Good year for Biodiesel – production Breaks Records Wait. Make that a ‘great’ year.


Biodiesel enjoyed a rebound in 2011 after two down years, and the industry can now take all the soybean oil Ohio soybean farmers can provide. That bullish assessment of the industry comes from National Biodiesel Board (NBB) Chief Executive Officer Joe Jobe, who says that U.S. biodiesel produc- tion has set new monthly records every month since last April, thanks in part to extension of the biodiesel tax incentive last December and the fuel’s recent designation by EPA as an advanced biofuel. “Biodiesel is America’s only com-


mercialized advanced biofuel, a re- newable, clean-burning diesel replacement that is creating green jobs, reducing U.S. dependence on foreign petroleum and improving the environ- ment,” Jobe said. Biodiesel is now pro- duced in nearly every state in the country and supported more than 31,000 U.S. jobs in 2011, while replac- ing nearly 1 billion gallons of petro- leum diesel. A recent economic study found that in 2011, along with job cre- ation, the biodiesel industry generated $628 million in federal, state and local tax revenues. The Ohio Soybean Council (OSC)


and soybean checkoff have supported biodiesel for decades as soybean oil is


the most commonly used feedstock for the fuel. "Soy biodiesel is a product that soy-


bean farmers have supported and used on their farms for many years," said Patrick Knouff, OSC domestic market- ing chair from Shelby County. "This record-breaking year is a great success for all soybean farmers, both here in the state and across the country." Biodiesel production broke records in


2011, with over a billion gallons pro- duced by the end of December. This breaks the previous record of 690 mil- lion gallons in 2008.


Biodiesel Means Jobs Soybean checkoff dollars, managed by


OSC at the state level, cannot be used for lobbying and legislative activities. There- fore, as legislative issues have come up re- garding biodiesel, the Ohio Soybean Association (OSA) has stepped in. OSA, along with the American Soy-


bean Association and NBB are among 1,500 businesses, associations, community development organizations, and non- profit organizations that encouraged Con- gress to extend the $1 per gallon tax credit for biodiesel producers, which expired December 31, 2011. The tax credit was not extended by Congress, however. The benefits of the tax credit can be


summed up in a single word – jobs. NBB data shows that, after just five years of commercial-scale production, there are now 150 biodiesel plants in the U.S. The tax credit has helped generate substantial economic activity and household income that gets circulated throughout the econ- omy. This comes with the environmental


benefits and energy independence that biodiesel creates.


Getting Legs Under A Young Industry


NBB acknowledges that working for


extension of the biodiesel tax credit is difficult, given the troubling federal budget situation and concerns about the national debt. The tax credit went into effect in 2005, lapsed in 2010 and re- ceived one-year extension from Con- gress for 2011. NBB, OSA and ASA believe that the tax credit is important to help get legs under the young, develop- ing industry. “The tax credit remains a critical tool for stimulating innovation and investment in biodiesel,” Jobe said. “Biodiesel is not yet a mature industry, and the tax credit is necessary to enable us to compete with the entrenched petroleum industry.” The national biodiesel industry in


pursuing a goal of having five percent of the nation’s diesel fuel made from renew- able oils, such as soybean oil, by 2015, and extension of the tax credit can help make that possible. “Biodiesel is nation- ally available. It’s in the fuel stream. It’s at terminals. It’s in the system,” Jobe said.


Ohio Soybean Farmers— There From the Beginning


Since the founding of OSC and


the soybean checkoff in 1991, OSC and OSA – on behalf of Ohio’s soybean farmers – have invested significant resources and effort into soy biodiesel research and develop- ment, consumer education and promo- tion. According to Bret Davis, OSA


president from Delaware County, those investments have contributed to the growth of the industry and 2011’s record-setting production. “OSC and OSA are extremely


pleased with the growth of the biodiesel industry in the United States. Twenty years ago, the biodiesel indus- try set a goal to produce 34 million gallons by 1998; in 2011, the industry set a record at more than 1 billion,” Davis said. “That’s progress and a re- turn on investment Ohio’s soybean farmers can be proud of.”


NYC Depends on Renew- able Fuel Throughout the Year


New York City looks a little


greener these days thanks in part to biodiesel. This renewable, soy-based fuel powers Big Apple vehicles, fur- naces and generators year-round and can be found throughout the city from Central Park to John F. Kennedy Airport. Representatives from the


Ohio Soybean Council (OSC) and other soybean checkoff boards re- cently visited New York to learn more about the soy oil market within the nation’s largest metropolitan area. The New York Port Authority also


relies on biodiesel. It fuels the de- partment’s operations at JFK Airport. From airport shuttles and buses, to the plows clearing snow during emergencies, the port authority uses a B20 blend 365 days a year. That blend could increase to B50 in the fu- ture, according to port officials who rely on biodiesel to perform.


Big City emergencies prove no problem for Biodiesel “I was really impressed by how


integrated biodiesel is in so many of the city’s operations,” said Terry McClure, OSC board member from Paulding County. In addition, the New York Parks


Department uses a B20 blend of biodiesel when fueling diesel vehicles and generators, as well as replacing the oil heat with biodiesel to warm their buildings. The department has used strictly B20 in these applications for nearly two and a half years. Aside from diesel engines on the


roads, New York City also will use biodiesel to heat homes. Beginning in October, all Big Apple residents will make the switch from their pe- troleum-based heating source to Bio- heat®, a renewable heating oil made by blending biodiesel and home heating oil. A city law requires that all heating


oil used in New York City contain at least 2 percent biodiesel, or a B2 blend of Bioheat. The entire home heating oil market holds huge potential for biodiesel as well as the soybean oil that can be used to produce it.


“New York City has embraced


biodiesel as a fuel for their vehicles, as well as a fuel to heat their homes,” said McClure, who also represents OSC on the National Biodiesel Board. “They are leading the way and this is a great thing for soybean farmers.”


New York City tends to set the trend


for the rest of the country. By embrac- ing biodiesel throughout the city, metro- politan areas throughout the country may soon follow its lead and help im- prove the profit potential of soybean farmers throughout the country.


Ohio’s Country Journal • ocj.com • March 2012 • Crops 27


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56