U.S Biodiesel Market Projections are compiled from market estimates
based in part on independent consulting firms, the U.S. Department
of Energy (DOE) and other sources which are in part dependent on
favorable legislation. View
America's energy sources are changing. Gone are the days of endless
petroleum importing and gas-guzzling. Today, our government is more
committed than ever to increasing the use of renewable fuels-including
biodiesel-in place of costly, imported fossil fuels.
National Renewable Energy Laboratories Estimates The National Renewable Energy Laboratory, which
studies the technology and market potential of alternative fuels,
estimates the total market potential of biodiesel -- using current
technology and agricultural capacity -- to be 1.5 billion gallons. A
biodiesel market at this level could replace 10% of current on-road
U.S. diesel consumption.Currently we are consuming
an estimated 20 million gallons of biodiesel per year. NREL researchers
believe they can get the total biodiesel market up to four billion
gallons, with the advent of new technologies and biodiesel-based
During the past few years Congress has passed several pieces of
legislation favorable to biodiesel incluing the Energy Policy Act
of 1992 (EPAct) and the new Farm Bill. The EPAct
8,500 pounds or heavier, convert 30% of their fleets to alternative
fuel vehicles (AFV) by 2010. The Farm Bill, signed into law in early
2002, helps the biodiesel industry by extending the USDA's bio-energy
program. The USDA¹s bio-energy program offers financial credits
to producers, stimulating increased production of biodiesel nationwide.
Biodiesel gained substantially more ground in 1998 when Congress
amended EPAct to include using B20 (20% biodiesel, 80% petroleum
diesel) in a diesel engine as an AFV. Biodiesel is also the first
alternative fuel in the U.S. to successfully complete the EPA¹s
strict Tier I and Tier II Health Effects testing under the Clean
Air Act. What¹s more: converting to B20 is 60-90% less expensive
than converting to other AFVs. With such enormous savings, it¹s
no wonder biodiesel is one of the fastest growing alternative fuels
Additionally, the EPA calls for petroleum refiners to reduce sulfur
(a lubricant) in diesel fuel by 97% by 2006. This means refiners
will need a lubricating ingredient to replace the sulfur in diesel
fuel. Fortunately, biodiesel offers a natural, cost-effective solution.
In fact, blending just 1% of biodiesel with diesel fuel increases
lubricity by up to 65%.
And the legislative action does not stop at the federal level. In
more than 15 states lawmakers have recognized the importance of renewable
fuels to America¹s economic health, national security and environmental
sustainability. Additional legislation is pending in many more states
across the country.
European biodiesel growth European sales of biodiesel will grow 25% per
year, to $2.4 billion by 2007, according to a report by Frost & Sullivan
(London). The growth is driven by EU directives allowing member
states to introduce tax advantages
for biodiesel use.