One of the main goals of October's Biofuels Workshop and Trade Show: Eastern Region, held in Atlanta, Ga., was to determine what it is going to take to get the biofuels industry moving in the Eastern United States. The event provided the ideal platform to discuss boosting biofuels use, production and acceptance in the East.
 
 To address this, workshop participants broke into groups to discuss the opportunities and barriers facing the biofuels industry in the Eastern United States. These talks included discussions of how it may be possible to regionally coordinate incentives and policy for greater effectiveness. Later, representatives from these discussion groups presented summaries and recommendations to a panel comprised of representatives of policy-influencing organizations, who were given the opportunity to respond. A brief summary of the discussion follows:
 
 If all agreed upon one thing, it was that education is the key-and that education needs to come from objective sources. "Education is the key for policy-makers that have interests in energy," said Kathy Baskin, managing director of the Southern States Energy Board. "That is a strategy you need to build if you are looking for legislation. Legislation is not the only answer, but it certainly does play an important role."
 
 Rick Handley, director of Regional Energy Programs for the Coalition of Northeastern Governors Policy Research Center, said that education doesn't only need to flow toward policy-makers or consumers; it also needs to go to the industry itself. The existing network of groups not only gives information to policy-makers, but also notifies constituents of the policy-makers concerns. "We need to position ourselves between the people who are developing biofuels plants and the policy-makers," Handley said. "The reason for that is to facilitate communications between the two groups. Our role is also to educate the ethanol and biodiesel industry that there are issues the state is still concerned about."
 
 Policy-makers need to consider renewable fuels as part of the Northeast's regional energy security, said Scott Welsh, project manager for the proposed Penn-Mar Ethanol facility. This helps replace the driver of helping the farmer, which isn't as strong in the Northeast as it is in the Midwest.
 

 Sumesh Arora of the Mississippi Technology Alliance said there needs to be encouragement of alternative feedstocks. "We need to think outside the box and look at multiple-use crops that can be used both for food and fuel," he said.
 
 Speakers said it's clear that policy-makers are foremost interested in economic benefits and jobs. In order to take advantage of that, Russ Montgomery, president of Regional Economic Development District Initiatives, suggested approaching policy-makers about the benefits of the biofuels industry through wide-ranging coalitions and partnerships. 
 
 Montgomery also said that capitalizing on nontraditional partnerships may help land financing for biodiesel projects.
 Phil Badger, president of General Bioenergy Inc., suggested that policy-makers should focus more attention on commercializing new technology rather than promoting more research. He added that financial institutions may not consider nontraditional feedstocks as commodities, which could create problems in financing projects. Most participants suggested that policy-makers should help the push for developing nontraditional feedstocks.
 
 Gene Quick of the Southern Alliance for the Utilization of Biomass Resources said a political champion is needed to fight for the biofuels cause. "You need someone who knows something about biofuels and is willing to do something about it," Quick said. He also said that individual states can be more effective in the short term in making positive changes for the industry, something with which Badger agreed.
 
 "We need more long-term thinking in government and industry, and the programs that match that," Badger said.

Biofuels Workshop and Trade Show jump starts Eastern industry

Biodiesel and ethanol shared the spotlight at the 2005 Canadian Renewable Fuels Summit (CRFS) on Dec. 13-15 in Toronto, where nearly 400 gathered for topical presentations, lively discussions and unique opportunities to network with clients and colleagues north of the border.
 
 On the first day of the summit, National Biodiesel Board (NBB) CEO Joe Jobe was among the speakers who addressed a mostly Canadian crowd at the historic Fairmont Royal York Hotel. Highlighting NBB priorities affecting the Canadian biodiesel industry, Jobe said the association is focused on establishing unity among feedstock groups in North America and working closely with the Canadian Renewable Fuels Association (CRFA) on mutual industry objectives. He also discussed the U.S. industry's landmark policy achievements and ensuing production capacity build-out in 2005. "For us, agriculture has been a primary driver …," Jobe said, adding later that the environmental objectives of the Kyoto Protocol-and not necessarily agriculture and energy security-are driving biodiesel and ethanol developments in Canada. "Someone recently said this industry is all about the 'green' in Canada. It took me a second to realize it wasn't money this person was referring to," Jobe quipped. "The money here isn't green anyway. … The 'green' is the environment." 
 
 The U.S. biodiesel industry sold approximately 75 MMgy of biodiesel into the market in 2005-three times what it tallied in 2004-and there's more than half a billion gallons of production capacity on the drawing board, Jobe told the CRFS audience. In addition, imported biodiesel and so-called "agri-biodiesel" is eligible for the U.S. biodiesel excise tax credit (see "The Port of Pandora," page 40), and biodiesel originating in Ecuador and Canada did enter the United States in 2005. "We have some import/export issues to talk about," Jobe mentioned casually, suggesting that the NBB and CRFA create a joint task force to continue talking about trade issues. Later, during a Q&A session with the audience, Jobe suggested the availability of biodiesel feedstocks may be a factor that someday hinders the expansion of the U.S. biodiesel industry. "We could eventually be looking at a situation where [seed crops] from Canada and other places [are required]," he said. 
 

 With cold flow issues being a major challenge for biodiesel in Canada, the establishment of stringent fuel quality standards is a crucial industry objective there. Jobe said the NBB's own program, BQ-9000, has been adopted by the CRFA. "In some ways, [the Canadian biodiesel industry] has embraced it more enthusiastically than the U.S. industry has," he said. 
 
 In addition to plenary session discussions related to biodiesel policy and project financing, the CRFS included biodiesel panel discussions on emerging technologies, fleet use and feedstock selection. Next year's CRFS will be held in Calgary, Alberta. 
 -Staff Report

NBB leader speaks at Canadian Renewable Fuels Summit

The National Biodiesel Board (NBB) is feedstock-neutral and should be commended for staying cool in the face of what's become a very hot issue for U.S. farmers, biodiesel producers and federal lawmakers. That is, the controversy over the federal excise tax credit being made available to imported biodiesel derived from palm oil, such as that originating in Malaysia and Africa. The issue has been brewing, albeit on the back burner, since the American JOBS Creation Act of 2004 passed, establishing the federal excise tax credit for biodiesel and what became known as "agri-biodiesel"-the sort derived from virgin oils and fats. 
 
 In December 2004, the Internal Revenue Service (IRS) issued a preliminary tax credit guidance document. Later, after the energy bill extended the tax credit through 2008, the IRS issued a modified guidance document that, while still not the agency's final rulemaking on the issue, amended and clarified several specific issues. In addition to several helpful clarifications, the IRS interpreted-some say wrongfully so-that palm oil and fish oil should be included as agri-biodiesel feedstocks eligible for the full 1-cent-per-percentage-point tax credit, as opposed to the half-cent tax credit. 
 
 Predicting what might come next, the American Soybean Association (ASA), with farm-state politicians on its side, started to vent. One U.S. representative called the IRS interpretation a "loophole" that would cost American taxpayers millions and imperil the budding biodiesel industry by flooding the U.S. market with subsidized foreign biodiesel. As outlined in our page 40 feature, "The Port of Pandora," the imports have begun. 
 
 A company called EarthFirst Americas imported a small amount of palm-based biodiesel in early November and says it wants to import as much as 100 million gallons by 2007. This brazen move, although above-board and technically permissible, has the ASA "outraged" and pushing for a tariff that would offset the tax credit. The NBB is biting its lip on the issue, but, like the ASA, adamantly believes the JOBS bill included a "specific list" of feedstocks that did not-and still does not-include palm oil. "The only position we have taken on the issue is to identify what is biodiesel and what is agri-biodiesel … and we argue that agri-biodiesel clearly does not include biodiesel made from palm oil. … However, the IRS didn't see it that way," NBB CEO Joe Jobe said at a recent biofuels conference in Toronto. 
 
 Referring to the legitimacy of the importer's claims, Jobe said, "Well, I don't think it's time to hit the alarm bell just yet."

 
 That's probably good advice, but if biodiesel made from palm oil does flood the U.S. market, some say there could be ugly consequences. First, biodiesel made from palm oil has a high cloud point, which severely limits its use in many parts of the country. More importantly, though, are the environmental impacts of producing palm oil. A recent report from Friends of the Earth states that the development of palm oil plantations has been responsible for 87 percent of deforestation in Malaysia. In this and other parts of the world, rainforests-not existing cropland-are being converted to palm plantations, irrevocably destroying ecosystems and putting thousands of plant and animal species, as well as indigenous peoples, at risk. 
 If for no other reason than this, the IRS or Congress itself should reconsider the encouragement of palm oil-based biodiesel production and use.

It's reasonable to question tax credit for palm-oil-based biodiesel

Editor's Note

Maine fuel distributor Frontier Energy is on track to build a new biodiesel distribution center in South Portland near the state's largest fuel markets, Frontier Energy's Joel Glatz said. In partnership with the state of Maine, Frontier Energy was approved for a $75,000 U.S. DOE grant to help build the facility, which will be adjacent to two major terminals, Glatz told Biodiesel Magazine. Construction is set to begin in summer 2006.

Maine to get new biodiesel distribution center

A biodiesel project in southwest Washington state, called NorthWest Biofuels, is one step closer to breaking ground. According to a spokeswoman from Chemical Consortium Holdings, a company financing a major part of the project's equity, Lurgi  SI has completed its pre-engineering of the plant. The plant is being designed to produce 30 MMgy, and construction is scheduled to start in spring 2006.

NorthWest Biofuels pre-engineering complete

A feasibility study for San Juan Biodiesel Co-op (SJBC) is complete, and the results are favorable for the building of a new biodiesel plant in Dove Creek, Colo., said Greg Vlaming, president of the SJBC board. The board is meeting again in early January to discuss under what organizational structure the plant should operate and its capacity-either 2.5 MMgy or 5 MMgy. The capital campaign will begin in January, and construction is targeted to begin this summer, Vlaming told Biodiesel Magazine.

San Juan feasibility study complete

In November, the California Energy Commission released a report titled "2005 Integrated Energy Policy Report" which stated the state should require a minimum renewable content for gasoline and a non-petroleum standard for all diesel sold in the state. The report suggests that a minimum of 5 percent nonpetroleum content, including biodiesel, be blended with all petroleum diesel. Three hundred million gallons of biodiesel would be needed to meet such a requirement.

Report calls for renewable fuel requirement

In light of various European media reports claiming the German government intends to raise taxes on biodiesel, Bunge Europe is still moving ahead with plans to increase crush capacity at its Mannheim, Germany, facility. The company will adapt the facility's existing soybean crushing line to process both soybeans and rapeseed, as well as increase the total capacity of the facility to approximately 1.3 million tons, according to Bunge. The rapeseed crushing capacity is expected to come on line in spring 2006.

Bunge to increase German crush capacity

The Philippines is nearing completion of its fourth biodiesel facility, which is expected to double the nation's production of coconut methyl ester, according to Yvonne Agustin, executive director of the United Coconut Association of the Philippines. Specialty chemical company Chemrez Inc., which already operates one  of the current biodiesel plants, is expected to begin production at its second facility in March. Upon completion, total annual production will be approximately 120 million liters (31 million gallons).

Philippines doubles coconut methyl ester production

In November, the U.S. EPA provided a 45-day extension for terminals and retail outlets to comply with this fall's 15 parts per million (ppm) ultra-low sulfur diesel (ULSD) standard. The retail compliance date is now Oct. 15, 2006. The extension does not affect the start date for refineries to produce ULSD fuel. During the transition period, diesel fuel meeting a 22 ppm level can be marketed as ULSD at the pump. More information is online at <a target="_blank" href="http://www.epa.gov">www.epa.gov</a>.

U.S. EPA extends 2006 ULSD deadlines

In New York, biodiesel use in the state's public building heating systems and fuel tanks should increase noticeably. At least that's what New York Gov. George Pataki intended when he issued an Executive Order recently, calling on all state and public authorities to up their consumption of biofuels. At least 5 percent of heating oil used in state buildings must be biodiesel by 2012, according to a governor's office release. Additional measures relating to both biodiesel and ethanol production incentives were also included in the order, among other use-related mandates. 
 
 In Maine, biodiesel use in heating systems continues to grow. According to Maine Audubon Communications Director Marie Malin, the wildlife conservation group finds many benefits in using biodiesel-blended heating oil. "It costs a little extra per year, but we think it's worth it," Malin told Biodiesel Magazine. Bioheat is used to heat buildings at Maine Audubon's headquarters on its 65-acre wildlife sanctuary, Gilsland Farm, an accessible nature-rich refuge near downtown Portland.
 
 Malin, who uses biodiesel in her 2000 diesel Volkswagen Golf TDI, said the state Audubon began using B20 bio-heating oil a couple years ago and now has a supply contract signed with Independence Fuels of Dartmouth, Maine. Audubon also uses B5 in its Gilsland Farm tractor, which is used for mowing in the summer and snow plowing in the winter. 
 Maine Audubon's mission is to protect wildlife through education, conservation and action, Malin said. "It comes back to the wildlife for us," she said. "And this is an easy way for us to make a difference." 
 
 The state of Maine has also been using biodiesel blends to heat its state buildings in the past couple years, in part thanks to Gov. John Baldacci's clean energy initiatives and growing support being seen in the Northeast.

Biodiesel, heating oil mixes well in Northeast

The U.S. biodiesel industry can welcome yet another state to its expanding list of biodiesel producers. Arkansas opened its first commercial-scale biodiesel facility in mid-October.
 
 Eastman Chemical Co. sold its first load of biodiesel Oct. 27 from its Batesville facility located in north-central Arkansas. The company is already planning on doubling production to 6 MMgy, according to Administration Manager Gary McDonald.
 
 The project required little capital expenditure for Eastman. The Batesville plant is what McDonald calls a "specialty chemical plant," producing chemical intermediates for a wide range of applications. Such products include pharmaceuticals, herbicides and custom chemical manufacturing.
 
 cDonald emphasized that the decision to produce biodiesel was a site-based decision, not a full corporate effort. He said the decision was based on the availability of existing chemical processing facilities that had unutilized production capacity. There is also a limited amount of biodiesel suppliers in the area, so the possibility of filling market demand presented itself.

 
 Eastman is currently using soy oil for feedstock, most of which is sourced within the state. Riceland Foods Inc. of Stuttgart, Ark., and England Dryer & Elevator Inc. of England, Ark., are two of Eastman's suppliers. "We are sitting in a predominantly agricultural region of the country that grows a lot of soybeans," McDonald said. 
 
 The plant will eventually use waste vegetable oil and animal renderings to produce biodiesel. Using two different feedstocks allows Eastman to operate two separate batch processes at the same time, McDonald said. "If the feedstock is available, we certainly have the processing expertise at the site," he said.
 With a specialty chemical background, Eastman's Batesville site should have plenty of uses for the glycerin formed during the biodiesel production process. One possibility is burning the coproduct in the facility's coal-fired heat generator.
 
 McDonald said Eastman received a great deal of support from the state in its pursuit of biodiesel. He added that there is demand for biodiesel in Arkansas from the agriculture industry and on-road consumers. "Our primary goal is to be the primary supplier to this area," he said.
 -Staff Report

Eastman Chemical quickly expands biodiesel production

Canadian rendering giant Rothsay literally put Canada on the biodiesel production map as it opened its full-scale biodiesel refinery-Canada's first commercial plant-in Ville Sainte Catherine, Quebec, on Montreal's South Shore. 
 
 With construction beginning in January, the plant commissioned production in August. However, it wasn't until November that the plant really got rolling, said Ron Wardrop, Rothsay Biodiesel's marketing and business development director. "We're rolling now at about 25 percent capacity," he told Biodiesel Magazine in mid-December. "We want to do this right." 
 
 Wardrop said the plant would reach full production capacity sometime in 2006, but he wouldn't be any more specific than that. At full capacity, the newly operational plant is scaled to produce 35 MMly (approximately 9 MMgy).
 
 Rothsay Biodiesel's batch process technology was developed in-house through research, development and experience gained from more than three years of operating its pilot plant on the same site in Ville Sainte Catherine. Montreal-based Inox-Tech Inc. provided general contracting services, Wardrop said. The plant's feedstock consists of both virgin animal fats and yellow greases.
 
 Rothsay Biodiesel is marketing its own biodiesel. Half of the plant's biodiesel heads south and is sold to U.S. markets, while the rest gets distributed to surrounding Canadian markets. The glycerin coming out of the plant now is still relatively crude. It's being sold, but for a cheap price, Wardrop told Biodiesel Magazine. As scaling up to full capacity continues, Rothsay Biodiesel will continue working on improving the quality of its glycerin. "We're continuing to look at and improve our glycerin to achieve consistent quality," Wardrop said. 

 -Staff Report

Operations begin rolling at Canada's first commercial plant

A Texas energy company has big plans in the Lone Star State. Shortly after announcing plans for a 30 MMgy biodiesel plant, Houston-based TexCom Resources Inc. has announced plans for a second facility.
 
 TexCom Resources Inc. has signed a lease agreement with Puerto Los Caballeros Properties for a site in Corpus Christi, Texas, where TexCom intends to build a biodiesel plant. The announcement comes on the heels of TexCom's plans to build a biodiesel plant in Houston.
 
 The 11.6-acre Corpus Christi location contains an on-site storage facility and other terminal facilities provided by Puerto Los Caballeros under a long-term lease. "This agreement provides us the opportunity to have a second biodiesel production facility in Texas that is strategically located for receipt of raw materials and access to fuel distribution markets," TexCom President Louis Ross said. 
 
 The plant will produce 30 MMgy of biodiesel using soy oil as a feedstock. The plant site is located on the Corpus Christi shipping channel, allowing the plant to receive soy oil by barge or rail. The plant will be constructed by Memphis, Tenn.-based Lurgi PSI with an estimated price tag of $9 million. TexCom is in the final stages of securing funding for the plant. Currently TexCom is preparing permit applications and plans to start construction later this month. The plant is scheduled for start-up in December 2006. 
 
 Unlike most biodiesel plants, the Corpus Christi plant is being equipped with blending capabilities. The plant will be blending B20 on site and offering B100 to create a broader marketplace for TexCom. "It was our strategy from the beginning to be able to blend B20 at the plant," said TexCom's Jay Charles. "It gives us another opportunity to market our biodiesel." There is the possibility the plant will produce higher blends of biodiesel in the future, Charles added. 
 
 A biodiesel marketer hasn't been declared for the Corpus Christi plant yet. "We're negotiating with Top Water Management to enter into a marketing agreement," Charles said. When completed, Top Water Management LLC will be the sole marketer for both B20 and B100.

TexCom announces Texas plans

The California Legislature recently passed a bill that helps EPAct-covered fleets, including military fleets, comply with California Air Resources Board (CARB) particulate matter reduction rules, as well as federal alternative fuel use requirements. The bill states public agency and utility fleets may use biodiesel blends up to B20 in a retrofitted vehicle certified by the state. The use of B20 is accepted regardless of the emission control device (i.e., particulate matter filters) being verified. The bill also provides the same exception for solid waste collection fleets. Sen. Roy Ashburn sponsored state Senate Bill 975. 
 
 "The rule is essentially in effect now," said Randal Friedman, head of California Government Affairs for the Navy Region Southwest. "But its official effective dates are Jan. 1, 2006, through Jan. 1, 2008." 
 
 The rule will help in future discussions with CARB on the Public Fleet Rule for Heavy Duty Diesels.

California bill helps fleets meet EPAct compliance

Green Bay, Wis.-based Anamax Corp. celebrated the groundbreaking of its DeForest, Wis., biodiesel plant Dec. 5. The 20 MMgy plant, sited in south central Wisconsin, is being designed and built by BioSource Fuels of Butte, Mont. The estimated cost for the plant is $10 million to $15 million. Full-scale construction of the plant, which will be built adjacent to the Anamax Grease Services facility, is slated to start in late February. 
 
 Anamax has signed an agreement with Texas-based National BioFuels to market the plant's biodiesel. Although capable of using multiple feedstocks, the facility will primarily use recycled grease from the neighboring grease plant. "We don't know what percent of soybeans we will use as feedstock," said Mike Spahn, general manager for Anamax Grease Services. "It all depends on feed prices and the amount of grease available." 
 
 Anamax Grease Services collects used restaurant grease from a five-state area and processes up to 4 million pounds of it per week. Grease Services has provided the cleaned oils to various areas of the feed industry in the past. Spahn said the grease plant will continue to provide feed companies with the same services as they do now. "We have a fair amount of oil in the company now, and there is plenty to go around," Spahn said. 
 
 In early December, Anamax was putting in water and sewer lines before the initial ground freeze. "Depending on the weather, major construction should begin in late February or early March," Spahn said. Anamax expects to start up the plant in August.

Anamax holds groundbreaking for Wisconsin plant

The first time Race Miner came across biodiesel was three years ago while living in Colorado, when he saw a local bus company using it. The more he talked with the bus drivers, the more he became interested in the fuel. Later this month, Miner will start production in his very own biodiesel plant in Shiremanstown, Pa.

 
 "The tank farm is installed, feedstock is lined up and a wholesaler has been landed," said Miner, Keystone BioFuels founder, president and CEO. "We are ready to go and couldn't be more excited." Keystone will be producing more than 1 MMgy from virgin soy oil. The plant will also have over 70,000 gallons of bulk storage at its disposal. Miner has been involved with the project for over two years and has solely funded the project himself. "When all is said and done, we will be only 3 percent over initial budget," he said. 
 
 The plant is located in a section of an old Quaker Oats Co. facility, and the plant will be housed completely indoors. The facility used to produce cereal products until the late 1990s. "We are leasing a portion of the [Quaker Oats] facility, which provided us with many advantages versus plowing over a field somewhere," Miner said. Keystone chose the facility for its existing piping, easy truck access and because it was already properly zoned. "There is a lot of infrastructure already in place here, and we didn't have to deal with all the permitting processes," Miner said. 
 
 Miner is already considering expanding the Pacific Biodiesel Inc.-built plant. "I am talking with Pacific Biodiesel about tripling my plant in the near future," Miner told Biodiesel Magazine. Miner said he is very close to signing an agreement with a local biodiesel distributor, Independence Biofuels, to market its biodiesel. "We actually have a neat package here," Miner said. "Our feedstock comes for the crushing plant only 15 miles away, and our distributor will only be seven miles away. We couldn't ask for anything better."

Keystone BioFuels starts production in Pennsylvania

The Canadian Bioenergy Corporation, western Canada's largest biodiesel distributor, has declared intentions to build a 40 MMly (10.5 MMgy) plant in western Canada. Over $900,000 in private funds has been raised by Canadian Bioenergy to conduct feasibility studies and to secure agreements involving site locations. Canadian Bioenergy plans to market the biodiesel, which will be produced primarily from canola oil. "Feasibility studies and the purchasing of land should be done in early 2006," said Ian Thomson, CEO of Canadian Bioenergy.

Biodiesel plant proposed in western Canada

GreenShift Corp. announced an agreement with Tennessee biofuels engineering and design firm BioEnergy Engineering LLC to build a new 30 MMgy biodiesel plant in western Tennessee. Per the agreement, GreenShift's portfolio company, Mean Green BioFuels, will receive exclusive rights to BioEnergy's technology and a three-year lease on BioEnergy's proprietary biodiesel production process. The proposed facility will operate under the name Mean Green Biodiesel of Tennessee Inc.

GreenShift plans 30 MMgy Tennessee plant

At press time, Ag Solutions Inc. was preparing to start operations in January at its Gladstone, Mich., biodiesel plant, according to Ag Solutions owner Richard Vandevusse. Upon commissioning, the plant will continue finalizing work on the tank farm's shelter building, installing the plant's second production module and other remaining items, Vandevusse told Biodiesel Magazine. 
 
 Once the plant's two production modules are fully on line-scheduled for March 2006-Ag Solutions will have the capacity to produce 10 MMgy, using soy oil as its initial feedstock. "We would eventually like to run soy oil on one production line and waste grease on the other," Vandevusse said. 
 
 Ag Solutions Inc. designed its process technology in-house with its neighboring sister company, VanAire Inc., also owned by Vandevusse. General contracting services were provided internally as well. According to Vandevusse, the plant is using a unique hybrid combination of batch and continuous processing. 
 With focus on getting the plant up and running, Ag Solutions has yet to finalize a biodiesel marketer. However, Vandevusse has been in discussions with several significant marketing players and will soon strike a deal. 
 
 Upon start-up, Ag Solutions will be the first commercial-scale biodiesel plant to operate in the state of Michigan. "We've had a tremendous amount of support and interest," Vandevusse said. "It always surprises me how many biodiesel fans there are out there." 
 
 Ag Solutions will be on the hunt for two more plant sites in 2006, according to Vandevusse.

Ag Solutions closes in onstart-up for first Michigan plant

Webster Fuel Pumps & Valves, a division of Capital City Tool Inc., is now marketing its new Bio Fuel Pump for home heating oil systems, Webster Sales Manager Curt Zahalka said. "This is a replacement to the standard residential pump and is compatible with biodiesel," he added. What makes this pump compatible-and standard pumps incompatible with bioheating oil-is the rubber material. Webster's new Bio Fuel Pump contains a trademarked Viton material that can withstand prolonged exposure to biodiesel, which may wear out rubber components in a standard pump. The new Webster pump can be used with all soy- or tallow-based biodiesel blends and B100.

Webster offers bio pump

Developers of a unique Tennessee biodiesel project have aspirations of becoming the state's largest commercial biodiesel producer. Construction on Agri Energy Inc., a 5 MMgy plant in Lewisburg, Tenn., is well underway, according to Chairman and CEO Michael Tarr. The plant is the first in a series of 5 MMgy facilities Tarr intends to develop at the site.
 Construction on the facility began in late November. Concrete work began in early December with completion of the main building work expected by year's end. Tarr said Agri Energy, which is providing all in-house technology, construction and engineering, uses proprietary technology that allows a facility to be built in as little as 45 days. He said the project was developed after working with Green Bay, Wis.-based biodiesel producer Renewable Alternatives.
 

 The Agri Energy plant site is in a "logistically perfect location" on 41 acres of land in Lewisburg's industrial development area, according to Tarr. Besides having nearby rail and highway access, the site is also 60 miles south of Nashville. Tarr said there are several major soybean crushers within 40 miles of the site. The plant, which can produce a batch of fuel in three days, will use crude degummed soybean oil as its primary feedstock, Tarr said.
 
 Agri Energy will be marketing its own biodiesel, much of which is already locked up in bulk sales contracts with regional users.
 
 Tarr expects the plant to start up in late January. He told Biodiesel Magazine the plant is the first of 20 such facilities planned for the site. The approach of having a large facility consisting of multiple production modules will allow Agri Energy to use multiple feedstocks and apply new technology easily, Tarr said.

Innovative Tennessee plant breaks ground

The recent flurry of favorable biodiesel conditions has encouraged many fleets to switch to B20 (a blend of 20 percent biodiesel and 80 percent diesel). We welcome these new users into the biodiesel family, but we also wish to start them off with some friendly advice including common-sense recommendations for a successful transition. 
 
 Two guides can set fleets on their way to successful biodiesel use: The newly issued Technical Recommendations for B20 Fleet Use Based on Existing Data from the B20 Fleet Evaluation Team (FET) and the Biodiesel Storage and Handling Guidelines. Links to both of these documents can be found on the National Biodiesel Board's (NBB) Web site, <a target="_blank" href="http://">www.biodiesel.org.</a>
 
 The FET findings are the result of a joint project among the NBB, original equipment manufacturers (OEMs) and the U.S. DOE's National Renewable Energy Lab (NREL). Due to space constraints, here are four of its key recommendations:
 - Make sure your fuel meets American Society of Testing and Materials (ASTM) specification D6751 before it's blended 
 with diesel.
 -Follow shelf life and stability guidelines of using biodiesel within six months.
 -Be aware of B20's cold weather properties and take appropriate precautions.
 -Demand fuel from BQ-9000 accredited producers and certified marketers.
 

 Quality is key. In fact, some cases of filter clogging in the field have been reported with out-of-spec fuels or in cases where higher blends are used without taking the necessary precautions. Although these issues are the exception and not the rule, they prove the importance of proper handling and use of spec fuel from a supplier who will stand behind his or her fuel. That's why the NBB established BQ-9000, a quality control program that helps assure consumers that their supplier sells spec fuel. Following the B20 FET guidance can make B20 use seamless to the user. 
 
 With high diesel prices and more cost-competitive biodiesel, some users are starting to try blends above B20. While there has been successful use of blends over B20, additional precautions are necessary when using higher blends, especially in cold temperatures. There are a significant amount of additional concerns with the use of blends higher than B20, and use of these blends can't be considered "seamless." A list of issues with the use of greater-than-B20 blends can be found in the NBB guidance, Use of Biodiesel Blends Above 20 Percent Biodiesel.
 
 This is an exciting time for biodiesel. In the face of rapid growth, our industry is determined to keep biodiesel's reputation as a high-quality fuel. This starts with production but ends with the user. The user has the power to ensure that using biodiesel is a positive experience. 
 
 Please visit <a target="_blank" href="http://">www.biodiesel.org/buyingbiodiesel </a>for more specifics on the use of B20 in fleets. By following these simple, common-sense measures, reducing dependence on foreign oil and cleaning up emissions has never been so easy.

Fleets flocking to biodiesel should follow these recommendations

NBB In Sight

NREL and the Regional Transportation District (RTD) of Denver are evaluating the in-use performance of buses operating on B20. NREL has released a report that summarizes the interim results for one year, beginning in August 2004. The findings show no significant differences in fuel economies between B20 and conventional diesel fuel, and it found reductions in nitrogen oxides and other emissions.
 
 Nine mechanically identical 40-foot transit buses (five operated on B20, four on conventional diesel) are being compared over the same duty cycle in Boulder, Colo. In addition, laboratory tests compared the buses' fuel economy and emissions. With fuel, labor and parts data from RTD, NREL is documenting and analyzing vehicle operation. The objective is to compare B20 and conventional diesel fuel for engine performance, component wear, fuel economy, vehicle maintenance and emissions. The results will help RTD-and other potential biodiesel users-consider future use of biodiesel fuel blends. Engine manufacturers can use the findings to evaluate the effects of B20 on engine durability.

Bus fleet performance, biodiesel tested through NREL

Data collection began in late July 2004. The following are results for the 
 12 months of on-road data analyzed:
 
 -The five B20 buses accumulated approximately 255,000 miles on B20 with the same use as the four diesel comparison buses, or approximately 4,500 miles per bus per month. The B20 buses consumed approximately 5,000 gallons per month.
 
 -There was no significant difference between the average fuel economies of the two groups-4.47 miles per gallon (mpg) for the diesel buses and 4.46 mpg for those using B20.
 

 -Average miles between service calls were 3,211 miles for the buses using diesel and 3,982 miles for those using B20.
 
 -Total maintenance costs for the two groups were 56 cents per mile for the diesel-powered buses and 52 cents per mile for the buses using B20. Engine and fuel system maintenance costs were 5 cents per mile for the diesel-powered buses and 5 cents per mile for the buses using B20. These differences in maintenance cost are not believed to be significant. Labor cost is assumed to be $50 per hour for all maintenance cost calculations.

On-road evaluation results

Bus emissions were measured on a chassis dynamometer over the City Suburban Heavy Vehicle Cycle (CSHVC) because the CSHVC is similar to the tested route duty cycle. In these laboratory tests, buses fueled with B20 demonstrated lower fuel economy and emissions, results that are significant at the 99 percent confidence level:
 
 -Nitrogen oxides (NOx)-4 percent
 -Total hydrocarbons (THC)-29 percent
 -Carbon monoxide (CO)-24 percent
 -Particulate matter (PM)-18 percent
 -Fuel economy-3 percent
 
 Based on the positive results and high-quality data obtained thus far, the buses will be evaluated for a second year of operation to provide additional B20 fuel and maintenance history and longer-term engine durability information. NREL will continue to provide data analysis and reporting of project results.

Laboratory test results

Waveland, Miss., was nearly demolished after Hurricane Katrina. The Citizen Action Team (www.citizenactionteam.org) approached the National Biodiesel Board (NBB) asking for help with fuel so it would be able to keep Waveland's community-based kitchens and community centers open for storm victims. Thanks to the support of donors, including American Bio-Fuels, operations were able to continue. However, although many resources are now secured, the Citizen Action Team needs a biodiesel storage tank before fuel can be donated to them. 
 
 Please contact Amber Pearson at the NBB offices if you have information on how the volunteers could acquire a tank or additional biodiesel fuel. She can be reached at <a href="mailto:apearson@biodiesel.org ">apearson@biodiesel.org </a>or (573) 635-3893.
 
 American Bio-Fuels donated significant funds to help pay for meals and other relief. American Bio-fuels is an NBB member and biodiesel manufacturer in Bonita, Calif. Biodiesel advocate Josh Tickell, author of From the Fryer to the Fuel Tank and New Orleans-area native, has also been providing assistance with hurricane aid.

 
 Citizen Action Team is an unaffiliated group of volunteers that has come together to provide supplies to the areas of the hurricane-ravaged coastline. Volunteers serve other areas that receive less media attention than New Orleans, such as Lafayette and Baton Rouge, La., and Gulfport and Hattiesburg, Miss.

Hurricane aid volunteers request fuel tank

Musician and activist Bonnie Raitt, currently touring the country on cleaner-burning biodiesel, hosted a benefit event for biodiesel education at a performance in Knoxville, Tenn. Thanks to Raitt's belief in biodiesel and her generosity, the National Biodiesel Board (NBB) was able to sell a special lot of tickets for biodiesel supporters and Raitt fans. Most tickets included invitations to a dessert reception with Raitt after the show. The proceeds raised will benefit biodiesel education programs in Tennessee through the East Tennessee Clean Fuels Coalition (ETCFC) and Tennessee Soybean Promotion Board. 
 
 "We have been extremely pleased working with Bonnie and her team to raise awareness for biodiesel," ETCFC Executive Director Jonathan Overly said. "Her passion for the environment really shines through, even during the outstanding show she put on."
 
 Raitt is using B20 in two buses and two tractor-trailers. This is the second tour in which the blues entertainer has used B20.
 
 Please visit <a target="_blank" href="http://">www.bonnieraitt.com </a>or www.charityfolks.com to learn more about Raitt's tour. More information on biodiesel initiatives in East Tennessee can be found at <a target="_blank" href="http://">www.etcfc.org.</a>

Bonnie Raitt holds benefit for biodiesel education in Tennessee

The biodiesel industry reelected a farmer leader from Carlyle, Ill., to lead the National Biodiesel Board (NBB) during what promises to be a period of intense growth in production and sales. Darryl Brinkmann, who has served as a board member since 1998, and chairman since 2004, will serve as the reelected chairman of the nonprofit trade association. 
 

 All NBB officers were reelected to the board and their leadership positions. They are:
 
 -Darryl Brinkmann, chairman, representing the American Soybean Association -
 
 -Fred Wellons, vice chairman, representing Baker Commodities, a biodiesel supplier based in Los Angeles, Calif. 
 
 -Gary Haer, secretary, representing West Central, a biodiesel supplier based in Ralston, Iowa
 
 -Jerry Osterholt, treasurer, a farmer from Roanoke, Ind., representing the Indiana Soybean Board
 
 Additionally, two other farmers became newly elected board members. Robert Stobaugh, a farmer representing the Arkansas Soybean Promotion Board, and Ed Hegland, a Minnesota farmer representing the state's Soybean Research & Promotion Council, joined the governing board. 
 
 Additional governing board members are:
 -Jim Boushka of Best BioFuels LLC, a biodiesel supplier in Austin, Texas
 -John Campbell of Ag Environmental Products, a division of Ag Processing Inc., a biodiesel fuel supplier based in Sergeant Bluff, Iowa
 -Bob Clark of Imperial Western Products, a biodiesel supplier based in Indio, Calif.

 -Jim Conway of Griffin Industries, a biodiesel supplier based in Cold Spring, Ky.
 -Gene Gebolys, representing World Energy, a biodiesel supplier based in Chelsea, Mass.
 -Bob Metz, a farmer representing the South Dakota Research and Promotion Council
 -Jeff Nelson, representing Stepan Company, a soy biodiesel supplier based in Northfield, Ill. 
 -Ed Ulch, a farmer representing the Iowa Soybean Promotion Board 
 -David Womack, a farmer representing the Tennessee Soybean Promotion Board

Governing board members elected to lead industry through next year; NBB pioneer retires

In early December, Sioux Center, Iowa-based Interstates Companies received two construction awards from the Associated Builders and Contractors of Iowa for work Interstates did on SoyMor Biodiesel LLC, a 30 MMgy biodiesel producer in Glenville, Minn. The awards included Project of the Year and an Award for Excellence in the Electrical: Commercial & Industrial Over $1 Million category. Within eight months, Interstates delivered the complete electrical package for the SoyMor plant, staying under budget and finding innovative ways to meet challenges that arose during construction.

Interstates Companies wins awards for SoyMor work

The Iowa Area Development Group presented Western Iowa Energy LLC, a 30 MMgy biodiesel plant under construction in Wall Lake, Iowa, with the 2005 Venture Award for Outstanding Business of the Year. The award was in recognition of outstanding business achievement in Iowa. Western Iowa Energy, which is slated to start up in March, was nominated for the award by the Sac County Rural Electric Cooperative. "I think it's a great recognition as a company to get an award before we are even in production," General Manager Chris Daniel said. "The community is realizing what this opportunity means to the area."

Western Iowa Energy receives business award

Chris Lindeman joined BBI International's Project Development division as a chemical engineer in November. He will assist Brian Duff, manager of technical studies, with feasibility studies. Lindeman previously worked for TechLaw Inc. in Golden, Colo., as a subcontractor. He earned his bachelor's degree from the Colorado School of Mines in June 2004.

Lindeman joins BBI International Project Development

On Dec. 1, Suni Puri, a leading Indian agronomist, became head of D1 Oils' Product Development Center in Coimbatore, India. Puri will head research to improve the yields of jatropha and identify the varieties that grow best in particular soil and climatic conditions. He will also have overall responsibility in India for further development of commercial cultivation practices and training programs. Puri was recently selected as a fellow of India's National Academy of Agricultural Sciences. D1 Oils is a U.K.-based biodiesel producer

Puri joins D1's jatropha research program

The Iowa Renewable Fuels Association (IRFA), formed in 2002 to represent the state's biodiesel and ethanol producers, elected its executive committee members and officers to its board of directors during its annual meeting Dec. 7. The board of directors includes President Sam Codgill of Amaizing Energy, Vice President Walt Wendland of Golden Grain Energy, Secretary Bill Couser of Lincolnway Energy and Treasurer Jim Meyer of Western Iowa Energy, a 30 MMgy biodiesel plant under construction in Wall Lake, Iowa. New officers serve a one-year term.

IRFA announces 2006 officers

Corning Inc., a global technology company and supplier of quality emissions control substrates and filters, announced in mid-November that Volkswagen AG will equip its European diesel passenger vehicles with a new particulate filter first made available by Corning in 2005. The advanced diesel particulate filter, named Corning DuraTrap AT, features three innovations in particulate filter design, the company reported. The filter is made of an advanced aluminum titanate composition to reduce integrity issues from thermal shock. Its structure is monolithic-providing added strength-and it showcases a new cell configuration to improve ash storage.

VW uses new Corning particulate filter

BBI International's Project Development division, formerly located in Golden, Colo., moved into a new Lakewood, Colo., office at 390 Union Blvd. on Nov. 18. All phone and fax numbers, and e-mail addresses have remained the same.
 
 The new office is about eight miles east of the former location and was necessary to accommodate the growing staff. "It's a nicer location in that we are conveniently located near hotels, restaurants and major transportation arteries," said Project Manager Art Wiselogel. "Is the view as nice? No."

BBI International Project Development division moves

After recent testing with Finland-based SisuDiesel, Agco has approved the use of B5 blends in its equipment powered by Cummins and SisuDiesel engines. The company is continuing its research by reviewing higher biodiesel blends in a variety of engines Agco uses in its equipment. "We are committed to ensure that B5 is the first step in an aggressive biodiesel adoption program," said Todd Stucke, general marketing manager for Agco tractors.

Agco approves B5 blends in tractors

ReFuel America, a wholly owned subsidiary of NewGen Technologies Inc., recently formed a joint venture with the alternative energy solution group PowerShift Energy Company. The two companies will help build biodiesel plants and power generation facilities in the United States. NewGen also announced an engineering and design joint venture with Actanol Service Ltd., to form Actanol BioEngineering LLC. The new company will provide design, construction, engineering, operations and technology support to biofuel plants worldwide

NewGen announces partnerships

Colorado-based Consolidated Biofuels, a renewable fuels company, completed a merger with its Texas-based operations in late 2005 and became 
 incorporated. "We will now focus on making our construction and acquisition strategy, which is designed to create a strong growth rate," said Christopher Sharon, president and CEO of Consolidated Biofuels. The company is planning to build and operate a 30 MMgy biodiesel facility in Mason City, Iowa, with a goal to operate six plants in the next four years.

Consolidated Biofuels completes merger

Hundreds of vehicle fleets throughout the United States are using biodiesel. Undoubtedly, many more will begin using the renewable fuel in 2006. 
 The reasons for switching to biodiesel are many. Some companies want to be better stewards to the environment. Others believe it helps reduce U.S. dependence on foreign oil, and some use biodiesel in order to achieve compliance with EPAct regulations.
 
 However, there are many private, commercial fleets that use biodiesel for one reason: it makes sense. Whether that is protecting the health of their employees or because it saves money in the long run, companies are actively pursuing the use of biodiesel in their fleet vehicles.
 
 Biodiesel Magazine recently caught up with six of these fleets and listened to their stories. The resounding message was inspiring. Biodiesel is findings its way into more vehicles across the country.

 
 The following isn't meant to profile the typical fleet in the United States. It's simply a cross section of the types of companies and their equipment using biodiesel today.
 
 Fitting a legendary outfitter with B20
 L.L. Bean, the worldwide outdoor equipment and apparel company, has always been committed to understanding and addressing environmental issues. It's the way the company has operated since its humble 1912 beginning near Freeport, Maine.
 
 Growing from a one-man operation to a global business hasn't caused L.L. Bean to lose touch with its environment-friendly ways. The company still uses recycled material for its catalogs. Pollution problems in Maine's Acadia National Park prompted L.L. Bean to donate $1 million to convert the park's bus system to propane. 
 
 However, improving its own environmental footprint was still a major issue within the company. Switching the company fleet to biodiesel and propane were at the top of a short list to help reduce emissions. That's why, three years ago, L.L. Bean began using a B20 blend of biodiesel in some of its fleet vehicles.
 
 In early 2003, the company began a biodiesel pilot program that fueled trucks hauling merchandise from the warehouse to retail stores in Maine and New Hampshire. "We have particularly cold winters here in Maine," L.L. Bean Environmental Director Carolyne Beem said. "We were told that winter would be problematic for biodiesel." The company went forward with its pilot program and has yet to discover any problems running B20 in the winter months.
 T
 he pilot program was scheduled to last one year, but the company had seen only good things and decided to roll out the program to the freight vehicles in the fleet. The program now involves seven large freight trucks with the possible addition of smaller fleet vehicles soon.
 
 L.L. Bean also offers an interactive outdoors learning course, the Outdoor Discovery Program, where the company uses biodiesel-powered shuttle buses to transport participants. 
 

 Greening a chemical production site
 With a facility site covering more than 850 acres and employing over 7,000 employees, Eastman Chemical's Kingsport, Tenn., operations are easily one of the largest chemical-producing plants in North America. So when the company looked at using biodiesel, it wasn't a spur-of-the-moment decision. In fact, it took several years of research and planning before making the switch. "It was new," Eastman's Fleet Administrator Darren Curtis said, referring to biodiesel. "And as it tends to be with new technology and a new fuel, people were afraid of it."
 
 The fuel's relative novelty, and its higher cost, forced the biodiesel plans to the backburner until late 2004 when Eastman officials reconsidered. Once again, the company did its research, including contacting smaller fleets that were using biodiesel. This time, Eastman approved the move.
 
 On March 1, Eastman began using a B5 blend in over 200 vehicles and 150 pieces of stationary equipment. The low-level blend was introduced because Eastman officials were wary of biodiesel's tendency to act as a solvent and break loose prior diesel fuel-related residue. "We never did have that problem," Curtis said. 
 
 After the smooth transition to B5 was complete, Eastman increased its blend to B20 on April 1. It didn't stop there. In September, Eastman increased to a B30 blend, which it continued to use until the last week of November when it dropped to B10 on the advice of its distributor, Butler, Ky.-based Griffin Industries. Curtis said cold weather was the reason for the move. He plans to use B30 again, possibly as soon as early March, depending on the weather.
 
 For now, Eastman continues to use approximately 300,000 gallons of biodiesel-blended diesel fuel annually in a fleet that includes heavy- and medium-duty trucks, cranes, bulldozers and dump trucks, and stationary equipment such as welders and generators.
 
 King of the hill
 It's appropriate that Sugarbush Resort's environmental management group is named the Green Team. The Warren, Vt., ski resort, which serves six mountains and an area covering more than 4,000 acres, is always looking for ways to improve its environmental footprint. For its efforts, the Green Team helped the resort receive the 2002 Governor's Award for Environmental Excellence in Education and Outreach.
 
 According to Sugarbush's Tim Jones, the resort won a similar award in 2005 for another project the Green Team helped spearhead-the use of biodiesel in snow grooming and plowing equipment. 

 
 Aided by a $2,500 Vermont Sustainable Jobs Fund grant, Sugarbush began using B20 on one of its mountains as part of a pilot study over the 2004-'05 winter season. The results were positive. Jones, who led the pilot program, presented those results in a report to the Vermont Sustainable Jobs Fund in March 2005. In large part due to those results and the presentation at an annual environmental event called Sustainable Slopes Day, several other ski resorts are considering using biodiesel.
 
 This year, Sugarbush has expanded its biodiesel usage to seven pieces of equipment. The fuel cost, which was nearly $8,000 the first year, has dropped significantly because the resort's distributor, Proctor Oil Co. in Proctor, Vt., installed permanent biodiesel storage, Jones said.
 
 Going underground
 From the top of the mountain to under the ground, biodiesel proves its versatility while improving the health of Kansas salt mine workers. In 2003, the Hutchinson Salt Co. in Hutchinson, Kan., was having trouble staying below the Mine Safety and Health Administration's (MSHA) maximum level of diesel particulates in its underground salt mine. In fact, they were well above the recommended levels.
 
 With the help of Max Liby, Hutchinson Salt Co.'s vice president of manufacturing, the company decided to start using biodiesel in its machinery. It was the first mine of any kind to do so.
 
 The mine currently operates all of its 22 pieces of underground equipment-from 185-horsepower front loaders to utility pick-up trucks-on B100. "We didn't mess around with any blends," Liby said. "We went straight for the B100."
 
 Since starting the biodiesel program, Liby has seen a drastic decrease in diesel particulates. According to Liby, the mine's particulate readings are 90 micrograms per cubic meter. "I now can tell inspectors, 'We don't have diesel particulates, but we might have soy particulates,'" Liby joked.
 
 Air quality has come at a price. With B100 costing about $1 more per gallon, Hutchinson spent over $30,000 on biodiesel last year. Liby easily justifies the cost. "We are cleaning the air underground," he said. "The workers like it, and the money we are spending stays here in the Midwest." 
 

 There have been few problems with B100 aside from replacing a few fuel filters after the initial switch. Liby also doesn't have to worry about B100's cold flow issues. "The underground temperature is a constant 71 degrees, so we don't have a problem with B100 gelling up," Liby said.
 
 Brewing biodiesel for a brewery
 New Belgium Brewing Co., the Fort Collins, Colo.-based beer producer, is well known for its sustainable and environmentally responsible stance. In fact, the company has its own sustainable outreach coordinator, Hilary Mizia, to explore and implement environmentally friendly projects.
 
 Approximately two years ago, Mizia pushed New Belgium to begin using biodiesel. After all, Fort Collins has its own biodiesel blender and distributor in Blue Sun Biodiesel. 
 
 Finally, a regional air council granted New Belgium the necessary grant needed to help offset the increased price of biodiesel. "That was the little bit of a push I needed to get the biodiesel wheels turning," Mizia said.
 
 Although that grant has long since expired, it hasn't stopped New Belgium from using B20 in its three Fort Collins delivery trucks. "At this point, it is something that is worth paying a little extra for," Mizia said. With a new Blue Sun biodiesel pump recently opening in Fort Collins, Mizia said some of the brewery's sales fleet may consider using biodiesel as well.
 
 Initially, New Belgium considered putting in its own biodiesel pump, or even producing biodiesel itself. "In the end, we decided to leave biodiesel manufacturing to the biodiesel plants," Mizia said. "Leave the beer to us."
 
 Notably, New Belgium has joined the Chicago Climate Exchange, which is the first U.S. voluntary pilot program for the trading of greenhouse gases.
 
 "Private companies are the ones that really have to have the vision and wisdom to use the fuel," Blue Sun President and CEO Jeff Probst said. "Groups like New Belgium realize the sustainability and environmental perspectives, and performance benefits."

 
 A new user in New Mexico
 Probst's company is also distributing biodiesel to a much larger fleet of biodiesel users. PNM, a subsidiary of Albuquerque, N.M.-based PNM Resources, is New Mexico's largest electricity and natural gas provider with more than 870,000 customers statewide. 
 
 A single fleet manager in Santa Fe helped lead the change to biodiesel at PNM, according to PNM spokesman Jeff Buell. The manager began testing B20 in his personal vehicle. That experience prompted PNM to consider the switch.
 
 Following several months of research, PNM workers began filling vehicles with B20 in July at refueling stations in Albuquerque and Santa Fe. Approximately 60 percent of PNM's 426 fleet vehicles refuel at those stations. The equipment ranges from bucket trucks, heavy-duty pickups and backhoes to stationary equipment such as air compressors and welders.
 
 In addition to anecdotal evidence that the switch has increased engine power and improved exhaust smell, Buell said fuel economy has improved by up to 12 percent. "Most importantly, a lot of the guys had no idea the switch had been made," Buell said. "They weren't aware of it."
 
 PNM purchases approximately 240,000 gallons of B20 annually. The slightly higher price of biodiesel is something PNM expects to overcome in the long run due to higher engine lubricity, lower maintenance costs and improved fuel efficiency. "We believe, over the course of the life cycle of each vehicle, we'll break even or come out ahead," Buell said. "With the environmental aspect on top, it's a pretty compelling case." 
 
 Dave Nilles is associate editor of Biodiesel Magazine. Reach him at <a href="mailto:dnilles@bbibiofuels.com ">dnilles@bbibiofuels.com </a>or (701) 746-8385. Kory Wallen is a Biodiesel Magazine staff writer. Reach him at kwallen@bbibiofuels.com or (701) 746-8385.

Biodiesel use in vehicle fleets has been catching on in the past few years, creating many success stories along the way. Biodiesel Magazine profiles six companies that prove enterprise mixes well with the renewable fuel.

It's Just Business

It's 5:30 p.m., and a cocktail party with roughly 100 guests has just begun in a formal meeting room at the posh Four Seasons Hotel in New York City. Judging from the location and the attendees' attire-Brooks Brothers suits and designer dresses-you can safely assume this is a Wall Street-type crowd. The guests mingle and chat with drinks in hand as others arrive. The group waits with a certain sense of anticipation, glancing occasionally toward the far end of the room, where a stage has been set up with a podium and screen. Projected on the screen is the opening slide for a presentation that's about to begin. The slide, complete with a backdrop image of a verdant landscape, reads, "Earth Biofuels: Better Living Through Biodiesel." The company's Chairman, Dennis McLaughlin, takes the stage … and, on Nov. 15, biodiesel industry history is made.
 

 Indeed, the scene that unfolded marked a major milestone in the evolution and legitimization of biodiesel as a new American industry. Jackson, Miss.-based Earth Biofuels Inc. formally announced to the Wall Street community that the company had started trading on the Nasdaq (OTCBB) stock exchange under its new and official ticker symbol, EBOF, thus making it the first-ever publicly traded biodiesel company. And though, from the perspective of alternative fuels advocates this alone was quite momentous, the executives and analysts in attendance-representatives from Goldman Sachs, Smith Barney, UBS and other financial heavyweights-were lured to the event as much by the investment opportunity as by the chance to meet the company's new board members: actor Morgan Freeman and singer Willie Nelson. 
 
 The last time Biodiesel Magazine spoke with Earth Biofuels CEO Tommy Johnson (October 2005 issue), he indicated that the company was actively-even aggressively-seeking to grow the business, which encompasses everything from bean crushing to retail truck stops, through expansion and acquisition. Having successfully courted Freeman and taken the company public (by way of a reverse merger), Johnson and McLaughlin were in a position to approach both Nelson and his business partner Peter Bell. Bell is the founder of Distribution Drive, an Addison, Texas-based biodiesel distribution company with an exclusive on the BioWillie brand. Nelson accepted a seat on the board, Earth Biofuels received its new stock symbol, and the pending acquisition of Distribution Drive was well underway. Hence, the makings of a Wall Street party.
 
 
 BioWillie 
 The Red Headed Stranger, a.k.a. Willie Nelson, officially joined the Earth Biofuels board of directors Nov. 10, just five days before the party. Though Nelson had been involved with the industry since January 2005, as the namesake behind his venerable brand, the national media responded as if it was a hot new scoop. Because, in one way, it was. Journalists were eager to point out the discord, so to speak, in the tone of this story. The thought of Nelson in the corporate board room was rather ironic, given the famed singer's anti-establishment image. The reality of the story, though, offered yet another testament to the virtues of biodiesel and its capacity for one and all to find common ground.
 Conveniently enough, the investor event coincided with the Country Music Awards (CMAs), where Nelson would be performing. His appearance at the party, albeit brief, got things rolling when, on behalf of the company, McLaughlin and Johnson presented the singer with a green Earth Biofuels guitar to commemorate his joining of the board. 
 "First of all, I'm happy to be a part of Earth Biofuels," Nelson said, after accepting the guitar and thanking McLaughlin and Johnson. "I think this is the future," he continued. "It's going to help us a lot as far the environment is concerned, helping the farmers, helping the truckers … just a lot of people who are glad to get involved with the biodiesel business. Because it's going to keep us from being so dependent on foreign energy that we can think about growing our own fuel. So I'm very happy to be a part of it, and thank you.
 
 Following Nelson show departure for the CMAs, the Earth Biofuels directors took the stage for the official presentation. As a special guest, the company had flown Miquel Dabdoub to the event. A professor from the University of São Paulo, Brazil, Dabdoub is a strategic partner in the company's business, providing expertise and proprietary biodiesel technology for the construction and design of production facilities. 
 
 McLaughlin gave the keynote address, which outlined the corporate structure, explained the relationship between Earth Biofuels and its parent company, Apollo Resources International Inc., and highlighted the need for biodiesel as a domestic fuel resource.
 

 "The U.S. is importing approximately 2.5 million barrels of oil each day from the Persian Gulf," McLaughlin stated. "Prior to the most recent Gulf War, the U.S. was spending $50 billion each year maintaining a military presence in the Gulf just to maintain stability in the region. From March of '03 to June of '05, the United States has spent $204 billion on the war in Iraq with a continued monthly expense of $5.2 billion. In the last 28 months, the U.S. has imported 2.1 billion barrels of oil from the Middle East. I think everyone knows pretty clearly why we're in the war that we're in. And if the necessity of it is derived from the value of oil, and if you look at the amount of money we've spent on the war divided by the number of barrels of oil that we've brought into this country since it started, it comes out to $97 per barrel."
 
 McLaughlin's impassioned speech succinctly and articulately outlined the consequences of a flawed energy policy and the subsequent case for biodiesel. From what was gathered, many of the investors in the room were hearing this for the first time. 
 
 Next, Johnson presented the specifics of Earth Biofuels' business strategy, detailing the basic economics of producing and selling biodiesel and citing the subsidies and tax incentives that give it an edge in the marketplace and ultimately increase profitability. He described the plans for expansion, from Mississippi and Oklahoma to Texas, Tennessee, and other areas of the Southeast. In particular, he referenced the deal to acquire Distribution Drive, along with the BioWillie brand, which was completed weeks later on Nov. 29. Lastly, pursuant to a segue, Johnson presented plans for Earth Biofuels technology. 
 
 "One thing that has been a barrier to the market for biodiesel or ethanol is the cost of the technology," Johnson said. "To that end, we're building our own technology company to build our own plants. We intend to purchase the technology rights of professor Miquel Dabdoub for our own business, and also to license them under an exclusive agreement to other U.S. companies."
 
 At last, Dabdoub stepped to the podium and, despite a thick Portuguese accent, offered a rather clear and concise presentation that recounted more than a decade of research and development in the field of biodiesel technology, citing studies conducted with the world's largest automakers, not to mention Coca-Cola's world fleet. 
 
 The success of the event could be gauged by different sets of criteria. The fact that a publicly traded biodiesel company with a star-studded board of directors pitched its business to Wall Street's top echelon is deserving of a certain measure of credit all by itself. The number of photos snapped of investors and their companions standing with Nelson and Freeman (however many hundreds were taken) could be yet another measure, as those photos will be a constant reminder of their evening spent with Earth Biofuels. But the weightiest measure of the event's success by far would have to be the investment capital. And though it was not divulged who bought what, interviews with those in attendance in the weeks that followed revealed that early investments totaled in the low seven figures. In other words, the event was a million dollar baby. 
 
 Robert Reed is a California-based freelance writer. In October, he authored another Biodiesel Magazine exclusive feature on Earth Biofuels, titled "The Biodiesel Game Plan."

Earth Biofuels stacks the deck with two major celebrities-Oscar winner Morgan Freeman and musician-biodiesel advocate Willie Nelson-and celebrates its new public 
status with a Wall Street investor party.

In the Public Eye

It's quite imaginable that many Americans would be at odds with even the idea of importing large quantities-or any amount, for that matter-of biodiesel, a fuel that's often touted as a viable, growing part of an emerging U.S. domestic energy strategy. 
 
 However, private and public demands for biodiesel are sky high right now and, like it or not, some believe that U.S. producers, while vigorously laboring to build more plants and increase productivity for this industry on the verge of an upsurge, simply cannot supply enough biodiesel to meet the current U.S. markets' seemingly insatiable demands. 
 Enter EarthFirst Technologies Inc. and its wholly owned subsidiary, EarthFirst Americas Inc.-companies adding new dynamics to the biodiesel production and supply mix. 
 

 Exporting technology
 EarthFirst Technologies is a technology development company based in Tampa, Fla. "We're specifically focused on developing those technologies formed around environmentally friendly fuels," said Elio Muller, spokesman for EarthFirst Technologies. The company's new biodiesel process technology is based on catalytically activated vacuum distillation (CAVD). "The process is similar to pyrolysis under a vacuum," Muller told Biodiesel Magazine. "We don't call our process 'pyrolysis' anymore though. It's been greatly refined." 
 
 EarthFirst now operates a plant in Mobile, Ala., using CAVD technology to turn spent tires into an industrial No. 6 fuel oil, often referred to as bunker oil, Muller said. The fuel is often used in power generators and steam boilers. 
 
 "So we asked ourselves what would happen if we used a raw high-oil feedstock in CAVD," Muller said. "Soon afterward, one of our Ph.D.s took our question seriously, and we began running lab tests in Mobile and other locations using this technology with whole soybeans and corn. The tests results were positive for making biofuels, so we started talking to the palm producers in Ecuador [that] we've been working with for the last four years." 
 
 EarthFirst's dual-pronged production begins
 In a joint venture with La Fabril, a large Ecuadorian palm oil distribution company, EarthFirst began retrofitting an idle margarine plant near the palm oil extraction center in Manta, Ecuador, in May. "We improved the tank farm, reactors and storage areas," Muller told Biodiesel Magazine. While the company has been honing its CAVD technology for biodiesel production, it has also simultaneously started down a better-known process path-the transesterification of palm oil in the old Manta margarine plant.
 
 By June 2005, EarthFirst's Manta plant began transesterifying enough palm oil to produce 1 million gallons of biodiesel per month. By April 2006, EarthFirst expects to be producing up to 3 million gallons per month. By November 2006, it plans to increase production even further, surpassing 3 million gallons per month. 
 
 As far as EarthFirst's CAVD technology is concerned, at press time in mid-December, the company was packaging and shipping its first pilot-scale system to Ecuador. "The first CAVD plant is being packaged as we speak, arriving in Ecuador by the end of the month," Muller said. 
 
 EarthFirst hopes to be fully underway with CAVD trials using whole palm fruit feedstock by the end of January. "Although the CAVD plant is scaled to size for industrial production, it's not going to be a 'full-scale plant,'" Muller explained. The CAVD plant to be located in sight of the oil extraction center in Manta will use several tons of palm fruit that will bypass oil extraction altogether. 

 
 Tests using CAVD with soybeans and corn in its Mobile plant showed EarthFirst that the process produces a usable fuel after the first step-a fuel similar to low-grade diesel that can be used for power generation, but not yet ASTM D6751 biodiesel. "It's mother's milk to a turbine," Muller said. Taking the 'turbine's milk' to ASTM biodiesel requires further refining-EarthFirst says it knows how to get there using soybeans or corn, but Muller wouldn't say what steps it would take to further refine its palm oil-based, CAVD-derived fuel to ASTM biodiesel specs. 
 
 EarthFirst is capitalizing on two separate tracks of biodiesel production: One, harnessing current transesterification technology, and the other refining a technology to reduce production costs. Muller said once CAVD technology reduces its biodiesel production costs by one-third, the company would no longer depend on the U.S. excise tax credit currently being claimed by EarthFirst. 
 
 "This is so exciting," Muller told Biodiesel Magazine. "We're exporting manufacturing equipment developed here in the U.S. We're developing technologies, and we're also developing markets."
 
 The controversy
 The markets Muller alluded to have caused quite a controversy stateside, considering they are going to be supplied by imported biodiesel.
 
 The uproar appears to be multifaceted. On one hand, folks are upset over the possibility of imported biodiesel flooding the U.S. marketplace and displacing domestically sourced biodiesel. At the same time, importing biodiesel strips away the whole notion of building a domestic network of transportation fuels to help alleviate U.S. dependence on foreign oil, whether fossil- or vegetable-based. Furthermore, EarthFirst receives the $1 per-gallon U.S. biodiesel excise tax credit on all its imports currently being blended by EarthFirst across Florida and the Southeast. According to the language in the tax credit-a part of the U.S. energy bill passed by Congress and signed by President George W. Bush last summer-EarthFirst is legally entitled to receive the incentive, but at least one national trade association voiced its discontent in what ostensibly turned out to be a press release positional debate. 
 
 American Soybean Association (ASA) First Vice President Rick Ostlie, who will become ASA president in July, spoke to Biodiesel Magazine and explained his organization's position. 
 
 "When we supported the tax incentive, our intention was to reduce reliance on foreign energy. Not to allow U.S. subsidies for imported energy," Ostlie said. 
 The ASA has publicly stated its positions-namely regarding domestic, trade and tax credit issues-related to EarthFirst's actions discussed above. However, the ASA is concerned about one more thing, and that's the quality issue. According to Ostlie, the cloud point for palm oil-based biodiesel is 55 degrees Fahrenheit. If shipments of palm biodiesel untreated for cold temperatures are distributed in northern reaches where 55 degrees is considered a nice, warm day, performance issues could occur. Those issues could lead to bad biodiesel press and, perhaps, ultimately inhibit the renewable fuel's growing acceptance. "Obviously, this is a real problem-a real concern," Ostlie told Biodiesel Magazine. 

 
 The idea of a U.S. biodiesel shortage-the void from which EarthFirst said it's filling-is absurd to Ostlie. "There's no shortage," he said. "Part of the idea of the incentive was to build more plants [and] increase more soy [biodiesel] production. We want to get this industry established. We don't see a shortage."
 
 The National Biodiesel Board (NBB) has been relatively quiet on the issue of EarthFirst importing biodiesel. NBB CEO Joe Jobe offered Biodiesel Magazine no comment on the issue, instead referring to the NBB's official statement on the matter:
 
 "It is the position of the National Biodiesel Board that the list of 11 feedstocks available for the agri-biodiesel incentive was definitive. Imported palm oil should be eligible for the biodiesel incentive, but not for the higher agri-biodiesel incentive. The IRS (Internal Revenue Service) determined that palm oil does qualify for the agri-biodiesel incentive for purposes of the interim rule. However, the final rule [has] not been issued." 
 
 The statement recognizes that the NBB believes imported palm oil should be eligible for the 50-cents-per-gallon tax credit. Incidentally, EarthFirst is a full-voting member of the NBB. 
 
 As far as trade goes, the U.S. exports half of its soybeans every year, according to Ostlie. "The ASA is in favor of free trade," Ostlie said. "We have a few different options with how we would like to see this fixed, and we want the solution to be WTO- (World Trade Organization) compliant. We're meeting with Washington officials to look at certain issues." 
 
 In its Nov. 14 press release, ASA president Bob Metz stated, "ASA also calls on Congress … to support enactment of a tariff on imported biodiesel equal to the $1 per-gallon tax incentive for agri-biodiesel." 
 
 The Port of Pandora
 So which side is prowling around Pandora's box with a key? The ASA has a valid series of arguments, questioning what it believes could be the beginning of a very slippery slope. "If we wait a year to fix this, that's too long," Ostlie said. "This needs to be addressed now." 
 

 EarthFirst sees it differently. "To take those types of protectionist stances flies in the face of U.S. foreign policy for the last several years," Muller told Biodiesel Magazine. "Our government has been telling the world to free their markets, lift their sanctions. [To ban our imports], you'd have to change the entire commercial policy of the U.S. to succeed, and that would be like opening Pandora's box."
 
 EarthFirst's biodiesel importing has just begun. The first shipment arrived in November. The load was an introductory shipment of 267,000 gallons of palm oil-based biodiesel. By early January, the company will have received its second load of 1 million gallons. The company plans to receive and blend 100 MMgy by 2007. "Tampa's a good place to incubate our strategy and marketing program," Muller said. "We hope to see the program expand from Tampa logically to Jacksonville (Fla.), then to Mobile (Ala.), New Orleans, Houston, San Diego and Los Angeles terminals. We'll keep our marketing to the south, because of the cloud factor." 
 
 Imported biodiesel isn't just coming from EarthFirst and Ecuador though. Rothsay Biodiesel, a Canadian plant being commissioned near Montreal in Ville Sainte Catherine, Quebec, is currently operating at 25 percent capacity. Rothsay officials plan on exporting half the plant's full capacity of approximately 9 MMgy to U.S. markets, said Ron Wardrop, director of marketing and business development with Rothsay Biodiesel. That's 4.5 MMgy of imported biodiesel-agri-biodiesel made from virgin animal fats, for which the blender will be eligible for the full tax credit from the U.S. government-from one plant north of the border. "We have U.S. material coming into Canada now, [and] as much as we don't like it, we understand that import and export is a part of our business, and we have to compete in a worldwide market to be successful," Wardrop told Biodiesel Magazine. 
 
 From a U.S. biodiesel producer's point of view, Richard Vandevusse of Gladstone, Mich.-based Ag Solutions Inc.-another U.S. plant just starting production-offered his thoughts. "I'm mixed over it," he said. "As long as demand exceeds supply, we'll be importing oil or importing biodiesel. Not to mention, the petroleum industry receives government subsidies too." Of more interest to Vandevusse is the high cloud point, which he said could have significant ramifications on quality control and public perception of biodiesel. "Even if they market [palm biodiesel] in the South, a truck driver can fill up down there and not have to fill up again until Ohio, where the temperature could be much colder," he said. 
 
 "But what can be done to prevent this whole scenario?" Vandevusse asked. 
 
 The consensus seems to be that the U.S. government and its lobbyists have challenges to work through in addressing this looming trade issue, while at the same time reconciling their efforts not with WTO regulations alone, but also with the U.S. biodiesel industry, public acceptance and established precedence in U.S. foreign trade. n
 
 Ron Kotrba is a Biodiesel Magazine staff writer. Reach him at <a href="mailto:rkotrba@bbibiofuels.com ">rkotrba@bbibiofuels.com </a>or (701) 746-8385.

As the U.S. biodiesel industry works hard to meet the growing demand for its domestic product, EarthFirst Americas has begun importing palm oil-based biodiesel through the Port of Tampa, Fla. By 2007, the company plans to boost its imports to 100 MMgy-a number representing an astonishing one-half the U.S. biodiesel industry's projected output for that same year.

The Port of Pandora

Andrew Couch recently told a giggling group of seventh graders that he wants them to start bugging people.

 
 "When you go home and you talk to your parents-or when you get in your [family's] car-ask your folks about it," the representative of the West Tennessee Clean Cities Coalition told the kids. "[Ask them] 'Have you ever heard of this stuff? Why don't we have it? You guys are the ones who need to know about this stuff. If you are driving, then you need to know that there is an alternative to petroleum.'"
 
 Couch was one of several speakers hoping the 22 students in teacher Lynn Strong's Garden Club from Wonder Junior High School in West Memphis, Ark., would take home a dual message-the nation needs clean air and greater energy security, and biodiesel is part of the solution. The speakers and kids were assembled at Uncle John's restaurant in Crawfordsville, a tiny, farming-intensive community in Crittenden County, Ark. The event's organizer, Crittenden County Farm Bureau President Boyce Johnson, has been a tireless advocate of biodiesel. In 2004, he got most of the county's farmers to sign a pledge to use the alternative fuel in their operations. For this field day, he arranged for the kids to visit a soybean seed plant, as well as his own farm, and finally to stop at Uncle John's for lunch followed by a discussion about alternative fuels.
 
 The Garden Club is a first for the middle school. It is funded by allocations from the county Farm Bureau and a nonprofit group which funnels federal grants into extracurricular school projects. The students who participate do so on their own, taking part in activities after school. Strong said he hoped biofuels "is something that they have an interest in … [something] that's going to spark some growth in them." One bright student, Uniqua Woods, who proudly declared "I want to be a scientist," said she plans to go to Harvard University-and that her grades are good enough to get her there.
 
 The idea of crops being used to produce energy was new to many of the students. Although several were aware that ethanol is primarily made from corn, most knew very little about biodiesel. The issue is topical, because in 2004, Crittenden County and Shelby County, Tenn., including Memphis, were both declared to be non-attainment ozone regions. Local officials in both counties hope incentives-as opposed to mandates-for biofuels production and use will help clean up the air.
 
 Eddie Rawling, head of Crittenden County's Metropolitan Planning Organization, explained to the youngsters in simple terms how some measures were already being adopted to reduce hydrocarbon and NOx emissions. For example, the county employs more than 70 truck stop electrification units so truckers don't need to continuously run engines during breaks. Likewise, service stations have vapor recovery units to capture and return fumes as the tanks are refilled. "Saving energy is really important, and the less energy we use, the less pollutants are put out," Rawling said, adding that the county is excited about biodiesel. "It's cleaner burning, so therefore we don't get as much pollutants into the air."
 
 Johnson told the group that speakers at an Arkansas Department of Enviromental Quality (ADEQ) meeting had said the U.S. EPA "was almost to the point" of letting biodiesel qualify as an emissions controller, rather than mandate the retrofitting of engines with emissions control devices. "We're taking small, incremental steps-but that's a big one," he said. Johnson said ADEQ had also talked about recent research which demonstrated that biodiesel slightly reduces NOx emissions. This is contradictory to established research that shows that the alternative fuel increases NOx emissions. "[Biodiesel] lowers every other kind of emission," Johnson said. "If it would help us out on NOx, that would certainly be beneficial."
 
 The local authority on biodiesel is Gordon Petty, Crawfordsville operations manager for Ritter Oil Co., which has been blending biodiesel for its customers for three years. Petty conservatively estimated the company's two local affiliates had already blended 6 million gallons in the first nine months of 2005. "We buy B100 from our suppliers, and we blend it into the diesel at whatever percentage the farmer wants," he said. "Two percent is most common, but some want 5 percent or 20 percent-or even 99 percent." Biodiesel is a natural solvent and some say it can lead to the corrosion of rubber components in older vehicles, but Petty said farmers tell him, "Well, I'm going to burn it, and if I have to replace a hose, that's fine because it's not a big expense." 
 
 Farmers represent about 70 percent of Ritter Oil Co.'s biodiesel customers. The company's biggest industrial user is H&M, which has a railcar-switching operation in nearby Marion, Ark.

 
 Petty told the kids, "What we see at Ritter Oil Co. is a chance for us in the petroleum business to blend a product with our petroleum diesel that will help improve the environment. It'll help improve the performance of our tractors and our diesel engines … make them last longer. And hopefully, with the clean air problems that we have, I think it's probably going to be less expensive than we think it will be to use a blend of biodiesel." Petty said biodiesel could be used by Southern farmers who have thousands of irrigated acres that rely on diesel-powered pumps.
 
 Petty also pointed out that biodiesel boosts the market for local soybean farmers. One of them, Todd Allen of West Memphis, is also the New Uses Committee chairman of the United Soybean Board, which gets half of the 0.25 percent checked-off against all U.S. soybean sales-state boards get the rest-and uses it for market promotion and research. One of the new uses developed with the help of the checkoff is a soybean-derived oil for electric transformers. Allen said the biobased oil costs 20 percent more but extends the life of a transformer three to five times. "The potential market is 75 million gallons per year, which would equate to 50 million bushels of soybeans," he said. 
 
 Allen and Petty both said the surge in petroleum prices is driving demand for biodiesel. "Truckers are aware of the fact that right now they can buy biodiesel cheaper than they can buy petroleum diesel in most places, and it's made an impact on our truck business," Petty said. Allen explained that biodiesel is "coming on stream very fast, and the problem that we've had-we haven't been able to make enough." 
 
 Petty is critical of other oil companies for not following Ritter Oil Co.'s lead and offering biodiesel blends. "We have some in Arkansas that have, but they've been reluctant," he said. " ... The biggest problem that everyone's had is getting a supply, where you have it regularly so you won't disappoint your truckers who come off the road if they're depending on you having it. But the supply is getting better-they've got more manufacturers-and we've been able to keep it for our people."
 
 Petty said it's also cheaper to build a biodiesel plant than a refinery and cited the recent hurricane devastation as evidence that U.S. fuel production needs to be more spread out. Memphis only has one refinery, and the next closest is in Louisiana. "If we have these biodiesel plants where we can produce at least some energy-and they're scattered around the country-to me, that's also a national security issue," Petty said. 
 
 The local officials present during the field day were positive yet cautious about the prospects of a biodiesel plant being built. "Hope so," said Kevin Gallagher, the Clean Air Coordinator for Shelby County. "Memphis and Shelby County are well situated with the rail, truck and barge traffic. … If we can start our alternative fuels production and distribution now, as we move forward and as gas prices continue to rise, the demand is going to go up, and we'll have a real economic development opportunity there."
 Gallagher said the non-attainment status generates a demand to do something, whether it's biodiesel and alternative fuels, or some other opportunity. "There are stricter regulatory controls that we can put in place, but those would be restrictive to businesses," he said. "We would rather take an approach that can be an economic benefit, as well as being an environmental benefit."
 
 Johnson also said there have been rumors about a local biodiesel plant. "I think we're laying the groundwork right now for when a facility does come on line; we'll be ready to use it." Petty was tight-lipped about whether Ritter Oil Co. would be interested in a plant. "We're examining opportunities in the biodiesel business," he hinted. 
 
 At the end of the event, Couch showed the students a jar of biodiesel and handed them brochures that explained how the fuel is made. "Your chemistry teacher could make it in the lab," he said. Couch, who said his job is to "educate, outreach and let people know about these alternative fuels," likened the situation to hearing about recycling when he was in school. "They educated us on it; we went home and sweated our parents to death, and my parents started recycling, and it has become a national program," he said. "Ask them, 'Why don't we have biodiesel? Why don't we have ethanol?' And then hopefully, we'll be able to provide you with an answer in the next couple years. Or the next couple months, even."

 
 Gary DiGiuseppe is an Arkansas-based freelance writer. The last feature article he authored for Biodiesel Magazine, titled "Is Biodiesel Right for Arkansas?" was published in the December/January 2005 issue.

The 22 students in teacher Lynn Strong's Garden Club from Wonder Junior High School in West Memphis, Ark., were introduced to biodiesel-some of them for the first time-during a recent field day excursion. What the children learned has the potential to not only change the way they view transportation fuels and agriculture, but set the dreams of tomorrow's engineers, farmers and policy-makers in motion.

First Impressions

Hilton Hawaiian Village Beach Resort & Spa
 Honolulu, Hawaii
 The Biotechnology Industry Organization (BIO), in coordination with the state of Hawaii, the University of Hawaii, the Hawaii Life Sciences Council, Enterprise Honolulu and the Oceanic Institute, is proud to announce the first Pacific Rim Summit on Industrial Biotechnology and Bioenergy. Nations on both sides of the Pacific are increasingly looking for more sustainable sources of energy and cleaner, efficient methods of industrial production. The summit will bring together scientists, government, industry and investors from North America and throughout the Pacific Rim to detail advances and foster international business relationships to spur the emerging bioeconomy. The three-day event will provide a unique forum for interaction between North American and Asian businesses, governments and academics. 
 (202) 962-9200
 www.bio.org/pacrim/

Pacific Rim Summit on Industrial Biotechnology and Bioenergy

February 5-8, 2006
 San Diego Convention Center/
 Omni San Diego Hotel
 San Diego, California
 Judging from the 2005 meeting, the National Biodiesel Conference & Expo 2006 is sure to attract a record number of biodiesel marketers, consumers, feedstock growers, fuel distributors, government leaders and biodiesel users. Again in 2006, the National Biodiesel Board is planning a rich educational program featuring presentations and discussions from the industry's most influential and knowledgeable leaders. The conference will include an array of networking and social events, including a golf tournament, Super Bowl party and several informal gatherings, along with an expo containing more than 120 exhibitors. The conference includes more than 40 sessions covering everything from fuel quality standards, federal and state legislation updates, European marketing strategies and opportunities in the agricultural uses of biodiesel. Legendary musician Willie Nelson will also be taking part in the event.
 (800) 841-5849
 www.biodieselconference.org

National Biodiesel Board's National Biodiesel Conference & Expo

February 16-17, 2006
 Renaissance Belgium Hotel

 Brussels, Belgium
 This two-day event provides the opportunity for attendees to learn from more than 25 leading experts who will share their experiences in the biofuels markets. Topics include the market outlook for biofuels, a global market leaders update, biofuels project financing, biodiesel case studies and the next generation of biofuels. There will also be business development opportunities. Speakers include representatives from Neste Oil Corp., ExxonMobil Petroleum, World Energy Alternatives, the European Commission and the European Biodiesel Board. An additional Feb. 15 workshop titled "Planning and Financing Biofuels Projects" will provide an interactive guide to developing biofuels projects, covering risk, policy, investment models, financial structures and challenges in the development process.
 +44 870 758 7808
 <a target="_blank" href="http://">www.biofuelsmarkets.com</a>

Biofuels Markets

February 27-28, 2006
 Red Lion Hotel at the Park
 Spokane, Washington
 This sixth annual conference is the Pacific Northwest's premier event bringing together the agriculture and energy industries. The three-day event features plenary panels and breakout sessions covering issues related to project development, economic potential, legislation and financing, among others. Featured speakers include former CIA Director R. James Woosley, who now chairs the advisory boards of the Clean Fuels Foundation and the New Uses Council. Dr. James Fischer, senior technical advisor for the U.S. DOE's Office of Energy Efficiency and Renewable Energy, is also presenting. The conference brings together rural landowners, business leaders, agency staff and researchers to advance opportunities for agricultural producers and rural communities to profitably diversify into clean energy production and other markets.
 (360) 352-1763
 <a target="_blank" href="http://">www.harvestcleanenergy.org/conference/</a>

Harvesting Clean Energy Conference

March 2-4, 2006
 Anaheim Convention Center
 Anaheim, California
 The American Soybean Association and the National Corn Growers Association invite you to the largest agricultural convention and trade show designed specifically for corn and soybean growers. The Commodity Classic, which is celebrating its 10th anniversary, will provide a wealth of information about production, marketing, technology and issues that affect agriculture and profitability. The event will build upon its largest ever trade show in 2005 with over 150 companies in over 600 booths. Learn about new products, services and issues impacting the soybean and corn industries. The event also offers the opportunity to network with growers from across the country and interact with top agricultural industry leaders.
 (636) 922-5551
 <a target="_blank" href="http://">www.commodityclassic.com</a>

Commodity Classic

March 8-10, 2006

 Pointe South Mountain Resort
 Phoenix, Arizona
 This event, which offers a pre-conference workshop on renewable energy finance fundamentals, will explore the implications of the Energy Policy Act of 2005. The event is divided into two tracks: biofuels and power. The biofuels track examines deal structures and emerging technologies in renewable fuels. Attendees will learn about the risks in renewable energy projects, emerging technologies, transaction structures for biodiesel and ethanol, and federal and state finance and environmental incentives.
 (800) 280-8440
 <a target="_blank" href="http://">www.frallc.com</a>

Renewable Energy & Finance Investment Summit

The environmental benefits of biodiesel over petroleum diesel are many. Biodiesel emits 50 percent less smog-forming hydrocarbons than petro diesel. It emits virtually no acid rain constituents (i.e., sulfur). Potential cancer causing compounds are significantly less. Biodiesel is non-toxic and degrades four times faster than petro diesel.
 
 Despite these benefits, biodiesel, like other on-road fuels and fuel additives, must undergo environmental testing and registration before being commercially marketed.
 
 As a means of regulating emissions from mobile point sources, the U.S. EPA established requirements, pursuant to Sections 211(b)(2) and 211(e) of the Clean Air Act, for mandatory registration of fuels and fuel additives, including biodiesel. Requiring detailed analysis of new fuel or fuel additives, the regulations are set forth in 40 Code of Federal Regulations, Part 79. Fuels not sold into on-road markets (e.g., heating fuel, marine, etc.) are exempt from these regulations.
 
 In general, a biodiesel producer must register its product with the EPA in accordance with a two-part submission. The first is certain basic registration data for each product that includes, for example, a general description of the fuel's hydrocarbon composition, its characteristics, etc. More burdensome, however, are the information requirements of covering "Tier 1," "Tier 2" and possibly "Tier 3" testing and data submissions.
 
 Tier 1 submissions include published data regarding the product, and most importantly, its known health and welfare effects, toxicity data and similar literature. Tier 1 also will include a characterization of the constituents of combustion emissions of the fuel, if necessary. Finally, Tier 1 includes a discussion of potential population exposure to the emission based upon production and use of the particular fuel.
 

 Tier 2 testing consists of requirements designed to detect potential adverse health effects related to inhalation of the emissions, and entails detailed laboratory testing. When Tier 1 and Tier 2 data are complete, producers must submit the results to the EPA for evaluation. Based on these submissions, the EPA may order Tier 3 confirmatory studies for individual cases, focusing on areas of concern identified in earlier tiers.
 
 The EPA regulations recognize the magnitude of registration start-up costs and specifically allow for manufacturers to pool their resources and efforts through collective actions or trade groups. Under the regulations, producers can share their planning efforts, research capabilities and financial resources to satisfy the information gathering and testing requirements of EPA's registration program. Testing done by one selective representative of the group of manufacturers is submitted jointly for all members of the group, and costs are shared among members (including future members) to reduce the burden of compliance. In the case of biodiesel, the National Biodiesel Board (NBB) has already undertaken such collaborative efforts. As reported by Van Gerpen et al. in Building A Successful Biodiesel Business (January 2005), the NBB had, as of the date of that publication, expended $2.2 million on Tier 1, Tier 2 and Tier 3 testing. The NBB is presently the only organization to have submitted Tier 2 data on biodiesel to the EPA, which only NBB members can access for fuel registration purposes.
 
 Interested biodiesel producers should contact the NBB to find out how to participate in its group program. The EPA has accepted NBB data and has recently registered several new biodiesel producers under the program. The NBB has made its Tier 1 and Tier 2 health effects data available to members without charge; non-members must pay $100,000 plus twice the volume dues payable by NBB members for access to it.
 
 The EPA regulations contain two small business provisions relevant to biodiesel producers. A fuel manufacturer of a "non-baseline" fuel with annual sales of less than $50 million need only submit the basic registration data, not Tier 1 and Tier 2 data. Further, a small producer of an "atypical" diesel fuel can qualify for exemption from Tier 2 data submission (but not Tier 1) so long as its annual sales are less than $10 million. Tier 1 data collection alone can be expensive, costing between $100,000 to $250,000, but the requirement may be satisfied either individually or through participation in the NBB. Currently, the EPA classes biodiesel as an "atypical," not a "non-baseline," fuel, for technical reasons.
 
 The small business exemption regulations state that where subsidiary, division or other "complex business arrangements" exist, the "manufacturer," for purposes of measuring annual sales volume, will be considered the entity with "ultimate ownership" of all related parents, subsidiaries, divisions, branches or other operating units. While not artfully phrased in the rules, this provision is intended to prevent evasion of testing and data submission requirements by larger entities through separate affiliates. But it may also have the incidental effect of preventing a modest-sized enterprise (e.g., one with $40 million in total sales) from availing itself of the "under $10 million" exemption, and to that extent, hindering technical and entrepreneurial innovation in the field. 
 
 Authors Jonathan Scoll and Todd Guerrero are members of the Agribusiness and Energy Practice Group of Lindquist & Vennum, a leading provider of legal assistance on bioenergy projects throughout the country. They can be reached at (612) 371-3211.

An overview of biodiesel registration with the U.S. EPA

Legal Perspective

Canola has come on strong as an important oilseed crop in the northern region of the United States in the last decade. North Dakota leads the nation in canola production, growing over 1990s percent of the crop. Canola advanced quickly in the late 1990s as disease problems in cereal grains proliferated, creating the need for a rotational crop to break the cycle. Canola fit that need nicely, and as a result, production of the crop has increased from approximately 100,000 acres in 1996 to over 1 million acres today. 
 
 Increased production of canola is being driven by growing consumer demand for the healthy oil. Canola oil has the least amount of saturated fat of any vegetable oil-less than 7 percent-and has taken a place alongside olive oil on supermarket shelves. The same attributes that make canola oil such a healthy food also make it an ideal feedstock for biodiesel. It's a feedstock that results in a biodiesel that has excellent cold-flow properties. This is the main advantage of canola for biodiesel production. Another major advantage of canola is that it produces a very high amount of oil per acre. In fact, there have been projections made by people in the oilseed sector that there will be a great demand for a "true" oilseed for biodiesel production. A definition of a true oilseed is one which has oil as the main value component of the crop. Canola, which contains 42 percent oil, may be the oilseed people are looking for. 
 
 Two companies have announced plans to build biodiesel plants in North Dakota that will utilize canola. These are the first full-scale biodiesel plants in the nation to use the crop as a principal feedstock. Presently, canola grown in North Dakota is primarily crushed at two large processing plants-Archer Daniels Midland Co. in Velva (in the central part of the state) and Bunge in Altona, Manitoba (north of the border, above the northeast corner of the state). These two plants crush over 90 percent of the region's crop, and their capacity allows for further growth of the U.S. canola industry.
 

 Research on new canola varieties that may be ideally suited to biodiesel production is underway at research centers in North Dakota, Idaho and Montana. In North Dakota, over 
 40 different lines of canola are being tested, which may potentially deliver higher yields and higher oil content. Through technology initiatives, research in specific fatty acid profiles is also projected to start in 2006 to foster the growth of biodiesel production in the region.
 
 The northern region of the United States has ample room in the crop rotations to accommodate increased acreage of canola needed to supply the growing biodiesel sector. In North Dakota alone, canola acreage could increase to approximately 3.5 million to 4 million acres based on a four-year rotation. Shorter rotations could obviously allow for even more canola acreage. 
 
 Europe leads the world in biodiesel production with the majority of its production utilizing canola. In fact, the demand for canola oil in the European Union is so great that canola oil is being imported from Canada, Australia and China. This is quite remarkable given the fact that the EU produces over 17 million tons of canola annually and has traditionally been a net exporter of the crop. 
 
 Biodiesel offers great promise not only to the canola industry, but to the entire global vegetable oil complex in reducing our dependence on petroleum supplies while improving the profitability of farmers.
 
 Barry Coleman is executive director of the Bismarck, N.D.-based Northern Canola Growers Association, which works to promote and encourage the establishment and maintenance of conditions favorable to the production, marketing, processing, research and use of canola. Reach him at <a href="mailto:Coleman@ndpci.com ">Coleman@ndpci.com </a>or (701) 223-4124.

Canola: An Excellent Feedstock for Biodiesel

January 2006

Business Briefs

Webster offers bio pump

Interstates Companies wins awards for SoyMor work

Western Iowa Energy receives business award

Lindeman joins BBI International Project Development

Puri joins D1's jatropha research program

IRFA announces 2006 officers

VW uses new Corning particulate filter

BBI International Project Development division moves

Agco approves B5 blends in tractors

NewGen announces partnerships

Consolidated Biofuels completes merger

Columns

Editor's Note

NBB In Sight

Legal Perspective

Talking Point

Featured

It's Just Business

In the Public Eye

The Port of Pandora

First Impressions

January 2006.css-7jxktu{position:absolute;bottom:0px;left:0px;right:0px;height:3px;border-radius:3px;background-color:var(--chakra-colors-brandBlack);}

Business Briefs

Webster offers bio pump

Interstates Companies wins awards for SoyMor work

Western Iowa Energy receives business award

Lindeman joins BBI International Project Development

Puri joins D1's jatropha research program

IRFA announces 2006 officers

VW uses new Corning particulate filter

BBI International Project Development division moves

Agco approves B5 blends in tractors

NewGen announces partnerships

Consolidated Biofuels completes merger

Columns

Editor's Note

NBB In Sight

Legal Perspective

Talking Point

Featured

It's Just Business

In the Public Eye

The Port of Pandora

First Impressions

January 2006