How much does biodiesel cost?
Just like gasoline prices, the cost of biodiesel fluctuates. It depends on where you live, time of the year, etc. Currently, 100% biodiesel costs about $3.25 per gallon in the Portland, Oregon, USA markets (5/28/2006). Of course our co-op sells B100 to members for much less than our commercial competitors in the Portland area. Another thing to keep in mind is that diesel engines offer 30-40% better fuel mileage than gasoline vehicles. So even if you pay 30-40% more per gallon, your cost-per-mile is much less than a gasoline car. For example, if gasoline costs $3.00/gallon, then biodiesel at $3.25/gallon will result in a lesser cost-per-mile for fuel. For more comparisons, see Fuel Types. Of course, we think the environmental cost of biodiesel is vastly less than petrodiesel or gasoline.
Surveys by Booz-Allen & Hamilton Inc., Sparks Companies, Inc., and the University of Georgia have found that a truck or bus fleet using a 20 percent biodiesel/80 percent petroleum diesel blend would experience lower total annual costs than other alternative fuels when including capital requirements. Research into advanced farming practices and more efficient production would further reduce the cost of biodiesel.
The wholesale cost of biodiesel generally exceeds that of conventional diesel fuel by $1 to $2 per gallon. The actual cost difference depends on the size of the biodiesel producer, the cost of its feedstock, transportation costs, production incentives, tax incentives and other local variables. Historically, the cost of B20 has been about 20 cents more per gallon compared to diesel fuel. B2 is priced only a few cents higher than diesel fuel.
