Biodiesel demand for Vermont home heating oil up more than 100 percent in 2007

In Vermont, more than half of state biodiesel consumption is now accounted for by blended home heating oil. In 2006, home heating oil accounted for 40 percent of biodiesel consumption, and more than 10 percent of heating oil dealers are selling biodiesel blends. Statewide biodiesel consumption has increased from 9,000 gallons in 2003 to a projected 750,000 gallons in 2007. Companies are typically offering B2 and B5 biodiesel blends.

In New York, apartment buildings and residents arealso  turning to biodiesel for heating fuel. An article in the Christian Science Monitor projects that thousands of New York buildings will convert this winter, and that buildings in Boston and Philadelphia will begin to switch as well. The article estimates that New York burns 500 million gallons of fuel oil per year for heating.

Increases in soybean prices have hit biodiesel production, creating uncertainty over the fuel savings that might be achieved with the switch.

The Vermont biofuels industry was in the news last month when it was revealed that Mascoma has received approval from the Vermont Economic Progress Council for $1.7 million in job creation incentives if it relocates to the state. Mascoma, a cellulosic ethanol research and development firm, has outgrown its current facilities in Cambridge, MA and Lebanon, NH.

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