Biodiesel and Ethanol Investing

Washington publication Journal Star reports in a series of articles that, following the increase of professional biodiesel production in the United States from 25 million gallons in 2004 to nearly 700 million gallons in 2008, many “homebrew” operations are following suit. One local “homebrew” producer confidentially discusses everything from feedstock aromas in biodiesel to why he produces it. He uses local vegetable waste oil for his own vehicles, as well as teaches others how to produce their own, but admits there are problems in using 100 percent biodiesel in cold climates or unmodified engines. Some biodiesel professionals want this practice banned altogether. This farmer isn’t as quick to adopt ethanol, though, because of the food vs. fuel issue; the biodiesel he produces doesn’t have this problem. BioFuels Manufacturers of Illinois doesn’t agree and expects to break ground this spring for its $35-$40 million Mapleton plant with a 45 million gallon per year yield using the tiny seed, pennycress. Additionally discussed are operations which collect vegetable oil for wash and sale to biodiesel facilities, use of sun and wind power, and temporary tax credit programs for the biofuels industries.