Biodiesel is a substitute for fuel for diesel engines made from renewable fats and oils such as soybean or rapeseed oil. Biodiesel contains no added sulfur and burns much cleaner than diesel fuel from petroleum based products. Biodiesel can be used in existing diesel engines with little or no modification.

Biodiesel is used as both a pure fuel (B100) and as a blend with conventional petroleum-based diesel fuel. A 20% blend with petroleum-based diesel (B20) is common in municipal buses and other similar vehicles. Another use is as a blending stock as a lubricity-enhancing component of diesel formulation, sometimes done by government mandate.

On the Federal level, President George W. Bush signed H.R. 4520 (also known as the American JOBS Creation Act of 2004). Among many other incentives and tax code changes, it contains a biodiesel tax incentive. The credit allows up to a penny per percent of biodiesel blended into petroleum diesel. The credit took effect January 1, 2005. It has been estimated that the credit could create 50,000 jobs in the United States over the next ten years.

The state of Minnesota became the first state in the United States to mandate a 2% blend. After a defeat in the Legislature in late 2001, the bill easily passed in the Senate with a 53 to 11 vote, and in the House in a 78 to 53 vote. Governor Jesse Ventura allowed the bill to become law without his signature on March 15, 2002.

The bill requires that most diesel fuel sold in the state, as of a date yet to be determined in 2005, contain a 2 percent blend of biodiesel. Although the bill exempts railroad locomotives, mining equipment, and motors at nuclear plants, it is a huge step forward for proponents of biodiesel and is a much needed boost for the soybean growers of Minnesota. The Minnesota Department of Agriculture estimates that producing and using biodiesel will generate $212 million to $527 million for the state's economy, and produce 1,128 to 2,798 jobs.

Other states have also started to pass legislation with similar mandates.

Crown has been involved in engineering and manufacturing equipment for a large biodiesel processing facility in Iowa that went into production in late 2002. Additional plants are currently being engineered for construction starting in 2005. Crown also helps promote biodiesel production in South America, the Far East, and Australia. Combined with Crown's expertise in oilseeds and oleochemicals throughout the world, Crown is uniquely placed to capture the growing biodiesel market in both the United States and worldwide.

How Does Crown Play a Role?

Has the Government Mandated Biodiesel Use?

How is Biodiesel Used?

What is Biodiesel?