ISA » Industrial Uses » Biodiesel

Biodiesel is a clean-burning, renewable fuel produced from domestic resources like soybeans and other vegetable oils and animal fats. Biodiesel contains no petroleum, but it can be blended at any level with petroleum diesel to create an alternative fuel for use in diesel engines with very few or no modifications. The final ratio is indicated by a "B" factor, such as B11 for an 11-percent biodiesel/petroleum diesel blend, B20 for a 20-percent blend and so on.

The Only Advanced Biofuel

Biodiesel exceeds the requirements to be an advanced biofuel under the EPA's Renewable Fuel Standard (RFS2). EPA-required Tier I and Tier II testing has conclusively demonstrated that biodiesel significantly reduces virtually all regulated emissions. Biodiesel has been found to reduce greenhouse gas emissions by 57 percent to 86 percent, depending on the feedstock used.¹ It also is the only alternative fuel to have successfully completed the health-effects testing requirements of the Clean Air Act. Biodiesel does not pose a threat to human health and, in fact, it's less toxic than table salt.

Biodiesel Boosts Local Economy

Biodiesel helps reduce America's dependence on foreign oil while creating local job opportunities. The biodiesel industry displaced nearly 1 billion gallons of petroleum diesel in 2011 and supported some 31,000 jobs across the country.¹ Despite this high volume, less than three percent of the nation's annual soybean harvest is used for U.S. biodiesel production. That's because when soybeans are processed, 85 percent of bean mass becomes meal which is primarily used for livestock feed. The remaining 15 percent is oil that can be used for biodiesel, among other things.

As a result of the increased demand for soybean oil, soybean meal availability has increased, and that has been a boon for the livestock industry. As processed meal, soybeans are a terrific source of high-quality protein for livestock. A 2011 report titled "Soybean Oil and Meal Economics: How Livestock Producers Benefit from Biodiesel Production" details recent industry developments and examines what could happen to the market if biodiesel did not use the excess oil produced in the crushing process.

Biodiesel in Illinois

In Illinois several biodiesel manufacturers and retailers market fuel to farms, fleets, cities, companies and consumers. Biodiesel improves lubricity and minimizes engine wear, helping trucking companies and others save money on repair costs. Most major trucking companies in Illinois use B11 because of favorable tax regulations; however, blends up to B20 are readily available through both centrally fueled fleets and over-the-road fuel retailers.

For more information read the myths and facts of biodiesel, relevant tax incentives and find out what's new in the industry.

¹Biodiesel Industry Statement on Renewable Fuel Study: NBB VP Steckel Comments on National Research Council Report