Oregon Public Broadcasting

Gasoline and diesel prices hit new record highs Monday.  You’d think that might drive consumers to alternative fuel.  But in the case of biodiesel, prices at the pump are rising as fast as for regular fuel.  Correspondent Tom Banse reports.

Our unscientific survey found pure biodiesel selling for between $4.77 a gallon near Ashland on up to $5.64 per gallon in Seattle and Mt. Vernon, Washington.  One retailer told us demand is holding steady.  But it wasn’t supposed to be like this.

Nikola Davidson: “When folks were talking about getting into biodiesel, everyone got excited, ‘If only petroleum would get to this much per barrel, then we’d be golden.’”

But instead biodiesel remains expensive compared with regular diesel and producers have idle capacity.

Nikola Davidson of the NW Biofuels Association says the main culprit is soaring crop prices.

Nikola Davidson: “The number one cost for making biodiesel is the feedstock – what you’re making it from.  And feedstock pricing has gone crazy over the past year.”

Davidson says most American biodiesel is refined from soybean oil.  The price of soy has doubled over the past two years.  The price of another ingredient, methanol, has tripled.

Biodiesel producers and users are holding a forum this coming Sunday to discuss the fuel’s price and its future.  The event at the Seattle Center Pavilion is free and open to the public.

Washington Governor Chris Gregoire is among the scheduled speakers.

Online:

NW Biodiesel Forum - May 4, 2008