Biodiesel Players Forecasting Growth in Demand

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Researched by Industrialinfo.com (Industrial Information Resources, Inc.; Houston, Texas). Biodiesel (methyl esters) is a cleaner-burning diesel replacement fuel made from natural, renewable sources such as new and used vegetable oils and animal fats. Like petroleum diesel, biodiesel operates in combustion-ignition engines. 20% biodiesel blends mixed with petroleum diesel fuels can be used in nearly all diesel equipment.

Biodiesel has been a long-time favorite in Europe with existing capacities of over 7 million gallons per month. That market is projected to triple over the next few years. Soon Americans will be given the chance to see the many benefits the fuel has to offer. Currently, the US market consists of only a handful of players.

Companies like American Biofuels, Southern States Power, and West Central Soy are building new biodiesel plants and expanding current capacities, banking on the future growth of the industry. Currently, eleven U.S. plants produce roughly 60 to 80 million gallons of biodiesel annually. Seven grassroot plants are currently under development.

Jay Brunson, Synthetic Fuels Manager for Industrialinfo.com, said, Major companies like Procter & Gamble and ADM are looking at U.S. biodiesel markets as key profit drivers over the next five years and beyond. P&G already produces methyl esters at a plant in Cincinnati, Ohio and capacity could be expanded with little effort and time.

A new study documents that renewable fuels legislation now being considered for Senate energy packages could boost the U.S. economy by $300 billion and create as many as 300,000 new jobs in synthetic fuel sectors of the economy by 2016. Increased use of American-made fuels, like biodiesel and ethanol, would generate billions of dollars in income for America through increased production and job creation.