Despite cost, environmentally friendly biodiesel attracts customers
Apr. 17--By Carly Harrington, The Knoxville News-Sentinel, Tenn. Knight Ridder/Tribune Business News
Sam Adams likes the idea that he can help make a difference in the environment and economy simply by switching his fuel.
"It's been on my radar, and I've been looking forward to switching over
to it. But it's only just now becoming readily available," Adams said.
At a time when gas prices are at record levels and the region has reached
non-attainment status for its bad air, biodiesel is garnering local and national
attention.
The cleaner-burning alternative fuel made from renewable resources like
soybeans or animal fats is now available in Knox County, with the opening of its
first public pump last week. Regal Petroleum Co. became the sixth fueling
station in the area to sell the diesel blend, most commonly sold as B20 -- 80
percent standard diesel fuel and 20 percent biodiesel.
Individual users and fleets from corporations and government organizations
are among those who are jumping on the bandwagon.
The amount of biodiesel used nationally increased from 500,000 gallons in
1999 to an estimated 25 million gallons in 2003, according to the National
Biodiesel Board.
In East Tennessee, biodiesel consumption was practically nonexistent prior to
the area's first B20 pump last April.
By the end of 2004, 20 fleets consumed 90,000 gallons of pure biodiesel known
as B100, or the equivalent of 500,000 gallons of blends, said Jonathan Overly,
executive director of the East Tennessee Clean Fuels Coalition.
"I would not be surprised if it goes 10-fold this year," Overly
said. "We're going to see excellent results. I have no doubt."
The right thing to do McNutt Oil Co. Vice President Pete Gale had never heard
of biodiesel until a Maryville dump truck operator approached him about it
almost two years ago.
He liked the fact that it could help American farmers and reduce the
country's dependency on foreign oil.
"It seemed like such a good idea. We were all excited about trying
it," Gale said.
Gale helped spearhead the opening of East Tennessee's first biodiesel pumps
at three Mr. Gas Texaco public fuel stations in Alcoa, Loudon and Newport. The
initial response from consumers was slow, but over time, Gale said the word on
biodiesel spread.
"It has really grown very quickly. It seems to be everywhere," he
said.
Maryville-based McNutt Oil also supplies biodiesel to aluminum manufacturer
Alcoa Inc. and Knoxville Area Transit, which have switched entire fleets to B20.
The cities of Chattanooga, Gatlinburg, Maryville, Sevierville and Alcoa are
also using biodiesel, while Knoxville and Knox County are considering starting a
pilot project.
Like Gale, some point to the nation's dependency on foreign oil as enough
reason to make the switch. Others tout the environmental benefits of biodiesel
-- from lower emissions to fumes that smell less offensive.
But most agree it's simply the right thing to do given the area's recent
non-attainment status by the U.S. Environmental Protection Agency.
Knox and six surrounding counties were given the designation last year
because they weren't in compliance with federal ozone requirements.
As a result, Scott Smith, president of Knoxville-based Regal Petroleum Co.,
said he believes "the market is going to demand it."
"I think it's going to eventually be a part of the everyday product
mix," Smith said.
Regal Petroleum Co. spent thousands of dollars to become the first commercial
fueling station in Knox County to begin publicly selling B20 at its 1206 Proctor
St. location.
Other biodiesel pumps are in Blount, Cocke, Hamilton and Loudon counties.
It wasn't until biodiesel became publicly available that 71-year-old Blount
County resident Dan Pursglove got interested. He now uses it in his 2002
Volkswagen Jetta.
"The more I read about it, the more I liked it," Pursglove said.
"Unfortunately, until more people start asking for it, there aren't enough
places to buy it."
Overly said his East Tennessee Clean Fuels Coalition is in talks with Pilot
Corp. and three other petroleum companies in Knoxville to possibly open
biodiesel stations in the area.
"There's definitely a lot of room for growth in East Tennessee, and
we're working in that direction," Overly said.
Biodiesel typically costs about 20 cents to 25 cents a gallon higher than
standard diesel. As of Thursday, diesel was selling for $2.22 a gallon in
Knoxville, according to the AAA Fuel Gauge Report.
But a federal tax credit that went into effect at the first of the year has
helped offset some of the cost and boost demand.
With government incentives comparable to those provided for ethanol,
biodiesel sales could reach about 2 billion gallons per year, or replace about 8
percent of conventional highway diesel fuel consumption, according to the
American Biofuels Association.
Minnesota became the first state to mandate nearly all diesel fuel sold
contain a small percentage of biodiesel. Other states, like Michigan, are
considering similar initiatives.
"It's only a matter of time before we get there in Tennessee," said
Mark Downing, who has been using biodiesel in his 1984 Volvo for almost two
years, pumping it out of a 55-gallon drum before it became publicly available.
Downing, 49, owner of TransTech Volvo/BMW in Oak Ridge, said consumers
shouldn't worry about higher costs. Biodiesel makes vehicles run better,
extending the life of the car. Plus, the alternative fuel is more economical,
getting more miles per gallon.
Environmental Engineer Chris Moore said Alcoa Inc. just wants to be a good
corporate citizen. The Blount County company has been looking for ways "to
minimize the environmental footprint."
"We wanted to make tangible changes at our facilities to help reduce
emissions," Moore said.
Alcoa switched its fleet of 550-plus vehicles last November from conventional
diesel to biodiesel.
The transition, however, ran into problems as cold weather set in and tended
to clog the vehicles' fuel filters because of the presence of animal fats in the
fuel.
The company halted use of the alternative fuel but resumed using it last
week, Moore said.
"We feel like it's our responsibility to do all we can within reason to
help," Moore said.
Knoxville Area Transit is the biggest user of biodiesel in East Tennessee,
using in excess of 11,000 gallons of B100, or 55,000 gallons of blends a month
for its more than 80 diesel buses, said Barry Greenberg, director of maintenance
for KAT.
The public transit operator has plans to switch from B20 to B25 in the next
30 to 60 days and to B40 and B50 by the end of summer. Ninety-three percent of
fuel consumed by KAT is alternative fuel. Greenberg is aiming to increase that
by 5 percent by the end of the year.
Last October, KAT was named the top transit system in the nation by the
American Public Transportation Association in part because of its clean fuels
program.
"We're going to do everything within our power to reduce emissions and
make better the environment for our citizens," Greenberg said. "Nobody
is going to be ahead of us."
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