Biodiesel

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Biodiesel is the fastest growing segment of the US renewable fuel industry, with an average annual growth rate in excess of 100 percent per year over the past five years. Biodiesel is typically 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 that 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.

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See www.biodiesel.org for further information on biodiesel.

 

Central Iowa Energy, LLC
3426 East 28th St N
Newton, IA 50208
Phone: 641-791-1010
cie@iowatelecom.net

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 Central Iowa Energy, LLC.