What Is A Biodiesel Plant?

What is a Biodiesel Plant?
By Joseph Then

The idea of using vegetable oil as an alternate fuel source is as old as the diesel engine itself. Until recently, use of petroleum distillate to power diesel engines has been more economical than biodiesel. Decreasing petroleum supplies and increasing demand for fuel has stimulated renewed interest in biodiesel and commercial production of the product began in the United States in the late 1990’s.

Biodiesel is a safe, renewable fuel whose impact on the environment is positive. Unlike the production facilities associated with petroleum-based diesel, the impact of biodiesel facilities on local community and environment they depend on is minimal. Construction and operation of a biodiesel plant has also been shown to confer significant micro-and macro-economic benefits to both commercial and rural sectors.

Increasing commercial manufacture of biodiesel will have a positive impact on macro-economics. In 2006, it was estimated that construction of biodiesel plants and the ongoing operation of these plants would see more than 39,000 permanent jobs created in local communities by 2015. In addition, it was found that production of biodiesel could reduce the United States’ dependence on foreign crude oil imports by 242 million barrels by 2015. This decrease would mean that approximately $13.6 billion dollars would remain in the US economy. It is expected that the biodiesel industry will contribute $627 million into American householders’ pockets over the next decade.

There are also opportunities for tax revenue associated with the commercial production of biodiesel. Industry expansion will generate approximately $8.3 billion dollars of increased tax revenue for the Federal Government and $650 million dollars for state and locate Governments over the next decade.

The micro-economic benefits of increased commercial biodiesel manufacture are also important. There is often good opportunity to manufacture biodiesel in certain types of existing industrial plants, for example at grain-handling facilities or feed mills. These plants may have the necessary space and equipment for transporting feedstock and therefore, the cost of operating the biodiesel component of the plant is reduced. Keeping overheads low increases the profitability of the produced biodiesel.

Whilst the price of agricultural commodities is at an all time low, the price of petroleum is soaring. Increasing biodiesel production will improve the value of feedstock crops. The United State Department of Agriculture has indicated that if demand for soy-based biodiesel increased at an annual average of 200 million gallons, that crop cash would be boosted by $5.2 billion dollars by 2010. This would means that the average net farm income would increase by $300 million per year and that the price per soybean bushel would increase by 17 cents. This represents significant growth for local agriculturalists.

In addition to being a cleaner, more environmentally friendly fuel source, there are major economic benefits for increasing commercial biodiesel production. For rural America in particular, the advantages of community biodiesel plants are significant.

There may be a Biodiesel Plant on your community. Get familiar with Biodiesel today with free information provided. Joseph Then, the author of the article will help you understand more about Biodiesel Fuel.

Article Source: http://EzineArticles.com/?expert=Joseph_Then
http://EzineArticles.com/?What-is-a-Biodiesel-Plant?&id=576043