July 2008, Work Truck - Feature
Industry Groups Address Expanding Biodiesel Use
By Richard Nelson
Each oil or fat is different in chemical composition, which impacts how biodiesel is manufactured and its cold weather properties, cetane level, and stability. Biodiesel feedstocks high in saturated fat content, such as beef tallow and palm oil, have better cetane values and are more stable, but have poorer cold flow properties. Feedstocks, such as soybean and canola oil, have the opposite properties. Biodiesel blends are biodiesel fuel meeting the ASTM D6751 specification blended with petroleum-based diesel fuel designated B-XX, where XX is the volume percent of biodiesel (e.g., B-20).
In 2007, estimates from the National Biodiesel Board (NBB) placed the national production quantity of biodiesel at 450 million gallons, up from 250 million gallons in 2006 and 25 million gallons in 2004. A significant factor in this increase was the passage of the "blenders" tax credit in the 2004 JOBS Bill, which allowed persons or businesses who blended B-100 with conventional petroleum diesel to receive $1 for every gallon of B-100 they blended, provided the biodiesel was produced from virgin vegetable oils such as soybean or first-use animal fats (e.g., beef tallow). The credit drops to $0.50 if waste greases are used.
The NBB is a national trade organization representing the biodiesel industry as the coordinating body for research and development in the U.S. The organization was founded in 1992 by state soybean commodity groups. Membership comprises state, national, and international feedstock and feedstock processor organizations, biodiesel suppliers, fuel marketers and distributors, and technology providers.
The NBB goal is to produce 5 percent of this nation’s on-highway fuel use from biodiesel, equating to roughly 2 billion gallons of B-100. The 5-percent level also equates to approximately one-fourth of diesel equivalent refined from Persian Gulf crude.