Biodiesel Is a Win-Win for Rural Electric Cooperatives

From left, Goodnight and Hackman. (Photo: Matt Amick, Missouri Soybeans)

Electric cooperatives and agriculture share a deep connection, a partnership exemplified by the adoption of biodiesel.

Built on the foundation of farmers and rural America, Missouri’s electric cooperatives have powered their communities for nearly 90 years.

In 1935, President Franklin Roosevelt created the Rural Electrification Administration to provide loans for extending electricity to rural areas. Investor-owned utilities largely avoided these regions, considering them unprofitable due to their sparse populations. In response, farmer-owned cooperatives stepped in, borrowing funds to deliver power to rural communities and establishing the electric-cooperative model.

Through a shared foundation rooted in supporting farmers and rural communities, Boone Electric’s adoption of biodiesel honors the co-op’s agricultural heritage while driving sustainable energy solutions that benefit both farmers and local economies. Traditionally, Boone Electric’s board consisted entirely of farmers. Today, the member-owned co-op has a diverse group of voices from both within and outside agriculture, broadening perspectives.

A Mission Grounded in Service

Boone Electric’s mission is to provide reliable, affordable electricity to its members. The cooperative serves 32,000 meters across five counties.

“We’re fortunate enough to be in Boone County, around the city of Columbia, which has a denser population than other rural electric coops,” says Jimmy Goodnight, manager of operations at Boone Electric Cooperative. “It’s good for us and allows our systems to stay in great working order.”

While Boone Electric primarily relies on traditional energy sources, it has steadily incorporated renewable energy, including wind and solar. Building on this commitment to sustainability and supporting farmer-members, Boone Electric recently reintroduced biodiesel to its fleet.

“We’ve been using a biodiesel blend since the spring,” Goodnight says. “We tried it before, but this is a different time, different equipment, and a different fuel. Performance has been exactly what we expect from our fleet.”

Biodiesel, a renewable fuel made from soybeans, can be blended with diesel fuel and provides higher lubricity, more efficient combustion and requires no engine modifications. It offers significant environmental benefits by reducing greenhouse-gas emissions by up to 15 percent with B20 blends. Missouri has five biodiesel plants producing nearly 250 million gallons annually, creating jobs and supporting farmers and rural economies.

Boone’s Return to Renewable Fuel

Boone Electric first experimented with biodiesel 20 years ago, when the fuel was newly commercialized. At the time, inconsistent quality hindered its widespread adoption. Today, the biodiesel industry has matured, with improved quality and reliability prompting Boone Electric to make the switch.

Storeroom Assistant Doug Hackman, who oversees fuel orders for Boone Electric, echoes this sentiment.

“I knew biodiesel was already in a lot of diesel fuel, but I didn’t have prior experience with it,” Hackman says. “We haven’t had any issues, and there’s actually been a slight cost benefit.”

In 2024, Boone Electric partnered with MFA Oil, a strong biodiesel advocate, to use a B5 blend (5 percent biodiesel, 95 percent diesel). Next spring, it plans to transition to B11 and potentially increase to B20, expecting further performance improvements.

Missouri’s biodiesel industry generates over $2 billion annually for rural communities, creating jobs and directly benefiting soybean farmers.

Electric cooperatives and agriculture share a deep connection, working together to strengthen rural economies. This partnership is exemplified by the adoption of biodiesel, which directly supports local farmers and fosters economic growth.

“Using biodiesel is a natural fit,” Goodnight says. “It benefits both our operations and the communities we serve.”

Goodnight and Hackman note that rural electric co-ops likely power some of Missouri’s biodiesel plants as well as the farms supplying soybeans. They encourage other co-ops to consider biodiesel for their fleets.

“If it helps our members, whether it’s powering biodiesel plants or supporting the farmers who own us, it’s a win-win,” Goodnight says. “If we can also improve fleet performance with biodiesel blends, everyone benefits.”

For Boone Electric, combining renewable energy with a commitment to its farmer-members makes biodiesel a natural choice.