Fleets Urge Engine Makers to Support Biodiesel

Biodiesel Provides Fleets with Clean Alternative to Regular Diesel Fuel

DETROIT, March 30 -- Medium duty truck and engine manufacturers could see fewer sales in 2004 if they don't show more active support of biodiesel, a cleaner burning alternative fuel that can be made from any fat or vegetable oil. That is the conclusion of a survey presented to 26 auto and diesel engine manufacturers, in which the majority of fleet managers said that the manufacturers' level of support for biodiesel would affect future purchase decisions.

The survey of 53 fleets representing more than 50,000 diesel-powered vehicles found that the vast majority -- 91 percent -- are in favor of using biodiesel. Forty-five percent of fleets surveyed are currently using biodiesel, and among them a 20 percent blend of biodiesel (B20) is the fuel of choice. ASG Renaissance, a national technical and communications services firm, conducted the survey on behalf of the National Biodiesel Board (NBB), a nonprofit trade association that coordinates the biodiesel industry and educates the public about the fuel. Copies of the survey results and final report are available at www.biodiesel.org/fleet_report .

According to respondents, the Energy Policy Act (EPAct) is driving their interest in biodiesel. EPAct regulations allow fleets to use B20 in their existing diesel vehicles to meet a portion of their alternative fuel vehicle (AFV) purchase requirements. Because the use of B20 does not require fleets to purchase new equipment, it is the lowest cost option for compliance. In fact, the Congressional Budget Office (CBO) estimates that the cost of gaining an EPAct credit using the biodiesel alternative is $450 -- significantly less than the current trading price of $2,200 for AFV credits. Respondents were also interested in the environmental benefits of biodiesel, such as reduced emissions and the fact that it is a renewable domestic energy source.

Respondents reported the higher cost of biodiesel compared to regular diesel, lack of fuel availability in their area, and the reluctance of vehicle and engine manufacturers to make strong statements of support for biodiesel as reasons for not using biodiesel.

"Since biodiesel is the least cost option for meeting EPAct requirements in medium and heavy duty vehicles, and it is available nationwide through direct shipment of the fuel or through more than 1000 petroleum distributors, these two concerns that fleet managers have can be addressed through education," said NBB Executive Director Joe Jobe. "In addition, I believe that resolving the concern regarding engine maker support of biodiesel will be driven by fleet managers and other consumers demanding their manufacturers get on board and actively support the use of biodiesel, or they will go to a competitor who does."

More than 400 fleets currently use biodiesel nationwide. The fuel performs comparably to diesel fuel, with similar BTU content and higher cetane and lubricity.

NOTE TO EDITORS: Please contact the National Biodiesel Board to schedule interviews with Joe Jobe, NBB Executive Director.