Minn.’s 5% Biodiesel Mandate Takes Effect

Minnesota has implemented its requirement mandating that all diesel sold in the state contain at least 5% biodiesel, the Associated Press reported.

The move, effective May 1, was made to jump-start the state’s struggling biodiesel industry, and the alternate fuel is mostly made from soybean oil, AP said.

Minnesota was the first state to require biodiesel when a 2% mandate took effect in 2005. The current 5% mandate will rise to 20% by 2015, AP reported.

But large big profit margins that the biodiesel industry enjoyed in previous years has disappeared, as the cost of soybean oil has risen and the price of biodiesel has declined, AP said.

Truckers have also reported problems with clogged fuel lines in cold weather when using biodiesel.