USDA Agricultural Research Service --Lincoln, Nebraska
Title
Convergence of Agriculture and Energy: III. Considerations in Biodiesel Production
Document Type
Article
Date of this Version
10-2008
Abstract
Concern about rising prices and unstable sources of petroleum fuels is driving
the search for U.S. domestically produced, renewable transportation fuels, such as
biodiesel. Federal incentives of up to $1.10 per gallon have been supplemented by additional
incentives and mandated biodiesel use in many states. The Renewable Fuel
Standard in the Energy Independence and Security Act of 2007 requires the domestic
use of 1 billion gallons of biomass-based diesel fuel by 2012, most of which likely will
be biodiesel.
U.S. biodiesel production is primarily from soybean oil, but recent high prices
have forced many producers to use lower-cost feedstocks such as animal fats and used
frying oils. A large portion of domestic production currently is exported to Europe,
where the devalued dollar and combined U.S. and European subsidies contribute to the
competitive price of imported biodiesel.
Although vegetable oils can be used directly in diesel engines, experience has
shown that excessive deposits in the engine cylinder degrade engine performance and
increase emissions over time. Conversion to methyl esters allows vegetable oil to be
used in diesel engines with fewer problems. These methyl esters have become known as
“biodiesel.” This document reviews the technology of biodiesel production and the
issues and policy implications associated with the expanded use and production of
biodiesel.
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CAST Commentary
QTA2008-2 October 2008