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The uncertainty of the U.S. biodiesel market, caused by the double-whammy of the recent expiration of the $1-a-gallon federal biodiesel tax credit and the Environmental Protection Agency’s (EPA) proposal to effectively cut the amount of biodiesel required to be blended into the Nation’s fuel supply, could be a big driver for cheaper feedstocks. This article from Biodiesel Magazine breaks down how the combination of these factors is pushing producers even more than in the past to find cheaper feedstocks for the green fuel.

When EPA’s draft proposal was leaked prior to its official publication, Steve Bond with Blue Sun Biodiesel told Biodiesel Magazine, “One of the things we look at as the industry matures is, the more efficient plants are going to be able to stay near or at near capacity of 80 to 90 percent. So the impact will hit some plants that have been simply hanging on for the past few years, those that are either single feedstock or just less efficient—most of the impact will be felt by these plants,” he said. “In our Blue Sun Biodiesel plant in St. Joseph, Mo., we’ve invested a lot to make it efficient. But, it’s still a concerning issue. It’s clear the biodiesel industry can do more.”

The largest U.S. biodiesel producer, Renewable Energy Group Inc., announced in mid-December it was acquiring renewable diesel technology firm Syntroleum Corp. along with its 101 patents and 50 percent stake in the 75 MMgy Dynamic Fuels plant in Geismar, La. When the official RVO proposal came out, REG President and CEO Daniel J. Oh said, “REG’s lower-cost multifeedstock business model, network of biorefineries and terminals, and strong position within the industry should allow us to continue to succeed as the markets inevitably adjust to reach a new equilibrium.” Benavides says while large, public biodiesel companies like REG’s stock may fluctuate with the uncertainty, they will “be OK.”

The article goes on to point out how the low-cost production and low-cost feedstocks, which can represent 80-plus percent of production expenses, is driving new technologies to turn low-grade, high free fatty acid (FFA) materials into quality biodiesel. The story also breaks down some of the up-and-comers and their technologies as the industry moves into this area.

Temperatures falling to 30 below and snow piling up to your waist would make just about anyone nervous about using any type of transportation fuel. But the National Biodiesel Board‘s Biodiesel Bulletin says the folks at Jackson Hole Mountain Resort in Wyoming are proving that biodiesel works just fine in their snow cats and plows when it’s bone-chilling cold.

“I admit I was nervous the first winter we used biodiesel blends, but I’ve never looked back,” [fleet manager Steve] Parker says. “We’ve never had a problem with biodiesel, even on the coldest days.” Jackson Hole Mountain Resort is a Stakeholder in the Yellowstone-Teton Clean Energy Coalition, which has supported biodiesel outreach and education throughout the region. The National Biodiesel Board shared the resort’s winter success with biodiesel in a national message to biodiesel users across the country to educate about winter handling best practices.

Like regular diesel fuel, biodiesel can gel in very cold temperatures. Parker takes a few simple steps to ensure that his vehicles and equipment operate trouble-free all winter. First, he knows his fuel supplier and is confident that he is receiving high-quality fuel that meets the ASTM specification. In addition, his biodiesel is treated with a cold weather additive (just like regular diesel) and is tested periodically to verify its cold weather properties.

The NBB has several tips for making sure your biodiesel-powered machine is ready to go in the cold. Check ’em out here.