Homebuilder taps into biodiesel fuel market

Jeremy Pinegar started All American BioDiesel in April, just a few months after watching a TV show about how to make biodiesel at home.

A homebuilder by trade, Pinegar thought he could market the fuel to various subcontractors who rely heavily on diesel-powered equipment and vehicles. But he quickly realized the market for biodiesel fuel, which costs about 75 cents a gallon to make, spanned the entire country.

“I was very surprised to see the spectrum of people interested in making biodiesel,” Pinegar said. “It’s a definite reaction to gas prices and not having any say in the matter.”

Pinegar was initially interested in building a processor and selling the fuel, but a bevy of tax ramifications caused him to reconsider. Instead, he decided to build the processors individually and sell them on eBay.

All American BioDiesel offers two models: the Elite for $1,259, and the Economy for $1,100.

The processors convert waste oil into fuel through a chemical reaction that involves methanol and lye, Pinegar said. The process takes between three hours and four hours, and the ratio of oil to biodiesel fuel is 1-to-1.

See SBJ’s July 24 issue to learn more about All American BioDiesel.