Surging demand fuels area biodiesel firms (CA)

[jpak]

http://www.pacbiztimes.com/index.cfm?go2=articles/wk_111706b

When it comes to alternative fuels, biodiesel hasn’t captured the imagination of American consumers and policymakers in quite the way that ethanol has, but a new analysis of the global biodiesel industry suggests that companies near and far are still banking heavily on the fuel’s potential.

The report released Nov. 2 by Menlo Park-based SRI Consulting, shows that worldwide biodiesel capacity, production and consumption grew by 32 percent between 2000 and 2005. Production and demand were both projected to double for each of the following three years. However, demand for the fuel is expected to grow more slowly, the report shows, with supply continuing to outstrip demand by more than two-to-one for the foreseeable future.

Ted Brown, a consultant to T.W. Brown Oil Co. in Ventura, is preparing to develop a biodiesel production facility and statewide network of fueling stations that will accept a common credit card. Brown also said he has developed a catalyst that he has added to his biodiesel to help improve the performance of automobiles using the fuel.

Meanwhile Ken Olsen, the president of Santa Barbara-based McCormix Corp. said that while a niche market has formed for his company’s biodiesel blends, he hasn’t seen any sign that the fuel has piqued any interest among McCormix’s lucrative fleet and rail customers.

<more>