Engineering Innovation: Leading the Biodiesel Industry

By Joli A. Hohenstein

What impact does biodiesel have, and how is Illinois leading the charge on biodiesel policy?

Illinois—and your Illinois Soybean Association (ISA)—are national leaders in the biodiesel space, having taken proactive steps to promote the use of biodiesel and reduce greenhouse gas emissions through sales of blended biodiesel.

Since the inception of Illinois’ tax incentive on B11 biodiesel, the state has seen a notable increase in consumption. And even better, the state’s legislation includes a gradual increase in blending requirements over time. That means Illinois diesel markets can expect a change in 2024.

As of now, consumers in Illinois benefit from a 6.25 percent sales tax exemption for blends containing more than 10 percent biodiesel, with B11 serving as the threshold blend. Another recent change, the B20 law, which started on April 1, raised the blend requirement eligible for sales tax exemption to B14 and will increase for two more years.

It looks like this:

On April 1, 2024: Biodiesel or renewable diesel blends were raised from B11 to B14.

On April 1, 2025, the blend will increase from B14 to B17, and on April 1, 2026, the blend will increase from B17 to B20.

By increasing the required blend, the state aims to further support the biodiesel adoption in transportation to reduce emissions and promote rural economies.

Biodiesel use is on the rise, and Illinois farmers are growing along with it: studies have shown that it brings back at least an extra $1 for every bushel you grow, i n fact. Read on for more surprising biodiesel benefits.

What are the advantages of using biodiesel?

Robert Shaffer, Illinois farmer and Vice-Chair, Clean Fuels Alliance America: “When they got rid of ultra sulfur diesel, we lost the lubricity for our engines. Biodiesel gives us both the performance and the lubricity we need. I’m using it on a 1967 tractor with 4,500 hours, a 1968 tractor with 5,500 hours, a 2016 combine, a 2021 loader tractor and a 2019 front wheel assist. I’m running over 55 years of equipment— and I believe I’ve been able to run it that long because of biodiesel and the lubricity it provides.”

Why switch to biodiesel?

Jim Martin, Illinois farmer and ISA Director: “The sales tax exemption is so nice. The performance is good. The price is competitive with petroleum-based diesel.”

Shaffer: “Today, my member company cleans the tanks when anyone switches to biodiesel. What biodiesel actually does is cleans the crud off the insides of the tanks, so cleaning before you switch keeps from clogging filters when the biodiesel cleans that tank. It makes switching easy and seamless.”

David Kubik, ISA Biofuels & Trade Policy Manager: “If you go buy fuel for your tractor or semi-trucks, you save about 25 cents a gallon using a 14 percent biodiesel blend. That adds up.”

How hard is it to switch to biodiesel?

Shaffer: “It’s a drop-in. I use it on everything—tractors, combines, hauling to town. And it’s so easy to get in Illinois.”

Martin: “It’s very easy. There is no extra paperwork or qualifications. It’s just a matter of what fuel your supplier blends. In fact, when I first started using biodiesel, I was using an independent supplier who has since retired. I’ve since recruited him to join ISA and help spread the word about biodiesel.”

Do you have any issues using biodiesel?

Martin: “None at all. Biodiesel acts as a cleaner to an engine, which means it might flush out some of the buildup on the inside of the engine—that’s great for engine performance. Back in the day, people who used some of the first blends saw that, but now we know more about filter changes and engine maintenance.”

Shaffer: “Today’s biodiesel isn’t your grandfather’s biodiesel. Originally, it was the wild west, and we didn’t have the BQ-9000 mandate that sets standards for biodiesel production. I haven’t heard of problems in at least five years.”

How many dollars does the biodiesel industry add to my farm?

Shaffer: “Let’s say you get 50 bu./acre yield. You get $50 per acre ROI on your farm. Biodiesel can be created from used soybean oil, which comes from soybeans you grow; from animal fats (and your soybeans fed those animals); and from used corn oil, which you're growing, too. For Illinois farmers, biodiesel is a win-win. For every bushel, $1 is derived from biodiesel.”

How is Illinois setting the standard in biodiesel?

Martin: “I look at biodiesel as one of the flagship products of ISA. We have really made a difference and created so many efforts for promotion and advocacy. The B20 Club in partnership with the American Lung Association has been successful, and we worked with the Chicago Park District to promote a healthier environment and lower CO2 emissions. But the real game-changer is with the sales tax exemption, which ISA has been able to help get increased to B20. It’s a win for businesses and farmers.”

Kubik: “ISA has worked to advance the use of soybean oil in biodiesel and worked for ways to cut the cost of its use. We’re saving you money as you produce your crop and making markets for those crops.”

Shaffer: “This is the easiest, best ROI of any checkoff program. As a farmer, I can see that ISA and biodiesel are working for me.”

What’s next in biodiesel?

Shaffer: “At the Association of Equipment Manufacturers Conference, I asked, and they said if a farmer grows it, they’re for it. Cummins is working up to B50. ADM and PepsiCo, after adding Optimus Technologies to their semis, are running B100 in select fleet vehicles. Anyone can use biodiesel.”