The Rapid Growth ofBiodiesel in Illinois

Pre-2003 in Illinois

Ethanol Friendly Checkoff funded biodiesel R & D B20 Alternative Fuel Status Iraq – Energy Security

PA 93-0017 Signed 6/11/03

How It Works at ≤ 10%

Diesel Biodiesel (B2)

$2.45 Ret. Cost f/Diesel 2.40

Biodiesel ($3.30) .07

.24 Federal Tax .24

2.69 Subtotal 2.71

.17 6.25% IL Sales Tx 5% .14

.22 IL Motor Fuels Tx .22

$3. 08 Total $3.07

How It Works ≥ 11%

Diesel Biodiesel (B11) $2.45 Ret. Cost for Diesel $2.18

Biodiesel ($3.30) .36 .24 Federal Tax .24

2.69 Subtotal 2.78

.17 6.25% IL Sales Tx 0% .0 .22 IL Motor Fuels Tx .22 $3.08 Total $3.00

Estimated 2006 Usage in Illinois

1.5 billion gallon diesel market Goal: Capture 10% market for biodiesel (150

million gallons) In 2006, estimated usage of 63 million gallons

in Illinois 25% of 250 mg produced in U.S.

IL

63

95th General Assembly

SB649 – Senator John Sullivan Calls for labeling of pumps dispensing

biodiesel at blends 6-20% by July 1, 2008 Signed by Governor August 28, 2007

What’s Ahead

Challenges Terminal Infrastructure Building production capacity Quality of fuel Naysayers Harder to market than gasoline Feedstock sourcing ULSD

What’s Ahead

Opportunities Illinois a transportation hub Ethanol has paved the way Need for energy security widely acknowledge Positive energy balance Safe and easy to implement Replaces lubricity in ULSD

Thank You!

Sources of Information– www.ilsoy.org (Illinois Soybean Association)– www.biodiesel.org (National Biodiesel Board)

Rebecca A. Richardson, CAE

Director of Operations

RichardsonR@ilsoy.org

Mark Albertson, MBA

Director of Marketing

AlbertsonM@ilsoy.org