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Associated Press - May 1, 2009 8:34 AM ET
ST. PAUL, Minn. (AP) - A new requirement to jump-start the struggling biodiesel industry has taken effect in Minnesota.
Effective Friday, all diesel sold in the state must contain at least 5% of the alternative fuel, which is made mostly from soybean oil.
Minnesota was the first state to require biodiesel when a 2% mandate took effect in 2005. Now that's up to 5%. The mandate will rise to 20% by 2015.
The big profit margins the biodiesel industry enjoyed in earlier years have disappeared. The cost of soybean oil is too high and the sale price of biodiesel is too low.
Skepticism over how the fuel performs in cold weather is another hurdle facing the industry. Biodiesel backers say any diesel fuel, whether bio or petroleum, can gel if the precautions aren't taken.
Information from: Minnesota Public Radio News, http://www.mpr.org
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