Biodiesel fuels the future

Guest Opinion: Troy Hornbeck

Here’s a prediction: Five years from now we will look back and say that 2007 was a watershed year for Arkansas’ economy and its environment. And we’ll be able to sum up the reason in one word: biodiesel.

As I hope to make clear in a moment, a few key policy decisions now will let Arkansas play to our strengths and become a national leader in biodiesel and other biofuels. And every part of the state’s economy will benefit as a result.

Biodiesel is the term for fuel made from renewable feedstocks such as soybean oil, cottonseed oil, even chicken fat. Arkansas produces soybeans, cotton and poultry in abundance. By using these and other agricultural products for biodiesel production, we can create new in-state markets for Arkansas farmers, put more money back into local communities and boost our state’s overall economy.

We see proof of those benefits in the Midwest Corn Belt, where corn is being converted into ethanol fuel that is blended with gasoline. As more people use ethanol blends in their cars, crop prices have improved dramatically. Corn growers are spending much of that new income in their local communities, which helps the entire Corn Belt economy.

Arkansas doesn’t grow much corn, but we are a national leader in crops that are perfect for making biodiesel. The best way to help Arkansas’ economy in the shortest time is by adding value to what we already produce in abundance. Other pluses of biodiesel: Its manufacture creates no hazardous wastes, its consumption creates far lower engine emissions and it can reduce our dependence on foreign oil.

Biodiesel is so vital to Arkansas’ future that it was a significant issue in the recent state elections. Incoming legislators and others already see the benefits of homegrown energy and are discussing how to encourage this new industry. As the legislative session nears, let us encourage state leaders to adopt essential biofuel policies that:

  • Have few or no mandates. For example, it would be a mistake to mandate that X percent of all diesel used in government-owned fleets be made from biofuels. If for any reason Arkansas producers couldn’t satisfy the demand, fleet managers would have to buy fuel out-of-state just to satisfy a mandate.

  • Encourage in-state production using homegrown feedstocks. The goal is to help our state economy. To do that, incentives must be crafted to encourage investment in local biofuels facilities that use Arkansas-grown feedstocks, and they must encourage Arkansans to use the new homegrown energy.

  • Are resource- and technology-neutral. Public policy should encourage biofuels production based on what works in the local market. It makes sense for biodiesel producers in the Delta to use soybean oil extracted from local crops. Northwest Arkansas bio-diesel plants can use chicken fat obtained from poultry processors. Elsewhere, timber wastes might be converted into ethanol.

  • Allow flexibility to make good business decisions. For example, biodiesel is blended with petroleum diesel at a rate of 2-20 percent. State regulations must let retailers sell multiple biodiesel blends from a single pump. Such flexibility will assure consumers of a consistent supply of biodiesel, and will encourage retailers and producers to invest and compete for business.

    State officials are already discussing these and other ideas to help Arkansas realize its biofuels potential. That potential is enormous, as shown by the following quick facts:

    Arkansas is first among the states in poultry production, third in cotton and ninth in soybeans. Only 12 states outrank us in total agricultural value, and farm income nourishes Arkansas’ whole econ-omy in ways many may not realize. For example, soybeans are grown in 50 of the 75 counties.

    Biodiesel production can have equally broad economic benefits. More value can be tapped as we develop canola or other new biodiesel crops and new technology allows forest products to be used as feedstock for ethanol.

    National experts say biodiesel is growing faster today than are other biofuels. Let’s be part of that growth. Please join me and others in supporting our elected officials as they work to develop the best mix of public policy initiatives to promote biofuels. Together we can make 2007 a banner year for our state’s economy and its environment through homegrown energy.

    Troy Hornbeck is a managing partner in Arkansas SoyEnergy Group LLC of DeWitt, which is building the state’s first biodiesel plant that will rely entirely on Arkansas soybeans for its feedstock.

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