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Nov 1, 2005

Biodiesel - USA - First soy fuel-injection facility opens in U.S.

MIDDLETOWN, Penn,USA -Pittsburgh Post Gazette/AP, by Marc Levy -Oct 29, 2005: -- Pennsylvania is home to the first U.S. fuel-blending facility that can combine a soy additive with diesel or other fuels before they are put into tanker trucks, officials said Friday... Independence Biofuels Inc., which is operating the blending facility, said it can drive demand for the cleaner-burning fuel by being a bridge between biodiesel producers and companies that distribute diesel, heating oil and kerosene... Currently, there are about 45 plants in the U.S. that produce the biodiesel from soybean oil, mostly in the Midwest, and many more are planned, according to the National Biodiesel Board. Gerhart and fuel marketers say biodiesel costs about $1 per gallon (26 cents a liter) more than pure petroleum products, but a federal tax credit makes the price competitive. They say they hope biodiesel will become cheaper than petroleum as more producers come on line... Around the United States, soy-blended diesel is being used by school districts, mass transit agencies, manufacturers, and government agencies, and is even available at some gas station pumps...

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