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Targeted email fraud known as spear phishing is costing businesses, including those in the biodiesel sector, billions of dollars. Learn what to watch for, and how to avoid falling victim to these scams. 

The Other Unseen Enemy

Most people in the U.S. have probably never heard of cyperus esculentus, but Victor Garlington, managing partner at BioEconomy Solutions, believes it is the next big thing in biomass-based diesel feedstock. The company has grand plans for this obscure crop, including a signed 10-year offtake contract for 120,000 metric tons (36 million gallons) of oil annually with an overseas buyer and, eventually, small-scale renewable diesel production. But to fulfill this, BioEconomy Solutions must educate farmers, get them onboard to grow the crop, build out crush capacity and install a hydrotreating unit. Cyperus esculentus goes by many names&mdash;chufa sedge, nut grass, yellow nutsedge, tiger nutsedge, edible galingale, water grass and earth almond, to name the more popular ones. Unlike many crop-based feedstocks used for biodiesel or renewable diesel production, cyperus esculentus is not an oilseed. Rather, the crop is valued for its edible, oil-rich tubers, sometimes called tiger nuts.
&ldquo;Ninety-nine percent of the population has never heard of it, especially in the venture capital realm,&rdquo; Garlington says. &ldquo;Farmers in the Southeast who farm and hunt turkeys and food nuts, or &lsquo;foodies,&rsquo; are the only people I found with any working knowledge of what I&rsquo;m talking about.&rdquo; He says this is one of the reasons that makes investing in cyperus esculentus so great&mdash;it&rsquo;s an opportunity to get in on the ground level, so to speak. &ldquo;Soy and corn are established markets,&rdquo; Garlington says. &ldquo;This is something no one has looked at [in the U.S.] since the late 1800s or early 1900s as a commercial crop. In other places like Spain or countries in Africa, it&rsquo;s a commodity used as food, or a replacement for milk.&rdquo;
Garlington says BioEconomy Solutions is focusing on cyperus esculentus for a couple of key reasons. One, the tubers contain about 25 percent oil&mdash;a relatively high oil content compared to, for example, soybeans, which typically contain less than 20 percent oil. The second reason involves the type of oil. &ldquo;The cold flow properties are excellent for the EU climate and does not require further additives, which increase final product cost,&rdquo; he says. Furthermore, he says cyperus esculentus can be commercially planted, harvested and processed with existing implements and machinery. &ldquo;No special equipment is needed,&rdquo; Garlington says. &ldquo;We are using readily available equipment in the marketplace currently.&rdquo;
For years, Garlington has been the director of client services for 70centsagallon.com, a provider of small-scale biodiesel processing equipment. When asked why he started this new venture&mdash;BioEconomy Solutions&mdash;he says, &ldquo;Since the early frontier days of biodiesel processing, it&rsquo;s been all about the feedstock. Even in 2006, biodiesel was great until the price of feedstock went up. I said, &lsquo;Wow, why not become a player in the oil business?&rsquo; Not petroleum oil, but the oil that grows on top of the ground vs. oil being pumped from underground. This took us down the rabbit hole of food vs. fuel. We were players in growing alternative mustards on the West Coast, camelina, but then the bottom fell out of the industry and interest went out. Two years ago, we saw the writing on the wall, especially in the EU. We had chance to travel to Turkey and England, and soon I realized everyone outside of the U.S. was far more [worse off] than we are, paying so much more than us for fuel. That drives action. On the West Coast, diesel was $5 a gallon. Again, that drives action. That&rsquo;s what I feel is driving our business, proven by our long-term offtake agreement [with a buyer in the U.K.]. With the pain they&rsquo;re going through in Europe today, and government mandates up from 5 to 7 to 10 percent blends, IMO 2020, the ban on palm oil&mdash;all these things are converging to make a boom for biofuels again. Maybe not so much here in America, but abroad. We&rsquo;re thankful to have the $1 per gallon tax credit again here in the U.S., but there&rsquo;s nowhere near the demand here compared to the EU. Most of the equipment that we at 70centsagallon.com have sold has been somewhere else&mdash;not here.&rdquo;
In February, Carolina Opportunity Funds announced that its first IMPACT Carolina Fund investment&mdash;a qualified opportunity fund (QOF) designed to provide seed and early-stage financing to qualified opportunity zone businesses located in North and South Carolina&mdash;was being provided to BioEconomy Solutions for its planned cyperus esculentus crush facility and subsequent renewable diesel plant in Georgetown, South Carolina. An opportunity zone is a designation created by the Tax Cuts and Jobs Act of 2017 allowing for certain investments in lower income areas to have tax advantages. A QOF is an investment vehicle set up as either a partnership or corporation for investing in eligible property that is located in an opportunity zone and utilizes the investor&rsquo;s gains from a prior investment for funding the QOF. The Opportunity Zone Initiative, included in the 2017 tax reform bill, was proposed by U.S. Sens. Tim Scott, R-South Carolina; Cory Booker, D-New Jersey; and Rep. Ron Kind, D-Wisconsin.
After Carolina Opportunity Funds announced its support for BioEconomy Solutions, Sen. Scott gave the company and Carolina Opportunity Funds a shout-out on Twitter by tweeting: &ldquo;#OpportunityZones doing work in Georgetown &ndash; hundreds of jobs on the way!&rdquo; Hannah Kirby, managing partner of Carolina Opportunity Funds, says, &ldquo;BioEconomy Solutions&rsquo; decision to locate an advanced [renewable diesel] processing plant within an economically disadvantaged opportunity zone represents the spirit of the Opportunity Zone Initiative. The vast majority of opportunity zones within the Carolinas are in rural communities and the BioEconomy Solutions project will provide measurable economic growth to the region. Not only do investments in qualified opportunity zones provide tax incentives, but companies like BioEconomy Solutions are on the cusp of a new wave of agribusiness technologies that will drive the future growth of the industry.&rdquo;
The amount Carolina Opportunity Funds is investing in BioEconomy Solutions is confidential, Garlington says. But it is still raising additional funds with a total goal of $20 million. In return, Carolina Opportunity Funds receives a management fee &ldquo;not unlike a hedge fund,&rdquo; Garlington says. With the investment, Garlington says BioEconomy Solutions will establish grow contracts with area farmers and complete the oil processing plant.
BioEconomy Solutions&rsquo; business plan is laid out in two phases. The first phase is educating farmers and establishing grow contracts, building a large-scale crush facility and supplying oil. &ldquo;Our goal for Phase 1,&rdquo; Garlington says, &ldquo;is to supply our offtake agreement by the fourth quarter [of this year]. In 2021, the plan is to increase our oilseed processing capabilities along with educating farmers on our oilseed crop.&rdquo; While Garlington will not say how many farmers BioEconomy Solutions has contracted now to grow cyperus esculentus, he says the plan is to grow the crop on 27,000 acres in the Carolinas down to Florida. &ldquo;When it&rsquo;s cold in North Carolina, they&rsquo;re harvesting tomatoes in Florida,&rdquo; he says. &ldquo;But the processing plant, where the bulk of the employment is, will be in Georgetown, South Carolina.&rdquo;
Thus far, the company has been crushing tiger nutsedge through toll contracting via mechanical cold-pressing. To fulfill the large offtake contract of 36 million gallons a year, however, with a buyer whose name Garlington will not disclose, construction and completion of a large-scale crush facility must ensue. He says the company anticipates starting construction of the crush plant in the second quarter of this year, adding that it can be completed in as little as 90 days. Garlington says the plant will use Komet Vegetable Oil Expellers manufactured by IBG Monforts. He says while the company is making smaller deliveries of chufa oil in ISO tanks today, he expects to be producing 3 million gallons a month by the end of the year, with high-volume bulk shipment deliveries across the Northern Atlantic Ocean by second quarter 2021.&nbsp;
The second phase of BioEconomy Solutions&rsquo; business plan is to construct and operate a 5 MMgy renewable diesel production facility in Georgetown, South Carolina, near the cyperus esculentus crush facility. Garlington says the company is currently in negotiations with technology providers, but no decisions on renewable diesel process technology have been made yet. &ldquo;We want to add a 5 million-gallon hydrotreating renewable diesel production facility to focus on the marine, rail, and over-the-road diesel markets,&rdquo; he says. &ldquo;We&rsquo;ve been talking to folks in the marine industry, ship owners in Canada and Europe. With IMO 2020, the need for [low-sulfur marine fuel] is tremendous, and they don&rsquo;t know how to fill that gap. Once we get a good baseline proof of concept, and offtakes with those operators, we can expand. We&rsquo;ve got plenty of land in Georgetown, not to mention there&rsquo;s people there from other industries&mdash;the pulp and paper and steel industries&mdash;to employ.&rdquo;&nbsp;
Garlington emphasizes that movement on the renewable diesel production facility won&rsquo;t occur until 2022. &ldquo;What&rsquo;s going on in the next 12 to 18 months,&rdquo; he says, &ldquo;is we&rsquo;re talking with people in Georgetown, training farmers and employees. One of the things that&rsquo;s so important to us is jobs, jobs, jobs. If you look at that region, it&rsquo;s had lots of ups and downs with the local paper and steel mills. There are two military bases, and my partner and I are prior military, so we intend to employ veterans and those who worked in the declining paper and steel industries. We&rsquo;re creating jobs in renewable energy.&rdquo;
Operation of the crush facility alone, along with movement of whole tiger nutsedge in and shipment of oil and meal out, will create 200 jobs. &ldquo;We&rsquo;re not hiring farmers directly, so those 200 jobs are just the people that have to process the oil, move the feedstock, treat it, prepare it for shipment, and get it from point A to point B,&rdquo; he says. &ldquo;Three million gallons a month&mdash;that&rsquo;s a sea of oil, not to mention the meal created. We&rsquo;ll be employing a lot of people to make this happen. We&rsquo;re taking advantage of [the infrastructure that] soy and corn created, for another input.&rdquo;
Jobs, jobs, jobs. &ldquo;That&rsquo;s what it&rsquo;s all about,&rdquo; Garlington says. &ldquo;It&rsquo;s been fantastic working with Carolina Opportunity Funds. It&rsquo;s gotten us noticed by the Republican legislature running the state. It&rsquo;s been wonderful. What I really want to get across is that we are creating 200 full-time jobs in renewable energy through this project, the right way.&rdquo; Author: Ron Kotrba Editor in Chief, Biodiesel Magazine 218-745-8347 rkotrba@bbiinternational.com

Cyperus esculentus, also referred to as tiger nut or earth almond among other names, is a relatively obscure, oil-rich tuber familiar mainly to foodies and turkey hunters in the U.S.

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BioEconomy Solutions is planning to grow cyperus esculentus on 27,000 acres.  

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BioEconomy Solutions plans to create 200 jobs in South Carolina through operation of a new crush facility while commercializing a little-known crop for the biomass-based diesel industry. 

Opportunity Knocking

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Early this year, Crown unveiled its new pretreatment system for renewable diesel, which can double the life of expensive hydrotreater catalysts.

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Technology providers have adapted their pretreatment offerings as the biodiesel industry evolved to rely more on waste feedstocks, and as renewable diesel emerges. 

Joint Evolution

Biodiesel fuel quality information is more accessible than ever thanks to new reports being published from the National Renewable Energy Laboratory. Through funding and support from the National Biodiesel Board, NREL&rsquo;s statistical analysis is based on thousands of data points previously unavailable.
&ldquo;Never before has NREL been able to provide this level of fuel quality information,&rdquo; said Teresa Alleman, senior fuel chemist for NREL. &ldquo;By partnering with NBB&rsquo;s National Biodiesel Accreditation Commission, BQ-9000, we now have a simpler, more efficient way to collect, analyze and determine the quality of biodiesel. These reports will act as a recurring insight into biodiesel fuel quality each year.&rdquo;
The reports are comprised of data gathered from U.S. and Canadian BQ-9000 producer members. The analysis from both the 2017 and 2018 reports show that the vast majority of biodiesel readily exceeded the performance specification limits in ASTM D6751, the standard for biodiesel.
&ldquo;These reports show what we&rsquo;ve been saying for years,&rdquo; said Scott Fenwick, NBB technical director. &ldquo;Biodiesel fuel is of the absolute highest quality, and these reports prove it. Having this data every year will go a long way in demonstrating to OEMs and regulatory agencies that biodiesel should be the fuel of choice for any diesel engine.&rdquo;
As part of the data-gathering process (and under BQ-9000 requirements), biodiesel producers have their own B100 fuel analyzed against the full specifications at the point of production, then provide the NBAC with the resulting data. NBAC randomizes and anonymizes the results and provides the final version to NREL for statistical analysis.
BQ-9000 is a voluntary program for the accreditation of producers, marketers, laboratories and retailers of biodiesel fuel. It is a unique combination of ASTM D6751 and a quality systems program that includes storage, sampling, testing, blending, shipping, distribution, and fuel management practices. To receive accreditation, companies must pass a rigorous review and inspection of their quality management processes by an independent auditor while participating in annual audits and meeting the additional requirements under the program.

Biodiesel Fuel Quality More Accessible Than Ever 

The National Biodiesel Board&rsquo;s annual awards recognize a diverse group of individuals and organizations making significant contributions to biodiesel. From long-time champions to present-day breakthroughs, the commercial biodiesel industry wouldn&rsquo;t be where it is today without these individuals and organizations.
NBB recognized the 2020 &ldquo;Eye on Biodiesel&rdquo; award winners throughout the National Biodiesel Conference &amp; Expo:
&bull; Northeast Heating Coalition&mdash;Industry Partnership Award.
&bull; Wallace E. Tyner, Agricultural Economist, Purdue University&mdash;Pioneer Award.
&bull; Mike Erker, United Soybean Board, Director of Bio-Based Products&mdash;Impact Award.
&bull;&nbsp; Ruan Transportation Management Systems&mdash;Initiative Award.
&bull; Victor Bohuslavsky, Executive Director, Nebraska Soybean Board&mdash;Inspiration Award.
To find out more about the outstanding 2020 winners, visit blog.biodieselconference.org or check out the recent press releases on nbb.org.

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Eye on Biodiesel Winners Showcase an Image of Success

It&rsquo;s already been a busy 2020 for the National Biodiesel Board&mdash;a time of travel, relationship building, and extending the conversation about biodiesel and renewable diesel to a wide array of audiences across the country. Trade shows and conferences are in full swing, with industry professionals pouring in to talk about what the future has in store. With all the industry events taking place nationwide, members can be sure trade association staff is on the move representing biodiesel, one conversation at a time.&nbsp;
Through sponsorships, expo booths, and a variety of speaking engagements, the National Biodiesel Board has ensured that biodiesel messages get heard by key audiences. This spring, key leaders in the industry represented biodiesel at United Soybean Board meetings, Commodity Classic, Climate Leadership Conference, the National Association of Fleet Administrators Institute &amp; Expo, the National Association of Farm Broadcasters Washington Watch, Advanced Bioeconomy Leadership Conference, Advancing Renewables in the Midwest, the Advanced Clean Transportation Expo, and much more.
&ldquo;Trade association staffers have their boots on the ground at these meetings providing industry updates and showcasing NBB&rsquo;s new vision with the goal to reach 6 billion gallons of biodiesel and renewable diesel by 2030,&rdquo; said NBB CEO Donnell Rehagen. &ldquo;The NBB executive team is committed to working closely with all members and partners to make this goal a reality as biodiesel continues to grow.&rdquo;
With these meaningful face-to-face interactions, NBB is showing how biodiesel is providing benefits and highlighting just how biodiesel is Better. Cleaner. Now!

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Creating Connections and Conversations Coast to Coast

The 2020 Vehicle Branding Program kicked-off on National Biodiesel Day March 18, with the theme &ldquo;Biodiesel: Better, Cleaner, Now!&rdquo; The national holiday celebrates the anniversary of Rudolf Diesel&rsquo;s birthday.
&ldquo;When Rudolf invented the diesel engine in the 1890s, it was designed to run on peanut oil, and he envisioned the prominent role plant oils could play in fueling vehicles of the future,&rdquo; said Kaleb Little, National Biodiesel Board director of communications. &ldquo;Our industry has come a long way since then and our branding program helps biodiesel users across the country share their stories of sustainability and emissions reductions. Our new tagline, &lsquo;Biodiesel: Better. Cleaner. Now!&rsquo; tells the biodiesel story simply. Biodiesel is better and cleaner than petroleum diesel&mdash;with proven environmental, health and economic benefits&mdash;and is ready to use now, unlike some other alternative fuel technologies that require massive infrastructure or retrofit investments.&rdquo;
NBB encourages biodiesel users to promote their use of biodiesel and share its benefits by applying for matching funds to be used for vehicle branding initiatives that may include wraps, stickers or other innovative efforts. To apply, reach out to Samantha Turner, NBB communications manager, at sturner@biodiesel.org.
In 2019, NBB provided matching funds to six biodiesel users. Roslin Enterprises branded 10 tanker trailers with the Hero BX and NBB logos. Its trucks travel a 1,500-mile radius in Canada and the U.S. collecting feedstocks. These feedstocks are delivered to Hero BX where they&rsquo;re converted into biodiesel. Cape Cod Biofuels, a Massachusetts-based biodiesel producer, wrapped an oil tanker used to transport biodiesel and Bioheat across much of New England from Maine to Connecticut. The City of Moline, Illinois, branded two refuse haulers that travel throughout the Quad-Cities metropolitan area. The city has used B20 biodiesel in more than 80 diesel vehicles and pieces of equipment since 2005. G&amp;D Integrated, a specialized provider of transportation and logistics services based in Morton, Illinois, and an inaugural member of the Illinois B20 Club, wrapped two 53-foot box trailers. G&amp;D operates more than 400 vehicles on blends up to B20 year-round. CityLink, Greater Peoria Mass Transit District wrapped one transit and two paratransit buses that operate in Peoria and Tazewell Counties. The agency has used B20 in more than 50 transit buses and 20 paratransit buses year-round since 2009. Al Warren Oil Co. wrapped a box truck that makes deliveries to customers throughout the greater Chicagoland area and northwest Indiana. Al Warren provides biodiesel blends to its diverse customer base and powers its Illinois-based fleet of more than 70 diesel vehicles on blends up to B20.

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Biodiesel Day Marks Launch of 2020 Vehicle Branding Program

During the closing days of December, the National Biodiesel Board achieved a long-sought policy victory&mdash;a multiyear extension of the biodiesel tax incentive. The industry began the new year with a sense of certainty and a focus on resolving issues with the Renewable Fuel Standard and small refinery exemptions (SREs).
&ldquo;Renewing the tax incentive was a top priority throughout 2019,&rdquo; said Kurt Kovarik, NBB vice president of federal affairs. &ldquo;NBB is grateful to the unified front and collective voice of the industry that helped make this continued growth possible.&rdquo;
NBB united producers, heating oil companies and other associations to emphasize the urgent need for a multiyear extension. NBB organized multiple letters, press events and Capitol Hill visits to highlight the issue.
The industry&rsquo;s leading champion, Sen. Chuck Grassley, R-Iowa, insisted that Congress&rsquo; end-of-year spending deal renew the tax incentive. On the House side, Rep. Abby Finkenauer, D-Iowa, led a group of congressmembers to keep the credit renewal front and center for her party&rsquo;s leaders, Speaker Nancy Pelosi, D-California, and Rep. Richard Neal, D-Massachusetts, House ways and means committee chairman. And Sen. Joni Ernst, R-Iowa, ensured that the White House understood the importance of including the credit in the deal.
&ldquo;On behalf of NBB members, I&rsquo;d like to thank Sen. Grassley and Rep. Finkenauer as well as many other senators and representatives from both sides of the aisle for their strong and consistent championship of our industry,&rdquo; Kovarik said. NBB is also urging producers to express their thanks by inviting representatives and senators to visit and tour production plants to see firsthand the success of the policy.
The tax credit is now in place through 2022. The IRS has issued guidance and begun to process claims for the credit for 2018 and 2019, setting an Aug. 11 deadline for submitting those claims.
NBB has also secured some policy advances in other areas. Since winning a trade case in 2017, NBB has fought to maintain antidumping and countervailing duty rates on Argentine and Indonesian biodiesel imports. The duties stopped those countries&rsquo; unfair trade practices that harmed U.S. producers. While the U.S. Department of Commerce and U.S. Court of International Trade have been reviewing the duty rates, they have kept them in place. The commerce department has been open to evidence from NBB&rsquo;s Fair Trade Coalition that the rates are still important to prevent a resumption of unfair trade.
More recently, USDA and Agriculture Secretary Sonny Perdue followed through on a promise to support infrastructure projects that facilitate higher biofuels blends. This promise was part of the White House&rsquo;s October deal to mitigate the damage done to biofuel producers and the RFS from SREs. NBB worked to ensure that biodiesel was included in that deal. USDA launched an Ag Innovation Agenda and a Higher Blends Infrastructure Incentive Program that will help boost B20 and higher blends. Starting in May, the HBIIP will make available $100 million in matching grants for infrastructure projects; at least $14 million is intended specifically for biodiesel.
NBB continues to coordinate with other biofuel associations to advocate for an end to EPA&rsquo;s abuse of SREs. The industry&rsquo;s primary goal for 2020 is to convince EPA to reverse the damage to the program and resume growth in the volumes for biomass-based diesel and advanced biofuels.

Policy Stability for the Biodiesel Industry

Thank you. Thank you to the biodiesel leaders, champions, advocates and many others who helped our industry find success in 2019. It was a tough year, but we finished very strong. The U.S. biodiesel industry can proudly look back on a year in which we made significant progress toward a more predictable industry.
In January, we had the opportunity to celebrate this success at our annual National Biodiesel Conference &amp; Expo in Tampa, Florida. Our annual conference hosted more than 700 biodiesel producers, distributors, retailers and other industry advocates from across the nation to set their sights on a future for biodiesel that is better, cleaner, and here now! During the conference, the National Biodiesel Board celebrated the many achievements of 2019 and shared our new ambitious vision for the industry, which states:
Biodiesel, renewable diesel, and renewable jet fuel will be recognized as mainstream low-carbon fuel options with superior performance and emission characteristics. In on road, off road, air transportation, electricity generation, and home heating applications, use will exceed 6 billion gallons by 2030, eliminating over 35 million metric tons of CO2 equivalent greenhouse gas emissions annually. With advancements in feedstock, use will reach 15 billion gallons by 2050.
Ambitious industries need ambitious goals. And, in our case, our country needs us to be this ambitious. I don&rsquo;t want to suggest this will be a cake walk. I am extremely bullish on the future of the biodiesel and renewable diesel industry. We will face challenges to reach these goals moving forward &hellip; we know that and accept the challenge.
Aside from sharing our bold vision, to keep eyes on biodiesel our association put together an enticing schedule with engaging, thought-provoking speakers to offer vital information on the latest in the industry.
Here were some of the key takeaways. The industry took pause to applaud the crowning achievement last year&mdash;reinstatement of the biodiesel tax credit, which provided much-needed retroactivity for 2018 and 2019 and a forward-looking credit through 2022. A new tag line&mdash;Biodiesel: Better. Cleaner. Now!&mdash;was showcased to accompany the long-used biodiesel logo that succinctly emphasizes the benefits of the fuel. New research revealed diesel powertrains are expected to remain a dominant force for years to come, and the use of biodiesel blends in diesel equipment continues to be a preferred choice for fleets looking to improve the sustainability of their operations. The Next Generation Scientists for Biodiesel program extended scholarships to 15 university-level science majors interested in learning about all aspects of the biodiesel industry to attend the conference. Reports from the National Renewable Energy Laboratory proved that biodiesel is of the highest quality. Also, now with our new partnership with NREL, biodiesel fuel quality information is more accessible than ever. NBB recognized five visionaries with the 2020 Eye on Biodiesel awards as ones to watch in the biodiesel industry.
Conference goers heard from Bioheat heavy hitters that the oilheat industry is a 7 billion-gallon industry with increasing demand to reduce carbon through this viable market. Lastly, the industry shared its plans to fight for a stronger, more reliable Renewable Fuel Standard. In 2020, you will see our organization aggressively claim our space in the RFS and advocate at all levels of the government for rightful recognition of biomass-based diesel in the RFS.
We may have a lot on our plate for 2020, 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 and grow America&rsquo;s advanced biofuel. Donnell Rehagen CEO National Biodiesel Board

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In his column from the Spring 2020 print issue of Biodiesel Magazine, National Biodiesel Board CEO Donnell Rehagen discusses policy achievements of 2019, highlights from the 2020 National Biodiesel Conference & Expo, and challenges that lie ahead. 

Our Vision for 2020 and Beyond

The Greater Chicago I-55 Truck Plaza was awarded Service Station of the Year by the Chicago Area Clean Cities Coalition during its annual December meeting. The station was one of the first family-owned and operated independent truck plazas in the U.S. to start selling B11 in 2006. In 2013, Robin Puthusseril, vice president and co-owner, and her father John Puthusseril, invested more than half a million dollars to build infrastructure to begin blending and selling higher blends of premium biodiesel to customers. Today, biodiesel is blended and sold year-round at every diesel dispenser, marketed as premium diesel. The Greater Chicago I-55 Truck Plaza also offers fleet customers bulk B100 biodiesel for purchase. Robin has testified before Congress to explain the benefits of biodiesel and why the biodiesel tax credit is so important.
Iowa Secretary of Agriculture Mike Naig presented Diamond Oil Company Inc. of Des Moines with the 2020 Biodiesel Marketing Award at the FUELIowa annual meeting Jan. 14. The award was created by FUELIowa in partnership with the Iowa Department of Agriculture and Land Stewardship to recognize fuel marketers that have gone above and beyond in their efforts to promote and sell biodiesel. Diamond Oil has made a commitment to supplying biodiesel to its diverse customer base and has leveraged the Iowa Renewable Fuel Infrastructure Grant Program to support its significant private investments into expanding infrastructure, including installation of biodiesel terminals in Des Moines and State Center. The company has the ability to provide custom blending options.
After more than three years, $6 million of investment and thousands of hours of management time, North Dakota Soybean Processors has abandoned its efforts to build a large-scale soybean crushing facility at the Spiritwood Energy Park in Spiritwood, North Dakota. Site and plant engineering were completed, construction contract bids were solicited, an air permit was in hand, and financing was in place when the Spiritwood Energy Park Association board voted in July to terminate NDSP&rsquo;s site contract. NDSP then went to court to try and build at that site. In early February, NDSP agreed with SEPA to dismiss its lawsuit with prejudice, meaning its bid to build a plant at the Spiritwood site was over. NDSP continues to search for a new site to build its plant to crush 42 million bushels of local soybeans a year. NDSP is currently a wholly owned subsidiary of Minnesota Soybean Processors. Phillips 66 and Renewable Energy Group Inc. announced Jan. 21 cancelation of their joint effort to construct a large-scale renewable diesel plant in Ferndale, Washington. The project has been canceled due to permitting delays and uncertainties. Originally announced in fall 2018, the 250 MMgy project would have resulted in the largest renewable diesel refinery on the West Coast. &ldquo;While we believe the Ferndale refinery is a strategic fit for this renewable diesel project, permitting uncertainties were leading to delays and higher costs,&rdquo; said Robert Herman, Phillips 66 executive vice president of refining. CJ Warner, CEO of REG, said, &ldquo;Although we are disappointed in this result, REG is undeterred and continues to develop numerous opportunities to grow our renewable diesel production.&rdquo; Joe Jobe, president and founder of Rock House Advisors, and Peter Behrle, managing director of PB Renewables LLC, are working with a $5.5 billion financial institution to offer biodiesel tax credit (BTC) bridge loan funding for biodiesel producers. According to Jobe and Behrle, the bank is willing to rapidly underwrite and approve BTC-backed bridge loans to biodiesel producers while the producers await the return of their 2018 and 2019 BTC refunds from the IRS. Jobe is former CEO of the National Biodiesel Board and founded Rock House Advisors in 2016. Behrle founded PB Renewables in 2006 as an advisory and funding source for renewable fuel producers. &ldquo;2018 and 2019 especially were very difficult years,&rdquo; Jobe said. &ldquo;I&rsquo;m glad to be able to help [producers] create some expedited liquidity with this bridge funding to get the industry back on its feet as quickly as possible.&rdquo; Maire Tecnimont Group&rsquo;s NextChem of Italy and Kansas-based Saola Energy have formed a new partnership to license renewable diesel technology to the international market. NextChem will be the licensor of the combined technology and provide clients with EPC services and training. Saola Energy&rsquo;s patented technology consists of a hydrotreatment step followed by isomerization to produce renewable diesel fuel from fats, oils and greases. The technology can process a wide range of feedstocks at industrial scale. In addition, the process has a &ldquo;modularized approach&rdquo; and is possible for capacities as low as 10 MMgy, &ldquo;making it ideal for both smaller bolt-on facilities with access to a limited supply of captive feedstock and larger standalone plants that can aggregate larger amounts of raw materials,&rdquo; the company stated. Following the success of its first Biodiesel Conversion Centre in St. Lucia, Sandals Resorts International is exploring ways to incorporate biodiesel production and use throughout its resorts across the region. The company&rsquo;s Dive Centre at Pointe Seraphine has been converting used vegetable oil from kitchens at its three resorts on the island into biodiesel for use in marine vessels. Initiated as a pilot project in 2015 by Maurice Moss, former marine boat maintenance manager who built the processor from spare parts, the facility has since been upgraded. It is now managed by Quentin Landman, who holds Moss&rsquo; former post, and technician Sammy Hillman operates the plant, which produces 320 gallons per month and fuels four dive boats and a van. The blended fuel saves the resort 90 cents per liter of diesel. Glycerin is made into soap for kitchen use or to wash marine vessels. Sandals plans to replicate this model on all islands where it and Beaches operate.
Archer Daniels Midland Co. is outfitting five Class 8 trucks with Optimus Technologies&rsquo; Vector System, an innovative technology that enables diesel engines to run almost entirely on sustainable biodiesel in a wide range of climates. The trucks will run on B100 produced at ADM&rsquo;s Mexico, Missouri, plant and be used in daily fleet operations for one year, with each vehicle anticipated to travel up to 180,000 miles. Advanced monitoring protocols will compare the performance and results of the new technology with a control group of five trucks operating on conventional diesel. In addition to ADM and Optimus, this project is supported by the American Lung Association, the National Biodiesel Board, the Illinois Soybean Association, and the Missouri Soybean Merchandising Council.
S&ouml;dra has built the world&rsquo;s first plant for commercial biomethanol, a sustainable fuel from forest biomass, at its pulp mill in M&ouml;nster&aring;s, Sweden. An initial pilot delivery in late February was expected to go to Denmark-based Emmelev A/S, a large-scale biodiesel producer that will use biomethanol in its fuel production. S&ouml;dra decided to invest in a biomethanol production facility in 2017. Morten Simonsen, co-owner of Emmelev A/S, said, &ldquo;Our biodiesel will be 100 percent renewable and based on locally sourced raw materials. Biodiesel produced from Danish canola and Swedish forests can secure fuel supplies for heavy road transport, as well as buses and construction machinery. This will be crucial for a transformation of the energy sector.&rdquo; Renewable energy consulting firm EcoEngineers has opened a new office in California to capitalize on the need for compliance, auditing and regulatory services in the western carbon markets, where growth in low-carbon fuels such as biodiesel, renewable diesel and biogas is booming. The California Low Carbon Fuel Standard and other climate-driven programs present opportunities for EcoEngineers to expand its services to the West Coast. To help lead the effort, EcoEngineers has hired Roxby Hartley as a senior regulatory consultant. Hartley spent six years as the director of research and development and more than two years as the director of operations at Agron Bioenergy in Watsonville, California, a biodiesel production firm acquired by Western Iowa Energy in late 2017. Hartley will also assume the role of biodiesel line of business manager for EcoEngineers. The Missouri Soybean Merchandising Council held a grand opening March 5 for its new Center for Soybean Innovation, which stands to connect developments in soybean innovation with farmers, industry partners and the community. The complex brings together the Missouri Soybean Association and Merchandising Council, Biodiesel Coalition of Missouri, Foundation for Soy Innovation, as well as the administrative functions for farmer-owned biodiesel plants, Missouri Farmers Care and the Ag Education on the Move program. The facility, which serves as a hub for business development and incubation, showcases soy-based building materials and demonstrates new uses for soybeans, from soy-based counter tops, flooring and insulation to turf, asphalt sealant and a biodiesel-fueled heating system. Construction began July 2018. Renewable diesel producer Neste Corp. has agreed to acquire 100 percent of Mahoney Environmental, a collector and recycler of used cooking oil (UCO) in the U.S., and its affiliated entities. The transaction is subject to the fulfillment of customary closing conditions and regulatory approval. Peter Vanacker, president and CEO of Neste, said the move is part of executing Neste&rsquo;s growth strategy and the acquisition will provide access to a substantial volume of UCO as well as a platform to grow its raw material supply chain in North America. Neste operates biorefineries in Singapore, the Netherlands and Finland. Neste&rsquo;s Singapore refinery is undergoing a $1.54 billion expansion. Mahoney Environmental&rsquo;s service includes cooking oil equipment installation and design, fresh oil delivery and grease trap cleaning.

Saola Energy built East Kansas Agri-Energyâ€™s renewable diesel facility in Garnett, Kansas.

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Naig, center, with Greg Chance, left, and Jim Martin, Diamond Oil  

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Business Briefs from the Spring 2020 print edition of Biodiesel Magazine

Business Briefs

In March, as I wrapped up the contents for this issue after interviewing sources over the past few months for articles in this edition, the coronavirus pandemic changed all our lives in a matter of weeks. I was in North Carolina mid-March helping my parents after my stepdad had major surgery. Thankfully, he is recovering well and is now out of the hospital, but during those nine days life in America changed, and we witnessed it hour by hour on the news, through hospital visitation policy, and just trying to buy items at the store. It was unsettling being away from my home in Minnesota during all of this, especially knowing I had to be on a plane to get back there. But with family was where I needed to be, and I wouldn&rsquo;t have changed that for anything.
As we all adjust to a new normal&mdash;for how long that will be no one really knows&mdash;the events of the day may have effects felt for years to come. But the short-term effects are unnerving and anxiety-producing: plunging stock markets; skyrocketing unemployment; shelter-in-place requirements; an oil feud between Russia and OPEC coupled with reduced demand for liquid fuels, sending crude oil and refined petroleum product prices on a downward spiral; healthcare systems on the brink of overload; and existential concerns about our own and our loved ones&rsquo; health. Questions flood the mind, ones as important as whether my elderly parents will get infected and, if they do, will they survive, to the ridiculousness of wondering whether I will be able to buy more toilet paper when the need arises.
I hope each and every one my friends, acquaintances, colleagues and associates in this important, top-notch energy sector are doing as well as they can, and I wish safety, good health and peace of mind upon all of you during this unprecedented time. The most important thing is our health and well-being. If we practice physical distancing and follow guidelines from the authorities, as tough as this might be, we can sacrifice a little time, short-term inconvenience and a slow economy for our long-term health, prosperity and security.
How all this shakes out will be known soon enough. But with retroactive tax credit refunds&nbsp; and government assistance from the $2 trillion stimulus package signed into law at press time, I look forward to a speedy industry recovery so you all can do what you do best&mdash;crank out billions of high-quality gallons to help clean the air, curb climate change and keep local communities employed, engaged and inspired. This industry has seen tough times before, some could argue there&rsquo;s been more bad times than good, and the resilience of biodiesel producers is unmatched.
Perhaps this is politically insensitive for me to say, but with all the biodiesel sector has faced over the years&mdash;incessant attacks from Big Oil, inconsistent government support, the financial crisis of 2008 and a prolonged recession, a seriously delayed implementation of RFS, RIN and tax fraud, overcoming crippling fuel quality issues, multifaceted trade wars, food vs. fuel, and attacks from misguided environmentalists questioning the sustainability and carbon intensity of your product&mdash;it&rsquo;s going to take a heck of a lot more than a viral pandemic, slow economy and low oil prices to keep you down.
I encourage you, whether we know each other or not, to drop me a line or send me an email just to say &ldquo;hi,&rdquo; or to let me know how you&rsquo;re doing through this. I truly want to hear from my biodiesel friends, now more than ever. Until next time, be safe.
Author:&nbsp;Ron Kotrba Editor in Chief,&nbsp;Biodiesel Magazine 218-745-8347 rkotrba@bbiinternational.com

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Biodiesel Magazine's editor in chief Ron Kotrba discusses in his editor's note how life changed for us all in a matter of weeks due to the coronavirus pandemic as he worked to complete the contents of the Spring 2020 print issue. 

2020 Spring Issue

Business Briefs

Business Briefs

Columns

Our Vision for 2020 and Beyond

A New Normal

Featured

The Other Unseen Enemy

Opportunity Knocking

Joint Evolution