Biodiesel has received its support from many different industries, but chief among these is agriculture. Members of the soybean industry in particular have had the strongest collective voices in advocating for biodiesel-related laws; have been involved with the founding and governance of the National Biodiesel Board; and have built more plants with more biodiesel producing capacity than individuals coming from any other industry.

The agricultural industry also may stand the most to gain from biodiesel. Based on a review of numerous economic reports, American Soybean Association President Neal Bredehoeft, said “For every 100 million gallons of soy-based biodiesel demand, the price of a bushel of soybeans is expected to increase by 10 cents. That could add an average of another $2,000 to the bottom line of farmers growing 500 acres of soybeans.”

Diesel engine automakers also have much to gain from the development of the biodiesel industry. Biodiesel, in combination with the introduction of clean, quiet, efficient and powerful modern diesels, is changing consumer attitudes and is essentially offering a new marketing tool for diesel engines, which were at one time broadly viewed as dirty and pollution-causing when compared to gasoline engines. With the use of biodiesel, diesel automakers can now market their vehicles as a “green” alternative to gasoline engines. In fact, a recent study performed by JD Powers & Associates found a significant percentage of diesel car buyers specified the “environmental benefits” as an important factor for choosing to buy diesel. The same study projected future sales of diesel automobiles to increase in the US market share at a similar rate as hybrid vehicles. What’s more is that diesel engines get hybrid mileage at half the extra cost.

Perhaps the greatest supporters of biodiesel are the motorists who try it. Truckers and office administrators, students and university professors, and others from all walks of life are purchasing diesel-powered automobiles and experiencing the benefits of biodiesel. The market for biodiesel has more than doubled in the last couple years, and as more plants are built and distribution systems are established, the growth of biodiesel as a fuel of choice will continue,

Figure 4: Percentage of 2005 Volkswagen Jetta Turbo Diesel Injection sales vs. Average Gasoline Prices (J.D. Power Associates, 2005)

In response to the increasing market appeal of biodiesel Volkswagen instigated a three-phase program to test and ultimately promote the use of biodiesel in their vehicles. Phase 1 includes B5 testing and extension of VW’s US warranty policy. Phase 2 expands this testing to B20 research with fleets in Germany and US. Phase 3 involves research and demonstration fleets. Volkswagen has already completed Phase 1 and is enthusiastically working toward the next phases.

John Deere recognizes not only the intrinsic value of biodiesel, but that it also directly benefits their customers at the same time. For this reason, they fill the diesel-powered equipment manufactured in North America with biodiesel fuel at the factory. Daimler-Chrysler similarly fuels with biodiesel the diesel-powered Jeep Liberty on the production line.

¹ Anthony Pratt, 2005, Projected Growth for Diesel Transportation in North America and What it Means for Biodiesel: Biodiesel Investor Conference, November 3, Chicago, IL.

On May 17, New Holland became the first Original Equipment Manufacturer (OEM) to announce full support of B20 in all of its equipment using New Holland engines. See New Holland Is First Equipment Maker to Fully Approve B20.

All major OEMs support B5 and lower blends, provided they are made with biodiesel meeting ASTM D 6751. A growing number are recommending fuel produced by BQ-9000 companies. BQ-9000 is NBB’s biodiesel industry quality program.