Goodrich – Its fuzzy brown pods covered more than two million Michigan acres in 2001.
Now, thanks to a grant from the Michigan Soybean Checkoff program, Goodrich Schools will join nationally-known fleets in using soybeans to fuel its buses.
This year’s fuel grant may be one-of-a-kind; its announcement was followed by legislation this week that may provide tax credits to suppliers.
Biodiesel is essentially soybean oil that undergoes a further separation process.
The alternative fuel has successfully been mixed with diesel fuel for the past 10 years in 400 fleets, including NASA, the National Park Service, the U.S. Postal Service, DTE Energy, and the Michigan Department of Transportation.
It’s easy to use, biodegradable, gives slightly better mileage than straight diesel, and gives off less of the infamous diesel black-cloud emissions, says Kathy Maurer, financial director for the Michigan Soybean Association in Frankenmuth.
The Goodrich district was one of 12 in the state this week to be awarded the grant from Michigan Soybean Checkoff, which pays the school up to $5,000 to use biodiesel.
With gas prices topping $2 per gallon, some Michigan drivers are wondering why biodiesel’derived from Michigan’s second-largest crop and a renewable resource’isn’t more readily available.
Accepting alternative products doesn’t happen easily for many consumers, especially when users pay an extra cent for each percent of biodiesel blended with diesel fuel. For instance, biodiesel users will pay about 20 cents more per gallon for B20, a blend of 20 percent biodiesel and 80 percent diesel.
Not only do drivers and filling stations need to use the fuel, but new processing plants would need to be built.
Currently no in-state plants exist, Maurer said, although Detroit-based Ender LLC is eyeing breaking ground for a Michigan biodiesel processing plant in 2005.
Some biodiesel users are demonstrating long-term savings. The 3,400-student St. Johns School District in Clinton County demonstrated an overall savings of $1,800, said Maurer, with better mileage, longer use of engine parts, and less frequent oil changes.
Because school officials often hesitate to make the initial financial commitment, a school grant program was established this year by the soybean checkoff program.
The program, which captures a mandatory one-half percent of soybean sales from farmers, was established to promote soybean use via research efforts and incentives.
Through the checkoff’s grant program Goodrich receives approximately 10 cents per gallon, or half the added price of biodiesel, to offset the cost of B20.
Biodiesel was already being investigated at the recommendation of chief mechanic Dave Beckley, who researched the possibility of using the fuel, says Brian Walton, Goodrich Schools Special Services director.
‘We were looking at the long-term effects,? Walton said. ‘The grant helped defray the cost.?
School officials, who have documented a detailed history of each bus, will collect data on biodiesel’s performance, both for school records and to report to Michigan Soybean Checkoff.
Providing the fuel meets school expectations and becomes cost-effective, Goodrich will likely continue using biodiesel in its buses, regardless of whether the grant is discontinued, Walton said.
Legislation was passed Oct. 11 by the U.S. Senate to offer credits to biodiesel suppliers, which could translate to increased biodiesel use.
The bill, considered by soybean proponents to be a major victory, is expected to
be signed by President George W. Bush before next month’s election, said Maurer, and may be the needed incentive to boost soybean use.