American companies seem to be betting that biodiesel will continue its explosive growth it has seen in recent years.
This story from Reuters says high oil prices along with the Bush Administration’s commitment to promoting the green fuel industry through monetary incentives seems to helping the industry along:
There are 115 biodiesel plants in the United States with a combined production capacity of 865 million gallons a year — about five days of total U.S. distillate consumption, according to industry group, the National Biodiesel Board (NBB).
But the addition of nearly 80 plants currently under construction is set to boost total U.S. output capacity to over 2 billion gallons over the next 18 to 36 months, adds NBB.
“I would say in the past three or four years, it (capacity) has grown three to four times in size,” Paul Nazzaro, who heads outreach programs at Jefferson city, Missouri-based NBB, told Reuters.
Nazzaro said output capacity grew exponentially after biodiesel producers received a $1 per gallon tax credit a few years ago. The provision is due to expire next year but his group is lobbying aggressively to get it extended, he said.
The article does point that there are still some sticking points with biodiesel such as improving the delivery system and making sure the higher percentage blends don’t gel up in cold weather. But if big oil companies such as ConocoPhillips trying to cash in on the business and tax incentives as well is any indication, this could be just the start of a major change in the domestic fuel business.
One of the people I met at the Kansas Speedway this weekend was Troy Hobbs, Monsanto Corn Biofuels Strategy Lead (left). He’s pictured here with 
Seattle-based Imperium Renewables is making an investment in its own future by loaning money to Propel Biofuels to build its first biodiesel filling stations in Washington state.
Rob Elam, president of Propel Biofuels, said that the company is looking to have its biodiesel equipment installed at about 20 fueling stations in Washington, Oregon and California by the end of this year.
And it is a mandatory approach. And the reason why I laid it out is because, one, I do believe we can be better stewards of the environment; and, two, I know it’s in our national interest to become less dependent on foreign sources of oil. The fundamental question is, will America be able to develop the technology necessary for us to achieve the goal. I think we can. It’s in our interest to share that technology, not only with our partners who are wealthy enough to spend money on research dollars, but also with the developing world.
It was a very competitive race here in Kansas City and at the end we get to see a familiar sight. Dan Wheldon holding up the trophy.
The green “e” Flag got the race started once again here today. However, the race is now over.
Just before the drivers get in their cars they line up for the national anthem.
Jeff Simmons has been running in the top ten for most of the race here in Kansas City so far today.
A 100% biodiesel-fueled boat has had to give up its quest to break a world record for racing around the world. According to