Skip to comments.Biodiesel tax credit is back
Posted on 12/22/2010 1:16:36 PM PST by bigbob
By a vote of 277 to 148, the U.S. House of Representatives extended tax cuts, continued unemployment benefits and brought the year-long struggle of the biodiesel tax credit to a positive end. The biodiesel tax credit is back. On Friday, Dec. 17, President Barack Obama held a press conference to officially sign H.R. 4853, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, into law, and with his signature, the biodiesel and renewable diesel tax credit marred in the political process for all of 2010 will be retroactively reinstated through 2011.
As expected, the National Biodiesel Board supports the bills passage, pointing to job creation as one of many positive reasons for the reinstatement of the tax credit. This will undoubtedly help kick-start the domestic biodiesel industry, lessen our dependence on foreign oil, and create thousands of new jobs across the country, according the NBB.
While a group of liberal democrats attempted to alter the bill during the last hours of the Houses session on Thursday night, essentially trying to lower the estate tax percentage and the amount of money a couple can pass to their heirs down from $10 million to $7 million, the move was ineffective.
Now, in combination with the required 800 million gallons of biomass-based biodiesel under the 2011 RFS2 and the reinstatement of the tax credit, NBBs vice president of federal affairs, Manning Feraci said, The U.S. biodiesel industry is poised for a strong 2011, and stands ready to meet the nations advanced biofuel goals.
Just another way to spread the subsidy-wealth around justified by crap science and unsustainable economics.
Green Christmas for the suckers who bought into this BS I guess.
Then again, me misses lots of things lately.
I have a friend who heats his house with old fry and car oil.
There is a stupid way of doing this, and a smart way. The smart way would actually work, and there’s a quiet vote of confidence in it from the oil companies, which are not waiting around for the federal government to do things the smart way.
The stupid way is to use fermented vegetable matter. This is an idea from people who think that fermented lawn clippings could power a major metro area. These people have no grasp of the energy business.
The smart way is to create diesel from algae. The advantages are so obvious that no other system comes close.
Even before there is one drop of biodiesel, the system is making money, because they algae *consumes* difficult and expensive to dispose of waste gases, carbon dioxide and nitrous oxides. Bubbled into their water, they cause algae growth to be many times faster than normal.
The water itself can be gray water, recycled effluent, low quality and non-potable, so is much lower cost than treated water. And it can be filtered and used over and over again.
Some types of algae are as much as 50% vegetable oil, by weight, and the oil is obtained by simple, mechanical squeezing. The left over algae is used for high quality animal fodder, making even more money.
The vegetable oil is then blended with some ethanol and common lye, which combines the two together. Then you filter it, and you have biodiesel. 1% of its volume of petroleum diesel is added to it, as a preservative.
Then, with a little minor modification, it can be used in any diesel engine, and has 96% of the energy of petroleum diesel.
Algae can be grown for most of the year anywhere south of the Mason-Dixon. And with a little design engineering, even small farms could make enough to run all their farm equipment.
I agree, the oil content of algae makes it attractive and that’s why so many are doing research in this field. But from what I’ve read, the tricky part is in producing and processing the algae at a cheap enough price for it to become a viable feedstock. It may be as you suggest more cost-effective to do so close to the point of use, i.e. an algae farm and small-scale biodiesel plant on every large farm, for example.
We’d be better off providing incentives for private R&D in this area than in pouring more subsidy $ into the large -scale biorefineries that were built without much thought as to feedstock availability. High demand for soybean oil and even yellow grease have resulted in more than half of the existing capacity sitting idle, and biodiesel plants being sold at auction for 2 cents on the dollar.
Don’t know about all diesels, but my Ford says no biodiesel.
Given what the vehicle costs, I think I’ll follow the owner’s manual.
I’m fine with leaving energy production up to energy companies that know what they’re doing. If it’s not a money maker, the oil companies have no use for it. But if they can make it work, sweet.
VW says use no more than 5% Bio-Diesel in my 2010 TDI Jetta engine.