There is a growing niche market for pure forms of high quality biodiesel as a specialty. However, the real market for biodiesel is currently in the diesel blending process. The current demand for biodiesel as an additive to industrial fuel supply is already in the hundreds of millions of gallons and growing rapidly. Biodiesel is considered a qualified Alternative Fuel by both the US-EPA and the US-DOE and a fuel additive under Section 211(b) of the Clean Air Act. As such it may be used to meet the EPACT vehicle standards imposed on federal, state and agency fleets. Federal Mandate 13149 requires a 20% reduction in fossil fuel use by federal fleets. Biodiesel represents the easiest method for fleets to meet this mandate. Therefore, there is a high demand for biodiesel as an additive, but the overall market remains limited due to biodiesel’s high cost relative to petroleum diesel. Distributed Biosystems’s development of technology enabling the use of algae oil as a feasible, affordable, sustainable feedstock is a true solution to current biodiesel market limitations.

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