Energy Insider - Alternative Fuels on KFYR-TV North Dakota's NBC News Leader

Energy Insider - Alternative Fuels |

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1/30/2009

Agriculture and Energy. What appears to be two separate, but important parts of North Dakota have more in common than we think.

Canola and Corn bring the two together as both have been used to create E-85 Ethanol and Biodiesel fuels.

When gas prices were four dollars a gallon the demand for the fuel was high.

Today as oil prices have dropped, so has the push for the new fuels.

"Crude oil is down right now in price so the margin to be able to process and make biodiesel is difficult," says Tom Borgen of Northern Canola Growers.

"It`s a little bit harder to push the E-85 when it`s closer to the same price because in general you`ll lose up to 20 percent of your gas mileage using E-85," says Valerie Kummer of the Clean Fuels in Vehicle Technology Program.

The state has about 29,000 flex fuel vehicles, but only 34 pumps.

Recently the price of E-85 has been above that of oil, but it`s the environmental value keeping people interested in the fuel.

"If one flex-fuel vehicle switches from gas to E-85 your saving four tons of Carbon Dioxide from going into the atmosphere," says Kummer.

Biodiesel also provides a cleaner fuel for farmers.

"Your not putting the emissions in the air and when you do burn it it smells like french fries when it burns so emissions are not a big deal" says Borgen.

With oil prices under two dollars Canola growers have shifted their focus from energy to health.

They feel the demand will resurface though, once prices rebound.

"In the future we need the energy. I twill come back in. I believe that crude is going to come back up so the margin will increase and more usage for biodiesel will come about" says Borgen.

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