“Here’s the rub with a mandate. We can mandate that people have to buy biodiesel. It doesn’t create vegetable oil” Those are the words of John Campbell, vice president of Omaha-based Ag Processing, Inc.
It might seem a bit strange coming from a guy who works for a biodiesel-producing and selling company. But this article from the Des Moines (IA) Register says Campbell questions whether the mandate makes sense, given the soaring price of biodiesel’s major feedstock, soybean oil:
With farmers increasing corn acreage to make more ethanol, the price of soybean oil has been in the stratosphere this year, reaching as high as 45 cents a pound, an increase of more than 10 cents since this spring. And, of course, the energy bill requires more usage of corn ethanol each year at the same time it mandates the increased biodiesel consumption.
Given that it takes 7.5 pounds of soybean oil to make a gallon of biodiesel, it’s not hard to figure out why the nation’s biodiesel plants are producing nowhere near their capacity despite the $1 a gallon federal subsidy. The industry is capable of producing 1.8 billion gallons a year, but is expected to produce as little as 300 million gallons this year.
The bill would allow the mandate to be reduced if feedstock costs make the fuel too expensive.
The article goes on to say that subsidies will get progressively more expensive as the biofuels mandate, or renewable fuel standard, continues to grow. But Matt Hartwig, a spokesman for the Renewable Fuels Association, is quick to say let’s get the RFS passed, and then we can talk about tax incentives. Biodiesel advocates also point out that the mandate will help promote the development of new biodiesel feedstocks.


There’s been plenty of talk about using biodiesel in our vehicles. But some people might not know that the green fuel is good for keeping your home warm on these cold winter nights.
A survey conducted at the recent University of Minnesota’s E3 2007 Conference: The Midwest’s Premier Energy, Economic and Environmental Conference says attendees believe oil prices will be the primary driver of sustainable energy development and commercialization in the Midwest.
Forty percent of the attendees surveyed believe oil prices will be the primary driver of sustainable energy development and commercialization.
The Food and Energy Security Act of 2007 passed by the Senate last week includes increased funding for alternative energy sources. 
“We are excited about the opportunity to help showcase the advances being made in biofuels and the role they can play in the effort to reduce our nation’s reliance on petroleum,” said Paul Schickler, Pioneer president and DuPont vice president and general manager.
A new message accompanies the ice resurfacing machine at University of Minnesota hockey games. The new “E85 Zamboni” debuted this month during a game between the Gopher Men and the University of Alaska-Anchorage.
The
About 55,000 students in the Philadelphia area will be riding to school on more than 500 buses fueled with biodiesel starting next year.
Diane Herrin, a West Chester mother of two, founded Moms for the Future with a few other mothers as an advocacy group. Environmental issues top the group’s docket at the moment.
National Wind, LLC, a leader in large-scale community-owned wind power projects is getting a boost in its capital from South Dakota-based Harmony Equity Income Fund.