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generated by the potential for alternative fuels is mounting and the opportunity for individuals with the entrepreneurial spirit to enter this growing industry has never looked better than it does today.
As with any new industry, there are challenges in store for those who want to become biodiesel producers and Orbitek is here to help its clients reach their potential by offering an extraordinary product with extraordinary service at an extraordinary price.
We’ve researched the market place and we know how BT stacks up against the competition. Our product is more efficient, our services more comprehensive, and our price is the best.
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for biodiesel is growing rapidly … And many analysts feel that the projection of US production of biodiesel topping 1 billion gallons per year by 2012 is going to be reached much sooner than that. Why? Because the market drivers for alternative fuels continue to grow stronger and more compelling every day.
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The high cost of petroleum fuel coupled with the issue of energy security is an extremely powerful influence. One doesn’t have to be a political scientist to appreciate that the world is rapidly changing and country’s like China and India, that are realizing huge economic growth are driving up the prices of most raw materials, especially oil. In addition, unrest and political instability in many of the oil producing countries seem to be at the root of the extremely high costs we pay for oil.
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The fact remains that the US imports over 60% of its petroleum and there are many countries who import 100% of their need. Reducing dependency on such an expensive and volatile commodity is in the best strategic interests of our country especially when communities and states can recapture those energy dollars providing jobs, economic growth, and new tax base while helping improve the environment.
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in the US, grants and incentives are being offered to producers, distributors and marketers at both the Federal and State level. Whether in trying to help bring parity at the fuel pump due to some of the high associated costs with biodiesel’s feedstock or to encourage expanded production, public policy is a major driver at this time. Internationally; Europe, Canada, China, Australia, and Brazil are among countries which have policies in place to promote the development and use of renewable fuels.
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The rationale that guided the creation of the Kyoto Accord for reduction in global greenhouse gas emissions is gaining credibility even among naysayers and concerned citizens are demanding environmental accountability. Fact is that biodiesel does not add significant new carbon to the ecosphere, burns much cleaner than regular diesel with virtually none of the toxins associated with petroleum diesel, and is totally biodegradable on a level similar to sugar. It has a much better energy balance than its big brother ethanol and can make every diesel engine, generator or burner into a bio-friendly, alternative-fueled application.
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Fact is, whether we say 60% of our petroleum is being imported into this country, or for most communities that 100% of the diesel being used is brought in from some place else, if part of that diesel fuel can be replaced by a cleaner burning fuel that is made in that community from feedstock found locally (i.e. vegetable oil, animal fat, or recycled restaurant grease), those energy dollars are going to be captured locally in that community. And those dollars mean new industry for the community, sustainable new jobs, expanded tax bases, a cleaner environment, and perhaps most important, It also means economic growth. Because each one of those dollars captured is going to be turned over and spent again and again. While there is some disagreement among economists, each dollar captured may mean as much as eight times that in new economic growth. So a $10M a year facility (about a 4MMgpy) may be generating as much as $80M a year in new economic activity for a community (remembering that the only money being made locally from the sale of petroleum diesel are the margins the service station realizes on each gallon sold, about $0.15/gallon, which will still be realized with the biodiesel sale).
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improved performance and greater availability for diesel engines in passenger cars are expanding demand for not diesel engines and creating expanded markets for biodiesel. With most engine manufacturers endorsing the use of biodiesel in a 5% to 20% blend with petroleum diesel for their heavy-duty & light-duty trucks, SUVs, and/or cars, and with European car manufacturers taking the lead, consumers are taking advantage of the 40% more power, 60% more torque and 35% better fuel economy that diesel-engine vehicles enjoy over their gasoline powered counterparts. Increasingly the US market is also moving in that direction. Daimler Chrysler, General Motors, Volkswagen and Subaru…to name a few, have all introduced diesel models in 2007 and intend adding many more models to their diesel line-up in the next five years.
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for biodiesel are as varied as the use of diesel fuel. Sectors which have historically been huge users of petroleum diesel represent a potential for biodiesel use in the future.
o Home Heating is a growing market representing more than a 7B gallon per year potential. While it might be unrealistic to project 100% penetration, the fact that biodiesel is cleaner burning, reduces both odor and coking, is much safer, and may offer less market volatility than its petroleum counterpart, does suggest that this will be a very important market niche for biodiesel, especially in the Northeast, and may even have more market potential than on road use! Replacing even 5 percent of regular heating oil with biofuel plays a huge part in lessening our reliance on foreign oil imports, which in turn helps give us a little bit more stability with the fluctuating prices. Biodiesel works well in a variety of boilers and furnaces. Heating oil is very similar to diesel fuel. They're basically interchangeable products, so biodiesel works very well blended into heating oil.
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Utilities are increasingly being challenged to increase their portfolio of “green” power and with the seamless integration of biodiesel with diesel generators, the projected use of biodiesel in this market sector is for substantially increased usage. The high cost of energy and shortage of critical fuel supplies prompted America's electric utilities last year to become more resourceful than ever. America's major utility companies have been pursuing innovative programs aimed at increasing energy supply, reliability and efficiency, while at the same time limiting costs.
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Trucking Fleets: The Energy Conservation Reauthorization Act of 1998 allows federal, state and alternative fuel provider fleets who must comply with the Energy Policy Act (EPAct) and Executive Order 13149 to meet up to 50 percent of their light duty alternative fueled vehicle purchase requirements with biodiesel. The biodiesel fuel use credit gives fleets and covered persons, who are otherwise required under EPAct to purchase alternative fuel vehicles (AFVs), the option of purchasing and using 450 gallons of biodiesel in vehicles in excess of 8,500 lbs. gross vehicle weight instead of purchasing an AFV. Fleets must purchase and use the equivalent of 450 gallons of pure biodiesel in a minimum of a 20% blend to earn one AFV credit. A study by Booz-Allen & Hamilton, Inc., found fleets using a 20 percent biodiesel blend would experience lower total annual costs than other alternative fuels. Similarly, results reported by the University of Georgia indicate biodiesel-powered buses are competitive with other alternatively fueled buses with biodiesel prices as high as $3 per gallon.
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School Busses are one of the largest mass transit programs in the United States. Every school day, some 440,000 yellow school buses transport more than 24 million children to and from schools and school-related activities. At the current time, the vast majorities of the school buses are powered by heavy-duty diesel engines and consume conventional #2 diesel fuel. School buses are the safest way for children to get to school. However, pollution from diesel vehicles has health implications for everyone, especially children. One of the easiest and best options for school districts to implement to protect student health is to switch to biodiesel, a cleaner transportation fuel made from renewable resources. It is recognized by EPA as one of the Clean Fuel/Clean Technology options under the Clean School Bus program. It can be used in existing equipment and stored in existing facilities without modification, in any blend from one to 99 percent. Because of its benefits, many school districts across the nation have decided to use biodiesel for their transportation needs.
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Mass Transit Systems: Transit fleets report positive experiences with biodiesel. Transit fleets report positive experiences with biodiesel. City bus fleets that have used biodiesel include those in Cedar Rapids, Iowa; Cincinnati, Ohio and St. Louis, Missouri. Bi-State Development Agency in St. Louis conducted one of the first demonstration projects using biodiesel blends in Call-a-Ride vans to evaluate its suitability as a motor fuel. The evaluation revealed that:
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Biodiesel is a viable motor fuel
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Performance and fuel economy were unchanged
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Exhaust emissions improved dramatically
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The fuel was fully compatible with vehicle and fuel dispensing equipment
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Rail: The UK's first train to run on biodiesel is going into service as part of an attempt to make rail travel more environmentally friendly. The Virgin Voyager has been modified to run on eco-friendly fuel and the company is aiming to convert more in the future. The train uses a blended fuel which is 20% biodiesel - to reduce CO2 emissions without harming the engine. If successful, Virgin hopes to convert its entire Voyager fleet to biodiesel fuel, which could cut emissions by 14%. Virgin boss Richard Branson said the environmental impact was equivalent to taking 23,000 cars off the road. He said the company hoped in future to use 100% biodiesel - equivalent to removing 100,000 vehicles from the road.
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Agriculture: Biodiesel provides an opportunity for farmers to create demand for the crops they grow through on-farm use. Farmers' commitment to biodiesel is reflected in their $25 million investment in the product through check off dollars. The industry has encouraged all farmers to ask their fuel distributors to carry biodiesel in at least a two percent blend (B2). Building demand at a grassroots level is critical to the addition of biodiesel to terminals on a large national scale. Although biodiesel is compatible with existing diesel technology, including diesel tanks and other infrastructure, some petroleum distributors may choose to have separate tanks for biodiesel. Adding those tanks now to meet farmer demand will help ensure that the infrastructure is in place to meet future demand from the general public. Farmers recognize that biodiesel is a high-quality product to use in their farm equipment. Even low blends of biodiesel like B2 and B5 offer exceptional lubricity, thus slowing engine wear and tear. Plus it is a cleaner-burning fuel that is friendlier to the user and the environment
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Heavy Equipment: Increasingly, construction companies and others are realizing the health, environmental and energy security benefits of using cleaner-burning biodiesel in construction equipment. As the construction industry begins moving toward implementation of the Environmental Protection Agency’s (EPA) low-sulfur regulations scheduled to go into effect in 2010, the industry increasingly recognizes biodiesel as part of today’s solution. Because biodiesel can help replace lubricating properties lost in the sulfur removal process, it’s a natural choice. And, it has the added benefits of being cleaner-burning, domestically produced and renewable.
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Base-oil & Marine: For research vessels and consumers using commercial vessels, biodiesel offers a more environmentally-friendly alternative to regular diesel. Because it is non-toxic and biodegradable, consumers and researchers may pressure owners for biodiesel use, especially in sensitive or protected waterway areas. Biodiesel is a viable alternative to several categories of the marine industry, including: recreational boats, inland commercial and ocean-going commercial ships, research vessels, and the U.S. Coast Guard Fleet. Today, much of the emphasis is on recreational boats, which consume about 95 million gallons of diesel fuel annually.
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