By Dan Lemke

Next time you’re stuck in traffic behind a smelly diesel truck belching black smoke, imagine clean, clear air -- and the smell of French fries.

Because if the truck or bus you’re trailing was powered by biodiesel, that’s exactly what you’d get.

Biodiesel is cleaner-burning diesel fuel manufactured from natural, renewable resources such as soy oil. If biodiesel use reached its full potential, Americans would use 50 million gallons per year, says the National Biodiesel Board.

The United States spends $60 billion each year to import nearly half of its oil, and the need for oil is growing. Once biodiesel gains widespread acceptance and the market matures, it could add $11 billion to the economies of the 29 states growing soybeans.

Understandably, the potential market demand excites soybean growers. “It’s the only home run available (for soybeans) right now,” says Roger Peterson, a farmer from Clarks Grove, Minn. and a director for the National Biodiesel Board.

B-20 the best bet?

Pure biodiesel used as truck fuel is a long way off, perhaps. But workable here and now are mixtures of biodiesel and petroleum diesel. A 20-percent biodiesel blend called B-20 tests well, reducing odor, cutting carbon monoxide emissions and lowering particulates (the black smoke effect) by 14 percent. At the same time, the biodiesel portion increases fuel lubricity, or slipperiness, which saves wear and tear on expensive engines.

The U.S. Energy Policy Act or EPACT, enacted in 1992, is boosting biodiesel’s acceptance. Meant to ensure national energy security, the policy aims to replace imported petroleum products with domestic alternative fuels. Under EPACT guidelines, government and utility fleets earn federal credits for burning biodiesel blends.

“Our original investments in biodiesel were to make it legal to sell and to make sure it worked,” says Scott Singlestad, a farmer from Waseca, Minn. and domestic marketing committee chair for the Minnesota Soybean Research and Promotion Council. “Now we’re expanding because the EPACT regulations allow biodiesel to be used as a compliance mechanism. That’s bolstered B-20 in that market segment.”

Hitting a new low

While promotion of B-20 continues, biodiesel proponents are also touting “low blends,” diesel fuels with around one percent soy methyl esters added. Remarkably, even low blends can increase fuel lubricity by 30 percent.

“Low blends are a means for producers and other users to easily help with building a market at a low cost and still gain the benefits of lubricity,” Singlestad says.

Low blends such as B-2, sold as preblended fuels or fuel additives, are more palatable for some consumers as they add only 2 to 3 cents a gallon to fuel costs. B-20, by comparison, can cost 20 to 25 cents or more per gallon over conventional diesel fuel. Still, advocates say the use of biodiesel would be a net gain.

“If just farmers used B-20 in their tractors and machinery, they would add enough to their soybeans to essentially get 20 percent of their fuel free,” Peterson says. “Plus, they’d make a profit.”

Pioneering efforts

Minnesota has been a leader in the biodiesel field. Efforts at the University of Minnesota Center for Diesel Research, the National Biodiesel Board, AURI, the American Soybean Association, the Minnesota Soybean Growers and others have spurred the development of an emerging biodiesel industry here. “We’re in the company of pioneers,” says Max Norris, AURI oils scientist. “We’ve taken an old technology, made it a product reality ... and it has great potential. Unfortunately, we’re not home free yet.” Biodiesel has been tested rigorously and with positive results. The National Biodiesel Board reports more than 100 tests, logging over 10 million road miles. Tests repeatedly confirm that biodiesel fuel mileage and power are similar to those of conventional diesel, and the exhaust is clearer with less offensive odor. Yet, despite the renewable domestic fuel’s attributes, biodiesel faces challenges in market acceptance.

“There’s a lot of educating that needs to be done,” Peterson admits. “Farmers need to buy it to open those markets. That will make it more readily available to them and other users like truckers and construction fleets.”

And “biodiesel still has a price problem,” Norris concedes. “That’s why we’re still in the process of finding ways to reduce that cost to consumers.”

Through a Legislative Commission on Minnesota Resources project, AURI is helping identify and test alternative oil sources to reduce the costs of biodiesel and enhance demand. Utilizing waste oils and animal fats, for example, could lower production costs.

Testing soy methyl esters for biodiesel has also yielded results outside fuel applications, Singlestad says. “Biodiesel is the biggest and most visible result, but other oil-based products like solvents and cleaners are coming about as a result of that research, and they’re finding their place in the market.”

Despite the higher costs, biodiesel promoters such as Peterson claim that the benefits of having a renewable, environmentally friendly alternative fuel from farms is just good policy.

“It makes no sense to ship soybeans for $4 a bushel when it costs $6 a bushel to produce them, and then spend billions to buy fuel from other countries. The sooner people realize this the better.”