It’s the stuff of dreams for some environmentalists: a fuel you can make from renewable sources as diverse as algae and used cooking oil. But for some automakers, bio-diesel is a nightmare so worrisome one major maker has pulled out of the Illinois market after lawmakers there approved incentives meant to boost demand for bio-diesel.
Mercedes-Benz isn’t the only maker worried that bio-diesel could have a downside far different from the green image proponents present. The German maker warns that if poorly blended, the fuel could gunk up its engines and worsen air quality. That led the maker to recently stop selling diesel models like the new E250 BlueTec diesel in the land of Lincoln.
Illinois lawmakers recently approved a plan to drop the state’s 6.25% sales tax on fuel with a bio-diesel content of at least 10%. Mercedes, which has been one of the strongest proponents of diesel fuel in the U.S. market, has set a limit of 5% biodiesel content, or B5. (more…)