Keith, Thanks for the reminder on my CALL TO ACTION post. Last week was a whirlwind for me with an all-out effort to notify interested persons regarding the USDA letter-writing campaign combined with trips to LA and Arizona and my son's first birthday. Don't worry- I would not be so crass as to post PR campaigns on these discussion groups. I did think that this issue would be of interest to biodiesel enthusiasts and thought it appropriate to try to rally the growing number of grassroots biodiesel supporters.
Several key issues were raised in response to my post. The first is, what does it cost to make biodiesel. The answer, of course, is that depends... It depends on whether you are just looking at production costs or also including labor and raw material costs. A homebrewer apparently can make biodiesel at about .50/gallon. My understanding is that this figure just involves the cost of the production equipment and assumes free raw material/feedstock. It doesn't include the cost of going to the restaurant to get the grease nor an hourly labor charge during production. With notable exceptions, it generally does not result in ASTM-spec commercial grade biodiesel. Commercial production has some significant differences. Even yellow grease feedstock has a collection cost plus production cost plus margins plus marketing and transportation. Soybean-based biodiesel has all of these costs and typically a higher raw material cost. Any commercial biodiesel must compete with petroleum diesel and this is the underlying problem. According to Norman Myers and Jennifer Kent in Perverse Subsidies (see also the Sept/Oct. issue of Ecolonomics in Action or the site without the article at www.ecolonomics.org), taxpayers are subsidizing fossil fuels to the tune of $14 billion annually. I don't know the basis for their numbers but do know that we don't pay at the pump the true cost of petroleum fuel. So the biodiesel industry, which has been rapidly growing and primarily soybean based, is trying to hold onto its subsidy program to compete with Big Oil. I think the solar analogy is a good one. Solar bloomed on a large scale during periods when it has received sound governmental support. Does anyone who considers environmental costs believe that coal or other fossil fuel power generation is really more cost effective or fiscally sound than solar power? We do need additional biodiesel feedstocks including yellow grease and these plants are coming on line and will continue to grow if there is a market. We also need as much mutual support within the industry and in the burgeoning grassroots movement as possible. If folks want to do more, the American Soybean Association's site is a good place to get more info and participate, http://capwiz.com/soy/home/. The National Biodiesel Board also has updates and includes yellow grease producers as well as soybean ones, www.biodiesel.org. Thanks to everyone who participated in the USDA program and PLEASE VOTE TODAY! Happy Trails, Graham -----Original Message----- From: Keith Addison [mailto:[EMAIL PROTECTED] Sent: Sunday, November 03, 2002 10:49 AM To: biofuels-biz@yahoogroups.com; biofuel@yahoogroups.com Cc: Graham Noyes Subject: Re: [biofuels-biz] CALL TO ACTION- USDA CUTTING SUPPORT FORBIODIESEL PRODUCTION Mr Noyes Several questions followed your post to the Biofuels-biz and Biofuel groups, but we've had no replies from you. Perhaps I should remind you that these lists are for discussion, not just an outlet for PR releases. Could you give us some information on these issues? >From: murdoch <[EMAIL PROTECTED]> >Date: Tue, 22 Oct 2002 10:58:12 -0700 >Subject: Re: [biofuels-biz] CALL TO ACTION- USDA CUTTING SUPPORT FOR >BIODIESEL PRODUCTION >Reply-To: biofuels-biz@yahoogroups.com > >I am confused about something. A recent news story I think put the >price of making biodiesel at something like $.60 per gallon, for >homebrewers able to secure a modestly priced source of base materials. >So, why exactly is there this need for a subsidy? Was the cost >estimate in error? >From: Keith Addison <[EMAIL PROTECTED]> >Date: Wed, 23 Oct 2002 05:13:55 +0900 >Subject: [biofuel] Re: [biofuels-biz] CALL TO ACTION- USDA CUTTING SUPPORT > FOR BIODIESEL PRODUCTION >Reply-To: biofuels-biz@yahoogroups.com > >US homebrewers generally say it costs them less than $.60 per gallon >using WVO; Todd Swearingen recently said $.50 per gallon was a >ballpark figure for small-scale producers using WVO and batch >processors (which can get into quite high production figures). >Energea's production cost is about 7 to 8c/litre US, US$0.26-0.30 per >gallon. Production cost of US commercial biodiesel is said to be >about US$.60 a gallon, as you say. So why indeed the high price, and >the need for a subsidy? Maybe Graham Noyes will explain the cost >structure of World Energy's production. German biodiesel is >*cheaper* at the pump than petro-diesel. It's said that US biodiesel >is more expensive because of taxes and subsidies, and because virgin >soy oil is expensive, though why that should be when there's billions >of gallons of it in surplus might be kind of hard to explain. Well, I >think we've had explanations of it here before, but some things don't >make sense no matter how well you explain them, and agricultural >commodity prices is one of them. Especially when the industrialized >countries deny such schemes to the 3rd World countries, in the name >of "free trade", enforced by the WTO in one direction, but not the >other. Whatever, why should a major fuel source be subject to the >madnesses of agricultural commodity price structures on the one hand, >and denied the subsidies that dirty fossil fuels get on the other? Thanks Keith Addison >Dear Biodiesel Enthusiast, > >I work with World Energy, the largest supplier of biodiesel in the >US. I am asking your support in a campaign to demand that our >government increase rather than reduce its support for biodiesel at >this crucial time. As you are likely aware, biodiesel presently >receives a production subsidy administered through the Commodities >Credit Corporation (CCC). The CCC has just issued new regulations >that would drastically reduce the effectiveness of the subsidy. We >are already seeing the effects of this in the market with rapidly >escalating biodiesel prices. > >The following draft letter is a sample comment to the USDA. I would >ask your help in forwarding this to interested individuals and >organizations and helping to get as many people as possible to submit >letters. Thus far, biodiesel has been quietly growing with minimal >government involvement or support (particularly when compared to the >massive subsidies, environmental damage and political distortions >wrought by our government's Petroleum First policy). After Congress' >failure to pass an Energy Bill, now is an opportune time for the >People to take the lead in demanding a sustainable Energy Policy. I >hope that you will take the time to forward this on and send a letter >of your own. (SEE below for addresses and example letter.) Letters >are due by October 31st so there is no time to delay. > >Thanks, > >Graham Noyes > > >Desk Officer for Agriculture >Office of Information and Regulatory Affairs, >OMB >Washington, DC 20503 > >Jim Goff, >USDA >FSA, Stop 0553 >1400 Independence Avenue, SW >Washington, DC 20250-0553 > >Re: FR Doc. 02-24539, pp. 61565 of October 1, 2002 <snip> ------------------------ Yahoo! Groups Sponsor ---------------------~--> Home Selling? 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