INVESTING CHECKOFF DOLLARS
BIODIESEL SETS SAIL
U. N . R U L E CO U L D I M P R OV E MARKET DEMAND BY KATIE JAMES
“A
vast, ye landlubber” might not be what the average soybean farmer thinks as they finish the last few rows of harvest. But with a new U.N.-imposed rule, those soybeans might end up fueling an ocean vessel across the sea. Starting Jan 1, 2020, all ocean vessels are required to reduce sulfur emissions from the current 3.5% to 0.5%. This rule is set by the International Maritime Organization (IMO) — the U.N.’s specialized agency that works toward preventing marine and atmospheric pollution. Part of
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a comprehensive effort to clean up shipping emissions worldwide, it aims to reduce sulfur emissions by 77% — or 8.5 million metric tons. Ships have two options to achieve this expectation — installing an exhaust gas cleaning system called a scrubber or changing fuels. “Most companies have hesitated to purchase a scrubber,” says Tom Brooks, general manager at Western Dubuque Biodiesel, a biodiesel processing facility in eastern Iowa. “Choosing an alternative fuel is more practical.”
That’s where homegrown, soybeanbased biodiesel comes in. Biodiesel provides cleaner air emissions, better lubricity, and similar horsepower, torque and mileage as diesel and requires no change of equipment or infrastructure. According to Brooks, to meet this new standard, shippers will likely go from a No. 4 diesel fuel to a No. 2, which he believes will be beneficial to the biodiesel industry. “A 5% blend with the No. 2 diesel option would create an annual demand for 2.7 billion gallons of biodiesel,” says Brooks.
