While 2011 was a monumental year for U.S. biodiesel as the industry came back from near collapse the year before, 2012 is probably best forgotten, all things considered. Overall, domestic production remained strong despite the fact that RIN fraud essentially defined the industry to some&mdash;to those who only know of biodiesel because of the scandal. For a different lot, perhaps catastrophic fires at production sites from Germany to Canada to Louisiana now characterize this industry. To others, maybe the word &ldquo;limited&rdquo; now portrays biodiesel&rsquo;s future, given Europe&rsquo;s very recent proposal to include the unsound science of indirect land use change in its Renewable Energy Directive. And who could forget the prolonged biodiesel trade war between Spain and Argentina?
 If the petroleum industry can bounce back from rock bottom after the Deepwater Horizon offshore oil rig exploded in the Gulf&mdash;killing 11 workers and injuring 17&mdash;so strongly that just two years later it got nary a mention as presidential candidates debated who was the bigger champion of oil, then these unfortunate events suffered by the biodiesel industry in 2012 are petroleum-free water under the bridge.
 For me and everyone I know in this integrity-filled, safety-conscious, resilient, unlimited, green industry of biodiesel, 2013 is sure to be a remarkable year. The fact that, despite these misfortunes endured all year, the U.S. EPA saw past those anomalies and increased the biomass-based diesel carve-out in the renewable fuel standard by 280 million gallons (from 1 billion to 1.28 billion gallons) speaks volumes. Provided Congress does not intervene while EPA and private industry are correcting deficiencies in the RIN program, the new year promises to bring with it a sounder, fairer regulation of the RIN market for everyone.

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CLOSE THE BOOKS

Biodiesel companies face substantial financial exposure if they fail to provide a safe working environment. Personal injuries to employees result in expensive and time-consuming workers compensation claims. Additionally, several states allow an injured employee to also bring a lawsuit against a third party who contributed to the injury, and that third party may be able to seek financial contribution from the employer if it was also negligent. Another area of exposure arises when nonemployees visit the biodiesel plant for business or personal reasons and are injured as a result of an unsafe or hazardous condition at the plant.
 The financial impact of such injuries is substantial, especially if the biodiesel company is self-insured, if it is insured but has a large self-retention on its policy, or if the liability limits are inadequate. Even if fully insured, a history of claims affects experience ratings and leads to increased premiums. Injury claims also place demands on the company, requiring substantial time from management and other personnel to defend the claims.&nbsp;
 A biodiesel company can also face large workplace penalties not covered by insurance. The federal Occupational Safety and Health Act requires employers to comply with numerous safety and health standards. OSHA plant inspections invariably follow a serious injury, and OSHA has statutory authority to perform unannounced or surprise inspections. Penalties for violations of health or safety regulations anywhere in the plant can be assessed even though there has never been an injury. These penalties are based on the categories of violations as follows:
 &nbsp; Other-than-serious: This violation is one where death or serious physical harm cannot be expected; the penalty is up to $7,000 for each violation.
 Serious: A serious violation is one that could result in death or serious physical harm; the penalty is up to $7,000 for each violation.
 Willful: A willful violation is one in which the employer knew that a hazardous condition existed, the condition violated a standard or regulation, and the employer made no reasonable effort to eliminate the hazard. The penalty is up to $70,000 for each violation.
 Repeated:&nbsp; A repeated violation is imposed if the employer has been cited for a &ldquo;substantially similar&rdquo; violation anywhere in the nation within the past five years, even if the person in charge of plant safety is unaware of the earlier violation. A repeated violation carries a penalty of up to $70,000 for each violation.&nbsp;&nbsp;&nbsp;
 Other penalties include a $7,000 per day penalty for failure to timely abate a violation, and a $7,000 penalty per violation for failing to post information required by OSHA.
 Experienced companies recognize that once there has been a serious accident or injury involving its operations, it is too late to avoid the adverse affects. The same may be said of OSHA violations. Prevention is the only real way to avoid this loss. And being proactive need not be overly expensive, nor require extensive administrative time by the company. It has been estimated by OSHA that an effective safety and health program can save $4 to $6 for every $1 invested. Not only is it the right thing to do, but it pays off in lower costs, increased productivity and higher employee morale.
 Reducing work place losses is a goal the biodiesel company shares with OSHA. In this respect, OSHA offers numerous programs and areas of assistance. The OSHA Consultation Service helps employers identify potential hazards and improve their occupational safety and health management. The consultation is a free service largely funded by OSHA and operated by state agencies using trained safety and health staff. The OSHA training institute also provides basic and advanced training and education in safety and health. Compliance assistance specialists are available in each OSHA area office to provide general information about OSHA standards and compliance assistance resources.
 Other employer assistance programs are available through the OSHA area office. OSHA also has an extensive publications program. For a list of items, visit OSHA&rsquo;s website at www.osha.gov or contact OSHA&rsquo;s publications office, U.S. Department of Labor, 200 Constitution Avenue, NW, N-3101, Washington D.C., 20210.
 Author: Kurtis A. Greenley Attorney, Linquist &amp; Vennum PLLP <a href="mailto:kgreenley@lindquist.com">kgreenley@lindquist.com</a>

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Workplace Safety: Are Extraordinary  Steps Financially Justified? 

Fires and accidents at biodiesel plants have heightened everyone&rsquo;s awareness of the need to emphasize safety in plant operations. One chronic problem is fires that start mysteriously, with no apparent cause. Adding to the mystery is that many of these facility fires occur at night, when very few, if any, workers are present to point a finger at the source. Spontaneous combustion is a likely source of many of these fires.
 Researchers in the USDA-sponsored Biodiesel Education Program at the University of Idaho are studying the nature of spontaneous combustion of materials used to clean up biodiesel spills. We intend to isolate the ignition point of certain biodiesel fuels, the mechanisms leading to self-ignition, and recommend procedures to reduce the risk of spontaneous combustion in biodiesel production facilities.
 Spontaneous combustion is a bit of a nebulous phenomenon in the biodiesel industry, although it is a well-known problem with petrol fuel. Materials soaked in natural oils with a high number of double-bonded carbon atoms&mdash;such as many feedstocks used to make biodiesel&mdash;oxidize quickly. The oxidation process releases heat that causes an increase in core temperature. The materials begin to smolder and eventually self-ignite. Biodiesel researchers think they know the recipe for this reaction in theory, but there is very little research available that has studied its detailed cause or provided industry safety practices.&nbsp;
 In comparison, biodiesel producers are well aware of the risks of methanol use. They work with it every day and have a lot of respect for its volatile nature. Most safety information available for biodiesel production concentrates on reducing fire exposure to methanol, and rightly so. It is important to note that methanol is often just the fuel for the fire, and not the cause.
 The problem with analyzing the cause of fires that result in explosion or intense heat is finding the cause of the blaze. Could the fire have started with a spark or a flame? An often overlooked possibility is spontaneous combustion from improper disposal of material used to clean up biodiesel oil spills.&nbsp;&nbsp;
 A relatively recent fire where the cause has been attributed to spontaneous combustion took place in Nagoya, Japan, in August 2005. A facility worker simply placed a work rag in a cardboard box. The rag and box were consumed in the fire, but enough of the rag was left to determine that trace amounts of fatty acid methyl esters were present in the rag. Since the rag was found within the point of origin of the fire, officials speculated that the source of the fire was the spontaneous ignition of the rag.
&nbsp; Researchers at the University of Idaho have demonstrated that spontaneous combustion may pose a serious threat to biodiesel production facilities. We replicated a scenario of spontaneous combustion in our facility, using sawdust soaked in a mixture of biodiesel and boiled linseed oil for the initial experiments. This mixture is susceptible to quick oxidation due to a high degree of unsaturation. The core temperature of the mix increased steadily over time. Within two hours, the material began to visibly smolder; within eight hours, the material ignited and was consumed by fire. At the time when a visible flame appeared, the material had reached a core temperature of more than 400 degrees Celsius. Our observations lead us to believe that the probability of spontaneous combustion is associated with the level of rancidity of the biodiesel, the characteristics of the absorbent materials, the ease with which air could move through the material, and the ambient conditions in the storage environment. We are investigating what combination of these variables must be present to lead to spontaneous combustion, and what changes in the combination of these variables can prevent it.&nbsp;
 Production facility workers must be diligent in the disposal of materials used to clean up equipment and biodiesel spills. Rags used to clean up biodiesel should be disposed of in a separate, fire-safe, enclosed container, or laid out individually to dry. Biodiesel-soaked absorbent materials such as sawdust, Magnesol or Oil-Dri should not be composted. A recent incident of a compost fire caused by spontaneous combustion of oil-soaked Magnesol smoldered for weeks. In fact, some landfills refuse to accept these materials.
 As we conduct more research into the causes of spontaneous combustion of biodiesel-soaked materials, we will post our findings, photographs and video on our Biodiesel Education Program website, www.BiodieselEducation.org.
Author: Jon Van Gerpen Biological and Agricultural Engineering Department Head, University of Idaho 208-885-7891 <a href="mailto:jonvg@uidaho.edu">jonvg@uidaho.edu</a>

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Spontaneous Combustion: An Overlooked Fire Source 

The largest U.S. biodiesel producer, Renewable Energy Group Inc., with 210 million gallons of owned/operated biodiesel production capacity, originally anticipated its third quarter adjusted earnings before the deduction of interest, tax and amortization expenses (EBITDA) at a gain of $10 million to $15 million. It later issued guidance stating its third quarter EBITDA would result in a loss of $2 million to $7 million. While its final figures were due out at press time, this represents a significant financial swing, one largely blamed on movements in commodity prices and &ldquo;a steep depreciation in the price of RINs&rdquo; and, as a result, tighter margins than expected. Earlier this year, biodiesel RINs were close to $1.50. Just recently, biodiesel RINs dipped down to near 40 cents.
 &ldquo;Despite these fluctuations in our markets, we remain optimistic about the long-term prospects for REG and the biodiesel industry,&rdquo; says Daniel Oh, president and CEO of REG. &ldquo;The recent finalization of the 2013 [renewable volume obligation] provides growing demand for the next year. Our flexible feedstock technology gives us a long-term advantage as a low-cost producer, since we can adjust to fluctuations in feedstock prices. Furthermore, REG continues to have a strong balance sheet with cash to sustain our growth strategy. Our risk management positions serve the economic purpose of reducing the effect of changing commodity prices and protecting the margin and profitability of contracted biodiesel sales. Volatile commodity fuel prices late in the quarter affected the market value of financial contracts, causing most of the reduction in adjusted EBITDA; however, the cash margin earned from biodiesel sales is protected by utilizing these financial contracts. From an accounting perspective, we must recognize such risk management losses in the third quarter, although the biodiesel sale that a position is protecting may occur in the fourth quarter. A secondary driver of our results was the decline in biodiesel RIN prices of approximately 35 percent during the quarter, which negatively impacted our revenue and resulted in tighter margin per gallon sold than expected. RINs can and do trade separately from energy and fluctuate in value based on supply and demand.&rdquo;

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Major financial swings

Researchers from the University of Texas at Austin have developed a proof-of-concept design to harvest, dewater and convert algae to biodiesel in a one-step process using resins. In a paper titled, &ldquo;Use of Anion Exchange Resins for One-Step Processing of Algae from Harvest to Biofuel,&rdquo; University of Texas at Austin scientists Jessica Jones, Cheng-Han Lee, James Wang and Martin Poenie note that to circumvent the cost-prohibitive obtainment of algae oil due to the pumping and processing of large volumes of dilute algal suspensions, they used Amberlite anion exchange resins to simplify the process, which has potential to greatly reduce costs. Researchers packed a column with the beaded, fixed-charge Amberlite anion exchange resins and poured dilute algae water through. The algae bind with the resins and, at the point of saturation, the water coming out of the bottom of the column changed from clear to green-colored. They eluted algae off the resins with a 5 percent mix of methanol and sulfuric acid, essentially regenerating the resins for reuse. &ldquo;The eluted algae appear to dissolve in the sulfuric acid reagent and esterified fatty acids are converted to FAMEs (biodiesel),&rdquo; the researchers note. Poenie tells Biodiesel Magazine the researchers are working to develop resins with higher binding capacities.

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One-step algae harvesting, dewatering, FAME production

More than a year passed since U.S. EPA first proposed boosting the biomass-based diesel mandate from 1 billion gallons in 2012 to 1.28 billion gallons in 2013. During that time, the $1 per gallon federal tax credit disappeared; high-profile biodiesel RIN fraud cases were exposed and discussed in major news outlets and in congressional hearings, causing a freezing of markets and hesitancy of obligated parties to buy biodiesel RINs; RFS waiver requested mounted; and reports leaked out of Europe that indicated what is now public information&mdash;the Continent was going to limit crop-based biofuels moving forward. Despite those challenges, the biodiesel industry perseveres, thanks in large part to efforts from biodiesel advocates, producers and the National Biodiesel Board. Here&rsquo;s to 1.28 billion gallons of RIN-fraud-free production in the new year.

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EPA boosts biodiesel  mandate by 28 percent

Throughout our industry&rsquo;s 20-year history, we&rsquo;ve faced numerous challenges as we&rsquo;ve grown our biodiesel businesses. I often think back to the group of soybean farmer leaders who met in 1992 to form a small development group to research a new biofuel. They had a vision for developing and commercializing biodiesel and in the process launch a new industry that created jobs, diversified our energy supply and benefited their fellow farmers.&nbsp;
 Fast-forward to 2012: The first domestically produced, nationwide advanced biofuel, biodiesel, today has a bright future. The renewable fuel standard has proven very effective as the leading demand driver for the biodiesel industry. Our No. 1 priority is to maintain our position as an advanced biofuel and grow the renewable volume obligation (RVO).
 In order to continue providing benefits to our country under the RFS, we must have RIN integrity throughout the biodiesel supply chain by focusing on administrative discipline and continuous improvement in the RINs system. Biodiesel offers a gallon of RIN compliance with every gallon of fuel and we must continue to work as a united industry to demonstrate our industry&rsquo;s diligence as a reliable source of both biodiesel and RINs.&nbsp;
 I believe biodiesel producers large and small across the country would all agree that we cannot let our industry be tarnished by the unlawful actions of a few who made headlines for their 2010 and 2011 action. NBB worked feverishly to address this with the work of the RIN Integrity Task Force, development of the Genscape program and continuous collaboration with the EPA and the petroleum industry. While this problem continues to be a very difficult issue to address, our industry&rsquo;s conscientious work will continue on this effort into FY 2013. With NBB members from nearly every state in the country, I encourage you to utilize our NBB Washington, D.C., team as a coordination point in your company&rsquo;s lobbying efforts. Grassroots advocacy will continue to play a major role in accomplishing our RFS and RIN integrity goals and a coordinated team is needed for a highly effective effort.
 We received some most welcome news in mid-September when, after numerous delays, EPA announced the 2013 1.28 billion gallon RVO for biomass-based diesel. This precedent-setting achievement required an extraordinary amount of effort given the enormously challenging political dynamics. Thousands of letters were sent to administration officials and members of Congress. To help make our message widely heard and seen, NBB activated additional paid advertising tactics and enlisted public relations coalitions in key political states. Members aggressively campaigned in Washington, securing more than 60 signatures from members of Congress calling for the volume increase. To be sure, the 2013 RVO victory could not have happened without the grassroots efforts of your work; and the 2014 RVO recommendation will need just as much support, if not more.
 The renewable fuel standard remains the focal point for all NBB program activities. Truly successful implementation of the RFS program includes the Advanced Biofuel Initiative, enhanced fuel quality programs, OEM outreach, sustainability research, feedstock research and development as well as technical, marketing and communications programs.
 Today, our industry directly supports the livelihood of nearly 10,000 green-collar Americans. Another 25,000 people work in jobs that support, or are supported by, biodiesel produced across the country. With the growth of the RFS, we project the production of biodiesel will support more than 74,000 jobs in all sectors of the economy by 2015.
 I congratulate our industry&rsquo;s earliest visionaries who sat around the table in 1992 and had the courage to begin the biodiesel endeavor. Over the past two decades, our industry has seen production levels expand and contract with new market opportunities or market uncertainty. Through it all, our members have driven forward with passion for energy security, cleaner air and economic development. I am energized by our industry&rsquo;s recent momentum and hope you&rsquo;ll join me in continuing to promote America&rsquo;s advanced biofuel as an engaged and enthusiastic member of the National Biodiesel Board.
 Gary Haer, Chairman, National Biodiesel Board

Gary Haer, Chairman, National Biodiesel Board

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Industry Momentum Paves Way for Future Growth

The EPA&rsquo;s recent decision to raise next year's biodiesel volume requirement under the RFS to 1.28 billion gallons was a pivotal and well-deserved victory for our industry. It also was a case study in grassroots advocacy that illustrates the impact we can have when we unite around a cause and make our voice heard.
 Over the past year, biodiesel supporters sent several thousand letters to the Obama administration and to Congress pushing for a positive decision. We made hundreds of phone calls, and dozens of us personally visited our elected officials in Congress or held meetings with the EPA to demonstrate why growing the biodiesel industry is good for America. The National Biodiesel Board&rsquo;s Washington office reinforced this outreach with more than 200 meetings with lawmakers and administration officials. Sixty U.S. senators and representatives weighed in with letters of their own showing the positive economic, environmental and national security benefits of U.S. biodiesel production.
 As your trade association, NBB understands that your daily work can be overwhelming and that it often seems impossible to find time in the day to get involved with policy and politics. After all, that&rsquo;s why NBB has such a large presence in Washington&mdash;to represent your interests. But even with the best professional advocates in the business, our ability to get things done is directly related to our grassroots advocacy. Unless our political leaders know that their decisions directly affect constituents like you, we won&rsquo;t be heard. Without letters, visits and phone calls from communities across the country, our policy victories will get fewer and fewer between.
 So please pat yourself on the back for a job well done on the 2013 volume. And then think about how important federal policies such as the RFS and the biodiesel tax incentive are to the success of our industry, and get ready for another round of advocacy in the near future.

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Grassroots, advocacy efforts secure 2013 RFS volume increase

The National Biodiesel Board is organized exclusively to promote the common business interests of those parties seeking to advance the use of biodiesel as a fuel or fuel additive that meets ASTM standards.To advance these common interests, the NBB will admit to membership, on a nondiscriminatory basis, any industry member or supporter who meets the member requirements.
 Whether you want to be a producer of biodiesel or are a company that supports the biodiesel industry through provision of goods and/or services or simply an individual who supports biodiesel, the NBB has a lot to offer. To find out more visit http://nbb.org/join-us.
 For membership information, please contact Doug Whitehead, director of operations and member services, at 800-841-5849 dwhitehead@biodiesel.org.

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How to join NBB

Discounted rates continue for the 2013 National Biodiesel Conference &amp; Expo, but hurry because the rates climb steadily until the event, which takes place Feb. 4-7 at the Mirage Resort &amp; Casino in Las Vegas.&nbsp;
 You can read the full session descriptions on the Schedule-at-a-Glance, www.biodieselconference.org. You won&rsquo;t want to miss a single day of the conference. The lineup of speakers relevant to growing the business of biodiesel continues to expand, with top scientists, original equipment manufacturer representatives, petroleum industry leaders and policy experts.&nbsp;
 National Biodiesel Board members receive low rates as a benefit of membership. The organization also has other programs designed to bring in valued stakeholders, including discounted rates for Clean Cities Coordinators, a U.S. DOE program; and Biodiesel Ambassadors, an NBB program.&nbsp;
 Also this year, thanks to the United Soybean Board and state soybean boards, a select few of tomorrow&rsquo;s biofuel scientists will again be able to attend the conference. About a dozen scholarships are available to Next Generation Scientists for Biodiesel members to attend the conference. We&rsquo;re also inviting college students to submit abstracts for a poster session, which will take place in the exhibit hall for the second year.&nbsp;
 In 2013, we celebrate the 20th anniversary of the NBB, and the 10th National Biodiesel Conference &amp; Expo. This conference has grown from a small gathering at our first event in Palm Springs, Calif., in 2004, to a powerful platform that drives biodiesel business all year long.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp; See you in Las Vegas!

Scholarships and a student poster session will give college students an opportunity to participate in the 2013 Biodiesel Conference & Expo. 

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Registrations picking up for 2013 biodiesel conference 

Though most will wait until January to ring in the new year, the National Biodiesel Board is already hard at work on FY 2013 priorities. The new fiscal year began Oct. 1, closing out a significant and productive 2012. Despite continued challenges, it is impressive what NBB accomplishes to support member priorities.
 With support from the soybean checkoff and federal grants, NBB leverages member dues to contributions 4-to-1. So for every dues dollar we can invest in policy issues, there is outside money available to support key programs like engine testing, communications and sustainability research.
 Securing 1.28 million gallons for 2013 was a big win and an uphill battle, but it&rsquo;s just one of the many things to be proud of when looking back on the year. For example, NBB wrapped up its second year of a national ad campaign. The effort featured two 30-second television spots, print, online and radio ads and has already worked to advance biodiesel&rsquo;s image as America&rsquo;s advanced biofuel. Bioheat also gained new ground with it&rsquo;s &ldquo;the Evolution of Oilheat&rdquo; campaign. The regional effort included ads as well as direct outreach and promotions to dealers. NBB&rsquo;s RIN Integrity Task Force set to work and advised Genscape on their launch of a real-time audit system to help shore up RIN integrity. Overall, the BQ-9000 program saw a 20 percent growth in accredited companies in FY 2012, bringing the volume of biodiesel produced by BQ-9000 companies to 85 percent, marking continued expansion of quality fuel in the marketplace. This year, six states were added to the list of those that proactively enforce the ASTM specification for biodiesel. This means that 23 of the 50 U.S. states now enforce D6751, up from only seven five years ago. NBB continues to invest in research that proves our environmental benefit, such as continued work to improve the quantification of indirect land-use change. In early FY 2012, the NBB&rsquo;s Biodiesel for Diesel Technicians training curriculum received accreditation under the National Institute for Automotive Service Excellence (ASE) Continuing Automotive Service Excellence (CASE) program. Also in the technical umbrella, 2012 saw the development of a biodiesel durability protocol for the railroad sector. 2012 saw the final passage of the No. 1-B grade of biodiesel into ASTM D6751, with tighter controls on monoglycerides (0.4 percent by mass maximum) and a year-round cold soak value of 200 seconds maximum.&nbsp;
 While this list is not even close to exhaustive, it gives a glimpse into the power of a unified trade association working to further members&rsquo; priorities.

The BQ-9000 program saw a 20 percent growth in accredited companies during NBBâ€™s FY 2012.

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Bioheatâ€™s â€œthe Evolution of Oilheatâ€� campaign helped move the needle for biodiesel in heating oil country with a comprehensive media campaign that included fuel delivery truck wraps.

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Securing the RFS volume increase for 2013 was one of the major industry successes this year.

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The second year of the Advanced Biofuel Initiative used TV, print, online, and radio ads to showcase biodiesel as Americaâ€™s advanced biofuel.


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NBB gets to work on 2013

While petroleum-based methyl tertiary-butyl ether (MTBE) has largely been replaced with ethanol as a gasoline additive in the U.S. due to environmental concerns of groundwater contamination, Evonik recently announced it has been producing commercial volumes of a biobased version of the antiknock agent using an ingredient refined from crude glycerin, a coproduct of the biodiesel production process. Evonik produces its bioMTBE from isobutene and biobased methanol. Horst-Oliver Buchholz told Biodiesel Magazine that Evonik does not produce the biomethanol itself, but rather the chemical firm buys the glycerin-derived product from the market to manufacture bioMTBE alongside conventional MTBE at its factory in Marl, Germany. The company said because the biomethanol is made from raw glycerin, it is classified as a waste product according to the EU Renewable Energy Directive, thereby doubling its value for determining bioenergy content.
 Portugal-based biodiesel technology provider Incbio is marketing its latest development to the global biodiesel industry: a multifeedstock platform based on heterogeneous, solid catalysis. Incbio says the technology has been commercially proven already in biodiesel plants with production capacity up to 30 MMgy and feedstock up to 90 percent free fatty acids. The catalyst lasts one to three years without replacement, provided appropriate feedstock pretreatment is performed to remove reactive contaminants, polymers and phospholipids that can foul the conversion beds. Incbio contends advantages of its system include ability to use lower-grade feedstock; &ldquo;instantaneous&rdquo; reaction and consistent quality from ultrasonic reactors; continuous production; skid-mounted modular design; variable flow rates from 500 kilograms an hour to commercial-scale flow rates; an energy-efficient design; methanol recovery; low capital and operating expenses; and the possibility of integrating (with automation) the process technology with existing commercial facilities. The firm says it can also &ldquo;future proof&rdquo; plants with distillation and glycerin purification modules.
 Biodico Inc. and LamdaGen Corp. have entered a collaboration whereby Lam-daGen's nanobased Meta-Catalytic Surface technology will be integrated into Biodico&rsquo;s research and development programs for biomass-based diesel, combined heat and power and biochemicals. Additional LamdaGen technologies will be incorporated into Biodico&rsquo;s ongoing R&amp;D programs, one of which developed the game-changing ARIES (Automated Real-time, Remote, Integrated Energy System) technology under the auspices of a Cooperative Research and Development Agreement with the U.S. Navy in 2002. Biodico is located at the National Environment Technology Test Site on Naval Base Ventura County, Calif.
 Investors in Paseo Biofuels LLC, the Missouri Soybean Association and Cargill announced an expansion to the Paseo biodiesel plant in Kansas City, Mo., that will increase biodiesel production capacity by 40 percent. Using soybean oil as its primary feedstock, the facility, which opened in 2008, produces 40 million gallons of biodiesel and 30 million pounds of food-grade glycerin annually. The expansion is expected to be complete by March 2013. Paseo was started out of an equity drive in 2006, in which more than 650 agricultural producers in the state purchased shares. The company then formed a joint venture with Cargill to help make the facility a reality. It is located near the Paseo Bridge in Kansas City, Mo.
 Algae.Tec Ltd. and Lufthansa have signed a collaboration agreement for the construction of a large-scale algae-to-aviation biofuels production facility. The site will be in Europe, adjacent to an industrial CO2 source. Lufthansa will arrange 100 percent funding for the project. Algae.Tec will receive license fees and profits from the project, which will be managed by Algae.Tec. As part of the agreement, Lufthansa commits to a long-term offtake agreement of at least 50 percent of the crude oil produced at an agreed price. The agreement forms the base for a long-term cooperation between Algae.Tec and Lufthansa for the industrial production of crude algae suitable for conversion into aviation kerosene and conventional diesel fuels. A final feasibility report will be completed once the first site has been selected.
 A new hub of biodiesel distribution is up and running in Des Moines, Iowa, leading to greater consumer access to biodiesel. On Sept. 14, the Iowa Biodiesel Board congratulated the Magellan Pipeline Co. for completing a new biodiesel distribution facility at its largest petroleum distribution terminal in the state. The company announced the opening of the terminal facility at the IBB annual meeting Sept. 7. The installation of new equipment will allow for the unloading, storage and blending of biodiesel at the terminal. Magellan received partial funding for the project from the Iowa Renewable Fuel Infrastructure Board, the Iowa Soybean Association and soybean checkoff program, and the Iowa Economic Development Authority funded by the U.S. DOE. The infrastructure upgrade will enhance distribution of biodiesel by making it simple for petroleum distributors to access preblended fuel.
 Biodiesel is now available via truckload from Renewable Energy Group&rsquo;s new biodiesel location in Rancho Dominguez outside of Long Beach, Calif. The first truckload of biodiesel was picked up by Whole Energy, a regional distributor and retailer with locations in Washington, Oregon and California. REG also recently registered its REG Seneca (Ill.) plant with CARB in accordance with the low carbon fuel standard, and REG-9000 biodiesel from that location has a carbon intensity as low as 4.0 gCO2e/MJ, according to CARB.
 BDI-BioEnergy International AG has concluded a contract with Portuguese company Assunto Importante S.A. to upgrade the existing biodiesel plant in Sines. The local petroleum industry will be the end-user of the biodiesel produced. The order volume is in the single-digit million range. The objectives of the project are to not only increase the raw material flexibility of the existing plant, but also, and in particular, to improve the quality of the biodiesel so it satisfies the requirements of the stricter quality standard EN14214/2013, which will have to be observed in the future. This is being done in the context of the BDI RetroFit program. The company in Sines is opting to use such waste materials as animal fat or used cooking oil to manufacture biodiesel, and as a result, 25,000 metric tons (approximately 7.5 MMgy) of &ldquo;second-generation&rdquo; biodiesel (i.e., biodiesel from waste streams rather than first-use materials) will be produced for the local petroleum industry per year as a result.

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Business Briefs

For B100 and biodiesel blends, two main fuel additive categories dominate the sector: stabilizers and cold flow improvers. Biodiesel can be produced from many fats, oils and greases, each possessing unique chemical make-ups that affect stability and cold temperature performance differently. Saturated feedstocks like palm oil are more stable but have worse cold flow properties. Conversely, unsaturated feedstocks such as canola oil carry more desirable cold flow properties but will oxidize and go rancid quicker.
Oxidation is a three-step process consisting of initiation, propagation and termination, says Andy Singleton with Eastman Chemical Co., which offers BioExtend 30 (U.S.) and BioExtend 30 HP (EU) stabilizers. BioExtend 30 HP is certified by the biodiesel quality management board AGQM as a &ldquo;no-harm&rdquo; additive tested to ensure that chemical and physical properties aren&rsquo;t affected by the use of oxidation stabilizers in biodiesel; that no inadmissible reciprocal effects occur with other stabilizers used in a B7 blend; and that security datasheets are available for the additive. The &ldquo;no-harm&rdquo; list includes 36 positively tested products from 22 manufacturers, including Eastman, Innospec, Infineum, Evonik, Kemin, Albemarle, International Fuel Technology, Lanxess, BASF and more. The U.S. has no such additives oversight, says Gary Pipenger, owner of Amalgamated Inc. He says while U.S. EPA polices chemical ingredients in additives, there&rsquo;s no regulation on performance. &ldquo;The biggest thing I&rsquo;ve wanted for 40 years,&rdquo; he says, &ldquo;is some way of holding additive companies accountable for what they&rsquo;re selling.&rdquo; Eastman&rsquo;s BioExtend 30 and 30 HP products both contain a metal chelator that works in the initiation phase to sequester metal ions from residual processing catalyst or adsorbents, and from mild steel or yellow metals in transport or storage vessels. &ldquo;No antioxidant will stop oxidation,&rdquo; Singleton says, &ldquo;but they&rsquo;re used to inhibit oxidation. The antioxidant we use interrupts the propagation cycle where free radicals that are formed in the initiation cycle react with oxygen and form peroxides. Stable, oxidized products such as aldehydes and alcohols are formed in the termination cycle.&rdquo;
Time, temperature, moisture, air and contaminants all contribute to accelerated oxidation. A rule of thumb for hot, humid regions like the Gulf Coast is that biodiesel shelf life is six months; in colder, dryer regions, it can be longer. But if you leave biodiesel in a tank, the oxidative stability score will go down. Additives raise the starting value on the oxidation stability test, part of U.S. and European quality specifications (three-hour Rancimat minimum in U.S., six-hour minimum for Europe), and they change the oxidation curve&rsquo;s slope.
Biodiesel is treated with antioxidant at the plant by the producer, unless perhaps the fuel stays local for immediate use. Treated biodiesel can be retreated after oxidation begins, but if 200 ppm is the recommended treat rate for fresh fuel, adding that same dose to oxidized fuel will not achieve the same results. Some fuels are just unable to meet spec no matter how much additive is used. &ldquo;I&rsquo;ve tested samples from waste grease where the original oxidative stability index is less than five minutes,&rdquo; Singleton says. &ldquo;So we work with customers and they go back and maybe make process improvements.&rdquo;
Frank Moran with International Fuel Technology says IFT offers nine different biodiesel stabilizers in its DiesoLIFT BD-series, each with slightly different chemistries depending on feedstock. &ldquo;We try to customize our formulations to the feedstock,&rdquo; Moran says. &ldquo;We send samples so they can test finished product,&rdquo; but, he notes, some multifeedstock producers switch inputs at the drop of a dime&mdash;literally. A 10-cent swing in price, plus availability, is incentive to move from one to another.
Innospec also has a line of antioxidants. &ldquo;We&rsquo;ve got a few products in the BioStable line,&rdquo; says Jim Vrzak, a sales director for Innospec Fuel Specialties. BioStable inhibits peroxide formation, protects against metal-catalyzed oxidation, minimizes effects of gum formation from peroxide decomposition, and defends against acid-induced degradation.
Kemin Industries&rsquo; biodiesel stabilizer is BF320. Kevin Custer, business director, says as biodiesel clients switch feedstocks, he encourages them to send samples so Kemin can test and inform the client of the best treat rate. BF320, like Eastman&rsquo;s BioExtend 30, contains a metal chelator to sequester metals. Custer also says Kemin offers consultation on application equipment, dosage rates, application sites, antioxidant storage and execution of product into biodiesel. Kemin can also design and install application equipment.&nbsp;
Magellan Midstream Partners LP requires a six-hour Rancimat performance at the point of fuel origin. &ldquo;To a great extent, this specification is established by our customers who are the companies that own the biodiesel in our storage tanks,&rdquo; says Bruce Heine with Magellan. &ldquo;Generally, our customers have asked us to administer a Rancimat specification of six hours from origins. We target a delivery value of five hours, but have the latitude to release product down to three hours. This increased stability provides added protection for the ultimate consumer. This is especially important in markets where biodiesel is stored for extended periods of time.&rdquo; Magellan approves a handful of stabilizers. &ldquo;We receive requests for approval of all performance additives from our position holders,&rdquo; Heine says. &ldquo;If a customer would like to add a specific additive, we request data that supports the claims from the additive manufacturer. At our option, we may request a sample of the additive be sent to our laboratory in Kansas City for analysis.&rdquo; Once a biodiesel producer is on Magellan&rsquo;s approved list, companies that hold positions in its tanks can purchase biodiesel from the plant and the biodiesel can be stored at a Magellan terminal. Samples are taken from all B100 deliveries, and random testing is conducted.
For performance and cost comparisons of four commercial antioxidant additives, the University of Idaho&rsquo;s Department of Biological and Agricultural Engineering, led by Jon Van Gerpen, department chair, conducted tests and published results in Biodiesel Tech Notes that can be found at biodieseleducation.org.
Using the appropriate stabilizer isn&rsquo;t just about meeting a spec for purposes of selling product though. Today&rsquo;s modern, high-pressure common rail fuel systems recycle fuel under high pressure and temperature, and an unstable fuel will form deposits that can foul fuel injector inlets and nozzles. Badly degraded fuel can even exhibit cold-flow-like problems. Moran says IFT is working with a bus fleet in Europe that uses B30 and the buses were breaking down due to filter clogging. After experimenting with a blend of its DiesoLIFT10 and antioxidant, the buses&rsquo; fuel mileage increased by 7 percent. &ldquo;More encouragingly, they stopped breaking down in the middle of their route,&rdquo; Moran says. IFT Global Business Development Manager Axel Farhi says, &ldquo;What we did was improve the physical stability and oxidation stability of the B30 blend, thus avoiding formation of residues collected in the filters, and thus improving combustion and fuel economy.&rdquo;
Infineum, a 50/50 joint venture between Shell and ExxonMobil, recently unveiled its R536 filterability additive, says Joanne LaBarge, a global advisor with Infineum USA LP. R536 was developed to improve biodiesel filterability in the three tests used to gauge whether precipitate formation above the cloud point will occur: D6751&rsquo;s Cold Soak Filtration Test, the Canadian General Standards Board&rsquo;s Cold Soak Filter Blocking Tendency Test, and Europe&rsquo;s Cold Soak IP 387 Test. Infineum says R536 also significantly reduces vehicle filter pressure.
Cold Flow Improvers
No. 1 diesel fuel (kerosene) is used in colder region winter diesel fuel blends at various percentages depending on temperature extremities. It works well at driving down cloud and cold filter plugging point (CFPP), but it is costly and reduces fuel mileage due to lower Btu content. Because of its high cut rate, kerosene is not a cold flow improver but rather a winter blend agent to diesel fuel. The right cold flow improver&mdash;meaning effective in both performance and price&mdash;should reduce costs and improve mileage by reducing the percent of No. 1 needed.
Biodiesel producers generally don&rsquo;t treat with cold flow improvers unless on rare occasion they need to bump the CFPP down a degree or two in order to meet a purchaser&rsquo;s spec. There are very few, if any, cold flow improvers on the market that are effective on B100 at a reasonable treat rate. Instead, most biodiesel cold flow additization is performed downstream at the rack when blended, and in some cases only work on the petroleum side of the blend equation.
&ldquo;There&rsquo;s no chemistry out there that will materially affect B100,&rdquo; Pipenger says. &ldquo;My company (Amalgamated Inc.) and a few others out there can drop the cold flow properties about eight to 10 degrees, but that&rsquo;s really not that great for a B100 since you&rsquo;re starting at plus 25 for pour point, 30 for CFPP and 32 for cloud on a soy product. Animal fats and palm are higher than that, so if you drop those eight or 10 degrees, that&rsquo;s not that big a deal. No one has anything that is going to materially affect the B100.&rdquo; Amalgamated Inc.&rsquo;s wax dispersing additives (trademarked WDA) work like other cold flow improvers, by changing the size and shape of the diesel paraffin wax crystals, allowing them to flow through fuel filters. While this concept works on diesel and some biodiesel blend concentrations, for B100, even modest dips in CFPP temperatures might be an &ldquo;embellishment,&rdquo; Vrzak says. &ldquo;It&rsquo;s very minimal at best.&rdquo; The difficulty is so great that some who have tried quickly gave up.
Farhi tells Biodiesel Magazine that IFT began looking at B100 cold flow technologies on the market and &ldquo;was not particularly impressed with their performance,&rdquo; he says. &ldquo;All were working better on the more unsaturated feedstocks, but the more saturated feedstocks could not be significantly improved.&nbsp;A major problem we found in unsaturated feedstocks was the poor repeatability. The other critical aspect was the very high dosages necessary, up to 3,000 ppm or more, to obtain significant cold flow improvement in B100. We were extremely concerned by these high dosages, the impact on the biodiesel price, and certain reluctance from fuel distributors and OEMs to accept such high additive levels due to the risks of potential instability and compatibility issues.&rdquo; He says IFT concluded that these problems were related to the type of polymer chemistries used in these materials, which are very similar to the CFPP additive technology used in diesel. &ldquo;We assumed that was the reason it wasn&rsquo;t performing particularly well in biodiesel, as wax crystallization processes differ in diesel and biodiesel (paraffin vs. fatty acid) and would therefore require different types of polymer chemistries,&rdquo; he says. &ldquo;We finally decided to drop this biodiesel cold flow improver project.&rdquo; He also adds that current standard methods&mdash;CFPP, pour point, LTFT, etc.&mdash;might not apply to biodiesel feedstocks. &ldquo;Last winter was particularly harsh in Europe,&rdquo; Farhi says. &ldquo;Problems were observed even with B7 blends meeting the latest EN590 low-temp specs, and made from biodiesel meeting the latest EN14214 low-temp specs.&rdquo;&nbsp;
Instead of treating the biodiesel portion of the blend, some say what many blenders selling fuel in cold climates do is a little rough math by considering the blend ratio, the bio and diesel cloud points or operational parameters like CFPP or pour point, and drive the diesel portion well below the desired target and then add bio, which raises the final blend to the desired point. Vrzak says petroleum cold flow improvers can be effective in biodiesel blends up to B20 by either increasing the treat rate or adding in more and greater dispersant-type technology.
Most biodiesel is consumed in low-level blends. &ldquo;If you are using a blend up to B7, chances are the [diesel] additive you were using before would work,&rdquo; says LaBarge with Infineum, &ldquo;but it&rsquo;s a question of, is it optimized? Can someone say you can use the same system for biodiesel blends? Yes, but it definitely wouldn&rsquo;t be an optimized solution, which means the fuel source and the biodiesel you&rsquo;re using, unless you go through the full testing and really pick the right additive for it, you may meet spec, but not necessarily in the most cost-optimized fashion.&rdquo; Vrzak says Innospec has cold flow additives that suppress CFPP tailored for B10 and B20, primarily, but he, like most additive suppliers, says the only way to optimize cold flow performance is to send samples of the diesel, biodiesel and the intended blend ratio to your current or prospective supplier so the best-performing, most cost-effective solution can be sought.
&ldquo;If you are trying to effectively treat a biodiesel blend, then obviously you want to treat both phases and you need two different ingredients,&rdquo; says Erik Bjornstad, technical director with Bell Performance. &ldquo;The chemistry we use in our cold flow formulations, specifically with respect to the ingredient that actually targets the esters, is more of a viscosity modifier for those esters&mdash;they don&rsquo;t flow the same way diesel does.&rdquo; Bell Performance offers Bio Dee-Zol, an antioxidant and water eliminator, and Bio Dee-Zol Plus, a cold flow improver, primarily to downstream markets.
Vrzak says while the refining industry business is huge for additive suppliers, the end-user market, especially with EPA-required ultra-low sulfur fuel and low-level biodiesel blends incentivized or mandated in various states, is growing as refiners and obligated parties take economic advantage of blending B5. &ldquo;The downstream opportunity for additization has definitely increased,&rdquo; Vrzak says. Bjornstad says as low-level biodiesel blends become more widely implemented by fuel distributors and jobbers, it&rsquo;s &ldquo;a bit of a game changer,&rdquo; mainly because biodiesel displaces the need for Bell Performance&rsquo;s lubricity additives. Conversely, it opens new additive opportunities.
Heine says Magellan&rsquo;s stance is that cold flow properties of the finished fuel should be determined by the blender. &ldquo;The blender can select an array of cold flow improvers available at our terminals, and adjust treat rates based on anticipated climatic conditions with consideration of the level of biodiesel that will be in the finished fuel.&rdquo;&nbsp;
What&rsquo;s Next?
Vrzak says cold flow improver work is always high on the list of Innospec&rsquo;s R&amp;D program, including biodiesel CFPP additives. &ldquo;And we continue to keep in queue a cloud point depressant for B100,&rdquo; he says. &ldquo;We always have ongoing work related to that. We&rsquo;re always hopeful to find that B100 silver bullet additive.&rdquo; Jeff Thompson, a North American fuels group manager with Infineum, says Infineum will continue improving its cold flow additives &ldquo;to treat traditional FAME better than we do today.&rdquo;
LaBarge adds that Infineum is developing additives for renewable, hydrogenated diesels made from nonfood sources, citing Europe&rsquo;s recent biofuel policy alterations to limit traditional oilseed biodiesel. Bjornstad says he doesn&rsquo;t foresee any new problems with biodiesel that people aren&rsquo;t aware of today, so Bell Performance&rsquo;s focus is trying to combine most effective treatment for those major problems and create the best value for end-users and bulk purchasers. Moran of IFT says, like what it did with those buses, &ldquo;there is technology out there that we&rsquo;re trying to create or shape to adapt to new [biodiesel] requirements and regulations.&rdquo; Eastman says it&rsquo;s not ready to share ongoing developmental work. And Pipenger &hellip; well, he says trust no additive company&rsquo;s claims, not even his own. Send samples to independent labs and verify their, and his, assertions.
Biodiesel producers should also test stabilizers themselves in their labs. And for blenders or end-users who want to test their cold flow improvers, do a simple, free test by placing an additized sample in the freezer for a day. If particles develop, make a new sample with more additive and repeat. If more than 1 ounce of additive per 3 gallons of fuel is required to stop particle formation, then maybe it&rsquo;s time to shop around.&nbsp;
 Author: Ron Kotrba Editor, Biodiesel Magazine 218-745-8347 <a href="mailto:rkotrba@bbiinternational.com">rkotrba@bbiinternational.com</a>

Eastman Chemical's Andy Singleton tests its BioExtend 30 line of biodiesel stabilizers with fuel samples sent through its one-click submission process at eastmanbioextend.com. 

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An overview of antioxidants and cold flow improvers for B100 and blends

Keep Biodiesel Stable, Flowing & Growing

For biodiesel refineries, a good maintenance plan starts with good training. Austria-based BDI-BioEnergy International AG, which has built more than 30 plants worldwide, starts its plant personnel training routine during construction of the facility. &ldquo;Operator training is essential for stable, effective biodiesel production,&rdquo; says Christine Riedl, senior engineer with BDI process engineering. Laboratory training is first, followed by classroom operator training during cold commissioning consisting of familiarity with feedstock parameters, chemicals used, safety regulations, reactions, production units, operation modus, safety material data sheets, the process control system (PCS) and troubleshooting. During this phase, operators are also involved in the cold commissioning and are familiarized with operating the equipment, valves, instruments, process control system and the entire installation. &ldquo;BDI will also provide special training for pumps, instruments and process control system,&rdquo; she says. Also the subsuppliers or vendors of special equipment such as centrifuges and steam boilers are on-site for equipment training. Besides technical documentation for equipment, troubleshooting and maintenance lists are available during commissioning. She says best results are achieved when operators are involved in commissioning and maintenance works as early as possible.
The third phase of training starts during hot commissioning, where operators should be responsible not only for biodiesel production but also equipment maintenance itself such as oil changes, pump sealings and new calibration of instruments. &ldquo;One of BDI&rsquo;s responsibilities is to also train operators in preventive maintenance,&rdquo; Riedl says. &ldquo;Listening to cavitation of pumps, or unusual noises in the plant, allowing the operator to react before the equipment will have greater damage, which can lead to a high production loss.&rdquo; During the commissioning, BDI organizes an operator plant tour as to &ldquo;get a feel&rdquo; for the process equipment. &ldquo;A walk around ensures that operators are able to react as soon as possible on unexpected interruptions or equipment failures,&rdquo; she says.&nbsp;
While training operators is essential, Riedl says a plant maintenance director ultimately responsible for upkeep duties must develop a maintenance plan that includes operation hours, oil changes and the like; listing of necessary maintenance items that can be done during an unscheduled stop; planned, or scheduled maintenance stops (involving all necessary subsuppliers); spare parts logistics including statistics, most needed parts, delivery times and availability; and cleaning procedures including clean-in-place systems, intervals for cleaning and so forth.
&ldquo;Prevention is always better than reaction,&rdquo; says Warren Barnes, vice president of Frazier, Barnes &amp; Associates. &ldquo;It creates havoc for an organization when you have unscheduled downtime versus planned downtime. Customers don&rsquo;t like it. Feedstock suppliers don&rsquo;t like it. And owners don&rsquo;t like it. It implies that you&rsquo;re not in control of your business.&rdquo; The biodiesel supply chain has such a small amount of product in it that &ldquo;process hiccups,&rdquo; as Barnes says, &ldquo;can literally run your customer out of product.&rdquo; Therefore, Barnes says regularly scheduled maintenance, particularly on rotating pieces of equipment, is extremely important.&nbsp;
Planned downtime should be scheduled with some regularity, whether it&rsquo;s one day a month and two to three days every quarter, or even a shift a month and a few shifts a quarter, Barnes says, with a well-thought-out list of things to be checked. &ldquo;It&rsquo;s unrealistic to expect any plant large or small to run for months without some scheduled maintenance,&rdquo; he says. &ldquo;We&rsquo;re not talking two or three weeks of downtime&mdash;maybe a shift, maybe two shifts on a holiday, schedule it around what the demand for your product is.&rdquo;&nbsp;
Riedl agrees. &ldquo;The maintenance plan has to be in place and stops must be planned,&rdquo; she says, adding that several maintenance items can be done during an unexpected or expected stop of the plant. Some producers only consider costs for spare parts and the maintenance team during unscheduled stoppages. &ldquo;They don&rsquo;t think about the time and the costs for an unexpected stop of production,&rdquo; Riedl says. &ldquo;There&rsquo;s not only the time for the equipment repair, but also the time to stop and start the plant.&rdquo;
Stocking spare parts must also not be overlooked. While holding inventory costs money, it&rsquo;s usually less costly than a failure after which a part must be ordered and delivered. &ldquo;Equipment vendors know parts have limited life,&rdquo; Barnes says. &ldquo;They will provide required spare parts for their equipment if asked, and most will without asking. To them it&rsquo;s just a normal course of business, when they get a proposal, they automatically get spare parts. Regardless of plant size or sophistication, it is fundamental for every plant, for every piece of equipment, to have them in inventory.&rdquo; Riedl says there are different equipment parts that can cause hang-ups and downtime. &ldquo;First, there is all rotating equipment like pumps or centrifuges, causing long shutdowns if there is no preventive maintenance in place and no spare parts on stock,&rdquo; she says. &ldquo;Second, fouling of the equipment is always an issue&mdash;that appears not suddenly but lingering. Slowly the quality of the products decreases and the quantities are going down.&rdquo;&nbsp; This can be avoided by using purified feedstock according to input specifications and by having an established maintenance plan. &ldquo;Basically,&rdquo; she says, &ldquo;a bad organization of even the smallest parts can have an impact on the production in several parameters.&rdquo;&nbsp;
There&rsquo;s only 365 days in a year, so when developing a maintenance routine, back off from there with a number of days for scheduled maintenance. Then, Barnes says, &ldquo;things will break,&rdquo; so add a number of days in a routine for unscheduled maintenance. Once a routine is established, at least there is something to hold people accountable to and improve upon. &ldquo;If you don&rsquo;t establish one, you don&rsquo;t have anything to measure against,&rdquo; he says. &ldquo;It&rsquo;s all about capacity utilization. The best return is the one you get on that extra gallon you produced yesterday.&rdquo;
As it relates to maintenance activities with flammable materials, Barnes says lockout/tag-out and confined space entry procedures are critical. &ldquo;You can go into a vessel that has been purged with 100 percent nitrogen and the first three breaths seem normal, but then you will rapidly lose vision, fall down, lose consciousness, and you will die,&rdquo; he says. &ldquo;In maintenance, everyone wants to do it quickly because you&rsquo;re not making money when the airplane&rsquo;s not flying, and that&rsquo;s when personnel safety is at the greatest risk.&rdquo;
Often overlooked are items like pressure relief valves, which could go unneeded and unchecked for five or 10 years and, as Barnes says, people assume they&rsquo;ll work. &ldquo;But the way you find out it didn&rsquo;t work is you blow a weld out and have a catastrophic failure of a vessel,&rdquo; he says. Barnes advises plant owners to use insurance carriers to help identify areas of risk. &ldquo;He is your helper, if you do what he says, you have an argument for lower insurance costs,&rdquo; or, at least avoidance of insurance increases. Owners can assess the industry&rsquo;s experience modifier and determine how their plant compares. &ldquo;That&rsquo;ll tell the management how they&rsquo;re doing,&rdquo; Barnes says.&nbsp;
Midlands Biofuels is a small, community-scaled producer in Winnsboro, N.C. Like many similar-sized plants, Midlands was built not by a large design/engineering firm, but by a few ingenious, resourceful individuals with a vision. Midlands co-founder &ldquo;Bio&rdquo; Joe Renwick speaks with Biodiesel Magazine about his maintenance experiences over the years. The first words of advice Renwick shares are, &ldquo;Just because something says it is biodiesel-compliant does not mean it will withstand the biodiesel production environment.&rdquo; Renwick and partner Brandon Spence built Midlands with whatever they had available as far as parts, valves and pumps go. They designed everything themselves, including its methanol recovery system. Renwick says Midlands uses hose instead of piping in many areas where piping was either too complicated or expensive, and where flexibility was desirable. &ldquo;We replaced every single hose inside this facility, and in the tank farm,&rdquo; he says. So-called &ldquo;biodiesel-compliant&rdquo; hoses were anything but, he says. Four years ago, Midlands switched out all hoses with Thermoid Vapor-loc hose. &ldquo;It&rsquo;s amazing,&rdquo; he says. &ldquo;We&rsquo;re very pleased with it.&rdquo; It&rsquo;s made of multiple layers and eliminates permeation and other things that cause biodiesel hoses to fail. &ldquo;It&rsquo;s thick and heavy-duty, but still pliable,&rdquo; he says. &ldquo;It&rsquo;s not only better, but cheaper. When we first started, we had Mustang hose, they said it was great but biodiesel would permeate and leak like no body&rsquo;s business. Our Thermoid Vapor-loc hoses trap in all those gases that could permeate, so it&rsquo;s good not only because it alleviates replacement costs, but it makes the work environment safer.&rdquo;&nbsp;
Midlands uses Schedule 80 PVC instead of steel in a number of piping applications. &ldquo;It turns out not all manufacturer&rsquo;s Schedule 80 PVC can withstand biodiesel,&rdquo; he says. We had a lot of pipe fail and then spent a lot of time reprocessing. It was a hell of a nightmare.&rdquo; Renwick says Lasco-brand light gray fittings were the source of the pipe problems. &ldquo;They all failed,&rdquo; he says. &ldquo;They swelled and deteriorated. At first we started seeing bits of gray pieces of gray shavings in the biodiesel that became soft and rubbery to where you can squeeze it, it was really weird. They were in the bottoms of our tanks and filters. We had tanks with that Lasco fitting at the bottom and it broke loose at the threads. Biodiesel just began leaking out on the floor, not a gush but a trickle. We quickly evacuated the tank and broke it all down. We had three tanks fail, and then we had to gut the entire system and replace all the PVC fittings and all piping. Specifically what was failing was the fittings, the pipe was holding up. It&rsquo;s not all Schedule 80 PVC fittings either, it&rsquo;s just this certain brand, and it&rsquo;s a light-colored gray.&rdquo; He says regular white Schedule 40 PVC fittings held up better than this brand of light-gray Schedule 80.
Other advice Renwick shares includes pipe threading techniques. &ldquo;When threading pipe, don&rsquo;t do to the standard one or two inches,&rdquo; he says. &ldquo;Do it a little bit bigger, it makes fitting tighter, it seals a hundred times better. Also, a lot of companies say they have pipe dope that works for biodiesel. We now use Slic-tite, it actually works. We&rsquo;ve used a number of other brands and they leak.&rdquo;&nbsp;
Renwick says Midlands uses Wilden diaphragm pumps. &ldquo;They&rsquo;ve been amazing,&rdquo; he says.
Midlands designed its own methanol recovery system and after a series of trials and errors, mostly in cooling the vapors enough to condense, he said they found a $20,000 commercial chiller from government surplus and paid only $750. It uses a lot of electricity and requires a lot of space, but chills extremely well. Methanol recovery not only requires heating and cooling, but also vacuum pumping. &ldquo;We tried a number of styles of vacuum pumps,&rdquo; Renwick says, &ldquo;and found the only safe and reliable option is a liquid ring vacuum pump.&rdquo;
Why has Renwick shared this information Midlands learned along the way? &ldquo;The way I feel about the biodiesel industry right now is, if we don&rsquo;t become more of an open-source industry where we&rsquo;re helping each other, we&rsquo;re all going to be screwed,&rdquo; he says. &ldquo;The biodiesel industry is not a real pretty industry to be in right now, it&rsquo;s pretty tough. If I can give information right now that will help someone else do it better and keeps this industry alive, I&rsquo;m glad to do it.&rdquo;
Author: Ron Kotrba
Editor, Biodiesel Magazine
218-745-8347
<a href="mailto:rkotrba@bbiinternational.com">rkotrba@bbiinternational.com</a>

PLANT ESSENTIALS: Good operator and maintenance team training, an established maintenance plan, availability of spare parts, good housekeeping and respect for operators who work in a complex installation are important to keep biodiesel facilities ope

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NOT COMPATIBLE: â€œBioâ€� Joe Renwick with Midlands Biofuels says Lasco-brand light gray PVC fittings all failed one by one, even though they are Schedule 80 PVC. 


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From sophisticated, large plants to self-designed community production, Biodiesel Magazine shares practical, expert advice on plant maintenance

Advice to Operate By

Safety training, work permits, standard operating procedures and what seems to be an almost endless amount of documentation can be a burden to an operating facility. It hasn&rsquo;t always been that way, but today in the life of a biodiesel producer, there are a great deal of regulatory requirements in place to reduce workplace injuries and fatalities.
 With the Occupational Safety and Health Act of 1970, Congress created the Occupational Safety and Health Administration to assure safe and healthful working conditions for working men and women by setting and enforcing standards and by providing training, outreach, education and assistance.&nbsp; OSHA tends to be the driving force in getting movement on pertinent issues across all industries. For example, management personnel oftentimes just accepts and agrees that a certain amount of noncompliance or minor worker compensation claims are a part of doing business, and are risks they are willing to take. These, today more than ever, are futile assumptions largely because of the OSHA enforcement efforts. On average in the U.S. biofuels industry, there are at least two workers compensation claims annually. The insurable cost of those claims average approximately $12,000, or $6,000 per claim, but that is why people buy worker compensation insurance, so why should you care? Because of the downstream effects of those claims, such as OSHA citations, increased insurance costs, replacing time of the injured employee, administrative time to deal with claims, and the most invaluable of them all, management responsibility. As management of a company, the buck stops with you, not only emotionally, but legally as well. According to the National Safety Council, the uninsurable cost of claims are, on average, four times the insurable or direct cost, giving biofuels producers $48,000 net loss to the bottom line. When the numbers are laid out, it is easy to see that there is a real, tangible value to care about this topic and to spend time and resources on safety.
 When looking at safety and compliance risks specifically within the biodiesel industry, and more specifically within an individual company, it is important to use a systematic approach to determine the importance of each. Categorizing each potential risk into a risk matrix will provide a pathway for continuous improvement. A great place to start is to identify risks through a comprehensive facility audit. This should outline all of the risks, both safety and compliance related, for your staff to prioritize and address.
 Lately, it seems the enforcement group of OSHA is the most active in the biodiesel industry, due to a handful of fires and explosions. Just like large chemical and refining operations, biodiesel production poses a significant risk of catastrophic events occurring if comprehensive Process Safety Management programs and training are not in place and followed religiously. Process Safety Management (29 CFR 1910.119), as defined by OSHA, is in place to set forth requirements for preventing or minimizing the consequences of catastrophic releases of toxic, reactive, flammable or explosive chemicals, as these releases may result in toxic, fire or explosion hazards.
 To make it simple, a PSM program in biodiesel is a very systematic approach to manage and ensure that you operate your processes containing hazardous materials such as methanol, sodium methylate and biodiesel in a safe manner. This is done by limiting potential for unintended mixing, equipment failures, and unplanned maintenance while ensuring employees understand the process through involvement and training.
 Beyond the current &ldquo;hot issue&rdquo; of PSM compliance, there are several compliance topics that all biodiesel producers should be in tune with to ensure citations are avoided. Below is a brief snapshot of three of the most looked at and easily definable regulatory requirements per OSHA.
 Written Safety Policy: A written safety plan, or policy, is required for all workplaces. This policy should be accessible to all employees. The safety plan states the purpose of the company to protect workers, details who is responsible for implementing safety programs, and provides contact information for reporting unsafe work conditions. The main portion of the safety policy should also address the hazards a worker may encounter on the job, as well as how management, supervisors, and workers, can avoid being injured around those hazards. Safety checklists and any needed permits for specific types of work need to be included in the proper section of the safety policy.
 Safety Training: OSHA also requires all workers to complete a 10- or 30-hour safety training course, given by an OSHA-certified trainer, such as the company's safety director or a consultant from a professional safety training company. Training must be completed before beginning work at a particular company. Some companies allow previously trained new-hires to provide proof of training from a former job, if the training is relevant. All workers have the right and the responsibility to be trained in all areas of safety that will affect his or her safety on the job. Other training as needed should be provided, such as when new equipment is presented on the job, new safety policies are added or an unfamiliar work situation arises.
 Record Keeping: Record keeping for the workplace includes documentation of employee training, records of illness and injuries on the job, and proof of licensing for workers who operate certain equipment or vehicles. OSHA and state authorities require periodic records concerning injuries and illnesses. Hazardous materials in the workplace, even substances such as dishwashing soap or floor cleaning materials, must have a Material Safety Data Sheet (MSDS, now referred to as SDS) on file. In the world of OSHA and EPA regulation, if it isn&rsquo;t documented, it&nbsp; will be treated as if it never happened.
 While on the subject of regulatory scrutiny, there are several regulations that apply to the biodiesel industry that fall under the U.S. EPA&rsquo;s authority. All facilities that have the potential to emit an air contaminate are regulated under the Clean Air Act, requiring some form of air permit. All biodiesel facilities have the potential to come in contact with storm water, requiring the need for storm water pollution prevention plans and spill plans as industrial sources. Additionally, since biodiesel facilities have explosive and potentially harmful materials onsite, they trigger additional requirements for plans/approvals under Sara Title 313, and RCRA (additional EPA regulations). It is recommended that every facility know what environmental regulations they are also applicable to, as to not have noncompliance exposure related to EPA requirements.
 A lot has been learned through working hand-in-hand with biofuels producers, agribusiness companies and chemical production facilities over the past decade. One key thing to understand going forward is excuses, such as &ldquo;we didn&rsquo;t know&rdquo; or &ldquo;we planned to do that,&rdquo; simply aren&rsquo;t going to fly any longer. As the federal government continues to look for ways to balance the budget, it seems as if tightened OSHA and EPA regulations will not waiver. It is much easier to hear in the news that XYZ Biodiesel was fined $75,000 for failure to comply with a certain safety regulation than it is to hear that their income tax rate is going up.
 OSHA regulation might be a nuisance, but it is there for good reason, and they are no longer sitting around.
 Author: Nathan Vander Griend Vice President of Client Services, ERI Solutions Inc. 316-927-4294 <a href="mailto:Nathan.Vandergriend@erisolutions.com">Nathan.Vandergriend@erisolutions.com</a>

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QUANTIFYING RISK: Categorizing each potential risk into a risk matrix provides a path forward for continuous improvement.

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FIRE WATCH: The biodiesel industry's safety record is less than stellar, but plants implementing and adhering to a strong PSM program could improve that.

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Ignorance of OSHA, EPA regulations no longer flies for biodiesel producers 

November-December 2012

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