COMMENTARY

Biodiesel has important role to play in reducing greenhouse gas emissions


Editor’s note: This commentary was written
by Joe Jobe, CEO of the National Biodiesel
Board (NBB), based in Jefferson City, Mo.
NBB is the national trade association of the
biodiesel industry and coordinates biodiesel
research and development.


Despite the recent frenzy of attacks on biofuels, the U.S. biodiesel industry strongly believes that cooler heads will ultimately prevail and that the benefits of expanded production and use of U.S. biodiesel will be widely accepted.

Biofuels have been unfairly blamed for everything from higher food prices to rainforest deforestation. These claims are largely based on faulty science, ignoring the large body of credible scientific evidence that shows biodiesel is a bright spot in our fuel supply — socially, environmentally and economically.

U.S. biodiesel production is not a significant factor in rising food prices. The “perfect storm” of rising energy costs, increased global commodity demand and the weak dollar are the main causes. In fact, in 2007, only 12 percent of U.S. soybean production and 4 percent of global soybean production were used by the U.S. biodiesel industry to produce fuel.

Of the soybeans used to produce biodiesel, 81 percent of the yield is protein that enters the market for either human consumption or animal feed. Because of the potential for biodiesel to create new markets for soybeans, U.S. soybean farmers — through the Soybean Checkoff program — have invested millions of dollars to research and test biodiesel.

The United Nations Food and Agriculture Organization (FAO) has calculated that of the land that could be used for agriculture today, only 3.7 billion acres of the 10.4 billion acres are used. And only 1 percent of that area is used for biofuels, which includes ethanol. Furthermore, according to U.S. Census data, the United States currently has the equivalent of more than 400 million gallons of soybean oil sitting in inventory.

During a news conference on April 29, President Bush countered questions about the impact of biofuels on food prices. He said the vast majority of the changes in world food prices are caused “by weather, increased demand and energy prices” — not by biofuels.

In addition, the overwhelming body of data demonstrates the environmental benefits of biodiesel. Consider these facts: Earlier this year, the National Biodiesel Board established a Sustainability Task Force, charged with overseeing the development and implementation of a comprehensive sustainability road map for the biodiesel industry.

As the demand for biodiesel continues to grow, the U.S. biodiesel industry is also working to advance feedstock development from non-food sources and to further improve the environmental “footprint” of existing oilseed crops as agriculture technology continues to develop. Other sources of biodiesel feedstock — such as restaurant grease, animal fat, corn oil derived from ethanol production, camelina and algae — have great potential to expand and diversify available material for biodiesel in a sustainable manner.

The U.S. biodiesel industry strongly opposes rainforest destruction and nonsustainable agricultural practices worldwide.

President Bush further highlighted America’s need for biofuels from an energy security standpoint, saying, “It’s in our national interests that our farmers grow energy, as opposed to us purchasing energy from parts of the world that are unstable or may not like us.”

The U.S. biodiesel industry is helping to increase the nation’s refining capacity by building plants that produce an American-made, cleaner burning fuel. The 500 million gallons of biodiesel produced in the United States in 2007 displaced 20 million barrels of petroleum. Merrill Lynch commodity strategist Francisco Blanch has said that oil and gasoline prices would be about 15 percent higher if biofuel producers were not increasing their output.

The Energy Independence and Security Act of 2007 (EISA), enacted in December 2007, updates the volume of renewable fuels required in 2008 and creates a new 36-billion-gallon program beginning in 2009 and continuing through 2022. For the first time, the program provides a specific renewable requirement for diesel fuel that establishes a 500-million-gallon standard for biomass-based diesel, which includes biodiesel, starting in 2009 and increasing to 1 billion gallons in 2012.

The U.S. biodiesel industry fully expects to meet the 50-percent greenhouse gas reduction requirement for biomass-based diesel under the federal Renewable Fuels Standard. During the Washington International Renewable Energy Conference 2008 in March, the President called biodiesel the “most promising” renewable fuel for helping to meet these new standards.

The facts are clear. Biodiesel significantly reduces carbon emissions, creates good-paying, “green” jobs and reduces our nation’s dependence on foreign oil. The biodiesel industry looks forward to constructively working with policymakers, biodiesel stakeholders, environmental organizations and the public to meet our shared goal of addressing climate change and energy security.





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