Despite hurdles, biodiesel keeps rolling

JEFFERSON CITY, Mo. — While recent actions may have led fans — and foes — of biodiesel, including soy biodiesel, to start writing the renewable fuel’s obituary, one biodiesel cheerleader isn’t ready to send flowers.

In fact, Scott Fenwick, technical director for the Clean Fuels Alliance America, formerly the National Biodiesel Board, said he’s more optimistic than ever for the future of biodiesel.

“There are a lot of people out there with that perception, that with the huge, exponential growth of renewable diesel, and now all of the talk about sustainable aviation fuels, that biodiesel is dead, might as well start etching the tombstone. It will be here and gone before some people think it ever really got off the ground,” he said.

Fenwick said he was in that same camp five years ago.

“I am more bullish about biodiesel than ever before,” he said.

That bullish outlook has had to sustain Fenwick through some recent setbacks for biodiesel.

In July, four major U.S. farm groups, including the American Soybean Association, the National Corn Growers Association, the American Farm Bureau Federation and the National Farmers Union, sent a letter to Treasury Secretary Janet Yellen and Shalanda Young, director of the White House Office of Management and Budget, expressing concern that domestic feedstocks could be overlooked in the 45Z Clean Fuel Production Credit.

“Currently, the guidance does not mandate the use of domestically sourced feedstocks for eligibility, opening the door for imported materials to be used in biofuel production,” the groups said in their letter.

“This not only undermines the economic stability of American farmers, but also contradicts the broader goal of supporting U.S. agriculture and rural communities.”

On Aug. 12, the California Air Resources Board released proposed amendments to its Low Carbon Fuel Standard that would cap the amount of biomass-based diesel made from canola oil or soybean oil that would qualify for credits under the state’s Low Carbon Fuel Standard.

California has been a leader in converting to biodiesel and renewable diesel, with the two fuels having displaced over 50% of diesel fuel sold in the state.

Fenwick said he remains confident that market forces will continue to drive the demand for biodiesel.

“The market will figure it out. We are huge proponents of market-based influences, rather than policy and regulatory aspects having their thumb on the scale. We believe that the market will figure it out,” he said.

Fenwick cited companies and transportation sectors that are introducing biodiesel or that are boosting the biodiesel blends they already use.

“We are seeing 20% and now even 30% blends and B100 being used by a lot of fleets. Iowa approved some incentives a year and a half ago for B30 and we are seeing B30 pop up across Iowa,” he said.

“We are seeing B100 in fleets and, arguably, the larges private fleet here in the U.S., which is by Pepsi, is using B100 in as many of their trucks as possible today. They don’t even want to talk about blends.”

The trucking industry also is turning toward biodiesel in an effort to achieve carbon reduction goals.

“Truck stops across the country have been using and blending biodiesel for 20 years. In addition, we are seeing interest in the railroad industry and in the marine industry.

The marine industry, in particular, could be a major new customer,” Fenwick said.

“Companies like Maersk, Stolt, the names on these big container ships all over the world, their interest in renewable fuels is because their largest customers, the Amazons, the Walmarts, the Nikes, are telling them — we have our own goal and part of our goals means that our suppliers must reduce their carbon footprint. So, if you don’t use low carbon fuels in transporting our goods, we’ll find somebody else who will.”

Another sector that could benefit from the use of biodiesel is the agriculture sector. Fenwick said he understands why farmers might be reluctant to give biodiesel another chance.

“Farmers have very long memories. A lot of farmers tried biodiesel 20 years ago when, to be perfectly honest, our quality was terrible and they remember that. They swore 20 years ago that they weren’t going to use it ever again and that’s a shame,” he said.

Fenwick added that the fuel and quality control have made the same great strides forward that other industries have and that biodiesel, like the products of other industries, is advanced from the product of 20 years ago.

“The way we look at it is if somebody walks up to you and offers you a 35-year-old cell phone, one of those old Motorola bricks, in one hand, and they have the newest iPhone in the other hand and they give you your choice, which do you prefer? There isn’t anybody out there who is going to take that 35-year-old phone,” he said.

“Technology changes and it’s the same thing with fuels. Our quality today — and we shout this from the mountaintops — is above reproach. We’ve got a quality management system in place across the industry.

“We are publishing annual quality reports that represent 95% of the volume of biodiesel produced each year and I would put our quality up against any fuel in the marketplace.”

Fenwick credits the U.S. soybean industry for laying the foundation for today’s advanced biofuels.

“The soybean complex, all of the crush facilities and large multinational agricultural companies that are processing soybeans every day should really be proud of themselves,” he said.

“They have grown this industry, they have kick-started this industry, not just for biodiesel, but for feedstocks for renewable diesel and sustainable aviation fuels. Those would not have been possible if not for the groundwork laid by soybean oil suppliers 30 years ago.”