Investment in Biodiesel Business
Biodiesel is a safe, non-toxic, biodegradable and renewable fuel that can be easily used in unmodified diesel engines, and a variety of other applications. Compared to regular diesel, pure biodiesel (B100) produces a 73% reduction in lifecycle CO2 emissions, a 67% reduction in unburned hydrocarbons, a 48% reduction in carbon monoxide, a 47% reduction in particulate matter, a 100% reduction in sulphur oxide emmisions, and an 80% reduction in polycyclic aromatic hydrocarbons, which can cause cancer and emphysema. Biodiesel's only downside is up to a 10% increase in nitrogen oxide emissions.
Biodiesel is approximately equivalent to petroleum diesel for almost all factors, and has clear advantages in some areas. Furthermore, it has distinct advantages over gaseous fuels such as CNG and LNG, and alcohol fuels such as methanol and ethanol.
Since its first production on a commercial scale in Germany, in 1991, global biodiesel production hsa increased rapidly. Biodiesel is now the fastest growing alternative fuel in Europe. In 2003, Germany, France, Austria and Italy produced over two billion litres of bidiesel, and in Germany and Autria, around 1700 service stations now sell biodiesel. Many European car manufacturers, including VW and Mercedes Benz, have approved biodiesel use for their engines. In Germany, over 19,000 jobs have been generated growing the feedstock, processing the raw materials, and marketing the resulting biodiesel. Two German bus companies run their entire fleets on biodiesel, and most major bus networks in France run on biodiesel blends.
In the U.S., a blend of 20% biodiesel with 80% petro-diesel (referred to as B20) is quite widely used, and 15 states have passed legislation favourable to biodiesel. In 2003, there were 123 gas service stations offering biodiesel.
In Canada, biodiesel remains in the early stages of market development. Several bus companies ae doing trials with imported biodiesel, and following trials, all 137 transit buses in Brampton, Ontario, are now using a B20 biodiesel blend. Canada's first and only biodiesel service station was opened yb Topia Energy Inc. in Toronto on March 2nd, 2004. Because of its practicality and its many environmental benefits, the federal government has established a target production rate of 500 million litres a year by 2010, under Canada's Climate Change Action Plan.