If biodiesel were cheaper than regular diesel, your two business strategies would be to raise the price of biodiesel to just over regular diesel and capitalize on the people who want to save the world, or you could set the price at just under diesel, and capitalize on the people who want to save the world and everyone else. Even with the lower margin you'd make it all back and more on volume.

Trust me, biodiesel producers are working to lower costs, its only in their best interest.

Europe may be at about 40% diesel now, but over 50% of the cars sold there in 2004 were diesel, and 56% of Mercedes sold there were diesel. Change is slow because people aren't usually going to throw away a 'perfectly good' gas car, even if diesel is a better choice for them, but when choosing a new one, they are more likely to choose diesel. The change is happening now.

The cost of commodities always increases along with inflation, but as commodities become more scarce, or demand exceeds supply, the price change is going to be more than just following inflation. Every country has certain energy costs, and they get a certain intensity out of it (energy intensity being the amount of energy required to generate 1$ of wealth). However, energy costs are increasing faster than energy intensity is increasing. Hence, more money is being spent to generate the same amount of product. That is not sustainable, from an economic standpoint.

Eventually petroleum will not be feasable, and other sources will be looked to, biodiesel is probably one of them. There are some people who feel that now is the time to look to those things, as opposed to later, when conversion could be more expensive than it is now.

Our fuel prices are going up, and will probably continue to do so, but we still aren't at all time highs. However, once we hit 3$ a gallon (2005 dollars) that would be an all time high price record (adjusted dollars).

Everytime the cost goes up, people gripe, and then it comes down and they forget about it, then back up and they gripe, and back down and they forget about it. But the trend has been generally upward for a while, and there is nothing to suggest it won't be generally upward for years to come.

peace,
sam

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"That f***in' biodiesel is makin' me hungry."

1982 300TD Astral Silver w/ 250k (BIO BNZ)
2001 Aprilia SR50 Corsa Red w/ 5.5k (>100 MPG)