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February 29, 2008

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Bob Knaus

Under socio-economic considerations, you might want to add "Biodiesel from waste cooking oil competes with higher value uses such as soap manufacture." Waste cooking oil already has a fairly well defined value chain in the US. So much so, that there are occasional problems with thieves stealing the stuff from the back of McDonald's after hours. If it's that valuable, surely the cruise ships must be taking it back to Miami rather than dumping it overboard.

This is a classic case for price, rather than policy, making the decision.

If, from a policy perspective, you think there are externalities, then impose a carbon extraction tax on the petroleum based products and don't levy it on fuels made from cooking oil. Set the tax at a rational level, more or less equivalent to market prices for carbon credits. Then let the market sort out the rest.

It's the only sane way.

Sam Wells

My understanding is that manufacture of biodiesel is in this case using clean cooling oil and reacting it with methanol and sodium hydroxide which produces both glycerin and fatty esters. The glycerin is sold for soap and the fatty esters are retained and treated for excess methanol (which can eat up plastic gaskets). This straight run biodiesel is then blended with kerosene or Number 2 Diesel at perhaps 20 percent or more.

Although there is a slight increase in oxides of nitrogen and some driveability issues, biodiesel sounds promising. it should be explained that use of soy beans and rape seed can increase greenhouse gas emissions, however. The cost of production is what concerns most people.

I guess if one could make the stuff and sell it from a tank truck in the Bahamas it might work, if you can handle the horrible smell of old yellow grease! -sam

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