Ralph,

Answers to your questions are laced within your text:

> I just read an article in the Sunday paper distributed by Associated Press
about the lobbying efforts of farmers to mandate the use of biodiesel as an
additive in diesel fuel.

****I believe you are referring to this article?

****"Farmers Want Veggie Fuel Mandated, Subsidized"
http://www.soyatech.com/bluebook/news/viewarticle.ldml?article=20010501-9

> Unfortunately, the press is somewhat bad. It states that biodiesel costs
three times as much to produced as diesel. Is that a right amount? It also
states that that biodiesel is not a cleaner energy than natural gas??? and
that it will "slow the switch" to natural gas???

**** It depends who is attempt to gouge whom.
**** No references to biodiesel in this article are for "true biodiesel."
They all apply to bastardized blends of fossil diesel and bio-diesel and are
erroneously misrepresented as fact for "100% biodiesel."
**** Natural gas is non-renewable. No one wants to issue any comment as to
elevated gas prices in the future, the economic and environmental cost of
changing an entire infrastructure or what will become the substitute fuel of
choice for natural gas when supplies begin to dwindle or become too costly.

***********Did we not just go through this drill last winter? Why does no
one wish to pay attention? Or is it just selective memory
loss?*********************

****Neither is anyone making comment as to the carbon debt from combusted
natural gas, opposed to carbon neutral "true biodiesel," or carbon storage
when deriving biodiesel from tree oils.

> The gang is all there to fight. It seems from the article that truckers,
railroads, environmentalists and the airlines have teamed up to fight
legislation against its mandatory use.

**** They can quibble, whimper, whine and throw tantrums, but they cannot
stop its use or production at the agricultural manufacturing level, nor its
inevitable incursion on scale into the balance of the market. After a few
more plants are in place, all these "activists" (read "special interests")
railing against biodiesel will be investing their loose change in new
biodiesel production and industries that consume biodiesel.

> My question is this, does biodiesel costs three times as much to produce?
(will it drive up the cost of diesel and aviation fuel) Doesn't the
emissions from a 20% biodiesel/diesel mixture reduce pollution?(and
hopefully meet the new standards set for year 2007 EPA regs). Finally what
is the subsidized ethanol pricing?

**** NO. This high a cost is being attributed primarily due to the present
market distribution system (read "middle men and logistics"), which ups the
end cost to consumers considerably. At a manufacturing profit of $0.50 a
gallon, an absolutely phenomenal value, biodiesel from virgin soy oil would
be no more than $2.48 a gallon with all state and federal road taxes
included and no tax credits. This revolves around a trade price of $0.15 a
pound for the oil.

**** Produced on economies of scale throughout the marketplace, a realistic
"present day" cost for road taxed 100% biodiesel would be less than $2.00 a
gallon US.

**** When farmers coop in small numbers to produce biodiesel on a small
economy of scale, approximately 1,500 gallons daily and utilize the lower
costs of feed from the grain milled on site, reduced cost of transportation
of grain to terminals, reduced capital equipment costs for transport, resale
of crude glycerin to refiners, fueling the facility using biomass or
biofuels for boilers and winter heat (no lack of this on the farm), the cost
of biodiesel can easily be in the realm of $1.10 a gallon for offroad,
agricultural and heating use.

****This is ~$0.18 a gallon less than what farmers presently are paying for
untaxed off-road fossil diesel. The "equation" does not take into
consideration the opportunity to utilize ethanol in the manufacture of
biodiesel or the potential to refine the glycerin "on site" or in conjuction
with adjacent cooperatives and derive the high market value for food grade
glycerin. Both would further enhance a farmer's profit margin per bushel.

**** YES. Even B-20 is cleaner than fossil diesel.

****Again, what you are seeing with the mis- and dis-information are special
interests who see the potential for their exclusion from the distribution
chain or others who initially believe that they have something to lose as a
result of a broadened infusion of biodiesel into the market.

****Even the Sierra Club is mis-informing the public with their statements
that biodiesel is only slightly cleaner than fossil diesel. Unfortunately,
Sierrra is either grossly mis-informed, opts not to do their research or are
intent upon representing the environmental benefits of B-20 as being
duplicit with B-100 - 100% "true biodiesel" in order to expedite the large
scale incorporation of natural gas as a transportation fuel.

****(It's no wonder David Brower recently rolled into his grave. He never
cared for the BS, politics and deceit.)

****Pick any of the reasons as the most probable cause, an it still boils
down to mis- and dis-information which ill serves the public and the planet.

Humans never seem to learn and keep trying to pull the same old crap over on
people, 24 hours after their last failed attempt - just because they can.

Todd Swearingen
Appal Energy
[EMAIL PROTECTED]




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