Colorado-based Blue Sun Biodiesel commissioned its Alamosa, Colo., blending terminal Feb. 11, according to Blue Sun Director John Long. He also said a skid-mounted biodiesel production unit is currently being constructed that could begin production by July. Although a site hasn't been finalized, the unit is expected to be on a rail near the terminal, Long said. The 3-mmgy unit includes an oilseed crusher. Blue Sun will mainly utilize locally grown canola and mustard as as production feedstocks.

Blue Sun commissions blending terminal, looks toward protection

In Spain, the Gaiker Technological Centre is midway through a three-year study developing a process of heterogeneous catalysis, using new catalysts to enable the production of biodiesel from recycled oils or crops. Together with several partners, Gaiker is examining a new process of biodiesel manufacturing that simplifies the washing stages of the current process, reduces the consumption of chemical and waste substances, increases yields and decreases management costs.

Gaiker studies new processing techniques

Within a span of 11 days in early February, I had opportunities to attend both the National Biodiesel Conference & Expo and the National Ethanol Conference: Policy & Marketing. Hitting both events, back-to-back in the same year, clarified in my mind just how similar the U.S. biodiesel industry and the U.S. ethanol industry are. It also magnified the gap between them. 
 

 The similarities are obvious-both are clean, domestic renewable fuels that reduce harmful air emissions and decrease the nation's dependence on foreign oil … I'd be preaching to the choir if I continued. 
 
 Beyond the usual talking points, however, the comparisons become progressively harder to pinpoint. The U.S. ethanol industry produced nearly 3.5 billion gallons of fuel in 2004, while the U.S. biodiesel industry produced less than 30 million gallons. The United States is a gasoline-powered nation. We consume four times more gas than diesel, and the demand for oxygenated fuel has helped make the U.S. ethanol industry larger today than the U.S. biodiesel industry might ever be. 
 
 But here's the catch. 
 
 merica's 30-mmgy biodiesel industry drew more than 1,000 people to its second annual conference this year, about the same number of people who attended the National Ethanol Conference in its 10th year. In fact, the largest ethanol industry event in the world, the 
 International Fuel Ethanol Workshop & Expo, has never attracted more than 1,500 people (although it is expected to draw nearly 2,000 to Kansas City this July). 
 
 Why is attendance at these events disproportionate to the size and status of the industries they represent? 
 
 I think it's because biodiesel is simply more fashionable. Ethanol is arguably America's No. 1 renewable fuel, but it simply doesn't have biodiesel's pop-culture appeal. College students aren't forming ethanol clubs. There's no Willie Nelson Ethanol Co.-not yet anyway. 
 But the industry shouldn't take anything for granted. The industry needs to capitalize on its hip status. Build upon it. Keep the momentum going. Let popularity drive domestic demand-and start looking for really big conference venues. Trust me, the show's not gettin' any smaller.

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Editor's Note

The 2nd annual National Biodiesel Conference and Expo welcomed more than 1,000 guests to seminars and biodiesel networking in Ft. Lauderdale, Fla., on Jan. 31-Feb. 2. The conference also featured a full trade show, which had nearly doubled in size from the 2004 conference, to give attendees the opportunity to learn about the latest products, services and advances in the field. 
 
 Conference sessions and activities, held at the Broward County Convention Center and Marina Marriott, focused on new, cleaner diesel technology mandated by the U.S. EPA, but the conference also included a variety of technical, marketing, regulatory and user topics to the likes of distributors, marketers, consumers, technology providers and feedstock managers. Feasibility and investment, oil company acceptance, cold flow, and state and federal legislation were just a small sampling of conference topics. 
 
 
 Special conference events included:
 -Representatives from the IRS presented the most updated information on the new tax credit, explained how the program will work and answered questions. 
 -An appearance by Pete Bethune, former oil exploration engineer, who will lead the EarthRace expedition. The 
 biodiesel-powered wave-piercing vessel intends to set a new record circumnavigating the globe. 

 -A ride-and-drive of the much anticipated diesel-powered DaimlerChrysler Jeep Liberty CRD. Every new CRD off the production line will have a B5 factory fill. 
 -The University of Idaho hosted a workshop for school districts interested in using biodiesel in school buses to reduce kids' exposure to fumes. 
 -NBB hosted a free workshop for local boaters with the support of the South Florida Regional Planning Council, Coastal Fuels Marketing and the Gold Coast Clean Cities Coalition. This demonstrated increased availability of biodiesel in South Florida, as well as the marine benefits of the fuel. 
 -An appearance by Daryl Hannah, last year's winner of the Eye on Biodiesel "Influencer" Award. She presented the2005 award to Neil Young, who thanked the general session group by videotaped speech.
 -Emily Richards, an up-and-coming singer/songwriter and biodiesel activist, entertained the night owls at a networking opportunity. 
 
 Golf enthusiasts supported a biodiesel fundraiser by taking part in the golf tournament, the winners of which included the first place team of Andy Sprague, Eric Tom and Roger Hopcroft. They had a score of 62. Special hole prizes were awarded to Tom Bryan, closest to the pin on No. 4; Andy Sprague, closest to the pin on No. 6; John Long, closest to the pin on No. 12; Rudi Fisher, closest to the pin on No. 16; and Bob Gray, longest drive on No. 17.
 
 Generous sponsorships made the conference larger and more inviting to attendees. Sponsors included: U.S. DOE, NREL, West Central and Renewable Energy Group, World Energy Alternatives, GATX Rail, IFQC Biofuels, John Deere, USDA Agricultural Research Service, USDA Biodiesel Fuel Education Program, Ag Energy Work Group, Ag Environmental, BiofuelsMarketplace.com, Dallas Group, Fitzsimmons, M&W Contractors Inc., MARC-IV Consulting Inc., and Schaeffer Manufacturing Co.
 For more conference review, see page 22.
 
 Expo nearly doubles
 The 2005 National Biodiesel Expo grew almost two-fold, from 39 exhibitors in 2004 to 70 this year. Exhibitors includedtechnology providers, consultants, producers, to the scientific and original equipment manufacturers.

 
 "This was the best trade show, in terms of getting more customer leads, than any other trade show Schaeffer has exhibited at in my eight years of working for them," said Hoon Ge of Schaeffer Manufacturing Corp.
 Exhibitors made the following comments on how the expo compared with other exhibitions in which they had participated: "Greater interaction with end-users," "More new faces," "Excellent networking," and "Good attendance, especially and key personnel." Attendees said they liked the "wide range of exhibitors and wide diversity of attendees."
 
 Biodiesel awards recognize Neil Young, industry leaders
 An automobile manufacturer, school bus fleet manager, soybean organization, federal energy program and musician took home awards from the 2nd annual "Eye on Biodiesel" awards ceremony. NBB also presented a National Energy Leadership Award to Ohio Democratic Rep. Marcy Kaptur. 
 
 NBB designed the Eye on Biodiesel awards program to recognize individuals and groups who have significantly advanced the board's mission of public education and industry growth. The award categories and winners are:
 
 -Innovation-DaimlerChrysler
 DaimlerChrysler has taken the important initiative of fueling its new diesel Jeep Liberty CRD with B5 at the Jeep factory. Not only is DaimlerChrysler providing more vehicles that run on biodiesel, but it has also taken the strong step of filling them up with the blended fuel at the factory. DaimlerChrysler is the first automaker to show this level of support to biodiesel blends and promoting it to customers. 
 
 -Impact-American Soybean Association (ASA)

 The ASA is a membership-driven, grassroots policy organization that represents U.S. soybean farmers. ASA implements activities designed to increase demand for U.S. soybeans, and to educate and train producers to represent U.S. agriculture in Washington, D.C., and around the world, with biodiesel as a top priority. The ASA was instrumental in leading the campaign to pass the biodiesel tax incentive.
 
 -Inspiration-Joe Biluck Jr.	
 The director of Operations and Technology at New Jersey's Medford School District recognized the benefits of biodiesel seven years ago, when he led Medford to become the first school district to use biodiesel. Since then, Biluck has used B20 in his fleet of 65 buses and trucks. He often notes that drivers driving handicapped students found a noticeable difference in biodiesel fumes, as students are exposed for longer periods of time while loading and unloading near the tailpipe. Biluck spends his personal time educating other fleet managers 
 about biodiesel and champions the fuel to all. 
 
 -Industry Partnership-National Clean Cities Program
 The U.S. DOE's National Clean Cities Program has taken the word of biodiesel to energy decision-makers and promoted it in its network of more than 80 volunteer coalitions. It is unlike any other government program in its ability to disseminate biodiesel information in local communities, increasing biodiesel use and generating publicity for the fuel. The highly driven and dedicated Clean Cities' staff and coordinators develop public/private partnerships to promote alternative fuels and vehicles, fuel blends, fuel economy, hybrid vehicles 
 and idle reduction. Its overriding goal is to reduce petroleum consumption in the United States, and the group sees biodiesel as a critical component of success. The Clean Cities Program is within DOE's Energy Efficiency and Renewable Energy department. Shelley Launey, who has provided strong leadership for the organization for nearly five years, accepted the award. 
 
 -Influencer-Neil Young 
 The legendary singer/songwriter has shown outspoken sup-port for biodiesel and the family farm, articulately sharing his knowledge of the benefits of biodiesel with millions of Americans. Young used biodiesel during his Greenville tour and was instrumental in Farm Aid using the fuel in 2004, where he and Willie Nelson told thousands in attendance, It's clean. It's American grown fuel. It doesn't damage anything. This is so obvious." Young accepted the award by video.Last year's Influencer award winner, actress Daryl Hannah, announced this year's winner and introduced the video in person at the conference. "I'd like to thank the National Biodiesel Board for this great honor," Young said. "It's a way of life. It's a better way of moving around the planet."
 
 NBB presented Kaptur with the National Energy Leadership Award for her commitment to renewable energy and domestic energy security. She played a key role in opening doors that have led to the increased use of biodiesel, including her support of DaimlerChrysler's decision to fill every new 2005 Jeep Liberty CRD leaving the factory with B5. "I would like to thank Joe Jobe and the members of the National Biodiesel Board for this award," Kaptur said. "Biodiesel and other alternative fuels should be a national commitment. They provide an economic opportunity for our farmers, as well as a new product for our auto industry."

 NBB Executive Director Joe Jobe said, "I congratulate all of this year's winners and hope they are as honored by these awards as we are by their heartfelt commitment to biodiesel." 
 
 Plan now for San Diego in 2006
 Mark your calendar now for our 3rd annual Biodiesel Conference & Expo, on Feb. 5-8, 2006, in San Diego, Calif. The San Diego Convention Center and new Omni San Diego Hotel will host the event.
 
 Judging from the 2005 meeting, the 2006 National Biodiesel Conference & Expo is sure to attract a record number of biodiesel marketers, consumers, feedstock growers, fuel distributors, government leaders and biodiesel users. NBB is already 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 a popular expo featuring more than 70 exhibitors. 
 
 San Diego has 70 miles of beaches and a Mediterranean climate. Bordered by Mexico, the Pacific Ocean, the Anza-Borrego Desert and the Laguna Mountains, San Diego County's 4,200 square miles offer many options for those wanting to enjoy their conference getaway. The San Diego Convention Center and Omni San Diego Hotel are both within walking distance of the Gaslamp Quarter, which offers more than 100 restaurants, extensive shopping opportunities, attractions and cultural activities.
 
 See you at the industry's premier annual event!

Second annual biodiesel conference offers special workshops, biodiesel celebrities and fun

A biodiesel manufacturing company, Capital Technologies, is investigating a potential $10 million investment near the Valley Proteins plant on the five-mile long Neville Island in Pennsylvania. Neville Township engineer James Barrick said the solid catalyst process would not lead to foul odors or pollution. The facility would neighbor Valley Proteins, an animal rendering plant under fire last year due to strong odors emanating from the plant. Approximately 100 possible jobs could be created on the island, if the biodiesel plant is built.

Capital Technologies looks at Pennsylvania site

ClickableOil.com, based in Mount Vernon, N.Y., is now distributing bioheat to customers at their request. Bioheat, a mixture of B20 biodiesel and 80 percent low-sulfur heating oil, is available for the more than 2 million homes in the New York area that burn heating oil. The New York State Energy Research and Development Authority funded the introduction of bioheat to the area. ClickableOil.com joins Fred M. Schildwachter and Sons Inc. (mentioned in February's Biodiesel Magazine) in distributing B20 heating oil to the New York area markets.

ClickableOil.com delivers bioheat to NY markets

In the first quarter of 2005, 18 states have already introduced nearly 45 pieces of legislation involving either the incentive to produce or the requirement to use biodiesel, according to FarmWeek News. Biodiesel Magazine would like to touch on some of these measures currently being considered across the country.
 
 New York Gov. George Pataki pushed biofuels during his State of the State address in Albany. During his address, Pataki said, "I will sign an executive order requiring our state agencies to begin phasing in the use of biofuels to heat our state buildings and power our trucks." The executive order goes along with the New York Public Service Commission's adoption of a Renewable Portfolio Standard in 2004, which states 25 percent of the New Yorks's state's energy must come from renewable sources by 2013. Additionally, New York's Suffolk County Legislature 
 has unanimously passed Resolution No. 2070-2004, incorporating the use of B20 in diesel-operated vehicles at the Bergen Point Naval Ship Yard; the pilot program will be evaluated after one year. 

 
 Wisconsin Gov. Jim Doyle announced details of his Biofuels Initiative, in which he plans to budget $2 million for grants to be awarded to farmers and producers. Doyle's administration plans to establish the Consortium on the Biobased Industry, which would determine the "best practices" for development of biobased products. 
 
 Kentucky's Composite Energy Report (KCER) calls for an unspecified restructuring of the state's biodiesel production and usage incentives to promote "the production, consumption and availability of biodiesel" in the state. Implementing some of the KCER's recommendations, Gov. Ernie Fletcher signed an executive order Feb. 7, requiring the Transportation Cabinet (TC) diesel fleet to use B2. The same order directs the TC and the Finance and Administration Cabinet to develop procurement contracts, maximizing the market accessibility of B2.
 Indiana recently increased the cap on biodiesel tax credits for producers and blenders from $1 million to $5 million. A separate bill, AB1032, would require state agency vehicle fleets to use biodiesel blends whenever feasible. 
 
 Michigan is currently considering a bill modeled after Minnesota's pending B2 mandate, in which all diesel fuel sold in Michigan would be required to contain B2, said Dulcey Simkins of the Michigan Biomass Energy Program.
 
 The Oregon Environmental Council established the 2005 Biofuels Package, which proposes property tax exemptions for biodiesel production facilities, tax incentives for grower-owned oilseed crushing facilities, an incrementally increasing renewable fuel standard with the state diesel supply incorporating B5 by 2010, and fuel tax reductions proportional to the blend.

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State biodiesel legislation picks up

Four companies have begun selling biodiesel fuel at various pumps in Delaware, Ohio, Kentucky, Mississippi and California. Biodiesel Magazine highlights some of the new areas where the renewable fuel is available:
 
 Jackson, Miss.-based Earth Biofuels Inc. opened the first biodiesel pump in the state at its Byram, Miss., service station Jan. 18. The station currently offers B5 and will move to B20 in March, according to Tommy Johnson, Earth Biofuels secretary and treasurer. The company also recently signed a letter of intent to merge with Dallas Oil Co. Johnson said Dallas Oil will allow Earth Biofuels to sell biodiesel at 60 fuel stations nationwide. Earth Biofuels produces its own biodiesel, currently 2,000 gallons of recycled vegetable oil per month, at a skid-frame refinery in Meridian, Miss.
 
 In Laytonville, Calif., co-owners Kimber Holmes and Eric Vogt opened a public biodiesel pump at The BioFuel Station on Feb. 14. The station, 
 which previously sold biodiesel only in bulk, offers B100, allowing consumers to do their own blending. Holmes told Biodiesel Magazine approximately 90 percent of fill-and-go customers use B100 in their vehicles, while those who blend the renewable fuel typically do so at 50 percent. Yakayo Biofuels supplies The BioFuel Station with yellow gresase-based biodiesel, and Holmes is hoping to start distributing soy-based fuel. "[yellow grease-based biodiesel] is just what's available," Holmes said. The company plans to hold a grand opening for the pump March 18, also Rudolph Diesel's birthday.
 
 At Indian River Marina in Rehoboth Beach, Del., B20 will be available to the boating public. Park Superintendent and Marina Manager Gary King told Biodiesel Magazine a $35,500 grant from the United Soybean Board through the Delaware Soybean Association will cover the conversion of a tank and dispenser to fuel boats with biodiesel-blended fuel at the dock. "I think we're the first in the mid-Atlantic region to offer biodiesel to the boating public," King said. Currently, the marina is in the midst of a $20 million renovation. Once it opens April 15, biodiesel sales will begin. Peninsula Oil of Seaford, Del., is Indian River Marina's biodiesel supplier.
 

 Cincinnati-based Lykins Oil Co. has installed B2 pumps at four retail outlets in the local area, including across the border in Kentucky. After the pumps were added, company President Jeff Lykins said there was a 10 percent increase in diesel sales. "Consumers like it," he said. "Obviously, from the increase in sales, they want it." Griffin Industries and Peter Cremer supply Lykins with both soybean-based and recycled vegetable oil-based fuel.

The Biofuels Station in Laytonville, Calif.

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Biodiesel pumps continue to satisfy demand

D1 Oils plc, a United Kingdom-based biodiesel producer, announced its plans to expand production in Madagascar. The chosen biodiesel plant site is near 17,000 hectares (42,000 acres) of jatropha plantations. An additional 37,000 hectares (91,400 acres) is available in Africa, India and the Philippines. Oil from jatropha seeds can be extracted to produce biodiesel. D1 Oils will collaborate with business-to-business aid agency Business and Market Expansion (BAMEX) of Madagascar on the project.

D1 Oils expands to Madagascar

World Energy Alternatives LLC has added another important producer to its growing biodiesel distribution network. Dow Haltermann Custom Processing (DHCP) is producing biodiesel exclusively for World Energy at its Houston, Texas, location.
 World Energy and Dow announced the production agreement Jan. 17.
 
 DHCP is a Dow business unit comprised of operations within the Dow Chemical Co. and Johann Haltermann Ltd. Dow is the world's largest chemical producer.
 
 The existing multi-purpose facility began producing biodiesel in October, according to DHCP Commercial Director Ed Greene. He said the plant is currently producing approximately 12 mmgy with the intention of doubling production before the end of the year.
 Greene said this was the first time Dow Haltermann had produced biodiesel, although the company has worked with similar chemistry in converting fatty acid methyl esters. "[DHCP] does custom processing throughout the chemical industry," Greene said. "We are accustomed to large-scale production, and producing biodiesel fits our business model well."
 
 Gene Gebolys, World Energy president and founder, noted the significance of the plant's strategic location along the Houston Ship Channel on the Texas Gulf Coast. The site provides access to water, rail and major highway transportation. "It's right on everyone's shipping lane," Gebolys said. "It's a very good location to ship to for the rest of the country and the world."
 
 The Houston plant's crude glycerin is being refined at World Energy's Lakeland, Fla., glycerin refinery.
 Greene said producing biodiesel fits in well with the Dow outlook. "Dow Chemical is very involved in sustainable development and alternative energy initiatives," he said.
 
 "It's an important initiative for both companies," Gebolys said. "Dow takes their role in dealing with the environment and conservation very seriously. This project for them is an opportunity to be part of a growing industry and do the right thing environmentally."

World Energy partners with Dow

Ranging from B2 to B100, more biodiesel blends are being burned by growing fleet numbers, fueling the demand for the increasingly popular renewable fuel. Here are some of the latest fleets converting to biodiesel:
 
 In Suffolk County, N.Y., state legislature unanimously passed Resolution No. 2070-2004, incorporating the use of biodiesel in a one-year pilot program. The program would implement a study of B20 in all diesel-operated vehicles at the Bergen Point Naval Ship Yard. Emissions reductions, including further NOx abatement, will be analyzed. Results will be available one year after the program's initiation, according to the resolution.
 

 In Warren, Vt., the Sugarbush Resort is making use of a $2,500 Vermont Sustainable Jobs Fund grant by using B20 in its plowing and grooming equipment. 
 
 Kentucky Gov. Ernie Fletcher signed an executive order Feb. 7 that ordered the use of B2 in the Transportation Cabinet's diesel vehicles. Kentucky's energy plan calls for B20 in school buses statewide.
 
 In Kingsport, Tenn., the Eastman Chemical Co. plans to have more than 200 of its diesel fleet running on B20 by April 1. The company will use in excess of 60,000 gallons this year, said Darren Curtis, fleet administrator and staff engineer for Eastman's Kingsport site. Also, 
 according to the East Tennessee Clean Fuels Coalition, the Aluminum Company of America's Tennessee branch is putting B20 in 550 of its diesel commercial vehicles and industrial equipment. 
 
 Evergreen FS in Bloomington, Ill., will be supplying the Normal, Ill., city fleet of 100 vehicles with B2. Normal will use approximately 67,500 gallons of the biodiesel annually, said Mike Hall, Normal public works director. Twenty-one Illinois school districts already burn biodiesel in school buses across the state.
 
 In Wichita, Kan., 75 vehicles and generators are now running on B20 at Boeing. Additionally, Allen County's Unified School District 257 is making the switch to B2 for its school buses. The Allen County Farm Bureau will help pay the difference in price for the biodiesel during the first three months of use.
 
 In Tulare County, Calif., plans are in place to fuel 220 heavy-duty work vehicles with B20. Silvia Oil of Fresno will be providing the biodiesel, said Dan Hurt, fleet manager for the county.
 -Staff Report

A biodiesel-burning snow plow at the Sugarbush Resort in Vermont.

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From Vermont , fleet biodiesel use on the rise

On Jan. 10, West Coast Reduction Ltd. announced it would begin biodiesel distribution from Vancouver, British Columbia. West Coast Reduction operates various rendering plants in Western Canada. The company is also planning to produce biodiesel, according to Grant Saar, biodiesel salesman for West Coast Reduction. Three of the company's existing rendering facilities are being considered, including the Vancouver site. Financing is in place, and production technology has been chosen. Capacity could range from 10 million liters (2.64 million gallons) per year to 40 million liters (10.6 million gallons) per year.

West Coast Reduction starts biodiesel distribution

Out of the 17 North American universities that are participating in General Motors' (GM) Challenge X: Crossover to Sustainable Mobility in 2005, 12 of the projects will use biodiesel as its preferred fuel, according to Bob Larsen, director of the Center for Transportation Research Energy Systems Division.
 
 Competing Challenge X schools design vehicle solutions that will minimize energy consumption and reduce emissions in a three-year process that started in fall 2004. The first year will focus on research and vehicle design. Once a team's design is selected and approved, the team can obtain hardware, develop software, perform subsystem testing and design a plan to integrate their design into a GM-provided Chevrolet Equinox. The second year will involve integration, powertrain development and demonstration of energy use and emissions goals, while the third year allows for further refinement of the vehicle. Teams will be judged on their execution, progress toward meeting Challenge X goals and the ability to predict their performance using math-based tools.
 
 Michigan Technical University, University of Akron, Pennsylvania State University, University of Michigan, University of Tennessee, Rose-Hulman Institute of Technology, West Virginia University, University of Tulsa, San Diego State University, Mississippi State University, Ohio State University and University of Wisconsin-Madison listed biodiesel as their primary fuel in initial student vehicle architecture selections, gathered Jan. 27.

Students use math-based modeling in the first phase of Challenge X.

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Challenge X projects favor biodiesel

Seattle Biodiesel LLC began testing its biodiesel production process in mid-February and plans to begin providing biodiesel to the Seattle, Wash., area soon, according to John Plaza, Seattle Biodiesel president and founder.

 
 The plant is expected to initially produce 2 mmgy and ramp up to 5 mmgy within two years. Feedstock will consist of virgin oils from various sources, with an attempt to use canola and mustard from the local region as the main source. 
 
 The production unit is located within a large warehouse in the industrial area of Seattle. Plaza said the building has good access to freeway arteries and barge traffic. There is also a rail spur specific to the building.
 Plaza said he had been looking at an alternative energy project for several years. Biodiesel made the most sense because it functions as a drop-in fuel.
 
 Puyallup, Wash.-based Saybr Contractors began constructing the facility in March 2004. Saybr company partner Mickey McAloon said that tanks and several other items for the plant were salvaged from a defunct local brewery. "There were some issues with recycling used products into a different application," McAloon said. "We had to make sure the products and the tanks were compatible."
 It was the company's first time building a biodiesel plant, McAloon said. Saybr has previously worked on petroleum stations and compressed natural gas operations.
 
 The plant will also be using a process technology developed by Greenline Industries LLC, a joint venture between Bio-Energy Systems LLC and Seattle Biodiesel LLC. According to Plaza, the technology allows for high rates of production and a lower entry cost for a facility compared to existing processing technology. He also said that biodiesel meeting or exceeding ASTM standards could be produced from multiple feedstocks. Another benefit is the lack of re-introducing water into the biodiesel for the washing stage, Plaza said.
 
 "It's efficient and has a small footprint," Plaza said. "It's a cost-effective manner to produce biodiesel. It provides the ability to produce in a small- to medium-sized facility."
 
 Seattle Biodiesel is awaiting final permitting. "By establishing a biodiesel production facility here in the city, Seattle Biodiesel is well-placed to provide a steady and high-quality source [of biodiesel] for the region," Plaza said.
 Los Angeles-based Baker Commodities Inc. is also considering the possibility of building a biodiesel facility in the Seattle area.

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Seattle Biodiesel begins biodiesel production

In January, the USDA released its Crop Production 2004 Summary, which tallied the year's soybean production at 3.14 billion bushels, the largest U.S. soybean crop in history. The 28 percent increase was attributed to adequate moisture and mild temperatures during the growing season. A total of 74 million acres were harvested out of 75.2 million acres planted. The average yield per acre was approximately 42.5 bushels, an 8.6 bushel increase from 2003. Fourteen individual states recorded record high yields.

2004 soybean crop largest ever

The Massachusetts Division of Energy Resources (DOER) will hold a meeting in late April to discuss the potential of biodiesel heating oil applications, otherwise known as bioheat. A firm date had not been established at press time. DOER spokesman Jan Gudell said the U.S. DOE-funded event will be used as a forum to "explore options and dispel myths" about biodiesel as Massachusetts reportedly considers a voluntary transition to low-sulfur heating oil. "They are going at it cautiously," Gudell said. "But they think it's an option worth looking into."

Massachusetts bioheat meeting scheduled

Biodiesel shared the spotlight with ethanol, wind and hydrogen at Renewable Energy in the Upper Midwest in Grand Forks, N.D., on Feb. 23-24. The event was hosted by the University of North Dakota's Energy and Environmental Research Center (EERC) and drew approximately 400 participants. 
 
 A biodiesel-focused session featured presentations from Leland Tong of Marc IV Consulting and Wayne Seames of UND's Department of Chemical Engineering. 

 
 While less than 30 million gallons of biodiesel was produced in the United States in 2004, Tong said the nation currently has the capacity to produce 169 mmgy. Citing an industry report, he said U.S. demand for biodiesel could grow to 300 mmgy by 2012. 
 
 According to the USDA, actual production could go as high as 124 million gallons in the next few years," Tong said. "I personally think it could go even higher than that, depending on crude oil prices and feedstock availability."
 
 Seames, an associate professor of chemical engineering at UND, is working in conjunction with the EERC to develop a unique form of biodiesel that could be blended with aviation jet fuel. While the project is still in the early stages, Seames and his colleagues have already tested various blends in a helicopter turbine engine. 
 
 "We found that the combustion performance and emissions criteria can be met by soy methyl esters," he said. "It looks promising." 
 Seames said the ubiquitous cold flow challenge is a primary stumbling block. "At 30,000 feet, you don't want to take any chances," he said. 
 In addition to analyzing various cold flow additives, Seames said the research team is currently analyzing various crop oils that might have highly suitable characteristics for this particular application. Evening primrose and cuphea are among the most promising plants. However, the most realistic near-term solution is to make chemical modifications to soy methyl esters and other existing crop oils. 
 
 If the team is able to find a market for its biodiesel jet fuel, Seames said a production plant specifically dedicated to the product would likely be built in North Dakota. He believes the plant could produce the fuel at a competitive price. 
 
 "My 'back of the envelope' calculations show that we could produce this fuel for $2.10 per gallon," Seames said.

Biodiesel jet fuel discussed at energy conference

In December, the Brazilian government put forth regulations that allow distributors to blend and sell B2 nationwide, in preparation for the blend becoming mandatory in 2007. If successful, the program may raise the blend to anywhere from B5 to B20 by 2012. 
 
 Having established a framework to integrate biodiesel into the national fuel supply, Brazil's next step will be to ramp up production to supply the pumps of distributors such as BR Distribudora, the distribution arm of Brazil's state-run oil giant Petrobrás.
 

 The nascent biodiesel industry hopes that the program will ultimately follow the country's model ethanol program, which requires a 20 percent to 25 percent ethanol blend in gasoline sold at the pump, depending on the year's cane crop output.
 
 The lower House passed the biodiesel decree, which already has the force of law, late in 2004. Final passage of the measure is still pending but expected to clear a Senate and full Congressional vote, and a final signature by President Luiz Inacio Lula da Silva. The president's center-left government is pushing the program as a way to provide income to small family farms in poor areas.
 
 R Distribudora, Brazil's largest fuel distributor, is preparing to invest $20 million Brazilian reals ($1=BRL2.60) in 2005 to build storage tanks 
 with 18,000 cubic meters (18 million liters, 4.76 million gallons) capacity for the fuel.
 "By February, the company will be fitted to receive, store and sell biodiesel in Belém and by July in other regions," BR President Rodolfo Landim said.
 
 The Agropalma plant in Belém, Para state, will be up and running Mar. 1 to supply the northern region of the country, according to Agropalma General Manager Cesar Augusto Modest.
 
 In addition to BR, other distributors are also interested in our product," Modesto said.
 Likewise, Brazil's Ministry of Science and Technology expects commercial production of biodiesel to begin in July at the Brasil Ecodiesel plant to supply the major hubs in the northeastern region including the cities of São Luis in Maranhão state, Teresina in Piauí, Fortaleza and Crato in Ceará, and Salvador and Jequie in Bahia.
 
 Production and supply of the center-west and southeast, the most populated and industrially developed region of the country, is forecasted for August when the Ecomat plant in Mato Grosso state is set to come on line. Around the same time, another plant is due to go on line in Londrina, Paraná, in the southern region.
 
 Energy Minister Dilma Roussef said she expected production to reach 800 million liters (211 million gallons) in 2005. Brazil's National Economic and Social Development Bank (BNDES) approved a credit program in December to finance the green fuel's production.
 "Brazil has a large number of products, such as soybeans, sunflower seed, castor beans and palm oil with which to produce biodiesel," Agriculture Minister Roberto Rodrigues said. 

 
 In addition to lowering emissions, use of locally produced biodiesel would also reduce diesel imports, estimated at 6 billion liters (1.6 billion gallons) annually or about 16 percent of total diesel consumption in the country.
 
 Elizabeth Johnson is a freelance writer who has lived in Brazil periodically since 1986. She can be reached by e-mail at <a href="mailto:eajohnson@uol.com.br.">eajohnson@uol.com.br.</a>

Oil from palm tree fruit can be extracted for use in biodiesel production.

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Brazil's BR Distribudora ready to sell biodiesel, awaits supply

One source of entertainment among the staff at the National Biodiesel Board (NBB) is to lampoon the endless string of overused buzzwords in business today (e.g., "thinking outside the box to facilitate synergistic paradigms"). The term "metrics" is a word in this category that we have high hopes may someday reach the status of "win-win" or "parking-lot issues." The term "metrics" is often used in the management of projects or programs to describe a measure of performance or a milestone. In an effort to help this promising term realize its true potential as a legitimate overused buzzword, I would like to highlight this concept in examining the challenges we face in the months and years ahead.
 
 We were elated in February 2004 when 575 people showed up in Palm Springs, Calif., for the inaugural National Biodiesel Conference & Expo. The show was so well received that we were a little worried about how we would follow it in 2005. That question was answered last month when well over 1,000 participants gathered in Ft. Lauderdale, Fla. This is an example of positive "metrics" for the biodiesel industry and portends tremendous growth for the future.
 
 This year's conference rivaled, in number of attendees, a comparable conference in the ethanol industry, which is more than 100 times larger than the biodiesel industry. During one of the biodiesel conference sessions, a speaker asked how many people in the room were interested in getting involved in the production of biodiesel. By some guesses, more than 300 people raised their hands. In an industry with 20 production plants, that's an alarming amount of interest breaking into the business. 
 
 The new tax credit surely has generated much of the interest and enthusiasm about biodiesel production. We're about to enter an era of growth, and while we may experience growing pains, we certainly won't be the first to do so. Perhaps there are some historic parallels from which we could glean some valuable lessons from our brothers and sisters in the ethanol industry. 
 
 Immediately following the enactment of the first ethanol excise tax exemption in the late 1970s, there was a mad dash to build ethanol plants and get ethanol into the marketplace. Lack of expertise by some producers, and lack of an industry quality system, allowed low quality ethanol-and in some cases, methanol-to be sold as "gasohol." Consequently, in those early days, there were production and handling issues that hurt the reputation of ethanol's quality as a fuel. Although those issues have long been addressed, and the U.S. ethanol industry does a superb job of managing quality, it has taken them more than 20 years to overcome the reputation from some of those early experiences. Some negative memories still linger today.
 
 This leads us to a popular subject for biodiesel lately: fuel quality and BQ-9000. Consistent fuel quality is a "metric" of the ethanol industry. In the biodiesel industry, BQ-9000 is the program that can earn us that "metric". It is a national quality assurance program developed to help biodiesel producers and marketers implement a system of ensuring that a high level of quality is maintained throughout the production and distribution stream. The program has just recently been optimized in a way that will streamline the administrative requirements and enhance its effectiveness. The program contains two available credentials: accredited producer and certified marketer. You can learn more about BQ-9000 at <a target="_blank" href="http://">www.biodiesel.org/</a>BQ9000. 

 
 Dedication to producing quality fuel transcends size and scale. Whether a company is producing 15,000 gallons or 15 mmgy of biodiesel, their commitment to making biodiesel available to the public that meets ASTM D-6751 should be the same. However, the size of their quality assurance resources may be different. This is because they have similar testing, development and registration costs to spread across less gallons of fuel. That is why the NBB Governing Board approved a plan last year that provides a special incentive for small producers to participate in BQ-9000. Small Producer Associate members of NBB can apply two years' worth of their dues toward registration costs associated with BQ-9000. It is very important that biodiesel producers and marketers of all sizes embrace this program as an investment in the future of our industry. It is good to talk about fuel quality, but now is the time for action. BQ-9000 is that action. 
 
 We must continue doing everything that we can to keep our industry "metrics" moving forward. Next year's conference will take place Feb. 5-8 in San Diego, Calif. I hope you will mark your calendar and join us in order to help achieve your own biodiesel metrics.
 
 Joseph Jobe
 National Biodiesel Board
 Executive Director

Industry "metrics" on the rise

strong>Plan now for San Diego in 2006
 Mark your calendar now for our 3rd annual Biodiesel Conference & Expo, on Feb. 5-8, 2006, in San Diego, Calif. The San Diego Convention Center and new Omni San Diego Hotel will host the event.

 
 Judging from the 2005 meeting, the 2006 National Biodiesel Conference & Expo is sure to attract a record number of biodiesel marketers, consumers, feedstock growers, fuel distributors, government leaders and biodiesel users. NBB is already 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 a popular expo featuring more than 70 exhibitors. 
 
 San Diego has 70 miles of beaches and a Mediterranean climate. Bordered by Mexico, the Pacific Ocean, the Anza-Borrego Desert and the Laguna Mountains, San Diego County's 4,200 square miles offer many options for those wanting to enjoy their conference getaway. The San Diego Convention Center and Omni San Diego Hotel are both within walking distance of the Gaslamp Quarter, which offers more than 100 restaurants, extensive shopping opportunities, attractions and cultural activities.
 
 See you at the industry's premier annual event!

strong>Plan now for San Diego in 2006

An automobile manufacturer, school bus fleet manager, soybean organization, federal energy program and musician took home awards from the 2nd annual "Eye on Biodiesel" awards ceremony. NBB also presented a National Energy Leadership Award to Ohio Democratic Rep. Marcy Kaptur. 
 
 NBB designed the Eye on Biodiesel awards program to recognize individuals and groups who have significantly advanced the board's mission of public education and industry growth. The award categories and winners are:
 
 -Innovation-DaimlerChrysler
 DaimlerChrysler has taken the important initiative of fueling its new diesel Jeep Liberty CRD with B5 at the Jeep factory. Not only is DaimlerChrysler providing more vehicles that run on biodiesel, but it has also taken the strong step of filling them up with the blended fuel at the factory. DaimlerChrysler is the first automaker to show this level of support to biodiesel blends and promoting it to customers. 

 
 -Impact-American Soybean Association (ASA)
 The ASA is a membership-driven, grassroots policy organization that represents U.S. soybean farmers. ASA implements activities designed to increase demand for U.S. soybeans, and to educate and train producers to represent U.S. agriculture in Washington, D.C., and around the world, with biodiesel as a top priority. The ASA was instrumental in leading the campaign to pass the biodiesel tax incentive.
 
 -Inspiration-Joe Biluck Jr.	
 The director of Operations and Technology at New Jersey's Medford School District recognized the benefits of biodiesel seven years ago, when he led Medford to become the first school district to use biodiesel. Since then, Biluck has used B20 in his fleet of 65 buses and trucks. He often notes that drivers driving handicapped students found a noticeable difference in biodiesel fumes, as students are exposed for longer periods of time while loading and unloading near the tailpipe. Biluck spends his personal time educating other fleet managers 
 about biodiesel and champions the fuel to all. 
 
 -Industry Partnership-National Clean Cities Program
 The U.S. DOE's National Clean Cities Program has taken the word of biodiesel to energy decision-makers and promoted it in its network of more than 80 volunteer coalitions. It is unlike any other government program in its ability to disseminate biodiesel information in local communities, increasing biodiesel use and generating publicity for the fuel. The highly driven and dedicated Clean Cities' staff and coordinators develop public/private partnerships to promote alternative fuels and vehicles, fuel blends, fuel economy, hybrid vehicles 
 and idle reduction. Its overriding goal is to reduce petroleum consumption in the United States, and the group sees biodiesel as a critical component of success. The Clean Cities Program is within DOE's Energy Efficiency and Renewable Energy department. Shelley Launey, who has provided strong leadership for the organization for nearly five years, accepted the award. 
 
 -Influencer-Neil Young 

 The legendary singer/songwriter has shown outspoken sup-port for biodiesel and the family farm, articulately sharing his knowledge of the benefits of biodiesel with millions of Americans. Young used biodiesel during his Greenville tour and was instrumental in Farm Aid using the fuel in 2004, where he and Willie Nelson told thousands in attendance, It's clean. It's American grown fuel. It doesn't damage anything. This is so obvious." Young accepted the award by video.Last year's Influencer award winner, actress Daryl Hannah, announced this year's winner and introduced the video in person at the conference. "I'd like to thank the National Biodiesel Board for this great honor," Young said. "It's a way of life. It's a better way of moving around the planet."
 
 NBB presented Kaptur with the National Energy Leadership Award for her commitment to renewable energy and domestic energy security. She played a key role in opening doors that have led to the increased use of biodiesel, including her support of DaimlerChrysler's decision to fill every new 2005 Jeep Liberty CRD leaving the factory with B5. "I would like to thank Joe Jobe and the members of the National Biodiesel Board for this award," Kaptur said. "Biodiesel and other alternative fuels should be a national commitment. They provide an economic opportunity for our farmers, as well as a new product for our auto industry."
 NBB Executive Director Joe Jobe said, "I congratulate all of this year's winners and hope they are as honored by these awards as we are by their heartfelt commitment to biodiesel."

Biodiesel awards recognize Neil Young, industry leaders

The Anamax Group of Companies in Green Bay, Wis., and Sanimal Inc. in Montreal, Quebec, announced the signing of a merger agreement Jan. 18. The two companies, both leaders in rendering, are combining resources to take advantage of strategic opportunities in the industry. 
 "Because the foundations of our two companies are similar-both family-owned with mirroring corporate values-the merger will be seamless," said Mike Langenhorst, president and CEO of the Anamax Group of Companies. "Together, we will be able to continue to live the corporate vision that our company has embraced since 1881."
 
 Andre Couture of Sanimal will be the chairman of the newly merged organization; there won't be any changes in regional management or operations. Martin Couture continues as president of Sanimal. "This exchange of knowledge and technology is truly a case where one plus one will equal three," Andre Couture said.
 
 Anamax recycles animal and food byproducts into tallows, greases, proteins and more. Sanimal serves the agribusiness industry worldwide with production and services in collection, processing, enhancement and marketing of animal byproducts, grain and grain byproducts.

Amamax, Sanimal merge

BBI International Inc. is celebrating its 10th year serving the renewable fuels industry in 2005. The company now has four North American offices offering conference and event planning, project development, publishing and recruiting services. BBI's conference services division will be administering the 2006 National Biodiesel Conference in San Diego, Calif. BBI's project development team is a leading resource for biodiesel projects throughout North America. The publishing division produces Biodiesel Magazine and a Biodiesel Industry Directory. BBI Biofuels Recruiting delivers high-quality staffing services and the resources required to achieve companies' staffing goals within budget and on schedule. BBI Biofuels Canada also recently opened a permanent office in Kitchener, Ontario.

BBI celebrates 10th anniversary

Jeff Kistner joined BBI International as vice president of Project Finance on Feb. 1. Working out of Omaha, Neb., his primary duties include obtaining financing for ethanol and biodiesel projects BBI develops with investment groups primarily in North America. Kistner will also be developing comprehensive financial services for biodiesel plants and other agriculture processing businesses. Kistner previously worked as a business development officer for CoBank's Commercial Agribusiness Division in Omaha.

Kistner joins BBI

The BBI International Publishing Division hired two people to help with advertising and writing. Linsey Hegvik joined BBI as publication sales assistant. She works with Matt Spoor, advertising manager, in advertising sales and marketing. She earned a Bachelor's degree in Mass Communication and a minor in Business Administration from North Dakota State University in Fargo, N.D.
 

 Ron Kotrba joined the BBI editorial team as a staff writer. He will cover various ethanol and biodiesel issues in both Ethanol Producer Magazine and Biodiesel Magazine. Kotrba was previously an advanced engineering laboratory technician for a major automotive supplier's Emissions Control division. He earned a Bachelor's degree in Interdisciplinary Studies in Social Science from Michigan State University.

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BBI hires Hegvik, Kotrba

North Texas Bio-Energy LLC (NTBE) of Dallas and CANMET Energy Technology Centre, a research arm of Natural Resources Canada, have entered into a licensing agreement for NTBE's use of CANMET's patented Super-Cetane technology. CANMET's cetane improver is a biodiesel additive used to lower NOx emissions. The additive is made from a variety of feedstocks, but the catalytic hydrotreating results in a high cetane product, said Dan Foster, managing director of NTBE. In using this additive, biodiesel producers can market their product in "non-attainment" cities, or cities where air pollution like NOx exceeds acceptable levels, as designated by the U.S. EPA.

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NTBE gains rights to market CANMET's cetane additive

Greenline Industries LLC, a joint venture between Bio-Energy Systems Inc. and Seattle Biodiesel LLC, has expanded its line of modular biodiesel processing equipment. In late January, the start-up company announced that it has developed-and now offers-a 20,000-gallon-per-day production unit, the largest of four models manufactured by the company. According to Greenline President John Plaza, all four units are capable of producing ASTM D6751-compliant biodiesel from a variety of feedstocks. More information about the company is available at www.greenlineindustries.com.

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Greenline Industries debuts new production unit

Concerned citizens in the greater Puget Sound area of Washington have united to promote the use of biodiesel in school buses. The Breathable Bus Coalition, formed in late 2004, has taken action by working with schools, educating consumers and working with legislators to exempt school bus fleets from a special fuels tax on biodiesel. The group has about 25 active members, including University of Washington student Ravi Mikkelsen. Mikkelsen also helped launch the National Collegiate Biodiesel Consortium, a group that ties together biodiesel programs at universities and research labs across the nation. Visit <a target="_blank" href="http://">www.students.washington.edu/
 fryfuel/ncbc </a>and<a target="_blank" href="http://"> www.breathablebus.org </a>for more information.

Breathable Bus Coalition rolls into action

The Iowa Soybean Association (ISA) and Iowa Soybean Promotion Board have merged. The organizations' boards of directors voted in favor of the changes and will continue to do business under the ISA name. Previously, the two boards of directors each had 17 members; the new board will have 21 members and four committees-supply, demand, communication and policy-comprised of 10 members each. Each board member will serve on two committees. The state legislature must approve the merger in the upcoming session. For more information on either group, visit <a target="_blank" href="http://">www.iasoybeans.com</a>/.

Soybean groups combine resources

The BioEnergy Producers Association (BEPA) announced Jan. 14 that various California biobased industries have joined forces in the power, fuels and biomass fields in order to "more effectively inform and advise policymakers on the broad-based environmental and economic benefits of bioenergy and bioproducts," said James L. Stewart, chairman of BEPA. Former state Sen. David Roberti was elected president of BEPA, who said that one of the biggest goals BEPA would like to achieve is promoting "the development of a comprehensive bioenergy policy that prioritizes biobased industry growth."

California bioindustries come together

If the U.S. biodiesel industry is truly in its infancy, finding a venue large enough to hold the National Biodiesel Conference & Expo in the years ahead could become an appreciated challenge for the National Biodiesel Board (NBB). More than 1,000 people attended the association's second annual event, nearly doubling the attendance number from 2004. 
 
 Does this wave of new interest in biodiesel indicate that the young industry could be at a major turning point-a pivotal moment in its history? NBB Executive Director Joe Jobe stated so in no uncertain terms. "2004 was a turning point for the American biodiesel industry," he said. "2004 became the year that the American biodiesel industry realized that we're not just a silly little experiment in energy. We're a real fuel. We're a real industry. We're here to stay and we are going to make a very significant contribution to America's energy supply."
 
 That turning point was evident not only by the record attendance Jan. 30-Feb. 2 at the Greater Fort Lauderdale/Broward County Convention Center in Ft. Lauderdale, Fla., but by the overwhelming support for the industry expressed by vehicle manufacturers, politicians and health officials. 
 
 Support came from individuals like Bailus Walker, past president of the American Lung Association of the District of Columbia and one of the nation's top health officials, who said biodiesel use should be seriously considered in areas with air quality issues. Walker reviewed biodiesel health research prior to approving the D.C. Lung Association's launch of a biodiesel education program in conjunction with the NBB. "What we do here today and how well we move forward with biodiesel … will be judged on how effective this product is in improving air quality, and preventing disease and dysfunction and premature death," Walker said.

 
 There is less than 30 mmgy of biodiesel being produced right now in the United States. Scientists are still validating the effects of burning the renewable fuel. Producers are enhancing the production process with new and innovative technology. The industry still has its challenges, mainly establishing a market and finding suitable feedstocks and potential markets for glycerin. "I think every industry has a point where it struggles along for a certain amount of time and then it begins to get traction-it builds momentum and then it reaches a critical mass and just really establishes itself as a true effort," Jobe said.
 
 It's clear biodiesel is doing just that. The U.S. government is beginning to realize what impact the biodiesel industry can provide. The JOBS bill, passed in October 2004, was a major step in embracing the fuel. It may be the first of many.
 
 "People say the [biodiesel] industry shouldn't be subsidized," said Congresswoman Marcy Kaptur, D-Ohio. "They seem to forget, according to the accounting office, that the United States has spent over $130 billion over the last three decades in subsidies to the oil industry … Even as we sit here today, we hear more for coal, oil and nuclear energy in the energy bill than for biofuels." 
 
 Kaptur said that petroleum imports into the United States have nearly tripled since 1983. If the past year is any indication, North American biodiesel production could be in for a similar ride.
 
 "Growth has come in all different quarters-fuel producers, fuel marketers, renderers and recycling people, support industries, other feedstocks and … consumers that are talking about the benefits of biodiesel," said Darryl Brinkman, NBB chairman. "We can bring biodiesel to the forefront for our energy independence."
 
 'Nothing runs like a Deere … with biodiesel.'
 While John Deere's famous slogan, "Nothing runs like a Deere," isn't changing, the contents of the equipment manufacturer's fuel tanks is. The company announced that starting March 1, it would begin filling the fuel tanks of vehicles constructed at John Deere's factories in Waterloo, Iowa, and East Moline, Ill., with B2. The company will start the factory fill with tractors and combines before moving into construction equipment, said Don Borgman, manager of market planning and customer integration at the John Deere Ag Marketing Center.
 John Deere isn't the only major agriculture equipment manufacturer accepting biodiesel use. Case IH approved the use of blends up to B5 in its line of tractors in 2004.
 

 Borgman said that John Deere has been working with NBB in an attempt to promote B2 on a broad basis, including all diesel engines and home heating oils. He said the B2 decision was boosted by the tax credit passed in the JOBS bill.
 
 "The tax credit helped," Borgman said. "It made this a lot more viable. But we have had an interest in biodiesel for quite some time."
 Ed Hegland of the Minnesota Soybean Research & Promotion Council said, "John Deere did not get on the bandwagon … it backed up to the wagon and started pulling it. They are setting a new standard."
 
 Regional sources-such as those on the East Coast-would supply biodiesel, Borgman said. He said John Deere would prefer to purchase fuel from a BQ-9000 accredited producer, but only if it is readily procurable. 
 
 John Deere has also done extensive testing on B5. Borgman said the decision to use B2 doesn't back off the company's commitment to B5. He said it's the first step to the use of higher blends. 
 
 Liberty and biodiesel for all
 "DaimlerChrysler's strategy is fairly simple and straightforward," said Bill Craven, manager of regulatory and technical affairs for DaimlerChrysler Corp. "It's fuel efficiency-in terms of our engines, our vehicles and the fuels we choose."
 
 Craven said DaimlerChrysler has a multi-pronged strategic plan. First, the automaker is trying to make small steps in fuel efficiency. Second, it is implementing new diesel technology, as has been done in Europe, which would open doors for biodiesel. Third, it is actively implementing a hybrid vehicle program launch. 
 
 The automaker has an aggressive alternative and renewable fuels strategy that rounds off its strategic approach. Craven said DaimlerChrysler views U.S. diesel market growth, especially in the light-duty vehicle sector, as a major new opportunity. "If we had the same diesel market share in this country as we have in Europe, we would save over 800 million gallons of oil a year … just by changing the engine and utilizing the existing fuel out there."

 
 Craven believes building such a market in the United States is possible. "But the real question is, 'will customers accept diesel engines in light duty vehicles?'" he said. "[Diesel engines] have a bad reputation. We need a reeducation of the public. This test with Jeep Liberty is truly a test … to get through to the people."
 
 DaimlerChrysler is factory filling its diesel-powered Jeep Liberty CRD with B5. The plant is located in Toledo, Ohio. Kaptur, a longtime advocate of biodiesel, championed the automaker's announcement of the factory fill. "The opportunity that is staring us right in the face is not seen by the majority of American people," Kaptur said. She predicted the biofuels industry in America would be the first new growth industry that will move the nation toward economic independence.
 
 Craven said the automaker is conducting a study on B20, and as long as the company is assured that fuel quality standards are implemented and met, DaimlerChrysler will continue to examine the possibility of using higher biodiesel blends in its vehicles. In fact, the idea of getting B20 approved for a factory fill in both the Jeep Liberty CRD and diesel Dodge Ram pickups is gaining momentum, although Craven was unable to confirm the automaker's future plans.
 
 Also, Mercedes Benz, part of the DaimlerChrysler umbrella, is waiting on the approval of injector manufacturer Robert Bosch GmbH to approve B20 in certain diesel models. Craven said a "very rigorous review process" is underway. "We are fairly confident that they will come through and suggest that B20 can be used," he said.
 
 In Germany, DaimlerChrysler has invested in technology that produces biodiesel by converting biomass into a synthetic gas through the Fischer Tropsch process. "For biodiesel from virgin soybean oil, for every unit of energy you put into it, you get 3.2 units back," he said. "The process that we are invested in in Germany … our estimates are about 10 to 1, with energy out versus energy in."
 
 TransMontaigne adds B100
 Colorado-based petroleum supply chain management company TransMontaigne will be integrating biodiesel blends into its fuels at one of its south Florida terminals. Rick Eaton, executive vice president of supply chain services for TransMontaigne Product Services, made the announcement.
 
 "We're very optimistic about biodiesel, but we also wanted to be very realistic about the development, intergration costs, capital costs and the overall economic viability," Eaton said. 
 

 TransMontaigne is integrating B100 supplied by Peter Cremer North America LP into its 2,200-acre Port Everglades Coastal Fuels terminal. Eaton said the Port Everglades terminal is south Florida's largest distribution center for petroleum products and covers a 12-county area.
 The terminal will have rack-blending capabilities, allowing TransMontaigne to offer a variety of blends ranging from B1 to B100. The project, which should be completed in April, involves revamping the facility and adding B100 storage space.
 In addition to offering biodiesel to the general marine segment in south Florida, TransMontaigne plans to use biodiesel blends in its own tug and barge operations.
 
 Finding feedstocks and a market for glycerin
 Legislation aside, project developers are asking two important questions about the growing number of proposed biodiesel projects in the 
 United States: What is the feedstock availability, and what markets are there for glycerin?
 
 For answers to those questions, producers in the United States can learn a lesson from their more seasoned counterparts in Europe. According to Raffaelo Garofalo, secretary general of the European Biodiesel Board, the biodiesel producers in the European Union are already looking for international markets for glycerin. The EU currently has 25 producing member-nations.
 
 Even with the limited amount of biodiesel being produced in the United States, the glycerin market is becoming saturated. Biodiesel producers consisted of 11 percent of the glycerin sources in the United States in 2001. That number has certainly increased in the past four years.
 
 New markets for refined glycerin are needed and it's possible that government intervention may be needed to boost those markets, according to Mack Findley, North American sales manager for Peter Cremer. Findley predicted that de-icing fluids might hold a strong future using glycerin. He also suggested a proposal to Congress to direct biodiesel glycerin to non-traditional markets such as animal feed. 
 Findley warned against using the current market price for glycerin when considering building a biodiesel plant. Glycerin prices have dropped sharply in the past 10 years.
 
 Feedstocks are another concern. Garofalo said oilseed production in Europe isn't expected to increase much in the long term, and plans to boost energy crop production haven't been effective. 

 
 John Campbell, vice president of Ag Processing Inc., estimates that the domestic supply of economically available raw material could produce between 130 mmgy and 260 mmgy of biodiesel in the near term. His long-range estimates, taking into account the availability of soybean acres, soybean oil content and increased domestic soybean crush amount, among other issues, could reach nearly 4 billion gallons per year. That amount is approximately 10 percent of transportation diesel fuel use in the United States.
 
 Campbell's estimates didn't take into account yellow grease or palm oil imports. 
 
 Michael Haas, a research chemist for the Fats, Oils and Animal Coproducts Research Unit at the Eastern Regional Research Center, has conducted research on biodiesel production through soy flakes using in situ transesterification. Soy flake methyl esters met or exceeded ASTM standards in the study; however, production costs were an issue.
 
 Haas also noted the susceptibility of other lipid-bearing materials to in situ transesterification. Preliminary results showed that distillers grains with solubles (DDGS) contained 12 percent oil with 71 percent conversion to fatty acid methyl esters. The process is, in effect, producing biodiesel from corn oil. Haas said biodiesel facilities could benefit from locating near ethanol plants. He said about 200 mmgy of biodiesel could be produced from the current DDGS amounts in the United States.
 
 "This offers the potential feedstock windows we've never considered before," Haas said.
 
 Racing around the world on B100
 A former oil exploration engineer is aiming to break a world record with the help of biodiesel. Pete Bethune is attempting to break the world speed record for circumnavigation of the globe with a powerboat. The current record is 75 days. Bethune's goal is 60 days. "The most important thing is that the fuel will be B100," Bethune said.
 
 Bethune's project, EarthRace, will feature a wave-piercing boat fabricated mostly of carbon and Kevlar, that will cover more than 24,000 nautical miles around the globe. Bethune said the boat is the first to be powered by carbon drive shafts. The boat is considered a wave-piercer, meaning it travels through larger waves instead of over the top of them. "Visually, it's a very stimulating project," Bethune said. "And we are hoping to transfer part of that imagery onto biodiesel."
 

 Biodiesel Magazine featured another circumnavigation voyage in its February issue. The Sunrider expedition circled the globe on B100 in 1994 in a 24-foot, soft-sided Zodiac boat.
 
 EarthRace has taken three years to reach its culmination. Construction on Bethune's boat began in January. He expects to be water-ready by July. A promotional tour will cover North America and Bethune is asking for sponsorship to fund the project or the biodiesel itself. "We can't do this alone," he said. "We've committed our life savings to it. ... It would be great to get some support from people."
 More information about the project can be found online at www.earthrace.net. n 
 
 Dave Nilles is a Biodiesel Magazine staff writer. Reach him by e-mail at <a href="mailto:dnilles@bbibiofuels.com ">dnilles@bbibiofuels.com </a>or by phone at (701) 746-8385.

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The 2005 National Biodiesel Conference & Expo, America's premier biodiesel event, was a vibrant showcase of industry progress, and a forum for thought-provoking discussions centered on 
challenges, solutions and growth.

Turning Point

World Energy Alternatives LLC has earned the distinction of being the nation's largest biodiesel supplier by focusing on the development of new biodiesel customers throughout the country. Since 1994, the company has developed the nation's largest multi-plant, multi-region, multi-feedstock supply network. 
 
 The Purada Processing facility in Lakeland, Fla., has served as one of the most important components of World Energy's production network since 2000. The company took full ownership of the plant in 2004, keeping the facility in its portfolio to maintain supply stability. Since taking control, World Energy has accelerated production and initiated a capital program to modernize the facility. 
 
 The abilities to refine crude glycerin and produce biodiesel from multiple feedstocks are becoming key components for America's new generation of biodiesel plants, according to World Energy President Gene Gebolys. The Purada facility, the only commercial-scale biodiesel plant in Florida, has given World Energy a valuable production asset-not only for biodiesel, but also for refined glycerin. 
 
 Managed by World Energy subsidiary Purada Processing LLC, the plant's feedstock adaptability and glycerin handling capability are second to none. In fact, a recent upgrade made the facility the nation's largest multi-feedstock biodiesel plant in the United States. Gebolys believes this important distinction gives his company an edge in an increasingly competitive market. "This plant has been-and is-critical to our success because it is so versatile in terms of feedstock capability and glycerin margin optimization," Gebolys said. 
 
 Now, the company is looking to take the next logical step with the facility. "We are at our best when we are building new markets and aggregating new demand in this fast growing and dynamic market," Gebolys said. "If the right situation presents itself, we will move to put the plant in the hands of a strong and stable production oriented company so that we can focus on our core competencies." Instead of directly managing the facility, he intends to focus resources and personnel on what the company does best-moving more biodiesel than any other company in the nation. 
 

 Growing the production network
 Starting in the mid-1990s, the Lakeland plant's founders raised and spent more than $20 million building the facility. The plant began producing small amounts of product in 1997 for the then-infant biodiesel industry. 
 
 In 1998, Gebolys spun the biodiesel division of methyl ester-producer Twin Rivers Technologies into a stand-alone company named World Energy. The new company was based on Gebolys' idea of launching biodiesel not through production, but through the establishment of an aggressive marketing and distribution company (see profile in October/November 2004 issue of Biodiesel Magazine).
 
 A year after forming World Energy, Gebolys took his first look at the Lakeland plant. He recognized the value of producing large-scale amounts of biodiesel from multiple feedstocks. Gebolys was convinced that a multi-feedstock approach could fulfill his company's coverage of different markets, and the respective needs of those markets.
 
 In the summer of 2000, World Energy entered into an off-take agreement with the plant's owners to sell all of the plant's output. Within two years of entering the agreement, the plant became one of the largest biodiesel producers in the United States. By mid-2003, however, the plant was struggling to keep up with the industry's growth. 
 
 World Energy took over the facility in early 2004 and initiated a revitalization program. The plant continued to provide the company with biodiesel production and glycerin refining capability, and connected World Energy to the industrial side of the business.
 
 A continuous production process
 Purada Processing General Manager Blake Winslow has been with the plant since the late 1990s. While the plant's maximum output is currently 18 mmgy, Winslow said feedstock type and quality influence the plant's production speed and throughput. There is about 100,000 gallons of feedstock oil storage on site, according to Winslow. Much of the feedstock is shipped into the plant via rail. 
 
 Once feedstock reaches the facility, Winslow said a staff of four operators per shift is able to keep the plant running smoothly. The plant produces biodiesel in what Winslow calls a "continuous batch sequence." While the biodiesel itself is produced in a batch process, the batches are continuously moved through the production process. For example, when one batch of product leaves the catalyst-mixing stage, another batch falls in behind it.

 
 Another unique feature of the plant is its use of a biodegradable heat transfer fluid, provided by Paratherm Corp. "We choose to use a biodegradable oil because everything in the facility is biodegradable," Winslow said.
 
 Multi-feedstock, prime location and versatile
 One of the unique characteristics of the Lakeland plant is also what makes it a leader in the U.S. biodiesel industry. As the nation's largest multi-feedstock biodiesel facility, the plant has handled feedstocks ranging from waste vegetable oil and poultry fat, to corn, canola and soy oils. "It's the only plant of its size focused on taking in any feedstock at the front end and producing high quality methyl esters from them," Gebolys said.
 
 The plant's location in the Southeast puts it in a prime location to receive a variety of those feedstocks. Soybean crushers in Georgia provide soy oil. There are several poultry operations throughout the Southeast. The tourism industry provides a steady supply of yellow grease. The plant is located just one half hour from Tampa and an hour from Orlando-home to Walt Disney World, a steady producer of yellow grease.
 
 The plant's yellow grease capability will become increasingly important, according to Gebolys. He predicts that should the USDA's Commodity Credit Corp.'s Bioenergy Program payments cease-they are currently slated to end in fiscal year 2006-feedstocks such as yellow grease will become increasingly important. "You can't be stuck in one feedstock commodity," Gebolys said. "Feedstock versatility is the single most critical determinant of supply stability and risk mitigation." 
 
 Glycerin refining an asset
 New and potential biodiesel producers in the United States and across the globe are facing the challenge of what to do with crude glycerin formed as a byproduct of biodiesel production. Gebolys feels an increased supply of crude glycerin will soon outpace refining capabilities.
 
 An oversupply will naturally cause the value of refined glycerin to fall. However, it won't fall as quickly as the value of crude glycerin, Gebolys pointed out. "There is so much volatility in the markets today, people are holding off putting refining capability in their biodiesel plants," Gebolys said. "That makes that existing capability all the more valuable, especially since the Florida plant is designed to handle crude from biodiesel."
 

 The Lakeland plant opened the doors to its glycerin refinery in 2000. Typically, Winslow is looking for glycerin in the 85 percent to 90 percent glycerol range-product that contains no methanol and very little water. However, the Lakeland plant is capable of handling less desirable crude.
 
 Purada currently refines crude glycerin from other biodiesel plants. The laboratory analyzes every shipment of feedstocks and crude bottoms that enter the plant. It's a process that ensures that "even poor quality crude glycerin can be turned into high-quality refined glycerin," according to Winslow.
 
 "Ultimately that is why people that want to produce larger volumes of biodiesel need to have an alliance with a glycerin refiner," Winslow said. "Crude bottoms are a liability to them."
 
 In order to have the glycerin refinery running at maximum capacity, the plant has brought in crude glycerin from outside sources. If the on-site biodiesel plant is running at 18 mmgy, it can fulfill the glycerin refinery's needs. The refinery typically produces 10 million pounds of 99.7 percent kosher refined glycerin.
 
 
 Finding the right fit
 Winslow has seen the Lakeland plant's evolution, from its start to becoming one of the nation's leading producers of biodiesel. He is appreciative of the stability World Energy has brought to the facility.
 
 Since taking full ownership at Lakeland, World Energy has upgraded the glycerin facility and streamlined the biodiesel plant. Gebolys focused first and foremost on the safety and environmental aspects of the operation.
 
 "They invested money to get the plant into a better operating condition," Winslow explained. "World Energy has provided a better benefits package and has certainly [been] able to make sure that all of the product has moved into the market."
 Now Gebolys is committed to putting the plant's future in good hands. Gebolys said his goal has always been to ensure that the plant is owned by a company with a demonstrated commitment to high quality production. "We can provide the built-in off-take for the plant's output," he said. "It's just a matter of finding the right fit with an owner/operator." 

 
 The desired result would be similar to what World Energy is accomplishing throughout its biodiesel distribution network. World Energy recently signed an exclusive production agreement with Dow Haltermann Custom Processing, a branch of the Dow Chemical Co., to produce biodiesel in Houston. The company continues to expand its nationwide network of biodiesel producers and distributors. The concept of moving quickly is part of World Energy's culture, Gebolys said. 
 
 "[World Energy] will do whatever is necessary, naturally, to expand its market," Winslow said. "It is a company that is always looking for opportunities and alliances with others in order to promote that." n
 
 Dave Nilles is a Biodiesel Magazine staff writer. Reach him by e-mail at <a href="mailto:dnilles@bbibiofuels.com ">dnilles@bbibiofuels.com </a>or by phone at (701) 746-8385.

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The Lakeland plant's finished biodiesel storage tanks.

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The plant has roughly 100,000 gallons of feedstock oil storage.

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Last year, a leading U.S. biodiesel supplier rejuvenated one of the largest dedicated biodiesel production facilities in the nation. World Energy, owner of the 18-mmgy Purada Processing facility in Lakeland, Fla., now has another important objective-finding a 
company willing to take over production.

Drivers Wanted

For 20 years, Willie Nelson has been one of the most recognizable advocates in support of American family farmers. As founder and president of Farm Aid, Nelson has perpetually been involved in campaigns spotlighting the plight of the increasingly marginalized family farm, holding benefit concerts and raising funds to help sustain a quickly changing way of life. Now, the legendary troubadour has a whole new approach to promoting American farm life, marketing "farm fresh" BioWillie diesel to truck stops, where the potential for high-volume sales to diesel-rig driving truckers is complimented with expanded markets for farmers, cleaner burning diesel fuel for truckers, and solace for both environmentalists and proponents of U.S. energy independence.
 
 Legendary roots
 Although Nelson first heard of biodiesel in Hawaii when his wife bought a diesel vehicle burning the fuel, the Willie Nelson Biodiesel Co. is a newly formed partnership, the idea of which first came to mind just a few months ago, according to partner Peter Bell, a South African automotive engineer-turned-businessman who lives in Dallas. Bell is CEO of Distribution Drive, a biodiesel distribution company and exclusive supplier of biodiesel for the Nelson-backed start-up. Distribution Drive supplies biodiesel to several locations in the Dallas area, three of which are tailored for end users of B100. "Willie was bringing his tour bus through Dallas, and I had never heard of the guy before," 
 Bell admitted in his charming, South African accent. "My wife told me who he was, and we filled his bus for him."
 
 Bell's introduction to Nelson planted a seed for the concept of establishing the business. With Bell at the helm of supply, Nelson's longtime friendship with Carl Cornelius, owner of the renowned Carl's Corner Truck Stop south of Dallas (near Hillsboro, Texas., on Interstate 35, Exit 374), facilitated the rapid realization of dispensing the proposed company's uniquely branded product at the retail level. 
 
 Cornelius said he has known Nelson for years. "I met Willie a long time ago, when he was too clean-cut for me," Cornelius joked. Cornelius bought the truck stop in 1979 from Monk White, a Dallas financial broker. When White heard Cornelius' plans of turning the place into the Taj Mahal of truck stops-not to mention an incorporated town of its own-it didn't take an arm-twisting for White to become financier of what has become more of a country club for truckers than just a fueling station with a rest stop. Carl's oasis offered amenities likely found at no other truck stop, including whirlpool spas, a swimming pool, and a strip club. The truck stop burned down in 1990, and owner Cornelius did not carry fire insurance. With help from fans and friends, including Nelson, Cornelius rebuilt the place of Texas legend. Sadly, the manager of Carl's Corner Truck Stop, Cornelius' son, Kyle, passed away three years ago leading to the discontinuation of operations like the truck stop's well-known strip club. However, the infamous Texas hotspot now carries BioWillie diesel, Willie Nelson Biodiesel Co.'s B20 blend. 

 
 Nelson, Bell, Cornelius and White solidified the partnership in December 2004 and went public with both the partnership and the company's product in January. The company has its "corporate headquarters" at the legendary Carl's Corner Truck Stop. 
 
 Business model to envy
 From a product marketing perspective, BioWillie diesel is an advertising dream. At two months old, both the company and its product have received amazing notoriety at little or no advertising cost.
 
 "We threw our hat in the ring in early January, then [an] Associated Press [story was picked up by] over 2500 publications," Bell said. "Word got out. You can't ask for better outreach than that. Then we did the interview with Dan Rather on the CBS Evening News on Wednesday (Feb. 9), because we wanted people to actually see the product, to see Willie using biodiesel." 
 
 "Our business model is 'Buy local, sell local,'" Bell continued, voicing a message that is consistent with classic Nelson, the tireless family farm crusader. The company doesn't produce its own biodiesel, but purchases it from local producers whose product meets industry standards. "We are a marketing and distribution company that wanted to create a brand name that truckers could relate to, and the average trucker can relate to Willie Nelson," Bell said. "It's like having Tiger Woods talk about golf clubs." 
 During Nelson's peak Farm Aid years in the late 1980s, a less known event was held at Carl's Corner. Willie's Annual Fourth of July Picnic was held at the truck stop in 1987, mainly to create awareness for the seldom-recognized truckers, who deliver the goods and services many Americans take for granted. 
 
 "I think the industry-the biodiesel industry-is too focused on the farmers and the production side of things, so we want to really relate our product to the mainstream, the truckers who will be using the product," Bell said. The company's focus on selling the cleaner burning fuel to end users like truckers, in effect, closes the loop between Nelson's longtime support of farmers, who grow the crops to make the fuel; the biodiesel industry, which creates a demand for the farmers' products; and the large, diesel consuming trucker population. 
 
 The Willie Nelson Biodiesel Co. is making its products and services available to truck stops nationwide, but Bell and his associates are immediately focused on the Texas and Illinois markets. 
 
 "The reason we like Illinois is that the Lt. Governor Pat Quinn is a big proponent of biodiesel," Bell said. "We are developing a marketing program with them to encourage the use of biodiesel in that state."

 
 Although Carl's Corner is currently the only carrier of BioWillie diesel, the company has set the stage for the marketing and distribution of a B5 blend, aboveground storage/dispensing tanks and entire truck stops. Bell said that the Willie Nelson Biodiesel Co. is making a strong push for the marketing of B5 rather than B20 because B5 is a subtler blend, and its integration into potential diesel fuel supplies is a more realistic, short-term marketing goal. "B20 is too big a leap for most, so outside of Carl's Corner, we will be working on introducing a B5 blend," he said. 
 
 Bell wants BioWillie to have widespread brand recognition and greater market penetration. "Now we are starting to regionalize partnerships with various biodiesel factories, vehicle manufacturers and outlets," he said.
 
 The company is reportedly in negotiations with an Oklahoma-based chain retailer to carry BioWillie diesel at its 169 locations nationwide. Current regional supply constraints might hinder the company's "buy local, sell local" business model if these negotiations lead to a deal. However, with biodiesel production on the rise nationwide, the Willie Nelson Biodiesel Co. will find it easier to buy from local distributors and stay true to its roots. 
 
 Customer satisfaction and Texas acceptance
 "We have been trying to work with a major oil company," Bell said. "In talking with them, we mentioned how customers that use our BioWillie diesel tell us that their engines run so much smoother, the fumes are much cleaner smelling, and they feel good about using the product. This has got to be quite the contrast from what most petroleum oil companies must hear from their customers."
 
 Feedback from customers at Carl's Corner Truck Stop, according to Bell and Cornelius himself, has been totally positive. "I believe Texans actually prefer biodiesel," Bell said. "They see biodiesel as a premium fuel."
 
 Of all the states, Texas is most associated with the oil industry. With a long history of "Texas Tea" tycoons coming out of the Lone Star State, one might think Texans would be a hard sell when it comes to biodiesel. Not so, according to Bell.
 
 "Texans are misperceived by people all the time," he explained. "Texas is seen as backwards by many people outside the state, but actually, Texas is a very progressive state. Texas has no state tax on biodiesel."
 Bell continued to explain why Texans accept the idea of biodiesel by saying, "In Texas, we have the left-wing, 'tree-hugger' types who support biodiesel because of the environmental concerns, and we have the right-wing types-like in Austin, for example-who support biodiesel because it is home-grown fuel, and it allows us to become less dependent on foreign oil. They call it 'the Republic of Austin' for a reason, you know."

 
 When asked whether or not this business venture of promoting BioWillie diesel-and the company itself-will be profitable, as well as one about which Nelson remains passionate, Bell wittily responded, "I think the biodiesel industry needs to move away from being passion-driven and [place itself] on a financial footing to become an economically sustainable and profitable business. Yeah, we'd like to make some money at this. Passion only goes so far." 
 
 Ron Kotrba is a Biodiesel Magazine staff writer. Reach him by e-mail at<a href="mailto: rkotrba@bbibiofuels.com "> rkotrba@bbibiofuels.com </a>or by phone at (701) 746-8385.

Bell (right) looks on as Nelson's tour bus gets filled with B20 BioWillie diesel.

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Willie Nelson is on the road with a new group of highwaymen, but this group isn't country's most wanted band of decades past-when Willie teamed up with outlaws Waylon Jennings, Johnny Cash and Kris Kristofferson, which emulated the rough and rowdy lifestyle of Western renegades through song. No, the 'redheaded stranger's' new entourage is appreciably different, consisting of businessman Peter Bell, truck stop owner Carl Cornelius and financier Monk White, who have all come together to promulgate the use of their own brand of farmer-supported, earth-friendly biodiesel. The Willie Nelson Biodiesel Co. is target marketing BioWillie diesel-its own B20 blend-to highway-roving truckers, the largest group of diesel consumers in the country.

Willie and Friends Market BioWillie

The Dallas Group of America Inc., a recognized leader in oleo-chemical purification technology, is arguably the only U.S. company actively marketing a commercial product for the adsorptive purification of biodiesel. The company's synthetic magnesium silicate adsorbent, sold under the trademarked name Magnesol, is an "adsorbent filter aid" that ensures biodiesel quality by removing contaminants within methyl esters. Subsequently, the removal of contaminants enables biodiesel producers to guarantee that the fuel they produce meets ASTM D-6751 specifications and other industry standards. 
 
 The Dallas Group broke into the North American biodiesel market with Magnesol only recently, but according to one producer, the adsorbent could be "a cure-all for most process upsets and impurity problems" that occur during biodiesel production. Multiple customers nationwide in the edible oils industry are already using the product. Bryan Bertram, director of industrial sales with The Dallas Group, believes the U.S. biodiesel market represents one of the next big opportunities for the product line. In an interview with Biodiesel Magazine, Bertram, along with Chris Abrams, business development manager, and Brian Cooke, product development specialist, discussed the company's ongoing efforts with Magnesol. Bertram said the product increases the oxidative stability of biodiesel and is used in conjunction with-or in place of-the water-wash treatment in the biodiesel production process. 
 
 After the glycerin separation process, methyl esters contain contaminant materials that are detrimental to the quality of the fuel and must be eliminated from the product. Reduction of the water-soluble contaminants, traditionally, is accomplished by water-washing the biodiesel. However, according to Bertram, the era of the biodiesel water-wash may be gradually ending. "The water-wash method does nothing to remove the water-insoluble impurities," he told Biodiesel Magazine. "And due to the resulting effluent water, it gives cause for environmental concerns." 
 
 With Magnesol, the water-wash step can be eliminated, and so can the liquid separation and drying of biodiesel. "It can also replace other methods of removing chlorophyll, metals, and color from biodiesel," Bertram said. "If the processor is utilizing a costly distillation step on the tail end to remove metals or other contaminants, they could forgo that step also. In addition, Magnesol has a high affinity for methanol and water, so it will remove the last bits from methl esters.."
 
 Purification with Magnesol also increases the oxidative stability of biodiesel, Bertram said, which is becoming increasingly important, due to the demands being placed on fuel producers by the auto manufacturing industry and government.
 
 Magnesol, which can be used in either batch or continuous processes, removes residual methanol, providing a cost savings in the stripping step. Magnesol is able to remove sulfur, which is especially important in light of impending U.S. EPA regulations that will limit sulfur in diesel fuel to 15 parts per million. Furthermore, the product significantly reduces a plant's need for heated and conditioned water. The traditionally employed water-wash method necessitates either the purchase of centrifuges or the gravity-separation of the water from biodiesel. 

 
 "After transesterification, you have methyl esters that need purification," Bertram said, explaining how water washing is typically used to remove contaminants from methyl esters.
 
 Abrams said The Dallas Group believes the water-wash method has several limitations, including decreased yields due to methyl ester loss in effluent; high soap levels that cause emulsification; high effluent treatment and disposal costs; and the time and cost of drying methyl esters. High soap levels in particular may lead to poor separation, contribute to yield losses and require multiple washes to achieve specification, Abrams said. In some cases, 24 hours are required to effect a single separation. 
 
 Additionally, it is not uncommon for producers to end up with a methyl ester/water emulsion. "Without a water-wash, there are no such emulsions formed," Abrams said. "The disposal, and even permitting of, wastewater is difficult to impossible, depending on plant location. Magnesol greatly reduces dependency on water and resultant wastewater disposal issues."
 
 What is perhaps most attractive about Magnesol, is that it works simply and relatively inexpensively. 
 
 Cooke shared information about Magnesol at the 2005 National Biodiesel Conference & Expo in Ft. Lauderdale, Fla., in early February. His presentation-essentially a detailed explanation of how biodiesel can be purified by using the company's trademarked adsorbent-covered the basic biodiesel process, the technology of filtration (passive and active), the results of a pilot plant trial that involved the product, and a brief look at replacing the water-wash step with the company's magnesium silicate treatment. 
 
 Cooke explained that Magnesol could be used by biodiesel producers as a "total replacement" of the water wash step, or a "polishing step" used to round out the water wash treatment. 
 
 In a standard biodiesel production process, Magnesol-a fine white powder-is mixed with unwashed biodiesel in a mixing tank (for five to 10 minutes) after glycerin separation and after methanol removal. 
 
 According to Cooke, magnesium silicate has a strong affinity for polar compounds, thereby actively filtering out excess methanol, free glycerin, mono and di-glycerides and metal contaminants, in addition to free fatty acids and soap. These materials are then removed from the process through filtration. Note: Glycerin is a polar molecule, and thereby susceptible to the adsorptive abilities of magnesium silicate. That's why Magnesol is added to the process after the glycerin separation step. 

 
 Explaining the difference between "passive filtration" and "active filtration," Cooke said Magnesol has "charged sites" on its surface (areas that attract the afore mentioned unwanted polar compounds). 
 
 "Adsorptive sites may have either acidic or basic characteristics," he said, before explaining the testing methods used to measure the number-and strength-of adsorptive sites on a given amount of adsorbent matter such as Magnesol. 
 
 Cooke said testing has shown that synthetic magnesium silicate has high numbers of acidic and basic adsorptive sites, as opposed to passive filter-aid-type materials like diatomaceous earth, which "did not have any active filtration sites." 
 
 With the use of Magnesol, Cooke said, the producer is left with a potentially valuable "filter cake" rather than dirty effluent. Clients of The Dallas Group are currently exploring a variety of markets for this filter cake, and the company believes the byproduct has potential value as an animal feed supplement, a form of biomass fuel, fertilizer or compost. 
 
 The BECON study 
 The Dallas Group has over 30 years experience in the purification of various chemicals, including esters and the resulting byproducts of those processes. In addition to its own in-house work on biodiesel (with outside lab confirmation), the Biomass Energy Conversion Facility (BECON) at Iowa State University performed trials comparing the traditional water-wash method to biodiesel purification with Magnesol. Results from this study were discussed by Cooke in his presentation and also by Dr. Jon Van Gerpen during a special technology session at the National Biodiesel Conference. Van Gerpen, a respected authority on the subject of biodiesel, directed the pilot study at the BECON facility. He has since taken a position at the University of Idaho as department head of Biological and Agricultural Engineering.
 
 In that study, methyl esters were produced in 40-gallon batches from both degummed soybean oil and yellow grease feedstocks in BECON's pilot plant reactor. In both cases, the methanol was removed from the methyl esters, but not initially water-washed.
 
 First, 20 gallons of the soybean methyl esters were water-washed and dried, while another 20 gallons were treated at 77 degrees Celsius with 1-percent-by-weight Magnesol. After 20 minutes of mixing (longer than is probably required in a commercial plant setting, Cooke said), the purified methyl ester was filtered. The resulting biodiesel from both methods passed all specifications of ASTM D-6751. According to the study's authors, Van Gerpen and Kirk Menges, the Magnesol-treated biodiesel contained a lower soap and sodium content than the water-washed and dried sample. Furthermore, the Magnesol-treated biodiesel showed a significant improvement in oxidative stability when compared to both the original methyl esters and the water-washed and dried sample.
 

 In a second trial, 20 gallons of the yellow grease methyl esters were water-washed and dried and 20 gallons were treated with at 77 degrees Celsius with 2-percent-by-weight Magnesol. After 20 minutes of mixing, the purified methyl ester was filtered. Like the first test with soy methyl esters, the Magnesol-treated sample of yellow grease-derived methyl esters passed all ASTM specifications while the waterwashed and dried sample did not. The Magnesol-treated biodiesel contained a lower soap and sodium content than the water-washed and dried sample. Again, the Magnesol-treated biodiesel showed a significant improvement in oxidative stability when compared to both the original methyl esters and the water-washed and dried sample. 
 
 During his presentation, Cooke concluded that the benefits of treating methyl esters with Magensol are multi-fold. He reiterated Bertram's claims about the product: With Magnesol, there is no water effluent, no emulsification, improved oxidative stability, minimal yield loss and minimal capital expenditure, all through an application that "expedites the purification process and allows for continuous operation."
 
 Fielding questions from attendees, Cooke said the cost of using Magnesol is in the range of 1 cent to 10 cents per gallon of finished biodiesel, depending on the starting contaminant level. However, he reminded attendees that the filter cake could potentially be used as an animal feed. "It has a certain nutritional value," he said.
 
 According to Bertram, the capital costs of transitioning a biodiesel facility to Magnesol are relatively low. That's because only a low-tech filtering system is required. In addition to potentially eliminating the drying step and the requirement for a wastewater treatment system, the use of Magnesol could replace a centrifuge, yielding additional savings of capital, time and maintenance costs. 
 
 There are less obvious savings, too, Bertram said. "Magnesol actually offers the biodiesel producer a lot of latitude in running their process," he said. "It adsorbs glycerin, free glycerin, metals, soaps, chlorophyll, residual free fatty acids, odors, color, methanol and water. Since Magnesol adsorbs such a wide range of impurities, it compensates for upstream upsets in the process, offering clean and more stable biodiesel." 
 
 For more information about Magnesol visit <a target="_blank" href="http://">www.dallasgrp.com</a>.
 

 Tom Bryan is editorial director of Biodiesel Magazine. Reach him by e-mail at<a href="mailto: tbryan@bbibiofuels.com "> tbryan@bbibiofuels.com </a>or by phone at (701) 746-8385.

With a solid track record in oleo-chemical purification, The Dallas Group has entered the biodiesel industry with a synthetic magnesium silicate adsorbent that has changed the way some producers clean up their methyl esters.

Adsorbing It All

March 31-April 3, 2005
 Parc des expositions du Bourget
 Paris, France
 This conference has been canceled.
 +33 (0)384 47 81 00 . <a target="_blank" href="http://">www.itebe-expo.org</a>

Mondial BioEnergie Paris 2005

April 10-13, 2005
 Athenaeum Inter-Continental
 Athens, Greece
 Discover what industry experts have to say on the future of the oleochemical industry and how to succeed in the ever-changing environment. The technical program will discuss the latest developments in the industry, and how the oleochemical industry needs to respond to trends and developments to ensure success. Networking opportunities will give participants the chance to meet with hundreds of oleochemical experts from around the globe. The program will cover specifics on the recent trends and developments in the oleochemicals industry, including capacities, issues facing the industry, and supply/demand growth and balances. The event is cosponsored by: Industrial Oil Products Division of the American Oil Chemists' Society, ASEAN Oleochemical Manufacturers' Group, The European Oleochemicals and Allied Products Group, Fatty Oil Products Committee of the Japan Soap and Detergent Association, and Oleochemical Steering Committee of the Soap and Detergent Association.
 217-359-2344 . <a target="_blank" href="http://">www.aocs.org/meetings/oleo</a>

World Oleochemical Conference: "Meeting the Demands of the Future"

April 20-22, 2005

 Walt Disney World Swan
 Orlando, Florida
 The convergence of biotechnology, chemistry and agriculture is causing several innovations that could change industrial manufacturing, production of chemicals and consumer goods, and even environmental protection. According to McKinsey and Company, the value creation stemming from new industrial biotech applications in the chemical industry alone could reach $160 billion by 2010. This conference will be geared toward a diverse base of participants from biotechnology, chemical and other industries to government and academia. It is meant to provide a unique forum for interdisciplinary interaction and networking. 
 (202) 962-6641 . <a target="_blank" href="http://">www.bio.org/worldcongress</a>

World Congress on Industrial Biotechnology & Bioprocessing

May 1-4, 2005
 Marriott City Center Hotel	 
 Denver, Colorado		

 Starting Sunday afternoon, the symposium is the premier conference on biomass utilization and conversion. The 27th Symposium continues this highly successful series with a great opportunity for experts from around the world to gather and discuss the latest research breakthroughs and results. Researchers from academia, government and industry will meet to discuss numerous approaches for improving the economics of fuel and chemical production. A variety of formal technical sessions, poster sessions and informal discussion groups will stimulate the exchange of new information.
 (303) 384-6861 . <a target="_blank" href="http://"> www.eere.energy.gov/biomass/biotech_
 symposium</a>

The Symposium on Biotechnology for Fuels and Chemicals

May 22-27, 2005
 Aberdeen Exhibition and Conference Centre
 Aberdeen, Scotland
 This conference, themed "Renewable Energy, Technology, Innovation and the Environment," will provide an explicit link between renewable energy, the environment and sustainability. By holding the conference alongside the All-Energy Opportunities Conference and Exhibition, it brings academics, policy makers, industry representatives and business consumers under one roof, and stimulates synergy and cooperation between these groups. It also brings together top international specialists and researchers, industrialists, manufacturers, financiers, policymakers and government officials. Congress participants will share the latest ideas and innovations, establish valuable contacts and develop new collaborations in renewable energy and the environment. 
 +44 (0) 1224 330 428 . <a href="mailto:wrec2005aberdeen.co.uk">wrec2005aberdeen.co.uk</a>

World Renewable Energy Conference

June 28-July 1, 2005
 Kansas City Marriott Downtown Hotel and 
 Kansas City Convention Center
 Kansas City, Missouri
 Register online today to receive a $10.00 discount. The International Fuel Ethanol Workshop & Expo (FEW) provides a one-of-a-kind opportunity to learn about the latest information on ethanol production and operations through technical workshops, trade show exhibits, and one-on-one networking with industry peers. The purpose is to share and discuss ideas to further improve the efficiency and economics of ethanol production. The FEW Expo is an excellent opportunity to share information on your company's equipment, services, and technology with current and potential clients. Current and future ethanol producers; industry vendors of products, equipment, technology and services; research and academia; feedstock producers and other industry stakeholders are encouraged to attend the industry's largest event. Over 1,600 attendees are expected to attend with over 260 companies exhibiting.

 (719) 942-4353 . <a target="_blank" href="http://">www.fuelethanolworkshop.com</a>

21st International Fuel Ethanol Workshop & Expo "Bringing the Minds of the Industry Together"

The Securities Exchange Act of 1934 generally requires broker-dealers-persons engaged in "effecting" securities transactions-to be registered with the Securities and Exchange Commission (SEC). The laws of many states contain similar registration requirements that, because of their varying coverage, are not addressed here. The act of "effecting" a securities transaction is critical, as it determines who is and who is not a broker-dealer and, in turn, who is and who is not required to register as such under the Securities Exchange Act. 
 
 With an ever-increasing number of businesses competing for discriminating investor dollars, so-called "finders"-individuals who introduce potential investors to companies seeking financing-are in great demand. Due to the limited scope of finders' activities, they are not considered to "effect" transactions in securities and, therefore, are not required to register as broker-dealers. Sometimes, however, a finder will engage in activities that go beyond what is traditionally associated with finder conduct. This can spell disaster not only for the finder, but also for the company it represents, potentially resulting in rescission of the issuer's offering and a return of the investors' money.
 
 Among the roles filled by finders, they, like broker-dealers, match investors with businesses seeking financing. The degree to which finders on the one hand, and broker-dealers on the other, engage in this matchmaking service is what sets them apart. A finder might best beviewed as someone who performs some of the services of a broker-dealer without sufficiently undertaking enough of them to "effect" a securities transaction and fall within definition of a broker-dealer. Quite naturally, then, a business seeking to determine whether it is engaging a finder should analyze the purported finder's activities vis-a-vis the standard for identifying broker-dealers.
 
 Generally, five hallmarks have emerged which are commonly associated with "effecting" a securities transaction and acting as a broker-dealer: 
 
 1) Receiving transaction-based compensation (i.e., a commission)
 
 2) Being involved in negotiations between an issuer and investors 
 
 3) Discussing details concerning, or making recommendations regarding, securities 

 
 4) Being involved in repeated transactions in securities
 
 5) Providing add-on services to an issuer (e.g., conducting financial analyses, etc.) 
 
 It is unclear whether a finder's involvement in any one of these five activities, standing alone, will automatically render the finder a broker-dealer. What is apparent, however, is that securities regulators are getting more stringent with their finder standards as the breadth of securities-related services-and the persons offering them-increases. 
 
 An issuer can suffer dire consequences if it engages a finder that, due to its activities, turns out to be an unregistered broker-dealer. Indeed, if a company is involved in a securities transaction and engages an unregistered finder to conduct activities that should only be undertaken by a registered broker-dealer, it is possible that the issuer may be required to offer each investor in the offering a right to rescind their investment. 
 
 Issuers can take a number of measures to protect themselves. These include entering into a comprehensive engagement agreement with the finder, making proper disclosure of the finder's conduct in the issuer's offering documents, and doing a background check on the finder. If a business is engaged in a securities transaction and intends to use a finder or similar person to connect with potential investors, it is important that a legal advisor is contacted to determine the risks and protections available.
 
 
 Mark Hanson and Todd Guerrero are members of the agribusiness and alternative energy practice group of Lindquist & Vennum PLLP, a leading provider of legal assistance on bioenergy projects throughout the country. Joe Humke, a corporate business partner at Lindquist & Vennum, contributed to this article. They can be reached at (612) 371-3211.

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Be Careful in Using 'Finders' to Raise Money

Legal Perspective

It's no secret that the biodiesel industry is expanding rapidly. New production facilities are being opened in all regions of the country, more terminal operators and petroleum marketers are getting involved, and the recently passed federal tax provisions will sharply increase the demand for biodiesel and biodiesel-heating oil blends, or bioheat. 
 

 This presents many opportunities for both established and new companies to get in on the ground floor of a dynamic and profitable industry that has the added benefit of having a positive impact on society. While this rapid acceleration creates opportunities, it can also cause growing pains within some parts of the industry. When a company enters the marketplace or vastly expands its level of operations, there is a learning curve that must be experienced. With this in mind, good research and seeking out reliable guidance becomes important. Also, ensuring product quality with regular testing, followed by proper storage, handling and blending procedures is vital.
 
 Enough cannot be said about the importance of product testing. Everyone expects that producers regularly test their product to verify that it meets ASTM specifications, but once the production process is established, the entire range of tests are not required to be done on every batch. Mistakes occasionally happen, and just as "good fences make good neighbors," it is also extremely important that the wholesaler or marketer who receives the product has tests performed on each shipment before it is released for sale. It is much easier-and less embarrassing-to contain a problem before it has left the shop than to try to fix things after it has been distributed further downstream. It may not be necessary to perform the complete ASTM range of tests, but some basic testing (e.g., acid, free and total glycerin, bottom sediment, etc.) should be done to ensure product quality. 
 
 There are many labs across the country that can reliably perform these tests. The cost of a range of basic tests generally will not exceed a few hundred dollars-an overhead cost that must be budgeted order to guarantee consistent product quality. When the test results are received, it is a good idea to keep a copy, along with an additional sample of the tested product, for a period of time to guard against claims of poor quality by those who are downstream.
 
 After biodiesel is received and tested, it needs to be stored and handled properly. Like Goldilocks' porridge, it must not be too hot or too cold. It is important to constantly scrutinize the flow of product through the facility to verify adherence to temperature guidelines. It must also be remembered that biodiesel made from different feedstocks will have different low-temperature characteristics. What works well with soy-based biodiesel may not work so well with fuel made from recycled oils or animal fats. Product blending procedures need to be implemented that provide uniformity and consistent quality. A recent study of retail B20 blends revealed an alarming number of samples that ranged from B2 to B100, and relatively few that were actually B20. No doubt, this is more a symptom of inattention and poor operating procedures than unscrupulous business practices, but it illustrates the importance of implementing and adhering to proper handling guidelines. 
 
 As this young market matures and more companies get involved, product handling doesn't have to be a trial-and-error process. With some imagination, adherence to good housekeeping habits doesn't have to be expensive. Guidelines and procedures are in place. The National Renewable Energy Laboratory has an excellent publication on the handling and use of biodiesel that is available online at www.nrel.gov. For a company that is new to the biodiesel market, hiring a qualified consultant with experience in your segment of the industry can help avoid many pitfalls. In addition, the National Biodiesel Board's BQ-9000 quality assurance program can provide guidance. 
 
 If everyone involved in the industry is diligent with product testing and handling, the end result will be happy users and continued profits for farms, businesses and the planet. 
 
 Joel Glatz is vice president of Frontier Energy, a wholesale and retail biodiesel sales and consulting company based in Maine. Reach him by e-mail at<a href="mailto: joelg@frontierenergy.org"> joelg@frontierenergy.org</a>.

March 2005

Business Briefs

Amamax, Sanimal merge

BBI celebrates 10th anniversary

Kistner joins BBI

BBI hires Hegvik, Kotrba

NTBE gains rights to market CANMET's cetane additive

Greenline Industries debuts new production unit

Breathable Bus Coalition rolls into action

Soybean groups combine resources

California bioindustries come together

Columns

Editor's Note

Industry "metrics" on the rise

Legal Perspective

Talking Point

Featured

Turning Point

Drivers Wanted

Willie and Friends Market BioWillie

Adsorbing It All

March 2005.css-7jxktu{position:absolute;bottom:0px;left:0px;right:0px;height:3px;border-radius:3px;background-color:var(--chakra-colors-brandBlack);}

Business Briefs

Amamax, Sanimal merge

BBI celebrates 10th anniversary

Kistner joins BBI

BBI hires Hegvik, Kotrba

NTBE gains rights to market CANMET's cetane additive

Greenline Industries debuts new production unit

Breathable Bus Coalition rolls into action

Soybean groups combine resources

California bioindustries come together

Columns

Editor's Note

Industry "metrics" on the rise

Legal Perspective

Talking Point

Featured

Turning Point

Drivers Wanted

Willie and Friends Market BioWillie

Adsorbing It All

March 2005