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Illinois Shipper Switches Truck Fleet to Soy-Based Biodiesel

Posted on: Friday, 26 August 2005, 12:00 CDT

Aug. 25--Soy biodiesel is catching on as a way to save money on costs among some companies, including an Illinois trucking firm that has switched its fleet to the blended fuel.

Norrenberns Truck Service in Nashville, Ill., is among a growing number of companies moving to biodiesel, according to the soy industry.

Norrenberns, also known as NOTS, switched to biodiesel in February, giving it a slight savings on fuel costs, said Kevin J. Brink, vice president of business development for the company, located 50 miles east of St. Louis. A combination of Illinois and federal tax incentives provide the savings, he said.

"We have passed those (savings) on to our customers and that has helped us be competitive with Missouri and Indiana," Brink said.

"It's good for the economy, it's good for the environment, it's good for the farmers and, hopefully, it will help us depend less on foreign oil," Brink said Wednesday before a tour of the company by U.S. Rep. John Shimkus, R-Collinsville.

NOTS will spend an estimated $6.5 million on 2.5 million gallons of fuel this year, more than double what it spent in 2002, Brink said. The company was looking for ways to hold the line of fuel costs beyond adding a surcharge to its fees.

The popularity of soy diesel, especially among trucking companies, is growing rapidly, said Rebecca Richardson, director of operations for the Illinois Soybean Association. NOTS is among the state's biggest users of soy diesel, she said.

"Demand for biodiesel, whether from soybean oil or other feed stock sources, has grown tremendously in Illinois," Richardson said. "It's been a great success story in Illinois."

The federal tax break that took effect for biodiesel on Jan. 1 helped drive demand for the fuel, officials said, as did Illinois' elimination of the fuel tax on biodiesel containing 11 percent soy.

"Illinois is the hot state for this product," said Chuck Knapp, vice president of Knapp Oil Co. of Xenia, Ill.

Only one company, Stepan Co. of Joliet, produces soy diesel in Illinois, Richardson said. The company produced 6 million gallons last year and is planning to double production, Richardson said.

Other companies are considering building biodiesel refineries in Galesburg in northwestern Illinois and Carmi in southeastern Illinois, she said.

At Wednesday's prices, a company could save 11 cents a gallon on biodiesel compared to diesel fuel, Knapp said.

NOTS is considering using biodiesel at its depot in Camdenton, Mo., near the Lake of the Ozarks. But NOTS would qualify only for the federal tax credit there because Missouri offers no biodiesel credit, Brink said.

Biodiesel required no additional maintenance of NOTS' fleet except for changing fuel filters more often, Brink said.

"We just hope that the American people will write to their congressmen and encourage automakers and engine manufacturers to spend the money for technology and make sure the benefits are out there and passed on to consumers," Brink said.

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Source: St. Louis Post-Dispatch

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