energy.agwired.com

“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.

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.

This story in the Eugene (OR) Register-Guard says one company in that area has overwhelming support for biodiesel as a home-heating oil:

Automatic Heat serves about 2,000 customers with oil furnaces, “and about 85 percent are using biodiesel — it’s pretty much clipping right along,” (Automatic Heat general manager Michael) Schilling said. “We offer our customers a B20 blend of 20 percent biofuel and 80 percent low-sulfur (diesel). We don’t go higher because, like cars, some fuel systems can’t handle more than that without modifications.”

Before Automatic Heat began offering biodiesel heating oil two years ago, “we polled our customers and told them we were considering it,” Schilling said. “At that time, about 70 percent of them said they wanted it, even at premium prices.”

Proponents of oil-burning furnaces point out that they burn hotter and do a better job of warming a home than other fuels, such as natural gas. Plus, with cleaner-burning, low-sulfur diesels mixed biodiesels, the arguments about that sooty, diesel smell fall flat. And if that’s not enough, most home furnaces can easily burn B20 biodiesel, and with approval from a certified home heating technician, 99.9 percent biodiesel can be used.