What connects 40,000 gallons of vegetable oil, an entrepreneurial bioenergy firm, and the world's largest chemical producer? The search for viable sources of alternative energy.

On Monday World Energy announced an exclusive production agreement with Dow Haltermann Custom Processing they say will further enhance World Energy's biodiesel production and distribution capabilities, taking another step toward helping the US reduce its dependency on foreign oil.

DHCP will produce biodiesel at its Houston location exclusively for World Energy in North America. DHCP will source the raw materials and produce biodiesel fuel to World Energy's exacting specifications under the agreement.

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"Manufacturing biodiesel for World Energy is yet another example of how Dow is using its capabilities to reduce greenhouse gas emissions and improve energy efficiency through a variety of means, including the advancement of alternative forms of energy, ranging from fuel cell technology to renewable feedstocks," said Simon Upfill-Brown, general manager of Dow Haltermann Custom Processing.

"We are, therefore, pleased to leverage the operations expertise of our custom processing division to provide World Energy with the world-class production necessary to enable the continued growth of the biodiesel market."

The use of biodiesel reduces carbon monoxide emissions by 78% compared to petroleum diesel, according to a 1998 biodiesel lifecycle study jointly sponsored by the US Department of Energy and USDA.

Many public and private organizations are currently using World Energy biodiesel, including all branches of the U.S. military, Harvard University, utility fleets and many school bus systems around the country.

At a B20 blend in diesel engines (20% biodiesel and 80% petroleum diesel - the most common), these groups and their communities can see a 16% reduction in carbon dioxide emissions; a 21% reduction in unburned hydrocarbons; an 11% reduction in carbon monoxide; and a 10% reduction in particulate matter.

"We are excited to be teamed with the leader in the U.S. biodiesel market," said Upfill-Brown. "Producing biodiesel fits our existing asset base, as well as Dow's commitment to be part of the solution for climate change."

World Energy bills itself as the United States' premier producer and distributor of biodiesel. Dow Haltermann Custom Processing, a Dow business unit comprised of operations within The Dow Chemical Company and Johann Haltermann, Ltd., is a worldwide contract chemical manufacturing service.