What are biodiesels?
Biodiesels are alternative fuels made from renewable resources. They may be produced from American crops such as soybeans, corn, or cotton, or from animal fats, or even from reclaimed food service oils. Biodiesels are used as a replacement for, or blended with petroleum (fossil) fuels.

Why do we need ‘biodiesels’ now?
There are a number of important reasons for our country to be using biodiesels. Perhaps the most important and most debated is that no one knows how long our world’s petroleum resources will last. Because biodiesels are made from renewable sources, developing the technology to produce them now will ensure an ample supply of transportation and heating fuel for the future, and provide assurance against the uncertainty surrounding the petroleum resource timeline.

Aside from guaranteeing the longevity of the supply system, biodiesels are produced domestically, from feedstocks which are grown domestically. This creates jobs and helps reduce our country’s trade deficit. The American biodiesels industry is estimated to add $24 billion and 39,000 jobs to the U.S. economy by 2015. Our agricultural community especially stands to benefit, since most biodiesels are made from crops and agricultural residues, providing options for new valuable crops, and new uses for existing crops and residues.

Producing our fuels domestically also improves our energy security; we become less dependent on the strategic, political and economic whims of other countries. With continued Middle East turmoil it is important to remember how vulnerable we are, and how heavy our reliance is on imported oil.

Finally, producing and using biodiesels is much better for the environment than burning fossil fuels. Biodiesels produce fewer harmful emissions during production and in combustion, and they contribute virtually no carbon dioxide to the atmosphere, which is very important for reducing the build up of greenhouse gases.

When did we become so concerned about heating oil?
Escalating heating oil prices sparked concern during the 1999-2000 heating oil season as homeowners and industrial heating oil customers faced significantly higher heating bills and shrinking supply. According to the U.S. Department of Energy (DOE), consumers paid an average of $1.21 per gallon throughout that winter; however, during late January to early February 2000 heating oil prices rose from $1.21 to $1.99 per gallon: a 64% increase. An alternative fuel commonly manufactured from soybean oil quickly gained visibility as a way to heat homes and buildings while extending the supply of heating oil. More sources and a better supply chain contribute to a more stable price structure. “Biodiesel” became and has remained the buzzword among energy insiders in Washington and in the Northeast.  Today both field and laboratory testing continue to demonstrate that biodiesel could not only extend the heating oil inventory, but also enhance the properties of heating oil.

“The phone was ringing off the hook with government agencies wanting to know if they could use biodiesel as heating oil – even the White House called,” said Krysta Harden, Washington representative for the American Soybean Association. “Representatives on Capital Hill wanted to see how biodiesel could alleviate the heating oil shortage and how it could fit into the overall energy program long term.”

This scenario got people thinking about the future, about the importance of domestic energy security, and alternatives to generic petroleum products currently being used to heat physical spaces and produce power.

Biodiesel to drive with and heat by?
Biodiesel was among the first alternatives to be considered for good reason.

Transportation - Biodiesel can be used in any diesel engine, usually with no modifications, and no conversions required. It can be blended with distillates at any level, and in fact blends seamlessly with conventional fuel oil. It is similar to diesel in performance and is used, handled and stored in the same manner as conventional diesel fuel. More than 80 fleets use biodiesel in blends of 20% or less, and it has been proven successful in more than 40 million on-road miles, plus countless off-road and marine miles. (All branches of the U.S. military use biodiesel. The city of Toronto uses B-20 in the summer and B-5 during the winter months for all municipal vehicles with diesel engines: fire trucks, school and city buses. )

Heating - Biodiesel fuel is compatible with No. 2 heating oil (a product refined from crude oil). As with transportation, biodiesel is blended with petroleum fuel for optimum performance in blends 20% or less. BioHeat fuel blends burn cleaner, leading to lower maintenance costs, reduce toxic emissions for improved health and a cleaner environment. The use of biodiesel to heat homes and buildings is common practice in Europe. With the benefits of immediate environmental effects, economic, energy security, and enhanced fuel quality, the momentum is building for the use of BioHeat here in the United States.

The Central Atlantic and New England states use approximately 75% of the heating oil burned annually in the U.S. By replacing 20% of those fossil fuels with renewable, American produced biodiesel, we could reduce our nation's total heating oil consumption by 15%, or an astonishing 22.5 million barrels annually.