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Location: About Yellow > Newsroom > Renewable Resources

Biodiesel: Passing Fad or Wave of the Future?

The industry is buzzing about ethanol fuel and its diesel counterpart: biodiesel, a clean-burning, alternative fuel produced from domestic, renewable resources. Biodiesel fuel sales in the United States are on the rise, jumping from 500,000 gallons in 1999 to 75 million gallons in 2005. Use of the environmentally friendly fuel seems likely to continue to grow as more states pass laws requiring biodiesel use in large trucks.

Yellow will be ready. Yellow already buys more than 2.5 million gallons of biodiesel fuel a year, and that number is on an upward trend, says Joe Broski, senior manager of commodity procurement. The areas of heaviest use are Minnesota and Illinois where tax incentives make biodiesel use economically feasible. Yellow actually uses a biodiesel blend in its trucks, Broski says, that is low enough to produce environmental benefits without causing harm to engines.

The primary benefit of biodiesel, experts say, is that it burns cleaner than diesel fuel. A 1998 study, jointly sponsored by the U.S. departments of Energy and Agriculture, concluded that biodiesel reduces net carbon dioxide emissions by 78 percent compared to petroleum diesel. In addition, studies confirm that biodiesel exhaust is less harmful to human health than petroleum-based diesel. Biodiesel is produced from any fat or oil, such as soybean oil, through a refinery process called transesterification.

Biodiesel fuel is more expensive to produce than diesel, says Bill Millard, manager of procurement, but that may change as technology evolves.

Other factors that create an uncertain future for biodiesel are that engine manufacturers continue to improve the efficiency of diesel engines and refiners are making inroads in producing cleaner-burning diesel fuel. In a related development, American Trucking Associations (ATA) leadership recently agreed to move forward with the National Biodiesel Board on a coordinated approach to promote biodiesel at the federal level, while preempting state mandates currently in effect.

"Biodiesel is still in its infancy, with quality standards being implemented, and worldwide specifications unresolved," Millard says. "Yellow is actively monitoring and using this emerging product, and plans to be ready to expand its use if it becomes practical."

—From Yellow Transportation Week, the employee newspaper 3/07

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