| The idea of using vegetable oil as an alternate fuel | | | | Industry expansion will generate approximately $8.3 |
| source is as old as the diesel engine itself. Until recently, | | | | billion dollars of increased tax revenue for the Federal |
| use of petroleum distillate to power diesel engines has | | | | Government and $650 million dollars for state and |
| been more economical than biodiesel. Decreasing | | | | locate Governments over the next decade. |
| petroleum supplies and increasing demand for fuel has | | | | The micro-economic benefits of increased commercial |
| stimulated renewed interest in biodiesel and | | | | biodiesel manufacture are also important. There is |
| commercial production of the product began in the | | | | often good opportunity to manufacture biodiesel in |
| United States in the late 1990's. | | | | certain types of existing industrial plants, for example |
| Biodiesel is a safe, renewable fuel whose impact on | | | | at grain-handling facilities or feed mills. These plants |
| the environment is positive. Unlike the production | | | | may have the necessary space and equipment for |
| facilities associated with petroleum-based diesel, the | | | | transporting feedstock and therefore, the cost of |
| impact of biodiesel facilities on local community and | | | | operating the biodiesel component of the plant is |
| environment they depend on is minimal. Construction | | | | reduced. Keeping overheads low increases the |
| and operation of a biodiesel plant has also been shown | | | | profitability of the produced biodiesel. |
| to confer significant micro-and macro-economic | | | | Whilst the price of agricultural commodities is at an all |
| benefits to both commercial and rural sectors. | | | | time low, the price of petroleum is soaring. Increasing |
| Increasing commercial manufacture of biodiesel will | | | | biodiesel production will improve the value of feedstock |
| have a positive impact on macro-economics. In 2006, it | | | | crops. The United State Department of Agriculture has |
| was estimated that construction of biodiesel plants and | | | | indicated that if demand for soy-based biodiesel |
| the ongoing operation of these plants would see more | | | | increased at an annual average of 200 million gallons, |
| than 39,000 permanent jobs created in local | | | | that crop cash would be boosted by $5.2 billion dollars |
| communities by 2015. In addition, it was found that | | | | by 2010. This would means that the average net farm |
| production of biodiesel could reduce the United States' | | | | income would increase by $300 million per year and |
| dependence on foreign crude oil imports by 242 million | | | | that the price per soybean bushel would increase by |
| barrels by 2015. This decrease would mean that | | | | 17 cents. This represents significant growth for local |
| approximately $13.6 billion dollars would remain in the | | | | agriculturalists. |
| US economy. It is expected that the biodiesel industry | | | | In addition to being a cleaner, more environmentally |
| will contribute $627 million into American householders' | | | | friendly fuel source, there are major economic benefits |
| pockets over the next decade. | | | | for increasing commercial biodiesel production. For rural |
| There are also opportunities for tax revenue | | | | America in particular, the advantages of community |
| associated with the commercial production of biodiesel. | | | | biodiesel plants are significant. |