Biodiesel is a renewable alternative fuel created from vegetable oils, animal fats, and greases through a chemical process. The chemical process involves reaction of natural oils with an alcohol, and then refining the mixture to create molecules which can be easily burned in a diesel engine. Biodiesel fuel can be used in any diesel engine in pure form or blended with petroleum diesel at any level. Even a blend of 20% bio- and 80% petroleum diesel will significantly reduce carcinogenic emissions and gases that may contribute to global warming. Glycerin is the byproduct of the biodiesel production process, and can be used in personal care products or a variety of chemical applications.
Per a recent market study, the production and use of biodiesel fuel promises to bring $24 billion to the U.S. economy between 2005 and 2015, assuming biodiesel growth reaches 650 million gallons of annual production per year by 2015.1 This study also projected:
- Biodiesel production will create 39,102 new jobs in all sectors of the economy.
- Additional tax revenues from biodiesel production will more than pay for the federal tax incentives provided to the industry, keeping $13.6 billion in the U.S. that would otherwise be spent on foreign oil.