fuel.

Of all the tons of corrugated cardboard recycled by the Cedar Rapids paper mill in Iowa, 5 percent of fibers from old containers cannot be recycled, which equates to about 50,000 tons of paper waste ending up in a landfill every year. Fiberight LLC plans to change this.

Fiberight has partnered with International Paper Cedar River to convert waste paper into cellulosic ethanol fuel. The clean tech company converted a first-generation corn ethanol plant in Blairstown, Iowa into a cellulosic ethanol production facility.

According to Todd Olstad, the paper mill’s operations manager, “through Fiberight’s new facility, we can now be assured that whatever recycled fiber can’t be made into new packaging can be used to create green energy, while helping us offset our disposal cost.”

By 2011, Fiberight’s facility will reach a final commercial production capacity of about 6 million gallons of cellulosic fuel per year.

Read more about Fiberight’s cellulosic fuel plant.

Next generation biorefinery breaks ground in Boardman, OR

With production expected to begin next year, Colorado-based ZeaChem has broke ground on a cellulosic ethanol biorefinery in Boardman, OR. The plant will use ZeaChem’s core technology, to produce ethyl acetate, a salable chemical intermediate that can turn poplar tree waste into cellulosic ethanol. The biorefinery is expected to produce up to 250,000 gallons per year.

“Breaking ground on ZeaChem’s biorefinery in Boardman is a significant milestone,” said Jim Imbler, president and chief executive officer of ZeaChem. “As a leader in this industry, ZeaChem is committed to producing economical and sustainable advanced biofuels and bio-based chemicals, creating jobs, and being a good neighbor in the community.”

ZeaChem is receiving $25 million in stimulus money for the plant that will create 300 direct and indirect jobs.

Read Press Release.

Advanced fuel test crops flourish in California

UC Davis test plot yields for advanced biofuel crops prove fruitful.

Findings from a three year switchgrass trial have shown increasing yields, from twelve to eighteen tons per acre depending on the site. Several switchgrass varieties were tested at facilities in El Centro & at UC Davis. Switchgrass has the potential to be a whole-plant cellulosic ethanol feedstock and is considered an important crop for the future of renewable fuels. The hardy grass begins its annual growth in the spring and can grow 4-7 feet tall. Leaves measure 30-90 centimeters in length.

Switchgrass uses C4 carbon fixation which means it is fairly efficient in the photosynthesis process and tolerates drought and high temperatures. The grass has low fertilizer requirements and grows well on marginal land.

Many of these hearty crops can grow on marginal lands and have the potential to produce biodiesel and cellulosic ethanol, and provide a new revenue source for American framers.

Read more about advanced feedstock research from Western Farm Press.

Biodiesel Bulletin: Biodiesel delivers sweet treats

Propel customer, Essential Baking Company, is highlighted in the latest edition of the National Biodiesel Board’s monthly bulletin.


“The Web site for The Essential Baking Company in Seattle says it all: “We’re fussy. Fussy about taste, the texture of our bread, the flakiness of our pastry, the richness of our desserts, and preserving the time-honored techniques of baking. And don’t even get us started about the importance of the pureness of what we put into our bodies or our impact on the environment.”

That commitment to the environment is fulfilled in part by using 99 percent biodiesel . . .” Read more from the National Biodiesel board.

Waste into power, POET teams up with the city of Sioux Falls

The joint project by leading ethanol producer, POET, and the city of Sioux Falls uses landfill gas to help power POET’s Chancellor, South Dakota ethanol production facility. Methane gas created by the Sioux Falls Regional Sanitary Landfill is transported down an 11-mile pipeline to POET’s biorefinery, helping to power ethanol production.

Methane, a major factor in global warming, is captured, converted and put to use producing process steam for ethanol production–using methane offsets 15 percent of the facility’s  energy needs, reducing overall CO2 emissions by more than 26,000 tons per year.

Revenue from selling methane to POET and subsequent carbon credits, earns an additional 1 million dollars per year for the city of Sioux Falls.

Earlier this month, the Environmental Protection Agency recognized the innovative work of the POET-Sioux Falls project in an award ceremony for programs that “employed unique project structures and took creative approaches to utilize (landfill gas) from municipal solid waste landfills.” The project will continue to grow as the supply of landfill gases increase, doubling capacity by 2025.

Read more about POET and Sioux Falls.

500,000 jobs created by U.S. ethanol industry

The 2010 U.S. Ethanol Industry Salary study estimates nearly a half-million direct and indirect jobs generated by the ethanol industry nationally.

Jobs tied to the ethanol industry are heavily concentrated in rural America, and makeup a significant portion of the economic impact of the industry.  As Mike Bryan states in his editorial for the January issue of Ethanol Producer Magazine, “the importance of the domestic ethanol industry to the vibrancy of the U.S. economy, especially the rural economy, cannot be overstated.”

On a local level, Propel Fuels has teamed up with the Sacramento Regional Conservation Corps to provide life and skills training for at-risk youth in the area. Involvement in the program provides corps members training in critical skills such as job responsibility, timeliness and teamwork, while exposing them to the promising industry of renewable energy.

As the domestic economy struggles back to its feet, the burgeoning alternative energy industry provides a bit of hope for new jobs and economic growth.

Read full article about Propel and SRCC.

More on the 2010 U.S. Ethanol Industry Salary survey.

UC Davis research shows sustainable biomass energy potential for California

A recent article published in California Agriculture illustrates the potential for sustainable biomass energy crops in California.  California Agriculture is a peer-reviewed journal reporting research, reviews and news from the University of California and its Agriculture and Natural Resources division.

Article Abstract
Biomass constitutes a major renewable energy resource for California, with more than 30 million tons per year of in-state production estimated to be available on a sustainable basis for electricity generation, biofuels production and other industrial processing. Annually, biofuel production from these resources could exceed 2 billion gallons of gasoline equivalent, while providing opportunities for agricultural and rural economic development. Continuing research and large-scale demonstrations now under way will test alternative technologies and provide much-needed information regarding costs and environmental performance. Biomass can help meet state goals for increasing the amounts of electricity and fuels from renewable resources under the Renewable Portfolio Standard (RPS) and the Low Carbon Fuel Standard (LCFS), and can similarly help meet national biofuel targets under the federal Renewable Fuel Standard (RFS). Internationally consistent sustainability standards and practices are needed to inform policy and provide direction and guidance to industry.

>> Read More

Article Authors
Bryan M. Jenkins, UC Davis
Robert B. Williams, UC Davis
Nathan Parker, UC Davis
Peter Tittmann, UC Davis
Quinn Hart, UC Davis
Martha C. Gildart, UC Davis
Steve Kaffka, UC Davis
Bruce R. Hartsough, UC Davis
Peter Dempster, UC Davis

Production advances create fuel from forest waste

Fuel sourced from waste derived feedstock is the gold-standard in sustainable energy production. And the pine forest waste left over from Georgia’s paper industry will soon be turned into fuel.

Range Fuels’ cellulosic ethanol production facility aims to utilize the limbs, needles and tops of timber typically left out in the woods as an entirely new source of fuel. A technology that is a perfect fit for the State of Georgia that has an abundance of forest-derived feedstocks.

“This is zero carbon footprint fuel” says David Aldous, Range Fuels’ CEO.

The Soperton, Georgia-based plant held ground breaking ceremonies in 2007 and is scheduled to be producing this fuel in 2010. The project is permitted to produce 100 million gallons of fuel per year.  In addition to vehicle fuel, the plant will generate renewable power from energy recovered during the process of converting biomass into fuel.

Watch Video from WSBTV.

Cellulosic Plant takes a big step towards converting Corn Cobs into Fuel

South Dakota based POET is pioneering commercial-scale next generation ethanol Poet_Libertyproduction with their Project Liberty plant in Emmetsburg, Iowa. The 25 million-gallon-per-year plant reached a significant benchmark yesterday receiving a 20 million dollar commitment from Lt Governor Patty Judge. Former four-star General Wesley Clark spoke to attendees about the important role they would play in providing more homegrown fuel for the nation.

“We are involved in something that is historic,” Clark said. “We are going to significantly reduce our dependence on foreign energy sources, and we will strengthen America’s national security.”

POET currently operates a pilot-scale cellulosic plant in Scotland, S.D. currently producing 20,000 gallons per year of cellulosic ethanol. The newly funded Iowa plant will commercialize the process creating hundreds of new green jobs.

Watch coverage by KTIV News 4

U.S. jets on alterative fuel

The U.S. Air Force plans on using domestically produced Camelina-based jet fuel supplied by Sustainable Oils. The Defense Energy Support Center agreed to use 100,000 gallons through 2010 with the possibility for using another 100,000 gallons in the following two years.

fromcleantechnica.com

Camelina is a non-food oilseed crop grown in parts of Oregon, Washington and Montana. In addition to the high quality of fuel produced from camelina, it can reduce carbon emissions by more than 80%.

“This is a great opportunity for Montana farmers to not only drive additional revenue, but also participate directly in decreasing our country’s reliance on foreign oil,” said Montana Governor Brian Schweitzer in the press release. “I know our agricultural community is up to the challenge to supply our armed forces with camelina-based fuels.”

Read more from Sustainable Oils.

1000 Acres of Next Generation Fuel

sgrass_OK

Cellulosic feedstock projects are beginning to scale in size and frequency. An example of this is the 1,000 acre switchgrass plot in Oklahoma, now in its second year. The project is led by the Ardmore-based Noble Foundation, and strands are reaching 3 ft in height.
Unlike corn, switchgrass doesn’t need to be replanted each year. It also takes less tractor-fuel and fertilizer to produce, can be grown on marginal land and doesn’t require as much water.

Read More

Fulcrum Advances Ethanol from Waste

fulcrum_sierraHigh quality biodiesel refined from waste sources is becoming common, and has the lowest carbon footprint of any liquid fuel. In fact, much of the biodiesel sold by Propel, the highest-quality clean fuel available, comes from recycled fats and oils. And now strides are being made in waste-to-ethanol production through advances by companies like Fulcrum Bioenergy. Fulcrum is working to derive commercial-scale ethanol from municipal waste — and recently ran their first demo proving they are on their way to reaching that goal.

The successful demonstration has spurred the development of commercial scale production. Construction on Fulcrum’s municipal solid waste to ethanol plant, Sierra BioFuels, is set to begin this year. Located in the Tahoe-Reno Industrial Center, in the City of McCarran, Storey County, Nevada, the plant will convert 90,000 tons of MSW into 10.5 million gallons of ethanol per year.
More from NY Times

More on Fulcrum

Biodiesel station’s green features earn Propel ‘Project of the Month’ title

Propel’s downtown Seattle station  is selected as the Daily Journal of Commerce’s Project of the Month for July.

SLU_Project of the Month

photo by Lara Swimmer

An American icon goes green, smells good too.

Propel Biodiesel’s Seattle station is an urban oasis. Filling up there can be a meditative experience.

If you’re green at heart but still attached to your internal combustion engine, don’t give up hope. If it’s diesel you need, pull your Bug or your tractor-trailer into the South Lake Union station at Broad and Westlake and fill up. It’s roughly the same price per gallon as regular diesel . . .”

Read more from the Daily Journal of Commerce

Fuel from Waste – New Revenue for American Farmers

stoverNot Corn…Cobs. This harvest refuse, typically plowed back into the field, is now a source of fuel for American drivers, and new profit for American farmers.
Making this possible are the leading edge cellulosic ethanol plants like the Iowa based plant currently being built by Poet Energy. The $200 million plant will make cellulosic ethanol, which comes from plant material such as cobs, wood chips and switchgrass. About two dozen cellulosic ethanol projects are being developed or built around the country, according to the Renewable Fuels Association.
Poet spokesman Nathan Schock said the company hasn’t yet figured out how much it will pay farmers, but it could be $30 to $60 per ton for corn stover, which includes cobs and some stalk. An average acre in Iowa yields about 1.5 tons of corn stover.
Read more

A Step Toward Algae Into Ethanol

Algenol Biofuels announced plans for a pilot algae-biorefinery to produce ethanol from captured CO2. The demonstration plant will have the capacity to produce 100,000 gallons a year, with desired cost of the ethanol at $1.00 per gallon.

algenol_biorefinery

Algenol Biofuels

Paul Woods, CEO of Algenol, said in a recent press release, “this project sets the stage for commercial scale production by proving two critical principles: first, that ethanol can be made economically without consuming fresh water or displacing valuable farmland better suited to food and feed production; second, that atmospheric concentrations of carbon dioxide can be reduced by capturing CO2 from a variety of industrial sources and using it to produce fuel that can displace conventional, high carbon gasoline.”

The project will move forward in partnership with Dow Chemical Company, the National Renewable Energy Laboratory, the Georgia Institute of Technology and Membrane Technology & Research.

Propel’s fueling platform currently delivers advanced low-carbon fuels including biodiesel from waste stream feedstocks like recycled fats and oils, and locally grown, marginal land crops like camelina. The fueling platform is designed with the flexibility to accommodate low-carbon fuels today, as well as future fuels such as algae- and cellulosic-based fuels, hydrogen and electric chargers. As petroleum extraction becomes more harmful and invasive, today’s alternative fuels are already more sustainable, with next generation fuels on the horizon providing even greater benefits.

American Lung Association report shows “Biodiesel Key to Clean Air”

americanlungassocThe State of the Air Report recently released by the American Lung Association shows biodiesel is a key factor to keeping America’s air clean. The American Lung Association in Minnesota described the  report as a “wake up” call to further embrace fuels like biodiesel and is also participating in May 1 activities to kick off Minnesota’s increase to a B5 biodiesel blend. The report named Fargo, North Dakota as the cleanest city in the nation, and the lung association there gave credit to steps like biodiesel use.

Biodiesel is a sustainable, renewable alternative to diesel fuel that reduces most regulated emissions substantially, including carbon monoxide, particulate matter and unburned hydrocarbons.

“With biodiesel, America can produce its own cleaner-burning diesel alternative that helps clean up the air with existing vehicles,” said Joe Jobe, National Biodiesel Board CEO. “Biodiesel is a natural solution to help achieve lung associations’ goals to reduce air pollution and safeguard our health. We are grateful for their support and applaud their vision for a cleaner future.”

Biodiesel reduces air toxins by 90 percent, and significantly reduces the compounds linked to cancer. Breathing the smoke from diesel exhaust can trigger an asthma attack. The use of biodiesel reduces particulate matter up to 40 percent.

More information from NBB.

Propel Fuels Showcases Next Generation Green Diesel at California Diesel Days

bosch_neste_2Propel Fuels, in partnership with Bosch and Neste Oil, helped power California Diesel Days with next generation NExBTL green diesel. Green diesel, also known as renewable diesel, is a synthetic diesel product derived from bio-based oils and fats, and is suitable for use in all diesel motors. This renewable alternative to petroleum improves air quality by reducing particle emissions and reduces greenhouse gas emissions. Several of the top-end diesel vehicles displayed at Diesel Days ran on NExBTL.

audi_tdi

On display were advanced clean diesels from serveral manufacturers: Mercedes-Benz ML 320 and GL 320, BMW 335d and X5, Audi Q7 and A3 diesel and from Volkswagen, the Jetta TDI and V6 Touareg TDI. 

diesel_days_lineup California Diesel Days brought together automotive industry, state government, and environmental organization representatives focusing on clean diesel passanger vehicle technology. The conference topics included CO2 reduction strategies for California, the latest clean vehicle technologies, and the future of Clean Diesel passenger vehicles. 

More on Propel’s participation in California Diesel Days.

Ultimate cold weather biodiesel test

groupalongparkshwyArctic Circle Mission — A hearty group from the Indiana Soybean Alliance set off March 4th to test B100 biodiesel in the frigid temperatures of Alaska. The group aimed to run two trucks and a generator on 100% biodiesel in temperatures down to -25 degrees Fahrenheit. The specially formulated biodiesel was five years in the making — ISA, in collaboration with a researcher from Purdue University, developed Permaflo™ Biodiesel, a cold-weather biodiesel made from Hoosier soybeans.

The group drove over 300 miles from Anchorage to Fairbanks crossing Denali National Park. And one B100-powered truck continued on to the Arctic Circle, another 200 miles. The biodiesel generator was tested during an overnight camping expedition on the tundra. Camping in the cold may have been rough on the group, but the biodiesel performed without a hitch during the excursion. Read daily entrees from the group’s experience.

CleanDrive members on the cutting edge

CleanDrive Report Screenshot

Are you a CleanDrive member? If so, you are at the forefront of a movement towards tracking and monitoring you carbon footprint. A recent New York Times article discusses how visibility into our carbon output will become a part of our lives, and influence behavior for the better. From thermostat price monitors, to eco-mood jewelry – the article outlines several ways carbon savings, or lack thereof, will be worn on our sleeve. Have a read: http://www.nytimes.com/2008/03/25/science/25tier.html?ex=1207108800&en=30d6236cc4c256da&ei=5070&emc=eta1

So if you haven’t already, register for CleanDrive and be at the head of the carbon tracking revolution. Review you report with your family, or show your customers. It’s a powerful thing to see how your choice to use biodiesel is making a change for the better. Combined the Propel community has saved nearly 1 million pounds of CO2. Now that’s powerful.

Register for CleanDrive: http://propelbiofuels.com/content/cleandrive/

Check your CleanDrive account: https://www.propelbiofuels.com/site/clean/login.htm

Biodiesel is more expensive than ever. Why?

Propel’s commitment to alternative fuel access and sustainability includes economic sustainability. As a retailer, Propel purchases biodiesel at wholesale prices, and sells to our customers at margins equal to or less than traditional Oil Prices Risepetroleum retailers. As wholesale costs rise for biodiesel, Propel is committed to offering clean fuel access at a reasonable price point. And our fuels and vehicles team is aggressively looking at biodiesel supply options that meet our quality, cost and sustainability parameters.

There is one main factor driving the current pricing increase: the price of vegetable oil. In the past 12 months, March 2007 to March 2008, prices have jumped 90% for soy oil.

For biodiesel producers, between 80% – 90% of the input cost of biodiesel production is vegetable oil, like canola and soy oil. And vegetable oil is currently selling at a price equivalent of between $180-$190 per barrel. This is an increase is due to speculation, not market demand. Global demand for consumable veg oils has risen at a consistent 3% level for over two decades and continues at this level. There has not been a significant demand increase, or supply decrease, that explain the price run up in veg oils. Commodities across the board have risen at the same pace- petroleum, minerals, and all agricultural products. On the upside, current economics benefit USA farm communities.

Propel is dedicated to providing the most sustainable and renewable fuels that meet our cost and quality standards. We are working hard to open markets for new feedstocks and technologies that offer viable alternatives to petroleum. Together with you, we are pioneering new ground, creating economic opportunities, and building a sustainable future for our children. We will keep you informed as biodiesel prices change. If you have any questions don’t hesitate to write us. Thank you for your commitment to clean and renewable biodiesel.

We’d also like to credit Becky Lyle, a WA small farm owner, and NW Biodiesel Network, for the ongoing discussion of feedstock costs. Join the NW Biodiesel Network email list, visit http://www.nwbiodiesel.org/mail_list.htm.