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  • bluecheese4u bluecheese4u Jul 18, 2013 2:06 PM Flag

    Biodiesel can solve the ethanol debate, supporters say

    Biodiesel can solve the ethanol debate, supporters say

    July 18, 2013 at 12:43 pm by Zain Shauk

    Iman Noshadi, a doctoral student of Richard Parnas at the University of Connecticut, holds a vial of biodiesel and its byproduct, glycerol, in a lab on campus in Storrs, Conn. (AP Photo/Republican-American, Alec Johnson)

    Amid the oil industry’s all-out blitz to kill a government mandate for corn-based ethanol, biodiesel producers say they have a solution that could help everyone involved.

    It goes like this: Buy more biodiesel.

    That proposal may not be so far-fetched.

    Federal mandates require fuel producers to buy and blend specific amounts of ethanol and other biofuels. But those mandates have increased to levels that the oil industry says are nearly impossible for it to meet and have driven up prices.

    Refiners say that they can’t blend more than 10 percent ethanol into their gasoline for safe operation in many vehicles, but government mandates currently require them to surpass that total.

    Biofuels: Ethanol brawl heats up between oil and corn industries

    Biodiesel makers, however, say that if refiners buy more biodiesel they can satisfy their requirements for more corn-based ethanol under current rules from the U.S. Environmental Protection Agency.

    Biodiesel, made from used cooking oils, discarded animal fats and other items, qualifies as an advanced biofuel under EPA rules, as opposed to corn-based ethanol, which is considered a conventional biofuel.

    “Advanced biofuels can qualify to meet the conventional obligation, but not vice versa,” said Joe Jobe, CEO of the National Biodiesel Board.

    While oil companies say a frenzy to buy ethanol credits has driven up prices, they could instead be purchasing credits that represent gallons of biodiesel, Jobe said.

    The American Petroleum Institute, the oil industry’s main lobbying group, did not immediately respond to a request for comment. Neither did the EPA.

    Bill Day, a spokesman for Valero, the nation’s largest refin

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