Biodiesel Tax Credit Extension

Biodiesel Tax Credit Extension. The US has passed a Biodiesel tax credit extension for the production of renewable energy, including biodiesel. The new legislation simplifies the tax credit for producers and the law would be extended for five years. Nationally, the biodiesel tax incentive has helped increase the production and use of biodiesel from 25 million gallons in 2004 to 500 million gallons in 2007. If the biodiesel tax incentive was to lapse, biodiesel production in California would halt and the development of new production and distribution facilities would be shortened or lost.

If the biodiesel tax credit is not extended, small businesses in California that comprise the State’s biodiesel industry will be placed in an unequal and unfair position relative to our fellow citizens to the North and East who can produce biofuels from more water-intensive crops such as corn and soybeans. The biodiesel blenders excise tax is structured in a manner that helps make biodiesel price competitive with conventional diesel fuel. If the tax incentive is allowed to expire at the end of the year, the price of biodiesel will be significantly higher than petroleum diesel, thus significantly reducing demand and making it nearly impossible for biodiesel plants to produce fuel at a profit.

Making Biodiesel from Corn - is That Possible?

Making biodiesel from corn is an easy and also it can be done in the house itself. Corn is actually one of the best vegetable oils commonly in producing biodiesel. The other eatable products that help in biodiesel making are Soya and flaxseed. Mix some vegetable oil with just a little bit of methanol. Place the mixture in an alkaline catalyst, like sodium hydroxide, which should just be 1% of the total mixture. Vegetable oil comprises of triglycerides compounds of glycerin. The triglycerides compound of glycerin has three fatty acids. This whole process separates the glycerin molecule from its three fatty acids, which would eventually be replaced with three methanol molecules. The final product is 10% glycerin byproduct and 90% biodiesel. The process is called ester interchange and thus biodiesel is made with the help of corn.

Making biodiesel from corn consumes more amounts of Soya and corn. This method of doing biodiesel is not appreciated by many, as eatables are used in it. By using eatables such as corn, Soya in making of biodiesel, we are forcing the food prices go up which will soon result in food riots. The government of United States has made the decision to make the corn based E85 biofuels.