Posted Sept. 14, 2010
 
 Ireland-based Ceimici Novel Ltd. recently announced it has developed an innovative catalyst for use in new and existing biodiesel plants. According to the company, use of its unique catalyst can reduce production costs, increase profitability and results in 'greener' biodiesel production. 
 
 The catalytic material SCRO-80, which has been titled "Smart Catalyst," facilitates the transesterification process in minutes rather than hours, said Ben Engelen, Ceimici Novel's market developer. While Engelen was unable to disclose any information regarding the chemical structure or composition of SCRO-80, he did note that that the catalytic material "will not suffer from obsolescence."
 

 Unlike traditional biodiesel diesel catalysts that are consumed during the biodiesel production process, SCRO-80 can be recovered and reused. 
 
 "The transesterification is realized in a single stage and allows a full continuous operation," said Engelen. "Smart Catalyst performs the transesterification reaction as a true catalyst should-without being consumed. It is heterogeneous, which allows for easy recycling. It has high activity, which allows for the reaction to be taken to completion in a single reactor and the glycerol produced is a 98 percent grade. Good glycerol and a recycled catalyst provide about 80 percent of the benefits in switching to Smart Catalyst."
 
 According to Engelen, SCRO-80 can be employed in both new and existing biodiesel plants. Most existing plants are able to use the equipment that is already in place, he said. 
 
 "Without any problem, the smart catalyst can be added to the reactor as a direct replacement for the caustic catalyst," Engelen continued. "This requires no investment…The next stage would be to install intensive inline mixing equipment." 
 
 This is projected to cost approximately $70,000 for a 10 MMgy facility. "The loop is complete when you install further separation equipment to recycle the catalyst," he said, noting that this cost is relatively minor. 
 
 "Existing plants can increase their production capacity a number of times without major investment," Engelen continued. "We just have to solve possible bottlenecks in the rest of the plant, such as storage capacities." 
 New plants designed specifically to utilize SCRO-80 can be built with a much lower capital investment than traditional biodiesel facilities, Engelen said. 
 
 Ceimici Novel has tested SCRO-80 on the lab and demonstration scales. "We built a semi-continuous unit pilot plant that produces 1,800 kilograms of biodiesel per hour (540 gallons per hour), Engelen said. "Now we work with a 1000 kilogram (300 gallon) batch demonstration unit in the Netherlands, where in a simple CSTR (Continuous Stir Tank Reactor) we can achieve ASTM and EN 14214 specifications in the order of 6 minutes with triglyceride levels below 0.01 percent," he continued, noting that Ceimici Novel also has plans to perform a 10 ton (3,000 gallon) production demonstration for a group of South American-based biodiesel producers in mid-September. 
 
 According to Engelen, Ceimici Novel began to market SCRO-80 in July and recently appointed a U.S.-based distributor. 
 

 "At the moment we are working out the parameters for the savings and conditions of the technology license and royalty agreements," he said. "[When those] agreements are in place, we will be able to do any size scale test at customer's plants." 
 
 Ceimici Novel currently expects its catalyst to be employed on a commercial scale by late 2010 or early 2011.

Irish company develops new biodiesel catalyst

Opportunity Link Inc., a Havre, Mont.-based economic development agency, has been awarded a $125,000 grant from the Montana Department of Environmental Quality. The funding will support a project to develop railroad markets for biodiesel, which includes testing B20 in a Burlington Northern Santa Fe Railway engine. Two identical BNSF engines will be a part of the one-year project; one fueled with B20, the other with standard diesel. Researchers will periodically dismantle the engines to evaluate the comparative effects of each fuel.

Through Opportunity Link Inc.'s project, B20 will be evaluated in a BNSF Railway engine for one year. 'We are supportive of environmental initiatives to identify alternative fuel sources and opportunities to reduce emissions,' said BNSF spokesman Gus

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BNSF train to run B20 trials

Posted Sept. 13, 2010

 
 Dexter, Mo.-based Global Fuels LLC recently received a $48,833 grant from the Missouri Department of Natural Resources to explore the technical and economic possibility of producing next generation biofuels. "We are going to use the feasibility study to compare the different technologies that are out there, to implement a new process here at our facility to produce either synthetic drop-in fuels," said Jason Harris, Global Fuels' plant manager, noting his company will also be looking into green chemical and green energy production technologies. 
 
 Global Fuels currently operates a 3 MMGy biodiesel plant that uses virgin oils and low free fatty acid grease and oil as feedstock. According to Harris, the main goal of the study is to find a technology that Global Fuels can operate sustainably without subsidy. "Given our current industry, where we are at with this $1 subsidy being lapse and the market being overproduced and [experiencing low demand], it's just something for us to look at for long-term stability," Harris continued. 
 
 The official timeline for the feasibility study is one year, however Harris said he hopes to have it complete within six months. "We're looking at several different companies that are either ready to commercialize, or are still in pilot facilities," he said. "We are looking at gasification, pyrolysis, fermentation-we're looking at a lot of technologies, and we hope to get it narrowed down to just a few by the end of the study." 
 
 Harris also notes that Global Fuels is hoping to find a technology that can utilize local biomass sources. "We're trying to keep an open mind and unbiased opinion starting out," he said. "We don't want to concentrate on one feedstock because that really narrows your study. We want to keep it open and broad, and that way we get a change to look at everything." Some possible feedstocks that are in abundance locally include agricultural residues, forestry, municipal solid waste, wood waste, construction waste, and manure. 
 
 One aspect of the study that is currently unclear is whether Global Fuels would continue to operate its biodiesel plant once a new technology is brought onsite. "That is one of the aspects we are still looking into," Harris said. The current thought, he continued, would be the continued operation of the biodiesel facility during the feasibility study and construction of a new plant. "After everything is up and running, we'll make the determination whether it's still feasible to use the biodiesel facility or not," he said.

Global Fuels receives feasibility study grant

Get your plane ticket, make your hotel reservations and register for BBI International's Southeast Biomass Conference & Trade Show, Nov. 2-4 at the Hyatt Regency in Atlanta. While much of the conference will be about biomass heat and power, refining biomass and similar topics, one panel at the show will be dedicated exclusively to methyl esters, titled, "Biodiesel from Waste and Low-Value Feedstocks." 
 
 I will be moderating this group of presenters. Christina Borgese, president of PreProcess Inc., a company that focuses on scaling up alternative energy systems from bench- to commercial-scale, will present on converting problematic material such as sewer sludge into process-ready feedstock for biodiesel production. Borgese, who comes from BioFuelBox, winner of a World Economic Forum award last year, said much discussion of low-value feedstock centers on conversion technology, not on pretreatment, economic separation or reducing the overall costs associated with such undesirable inputs. "We focus on a heated, intensified, layered approach," she said of PreProcess' separation technique. Borgese will cover the engineering and economics of grease separation-what has been done in the past, what is currently on the table, and what the future can hold. 
 
 Frank Yeboah, an assistant professor with North Carolina Agriculture and Technical University, will discuss his three-year biodiesel project with the U.S. Department of Defense. "We look to develop a simple computer model" that speaks to the economic viability of producing biodiesel from waste materials generated on military bases, such as used cooking oil from canteens, he said. But the computer model will also generate data on how much petroleum the military can displace from such activities, in addition to the environmental (i.e., greenhouse gas emissions reductions, etc.) and energy security benefits offered. Yeboah is in year two of the three-year DOD project and anticipates having the very latest data from the project to share with the audience in Atlanta. 
 
 Ming Chai, a Ph.D. student at the University of Cincinnati will discuss his collaboration with Bluegrass Biodiesel out of Falmouth, Ky., and plans to delve into the particulars of kinematics and acid-catalyzed esterification of free fatty acids. Chai will focus on issues associated with biodiesel conversion of used cooking oil and animal fat feedstock, in addition to trap grease, and will relay to the audience insights from his research. 
 
 Finally, Brandon Spence, CEO of Winnsboro, S.C.-based Midlands Biofuels, a 300,000 gallon per year community-scale biodiesel plant, will round out the biodiesel panel in Atlanta by discussing plant operations using waste vegetable oil, and the new Southern Fried Fuels initiative Midlands Biofuels just recently kicked off (see page 10). The initiative offers individuals a place to dispose of their used fryer grease instead of dumping it down the drain or throwing it away in landfills. Midlands Biofuels picks up the used oil from the drop-off center at the city of Columbia's Public Works Facility, and hauls the material to its Winnsboro-based methyl ester plant for conversion to quality biodiesel. 
 
 To register for the Southeast Biomass Conference & Trade Show in Atlanta Nov. 2-4, go to www.biomassconference.com/southeast.

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Meet You in Atlanta

In most industries, the logistics and strategy of a company's distribution infrastructure depend primarily on cost. For example, as demand in a geographic area grows, it will eventually be more cost effective to produce in that area rather than continually ship from afar. While this analysis can get complicated, the biofuels industry must uniquely consider not only the dollars that go into shipping, but also the environmental impact. 

 
 As a biodiesel producer expands its market, critics, competitors and policymakers will scrutinize resources used to get the product to consumers. Regardless of whether this scrutiny is merited or ill-defined, it is certain to arise. Therefore, biodiesel producers are pushed toward multiple facilities, each ideally utilizing and servicing the immediately surrounding geographic areas. 
 
 With the expiration of the biodiesel tax credit and production at a small percentage of capacity, most producers likely feel that opening new facilities is an impossible task. Yet, as the industry faces a difficult market, it could be the ideal time for players to gain market share. Adding to the opportunity are a number of federal programs that can be utilized for undertaking a capital project toward expanding a biodiesel distribution network.
 
 New market tax credits The new market tax credit program was created as a way to direct funds to businesses located in low-income census districts. It provides an investor with a federal income tax credit equal to 39 percent of an investment in an intermediary entity, referred to as a community development entity, which loans the investor funds to the project. This loan must be interest-only for at least seven years and have an interest rate at least 25 percent below market rate. Under certain structures, a lender typically will discharge a substantial portion of the principal after seven years (after all, the lender has recouped its investment from the generous tax credit and often doesn't also need a return of the entire principal). 
 
 A biodiesel production facility will qualify for this financing as long as the project is located in a low-income census district. A liberal definition of low income covers almost 40 percent of the U.S., including many rural districts. A federal website mapping feature identifies whether an address is in a low-income census district: (http://www.cdfifund.gov/what_we_do/mapping.asp).
 
 Biorefinery assistance program USDA will guarantee loans for projects involving the development, construction and/or retrofitting of commercial-scale biorefineries producing advanced biofuels. The definition of advanced biofuel under this program will include biodiesel, as one of the categories includes "diesel-equivalent fuel derived from renewable biomass, including vegetable oil and animal fat." However, USDA has interpreted Congressional intent of the program to prefer innovative, commercial-scale technologies, and will therefore give preference to projects that go beyond standard biodiesel technology. 
 
 The maximum amount of any one loan guarantee is $250 million. Participation in this program will offer biodiesel producers an advantage with access to significant financing at rates lower than those for which they would otherwise be eligible. 
 
 Guaranteed loans Efficient use of feedstock supply will often cause a commercial-scale biodiesel production facility to locate in a rural area, creating an opportunity to use this loan guarantee program limited to rural businesses. Similar to the New Market Tax Credits, eligible geographic areas under this program are plentiful-the only constraints being that the territory is not within the outer boundary of any city having a population of 50,000 or more and its immediately urbanized and urbanizing area with a population density of more than 100 people per square mile. A wide range of businesses are eligible to participate in this program and benefit from a loan guarantee by USDA, including biodiesel companies looking to purchase real estate or equipment for a production facility.

 
 If the borrower meets some financial requirements, USDA will guarantee a portion of a loan in amounts more than $10 million. Specifically, USDA will guarantee 80 percent of a loan up to $5 million, 70 percent of a loan up to $10 million, and 60 percent of a loan of more than $10 million. Once again, the USDA guarantee will provide producers with access to lower interest rates on their financings. 
 
 A distribution network that minimizes environmental impact is necessary for successful biodiesel market penetration. While current market forces do not encourage expanding capacity, these federal programs may offer producers the capability to do so, thereby positioning themselves well for a more favorable market in the future.
 
 
 Craig Johnson is a member of the Renewable Energy, Business and Health Care Practice Groups in the Madison office at Michael Best & Friedrich LLP. Reach him at (608) 257-3064 or cjjohnson@michaelbest.com.

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Leveraging Federal Programs to Expand Distribution Networks

Plenty of confusion has surfaced recently regarding the impact of a 2010 advanced biofuel standard for obligated parties. The 2010 advanced biofuel requirement of 0.95 billion gallons would, in theory, be met by the biomass-based diesel standard for 2010 using simple RFS2 math: the equivalence value of biodiesel (1.5), multiplied by the mandated volume of biomass-based diesel for 2010 (0.65 billion gallons) equals 0.975 billion gallons. Since biodiesel is nested within the advanced biofuels standard, and since the above number exceeds 0.95 billion gallons, the advanced biofuel standard would be automatically met. Case closed, right? 
 
 Well, that depends on your outlook for biodiesel production for the remainder of 2010, and for this we first look to the Energy Information Administration. EIA biodiesel production figures show an industry that is producing approximately 34 million gallons per month for the first half of 2010. EIA's June Monthly Energy Review shows a net deficit between biodiesel imports and exports of 737,000 barrels, or roughly 31 million gallons, during the first quarter of 2010. When biodiesel is exported, RFS2 statutes demand that exporting parties establish a renewable volume obligation in biomass-based diesel using the physical volume exported, multiplied by its equivalence value. Removing biodiesel gallon renewable identification number (RIN) credits from the domestic pool by exporting biodiesel simply demands more domestically consumed biodiesel to make up the deficit. Without a substantial increase in biodiesel production over the second half of 2010, combined with a large decrease in net exports, it is possible that less than 300 million gallons of domestically consumed biodiesel (and their 450 million associated RINS) will be available to meet the combined 2009-'10 biomass-based diesel standard. 
 
 The EPA projects RFS2 regulatory levels of 2010 biodiesel consumption within their revised Q&A document released in July, stating: "Based on our current review of the 2009 RFS compliance report data submitted by obligated parties, we anticipate that this straight reading of the regulations would require obligated parties to obtain 2010 biomass-based diesel RINs representing approximately 345 million gallons (518 million RINs) after accounting for 2008 and 2009 RINs that EPA believes may be properly applied to the combined 2009-'10 biomass-based diesel requirement of 1.15 billion gallons." 
 
 And how does this impact the 2010 advanced biofuel standard? EPA explains: "If 345 million gallons of 2010 biodiesel (or the equivalent of 518 million RINs) are used in satisfying the combined 2009-'10 biomass-based diesel standard, these RINs would also be valid for meeting the 2010 advanced biofuel standard of 950 million gallons. However, an additional 432 million advanced biofuel RINs would still be required to meet the 2010 advanced biofuel standard ... Such biofuels could potentially include U.S. biodiesel production in excess of 345 million gallons, cellulosic biofuel RINs with a D code of 1, 3, or 7 in excess of the 6.5 million ethanol-equivalent gallons needed for 2010 compliance, or imported sugarcane ethanol RINs with a D code of 5. In addition, while up to 190 million RINs from 2009 could be used toward meeting the 2010 advanced biofuels requirement consistent with the applicable 20 percent rollover cap, only excess 2009 biodiesel or renewable diesel or cellulosic ethanol RINs (that is, RINs not used for compliance in 2009) could be used for this purpose."
 

 What does this all mean to RFS2 obligated parties? Initially, the 20 percent rollover cap for this year's advanced biofuel standard allows up to 190 million cellulosic or biodiesel RINs from 2009 to be used for compliance with the 2010 advanced biofuel standard. Obligated parties will be well-suited to purchase the cheaper of 2009 cellulosic or biomass-based diesel RINs to satisfy this quantity of RINs. Once this volume has been acquired, the same metric applies to 2010 cellulosic/biomass-based diesel/advanced biofuels RINs: buy the cheapest RIN, or purchase the cheapest biofuel to separate the necessary RINs required to satisfy their remaining 2010 advanced biofuel obligation. With 2009 biodiesel and cellulosic RINs selling for just over one cent, and with comparable 2010 advanced RINs approaching 50 cents, it is easy to see that parties who are well versed in the RFS2 regulations will be able to shave millions off their 2010 compliance costs.
 
 
 Sam Gray is a fuel trader with Ft. Worth, Texas-based VICNRG LLC. Reach him at (404) 293-5884 or sam.gray@vicfuel.com.

RFS2 Compliance for Obligated Parties

Residents of Columbia, S.C., can now put their waste cooking oil to good use by dropping it off for collection by Winnsboro, S.C.-based biodiesel producer Midlands Biofuels LLC, for use as biodiesel feedstock. The effort, dubbed the Southern Fried Fuel Initiative, was launched to decrease the large volume of waste cooking oil dumped in the city's sewer systems. The company expects to collect approximately 1,000 to 2,000 gallons a month of waste cooking oil from 125-gallon containers scattered at various collection locations in the city. Once collected and delivered to its 300,000-gallon-per-year facility in Winnsboro, the company intends to supply B20 blends to the garbage truck fleet in Columbia.

photo: City of Columbia's Public Relations, Marketing and Media Department

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Southern Fried Fuel  Initiative launched in SC

The disparity between diesel and biodiesel prices has become increasingly noticeable in recent months. Since April, when the national average price was $3.05 per gallon, on-road diesel prices dropped off 10 cents to $2.95 in August, according to the Energy Information Administration. The national average price for B20 and B100 in April was $3.12 and $3.57 per gallon, respectively, according to the U.S. DOE's Clean Cities Alternative Fuels Price Report published in April.

Diesel price drop may signify  shortcoming for biodiesel

Before Congress reconvened on Sept. 13, the latest news on the biodiesel tax incentive extension remained linked to one thing: Congress. After struggling to find a capable legislative vehicle early this year, many believed the tax extension would finally pass in the unemployment bill, but shortly before the bill went to the Senate floor, the biodiesel portion was stripped. The next opportunity, the small business bill, came as Congress was leaving for August recess, but a biodiesel amendment approved by both parties from Sen. Charles Grassley, R-Iowa, also fell prey to the political wrangling of Congress. With Congress back in session, the best chance still remains in a revisited, new version of the small business bill. Sen. John Kerry, D-Mass., has also proposed an energy bill that would reinstate and extend the tax incentive for two years, but to date, the bill has seen minimal attention.

Tax Credit Update

The genetic code for the promising biofuel feedstock, jatropha, just got much clearer. Energy crop developer SG Biofuels, with the help of a biotechnology provider Life Technologies used a genome sequencing device called the Solid 4.0 system to sequence the jatropha genome. SG Biofuels will add the genome to its well-established germplasm library in an effort to further develop a high quality reference genome. The results of the Life Technologies partnership along with the current library will help the San Diego-based company to more quickly identify key traits including enhanced fruit yield, pest resistance, soil adaptation, improved flowering capabilities, uniformity and harvesting. 
 
 The ultimate goal for SG Biofuels, however, is to develop its Jmax Jatropha Optimization platform, which features a proprietary cultivar of jatropha yielding 100 percent more than existing varieties, increasing profitability to $1,000 more per hectare. Those interested in participating in the Jmax program will also have access to the germplasm library and its plant science team to help growers and breeders optimize selection for specific regional conditions, including climate and soil conditions.

Jatropha genome successfully sequenced

New Mexico Gov. Bill Richardson recently announced that $200,000 in Recovery Act funding has been awarded to New Mexico State University. A portion of that funding will be used by NMSU's Renewable Energy, Water and Arid Lands Task Force to support an algae project that includes the development of test beds that will be used to evaluate algae strains and determine which strain is best adapted for cultivation in New Mexico. 
 
 As part of the project, researchers will evaluate several aspects of algae production, including yields, harvest methods, extraction and performance. The project will also include research into the effects of environmental factors, such as temperature and water quality, on algae growth and performance. "The state of New Mexico would be the primary region to benefit from the project, but that doesn't mean other places that have similar water chemistries and similar environments won't be able to benefit from it," said Abbas Ghassemi, NMSU professor of chemical engineering and director of the Institute of Energy and Environment.

Recovery Act funds  New Mexico algae project

A 200-acre test plot of land near Salt Lake City's airport is drawing interest from the U.S. Army to evaluate whether it can exploit similar underutilized land on government property near military installations to grow oilseed feedstocks for biodiesel production, according to Dallas Hanks, doctoral student at Utah State University's department of plants, soils and climate. The effort, part of the Freeways-to-Fuel Initiative and spearheaded by Hanks in 2007, focuses on ways to grow various oilseed crops on nontraditional agronomic areas such as along roadways, airports, railroad areas and other government lands.

Dallas Hanks, Utah State University Extension doctoral student, inspects crops in a Freeways-to-Fuel test plot in Utah. PHOTO: Utah State University Exension

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Utah biodiesel plot draws interest of US military

Several companies once exclusively billed as cellulosic ethanol producers have widened their focus to include the production of higher-value biobased chemicals and drop-in substitutes. One example is Broomfield, Colo.-based Range Fuels Inc., which recently produced its first batch of cellulosic methanol at its Soperton, Ga., facility. In Wisconsin, Flambeau River Biofuels shelved its cellulosic ethanol project long ago, and is now focused on the gasification of woody biomass to produce renewable diesel and paraffin wax. In addition, BlueFire Ethanol Fuels Inc. recently changed its name to BlueFire Renewables Inc. to better illustrate its ability to produce other advanced fuels. While BlueFire's first two facilities will initially produce cellulosic ethanol, the company plans to eventually produce other products.

PHOTO: Utah State University Exension

Surrounded by members of New York City's biodiesel industry, Mayor Michael Bloomberg signed Intro 194-A, validating a three-year struggle to bring biodiesel and heating oil together. The bill, originally sponsored by the Chairman of the New York City Council Environmental Protection Committee, James Gennaro, requires all grades of heating oil sold in the city to contain at least 2 percent biodiesel starting in October 2012. While the infusion of biodiesel into the Big Apple's heating oil supply will have to wait a few years, the impact of the bill immediately resonates to the rest of the country, according to Gennaro.
 
 "When people see all the brainwaves we put into debunking some of the myths about biodiesel and biofuels," Gennaro told Biodiesel Magazine, "it will go a long ways against those that harbor reservations about a fuel that can provide environmental benefits." For Gennaro and others involved with making the biodiesel heating oil bill a reality, fighting against those who didn't know the truth about biodiesel benefits made the process difficult-but in the end, "we finally prevailed," Gennaro said. 
 
 To satisfy the B2 mandate, 20 million gallons of B100 will be needed, and according to Gennaro, part of the success of the bill directly relates to one of New York City's main biodiesel suppliers, Metro Biofuels. "We are already seeing a big investment in biodiesel heating oil," he said, and, "Metro is doing that by putting their money where their mouth is." In the first quarter of 2011, Metro will open a 110 MMgy biodiesel processing facility in Brooklyn, capable of using soy, grease, canola or algae as feedstock. Gene Pullo, president and CEO of Metro said that as more and more people started using biodiesel-blended heating oil, they began to question why all heating oil didn't include biodiesel. During the three years before the bill became official, Pullo said, "As a company, we spent a lot of time building relationships with environmental and public health organizations, and working with policymakers to understand our businesses and how it can benefit the city." The key, he added, was working together, and "never giving up." 
 
 The result of that hard work is a mandate, Pullo said, that confirms all the hard work and the belief that biodiesel is a major component of our energy future. Gennaro would agree, but he also emphasizes the importance of the mandate for those outside the city. "This is a significant day for NYC and those other cities that are trying to make common sense energy policies," adding, "There are sources out there that don't tell the real story. We've created a body of work that people should look at and emulate." And, as for alternative legislation on biodiesel blending heating oil, "there is no need to reinvent the wheel." 
 
 "I actually call it sexy," said Daniel Falcone, wholesale manager for Ultra Green Energy Services LLC. There's no denying this looks good to the industry, Falcone added. The success of the bill, however, doesn't mean biodiesel use in the city won't change. Pullo said, "We expect that once building owners get started on biodiesel at a 2 percent blend, they will love it and eventually blend up to B5, B10 and B20."

Support for biodiesel was strong at the official signing of the B2 heating oil bill held in the Blue Room at New York City Hall. PHOTO: DANIEL FALCONE, ULTRA GREEN ENERGY SERVICES

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New York City passes B2 heating oil mandate

In an industry where declining diesel prices, increasing inventories and a lapse of a major tax credit continue to crimp operating profits, it would seem that the storm clouds have converged, causing many in the industry to ponder shuttering operations. Several biodiesel plants have either declared success or have successfully come online in this uncertain time.
 

 Among those in recent months is the opening of small-scale facilities able to serve local communities. In Alabama, a 70,000-gallon-per-year biodiesel facility opened at the Enterprise Public Works Facility where it will use waste cooking oil supplied by local businesses and a high school. The plant received a $300,000 grant from Alabama Department of Economic and Community Affairs, which looked to partner with surrounding communities for feedstock access and fuel supply agreements.
 
 In Groton, Conn., Constitution Biofuels started up operations and held a grand opening recently. The company produced its first batch of fuel, about 250 gallons, in late August, and hoped to increase production for local commercial sales by late September, according to founder and CEO Doug Dickey. The plant will use waste cooking oil collected from area restaurants and Dickey estimated approximately 3,500 gallons of waste product would be converted into biodiesel. 
 
 Large-scale plants also found new life when Renewable Energy Group Inc. reopened a 60 MMgy plant in Seneca, Ill. REG acquired the idled facility in April when its original owner, Nova Biosource Fuels Inc., went bankrupt. The multifeedstock plant features three side-by-side 20 MMgy biodiesel processing units, a technical-grade glycerin refining facility, raw material and finished product storage, and railcar and truck loading. 
 
 Evansville, Ind.-based Imperial Petroleum Inc. said that its wholly-owned subsidiary e-Biofuels LLC, which operates a 15 MMgy plant in Middletown, Ind., using animal fats and waste vegetable oils as feedstock, generated approximately $3.5 million in July alone on fuel sales of about 1.2 million gallons and, as a result, expected "to be highly profitable going forward," the company said. Fuel sales for August were approximately 1.4 million gallons with revenues of more than $4 million, according to the company. 
 
 "E-Biofuels LLC has been in a unique position to take advantage of its certification as an advanced biofuels producer to rapidly increase its market presence," said Imperial Petroleum CEO Jeff Wilson, adding that his company intends to increase the plant's maximum installed nameplate capacity to 25 MMgy and add more efficient process technology to include bio jet fuel capabilities.
 
 Plants that suffered a different fate by closing operations include Biocardel Vermont LLC's 4 MMgy multifeedstock plant in Swanton, Vt. Best BioDiesel Cashton LLC, a subsidiary of Madison, Wis.-based Best Energies Inc., shut down operations at its 8 MMgy facility in Cashton, Wis. Both plants cited the lapse of the biodiesel tax credit being the primary cause behind the decisions to close their respective facilities.

Company personnel held a ribbon-cutting ceremony to commemorate the reopening of REG's recently acquired 60 MMgy biodiesel plant in Seneca, Ill. PHOTO: REG INC.

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Plants come online despite tough times

Current biodiesel production methods involve catalysts made of concentrated sulfuric acids and caustic methoxides, which "creates a whole host of problems," according to Tyson Johnson, CFO of Georgia-based biodiesel research facility, Down to Earth Energy. Johnson and his research team from the University of Georgia may have found the answer, and it starts with catalyst recycling. "We've taken effective catalytic functional groups and immobilized them on a solid substrate," Johnson said. The functional catalyst groups created by Down to Earth look and feel a lot like charcoal, Johnson said, and when the catalysts remain in a fixed column, the process allows for additional catalyst use in future reactions.
 
 Made from readily available, natural woody biomass, the catalyst process drastically cuts down on the waste effluents from conventional production methods, according to Johnson, "because the process does not require the addition of acids and caustics." The recycling method subsequently produces a glycerin product largely free of soaps, salts and will be pH neutral. "The lack of those impurities will make separations much easier and reduce the amount of biodiesel that gets carried over with the glycerin." 
 
 The catalyst also acts as an adsorbent, and this allows some front-end impurities to adsorb on the catalyst surface. But, Johnson said, this creates a trade-off. "The dirtier the oil going in, the shorter the life of the catalyst, and the shorter the amount of time before regeneration is necessary," so Johnson added, producers will want to stick with their current filtering and dewatering setups. 
 
 While Johnson's goal is to give every biodiesel producer, regardless of size, an affordable solid catalyst that can be easily integrated into both batch or continuous processes, those interested in the recyclable catalyst method will have to wait. With the technology still in the development stages, the team is struggling to find the time necessary for research and development, while playing "the grant-seeking game which requires long hours and no guarantees," according to Johnson. The work is currently being funded by U.S. EPA, along with supplements from the Georgia Research Alliance. "We have not yet begun seeking out private money and probably won't begin to do so until we have rounded out performance and data," Johnson said. 

 
 Along with process development and testing, the Down to Earth team is also working to form relationships that will get the catalysts to market, and some early ones have already paid off. Jim Kastner from UGA's Agriculture Engineering Department and Dan Geller from the UGA's Engineering Outreach program have already been instrumental in development of the project. "The initial idea for the project came from Jim and Dan, both of whom have been working with biochar and pyrolysis technologies for some time now," Johnson said. Plans for commercialization, including pilot testing and market implementation, are currently scheduled for summer 2011 and will most likely stretch into 2012. In the meantime, Johnson and his team, which also includes Down to Earth chemist Larry Keith and others, are "focused on giving this technology in its current form the best chance," and although the future goal of the project may sound like an idea that's been used before, Johnson said the project so far has been a success.

Down to Earth Energy's team hopes to bring its recyclable catalyst to market by 2011. PHOTO: DOWN TO EARTH ENERGY

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Recycled catalyst process developed

Researchers at the University of Michigan may have unlocked algae's true potential as a viable feedstock for biodiesel production. The team published a feasibility paper detailing its novel two-step hydrolysis-solvolysis process that can produce biodiesel directly from wet algal biomass, obviating the need for costly biomass drying, organic solvent extraction and catalysts while providing a mechanism for nutrient recycling. The paper on the process was published in the ACS journal Energy & Fuels. 
 
 In the first step, a strain of algae called Chlorella vulgaris, grown sequentially under phototrophic and heterotrophic conditions, was comprised of 80 percent moisture and had a 53.3 percent lipid content. The wet algal biomass then underwent a reaction under subcritical water conditions in temperatures of 250 degrees Celsius, which transformed the wet algae into a paste-like state, according to Phillip Savage, lead researcher on the project. "At large scale that probably wouldn't be applicable for an economical process," he noted.
 
 The goal here, according to researcher Robert Levine who authored the paper, was to hydrolyze-separate from water-intracellular lipids and conglomerate them into an easily filterable solid that retained high lipid content. 
 
 "We wanted to convert the lipids into mostly fatty acids in the form of triglycerides or other phospholipids that contained fatty acid groups, so we could hydrolyze those into fatty acids," he said. "We also wanted to release a lot of the nonlipid components into a sterile nutrient-rich aqueous phase that we could recycle into our process from which we could grow additional microorganisms."
 
 In the second step, the remaining solids (containing approximately 80 to 90 percent fatty acids) underwent a supercritical transesterification process with ethanol that produced fatty acid ethyl esters (FAEE). "We chose ethanol instead of methanol because we wanted to use entirely biologically-derived ingredients, and also because the solid that remained after the process will probably have some minor alcohol residue, which we want to be used as fertilizer, animal feed and so forth," Levine said.
 
 Levine found that the yields of FAEE in the crude product were significantly lower than anticipated due to nominal amounts of unreacted glycerides and unidentified compounds."We definitely have more work to do to optimize the process," Levine said. "Eventually we want to get 100 percent crude biodiesel and 100 percent ethyl esters."
 
 Though the experiment yielded promising results, Levine said the process warrants further optimization efforts to overcome glaring variables pertaining to temperature, time and alcohol use. "We use a higher ratio of alcohol-to-oil, that's common in a normal, catalyzed commercial biodiesel plant," he said. "The triglyceride-to-alcohol ratio of one-to-three is stoichiometric, so we're really moving towards just using just enough alcohol so we don't have to recover it, which would save on recovery costs."
 
 Once perfected, Levine added that the process could be applied to larger scale biodiesel production processes. "Our process can actually be very efficient if you do heat integration on your inlet and outlet streams, there's a big advantage to using higher temperatures and pressures," he said.

Pictured is a process flow diagram for biodiesel production through intracellular lipid hydrolysis and supercritical in situ transesterification using ethanol. source: Robert Levine, UNIVERSITY OF MICHIGAN

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Researchers explore direct conversion of wet algal biomass

Biodiesel training initiatives are gaining traction all over the country. Although some of these programs have been established in traditional biodiesel production areas, others are centered in regions where biodiesel is relatively rare. One program in Iowa is focused on training diesel technicians on the use of biodiesel, while another in Minnesota aims to train displaced workers to work in biodiesel plants. In New Orleans, a local nonprofit is working to develop a program that will train low-income, at-risk youth on biodiesel production and use. In addition, a program led by two Clean Cities departments in North Carolina aims to educate both fleet managers and the general public on the benefits and use of biodiesel. 

 In Iowa, a training initiative established by the Iowa Biodiesel Board has trained more than 750 diesel technicians and students in the past year. The program, which specifically targets the state's diesel mechanic community and community college instructors, aims to increase professional knowledge on biodiesel and its performance in diesel engines. A grant awarded by the Iowa Power Fund has fully funded the initiative. 
 During the first year of the program, continuing education courses for diesel mechanics in the workforce were held at all 15 of Iowa's community colleges. A two-day "train the trainer" workshop was also offered to college faculty in September 2009, where instructors were provided with biodiesel curriculum and had the opportunity to interact with industry experts. A follow-up meeting was held this spring, at which instructors shared experiences and received curriculum updates. 
 The feedback received from students has been overwhelmingly positive, said Jerry Burns, an associate professor at Des Moines Area Community College. He also noted that most students were not familiar with biodiesel's benefits before taking his class. Specifically, he said many students were unaware of biodiesel's enhanced lubrication value and the impact that the fuel can have on exhaust emissions. 
 When people take their vehicles to a technician or mechanic, they put trust in them so if customers are told biodiesel is bad, they probably won't try it, Burns said. However, if those technicians and mechanics are able to explain the benefits of biodiesel, drivers should be more willing to try it. Students will take the knowledge into the workforce and be better able to educate people on biodiesel, Burns said. 
 In Minnesota, a program funded by the Governor's Workforce Development Council seeks to provide free biofuels training to up to 44 participants. The one-year training program, which is being developed by Anoka-Ramsey Community College in east-central Minnesota, will select participants from a target population that includes military veterans, displaced workers and incumbent employees. According to Stephen Jones, the college's director of continuing education and customized training, participants are being recruited through the Anoka County Workforce Center and the Central Minnesota Training Partnership Program. 
 Students participating in the program will receive training in biofuels fundamentals, technical report writing, spreadsheet use, and OSHA safety standards. The course includes existing online course work, experiential lessons within production facilities and virtual tours of existing plants. Students will also perform instructor-led classroom activities and participate in production control computer simulations. 
 In Louisiana, New Orleans-based nonprofit Operation Reach Inc. formed the "Gulfsouth Youth Biodiesel Project," which aims to provide green job training to youth who reside in local low-income communities. According to Hamilton Simons-Jones, Operation Reach's chief development officer, the GYBP is now in its second year. "We originally formed this project about a year and a half go to accomplish two things," he said. "One is to be a small, biodiesel social enterprise that converts used cooking oil into biodiesel fuel as a local, regional business run by the nonprofit. The second is to develop green job training and expose local youth to biodiesel to really use that as an introduction not only to overall environmental awareness, but also more concrete job training."
 The GYBP program graduated its first class of 15 students in April, and the next class of students will begin the program this fall. According to Simons-Jones, the first class actually helped assemble the teaching facility, which includes a biodiesel plant. The experience allowed the participating students to earn a construction certification through the National Center for Construction, Education and Research. "[The students] received instruction on pipe fitting, plumbing and carpentry," Simons-Jones continued. "They were a part of helping us build out this teaching facility that produces biodiesel, and then learning about how that all works as well, of course." Depending on the amount of funding that is received, approximately 30 students will be able to participate this fall. 
 While the Minnesota and New Orleans projects aim to provide training to disadvantaged youth and workers, an initiative lead by two Clean Cities offices in North Carolina is working to educate fleet managers and the general public on the benefits and use of biodiesel. The program, which was funded by United Soybean Board grant, includes four workshops. Each of the Clean Cities departments is hosting two regional training sessions; one aimed at fleet managers, and one aimed at the public. 
 Two workshops held in the Charlotte, N.C., area featured a local biodiesel expert, a panel of fleet managers already using biodiesel, and a representative of the Greater Charlotte Region Biofuel Facility Project, said Centralina Clean Fuels Coalition Assistant Coordinator Emily Parker. Two similar events held in Raleigh featured an expert from the North Carolina Biofuels Center, a representative of a local community college and a local biodiesel producer. According to Kathy Boyer, the Triangle Clean Cities Coordinator in Raleigh, her office anticipates applying for additional grant funding in the next year to support the development of more workshops. "I think maybe in this next round we will target heavy-duty truck drivers, convenience store owners and people who would be using the fuel in the public sector," she said.

Operation Reach staff member Clay Alexander (top right) is pictured with the first graduating class of the organization's Gulfsouth Youth Biodiesel Project. Photo: OPERATION REACH INC.

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Training targets mechanics, youth and displaced workers

As the head of the National Biodiesel Board's Washington office, I have the privilege of working with biodiesel producers and stakeholders from across the country. Over the past year, regardless of their size or business model, I have heard a common sentiment from biodiesel producers. The biggest challenge facing our industry is uncertainty. Unreliable, inconsistent federal policy and the marketplace volatility it has caused is making it nearly impossible for our industry's entrepreneurs-the very individuals responsible for producing America's only commercial advanced biofuel-to make the important business decisions that will allow the nation to recognize significant economic, energy security and environmental benefits associated with expanded biodiesel production and use. 
 
 That is why the renewable fuels standard, RFS2, is so important. Between now and 2022, RFS2 requires obligated parties to use minimum amounts of biomass-based diesel and other advanced biofuels each year. Successful implementation of the RFS2 biomass-based diesel and advanced biofuels requirements will help provide a stable, reliable and enforceable demand for biodiesel in the U.S. marketplace. For this reason, the NBB has spent a significant amount of time, effort and resources working initially with Congress and subsequently with U.S. EPA to create and implement a workable program that achieves the worthwhile policy goal of displacing petroleum with advanced biofuels such as biodiesel. 
 On July 20, the EPA issued a proposed rule regarding the 2011 volume requirements for biomass-based diesel. Consistent with the law, the EPA proposed that 800 million gallons of biodiesel must be entered and used in the commercial marketplace in 2011. 
 
 In comments NBB filed on August 18, we supported this requirement and agreed with EPA that the U.S. biodiesel industry can not only meet, but exceed, 800 million gallons of production in 2011. With more than 80 biodiesel plants registered under the RFS2 program, representing more than 1.8 billion gallons of production capacity, and the abundance of feedstock available, the U.S. biodiesel industry stands ready to produce the fuel needed to satisfy and surpass the RFS2 volume requirements for 2011 and beyond.
 

 The NBB also took the opportunity in these comments to clarify the fundamental fact that, by law, the RFS2 volume requirements for biomass-based diesel and advanced biofuels must be met regardless of the status of the biodiesel tax incentive or other biofuels tax incentives. There has been some confusion about this issue, and we specifically noted the following in our comments:
 
 "In any event, although obligated parties continue to highlight the lack of the tax credit as a reason to avoid using biodiesel for compliance purposes in 2010, the tax credit itself is not germane to the specific statutory volume mandates of the RFS2 program enacted by Congress. The presence of the biodiesel tax credit should not be part of EPA's consideration when setting the annual renewable volume obligations. Specifically, Congress did not create the RFS2 volume requirements contingent on the availability of tax credits for biofuels, rather Congress created the RFS2 and imposed the volume requirements for a multitude of reasons: to decrease reliance on petroleum; to increase the environmental and air quality benefits of transportation fuels; to create new domestic green jobs; and to stimulate the development of new domestic feedstocks for biofuels."
 
 The EPA has clearly taken a step in the right direction by acknowledging that the U.S. biodiesel industry has the production capacity and feedstock available to accommodate the proposed RFS2 volume goal of 800 million gallons for 2011. The U.S. biodiesel industry has done, and will continue to do, its part to fulfill the statutory directive and goals. The NBB is confident that the U.S. biodiesel industry will produce more than 800 million gallons of fuel in 2011, so long as the EPA finalizes and enforces this proposal in a timely manner. 
 Successful implementation and enforcement of the RFS2 biomass-based diesel and advanced biofuels volume requirements will provide needed certainty for the U.S. biodiesel industry. Rest assured, achieving this worthwhile goal has been, and will remain, a top priority for the NBB. 
 
 To view the comments filed by the NBB, please visit www.regulations.gov and look through Docket ID. No. EPA-HQ-OAR-2010-0133.
 
 Manning Feraci, vice president of federal affairs, National Biodiesel Board

U.S. Biodiesel Industry Stands Ready to Meet, Exceed RFS2 Volume Goals

Plan now to participate in the biodiesel event of the year. The annual National Biodiesel Conference & Expo is the only event that gathers biodiesel decision-makers from all around the United States and the world. Opportunities abound for attendees and exhibitors to network, connect and learn. This event will explore the topics of governmental policy, technical issues and marketing trends in the biodiesel industry.
 
 2011 is shaping up to be a banner year for biodiesel production and industry growth. Our hope is that this conference will be the springboard to greater opportunities for our industry.
 "The demographics of the conference attendees indicate most are high-level decision-makers in their respective areas," said NBB CEO Joe Jobe. "This conference truly has developed into an annual 'meeting of the minds,' and you just have to be there to be part of it."
 
 The 2011 conference, to be held at the Phoenix Convention Center, will include an array of networking and social events in this exciting city, along with our always popular Expo. 

 The attendee early bird registration deadline is Nov. 19. Registering before this date will help save you money on your conference registration. 
 
 Visit the official conference website at www.biodieselconference.org for easy online registration. The website is also home to schedules, lodging information, area attractions, and many other helpful links.

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2011 Biodiesel Conference & Expo-register now!

The summer of 2010 can safely be classified as the summer of the biodiesel tax incentive. National Biodiesel Board staff and members focused on the renewal of the biodiesel tax incentive and hosted many media and Congressional events across the country.
 
 NBB took the opportunity during the August recess to host an energy media event with Congressman Roy Blunt, R-Mo., and Joe Jobe, NBB CEO. The two addressed a room full of reporters and biodiesel stakeholders on issues regarding the biodiesel tax incentive and the future of the biodiesel industry. 
 
 NBB members got involved with the grassroots effort by meeting with Senators and Representatives in Washington, over the phone, and by hosting events at production facilities. NBB provided support for members through talking points, message development, event advisory/press release support, media contacts, and other tips that helped maximize media exposure.
 
 NBB member General Biodiesel Inc. hosted Sen. Maria Cantwell, D-Wash., for a tour of its production facility in Seattle, followed by a press conference addressing the need to extend the biodiesel tax incentive. Cantwell said the credit was essential to protecting and creating 350 jobs in Washington State alone. 
 
 NBB member BlackGold Biofuels hosted Pennsylvania Democratic Senatorial candidate, and current U.S. Representative Joe Sestak, D-Pa., for a press conference at their Philadelphia Research and Development facility. 
 
 NBB member Renewable Energy Group Inc. hosted U.S. Rep. Debbie Halvorson, D-Ill., at a plant reopening in Seneca, Ill. Halvorson toured the production facility and addressed attendees and members of the media at the ribbon cutting ceremony. Halvorson voiced her strong support for the biodiesel tax incentive, stating the need for market security within the biofuels industry.
 
 NBB member Emergent Green Energy Inc. hosted Sen. Sam Brownback, R-Kan., at its Minneola, Kan., production facility. During the press event, Brownback said tax support is key to keeping biodiesel production facilities going.
 

 These events were just a handful of contacts biodiesel stakeholders made with Congress since the lapse of the biodiesel tax incentive on Dec. 31. While the time without the incentive has been hard on the industry, NBB and its members are taking every opportunity to build relationships in Congress and to educate leaders on the benefits of biodiesel.

NBB and members work to build relationships, educate Congress

The World Bank recently released a report that reversed its claims faulting biofuels for food price increases. The National Biodiesel Board's communications team issued a press release and used social media to bring attention to the recent report. 
 
 The report, "Placing the 2006/08 Commodity Price Boom into Perspective," drastically reduces estimates of biofuels impact on commodity prices. World Bank economists now say that initial estimates were too high and note, "This paper concludes that a stronger link between energy and nonenergy commodity prices is likely to be the dominant influence on developments in commodity, and especially food, markets." 
 
 The initial study done by the World Bank was the basis of many opponents' claims in the food vs. fuel debate.
 
 "Food price inflation of 2008 was all about energy price inflation and the oil shock," said NBB CEO Joe Jobe. "The new report deflates the hot air behind the tired food vs. fuel debate and reinforces that biodiesel provides a renewable alternative to petroleum without negatively impacting food markets."

 
 The NBB release attracted many regional and industry press stories, as well as follow-up interviews on the report results.

Food vs. fuel debate deflates

French automaker Peugeot introduced a diesel-electric version of its 3008 series crossover Hybrid4 model. The car is outfitted with a 163 brake horsepower 2.0-liter 4-cylinder engine that powers the front wheels and an electric motor powered by nickel-metal hydride batteries that mobilize the rear axle, with a total system output of 200 horsepower and 500 Newton meters of torque. The car also features four-wheel drive capabilities along with regenerative braking. A turbocharged clean diesel engine is connected to an electronically-controlled six-speed transmission that can be operated in manual or full automatic mode. Shifting is done either by a console shifter or steering wheel paddles. The car can operate in three driving modes: electric-only, diesel only or a combination of both. The diesel hybrid achieves 69 miles per gallon and can go zero to 60 mph in 8.8 seconds. The car will hit the European market by spring 2011.
 
 Sun Power Biodiesel LLC will be the recipient of more than $1 million in financial assistance for equipment and infrastructure upgrades at its 3 MMgy plant in Cumberland, Wis. The funding package includes $800,000 in American Recovery and Reinvestment Act money provided to Sun Power Biodiesel through Wisconsin's State Energy Program. The state is also awarding a $349,825 Community Development Block Grant-Public Facilities for Economic Development grant to the city of Cumberland aimed to help pay for infrastructure investments including water mains, sanitary sewer, storm sewer, street construction, electric installation and lighting. The funds will be a boon for Sun Power Biodiesel as it will also provide additional working capital to sustain operations. According to CEO Ron Ruppel, the funding for the Sun Power Biodiesel project is in the form of a seven-year low-interest loan, which is expected to create 31 jobs over five years of the loan, and retain four. 
 
 California-based Biodiesel Industries Inc. has been selected by the California Energy Commission to receive an $886,815 grant to support a multi-year project that will demonstrate biodiesel production using algae in an integrated energy system monitored by the Automated Real-time, Remote, Integrated Energy System (ARIES) platform. The grant was awarded under the state's Alternative and Renewable Fuel and Vehicle Technology Program. Construction on the project is currently expected to begin in late September, and will take an estimated 29 months to complete. According to Russell Teall, Biodiesel Industries president and founder, the funding will be used to install additional equipment and infrastructure at the site, including greenhouses, ponds, containment vessels and testing equipment. 
 
 A team of researchers from Rutgers University and Harvard University is working with a well-known microorganism to aid in the production of biodiesel. The research, based on the E. coli microorganism, commonly associated with food poisoning, is being led by Desmond Lun, associate professor of computer science at Rutgers. Lun and his team are working to modify the genetic make-up of the E. coli organism, creating a strain of the bacteria that overproduces fatty acids which can then be used in biodiesel production. "Biodiesel is something that we can generate quite easily," Lun said. While E. coli is highly studied and understood, Lun noted that the work on the organism for biodiesel use will be "quite drastic" and require "major intervention." Instead of performing minor changes to specific genes he said, the work will modify large sections of the genome and put in "entirely new traits rather than modifying existing traits." 
 
 The USDA has issued an amendment for advanced biofuel producer requirements necessary for the Advanced Biofuel Payment Program, now allowing both nonrural and foreign-owned producers to qualify for the program. In March, the USDA issued a notice seeking requests for eligible advanced biofuel producers, but at that time, according to the USDA, "to receive payment, eligible advanced biofuels must have been produced in a biofuel facility located in a rural area and whose owners met U.S. citizenship requirements." After receiving several comments questioning the eligibility requirements, the USDA issued the change. One of the groups contesting the initial requirements was the Indiana Soybean Alliance, speaking in particular for the large Indiana refinery owned by Louis Dreyfus, Claypool LD Biodiesel and Soybean Processing Plant. 
 
 American Electric Power Co. Inc. announced Aug. 26 that it is seeking quotes for the supply of biodiesel to one or more of its coal-fired power plants in Ohio. Quotes were to be received by Sept. 23. According to AEP spokeswoman Melissa McHenry, the company is investigating the use of biodiesel-blended fuel oil as a possible compliance strategy to meet Ohio's alternative energy requirements. The biodiesel blend would replace petroleum fuel oil used for flame startup and stabilization. AEP is interested in using three different blends of biodiesel at is facilities. According to McHenry, B99.9 can be used from April 15 to Oct. 14. A blend of B50 can be used in the facilities from Oct. 15 through Dec. 14, while a B30 blend can be used from Dec. 15 to April 14. 
 
 Industrial biotechnology company Solazyme Inc. announced that Bunge Limited, a leading global agribusiness and food company, has joined its Series D round as a strategic investor. The strategic investment represents a foundational step for the two companies to collaborate at critical portions of a new value chain enabled by Solazyme's sugar-to-oil technology platform. Bunge is one of the world's largest originators and distributors of vegetable oils and one of the largest sugarcane processing companies in Brazil. Braemer Energy Ventures and Morgan Stanley led Solazyme's Series D round, with all major existing investors from previous rounds participating, including Lightspeed Venture Partners, The Roda Group, Harris and Harris Group, VantagePoint Venture Partners and Zygote Ventures. Existing strategic investors CTTV Investments LLC, the venture capital arm of Chevron Technology Ventures LLC, and San-Ei Gen, a major Japanese manufacturer and distributor of food ingredients, also participated.
 
 Alternative Petroleum Technologies has developed an emulsified biodiesel fuel-a proprietary blend of water, a surfactant additive and biodiesel-that eliminates the increased emissions of nitrogen oxides often associated with biodiesel use, the company said. This technology has been used in both on-road and off-road diesel engines to prove the NOx mitigation benefit of emulsified biodiesel blends relative to conventional biodiesel. APT chose biodiesel produced by Community Fuels in a demonstration of the technology at the Port of Los Angeles. The APT emulsified biodiesel fuel has reduced NOx emissions over a wide range of biodiesel blend levels. For B20, NOx emissions were 4.9 percent lower compared to conventional biodiesel and only 0.6 percent higher compared to ULSD.
 

 Ft. Collins, Colo.-based New Belgium Brewing cycled through the Midwest portion of its renowned 13-city, national bicycle festival dubbed the Tour de Fat-aptly named after the brewery's signature Fat Tire beer-and welcomed a generous supply of B100 supplied by Ames, Iowa-based producer Renewable Energy Group Inc. at events hosted in Chicago, Minneapolis and Milwaukee. REG provided B100 made from corn oil at its 30 MMgy facility in Newton, Iowa, to Fort Dodge, Iowa-based Decker Truck Lines LLC, which served as the event hauler for the Midwest portion of the Tour de Fat.

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Business Briefs

Many alternative transportation fuels such as electricity and compressed natural gas are likely to require huge infrastructure developments to reach commercial deployment, but the infrastructure requirements of biodiesel, however, are relatively minor. Even so, investment in proper infrastructure and equipment upgrades at fuel terminals can have overwhelmingly positive impacts on the industry. "It helps decrease costs, increases quality, maintains quality, and makes it more available to bigger parts of the market," says Tom Verry, the National Biodiesel Board's director of outreach and development. To date, a majority of biodiesel infrastructure has been centered in regions where state or local governments have established mandates. "As the market develops, infrastructure will develop to support it," Verry says. "Right now it is really being driven by markets, which, in turn, are being driven by state incentives."
 
 This pattern of development occurred in Washington State after its mandate was established. "Now, with Pennsylvania developing its mandate, we'll probably see more biodiesel blending at the terminal there, which is wonderful," Verry says, noting that terminals offering biodiesel can handle large volumes of the fuel, reducing costs.
 
 Biodiesel infrastructure can also lead to fuel quality benefits. If biodiesel is blended at the rack with a computerized system, Verry says, it helps maintain fuel quality. In addition, offering the fuel becomes more convenient for trucking companies. When biodiesel is not offered at the rack, fuel distributors that want to offer it have to splash blend it themselves and maintain their own storage equipment. "It takes a significant effort on a fuel distributor's part to carry biodiesel" when it is not offered at the terminal, Verry says. "If it's at the terminal, it's just as easy to get as any other product pulled from that terminal. It just makes it a lot easier for distributors to make the decision whether they want to offer biodiesel to their customers."
 
 
 Federal Funding
 
 While rack blending of biodiesel offers significant benefits to fuel distributors and potential consumers, increased prices-largely a result of the $1 per gallon federal tax credit expiration-have depressed market demand for the fuel. Although reinstatement of the credit or higher renewable identification number (RIN) credit prices would likely bring prices back down, thereby increasing demand, many terminal operators have a difficult time justifying the cost of adding biodiesel infrastructure in the current market environment. State and federal incentives are helping terminals overcome this obstacle, however.
 
 One federal program that can help support biodiesel infrastructure development is the U.S. DOE's Clean Cities program. According the Verry, biodiesel terminal infrastructure is eligible for funding under the Clean Cities Petroleum Reduction Grant program. "In the past, the program has funded biodiesel terminal infrastructure," he says, noting more than half a dozen terminals have received grants for this purpose. 
 
 Verry says the NBB worked with DOE to make sure biodiesel would qualify for these programs. When the program was formed five years ago, biodiesel was a relatively new fuel and the DOE wasn't yet familiar with its infrastructure requirements. "We worked to educate them that, yes, biodiesel could be a very important way to help meet their goals of petroleum displacement." 
 
 According to Verry, the DOE is expected to solicit applications for a new funding round late this year or early 2011. "They are going to have $15 million available to support alternative fuel infrastructure, and biodiesel qualifies for that," he says. "They will support a biodiesel terminal project, but they want to see that matched up with a very strong B20 marketing program that is directed at the retail level." The department also wants to see the applicant form a strong relationship with the Clean Cities coordinator in their region, as well as see a strong match on the proposal from an industry partner. "Of course," Verry says, "the more gallons of petroleum you displace, the better your proposal will look."

 
 
 California Development
 
 While the DOE's Clean Cities program offers funding nationwide, several state programs are also available to assist in the development of biodiesel infrastructure. California is one state that has been active in this area. The California Energy Commission recently recommended that three biodiesel terminal projects receive grant funding under its Alternative and Renewable Fuel and Vehicle Technology Program. Although the awards are contingent upon a final approval vote during an energy commission business meeting, the planned recipients are prepared to begin construction soon after the grants are awarded. 
 
 According to a Notice of Proposed Awards issued by the CEC, three companies-Community Fuels, Pearson Fuels Inc. and Western States Oil Co.-have been selected to receive a combined $3.9 million in funding. Nearly $2 million awarded to Community Fuels will support a terminal development project adjacent to the company's 10 MMgy biodiesel plant in the Port of Stockton. An additional $1.8 million is slated to go to Pearson Fuels for the development of biodiesel infrastructure at two existing fuel terminals within the state-one near Sacramento, the other near San Diego. A smaller award of approximately $70,000 will be awarded to Western States Oil for the development of a biodiesel terminal located just outside the gate of Kinder Morgan's pipeline terminal in San Jose. 
 
 Pearson Fuels plans to add three 80,000-gallon biodiesel storage tanks to the Sacramento terminal. "We are actually going to have two different feedstocks of biodiesel, likely soy and waste cooking oil," says Mike Lewis, Pearson Fuels' general manager. In addition to inline blending of diesel and biodiesel, the facility will also include inline blending of red dye diesel. "So, you have literally hundreds of different combinations that will be available," he continues. The terminal near San Diego will have a similar set-up, but will be slightly smaller and only offer one feedstock of biodiesel. 
 
 The terminal Community Fuels intends to construct will have five main components, says Lisa Mortenson, the company's CEO and founder. This includes 500,000 gallons of new biodiesel storage, product purification equipment, enhanced truck and railcar loading capabilities, red dye capabilities and a full quality assurance program. "With storage, special attention has been paid to proper storage techniques to ensure that there is no fuel degradation," Mortenson says. Since the terminal will offer biodiesel produced by Community Fuels as well as biodiesel produced by third parties, quality analysis and purification capabilities will be a part of the facility. Fuel supplied by other parties will be subject to a thorough quality analysis, Mortenson says. A product purification step will also be included to ensure that any contamination that occurred during transit is properly remedied. 
 
 
 Benefits and Market Potential
 

 Offering biodiesel at, or near, an existing fuel terminal significantly increases convenience while reducing costs. According to Bob Brown, Western State Oil's special project manager, the company's new location will better serve the regional market. The company currently offers biodiesel at another location in San Jose, he says, but that location is far from the Kinder Morgan terminal. "Anybody needing biodiesel basically has to come here first, and then drive all the way over to the pipeline to get their diesel, and then go make their deliveries," Brown says. "We're just going to make biodiesel available right outside the gate of that terminal," making it less costly and more convenient for fuel marketers to supply to their customers. 
 
 Lewis notes that Pearson Fuels' terminals will lead to similar market benefits. Inline blending capabilities will save money and time because trucking companies will no longer have to go to two fuel racks to supply biodiesel blends, he says. The inline blending capabilities of the new infrastructure will also allow more complete blending of the two fuels. 
 
 "There is very little biodiesel infrastructure in California-period," Lewis says. "There are very, very few retail facilities, and there are very few places you can go to get blended biodiesel, or different mixtures of the fuel. We think that is a critical piece that has been missing out of the biodiesel infrastructure in California. When you cripple a product by having to go to two different places, where trucks have to wait in two different lines, you have hindered biodiesel right away in competing with diesel." The extra transportation and time costs can easily price the fuel out of the retail market. 
 
 Unlike many other states, California does not have a biodiesel-specific mandate. Rather, the state is developing a Low Carbon Fuel Standard, which requires regulated parties to reduce the overall carbon value of their fuels, but does not mandate use of a specific alternative fuel. While biodiesel can, and likely will, play a role in achieving the requirements of the LCFS, Mortenson notes that maintaining the fuel's quality will be necessary for this to occur. "Biodiesel has special handling, storage and end-use requirements," she says. "In order for biodiesel to have a substantial role under the LCFS, special attention is needed to ensure the fuel meets appropriate quality standards. Increasing the volume of biodiesel supplied to the California market is an important first step, but we do believe an equally important step is ensuring biodiesel fuel quality will be reliable."
 
 Although the expiration of the biodiesel tax credit has decreased short-term demand for biodiesel, reinstatement of the incentive, higher RIN prices and enforcement of the second stage of the renewable fuels standard (RFS2) are all expected to increase demand in the long term. "The RFS2 is now being implemented, and we expect it to be a market driver in 2011, leading to more terminals offering biodiesel service," Verry says. "The home heating oil industry is also planning to start using more biodiesel, especially in the Northeast and mid-Atlantic. We expect to see more terminals develop in those regions to support Bioheat demand."
 Brown says that biodiesel demand in his region was up significantly until the first of the year. The expiration of the biodiesel tax credit and California's regulations for underground storage tanks have negated most of that market growth. "When the blending credit went away, it started to turn right around and come back down," he says. "Now it's kind of leveled off. The cities and counties are still using it, a few utilities are still using it, as are biodiesel enthusiasts, but those two developments have really made it tough. Biodiesel usage is starting to go back up, but it's real slow. One of the reasons we are developing this terminal now is we believe biodiesel is a growth product, and we are going to see more of it. We're not afraid to invest in it."
 
 The petroleum industry has been developing infrastructure for more than 100 years, Lewis says, while alternative fuels like biodiesel have only been commercially available for a decade. "The things that you take for granted with petroleum fuel, you can't necessarily take for granted with biodiesel-like how do you blend it?" he says. "To someone just entering the industry, it might not seem like a big deal. Well, it is a big deal. It's one of the missing links, so to speak. Kudos to the state of California for jump-starting some of these sorts of things, because eventually you'll get to the point where these biofuels can complete on an even footing with some of the petroleum-based fuels that have had a 90-year head start."
 
 Erin Voegele is a Biodiesel Magazine associate editor. Reach her at (701) 850-2551 or <a href="mailto:evoegele@bbiinternational.com">evoegele@bbiinternational.com</a>.

A Community Fuels employee works in the quality assurance laboratory. Quality certification of all fuel carried and sold is a fundamental component of the company's new terminal project. PHOTO: COMMUNITY FUELS

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Development of dedicated biodiesel infrastructure can lower costs while increasing fuel quality and market opportunities.

Infrastructure to Market

Biodiesel has emerged as a major global commodity. As international production capacity and markets continue to fluctuate, many countries will be looking to fulfill demand from developing markets beyond meeting the needs of their own. Ideally, fundamental biodiesel trade practices would benefit all parties involved, lowering trade deficits, bringing about fuel security, lowering greenhouse gas emissions and reducing dependency on foreign oil. When practices don't conform to these fundamental principles, they can carry long-term consequences, as seen in the case of the controversial "splash-and-dash" loophole that has festered since 2006, creating trade friction in Europe and consternation in the U.S. The World Trade Organization has set strict trade guidelines, yet complaints of unfair trade continue to mount. 

 
 Today, biodiesel economics are even more constrained. Not only is it felt in the U.S. under an absent tax incentive, but global demand for biodiesel is expected to increase exponentially to 7.8 billion gallons by 2015, according to the U.S. DOE's Energy Information Administration. This spike in demand means more consumption, and more consumption translates into increased traffic of shipments making its way across the world to meet that demand. 
 
 But trade differences seem to be widening, so if biodiesel is to flourish as a globally traded commodity that will ultimately benefit all parties involved and grow as an alternative to petroleum, action to settle these disputes must be taken. 
 
 
 The Usual Suspects
 
 Despite the closing of the U.S. splash-and-dash loophole in the Emergency Economic Stabilization Act of 2008, the European Union remained committed to keeping a watchful eye on biodiesel shipments entering its ports. In August, the EU's legislative arm, the European Commission, launched an anti-circumvention investigation into imports of U.S.-based biodiesel to Europe to determine whether previously imposed anti-dumping measures are being circumvented. 
 
 The European Biodiesel Board alleges that, ever since the EC imposed anti-dumping and anti-subsidy duties against U.S. biodiesel in June 2008, which extend five years out, disreputable trading schemes have emerged. The EBB claims that U.S.-based biodiesel is being shipped to the EU through other countries, mainly Canada and Singapore, in order to conceal its origin. The EBB also asserts that substantial volumes of U.S.-produced biodiesel continue to flood European ports in the form of blends-typically B19-not covered by the EU duties, practices that "are a mere attempt to evade the anti-dumping and countervailing duties," the EBB said in a statement. 
 
 Specifically, the EC is investigating whether U.S. producers exporting B20 or higher blends to European ports are honoring imposed duties, as not all U.S. producers are intentionally circumventing the tariffs. B19 blends are not covered by last year's tariffs, according to the EBB, whose members produce 80 percent of the continent's biodiesel.
 
 The National Biodiesel Board, representing U.S. producers, denies the claims made by the EBB and states that it intends to painstakingly confront the issue appropriately in defense of its members. "The NBB is disappointed that the EBB has opted to pursue this frivolous complaint, especially in light of the larger shared challenges that confront both the American and European biodiesel industries," says Manning Feraci, vice president of federal affairs for the NBB. "The NBB will actively defend the interests of the U.S. biodiesel industry in this proceeding and will work with the U.S. government and others to ensure that the anti-dumping and countervailing duties currently applied to biodiesel produced in the U.S. are not expanded beyond their proper scope."

 
 In addition to the NBB, the Office of the United States Trade Representative issued a similar rebuttal. "We are disappointed that the EU initiated this investigation," says spokesman Nefeterius Akeli McPherson. "Based on the evidence contained in the European industry's request, it does not appear that a circumvention investigation is warranted." According to McPherson, questionnaires have been issued to interested parties, which were due 37 days from the date of initiation, and that the investigation will likely conclude in approximately nine months from its start.
 
 The anti-circumvention action launched by the EC is backed by a parallel investigation by the EU Anti-Fraud Office (OLAF) "in order to put an end to these unacceptable trade practices which may represent more than €100 million ($129 million) of unpaid import duties," according to the EBB. In the event that "fraudulent" practices persist, unpaid duties would be collected by EU authorities retroactive three years, carrying with them heavy penalties. 
 
 In March, the EBB reported that Italian customs authorities seized 10,000 metric tons (approximately 3 million gallons) of biodiesel at the ports of Venice and Trieste. The product was declared as Canadian origin, but the EBB stated at that time that "strong evidences" signaled that it instead originated from the U.S. The product was namely offered at a discount of $150 to $180 per ton (50 to 60 cents per gallon) compared to EU biodiesel of comparable quality, and sold at a discounted price to soybean oil and rapeseed oil. 
 
 "We certainly don't believe [the seizure] is indicative of a much broader concern around circumvention," says Gordon Quaiattini, president of the Canadian Renewable Fuels Association. "We don't support any kind of practice that would result in somehow circumventing the European-imposed tariff on U.S.-based biodiesel."
 
 Canadian biodiesel exports to the EU have increased to more than 140,000 tons (42 million gallons) in 2009 from approximately 1,700 tons in 2008, according to Europe's statistics database, Eurostat. The EC's anti-circumvention investigation could be perceived as a protectionist-oriented approach, Quaiattini explains, as much of the biodiesel being imported from the U.S. is attributed to the North America Free Trade Agreement as a vehicle for meeting Canada's domestic biodiesel volume targets. 
 
 "I think the Europeans are looking at volumes going from the U.S. into Canada and believe it's purely a circumvention play to have that fuel make its way into Europe, and the reality is that just isn't happening," Quaiattini says. "U.S. biodiesel is staying in the Canadian market in order to meet mandates here. That's been the result of the increase in volume coming in."
 With one eye on U.S. imports, the EU is also concerned by the sharp increase in biodiesel exports from Argentina to Europe, which increased dramatically from approximately 5,000 tons in July 2008 to almost 100,000 tons per month in July 2009. The EBB states that Spain's biodiesel industry particularly has been hit hard by Argentine imports. 
 
 Argentina, a net exporter of biodiesel, applies a differential export tax on biodiesel made from soybean oil. The differential between the 32 percent export tax on soybean oil and the 20 percent export tax on biodiesel creates a financial incentive to process soybean oil into biodiesel rather than exporting it. Argentina's trade benefits are in effect until the end of 2011, but they may be challenged early by the EU if there is an indication that Argentina is colluding with the U.S. in selling U.S.-based biodiesel to Europe as its own. Consequently, Argentine biodiesel is expected to remain a strong competitor to European-made methyl esters in the EU. 
 
 

 Australia Takes a Stand
 
 In June, Australia's Customs and Border Protection Service launched concurrent dumping and countervailing duty investigations into U.S. biodiesel imports, specifically B99 and biodiesel blends above 20 percent, from April 2009 through March 2010. The investigation came in light of a complaint lodged by Australian company Biodiesel Producers Ltd. to local customs authorities after it noticed increased volumes of U.S.-based biodiesel being sold at a discount to Australian biodiesel on the Australian market, allegedly causing several producers to lose their share of the market. According to the Biofuels Association of Australia, the country currently houses seven biodiesel plants, four of which are operating at a combined rate of 115 MMly mainly from tallow and used cooking oil. 
 
 "We are also receiving product that has lower cetane levels than that of the Australian biodiesel standard," says BAA CEO Heather Brodie. "Thus, the imported product is arriving in Australia at lower prices than we can even buy our feedstocks for."
 
 Rather than a subsidization scheme found in the U.S., Australia employs a complex grant system to incentivize production of biodiesel. The incentive, referred to as the Cleaner-Fuels Grant, is a tax break for producers worth approximately 35 cents per liter. "So the tax outcome to the consumer is neutral," Brodie says. "This changes as of July 1 next year."
 
 Brodie adds that customs officials are investigating the complaint, and if the claims are found legitimate, then any involved parties partaking in the practice would be forced to cease shipments and penalties in the form of fines would be attached. 
 
 "The BAA understands that action taken by Customs and Border Protection can be extensive in its support," Brodie says. "Indeed, if there is a positive finding for countervailing subsidies, there is a risk that subsidized biodiesel imported between June 22 and the date of the finding may also be subject to the countervailing action. We will certainly be supporting this to ensure that the Australian industry receives an affirmative determination."
 
 U.S. biodiesel exports to Australia have been infrequent this year and not a key market for U.S. suppliers. A report produced by the USDA's Foreign Agricultural Service in July pegged U.S. biodiesel exports to Australia at less than 1 percent of total U.S. exports, making Australia a very small market for the U.S. by global standards.
 
 However, Brodie insists that the investigation would serve as a warning to importers to either end the dumping of cheap U.S. biodiesel or face possible duties, one that could mirror Europe's anti-dumping measures on to U.S.-produced biodiesel. "It's absolutely imperative for the success of the Australian biofuels industry that these practices cease, and cease immediately," Brodie says. "There is no way that the local industry can then compete on a level playing field and Australian taxpayer's dollars are actually, in effect, supporting the U.S. industry." 

 
 Bryan Sims is a Biodiesel Magazine associate editor. Reach him at (701) 738-4974 or <a href="mailto:bsims@bbiinternational.com">bsims@bbiinternational.com</a>

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Imports of pure biodiesel to the EU have been climbing, and the EBB claims U.S. producers are using third-party countries to circumvent tariffs. Source: USDA FAS

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Europe furthers its investigation into U.S., and more recently, Argentine biodiesel imports while Australia follows suit.

Balancing Act

Restaurant Technology Inc. has automated the worst job at the restaurant, according to Jeff Kiesel, CEO of RTI, and business, he says, is good. For 10 years RTI has been collecting waste cooking oil from more than 50 cities and now the Minnesota-based company has 36 operating waste oil depots optimized for biodiesel producers, with more on the way. The system "is a more sophisticated way for people to manage their cooking oil," Kiesel says. The advanced system, which features everything from computer tracking and analysis of waste-oil use, to a customized, patented design on all oil removal and transportation vehicles, is not alone, however, in the new world of waste cooking oil infrastructure and supply. 
 
 In a different time, securing a sufficient amount of waste oil feedstock was one thing, but finding an economical distribution network or pick-up system was a completely different obstacle many producers struggled to overcome. Led by companies such as RTI, the waste cooking oil supply chain is now an efficient, effective and, for some, an ever-emerging industry unaffected by tax credits or government mandates. Today, the waste oil collection and distribution industry remains mostly affected by what Kiesel refers to as the dirty part of the job: grease.
 
 
 The Supply System
 
 Picking up waste cooking oil from the local college cafeteria or the nearest fast-food joint no longer involves large open air containers or undependable supply-at least it doesn't have to. All across the country there are cooking oil distributors and extraction teams utilizing state-of-the-art systems based on vacuum trucks and computer-based recordkeeping. In New York, Tri-State Biodiesel collects oil from over 2,000 locations using specialized trucks. In Atlanta, Southern Green Industries collects waste oil specifically, and only, for biodiesel, and Orlando has a new waste oil extraction company as of March, FiltaBio, that will serve Florida and the rest of the country. 
 
 Even with the growing number of extraction companies throughout the U.S., Kiesel says the producers still have one concern about the grease. "Producers," he says, "want a clean, quality grease." To get it, they have to look no further than the likes of Tri-State or RTI, but as the saying goes, everyone's different. Pinning down the best may be impossible given the producers' range of needs, but any company similar to RTI could make the case that its system is at the top. Here's why.
 
 RTI was initially formed around bulk CO2 tank distribution, but Kiesel says as the company evolved, the RTI team wanted to figure out a way to distribute cooking oil in bulk. To do so, the team emphasized owning both the equipment and technology used for the service. Now Kiesel says, "We have to tell the story of our value, efficiency, safety and cleanliness, all of which are key things that our customers are looking for." 
 

 The system incorporates both waste oil extraction and fresh oil supply to restaurants, coupled with a software program for tracking the amount of grease used at each location. According to RTI, most restaurants bring in oil packaged in 35- or 50-pound containers, and a location that uses 400 pounds of oil per week generally unloads and stores 590 35-pound containers per year. What does this mean? For Kiesel it means a greater chance for spills, but more importantly, a sacrifice to the way waste oil is presented to biodiesel producers. "Our waste cooking oil never gets exposed to the outside elements," he says. 
 
 To avoid the elements, the system directly connects the fryers at a facility to internal storage tanks (capacity determined by each specific location) for both waste and fresh oil. When the used oil's time is up, the system automatically draws the oil into the waste oil holding tank, and, with the flip of a switch, a restaurant employee can refill the fryer with new oil. An RTI website tracks the amount of oil used at each facility, and when it's time for more, the trucks head to the location. "Our trucks carry between two and four different types of fresh oil and each truck carries a tank of waste oil," Kiesel says. Upon arrival in a patented cooking oil truck, an RTI employee can hook up a vacuum hose attached to the truck, to an external port at the restaurant and remove the waste oil from the waste holding tank in fifteen minutes or less. To avoid any mix-ups, the hoses are coupled differently, preventing waste oil from entering into the fresh oil tank and vice versa. During the process, the RTI employee doesn't require any help from the facility's employees, and they don't even need to enter the building. Once the oil extraction has taken place, the driver then takes the waste oil to a specialized depot. 
 
 While the extraction method used by RTI is a major plus for producers seeking waste oil, the depots are what Kiesel says the biodiesel plants find most appealing. "The producers like the fact they can go get full containers worth of product. Going in and getting 40,000 pounds of used cooking oil in one shot is a benefit," he says. "It is a very predictable supply." Upon arriving at a depot, producers can hook right into the 20,000- to 25,000-pound holding tanks via hose and take what they need. Some waste oil haulers come in everyday, Kiesel notes. 
 
 As an indication of how effective and dependable RTI's system is, look at Renewable Energy Group Inc. In July, REG signed a long-term contract with RTI, giving REG access to all of RTI's yellow grease helping to further "the green story" of RTI, according to Kiesel. Even though REG signed a long-term contract, Kiesel says there are month-to-month contracts, but the producer has to have good credit. To highlight the dependability of supply, RTI's customer retention rate with restaurants is greater than 97 percent, "and the 3 percent we lose happens because restaurants go out of business," Kiesel says. 
 
 Not all waste oil providers use the depot system, however. Some, like Southern Green Inc., bring the oil directly to the producers. "The oil coming out of most restaurants is not exactly ready for direct conversion to biodiesel," says Rob Del Bueno, managing partner for SGI. Because most producers have some practical limits on FFA and moisture, SGI pretreats the oil to meet specifications required by partner producers. After treatment, the oil is bulked into tanker loads and delivered, according to Del Bueno. "We determined that being a part of the recycled content feedstock supply chain was a good fit for us," Del Bueno says, "and an essential piece in both the environmental and economic sustainability of biodiesel." 
 
 
 The Middleman
 
 Aside from the extraction sector of the waste oil supply chain, there are also companies like SLM Waste. Susan Daywitt, CEO of SLM, says, "I don't own any trucks. I manage services." SLM acts as the "middle person between the vendor and the client," says Daywitt. For example she says, "We met up with Chipotle Mexican Grill and every one of their locations wanted a measure to remove cooking oil." So, SLM coordinates the oil removal from the vendor, in this case, Chipotle, and supply's a client, in most cases, a biodiesel producer, with the oil commodity. "Every entity that we work with out there has some kind of biodiesel product and about 96 percent of what I pick up for cooking oil is converted to biodiesel." 
 
 The fact that SLM Waste doesn't own or operate trucks, hoses or depots, isn't a bad thing to Daywitt. "Where I benefit greatly is in the volume of locations because," she says, "I don't take on accounts unless they are likely fifty locations and above." Typically, SLM benefits from operating as a volume entity. Rather than work on the removal side of the supply chain, SLM focuses on securing the McDonald's and Wendy's of the world to provide her clients with a dependable and quality amount of cooking oil, leaving the extraction and transport to companies contracted through SLM. Part of that focus also means looking for vendors with the same values. SLM is trying to make the environment more sustainable, says Daywitt, and doing so means working with companies that are for biodiesel. "I'm finding that there are enough companies out there that are supporting this value." 

 
 Because of this support, Daywitt says her business model is not affected by tax incentive expirations currently seen in the biodiesel industry. For SLM, there will always be enough French fries to create an ample amount of feedstock for producers, or, whoever else wants to buy the oil. However, for Del Bueno, who works more directly with producers, the tax credit issue has presented more of a challenge to SGI's survival in the waste cooking oil supply chain. "The tax credit situation coupled with low crude prices has certainly put the squeeze on producers, but we have been fortunate to be able to identify producers," he says, "who have been able to meet us somewhere in the middle, economically speaking."
 
 
 Luke Geiver is a Biodiesel Magazine associate editor. Reach him at (701) 738-4944 or <a href="mailto:lgeiver@bbiinternational.com">lgeiver@bbiinternational.com</a>.

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RTI's automated removal system removes the waste oil through one hose, while fresh oil is supplied by another hose, all without entering the site. illustration: RTI INC.

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Advancements in handling and distribution of waste oil in the supply chain are reshaping the landscape for producers working to turn fry oil into fuel.

Waste Oil's  New World

The U.S. EPA recently issued a revised set of regulations for its Renewable Fuel Standard program. RFS2 took effect July 1, and it expands the previous RFS program beyond gasoline to generally include all transportation fuel. 
 
 The RFS program was intended to require a minimum volume of renewable fuel to be used each year in the transportation sector. RFS2 extends the timeframe to increase those volumes to at least 2022. RFS2 also contains other new provisions that require attention this year, provisions that add reporting complexity and influence evaluations various parties will face during the annual attest engagements. Among these provisions is a more encompassing label for transportation fuels covered by the RFS program, which now includes motor vehicle, nonroad, locomotive and marine (MVNRLM) diesel. Also, four separate renewable fuel categories-cellulosic biofuel, biomass-based diesel, advanced biofuel, and total renewable fuel-were created, providing a renewable volume obligation (RVO) for each category. Another aspect of RFS2 is an EPA-moderated trading platform for all renewable fuel transactions; the EPA launched its EPA-Moderated Transaction System, and all renewable fuel transactions occurring on or after July 1 must utilize that platform. It is designed to help eliminate some of the common trading issues that troubled RFS1-trading a 38-digit renewable identification number (RIN) credit. Affected parties that did not register with EMTS by July 1 must register at least 60 days prior to engaging in any transactions involving RINs. Feedstock criteria that defines renewable biomass is also part of the new RFS2 program, along with a redefined RIN D Code, which verifies that feedstocks meet the renewable biomass definition. Life-cycle greenhouse gas (GHG) emissions measures for the four renewable fuel classifications are also new. RFS2 requires that those measures be less than the life-cycle GHG emissions of the 2005 baseline average for the gasoline or diesel fuel it replaces. Grandfathering for renewable fuel from existing facilities is addressed at the time of a party's RFS2 registration.
 
 All attest reports must be submitted to EPA no later than May 31 of the year following the compliance year (e.g., by May 31, 2011 for the 2010 compliance year). Here are the specific new attest requirements. 
 
 Annual report For RFS2, an auditor must obtain supporting documentation for all transportation fuel production or import volumes. For refiners, this will probably mean obtaining an inventory reconciliation analysis that includes both gasoline and MVNRLM diesel. The auditor will additionally need documentation identifying any renewable fuel blended with transportation fuel. The auditor will use this information to ensure that no renewable fuel volumes are included in the total production or import volume used to calculate the RVOs.
 
 RFS2 also requires that exporters of renewable fuel designate renewable fuel volumes-in gallons-as being one of the four renewable fuel categories.
 

 RVO For RFS2, the auditor must calculate the RVO for each of the four fuel categories. This applies to obligated parties and exporters. The four RVOs calculated are based on all gasoline and MVNRLM diesel produced or imported on or after January 1, 2010. The auditor must verify that their calculations agree with the values reported to EPA in the annual compliance demonstration report.
 
 RINs used for compliance For RFS2, the auditor must obtain documentation for all RINs used, calculate the total number of RINs used in these documents by fuel category and RIN generation year and compare these totals to those in the annual compliance demonstration report. In comparison to RFS1, the RIN usage calculations for an obligated party or exporter will become much more complex, attributable to the following reasons.
 
 Any 2008 and 2009 biodiesel RINs that were used for compliance in 2009 can be credited towards the 2010 obligation for biomass-based diesel. Obligated parties are allowed to use excess 2008 and 2009 biodiesel and renewable diesel RINs for compliance in 2010, as long as the sum of all previous generation year RINs does not exceed 20 percent of their 2010 obligation, and the 2008 RINs do not exceed 8.7 percent of their 2010 obligation. Also, the volume requirements are generally nested within one another, so that any fuel that satisfies the advanced biofuel requirement also satisfies the total renewable fuel requirement, and fuel that meets either the cellulosic biofuel or the biomass-based diesel requirements also satisfies the advanced biofuel requirement.
 
 Sampling for exporter compliance To assess compliance with RFS2, the auditor must select a sample of batches from each separate category of renewable fuel exported and review the corresponding supporting documentation (invoices, bills of lading and other documentation). The auditor must state whether this documentation refers to exported fuel as advanced biofuel or cellulosic biofuel. 
 
 RIN transaction reports RFS2 attest requirements cover RIN transactions reported under RFS1 (form RFS0201) standards, as well as those conducted via EMTS.The auditor must select a sample for each RIN transaction type-purchased, sold, retired, and reinstated-occurring during the compliance year. The auditor must then obtain contracts, invoices or other documentation, as well as the product transfer documents (PTDs) for those samples. The information in those documents is then compared to the transaction reports filed with the EPA, with any exceptions noted.
 
 RIN activity reports For RFS2, the auditor must obtain the supporting documentation used to generate the information in the RIN activity reports and recompute the components reported to EPA, reporting any exceptions. The RIN activity includes transactions conducted via EMTS, as well as those conducted under RFS1 practices, adding to the evaluation complexity.

 
 RIN generation reports Consistent with RFS1, the auditor must obtain and review supporting documentation for all batches of renewable produced or imported during the compliance year. All aspects of RIN generation must be included in review conducted by the auditor. However, a critical component of the auditors review will be ensuring that the proper RIN D Codes have been utilized. 
 
 PTDs RFS2 requires the auditor to select a sample of renewable fuel batches produced or imported, review the corresponding PTDs to ensure that they contain all of the required information and verify the accuracy. However, all regulated parties must comply with the PTD requirements listed in the regulations. 
 
 Feedstock, biomass considerations For RFS2, the auditor must verify that feedstocks for a producer or importer of renewable fuel meet the definition of renewable biomass. This is done by the auditor selecting a sample of fuel batches produced or imported and obtaining supporting documentation related to feedstock purchases. The EPA offers criteria for defining renewable biomass: planted crops and crop residue harvested from existing agricultural land cleared or cultivated prior to Dec. 19, 2007, and that was nonforested and either actively managed or fallow on Dec. 19, 2007; planted trees and tree residue from a plantation located on nonfederal land (including land belonging to an Indian tribe or an Indian individual that is held in trust by the U.S. or subject to a restriction against alienation imposed by the U.S.) that was cleared at any time prior to Dec. 19, 2007 and actively managed on Dec. 19, 2007; animal waste material and animal byproducts; slash and precommercial thinnings from nonfederal forestland that is not ecologically sensitive forestland; biomass (recent) obtained from the immediate vicinity of buildings and other areas regularly occupied by people, or of public infrastructure, in an area at risk of wildfire; algae; separated yard waste or food waste, including recycled cooking and trap grease, and materials described in RFS2 §80.1426(f)(5)(i).
 
 Producers using planted crops and crop residue from existing U.S. agricultural lands are subject to the aggregate compliance approach, and currently do not have to keep records regarding the land's status on December 19, 2007. For these producers, it is important for the auditors to verify that the feedstock documentation reviewed presents a U.S. point of origin.
 
 Engineering review RFS2 requires that the auditor obtain documentation of independent third party engineering reviews. The auditor must then review and verify those records.
 RIN transaction reports RFS2 requires listing RIN transactions conducted under RFS1, as well as those completed through EMTS.
 

 RIN activity reports For the RIN activity evaluation, RFS2 requires that an auditor validate RIN separations for RIN owners. 
 
 Prepare While many of the compliance elements of RFS1 remain intact, RFS2 brings substantial changes and increased complexity to the RFS program. IT systems must be reconfigured to accommodate the new provisions, such as the four renewable fuel categories and a redefined RIN D Code. Keeping abreast of these and any future RFS developments is essential for attaining and sustaining compliance.
 
 Wade Watson is a certified public accountant and an audit partner in Weaver's Houston office. Reach him at <a href="mailto:wade.watson@weaverandtidwell.com">wade.watson@weaverandtidwell.com</a>.

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With RFS2 came a new set of requirements for obligated parties, renewable fuel producers and importers, and RIN owners.

RFS2 Provisions and  Attest Requirements

Posted Sept. 13, 2010

 
 Columbia, Mo.-based H2O'C Engineering is studying the feasibility of recycling the fat, oil and grease (FOG) found urban sewer systems into biodiesel. The study has been funded by a $50,000 subgrant awarded by the Missouri Department of Natural Resources. According to Tom O'Connor, the owner of H2O'C Engineering, his firm has partnered with Pennsylvania-based BlackGold Biofuels for the project. 
 
 The study will focus collecting FOG from two Missouri metropolitan areas, Kansas City and St. Louis. "We are looking at what they call the 'grease-shed,'" O'Connor said. Similar to a watershed, a grease-shed is essentially the pattern of where FOG originates and how it flows into the sewer system. "We've also got a particular eye on waste water treatment facilities," O'Connor said, which will include quantifying how much FOG is present in the wastewater systems and whether or not it is feasible to convert that material into biodiesel. 
 
 "[FOG] is problematic nasty stuff," O'Connor said. "They have problems with it throughout the sewers, all of the collection pipes. It tends to clog up pipes and pump stations and that sort of thing. Optimally, it wouldn't be there. It's a complete nuisance, and we're going to capitalize on the fact that it is there. When it gets to the water treatment plants, it's generally skimmed off and landfilled. It's pretty nasty stuff, but it does have energy content, and with enough cleanup, we think we can make it into on-spec biodiesel."
 
 However, O'Connor also noted that it's important not to encourage people to think it is okay to put FOG down the drain. Ideally, the better option would be to capture that material before it ends up in the sewer. "We're going to look at capturing it whenever and wherever we can," O'Connor continued. "Optimally that would be more upstream than downstream." 
 
 The feasibility study will include an evaluation of what restaurants and other FOG producers are currently doing with their grease, and where it is flowing. "I think we'll try to get a good mental map of where the waste fats, oils and greases are being produced at scale, and what they are doing with them now," he said, which includes looking at the current system for collecting that waste and hauling it away. 
 
 The feasibility study will be complete in January 2011. "It's going to be a kind of road map or template that would help other communities forge their way down this path of capture and reuse of this fats, oils and grease waste product," O'Connor said. "A lot of people spend a lot of money fighting the fats, oils and grease in the wastewater industry. We want to demonstrate to the state of Missouri that it is feasible, and we want to encourage other communities to look at it as an alternative, and implement it, and give them kind of a road map with which to do so."

FOG feasibility study underway in Missouri

Posted Sept. 14, 2010 
 
 ME Bio Energy LLC has reopened its 5 MMgy multi-feedstock biodiesel plant in Lilbourn, Mo. The facility, which was formerly owned and operated by Great River Soy Processing LLC, had been idle for nearly three years. 
 
 According to owner and partner Mike Ellis, ME Bio Energy took ownership of the facility in May and began producing its first batches of biodiesel in August. Since ME Bio Energy restarted production, Ellis said approximately 14,000 gallons of biodiesel has been produced daily at the plant.
 
 "It was in pretty good shape when we got it," Ellis said. Stuttgart, Arkansas-based Agri-Process Innovations made final start-up repairs to the plant. "We had to replace some gaskets, motors, do some recalibrating and so on. We also had to renew with the U.S. EPA and all the regulatory licenses. It takes time."
 
 When it was owned by Great River Soy Processing, the plant was on line for only two weeks in October 2007 before it was shut down due to rising soybean oil prices. During those two weeks the refinery produced 94,000 gallons of biodiesel.

 
 Ellis said plans are to expand the plant's installed capacity three-fold to 15 MMgy in the near future. Though the Lilbourn plant is the only one currently owned by ME Bio Energy, the company is considering acquiring other idled biodiesel facilities similar in scale and annual capacity, according to Ellis."They're not cheap, but we still see value in them," he said.

ME Bioenergy restarts plant in Missouri

Posted Sept. 15, 2010
 
 The <a target="_blank" href="http://www.dieselforum.org" rel="external">Diesel Technology Forum</a> will host a 90-minute webinar titled, Biodiesel Policies and Mandates: What's Really Involved. The nonprofit organization has worked for 10 years to promote awareness about clean diesel technology, and the biodiesel-focused webinar to be held Thursday, Sept. 16, is a follow-up to an earlier webinar titled, Biodiesel: Good in Theory, Good in Practice. "The point of the webinar is to talk about some of the trends around the country and the growing use of biodiesel," Dawn Fenton, director of policy for DTF, said. 
 
 Featured in the webinar are five speakers closely associated with the industry. "This particular webinar is also looking at the policies that are going on in different states," said Fenton. To accomplish that, Shelby Neal of the NBB will present an overview of state biodiesel policies across the country and on the impact of the RFS2 in his presentation called: Promoting Biodiesel Through Policy. To give perspective on the recent suspension of Massachusetts' biodiesel mandate, Dwayne Breger, director of renewable energy for the state's department of energy resources, will speak and provide a case study. For another state-based case study, Ralph Groschen from the Minnesota Department of Agriculture will talk about Minnesota's biodiesel experience and the state's recent move to a B5 mandate. 
 
 To complete the forum, there will also be two speakers presenting on fuel quality issues. From the Tennessee Department of Agriculture, Randy Jennings will talk about programs to promote fuel quality and the importance of policy enforcement. Dr. Juergen Fischer will give an overview of the biodiesel quality management system in Germany and its relevance for the U.S. Fenton said DTF hopes to show during the webinar that fuel quality is continuing to improve. 
 
 As for the tax incentive and the questions on its importance and status, Fenton said that she hopes the webinar will be able to look beyond that, because there are significant benefits for growing biodiesel use.

DTF webinar to focus on biodiesel policies

Posted Sept. 17, 2010

 
 BBI International, a leader in globally recognized bioenergy events and trade magazines, has launched a new magazine and international conference. Biorefining magazine and the aligned International Biorefining Conference & Trade Show will provide a new communications avenue for the emergent global industry of advanced biofuel and biobased chemical production.
 
 "With this dedicated biorefining publication and corresponding event, we're producing highly focused, vertically integrated editorial content and conference programming," says Ron Kotrba, editor of Biorefining. "Starting in October, Biomass Magazine will be rebranded as Biomass Power & Thermal to illustrate the three-year-old publication's exclusive editorial focus on the biobased electricity and heat generation sectors. At the same time, the editors of Biorefining will focus on advanced biofuels and biobased chemicals. This strategy will allow us to serve our readers even more effectively."

 
 Biorefining provides in-depth coverage of advanced biomass refining-technology scale-up, project finance, policy and markets-with a core focus on the industrial, refining and agribusiness alliances defining the industry. The publication is tailored for industry professionals engaged in producing, developing and deploying advanced biofuels and biobased chemicals. Monthly, the magazine will reach more than 5,000 readers including producers, future producers and developers of advanced biofuels and biobased chemicals; investors; owners and managers of existing industrial facilities; petroleum refining executives; agricultural processing leaders; waste management executives; government and military officials; municipal decision makers; researchers and other professionals in the biorefining sector. The inaugural issue will be mailed to 15,000 industry professionals. The contents of that issue, along with daily industry news coverage, can now be viewed online at <a target="_blank" href="http://www.biorefiningmagazine.com" rel="external">www.biorefiningmagazine.com</a>. 
 
 "We're at the forefront of the next generation of biorefining, and our readers, advertisers, attendees, and exhibitors are excited about the direction we're taking to better serve them," says Joe Bryan, CEO of BBI International. "They face unique challenges and opportunities with biobased chemicals and advanced biofuels, and we're glad to play a role as a vital information and market intelligence conduit for key stakeholders in this industry."
 
 The International Biorefining Conference & Trade Show will be held November 16-18, 2010, at the Omni William Penn Hotel in Pittsburgh, Pennsylvania. It will feature more than 50 speakers within more than a dozen panels. More information can be found online at <a target="_blank" href="http://www.biorefiningconference.com" rel="external">www.biorefiningconference.com</a>.
 
 About BBI International
 BBI International produces globally recognized bioenergy events and trade magazines. In addition to the International Biorefining Conference & Trade Show, BBI owns and operates the International Biomass Conference & Expo and its allied regional events, as well as the largest, longest-running ethanol conference in the world-the International Fuel Ethanol Workshop & Expo (FEW). The company publishes Biorefining magazine, Biomass Power & Thermal magazine, Ethanol Producer Magazine, and Biodiesel Magazine, as well as a number of ancillary products including maps, directories, e-newsletters and other Web-based industry resources.

BBI International launches Biorefining magazine and conference

Posted Sept. 17, 2010

 
 The biodiesel tax credit will have to wait once again. Congress passed the small business bill shortly after returning from recess, but it did not include the extension as it previously had. Before the August recess, an earlier version of the bill contained the biodiesel tax extension proposed by Sen. Charles Grassley, R-Iowa, and was also approved by both the Democrats and the Republicans, but in a move to keep the bill alive, Sen. Harry Reid, D-Nev., stripped all amendments attached to the bill. Upon return from recess, Reid issued a procedure known as an "amendment tree," which prevents an open-amendment process, and essentially allows for a quicker passage. Grassley attempted to work through the "tree" by calling for the suspension of the procedure filed by Reid, but in a vote of 58-41, his attempt to add the biodiesel amendment via open-amendment was defeated. 
 
 Speaking before the Senate floor, Grassley urged the Senate to add the amendment. "It's kind of ironic to me that we spend weeks on a bill that's before the Senate, as legitimate as it is, to create jobs in small business when, quite frankly, there's a lot of negative things going on here in the Congress of the United States that causes people to be laid off, or because of uncertainty, not be hired back." As he has done for the past year, Grassley also highlighted the number of jobs already lost, 20,000, due to the tax credit's expiration. "I have a solution," he said, "that will create 20,000 jobs overnight," adding, "that solution is to extend the biodiesel tax credit today." 
 
 While the tax extension goes back to Washington, Grassley offered a new solution. "We need to pass the biodiesel tax credit separately." In two previous attempts, that route has been unsuccessful, but it is something he said needs to be revisited. If the bill does have an opportunity to join another piece of legislation, the energy bill from Sen. John Kerry, D-Mass., offers the best chance for the extension along with several other renewable energy tax incentives, which are, at this point, included.

Tax credit stalled again

Posted Sept. 20, 2010
 
 Golden, Colo.-based SelectIon Technologies Inc. is now offering a new product solution within its ion-transport technology called NaSelect; an on-site and on-demand sodium methylate production system available to the biodiesel industry. 
 
 The company said its NaSelect systems can generate high-purity sodium methylate efficiently and inexpensively at desired concentration in methanol, enabling on-site and on-demand production, eliminating the need for costly and hazardous transportation and storage, according to general manager Bill Christie. Sodium methylate is traditionally produced by chemical plants using high-temperature, energy-intensive processes after which the product requires storage, transportation and additional storage at the end-use location. 
 
 Another advantage of the sodium methylate produced by the NaSelect systems, said Christie, is that it can cut down water content. High moisture content can decrease yield from the transesterification process and create the formation of unwanted soaps. Sodium methylate produced by NaSelect systems contains less than 100 ppm of water. 
 
 "[Biodiesel] producers that take sodium hydroxide and methanol can have problems with the moisture content," Christie said. "The only water would be what comes in your incoming methanol."
 
 SelectIon's NaSelect sodium methylate systems can be integrated into small and large-scale biodiesel plants in the form of individual modules with minimal modifications while in operation, Christie said, adding that one large-scale biodiesel plant has already installed its system with more expressing interest. 
 

 "This would be ideal if producers turn off production for weeks or months at a time so they don't have to have sodium methylate stored on site for extended periods during those times," Christie said. "It's completely scalable from the smallest to the largest plant."
 
 Owned by technical ceramics giant, CoorsTek, SelectIon is the world's first company to offer ion transport and ion separation technologies for a broad range of industrial applications using custom ceramic membranes. The company announced its official opening Sept. 14.

On-site SMO production systems offered

Posted Sept. 29, 2010
 
 Jatoil Ltd. announced on Sept. 28 that it is moving into the second stage of development with its joint venture, PT Jatoil Waterland, which will effectively double its jatropha land holdings in the Central Java, Indonesia, to 1,000 hectares (2,471 acres). According to the company, nurseries to grow jatropha seedlings will be established in the coming weeks. It is currently expected that those seedlings will be planted in November. 
 
 The proprietary jatropha strains utilized by the joint venture have been specifically selected for high yield, pest resistance and regional acclimatization, said Tony Crimmins, Jatoil's business development manager. "Initial crosses resulted in 1 [metric ton] of oil per hectare," he continued. "With the application of selection techniques we now can achieve 2 to 2.25 tons per hectare. Naturally, this is a condition of soil fertility and rainfall. We expect continued growth in the yield of jatropha, and there is a belief that this could double over the next 5 years with the application of cloning and hybrid techniques." While Crimmins said jatropha has a long way to go before it is fully optimized, he is confident that the current strain is suitable for use as it is a cross between local jatropha and a Vietnamese variety. 
 
 Jatoil's joint venture has additional plans to increase its holdings to 10,000 hectares within the next 12 months. As with all new projects, Crimmins said developing the systems and building relationships is what takes the most time. "We have come through the initial stage and can start planning the next 8,000 hectares," he said. "The main obstacle to developing these fields is capital, as there is enough jatropha parent stock available to prepare for another mass plant-out, and tried information and management systems to ensure it is done correctly."
 
 The initial stage of PT Jatoil Waterland's project was completed three months ago. It involved the purchase of land planted with two-year-old trees. Those plants have already been harvested. In July, the resulting oil was shipped to an international consortium of airline companies for use as jet fuel. "The initial shipment was a small 10-ton quantity to prove the supply chain," Crimmins said. "The oil was filtered below 5 microns and stored in a container to remove oxygen so that the shipment arrives clean with low fatty acids." Jatoil expects to have a more consistent supply of the oil beginning in February 2011, with substantial exports beginning in late 2011, he continued. 
 

 Jatoil does not currently plan to sell its jatropha oil into the biodiesel market. Rather the company will initially focus on the aviation and power generation markets. "Aviation is a significant growth market, as it will require significant quantities to liquid fuels for decades to come, and there are a limited number of candidate alternative fuels," Crimmins said. "Our business motto is to follow the greatest profit, and…the aviation industry shows the best potential." However, he also noted that Jatoil is looking at alternative oil-bearing crops for possible sale into the biodiesel market.

Jatoil to increase Indonesian holdings

Posted Sept. 20, 2010
 
 California-based Aurora Algae, previously known as Aurora Biofuels, recently announced its transition from pilot-scale to commercial-scale algae production. 
 
 "For the past four years we have focused on developing high-performance, versatile strains of algae in preparation for full-scale commercialization-and to be able to say we have reached the end of that development process is exciting," said Aurora CEO Greg Bafalis in a press release announcing the development. "What we've created over that time is a photosynthetic algae-based platform for growth-growth in terms of the number of high-value, low-cost products we will provide our customers; growth in the number of addressable markets for our company; and growth in the impact we will have on some of the world's most pressing challenges including carbon emission reduction, fresh water conservation, and global demand for protein and sustainable Omega-3 production."
 
 According to information released by Aurora, algae-based biodiesel is one of four specific product lines that it will produce. The release also states that Aurora's algae strains have been optimized for open saltwater ponds. In addition, the company notes that its algae strain is lighter in color that wild varieties, which aids in allowing sunlight to penetrate deeper into the ponds, increasing yields. 
 
 While Biodiesel Magazine was not able to reach a representative of Aurora Algae for further comment, the company's website states that it has been operating a 3 ton per year pilot-scale algae production facility since August 2007. According to Aurora's website, a commercial production facility that is under development will be capable of producing 40,000 tons of algal biomass each year.
 

 Regarding biodiesel production, Aurora claims that its technology can overcome several problems that have plagued the algae industry, including contamination and harvesting and extraction process. According to the company, it does not use a centrifuge approach to algae collection. Rather, it has developed a harvest method that utilizes technology commonly employed in the waste-water industry.

Aurora Algae announces milestone transition

Posted Sept. 22, 2010
 
 Renewable Energy Group and ARES Corp. announced on Sept. 22 that REG will acquire biodiesel assets in Clovis, N.M., from ARES, which will concurrently invest an additional $8 million into REG in an all common stock transaction.
 
 Burlingame, Calif.-based ARES, an engineering, risk management, software/IT and project management company, owned the 15 MMgy facility in Clovis.

 
 "In support of RFS2, REG continues to expand its national footprint of production facilities and related logistics to better serve our growing customer base of regional and national businesses," said Daniel J. Oh, president and chief operating officer of REG. "We consider this position in the Southwest to be a long-term, strategic move for our company. ARES' strategic investment provides REG access to ARES' world class engineering, risk management and government contracting expertise."
 
 Dick Stuart, ARES CEO, said, "REG has proven its leadership in the biodiesel industry and is exceptionally well placed to lead the industry recovery. ARES is proud of its efforts to contribute to America's quest for energy independence and a cleaner environment. In our new economy we believe the best and most likely place for our investment to succeed is with REG; therefore we are contributing assets and investing anew to help move REG and its efforts forward."
 
 About the new arrangement, Clovis Industrial Development Corporation Executive Director, Chase Gentry, said, "Renewable Energy Group has shown strong biodiesel industry leadership when it comes to creating green collar jobs at its industry leading biodiesel production facilities. We look forward to REG's involvement in this ongoing green economy project as the City of Clovis, State of New Mexico and the Southwest region look to reduce our dependence on imported oil and improve our air quality."
 
 Viant Capital represented REG in the transaction.
 
 SOURCE: REG

Renewable Energy Group welcomes ARES Corp. as a strategic investor

REG acquires New Mexico biodiesel facility

Posted Sept. 22, 2010
 
 LPP Combustion LLC has successfully demonstrated the clean generation of green, dispatchable, renewable electric power from a 30kW Capstone C30 gas turbine using biodiesel. The LPP Combustion skid-based technology vaporizes liquid fuels into an inert gas, creating a substitute natural gas trademarked LPP Gas, which is then used to power combustion devices. The company behind the technology, LPP Combustion, has installed a demonstration unit in Columbia, Md., to obtain operational experience regarding the clean combustion of a wide array of liquid fuels, including biodiesel. 
 
 Initial demonstrations have used an LPP Combustion fuel preparation skid together with a Capstone C30 gas turbine. The Capstone turbine, designed for operation on natural gas, is connected to the local utility grid. The LPP Combustion hardware allows operation on a range of liquid fuels without modification of the combustion device, delivering LPP Gas in the same manner as natural gas. 
 

 Generally, combustion of biodiesel in gas turbines requires extra refinement of the fuel due to impurities that can be harmful to gas turbine components. However, by vaporizing the biodiesel into nitrogen before introducing it to the gas turbine as LPP Gas, the LPP Combustion hardware substantially reduces operational problems associates with conventional burning of biodiesel in gas turbines. 
 
 Emissions from the C30 gas turbine, operating at full load on LPP Gas derived from biodiesel, are 5.6 ppmv NOx and 9 ppmv CO, at 15 percent O2, improving on the baseline natural gas emissions. 
 
 The fuel tested was a canola-based biodiesel provided by Northern Biodiesel, an Ontario, N.Y.-based company. The C30 gas turbine was on loan from Harbec Plastics, a plastics manufacturer also based out of Ontario. Harbec Plastics intends to convert all 25 of its Capstone C30 gas turbines to operation on biofuels using the LPP Combustion technology, thereby eliminating the CO2 footprint from its plastics manufacturing. 
 
 LPP Combustion previously announced successful operation of the Capstone C30 gas turbine on naphtha and on ethanol using the same LPP Combustion system. LPP Gas offers the cleanest use of renewable fuels in existing or new gas turbines while providing dispatchable, green energy to meet Renewable Portfolio Standards mandates. The LPP Combustion system allows for fuel flexibility, improved heat rate, and reduced maintenance while providing a greater than 80 percent decrease in emissions associated with conventional burning of liquid fuels. 
 
 SOURCE: LPP COMBUSTION LLC

Vaporizing biodiesel for natural gas turbines

Posted Sept. 22, 2010
 
 State policies and mandates continue to play an important role in the growth of the biodiesel industry, and during a webinar titled Biodiesel Policies and Mandates: What's Really Involved, the issue was addressed by several speakers with state-level experience. Sponsored by the Diesel Technology Forum, the webinar featured Shelby Neal, director of state governmental affairs for the National Biodiesel Board. Neal pointed out that in 2010, 180 to 230 MMgy of biodiesel has been mandated or incentivized for use at the state level. For 2015, he noted an expected increase, roughly between 430 to 490 MMgy. 
 
 Neal said that "the two really big phenomena that have the potential to significantly increase the market share for biodiesel and also provide significant environmental benefits" are related to bioheat mandates and low carbon fuel standards at the state level. As both a marketing and practical perspective, the heating oil industry has benefited from biodiesel-based heating oil, and will continue to do so, he said. During the past year, 12 states considered bioheat mandates, and most notably for 2010, New York City passed a B2 mandate. The possibility of a low carbon fuel standard requiring a certain level of greenhouse gas reduction may also play a large role for the industry, because as Neal stated, biodiesel is currently the only readily available, American-made advanced biofuel. 
 
 Along with the two main state-level factors affecting the industry, Neal also pointed out the unique situation the biodiesel remains in. "In my view," he said, "the petroleum industry is the most powerful and profitable industry that has ever existed on the face of the earth and they pretty much control the fuel in many cases from the time it leaves the ground to the time it hits your tanks." This situation is difficult Neal said, because "we are in the awkward position of being Pepsi and asking Coke to sell our product in their vending machines… and they aren't really interested in selling out product in their vending machines." 

 
 Ralph Groschen, senior marketing specialist for the Minnesota Department of Agriculture, also spoke during the webinar about the effect of the petroleum industry. Groschen, who helped lead the most successful state-led mandate program for biodiesel in the U.S., said that during the implementation of the Minnesota biodiesel mandate program he recognized an aspect of the petroleum industry's role in fuel transportation and use he believes the biodiesel industry could learn from. "The petroleum industry only addresses issues and problems very quietly and that is something the industry needs to look at." 
 
 A mandate, he added, does not happen in a vacuum, however. The problems with the Minnesota-led mandate of biodiesel use never had any significant amount of problems to be dealt with, he pointed out. In 2005 for example, there were reports of high flash points and high glycerin amounts in the B100. The high flash points he said could have occurred due to gasoline contamination from transport or truck, and the batch of fuel with high glycerin levels were removed from terminal storage tanks by the producers. "In each case, the product was removed and the mandate resumed." The main issue with problems that arise because of the expanded biodiesel use in state, he said, are difficult to respond to because in most cases the reporting and details used to decipher the real problem are hard to fully obtain.

Follow-up: Webinar dissects state policies' role

Posted Sept. 27, 2010
 
 Kingsport, Tenn.-based algal technology company Renewable Algal Energy LLC received $3 million in grant money appropriated under the U.S. DOE's Small Business Innovative Research Phase III Xlerator program for its project titled, "Algal Biodiesel via Innovative Harvesting and Aquaculture Systems." 
 
 According to RAE CEO Jeff Kanel, the company intends to use the funds to further refine-and eventually scale up-its patent-pending algal aquaculture, harvesting/dewatering and extraction technologies at its demonstration facility in Arizona, which has an aquaculture capacity of approximately 200,000 liters (52,800 gallons). 
 
 One of RAE's short-term goals is to refine its harvesting technology, which currently has a collection rate of 200 gallons per minute, Kanel said. RAE intends to improve upon that rate to be capable of harvesting thousands of gallons per minute, he continued. "Our harvesting technology also doesn't require the use of chemical additives built up within the aquaculture media," he said. "We believe that gives our technology some more advantages."
 
 The integration of RAE's patent-pending algal technology package with upstream and downstream processes can be applied to different aquaculture systems, including open ponds and photobioreactors. Though its technology would be a viable platform for current and future biodiesel producers , RAE is focused on licensing its algal technologies to major chemical and petrochemical companies looking to add algal-based products to their portfolio, Kanel added.
 
 While initiating the Phase III project, RAE also intends to evaluate potential sites for a future location of a 100-acre production facility.
 

 RAE was one of 32 organizations to receive grants awards under the DOE's SBIR Phase III Xlerator program in amounts ranging from $500,000 to $3 million. The grants support clean energy technology commercialization and are aimed to allow small businesses that have previously received Phase I and II SBIR awards to scale up production of their proven technologies.

Renewable Algal Energy awarded DOE grant

Posted Sept. 27, 2010
 
 Many senators will soon hit the campaign trail for fall elections, but before they go the National Biodiesel Board and the Advanced Biofuels Association have joined together to remind them of the importance of extending the biodiesel, renewable diesel and alternative fuels tax credits. 
 
 In a letter addressed to Senate Majority Leader Harry Reid, D-Nev., Senate Committee on Finance Chairman Max Baucus, D-Mont., Republican Leader Mitch McConnell, R-Ky., and ranking member of the Committee on Finance Sen. Charles Grassley, R-Iowa, the two advanced biofuel groups noted the "urgent" and "noncontroversial" need to reinstate the incentives. The letter states, "We respectively ask that you expeditiously act to retroactively extend the biodiesel, renewable diesel and alternate fuel tax incentive through 2011 prior to adjourning for November elections." 
 
 "Before the Senate goes home to campaign," Manning Feraci, vice president of federal affairs for the NBB said, "it should do the right thing and seamlessly reinstate the biodiesel tax incentive." The joint-effort between the NBB and the ABFA is relatively new, but Feraci noted that both "share the opinion that Congress should pass an extension of these biofuel incentives before they adjourn for the year." Passing a retroactive tax incentive would not only restore several jobs lost from the expiration of the tax incentive, but also allow entrepreneurs and producers the ability to access capital needed to produce advanced biofuels, the letter also stated. 
 
 ABFA President Michael McAdams said if Washington doesn't act before lawmakers leave for the campaign trail, they are essentially putting a hold on our nation's energy and economic security. "It is critical that policies already put in place will continue to incentivize and reward continued innovation in superior performance technologies and products so that we can reach renewable fuel goals much higher than current standards," he said. "Industry cannot be expected to continue to build and develop fuels of the future if the government does not hold up its end of the bargain."

NBB, ABFA team up to support tax credits

Posted Sept. 28, 2010
 
 Midwest Biodiesel Products LLC received a $300,000 loan from the St. Louis Business Development Fund and St. Louis Private Fund. The company intends to use the loan to rehire laid-off staff at its 12 MMgy multifeedstock plant in South Roxana, Ill., and buy soybean and vegetable oil, according to President Terry Zintel.
 
 "We brought back one [worker] already and we plan to bring back a couple more," he said, noting that the company had to lay off five employees since April. "The funding should also help us increase biodiesel sales as well."

 
 Though the facility has a production capacity of 12 MMgy, the plant is producing "at a fraction of that," Zintel said, citing the lapsed biodiesel tax credit that expired in December as the primary culprit behind depressed production volumes. 
 
 All things considered, however, Zintel said he's thankful for the infusion of funds, particularly in an economy in which banks have become highly averse to lending money to plants in worse financial standing than MBP. "Right now, banks are not loaning to the biodiesel industry because of the uncertainty of the biodiesel tax credit situation," he said. "[Banks] all say 'come back once the tax credit situation has subsided.'"
 
 The St. Louis Business Development Fund, a private for-profit corporation owned by 27 bank shareholders and three local economic development agencies, invests in growing companies that demonstrate significant potential for success, but are unable to access sufficient senior debt to finance organic growth or acquisitions. The Private Fund investors consist of 22 local business leaders interested in promoting economic growth in the region.

Illinois plant receives loan to rehire workers

Posted Sept. 29, 2010
 
 The Advancing Biofuels Beyond the Basics program, run by the Ohio Department of Development, is now accepting applications from biodiesel and ethanol companies seeking funding for refining equipment purchases. With $8 million in available funding initially given to the state-run program through the American Recovery and Reinvestment Act, each eligible applicant can receive anywhere from $500,000 to $1 million. To be eligible for the funding, all applicants must be located within the state, invest a minimum of 25 percent of total costs needed for the equipment, "demonstrate completion" within 12 months and also provide a direct economic impact to Ohio. 
 
 Governor Ted Strickland understands that combining strengths of the state's agriculture and manufacturing sectors can make Ohio a leading player in biofuels, according to Mark Shanahan, energy advisor to the governor. "Changing the way we produce energy makes our communities more sustainable and creates jobs, and business opportunities," he added. 
 
 The applications will be judged on a 150-point scale through four main areas. The first, project readiness, will evaluate the project's evidence to move forward and operate within 12 months. Evidence will include agreements with feedstock providers, engineering documents, equipment quotes or invoices, letters of support from the community and regulatory permit documentation. 
 
 The second criteria will be based on the project's financial ability to provide 25 percent of the costs, which can be shown though financial approvals for balance of project cost. The third, economic/employment impacts on Ohio, will be scored based on job creation and retention during construction phase. The last of the four, energy impacts and innovativeness, will look for a biofuel conversion process and performance that is described in detail. 
 

 A conference is set for Oct. 6, 2010, for anyone interested in the funding opportunity. To register for the program, email: <a target="_blank" href="Recovery.Strickel@em.ohio.gov" rel="external">Recovery.Strickel@em.ohio.gov</a>.

Refining equipment funding available in Ohio

Posted Sept. 29, 2010
 
 Neste Oil recently applied for patents covering technology developed to produce microbial oil from waste and residues with help from various yeasts and molds. The oil could then be used as feedstock for the company's NExBTL renewable diesel process. Research work began with the Aalto University School of Science and Technology in late 2007, and since then the process technology challenges have been resolved. Microbial oil produced this way has already been refined into NExBTL renewable diesel.
 
 "Our research is currently concentrating on ways of extending the range of raw materials we can use for producing NExBTL, and we're particularly focusing on nonfood materials capable of making a significant contribution to reducing greenhouse gas emissions," said Neste Oil's Biotechnology Manager, Markku Patajoki. "Our work has shown that waste-based microbial oil represents an excellent opportunity, and we believe it's a very promising future raw material." 
 
 Following the success of the lab work, the emphasis will now shift to evaluating microbial oil's potential for pilot-scale production. Commercialization is possible by 2015 at the earliest.
 
 Research has shown that agricultural residues, together with waste and side streams from industry, represent an excellent source of energy and carbon for yeasts and molds, which feed off organic compounds.
 
 "Sugars from cereals and sugarcane can also be used, but agricultural and industrial waste and residues are even more interesting materials from a sustainable point of view," said Neste Oil Researcher Perttu Koskinen.
 
 "We're currently in the process of evaluating a number of alternative raw materials for processing using yeasts and molds. Agricultural residues such as straw or an industrial byproduct such as glycerol from traditional biodiesel processes, for example, are suitable for producing microbial oil using yeasts or molds." 

 
 The Aalto University School of Science and Technology concentrated on the initial phase of identifying which yeast and mold strains are the most suitable for industrial use and developing the systems technology needed to ensure that microbes generate sufficient levels of oil. Neste Oil, for its part, focused on leveraging its expertise to extract the microbial oil produced from the biomass.
 
 "Collaboration with Neste Oil on the project has gone very well," said Professor Simo Laakso of the Department of Biotechnology and Chemistry at Aalto University. "We've been able to draw on our know-how in the scientific fundamentals to identify new sources of raw materials for producing renewable fuels. This kind of applied scientific research is essential for generating new innovations that can go on to be commercialized."
 
 SOURCE: NESTE OIL

Neste banks on waste-based microbial oil

Posted Sept. 29, 2010
 
 BioEnergy Atlas, a Web portal that provides access to two bioenergy analysis and mapping tools, was released on Sept. 28 by the U.S. DOE's National Renewable Energy Laboratory. The visualization screening tools, BioPower and BioFuels Atlas, allow users to layer related bioenergy data onto a single map to gather information on biomass feedstocks, biopower and biofuels potential, production and distribution. BioEnergy Atlas is an improvement over current tools in that it enables more timely and accurate analysis of the potential of given sites to be successful biomass producers.
 
 BioEnergy Atlas users will include government and state agencies, universities, the petroleum and pipeline industries, research institutions, vehicle manufacturers, investment firms, GIS (Geographic Information Systems) companies, private citizens, and media. Technology providers and biofuels project developers can easily view areas with the highest concentration of available feedstocks, and target those areas for project development. The tool also highlights geographical areas where more infrastructure is needed, which helps federal and state policymakers identify areas for focus. The tool combines the geographic visualization of regional resources and energy usage with high-level yield calculations to provide first-level screening of project feasibility and state bioenergy potential.
 
 The BioEnergy Atlas is accessible at <a target="_blank" href="http://maps.nrel.gov/bioenergyatlas" rel="external">http://maps.nrel.gov/bioenergyatlas</a>.
 
 Users of the tools can select and apply a multitude of geographic data layers including a variety of biomass feedstocks, existing biofuels, biopower and traditional power plants, alternative and traditional fueling stations and energy use statistics. The BioPower updated functionalities include query, analysis and state view. The query function allows users to access data behind the map and to select and download data from a selected region or single point on the map. The analysis function offers common conversion factors that allow users to determine the potential biopower or biofuels production for selected feedstocks in a specific area. The state view function provides biofuels data from a single state including summaries of state energy use and fueling infrastructure and resources. The state view function is available in the BioFuels Atlas today, and a similar function, specific to biopower data, will be available in the BioPower tool later this year.
 
 NREL developed the BioEnergy Atlas with funding from the U.S. EPA's Blue Skyways Collaborative and DOE's Biomass Program. The tools are built on the NREL OpenCarto platform, a collaborative mapping and analysis architecture that hosts applications on hydrogen, transportation, concentrated solar power, and now biomass fuels and power. Data are provided by DOE, EPA, and the USDA. 
 
 NREL is DOE's primary national laboratory for renewable energy and energy efficiency research and development, and is operated for DOE by The Alliance for Sustainable Energy LLC.

 
 SOURCE: NREL

NREL releases BioEnergy Atlas

Posted Oct. 1, 2010
 
 On Sept. 30 the National Biodiesel Board hosted a webinar to showcase New York's Bioheat program. The event was moderated by NBB Director of Sustainability Don Scott, and featured presentations by New York City Council Member James Gennaro, who chairs the council's Committee on Environmental Protection, and New York State Deputy Secretary for the Environment Peter Iwanowicz. 
 
 Already the nation's largest municipal user of biodiesel, New York City recently implemented a law requiring 2 percent biodiesel content in home heating oil. 
 
 "[New York City burns] about 1 billion gallons of heating oil per year," Gennaro said. "That's a heck of a lot of heating oil, and I saw this [mandate] as a great way to move in a very good direction and help us clean the air in New York City," noting that the city is working to clean the air in several says. 
 
 According to Gennaro, interest in the Bioheat mandate stemmed, in part, from the state's successful policy of using biodiesel in its fleets. "We had a wonderful record of using biodiesel in our heavy-duty fleets, and that worked out really well for us," he said. "I wanted to get some of that benefit to the heating oil system in New York City."
 
 Gennaro worked to craft the bioheat legislation for several years. "With biofuels, as with other things in life, there is a more intelligent and less intelligent way to do anything," he continued. "At the end of the day, we put together a bill that will bring in a 2 percent mandate. So, we'll have a B2 blend. This will be for our No. 2, our No. 4 and No. 6 grades of heating oil…When all is said and done, the 2 percent mandate will displace about 20 million gallons of No. 2, No. 4 and No. 6 heating oil."
 
 Although the original legislation crafted by Gennaro called for a steadily increasing Bioheat mandate, eventually rising to 20 percent, the final bill was for 2 percent only. However, he notes that the mandate only sets a minimum biodiesel requirement; it does not prevent consumers from using higher blend levels. "There are folks that sell B5, B10 and B20," he said. "People are free to buy that, and it's my hope that when we have more availability of Bioheat…people will avail themselves of this good fuel, and on their own try to seek blends that are higher than B2." However, B2 will be the minimum baseline for the foreseeable future, he said. 
 

 According to Gennaro, the mandate will not only help to clean up the air in New York City, it will also provide a powerful driver to increase investment in local biodiesel production facilities. "We're trying to build this vital green industry here in New York City," he said. "We've had many people who have done well growing jobs here, and we're very happy about that." The mandate will help jumpstart investment in additional infrastructure and production facilities by affording those in the industry a more stable environment for investment, and guaranteeing a market for the fuel that is produced. 
 
 "My hope is that this is replicated throughout the country, because you can clean the air, you can grow green jobs, and you can be totally sustainable," Gennaro said. "This is the direction that we should be moving."
 
 During his presentation, Iwanowicz spoke of his own positive experiences using Bioheat, as well as state policies that have been developed to support the use of biodiesel-blended fuels. 
 
 The two major policy initiatives that are driving biodiesel use in New York State are Executive Order 142 and a tax credit that has been established to encourage the use of Bioheat, said Iwanowicz. 
 
 Executive Order 142, which was signed in 2005 and extended in 2008, mandates that state vehicles and state facilities use an increasing amount of biodiesel blended fuels in both transportation and stationary heating applications. While the order was highly successful in increasing the use of biodiesel-blended fuels by state agencies, the state's recent budget crisis resulted in a modification to the program that gave fleets some relief from high biodiesel prices. While the transportation portion of the policy was suspended, Iwanowicz notes that the policy for biodiesel-blended heating oil has remained intact.
 
 While Executive Order 142 pertains to the government sector, New York State has also invested in a tax credit program to support Bioheat use in the private sector. According to Iwanowicz, 1 cent per gallon per percentage of biofuel, up to a maxim of 20 cents per gallon of heating oil, can be claimed as a tax credit within the state. The credit was extended for 5 years in 2008. 
 
 The state had three primary rationales in developing these policies to support biodiesel use, said Iwanowicz. "Bioheat, in particular, has strong environmental health, economic, and energy security rationales," he said, noting that blending home heating oil with biodiesel reduces sulfur content, reducing particulate matter. The health benefits of Bioheat can result in huge economic savings in the future, he continued.

Webinar addresses New York biodiesel policies

Posted Oct. 1, 2010
 
 A demonstration plant located at the Oceanside Wastewater Treatment Plant in San Francisco constructed to produce biodiesel fuel from restaurant trap grease has begun operation. 

 
 The plant is the first municipal wastewater program in the United States to create biodiesel from the waste feedstock, according to developer URS Corp. The demonstration treatment plant will process 10,000 gallons per day of trap waste, recovering 300 to 500 gallons a day of brown grease and converting it to biodiesel. 
 
 The program is an extension of the San Francisco Public Utilities Commission's <a target="_blank" href="http://www.sfgreasecycle.org" rel="external">SFGreasecycle program </a>to prevent fats, oils and grease (FOG) from being released into city sewers, where they solidify and constrict wastewater flow, causing back-ups and damage to sewer lines. 
 
 For the past three years, the SFPUC and URS have worked to develop a comprehensive FOG Control Program that considers the needs and characteristics of restaurant operators, city government, residents, environmental agencies and the commercial grease industry. The start-up of the brown-grease-to-biodiesel plant demonstrates the potential for urban areas to develop similar programs to collect and utilize FOG.
 
 It is estimated that the demonstration plant will save about 1,200 metric tons of carbon dioxide equivalents a year with a commercial scale facility of more than 40,000 tons a year. A URS-developed, 12-month research and testing program will be used to monitor the brown grease recovery and biodiesel production plant's performance and to establish a business case that will facilitate program replication by other municipal agencies.
 
 The program was financed by federal funds and approximately $1 million from the California Energy Commission.
 
 SOURCE: URS CORP.

Brown grease demo biodiesel plant starts up

Posted Oct. 4, 2010
 

 BDI-BioEnergy International AG recently won a contract to upgrade Altorricon, Spain-based Aragon SL, a biodiesel plant that began operating in 2008 designed to process virgin oils, with an installed production capacity of 100,000 metric tons (about 30 million gallons) per year. The order is worth around €4.6 million ($6.3 million USD). The upgrade will allow the plant to utilize multiple feedstock such as cooking oil and animal fats for the production of high quality biodiesel meeting the European Standard EN 14214. 
 
 The operator has selected the upgrade of the system with the patented BDI's multifeedstock technology to process locally available raw materials such as waste cooking oil while increasing operational efficiencies. This corresponds to the changing market situation, and the trend toward producers leveraging more waste products to produce biodiesel. BDI states its system is already meeting the EU criteria for next-generation biofuels in terms of sustainability and carbon reduction.
 
 Of the feedstock the plant will be able to process once the upgrade is complete, Wilhelm Hammer, CEO of BDI, said, "This is not the food of the poor, but the waste of the rich." 
 
 The scope of the contract includes engineering, installation and commissioning, in addition to all of the process steps for distillation, and steel work and associated equipment, and seamless integration into the existing system. The technology for the distillation is built in cooperation with the German BDI subsidiary UIC GmbH, a leader in short-path distillation.
 
 Completion of the turnkey system is planned for September 2011. 
 
 SOURCE: BDI-BIOENERGY INTERNATIONAL AG

BDI wins upgrade contract for Spanish plant

Posted Oct. 6, 2010
 
 The results are in for a new biodiesel versus diesel exhaust exposure study. The study, Biodiesel versus Diesel: A Pilot Study Comparing Exhaust Exposures for Employees at a Rural Municipal Facility, indicates "that B20 use dramatically reduces work area respirable particle and formaldehyde levels compared with petroleum diesel." Performed by Keene State College of New Hampshire at a recycling center, the work was aimed at combining established industrial hygiene and environmental air monitoring methods to evaluate diesel and biodiesel blend exposure profiles in an occupational setting utilizing nonroad diesel equipment. "Overall," the study stated, "this suggests that biodiesel blends reduce worker exposure to and health risk from petroleum diesel exhaust."
 
 The team of researchers that completed the study used the same facility equipment and alternated between diesel fuel and a B20 blend, measuring the equipment cabin and the perimeter of the work area for known toxins such as benzene, 1,3-butadiene and formaldehyde. During the process, the researchers noted two areas of difficulty in the testing approach, "limited measurements of existing human exposure and difficulty developing techniques to identify a unique signature that distinguishes diesel exhaust from background air pollution." The techniques used to measure for pollutants involved a high-sensitivity real time light scattering monitor called a Haz-Dust EPAM-5000 along with various filters. For sampling days, "researchers and students performed equipment calibrations before and after sampling, positioned the equipment in the same locations, and regularly performed operational checks on all of the equipment."

 
 Four pieces of equipment were in the study, a large front-end loader, a small front-end loader, a skid steer and a propane-powered forklift, and the same employees operated the equipment for the duration. The facility consisted of a single, large building with one large bay door and no mechanical ventilation. "Although biodiesel may hold promise for reducing exposure to PM and carbonyls, more comprehensive biodiesel data are needed to determine if these reductions are replicable and statistically significant," the study notes. However, while the study states that diesel effects are still somewhat unknown, "Biodiesel may offer immediate, nationwide risk reduction opportunities, even as the debate regarding the level of health risk posed by diesel continues." 
 
 The research team was made up of several members from Keene State College including: Nora Traviss and Brett Amy Thelen of the Department of Environmental Studies, Jaime Kathryn Ingalls of the Department of Safety Studies and Melinda Dawn Treadwell of the Department of Professional and Graduate Studies. To view the study, click <a target="_blank" href="http://www.environmental-expert.com/resultEachArticlePDF.aspx?cid=6477&codi=192169" rel="external">here</a>.

Report: B20 reduces worker health risks

Posted Oct. 6, 2010
 
 Green Equity Holdings Inc. recently entered into a letter of intent with Florida-based clean energy solutions provider Strategic Energy Supplies Corp. to jointly build and deploy brown grease waste recycling facilities across the country. The transaction, contingent upon further due diligence review and other conditions, is expected to be finalized by the end of October. 
 
 Under terms of the deal, SESC would be tasked to initiate construction of at least three brown grease recycling plants within the first year of entering into the proposed joint venture arrangement. With an ambitious goal of deploying 50 waste brown grease recycling plants nationwide within the next five years, GEH's mission is to become the leading single-source provider of brown grease feedstock in the U.S. 
 
 According to GEH, the company will invest $1.5 million for each plant under construction in the first year in exchange for scaled ownership interests in the proposed plants. GEH would have a 70 percent ownership interest in the first plant, a 60 percent ownership interest in the second, and a 50 percent ownership interest in the third and all subsequent plants. Each plant would be capable of producing between 50,000 and 100,000 gallons of brown grease a day. A tipping fee of 10 cents per gallon would be issued to haulers that deliver the waste grease to each recycling plant location. 
 
 GEH, the funding arm of the joint venture, anticipates that approximately $6 million of total equity would be needed to develop the first operating plants and to propel the company's reach throughout the U.S., according to Raymond Dias, GEH's CEO and president of Fusion Capital Investment Corp., a majority stakeholder in the company. 
 

 "A key aim for this proposed joint venture is to capitalize on the next evolution of utilizing recyclable brown grease to create cost-effective and renewable alternative sources of energy," he said. "It's anticipated that suppliers of trapped brown grease will be able to turn an expense, like transportation and legal disposal of brown grease, into a new revenue stream, with the joint venture partners making a strategic investment in the high-growth green energy sector to increase shareholder value."
 
 GEH plans to outsource all the operational tasks as part of the joint venture, including sales and marketing to SESC. Each plant will utilize SESC's patent-pending Thermal Depolymerization2 grease trap waste technology, which the company said is capable of separating the waste brown grease into three saleable components: oil, nutrient-rich water and organic solids. 
 
 Each facility will have the ability to annually produce between 450,000 to 900,000 gallons of oil, 650,000 to 1 million pounds of organic solids and 10 to 20 million gallons of nutrient-rich water. The oil is expected to be marketed as feedstock for biodiesel production, high-grade glycerin or a base for cosmetic products. The organic solids are expected to be marketed and sold as soil additives or fuel sources while the nutrient-rich water is anticipated to be sold to farming operations, golf courses and municipalities.
 
 Each plant is expected to be sited near metropolitan areas between 800,000 to 1 million in population. SESC has identified its first site, but the company wouldn't disclose the specific location.

Brown grease recycling partnership formed

Posted Oct. 6, 2010
 
 A new skid-mounted pilot esterification unit, developed by Dow Water & Process Solutions with funding from the alternative fuels incentive program in the Pennsylvania department of environmental protection, is now making its way around the state's biodiesel plants. 
 
 Al Schulz, senior scientist with Dow Water & Process Solutions, told Biodiesel Magazine that the transportable pilot unit was created to help teach customers and suppliers in Pennsylvania how to use Dow's Amberlyst BD20 solid acid esterification catalyst for optimum results. 

 
 Bayer Technology Services helped design the system and Pittsburgh-based CTI Biofuels LLC built and initially ran the unit for Dow. United Oil Co., also out of Pittsburgh, supplied feedstock for the trial runs, and took finished product back once converted, Schultz said. 
 
 "So far customers have come to see the unit while at CTI," Schultz said, adding that the pilot system is "now at its second location, where they are getting ready to turn it on and use it with their feedstock and their plant conditions." 
 
 Schultz said biodiesel producers want on-hand experience esterifying new feedstock before running it through their actual plants and reactors. "It makes customers feel more comfortable," he said. Another important role for the pilot unit is to help producers nail down the reaction kinetics, the duration, temperature and so forth, so by the time producers run reactions in their plants, they have honed down the process particulars for best results. 
 
 "The source and purity level of oil-each will have a little different reactivity rate when looking at esterification," Schultz said. "And with the pilot, we've been able to build a model where we can predict what kind of conversion people can expect to see with their type of feedstock, you know, and whether it's run at 80 or 85 degrees for an hour or two hours." 
 
 The pilot is a 500-gallon batch esterification system. "The purpose is to show esterification so, once reacted, the customer would take that material now devoid of free fatty acids right into their transesterification process," he said. 
 
 The state grant came to $752,000, and Schultz said, "We spent every penny on building, designing and getting that reactor to work." He noted, however, that this is an experimental reactor with adjustable flow rates, temperatures and other parameters so the process could be changed on the fly, adding that "the cost is a lot higher than for a typical production unit."

Dow pilot esterification unit tours Pennsylvania

Posted Oct. 6, 2010

 
 Neil Young made a special appearance Sept. 23 in support of his "Repowering the American Dream" Lincvolt automotive environmental initiative. The event, which was held in the lobby of the Hollywood, Fl.-based Seminole Hard Rock Hotel & Casino, offered attendees the rare opportunity to get an up-close look at Young's prototype, zero-emissions 1959 Lincoln Continental convertible. 
 
 According to Don Scott, the National Biodiesel Board's director of sustainability, Young and his team have been working on the Lincvolt project for nearly three years. "The press event last week was kind of an unveiling," he said, noting that the vehicle is currently on a road-trip that will wrap-up at Farm Aid in Milwaukee, Wis., later this week. 
 
 During the event, Young remarked that he likes old cars and he likes driving on American roads. However, he felt a bit guilty over the gas consumption of the old convertible, so he set out to find a team of skilled professionals that could make the vehicle more sustainable to drive. "He was interested in biodiesel, so he wanted to do a little demonstration of what could be done with the right technology and the right fuel," Scott said. 
 
 The Lincvolt is a diesel electric hybrid that uses a biodiesel-powered microturbine engine to recharge batteries that power an electric motor. The combination of biodiesel and electric batteries gives Lincvolt a range of more than 400 miles, while the efficient, biodiesel-powered engine and electric motor allow the vehicle to achieve 80 miles-per-gallon. 
 
 "The U.S. biodiesel industry could support as many as 78,000 good American jobs and displace 97 million barrels of imported petroleum," said Young during the event. "In 2009, biodiesel added $4.1 billion to the nation's Gross Domestic Product and supported jobs in all sectors of the economy while reducing carbon and other harmful emissions."
 
 At the time of its release, the 1959 vehicle was the heaviest convertible ever built by Ford, weighing in at 6,200 pounds. If the Lincvolt team can achieve such a high level of efficiency using more than 3 tons of recycled Detroit steel, the possibilities of pairing the hybrid technology in modern vehicles should result in even more significant efficiencies, said the NBB in a press release issued after the event. "I think the irony of this big, old, heavy car was something that Neil enjoyed and thought would get peoples' attention," Scott said. "If we can get this kind of performance out of this old car, imagine what we could do with modern vehicles."
 
 "It's doubtful that Ford engineers from 1959 could have predicted the transformation that would eventually become Lincvolt," Scott continued. "But it's clear that today's engine manufactures are planning for renewable fuels. Every major engine manufacture approves some level of biodiesel in their vehicles today. Ford is leading the industry by proudly displaying a B20 logo right on the door of every 2011 Super Duty pickup. This indicates they build an American truck that burns American fuel." 
 
 According to Young's website, the Linvolt emits less greenhouse gases that any hybrid electric or conventional car with a fuel economy rating of less than 80 miles per gallon. In fact, Lincvolt's per-mile turbine emissions are estimated to be only 60 percent of the Toyota Prius' emissions. Based on average grid emissions in the U.S., charging the Lincvolt with its biodiesel fueled capstone microturbine generator create 48 percent less emissions than would result from charging the engine via the power grid.

 
 "Lincvolt could be rated as a zero emissions vehicle, and using biodiesel would emit less CO2 than even an all electric car powered by the California grid," said Steve Gillette of Captsone Turbine Corp., which manufactured the turbine engine used in the vehicle. 
 
 According to Scott, the Lincvolt initiative should help educate the public on the many benefits of biodiesel. "At the event, there were lots of people who came out to see Neil Young-the legend, the rock star," he said. "We started talking about these American jobs and how much money we send overseas [to purchase crude oil.] They really got interested in that…So, that was very positive."
 
 The Lincvolt is accompanying Young on tour stops around the nation to help raise awareness about saving the environment. The vehicle's journey will be documented on film to help publicize how this innovative technology can help generate clean power in the 21st century.

Rockstar legend Neil Young's 1959 Lincoln, converted to a zero-emissions, biodiesel-powered hybrid 

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Lincvolt: Neil Young's biodiesel-powered hybrid

Posted Oct. 11, 2010
 
 BBI International announced today that it has officially changed the name of Biomass Magazine-the world's leading biomass industry trade publication-to Biomass Power & Thermal, a move that characterizes the magazine's heightened focus on biobased electricity and heat. 
 

 BBI International announced last month that it would split its flagship biomass publication into two distinct titles, one focused on power and heat, the other focused on fuels and chemicals. The new magazine, Biorefining, was launched in September, and today's unveiling of Biomass Power & Thermal-the new name, logo and website-completes the second phase of the transition. 
 
 "By dividing Biomass Magazine into two separate publications we are serving our readers and advertisers in both sectors more effectively," said Joe Bryan, CEO of BBI International. "Extensive market research, industry consultation and long-term planning went into this decision. Splitting a successful, growing magazine into two separate titles is not an easy thing to do, but it's the right thing to do for our readers. They'll be better served by two publications with niche editorial scopes." 
 
 Biomass Power & Thermal will retain Biomass Magazine's familiar Web address, <a target="_blank" href="http://www.biomassmagazine.com" rel="external">www.biomassmagazine.com</a>, while the website itself has been completely rebuilt. The publication's online visitors will continue to find news, commentary, features and technical contributions within a cleaner, easier-to-use website. The site's homepage more prominently features up-to-the-minute breaking news on biobased power and thermal energy while continuing to house the world's most extensive collection of biomass related articles. The site also has improved navigation and search functionality while allowing readers to share and comment on every article, column and blog. 

 
 In keeping with the contemporary styling and functionality of the new website, the print publication also received a subtle makeover. Readers will appreciate the fresh new look of the October issue of Biomass Power & Thermal. As a testament to the industries the magazine serves, its new design is both efficient and practical. Inside each issue of Biomass Power & Thermal, readers will continue to find articles and columns from the editors they trust and the industry voices they rely on-including monthly columns from the Biomass Power Association and the Biomass Thermal Energy Council. 
 
 Visit the new website at <a target="_blank" href="http://www.biomassmagazine.com" rel="external">www.biomassmagazine.com</a>. The October issue of Biomass Power & Thermal is now available online. 
 
 About Biomass Power & Thermal 

 Biomass Power & Thermal magazine is a monthly trade publication tailored for industry professionals engaged in utilizing biomass for the generation of electricity, thermal energy or both (CHP). In addition to policy, regulation, project finance, technology and plant management, the publication maintains a core editorial focus on biomass logistics: generating, cultivating, collecting, transporting, processing, marketing, procuring and utilizing sustainable biomass for power and heat. Biomass Power & Thermal's international readership includes owners and managers of biomass power, CHP, and district heating facilities; pellet manufacturing plant owners and managers; professionals working in captive feedstock industries-from food processing and waste management to agriculture and forest products manufacturing-and a growing number of industrial manufacturers, municipal decision makers, researchers, and technology providers engaged in biomass utilization globally. Biomass Power & Thermal and Biorefining now co-produce the International Biomass Conference & Expo and its three allied regional events.
 
 
 About BBI International 

 BBI International produces globally recognized bioenergy events and trade magazines. BBI owns and operates the International Biomass Conference & Expo and its allied regional events, as well as the largest, longest-running ethanol conference in the world-the International Fuel Ethanol Workshop & Expo (FEW). The company publishes Biomass Power & Thermal magazine, Biorefining magazine, Ethanol Producer Magazine, and Biodiesel Magazine, as well as a number of ancillary products including maps, directories, e-newsletters and other Web-based industry resources.
 
 SOURCE: BBI INTERNATIONAL

Biomass Magazine unveils new name, website

Posted Oct. 11, 2010

 
 Flint, Mich.-based OnSite Energy LLC has launched a unique line of self-contained and on-site processing machines capable of converting virgin and used cooking oils into biodiesel. 
 
 Operational manager Jeff Woolman said OnSite Energy's biodiesel processors are fully automated and, with a simple push of a button, the units can produce high-quality biodiesel in less than 20 minutes. 
 
 "When we first got into this, we wanted something where users could come up with little to no time to start this process and then come back to it and have biodiesel ready for them," Woolman said. "Just drain the glycerin and you're ready to go."
 
 OnSite Energy offers three processing unit models, each having distinct output volumes. The Genesee processor model, the smallest of the three, features a 110 gallon mixing tank with an 80-gallon output. The Huron and Marquette processor models have a production output of 150 and 220 gallons, respectively. The processors can also be mounted on trailers for easy storage and portability. The price tag for a Genesee model, Woolman added, is about $12,000. 
 
 Woolman added that the processors are economical. If a user chooses to purchase soy oil, for example, at an estimated commodity price of approximately $3.30 per gallon, the user would roughly break even. Using used cooking oil, Woolman said, would be more economical as biodiesel could be produced for less than $1 per gallon after paying off the machine. 
 
 "They can get their free feedstock from local restaurants," Woolman said. "We've also nailed down a lot of suppliers for the used cooking oil."
 
 OnSite Energy's biodiesel processors are the result of a two and a half-year collaborative effort with the USDA, Mott Community College's Regional Technology Center, the Center for Advanced Manufacturing, and the Michigan Corn Growers Association. 
 
 Woolman said the company intends to market its biodiesel processors primarily to interested municipalities, agricultural operations, school districts and/or commercial truck fleets looking to produce/supply their own biodiesel. One local school district in Flint has purchased a Genesee model, with the Mass Transportation Authority also expressing interest in acquiring one.

OnSite Energy's automated, self-contained Genesee model features a 110-gallon mixing tank and can produce 80 gallons of biodiesel per batch. /// PHOTO: ONSITE ENERGY LLC

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Michigan startup offers small-scale processors

Posted Oct. 12, 2010

 
 Biodiesel will soon be part of the curriculum for some Kentucky schools. After receiving a $10,000 TogetherGreen fellowship from an alliance between Toyota and the Audubon Society, Kenya Stump, the manager of the environmental assistance branch of the Kentucky division of compliance, will form the Kentucky Biofuels for Schools Program. 
 
 The objectives of the program include encouraging Kentucky high schools to teach a biofuel-based curriculum, enable the production of biodiesel in the schools and make it possible for the participating schools and communities to use biodiesel. "Teaching biodiesel especially in a laboratory setting makes perfect sense," Stump told Biodiesel Magazine. "It provides great hands-on experience, students get immediate feedback and it provides a great avenue for teaching concepts such as pollution prevention and resource conservation." 
 
 The primary components of the program include participation by the schools, according to Stump, and development of public-private partnerships. Stump is still developing participants for the program that range from the Kentucky Pollution Prevention Center to the Kentucky Clean Fuels Coalition. "We have also [reached out to] biodiesel producers within Kentucky and are currently working to set up meetings and bring them on board as potential school sponsors and mentors," Stump said. Several schools have been identified for the program through the state's Green and Health Schools program and Stump hopes to have a diverse mix of schools selected that vary in geographic location and experience with biofuels. 
 
 "We know that there are schools just interested in teaching concepts, while others are ready to implement laboratory exercises and actually start producing biodiesel in small quantities," Stump said. To do so, the program is currently in search of sponsors that can purchase and provide biodiesel processing equipment for the schools. "These sponsors would also act as mentors to the local high schools as the begin implementation." 
 
 For Audubon President, David Yarnold, Stump is already doing her part. "Kenya is the kind of person who can make a real difference in the health of our environment and the quality of our future," Yarnold said. Stump notes the importance of biofuels program for the students as well. "Once a student learns how to take a waste product and turn it into a usable commodity like fuel, then that is a lesson that will stay with them forever and have multiple applications in their lives and careers. Biofuels education teaches students a different way of looking at the world around them." 
 
 For those interested in becoming involved in the program there are three main ways: sponsor a school's purchase of equipment, become a partner to promote and support the program, or be a mentor to a school. After one year of the program, Stump will evaluate and report on the measurable results.

Biodiesel headed for Kentucky classrooms

Posted Oct. 12, 2010
 

 Winter canola might soon be the crop of choice for Pacific Northwest farmers, thanks to research by an Agricultural Research Service agronomist and his research partners. The scientists say this multitasking annual plant can be used to control weeds, supplement animal feed, produce biodiesel-and spark a new revenue stream for the Colville Confederated Tribes. 
 
 ARS agronomist Frank Young was part of a team that evaluated production protocols for winter canola in the Pacific Northwest. ARS is the principal intramural scientific research agency of the USDA. Young works at the ARS Land Management and Water Conservation Research Unit in Pullman, Wash.
 
 Pacific Northwest farmers who produce winter wheat must also find ways to control the germination and growth of weeds in their crop fields. But winter canola typically hasn't been a good candidate for weed control because it struggled to emerge in the fall and often couldn't survive the winter.
 
 Young and his partners varied planting dates, planting rates, and other establishment techniques for winter canola and found they obtained consistently good yields-an average of 1,300 pounds per acre-when they planted in mid-August on 28-inch row spacing. This also gave the seedlings enough time to bulk up before the onset of winter. 
 
 These findings have encouraged wheat farmers in Washington's Okanogan County to begin planting winter canola to rid their fields of feral rye and diversify their market options. As a result of this research, USDA's Risk Management Agency decided to extend insurance coverage to farmers in Douglas and Okanogan counties to protect them from canola crop losses.
 
 Some of the experimental winter canola crops were grown on land leased from the Colville Confederated Tribes, which now plans to purchase the canola seed from the growers and process it in a biodiesel production facility that they own. 
 
 Then they plan to sell crushed canola meal back to the farmers for supplementing cattle feed and use the biodiesel to power the tribes' fleet of logging trucks, school buses, and other vehicles. These plans align with the USDA priority of developing new sources of bioenergy.
 
 Read more about this research in the October 2010 issue of Agricultural Research magazine, available online at: <a target="_blank" href="http://www.ars.usda.gov/is/AR/archive/oct10/canola1010.htm" rel="external">http://www.ars.usda.gov/is/AR/archive/oct10/canola1010.htm</a>.

Winter canola being harvested in north-central Washington /// PHOTO: USDA-ARS

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ARS helps canola become first-class crop

Posted Oct. 13, 2010

 
 Legislation currently pending in Pennsylvania could negatively impact the state's biodiesel industry. On Oct. 6, the Pennsylvania House of Representatives adopted an amendment, SB 901, which seeks to impose a new fuel tax on businesses that sell biodiesel fuel by amending the state's Biofuel Development and In-State Production Incentive Act of 2008. 
 
 According to John Kulik, executive vice president of the Pennsylvania Petroleum Marketers and Convenience Store Association, the amendment would levy a new fee, or tax, on companies that sell biodiesel within the state. Under the amendment, each convenience store, service station, truck stop or other retail location selling biodiesel would be required to pay a new $100 fee in addition to existing local, state and federal fees and taxes. 
 
 According to information released by PPMCSA, some of its members have also expressed concern over a $5,000 blender fee contained in the proposal. The association notes that the new fee could severely impact its members' ability to import regular diesel and blend biodiesel from surrounding states, which could have a significant impact on fuel distribution patterns and the price of fuel. 
 
 The amended legislation establishes a total of four of these registration fees:
 
 - $5,000 for each biodiesel manufacturing facility within the state
 - $5,000 for each location within the state where biodiesel is blended
 - $100 for a person, other than a person that operates at a biodiesel production or blending facility, that sells, offers sale or otherwise transfers biodiesel or a biodiesel blend within the state, whether or not the that person operates a location within Pennsylvania where such activities are conducted
 - $100 for each location, in excess of one, within Pennsylvania where a registered person sells, offers for sale or otherwise transfers title of biodiesel or a biodiesel blend
 
 "This tax, which is imposed on distributors and retailers who are required by the state to sell this kind of fuel, adds more costs to handling the fuel," Kulik said. "While some might argue that $100 does not seem like much, for businesses that have multiple locations, the tax can accumulate to thousands or tens of thousands of dollars. It's a tax that they and their customers will be forced to pay."
 
 Under the amendment, the fees would be used to support the state Department of Agriculture's enforcement of the on-road B2 mandate that took effect in May. According to the newly amended legislation posted to the Pennsylvania Legislature's <a target="_blank" href="http://www.legis.state.pa.us/CFDOCS/Legis/PN/Public/btCheck.cfm?txtType=PDF&sessYr=2009&sessInd=0&billBody=S&billTyp=B&billNbr=0901&pn=2260" rel="external">website</a>, the B2 mandate for on-road fuel use was scheduled to take effect one year after in-state production of biodiesel reached 40 MMgy. The mandate has been scheduled to step up to B5 one year after in-state production reaches 100 MMgy; B10 one year after in-state production reaches 200 MMgy; and B20 one year after in-state production reaches 400 MMgy. 

 
 PPMCSA has been working to push alternative bipartisan legislation through the state legislature. The bill, titled "The PA Clean Heat Initiative," is designed to streamline the petroleum distribution system. "The House chose to ignore this far-reaching proposal, which would have balanced operating cost savings and enforcement costs, and passed the tax increase instead," Kulik said. "We're disappointed that such an important amendment was rammed through the House as the legislative session is winding down. Our association will oppose passage of Senate Bill 901 in its current form in the event the House takes up the measure on final passage."

Penn. bill would establish new biodiesel fee

Posted Oct. 13, 2010
 
 The state of Massachusetts recently renewed its biodiesel contract with Chelsea, Mass.-based fuel distributor Dennis K. Burke Inc. The bid enables all public entities to purchase biodiesel from Dennis K. Burke, including department of public works, state hospitals, correctional facilities and universities. 
 
 Massachusetts is expected to purchase about 750,000 gallons of blended biodiesel under this contract, reducing its carbon footprint and benefiting the state's residents. 
 
 Chairman of the Board Ed Burke said the company has been awarded the state contract since 2007, and previously had supplied the state with biodiesel blends under pilot programs. 
 
 "It's important for us to be identified as the state's biodiesel supplier," Burke told Biodiesel Magazine. "It makes it hard for others though, because we have to bring so much stock in that it definitely gives us an advantage in this space. It's a critical mass issue." 
 
 Burke said state agencies are mandated under executive order to use biodiesel blends, and this contract allows them to purchase biodiesel blends at a discount to retail. 
 

 The Chelsea-based supplier also won a separate bid to supply biodiesel-blended fuel to the city of Boston. 
 
 Massachusetts passed a B2 biodiesel mandate that was set to take effect in July, but the state postponed it largely due to the expiration of the federal blenders tax credit. Even so, Massachusetts' public entities and fleets continue using biodiesel, as they have been for several years. "We're proud to remain Massachusetts' primary biodiesel vendor," Burke said. 
 
 For more than a decade, Dennis K. Burke has been a pioneer in bringing biodiesel and alternative energy sources into the mainstream. Along with being the first retailer of biodiesel and E-85, the company has been partnered with the state's major biodiesel usage pioneers, including Harvard University, Taunton State Hospital, National Grid and the City of Boston.

2217-1294332306.jpg

Ed Burke, chairman of the board for Dennis K. Burke Inc. (Burke Oil), said, "It's a critical mass issue," in reference to his company winning the Massachusetts state, and the city of Boston, biodiesel blend supply contracts. 

2218-1294332306.jpg

Burke Oil awarded Mass. biodiesel contract

Posted Oct. 13, 2010
 
 Researchers at the University of Connecticut have found that industrial hemp-based biodiesel has superior cold flow properties. According to UConn Professor Richard Parnas, incorporating hemp biodiesel may make the resulting fuel blend more amenable to cold weather usage. 
 
 While industrial hemp cannot be legally grown in the U.S., it is produced in many other areas of the world for the purposes of making rope, textiles and other products. "We thought the seeds generally would be thrown away or wasted [in these areas]," Parnas said. "That's not entire true, but in many cases it is true-and that oil could be a byproduct of the hemp industry that could then be made into a value-added product, like biodiesel. That was our initial interest."
 
 The UConn research team produced a small, lab-scale batch of hemp biodiesel. "We used a subset of the ASTM tests in order to evaluate it," Parnas said. "One of the critical points of biodiesel is it doesn't have very good cold weather properties…A good biodiesel will have a cloud point in the vicinity of 0 degrees centigrade. What we found when we evaluated the cloud point of our biodiesel made from hemp using the standard measurement technique, we couldn't find a cloud point down to minus 20 degrees centigrade."
 
 Due to the unusual-and amazing-cloud point results, Parnas said his team performed additional testing on the fuel. "At the University of Connecticut we have some more sensitive instrumentation that we can use to look at crystallization and other types of light-scattering events," he continued. "We used that more sensitive instrumentation, and we found what we call a weak cloud point at about minus 5.6 degrees centigrade." 
 
 "We think biodiesel from hemp is an easy biodiesel to make," said Parnus, noting that it doesn't require any special processing, and that the cold weather attributes are the most significant finding. 

 
 According to Parnas, hemp biodiesel could benefit the hemp industry by providing producers with an additional revenue stream. "For the biodiesel industry in general, it could provide a blending stock to lower the cloud point and improve the cold weather properties without going to any special effort," he continued. "If you've got a certain amount of hemp-based biodiesel, it might make a very nice winter blend."
 
 Additional members of the UConn research team include graduate student Si-Yu Li; James Stuart, a member of the Department of Chemistry; and Yi Li, a member of the Department of Plant Sciences. Results of the team's research were recently published in Bioresource Technology. 
 
 According to Parnas, the team does not currently have plans to continue research on hemp biodiesel. "We showed that we could convert the hemp oil to biodiesel very straightforwardly," he said. "I'm not sure there is a whole lot of research issues as far as engineering issues go. I could imagine a lot of research issues in terms of industrial economics and optimization of crop yields and crop types." However, Parnas also noted it is unlikely for a U.S. entity to undertake that line of research on its own. 
 
 "There is such a negative attitude towards hemp in the United States, it would probably actually be very difficult to get research funding to do this [here]. I might be much more interesting to do it in collaboration with someone overseas, and we haven't made those connections yet, but it might come out of what we've been doing. I'm not sure."
 
 In addition to the research on hemp-based biodiesel, UConn is actively engaged in other biodiesel research projects as well. Over the past few years, UConn researchers have patented a continuous biodiesel reactor that simultaneously results in a 99 percent conversion while removing 80 to 90 percent of glycerin all in one reaction vessel, Parnas said. "We also have a patent pending on a waste oil pretreatment process," he continued. "We recently received a DOE grant that will enable us to by the industrial versions of this equipment, so we can set up a pilot-scale production facility." That facility, if run at full commercial capacity, would be able to produce 200,000 gallons of biodiesel annually. 
 
 "As part of the pilot plant, we're also going to be installing some new types of bioreactors to convert the glycerol waste product into high value products," Parnas said, noting that he is not currently able to disclose more information on what products, due to the fact that the process might be subject to additional patent applications. "The main points of our pilot-scale project will be to test our patented and patent-pending technologies in an industry operation, and also to test some new technologies for handling the glycerol waste stream." According to Parnas, the pilot scale facility could be operational in late 2011.

UConn work shows benefits of hemp biodiesel

Posted Oct. 13, 2010
 

 Two chemists from Brown University have found a way to convert both triacylglycerols and free fatty acids found in waste vegetable oils using a single catalyst vessel. While the common method for converting waste vegetable oils requires two separate reactions, the chemists, Aaron Socha and Jason Sello, used Lewis acidic metal catalysts scandium triflate and bismuth triflate in a single reaction to create the methyl esters. In a paper titled, "Efficient conversion of triacylglycerols and fatty acids to biodiesel in a microwave reactor using metal triflate catalysts," the two said, "Our objective was to identify catalysts that could be used in an industrial context for the conversion of fatty acids and tricylglycerols into biodiesel." Based on their objectives, the two looked to acidic metal catalysts used in organic chemistry. 
 
 The metal catalysts did not initially perform using standard transesterification methods. "As was the case for transesterification reactions, the metal catalysts did not catalyze the desired reaction in refluxing methanol," the two said. "However, in a microwave reactor, both scandium triflate and bismuth triflate were remarkably effective catalysts for the conversion of fatty acids." Using a microwave reactor that reached 150 degrees Celsius versus the standard 60 degree temperatures under current methods, the reactions occurred in roughly 20 minutes. They used a Biotage Initiator microwave reactor using 0.2-0.5 mL and 0.5-2.0 mL microwave reaction vials equipped with magnetic stirring bars. 
 
 According to Socha, microwave irridation is an under-examined component of biodiesel research and the fact that microwave irridation works with these catalysts while conventional reflux does not, illustrates that point. 
 
 "Remarkably," they said, "the recovered scandium triflate did not lose any catalytic activity," which allowed for the recycling of the catalysts up to five times at a 97 percent efficiency rate. Although the energy required to run the microwave reactor is greater than typical methods, the overall energy usage is less because of the shorter time required for the reaction, according to the chemists. "Our findings suggest that both scandium and bismuth triflates have utility in the industrial production of biodiesel from components of plant and animal derived oils and fats." 
 
 The chemists used reagent grade FFAs and TAGs and have not at this point attempted any reactions with low-grade grease. According to Socha, they have not been able to recover reusable catalyst from transesterification reactions, only FFA esterifications, Socha said. The team has, however, spoken with a biotech venture based in Texas on a scale-up process for esterification using the bismuth triflate.

Brown researchers develop single-vessel catalyst method for WVO conversion

Posted Oct. 19, 2010
 
 Initially tested and built as part of a course, the Loyola University-Chicago Center for Urban Environmental Research and Policy's (CUERP) Biodiesel Program has evolved into the first school program in the U.S. to be licensed by state and federal authorities to produce and sell biodiesel. The program received approval by the U.S. EPA, Internal Revenue Service, Illinois Department of Revenue and the National Biodiesel Board.
 
 According to lab manager Zach Waickman, the program is expected to produce approximately 2,500 gallons of biodiesel during the school year (from August 2010 through May 2011) from waste cooking oil collected from campus cafeterias and a local restaurant in the area. "We wanted to turn what was a waste product for the university into something useful," Waickman said. 
 
 The university will sell a B100 to current and future customers. Its first customer is The Free Enterprise System Inc., a university shuttle bus service that runs between its Chicago-based Lake Shore and Water Tower campuses. The Free Enterprise System shuttle buses currently run on B7 blends, said Waickman, but with an increased supply of biodiesel should eliminate the use of nearly 3,000 gallons of diesel fuel every year in the company's six Loyola buses.

 
 In addition to producing and selling biodiesel, the university's biodiesel program will also sell the lab's "BioSoap" at its campus stores and select retailers across Chicago. The BioSoap, made mostly from the byproduct glycerin, retails for $7.99 or $2.49 for a sample size. "Part of our planning from day one was 'how do we deal with our glycerin'?" Waikman said. "It was a pretty quick second step to develop soap recipes." 
 
 Formed in 2007, the university's biodiesel program was awarded a $10,000 grant from the EPA to implement a new educational model on campus called "Solutions to Environmental Problems" or STEP. This interdisciplinary program brought together faculty, staff and students from all over the university to tackle a tangible environmental problem Loyola was facing. From there, the students identified, designed and implemented an array of projects to contribute to the solution, including fuel-production research, the drafting of a biofuels legislative bill, the development of a documentary film, the establishment of the biodiesel lab and outreach to local high schools that allowed teachers to deliver the STEP curriculum to their students.
 
 The biodiesel program received an additional $75,000 grant from the EPA for high school outreach and is now its own stand-alone program. Waikman said the profits the program reaps for selling its biodiesel goes towards supporting lab operations and for high school outreach to help educate students about the benefits of biodiesel.
 
 "We like the idea of it being a small sustainable business that the [college] students get to run," Waikman said. "But, it's still heavily focused on education."

University program produces, sells biodiesel

Posted Oct. 20, 2010
 
 With an already venerable track record for setting up E85 blender pumps across the country, San Diego, Calif.-based Pearson Fuels landed a $1.8 million grant from the California Energy Commission to install in-line biodiesel blending at two fuel terminal locations: one in Sacramento owned by InterState Oil and another in El Cajon owned by SoCo Group.
 
 According to Mike Lewis, general manager of Pearson Fuels, installing in-line biodiesel blending capabilities would be a boon for the two companies, as it would reduce cost and allow for tighter quality control. For example, Lewis said, having in-line biodiesel blending at InterState Oil's 600,000-gallon fuel terminal would also eliminate the need for splash blending, a process where a fuel tanker truck goes to a biodiesel facility, fills up on biodiesel, then goes to a fuel terminal and fills up the rest of the tanker with regular diesel. 
 
 "Splash blending takes time and money," Lewis said. "When we're done, a fuel truck driver will be able to pull up and punch in, for example, B20 red dye soy-based biodiesel. He'll get 20 percent biodiesel mixed with 80 percent diesel." 
 

 Lewis added that when the in-line blending units are installed at the fuel terminals, fuel truck drivers will be able to choose biodiesel made from different feedstock such as soybean oil or used cooking oil. 
 
 According to Lewis, the company will provide biodiesel and installation services. He added that the two projects will cost a combined $3 million, with the grant expected to pay for about 60 percent of the project cost. Pearson Fuels is matching approximately $1.1 million for contributed equipment, Lewis said.

Pearson Fuels lands grant for in-line blending

Posted Oct. 20, 2010
 
 On July 1, the new RFS2 rules took effect requiring registration and new trading methods for biodiesel blenders and retailers hoping to capture Renewable Identification Number credits and maintain trading flows. Ninety days later, after a full quarter of operation, Hart Energy hosted a webinar that highlighted the first driving season under the new rule.
 
 Despite the sharp decline in biodiesel production after the expiration of the tax credit, Gary Haer, vice president of sales and marketing for Renewable Energy Group Inc., said there is enough volume to satisfy prescribed RFS2 requirements. He added that 1.8 billion gallons of capacity are currently registered with the U.S. EPA. The current obligation under the new RFS2 rule is 1.15 billion gallons. "There's more than enough capacity already registered with the EPA to address the current and foreseeable future need of biomass-based diesel RINs for the industry," he said.
 
 Coleman Jones, biofuels implementation manager for General Motors of North America, said through July the biodiesel industry produced about 210 million gallons. "At that current rate we would produce another 150 million gallons more, which would push that total to 360 million gallons," he said. "This is significantly short of the 650 million-gallon inferred mandate for 2010; however, there are enough 2008 RIN credits to bridge the difference between the cost of biodiesel and their petroleum competitors."
 
 According to analysis put out by the National Biodiesel Board and EPA, approximately 350 million gallons would have to be produced for the remainder of the year. Haer said that would provide the RINs necessary for carry-forward provisions allowed from 2008-2009 to meet the current obligation.
 
 With the expiration of the federal blender tax credit being a driver of instability within the market, concerns by original engine manufacturers persist as they can drive changes in producer behavior. An increase in RIN prices will likely rise as obligated parties scramble to meet their quotas, according to Jones, adding that it will likely trigger the industry to start-up and work hard to meet the mandated volumes. However, a downside could be that quality of biodiesel may suffer as a result, Jones warned.
 
 Jess Hewitt, chairman of Gulf Hydrocarbon Inc., address some of the bottleneck challenges the industry faces regarding the distribution chain for supplying the market. Hewitt, also a chair on the marketing committee for the NBB, found less than 80 terminals serve up biodiesel blends. "That's not enough to get that much fuel into the market," Hewitt said.

 
 Hewitt focused the utilization of rack blending methods in order to expedite biodiesel flow into the diesel pool for consumption and RIN reporting through the EPA. Depending on what the retailers and their distributors are looking for, rack blending, according to Hewitt, offers a precise blend percentage of biodiesel. 
 
 "It also allows for an excellent paperwork trail to show that biodiesel was blended to EPA requirements," he said. "That's very important in our industry because we have to show the actual amount of biodiesel blended into diesel fuel in order to free those RINs. We also have to be able to show that the blending was done on our site and that's very important when we're looking at biodiesel blending."
 
 Hewitt said he expects to sell significant volumes of biodiesel into the heating oil market. BioHeat, which also qualify for RINs under RFS2, represent a potential 200 MMgy biodiesel market. "It's a fairly significant market for us," Hewitt said.
 
 Fred Walas, fuels technology manager for Marathon Oil, said he sees no impact on the physical blending of biodiesel by obligated parties in the first 90 days. His company is using the same blending equipment for RFS2 biofuels as it did for RFS1.
 
 He added that the challenge for obligated parties who have to blend biodiesel is not so much blending the fuel itself as it is more of a recordkeeping challenge. In the RFS2 rule, four types of biofuels are bundled together as opposed to one in RFS1. This can be problematic, he said, for obligated parties to sometimes over-comply in one area to cover the obligation for another, which ultimately can constrain the overall system. 
 
 "There's a limited time window to match trades within the EPA's Moderated Transaction System between the buyers and the sellers," Walas said. "That has the potential to cause some issues with the system and it's one of the areas we're working with the EPA as well as the biofuel producers to come up with a better system."

The first 90 days under RFS2 rules

Posted Oct. 20, 2010
 
 A recent political debate between two Iowa congressional candidates has shed light on their respective views of the biodiesel tax credit. During the Oct. 15 event, which was broadcast on Iowa Public Television, incumbent third district Congressman Leonard Boswell (D-Des Moines) spoke out in support of the tax credit while challenger Brad Zaun (R-Urbandale), a member of the state senate, said he would not support reinstatement of the credit. 
 

 According to video and a transcript of the debate posted to Iowa Public Television's website, Zaun said that while he thinks the biodiesel industry needs to grow, he does not support reinstatement of the expired tax credit. In response, Boswell argued that Zaun has not connected success in the biofuels industry with a decreased dependence on foreign oil. "[Biodiesel] is a stand-up business that we've got to continue to support and be sure we can make it solid, and we definitely should be supporting those biodiesel plants that are sitting out there idle. We can do better," Boswell said. 
 
 Zaun responded to Boswell's remarks by saying he respectfully disagreed. "When we as tax payers invest $100,000 to $600,000 for each new job created, that's excessive," he continued. "And, I want that industry to survive, and I want it to flourish." However, during the debate Zaun offered no insight into possible alternative actions that could be taken in order to support biodiesel production in Iowa. 
 
 It is currently unclear how Zaun reached his $100,000 to $600,000 estimate of taxpayer support for each biodiesel job created. Biodiesel Magazine was unable to reach him for clarification. The Iowa Biodiesel Board has also been unable to verify where Zaun's estimates have been sourced. According to information posted to the IBB's website, Iowa's biodiesel industry supported 2,900 permanent jobs and contributed approximately $470 million to the state's GDP in 2009. 
 
 "We are disappointed and concerned to hear that Brad Zaun does not support the federal tax incentive for biodiesel," said IBB Executive Director Randy Olson. "The incentive expired last year, and the impact on Iowa's industry has been devastating. Nearly half of the state's 15 biodiesel plants have closed their doors or gone idle, and thousands of Iowans have lost jobs. Iowa was once the leading biodiesel-producing state, but our position as a national and worldwide leader in renewable fuels is in jeopardy. Our sincere hope would be that anyone who represents Iowa in the U.S. Congress would continue to fight for the biodiesel industry, and energy independence. Biodiesel is a bright spot in our state's economy, supporting green jobs and generating economic activity on the farm and beyond. It's also a vital component of our national energy security."
 
 The IBB has requested a meeting with Zaun's office to discuss the impact of biodiesel in Iowa, and is hoping to shed some light on how vital the industry is to not only Iowa but the nation as a whole, said Olson. That meeting is currently scheduled for Oct. 25.

Iowa politicians debate biodiesel

Posted Oct. 20, 2010 
 
 Ina, Ill.-based Rend Lake College has received a $60,835 grant from the USDA to support a three-part biofuels education program, which will include training on farm-based biodiesel production. The program is currently slated to run 18 months. 
 
 According to Linda Denton, RLC professor of physics and physical science, the first component of the three-part program includes the development of an internet-hybrid class for RLC students. The lecture portion of the class will be internet-based, she said. Students will also meet on campus for four eight-hour lab sessions during the semester. "The grant is also going to help us supply the laboratory for the biofuels class," Denton said, noting that laboratory work will be designed to coordinate with lecture activities and will include lab-scale production of biodiesel, ethanol and methane. 

 
 The biofuels laboratory will also be employed by the second component of RLC's three-part program; a community education course, which has been designed for local community members, such as farmers, who want to learn more about small-scale biofuel production and use. Local farmers have been expressing interest in this type of class for years, Denton said. "I've been looking for a tool to start something in the community ed area, because people are interested in making their own biofuels," she continued. "We live in a very rural area, and a lot of people farm part-time. They are interested in making their own fuels to use for their cars or their ag equipment."
 
 The third portion of RLC's biofuels program involves an internship program for the college's students. Four students will be able to participate in the program for each of the two semesters currently funded. The interns will produce small batches of biodiesel, ethanol and methane, likely using feedstocks sourced from the campus farm. "We are also going to do some little research projects," Denton said. One of those projects will research the economical viability of small-scale on-farm biofuel production. 
 
 While the biofuels program is currently funded for 18 months, Denton said she is hoping to find additional money to allow the program to continue into the future. Although the college has not yet considered the possibility of expanding the program to offer a two-year degree focused on biofuels, Denton said it could be a possibility in the future if RLC identifies sufficient student demand. 
 
 RLC is preparing to submit the syllabus for the biofuels education program to the Illinois Community College Board for approval. According to Denton, the board will likely approve the curriculum in the spring of 2011, which would allow the program to begin during either the summer 2011 or fall 2011 semester.

Illinois college to develop biofuels program

Posted Oct. 20, 2010
 
 As part of National Alternative Fuel Vehicle Day, California-based retail fuel marketer Propel Fuels shaved off $1 per gallon from the regular retail price, as low as $1.49 per gallon, on E85 and biodiesel blends at five of its Bay Area fueling stations on Oct. 15. 
 
 Launched in 2002, National Alternative Fuel Vehicle Day is a biennial program run by the University of West Virginia and NAFTC. 
 
 In partnership with the National Alternative Fuels Training Consortium and the U.S. DOE, the Oct. 15 promotion was part of Propel Fuels' effort to raise consumer awareness of the benefits of using renewable fuels.
 

 According to Propel Fuels CEO Matt Horton, the promotion discount on the day doubled its fuel sales of biodiesel. "We've found in all the markets we're in when we have biodiesel available to the public at or near the price of petroleum-based product, the response from customers is really strong," he said. "Our focus is really on getting first time customers to join with us, take those first steps away from petroleum so that we can help them over time migrate to better fuel choices like biodiesel."
 
 Horton added the company also participates in similar types of events like the NAFVD with the DOE and other partners. The company is in the process of rolling out 75 new fueling stations across California. As part of that market roll out, the company looks to participate or coordinate similar events with fuel discount promotions. "We believe there is a lot of demand in the market and we're working on providing [customers] with access in places that are convenient," Horton said. 
 
 In addition to B5 blends, Propel Fuels also offers B20 and B99 blends at select retail fuel stations. Along with its current network of stations in the Bay Area and Sacramento, Propel has begun development of station locations in all major markets across California, with 200 stations expected over the next two years.

October 2010

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