Facts About Biodiesel

The average annual growth rate of Biodiesel is in excess of 100 percent per year over the past five years, making it the fastest growing segment of the US renewable fuel industry. Typically, biodiesel is produced by a reaction of a vegetable oil or animal fat with an alcohol (methanol or ethanol), in the presence of a catalyst, through a chemical process called transesterification. Biodiesel is an environmentally friendly product and mixes easily with diesel fuel at rates between (1%, B1 and 100%, B100)- 1 percent, known as B1, and 100% known as B100.

The Low Sulfur Diesel Mandate requires the reduction of sulfur in diesel fuel from 500 parts per million (ppm) to 15 ppm by October of 2006 for on-road diesel and 2008 for off-road diesel. This reduction greatly decreases the lubricity of diesel fuel.

Biodiesel significantly improves the lubricity of petroleum diesel fuel at levels as low as 2 percent, B2, and therefore is a preferred substitute for the sulfur.

The Renewable Fuel Standard legislates the annual use of at least 7.5 billion gallons of renewable fuels in the US by 2012. There are currently 4 billion gallons of renewable fuels used annually in the US and biodiesel will fill a portion of the increase.

Biodiesel BenefitS

Contains no sulfur
Increases lubricity
Positive energy balance
Domestic, renewable energy product
Source: EPA

Biodiesel Performance

Increased lubricity extends engine life
Better engine performance versus other alternative fuels
No engine modifications necessary to burn biodiesel
No specialized service or training needed for engines
Approved by major motor manufacturers
Source: EPA, USDA 

Biodiesel Reduces Emissions
Biodiesel meets EPA Health Effects Testing Under the Clean Air Act

Carbon monoxide
   48 percent lower than regular diesel
Particulate matter
   47 percent lower than regular diesel
Hydrocarbons
   67 percent lower than regular diesel

Biodiesel Economically Makes Sense

Increases U.S. energy independence
Creates additional markets for agriculture production
Promotes economic development
Positive energy balance

Amount of energy produced for each unit of energy consumed:
   Soy biodiesel 3.2 units to 1 unit
   Ethanol 1.67 units to 1 unit

Biodiesel Fills Increasing Energy Needs


Annual U.S. demand for diesel is 55 billion gallons with anticipated
annual market growth of 5 percent.
Biodiesel sales in 2004 were 30 million gallons.

Biodiesel Uses

Agriculture
Construction
Government
Home heating
Maritime
Mass transit
Military
Trucking

This communication shall not constitute an offer to sell, or the solicitation of an offer to buy,
these securities. This offering is open only to residents of IOWA. An offer is made by the
prospectus only, a copy of which may be obtained from Iowa Renewable Energy, LLC.
contact@IowaRenewableEnergy.com

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