Biodiesel advances in the United States: a good example for Brazil

The United States is advancing rapidly in its project to change the energy matrix and to adopt biofuels as an alternative to replacing fossil diesel. It is important to look at this information as an incentive not to lose step here in Brazil.

In February 2021, Iowa Governor Kim Reynolds introduced a bill to set a minimum standard for biofuels in the state’s fuel supply. For biodiesel, this would mean that most Iowa diesel would contain at least 11 percent of the product (B11) during the warmer months starting in April 2022, and B20 during the warmest months in 2024 and beyond.

Iowa has enacted some of the most comprehensive state biodiesel policies in the country to help make biodiesel more available and affordable to consumers. These state biodiesel policies include the following proposals:

• Biodiesel Retailer Credit: Retailers that ship 5% biodiesel (B5) can claim an incentive of 3.5 cents per gallon. Retailers carrying B11 or higher can claim an incentive of 5.5 cents per gallon.
• B11 – Fuel Tax Differential: A 3 cent fuel tax differential for blends of 11% or more.
• Biodiesel Production Credit: A 2 cents per gallon incentive to stimulate production in the state.
• Renewable Fuels Infrastructure Program: $3 million annually for biodiesel and ethanol to help upgrade petroleum equipment to increase renewable fuel availability in Iowa.

These strong state policies place Iowa in a leading position in biofuels in the United States.

Minnesota Pioneering

Minnesota was the first US state to require virtually all diesel sold during warm weather months to contain a 20% blend of biodiesel. During the winter months, the blend is 5% biodiesel.

In that state, biodiesel replaces about 130 million gallons of petroleum diesel. This is especially important for older vehicles that do not have the pollution control devices now required for all diesel vehicles sold in the United States.

60,000 jobs

The US Environmental Protection Agency has declared biodiesel the industry’s first advanced biofuel. The biodiesel industry now supports nearly the entire country and more than 5,000 jobs in Minnesota alone, and contributes nearly $1.7 billion to economic activities in the state. It also increases the demand for soybeans by around 13%. Minnesota supports biodiesel plants in Albert Lea, Brewster and Isanti, which produce approximately 85 million gallons of the renewable fuel each year.

Data from a recent study by the Minnesota Soybean Research & Promotional Council (a council of soy producers in the US) indicated the following positive aspects of adopting biodiesel:

• Breathing easy: In 2020, using a blend of 20% biodiesel in the summer and a blend of 5% biodiesel in the winter removed about 1,252,967 tonnes of CO2 from the air. That’s how to remove emissions from nearly 246,000 passenger vehicles each year.
• Capturing carbon: Using plant-based fuel sources like soybeans means not only that renewable fuels emit less carbon and other harmful emissions, but during growth, plants capture carbon. This is a potent combination for carbon offsetting.
• Driving the economy: For every 1 million gallons of production, biodiesel contributes $22.8 million to total economic output statewide and sustains 73 jobs. As a whole, biodiesel’s total economic impact is about $1.7 billion a year and the industry supports about 5,400 jobs in Minnesota.

Check here the campaign launched by MSR & PC that highlights the “superpowers” ​​of biodiesel.

Below, some relevant testimonies that show the importance of the sector’s evolution in the United States:

“The American Lung Association recognizes biodiesel as a Clean Air Choice alternative fuel for its ability to reduce lifecycle criteria and emissions in the transportation industry.” – Lisa Thurston, from the American Lung Association, an association that promotes actions to improve lung health and prevent lung diseases

“With the ongoing debate about ‘clean cars’ and electric vehicles, we know that biodiesel is a reliable solution for dealing with climate and energy issues. It’s reducing carbon right here, right now. During this fourth year of demanding the B20 biodiesel blend, it is important to remind people of the numerous benefits this advanced biofuel offers to our state. From soy producers and renewable fuel to end users, we all reap the benefits of the less carbon-intensive, greenhouse gas-reducing fuel.” – Mike Youngerberg, Senior Director of Product Development and Marketing at MSR & PC, who is also Executive Director of the Minnesota Biodiesel Council.

“We’ve always known that biodiesel offers a better and cleaner alternative to petroleum diesel. This study quantifies the health benefits and shows that, by using renewable fuels such as biodiesel and renewable diesel, we are bringing positive changes to people’s lives, the health of the country and the economy.” – Donnell Rehagen, CEO of the National Biodiesel Board – National Biodiesel Board (NBB)

BEST RESEARCH (Bioenergy and Sustainable Technologies)

Biofuels are already, and will continue to be at least until 2030, the main protagonists in reducing carbon emissions in the transport sector in several countries, according to a study led by the BEST (Bioenergy and Sustainable Technologies) research center presented at the international event “ Biofuture Summit II and Brazilian Bionergy Science and Technology Conference”, organized by Itamaraty and FAPESP. This positive effect of biofuels on gas emissions is expected to last at least until 2050 in Brazil.

To achieve their carbon emission reduction targets in the road transport sector by 2050, countries will have to take several measures simultaneously. These include reducing demand for road transport, increasing vehicle efficiency, adding biofuels to fossil fuels, adopting electricity generated from renewable sources, and using hydrogen obtained from renewable sources such as ethanol.

The study included the participation of 20 experts from seven countries and focused on the impact of fuels such as ethanol, methanol, higher alcohols (butanol, for example), ethers, biodiesel and methane. It also measured the impact of hydrocarbon reduction on current fuels.