Bio-Diesel+Economics

//**This is the economics group. This is the information we have so far,but as we go along we will keep on updating the page. If anyone has any questions feel free to ask.**//
=__What is Biodiesel?__= Biodiesel is a natural and renewable fuel alternative for diesel engines made from vegetable oils of animal fats. Biodiesel is mostly made from soy and corn. It contains no petroleum, is nontoxic and is biodegradable. Biodiesel burns clean, which results in a significant reduction of the types of pollutants that contribute to smog and global warming and emits up to 85% fewer cancer-causing agents. [|SOURCE]

=__Video On Biodiesel__= media type="youtube" key="Jw04Lxt2uVI&rel=1" height="332" width="398"

=__History of Biodiesel__= [|SOURCE]
 * In 1898, Rudolph Diesel first demonstrated his compression ignition engine at the World's Exhibition in Paris
 * He used peanut oil, which was the original biodiesel
 * Vegetable oils were used in diesel engines until the 1920's when an alteration was made to the engine
 * During the 1920's, this biodiesel was 25% of Standard Oil's sales in that area
 * The petroleum industry undercut the biodiesel sales and by 1940 the plant was closed due to the low prices of petroleum

=What can BioDiesel be made from?=

Biodiesel can be made from **almost** any "biodegradable" material, such as: [|SOURCE]
 * Corn
 * Soybean oil
 * Fresh veritable oil
 * Used veritable oil
 * Rapeseed oil
 * Sunflower Oil
 * Palm oil
 * Honge oil
 * even Algae
 * and much more

=__Advantages__= =__Disadvantages__= ¹ [|SOURCE] ² [|SOURCE]
 * Extends engine life
 * All natural
 * Renewable resource
 * Can also be used as a home heating oil ¹
 * A blend of 20 percent biodiesel will reduce carbon dioxide (CO2) emissions by 15 percent ¹
 * Biodiesel is less combustible than petroleum, making it safer to store and transport.¹
 * biodiesel spills, it is biodegradable and breaks down roughly four times faster than petroleum diesel ¹
 * Biodiesel is a better lubricant than gasoline²
 * Biodiesel is easier to ignite than gasoline, meaning more complete, efficient combustion ²
 * Difficult to store and transport in cold climates ¹
 * Expensive to produce ²
 * Biodiesel gels at higher temperatures than gasoline, so tanks require heating in cooler climates ²
 * Biodiesel degrades rubber hoses used on older engines ²

=__**ECONOMICS OF BIODIESEL**__=

Demand:

 * Biodiesel has been produced and used successfully in Europe, Asia and the United States over the last decade. In Germany alone, there are more than 1,900 biodiesel fuelling stations.¹
 * More than 20 major fleets in Canada and 500 major fleets in the U.S. use biodiesel blends.¹
 * In 2004, 3.5 million litres of biodiesel was used in Canada.¹
 * A minimum of 2 per cent renewable content in diesel fuels in Canada will create the need for 600 million litres of biodiesel.¹
 * The industry would require 1.3 billion litres of biodiesel under a 5 per cent requirement which would create market demand for 2.3 million tonnes of canola (assuming a 70 per cent market penetration).¹

Future Demand:

 * Biodiesel refinery would meet about 20 percent of the Government of Canada’s annual biodiesel production target of 500 million litres by 2010 ²

¹ [|SOURCE] ² [|SOURCE]

Supply:
¹[|SOURCE]
 * According to biodiesel suppliers, we had at least 100 million gallons of biodiesel by the end of 2005, including large plants like the new SoyMor plant in Minnesota, which had 30 million of biodiesel by June 2005, and smaller plants, like American Ag Fuels in Ohio, which will begin producing 1 million gallons annually. Other states are also adding to the nation's biodiesel pool. ¹

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