The writing process, if done responsibly, will almost always lead to an excess of information in the hands of the writer. The writer is his own first editor, leaving scraps of facts, figures, data and quotes on the cutting-room floor in an attempt&mdash;however successful&mdash;to cohesively and clearly tell a story. The assignment pitch, deadline, page count, audience, his knowledge of the subject matter, and his own personal world view all contribute to the decision-making process of what to include and what to leave out. Some writers may complain when faced with too much information. I seldom face this problem. For me, the worst and hardest article to write is the one for which too little material is gained during the information-gathering phase. It just doesn&rsquo;t work, and the writer&rsquo;s lack of subject matter knowledge glares back at the reader like&mdash;well, like a poorly written, ill-informed article. Anyone can identify the signs: vagueness; skirting, or writing around, the issue; brevity when a deeper analysis is called for; a lack of primary sources&mdash;or even worse, citing secondary sources such as another news outlet. In my humble opinion, information-gathering&mdash;research, interviews, attending technical sessions at events, and deliberation&mdash;is the most important and intense part of the writing process. During this phase of my page-14 feature, &ldquo;<a href="http://biodieselmagazine.com/articles/2516631/where-will-all-the-feedstock-come-from">Where Will All the Feedstock Come From?</a>&rdquo; I spent weeks interviewing some of the most revered feedstock experts in this space&mdash;Stephen Kaffka, John Cusick and Alan Weber. My interview with Weber led me to CoverCress and its CEO Jerry Steiner. When all of my interviews were completed, the word count of my notes from these four sources alone was in the tens of thousands. For me, this is where I want to be when I begin writing an article. Sure, my nearly 15 years as a writer in this sector, notebooks full of handwritten notes from recent industry events, and access to a world of information through the internet help. But the perspectives of primary sources such as these are invaluable. Like most feature articles that I write, despite this article being 4,500 words long I am left with a plethora of information that did not make it into the piece. Is this wasted time and effort on my part? Never. It adds to my growing background knowledge and will help inform future articles. Even if this were not the case, I can genuinely say it was simply nice to talk with these folks and glean just a fraction of their insight. The information I gathered can, if necessary, be distilled down to a few points. One, no one I spoke with can identify an upper limit to biomass-based diesel production before feedstock markets go haywire. It&rsquo;s not infinite, but it may not be as finite as some think. Two, market forces drive innovation and efficiency. Given the right market signals, sustainable supplies will follow. Three, markets&mdash;including drivers, participants and technologies&mdash;change. The difference between creative adaptation and apathetic obliviousness is the difference between success and failure. Author: Ron Kotrba Editor Biodiesel Magazine rkotrba@bbiinternational.com

2019/03/Ron-Kotrba_15538680941376_largethumb.jpg

2019/03/Ron-Kotrba_15538680941376_thumb.jpg

2019/03/Ron-Kotrba_15538680941376.jpg

In his Editor's Note from the Spring 2019 print edition, Kotrba discusses the writing process as it relates to development of his most recent feature article on biodiesel feedstock—â€œWhere Will All the Feedstock Come From?â€�

Balancing Act

Ron Kotrba, your editor of Biodiesel Magazine since 2009 who&rsquo;s been writing for the publication since 2005, was recognized in January with the 2019 Influence Award by the National Biodiesel Board. This is a well-deserved acknowledgement of Kotrba&rsquo;s significant contributions to the biodiesel industry, and I commend NBB for its selection of Kotrba out of hundreds of nominations. Kotrba is an accomplished professional and also a gentleman who goes about his work with persistence, conscientiousness and great skill. That work has made Biodiesel Magazine an indispensable trade journal for the industry and certainly worthy of an Influence Award. But Kotrba himself has chosen to carry out his role mostly behind the scenes. I have known Kotrba for all of his years in the biodiesel industry and have come to greatly admire and respect the man and his work. So, it seemed that this was a good opportunity for his many readers to get to know more about him as well.&nbsp; For those who have been in the biodiesel industry for less than 10 years, you may not know or remember the origins of the Eye on Biodiesel Awards. They were inspired by the CBS evening news segment &ldquo;Eye on America,&rdquo; and we decided we could name all of the awards with the letter &ldquo;I&rdquo;&mdash;Influence, Impact, Inspiration, etc. Past recipients include Willie Nelson, Darryl Hannah, Neil Young, Melissa Etheridge, John Deere, and Ford. So, Kotrba is in distinguished company, including his fellow 2019 recipients.&nbsp; Not long after graduating with a bachelor&rsquo;s degree from Michigan State University, Kotrba began his career as an advanced engineering laboratory technician for an OEM exhaust supplier. He helped lead developmental work on diesel aftertreatment systems such as diesel particulate filters, urea SCR and lean NOx traps. Kotrba started working for BBI International Jan. 5, 2005, as a staff writer for Biodiesel Magazine and Ethanol Producer Magazine. In 2007, BBI launched Biomass Magazine and the debut issue featured his cover story. Later in 2007, Kotrba became senior writer for all of BBI&rsquo;s publications. In 2009, during the Great Recession, he took over editorship of Biodiesel Magazine. &ldquo;Those were very scary times for everyone, but the biodiesel industry took a disproportionate hit,&rdquo; Kotrba said. &ldquo;Vegetable oil prices had followed crude oil prices to record highs&mdash;72 cents per pound for soy oil and $147 a barrel (bbl) for West Texas Intermediate. Those high oil prices were a contributor to the economic collapse that sent oil prices below $30/bbl in a matter of months. The banking, real estate and automotive industries were teetering on complete failure. But in addition to suffering in this economic freefall with everyone else, biodiesel got hit with the European trade case, the delayed implementation of the Renewable Fuel Standard, and the first lapsed tax credit. It was somewhat surreal.&rdquo; Kotrba&rsquo;s career in the biodiesel industry was just getting warmed up at the same time that the industry was plunging headlong into a major wave of hardship. But he fought through all the challenges and his hard work and persistence paid off. The year 2011 emerged as a banner one for Kotrba, as he led the editorial direction of 26 print magazines (12 Biodiesel Magazine, 12 Biorefining magazine and two Algae Technology &amp; Business) as well as helping to organize and attending a number of industry conferences. Throughout its 15-year history from 2004 to today, Biodiesel Magazine with Kotrba at the helm experienced the same wave after wave of dramatic challenges and successes that the biodiesel industry went through. The industry was characterized during that time by astonishing growth and breathtaking victories followed by seemingly overwhelming challenges in &ldquo;rinse and repeat&rdquo; cycles that were enough to make your head spin. So too has been the turbulent path for Biodiesel Magazine during its lifespan. As the magazine enters the second half of its second decade in publication, I, for one, predict a more stable future for this print and online publication that has become a staple for our industry. Kotrba has published thousands of articles over the past 14-plus years that touch on every aspect of biodiesel, ethanol, biomass and much more. He also manages Biodiesel Magazine&rsquo;s U.S. &amp; Canada Biodiesel Plant Map that has become a widely used resource. He has attended every National Biodiesel Conference &amp; Expo for the past 14 years in a row. Kotrba shared with me that one of the many highlights of his career was at the 2007 NBB Conference in San Antonio, Texas, when Merle Haggard performed a concert to launch the NBB political action committee. Kotrba is a lifelong fan of the country legend and was thrilled when Haggard took a question from him at a press briefing. &ldquo;I was on cloud nine,&rdquo; Kotrba said. &ldquo;I sat and enjoyed the concert and couldn&rsquo;t wipe the grin off my face the whole time.&rdquo; One of the things that distinguishes Kotrba as a journalist is his commitment to accuracy and the truth. His reporting is always relentlessly backed up by facts, and that gives him and his magazine an earned reputation for credibility. &ldquo;Through all the trials and tribulations, this industry has persevered as the perpetual underdog,&rdquo; Kotrba told me. &ldquo;People should not underestimate the doggedness of the men and women of this industry. They are fighters. And they are fighting the good fight&mdash;the right fight.&rdquo; As the former CEO of the NBB for nearly 20 years, I&rsquo;m proud to share some of those scars with Kotrba, and I&rsquo;m glad that he is being recognized for the positive influence he has had&mdash;and will continue to have&mdash;on this industry. Author: Joe Jobe President and Founder, <a href="https://www.rockhouse.us">Rock House Advisors</a> 573-680-1948 joe@rockhouse.us

2019/03/Joe-Jobe_15538679964037_largethumb.jpg

2019/03/Joe-Jobe_15538679964037_thumb.jpg

2019/03/Joe-Jobe_15538679964037.jpg

Ron Kotrba, your editor of Biodiesel Magazine since 2009 who's been writing for the publication since 2005, was recognized with NBB's 2019 Influence Award. It seemed this was a good opportunity for his many readers to get to know more about him. 

Eye on the Editor

Minnesota Soybean Growers Association Minnesota became the first state in the nation in 2002 to pass a statewide biodiesel blend requirement. The Minnesota mandate, first implemented at 2 percent in 2005, served as a model for other states. &ldquo;Some people said, &lsquo;If they can do it in Minnesota&rsquo;s colder climate, why can&rsquo;t we do it here in our state?&rsquo;&rdquo; says Chris Hill, a soybean farmer in Brewster, Minnesota, and a director with the Minnesota Soybean Growers Association and American Soybean Association. &ldquo;They saw what we did here and used it as a mold for their states and had lots of success with it. It&rsquo;s like getting a pump going&mdash;once it&rsquo;s going, it&rsquo;ll run on its own.&rdquo; Through MSGA and the checkoff program, Minnesota farmers can be credited for starting that pump from which so many others have benefited. Biodiesel crosses Minnesota&rsquo;s geographic, demographic and political party lines. From value-added uses and improved prices for soybean oil&mdash;long considered a drag on soymeal prices&mdash;to city dwellers reaping the health benefits of improved diesel exhaust emissions, Hill says biodiesel is one of those rare issues everyone can get onboard with. &ldquo;It&rsquo;s a win-win-win-win for everyone,&rdquo; he says. Minnesota blazed another biodiesel trail last year by increasing the blend requirement to 20 percent in the summer months. &ldquo;Last year was our first year with B20, and we had a real good year,&rdquo; says Jim Willers, a soybean farmer in Beaver Creek, Minnesota, director with the United Soybean Board, and a Minnesota Soybean Research &amp; Promotion Council board director.
Willers was among the early contingent of MSGA farmer-members taking the biodiesel message to the state capital, proposing the idea to legislators to alleviate downward price pressure from a glut of soybean oil on the market. &ldquo;We went there marching around the capital, asking people about it&mdash;that&rsquo;s how it started,&rdquo; he says. &ldquo;We went home, got organized and spent two more years working on it.&rdquo; Minnesota&rsquo;s biodiesel requirement adds 63 cents per bushel to a farmer&rsquo;s bottom line, Hill says, and lowers the cost of soymeal for livestock producers. Willers says the B20 mandate is equivalent to removing 223,000 cars from the road. But it also adds $1.7 billion in economic impact to the state, creates more than 5,000 direct and indirect jobs, and lowers greenhouse gas emissions in this age of growing climate uncertainty. &ldquo;Minnesota farmers are forward-thinking because we are at the headwaters of where things have to head downstream and overseas,&rdquo; Hill says. &ldquo;We&rsquo;ve always been a taker of price. With biodiesel, we have the ability to add value to our products. We needed something to be done, so why not do it ourselves? We can be the promoters of our own achievements. We have shown that biodiesel works well, it requires no modifications to equipment or vehicles, and it helps our bottom line.&rdquo; After all these years, farmer-led MSGA and MSR&amp;PC&mdash;conceptualizers of the first state biodiesel mandate&mdash;continue to be fierce advocates for Minnesota&rsquo;s biodiesel industry through fantastic truck builds like that featured on Discovery Channel&rsquo;s Diesel Brothers, tours, meetings with legislators, informative publications and continued research through instruments such as a new Soy Innovation Campus. RPS Renewable Process Solutions Inc. has commissioned two supercritical biodiesel production facilities co-located with existing ethanol plants. The supercritical biodiesel process (SBP) is a patented technology developed by RPS, now optimizing its third-generation model. &ldquo;We have a few more facilities coming online in the coming years,&rdquo; says Rahul Bobbili, RPS president and chief technology officer. &ldquo;It&rsquo;s becoming more evident that integrating SBP with an ethanol facility reduces capital investment by a third compared to a greenfield project. Also, a 5 MMgy co-located SBP recovers its capital investment within two to three years.&rdquo; Ethanol facilities are the ideal location to produce biodiesel with broad advantages over greenfield projects. SBP can use methanol or ethanol to convert distillers corn oil (DCO) to biodiesel. Bobbili says ethanol can increase biodiesel yields up to 5 percent with a better carbon intensity score. &ldquo;Also,&rdquo; Bobbili adds, &ldquo;using ethanol further reduces capital investment by eliminating processing steps for methanol recovery and purification.&rdquo; SBP glycerin is 97-plus percent pure. &ldquo;Ethanol plants can sell glycerin to traders at a higher price,&rdquo; Bobbili says, &ldquo;or blend with their wet or dried distillers grains to gain a minimum value of 7 to 8 cents per pound.&rdquo; The integrated utility load reduces capital investment and equipment. &ldquo;Utility streams such as power, steam, cooling water and compressed air are usually available in excess at an ethanol facility,&rdquo; Bobbili says. &ldquo;A co-located SBP uses a small portion of that utility to convert DCO into biodiesel.&rdquo; Co-location also reduces storage tankage. &ldquo;A co-located SBP only needs biodiesel and methanol storage tanks, whereas the number of storage tanks required for a greenfield project is quite high,&rdquo; Bobbili says. If ethanol instead of methanol were used, this would further reduce necessary tankage. &ldquo;When DCO is fed into the process, byproducts from the co-located SBP are piped to various locations in the ethanol facility to capture their value,&rdquo; he says. Labor cost savings for a co-located SBP are significant compared to greenfield projects, as no additional operators are required. &ldquo;SBP is a continuous, hands-free operation with minimal oversight and periodic maintenance,&rdquo; he says. &ldquo;Since we use no catalyst whatsoever, the process is clean with no impurity accumulation to bring down the equipment for maintenance.&rdquo; Ethanol plants with SBP can improve DCO margins by 10 to 12 cents per pound&mdash;not including LCFS credit values. Furthermore, increasing capacity to handle other feedstocks will bring more income. There is much discussion lately on renewable diesel vs. biodiesel. Bobbili says it&rsquo;s not economically viable to co-locate renewable diesel production with an ethanol refinery. &ldquo;The cost is four times that of a biodiesel facility,&rdquo; he says. &ldquo;Also, the margin on biodiesel is far higher than renewable diesel.&rdquo; Bobbili is confident more ethanol plants will produce biodiesel in coming years. &ldquo;We welcome the ethanol industry to reach out to RPS to learn more about the supercritical biodiesel process, and to see our operating facilities,&rdquo; he says.

PROTEIN POWER:  The worldâ€™s growing demand for protein drives soybean plantings, which leaves an excess of soybean oil on the market. The Minnesota Soybean Growers Association championed the nationâ€™s first state biodiesel mandate 17 years ago.  

2019/03/Soy-Spotlight_15538662064818_largethumb.jpg

2019/03/Soy-Spotlight_15538662064818_thumb.jpg

2019/03/Soy-Spotlight_15538662064818.jpg

2019/03/Hill-C-smnsoy-145_15538660418004.jpg

The RPS-built SBP at Calgrenâ€™s ethanol plant in Pixely, California, is being commissioned.

2019/03/IMG_5229_1553866042936.jpg

2019/03/Willers-J_15538660438595.jpg

WONDER PLANT:  Corn is used to ferment and distill into ethanol, which provides distillers grains byproduct to the feed industry and distillers corn oil for conversion into biodiesel using technologies such as the supercritical process pioneered by R

2019/03/Corn-Spotlight_15538662055585.jpg

Spotlighting the Minnesota Soybean Growers Association, which championed the nation's first biodiesel mandate as a way to add value to surplus soybean oil, and RPS, whose co-located biodiesel process adds 12 cents a pound to ethanol producers' DCO. 

Spotlight: Adding Value Across the Board

NEW KID ON THE BLOCK: CoverCress CEO Jerry Steiner says he can foresee farmers growing 5 million acres of his companyâ€™s modified pennycress winter cover crop in 10 years, which could yield 400 MMgy of new high-quality oil. 

2019/03/Covercress-ledeBDM_15538666317794_largethumb.jpg

2019/03/Covercress-ledeBDM_15538666317794_thumb.jpg

2019/03/Covercress-ledeBDM_15538666317794.jpg

2019/04/Alan-Weber_15542341150911.jpg

2019/04/Jerry-Steiner_1554234139529.jpg

2019/04/kaffka-cropped_15542341866218.jpg

As a new wave of large-scale biomass-based diesel projects develops, experts suggest market forces are ready to deliver the necessary fats, oils and greases. 

Where Will All the Feedstock Come From?

The National Biodiesel Board&rsquo;s annual Eye on Biodiesel awards recognize a diverse group of individuals and organizations who have made significant contributions to biodiesel. From longtime champions to present-day breakthroughs, the commercial biodiesel industry wouldn&rsquo;t be where it is today without these individuals and organizations. &ldquo;These leaders are integral to the growth and development of the biodiesel industry,&rdquo; said NBB CEO Donnell Rehagen, &ldquo;and we would not have seen the strength in our sector this year without their extensive dedication.&rdquo; Cory-Ann Wind, Oregon Clean Fuels Program Manager, and the Oregon Department of Environmental Quality&mdash;Climate Leader Award The Oregon Department of Environmental Quality administers the state&rsquo;s Clean Fuels Program, which is led by CFP Manager Cory-Ann Wind. The CFP requires gradually increasing carbon intensity reductions for transportation fuels, culminating in a 10 percent reduction by 2025. Following only the second year of program implementation, biodiesel use in Oregon grew to 51 million gallons. NTEA &ndash; The Association for the Work Truck Industry&mdash;Industry Partnership Award NTEA represents more than 2,050 companies that manufacture, distribute, install, sell and repair commercial trucks. It also provides in-depth technical information, education, and member programs and services. NBB&rsquo;s partnership with NTEA has been instrumental in getting biodiesel information to the critical audience in the work truck industry. Casey&rsquo;s General Stores&mdash;Impact Award In the past year, Casey&rsquo;s General Stores has become a leading player in the biodiesel industry, keeping biodiesel in high consumer demand. Casey&rsquo;s has now converted more than 590 stores to biodiesel and plans to expand the use of biodiesel products to another 300 locations. With this prominence across the country, the biodiesel industry has an opportunity to make strides in public awareness and usage of America&rsquo;s advanced biofuel. Ron Kotrba, Editor of Biodiesel Magazine&mdash;Influence Award Ron Kotrba has been writing for Biodiesel Magazine for more than 14 years and has served as editor for a decade, going above and beyond to create awareness and provide an important platform for the voices within the industry. His depth of knowledge on the issues affecting the industry has led to strong, consistent reporting of the complex issues faced over the years. Biodiesel Magazine continues to be a critical platform for sharing biodiesel success stories that are key to building support for industry growth. Stephen Kaffka, Extension Agronomist, Department of Plant Sciences, University of California, Davis&mdash;Inspiration Award Stephen Kaffka has been a key advisor during implementation of the California Low Carbon Fuel Standard. His expertise on agricultural production bridged the gap between the good things that farmers can do, and the environmental metrics desired by the Air Resources Board and its stakeholders, who place environmental protection as a top priority. As a result, biodiesel producers are participating in an expanding California market while the carbon reduction goals are being exceeded.

2019/03/Awards-Cory-Ann-Wind_1553866787418_largethumb.jpg

2019/03/Awards-Cory-Ann-Wind_1553866787418_thumb.jpg

2019/03/Awards-Cory-Ann-Wind_1553866787418.jpg

2019/03/Awards-Ron-K_15538667924079.jpg

Industry Honors Biodiesel Champions with Annual Awards

The National Biodiesel Board continues to work closely with its members and allies to advocate federal policies that support growth of the industry. Securing an extension of the biodiesel and renewable diesel tax incentive, which expired at the end of 2017, is an urgent priority. In early February, NBB members traveled to Washington, D.C., to meet with their representatives and senators. In nearly 50 meetings over a two-day period, biodiesel producers and soybean growers urged legislators to renew the biodiesel and renewable diesel tax incentive as soon as possible. They discussed the financial challenges that the industry is already facing due to the lapse of the tax credit.
The meetings produced a positive outcome. On Feb. 11, Reps. Dave Loebsack, D-Iowa, and Darin LaHood, R-Illinois, and 42 other representatives sent a bipartisan letter to their leaders urging a multiyear extension of the biodiesel tax incentive as soon as possible. In support of the biodiesel industry, members of Congress from across the country&mdash;from California to New York&mdash;signed the letter to House Speaker Nancy Pelosi, D-California; Republican Leader Kevin McCarthy, R-California; Majority Leader Steny Hoyer, D-Maryland; and Republican Whip Steve Scalise, R-Louisiana. &ldquo;We strongly support a multiyear extension of the incentive to provide the policy certainty necessary to help the biodiesel industry and rural economies continue to grow,&rdquo; the letter states. Many groups have written to ask that Congress make it a priority to extend the tax incentive at the earliest opportunity. In a March letter to Pelosi and McCarthy, members of the California Advanced Biofuels Alliance wrote, &ldquo;The uncertainty created by the lapse of the biodiesel tax credit is slowing investments in new plants and raising the costs of projects to maintain, improve or expand existing plants.&rdquo; The effort to convey a sense of urgency to Congress also paid off. Sens. Chuck Grassley, R-Iowa, and Ron Wyden, D-Oregon, chairman and ranking member of the Senate finance committee, respectively, introduced legislation that would provide a two-year extension of the biodiesel and renewable diesel tax incentive. &ldquo;We hope that both House and Senate will address the expired tax provisions as soon as possible,&rdquo; said Kurt Kovarik, NBB&rsquo;s vice president of federal affairs, while thanking the senators. &ldquo;Biodiesel producers have counted on the credit to secure blending contracts and financing for plant expansions and upgrades. But they are now facing the longest period of uncertainty ever, as the tax incentive remains expired two full months after the start of the year.&rdquo; The House ways and means committee is now beginning a process to consider all expired tax incentives, with the first hearing held March 12. NBB Fair Trade Coalition Additionally, NBB&rsquo;s Fair Trade Coalition continues efforts to ensure that the U.S. maintains a level playing field for domestic producers to compete with imported biodiesel. In early 2018, the U.S. Department of Commerce issued countervailing duty and antidumping orders on imports of certain biodiesel products from Argentina and Indonesia. The move followed an extensive trade investigation showing that the countries were subsidizing their domestic industries and selling their biodiesel significantly below fair market value. Then in December, the commerce department initiated &ldquo;changed circumstances&rdquo; reviews to assess Argentina&rsquo;s most recent modification to its export tax regime and whether a review of the U.S. antidumping and countervailing duty orders is warranted. NBB worked to raise awareness of the situation. In late February, a bipartisan group of 14 senators, led by Grassley and Sen. Maria Cantwell, D-Washington, wrote to Secretary of Commerce Wilbur Ross. &ldquo;It is unclear why Commerce would afford a special review to Argentina and its biodiesel industry when the ink on these antidumping and countervailing duty orders is barely dry,&rdquo; the group of senators states in the letter. The letter was co-signed by four other senators from the finance committee, which oversees issues with international trade. The senators asked Ross to develop a complete record of Argentina&rsquo;s biodiesel trade actions before determining whether revisiting the U.S. duties is warranted. &ldquo;In the short period since the antidumping and countervailing duty orders were imposed, U.S. biodiesel producers have been able to compete on a more level playing field, and the U.S. biodiesel industry has begun to recover from the injury caused by the unfair trade practices of the Argentine government and industry,&rdquo; the letter states. Domestic biodiesel production increased by 17 percent, or more than 300 million gallons, in 2018 compared to 2017.

2019/03/DC-Meeting-NBB_15538669975388_largethumb.jpg

2019/03/DC-Meeting-NBB_15538669975388_thumb.jpg

2019/03/DC-Meeting-NBB_15538669975388.jpg

The National Biodiesel Board continues to work closely with its members and allies to advocate federal policies that support growth of the industry. Securing an extension of the expired biodiesel tax credit is an urgent priority. 

Federal Affairs Efforts Remain Key Focus in 2019

Thank you. Thank you to the biodiesel leaders, champions, advocates and many others who helped make our industry a success in 2018. The U.S. biodiesel industry can proudly look back on a year in which we made some significant progress toward a stronger and more predictable industry. Today, biodiesel is more present than ever in the current marketplace, showing up as a leading player in the fuels industry and delivering on today&rsquo;s consumer demand for more environmentally friendly fuel.
In January, we celebrated this success at our annual National Biodiesel Conference &amp; Expo in San Diego, California. It was rewarding to commemorate a year of milestones with biodiesel pioneers from across the country and remark on an industry that began more than two decades ago. Now we are a nearly 3 billion-gallon-a-year industry and still growing, and we owe a lot of that success to our committed members. Another big reason for recent growth has been successful policy efforts. These policies don&rsquo;t just happen. It takes a long, sustained effort to work with our champions to craft policies that work. We are fortunate to have members of Congress who advocate for biodiesel and strong leaders who are willing to lie on the tracks for us. This past year we engaged with organizations like National Renderers Association, National Association of Truck Stop Operators, American Soybean Association, Petroleum Marketers of America, and many more. The National Biodiesel Board has strengthened its reach and relationships by increasing regular dialogue with our industry partners. With this cooperation, we know we can accomplish more. However, in 2019 we will need to continue to work alongside our stakeholders to improve our policy efforts and fight the good fight that is necessary in Washington, D.C. Our first task will be reinstatement of the biodiesel tax credit. For many years, NBB has advocated for a long-term, multiyear tax incentive that provides producers certainty and encourages investment and growth. Last year, however, we fell short of achieving a long-term extension of the $1 per gallon federal biomass-based diesel blenders tax credit. While this was a disappointment, the progress NBB made in having positive conversations with House and Senate leadership about the benefits of a long-term tax credit instead of the on-again, off-again nature we&rsquo;ve seen over the past 10 years gives us confidence in the opportunity to see success in 2019. Also, in 2019, the industry will continue to face issues in the Renewable Fuel Standard, such as small refinery exemptions and U.S. EPA&rsquo;s planned rule changes. EPA announced it will initiate a rule and public comment period to reset the statutory RFS volumes for 2020-&rsquo;22. The agency triggered this reset by waiving the annual statutory volumes for advanced biofuels by more than 20 percent for 2018-&rsquo;19. NBB previously engaged EPA on the planned reset and continues to advocate for higher volumes in the biomass-based diesel and advanced biofuel categories as the agency develops the reset proposal and the 2020 annual rule. In 2019, NBB will continue to pursue litigation that could force the agency to review its past rules and change its methodology going forward. Additionally, NBB will be focusing its efforts on the U.S. Department of Commerce. Late in 2018, against the expressed wishes of the NBB Fair Trade Coalition, the commerce department granted the government of Argentina&rsquo;s request and initiated &ldquo;changed circumstances&rdquo; reviews of U.S. antidumping and countervailing duty orders on Argentine biodiesel companies. The department&rsquo;s changed circumstances review process typically takes up to 270 days, meaning a final determination could come as late as September. In the meantime, the duties remain in place as established.&nbsp; At our conference I said, &ldquo;Our industry is not for the faint of heart.&rdquo; Significant challenges present themselves every day, but we can&rsquo;t give up. We may have a lot on our plate this year, but we are prepared to lead the challenge and work alongside our strong and determined industry to advocate for American biodiesel and renewable diesel. Join us in personally participating in these critical efforts and accept the challenge to move America&rsquo;s advanced biofuel forward. Donnell Rehagen CEO National Biodiesel Board

2019/03/NBB-Biodiesel-Donnell-Rehagen_15538672389755_largethumb.jpg

2019/03/NBB-Biodiesel-Donnell-Rehagen_15538672389755_thumb.jpg

2019/03/NBB-Biodiesel-Donnell-Rehagen_15538672389755.jpg

Thank you to all of everyone who helped make our industry a success last year. We may have a lot on our plate this year, but we are prepared to lead the challenge and work alongside all of you to advocate for American biodiesel and renewable diesel.

Thank You, Biodiesel Industry 

IKEA Transport &amp; Logistics Services, CMA CGM, the GoodShipping Program and the Port of Rotterdam are cooperating in a first-of-its-kind partnership to test and scale the use of sustainable marine biofuel beginning March 19 with a landmark bunkering of the biofuel on a CMA CGM container vessel. The fuel has been developed by GoodFuels after undergoing three years of testing with marine engine manufacturers. The biofuel oil is derived from forest residues and waste oil products and delivers 80 to 90 percent well-to-propeller carbon dioxide reduction while eliminating sulfur oxide emissions. The shipping sector must switch to low sulfur fuels by 2020 while facing impending International Maritime Organization greenhouse reduction requirements.&nbsp; Evonik is merging its specialty methacrylate monomers&mdash;the applications monomers product line&mdash;with its current oil additives business to become the new oil additives business line within the resource efficiency segment. Application monomers were formerly part of the methacrylate business of Evonik, which is currently in the process of being sold to U.S.-based private equity firm Advent International. By retaining the specialty methacrylate monomers business within Evonik and integrating it into oil additives, their similar business models with a customer solution-centric approach will allow them to focus on developing and producing specialty and high-performing products and technologies. Shell has launched a pilot program in Hong Kong with Maxim&rsquo;s Group wherein waste oil from Maxim&rsquo;s Group restaurants and bakeries will be collected, converted into biodiesel, and blended with diesel by Shell. Maxim&rsquo;s Group will then use biodiesel to fuel its 100-plus delivery trucks. Maxim&rsquo;s Group is the first restaurant group in Hong Kong to join this program. Shell has recently made biodiesel available at Shell&rsquo;s Tai Po Market station, the third station providing biodiesel, which expanded coverage of the sustainable fuel to encourage adoption among commercial fleet customers. The other two stations providing biodiesel are located at Tsing Yi and Hong Kong International Airport. Mike Devine joined World Energy in September as vice president of sales and business development. Devine previously spent six years with wholesale biodiesel distributor Amerigreen Energy, which closed unceremoniously last year after it and parent company Worley &amp; Obetz filed bankruptcy as a result of the alleged fraudulent activity of CEO Jeffrey Lyons. Devine has known World Energy founder and CEO Gene Gebolys for 15 years. &ldquo;We all share the same vision to be able to offer low-carbon gallons downstream through the last mile of the distribution chain,&rdquo; Devine says. &ldquo;We&rsquo;re building a production platform that&rsquo;s more integrated in the supply chain than just transactionally providing biodiesel to obligated parties.&rdquo; One of Devine&rsquo;s focuses at World Energy is growing downstream discretionary blending of biofuels. &ldquo;Our company&rsquo;s initials are &lsquo;WE,&rsquo; and that&rsquo;s really what our organization feels like,&rdquo; Devine says. &ldquo;Gene has assembled a great collection of talented people whose common goal is not to boost our brand or us, but to act as a trusted partner to help enable downstream markets and end-users enjoy all the opportunities these low-carbon gallons can provide.&rdquo; Prior to Amerigreen, Devine spent three years as petroleum liaison with the National Biodiesel Board working with Paul Nazzaro. Early this year Devine was also elected to the board of directors for the National Biodiesel Foundation. Paraguay President Mario Abdo Ben&iacute;tez and Erasmo Carlos Battistella, president of Brazilian investment holding company ECB Group, met Feb. 25 and favorably discussed ECB Group&rsquo;s Omega Green renewable diesel complex, worth more than $800 million. The Paraguayan plant will be capable of producing 250 MMgy of renewable diesel and biojet fuel. Virtually all production will be destined for export markets such as the U.S. and Europe. The facility will make its fuel from soybean oil extracted with renewable hexane, animal fats and used cooking oil. The hydrogen required will be obtained through electrolysis of water with ThyssenKrupp technology. Crown Iron Works will supply soybean processing design and equipment, including oil extraction and treatment, and Honeywell&rsquo;s UOP will supply a modular hydrotreatment plant. The entire complex will be fueled by renewable energy. ECB Group plans to start full production in 2022. Renewable Energy Group Inc. held an open house March 1 in Seneca, Illinois, to celebrate the start of construction on the company&rsquo;s first diesel fueling station. REG owns and operates a 60 MMgy biodiesel plant in Seneca, just one of more than a dozen REG production facilities. REG&rsquo;s Seneca plant brings in more than 17,000 trucks per year, which have to drive through town to get to the plant. The 35,000-gallon diesel fueling station, which will offer blended REG biodiesel to the public, is expected to open this spring. Targray has opened an EU biodiesel trading desk in Geneva, Switzerland. Part of a broader investment plan to meet demand for low-carbon fuels in the EU, the Geneva trading desk will leverage Targray&rsquo;s global franchise and in-house expertise to create differentiated value for biodiesel consumers throughout Europe. Targray&rsquo;s EU biofuels business is led by biodiesel trader Vincent Cariou. Prior to joining the company in 2019, Cariou worked for nearly 10 years at agricultural commodities company Cargill, helping optimize procurement and logistics for biodiesel, vegetable oil and soybean meal customers in the European Union. European biodiesel producer and waste oil collector Muenzer Bioindustrie GmbH has opened its first biodiesel plant outside of Europe in Navi Mumbai, India. In 2016, the company officially registered its subsidiary, Muenzer Bharat Pvt. Ltd., in Mumbai, India. Muenzer Bharat is certified by the International Sustainability and Carbon Certification system. Construction of the community-scale biodiesel plant in Navi Mumbai began last year, and the official opening of the production facility recently took place. The plant is scaled at 3,000 tons, or more than 900,000 gallons, per year. The company&rsquo;s goal is to run a system like this in every city with more than a million inhabitants. Rock House Advisors, the consulting firm founded by Joe Jobe&mdash;former longtime CEO of the National Biodiesel Board&mdash;is expanding. Mike Marsch has joined Rock House as senior vice president to further strengthen its leadership team. Marsch is a skilled senior management consultant with 25 years of experience in the corporate world. His background includes the electric utility industry, association management, government relations, marketing, conference planning and more. Marsch will help lead an expanded national and international network of strategic partners who serve as Rock House Associates. The company expansion brings with it an expansion of its client base, which includes renewable fuel clients, petroleum refiners, electric utilities, agricultural commodity groups, private equity funds and autonomous technology companies. Crown Iron Works has developed a new process upgrade for biodiesel manufacturers named advanced catalyst reduction and economization (ACRE). ACRE adds a third transesterification reaction step while delivering an energy-efficient design for reduced cooling load and steam use. Multiple ACRE installations have demonstrated a 40-plus percent catalyst reduction and savings of 3 cents per gallon. In addition, ACRE is designed to reduce acid usages, promote energy savings through economization and increase manufacturing uptime. ACRE can be retrofitted into any unmodified Crown plant and may be available for centrifuge operations. Greenfield installations can benefit through improved performance and total cost of ownership. Crown&rsquo;s decanter-based biodiesel program supports a robust operation with proven reliability and increased uptime.

2019/03/CMA-CGM-Ship-GoodShipping_15538677804734.jpg

Center left, Paraguay President Benitez, center right, ECB Group president Battistella

2019/03/ECB_Omega_Green_Paraguai_15538677812722.jpg

2019/03/IMG_1814-Bio_15538677822678.jpg

2019/03/Michael-Devine-Amerigreen_15538677833182.jpg

2019/03/Mike-Marsch_15538677842985.jpg

2019/03/muenzer-india_1553867785255.jpg

2019/03/REG-Seneca-fueling-station_15538677862896.jpg

2019/03/shell-maxim_15538677872611.jpg

2019/03/Targray-head-office_15538677882652.jpg

2019/03/evonik_15538679136449.jpg

Business Briefs

The National Biodiesel Board is rounding out its staff in Washington, D.C., this year. Headquartered in Jefferson City, Missouri, NBB maintains a Washington office for federal affairs and work on regulatory issues surrounding international trade, tax issues and the federal Renewable Fuel Standard. This year two new staff members joined the NBB team, Kate Shenk as director of regulatory affairs and David W. Cobb as director of federal affairs, neither of whom is a stranger to biodiesel. Shenk comes to NBB from the Biotechnology Innovation Organization where she led a regulatory affairs committee and developed analyses and comments on regulatory policies. Cobb recently served as federal affairs director for CHS Inc., a Fortune 100 company and the nation&rsquo;s largest farmer-owned cooperative, where he advocated for the company&rsquo;s legislative and regulatory policy priorities.

2019/03/David-Cobb_1553875871559_largethumb.jpg

2019/03/David-Cobb_1553875871559_thumb.jpg

2019/03/David-Cobb_1553875871559.jpg

2019/03/Kate-Shenk_15538758736368.jpg

The National Biodiesel Board is rounding out its staff in Washington, D.C., this year through the hiring of Kate Shenk as director of regulatory affairs and David Cobb as director of federal affairs. 

2019 Spring Issue

Business Briefs

Business Briefs

Columns

Balancing Act

Eye on the Editor

Thank You, Biodiesel Industry

Featured

Spotlight: Adding Value Across the Board

Where Will All the Feedstock Come From?