Morgan Milazzo

For veggie car diehards, grease beats gas this summer

Biodiesel prices lag behind fossil fuels, but is no longer abundant and free for green-energy aficianados

Standing next to a patch of half-cleared forest, 63-year-old Dan MacArthur is hundreds of miles away from Wall Street, but he's well ahead of the game this summer when it comes to beating high gas prices.

He drives a diesel car that runs on waste vegetable oil – a “grease car.”

In fact, MacArthur uses eight different biodiesel vehicles for his farm and construction business, ranging from his Volkswagen New Beetle to an assortment of trucks to the wood-splitter for his sugarhouse. He also has a biodiesel John Deere tractor and a backhoe.

While the rest of America braces for more sticker shock at the pump - forecasters expect prices to surge toward $4 per gallon in August - MacArthur received 250 gallons of biodiesel this month that he expects will last him through autumn. The price? A cool $3.28 per gallon.

Read More