http://www.webconx.com/biodiesel.htm

Biodiesel First Alternative Fuel to Meet EPA Health Effects Requirement
Positive environmental and health effects results for Biodiesel

Biodiesel is the first and only alternative fuel to have a complete
evaluation of emission results and potential health effects submitted to the
U.S. Environmental Protection Agency (EPA) under the Clean Air Act Section
211(b).

Leroy Watson, director of regulatory affairs for the National Biodiesel
Board, says, "The test results clearly indicate biodiesel produces
significantly less toxic PAH (polycyclic aromatic hydrocarbons), NPAH
(nitrated polycyclic aromatic hydrocarbons) and aldehyde emissions compared
to diesel fuel. In addition, biodiesel speciated hydrocarbon emissions
showed a 50 percent reduction in their ozone forming potential compared to
diesel.

"Other alternative fuels received a special exemption from Congress and
didn't have to go through this rigorous EPA-certified testing. Biodiesel is
the only alternative fuel to take this challenge head on and demonstrate its
health effects and environmental advantages in comparison to diesel fuel,"
says Watson.

The research included an extensive literature review of known health effects
of biodiesel exhaust emissions as well as the most statistically reliable
engine emissions testing to date.

The health effects emissions testing focused on the measurement and
quantification of the components of exhaust which are not currently
regulated by EPA. These include polycyclic aromatic hydrocarbons, such as
benzo(a)pyrene, and nitrated polycyclic aromatic hydrocarbons, such as
nitrobenz(a)anthracene. PAHs and NPAHs are commonly found in conventional
petrodiesel exhaust and considered potential carcinogens or mutagens.

The biodiesel industry invested more than $750,000 to collect data to meet
the regulations developed by EPA as part of the 1990 Clean Air Act. The
requirements, commonly referred to as Health Effects Testing or 211(b)
Testing, were so rigid, EPA gave the industry more than three years to
supply data for the first tier of requirements. The results were supplied to
EPA on March 6. Also, the biodiesel industry is preparing for Tier II of the
211(b) testing requirements, due in 2000, at a projected cost of more than
$1 million.

"We broke a significant amount of new ground with this testing," says Steve
Howell of MARC-IV Consulting, Inc., who headed up the technical team for the
testing. "We ran all tests with pure biodiesel and with diesel fuel three
times on three separate days to ensure the statistical reliability of the
measurements. This is the most comprehensive emissions data on any
alternative fuel."

Chris Sharp, researcher for Southwest Research Institute and lead emissions
engineer for the testing, says, "The level of detail for this testing was
much greater than we'd do for normal exhaust emissions testing. We had to
build special sampling systems to get the detailed level of analyses we
needed to meet the EPA requirements."

Literature search highlights

Ten different studies researched biodiesel exhaust mutagenicity. Every study
found a substantial reduction in mutagenicity for pure biodiesel compared
with diesel fuel. Biodiesel blends tested also were less mutagenic than
petrodiesel fuel. This is most likely due to the absence of aromatic
compounds (benzene, xylene etc.) in biodiesel fuel compared to petrodiesel.

In aquatic environments, biodiesel fuels were evaluated for biodegradation.
In general, 100 percent biodiesel and high biodiesel blends degraded rapidly
and extensively.

Exhaust emissions results

To fulfill the requirements relating to the characterization of exhaust
emissions, the biodiesel industry tested an unmodified 1997 Cummins N14
engine at Southwest Research Institute. Several significant conclusions can
be made from the biodiesel test results when compared with petrodiesel.

The Ozone Forming Potential of the speciated hydrocarbon emissions were
nearly 50 percent less than that measured for 2D fuel.

The neat biodiesel fuel resulted in large decreases in all of the target PAH
and NPAH compounds, as compared to 2D fuel. Most PAH compounds were reduced
by 75 percent to 85 percent. The target NPAH compounds also were reduced
dramatically with neat biodiesel fuel, with 2-nitrofluorene and
1-nitropyrene reduced by 90 percent, and the rest of the NPAH compounds
reduced to only trace levels.

Aldehyde emissions were reduced by nearly 50 percent with neat biodiesel.

Carbon monoxide emissions were reduced by 50 percent with neat biodiesel.

Particulate emissions with neat biodiesel were 30 percent of those found in
diesel.

Nitrogen oxide emissions were about 13 percent higher with neat biodiesel.

Sulfate emissions were essentially eliminated with neat biodiesel.

Alcohol emissions were non-existent with neat biodiesel.

For more information: Leroy Watson, 703/931-3095, Fax, 703/931-4846; Steve
Howell, 816/635-5772, Fax, 816/635-4836.

Market Watch
Biodiesel Stakes Claim in Premium Diesel Market

Biodiesel staked its territory in the fast-growing premium diesel market by
introducing two biodiesel-based fuel additives to the market this spring.
The additives, Soy Shield and Soy Guard, will upgrade No. 2 diesel fuel in a
variety of ways.

"It's great timing for the biodiesel industry to enter this market because
the premium diesel market is growing fast and it's going to continue to
grow," says Paul Nazzaro, president of Advanced Fuel Solutions and fuel
marketing consultant for the National Biodiesel Board (NBB).

Farmer-focused Products: Soy Shield is marketed by Schaeffer Manufacturing
Company, based in St. Louis, through its 300 sales representatives
nationwide. The company will target farmers with the product.

Jay Shields, executive vice president sales and marketing for Schaeffer,
says, "More than half of our business is farm or farm-related. Schaeffer is
looking for ways to use more of our customers' products in our products."

Soy Shield is attractive to farmers for two important reasons, says Shields.
First, it allows farmers to use a product they helped produce. Second, it
will help extend the engine life of their expensive farm equipment.

Schaeffer is promoting these product benefits for Soy Shield. It increases
miles per gallon by 5 percent to 7 percent, cleans injectors, boosts cetane,
provides superior soy lubricant and reduces exhaust emissions.

Schaeffer will offer the additives in 50-gallon and 30-gallon drums and
5-gallon and 1-gallon containers. For best results, the company recommends
the rate of 1 gallon to 500 gallons of diesel fuel in the storage tank.

Soy Guard, marketed by Archer Petroleum, Omaha, Neb., will also target the
farm market.

Although similar, the two biodiesel-based fuel additive products are
different. Both contain the benefits of improved lubricity from the
soy-based methyl ester in the product. The differences are found in the
proprietary additives in each.

These two new fuel additives were developed with funding from the Minnesota
Soybean & Research Promotion Council, with marketing agreements made with
Schaeffer and Archer. On behalf of NBB, Nazzaro coordinated the development
and the marketing agreements with the companies.

These soy-based fuel additive products are attractive to both the fuel
supplier and the end user, says Nazzaro. Biodiesel-based fuel additives
provide new opportunities in the environmentally sensitive marketplace. For
fuel suppliers, biodiesel-based fuel additives bring a remedy to the quality
challenges found in today's diesel fuels.

"A big asset for these products is they contain a natural-based soy
product," says Nazzaro. "Also, these products can deliver on their product
claims."

With soy-based fuel-additive products such as Soy Shield, Soy Guard and Ag
Environmental Products' SoyGold, which was introduced last fall, Nazzaro
says biodiesel is making a strong presence in the premium diesel fuel
market. And this success is credited in part to the investment made by
farmers in check-off funds.

"These new products allow farmers to see the commercialization and the
rewards of their check-off dollars in a biodiesel product," says Nazzaro.

For more information: Paul Nazzaro, 978/664-5923, fax 978/664-4020; Jay
Shields, 800/325-9962, fax 314/865-4107; Doug Salmon, Archer Petroleum,
800/221-7017, fax 402/597-9866.

Market Watch
Biodiesel Rates No. 1

Results from a market survey with public and private fleets conducted by the
Urban Consortium Energy Task Force (UCETF) show fleet managers pick
biodiesel as the No. 1 alternative fuel for heavy duty diesel vehicles.

UCETF, a cooperative local government program to improve energy management
and technology applications in local governments, performed the survey to
quantify potential biodiesel demand in Chicago. As Chicago is a major
transportation hub, concentrated use of petroleum diesel results in exhaust
emissions problems. Biodiesel, an alternative fuel made from feedstocks such
as soybean, canola or rapeseed oil, could help mitigate these emissions
problems while at the same time reduce the nation's dependence on foreign
petroleum imports and create local jobs.

More than 1,000 fleet managers in the Chicago area were mailed a survey to
determine the potential demand and desire of fleet managers for B20, a 20
percent blend of biodiesel with 80 percent diesel fuel.

In response to the question, "What alternative fuels are you considering for
conversion or replacement of your current diesel-powered vehicles?"

Chicago fleet managers ranked B20 as their No. 1 preference. Biodiesel also
has an advantage over other alternative fuels in that no significant
infrastructure changes have to be made to use the blended fuel. With many
other alternative fuels, vehicle and fueling infrastructure investments are
required.

The results from this survey show biodiesel is a viable option for Chicago.
Facilities already in existence can be used and processing biodiesel in
Chicago will lead to employment and economic development.

For more information: Alan Weber, MARC-IV Consulting, 573/657-5537, Fax,
573/657-1058; Mary Sigmon, Chicago Clean Cities Coordinator, 312/744-3635.



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