There has been considerable interest focused on the further development and expansion of a domestic bio-fuels industry. While most early attention from the commercial sector focused on ethanol, interest is now growing in the area of biodiesel production. Reasons for growing interest in biodiesel include its potential for reducing noxious emissions, potential contributions to rural economic development, as an additional demand center for agricultural commodities, and as a way to reduce reliance on foreign oil. Despite interest over the past decade or so, however, experience with biodiesel production in the US is limited. According to the Energy Information Administration, participants in the federal Bioenergy program produced only 18.6 million gallons of biodiesel in fiscal 2003. This compares with the production of almost 2.5 billion gallons of ethanol.


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