http://www.detnews.com/2003/business/0301/05/b04-51534.htm

Sunday, January 5, 2003

Marcio Jose Sanchez / Associated Press

David Hawley displays a bottle of biodiesel at Yokayo Biofuels in 
Ukiah, Calif. Biodiesel is the fastest growing alternative fuel in 
the country.

Biodiesel popularity grows

Backers say fuel extends engine life, reduces pollution

By Karen Gaudette / Associated Press

UKIAH, Calif. -- Surrounded by a pack of tail-wagging dogs, Dave 
Hawley stuck his bearded face up to the exhaust pipe of his delivery 
truck, closed his eyes and inhaled.

Hawley is indeed hooked on biodiesel, a pollution-reducing fuel 
gleaned from restaurant grease or the oil of crops like soybeans.

Biodiesel is the fastest-growing alternative fuel in the country, 
according to the National Biodiesel Board, which touts its ability to 
extend engine life, improve fuel economy, cut down on air pollution 
and reduce reliance on foreign oil. It has been in use in Europe for 
some 15 years.

But biodiesel is more expensive than traditional diesel -- at least 
30 percent more at one point last summer. To lower costs, lawmakers 
have proposed tax incentives for using biodiesel, but Congress 
adjourned for the session without acting on the bills.

"If it were the same price, I think we would see use expand 
dramatically," said Jenna Higgins, spokeswoman for the biodiesel 
board, a trade group affiliated with the U.S. Department of 
Agriculture.

Biodiesel releases less carbon monoxide and fewer hydrocarbons and 
particles than petroleum-based diesel, according to the U.S. 
Environmental Protection Agency. It works with most diesel engines.

Hawley's so hooked on it, he's even sipped the amber-colored liquid 
to demonstrate its low toxicity to the 100-plus customers of his 
Yokayo Biofuels company in Ukiah, a rural community 120 miles north 
of San Francisco. Customers include local farmers, California 
wineries and a fleet of coffee delivery trucks.

"It really just gives people a way not to live with hypocrisy," 
Hawley said outside the garage where he and business partner, Kumar 
Plocher, experiment with batches of lye, wood or grain alcohol and 
various vegetable oils.

Biodiesel is produced by blending lye, methanol or ethanol and oil, 
then letting it settle. Glycerin, a soap ingredient, separates from 
biodiesel in large vats. Plocher and Hawley may even add essential 
oils so tailpipes will spew the scent of lavender, rosemary or sage.

Yokayo distributes 13,000 gallons of biodiesel a month -- enough to 
rank as one of the country's largest independent distributors in this 
small but growing industry, which now has annual sales of about $25 
million, according to the National Biodiesel Board.

Tim Piper, director of vineyard operations for Fetzer Vineyards, one 
of California's 10 largest wineries, has powered tractors and other 
farm equipment with biodiesel for the past year to help reduce the 
winery's environmental impact.

"They're running great, absolutely no difference," Piper said.

Except for the price.

In its most common form, biodiesel is sold in a mixture of 80 percent 
petroleum-based diesel and 20 percent biodiesel.

Due to growing demand and relatively few suppliers, a gallon of the 
80/20 blend cost $1.79 on the West Coast in July, compared with $1.38 
for a gallon of petrodiesel, according to the U.S. Department of 
Energy. Pure biodiesel costs even more.

But many conservationists say they don't mind paying more for cleaner 
fuel, and federal pollution regulations are also providing an 
incentive for managers of fleets. The U.S. Postal Service, for 
instance, has used biodiesel at several locations, including San 
Francisco, Miami and New York.

Higgins said biodiesel has grown quickly in usage because it 
generally works with any diesel engines made after 1992. She said 
older engines need only slight modifications -- many have parts made 
with natural rubber, which could adversely interact with biodiesel.

Other fuel alternatives, like natural gas and propane, need special 
equipment or more extensive modifications.

Though biodiesel, like one form of traditional diesel, has a tendency 
to coagulate at colder temperatures, producers and distributors can 
add anti-jell substances to prevent that.

Diesel's roots are organic. Rudolph Diesel, the German engineer whose 
engine concept published in 1893 eventually bore his name, fueled his 
prototype with peanut oil. But such oils lost sway when 
petroleum-based fuel became cheaper and more plentiful.

Biodiesel producers are hoping for an organic comeback.

U.S. production of biodiesel was expected to grow to more than 20 
million gallons in 2002 and as much as 40 million gallons this year, 
according to the National Biodiesel Board. Soybean oil accounted for 
90 percent of the material used to produce biodiesel in 2001.

Hawley and Plocher say they're already turning a modest profit and 
plan to open biodiesel filling stations in Ukiah and Santa Rosa in 
the next few months, complete with a convenience store stocked with 
organic products.

The two also hope to persuade other biodiesel peddlers to open in 
other parts of California to encourage more use.

"The beauty of biodiesel, in my opinion, is it comes from plants," 
Plocher said. "It's part of an active cycle."

Associated Press Writer Colleen Valles contributed to this report.


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