BIODIESEL IS IMPORTANT TO AGRICULTURE
• Continued demand for 200 million gallons of soy biodiesel is predicted to raise soybean prices by 17 cents per bushel. Based on total Iowa production, that adds $85 million to the bottom line of Iowa soybean farmers.

• Using a blend of only 2 percent soy biodiesel in all U.S. on-road vehicles would require the oil from nearly 500 million bushels of Iowa’s soybean crop. Soy biodiesel can easily be used at blends ranging from 2 percent to 20 percent, or higher.

• Both soy oil and meal are co-products of soybeans. Using soybean oil for biodiesel doesn’t affect the soybean meal that is used for livestock feed.

BIODIESEL IS THE FASTEST GROWING FUEL IN THE NATION
• In 2004, biodiesel sales topped 25 million gallons.

• In 2005, the industry tripled 2004 sales, reaching 75 million gallons.

• In 2006, biodiesel demand was 250 million gallons.

• In June 2007, annual production capacity in the United States is 1.39 billion gallons per year.

BIODIESEL IS THE FUEL OF TODAY AND TOMORROW
• No equipment modification is required to use common blends of biodiesel.

• Biodiesel can be used in any diesel engine, including farm equipment, semi trucks, military vehicles, barges, boats, railroad trains, generators, construction equipment, mining equipment, home heating and industrial boilers.

• Typically, diesel engine technology yields higher miles per gallon than gasoline engines.

HOW AND WHERE BIODIESEL IS MADE IN IOWA
• One bushel of soybeans produces about 1.4 gallons of biodiesel.

• One gallon of soy biodiesel uses about 7.3 pounds of soybean oil.

• Soybean oil is combined with methanol and either sodium or potassium hydroxide. This produces a reaction that separates the glycerin from biodiesel. Glycerin is used for toothpaste, soaps, animal feed and much more.

• In Iowa, 13 plants are producing biodiesel and three more are under construction.

NATIONAL BIODIESEL PRODUCTION
• In the United States, 148 EPA-registered biodiesel manufacturers have the ability to produce 1.39 billion gallons of biodiesel.

• Currently, 96 companies have reported that their plants are under construction and are scheduled to be completed within the next 18 months. An additional five plants are expanding their existing operations. Their combined capacity, if realized, would result in another 1.89 billion gallons per year of biodiesel production.

BIODIESEL PERFORMANCE
• BQ-9000, a set of standards put in place by the National Biodiesel Accreditation Commission (formed by the National Biodiesel Board), helps ensure that biodiesel meets the highest quality standards.

• Adding a 2 percent blend of soy biodiesel to No. 2 diesel fuel increases lubricity by up to 66 percent. Lubricity extends engine life.

• 2006 EPA low-sulfur rules have increased the need for lubricity in diesel fuel. Biodiesel offers an excellent solution. Unlike traditional lubricity additives, biodiesel is
a fuel and cannot be overdosed.

• Biodiesel does not void the equipment warranty of any major manufacturer. This includes engine companies like Case IH, Caterpillar, Cummins, Detroit Diesel, John Deere and many more.

• Biodiesel is used in more than 600 major fleets across the nation.

SOY BIODIESEL IS AVAILABLE AND USED TODAY
• More than 50 percent of Iowa farmers use biodiesel. That is important because farmers use 25 percent of the diesel fuel in Iowa.

• More than 150 retail locations in Iowa offer biodiesel.

• Alcoa, Alliant Energy, MidAmerican Energy, the Iowa
Department of Transportation and Cedar Rapids Transit are among Iowa’s major fleets that are using biodiesel.

SOY BIODIESEL IS OUR FUTURE
• Federal tax legislation effective Jan. 1, 2005, provides incentives to petroleum marketers that help the competitiveness of biodiesel relative to petroleum diesel. This incentive is scheduled to last until 2008.

• Jan. 1, 2006, the State of Iowa passed legislation to provide an incentive for biodiesel retail sales and distribution.

• The use of soy biodiesel helps the environment by reducing carbon dioxide emissions, aids in U.S. energy security and provides economic advantages to both the rural and urban sectors of the nation.



Iowa Biodiesel Board • Urbandale, IA 50322-5410 • 515.727.0664 • Toll Free 866.683.4172 • FAX 515.251.8657

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