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JEFF ATKINS / NEWS SENTINEL

George Smith of Cortese Tree Specialists removes the nozzle from his truck after filling it with biodiesel at Regal Petroleum Co. on Proctor Street Wednesday afternoon.

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J. MILES CARY / NEWS SENTINEL

Jim Faulkner, left, and son David Faulkner of D&J Service Inc. install a new biodiesel pump at Regal Petroleum Co. on Proctor Street.


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GOES EXTRA MILE

Despite cost, environmentally friendly biodiesel attracts customers

By CARLY HARRINGTON, [email protected]
April 17, 2005

Sam Adams likes the idea that he can help make a difference in the environment and economy simply by switching his fuel.

The general manager of Cortese Tree Specialists is in the process of converting the company's five diesel trucks to biodiesel.

"It's been on my radar, and I've been looking forward to switching over to it. But it's only just now becoming readily available," Adams said.

At a time when gas prices are at record levels and the region has reached non-attainment status for its bad air, biodiesel is garnering local and national attention.

The cleaner-burning alternative fuel made from renewable resources like soybeans or animal fats is now available in Knox County, with the opening of its first public pump last week. Regal Petroleum Co. became the sixth fueling station in the area to sell the diesel blend, most commonly sold as B20 - 80 percent standard diesel fuel and 20 percent biodiesel.

Individual users and fleets from corporations and government organizations are among those who are jumping on the bandwagon.

The amount of biodiesel used nationally increased from 500,000 gallons in 1999 to an estimated 25 million gallons in 2003, according to the National Biodiesel Board.

In East Tennessee, biodiesel consumption was practically nonexistent prior to the area's first B20 pump last April.

By the end of 2004, 20 fleets consumed 90,000 gallons of pure biodiesel known as B100, or the equivalent of 500,000 gallons of blends, said Jonathan Overly, executive director of the East Tennessee Clean Fuels Coalition.

"I would not be surprised if it goes 10-fold this year," Overly said. "We're going to see excellent results. I have no doubt."

The right thing to do McNutt Oil Co. Vice President Pete Gale had never heard of biodiesel until a Maryville dump truck operator approached him about it almost two years ago.

He liked the fact that it could help American farmers and reduce the country's dependency on foreign oil.

"It seemed like such a good idea. We were all excited about trying it," Gale said.

Gale helped spearhead the opening of East Tennessee's first biodiesel pumps at three Mr. Gas Texaco public fuel stations in Alcoa, Loudon and Newport. The initial response from consumers was slow, but over time, Gale said the word on biodiesel spread.

"It has really grown very quickly. It seems to be everywhere," he said.

Maryville-based McNutt Oil also supplies biodiesel to aluminum manufacturer Alcoa Inc. and Knoxville Area Transit, which have switched entire fleets to B20.

The cities of Chattanooga, Gatlinburg, Maryville, Sevierville and Alcoa are also using biodiesel, while Knoxville and Knox County are considering starting a pilot project.

Like Gale, some point to the nation's dependency on foreign oil as enough reason to make the switch. Others tout the environmental benefits of biodiesel - from lower emissions to fumes that smell less offensive.

But most agree it's simply the right thing to do given the area's recent non-attainment status by the U.S. Environmental Protection Agency.

Knox and six surrounding counties were given the designation last year because they weren't in compliance with federal ozone requirements.

As a result, Scott Smith, president of Knoxville-based Regal Petroleum Co., said he believes "the market is going to demand it."

"I think it's going to eventually be a part of the everyday product mix," Smith said.

Regal Petroleum Co. spent thousands of dollars to become the first commercial fueling station in Knox County to begin publicly selling B20 at its 1206 Proctor St. location.

Other biodiesel pumps are in Blount, Cocke, Hamilton and Loudon counties.

It wasn't until biodiesel became publicly available that 71-year-old Blount County resident Dan Pursglove got interested. He now uses it in his 2002 Volkswagen Jetta.

"The more I read about it, the more I liked it," Pursglove said. "Unfortunately, until more people start asking for it, there aren't enough places to buy it."

Overly said his East Tennessee Clean Fuels Coalition is in talks with Pilot Corp. and three other petroleum companies in Knoxville to possibly open biodiesel stations in the area.

"There's definitely a lot of room for growth in East Tennessee, and we're working in that direction," Overly said.

Making the switch Biodiesel typically costs about 20 cents to 25 cents a gallon higher than standard diesel. As of Thursday, diesel was selling for $2.22 a gallon in Knoxville, according to the AAA Fuel Gauge Report.

But a federal tax credit that went into effect at the first of the year has helped offset some of the cost and boost demand.

With government incentives comparable to those provided for ethanol, biodiesel sales could reach about 2 billion gallons per year, or replace about 8 percent of conventional highway diesel fuel consumption, according to the American Biofuels Association.

Minnesota became the first state to mandate nearly all diesel fuel sold contain a small percentage of biodiesel. Other states, like Michigan, are considering similar initiatives.

"It's only a matter of time before we get there in Tennessee," said Mark Downing, who has been using biodiesel in his 1984 Volvo for almost two years, pumping it out of a 55-gallon drum before it became publicly available.

Downing, 49, owner of TransTech Volvo/BMW in Oak Ridge, said consumers shouldn't worry about higher costs. Biodiesel makes vehicles run better, extending the life of the car. Plus, the alternative fuel is more economical, getting more miles per gallon.

Environmental Engineer Chris Moore said Alcoa Inc. just wants to be a good corporate citizen. The Blount County company has been looking for ways "to minimize the environmental footprint."

"We wanted to make tangible changes at our facilities to help reduce emissions," Moore said.

Alcoa switched its fleet of 550-plus vehicles last November from conventional diesel to biodiesel.

The transition, however, ran into problems as cold weather set in and tended to clog the vehicles' fuel filters because of the presence of animal fats in the fuel.

The company halted use of the alternative fuel but resumed using it last week, Moore said.

"We feel like it's our responsibility to do all we can within reason to help," Moore said.

Knoxville Area Transit is the biggest user of biodiesel in East Tennessee, using in excess of 11,000 gallons of B100, or 55,000 gallons of blends a month for its more than 80 diesel buses, said Barry Greenberg, director of maintenance for KAT.

The public transit operator has plans to switch from B20 to B25 in the next 30 to 60 days and to B40 and B50 by the end of summer. Ninety-three percent of fuel consumed by KAT is alternative fuel. Greenberg is aiming to increase that by 5 percent by the end of the year.

Last October, KAT was named the top transit system in the nation by the American Public Transportation Association in part because of its clean fuels program.

"We're going to do everything within our power to reduce emissions and make better the environment for our citizens," Greenberg said. "Nobody is going to be ahead of us."

Business writer Carly Harrington may be reached at 865-342-6317.

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