Proponents tout the many advantages of using biodiesel in vehicles. 1. Biodiesel is a cleaner fuel than petroleum and can reduce carbon dioxide emissions up to 80%.New regulations have provided for almost zero sulfur dioxide content in biodiesels. 2. Studies suggest that lower blends of biodiesel are more fuel efficient than fossil-based fuels and can make engines last longer due to its lubricating properties. 3. Biodiesels make cold starting of vehicles easier because of its high octane ignition rate that makes it heat up more easily than petroleum diesel. This also results in lower noise pollution.
Who Will Benefit? Fleet vehicles and the public transportation sector stand to benefit from biodiesel in terms of cost and efficiency. Since oil prices have gone through the roof, biodiesel has the potential of becoming a cheaper fuel as well as being a more stable source than petroleum diesel. For example, lower blends (B2, B5, and B10) can cost less than petroleum diesel. B20 is sold at almost a similar price to petroleum diesel, but biodiesel prices are expected to decrease as petroleum prices are expected to continue to increase in the world market. To encourage biodiesel demand, local producers and supply of biodiesel will increase their production.
Most agree that there are potential environmental and health benefits to be realized by biodiesel producers, suppliers, and users. Thus the conversion to more biofuel is probably inevitable. The overwhelming concern, however, has to do with the conversion to biodiesel: Timing and costs (direct and indirect) associated with this conversion are still not clear. The number one question is: Which industries will benefit? Which industries will suffer? With congressional leadership favoring the acceleration of greener energy in a way that clearly benefits their constituents and lobbyists, there undoubtedly will be winners and losers.
What the biofuel discussion points to is the urgency for businesses to begin planning NOW for the “inevitability” of a green energy world in order to protect themselves from rising energy costs and clean-energy regulations, policies, and taxes. Will your business be prepared to compete in a changing, greener business environment?
Bottom line? – Stop profit Leaks. Apply this information to improve your profitability, reengineer business models, and strengthen or gain competitive advantage in the marketplace. And apply the free Fiscal Test at http://fiscaldoctor.com/fiscaltest.html
From Gary W Patterson, http://www.FiscalDoctor.com Copyright 2008
Public Transportation (Part 1)
