Alternative Fuels Cost Competitive for Americans

The Energy Management Institute's latest Alternative Fuels Index price survey indicates that alternative transportation fuel is becoming cost-competitive to traditional gasoline and diesel fuels. While the U.S. consumes oil at record pace, proponents of DOE-classified alternative fuels are working on increasing their efficiency. With the price of crude oil, gasoline, and heating oil at record highs, consumers are beginning to explore their alternatives. In addition, national security issues and the threat of war are causing many to focus on a domestic source for oil, rather than foreign oil. Even numerous school districts around the state are using to biodiesel, including Luverne Public Schools, Tracy Public Schools and Sibley East School District.

The cost of a gallon of biodiesel (B100) is currently at about $2.07 per gallon. While the per-gallon cost of biodiesel is higher than diesel fuel ($1.20), consider that the biodiesel price is based on a meager national production of about 20 million American-made gallons. Diesel prices are based on billions of gallons of imported foreign oil. Applying the same economies of scale to domestic alternative fuel production would reduce prices dramatically. In Minnesota, the wholesale cost for biodiesel in Minnesota is around $1.75, according to Kelly Strebig at the U of M Center for Diesel Research and West Central Soy in Ralston, Iowa.

"We need to begin a transition to the freedom of alternative fuels even if it costs us more in the short-run," said J. Scott Susich, Alternative Fuels Index editor. "Either that, or we remain hostage to a foreign-based oil economy and the turmoil associated with guaranteeing its supply."

The Alternative Fuels Index is published by the New York based Energy Management Institute (EMI). The EMI is an education, publishing and consulting company that provides training and information services to energy users and suppliers.

For more information go to their Web site at www.energyinstitution.org or the Alternative Fuels Index Web site at www.altfuelsindex.com.