Production of Biodiesel Fuel
Alternative fuels such as biodiesel are healthy for the environment and the public health. Their production is only growing, and many biodiesel operations are performed in private homes. Producing biodiesel may also qualify you for a tax break.
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History
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The creator of the diesel engine, Rudolph Diesel, originally intended his machine to run off of renewable, biological compounds such as peanut and vegetable oil. However, petroleum diesel cost less during the early days of the diesel engine, according to the Energy Information Administration's diesel website.
Features
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Just about any fat or oil can be used in the production of biodiesel. Soybean oil and waste cooking grease from restaurants are common sources of oil for biodiesel, according to the U.S. Department of Energy.
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Significance
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Verified production of biodiesel reached 491 million gallons in 2007, 5 percent of all diesel fuel, according to Department of Energy statistics.
Benefits
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Biodiesel produces fewer emissions than regular diesel. Exactly how much depends on the grade of biodiesel. 20 percent biodiesel reduces emissions by 15 percent, all the way to a 75 percent reduction by pure biodiesel.
Considerations
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The production of biodiesel and biodiesel facilities generally qualify for tax write-offs. The main incentive is the Alternative Fuel Infrastructure Tax Credit, which provides a credit of 30 percent of the cost of a facility not to $30,000.
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References
- Photo Credit Image by Flickr.com, courtesy of Chris Chan
