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Renewable Diesel Fuel

Biodiesel

Note: The Department of Energy's Office of Biomass Program has refocused its research and development portfolio and the technology on this page is no longer a research priority

Biodiesel is made by transforming animal fat or vegetable oil with alcohol and can be directly substituted for diesel either as neat fuel (B100) or as an oxygenate additive (typically 20%-B20). B20 earns credits for alternative fuel use under the Energy Policy Act of 1992, and it's the only fuel that does not require the purchase of a new vehicle. In Europe, the largest producer and user of biodiesel, the fuel is usually made from rapeseed (canola) oil. In the United States, the second largest producer and user of biodiesel, the fuel is usually made from soybean oil or recycled restaurant grease. In 2002, 15 million gallons of biodiesel was consumed in the United States (The American Soybean Association) The National Biodiesel Board, a trade association for biodiesel producers, is a good source of additional information.

E-Diesel

E-Diesel is a fuel that uses additives in order to allow blending of ethanol with diesel. It includes ethanol blends of 7.7% to 15% and up to 5% special additives that prevent the ethanol and diesel from separating at very low temperatures or if water contamination occurs. Use of E-diesel would also increase demand for ethanol, as diesel vehicles in the U.S. consume approximately 36 billion gallons of diesel a year EIA Annual Energy Review 2002 (PDF 13 KB) Download Acrobat Reader.

E-Diesel is currently an experimental fuel and is being developed by many companies, who can receive federal ethanol tax credit when blending ethanol with diesel. Demonstrations are currently being conducted on the use of E-diesel in heavy-duty trucks, buses, and farm machinery. There is a light increase in operating costs due to a slight (7-10%) mileage decreases with E-diesel use. However, there are many environmental benefits to using e-diesel, such as reduced emissions of Particulate Matter from 27% to 41%, Carbon Monoxide from 20% to 27%, Nitrogen Oxides 4% to 5%.

Supporters of E-diesel see it as a major new market for ethanol and an effective way to help engine manufacturers meet tough new emission standards from the U.S. Environmental Protection Agency. For instance, it can take up to 10 years for manufacturers to phase in new engine designs that reduce emissions and meet tough new EPA standards. However, switching to E-diesel gets immediate the environmental benefits.

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