Biodiesel is quickly becoming a new market for rendered fats and oils, especially yellow grease. The U.S. Department of Agriculture recently included these commodities in their Bioenergy Program, providing credit payments to producers who use animal fats and oils in the production of the alternative fuel.
The recently passed House Farm Bill calls for the inclusion of rendered fats and greases in the production of biodiesel. Although the Senate version does not, the industry is working hard at getting their products included in this bill, too.
And a soon to be released American Society of Testing and Materials (ASTM) standard will establish specifications for biodiesel, ensuring a quality product.
But all is not rosy in the biodiesel industry. As has always been the case with rendered products, soy is still a main competitor, and the competition is heating up.
Soy-based biodiesel use is on the increase as evident by several news items in recent months. A Michigan company opened the state’s first public biodiesel pump – but only provides soy-based fuel. A Reuters news article highlighted the increase of biodiesel use among farmers, but only targeted soy-based fuel.
Soy-based biodiesel is also increasing in popularity. A Volkswagen club in the Detroit area had been lobbying the Michigan supplier for a biodiesel pump for quite some time. In Iowa, the state’s soybean association reports that the number of B2 soy-biodiesel distributors has grown from 60 to 223.
The rendering industry will need to do a lot of pushing and shoving to ensure their products are included in biodiesel production. We must inform legislatures, both local and at the national level, producers, and the general public of the importance and benefit rendered products provide to the alternative fuel market.
It’s time renderers demanded, and received, a level playing field.
April 2002 Render