By RICK A. RICHARDS
Indiana Correspondent

WASHINGTON, D.C. — Users of diesel fuel, particularly farmers, stand to gain from the new fuel economy standards that were announced by President Obama and the U.S. Environmental Protection Agency (EPA) in a White House Rose Garden ceremony July 29.

Allen Schaeffer, executive director of the Diesel Technology Forum (DTF) in Washington, D.C., said the new standard of 54.5 miles per gallon will boost clean diesel technology. The standard will be phased in over the next several years before taking full effect in 2025.

“Meeting these challenging new fuel efficiency targets will require many different technology solutions,” said Schaeffer, “and we’re more confident than ever that clean diesel technology is going to be one of those solutions. Only time will tell if the American consumer is ready for plug-in electric, natural gas or propane-powered vehicles on a larger scale, but they are already telling us loud and clear that they are ready for more clean diesel technology by their choices in showrooms.”

According to statistics from the DTF, the sale of clean diesel autos was up 34 percent in May compared to one year ago. It pointed out in Europe, however, half of all automobiles sold are diesel because of high fuel efficiency and low emissions. By comparison, the diesel market in the United States is just 3.1 percent of all vehicles.

By setting the standard now, it will have an impact on the design of cars and light-duty trucks to be produced by automakers for the 2017 model year. While a mileage standard has been set, no guidelines have been established on what kind of technology automakers will use to reach the mandate.

“Clean diesel engines will allow manufacturers to continue to provide consumers with the full range of vehicles they want, from fuel-efficient family sedans to crossover SUVs, to full-size pickup trucks, which continue to rank in the top five best selling vehicles in the U.S.,” said Schaeffer, who added use of the new diesel technology will not impact performance or fuel economy.
“Now more than ever, consumers are cautious with their automotive investment dollars looking more for long-term value, performance and confidence. The technology is proven and clean diesel is now available alongside gasoline blends at more than half of all service stations throughout the country.”

There was concern when the new fuel efficiency standards were announced by the Obama administration that it could negatively affect agriculture, but Kenneth “Pete” Moss, president of Memphis, Tenn.-based bioenergy and biofuel consulting firm Frazier, Barnes & Associates LLC, said that is not the case. Moss has 20 years of experience with renewable energy, including 13 with this firm.

“Biodiesel is much better positioned than any other fuel to take advantage of the new standards,” said Moss. “It will benefit farmers because for the most part, diesel engines don’t have to be modified to use the fuel, like they do for E85 ethanol in cars.”

He expects the new standards to increase production of biodiesel in the U.S. from 1 billion gallons a year to 1.28 billion annually. “I think the new standards are going to encourage more farmers to use biodiesel,” said Moss.

At this point, he said it was impossible to predict what the price per gallon of biodiesel would be. “Figuring out the price is a complex thing because there are so many variables,” he said, adding the price would be competitive to other fuels.

Another positive aspect of the EPA announcement, said Moss, is it sends a strong message that the market for biodiesel and other alternative fuels will increase.

“It brings stability to the alternative fuel market,” he said. “It’s already in wide use in Europe and other countries, and this will make it more appealing here.”
Moss said while widespread use of E85 hasn’t taken off like supporters of ethanol have hoped, he pointed out there are big differences between that and biodiesel.

“First, biodiesel is used in any engine with little or no modification,” said Moss. “Second, biodiesel can come from a variety of sources like vegetable oil, animal fats and algae. Finally, biodiesel returns five times as much energy as it takes to make it, giving you more bang for your buck.”

Moss said Frazier, Barnes & Associates has spent the past decade studying biodiesel and the firm is deeply involved in the study of other alternative energies. It is involved in programs to convert methane from waste into electricity, has constructed a large-scale biodiesel facility and has helped other smaller biodiesel companies ramp up their operations. Besides the U.S., the firm is involved in projects in Canada, Ireland, the United Kingdom, Germany, Latvia and Uganda.

Biodiesel projects backed by the firm in the United States are in Mississippi, Arkansas, Tennessee, Georgia, Virginia, New Jersey, Michigan and Iowa.