10 Biofuel Facts

10 Biofuel Facts

Windmill Capital Management works with biomass developers on projects ranging in size from $5 million to more than $100 million. We support projects that utilize advanced technologies to reduce or eliminate waste, reduce greenhouse gas emissions, and generate top-quality fuel and valuable by-products.

Being so close to the cutting edge of the biofuel market, it’s easy to overlook that for many, biofuels are exotic and misunderstood. Therefore, we thought it would be useful to share some facts about biofuel. Most of the following information is distilled from a recent article published in Fuels Market News.

  1. Biofuel has been used in diesel engines for more than 25 years. Biodiesel is time-tested. In many respects, advanced biofuel production has led the way in improved fuel standards.
  2. Biodiesel is a well-established and standardized product. In fact, while petroleum diesel has 13 production specifications, biodiesel has 20.
  3. Biodiesel is a flexible fuel. B100, which is 100% biodiesel, can be blended with petroleum diesel to create “tank-ready” fuel at any ratio.
  4. Biodiesel improves engine performance. Biodiesel has higher lubricity than petroleum diesel, which helps engines perform better.
  5. Biodiesel is safer. With zero aromatics, biodiesel is less toxic than petroleum diesel.
  6. Biodiesel requires no vehicle modifications. Biodiesel can be used in any ratio, up to 100%, with no modifications required to vehicle mechanics or emissions.
  7. Biodiesel produces less greenhouse gas. Biodiesel has higher cetane and lower sulfur content than petroleum diesel. This produces a cleaner, more complete burn, which reduces greenhouse gas emissions.
  8. Biodiesel has a low carbon footprint. Biodiesel has proven lifecycle carbon reductions of more than 80 percent over petroleum diesel.
  9. Cleaner than electric vehicles? Calculations by the California Air Resources Board show that biodiesel is well below the average carbon footprint of electricity produced in the United States.
  10. Biofuel production is cost- and capital-efficient. Biofuel plants of varying size can be located where feedstocks are plentiful and closer to fuel consumers, reducing input and transportation costs.

Contact us if you’re interested in learning more about investment opportunities in the biomass and biofuels space.

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