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The Rapid Growth ofBiodiesel in Illinois
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Pre-2003 in Illinois
Ethanol Friendly Checkoff funded biodiesel R & D B20 Alternative Fuel Status Iraq – Energy Security
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PA 93-0017 Signed 6/11/03
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How It Works at ≤ 10%
Diesel Biodiesel (B2)
$2.45 Ret. Cost f/Diesel 2.40
Biodiesel ($3.30) .07
.24 Federal Tax .24
2.69 Subtotal 2.71
.17 6.25% IL Sales Tx 5% .14
.22 IL Motor Fuels Tx .22
$3. 08 Total $3.07
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How It Works ≥ 11%
Diesel Biodiesel (B11) $2.45 Ret. Cost for Diesel $2.18
Biodiesel ($3.30) .36 .24 Federal Tax .24
2.69 Subtotal 2.78
.17 6.25% IL Sales Tx 0% .0 .22 IL Motor Fuels Tx .22 $3.08 Total $3.00
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Estimated 2006 Usage in Illinois
1.5 billion gallon diesel market Goal: Capture 10% market for biodiesel (150
million gallons) In 2006, estimated usage of 63 million gallons
in Illinois 25% of 250 mg produced in U.S.
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IL
63
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95th General Assembly
SB649 – Senator John Sullivan Calls for labeling of pumps dispensing
biodiesel at blends 6-20% by July 1, 2008 Signed by Governor August 28, 2007
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What’s Ahead
Challenges Terminal Infrastructure Building production capacity Quality of fuel Naysayers Harder to market than gasoline Feedstock sourcing ULSD
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What’s Ahead
Opportunities Illinois a transportation hub Ethanol has paved the way Need for energy security widely acknowledge Positive energy balance Safe and easy to implement Replaces lubricity in ULSD
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Thank You!
Sources of Information– www.ilsoy.org (Illinois Soybean Association)– www.biodiesel.org (National Biodiesel Board)
Rebecca A. Richardson, CAE
Director of Operations
Mark Albertson, MBA
Director of Marketing