Biodiesel Cheaper than Oil-based

I didn't expect it so soon. Biodiesel has become cheaper than regular diesel in Oregon.

Statesman Journal (AP):

While soaring fuel costs are the bane of most businesses, Oregon makers of biodiesel are celebrating. Their product now is cheaper than the stuff that comes out of the ground.

"We're selling our biodiesel for less than petroleum diesel out of the rack," said Tyson Keever of SeQuential Biofuels, the state's largest biodiesel producer. "Our phone is ringing off the hook as the (oil) price goes up," he told Portland's Daily Journal of Commerce newspaper.

Biodiesel sold for 20 to 30 cents a gallon more than regular diesel as recently as March. It is made from vegetable oil, including used oil from fast-food restaurants. The blend B99, of 99 percent biodiesel with 1 percent diesel fuel, was $2.77 a gallon, two cents cheaper than regular low-sulfur diesel, Monday at Carson Oil in Portland.

Demand for the renewable fuel in the state has risen with oil prices, which many expect to keep climbing.