Biodiesel Markets

Soy biodiesel use in Missouri is growing rapidly. Due to increased demand, Missouri is adding the names of new soy biodiesel suppliers and retailers monthly, who are trying to service that demand. Following is a description of Missouri’s major soy biodiesel markets:

Agriculture: Missouri’s farmers use nearly 70 million gallons of diesel fuel annually as they produce crops and livestock. The amount of fuel used per farm varies with farming practices. Missouri’s farmers are using soy biodiesel increasingly for several reasons. First, soy biodiesel offers superior lubrication which helps maintain engine life thereby lowering maintenance expense. Secondly, Missouri farmers are aware of their environment and believe in reducing emissions in order to maintain a cleaner working environment for their families and employees. Finally, Missouri farmers produce over 170 million bushels of soybeans on nearly 5 million acres annually. Farmers use soy biodiesel blends in order to reduce our demand for foreign oil and to add value to the soybeans they produce. It is estimated that nearly 40 percent of Missouri’s farmers are currently using soy biodiesel blended fuel in their operations, and the number continues to grow.

Ambulance/EMS: Over the years the Emergency Medical Services (EMS) have made diesel engines the power source of choice for ambulances. Diesel engines provide ample power for basic mobility and the impressive electronic devices utilized in today’s emergency service vehicles. Soy biodiesel helps reduce particulate matter in the exhaust, which increases the comfort level for EMS technicians and patients. This is critical for patients suffering from respiratory distress. Several EMS fleets in Missouri have implemented soy biodiesel blends into their fuel program including Capitol Region Medical Center in Jefferson City, Osage County Ambulance District and Taney County Ambulance District.

Marine: Missouri’s lakes, rivers and streams are an important part of it’s transportation and tourism industry. Most boaters are aware of the environmental impacts surrounding petroleum fuels and desire an environmentally friendly fuel like soy biodiesel. The Lodge of the Four Seasons marina at Lake of the Ozarks offers B20 at the pump. Using soy biodiesel lowers particulate matter emissions, which helps keep boats cleaner, and many boaters enjoy the less offensive smell. Barge and ferry operations on the Missouri and Mississippi rivers and large entertainment vessels on Missouri’s lakes are strong prospects for soy biodiesel blended fuel.

Over-the-Road Fleets: Nation-wide, over 35 billion gallons of diesel fuel is used to transport all kinds of goods and commodities across the United States. Missouri is home to many major trucking companies due to our central location and interstate highways. Most trucking fleets are concerned with issues such as engine wear and emissions control. Low-percentage blends of soy biodiesel (i.e. 2 percent-20 percent) are finding their way into the over-the-road market as truck drivers look for ways to add lubrication, increase cetane and lower emissions. Currently, soy biodiesel adds approximately one cent per percent added to petroleum diesel in a blend. Cost is the chief limiting factor for soy biodiesel to become fully implemented in the over-the-road market. Margins in the hauling industry prevent some trucking companies from being able to justify the higher cost due to the volume of fuel they use. The Environmental Protection Agency’s requirement that all diesel fuel be ultra-low in sulfur content by 2006 could outweigh the cost differential and cause trucking fleets to seek soy biodiesel for its superior lubricating qualities.

State Fleets: Energy security and reducing dependence on foreign oil are the important market drivers for implementation of soy biodiesel into Missouri’s state and federal fleets. The National Energy Policy Act of 1992 (EPACT) was passed to strengthen the United States energy security by reducing imported petroleum via the use of alternative fuels and alternative fuel vehicles. In 1998 additional language was passed that allows soy biodiesel to aid fleet managers in meeting EPACT requirements. Missouri’s EPACT fleets include the US Postal Service, US Army Fort Leonard Wood, Whiteman Air Force Base, and large utilities companies. Several Missouri state government fleets utilize soy biodiesel to meet EPACT requirements, including the Departments of Transportation, Conservation, Corrections and Natural Resources' Division of State Parks. The Department of Natural Resources' Energy Center administers the Biodiesel Revolving Fund for state fleets. The Missouri Department of Transportation (MODOT) is required to use B20 in its trucks and heavy equipment. 50 percent of MODOT’s fleet will use B20 by July 2004 and 75 percent by July 2005.

School Buses: Concerns about student, staff and public health have caused many school districts and school bus service companies to explore the use of soy biodiesel. Clean air is important, especially for students with chronic lung problems such as asthma. Legislation was passed in Missouri in 1991 that authorized the incremental cost of B20 to be a reimbursable expense for Missouri school districts. Funds for this program will have to be appropriated by the Missouri legislature in order for most school districts to begin implementing B20 in their school buses.

Other Fleets of Interest: Lambert International Airport at St. Louis has been using B20 in their snow removal and maintenance fleets since 2002. The city fleets of Clayton, Mexico and Columbia, Missouri all use B20. Several other municipalities are considering similar measures. The Bi-State Development Agency in St. Louis, which handles St. Louis area public transportation, passed a resolution in 2001 indicating their interest in soy biodiesel blended fuel.

© Missouri Soybean Programs
PO Box 104778
3337 Emerald Lane
Jefferson City, MO 65110
Phone: (573) 635-3819
Fax: (573) 635-5122
email: mosoy@mosoy.org