Biodiesel is a renewable, biodegradable fuel manufactured from vegetable oils, animal fats, or recycled restaurant grease. More than half of the nation’s biodiesel production capacity is in the Midwest, led by states such as Iowa, Missouri, and Illinois. HB 1875 and SB 805 authorize tax credits for Missouri producers and retailers of biodiesel fuel, starting in January 2023 and expiring in December 2028.
- Biodiesel burns cleaner than petroleum-based diesel fuel and enhances oil independence and the local economy.
- A technical disadvantage of biodiesel blends is fuel freezing in cold weather.
- Missouri has the third-largest biodiesel production capacity in the nation, producing 253 million gallons annually at nine biodiesel plants.
- There are two fueling stations for biodiesel B20 and above in Missouri.
- The exact impact to the environment is yet to be determined, since changes to land use patterns may increase greenhouse gas emissions, pressure on water resources, and air or water pollution.
- Because of the resource competition between growing crops for consumption versus growing crops for alternative fuel sources, food costs may increase. However, it is difficult to determine the exact impact of biofuels on food prices.
This Note has been updated. You can access the previous version (published February 2021) here.