Hi All
Interesting data from a reasearcher in the USA This few pages are from a presentation he gave The numbers are interesting The Us government provides 10 cents per Gallon incentive to a small time producer (like us) Provides $1 per gallon credit to the blender and then $.455 Tax PER GALLON about 4 litres Litle John wants $1.50 per Gallon excise $.3812 odd cents per litre from everyone even though the manufacturer or blender gets the same amount back If you make it and use it you have to pay the excise I wonder why? May be we are not signatories to the Kyoto protocol Hey there is variety of pigs that fly, so I am told
Petroleum displacement
Current usage of onhighway diesel fuel in the
U.S. is 33 billion gallons/year.
If all of the vegetable oil (23.6 billion lbs) and animal fat (11.6 billion lbs) were used to produce biodiesel, we could only replace about 14% of the current demand for onhighway diesel fuel.
Conclusion: Biodiesel is not going to eliminate the
need for petroleumbased diesel fuel.
(3.5 million gallon plant)
Unit Cost Biodiesel Retail cost
Producer Production cost $2.50/gallon
Producer profit $0.30
Small producer tax credit $0.10
Transportation
$0.08
Distributor purchase price $2.78
Distributor/blender Purchase price $2.78/gallon
Excise tax credit
$1.00
Freight
$0.08
Blender profit
$0.05
Retailer purchase price $1.91
Retailer Purchase price $1.91/gallon
Retailer markup $0.12
Idaho+Federal tax $0.494
Retail price (B100) $2.52
•Assumes no credit for glycerin.
Incentive programsFederal Excise tax credit $1.00/gallon, authorized to 2008.
Paid to blender, not producer.
Small producer tax credit $0.10/gallon
Incentive Programs –
Renewable Fuel Standard
Current standard is 7.5 billions gallons by 2012.
Enforcement is still unclear.
2% mandates
All diesel fuel sold in state must contain 2% biodiesel
Currently law in Minnesota, other states considering.
Farmers won’t plant crop if there is no processor,
processor won’t invest if there is no crop.
Some way is needed to distribute the startup risk.
Minnesota: A successful example of state support
Starting Sept. 29, 2005, all diesel fuel sold in
Minnesota for use in engines has been required to
contain 2% biodiesel.
effective until June 2005 AND there was
sufficient production capacity in the state to
supply 50% of the requirement (8 million
gallons/year).
Current capacity in Minnesota is 65 million
gallons/year.
A 2% mandate in Idaho
Current annual diesel fuel consumption is 375 million gallons
2% would require 7.5 million gallons of biodiesel.
At 100 gallons/acre this would provide an instate market for 75,000 acres of canola.
Idaho canola and mustard seed oils provide superior biodiesel compared with soy oil that provides a competitive advantage.
Benefits to the region
2% biodiesel provides needed lubricity to low sulfur diesel fuel.
Encourages a more diverse set of rotation crops for wheat.
Encourages private investment by distributing risk between plant developer, farmers, and fuel consumers.
Encourages local processing (oilseed crushing and biodiesel processing) to add value to a product grown locally.
The full presentation can be found at http://66.102.7.104/search?q=cache:c1WJv1J_glMJ:www.whitman.wsu.edu/documents/VanGerpenPpt.pdf+glycerin+usage+as+fuel&hl=en&gl=a u&ct=clnk&cd=23
Interesting data from a reasearcher in the USA This few pages are from a presentation he gave The numbers are interesting The Us government provides 10 cents per Gallon incentive to a small time producer (like us) Provides $1 per gallon credit to the blender and then $.455 Tax PER GALLON about 4 litres Litle John wants $1.50 per Gallon excise $.3812 odd cents per litre from everyone even though the manufacturer or blender gets the same amount back If you make it and use it you have to pay the excise I wonder why? May be we are not signatories to the Kyoto protocol Hey there is variety of pigs that fly, so I am told
Petroleum displacement
Current usage of onhighway diesel fuel in the
U.S. is 33 billion gallons/year.
If all of the vegetable oil (23.6 billion lbs) and animal fat (11.6 billion lbs) were used to produce biodiesel, we could only replace about 14% of the current demand for onhighway diesel fuel.
Conclusion: Biodiesel is not going to eliminate the
need for petroleumbased diesel fuel.
(3.5 million gallon plant)
Unit Cost Biodiesel Retail cost
Producer Production cost $2.50/gallon
Producer profit $0.30
Small producer tax credit $0.10
Transportation
$0.08
Distributor purchase price $2.78
Distributor/blender Purchase price $2.78/gallon
Excise tax credit
$1.00
Freight
$0.08
Blender profit
$0.05
Retailer purchase price $1.91
Retailer Purchase price $1.91/gallon
Retailer markup $0.12
Idaho+Federal tax $0.494
Retail price (B100) $2.52
•Assumes no credit for glycerin.
Incentive programsFederal Excise tax credit $1.00/gallon, authorized to 2008.
Paid to blender, not producer.
Small producer tax credit $0.10/gallon
Incentive Programs –
Renewable Fuel Standard
Current standard is 7.5 billions gallons by 2012.
Enforcement is still unclear.
2% mandates
All diesel fuel sold in state must contain 2% biodiesel
Currently law in Minnesota, other states considering.
Farmers won’t plant crop if there is no processor,
processor won’t invest if there is no crop.
Some way is needed to distribute the startup risk.
Minnesota: A successful example of state support
Starting Sept. 29, 2005, all diesel fuel sold in
Minnesota for use in engines has been required to
contain 2% biodiesel.
effective until June 2005 AND there was
sufficient production capacity in the state to
supply 50% of the requirement (8 million
gallons/year).
Current capacity in Minnesota is 65 million
gallons/year.
A 2% mandate in Idaho
Current annual diesel fuel consumption is 375 million gallons
2% would require 7.5 million gallons of biodiesel.
At 100 gallons/acre this would provide an instate market for 75,000 acres of canola.
Idaho canola and mustard seed oils provide superior biodiesel compared with soy oil that provides a competitive advantage.
Benefits to the region
2% biodiesel provides needed lubricity to low sulfur diesel fuel.
Encourages a more diverse set of rotation crops for wheat.
Encourages private investment by distributing risk between plant developer, farmers, and fuel consumers.
Encourages local processing (oilseed crushing and biodiesel processing) to add value to a product grown locally.
The full presentation can be found at http://66.102.7.104/search?q=cache:c1WJv1J_glMJ:www.whitman.wsu.edu/documents/VanGerpenPpt.pdf+glycerin+usage+as+fuel&hl=en&gl=a u&ct=clnk&cd=23
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