Posted Nov. 23, 2010
 
 Enzyme company Verenium Corp. has partnered with global oils, fats and biodiesel technology firm Desmet Ballestra to expand the use and geographic reach of its vegetable-oil-specific enzyme, Purifine PLC. Nearly a month after announcing a partnership with Alfa Laval to jointly market the enzyme, Verenium has signed with Desmet Ballestra to market the Purifine enzymatic degumming process, while packaging the enzyme with Desmet Ballestra's processing equipment and engineering services. 
 
 "Purifine PLC is a novel enzyme that can be used to increase the yields from the vegetable oil refining process for the production of both biodiesel fuel and edible oils," according to Kelly Lindenboom, vice president of corporate communications for Verenium. Edible oil and biodiesel production diverge after the removal of phospholipids from the crude oil, Lindenboom said, so the enzyme-degummed oil can be refined for either end product. "In fact, the PLC-treated oil contains fewer impurities that can result from conventional processing so there are benefits in refining the oil for either edible or biodiesel use." 
 
 Like the partnership with Alfa Laval, the newly formed effort with Desmet Ballestra "allows us to extend our geographic reach and can accelerate the growth of our Purifine PLC business without incurring substantial costs," Lindenboom added. "The second agreement, complementary to the agreement with Alfa Laval, is also in part to address the market pull for choice of engineering firms to implement PLC processing." 

 
 The new partnership also helps Verenium accelerate the timeline in getting the enzyme to market, but Verenium's work isn't completed yet. "We will continue to evaluate opportunities to partner with blue chip firms in a variety of different capacities," she said. "Currently we are exploring options for partnering with companies to either reduce near-term development costs, reduce implementation risks," or, as the company feels it has done with its most recent partnership, "speed the time to market." 
 
 The Purifine PLC enzyme is a phospholipase C enzyme that acts as the main component in the degumming process for refining soybean oil and other high-phosphorus vegetable oils, according to the company, which also stated that the enzymatic degumming product "may also enhance yields of biodiesel from crude oil."

Desmet Ballestra, Verenium partner

BBI International's Southeast Biomass Conference & Trade Show in Atlanta featured a biodiesel-exclusive panel, which I moderated, titled, "Biodiesel from Waste and Low-Value Feedstock." The diversity of the panel-a professor/researcher, a small-scale regional producer, a pretreatment specialist and a representative of a global biodiesel process technology provider-mirrored the eclectic nature of the biodiesel industry. 
 
 Christina Borgese, formerly with BiofuelBox and now the senior engineer and cofounder of consulting firm PreProcess Inc., opened her discussion with the importance of diesel power and how just a 2 percent blend can replace all the lubricity lost in ultra-low sulfur diesel. She gave an overview of the wide range of feedstock available for biodiesel processing, and spoke about the three D's of waste feedstock: the diverse array, distributed concentration and diluted fatty acid content. She said fats, oils and greases in sewage waste water, for instance, are as low as 35 parts per million, since most of it is water and solids. 
 
 Frank Yeboah with North Carolina A&T University discussed his Department of Defense project looking at the impact of taking all the military waste vegetable oil (WVO) for conversion to biodiesel. He said if the defense department were a country, its fuel consumption would rank 34 in the world, a testament to how much fuel our military operations use. Yeboah's project hopes to find exactly how much WVO is produced on military bases and barracks around the country, and what beneficial impacts that would have if all of it were to be converted to biodiesel. 
 

 Panelist Brandon Spence, cofounder and CEO of Midlands Biofuels in South Carolina, a community-scale biodiesel plant, said Midlands Biofuels is the only ASTM-certified biodiesel production facility in the state. He and his team also started the first green apprenticeship in South Carolina. Regarding the lapse of the $1 per gallon blenders credit, Spence said, "We collect our own feedstock and we stand on our own two feet, we don't need the dollar. In order for this business to survive, we can't do it with subsidies." Spence also said Midlands Biofuels is looking into solar applications for its process. 
 
 The final speaker was Klaus Ruhmer, BDI BioEnergy International's North American business development manager. "In order to achieve profitability, quality must be the foundation, no shortcuts," he said. "The most important pillar after that is yield. You can't run on 80 to 85 percent yield." He also noted that the subsidy was great for producers, but bad for investors, "because they would never know if it was going to go away." If feedstock prices change 5 percent, that can have a 40 percent impact on profit, he said. A 5 percent change in the price of biodiesel, or in the yield, can have a 50 percent impact on profitability.
 
 Ron Kotrba
 Editor
 Biodiesel Magazine
 <a href="mailto:rkotrba@bbiinternational.com">rkotrba@bbiinternational.com</a>

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Diverse Group

"How say you, the jury?" Few phrases so succinctly summarize the uncertainty a small business must face when planning its operations, especially safety and maintenance programs. An adverse legal verdict can wipe out a small company in a stroke. A company without well-planned policies to identify and limit risks inherent in its operation invites destruction. Most companies design and implement policies, equipment and facilities to reap the positive benefits of appropriate safety and maintenance practices, such as efficiency, sustainability and profitability of their operations, workforce safety and lower insurance rates. However, these policies also must take into account the legal liability that the company may bear in the event that a mishap, or even normal operations, damages the lives or property of others.
 
 Although specific legal rules differ geographically, those who harm others are generally held liable for the damage they cause; and they who inflict harm intentionally, through negligence, or even by paying insufficient attention to the dangers they cause, are singled out for punishment beyond mere compensation for the damage done. Businesses can control their potential liability by acting in ways that demonstrate to a judge or jury that the company has attempted to identify and prevent harm to others. The barest bones of such a demonstration will include tangible evidence that a company considered the hazards its operations pose, that it considered ways of reducing or eliminating those hazards, that it selected among hazard-reducing options in a defensible manner, and-perhaps most important-that it implemented those options in a regular and consistent manner.
 
 If a company is unable to demonstrate to a court that it had a safety and maintenance plan in place, the judge or jury may find it easy to conclude that the company's consideration of safety issues was unreasonable or haphazard. With an injured party standing before it, the court may feel justified in awarding a large, punitive judgment against the company, both to punish the company for its perceived indifference and as a warning to other similarly-situated companies. Thus, a safety and maintenance plan can benefit a company both by improving workplace operations and by shielding it from an inference that the company is indifferent to safety concerns.
 
 In addition to identifying hazards inherent in or caused by its operations, a company that wishes to avoid a punitive legal verdict should also investigate equipment and methods for reducing, avoiding or mitigating those hazards. The standard of care that a company must exhibit in order to limit or avoid legal liability is a matter of local law (typically state law in the U.S.). Generally speaking, however, a company will not be required to undertake every possible way of avoiding all conceivable risk. A company should consult with legal experts in the regions in which it will operate its facilities and in which it will project any foreseeable hazard, in order to understand the duties of care it may owe in those localities.
 

 A company that has created a safety and maintenance plan should take care to see that the plan is, in fact, implemented in its operations. Even though development of the plan may itself demonstrate the company's good faith and desire to operate safely, failure to implement that plan consistently can be damning evidence that it failed to live up to the standard of care that the company itself considered necessary. Thus, implementation of such a plan is critical.
 
 The specific contents of a safety and maintenance plan are as variable as the companies and operations to which they relate. Legal and occupational health/safety consultants are available nationwide to assist companies to develop and implement appropriate plans. These consultants can shepherd biodiesel and other companies through the complexities of local laws, design of industrial operations and workforce training.
 
 The threat of a disastrous legal verdict can make litigation a "valley of death" for companies unprepared to face it. By designing and implementing safety and maintenance plans with legal and safety experts, companies can reduce the uncertainties they face in the unfortunate event they are sued for damage they've allegedly caused, permitting them to focus on business operations.
 
 Author: Gary D. Colby
 Attorney, Dilworth Paxson LLP
 (215) 575-7075
 <a href="mailto:gcolby@dilworthlaw.com">gcolby@dilworthlaw.com</a>

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Walking Through the Valley of Death

Anything that moves in a plant experiences wear and tear and needs upkeep. One critical but often overlooked task is keeping maintenance and safety logs, which will help in identifying equipment failures. Keeping pumps operating successfully for long periods requires careful pump design selection. Proper installation and careful operation is crucial, noting pump operating parameters. Pump performance should be monitored for any performance changes over time. If failure occurs, cause must be determined to prevent recurrence. Pumps that are properly sized, dynamically balanced, sit on stable foundations with good shaft alignment, properly lubricated, operated within the specified specs and regularly checked by maintenance personnel who fix any offbeat performance issues never experience catastrophic failure. Typically a pump that fails twice for a similar issue needs to be examined closely for proper installation and whether it's operating out of its specified efficiency points.
 
 For reactor maintenance, the sediment in the incoming feedstock, if not addressed, will be a major problem as it will reduce the reaction efficiency. The reactor must be examined regularly and proper preventative measures should be taken. Filters, whether for finished goods or for incoming feedstock, must be examined and changed regularly. Improper maintenance will result in sediment seepage either into end product or incoming feedstock. A prime cause of filter failure is tears. Air compressors, regardless of size or model, require some form of periodic maintenance. Compressor maintenance must be done according to hours of operation, not calendar date. 
 
 Operating equipment outside of process parameters causes a majority of issues. Heat exchangers are also a critical part of the process and careful consideration has to be given to their operating parameters and preventative maintenance. At minimum, automation devices and instruments should be looked at periodically as part of a maintenance schedule. A common failure point for automation instrumentation is not the actual instrument, but the wiring. Regular checks must be performed to make sure the wiring is intact, no process liquids are leaking onto the wiring, and instruments are not experiencing any stresses from the mechanical equipment such as piping and reactors. Also, relief valves must be regularly checked to ensure they are performing according to spec.
 
 Plant safety has to be addressed well before the plant is fully constructed. All safety related points must be identified and proper care should be taken to address each point. All employees should know the plan of action in case of emergency, and a safety document with clearly identified steps needs to be part of employees' vocabulary. 

 
 The largest safety hazard in biodiesel plants is methanol and catalyst, which also contains 75 to 80 percent methanol if it's a liquid catalyst. Any equipment that comes in contact with methanol or catalyst needs to be explosion-proof or intrinsically safe. There should be clear demarcation between explosion-proof and nonexplosion-proof areas. Care should be taken to make sure the plant design complies with the latest version of the National Electric Code and all of the National Fire Protection Association codes for flammable liquids and vapors. If for any reason changes to the facility occurred, extreme care should be taken to identify the liquids in the facility and the process/methodology before making any changes. Equipment that is being worked on should be water washed and aired out for days. Methanol leaks due to pump seal, hose and instrumentation connection failures, or similar incidents. Personnel should be trained to be observant for any mechanical abnormalities so remedial action can be taken immediately. A handheld volatile compound detector should be kept handy and employees should be encouraged to use it often to identify any stray vapors in the facility.
 
 Further, it is important to ground the tanks, pumps, panels and instrumentation; regularly check for leaks on the tanks, pumps and pipelines; insulate all heated elements; condensate pumps on the steam line to prevent heat exchange failures; properly install vents and blow-off valves on tanks and process equipment; prevent static hazard while taking samples; use ventilated conditions and all safety measures while doing maintenance work such as welding and cleaning; and ground trucks before loading materials. At the end of the day, one plant accident is one too many.
 
 Author: Sharath Bobbili
 Refinery Deployment Project Manager, JatroDiesel Inc. 
 (937) 847-8050
 <a href="mailto:sharathbobbilister@gmail.com">sharathbobbilister@gmail.com</a>

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Plant Maintenance and Safety

A thriving industry usually equates to growing educational opportunities in various university systems. However, the inverse of this traditional train of thought appears to be occurring with biodiesel, as a spate of universities have created biodiesel-specific curriculums. It's this disconnect that has gotten people wondering, with all the trouble in the industry, why now? "Universities are kind of a community and we communicate with one another," says Nancy Tuchman, Loyola University-Chicago vice provost. "When a program or initiatives like these are launched at one university, the students talk to each other and kind of push for it to happen at their school. I think this might be part of why it's not unique at just one or two schools."
 
 Initially tested and built as part of a course, LUC's Center for Urban Environmental Research and Policy's Biodiesel Program 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 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 at campus cafeterias and a local restaurant in the area. Students of the program sold B100 to its first customer, 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 run on B7 blends, but 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, according to Tuchman.
 
 As former CUERP director, Tuchman was instrumental in creating LUC's biodiesel program. She says that programs like these appeal to students because it's a technology that doesn't require just chemistry majors' involvement in the program anymore, but rather a host of students with different disciplines interested in gaining hands-on experience. "Another reason is that when our students hear in lectures about global climate change throughout their curriculum, they begin to feel a sense of hopelessness and despair," Tuchman says. "I think having students design, develop and build a solution to a problem like this with their own hands is empowering."
 
 Formed in 2007, LUC's biodiesel program was awarded a $10,000 grant from the EPA to implement a new education model on campus called, "Solutions to Environmental Problems," or STEP. The program received an additional $75,000 grant from the EPA for high school outreach and is now its own stand-alone program, according to Tuchman.
 

 While current and prospective students continue to express interest in programs like these, available state or federal funding is another driving force behind decisions to get programs up and running. Ina, Ill.-based Rend Lake College was awarded a $60,835 USDA grant in October to support the launch of a three-part biofuels education program, which will include training on farm-based biodiesel production. Linda Dention, RLC professor of physics and physical science who will oversee the program when it officially begins in the spring, says that available federal funding wasn't the main factor behind creating programs like these. She says that universities should find their niche based on location, community need and educational targets. "We started looking at it because of the community demand," she says. "We live in a poor rural area and we wanted to educate people how they can produce biodiesel themselves."
 
 RLC's biofuels program is funded for 18 months, but Denton says she is hoping to find additional money to allow the program to continue into the future. Although the college hasn't yet considered the possibility of expanding the program to offer a two-year degree focused on biofuels, Denton says it could be a possibility in the future if RLC identifies sufficient student demand.

Education on Wheels: From left to right, Zach Waickman, lab manager for LUC's biodiesel program, Kristina Clark, senior at LUC and former biodiesel program participant, and Adam Schubel, STEP coordinator and former biodiesel program lab manager, have

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Why college-level biodiesel programs are sprouting up across the U.S.

Biodiesel U

Although it may sound fabricated given the particular biodiesel climate many in the industry hoped would be better by now, the following statement is true: "These are exciting times at our e-Biofuels subsidiary," says Jeffrey T. Wilson, president of Imperial Petroleum Inc. Wilson's statement relates directly to the recent success of e-Biofuels LLC, a Middletown, Ind.-based 15 MMgy biodiesel plant that, compared to 2009, reported a 339 percent increase in average monthly revenues and, compared to this July, reported a 61 percent increase in revenues for the month of September, netting $5.65 million in revenue for the month. Its success, it appears, is a case of addition by addition. Imperial Petroleum acquired the plant in May and by July, had the plant running at nearly 100 percent capacity. By September, the plant was producing almost another 10 MMgy for a production capacity nearing 25 MMgy. The additions don't stop there either. Wilson says the plant has plans to continue upgrading for more efficient production and will also add biojet fuel production capabilities.

Growth Plans: Even after a major increase in revenues due to expanded plant capacity, e-Biofuels has plans for more additions. 

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E-Biofuels ramped up production and reaped the benefits, $5.65 million's worth

An Exciting Addition

A recent political debate between two congressional candidates in Iowa caused some concern within the local biodiesel industry. During the Oct. 15 event, incumbent third district Congressman Leonard Boswell stressed his support for reinstating the lapsed biodiesel tax credit, while challenger Brad Zaun, a member of the state senate, noted that he would not support its reinstatement. 
 
 The Iowa Biodiesel Board reached out to Zaun after the debate, requesting a meeting to inform the candidate on the many ways biodiesel benefits his state. The meeting, which took place Oct. 27, was highly successful, says IBB Executive Director Randy Olson. "We had a great discussion with Sen. Zaun, and had the opportunity to provide some facts about biodiesel that he was unaware of," Olson says, noting that the senator clearly appreciates our nation's initiative to reduce its dependence on foreign oil. "He expressed emphatically that he wants to see biodiesel succeed," Olson continues. "Whether senator Zaun is working for us in Washington or in Des Moines, I am confident he will be a strong supporter of biodiesel because of its importance to Iowa's economy and our nation's energy security. All in all, it was a good meeting. For a candidate to take 45 minutes out of his very busy schedule less than a week before an election clearly showed that he was interested in learning more about biodiesel and its importance to Iowa and the nation." 
 
 While Zaun will continue to serve Iowa in the state legislature, he was narrowly defeated by Boswell for a seat in the U.S. House of Representatives Nov. 2.

Iowa congressional candidates debate the benefits of biodiesel

Debating Biodiesel's Benefits

It's no secret that if the U.S. military can be fueled, so can just about anything that needs fueling. For petroleum providers working with the U.S. Department of Defense and its large supply of aircraft, ground vehicles, ships and weapons systems, life has been pretty good. Nearly 77 percent of all fuel needs for the DOD comes from petroleum, which is no surprise. Think things are going to change? A quick look at the life span of a typical military vehicle, fighter jet or submarine and their fueling requirements, for instance, might suggest the status quo is here to stay, but numbers from the U.S. Energy Information Administration indicate that the DOD may have no choice but to integrate renewable fuels like biodiesel.
 
 According to the EIA, world energy demands will increase from a 2007 level of 495.2 quadrillion Btu all the way to 738.7 quadrillion Btu by 2035. Global petroleum use in 1980 called for roughly 63 million barrels of oil per day. Today the U.S. consumes more than 85 million barrels per day and, if trends remain unchanged, by 2035 global demand will equal 110.6 million gallons per day. If you haven't heard, global oil reserves are shrinking as well. So what should we do? A team from the Center for a New American Security went looking for an answer. Here's what they found. 
 
 In a report titled, "Fueling the Future: Preparing the Department of Defense for a Post-Petroleum Era," Christine Parthemore, fellow at CNAS, and John Nagl, president, pointed out what many have been touting for some time: "It is not prudent to assume that supplies will be readily available to the United States three decades hence; nor is it wise to perpetuate the geopolitical, operational and environmental costs indefinitely." Ensuring that the DOD can function on nonpetroleum fuels in 30 years, they say, is a conservative approach to hedge against economic, political and environmental constraints of the future. 
 
 The goal of instituting renewable fuels, according to the report, should receive immediate attention and represent the main path forward. "Other goals debated in recent years, including a goal of simply increasing the efficiency of petroleum use or a static reduction in overall fuel consumption, will be insufficient." They note that since the 1970s, America's energy efficiency has grown, but, not surprisingly, so has overall petroleum demand. "Gains in efficiency are necessary and important," they say, "but there is a danger that too heavy a focus on efficiency over a long-term timescale will mask an increasing reliance on petroleum." While reports like these reaffirm what many already know, this particular report points out something worth remembering. If the DOD implements a change towards renewable fuels, it can avoid unbearable fuel costs while guaranteeing its ability to protect the U.S., the report says, "regardless of the availability of petroleum-based fuels."

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The Center for a New American Security reminds us what renewable fuels mean for the future

Worth Remembering

When it released proposed regulations to establish the nation's first standards to improve the fuel efficiency and reduce greenhouse gas (GHG) emissions of medium- and heavy duty vehicles, the U.S. EPA and U.S. Department of Transportation's National Highway and Traffic Safety Administration took a historic step towards putting more energy efficient diesel vehicles on U.S. roadways. The new regulations are an extension of similar requirements established for light-duty vehicles earlier in the year. 
 
 Although both RFS2 and the newly proposed regulations aim to reduce GHG emissions from transportation vehicles, the means to achieve those reductions are very different. RFS2 aims to reduce the GHG emissions through the use of renewable fuels, while the proposed GHG emissions and fuel efficiency standards seek to achieve reductions through greater vehicle efficiency via better engineering and design. 
 
 "We are proposing a strong and comprehensive national program that will oversee fuel efficiency standards for medium- and heavy-duty vehicles, whether pickups, vans, buses or semi-trucks," says DOT Secretary Ray LaHood. "This will be a win-win-win. It will reduce our reliance on oil, strengthen our energy security and mitigate climate change." Although the new proposed regulation affects both gasoline and diesel-powered heavy-duty vehicles, the impact on the diesel community will be far more pronounced. "More than 95 percent of all heavy-duty trucks are diesel-powered, as are a majority of medium-duty trucks," says Allen Schaeffer, executive director of the Diesel Technology Forum. "Diesel power is the driving force today of goods movement by truck in our economy. This proposal clearly envisions clean diesel power as the centerpiece of freight transportation in the clean energy categories of vehicles: combination tractors, heavy-duty pickups and vans, and vocational vehicles. Each of the three categories is further broken into several subcategories based on different elements, such as weight class, cab type, payload, towing capabilities, presence or absence of 4-wheel drive, or other identifying characteristics. Specific standards are designed for each applicable subcategory of vehicle. 

 
 EPA Administrator Lisa Jackson says, "Altogether, greater fuel efficiency will save Americans $41 billion, with the added benefit that much of the money will be able to stay at home in the U.S. economy rather than buying oil from overseas."

Efficiency Increases: Proposed fuel efficiency and GHG reduction standards for medium- and heavy-duty trucks are expected to achieve up to 20 percent reductions in carbon dioxide emissions and fuel consumption by model year 2018.

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New fuel efficiency and GHG reduction standards proposed for trucks

Trucking towards Higher Efficiency

The ability to test low levels of fatty acid methyl ester (FAME) content in jet fuel has been sought by pipeline operators and jet fuel distributors for years. SetaAnalytics, a division of Stanhope-Seta, recently announced that the Energy Institute in London has now published a new test method, IP 583, the first for rapid screening of FAME in jet fuel. The patented "Fame In Jet Instrument" has been in development for more than three years and offers the industry a rapid and easy check on parts per million (ppm) levels of FAME in aviation fuel. FIJI utilizes state-of-the-art Fourier Transform Infra-Red Spectroscopy technology and a patented sample preparation system allowing FAME detection accuracy down to the 20 ppm level. FIJI is fully automatic so no specialist operator training is involved. Tests take less than 20 minutes.  A key advantage over current analytical FAME in Jet methods is FIJI's ability to detect all types of FAME in the range C8 to C22. Current DEF STAN 91-91 and ASTM D1655 specifications state a maximum safe limit of 5 ppm in aviation fuel, but an industry-wide research project is currently evaluating the effect of FAME at higher concentrations. The lifting of the 5ppm limit to a higher level is expected as a result of the research project, states SetaAnalytics.

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The first rapid-screening FAME detection method

A New Method

Although the biodiesel industry isn't exactly a model of success when it comes to economic prosperity today, plant developers are taking strategic approaches before they foray into the market. "Taking the time and doing the research, and really learning from other peoples' situations I think has made us a lot stronger," says Jon Hall, president and CEO of Bio-NRG LLC. The Mt. Pleasant, Iowa-based company intends to break ground on a 15 MMgy multifeedstock plant on 15 acres of land in LaHarpe, Ill., by 2011 with commercial operations slated for 2012. According to Hall, the $38 million plant will initially use soy oil from a soybean crushing facility to be built on site. In the future, Hall says, the company plans to incorporate an algae process that could be used to provide an alternative feedstock. When constructed, the plant will have the capability to produce soybean oil, meal, hulls, biodiesel, glycerol products, algae oil and algae biomass. "We're doing everything we can to identify and exploit some of these other alternative feedstocks out there than just using traditional methods," Hall says, adding that the company had finalized the project's debt financing package and permitting was awaiting approval.
 
 Central Missouri Energy plans to build a 10 MMgy biodiesel plant in Fulton, Mo., using jatropha oil as feedstock, but the future of the project rests on securing financing, according to Fulton Area Development Corp. President and CEO, Bruce Hackmann. "The principles of the project still feel very confident in the plan they have," he says. "It's just really a matter of the financing at this point." CME's original cost of the project was $40 million, but logistical issues surrounding how the plant would source the jatropha from Mexico via rail or truck complicated how lenders have assessed the feasibility of the project, Hackmann says. "They had been working on getting funding for this project for three years," he says. "We're still optimistic. It's not dead by any stretch of the imagination."
 
 Meanwhile, preliminary discussions began with a potential buyer for the 8 MMgy BEST BioDiesel Cashton LLC biodiesel plant in Cashton, Wis., but financing has not yet been finalized, according to Laxson Boyd, principal for Wadsworth Whitestar Consultants, a turnaround consulting firm assigned to maintain and market the plant for sale. "We're certainly finding it a challenge to locate a buyer who has access to funds and who is interested in operating a biodiesel plant under the current circumstances," he says. "The senior lender in this situation is certainly interested in finding a buyer as quickly as possible, but not at a price that means essentially walking away empty handed from the sale."

Proposed projects still move forward, potential suitors assess idled plant

Development in Progress

Sometimes it's better just to watch than to listen, but in the case of W.R. Grace & Co., a little of each might be the perfect mix to reveal the future of the biodiesel industry in developing countries. W.R. Grace, a catalyst provider from Maryland, says, "The global renewable fuels industry is expected to grow significantly over the next several years, especially in the emerging economies of Latin America and Asia Pacific." 
 
 At existing facilities in Kuantan, Malaysia and Sorocaba, Brazil, the company will expand the manufacturing capabilities of silica gel, specifically its very own TriSyl. The gel, which removes contaminants from natural oil feedstocks more efficiently than alternative products, reduces plant effluents (from the filter cake and centrifuge effluents) and, in some cases, can even make it possible to remove both the primary and water wash centrifuges, and its production will be ramped up, "particularly for the production of biodiesel and renewable diesel," according to W.R. Grace. 
 
 The Kuantan site already produces more than 40 grades of silica for applications ranging from plastics to consumer goods, apart from biodiesel production use. The Sorocaba facility, operating since 1984, is already the largest in Latin America according to the company, producing more than 50 grades of silica. Construction will begin by the end of the year and production of the gel will start by the third quarter of 2011.

watch and learn: W.R. Grace & Co. has big plans for silica gel production at two facilities, based on positive predictions for biodiesel's future. photo: W.R. Grace & Co.

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A silica gel producer has good things to say about biodiesel-and the evidence to prove it

Sounds Good, Looks Even Better

Most biodiesel producers who use waste cooking oil as feedstock have heard about this, and many likely have experienced it. At 2 a.m., in the dark alley behind a local restaurant or at the back entrance in the parking lot, a van, or sometimes an expensive collection truck, rolls up to the waste grease collection container, pumps out as much waste oil as possible and leaves without ever being noticed. Under these conditions, the interloper is most likely stealing waste oil from a contracted collector.
 
 "Everybody that I know in the industry has told me that they have had oil stolen," says Jason Biddle, chief sales officer for an up and coming biodiesel producer in Escondido, Calif., Buster Biofuels. "We were losing around $1,000 dollars a month, and that is just to resell the oil," Biddle says. "If we were making biodiesel it would be a lot higher." Biddle's case is typical and as he points out, he's not alone. In recent national news, two men were charged for stealing 700 gallons of waste oil from a Five Guys Burgers and Fries location in New Jersey on two separate occasions. Biddle notes that, at one point, he spoke with several other waste oil collection companies from his area about hiring a private investigator in the hopes of halting the problem. The National Renderers Association has also taken action and is currently working on a study to document just how much grease recyclers are losing to theft. 
 
 "The larger companies account the theft and the thievery into their profit and loss," Biddle says, but his company, Buster Biofuels, can't afford to lose any amount. Luckily, Biddle has put in the time and found a few answers to stop, at least for now, the problem. After spending nearly a week staked out at various locations in the middle of the night, the lack of sleep was enough for Biddle. "I called three of my competitors and told them I was setting up a sting operation and since I have done that, we haven't had any oil stolen." Biddle says just letting anyone else in an area who might consider slipping in during the night to steal oil know that the area will be under surveillance has worked for him. If at some point it stops working, he will consider cameras. 
 
 And he points out how to determine what type of thief you are dealing with. Biddle says a few locations that kept getting hit were most likely a home biodiesel producer, because the theft only amounted to five or ten gallons. "That is all they can fit in their car," he says. For larger amounts, think about what Biddle says. "Nobody is just going to drive around with a $40,000 pumping truck unless they are licensed."

Grease crusaders: Small-scale grease collection and biodiesel companies like Buster Biofuels can't afford to lose any waste grease to theft. photo: Luke Geiver, BBI International

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Waste oil thieves are everywhere, so here's how to stop them

Got Theft?

Clearly the absence of a tax credit has created an economic blow to the biodiesel industry, causing a dramatic drop-off in production volume, job loss and an overwhelming shadow of uncertainty. In light of its struggles, USDA Secretary Tom Vilsack didn't turn a blind eye on this glaring fact when he addressed those concerns during a speech in October to the National Press Club in Washington. 

 
 In his presentation, Vilsack highlighted how the lapsed tax credit has severely undercut jobs, adding that he supports a renewed incentive for producers. Vilsack said, "We have already seen what happens when incentives are withheld too quickly. The lapse of the biodiesel tax credit cost the industry jobs-nearly 12,000 jobs were lost as production was cut in half once the credit lapsed, according to industry estimates-and these are jobs we can't afford to lose. But, tax credits, by themselves, are not enough. Our effort must include identifying additional feedstocks available throughout the country while discovering more efficient production processes. Research and development must intensify."
 
 Manning Feraci, vice president of federal affairs for the National Biodiesel Board, says, "We look forward to collaboratively working with the USDA to develop new and existing lipid sources that can be used to produce biodiesel. The U.S. biodiesel industry has been, and will continue, working with a broad range of stakeholders to urge Congress to seamlessly extend the biodiesel tax incentive when it reconvenes after the elections for the lame-duck session."

Biodiesel Backer : A staunch supporter for reinstating the biodiesel tax credit, USDA Secretary Tom Vilsack urged producers to be more efficient and find ways to incorporate new feedstock in light of tough economic times.

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USDA secretary continues to support biodiesel

Vilsack's Blessing

Crude jatropha oil (CJO) has a track record as being a good feedstock for biodiesel production, but Australia-based renewable energy and biodiesel producer Mission NewEnergy Ltd. has found markets in which CJO could be used for other applications. In October, MNE sold and shipped 20 metric tons of unrefined crude jatropha oil at approximately $130 per barrel to one of Europe's largest power companies, for energy generation. The shipment, according to James Garton, MNE's head of corporate finance and M&A, represents a 60 percent premium compared to prevailing crude oil prices. "The shipment was a demonstration that there are multiple markets for crude jatropha oil other than biodiesel," he says. "From our perspective, it's a major milestone for us." 
 
 The CJO shipment to Europe falls in line with a milestone the company achieved in June when it crushed and shipped 188 metric tons of crude CJO to its operating 100,000 metric ton (30 MMgy) biodiesel facility in Kuantan Port, Malaysia. The company is in the process of commissioning a 250,000 metric-ton-per-year plant adjacent to the Kuantan Port facility. Though it used traditional pressing methods to crush its 1,500 metric tons of seed, MNE plans to introduce solvent extraction methods to increase oil yields.
 
 Even though both plants now use crude palm oil as feedstock, the latest shipment of CJO to the European power provider, according to Garton, doesn't dismiss the company's goals for using CJO as a feedstock for its production plants. "That's not to say that we intend to move away from using CJO [for] our biodiesel production," he says. "The European shipment is a milestone equally measurable to our first crush, or our first jatropha planting."
 
 Since 2007, MNE has planted jatropha seeds on its 180,000 acres of land in India. Based on median estimates, MNE's jatropha operations are expected to yield approximately 1,300 pounds of CJO per acre, which represents more than 20 million barrels of supply over 30 years. With those figures, Garton says, there is more than enough demand for sustainable crude oils such as CJO for use in energy generation in Europe that currently exceeds MNE's expected supply. He adds, "We expect to generate a 300 percent increase compared to what we had this year."

A Jatropha Giant: Mission NewEnergy's 100,000 ton (30 MMgy) biodiesel plant, located in the foothills of Kuantan Port, Malaysia, will soon use crude jatropha oil in conjunction with palm oil feedstock. PHOTO: MISSION NEWENERGY LTD. 

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Why crude jatropha oil is more than just a biodiesel feedstock

Cross-Country Commodity

Feeling out of the loop on biodiesel and clean diesel technology? If so, there's still hope to catch up. The Automotive Training Authority is offering free green aftermarket training courses on hybrid and compressed natural gas vehicles, and biodiesel and clean diesel technology. The courses are intended for automotive repair shop owners, technicians and fleet maintenance managers, and are made possible through a federal alternative fuel training grant. The biodiesel- and clean diesel-related training will cover biodiesel production and what clean diesel technology is. For training schedules, contact the ATA at (800) 575-4ATA or email Haru Lindsey at haru@ataautomotivetraining.com.

The ATA offers free biodiesel training courses

Coming to a Town near You

Posted Nov. 23, 2010
 
 The European Commission released the results this month of a biotechnology report that explores public perceptions of biotechnology, including biofuels. Over all, the Eurobarometer survey found that 80 percent of Europeans are either in favor of, or unopposed to, biotechnology. 
 
 Regarding biofuels, the report found 72 percent of Europeans feel that biofuels should be encouraged. Only 20 percent of respondents said that they should not. However, the intensity of support was also found to vary by country. Citizens of Denmark, Latvia and Slovakia were most supportive of biofuels, while lower percentages of citizens in Switzerland and Maltese said that biofuels should be encouraged. Even though the level support varied by country, the report's authors point out that respondents who think biofuels should not be encouraged do not outnumber those who think they should be encouraged in any country surveyed. 
 
 There was also a difference in support for biofuels based on certain socioeconomic factors. Respondents from rural areas were more likely to think that biofuels should be encouraged when compared to those from large urban areas. Age was also a factor, with 74 percent of respondents between the ages of 15 and 24 stating that biofuels should be encouraged. Only 63 percent of those age 55 and older said the same. According to the report, religion and awareness did not appear to be factors contributing to biofuels support. 
 
 The report also notes that when those surveyed were specifically asked their opinions of sustainable biofuels, they reported even higher degrees of support, with 83 percent stating that sustainable biofuels should be encouraged. This is an 11 percent increase over those who said that biofuels in general should be encouraged. 
 
 Although most respondents were supportive of biofuels, they did not report that they have a great deal of faith in potential for technology to solve climate change. In fact, only 26 percent said that technology will be able to stop climate change without impacting their way of life and reducing economic growth. 
 

 In addition to biofuels and climate change, the report also gauged the status of public opinion regarding genetically modified foods, nanotechnology, cloning, gene transfer, synthetic biology, and a wide range of other biotechnology innovations. 
 
 "These findings are very encouraging," said EuopaBio Secretary General Nathalie Moll. "They show that Europeans increasingly understand and appreciate the benefits that biotechnology brings to them in terms of healthier, longer lives, cleaner, greener products and processes and increased food and energy security. In particular, we are delighted by the overwhelming support for medical biotechnology and for the strong support shown for crop-based and nonfood based biofuels."

Report: Europeans strongly support biofuels

Posted Nov. 23, 2010
 
 The U.S. EPA has released draft guidance on the storage of ethanol- and biodiesel-blended fuels in underground storage tanks (USTs). While the guidance applies primarily to the owners and operators of USTs, members of the biodiesel industry have the opportunity to provide input to the agency via public comments. These comments are being accepted by the EPA through Dec. 17. 
 
 While the draft guidance issued by the EPA would apply to USTs delivering gasoline containing more than 10 percent ethanol, no specific percentage threshold has yet been identified by the agency for biodiesel. According to the agency, it is aware that there may be compatibility issues with UST system equipment used to store biodiesel, but does not have any sufficient data on the compatibility of various biodiesel blends with UST system equipment that is currently in use. In other words, much of the research that has been carried out on this type of equipment for ethanol fuel blends has not addressed biodiesel fuel blends. For example, the agency notes that the U.S. DOE is currently testing the compatibility of UST systems with midlevel blends, but to the EPA's knowledge no equivalent testing is being conducted for biodiesel-blended fuels. 
 
 The EPA also states that it acknowledges that no UST equipment has been listed by Underwriter Laboratories for use with biodiesel, but also notes that UL has issued a statement indicating that biodiesel blends of up to 5 percent will not require UL investigation. However, the UL statement cited by EPA also said that fuel blends containing higher percentages of biodiesel may have significant impacts on UST materials and components. For these reasons, the EPA said it will be seeking comments on what percentage of biodiesel in fuel blends should be included in the proposed guidance. 
 
 Although the EPA is seeking specific comments in several areas, there is one component of the draft guidance that may be of specific interest to those in the biodiesel industry. Regarding the applicability of biodiesel blends, EPA notes that determining an applicable percentage threshold in the absence of compatibility data may lead to rulemaking that is either unnecessarily stringent, or not sufficiently protective. This is because that lack of relevant data makes it difficult to determine whether UST system materials and equipment are compromised by storing biodiesel blends and at what blend percentages these problems are likely to occur. The agency is seeking public input in this area; specifically asking for comments on whether biodiesel-blended fuels should even be addressed by the draft guidance. If the fuel is included, the agency would also like comments to address what percentage should be used. Those providing comments on this topic are asked to provide statistical data in support of their opinion. 
 
 There are several other areas in which the EPA is seeking public comment. These include:
 
 - The UST components that might be affected by biofuels. The EPA's proposal currently lists tank or internal tank lining; piping; pipe adhesives and glues; line leak detectors; flexible connectors; fill pipe; spill and overfill prevention equipment; submersible turbine pump and components; fitting, gaskets, brushing, couplings and boots; containment sumps; release detection floats; sensors and probes in this category. The agency is seeking input on whether any of these components should be removed from the list, or if any additional components should be added. 

 
 - Methods that can be used to demonstrate compatibility. In addition to UL certification, the EPA is proposing that manufacturer approval could fill this requirement. The agency also notes that it is considering providing flexibility for states that would like to take a different approach. Commenters are asked to provide input on whether these compliance options are appropriate and feasible. 
 
 - The criteria for equipment manufacturer approval as a compatibility method. The EPA said it is considering allowing product warrantees, brochures or letters to be acceptable for this purpose. However, the agency specifically notes that the approval should be provided in writing, indicate affirmative statements of compatibility, and be provided directly by the manufacturer, not the equipment installer or distributor. The agency is seeking input on the feasibility of this method, and whether or not other tools might assist UST owners and operator in obtaining this information. 
 
 - The ability for UST owners and operators to demonstrate compatibility by these methods. The agency notes that UST systems have relatively long expected lifetimes, and that high turnover rates of owners and operators may make it difficult to locate all relevant documentation on UST equipment. UST owners and operators are asked to comment on their ability to demonstrate compatibility under the proposed criteria. 
 
 A full copy of the EPA's proposed guidance can be accessed in the <a target="_blank" href="http://www.gpo.gov/fdsys/pkg/FR-2010-11-17/pdf/2010-28968.pdf" rel="external">Federal Register</a>.

EPA addresses underground storage tanks

The U.S. EPA has been working to approve new fuel pathways for biodiesel in the past year. While a pathway for canola oil was approved in mid-2010, the industry is still awaiting the approval of one for palm oil. According to EPA Spokeswoman Cathy Milbourn, the agency is actively working on the palm oil pathway as part of a supplemental analysis to the final rule for RFS2. The next step in that process, she says, is issuing a notice of data availability when the agency has preliminary results. However, Mibourn was unable to offer an estimated timeframe for this action. Surprisingly, Milbourn confirms that EPA has not yet received an official petition for a pathway review and determination for jatropha. 
 
 While pathways for palm oil have yet to be approved, that does not necessary negate the possibility of producing renewable identification numbers (RINs) for palm oil-based biodiesel. In July, the EPA proposed a provision that would allow for "delayed RINs." The measure would allow certain producers of renewable fuels, including those using palm oil as a feedstock, to generate RINs for fuel produced in 2010 as long as the agency determines the fuel pathways of these feedstocks meet the required greenhouse gas reduction thresholds. The proposal was also set to apply for the canola oil pathway, which was approved earlier this year.

PETITIONING FOR PATHWAYS: The U.S. EPA offers comprehensive guidance on the petition process for new renewable fuel pathways on its website at http://www.epa.gov/otaq/fuels/renewablefuels/compliancehelp Source: U.S. EPA, New Guidance on the Petition 

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EPA continues work on palm oil-based biodiesel

Paving the Road to New Pathways

With 2010 coming to a close, the biodiesel industry seems eager to leave the sometimes awkward transition to RFS2 in the past. Although delays in implementation of the program did pose some challenges, the outlook for the program in 2011 is looking up. In October, the U.S. EPA released an updated list of renewable fuel producers that have completed new registrations under the RFS2 program, which is a prerequisite for the generation of renewable identification numbers (RINs). According to the document, a total of 317 renewable fuel producers have completed the process to date. While these represent both ethanol and biodiesel producers, National Biodiesel Board Vice President of Federal Affairs Manning Feraci notes that approximately 40 percent of those facilities produce biodiesel. 
 
 "Right now, 133 plants representing over 1.9 billion gallons of production capacity have registered with the EPA under the RFS2 program," Feraci says. "In addition, there is ample feedstock available to meet and exceed the 800 million gallons of biomass-based diesel that must by law be used domestically in the U.S. in 2011." Biodiesel plants that have not yet completed new registrations and those that need to update registration information under the RFS2 program can complete registration activities through the EPA's online Central Data Exchange (CDX) system. 
 
 According to the agency, an engineering review must be submitted and accepted by the EPA as part of the registration process. Existing plants that are operating and generating RINs were required to submit these reviews by July 1. However, renewable fuel producers are still able to complete the registration process by submitting the engineering review 60 days prior to the generation of RINs. The EPA also states that the agency has no set deadline for approval of engineering review. Rather, the agency will approve the review when the staff determines it is complete and meets all necessary requirements. Subsequent engineering reviews must be completed every three years, and when changes are made to a facility that will result in fuel production that does not fit into the original registration category. 

 
 Biodiesel plants that are ready to register under the RFS2 program don't have to go it alone. The NBB can provide assistance to help producers understand and comply with the program's many requirements. "Successful implementation of the RFS2 program is a top priority for the NBB, and the NBB has held multiple seminars and webinars to help biodiesel producers navigate the RFS2 program's various compliance requirements," Feraci says. "NBB members can also access a host of tools and information to help them navigate the program on our website, and the NBB's February 2011 conference in Phoenix, will provide additional information that will be invaluable to any stakeholder in the biofuels marketplace." 
 
 While many biodiesel plants have been operating at below capacity due to economic conditions and the expiration of the biodiesel tax credit, rising RIN prices and 2011 RFS2 volume requirements should help nudge a ramp-up in production.

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The U.S. EPA has issued a new list of producers registered under the RFS2 program

Registering for the Future

As the executive director of the National Biodiesel Foundation, I have the privilege to work alongside a dedicated, hardworking board of directors: Darryl Brinkman, John Heisdorffer, David Womack, and Beth Calabotta. This board, on behalf of the NBF, strives to accomplish outreach, education, research and demonstration activities for the advancement of biodiesel and its coproducts to improve rural economic development, national security, air quality and the environment.
 
 Established in 1994, the NBF is a national organization working to support the expansion of biodiesel in the marketplace. As such, over the past several years, we have been successful in many educational and promotional events. For example, in 2009, NBF partnered with the state of Arizona to promote biodiesel through the Capital Christmas Tree Campaign. This project funded the fuel for the vehicles transporting the Christmas tree from Arizona to the city of Washington. This was the first year the tree was transported using an alternative fuel and was an excellent opportunity to promote and educate the general public on the benefits of biodiesel. 
 
 In addition, we have worked with Clean Cities coalitions across the nation to host fuel quality workshops. We have also received two U.S. DOE Clean Cities grants to promote renewable fuel education and develop biodiesel infrastructure. 
 
 Plans for 2011 include working with the National Biodiesel Board on water and greenhouse gas life cycle analysis for biofuels, increasing awareness of Bioheat through educational programs, and continuing to develop biodiesel infrastructure projects. These projects as well as others could not have been accomplished without tax-free contributions from individuals and organizations like yours. 
 
 
 Get Involved
 
 As 2011 approaches, we are preparing our annual silent auction that will be showcased during the 2011 National Biodiesel Conference & Expo in Phoenix. We are requesting tax-deductible donations (cash, goods or services) to be combined into auction packages or to stand alone. Funds raised by this event will support our industry priorities. This is a unique opportunity to gain visibility during the conference while supporting this great cause. If you would like to donate a service or item, please contact me. General donations can be made through our website at www.biodieselfoundation.org or by mailing checks to: 

 
 The National Biodiesel Foundation 
 PO Box 104898
 Jefferson City, MO 65110-4898
 
 The NBF staff and directors work closely with the NBB as we support educational and research projects consistent with the needs of the industry. The NBF is a 501 c (3) nonprofit and accepts tax-free contributions from individuals and organizations. With your tax-deductible donation, we can continue our important work with biodiesel-the domestically-produced, renewable and sustainable energy source that moves our country one large step closer to energy independence. 
 
 If you would like more information on the NBF, its auction, or its 2011 open solicitations, please contact me at (800) 841-5849. I welcome the opportunity to talk with you. Remember, your active support is essential to the biodiesel industry.
 
 Tom Verry, National Biodiesel Foundation 
 Executive Director

Foundation Focused on Industry Advancement

The renewable fuel standard (RFS2) for the first time provides for a specific renewable component in U.S. diesel fuel. Throughout the rulemaking process, the National Biodiesel Board employed a variety of legal, lobbying, media, and grassroots assets to encourage the U.S. EPA to implement a workable program. 
 
 In 2011, 800 million gallons of biomass-based diesel, which is primarily biodiesel, must be used domestically in the U.S. This volume requirement will increase to 1 billion gallons in 2012, and from 2012 through 2022, the minimum volume requirement is 1 billion gallons.The statute gives the EPA administrator the ability to increase the biomass-based diesel obligation.
 
 The U.S. biodiesel industry is ideally positioned to take advantage of this opportunity, and the NBB has been working to help stakeholders navigate the new program. "We are providing information to our members that will help them comply with the program in the most efficient way possible," said NBB Senior Advisor Larry Schafer. "The first time through this process is difficult, and we are trying to demystify the program." 
 

 NBB offered a series of workshops, including on-site training in Houston, Los Angeles, New York, Atlanta, Des Moines and 10 webinar sessions. Key components of each workshop are available online for viewing. NBB members who were unable to attend the workshops or webinars can find the information on the members-only website on the members homepage, at the media center button. The videos cover a wide variety of information that is extremely important to participating in RFS2.
 
 Another new service NBB offers for its members is the addition of an RFS2-registered plant list on the NBB website. This list is provided as a resource for obligated parties to find biodiesel for purchase in their area. As each member plant becomes registered with the EPA, their plant information is added to the site. This is just another way to make the implementation of RFS2 as seamless as possible.

NBB works to help stakeholders navigate RFS2 program

As the petroleum industry has become more confident in meeting the ultra-low sulfur diesel (ULSD) sulfur requirement of 15 parts per million maximum, it has started to squeeze every ounce of profit from ULSD operations. This has resulted in changes in the composition of ULSD, which is having unexpected effects with both petro-
 
 diesel alone and with some biodiesel blends. Some petrodiesel alone is exhibiting tank corrosion and internal injector deposits not observed before. And although rare, some petrodiesel blended with biodiesel is exhibiting filter clogging above the cloud point as the temperature gets lower. Since one of the benefits of biodiesel is its ability to be blended seamlessly with petrodiesel, ASTM is considering changes to the existing B100 specification (ASTM D6751) to address even these rare occurrences with petrodiesel/biodiesel blends. 
 
 To tackle this issue, the technical expert members of ASTM are proposing a new grade of B100, a No. 1-B grade, with tighter controls on minor components that serve as predictors for the phenomenon. The current specification parameters in D6751 would become a No. 2-B grade of B100. Either grade could be used at any time of the year. The proposed No. 1-B biodiesel would be an option to help insure operation of finished blends down to their cloud point, if blends with No. 2-B exhibit filter clogging above the cloud point. 
 
 Engine makers and diesel customers gain confidence from the fact that biodiesel has an ASTM specification (no other alternative for diesel fuel has an ASTM specification at this time) and that the industry is committed to continually improving the existing specs, and therefore the quality of the fuel. This bodes well for biodiesel, the first commercially available advanced biofuel, as a low-cost option for reducing harmful greenhouse gases and meeting the new renewable fuel standard (RFS2) requirements for the use of more than 1 billion gallons of advanced biofuels in 2012.

Industry continues to stress quality and continual improvement

The National Biodiesel Board's annual survey showed that while familiarity with biodiesel has grown significantly over the past years, the public still has a lot to learn about alternative fuels.
 
 The survey was conducted among 1,000 representative voters around the country. It showed that NBB sustainability awareness and communications efforts are helping to ensure the positive perception of biodiesel and sustainability are maintained. Excerpts of findings from the survey conducted by Moore Information tell the story:
 
 "Annual voter survey results show that today, a wide majority of voters (76 percent) across the country are aware of biodiesel. In the November 2009 survey, awareness was identical (76 percent aware). 
 
 "We find those familiar with biodiesel have a positive impression of the product. Today, 52 percent of voters have a positive impression of biodiesel, only 4 percent have a negative impression, another 37 percent have no opinion and the remaining 7 percent are unsure. In September 2009, biodiesel's image among those aware was similar (53 percent positive, 8 percent negative and 32 percent no opinion). Net positive responses (those who have a positive impression of biodiesel) increased from 45 percent last September to 48 percent this year." 
 
 The survey also explored voters' perceptions of biofuels. Nearly half of voters had no opinion about each of six statements about biofuels, an indication that many are still not familiar with these products. Voters were most likely to have opinions about the following four statements, widely describing each as "true."

 
 &bull; Biodiesel reduces emissions compared to petroleum (53 percent true/6 percent untrue)
 
 &bull; Replacing petroleum with biodiesel is good for the environment (53 percent/5 percent)
 
 &bull; Biodiesel is an advanced biofuel (50 percent/7 percent)
 
 &bull; Biodiesel is sustainable (50 percent/7 percent)
 
 These survey results demonstrate the significant opportunity for additional biodiesel education in order to secure long-term support for the fuel and keep biodiesel myths from permeating. For more detailed analysis of the Moore Information survey, visit NBB's members-only website or contact the communications office.

NBB Voter Survey Samples Voters' Impression of Biodiesel Annual voter surveys help the National Biodiesel Board gauge public opinion and monitor program success. The September 2010 survey showed the majority of voters have a positive impression of bi

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Annual survey shows public opinion of biodiesel positive, but soft

Posted Nov. 24, 2010
 
 On Nov. 18 the California Air Resource Board adopted <a target="_blank" href="http://www.arb.ca.gov/board/books/2010/111810/prores1049.pdf" rel="external">Resolution 10-49</a> in regard to the state's Low Carbon Fuel Standard. The resolution calls for the latest research on indirect land use change (ILUC) to be incorporated into the program, which could significantly reduce the carbon intensity values assigned to biofuels. 

 
 According to the resolution, an expert workgroup that was formed to address the matter has met eight times since February. The workgroup's nine subgroups have prepared draft recommendations on ILUC values for CARB staff to consider. In turn, the board notes that CARB staff has presented it with a plan to update the land use change and indirect effects attributed to biofuels in the Spring of 2011-or as soon as possible thereafter. The resolution further states that CARB staff has indicated this update will consider modifications that reflect land use modeling activities conducted by Purdue University. 
 
 The resolution also outlines several areas in which CARB staff has recently been actively working to support implementation of the LCFS. This includes the issuance of guidelines that identify fuel pathways that are expected to have either no or negligible land use effects on carbon intensity; continuing work to develop carbon intensities for key fuel pathways as well as evaluating carbon intensity pathway applications that have been submitted for inclusion in the LCFS Lookup Table; and persistent efforts to develop carbon intensities for specialized pathways, including those featuring anaerobic digestion and thermochemical conversion. According to the resolution, staff is also continuing to work with industry members to complete the ongoing multimedia evaluation for biodiesel and renewable diesel. 
 
 As part of the resolution, CARB staff is directed to submit program amendments to the board in the spring of 2011, or as soon as possible thereafter, regarding several components of the program. This includes amendments that update the land use values for soy biodiesel, corn and sugarcane ethanol, and other feedstocks, taking into account the draft recommendations formed by the expert workgroup. Staff is also directed to create a certification process that would allow a method to establish direct carbon intensity values for new or modified fuel pathways through an executive order process.
 
 LCFS Lookup Table currently includes three fuel pathways for biodiesel:
 
 - Conversion of waste oils to biodiesel where "cooking" is required, is assigned a direct carbon value of 15.84 grams of carbon dioxide equivalent per mega joule (gCO2e/MJ), with no land use or indirect carbon value assigned
 
 - Conversion of waste oils to biodiesel where "cooking" is not required is assigned a direct carbon value of 11.76 gCO2e/MJ, with no land use or indirect carbon value assigned
 
 - Conversion of Midwest soybeans to biodiesel is assigned a direct carbon value of 21.25 gCO2e/MJ, with an indirect carbon value of 62 gCO2e/MJ assigned
 
 - The indirect carbon value of this fuel pathway could be reduced by as much as half under revisions planned by CARB 

 
 Biodiesel producers that have completed registrations for the LCFS program include:
 
 - Oakland, Calif.-based Blue Sky Biofuels
 
 - Coachella, Calif.-based Imperial Western Products
 
 - Salem, Or.-based Sequential-Pacific Biodiesel

ILUC carbon values to be reduced under LCFS

The renewable fuel standard (RFS2) is now in place, and is set to open demand for biodiesel like never before. Educational opportunities at the 2011 National Biodiesel Conference & Expo, Feb. 6-9 in Phoenix, will help you understand how this impacts your business, what demands it will place on you, and how you can make the most of it for a competitive edge. 
 
 We have scheduled educational sessions specifically focusing on the RFS2, including commodity and risk management within the RFS2 framework, and the petroleum industry's outlook on fulfilling biodiesel obligations. Plus, all conference registrants can attend a free half-day RFS2 training workshop on Wednesday, Feb. 9. The workshop will incorporate:
 
 &bull; EPA Moderated Transaction System training
 

 &bull; RIN training
 
 &bull; Forms completion training 
 
 &bull; General Q&A
 
 This training will make your biodiesel business more efficient in an RFS2 world. Advance your business at this all-encompassing biodiesel industry event. 
 
 Visit the official conference website www.biodieselconference.org for easy online registration. The website is also home to schedules, lodging information, area attractions and many other helpful links.

Become 'Lord of the RINs' at the National Biodiesel Conference & Expo

National Biodiesel Board members play a major role in defining the long-term objectives and programs for their trade association. This month, NBB members have been asked to complete an online survey to provide input and identify priorities for the draft 2012 NBB Program Plan, which will cover October 2011 to September 2012.
 
 The survey is part of an extensive planning process to capture member input and share association priorities. NBB staff and contractors are constantly interacting with biodiesel companies, regulators, users, engine and vehicle companies and distributors to better understand the needs and priorities of the industry. NBB gathered input on the technical program through participation in the Biodiesel Technical Workshop, which NBB hosted in November in Kansas City. Also in November, the membership meeting in St. Louis provided another opportunity to give input to the planning process. During this meeting, the standing committees (Regulatory, Trade, Technical and Marketing) convened and discussed issues the industry would be facing in 2012. 
 
 In addition to committee meetings, direct member input, and a survey, the program plan development also includes a webinar presentation and member review, which will be held in January. Finally, the comprehensive, directional plan for the biodiesel industry will be the No. 1 order of business at the membership meeting held during February's National Biodiesel Conference & Expo in Phoenix. 
 

 This extensive input process allows NBB to prepare a clear direction to ensure the trade association continues to meet members' needs.

NBB members guide association priorities

One of the priorities of the National Biodiesel Board is to represent biodiesel at industry events, and this fall was packed full of important meetings, conferences and trade shows. NBB staff continues to participate in events across the country including policy discussions, fleet conferences, regional U.S. DOE Clean Cities events, sustainability workshops and many others. These events offer opportunities to share information about NBB programs, to promote biodiesel to related industries, and to educate both the media and the general public. 
 
 The events cover a wide variety of audiences with a differing level of biodiesel knowledge. Discussions range from petroleum equipment compatibility in legacy equipment, to informing people where they can find biodiesel. 
 
 "Many of the questions we hear are either general information about biodiesel or very specific to some key issue," said NBB Communications and Member Specialist Kaleb Little, regarding recent events. 
 
 For example, at a fleet show in San Diego, attendees were very interested in California underground storage issues, while at a biotechnology conference in South Dakota people wanted to know about feedstock development and new production technologies.
 Little attributed this difference to the specific audiences at each event, but emphasized the continued need for biodiesel outreach. 
 
 "We always get questions about cold flow properties, biodiesel handling, availability and sustainability topics, no matter where we are," Little added. "I think it confirms why we are out there talking to people about biodiesel." 
 
 Attending events and tradeshows is just one of the ways NBB represents the biodiesel industry and is a key part of an ongoing effort to educate fleet managers, decision makers and opinion leaders on the benefits of biodiesel.

Attending events and trade shows is just one of the ways NBB represents the biodiesel industry. 

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NBB touts biodiesel at industry events

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. Chairman of the board Ed Burke says the company has been awarded the state contract since 2007, and previously had supplied the state with biodiesel blends under pilot programs. Burke says state agencies are mandated under executive order to use biodiesel blends, and this contract allows them to purchase 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. 
 
 A research team at the Massachusetts Institute of Technology has won a $50,000 ConocoPhillips Energy Prize to support the development of a carbohydrate-to-biodiesel process. The technology, which is designed to significantly increase yields, may also provide a pathway for the direct conversion of hydrogen and carbon dioxide into biofuels. According to Gregory Stephanopoulos, an MIT professor of chemical engineering leading the project, the technology utilizes an engineered microbe to convert carbohydrate feedstocks into lipids. While Stephanopoulos notes that he is unable to disclose specific details of the process due to its proprietary nature, he says that the patent-pending technology can be applied to a wide portfolio of carbohydrate feedstocks, including sugars, glucose, glycerin, hydrolysates from biomass and algae. 
 
 Decatur, Ill.-based agribusiness firm Archer Daniels Midland Co. plans to build a 164,000 metric ton (about 50 MMgy) biodiesel facility in Joacaba, Santa Catarina, Brazil. Construction on the plant is slated to begin in March 2011 with completion during the first half of 2012. The Joacaba biodiesel plant will be constructed adjacent to an ADM soybean crushing facility and a vegetable oil refinery. Acquired from Sadia in 1998, these operations currently process nearly 475,000 metric tons of soybeans and are capable of refining approximately 73,000 metric tons of soybean oil annually. Once operational, the biodiesel production facility is expected to increase oil refining capacity to approximately 110,000 metric tons per year. In addition, the facility will be the first in the state of Santa Catarina, which boasts an ample supply of soybeans produced mainly by small family farms. 
 

 Bio-NRG LLC is moving ahead with plans to construct a biodiesel plant in LaHarpe, Ill. The facility, which will be operated under the name LaHarpe-NRG LLC, will have an estimated production capacity of 15 MMgy. According to Bio-NRG President and CEO Jon Hall, the new facility has been uniquely designed to be economically feasible.
 The business model for the LaHarpe plant is for a vertically-integrated biorefinery. The city of LaHarpe recently commissioned a third-party feasibility study of the project to ensure the projected economics of the plant add up. The results of that study, completed by Tennessee-based Frazier Barnes & Associates, were overwhelmingly positive. 
 
 Thomas J. Tobin has joined Sandmeyer Steel Co. as District Sales Manager in its Midwest sales territory. He will service customers in Illinois, Wisconsin, Minnesota, Iowa, Missouri and Kansas. Tobin brings with him more than 22 years of metals sales experience, mainly with Special Metals Corp. in West Virginia and Tempel Steel Co. in Chicago. He earned his bachelor's degree from Washington & Jefferson College in Washington, Pa., and his MBA from Xavier University in Cincinnati. The family-owned and managed Sandmeyer Steel was founded in 1952 and is a leading producer of stainless steel and nickel alloy plate products used in capital equipment for the chemical and other process industries. The company services customers throughout the world.
 
 China Integrated Energy Inc. closed on the acquisition of a newly constructed 50,000 metric ton (15 MMgy) biodiesel production facility from Chongqing Tianrun Energy Development Ltd. in Chongqing City, China. According to CIA, the newly-acquired plant is located adjacent to the company's existing 100,000 metric ton facility in Tongchuan City, Shaanxi Province, China. The company expects to conduct initial testing in December, followed by ramping up production. The company says it paid approximately $16.5 million in cash from the $58.7 million it had in hand as of June 30 for the Chongqing Tianrun biodiesel plant. CIA anticipates that the acquisition could add approximately $32 million in revenue and $8 million in pretax income in 2011. 
 
 General Biodiesel Inc. tapped digital prototyping and piping and instrumentation diagramming (P&ID) software from Autodesk Inc. to streamline the production process at its 15 MMgy multifeedstock facility in Seattle. The improvement project cut more than $500,000 on traditional upgrade costs to the plant, according to the company. As part of its plant improvements, General Biodiesel used Autodesk Inventor and Auto CAD P&ID software to design a sophisticated pretreatment system that allows higher yields from converting used cooking oil into biodiesel. By using Autodesk Inventor software, General Biodiesel could produce compelling 3D digital prototypes of the plant and equipment to quickly visualize and explore the viability of proposed changes. The company also used AutoCAD P&ID to generate the bill of materials, making for more accurate reports and saving money through greater efficiency. Autodesk's partner IMAGINiT assisted with training and ensuring successful deployment of Autodesk's software. 
 
 Aurora Algae Inc. is constructing a demonstration-scale algae facility in northwestern Australia, which is expected to be operational by the end of the year. Plans for an adjacent commercial-scale plant are also underway. The company, formally known as Aurora Biofuels Inc., recently changed its name to reflect a new focus. While Aurora plans to initially focus on the production of high-value algae-based products, such as Omega-3 fatty acids, the company hasn't abandoned the idea of biofuels production. Aurora has developed a pale green cultivar of algae that lets light penetrate farther into the pond and creates a much higher yield in production. Aurora has a total of 27 patents for its biology and technology platform. 

 
 According to a new report from Pike Research, algae biofuels production will grow rapidly over the next decade, reaching 61 million gallons per year and a market value of $1.3 billion by 2020. While barely a drop in the bucket for biofuels, this represents a compound annual growth rate of 72 percent, roughly on par with early development in the biodiesel industry. Pike Research anticipates that, with 50 percent of all algae activity, the U.S. is poised to ramp up production the earliest among world markets. Pilot- and demonstration-scale facilities are beginning to break ground across the country. The EU market, which is home to about 30 percent of algae activity, will be limited initially by the industry's focus on university research, and later by insufficient access to water, land and nutrient sources. Latin America and Asia Pacific, which are home to fewer projects in operation today, are set to gain significant market share in the long run. 
 
 Enzyme developer Verenium has renewed and extended for five years its joint marketing agreement with Alfa Laval, the heat transfer, separation and fluid handling company, for its patented Purifine PLC enzyme. Under terms of the extended agreement, Alfa Laval will market Purifine PLC to edible oils processing customers in agreed territories and continue its efforts on developing the Purifine PLC enzymatic degumming process. The renewed agreement supersedes the initial agreement announced in early 2009. 
 
 SG Biofuels recently announced a strategic partnership with Bunge North America to research and develop a model to process jatropha seeds into a biofuel feedstock. SG Biofuels President and CEO Kirk Haney made the announcement at the Advanced Biofuels Markets Conference & Expo in San Francisco. Bunge, a global leader in oilseed processing, joins a team of partners, including Flint Hills Resources, a refining and petrochemical company and wholly owned subsidiary of Koch Industries, Life Technologies Corp., a global biotechnology tools company, and others that are collaborating with SG Biofuels to develop jatropha as a viable source for cost-effective, sustainable crude plant oil.

Biodiesel Guy: Ed Burke has been pushing the benefits of biodiesel in the Boston area community for years. PHOTo: RON KOTRBA, BBI INTERNATIONAL

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Metals Man: Tom Tobin brings more than 20 years of experience in metal sales to Sandmeyer Steel Co. 

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Business Briefs

Ask 10 people what sustainability means and you'll likely get 10 different answers. Some of those answers will, however, begin with alternative fuels like biodiesel, and the proof is in the most obvious of places-public and private fleets. From landfill operations in New Mexico to food transport companies in Canada, a growing number of vehicle fleets are acting on the idea of sustainability by putting biodiesel-blended fuel in their tanks. Coincidentally, even with immensely differing rationale for why they decided to use biodiesel, managers of 5- to 500-vehicle fleets say the same things-that their concerns, the changes and the amount of maintenance required to successfully introduce biodiesel into their vehicles, make a very short list indeed.
 
 In Las Cruces and Dona Ana County, N.M., the South Central Solid Waste Authority runs the Corralitos Landfill-and it does so with biodiesel. For the past four years, the facility has been moving garbage and filling holes with vehicles fired on a B20 blend supplied by Rio Valley Biofuels, a biodiesel producer just down the street. With only one storage tanker on site, SCSWA receives a 7,500-gallon tanker of B20 every month to fuel its 17 tractor-trailers and garbage trucks. Operating out of a single storage tank might sound like a headache, but it factored in to why the landfill is using B20 today. Patrick Peck, director of the SCSWA, says before the decision was made to use biodiesel at the landfill, a colleague at another facility in California talked to him about it and praised the B5 blend for its lubrication qualities, and after some extensive research into vehicle warranty and conferring with Rio Valley Biofuels, Peck made his decision. "We only have one tank, so I had to bite the bullet," he says. "We couldn't test anything, so I didn't have much of a choice."
 
 That was four years ago, and today Peck says, "With biodiesel, it's so easy to switch that we didn't have any issues at all." That's not to say that Peck and his team didn't learn anything about using biodiesel to fuel a fleet and heavy equipment. After a faulty air filter installation required a trash truck to be shut down and the engine dismantled for repairs, Peck says the team noticed they could still see the cross hatchings on the cylinder sleeves. "You could definitely see the lubricant and biodiesel's effect on the engine parts," he says. "They were lubricated." The sight of what Peck calls biodiesel's effect has made him a firm believer in the fuel. "To me that shows great lubrication properties and that is what we're looking for, more than anything." Now, Peck says, SCSWA uses B20 for preventative maintenance as an added engine lubricant. 
 
 Even with the qualities biodiesel brings, Peck notes there are some instances when his fleet would not use biodiesel, and a few other issues prospective fleets should consider. The first is fuel quality. "You really have to make sure you are buying the fuel from a reputable dealer," he says. The second has to do with time. Peck says if they weren't going to use a vehicle or a piece of heavy equipment for a long period, six months or so, his crew would flush the system to avoid any caking from the biodiesel. As for additional maintenance or requirements from B20, he says they had a few extra filters on hand, "but as far as the trucks go, we didn't really see that much of a difference." Peck says when designing fleets, the fuel systems must be looked at and fleet managers should weigh the pros and cons of conversion. But, as for incorporating bio-blends, "Biodiesel is very easy," he says.
 
 
 The Northern Perspective

 
 Canadian producer Rothsay Biodiesel runs 137 transport trucks for Maple Leaf Foods Inc. Mike Paszti, director of technical services and innovation for Rothsay, says using biodiesel in its fleet is basically a nonevent, and in terms of maintenance and fleet concerns based on biodiesel, what the fuel does not do is more notable. "The extent of our preparation for running higher biodiesel blends was to have some spare filters and spare dispenser filters on hand, which you should have anyways." Using biofuels like biodiesel "is not a huge leap," he says.
 
 The Rothsay perspective is based on three things. First, Paszti says, the company was fortunate enough not to have dirty fuel systems in its filling tanks and vehicles, meaning the biodiesel running through the systems wasn't "loosening up a bunch of petroleum-based junk," Paszti says. Second, Rothsay has worked out the bugs that come with the trucks themselves, bugs that don't relate to biodiesel. And third, like the SCSWA, Rothsay uses high-quality fuel. The result of those three elements has made Rothsay a major proponent of biodiesel use in even in the most extreme weather conditions. 
 
 To prospective users, Paszti says this about the weather, "You need to understand the environment these trucks are going to operate in. That is by far the most important thing." Along with the environment a truck will operate in, he also notes the type of usage, running times, routes, starts and stops will help determine which blends to use when implementing biodiesel into a fleet. Cost-wise, not much is involved, he says. "What does it cost to have a spare filter? What does it cost to think through a scenario with a roadside failure? We're not talking big bucks, we're just talking good practice." 
 
 For Rothsay, good practice wasn't always the case, however. Early on, the company blended its fuel by dumping it into an unheated tank followed by a good stir with a stick, Paszti says. A bumpy road filled with potholes would do the rest of the blending. "It's a little bit of a cowboy way to do it," he says. "I'm pretty sure we did everything wrong, but things still worked out." 
 
 In 2009 alone, the Rothsay fleet's use of biodiesel resulted in a carbon reduction of roughly 700 tons, the equivalent of removing nearly 130 cars from the road. And while its early approach to implementing biodiesel might not exactly meet today's "best practice" model, its maintenance claims and positive messages should not be taken lightly. If looking for the best of the best for putting biodiesel into a fleet for the first time, however, one should look at Monroe County, N.Y. 
 
 
 A Model Fleet
 
 The Gosilano Institute for Sustainability works on production systems, industrialization and transportation issues that relate to its name. As part of the Rochester Institute of Technology, GIS partnered with Monroe County, N.Y., and in 2008, opened a green fueling station. This, along with several other alternative fuels, meant using biodiesel in a county fleet. While not every county, municipality, organization or any other entity considering biodiesel implementation might want a fueling station featuring B5, B20, E20, E85, compressed natural gas or hydrogen, the work in New York shows a promising example of what could be. 
 

 "We helped Monroe County as an organization to apply some of its green acquisition policies to looking into its transportation, and how the county as a business can run its own operations," says Dr. Nabil Nasr, director of GIS. The business model matched up a public organization, including all of its vehicles, with a private research institution that was more than willing to use those fleet vehicles to test new fueling strategies with alternatives. "We decided to partner because they aren't researchers and they have to be a good guardian of their taxpayer's dollars," Nasr says. "And we needed to make sure that while we are trying new technologies and new types of fuel, this was going to be cost effective and productive." 
 
 It turns out that the partnership was both. Nasr said the cost-benefit analysis on the project has always been positive, and Michael Garland, director of environmental services for the county, says the fueling station is something the county is very proud of. "We'd like to think we are setting the example through our actions and our efforts," he says. These are emerging technologies and alternative fueling opportunities that need to be explored, and we think government can play a role in that." Maggie Brooks, the county executive, set a priority to pursue alternative energy and alternative fuel projects, "in an effort to make the county more sustainable," Garland says. 
 
 Regardless of government involvement, there are a number of things to learn from the Monroe example. Nasr points out that the approaches Monroe used to convert its fleet (more than six dozen cars, trucks and other vehicles) were based on extensive research with GIS, benchmarking the fuel use and constant monitoring on the cost-benefit factor. The county took advantage of GIS' willingness to work together, and that aspect is an area Garland recommends for any fleet manager or director considering a switch to sustainability. "Look for opportunities to partner," he says. "Look for corporate partners, or academic or municipal partners." Doing so, he says, allows two sides to pool resources and save on dollars.
 
 The most important thing to note, however, is a stipulation Nasr points to. Instead of going through the whole process like Monroe and GIS did, look at others who have successfully done it, and learn from their experience. "The ability to use somebody else's experience can be very helpful to people that are new at this," he says. Luckily, at least for any fleet manager, county director, or private fleet owner, someone has already gone through the maintenance issues, the general concerns and any other testing procedures related to biodiesel use in fleets anywhere from New Mexico to Canada to New York. It also doesn't hurt that those who have done it have combined a strong commitment for sustainability with proven research and testing, and have shown that fleets fueled by biodiesel not only perform, but they do it well. As for that checklist of things to consider, there really may only be one item to consider, but Nasr points out that this item may already be considered crossed out. "If the drivers didn't like some of the conversions that were done, it probably would not have worked."
 
 
 Author: Luke Geiver 
 Associate Editor, Biodiesel Magazine
 (701) 738-4944
 <a href="mailto:lgeiver@bbiinternational.com ">lgeiver@bbiinternational.com </a>

EASY CHOICE: In the harshest weather imaginable, Rothsay Biodiesel chooses to run biodiesel blends in more than 137 transport trucks. PHOTO: MIKE PASZTI, ROTHSAY

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Big Gains: The heavy-duty trucks used by the SCSWA run on biodiesel-blended fuel for added lubrication. photo: SCSWA

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COVERING THEIR TRACKS: In 2009 alone, Rothsay has removed the equivalent of 130 cars from the road simply by running biodiesel. PHOTO: MIKE PASZTI, ROTHSAY

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FREE FUEL: A clean fueling system from the beginning helped Rothsay to implement biodiesel blends into its fleet. PHOTO: MIKE PASZTI, ROTHSAY 

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Heavy or light: The SCSWA uses biodiesel blends in everything from heavy machinery to backup generators. photo: SCSWA

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How fleet managers view the incorporation of biodiesel blends

Model Fleets

The development of a solid maintenance and safety program is imperative to running a safe and efficient biodiesel plant. These programs also need to be continued-often in a slightly altered form-even when the plant is idle. Ensuring that safety standards continue to be met, and that maintenance activities are performed in a timely manner, can help maintain the value of a plant while helping to ensure a smooth and seamless restart. 
 
 While maintenance activities must be performed on an ongoing basis at all biodiesel facilities, the specific requirements for idle plants are markedly different than those for operating facilities. The requirements for facilities operating below capacity are largely the same as those operating at full capacity, however. 
 

 "If you are running a drop, you are running," says Brad Albin, Renewable Energy Group Inc.'s vice president of manufacturing. "From a safety and maintenance perspective, if you are running at all-whether you are running at a low capacity or a high capacity-most of the day-to-day work really doesn't change."
 
 Plants running at below capacity may employ a skeleton crew, which is fine so long as the required maintenance and safety standards are met. When the crew is reduced to the extent that these activities cannot be performed properly, it's a problem, Albin says. "Then you are operating an unsafe facility and you're probably close to having someone get hurt," he continues. "When you are running a skeleton crew, you can't cut back so far that maintenance and safety activities aren't getting done, because they are non-negotiable-or should be."
 
 Complying with applicable OSHA regulations and staying on top of maintenance needs does more than just provide a safe working environment, it also allows other elements of plant operation, such as product yield and quality, to fall into place. "This is because [these facilities] will have good corrective action processes in place to help them find root causes and correct things," Albin says. 
 
 While some facilities may consider a stop-and-go solution to below-capacity operation, Manfred Baumgartner, BDI-BioEnergy International AG's technical director, advises against it. "If there is capacity needed at lower production rates we suggest very much not to do a stop-and-go operation," he says. "We suggest running the plant at lower capacity, but running it continuously." This is important because repeatedly starting and stopping the facility is more likely to result trouble in terms of maintenance needs, cleaning issues and mechanical problems. 
 
 Most pieces of equipment within a biodiesel plant have a set capacity range for optimal production, which is generally between 50 and 110 percent, says Baumgartner. These guidelines should be adhered to. Running outside the guidelines can lead to inefficient operation and quality problems.
 
 
 Idle Facilities
 
 When it comes to maintaining an idle facility, plant management has to make a decision on how long the shutdown is likely to last. In the event of a long-term shut down, hazardous material removal should be a primary concern. "There is no reason to have methanol vapors around if it's not necessary," says Derek Masterson, Crown Iron Works Co.'s product sales manager. "There have been a lot of accidents in the past years because of maintenance work done on vessels that contained methanol vapors. So, that's definitely a priority for safety reasons."
 
 This might be easier said than done, however. Plants are designed to take in these hazardous substances, not offload them, Albin says. For this reason, it is important to get the right people and equipment involved to ensure a safe and complete removal of these substances.

 
 After the hazardous chemicals are offsite, the next step should be a complete cleaning of the facility, including the flushing of all lines. Special attention should be paid to lines that might contain salt, such as glycerin lines. If these lines aren't flushed and cleaned properly, it will lead to problems down the road. "[The salt] could harden and cause things to be very difficult to clean upon startup," Masterson says. "If you were to try to startup the plant again without cleaning it first, there would be significant problems, so our general suggestion is to clean upon shutdown. Then you won't need to worry as much when the plant is started up again."
 
 Baumgartner agrees that special attention should be paid to glycerin lines, but also notes that at all applicable machines, such as those made from carbon steel, should be filled with a conservation fluid during a long-term shutdown. "Basically they are mineral oil-based fluids," he says, noting that several are available on the market. It is also possible to use pure biodiesel for this purpose, Baumgartner says, so long as it is treated with an oxidation stabilizer. If the biodiesel is not stabilized, it can degrade and get gluey. 
 
 Facilities located in cold climates also need to ensure that all water lines are properly drained to prevent damage from freezing, Baumgartner says. "Freezing water can cause huge issues," Albin agrees. "It will freeze up a pipe, a valve, a pump. It will bust it open and you won't know until later."
 
 In addition, all bearings with squeeze lubrication should be filled completely with grease to prevent air from reaching the metal and causing corrosion, Baumgartner says. Actions should also be taken to protect carbon steel components from corrosion. This can be done by covering all areas that may be exposed to air with a corrosion inhibitor, he continues. Electrical components must also be protected from moisture in the air. "Electrical equipment should be sealed, and it's recommended to use silica get packets," to protect these elements from moisture, Baumgartner says. 
 
 It is also a good idea to get in touch with the manufacturers of a facility's boiler and water treatment systems for advice on how to store these pieces of equipment so they don't seriously degrade over time, Albin says.
 
 Whether an idle plant keeps an employee onsite, or hires a contractor, it is also important to have someone regularly turn pumps, motors and bearings because these components can degrade if left in the same position for a significant period of time. "It's just like if you have a tire on your car and it sits there for five or six years on that tire, it will flatten on one side," Albin says. 
 
 Even when greased properly, moving parts that are left sitting stationary for an extended period can displace the grease due to pressure. This can cause pitting, Baumgartner says. Suppliers offer recommendations on how often these parts should be rotated. It is best to abide by their recommendations.
 
 
 Maintaining Quality 

 
 Taking these kinds of protective actions at an idle facility can go a long way towards maintaining the value of a plant, which is important regardless of whether a company intends to retain the facility or sell it. According to Albin, approximately 20 facilities have approached or interacted with REG regarding possible sales, upgrades or technology partnerships. "The level of upkeep runs the gamut on those plants; from some people who didn't know that they were doing to start with, to some that had plants that were running and have kept them very well, to some people who at the end, when they were running out of capital, didn't keep them very well," Albin says. "It really runs the gamut on what you see out there." 
 
 Regarding facilities that REG has considered acquiring, Albin says proper upkeep of maintenance and safety standards does play a significant role in the decision to purchase. "If [a facility] is not kept well, then that's a cost to purchase or to startup that has to be taken into consideration," he continues. "They can be significant costs."
 
 REG recently acquired and restarted its Seneca facility, which had been idle for more than a year. "We had to take a long time going through that one with the people who had been there before, using our experts to come up with a startup plan that we probably worked on-including that deal-for four or five months, to figure out exactly what it was going to cost to startup," Ablin says. "That plant has got two of three lines already past the performance guarantee. It is running quite well, but it takes a lot of planning and expertise to do that."
 
 
 Restart
 
 As economic conditions improve and federal lawmakers continue the effort to pass an extension of the biodiesel tax credit, it is likely that more and more idle biodiesel plants will restart operations. When restarting a plant, Masterson says it is probably best to take the same steps that were taken when the facility was started for the first time. This includes checking all electrical connections, checking mechanical connections and running each piece of equipment individually. It may also be beneficial to run water through the entire system to make sure everything is working properly before vegetable oils and chemicals are introduced into the system, Masterson continues. 
 
 "If I were a new owner taking over a plant, I would check everything as if it never ran before and as if I were starting it for the first time," Masterson says. "But if the owner is the same and the plant has simply been idle for awhile, I would still do a lot of checking."
 
 In chemical pipelines, such as those delivering methanol, Baumgartner says he recommends that gaskets be changed out and that increased safety measures be taken until the system has been checked for leaks. 
 

 It is also necessary to reverse many of the protective actions that were taken while the plant was idle, Baumgartner says. Any bearings that were filled with excessive grease to protect them from corrosion need to be cleaned to remove the extra lubrication. Restarting equipment with too much grease in the bearings can cause overheating, which could cause damage. In addition, all elements that were filled with corrosion inhibitors must be drained. We also highly recommend that all stopped rotors are manually turned before they are filled with media and restarted, Baumgartner continues. 
 
 He also notes that some necessary maintenance activities, such as the replacement of seals and gaskets, should be completed right before restart. Once a plant is restarted, it should not be shut down again in the short-term for maintenance reasons, he says. In addition, all lubrication and hydraulic fluids should also be changed out prior to restart. 
 
 "Biodiesel plants aren't unique in having to be shut down and restarted," Masterson says. "The No. 1 aspect, I think, is safety in terms of methanol. No. 2 is in terms of salts and other residues, and No. 3 is general maintenance issues."
 No matter what a facility's status, Albin says it is never okay to compromise on safety or environmental issues. "You need to make the right decisions on how long you are going to be down, and make some good decisions on whether you are going completely down-and if you are, cleaning everything out and doing that the right way."
 
 
 Author: Erin Voegele
 Associate Editor, Biodiesel Magazine
 (701) 850-2551
 <a href="mailto:evoegele@bbiinternational.com">evoegele@bbiinternational.com</a>

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Equipment Expert: Brad Albin, Renewable Energy Group Inc.'s vice president of manufacturing, says that safety and environmental standards must be maintained, even when a facility is idle. 

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A proper maintenance program can help retain a facility's value and ensure a swift restart

Maintaining Safety and Value

Producing biodiesel is a relatively easy and straightforward process, but handling and containing the various hazardous chemicals it involves should not be taken lightly. Common chemicals found at a plant, such as methanol, can leave plants vulnerable to fires and explosions if the equipment isn't properly designed within state, local and municipal fire codes. Additionally, plant personnel are expected and required to go through extensive chemical spill and fire response training in order to help preserve property, and personnel safety, in accordance to Occupational Safety and Health Administration and International Fire Code standards, along with other supporting local or state safety protocols. Despite the industry's good-faith efforts for enforcing chemical safety practices, its track record can tell a different story. From 2006 until 2009, approximately 21 accidents occurred in the form of fires or explosions, according to information reported in Biodiesel Magazine. Of that total, nearly half were linked to improper handling or containment of hazardous chemicals. "In municipalities where these plants were going in, it was a new thing for them," says Will Smith, engineering manager for Salem, Ore.-based Pacific Biodiesel Technologies Inc. Since 2000, PBT has provided engineering, equipment, contracting and laboratory services for 10 biodiesel plants in the U.S. "Fire marshals and permitting officials leaned heavily on owners and, through negligence, there was a lot of confusion on how to interpret the codes at that time," Smith continues. "Some fire code consultants didn't know how to classify, for example, a mixture and a reactor." As recently as July, Innovation Fuels Inc.'s 40 MMgy plant in Newark, N.J., had an explosion that injured an employee. The cause was attributed to a sulfuric acid leak from inside the plant's containment area. The employee was connecting hoses to a tanker truck filled with methanol when the sulfuric acid container behind him leaked and subsequently burst. In an industry that relied heavily on a tax credit during its heady days of breakneck growth, the incentive has since expired, causing many plants to curtail installed capacity or shut down operations altogether. Consequently, concerns mount whether operating plants, including those in "hot idle" status, have the financial resources available to put chemical safety at the top of their lists as the industry heads into 2011. Regardless of financial standing, according to Smith and fire department officials, producers should keep chemical safety a high priority during both the preconstruction and operation phases. Building to Code As the saying goes, "compliance costs money." But the cost to upgrade fire- or explosion-damaged property will by far outweigh the cost of installing fire protection equipment carefully selected during the engineering and permitting stage. Typically, biodiesel plants adhere to National Fire Protection Association code 30, which is a common starting point for engineers in preconstruction and for local fire authorities for compliance during inspections when built. The code outlines specific containment and spatial procedures for flammable and combustible liquids stored in a facility. NFPA 30 gives specified classification ratings to various chemicals according to their flammability and combustibility properties. For example, biodiesel and glycerin have a flash point at or above 200 degrees Fahrenheit and are listed as Class IIIB combustible liquids. Methanol is a Class IB flammable liquid and sodium methoxide is a Class IC flammable liquid. Sulfuric acid and sodium hydroxide (lye) are nonflammable and noncombustible, but are very reactive caustic materials. One of the best ways for plants to mitigate risks of potential fires or explosions is to involve local fire authorities early on in the design of the plant to ensure that proper fire protection systems are in place in the event a fire or explosion occurs, according to Jason Allen, fire safety engineer for the Georgia State Fire Marshal's Office. "One of the best things that people can do is to make sure they get with their local fire authorities, whether it's the fire department or the fire prevention bureau within the fire department," he says. "Meet up with them, go over emergency planning, bring the fire department in and go over with them where hazardous materials are." The additional cost of proper engineering and equipment will pay off, especially in the face of human error, Smith says. He agrees with Allen that plants should maintain a solid rapport with local fire authorities particularly whenever plants choose to make modifications. "Whenever we make a major change at a plant, we like to bring them out to show them," Smith says. "If you move tanks or change contents of tanks and so forth and if there was ever an accident, first responders may be unfamiliar with what's being installed." Plants should also consider staying in line with what National Electric Code requirements call for when developing a project or while in operation, according to Allen. Certain code requirements, he says, target specific placement and usage for C-lofts, explosion-proof boxes/junctions and so on. Specific codes within the NEC also warrant procedures for grounding and bonding electrical wiring when plants are exposed to nonconductive flammable liquids that have the potential to build up a surface charge to static electricity. "You want to have certain ground procedures where you can help alleviate static build-up to ground or have bonding where you have electrical continuity," Allen says. "This is especially true if you're going through polymeric or elastomeric type hoses so you can maintain some sort of electrical continuity there." Knowledge is Power The prevailing consensus among biodiesel producers, according to Sanjeev Saraf,&nbsp;a senior associate with Exponent Inc. and author of the <a href="http://risk-safety.com/biofuel-safety-is-it-time-for-bio-psm/">Risk and Safety&nbsp;Blog</a>,&nbsp;is that process safety can be achieved by common sense and enforcement of prescriptive codes and standards; however, considerable expertise is needed to comprehensively mitigate biodiesel manufacturing risks. One of the best ways to ensure chemical safety is to voluntarily adopt a process safety management (PSM) program. The code of federal regulations 29 under CFR 1910.119 mandates a PSM program if more than 10,000 pounds (1,517 gallons) of methanol is present in a production facility, and all but the smallest of plants have more than this amount. Implementing a PSM can not only assist the biodiesel industry in the prevention of catastrophic accidents, but it can also enhance employee knowledge of operations, improve technical procedures, maintain accurate process safety information and increase overall facility productivity. At first glance the documentation requirements of a PSM may seem daunting, but a guideline document to ensure compliance with a PSM without consuming too many resources can be developed, according to Smith. "You can never build anything that's 'idiot proof,' especially when you're handling flammable and combustible liquids," he says. Clearly, being in compliance with construction codes goes hand-in-hand with compliance of personnel safety training codes. "It's very important for everybody to be informed," Smith adds. "Even at smaller facilities under those 10,000 pounds, it's still a good idea to implement a PSM-type program anyway. It may be more of a burden at a smaller plant, but the hazards remain the same to personnel." The PSM program is not a document that can be copied from one site and applied to another. Each phase of the operation is evaluated for potential hazards and problems that could be encountered during normal operation, start-up, shut down and standby or down time. A fundamental starting point, Allen says, is for plant personnel to regularly refer to their Materials Safety Data Sheet, a thick booklet found at every chemical plant as required by OSHA. The MSDS describes in detail the chemical characteristics and properties of each hazardous chemical staff are exposed to, along with recommended safety response measures in the event an accident occurs. "Although some of the chemicals may be nonflammable and noncombustible, they can certainly go through reactions that create flammable gases and heat; in some cases enough heat to self-ignite," Allen says. "It's best to always know the reactions that you're using as well as recognize hypothetical reactions that could occur if the wrong chemicals-or steps-are mixed together." Author: Bryan Sims Associate Editor, Biodiesel Magazine (701) 738-4974 <a href="mailto:bsims@bbiinternational.com">bsims@bbiinternational.com</a>

The process area in SeQuential's plant shows several design elements pertinent to facility safety when it comes to dealing with hazardous chemicals, such as a concrete firewall, the use of XPFC-rated motors and instruments, in-code wiring and proper 

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FIREPROOFING: An aqueous film-forming foam fire protection system and diesel booster pump are installed at SeQuential-Pacific Biodiesel's 5 MMgy plant in Salem, Ore. Photo: SQPB

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Why the biodiesel industry should heed chemical safety standards now more than ever

Chemical Safety Matters

Industrial accidents, where a seemingly routine task turns into catastrophe for the unwitting employee, happen every day. The Deep Water Horizon oil platform explosion, which killed 11 workers, followed by an environmental catastrophe; recent mine accidents in the U.S. and Chile; the death of 19- and 14-year-olds in an Illinois grain facility, are just a few recent examples. In the aftermath, there are always calls for stiffer criminal penalties against corporate officers and management. Many states already have a history of prosecuting corporate officers for homicide in extreme cases. About a year ago, OSHA adopted a policy that it will refer all fatalities it concludes resulted from willful violations of an OSHA standard to the U.S. Department of Justice for consideration of criminal prosecution. While only employers (not corporate officers or managers) can be criminally prosecuted under current federal law, this may change. 
 
 Under the proposed Robert C. Byrd Miner Safety and Health Act of 2010 (HR5663), U.S. Occupational Safety and Health Act of 1970 would be amended to raise prison terms to 10 years for a first conviction and 20 years for a second conviction in the event of a fatality resulting from a "knowing" (seemingly a lesser standard than "willful") violation of an OSHA standard. In addition, under the proposed amendments, any "knowing" violation of an OSHA standard resulting in "serious bodily injury" could result in imprisonment for up to five years for a first offense and up to 10 years for a second offense. Corporate officers and directors would be subject to prosecution, fines and imprisonment under both proposed changes.
 
 
 Anatomy of Catastrophe
 
 Most corporate officers and directors don't think that horror stories about catastrophic accidents will ever involve them. After all, in 2010 most U.S. companies have a safety program and at least one person charged with safety responsibility. Yet catastrophic accidents nevertheless happen. In the vast majority, industrial activity creates circumstances in which stored or built-up energy is unexpectedly released with employees in harms' way. Sometimes this is just a fall from a ladder. Other times employees are trapped in machines, equipment or containers for hours, or for coal miners, months. Sometimes there is an explosion and/or fire. Following the event, rescue equipment piles up outside, and news reporters, trucks and helicopters arrive. 
 
 Accidents involving a combination of human and equipment error are different from a slip and fall case, a fall from a ladder or similar circumstances. Injuries involving equipment or entrapment are interesting, often gruesome, and therefore, of interest to the press. This can have devastating results for a company and its owners as media, customers, employees, the community where the business is located, and law enforcement officials follow the developing story over days, weeks or even months. 

 
 In response, the inevitable "rear view mirror" analysis leads to the knee-jerk conclusion that there had to have been human error-employer failure. The media and law enforcement focus first on the company's past OSHA record available on the internet. Then they ask the difficult questions: Why were the employees exposed to such dangerous conditions? Who knew these conditions existed or should have expected them? What was done to attempt to prevent them? If answers aren't sufficient, a referral for criminal prosecution may follow. 
 
 Many of the mega-fines leveled against employers and the criminal prosecutions of companies in the past were based not on the fact that any company manager directed an employee to do something unsafe, but, instead, on the employer's alleged failure to consider the process, to develop a plan to avoid an accident and then to implement that plan. Many times the employer had a rule in place to avoid the incident, but allegedly failed to enforce compliance.
 
 
 Lockout/Tagout Standards
 
 The biodiesel industry has to deal with some of the more common hazards that have been involved in the recent, high-profile cases mentioned above-fire and explosion hazards, confined spaces, grain or other storage facilities, and flammable material piping processes. But if biodiesel manufacturers had to follow just one regulation, the choice among government regulators likely would be the lockout/tagout standard, 29 CFR 1910.147, often referenced by the shorthand, "LOTO."
 
 LOTO refers to specific practices and procedures employers must adopt and implement to safeguard employees from unexpected energizations or start-up of machinery and equipment, or release of hazardous energy during service or maintenance activities. LOTO procedures can be found in many standards besides 29 CFR 1910.147. Those applicable to biodiesel are addressed in electrical safety standards (29 CFR 1910.306 and 333), process safety management regulations (29 CFR 1910.119-the most commonly cited standard in the biodiesel industry), as well as in confined space standards (29 CFR 1910.146), and grain handling facility standards (29 CFR 1910.272), among others. 
 
 Generally, all of these require that a machine, process, space or equipment be rendered safe before an employee enters it or puts a body part in the zone of danger. LOTO-type standards also require that an employee who enters a danger zone have exclusive control over the danger, so that another person cannot reintroduce the hazard unaware of the presence of the employee in harm's way. The employer must insure it has provided a fail-safe mechanism that prevents human error and a potentially-tragic result. Finally, LOTO-type standards recognize that employees may take shortcuts, forget or deliberately bypass safeguards to solve problems more quickly or increase productivity. LOTO requirements mandate training and audits of procedures to verify compliance. 
 
 Recently, the head of federal OSHA responded to a series of fatal accidents in grain storage facilities with a letter to 3,300 grain facility storage operators. The letter identified specific steps that, in the OSHA chief's view, are required of employers by existing law. First on the list was to lockout all power equipment. The letter identified three separate companies that were recently issued combined penalties of almost $4 million. The letter concluded with this warning: "If any employee dies in a grain storage facility, in addition to any civil penalties proposed, OSHA will consider referring the incident to the Department of Justice for criminal prosecution pursuant to the criminal provisions of the Occupational Safety and Health Act of 1970."

 
 The OSHA Administrator's letter demonstrates the current tone of his agency, including its bent toward referring all potentially appropriate cases for possible criminal prosecution. It also highlights the focus OSHA is placing on deaths caused by entrapment hazards, especially in the agricultural industry and the relationship of those hazards with LOTO standards. 
 
 A rational biodiesel employer should look proactively for entrapment and other LOTO-types of dangers to its employees involved in maintaining, repairing, cleaning and loading/unloading equipment, electrical components, machines, tanks, pipes, containers, and other storage spaces and take steps compliant with the LOTO standard and the LOTO requirements of other standards. Educate employees on LOTO principles and solicit their assistance in identifying related hazards. Create a comprehensive written program that addresses LOTO principles as applied to each of the work practices identified. Create a step-by-step LOTO procedure for each such practice to insure that the hazards are neutralized before any work is done. Document all employee training. Conduct audits at least annually in order to verify continued compliance by the employer and employees, and document the audit and its results. Biodiesel employers may be eligible for free consultation programs from state and federal resources to assist in developing these programs.
 
 
 Authors: Charles B. Palmer, Eric Hobbs
 Attorneys, Michael Best & Friedrich LLP 
 (262) 956-6518
 <a href="mailto:cbpalmer@michaelbest.com">cbpalmer@michaelbest.com</a>

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Why biodiesel producers should take lockout/tagout procedures seriously

Lockout or Be Locked Up

Posted Nov. 23, 2010
 
 Milwaukie, Ore.-based Biomass Renewable Technologies Inc. has signed an agreement with Whole Energy Fuels Corp. out of Bellingham, Wash., to manage the marketing, sales, production and deployment of its proprietary biodiesel production processes and equipment. 
 

 BRT, a chemical process development company, holds patents for several renewable energy technology processes, including those for biodiesel, gasification and anaerobic digestion. Regarding biodiesel technologies, BRT offers both biodiesel production systems and add-on specialty modules. 
 
 Since few completely new biodiesel plants are being built right now, the add-on specialty modules are a significant area of focus for BRT. One such module is designed to aid plants that are using high free fatty acid feedstock. According to BRT CEO Davis Clements, facilities employing that type of feedstock need a way to reduce high free fatty acids to an easily treatable level. "One of the offerings we have is a high free fatty acids system that will take and reduce the free fatty acids down," he said. "That can integrate directly into an existing plant." Other modules offered by the company can solve problems associated with methanol recovery, sterol removal, feedstock de-gumming and product purification. 
 
 While BRT is adept at identifying problems in biodiesel production and designing technologies to solve those problems, Clements said that his company is less experienced with marketing those solutions to consumers. By leveraging Whole Energy's marketing expertise, Clements said BRT's customers will be better served. "I think it's a very complementary arrangement that we've come to," he said. "It's really a collaboration building from two different sets of strengths."
 
 Under the agreement, Whole Energy will provide marketing, project management and customer service for the deployment of BRT's technologies and processes. "We continue to support regional production and markets that prefer regional products, and that often depends on technical expertise," said Whole Energy CEO Atul Deshmane. "The process technology experience of BRT both supplements and compliments our team."
 
 Clements added, "We're enjoying and looking forward to a much stronger, more viable [biodiesel] industry as a whole. And, we are looking forward to taking our parts and participating in that industry."

Biodiesel process firm teams up with marketer

Posted Nov. 24, 2010
 
 In January, the U.S. DOE awarded the National Alliance for Advanced Biofuels and Bioproducts (NAABB) $50 million dollars in funding to research and develop a method for converting algae oil into biodiesel. Roughly six months after beginning the work, NAABB has proven that the DOE's funding award was well earned, after announcing a consortium between leading scientists, engineers, universities, private industry and national laboratories has successfully produced ASTM-spec biodiesel from an algae-based feedstock. 
 
 "This is a big deal," said Dave Sams, vice president of business development for Catilin Inc., an innovative biodiesel processor company. "This is the most money the DOE has given to convert algae to biodiesel." Made up of 33 members, the consortium used algae oil provided by Eldorado Biofuels, and Catilin converted the oil using their T300 solid catalyst system, which produces a highly purified glycerin product. 

 
 The oil provided by Eldorado was mainly triglycerides, according to Sams, and after converting it into a crude biodiesel via transesterifcation, it was distilled to create a biodiesel that met ASTM specs. The amount of product produced was only at bench scale, equaling a couple of liters, but Sams says the consortium will continue to work on the process methods. "The biggest challenge today in converting algae to fuel is the harvesting and extraction step," Sams said, adding, "the algal biology is pretty well understood, but the killer is harvesting and extraction, and just getting algae out of the pond is expensive because you can't be burning a lot of fossil carbon trying to dry the biomass." 
 
 There are at least five teams working on the harvesting and extraction step, and although some are looking at ways to gasify the biomass for power generation, Sams says the main aim of the consortium and the goal of the DOE is to convert algal oil into biodiesel. The Donald Danforth Plant Science Center in St. Louis has the contract from the DOE, and the members act as subcontractors to the Science Center with Danforth managing the consortium. "We are only half way through year one," Sams said. "So we have two-and-a-half more years." NAABB will now distribute the oil to all of its members for engine emissions testing.

Algae biodiesel milestone achieved

Posted Nov. 30, 2010
 
 The U.S. EPA has released final 2011 volume requirements for the renewable fuel standard, RFS2. While the agency reduced the volume requirement for cellulosic biofuel due to low production estimates, the standard for advanced biofuel has been maintained at the statuary level of 1.35 billion gallons. According to the EPA, the standard for advanced biofuel is able to be maintained because the agency believes that production of other advanced biofuels, such as biodiesel, renewable diesel, and sugarcane ethanol, will be sufficient to fill the gap caused by the disconnect between the statuary requirements for cellulosic biofuel and the actual volume of the fuel that is expected to be produced. 
 
 The 2011 volume percentages for RFS2's four nested pools are:
 
 - Cellulosic biofuel-6.6 million gallons (6.0 million gallons of ethanol equivalent volume)
 - Biomass-based diesel-0.80 billion gallons (1.20 billion gallons of ethanol equivalent volume)
 - Advanced biofuel-1.35 billion gallons (1.35 billion gallons of ethanol equivalent volume)
 - Renewable fuel-13.95 billion gallons (13.95 billion gallons of ethanol equivalent volume)
 
 These volumes represent the minimum amount of renewable fuels that must be consumed in the U.S. during 2011. According to the EPA, volumes of cellulosic biofuel or biomass-based diesel consumed above and beyond these requirements will count towards the advanced biofuel and total renewable fuel volume requirements. Together, the four categorical standards ensure that approximately 8 percent of all fuel used within the U.S. next year will be renewable. 

 
 Although biodiesel production appears to have been significantly affected by the expiration of the biodiesel tax credit and E.U biodiesel tariff, the EPA said in the final rule that U.S. biodiesel producers have produced higher volumes in times when it was economic to do so, which leads the agency to believe the industry is capable of producing higher volumes of fuel in the future under appropriate economic circumstances. In fact, the rule states that the agency has found that only 52 U.S biodiesel plants, representing a production capacity of 600 million gallons, have been idled. While ramping up production will require time and reinvestment, the EPA states that feedback from the industry has made it confident that that ramp-up can occur in time to meet a production goal of 800 million gallons. 
 
 "The U.S. biodiesel industry is pleased that the EPA has issued the final 2011 RFS2 volume requirements," said Manning Feraci, the NBB's Vice President of Federal Affairs. "There are significant job creation, energy security and environmental benefits associated with expanded biodiesel use. Today's rulemaking-in particular the requirement to use 800 million gallons of biomass-based diesel in the domestic fuels marketplace-will allow America to reap these benefits…The U.S. biodiesel industry stands ready to provide the fuel that will be needed to meet the readily attainable biomass-based diesel goals established in RFS2. We look forward to working with all industry stakeholders to successfully implement this worthwhile program."
 
 In addition to setting volume requirements for 2011, the EPA's rulemaking also included several administrative announcements and RFS2 regulation changes. The final rule released by the agency has modified the provision for "delayed RINs" by making it more broadly applicable to any biofuel production pathway so long as the biofuel was in commercial production on July 1, 2010, the agency receives the appropriate fuel pathway petition by Jan. 31, 2011, and determines the fuel pathway provides for greenhouse gas reductions required by the Energy Independence and Security Act of 2007. The final rule has also established criteria for the EPA to use in determining petition approvals for foreign-growth feedstocks, set the price for cellulosic biofuel waiver credits, and announces the results of EPA's annual assessment of the aggregate compliance approach for U.S. crops and crop residue. 
 
 A full copy of the EPA's rule, titled "Regulation of Fuels and Fuel Additives: 2011 Renewable Fuel Standards," can be <a target="_blank" href="http://www.epa.gov/otaq/fuels/renewablefuels/rfs-2011-standards-rule-preamble-regs.pdf" rel="external">downloaded</a> from the agency's website.

EPA releases 2011 RFS2 volume requirements

Posted Dec. 1, 2010
 
 A new fuel station in the New York metro area is now offering B5 to customers. The location, a Sunoco station located in the in the Hunts Point section of the South Bronx, caters primarily to fleet drivers. 
 
 Biodiesel sold at the station is being supplied by Bronx-based Tri-State Biodiesel LLC, a local waste cooking oil collector, render and biodiesel marketer. TSB partners with Rochester-based Northern Biodiesel Inc. for biodiesel production. According to TSB CEO Brent Baker, his company supplies feedstock to Northern Biodiesel, and then markets the resulting biodiesel in the New York metro area. 

 
 TSB has been operating for approximately five years, Baker said. Currently, the company collects waste cooking oil from more than 3,000 restaurants. "Most of them are in New York, but we also service northern New Jersey and Connecticut," Baker continued. 
 
 According to Baker, TSB is currently working to contact fleets to fuel with B5 at the Sunoco station. While he cannot provide an estimate of how much biodiesel might be sold at the station over the next year, Baker notes that two of the fleets his company is working to get onboard with the fuel would utilize up to 100,000 gallons of fuel per month. "We're hoping it will be more than that," Baker continues. 
 
 While the Sunoco station is currently only offering a B5 blend, Baker said that the plan is to offer higher biodiesel blends in the future, specifically B20. However, a new tank will have to be added to the location before that happens. 
 
 The Hunts Point region of the Bronx is a busy industrial center within the New York metro region. Baker said his company is focusing primarily on increasing biodiesel use within the area due to its air quality issues. A lot of those issues trace back to the trucking industry, Baker said. The region also has a high unemployment rate, and many of the existing jobs are supported by trucking. "Biodiesel sort of represents a bridge to addressing those issues; the issues of keeping the industry here and keeping the jobs here while still being able to clean up the air," he said. 
 
 According to Baker, the Hunts Point Economic Development Corp. is also supportive of greater biodiesel utilization within the city. "[The organization] recently released a study on how to green the fleets in the Hunts Point area to try to address these problems," he said. "One of their major recommendations was the use of biodiesel."
 
 About a dozen local fleets are currently sourcing biodiesel from TSB. Baker said the local industry is trending towards more acceptance of the fuel. "That being said, there is still a lot of skepticism out there, and it's definitely not an easy sale-ever," he continued. "But, they are finally warming up."
 
 While TSB's current focus is to encourage customers to utilize the B5 being supplied by the Sunoco station, Baker also said his company's long-term goal is to expand biodiesel availability within the city. "We're also exploring opening our own gas station," he said. "But right now, we're just trying to focus on getting a lot of folks using this one, and making sure this one is successful so we can point to it and say 'look, here's a success story in terms of biodiesel going into a station, and the traffic for that station going up.'"
 
 Local fleets interested in signing a contract with the Sunoco station for B5 should contact TSB directly, Baker said. "We actually have a commitment from that station and through our relationships to be able to provide at or below the price of any of the other neighborhood stations' fuel, guaranteed," he said. "We're very serious about that, so if people want to switch they are going to be paying less-not more-using that station."

New York station now offering B5 to fleets

Posted Dec. 1, 2010

 
 Beginning later this month, Renewable Energy Group Inc. will offer its branded REG-9000 biodiesel for splash blending at a Kinder Morgan terminal site near Chicago, in Agro, Ill. 
 
 According to Jon Scharingson, REG's director of marketing, the new terminal will expand REG's downstream capabilities that will allow petroleum marketers to continue to supply biodiesel to a healthy B11 market. 
 
 Illinois has excise tax abatement for biodiesel blends of B11 or higher sold in the state, which is in effect through Dec. 31, 2013. Created in 2003, the sales tax incentive provides a partial sales tax exemption of 20 percent on biodiesel blends from B1 to B10. Blends above B10 receive a total exemption from the state sales tax of 6.25 percent, effectively creating an Illinois-specific market for B11.
 
 "Illinois petroleum distributors blend more biodiesel than any other state due to the B11 incentive," Scharingson said. "Kinder Morgan's Agro terminal is one of the most active terminals in the state of Illinois. REG is excited to offer its customers the opportunity to pull transport loads from this terminal."
 
 The Kinder Morgan terminal is equipped to handle large volumes of various fuel and chemical commodities that feature a total storage capacity of nearly 2.5 million barrels from 218 tanks with each tank having a storage capacity range between 50,000 to 80,000 barrels. Located along the shore of Lake Michigan, the terminal has access to multiple forms of land and water transport. 
 
 REG expects biodiesel from its two production facilities in Seneca and Danville to be the primary suppliers for the new terminal location.

REG's Seneca plant will be one of two facilities providing the Agro terminal with REG-9000 biodiesel. // PHOTO: REG INC.

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Chicago area terminal soon to offer biodiesel

Posted Dec. 1, 2010
 
 The Canadian Renewable Fuels Association released an industry report card during its 7th annual Canadian Renewable Fuels Summit, held Nov. 29-Dec. 1 in Gatineau, Quebec, highlighting the nation's recent successes and offering an outlook for biofuels progress in Canada. The report, titled "Growing Beyond Oil - Delivering Our Energy Future," was released to conference attendees, industry stakeholders and Canadian government officials, and is the first comprehensive review of Canada's biofuels industry, according to the CRFA. 
 

 The recently passed federal renewable fuel standard topped the CRFA's list of industry accomplishments. The standard established a national E5 mandate, which is set to go into effect on Dec. 15, as well as a B2 mandate, which is yet to be finalized. CRFA President Gordon Quaiattini told the approximate 300 industry professionals attending the conference that the RFS will ensure a market for Canadian biofuels and provide certainty to investors. "The RFS is the cornerstone upon which our industry is built," he said. "I want to thank the government for keeping its word and delivering this essential commitment." 
 
 He also urged government officials, however, to proceed with finalizing the biodiesel portion of the RFS and said this issue remains to be the CRFA's largest priority. "I believe the government understands the importance of this matter," he said. "I believe our successes to date have convinced them that just as we have delivered on ethanol, we can-and we shall-deliver on biodiesel." The CRFA has suggested a B2 mandate start date of April 1, 2011. A lengthier delay would almost certainly prevent the build-out of additional biodiesel capacity and could also result in the loss of existing capacity, according to the industry report. 
 
 The industry report card spotlighted recent economic contributions that can be attributed to Canada's biofuels industries, including: 
 
 -	 $2.3 billion in the investment of new production facilities over the past five years, representing approximately 528 million gallons of annual production capacity 
 
 -	$3 billion of economic activity as a result of biofuels facility construction 
 
 -	The creation of more than 14,000 new direct and indirect jobs via the construction of new production facilities and more than 1,000 permanent manufacturing jobs 
 
 Other challenges facing the Canadian renewable fuels industry will include the build-out of additional capacity and the accelerating the development of advanced biofuels. Quaiattini told conference attendees that advanced biofuels will continue to be a core focus of the CRFA, and advancing their development will be achieved partially by also expanding support for first-generation biofuels. "Because we know as an industry that it is our leadership in advancing first-generation biofuels that permits the next generation of advanced biofuels to arise," he added. 
 
 The CRFA's long-term goals include expanding the RFS to include higher mandates for conventional biofuels and additional categories for advanced biofuels, to work with the government to create an interdepartmental working group on advanced biofuels to address the emerging industry, and to restore funding to the Sustainable Development Technology Tech Fund. The CRFA would also like to improve the SDTC NextGen Fund to better provide support for the commercialization of advanced biofuels technologies. 
 
 "We have work to do as an industry," Quaiattini said. "We have tasks yet to complete. But there can be no serious doubt that we have met and exceeded every test asked of us by government. Growing beyond oil isn't a promise. It is not an aspiration. It is a statement of fact and a description of what we've done to date. When we look to the future and incredible promise of advanced biofuels, we know that our best days are those yet to come."

 
 SOURCE: ETHANOL PRODUCER MAGAZINE

CRFA unveils Canadian industry report card

The RINAlliance, a web-based renewable fuel compliance service, has added "the Godfather of biodiesel in the Northeast," Ed Burke, to its board of directors. Burke, the Chairman of Dennis K. Burke Inc, a Chelsea, Mass.-based fuel distributor of diesel, biodiesel and E85, said his new role is good for the RINAlliance due to geographical diversity. "I'm a good number to have for people that need the services of RINAlliance who are geographically far away from Iowa," he said. 
 
 The President of the Petroleum Marketers and Convenience Stores of Iowa, and a developer of the RINAlliance, Dawn Carlson, called the addition an honor, citing Burke's enthusiasm and leadership skills. Burke has spoken across the country on the intricacies of marketing biodiesel and was the first to bring biodiesel to the commonwealth of Massachusetts. He believes he is joining a phenomenal outfit. "When I first met them (RINAlliance)," he said, "I said if they were a public company I would buy stock." 
 
 As part of the board, Burke expects to perform "normal" activities that he said will initially include discussing buying RINs on a forward basis, and whether or not the company will do that in the future. "Ed Burke understands what complicated government regulations can do to a business," said Jeff Hove, vice president of the company. As for the complicated tax incentive situation, Burke feels in some cases the current value of biodiesel RINs may offset the lack of the tax credit. While he does not remain optimistic about a renewal of the credit, he did say there might be other alternatives, one of which was based on a similar credit deduction currently being discussed in the ethanol industry. "Why doesn't someone pose the question, 'Would 50 cents work?'?"

Ed Burke is now on the RINAlliance board of directors. // PHOTO: RON KOTRBA, BBI INTERNATIONAL

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Burke joins RINAlliance board

Posted Dec. 1, 2010
 
 The Senate Environment and Public Works committee has reauthorized the Diesel Emissions Reduction Act first passed in 2005. Led by Chairwoman Sen. Barbara Boxer, D-Calif., and ranking member Sen. Jim Inhofe, R-Okla., the move if passed will continue a loan program initially set up to reduce diesel emissions via upgrades and modernization of older diesel engines and equipment. Sen. George Voinovich, R-Ohio, and Sen. Tom Carper, D-Del., introduced initial legislation in 2005 and the program was approved by a vote of 92-1. The program is set to expire in the 2011 fiscal year. 
 
 "While it's been difficult lately to find environmental issues that have near-universal bipartisan support among Democrats and Republicans, DERA has proven to be one program to do so," according to Allen Schaeffer, executive director of the Diesel Technology Forum. "In addition, a unique and diverse coalition of more than 500 environmental, health, industry, labor and government organizations are actively working for DERA's reauthorization." 
 
 The EPA estimates that every federal dollar invested into DERA translates into at least 13 dollars in health benefits, Schaeffer also said. "I am pleased that the EPW Committee was able to come together and pass common-sense environmental legislation," said Inhofe in a statement on the DERA legislation. He added that this program will achieve "worthy goals without sacrificing jobs or economic growth," and that the program acts as a model of bipartisan legislation "that I hope will swiftly pass through Congress and become law by year's end." 
 
 The DTF indicates that if all of today's older diesel were replaced by new models that meet current emissions standards for sulfur and particulate matter, at least 110,000 tons of particulate matter and 2.6 million tons of smog-forming nitrogen oxides will be eliminated from the nation's air. And compared to 1988 diesel trucks, trucks today emit one-sixtieth of the emissions. "To put it another way," the DTF said, "replacing or retrofitting the nation's older diesels with these newer, cleaner models will be the clean air equivalent of taking 13 million of today's trucks off the road." Standing in the way of the DERA program, however, is the lame duck session and a Senate and House passage of the bill.

Diesel Emissions Reduction Act nears renewal

Posted Dec. 1, 2010

 
 In a move intended to avoid delisting by the New York Stock Exchange, GreenHunter Energy Inc. relinquished ownership of its 105 MMgy multifeedstock biodiesel production plant on the Houston Ship Channel in Texas, formerly operated under its subsidiary GreenHunter Biofuels LLC. 
 
 According to Jonathan Hoopes, GreenHunter Energy president and chief operating officer, the company transferred all of its ownership shares to a trust for holders of its 10 percent debentures due in 2012. 
 
 Prior to officially relinquishing ownership of the plant, the company was notified by the NYSE about a year ago that it wasn't in compliance with listing requirements when GreenHunter's shareholder equity fell below the exchange's minimum $6 million threshold to remain listed. As a result, the stock exchange threatened to delist the diversified energy company from its NYSE Amex Equities listing if the company didn't improve its net liquidity. Rather than issue more shares, Hoopes said, the company decided it was best to restructure its balance sheet through a maneuver of divesting in its subsidiary, which raised shareholder equity above $8 million.
 
 "We waited until the deadline because we wanted to explore all our options," Hoopes said. "As a publicly traded company we're proud to say that we are still listed and have done so without any dilution of equity to our shareholders. We're here to fight another day."
 
 Located on 22 acres near Houston, GreenHunter biodiesel facility is located on the site of a previous waste oil and chemical treatment plant. The company purchased the $12 million site in 2007. The facility is capable of utilizing a variety of feedstocks. Since the plant was commissioned in 2008, Hoopes said the plant was operational for a few months until it was hit by Hurricane Ike, which severely damaged it. Faced with costly repairs, a stiff European import tariff and a lapsed biodiesel tax credit, the company lacked the capital necessary to repair the facility, the company essentially mothballed the plant. All the factors, Hoopes said, led to the decision to withdraw its ownership of the biodiesel asset. 
 
 "We sat there effectively with the ability to provide up to one-fifth of the U.S. DOE's projected biodiesel production last year," Hoopes said. Prior to its restructuring, Hoopes added GreenHunter entertained potential acquisition and/or partnership bids to get the plant operating again, but all of them fell through. "We received inquiries about once a month during the past year," he said.
 
 Now that GreenHunter has relinquished ownership of the biodiesel asset near Houston, GreenHunter will shift its focus on the biomass industry-specifically woody biomass for baseload power and electricity generation, according to Hoopes. The company currently owns a biomass plant in Southern California and is considering purchasing others across the country.
 
 "We found that the biomass sector is the least dependent on subsidy," Hoopes said. "We're looking at buying existing biomass assets and put them in our portfolio."

GreenHunter divests in biodiesel asset

Posted Dec. 3, 2010

 
 The number of biomass applications might be massive, but for some, there's one approach that offers the best long-term value of all-liquid renewable fuels. In support of that view is John Plaza, president and CEO of Imperium Renewables Inc., which owns the 100 MMgy biodiesel production facility in Grays Harbor, Wash. According to him, the best use for biomass relates to getting from point A to point B. "Our perspective is that biomass is much better suited for liquid conversion then electricity due to the multiple solutions for renewable electricity, and the very limited solutions for liquid transportation replacements," he said.
 
 We cannot assume that total electrification of our transportation system is a viable option, especially for aviation, Plaza said. "We need significant biomass resources to make a meaningful biofuel impact on offsetting carbon-based liquid transportation fuels, and biomass is the only real solution to this," he said. During the 2011 Pacific West Biomass Conference & Trade Show Jan. 10-12 in Seattle, Plaza will argue this perspective, explaining that there will always be a need for liquid transportation fuels and "if we use biomass for electricity, it threatens the viability of biomass to accomplish both." In terms of biomass-to-liquid fuels production, it doesn't matter what form of biomass is used either. The key however, is remaining feedstock-flexible by utilizing a technology that can convert various low-cost biomass sources, Plaza said.
 
 A strategy based on feedstock and technology flexibility is the new approach for Imperium Renewables, according to Plaza, due to lessons learned by having only once source of feedstock "that our current biodiesel business is controlled by, with respect to food-based oilseed crops." For Plaza, however, biomass utilization isn't just about supply for liquid fuels or based on the limited solutions for liquid fuel production. "Biomass-based chemicals also offer a higher value for the biomass in the long run, leading to new biomass development around dedicated bioenergy crops, more efficient biomass growing systems and many other benefits due to this higher value," he said, adding that all of this cannot be captured by a pure play in electricity generation.
 
 Accompanying Plaza's presentation regarding the best application for biomass will be another perspective that points to the benefits of converting low-value biomass into high-value coproducts. Eini Lowell, a research scientist for the USDA Forest Service, will speak about a process Lowell calls a hot water-based biorefinery. "At the chosen working temperature of 160 degrees Celsius," Lowell explained, "a significant fraction (50 to 75 percent) of the hemicelluloses can be hydrolyzed with the moderately acidic environment that occurs without added acid, in a moderate excess of water." At the specified temperature and pH level, Lowell said, little happens to cellulose and only a moderate amount of lignin is soluble, providing a dilute solution dominated by low molecular weight oligomeric and monomeric sugars with other low molecular weight products from wood and ash. "The soluble components are recovered for sale and the extracted wood is improved for utilization in a number of products," Lowell said.
 
 Lowell's presentation will include a look at a study currently underway at State University in New York. Using a sample of Ponderosa Pines from the Deschutes National Forest in central Oregon, the university is currently using a hot water extraction approach and recording the findings. "This study shows that the proposed process is applicable to small diameter Ponderosa Pine from the western U.S," Lowell said. "Uniqueness of this technique is controlling the processes to yield desired chemical coproducts while still maintaining the physical structure of the biomass for further processing into a variety of other products." 
 
 To attend the 2011 Pacific West Biomass Conference & Trade Show, January 10-12, and learn more about Plaza's thoughts on biomass utilization, Lowell's reactions to the hot water based biorefinery concept and other progress reports on converting residual forest materials into bio-based fuels and chemicals, click <a target="_blank" href="http://biomassconference.com/pacificwest" rel="external">here</a>.

Imperium CEO: Use biomass for liquid fuels and chemicals, not power

Posted Dec. 3, 2010

 
 This week marked a major milestone for the nation's transition to ultra-low sulfur diesel (ULSD) fuel as all highway diesel fuel in the U.S. complies with the landmark 15 parts per million (ppm) sulfur standard-a 97 percent reduction in sulfur content from diesel's 2006 levels.
 
 The Dec. 1 deadline was mandated by the U.S. EPA. However, according to EPA's pump survey, the highway transition to ULSD was actually completed a few weeks ago. 
 
 "It is quite a remarkable feat that refiners have been able to reduce the sulfur content in diesel fuel by 97 percent," said Allen Schaeffer, the Executive Director of the Diesel Technology Forum. "The United States now officially has the cleanest on-road diesel fuel in the world. This year has included several important environmental landmarks-the 40th anniversary of the Clean Air Act, the 10th anniversary of the National Clean Diesel Campaign, and now the official completion of the new ultra-low sulfur diesel transition."
 
 Schaeffer continued, saying, "The new clean diesel fuel will be a major contributor in helping cities and states meet strict new air quality goals set by the federal government. This new, ultra-clean fuel is extremely important because sulfur tends to hamper exhaust-control devices in diesel engines, like lead once impeded the catalytic converters on gasoline cars. Just as taking the lead out of gasoline in the 1970s enabled a new generation of emissions control technologies that have made gasoline vehicles over 95 percent cleaner, removing the sulfur from diesel help usher in a new generation of clean diesel technology. But we're not stopping here. We're also continuing our important work to transition off-road vehicles like farm tractors and construction machines to ultra-low sulfur diesel fuel. Construction and agricultural equipment manufacturers are well on their way to launching a new generation of low-emission clean diesel engines that will require this cleaner fuel. This effort is important toward decreasing emissions throughout the nation. Two-thirds of all farm and construction equipment rely on diesel engines due to their unique combination of power, fuel efficiency, economical ownership and operation and legendary reliability and durability."
 
 SOURCE: DIESEL TECHNOLOGY FORUM

Sulfur content in diesel reduced by 97 percent since 2006

Major milestone in US transition to ULSD

Posted Dec. 8, 2010
 
 A new algae-based biodiesel project is underway in Chile. On Dec. 3 Chile-based E-CL announced that a corporate technological consortium, Algae Fuel S.A., is pursuing a project to produce second-generation biodiesel from microalgae. The consortium was formed by E-CL, Copec, Pontifica, Universidad Catolica de Chile, Rentapack and Bioscan. According to information released by E-CL, the project is supported by the government agency InnovaChile of Corfo. 
 
 Construction on the Mejillones, Chile-based pilot facility is expected to take five years. The total cost of the plant is expected to be $6.84 million. According to E-CL, InnovaChile will contribute approximately half the funding needed for the project, up to a total of $3.25 million. 
 

 Although Biodiesel Magazine¬ was unable to reach a representative of E-CL for further comment on the project, the company's website states that the pilot project will allow Algae Fuel S.A.-affiliated companies to contribute to the development of local renewable energy source while creating new opportunities for their respective business operations. The project will also lead to important carbon emission reductions. 
 
 According to E-CL the first phase of the project includes the "prospection, isolation, purification and selection of microalgae strains." This will involve collecting algae strains from the Second Region sea, analyzing those samples and identifying the strains that are most amenable to the climate conditions of the Atacama desert, which is where the algae will be cultivated. The second phase is described as including shipping the algae to a field lab in Mejillones where they will be introduced into photobioreactors that source carbon dioxide from a thermoelectric power plant. Due to the thermal radiation conditions that result from this configuration, E-CL noted that the photosynthesis process is accelerated. The algae will then be transferred from the photobioreactors to pools, where they will continue to develop and reproduce. Next, the resulting algae will be harvested, and put through chemical flocculation and centrifugation processes in order to produce an algae biomass cake material. Finally, the algae cakes will be dried in special ovens and chemically processed to produce biofuels and other products. 
 
 Information released by E-CL states that the project is currently in the algae strain production phase, and that the field lab, which includes the photobioreactors, pools, and equipment is current being constructed. 
 
 In addition to biodiesel, there is potential to create a variety of algae-based byproducts, including algae biomass flour for use in animal feed, fertilizer, and cosmetics, as well as nutraceutical and pharmaceutical industries.

Algae pilot project underway in Chile

Posted Dec. 8, 2010
 
 Don't count the U.S. biodiesel tax incentive out just yet. Now, caught in the debate over estate, payroll and income tax rates included in the Bush-era tax cuts, there is a strong possibility the that the retroactive $1 per gallon federal biodiesel blenders tax credit may have another chance at renewal soon. While there is no official legislative text yet, Congress and President Obama have reportedly reached a compromise on the framework of a bill that would extend a plethora of soon-to-expire taxes. But the question remains, will that legislation include the renewal of the biodiesel tax credit? If a slew of tax provisions that expired at the end of last year, including the biodiesel incentive, are included in the legislation, the chances for the reemergence of the biodiesel credit is very possible, said Manning Feraci, vice president of federal affairs for the National Biodiesel Board. 
 
 "There are obvious job creation, energy security and environmental benefits associated with extending the biodiesel tax incentive," Feraci told Biodiesel Magazine. "Since the beginning of the lame duck session, there has been noteworthy bipartisan support for extending expired tax provisions like the biodiesel tax incentive." And Feraci couldn't be any more accurate. Just days before the media storm engulfing nightly television even began, Senator Mitch McConnell, R.-Ky., wrote a letter to Sen. Harry Reid, D.-Nev., calling for the renewal of the 2009 tax extenders along with the Bush-era tax cuts. "Finally," McConnell ended his letter, "Congress still needs to act on the 'tax extenders' and the alternative minimum tax patch, all of which expired on Dec. 31, 2009." 
 
 In his own show of support, Reid also produced language that called for the reinstatement of the biodiesel tax credit. On Saturday, Dec. 4, the Congress met to discuss two amendments proposed by Reid and Sen. Charles Schumer, D.-N.Y., that called for allowing the Bush-era tax cuts to expire for certain income brackets, $250,000 in Reid's amendment and $1 million in Schumer's. Although both amendments were defeated, they both included biodiesel language that substituted the Dec. 31, 2009 expiration date for the tax incentive with a Dec. 31, 2011 date. The language of the amendments also clarified that all fuel produced or sold after Dec. 31, 2009 would also apply for the provisions of the tax incentive, essentially retroactively reinstating the credit from 2009 and extending it through 2011. 

 
 While the biodiesel tax incentive once again has garnered strong support from both Democrats and Republicans, the political wrangling in Washington may also play a large role in its fate. Typically, a piece of tax legislation that goes to the House floor enters under a closed rule, meaning no amendments can be made, Feraci said. And, in the Senate, there are also ways to structure things in a way that doesn't allow for amendments, a process known as "filling the tree," which essentially blocks the ability to file for amendments and, instead, calls for cloture. 
 
 The biodiesel tax provision that expired in 2009 was one of 72 tax provisions and will most likely be considered a traditional extender that Congress reenacted, as was the case three times for the incentive since its introduction. For now, the best chance for a renewal rests in the fate of those tax extenders, and Feraci said, "We are hopeful that the tax agreement reached by President Obama and Congress will retroactively extend the biodiesel tax incentive through 2011."

Bush tax cuts may revive US biodiesel credit

Posted Dec. 8, 2010
 
 Researchers at Oak Ridge National Laboratory have discovered that treating biodiesel with a high-intensity dose of ultrasonic energy can remove and prevent the formation of precipitates. The project, led by Michael Kass, a researcher in ORNL's Energy and Transportation Science Division, could help overcome one of the primary problems associated with the use of biodiesel in cold climates. 
 
 The project was funded internally by ORNL through $20,000 in seed money. Although the project included small-scale preliminary work, Kass said the results have been very intriguing. 
 
 Precipitates form in biodiesel when the temperature of the fuel drops to near the cloud point. Although they are not visible, Kass said that those precipitates remain in the fuel even when its temperature increased. In other words, they do not reabsorb into solution. "There are still there," Kass said. "They cause issues with filter plugging and other concerns."
 
 Robert McCormick, a principal engineer with Golden, Colo.-based National Renewable Energy Lab, provided Kass and his team with a paper that summarized the latest work on precipitates. The resulting experimentation revolved around ultrasonically treating soy-based biodiesel samples to determine the effect on precipitates. 
 
 "It's a very simple experiment," Kass said, noting that it addressed both preventative precipitate treatment and rehabilitative precipitate treatment. Untreated biodiesel was placed in a beaker and treated with an ultrasonic probe. The sample was then tested under ASTM D6162 to measure filtration time. The results of the initial treated sample showed improvement over the untreated sample. The sample was then spiked with precursors to precipitate formation and refrigerated to drop the temperature. A portion of the sample was then treated with the ultrasonic probe. The study found improved filtration test times with the treated sample. In fact, Kass said the amount of precipitates dropped to nearly the same level as the initial sample. 
 

 Since ultrasonic treatment results in localized heating, the researchers also did a control experiment where a biodiesel sample was heated to the same temperature, but without ultrasonic treatment. "When you just heated it up, it did not improve the filtration time," Kass said. 
 
 "We know that ultrasound can create localized heating at an interfacial boundary, and if an interfacial boundary exists between the precipitate and the bulk fluid, that would be a point of localized heating, and we thought if we have localized heating, then perhaps we can get that stuff to go back into solution without having to heat the whole sample up, potentially to high temperatures," Kass said. 
 
 Although the research did not address the potential impact of ultrasonic treatment on cloud point, Kass said that, in theory, it should. "The other advantage is that if you can [heat the molecules] locally, you can also theoretically keep if from oxidizing as well," he continued. 
 
 ORNL has filed a patent on the process. While Kass and his team are not currently working to further research into the process, he said that he thinks it would be good for someone to take the research to the next level. 
 
 Additional members of the team include ORNL researchers Maggie Connaster and Samuel Lewis.

Research finds ultrasonics reduce precipitates

Posted Dec. 8, 2010
 
 TAM Airlines, Curcas Diesel Brasil and Brazil Ecodiesel have formed a collaborative alliance to conduct feasibility studies for an integrated project to produce sustainable biokerosene jet fuel in Brazil. The joint effort has the support of aircraft maker Airbus and Air BP, BP's aviation fuel distribution division. 
 
 The group intends to use diverse sources of biomass with a particular focus on jatropha produced by family farms and large plantations in Brazil. TAM Airlines is implementing a jatropha placement trail in an area of 4.35 hectares (approximately 11 acres) with the purpose of assessing the sustainability of different production models in order to identify the best techniques and genetic material. The land represents less than 1 percent of the total farm in Sao Carlos, Brazil, where TAM's Technology Center is located. The sustainability studies will be sponsored by Airbus and will be conducted at Yale University in New Haven, Conn.
 
 "We're working with big companies in the aviation and the biofuels segments to develop a fully integrated value chain in Brazil, from plant sciences and feedstock development to the distribution of the fuel at the airports," said Rafael Abud, CEO of Curcas Diesel Brasil. "In this initial phase, we will conduct the studies necessary to verify sustainability and economic viability of producing biokerosene. We expect to start commercial production by 2013."

 
 In November, TAM Airlines, together with Airbus, successfully performed the first jatropha-based biofuel flight in Latin America, using an Airbus A320. TAM Airlines acquired jatropha seeds from farms in the North, Southeast and Center-East of Brazil from Curcas Diesel Brasil. UOP LLC, a Honeywell company, produced the biofuel, which consisted of a 50 percent mix of locally-sourced Brazilian jatropha-based biokerosene and conventional aviation fuel. 
 
 The consortium is optimistic about producing biojet fuel in Brazil, according to Jose Carlos Aguilera, CEO of Brazil Ecodiesel. "The biokerosene market is a reality and holds a significant growth potential since the European Union included aviation as an important element for global carbon emission reductions," he said. "Our participation in this pioneering project, besides being aligned with our plans to diversify our biofuel portfolio, is in line with our technological evolution plans."
 
 As part of its ongoing commitment to ensure that air travel continues to be one of the most ecoefficient means of transportation, Airbus has developed a roadmap working towards making alternative fuel and biofuel technology a reality for aviation. In addition to its efforts with TAM Airlines, in February 2008, an Airbus A380 aircraft successfully completed the first ever flight by a commercial aircraft using gas-to-liquid fuel and, in October 2009, Airbus and Qatar Airways undertook the first commercial flight of 50 percent blended GTL fuel. 
 
 "Airbus is bringing together farmers, oil refiners and airlines to speed up the commercialization of sustainable biofuel production in Brazil and worldwide," said Paul Nash, Airbus head of New Energies. "As well as analyzing the suitability of potential biofuels for aviation, Airbus is also supporting life cycle and sustainability analysis to ensure that any carbon dioxide emissions solutions don't impact socially or compete for land, food or water."
 
 TAM Airlines Energy Manager Paulus Figueiredo explained, "The feasibility studies of the entire value chain will be essential to analyze the environmental, social and economic impacts of the commercialization and expansion of biokerosene in Brazil. As well as the environmental benefits to be confirmed by the studies, there is the possibility of obtaining real emissions trading scheme costs savings, given that airlines flying into Europe will have to acquire allowances for the carbon dioxide emissions guaranteed in these operations."
 
 Biokerosene is in advanced stage of approval by ASTM standards in the U.S. to be used blended up to 50 percent with regular aviation fuel in commercial flights. The Brazilian Alliance for Aviation Biofuels is in contact with federal government and sector agencies to establish a regulatory mark for biokerosene.

Consortium to study biojet fuel in Brazil

Posted Dec. 8, 2010
 
 The Port of San Francisco may be the new home to a 10 MMgy biodiesel production facility. After nearly two years of multiple reviews and environmental analysis assessments, the Port Commission of San Francisco approved a proposal by Darling International to convert part of a tallow rendering plant into a biodiesel facility. In 2006 there was interest in biodiesel, according to Richard Berman, regulatory specialist for the real estate division of the Port of San Francisco. At the time, Darling International was sending tallow products off to cosmetics and soaps manufacturers, and then the company proposed to divert some of that to biodiesel, Berman said. "We agreed upon a set of terms for them to modify their lease, which would allow them to make biodiesel." 
 

 The Port initially approved the project, but due to objections by members of the community, the process was stalled. "It was not an objection to the proposed project," Berman said, but rather to the process, "which they felt was a little quick for a project of this size." 
 
 After roughly a year-long review process that started nearly two-and-a-half years later, "We got through all of that reanalysis, and the determination was that there would be no significant environmental impact or no additional required mitigation." During that time, Darling also hired a health risk consultant over concerns of odorous emission from the tallow. The consultant developed a sampling and analysis plan and a health risk assessment. The plan was then reviewed by several members of the community including staff from the Port, the city, the department of public health and others. Berman said, "After everybody agreed to the analysis, Darling conducted the sampling and analysis and the health risk assessment, and the results were really quite good-and reassuring." 
 
 Essentially, the results showed there were no significant risks associated with exposure to odorous emissions, Berman said. "Darling took a good-faith step with being a good neighbor here," he added, "and generated some really novel data." 
 
 Now, although Darling has no obligation to produce biodiesel under the approved amendment, Berman said the Port Commission is hopeful that any biodiesel produced at the facility will be blended and consumed in the community. "There has been some talk of a fuel dock for biodiesel for water vessels," he said. "That was our primary, next step, but we are still working on that." The facility will remain in the current Darling location located on Pier 92, in an industrial setting. 
 
 "Darling International's expansion into a biodiesel production facility at Pier 92 is another example of the commitment San Francisco is making to ensure a clean energy future," Mayor Gavin Newsom said of the possible plant. "With this facility, we will be able to transform a locally generated waste into a low-carbon fuel to power local vehicles and create local green jobs. It doesn't get much green than that." 
 
 A local ferry fleet that provides tours of the Bay currently uses B20 for all passenger vessels, and 98 percent of San Francisco and the county's diesel fleet operates on a biodiesel blend, roughly 1,600 vehicles. Port executive director Monique Moyer said the project is consistent and supportive of the city's policies "to increase the recycling value of fats, oils and grease and promote the use and availability of alternative fuels."

Port of San Francisco approves 10 MMgy plant

Posted Dec. 9, 2010
 
 Although the U.S. biodiesel industry has struggled since the lapse of the $1 per gallon tax credit, renewable identification number (RIN) prices are currently trading high enough to fill that void. One factor that seems to be contributing to the relatively high price of RINs is the volume requirements mandated by the U.S. EPA under the renewable fuel standard (RFS2). 
 
 In late November the agency released 2011 volume requirements, which consists of nested mandates. According to the release, 1.35 billion gallons of advanced biofuel must be consumed next year. Of that number 800 million gallons must be biomass-based diesel. Since biodiesel is currently the primary commercially-available advanced biofuel, the agency notes it will likely be used to meet the vast majority of the 1.35 billion advanced biofuel mandate. 

 
 According to Sam Gray, a renewable fuels trader with VICNRG LLC, 2010 biodiesel RINs hit an all-time high on Dec. 8, trading at 96 cents per RIN. Since each gallon of biodiesel that is produced generates 1.5 RINs, that equates to $1.44 per gallon, which more than offsets the lost value of the expired $1 per gallon biodiesel tax credit. 
 
 Although prices began slipping Dec. 9, Gray notes that they could easily remain in the 80 to 90 cent range for the remainder of the year. The good news for biodiesel producers is that the RIN system seems to be working as it was intended to by the EPA. "[RINs] are doing their jobs, they are doing exactly what EPA intended to do; to recognize the subsidy behind the gallon of renewable fuel to try to get favorable blending economics-or something resembling decent blending economics," Gray said. "RINs are performing well within the mandate RFS2." The biodiesel market in 2011 is expected to remain tight, which should ensure relatively high prices for 2011 biodiesel RINs as well. 
 
 While RIN prices are currently high, Clean Fuels Clearinghouse and RINSTAR founder Clayton McMartin said it's important to note the RIN market is characterized by volatility, and that is not expected to change. Due to the fact that obligated parties are required to prove compliance only once per year, he said that RINs tend to drop in value in the spring and increase in value towards the end of the year when obligated parties near the compliance deadline. "Obligated parties who…are behind the game now are in a panicked market trying to catch up," McMartin said. "That's essentially what is happening right now. [RIN prices could] just as easily be back to 40 or 50 cents tomorrow. It's a very thin market."
 
 Current market conditions seem to be indicating tight biodiesel supply in 2011, leading to relatively high RIN prices, but McMartin and Gray agree that this will change if the biodiesel tax credit is reinstated. "If that $1 comes back, there is no way RINs can remain high, the market just wouldn't allow it," Gray said. "The market will correct that, so if the dollar comes back, you are going to see a large percentage of that dollar proportionally wipe away the 2010 and 2011 RIN value."
 
 Although reinstatement of the biodiesel tax credit would certainly benefit producers, Gray points out it is important to note that the market is functioning right now without it. "[RINs] have performed as they should, and the market is functioning without the tax credit now," Gray said. Even more importantly, McMartin said that sustained high prices for RINs could allow some idle biodiesel producers to bring their assets back online. "RINs are a key component to any financial performance by anybody operating in the renewable fuel industry," he said. "Without the tax credit, they become even that much more important."

Biodiesel RIN prices trend higher

Posted Dec. 15, 2010
 
 Any questions on whether the biodiesel tax credit is in the proposed tax bill to extend Bush-era tax cuts and continue unemployment benefits for another year have already been answered-it is in. 
 
 Text of the bill has been released for nearly a week, and it includes language that extends the $1 per gallon blenders tax credit for biodiesel through 2011. The credit has also been made retroactive, providing the incentive for all biodiesel blended in 2010. 
 

 The bill, H.R. 4853, or the Middle Tax Cut Relief Bill, was officially released on Thursday, Dec. 7, by Senator Harry Reid, D.-Nev. It was expected to go through cloture on Monday, Dec. 13, allowing members of Congress a maximum period of 30 hours for debate, during which no amendments may be added. A vote on the bill was expected to occur sometime between late Wednesday and early Thursday. 
 
 After a Monday, Dec. 13, test vote in the Senate revealed an overwhelming majority were in favor of the Middle Tax Cut Relief Bill, the biodiesel tax credit restart is becoming a very real possibility. For two days several Senators on both sides issued letters and statements calling for changes to the bill based on the highly debated estate tax measure, but, in spite of those efforts, on Wednesday, Dec. 15, the Senate is expected to vote in favor of the bill, paving the way for a House vote this week. While there are also detractors of the bill in the House as well, all signs show the bill will reach the President's desk before year's end.

Update: Senate to vote 'yes' on tax bill

Posted Dec. 15, 2010
 
 A report recently released by the Australian Government's Rural Industries Research and Development Corp. investigated the potential for using native and naturalized plant species as feedstock for biodiesel production. The study, "<a target="_blank" href="https://rirdc.infoservices.com.au/items/10-216" rel="external">Evaluating Biodiesel Potential of Australian Native and Naturalised Plant Species</a>," assessed the feasibility of more than 200 potential feedstocks and determined that 20 locally available species have commercial potential. 
 
 "It is widely regarded that bioenergy could play a significant role in a low-carbon energy future in Australia," said Roslyn Prinsley, general manger of the RIRDC's New Rural Industries program. "It could help reduce our reliance on fossil fuels and provide an alternative income source for farmers though the establishment of new rural industries. But to achieve sustainable industry expansion, we need a solid scientific basis to help inform industry and government decision making, and drive potential private sector investment. [This report] will help us understand which potential feedstocks are commercially viable and best suited to Australia's growing conditions, in particular our unique climate and soils. And, importantly, the studies help to dispel the myth that the production of bioenergy feedstocks has to come at the expense of land destined to grow crops for human consumption."
 
 The study, which focused on the central Queensland region of Australia, had three primary objectives; to identify native plant species that produce significant quantities of oil and grow well on marginal lands, to test the seeds of these species for oil content, and to examine the oil yield potential of selected species. Plant types evaluated during the course of the study included trees, shrubs, palms, herbaceous species and weedy species. 
 
 According to the report, fruits or seeds were obtained for each plant through field collection, seedbanks or commercial seed companies. The seeds were then analyzed for oil content. Of the more than 200 plant species tested, the researchers determined that 20 that featured substantial oil content. Oil from the 20 selected species was then analyzed for fatty acid composition, which was used to calculate biodiesel properties. In addition, oil from each of the 20 selected species was converted into biodiesel, with the resulting fuel evaluated for basic property characteristics. Biodiesel produced from one species, Calophyllum inophyllum, also underwent engine performance testing. 
 

 The 20 species identified by the study as potential biodiesel feedstocks include:
 
 1. Calophyllum inophyllum (Beauty leaf tree): The perennial tree flowers twice a year, producing up to 8,000 fruits per plant annually. Each fruit contains a kernel that contains approximately 46 percent nonedible oil. The highly acidic and viscous oil was found to yield inferior quality biodiesel using conventional conversion processes, but modified production processes led to better results. As part of the study, researchers conducted engine tests using B5 and B20 biodiesel produced with Beauty leaf tree oil and found that it performed as well as conventional diesel. 
 
 2. Aleurites moluccana (Candle nut tree): The fast growing tree produces up to 7,000 fruits per tree annually. Each fruit contains one or two seeds, which contain approximately 47 percent oil. According to researchers, the oil contains a high quantity of linolenic acid, which might pose problems with its use as a biodiesel feedstock. 
 
 3. Syagrus romanzoffiana (Queen palm): The naturalized palm species bears fruits in panicles, each of which produces a kernel that contains 41 to 47 percent oil. 
 
 4. Murraya exotica (Mock orange): The naturalized species bears fruit in both autumn and spring. The resulting seeds contain 22 percent oil. 
 
 5. Cordyline manners-suttoniae (Cordyline): The palm-like plant produces berries. The seeds of the berries contain approximately 15 percent oil. 
 
 6. Grevillea banksii (Grevillea): The shrub bears a large number of fruits. The resulting seeds contain 15 percent oil. 
 
 7. Elaeocarpus grandis (Blue quandong): The tree produces fruits each contain a tiny kernel. The oil content of each kernel is approximately 38 percent. However, the proportion of the kernel to seed is very low. 
 
 8. Ochna serrulata (Ochna): The shrub produces seeds that contain 31 percent oil. 

 
 9. Brachychiton bidwillii: The deciduous shrub produces fruits, each of which contain 20 to 30 pea-sized seeds. The seeds have an oil content of 15 percent. 
 
 10. Koelreuteria formosana (Chinese rain tree): The naturalized tree has been classified as a weed due to its aggressive growth patterns. It produces seeds that contain 22 percent oil.

Australian study assesses biodiesel feedstocks

Posted Dec. 15, 2010
 
 With support from Invest Toronto, Energy Innovation Corp. has proposed to repurpose an 8,600 square-foot building into a biodiesel production facility with an initial annual output volume of 5 MMly (about 1.3 MMgy). Located in the downtown core in the port lands area, the future facility will be located on a site with existing ship, truck and rail transportation infrastructure that could be leveraged for feedstock sourcing and biodiesel marketing.
 
 According to Patrick Dwyer, EIC vice president of communications, the company is shooting for full operation by spring 2011. Locally grown flax seed initially would be the feedstock of choice for the planned facility. Utilizing a hybrid continuous flow/batch system, the company plans to extrude the flax seed into oil for biodiesel production and take the remaining meal for use as animal feed, or have it further milled into flour to be sold in the Ontario food market, according to Dwyer. 
 
 "Everyone said you can't grow flax in Ontario," Dwyer said, adding that, through a partnership already established with an area farmer, EIC would have access to about 1,200 acres of flax. "We said we don't think that's true. Areas not too far from us used to be known as the flax capital of Canada 100 years ago before people started moving out to the prairies and different crops started to replace flax. We're looking to bring flax back and grow it ourselves or through partnerships."
 
 In addition to flax, EIC intends to use locally collected coffee grounds as feedstock. "The feedstock has to be viable and it can't just be a waste feedstock," Dwyer said. "It has to have value-added market potential." Potential customers for EIC's biodiesel are expected to be municipalities, fleet users or waste management companies. 
 

 The proposed biodiesel production facility in Toronto will be privately funded and is one of eight similarly-sized projects planned in the next four to five years by EIC, according to Dwyer. He noted that EIC decided to deploy a string of small to mid-sized production facilities rather than building one large production plant because, "we don't want to run into the economic problems of having a large facility and having to find massive amounts of feedstock to keep it running and profitable," he said.
 
 According to the Canadian Renewable Fuels Association, as of November 4, Canada houses 12 operating biodiesel plants with a combined installed capacity of 200.9 MMly. In 2011, the country's demand will expand to over 650 MMly to meet projections based on the Canadian government's new regulation requiring diesel fuel and heating oil to contain at least a 2 percent biodiesel blend. 
 
 According to Dwyer, "We're going to be in a weird deficit relationship between Canada and the U.S. in that we'll be one of the U.S.'s largest exporters of fuel from the oil sands, but we'll end up in a situation where we'll have to import our own renewable fuel like biodiesel. One of the impetuses for creating this company was to sort of balance out this trade deficit."

Toronto biodiesel facility proposed

Posted Dec. 15, 2010
 
 A researcher at the University of Arkansas has created the first methane-producing microorganism that can metabolize complex carbon structures. The project could lead to the development of a microbial process to recycle waste products, such as glycerin from biodiesel plants, into a renewable form of natural gas. 
 
 According to David Lessner, an assistant professor of biological sciences who is leading the research, the project focused on methanogens, which are methane-producing anaerobic microorganisms. "These are microorganism that grow only in anaerobic-or oxygen free-environments, but they are found in very diverse environments," he said. "They grow by producing methane gas as an end product."
 
 One of the primary limitations of methanogens in methane production is that they are only able to digest a very limited range of substrates, Lessner said. To produce methane in nature, these mircoorganims must work in a consortium with other microorganisms that break down complex carbon sources into compounds they can consume. The basic premise of the study, Lessner continues, was to provide a methanogen microorganism with the genetic ability to break down more complex compounds and produce methane. 
 
 The research conducted by Lessner and his colleagues focused on a strain of methanogen known as Methanosarcina acetivorans. According to Lessner, this particular strain was used because it can naturally consume more substrates or chemicals than most other methanogens. "But, it's still limited," he continued. "We we thought it would be a good platform to begin adding to the catabolic capabilities of the organisms, so we used that as our starting microorganism."
 
 The project involved isolating a gene from a strain of bacteria that is able to consume a wide range of substrates, but cannot produce methane. The gene was transferred from the bacteria to the methanogen. "We were able to show that the methanogen could recognize that gene and make the enzyme, and then that allowed the methanogen to consume more complex esters and convert them into methane gas, where the original parent strain is unable to do so," Lessner said. 

 
 While Lessner noted it is not feasible to genetically modify methanogens to the extent that they could be used to convert complex mixes of biomass feedstocks into renewable methane, he notes that it might make sense to specifically modify the microorganisms to convert specific biorefining waste streams into methane, which could then be used as renewable natural gas. One specific example of this type of application is the conversion of glycerin coproduced at biodiesel plants. 
 
 The next step in the research will involve further modifying the methanogen to digest more slightly more complex substrates. In addition to investigating the potential for renewable natural gas production, Lessner said the research his team is conducting might provide technology developers with new insight into the use of methanogens in industrial processes. While the use of bacteria in industrial processes has been widely studied and is well understood, there has been much less investigation regarding the use of methanogens in industrial processes.

GMO methanogen for glycerin digestion

Posted Dec. 15, 2010
 
 The joint venture between National Clean Fuels Inc., a Houston-based energy and clean technology company developer, and DC Biofuels LLC, an urban-based biodiesel company in the city of Washington, is one step closer to completion. In June, NACF completed a definitive agreement with DC Biofuels to work in conjunction with them to develop a 10 MMgy biodiesel production facility. Now, the two organizations have signed a letter of intent to solidify the partnership. NACF will continue to provide funding for the facility and help develop a fleet demonstration of DC Biofuels biodiesel. 
 
 Using waste vegetable oil from local restaurants and institutions, the two companies hope to showcase the biodiesel through use in a municipal fleet based in the Mid-Atlantic region. "We envision this biodiesel plant as a major provider of renewable, alternative fuel in the Mid-Atlantic region," NACF president Maurice Stone said in a statement on the recent LOI between the two companies. "The effort to provide a fleet demonstration of B20 alternative fuel is proceeding smoothly." 
 
 DC Biofuels, a subsidiary of Florida-based energy investment firm Enova Energy, hopes to produce biodiesel for home heating, industrial and power generations along with transportation purposes, and hopes to construct 8 to10 similar facilities east of the Mississippi River by 2013. The D.C. facility is expected to begin operations in the second quarter of 2011. 
 
 NACF is also working with the Center for Environment, Commerce and Energy to develop a biomass-to-electricity plant in Port Gibson, Miss.

Clean-tech co. signs LOI with DC Biofuels

Posted Dec. 17, 2010
 

 By a vote of 277 to 148, the U.S. House of Representatives extended tax cuts, continued unemployment benefits and brought the year-long struggle of the biodiesel tax credit to a positive end. The biodiesel tax credit is back. On Friday, Dec. 17, President Barack Obama held a press conference to officially sign H.R. 4853, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, into law, and with his signature, the biodiesel and renewable diesel tax credit marred in the political process for all of 2010 will be retroactively reinstated through 2011. 
 
 As expected, the National Biodiesel Board supports the bill's passage, pointing to job creation as one of many positive reasons for the reinstatement of the tax credit. "This will undoubtedly help kick-start the domestic biodiesel industry, lessen our dependence on foreign oil, and create thousands of new jobs across the country," according the NBB.
 
 While a group of liberal democrats attempted to alter the bill during the last hours of the House's session on Thursday night, essentially trying to lower the estate tax percentage and the amount of money a couple can pass to their heirs down from $10 million to $7 million, the move was ineffective. 
 
 Now, in combination with the required 800 million gallons of biomass-based biodiesel under the 2011 RFS2 and the reinstatement of the tax credit, NBB's vice president of federal affairs, Manning Feraci said, "The U.S. biodiesel industry is poised for a strong 2011, and stands ready to meet the nation's advanced biofuel goals."

December 2010

Business Briefs

Business Briefs

Columns

Diverse Group

Plant Maintenance and Safety

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Maintaining Safety and Value

Chemical Safety Matters

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Business Briefs

Business Briefs

Columns

Diverse Group

Plant Maintenance and Safety

Featured

Model Fleets

Maintaining Safety and Value

Chemical Safety Matters

December 2010