Biodiesel Basics

Businesses require specific quantities and quality of energy to provide their services, and these requirements form a large part of company expenses. Transportation requirements, which are sometimes described as logistics, also need to be figured into the equation. With crude oil prices rising faster than ever, companies are continuously seeking cost-effective ways to make every drop of fuel count.

Although biodiesel is not a new type of fuel, it is gaining in popularity as an alternative renewable fuel that can be used in various blends in unmodified diesel engines. Biodiesel comes from vegetable oils that undergo transesterification, a chemical process that extracts methyl or ethyl esters from the oils that can then be used as fuel, either in a pure or blended form. Oil sources include coconut, soybean, grape seed, jatropha, or waste vegetable oil.

Biodiesel is now commercially available in many gas stations throughout the United States. Proponents say blends of up to 20% (B20) may be used in most unmodified diesel engines. When blended properly, biodiesel provides the same mileage, torque, and horsepower as petroleum-based oil does.

Most people agree, there are also potential environmental and health benefits to be enjoyed by producers, suppliers, and users. Thus the conversion to more biofuels is probably inevitable. Some people are very concerned with how that conversion is executed, since the timing and costs of the changes are not clear. Particularly the total of those direct and indirect costs and what groups benefit and which groups suffer are major concerns

What the biofuels discussion points to is the urgency for business to begin planning NOW for the inevitability of a green energy world. Businesses must defend their competitive position by preparing for a changing, greener business environment. Will you be a winner or loser?

Bottom line? - Stop Profit Leaks. Apply this information to improve your profitability, reengineer business models, and strengthen or gain competitive advantage in the marketplace. And apply the free Fiscal Test at http://fiscaldoctor.com/fiscaltest.html

From Gary W Patterson, http://www.FiscalDoctor.com Copyright 2008

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