National Biodiesel Day

To many, March 18th means the celebration of Saint Patrick's Day, But, today is also Rudolph Diesel's birthday.

Over 100 years ago Rudolf Diesel discovered an innovation that was cutting edge. Today, no other engine inventor's name is so intently tied to his engine.

His pursuit to find more efficient ways to use steam as the working fluid in heat engines led to patents in 1892 & 1893 for the cycle of an engine using the compression-ignition method. Diesel then tackled the obstacle of the compression-ignition engine as a refinement of the petrol engine invented by Niklaus Otto in 1876. Although he experienced several obstacles with manufacturing, licensing, and financial stability, he spent the rest of his life introducing his invention to the world.

The diesel engine was originally made to run on peanut oil, and only later did petroleum become the standard fuel. Diesel said, "the use of vegetable oils for engine fuels may seem insignificant today, but such oils may become, in the course of time, as important as petroleum and the coal tar products of the present time."

Diesel eventually revised his first model and in 1894 his new engine ran for more than a minute. This engine had a mechanical efficiency over 75%, surpassing the steam engines of that time which where running at less than 10%.

In 1898 Diesel made himself a millionaire by selling the rights to his engine to a Missouri beer manufacturer named Adolphus Busch. His determination and sales were so monumental that they were used in almost all US submarines during WWI.

On September 29, 1913, Diesel disappeared from the Harwich-Antwerp ferry as is crossed the Channel and was never found. Since his death the diesel engine has become and integral component in transportation and manufacturing.

National Biodiesel Conference & Expo

Come see SRS Engineering Corporation at the 2010 National Biodiesel Conference & Expo being held February 7th through the 10th in Grapevine Texas at the Gaylord Texan Resort & Convention Center.

This is a fantastic forum for the biodiesel industry to network with numerous biodiesel marketers, feedstock growers, fuel distributors, governament leaders and other biodiesel stakeholders. This year, the NBB has the new Biodiesel Networking Center and a new and improved NBB Connections social networking website to accomodate the numerous open forum "round table sessions."

Futures forecaster Don Reynolds will be a keynote speaker sure to pique interests with his answers to questions regardint the "new normal" in the business environment.

To see a full list of exhibitors go to www.biodieselconference.org/2010

U.S. House of Representatives Extends Biodiesel Tax Credit One Year

The House approved the expansive $31 billion tax extenders package 241 to 181, which includes a one year extension for the biodiesel tax credit set to expire December 31, 2009. This will continue the biodiesel tax credit into 2010. However, the Senate must still act on the plan.

"While it remains to be seen when or if the Senate will take up this tax incentive provision, the NBB will continue to work with its memebership and Senators to ensure this important measure is passed and signed into law," said Michael C. Frohlich, Director of Communications for the National Biodiesl Board's Washington, D.C. office.

"In terms of the five-year tax extension that would also alter the credit from a production excise credit to a producers credit, it is clear that due to the legislative calendar and the priorities currenly facing Congress - healthcare being front and center - that legislation will not be voted on this year. Therefore, the NBB has decided to endorse the one year extension as to ensure that the tax credit does not expire, and will continue to work towards a multiyear producer tax credit in the future."

It’s a Very Biodiesel Christmas in Washington D.C.

Ironically, on the heels of the expiration of the Biodiesel Tax Incentive on December 31, the Capital Christmas Tree has made its 4,000 mile journey cross country from Arizona to the nation's capital on trucks fueled with a B5 biodiesel blend.

"It is significant that the Capitol Christmas Tree was delivered with biodiesel because economic development, carbon reduction, and energy security continue to dominate national priorities", said Joe Jobe, CEo of the National Biodiesel Board. "Biodiesel helps us achieve all of those things".

The trucks carrying the tree and its 10,000 handmade ornaments and 80 companion trees that will be set up throughout the Capital Complex made their journey across the country using the "BioTrucker" system, traveling from some of the 800 existing biodiesel stations to fuel up with donated biodiesel along the way.

Biodiesel is a renewable fuel for diesel engines. It reduces lifecycle carbon dioxice emissions by 78 percent, is made domestically from agricultural byproducts such as soybean oil and other fats and oils, and it supports thousands of green jobs.

To help save the Biodiesel Tax Incentive, please visit the National Biodiesel Board's Tax Credit Action Center by Clicking Here.

Help Save the Biodiesel Tax Incentive

The Biodiesel tax incentive will expire on December 31, 2009 unless Congress acts affirmatively to extend the tax credit.

The biodiesel tax incentive was enacted in 2004 allowing the nation to reap the economic energy, security and environmental benefits associated with commerical scal production and use of biodiesel. This incentive is designed in such a way that makes biodiesel competitively priced with petroleum diesel in the marketplace.

If the credit is allowed to lapse, it will intensify the astounding challenges that face the industry already and will cost the U.S. an additional 23,000 jobs to the 29,000 that have already been lost in 2009.

According to a study released by renowned economic analyst, John M. Urbanchuck, there will be a major loss of jobs and income, increased demand for petroleum diesel, a degradation of energy security, decreased demand for soybean oil and lower soybean prices leading to a negative impact on farm income, stranded investment as biodiesel capacity is idled, and lost tax revenue for States and local Governments.

The U.S. House of representatives is tentatively scheduled to consider legislation that would extend a host of expiring tax provisions, including the biosiesel tax incentive for one year. With health care dominating the Senates focus, it's unclear when, or, if the U.S. Senate will address this issue before the end of the year. Both chambers must reach an agreement of the final makeup of a larger tax bill carrying an extension of the biodiesel tax incentive.

The National Biodiesel Board, (NBB) has provided a Tax Credit Action Center with a sample letter, talking points, and contact information for your elected officials. Those who wish to participate in saving the Biodiesel Tax Incentive can visit the site provided by the NBB by Clicking Here.

Worldwide Demand for Biodiesel Expected to Double in the Next 5 Years

Biofuels usage is not only expanding in the U.S. and Europe, but also in Asia and Latin America. Tammy Klein, Executive Director of Global Biofuels Services for Hart Energy Consulting stated that thirty countries are implementing biofuels targets in 2010, with many of these countries in the developing world encouraging biofuels as a means of building energy security and improving their rural economies.

The Demand for biodiesel is anticipated to double and the supply of Biodiesel is predicted to triple in growth between 2009 and 2015. "Currently there is massive overcapacity on a gloabal basis in the biodiesel industry and utiliztion rates are generally below 50 percent", Klein added. At present, global biodiesel capacity is already capable to supply the demand projected for 2015 of 10 billion gallons per year.

Developing countries hold 17 percent of demand and nearly 50 percent of supply, (mostly for domestic use), and is expected to grow to 42.6 percent demand and 59.2 percent supply by 2015. At this time, thirty countries are utilizing the typical B5 blended biodiesel. Countries in Europe are migrating to a B7 blend and Brazil aiming even higher. Indonesia is contemplating B10. Many Countries are looking to biofuels to create jobs, economic development and domestic energy.

To read more Click Here

Canadian Biofuel Production Expected to Increase

Government subsidies for renewable fuel requirements and production plants will boost biofuel production to an anticipated 76% in two years as reported by Biofuels International.

Currently produces 1.3 billion liters of ethanol and 120 million liters of biodiesel annually. Biofuel production will reach 2.5 billion liters yearly by2011. This includes 2 billion liters of ethanol and 500 million liters of biodiesel according to Gordon Quaittina, President of the Canadian Renewable Fuels Association.

Canada will mandate 5% renewable-fuel blend in petroleum by 2010 and 2% blend in diesel and heating oil by 2011.