Coastal Capital Acquisition Corp (CCAJ)

[chief]

The cost of biodiesel is higher than diesel fuel. Currently, there are seven producers of biodiesel in the United States. Pure biodiesel (100%) sells for about $1.50 to $2.00 per gallon before taxes. Fuel taxes will add approximately $0.50 per gallon. A mix of 20% biodiesel and 80% diesel will cost about 15? to 20? more per gallon over the cost of 100% diesel. Some suppliers are selling a 2% biodiesel mix at the same price as diesel, but this price will probably not continue into the future. A more realistic price would be about 1 to 2 cents more per gallon than diesel. These prices would be more attractive to people. The U.S. Department of Energy is working with the biodiesel industry to reduce the cost of biodiesel. A subsidy for the industry similar to that for other alternate fuels may be needed to promote the fuel. Improvements in processing along with the use of waste cooking oil as a raw material may help reduce costs.