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