Biodiesel basics

Biodiesel is an alternative fuel that is biodegradable, burns cleanly, and is made from a renewable resource. In the United States, biodiesel fuel is made primarily from soybean oil and secondarily from used restaurant cooking oil, sometimes called yellow grease. Because the United States uses only 55 billion gallons of diesel fuel annually, the diesel market is relatively small but growing, thanks to Americans' increased interest in diesel vehicles for their improved fuel efficiency. (To learn more about current diesel issues, read CNET's story, "The state of diesel.")

25 million gallons of biodiesel were produced and sold in the United States in 2004.

According to the National Biodiesel Board, the industry's trade association, 25 million gallons of biodiesel were produced and sold in the United States in 2004. While that represents less than 1 percent of the diesel fuel used, it's a 5,000 percent increase over the amount used in 1999.

The primary reason most individuals use biodiesel fuel is its environmental benefit. More than 250 major fleets use biodiesel, including all branches of the United States military, NASA, Yellowstone National Park, many state transportation departments, and numerous city fleets. Minnesota is the first state to require a biodiesel blend statewide. There, B2 biodiesel (a 2 percent blend) has replaced petroleum diesel.

"I am absolutely a fan of biodiesel," says Willie Nelson.

Of course, using biodiesel also means supporting U.S.-based producers vs. overseas oil producers. "I am absolutely a fan of biodiesel," says Willie Nelson, who powers his new 2005 Mercedes-Benz E320 CDI with B100 biodiesel. "I use it in my car because I'm a firm believer in using renewable fuels that are better for our environment. We should all be doing our part to reduce our reliance on foreign oil and contribute to our own economy. On top of all that, biodiesel use helps our nation's family farmers, while preserving the land for future generations."

Besides environmental benefits, biodiesel fuel offers some advantages over petroleum diesel. Biodiesel produces about the same amount of horsepower and torque as petroleum diesel, and some studies have even shown that biodiesel increases fuel economy slightly. In addition, because the fuel ignites faster, engines running on biodiesel are quieter than engines powered by petroleum diesel.

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