Is Biodiesel Production in New Hampshire's Future?

listen:

New Castle State Representative David Borden chairs The New Hampshire Biodiesel Commission.
It is comprised of representatives from state agencies, oil industry producers, distributors and dealers, along with scientists and environmentalists.
Borden says that the goal of the panel is to spur the use of bio-diesel in the state.
(Borden) :20
“Just now, they're already using bio-diesel in one D.O.T. Truck, Department of Transportation truck, but if they start using it in more vehicles, and if they start using it in school vehicles and state buildings for heating, that will begin turning the tide in favor of bio-diesel”
Borden's commission is working on several issues regarding bio-diesel.
The fuels are produced by mixing vegetable oil from crops like soy or canola with standard diesel.
One question the commission is trying to answer is how much demand is there.
Becky Ohler, with the State Department of Environmental Services says that the key to that is successful marketing to build up demand.
(Ohler) :12
“What we've seen in the market so far is that as we try to work with communities and individuals to promote the use of bio-diesel that we then have suppliers in those areas that come in and offer it to customers.
While much of the attention on bio-diesel has been as fuel for cars and trucks, it can also be used as an alternative to straight heating oil.
But Joanne Lamprey, a Seacoast area heating oil dealer says that demand may be limited.
She admits some customers will buy the biodiesel mix because it pollutes less.
Others, she says, won't, because it’s more expensive..
(Lamprey) :12
“If they're not green thinking, then they're going to look at the cost as price prohibitive. I'm not sure what ours is, but because we're transporting from Boston, it's more than three cents.”
Most distributors at the meeting agreed that the new fuel would cost about 3 cents a gallon more than straight heating oil.
Lamprey says another customer concern is whether their service contracts furnace will cover them if they use bio-diesel..
Lamprey says that not all furnaces are certified for the new fuel yet.
Another question facing the commission is can the state convince farmers to grow the necessary crops.
While Dick Uncles of the State Agriculture Department says there are some 50 thousand acres in the state that could be used, many farmers don't see the economic advantage.
(Uncles) :08
“Why would a dairy farmer change over to a lower value producing crop? The incentive is not obvious.”
One entrepreneur who does sees the value in locally produced bio-diesel is Tim Hickey, of Atlantic Bio-diesel.
The company is in the process of building a production plant in Salem.
And the current plan, says Hickey, is to buy the feedstock for production from the Midwest.
(Hickey) :07
“We are interested in getting our feedstock requirements from our local agricultural community in the state. That would be wonderful.”
Hickey says there’s simply not enough of it being produced locally.
Recently the State Office of Energy and Planning reported that some $60 million dollars now sent out of state for oil could stay in New Hampshire's economy, if bio-diesel were produced locally.
The New Hampshire Bio-diesel Commission has another meeting set for next month, in Concord.
It is scheduled to present its findings to Lawmakers on November First.
One of the possible conclusions, according to the chairman, is a bill to require the use of bio-diesel in state government vehicles or buildings.
For NHPR News, this is Roger Wood.