http://www.nytimes.com/2002/05/12/business/yourmoney/12BIOD.html?tntemail1

Biodiesel: A Fuel That Starts Low on the Food Chain
By ERIK BAARD

RON CASCIO, a professional builder of solar-heated homes, had long 
been looking for ways to reduce his own reliance on gasoline. He 
resented the unpredictable price, the pollution and the dependence on 
foreign oil. "The whole petroleum system is nasty, and I wanted out," 
he said.

Two years ago, Mr. Cascio replaced his gasoline-powered cars with two 
1997 Volkswagen Passat wagons and a 1989 Ford F250 pickup truck, all 
diesel powered. But it wasn't the diesel engines that freed him from 
the grip of the petroleum industry, he said; it was the fuel - a 
refined concoction of soybean oil and recycled restaurant grease, 
more scientifically known as biodiesel - that he buys from a local 
distributor.

"I remember feeling so liberated and like a true patriot," said Mr. 
Cascio, 48, of Ocean City, Md. His vehicles didn't belch toxic black 
diesel smoke, Mr. Cascio said, but instead created a relatively 
harmless exhaust that "smelled like popcorn."

In recent years, far bigger customers have also embraced biodiesel, 
including the United States armed forces, Postal Service, big 
utilities like Florida Power and Light and dozens of public transit 
units from the bus system in Boise, Idaho, to the Staten Island 
Ferry. All use diesel fuel that includes at least 20 percent 
biodiesel.

Petroleum companies like BP, Gulf Oil and Koch Industries are 
starting to market biodiesel, a sharp shift in an industry that once 
considered biodiesel a fringe fuel. Archer Daniels Midland, a leading 
soybean processor, announced last month that it might build a 
biodiesel refinery in Minnesota. And the Senate is considering an 
energy bill that would grant tax breaks to biodiesel makers and lower 
the fuel's price, now $1.25 to $1.75 a gallon, compared with the 
standard diesel price of roughly $1.30 a gallon.

As Middle East turmoil again casts doubt on the reliability of 
America's foreign oil supplies, biodiesel is getting more attention - 
and use - as a domestically produced alternative fuel. While it is a 
long way from reducing dependence on oil, it is slowly changing the 
diesel engine's reputation as the gasoline engine's dirty cousin.

Marguerite Downey, the alternative-fuels manager for the Postal 
Service, said biodiesel was "our most successful new fuel program, 
and we have more experience than any other fleet with alternative 
fuel." It used 671,000 gallons of biodiesel blend last year, 418,000 
in 2000 and 90,000 in 1999.

Biodiesel is a return, of sorts, to the original concept of Rudolf 
Diesel, the German engineer who in 1893 published a description of 
the engine that would bear his name. He fueled his prototype engine 
with peanut oil, an idea that never took off because petroleum-based 
fuel quickly became cheaper and more plentiful.

The smell of pure biodiesel fuel is a big selling point: a common 
industry catch phrase is that it smells like a kitchen, not a garage. 
In many engines, it can be used in pure form or as a blend with 
petroleum diesel. Sulfur-free, pure biodiesel meets the antipollution 
requirements of the Environmental Protection Agency for 2006.

Compared with standard diesel fuel, pure biodiesel reduces emissions 
of small particles by 40 percent; the residue is nontoxic and 
biodegradable. Biodiesel is also safer to handle and transport 
because it ignites at a much higher temperature than standard diesel 
or gasoline.

Still, advocates face obstacles. Biodiesel-powered engines can be 
difficult to start in cold weather. And American consumers can have 
trouble finding the fuel: the first retail biodiesel pumps in the 
United States opened a year ago in San Francisco and Reno, Nev., and 
there are now just 21 retail pumps scattered throughout the country.

Domestically produced biodiesel may never replace diesel - there are 
not enough American-grown soybeans and other ingredients to produce 
anything close to the 55 billion gallons of diesel fuel used annually 
in the United States. Besides, most vehicles here run on gasoline, 
and that is unlikely to change anytime soon.

The auto industry has little incentive to promote biodiesel. "Is it 
something we'd like to see?" said Tony Fouladpour, a spokesman for 
Volkswagen of America. "Sure. But it's not really our job to market 
for biodiesel."

Biodiesel production is expected to grow to 20 million to 25 million 
gallons this year and to 30 million to 40 million in 2003, according 
to the National Biodiesel Board, a trade group in Jefferson City, 
Mo., of soybean organizations. Soybean oil accounted for 90 percent 
of the raw material used in the estimated 15 million gallons produced 
in 2001; the remaining ingredients were other oil-bearing crops and 
waste grease.

But some biodiesel advocates say production could be vastly higher if 
other oil-bearing plants were used more. A study financed by the 
Energy Department, published last November, suggested that expanded 
production of mustard seeds, combined with current soybean production 
and waste grease, could produce at least six billion gallons of 
biodiesel annually.

But Dr. K. Shaine Tyson, the manager of the renewable-diesel project 
at the National Renewable Energy Laboratory in Golden, Colo., who 
wrote the study, said the soybean lobby, which dominates the 
biodiesel industry, fears that other raw material could compete with 
soybeans.

Joe Jobe, the Biodiesel Board's executive director, denied Dr. 
Tyson's assertion and said the board was neutral over biodiesel's 
ingredients.

World Energy Alternatives, based in Chelsea, Mass., is by far the 
largest domestic producer of biodiesel, with 75 percent of the 
market. Its president, Gene Gebolys, agreed that soybeans were the 
most practical source of ingredients for now. But the company also 
buys rapeseed oil, waste oil from landfills and recycled grease to 
produce biodiesel at plants in Ohio, Texas, Florida, California and 
Hawaii.

Dr. Tyson's study also suggested that the food industry's waste 
grease, like the yellow grease from deep fryers and restaurants' 
"trap greases," now waste material, could be used for biodiesel. The 
United States produces enough waste greases a year to make 500 
million gallons of biodiesel.

New York City alone could produce 53 million gallons of biodiesel 
annually from its waste greases, Dr. Tyson estimated. That is about 
five times the annual diesel fuel consumption of the city public 
transit system.

Biodiesel critics, including some environmentalists, say it will 
never be produced in large-enough quantities to reduce air pollution 
or oil consumption. Advocates of natural gas, meanwhile, point out 
that their fuel is already plentiful, easily available and cleaner 
than the popular 20 percent biodiesel blend. "The question is: Do you 
want to bunt a single or go for a home run in terms of emissions 
reductions?" asked Richard R. Kolodziej, president of the Natural Gas 
Vehicle Coalition, a Washington lobbying group.

A different drawback of biodiesel worries some diesel engine makers: 
It may go bad if it sits too long, as cooking oil does. John Deere, 
the farm equipment and marine engine maker, limits its warranty to 
blends of 5 percent biodiesel or less.

Barry Nelson, a spokesman for John Deere, said it had found that a 
small amount of biodiesel in diesel blends improved the fuel. "But 
we're not comfortable yet with higher blends until we do more testing 
and have guidelines for safe storing," he said.

And there is one final hurdle for biodiesel advocates: What can be 
done with glycerin, a goopy byproduct of biodiesel refining? Although 
glycerin is often used in food, soap and cosmetics, it already is 
cheap and widely available, and the market for an additional supply 
is unclear at best.

"The biodiesel industry is just starting to sit down and think about 
what we can do with all that glycerin," Dr. Tyson said. 


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Biofuels at Journey to Forever
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