Here in Missouri we are getting closer every day to having an accessible fuel alternative that utilizes homegrown soybeans. The addition of a mostly farmer-owned biodiesel plant to ADM's soybean crushing facility in Mexico will not only ensure that Missouri farmers have Missouri soybeans in their biodiesel, but will establish the state as a major producer of the alternative fuel.

About 370 Missouri agricultural producers, along with other entities, have joined forces to initiate the 30-million-gallon central Missouri plant, and the Missouri Soybean Association is coordinating legal, financial and government arrangements. Groundbreaking ceremonies were Oct. 24, and construction is expected to begin this winter. First production is planned for in fall or winter of 2006.

While the current high price of petroleum diesel fuel is a tremendous incentive to get the plant up and running as soon as possible, making an adequate supply of biodiesel available in our state will be beneficial to Missouri producers in several ways. For example, in order to turn out 30 million gallons annually, the plant will require more than 20 million bushels of soybeans, and after biodiesel is extracted, value-added products such as feedstock for animal feeds and glycerin will be available for marketing.

The plant will supply the majority of product needed for blending here in the Midwest. Currently, only a very small portion of biodiesel made from Missouri soybeans is available locally. With an estimated 70 million gallons of diesel used annually by Missouri farmers, in addition to the more than 35 billion gallons used nationwide in over-the-road fleets,

it is understandable that much of the biodiesel produced in Missouri would find its way to other markets. Until now, due to government mandates for use of biodiesel in states like Minnesota, most plant construction has been in the northern plains.

Although biodiesel has been around since the early 90s, increased production, improved fuel standards and better distribution capabilities are just now making people more aware of the fuel's commercial advantages. An estimated 40 percent of Missouri farmers now use some blend of biodiesel.

In its raw form, biodiesel is referred to as B100. As it is blended with petroleum diesel fuel, it is referred to as a blend, based on the percentage of biodiesel: B2 is 98 percent petroleum diesel and 2 percent biodiesel, B5 is 95 percent petroleum diesel, 5 percent biodiesel, etc. Since most blends used currently are only B2, there is considerable room for expansion of the biodiesel market. Most engine manufacturers recognize a blend of up to B5 as an acceptable motor fuel, and some manufacturers factory-fill units with that blend. In many applications it is acceptable to blend up to B20.

As an alternative energy choice, biodiesel has many advantages:

The positive energy balance is important. For every unit of fossil energy it takes to make biodiesel, 3.2 units of energy are gained, taking into account planting, harvesting, transportation and production.

Its great lubricity characteristics could become increasingly important as the fuel industry moves to EPA-required, ultra-low sulfur fuel next year.

Reduced emissions of compounds such as unburned hydrocarbons, carbon monoxide, particulate matter (soot), sulfates and smog-creating ozone will be important in cities, government fleets and school buses.

This renewable energy produced from the oil of domestically grown soybeans will reduce the U.S. need for foreign oil.

Environmentally friendly biodiesel in the B100 form is biodegradable and non toxic.

Missouri does not have mandates for the general use of biodiesel, but state and federal tax benefits provide incentives for both producers and users. The new biodiesel plant will put Missourians in an excellent position to capitalize on these incentives. In short, having a readily accessible, dependable source of biodiesel will benefit growers, producers and consumers and will motivate farmers to continue to invest in the future of Missouri agriculture.

Melvin Schebaum is vice president for supply and distribution at MFA Oil.