Billings Gazette Guest Opinion: House GOP turns away biodiesel opportunity

Three years ago, several Montana farmers and I started a company called Peaks and Prairies to manufacture biobased oil and lubricants. Using Montana-grown oilseed crops, we are developing biobased motor oils, fuels, and other products.

We're excited by the growing market for our products. The forest industry is interested in our chain oil because it means the end of petroleum-based oil spills in our forests and petroleum residue on cut wood. Mining and marine industries see huge benefits with bio-based lubes because of improved engine performance from higher lubricity, higher fuel mileage, more power and a product that is safe for the environment.

Rural business benefits

I farm near Havre, and when I drive along the immense grain fields that stretch from Havre to Great Falls and beyond, I'm struck by the enormous possibilities of this emerging industry. Tires, belts, rubber products - whatever is made from petroleum can be made from Montana-grown oilseeds. The oilseed-crushing process results in a high quality animal feed byproduct - a real benefit for Montana's ranching community. And, bio-oils and fuels are biodegradable and environmentally friendly.

Despite these benefits, Montana's biofuels industry faces plenty of hurdles. It takes tremendous capital to compete with large, established companies like Cargill, Bunge and ADM. The equipment we need to manufacture biobased fuels efficiently and competitively is expensive: At Peaks and Prairies, we estimate that we will invest between $7 million and $8 million in the equipment for a processing facility.

Every startup industry faces risks. No matter how good your product, you've got to get off of the ground floor to reach the economies of scale it takes to be profitable.

One thing that would go a long way toward nudging Montana's fledgling biofuels industry along is a steady demand for our product. Knowing we had a reliable buyer out there for our fuel or lubricants would make a new plant well worth the investment.

Brueggeman's biodiesel bill

Montana Sen. John Brueggeman, a Republican from Polson, proposed legislation that would make use of a market mechanism to create a steady demand for biodiesel fuel. Senate Bill 432 would add a small percentage of clean-burning biodiesel to diesel fuel sold at Montana gas stations, starting with just 2 percent and increasing to 5 percent based on Montana's oilseed production capacity.

Senate Bill 432 would be a win-win for Montana. Adding a small percentage of biodiesel results in significantly cleaner-burning fuel, meaning cleaner air for all Montanans. Biodiesel contains natural lubricants that are good for diesel engines - petroleum companies have to add sulfur to their fuel to match the lubricating qualities of biodiesel. And, SB 432 would create a steady, reliable market for biodiesel fuel - just the thing we need to get this industry off of the ground.

Unfortunately, even though the Montana Senate passed SB432 with a vote of 35 to 15, and even though Gov. Brian Schweitzer said he'd sign the bill, Republicans on the House Transportation Committee killed it.

There are those who say Montana lawmakers have no role in encouraging Montana's biofuels industry. Republican members of the House Transportation Committee appear to hold this view. I couldn't disagree more. I think SB432 will help bring out the best in Montanans, inspiring a generation of entrepreneurs to rise to the challenge of providing clean-burning, home grown biodiesel fuel.

I hope you'll join me in urging these GOP members of the House Transportation Committee to reconsider their position on SB432: Elsie Arntzen of Billings, Jon Sonju of Kalispell, Bill Nooney of Missoula, Gary MacLaren of Victor, Edward Hilbert of Glendive and Bruce Malcolm of Emigrant.

Montana has too much to gain, and nothing to lose, by encouraging production of clean-burning, homegrown biodiesel fuel.

Jon Stoner, past president of the Montana Grain Growers Association, farms near Havre.