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One that is proving successful, however, is that of powering wind turbines with biodiesel, as governments and private companies alike increasingly turn to alternative (low cost and readily renewable) energy sources. 1 End-user applications for biodiesel Application Transport (truck, bus, train): 30% of total Automotive: 60% of total Heating: 8% of total Other: 1% of total Current Future Mainly local and national government sector; An increasing number of governments will blends range from B5 to B100 use the fuel for their entire transport fleet, setting flagship examples for other economic sectors All car makers now approve a B5 mix; 1–5% of All car makers are working towards vehicle sales are diesel cars, depending on the producing vehicles able to run on B20.

Virtually the entire council fleet now runs on B100. In Europe, more and more cities are following London’s lead. In Austria, for example, the ‘from the pan into the tank’ project collects used oils from fast-food chains and turns it into biodiesel for the public bus network. No fuel-related issues have surfaced from these projects, reinforcing the generally held view that biodiesel performs, overall, better than fossil diesel. CO2 emissions are also significantly lower with biodiesel than they are with ordinary diesel, giving producers access to government carbon credits and other concessions.

By making tax credits for biodiesel and ethanol permanent, legislators seek to provide the stability these emerging industries need to grow. In the US, for example, tax credits have allowed the biofuel industry in states such as North Dakota to grow at record levels over the past three years. The very pace, though, at which the biofuels segment of the global economy is growing can present uncertainties and risks for producers. In some countries, changes in emission level requirements have placed untenable strains on producers’ budgets and production systems, as they seek to comply with the new requirements, while in others, producers’ long-term revenue projections have been impacted by the introduction of government restrictions on exports of biofuels; in other cases, the granting of environmental licences has taken so long that biofuel producers have been forced to close down.

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