NBB Highlights Biodiesel's Environmental Benefits

JEFFERSON CITY, Mo.– The National Biodiesel Board today reaffirmed its commitment to sustainable biofuels production and highlighted the numerous environmental and energy benefits of increased production and use of biodiesel.

“The facts are clear - America’s biodiesel industry is producing a sustainable fuel that is good for the environment,” said NBB CEO Joe Jobe. “The NBB opposes the use of non-sustainable agriculture practices worldwide. Our recently established Sustainability Task Force is working to ensure that the U.S. biodiesel industry continues to protect the environment, while producing jobs and reducing dependence on foreign oil.”

A U.S. Department of Agriculture (USDA) and Department of Energy (DOE) study has already shown soy-based biodiesel has a 78 percent carbon dioxide reduction. This study takes into account everything from planting the soybeans to delivering biodiesel to the pump. A 2007 update to the study found that for every unit of fossil energy it takes to make biodiesel, 3.5 units of energy are gained.

Further, the Renewable Fuels Standard (RFS), which was recently expanded under the 2007 Energy Bill, includes a requirement that biomass-based diesel, which includes biodiesel, reduce greenhouse gas emissions by 50% compared to petroleum diesel fuel in order to qualify as an advanced biofuel under the program. Based on the USDA/DOE’s previous analysis, NBB fully expects biodiesel to exceed this threshold.

In addition, NBB noted the following:

• In the United States, more than 80% of estimated 2007 biodiesel production came from domestic soybean oil. The rest was divided among other feedstocks such as recycled cooking oil, fats, and vegetable oils from other oilseed crops.
• The USDA reports that U.S. acreage for crop production has not increased since 1959. Major land use changes in the United States that would endanger environmentally sensitive lands are not expected due to biofuels.
• The United States is the largest exporter of soybeans in the world, making the importation of soybeans from countries with non-sustainable agricultural practices less likely. Other nations have already been increasing soybean production for decades.
• According to U.S. Census data, the country currently has the equivalent of more than 400 million gallons of soybean oil sitting in inventory. The 2009 RFS goal is the use of 500 million gallons of biomass-based diesel, which includes biodiesel. Soybean oil only represents half of the domestic raw materials available for biodiesel production in the United States.

The NBB is the national trade association of the biodiesel industry and is the coordinating body for biodiesel research and development in the U.S. Its membership is comprised of state, national, and international feedstock and feedstock processor organizations, biodiesel suppliers, fuel marketers and distributors, and technology providers.

House approves Energy Tax Bill

as reported by National Biodiesel Board

On Wednesday, February 27, 2008, the House passed H.R. 5351, the Renewable Energy and Energy Conservation Tax Act of 2008, by a 236 to 182 margin. Among its provisions, the bill:

• Extends the biodiesel tax incentive for 2 years through December 31, 2010.


• Properly classifies the tax treatment of co-processed renewable diesel.


• Retroactively denies the biodiesel tax incentive on "splash and dash" transactions.


• Limits the biodiesel tax credit to fuels produced in the U.S. for use in the U.S.

The fate of H.R. 5351 in the Senate remains uncertain. In addition, the Administration has signaled opposition to the measure based on provisions in the bill unrelated to biodiesel. Read the Administration’s SAP on H.R. 5351.

You may also read these documents relevant to NBB's interest in H.R. 5351:

NBB CEO Joe Jobe’s letter to U.S. Representative Charles Rangel (D-NY), the Chairman of the U.S. House Committee on Ways and Means, regarding H.R. 5351.

Joint Committee on Taxation’s (JCT) description of H.R. 5351

JCT’s revenue estimate for the bill.

Study Shows Strong Farm Bill Energy Programs Would Help Curb Global Warming

"Congress Must Invest at Least $1 Billion a Year in Energy Title to Benefit Environment, National Security and Rural America."

from FarmEnergy.org

CHICAGO, IL - A new study shows that farm-based renewable energy and energy efficiency programs in the U.S. Farm Bill could reduce greenhouse gas pollution by 57 million metric tons a year - the equivalent of eliminating the pollution from over 11 million cars.

The study, "Mitigating Global Warming through the Farm Bill," is the first to examine the potential greenhouse gas savings of the Farm Bill Energy Title. The study assumes funding of at least $1 billion a year, or $5 billion over the five-year life of the legislation, which is less than 2% of the total Farm Bill Budget. The programs in the Energy Title encourage development of farm-based and rural renewable power generation, biofuels facilities, and energy efficiency projects that provide low-carbon energy alternatives.

"Now is the time for Congress to fight global warming through innovative farm policy," said Howard Learner, Executive Director of the Environmental Law & Policy Center (ELPC), which conducted the study. "In a time of rising concern over the causes and consequences of global warming, these programs can put our nation on the right track."

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Iowa State, REG join effort to turn plastic into biodiesel

from The Hawk Eye

AMES -- Iowa State University researchers and biodiesel producers are participating in a federal project to turn plastic trash from military bases into fuel.

The project, funded this year with $1.65 million in federal money, could save $12 million annually in military waste disposal costs, said Rep. Tom Latham, the Iowa Republican who helped secure the funds.

"We have the greatest opportunity I've seen in my lifetime, today in Iowa, to be part of a solution, and that is to reduce our need for importing oil from overseas," Latham said. "There are huge concerns we all have about plastics going into our waste sites."

The research can change the way plastic is disposed, said Balaji Narasimhan, an Iowa State University associate dean of research and economic development.

General Atomics, based in San Diego, is the project's lead contractor. Renewable Energy Group Inc., a biodiesel producer and marketer in Ames, and ISU researchers will contribute to the project.

Mitch Zafer of General Atomics said temporary military bases -- where the technology will most likely first appear -- produce 3,200 pounds of garbage every five days. About 330 pounds of that is plastic.The technology would use the plastic trash to help make diesel fuel to be used at camp, Zafer said.

Arkansas SoyEnergy Opens Crush/Biodiesel Facility

from Arkansas Business

Arkansas SoyEnergy Group LLC on Tuesday marked the opening of what it says is the "first and only" biodiesel facility in Arkansas with an on-site crusher, making it capable of taking locally-grown soybeans "from the field to the fuel tank" at one location.

The facility, at Arkansas SoyEnergy's DeWitt plant on 2780 Highway 165 South, began operating in mid-2007, and fuel production will begin in April.

Arkansas SoyEnergy said its fuel production facility has the capacity to make 3.5 million gallons of biodiesel now, and can be expanded up to 10 million gallons. The facility is designed to produce cost-competitive biodiesel and other byproducts, and be a "significant contributor to the economy of Arkansas County and southeast Arkansas."

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NBB Expresses Support for "Sustainable Biodiesel"

from a Press Release issued by National Biodiesel Board (NBB)
(originally posted on February 4, 2008 - see update)

JEFFERSON CITY, Mo.– The National Biodiesel Board (NBB) supports efforts to ensure that biodiesel produced and sold in the U.S. comes from sustainable resources. On Monday, Feb. 3, at the National Biodiesel Conference & Expo, NBB Chairman Ed Hegland announced the appointment of a Sustainability Taskforce. The taskforce will look at ways that NBB can support efforts to ensure the world’s resources are used responsibly for biodiesel production. The NBB opposes the use of non-sustainable agriculture practices worldwide in biodiesel production.

The Renewable Fuels Standard (RFS), recently expanded under the 2007 Energy Bill, includes a requirement that specifies fuels must meet a threshold of 50% carbon reduction to be eligible. NBB is committed to working with the Environmental Protection Agency to ensure that this is developed in a meaningful way, and enforced.

Read more>>

UPDATE! NBB Appoints Members to Sustainability Task Force
Click here for details

60mmgy biodiesel plant placed on hold in Quincy

Building costs; Commodity prices cited as reason for "reluctance to step forward now."
from the Quincy Herald-Whig
By RODNEY HART Herald-Whig Staff Writer


Plans for a 60-million gallon biodiesel plant in Quincy have been put on hold.
America's Renewable Energy LLC, a division of Iowa-based Ewing Land Development and Services, announced plans 13 months ago to build a $77 million biodiesel plant in the south Quincy bottoms. It received a permit in July from the Illinois Environmental Protection Agency to proceed.

But Jim Mentesti, president of the Great River Economic Development Foundation, said America's Renewable Energy is reluctant to step forward on the project right now.

Mentesti said construction costs, high corn prices and fluctuations in the agricultural market contributed to the decision. America's Renewable Energy continues to study the project and decide what to do and when to do it, Mentesti said.

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Video: Renewable Diesel Derived from Algae

Solazyme video shows algae production process to make renewable, alternative fuels and alternative petrochemicals.

Boeing explores using biofuel to power jets

from The Wichita Eagle
BY TRACY ALLOWAY
Bloomberg News Service

LONDON - Boeing Co. said its planes may fly on a mix of biofuel and jet kerosene within five years.

The company has been examining the use of alternative fuels for two years, environment director Billy Glover said. A Virgin Atlantic Airways Boeing 747 is scheduled to make the first biofuel-powered test flight for a commercial plane later this month.

Boeing is focusing on so-called second-generation biofuels, which would be more environmentally friendly, Glover said. Algae has the "highest yield potential," he said. Oil from Babassu nuts -- grown in South America -- and the hardy Jatropha bush also are being considered.

"It can't be much more expensive, if any. How it's going to be price-competitive will depend on the processes selected, it'll depend on policy elements around biofuel, whether or not there's any assistance."

First-generation fuels such as vegetable oil may use up scarce water resources and compete with subsistence food crops in poorer countries.

"I think we're going to have a commercial product within about five or six years," Glover said. The percentage of biofuel in the blend will initially be "fairly low" because of the difficulty in producing it, he said.

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S.D. Tax Break Would Be Provided For Biodiesel

from the Press and Dakotan (Yankton)

PIERRE (AP) -- It may be a few years before biodiesel production in South Dakota reaches the point that would trigger a tax break at the pump for motorists.

That's what legislators were told Friday during review of a bill to reduce the state motor fuel tax on biodiesel.

Biodiesel is a blend of soybean oil and diesel fuel.

SB148 would cut the 22-cent tax on diesel fuel to 20 cents if it contains at least a 5 percent blend of plant oil.

The bill cleared the House State Affairs Committee 11-0, sending it to the House floor. The tax break would not start until biodiesel production capacity in the state reaches 20 million gallons a year.