With plans to expand its soybean crushing facility by building a biodiesel plant, Minnesota Soybean Processors (MnSP) has raised enough equity to begin construction, Board President Bob Kirchner told Biodiesel Magazine. MNSP reached its $7.2 million goal for the $14 million project through existing members on Jan. 15. The company plans to break ground on the 30-mmgy facility this spring.

MnSP reaches funding goal

Blue Sun Biodiesel recently held meetings in Colorado, Nebraska and Kansas to ask farmers to consider growing industrial oilseed crops, like rapeseed, to supply the company's production plant with additional feedstock. The Fort Collins, Colo., facility currently uses soybeans, which grow better outside the state. "Building a localized feedstock will give us more options," Blue Sun President Jeff Probst told Biodiesel Magazine. "Even if we bring in the local feedstock, we'll continue to process soybeans."

Blue Sun seeks alternative oilseed feedstock

Researchers at the University of Minnesota have begun a project that investigates the possibility of making "biodiesel" out of corn stover. Junior scientist Erik Hare, who wrote the research proposal, told Biodiesel Magazine that the process involves liquefying corn stover and exploring chemical processes that might turn it into a biodiesel-type fuel. "We have the consistency of honey right now," Hare said. The researchers hope to have reportable progress on the project in six months.

Research could turn corn stover into biodiesel

Curt Sindergard, a Pocahontas County (Iowa) farmer, was named president of the Iowa Soybean Association (ISA) at its recent board meeting. Sindergard is in his third, three-year term on the board, where he represents soybean producers in Dickinson, Emmet, Clay, Palo Alto, Buena Vista and Pocahontas Counties.
 	Other ISA elected officers include: John Askew, president elect; Yaro Chmelar, secretary; Tom Oswald, treasurer; and Brian Rohrig, executive committee member.

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ISA elects president, officers

Few would disagree that the National Biodiesel Conference & Expo 2004, held last month in Palm Springs, Calif., was the most prolific biodiesel event ever held in the United States. The conference delivered everything the National Biodiesel Board (NBB) promised. Hats off to the NBB's dedicated staff and governing board, as well as conference sponsors, exhibitors and presenters, for creating an inclusive international event unlike any other in the world. 
 	
 The conference-like the industry itself-was a little bit of everything. It was a display of our industry's boundless diversity. We saw entrepreneurs and environmentalists, scientists and social activists (some being both), experts and novices, producers and consumers … even a reporter or two.
 	 
 Clearly, the biodiesel industry is big enough for everybody. Most of us agree that it doesn't matter who is producing, but what is being produced. In the words of Griffin Industries' Rick Geise, "Ultimately, the consumer cares little about feedstocks." They simply want clean, renewable fuel that is comparable to petroleum diesel in performance and reliability. 
 	
 "Feedstock neutrality" is this year's buzz phrase, and the NBB's all-encompassing position on feedstocks is both politically and socially responsible. The NBB Executive Committee now includes Fred Wellons of Baker Commodities, who will largely represent rendering and other feedstock interests on the board. 
 	

 Speaking of feedstocks, it appears that politics and production are undeniably entwined. As "feedstock neutrality" enters our vernacular, so does "multi-feedstock production." Design/build firms, such as Crown Iron Works Co., BIOSOURCE Fuels LLC and BioDiesel Technologies GmbH, continue to advance multi-feedstock processes-and their reach is global. 
 	
 As biodiesel use grows worldwide, so does the array of feedstocks used for production. The NBB's position of neutrality is proactive and highly commendable. 
 
 Tom Bryan
 Editorial Director
 tbryan@bbibiofuels.com

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Editor's Note

After the Minnesota Soybean Growers Association announced in November its plans to build a 30-mmgy biodiesel plant, other projects are moving forward in the state, according to project revelations at the most recent Minnesota Biodiesel Task Force meeting. 
 	
 Agricultural Marketing Specialist Ralph Groschen, who serves on the Minnesota Biodiesel Task Force, told Biodiesel Magazine that at least two projects were announced at the Task Force's Jan. 15 meeting. Central Byproducts has proposed a 3-mmgy plant, which would be built north of Redwood, Minn., and use recycled vegetable oil as its feedstock. In addition, SoyMor has proposed a 25-mmgy plant near Albert Lee, as reported in the Jan./Feb. issue of Biodiesel Magazine. Both of these projects are scheduled to produce biodiesel by July 2005, when Minnesota is expected to implement a blend requirement of 2 percent biodiesel in regular diesel fuel. 
 	
 According to Groschen, Minnesota uses 800 million gallons of diesel fuel per year, which roughly translates into a demand for 16 million gallons of biodiesel per year to meet the 2 percent mandate. The state legislature hopes to meet at least half of that demand with Minnesota-produced biodiesel.

 	
 Gov. Tim Pawlenty assigned the Task Force last year; the group's primary function is to make sure there is ample biodiesel production in the state by July 2005. Also, the Task Force is concerned with minimizing any adverse impact the use of biodiesel may have on the state's marketplace, Groschen told Biodiesel Magazine. The Task Force plans to solve as many problems-and answer as many questions-as it can, gathering recommendations along the way that will help the program operate successfully.
 	
 "This project is similar to ethanol," Groschen said. "If you handle it properly, it works out quite well. But there are similar issues. What if we run out? Then we won't be able to sell diesel fuel. But those are the kinds of things the industry will take care of. You never expect to run out of ethanol, [and we won't] run out of biodiesel."

Task Force, new projects propel biodiesel in Minnesota

While taking total ownership of its production facility, American Biofuels (ABF) announced the arrival of 50,000 gallons of soybean oil at its Bakersfield, Calif., biodiesel facility in late January. 
 	
 Reportedly the first feedstock shipment to arrive at ABF, the soybean oil was purchased from Archer Daniels Midland Co. (ADM) and delivered in two 25,000-gallon railroad tank cars.
 	
 In January, ABF signed a 50/50 joint venture contract with Hondo Chemical Inc. to build and operate the Bakersfield plant on Hondo property. In late January, ABF (which is 35 percent owned by Green Star Products Inc.) agreed to buy Hondo's ownership and take full use of the site and its infrastructure. In return, Hondo received cash, ongoing royalties and the ability to continue marketing ABF-produced biodiesel to its customers.
 	
 In December, ABF/Green Star purchased land near Phoenix, Ariz., reportedly to build ABF's second biodiesel plant. It includes a 9,000-square-foot building with office space and a railroad spur adjacent to a loading dock. The site allows for a 10- to 15-mmgy plant; equipment has already been ordered, according to Green Star. 
 	
 "The Greater Phoenix area fits this profile very well," Joseph LaStella, director of ABF and president of GSPI, said in a press release. "We feel existing biodiesel users in the Greater Phoenix area will welcome local production."

GSPI, ABF begin biodiesel production

Late in 2003, Agriculture Secretary Ann Veneman announced the approval of 184 value-added agricultural product marketing development grants in 40 states, totaling over $28.7 million. As part of the 2002 Farm Bill, the Value-Added Agricultural Product Market Development Grants program provides opportunities to refine agricultural commodities and products to increase value in the marketplace. Interested parties submitted applications for the awards, starting in September. Approximately 14 companies will use the funds to benefit the biodiesel industry. Here is a list of those recipients:
 
 Blue Sun Producers Inc., Colorado: $450,000
 The company will produce oilseed crops for production of biodiesel.
 

 West Bend Elevator Co., Iowa: $30,500
 The company will develop a proposed biodiesel plant.
 
 West Central Cooperative, Iowa: $140,000
 The cooperative will explore new glycerin conversion technologies.
 
 Midwest Grain Processors, Iowa: $150,000
 This ethanol producer will explore the feasibility of biodiesel production.
 
 National Trail Biodiesel Cooperative, Illinois: $33,000
 The cooperative will establish a soybean meal biodiesel plant.
 
 Union County Biodiesel, Kentucky: $25,255

 This group will explore the feasibility of soy-based biodiesel production.
 
 Hopkinsville Elevator Co. Inc., Kentucky: $87,500
 The company will explore biodiesel production. 
 
 Hallock Cooperative Elevator Company, Minnesota: $50,000
 The cooperative will explore the feasibility a biodiesel production facility.
 
 Farmers Union Marketing & Processing, Minnesota: $500,000
 This rendering group will operate a proposed 2.8-mmgy continuous flow biodiesel plant using animal fats and vegetable oils.
 
 Biodiesel Steering Committee, Nebraska: $121,000

 The group will explore the feasibility of a biodiesel plant.
 
 Farmers Co-op Oil Company, Nebraska: $120,000
 The group will operate a soybean/biodiesel processing facility.
 
 Progressive Producers Nonstock, Nebraska: $450,000
 This group will produce oilseed crops for biodiesel fuel.
 
 Boyd Station, Pennsylvania: $349,995
 This company will utilize extraction/expulsion technologies.
 
 Columbia County Farm Bureau Inc., Washington: $50,000
 This group will explore the production of oilseeds for biodiesel.

USDA strengthens biodiesel industry with value-added awards

Texas Biodiesel negotiated in February to install one or more biodiesel plants in northeast Texas, according to the Tyler Morning Telegraph. The company is eyeing Wood County, Wharton County and other areas for a 25-acre plant site. Texas Biodiesel hopes to build five biodiesel facilities in the state within the next three years. Gary McKinley of Wood County Industrial Commission estimated a biodiesel project would initially create 277 new jobs with a payroll of more than $9 million.

Biodiesel may come to Texas

Biodiesel Systems LLC of Madison, Wis., has been granted an 18-acre plot of land outside of Pekin, Ill. to build a $30 million biodiesel plant, according to the<a target="_blank" href="http://"> Peoria Journal Star </a>Online. The company bought the city land for $209,185 to build a 15,000-square foot facility called Illinois Biodiesel Co.-Pekin LLC. When built, it will be the state's second biodiesel processor, joining the Joliet-based Stepan Company.

Biodiesel company purchases Pekin land

On Feb. 12, the U.S. Senate passed a transportation bill that contained a biodiesel tax incentive, according to an American Soybean Association press release. The 76-21 vote approved a new six-year highway spending bill that contains a biodiesel tax incentive virtually identical to one that was in the Senate energy bill that stalled late last year. On Feb. 11, the House of Representatives opted to approve a four-month extension to the current transportation bill. Once the bill passes, it will move to conference committee where a final version of the bill will be negotiated.

Senate passes biodiesel tax incentive

The chances of biodiesel passing the American Society for Testing & Materials (ASTM) vote for "Fill and Go" diesel fuel looks more dubious after its re

 cent Phoenix meeting. 
 	It was noted during the meeting that biodiesel blends, especially those greater than 5 percent, would not meet the existing distillation limits currently in place for petroleum diesel. Changing the existing diesel distillation standards would require the acceptance of engine makers and was deemed unlikely to happen. Other potential barriers, such as viscosity limits and the need for new test methods, were also noted during the meeting. The initial vote was "no go"-but it is not the end of the line. The ASTM process provides a structure for continued discussion and compromise. 
 	
 Biodiesel currently is covered by its own specification, ASTM D6751, for pure biodiesel used in blends of up to B20. Biodiesel's D6751 spec took years of sustained effort to develop and approve. The National Biodiesel Board (NBB) and others are working to gain acceptance of biodiesel in a "Fill and Go" specification. "Fill and Go" would provide wider acceptance of finished biodiesel blends and fit within the existing D975 petroleum diesel specification. This expanded specification would make buying biodiesel easier, especially for government and military fleets. 
 	
 ASTM is the lead U.S. organization that defines the standards for fuels and other materials. The organization uses volunteer committees that come to decisions by consensus. The ASTM's often lengthy process helps insure that the final standards are accepted by engine and equipment manufacturers, fuel producers and end users.

ASTM initially denies biodiesel favorable status

Archer Daniels Midland Co. (ADM) partnered with Volkswagen AG in a joint research agreement in January. The two companies will combine resources to further develop and utilize biodiesel fuels for the automotive industry.
 	
 According to ADM, this is the first time that one of the world's leading automakers has joined forces with a major global agricultural company to cooperate on the development of next-generation clean renewable fuels.
 	
 "Biodiesel is one of the most promising renewable fuels on the horizon," said Allen Andreas, ADM chairman and chief executive. "The agreement clearly demonstrates the shared commitment of both our companies to developing environmentally friendly next-generation alternative fuels that address global energy needs."
 	
 Volkswagen AG, headquartered in Wolfsburg, Germany, is Europe's largest automaker and one of the world's largest producers of passenger cars.
 	
 "Given the tremendous environmental, economic and quality-related benefits of increased biodiesel usage, we believe this joint research agreement will go a long way toward advancing and furthering the development of this vital renewable fuel choice," said Dr. Bernd Pischetsrieder, chairman of the board of management of Volkswagen AG.
 	
 ADM, headquartered in Decatur, Ill., is a world leader in agricultural processing, including soybeans, corn, wheat and cocoa. The company also leads in soy meal and oil, ethanol, corn sweeteners and flour

ADM, Volkswagen develop biodiesel partnership

Several vehicle fleets across the United States and Canada have started using, or renewed commitments to, biodiesel-blended fuels in recent months. Biodiesel Magazine is keeping tabs on these projects as a growing number of both government and commercial fleets turn to biodiesel from coast to coast. 

 	In Olympia, Wash., 40 public works vehicles, from garbage trucks to heavy-duty vehicles, began running on B20 at the beginning of 2004. The city will likely increase the blend to B40 sometime this year. 
 In Minnesota, Lubrication Technologies will provide 368,000 gallons of B2 to Hennepin County over the next year. The county began using biodiesel in October 2003 in all of its fleet vehicles, including snowplows, ambulances, road pavers and other diesel vehicles.
 	
 Municipalities in Burnaby, Delta, North Vancouver, Wistler, Richmond and Vancouver, British Columbia, Canada, will be testing biodiesel in a dozen heavy-duty vehicles, such as garbage trucks. The pilot program will last until the end of March. If the program is a success, more municipalities will begin to use the renewable fuel. In addition to the pilot program, recent testing by a Montreal transit system showed that B20 blends reduced carbon dioxide emissions by almost 1,300 tons.
 
 Scientists in Meridian, Idaho, are conducting a comparative study on emissions from school buses fueled with diesel versus biodiesel. Approximately 170 city school buses ran on B20 from mid-January until late February. The Desert Research Institute of Nevada and the Community Planning Association (COMPASS) in Meridian will compare that data to the data collected from buses that ran on regular diesel, according to COMPASS principle planner Jay Witt.
 	
 EcoFresh, a carpet cleaning company in Scottsdale, Ariz., is using biodiesel to fuel its vehicles and cleaning equipment. It is the only company in the United States that runs all of its equipment and vehicles on biodiesel, according to Philip Beere, company founder and president. 
 	
 In Freeport, Maine, outdoor apparel supplier L.L. Bean has decided to extend its use of biodiesel in the company's truck fleets and vans. L.L. Bean began using a B20 blend in spring of 2003 with the intent to test the fuel for one year. Company spokesman Rich Donaldson told Biodiesel Magazine that the company will continue to use biodiesel because it has been pleased with the results. "We wanted to see for ourselves what the benefits are," Donaldson said. "There weren't any negative effects in the cold weather. We are very pleased with how the program has gone."

From Scottsdale to Freeport, fleet use growing

Iowa State University's reformatted Biodiesel Workshop will be held March 22-26, covering three topics in a five-day format.
 	
 Held at the Iowa Energy Center's Biomass Conversion (BECON) facility in Nevada, Iowa (just outside of Ames), participants will have access to a 0.5-mmgy biodiesel pilot plant, superb laboratory facilities and the professional instruction of a diverse and highly qualified team of experts. 
 	
 According to Jon Van Gerpen, a professor of mechanical engineering at Iowa State University and one of several professionals facilitating the workshop, the event is expected to draw a broad range of professionals from all over the world. Attendees will range from existing biodiesel producers seeking basic refresher courses to novices looking to learn more about the business and science of production. 
 	
 "It appeals to a broad cross-section of people interested in biodiesel production and marketing," Van Gerpen said. "Some aspects of the workshop approach fairly high levels of chemistry, but that doesn't seem to bother attendees that have little or no background in chemistry. Everyone will take something away from it." 

 	
 The workshop is broken down into three topics (each category was formerly held separately as stand alone three-day workshops): Biodiesel Production Technology, Biodiesel Analytical Methods and Business Management for Biodiesel Producers. 
 	
 Sessions on production include hands-on training utilizing the BECON pilot plant, as well as a review of biodiesel chemistry, process engineering, post reaction processing, fuel specifications and properties, feedstock preparation, treatment and recovery of sidestreams, fuel transportation, storage, plant operations and safety. Sessions on analytical methods, largely based in the lab, include a review of procedures that determine essential biodiesel quality. Sessions on business management offer attendees information on business plan development, plant financing, plant management as well as legal and regulatory issues. 
 	
 Workshop leaders include Van Gerpen; Rudy Pruszko, a chemical engineer for the Center for Industrial Research and Service (CIRAS); Dr. L. Davis Clements, founder and president of Renewable Products Development Laboratories (RPDL); Dr. Gerhard Knothe, an organic polymer chemist for the USDA's National Center for Agricultural Utilization Research; and Dr. Brent Shanks, an associate professor of chemical engineering at Iowa State University.
 
 For more information about the workshop, visit <a target="_blank" href="http://">www.me.iastate.edu/biodiesel. </a>

ISU offers five-day biodiesel workshop

As announced at the National Biodiesel Conference & Expo 2004 in Palm Springs, Calif., Clean Diesel Technologies Inc. (CDTI) has discovered a fuel blend that reduces particulate matter by 23 percent and NOx by 5 percent, according to David Whitwell, vice president and CFO.
 	
 The blend includes the CDTI's patented additive, Platinum Plus, along with a B20 biodiesel blend with No. 1 diesel fuel. According to a company press release, the CDTI blend beat a commercial ultra-low sulfur diesel fuel in reducing particulate matter, NOx and carbon monoxide.
 	
 In addition, biodiesel enhances the lubricity of No. 1 diesel, and No. 1 diesel helps improve the cold-weather performance of biodiesel, the company claims. 
 	
 At the National Biodiesel Conference, Steve Howell, technical director of the National Biodiesel Board, reportedly said that in most biodiesel testing, NOx was the only emission that biodiesel failed to reduce. With CDTI's additive, reducing NOx is now possible, according to Whitwell.

 	
 Testing was conducted at the Southwest Research Institute, headquartered in San Antonio, Texas.
 	
 Platinum Plus is a registered additive with the Environmental Protection Agency. It is available to the public. 
 
 For more information on CDTI, <a target="_blank" href="http://">visit www.cdti.com.</a>

Clean Diesel reduces NOx in biodiesel

Superior Process Technologies LLC of Minneapolis, Minn., and Baker Commodities Inc., of Los Angeles, Calif., recently announced the formation of a new company, Superior Process Technologies Inc. The new venture will supply process engineering and plant design services for production of biodiesel, glycerine, basic oleochemicals and animal and vegetable oil products.
 	
 James Andreoli, president of Baker Commodities, said, "We feel the new company will be very successful in the emerging biodiesel industry by leveraging Baker's experience in fats and oils processing with Superior's expertise in plant design and engineering." 
 	
 Superior Process Technologies, which offers a multi-feedstock biodiesel process, will continue to provide engineering, process design and sales and marketing services out of its offices in Minneapolis.
 	
 Baker Commodities is a leader in rendering meat byproducts and recyclable cooking oils and has manufacturing facilities located throughout the United States. 
 	
 "This partnership brings together 80 years of oils and fats processing, as well as significant research and development expertise with top-notch engineering and process design technology," said Dave Belseth of Superior Process Technologies. "Baker Commodities is one of the largest renderers in the United States, which automatically makes them one of the largest in the world." 
 

 More information about the companies that formed thisalliance is available online at<a target="_blank" href="http://"> www.superiorprocesstech.com </a>and <a target="_blank" href="http://">www.bakercommodities.com.</a>

Alliance creates new plant design company

Six months ago, a New York Times reporter was dispatched to Corvallis, Ore., to interview Justin Soares, the now 25-year-old founder of Grease Works!, an independent biodiesel cooperative that buys and distributes ASTM certified biodiesel in and around the community. Coincidentally, the very day the Times article ran, the group's newly designed Web site came online, giving the little known cooperative instant widespread recognition. 
 	
 "It worked out nicely," Soares told Biodiesel Magazine. "The Times article brought a lot of attention to what we are doing and the response was terrific."
 	
 The vibrant Web site, which offers not only information about the cooperative but also industry news and links to biodiesel research, photos and statistics, was designed by a Grease Works! member who owns an Oregon-based Web design company. While membership in the cooperative has remained relatively fixed-at press time Greaseworks had 33 members-Soares said the new Web site has been a great promotional tool, as well as an effective forum for members to post and exchange information. 
 	
 Grease Works! is a "bulk-buying" club that purchases biodiesel from an area distributor, SeQuential Biofuels of Eugene, Ore., which buys from World Energy Alternatives. 
 	
 The cooperative is headquartered out of Soares' auto garage, where he makes a living working on diesel engine vehicles when he's not volunteering his time to Grease Works!. For $75 a year, Grease Works! members can buy biodiesel at a discount and have it delivered straight to their home.
 

 For more information about Grease Works! visit <a target="_blank" href="http://">www.greaseworks.org</a>, or contact <a href="mailto:justin@greaseworks.org.">justin@greaseworks.org.</a>

Soares (bottom left) and the Grease Works! crew

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Grease Works!, and they're proving it in Oregon

"Got fuel to burn, got roads to drive," and Neil Young wails, "Keep on rockin' in the free world."
 	
 The legendary rocker and ardent biodiesel supporter didn't perform live, but his famous ballad roused a crowd of 500-plus at the inaugural National Biodiesel Conferecne & Expo at the Wyndahm Palm Springs Hotel in Palm Springs, Calif., Feb. 1-4. 
 	
 Joe Jobe, executive director of the National Biodiesel Board (NBB), hailed the enthusiastic crowd and praised Young and other musicians, such as conference performer Johnette Napolitano of Concrete Blonde, for using biodiesel. 
 	
 "[Young's] got a heart of gold," Jobe quipped in good humor, before mentioning that the rocker's recently launched tour will rely almost entirely on B20-powered trucks and buses. Moreover, West Central Soy, one of 10 conference sponsors, is supplying biodiesel for the tour. 
 	
 After acknowledging attendees from all over the world, Jobe said, "It's humbling to see the sort of talent and expertise … the real pioneers of the biodiesel industry that are here today."
 	
 After Jobe's opening remarks, Bob Metz, South Dakota farmer and NBB chairman, took center stage. Metz explained the NBB's decision to ramp up its former technical training workshop to a full-fledged international conference.

 	
 "More and more people with non-technical backgrounds were showing interest in biodiesel," he said. "We created this expanded conference to meet the needs of all biodiesel stakeholders." 
 	
 The chairman joked, "If I'd had it my way, we'd have had [the conference] in Fargo, North Dakota [where it was 34 degrees below zero the day before the event began]."
 	
 Krysta Harden, who recently stepped down from her longtime position at a Washington, D.C.-based firm as the lead lobbyist for the American Soybean Association, presented an update on the status of federal energy legislation in Congress. 
 
 Ethanol lobbyist gives keynoteBob Dinneen, president and CEO of the Renewable Fuels Association (RFA), the nation's top ethanol lobbying group, gave the keynote address, presenting a speech entitled "Renewable Fuels: Lessons from the Successes and Challenges of the Ethanol Experience." In his robust style, Dinneen shared biodiesel-relevant insights from his 20 years of experience in the ethanol industry.
 	
 "Some people like to think of the ethanol industry as the biodiesel industry's big brother," Dinneen said. "And I could give you some brotherly advice about what we've done right and what we've done wrong." 
 	
 A politically savvy Dinneen told the biodiesel industry, "You need to know your own game. You need to know your fuel. You need to know everything about it." 
 	
 "Knowing the fuel," even its seemingly insignificant attributes, Dinneen said, will help the biodiesel industry be ready for niche market opportunities that will inevitably come its way. 	Dinneen also urged biodiesel producers to work with-not against-the petroleum industry. 
 	
 "For the first 15 years I was in the ethanol industry, I would wake up every morning and try to think of a way to vilify the oil industry. And frankly they would do the same to us," he said. "Finally, a few years ago, we sat down together and formed a powerful coalition of refiners, agricultural interests and environmentalists. [Those talks led to an agreement that] gave refiners flexibility to meet clean air requirements and gave us the reassurance we needed to [build production capacity]."

 	
 The path to political success with biofuels, Dinneen said, begins with a vision that sees beyond the agricultural base. 
 	
 "You will always have a partner in agriculture, but you need to expand on that base," he said. "Work with consumers, work with environmentalists, work with the oil companies."
 	
 The ethanol lobbyist closed with a sort of challenge to the biodiesel industry, saying, "Be willing to take a risk. You won't win unless you are willing to swing for the fences once in a while. Stay focused. Don't be discouraged by political setbacks … and play tough."
 
 Hannah and the 'Guru of Grassoline'Conference attendees received an entertaining appearance by movie star Daryl Hannah, perhaps known for her environmental activism as much as her presence on the silver screen. 
 	
 Hannah, who arrived at the conference in a diesel-powered 1970s-style Chevy El Camino, performed with her "biodiesel buddy" Charris Ford, a fellow Colorado resident who is the self proclaimed "Guru of Grassoline"-a.k.a., the "Granola Iyatolla of Canola."
 	
 After Ford broke into a humorous-albeit impressive-rap about biodiesel, Hannah expressed her satisfaction in seeing so many people gathered in one place to discuss the alternative fuel. 
 	
 "It's such a relief to be around people who actually know what biodiesel is," she said. "Most people are like, 'What, are you kidding me? What kind of new fangled cars run on this stuff? How many French fries had to die?" 
 	
 Hannah's tone was at times reverent, such as when she mentioned that increased biodiesel production could help America kick its dependence on foreign oil. "Maybe it could actually save a few kids from going off to overseas wars," she said. 

 	
 The Guru of Grassoline also had moments of profundity. 
 "There is no underestimating the sheer magnitude of the collective brain power of the people that are here in this room today," he told the crowd halfway through the duo's appearance, just minutes before both of the entertainers drank what appeared to be … you guessed it, biodiesel. 
 	
 Hannah departed with simple words of wisdom, "We have the technology to reduce greenhouse gases and grow much of our own fuel. We have the technology to make sure that no child has to go to school breathing dangerous toxins. We have the technology now-and it's biodiesel." 
 
 Keeping an 'Eye on Biodiesel'Hannah and the RFA, along with a National Park fleet manager, and a federal agency took home awards from the NBB's first annual "Eye on Biodiesel" awards ceremony.
 	
 The United States Department of Agriculture (USDA) won an award for "Impact." The award was given to the agency for championing biodiesel development and use for more than a decade. 
 	
 Kent Bullard, fleet manager at Channel Islands National Park, near Los Angeles, accepted the NBB's "Inspiration" award for switching the park over to B100 three years ago, helping Channel Islands meet the goal of becoming petroleum free.
 	
 "It's important to show leadership-and it's important to walk the walk," Bullard said, noting that he drove to Palm Springs in a B100-powered vehicle. 
 	
 Dinneen accepted the "Industry Partnership" award on behalf of the RFA, which has worked closely with the NBB over the last decade on the political front. 

 	
 Dinneen proudly accepted the award, pledging, "This is not so much about what we've done, but what we are going to do. We will continue this very strong and effective partnership." 
 	
 Hannah returned to the stage to pick up the "Influencer" award. She couldn't help herself from saying, "I'd like to thank the Academy."
 	
 Finally, with genuine emotion, the departing Harden poignantly accepted the NBB's "Outstanding Service" award for what Jobe called "many years in Washington working tirelessly for biodiesel." 
 
 Yellowstone to MontrealBreakout sessions were run in four concurrent tracts, enabling conference organizers to create an impressively diverse and well-rounded conference that represented nearly every major facet of the emerging industry. 
 	
 Among the first round of breakout sessions, "Biodiesel Fleet Experience" and "Fuel Property Improvement: Cold Flow and Stability," drew packed rooms.
 	
 Jim Evanoff of Yellowstone National Park kicked off "Biodiesel Fleet Experience" with an interesting overview of the Park's move toward sustainable, clean energy. Evanhoff helped introduce biodiesel into park vehicles, running a Dodge pickup on B100, and using fuel (rapeseed and mustard seed feedstock) donated by the University of Idaho. Evanhoff installed a 300-gallon fuel tank in the bed of the pickup and once drove 6,000 miles-from Yellowstone to Nashville, Tenn.-without filling up. 
 	
 Today, biodiesel is being used in several vehicles in the Park. After two and half years, they have expanded to an entire fleet of B20- and B100-powered vehicles, as well as stationary power units. 
 	
 Greg Zilberfarb of ASG Renaissance, a leading automotive and alternative fuel industry consulting firm, discussed his company's involvement in the "National Biodiesel Game Plan," a concerted effort to gain recognition and statements of support for biodiesel from both light-duty vehicle and heavy-duty vehicle engine manufacturers. 

 	
 "It is our mission to get OEMs-primarily the Big Three-to come out with positive statements on B20," he explained. 
 	
 Claude Borgault of biodiesel producer Rothsay presented an overview of the success of Montreal's BIOBUS program, which was launched in 2002 and lasted 12 months. Borgault said the project was especially important because there was very little data on recycled cooking oils and animal fats, which were both used in the study. The program, which involved 155 buses, was relatively large in scale-the largest such study in North America, by Borgault's assessment. 
 	
 In the cold flow session, Stew Porter of Suncor Energy Products Inc. provided a detailed background on cold flow and crystallization. Porter walked attendees through a variety of "crystal morphology."
 	
 "Crystal size and shape is dependent on fuel composition, even among the same feedstocks," he said. 
 	
 Along with the other panelists, Porter discussed topics such as biodiesel "cloud points" (the point where the fuel first begins to crystallize) and cooling rates. The crystallization patterns of certain forms of biodiesel and biodiesel blends has the experts somewhat perplexed. 
 	
 "There are a lot of interrelationships that are unknown," Porter said. "The variation among feedstocks makes one wonder if the variation is more dependent on the production process than the feedstock, or a combination of the two." 
 
 New possibilities for coproducts
 Another fascinating breakout session, "Industrial Coproducts: New Uses for Glycerin and Other Products," provided a valuable overview of groundbreaking new coproduct research and development.
 	

 Speaker M.G. John Havens of the University of Missouri-Rolla spoke about innovative applications of methyl soyate as a military "obscurant" and an agent to kill microorganisms. Havens is testing methyl soyates as a non-volatile solvent for polystyrene, while also looking at using the polystyrene-methyl soyate mixture as a wood preservative. 
 	
 Speaker Bernard Tao of Purdue University spoke about his efforts to develop a special formulation of glycerin as an aircraft deicing and anti-icing agent. Currently the airlines use propylene and ethylene glycol products for aircraft deicing. Propylene glycol can be a problem because it is toxic to animals, Tao explained. 
 	
 Tao's tests indicate that various formulations of modified glycerin can be created to have physical characteristics very similar to commercially available glycol products. "We can hit this market very nicely using glycerin from biodiesel production," Tao said. "These [glycerin-based deicers and anti-icers] can be extremely effective." 
 	
 In addition, Tao said his research team believes that fractionated biodiesel could be mixed with jet fuel in substantial quantities and meet the lower temperature requirements of the high-altitude flying of commercial aircraft. However, he said, the FAA will require years of stringent testing. 
 
 'Fields of Fuel' raises eyebrows
 USDA Secretary Anne Veneman delivered a taped address during the general session on the second day of regular meetings. Veneman said biodiesel is important to both the USDA and the Bush Administration. 
 	
 Additional presentations included Bob McCormick of the National Renewable Energy Laboratory, Don Erbach of the USDA and Shelly Launey, executive director of the DOE's National Clean Cities program. 
 	
 "Our new goal is to displace petroleum with a greater portfolio of renewable fuels that includes biodiesel, ethanol, natural gas and hybrid vehicles," Launey said. "It gives us further reach."
 	

 Perhaps one of the most popular speakers of the event was filmmaker Joshua Tickell of the Veggie Van Organization. Hard to label, Tickell is a passionate advocate of biodiesel who has authored and published books on the subject and helped promote the fuel worldwide since the mid-1990s. He has produced a short film that's been accepted by 15 international film festivals and he is currently working on a full-length feature documentary about biodiesel. The film is called "Fields of Fuel," and Tickell showed a short clip of the documentary at the conference. 
 	
 The inspiring trailer instigated cheers and loud applause that rang out the minute the preview ended. Tickell said the film will be picked up by the Discovery Channel and broadcast to 227 million viewers in 50 countries. 
 	
 "In short, it's the biggest commercial for biodiesel ever," he said, adding that he hopes to raise about $250,000-largely from the biodiesel industry-to help fund production. 
 
 Quality programs introduced The second day of breakouts were as informative and diverse as the first, offering discussions that ranged from biodiesel heating applications to engine testing and research. 
 	
 A particularly timely session, "BQ-9000: What is it and How Can it Help Us Sell Biodiesel?," provided a crash course on the NBB's "BQ-9000" industry quality program, along with a brief synopsis of a parallel program called "BioDiesel Driven," being proposed by Canada's Topia Energy. 
 	
 Steve Howell, industry consultant and NBB technical chair, provided a review of BQ-9000 and fielded questions from an inquisitive audience. 
 	
 "BQ-9000 is a company certification program-not a certification for the fuel itself, but certification for the companies that buy bulk fuel," Howell said, explaining that the program assures that biodiesel meets ASTM D6751 and other important quality parameters. 
 	
 "There is no such thing as 'BQ-9000 biodiesel.' There are 'BQ-9000 companies,'" Howell reiterated. "[The program] does not certify the fuel, but it does help the fuel because the biodiesel produced and sold by a company that meets this program will meet specifications."
 	

 Specifically, the program establishes "Accredited Producers" and "Certified Marketers." After paying the appropriate fees, a company can qualify as a BQ-9000 Certified Marketer in two ways: (1) buying a fuel from a BQ-9000 Accredited Producer, or (2) buying fuel from a non-accredited producer and independently making sure the fuel meets BQ-9000 specifications. 
 	
 While the program encourages both producers and marketers to become accredited and certified, Howell said it is a totally voluntary program. 
 	
 "This is not a mandatory program at all," he said. "I want to make sure that I drive that point home. It's been created for companies that want to go above and beyond the call of duty and … it may be more than some companies want to take on. 
 	
 Govindh Jayarman, president of Topia Energy, had little time to speak about BioDiesel Driven, but said the program was created concurrent to BQ-9000. Both Jayarman and Howell said they were unaware of each other's parallel efforts until recent months.
 	
 According to Jayarman, BioDiesel Driven producers must subject their product to rigorous and consistent long-term testing. ,
 
 More information about the National Biodiesel Conference & Expo is available online at <a target="_blank" href="http://">www.biodiesel.org.</a>

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Steve Westbrook of the Southwest Research Institute speaks at a session on cold flow issues

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Each conference breakout session drew high attendance

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Biodiesel Industries President Russell Teall (right) being interviewed at the trade show

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More than 500 people attended the first annual National Biodiesel Conference & Expo in Palm Springs, Calif., Feb. 1-4. America's biodiesel event has arrived.

Spring Training

"Thank you for asking that question and I mean that … It gives me an opportunity to talk about that, because I think it is a misperception that needs to be clarified. The biodiesel industry is a big band.
 	
 "The soybean farmers, through their national checkoff started this organization, gave birth to this organization, still fuel this organization, still fuel this industry … they have invested millions and millions of dollars … and I think they deserve some acknowledgement for that. 
 	

 "We've got some United Soybean Farmers here that have been involved-some state soybean leaders as well-those leaders have developed this industry with a very broad vision, and a broad vision that understands that biodiesel is indeed for everyone. 
 	
 "It's going to take all sorts of feedstocks. And the leaders we have on our organizational board-we just switched to a governing board structure-and the farmers are still very well represented on that board, but we have gone to a structure on that board of directors that builds in representation for recycled oils and animal fats. 
 	
 "In fact, those farmers elected someone to be an officer on the executive committee. Fred Wellons [of Baker Commodities] is an officer of the executive committee to represent the rendering interests and the other feedstocks. 
 	
 "So I think that is a very broad step. It's something that really demonstrates that this industry-and this organization-has room for everybody and that we really need to work together."

When National Biodiesel Board Executive Director Joe Jobe was asked about the NBB's inclusion of recycled vegetable oil and animal fats in its legislative priorities, he answered:

On 'Feedstock Neutrality'

The National Biodiesel Board (NBB) held its quarterly board meeting in Palm Springs, Calif., on Feb. 4, prior to the close of the National Biodiesel Conference & Expo 2004. 
 	
 The primary focus of the meeting was to set research priorities, but the meeting began with a number of short business items and reports, during which a "clean audit" was reported on the NBB books. It was also noted that the National Biodiesel Education Program, funded under a new USDA grant, requires separate treatment in the next audit. 
 	
 The NBB's Small Producer Committee was reactivated in response to issues raised in the small producers' session during the conference, and Steve Howell of Marc IV reported that the new ASTM "Fill and Go" standard for biodiesel had not passed an ASTM vote in December 2003 (see article on page 8).
 	
 There was considerable discussion on the importance of funding biodiesel tests for 2007 engine technologies; the petroleum industry and diesel engine manufacturers are reportedly setting up extensive tests for new engines and the NBB could commission parallel tests using biodiesel. Howell noted that these tests are similar to the health effects testing the NBB sponsored a few years ago. He added that the tests are expensive, have to be done up front and must be done to make the fuel legitimate. If the tests are not done now, it will reportedly be more expensive to do them later. Funding was also at question. 
 	
 In past years, a special meeting was held to set research priorities, but this year it was combined with the NBB conference. The priorities serve as a guide to the NBB-and also to outside organizations-when funding decisions are made. A written vote was taken and the results were reported at the meeting. A final version of the priorities will be posted on the NBB Web site. The selection of research priorities does not ensure that the listed funding amounts will be allocated to each activity.
 

 1. National Energy Initiative (low blend), $346,000
 2. State Energy Initiative, $300,000
 3. OEM Program, $395,000
 4. 2007 OEM Technology Development (testing), $700,000
 5. Cold Flow Additives, $200,000
 6. Consumer Education & Outreach, $320,000 (USDA 
 grant $770,000)
 7. Reducing NOx with Existing Engines, $75,000
 8. Heating Oil Development, $125,000
 9. Electrical Generation, $35,000
 10. Fuel Cells, $50,000

Priorities addressed at NBB Board Meeting

In the surface, Kenosha Beef International and Resodyn Corporation are rather unlikely partners. One being a 65-year-old Wisconsin beef processor, and the other a forward-thinking Montana technology firm, the connection is not obvious. 
 	
 And that's what makes the partnership work. 
 	
 Where some businesses might have failed to see the potential for innovation, these companies took a chance, uniting complimentary corporate cultures and forming an exciting new biodiesel venture called BIOSOURCE Fuels LLC. 

 	
 Combining Kenosha Beef's experience, resources and traditional bottom-line focus with Resodyn's proven ability to develop cutting-edge technology, BIOSOURCE Fuels is primed to become a leading biodiesel technology provider. 
 	
 Mike Marquardt, marketing director of BIOSOURCE Fuels and a longtime Kenosha Beef employee, told Biodisel Magazine he was initially impressed by Resodyn's trademarked "ResonantSonics" mixing technology, which provides an apparatus and associated method for mixing materials.
 	
 "We came across Resodyn and were immediately impressed with the company's sonic mixing technology," Marquardt said. "Soon, however, we discovered that they had much more to offer-these were scientists and chemical engineers with a whole lot of talent. We pitched our biodiesel idea and they were on board from the start." 
 	
 According to BIOSOURCE Fuels Program Manager Dick Talley, a member of Resodyn's Butte, Mont., team, the sonic mixing technology that impressed Marquardt affords exquisite control over mixing in a wide range of applications. 
 	
 "The operating principle behind this method of introducing acoustic vibrations into liquids and slurries involves the concept of 'resonant vibration of an elastic medium,'" Talley explained. "The entire system vibrates in resonance, allowing efficient energy transport to the fluid." 
 	
 But the mixing technology wasn't the only factor that attracted Kenosha Beef to Resodyn and the possibility of producing biodiesel.
 	
 Kenosha, a renderer with the ability to supply feedstock for biodiesel and glycerin production, had its eye on pending EPA regulations pertaining to low-sulfur diesel requirements. 
 	
 "Given biodiesel's excellent lubricity characteristics and low sulfur content, it becomes an excellent blend additive to help meet low-sulfur standards while providing a high-quality lubricity additive," Marquardt said, adding that biodiesel does not cause subsequent air quality emission concerns typical of some additives.
 	

 With indications of a favorable market around the corner, Kenosha Beef and Resodyn created BIOSOURCE Fuels in 2002, strategically aligning the new limited liability corporation with The Dupps Company. Dupps is an international construction firm with the ability to design, build and install high-quality process equipment and systems. 
 	
 "They are the world's largest manufacturer of rendering equipment used to recycle animal protein byproducts," Talley said. "With the addition of Dupps, we are completely capable of designing, fabricating, installing, starting up and commissioning multiple biodiesel facilities throughout the world." 
 
 Multi-feedstock utilization 
 According to Talley, BIOSOURCE Fuels has a number of enabling features which, in his own words, "differentiate it from the current technologies on the market." The most critical discriminator, he said, is the company's proprietary ability for multi-feedstock utilization.
 	
 "Our proprietary process technology is insensitive to the free fatty acid content of feedstocks," he told Biodiesel Magazine. "This insensitivity allows the biodiesel producer to manage his production with the most cost-effective feedstock inventory-whether it's low-fatty acid virgin feedstock or high-fatty acid recycled and reclaimed oils." 
 	
 BIOSOURCE Fuels' multi-feedstock approach has been developed to maximize the yield of each feedstock and, according to Talley, will result in some of the "lowest production costs in the industry."
 	
 Another factor that Talley believes gives the company a competitive edge is the elimination of the water wash requirement that is typical of some contemporary biodiesel production technologies. BIOSOURCE Fuels is also a strong advocate of recovering biodiesel's high-value, high-quality glycerin coproduct. 
 	
 "Some contemporary technologies only recover a crude glycerin stream that is nominally 80 to 85 percent pure-and sometimes laden with salts, methanol, and materials other than glycerin and water." 
 	
 Moreover, Talley said, many technology providers believe that glycerin recovery is not economical until large-scale production is achieved. While he admits this is true for conventional technologies, he said the BIOSOURCE Fuels technology development focused on high-quality glycerin recovery from its inception and has resulted in a cost-effective and integrated process that yields clear-97 percent pure-glycerin with nondetectable levels of salt and methanol. 

 	
 "Our glycerin recovery is very economical and can provide an additional 20 percent or more revenue to biodiesel plant operations," Talley said, adding that the company utilizes a continuous process that results in low utility demands, highly consistent product quality, low risk of conditions that would result in off-spec materials, relatively few personnel and infrequent maintenance.
 	
 Armed with that technology, BIOSOURCE Fuels has set out as a full-service international biodiesel plant design/build company. The company has projects pending but, due to client confidentiality agreements, is unable to discuss them, Talley said. 
 
 Montana pilot plant serves as testing ground
 At the company's Butte, Mont., testing facility, BIOSOURCE Fuels has built a biodiesel pilot plant that is helping the company reach its mark. 
 	
 Initially, the pilot plant was built to demonstrate a fully integrated and continuous biodiesel production process technology developed by BIOSOURCE Fuels, Talley explained. However, as the technology matured, the pilot plant's role changed somewhat from a research plant to what the company calls a "technology viability tool."
 	
 "Clients will often ship their proposed feedstock to our pilot facility, and we can produce biodiesel through the process, allowing each client to customize their business model with actual process conditions, requirements, feedstock yield, finished-product quality, energy and mass-balance values unique to their feedstock," Talley said. "As commercial scale facilities come on line with our technology, the role of the pilot plant will again evolve into a training mechanism whereby our clients can send operators to the facility to develop a first-hand understanding of the process reactions and requirements, process conditions and final product recovery and quality."
 	
 Talley told Biodiesel Magazine that the scale of the plant is ideal for training and providing hands-on experience without the impact of a commercial facility.
 	
 Feedstocks utilized at the pilot plant are assayed for moisture, insoluble impurities and unsaponifiable (MIU) content. BIOSOURCE Fuels determines the free fatty acid concentration in order to determine what portion of the feedstock is a glyceride and what portion is unbound fatty acids. Lastly, the company determines the composition of the free fatty acids and determines the amount and length of the various carbon chains. They also complete a glyceride assay to determine what fraction is mono-, di- or tri-glycerides, which plays a key role in the process and yield calculations.

 	
 "The pilot plant has been critical to our success," Talley said. "It has demonstrated the efficiency and validity of the process and has also provided our customers with a level of confidence in the process conditions, feedstock yield, product quality and variable feedstock evaluation."
 
 An unconventional process
 As BIOSOURCE Fuels was taking shape as a company, Talley, Marquardt and other company leaders did not limit themselves to preconceived notions of how biodiesel should be produced. The result is a company that tends to think differently about process technology. 
 	
 "Conventional biodiesel production technology has not evolved since the 1940s and for the most part follows the patents for producing glycerin during World War II, back when methyl ester was just a coproduct," Talley said. "We were very aware of this fact three years ago when we started on a strategic path for research and development of a new process."
 	
 For a multitude of reasons, Talley explained, conventional biodiesel production technologies are well established and work very well-if the feedstocks are limited to clean and virgin materials such as soy oil, rapeseed, palm and tallow. 
 	
 "However, these processes have shortcomings if they try to use the lower-cost feedstocks such as yellow and brown greases," he claimed. "The ability to use these lower-value feedstocks by employing our technology will allow a biodiesel producer to achieve a significant price advantage."
 The economies of scale at work
 With all process technologies, scale becomes a real cost issue.
 	
 "We often receive inquiries from producers who want to make 1 million gallons of biodiesel per year," Talley told Biodiesel Magazine. "If these producers must sell into the commercials market for biodiesel-which is currently about $1.50 to $1.60 per gallon-they are at a real disadvantage."

 	
 Labor, feedstock and energy costs all come into play and the economics become difficult to overcome at small scales of productivity.
 	
 "Each client's business plan is different but we encourage minimum plant sizes of at least 4 million gallons a year," Talley said. 
 
 'High risk, early stage' R&D 
 Resodyn has been awarded two competitive research grants from the USDA SBIR program over the past three years that have, in part, led to the development of BIOSOURCE Fuels' process technology.
 	
 Over the past few years, the evolution of Resodyn from a technology/consulting firm to a viable commercial technology business has been aided significantly by participation in the Small Business Innovation Research (SBIR) programs, Talley told Biodiesel Magazine. Additionally, Resodyn entered into a Cooperative Research and Development Agreement (CRADA) with the USDA EERS program as part of its process research and development work.
 	
 As with the USDA program, the EPA also has its own SBIR program and Resodyn has won a competively awarded grant from the EPA to research and develop another "high risk, early stage" biodiesel production process. 
 	
 "The program is comprised of two phases, which are aligned in the first phase to answer technical feasibility questions and in the second phase to address commercial viability," Talley said. "Many new or emerging technologies begin with just an idea. To flush the idea out, resources are needed and sometimes the resource needs are great. More often than not, the outcome of the research cannot be predicted nor can the return on the investment. This early stage investing is often very high risk with the chance of failure high." 
 	
 According to Talley, the SBIR program recognized this "high-risk" aspect of research and development and provides seed money to mitigate the possibility of technical failure. The program requires that commercial development and industrial acceptance be integrated as soon as major technical milestones are achieved. 

 	
 "In this manner, high-risk, high-value research can be accomplished with a real impetus to engage the technology, or the development, with the commercial marketplace as soon as possible for all of society to benefit," Talley said. "The United States is the only country in the world with such a program, and it shows in our innovation and quality of life." ,
 
 BIOSOURCE Fuels LLC can be reached at (406) 723-2222, or <a href="mailto:dickt@biosourcefuels.com">dickt@biosourcefuels.com</a>

A Montana-based industrial technology company has partnered with a Wisconsin-based beef manufacturer to form BIOSOURCE Fuels LLC. Find out why this young company checked preconceived notions of production at the door.

Rethinking the Process

In brief, what type of production technology does BioDiesel Technologies GmbH (BDT) offer? In your view, what makes the company unique? In other words, what sets BDT apart from the competition? 
 
 BDT: Our mission is to provide small-and medium-size investors an opportunity to be successful entrepreneurs in the energy sector, which has historically been the privilege of only giant multinational companies. BDT is not an engineering company-we do not design and build complicated turn-key factories. We are machine manufacturers. The modular system-a system that, in my view, represents the highest technological level of biodiesel production-enables the investor to start with a modest capacity and enlarge it step by step, if and when the business isrunning profitably. 
 
 Explain "plug and play" technology. 
 
 BDT: Our entire biodiesel processing technology is placed in a container frame. Before delivery, we test each machine in our factory. Therefore only fully-tested and quality-controlled units leave our premises. Start-up does not require weeks or months of adjusting and testing. Rather, after connecting to the utilities and storage tanks, and following a few hours of fine-tuning, our equipment is fully operational. 
 Please identify the key differences between the CPU and IPU? Also, please explain the various models offered for each unit (in terms of production capacity). 
 

 BDT: Our CPUs (compact production units) are meant for the processing of fresh vegetable oils. In chemistry terms, they are meant for processing feedstock with FFA (free fatty acid) content smaller than 1.5 percent. These units are built with 500- and 1,000-litre-per-hour capacities, and they utilize continous transesterification using a KoH or NaOh catalyst. The IPUs (integrated production units) represent a more complex solution, with the aim to process raw materials over 1.5 percent FFA (yellow and brown grease, grease trap waste, animal tallow and other fats), and provide a high-quality glycerine as a highly marketable byproduct. This unit turns the FFA content also to valuable biodiesel, without the use of a catalyst. In the case of the IPU, it is the heat and pressure that dominates the process, the capacity of our IPU 1200 is 1,200 litres per hour. 
 
 Beyond the units, what additional major equipment, as well as construction, assembly and start-up costs (and space considerations) would a future producer need to consider when buying a BDT unit? How does your company help determine those requirements? 
 
 BDT: As we are producing machines, turn-key project preparation-especially in the United States-is not in the scope of our activities. However, before going into detailed negotiations with our customers, we request them to fill out a questionnaire, and on the basis of that, we provide feasibility studies, construction and planning assistance, preparation of applications for permissions. Training of the personnel of the buyer and the assistance by our engineers in the start-up operation is included in our prices. We do have enough experience and we are flexible enough to assist our partners to their utmost satisfaction. 
 
 BDT units are built inside a 20-foot frame. How wide are they? How high? 
 
 BDT: The containters are actually 19.1 feet long, 8 feet wide and 8.6 feet high. 
 
 And they are shipped like regular ISO containers? 
 

 BDT: Yes, and it means that these containerized units are the smallest production units in the range of their capacities in the world. 
 What is the delivery time on these models? In other words, how long would it take an American producer to receive a single CPU? 
 
 BDT: Presently the delivery time on a CPU is five months, while IPUs take eight months to be delivered, from the receipt of prepayment. 
 
 The CPU needs one operator, while the IPU can be operated remotely. Please explain the disparity. 
 
 BDT: As the CPU uses a catalyst, it is to be fed manually, and this always requires a person on the site. The IPU does not use a catalyst, the flow of fluids (feedstock, methanol, methylester, glycerine) and other production parameters can be monitored by remote control. 
 
 The IPU can be adapted for the production of ethyl esters. Please explain the significance of this. 
 

 BDT: More and more customers request ethanol-based production of biodiesel, due to favorable ethanol prices or availability of ethanol in certain areas. This is common, for instance, in certain parts of the United States, Brazil and India. We provide those customers with a technology that uses locally-produced-and more popular-ethanol, especially in areas where there might be shortages of methanol or where methanol is higher priced. We have to adapt our process to ethanol. Our present tests show that very soon we will be on the market with our ethyl ester production equipment, and we will be positioned to satisfy another large group of customers. 
 What sort of energy requirements are needed for these models? 
 
 BDT: To be precise, the CPU 500 needs 75 kilowatts, the CPU 1000 needs 100 kilowatts and the IPU 1200 needs 200 kilowatts. The practical consumption is usually at 80 percent of the installed value. 
 
 Where are BDT units being used today? How many are in use? 
 
 BDT: We can proudly show more than five working units in Austria, Germany and Spain, while contracts signed with Bulgarian, Polish and United Kingdom customers will soon increase this number to 10.
 
 Are these types of production units popular in the United States yet? 
 
 BDT: In the United States, we receive more and more inquiries. Presently, we are in correspondence with more than 100 U.S. companies. Based on our recent successful presence at the National Biodiesel Conference and Expo in Palm Springs, Calif., we are hopeful that our first unit will be operating in Georgia or California very soon. We are convinced that sales will increase in the United States, especially if the energy bill passes and encourages American soybean oil producers to turn towards biodiesel. 

 
 Where will BDT be in five years? What kind of growth is BDT expecting in the biodiesel industry worldwide? 
 
 BDT: We want to be the market leaders in the medium-size, containerized units. The general boom all over the world will most likely enable us to produce 20 to 30 containers a year. And if the need is higher, we have capacity enough to satisfy the demand. The biodiesel industry is presently finding its rightful place in the world economy. Improved and more effective technologies, combined with cheaper and continuously available energy seeds, will provide the basis for the industry to flourish. 
 
 Dr. Kondor can be reached at<a href="mailto: kondor.l@biodieseltechnologies.com"> kondor.l@biodieseltechnologies.com</a>

Austria's BDT Eyes- US Market for Modular Unitsl

It looks like a typical self-serve gas pump. It has shiny reflective metal and glistening white trim, with instructions on how to pay inside. 
 	
 But this pump is different. 
 	
 It's connected to a 1,000-gallon storage tank decorated with sunflowers and the word "biodiesel." A meticulous sign on the pump explains the fuel and its cold weather properties. Unfortunately, with the adoption of new regulations by the California Department of Food and Agriculture (CDFA) Division of Measurement Standards (DMS), this biodiesel pump may soon be declared illegal.
 	
 The regulations, which were announced to the public in early February, could have serious consequences for all biodiesel stakeholders in California, because they would limit sales of biodiesel over B5, discourage new customers and prohibit the sale of B100 to the public. But the consequences go beyond California, because at least 30 other states utilize portions of California's fuel regulations. California is also a leader in the use of B20 and B100, with 11 public fueling stations and many fleets utilizing biodiesel to meet their EPA Alternative Fuel Mandate. Much of this fuel is produced in other states.
 	

 The period for public comment has passed but the rules have not been finalized. They are due to go into effect in early April. Meanwhile, biodiesel stakeholders outside and within California are putting their heads together to create strategies for adapting to the regulations, or promoting amendments to them.
 	
 Three areas are addressed in the proposed regulations: warning labels for biodiesel fuel, the standards for biodiesel before blending with diesel, and standards for the final blended fuels. The stringent regulations were revised by the CDFA in response to the suggestions of several petroleum business and vehicle manufacturing associations.
 	
 Yokayo Biofuels is one business that would be severely affected by the proposed CDFA restrictions. The distributors of B100 opened a pump last November at the Solar Living Center in Hopland. This convenient spot is one of three public pumps they supply, along with co-ops, fleets, businesses, and individuals. "We have no plans on reducing our distribution of B100 as fuel," insists Kumar Plocher, president of Yokayo Biofuels.
 	
 Further north in Laytonville, Kimber Holmes just took out a business license for her biodiesel delivery business last April, and she was looking forward to opening a small station by the highway. "I just got a $1500 permit to pump fuel into people's cars," Homes said. "That's a huge amount of money for a mom and pop business. Why didn't Weights and Measures tell me I wouldn't be able to do this in a few months?"
 	
 "This will probably be my final straw," stated Mike Lewis, general manager of San Diego's state-of-the-art Regional Transportation Center (RTC). "There are an unlimited number of government agencies that are involved in our business, and it gets to a point where you want to quit. . . if I have to deal with this anymore, I'll just drain the tank, put diesel stickers on it, and live a happy gas station owner's life."
 	
 The RTC opened last August as not only the first public biodiesel station from Long Beach south, but as the most state-of-the-art alternative fueling station in the United States. Biodiesel is not profitable for RTC, but Lewis is willing to provide fuel service if the regulatory obstacles don't increase.
 	
 The first new regulation requires that all pumps or containers of fuel above B5 have a label reading: "CAUTION: THIS FUEL MAY NOT BE SUITABLE FOR USE IN SOME DIESEL ENGINE VEHICLES. ITS USE MAY VOID YOUR WARRANTY, CHECK YOUR ENGINE MANUAL OR WITH YOUR ENGINE MANUFACTURER BEFORE USING."
 	
 "We've never once had a legitimate claim of damage due to biodiesel," Lewis asserted. "Now we have a warning that it's not for use in VW's." Volkswagon is the only vehicle manufacturer that specifically states that the use of biodiesel will void a warranty. While engine warranty issues continue to be controversial, several engine manufacturers have even clearly written that the use of biodiesel will not void their warranties.
 	
 The controversy regarding the regulation revolves around the ASTM standard D6751, for biodiesel blending stock. The regulation does not represent a major change in regulations but a mandate to enforce it. ASTM D6751 clearly states that it's a standard for a "blend stock," not a neat fuel, whether it's used in B2 or B99. Most biodiesel sold in the U.S. meets these strict standards. Unfortunately, there currently is no standard for the neat fuel.

 	
 Many B100 users in California were surprised to learn that the ASTM tested fuel they had been purchasing for years had never been officially approved. But this wasn't a problem when B100 pumps made their first public appearance.
 	
 "The first station with B100 was an Olympian station (in San Francisco), and state officials were at the opening," said Graham Noyes, vice president of World Energy. "The state never took action against the station. Only recently has the state taken a second look. There may be some interests that see biodiesel as a threat to their economic well-being. . . they're trying to toss up some regulatory hurdles."
 	
 David Lazier, at the CDFA explained, "Our initial proposal was to use ASTM D6751 for neat fuel, and we proposed D975 for blends. . . . In the comment period, it became clear that we had overstepped our boundaries by adapting D6751 for finished fuel, so we changed it."
 	
 In the proposed rules ASTM D975, the standard for diesel fuel, would be required for all finished biodiesel blends. This is not a problem with B2 or B5. "Studies show that B20 can meet D975, depending on the viscosity and distillation of the petroleum used," said Scott Hughes, state regulation analyst for National Biodiesel Board (NBB). But blends above B20 differ greatly from petroleum, mostly because biodiesel is not a distilled fuel.
 	
 If it were to pass D975, B100 could be sold, said Mike Cleary, director at CDFA DMS. "We'd have to look at it on a case-by-case basis. If it didn't pass the test, we'd have to take the product off sale."
 	
 The proposed legislation package will probably spend the month of March in the Office of Administrative Law, where it will be scrutinized for duplication with other laws and unnecessary language. Public notices and comments will be reviewed. This is a closed process; no further public comments will be considered. Next, the package will proceed to the desk of the Secretary of State.
 	
 Regulations experts from the NBB have been talking with DMS officials, and have identified a couple of paths forward to mitigate the possible consequences of the rules.
 	
 Hughes has been working for several months to promote "labels that are more positive for consumers, more user-friendly." He has been communicating with OEMs (Original Engine Manufacturers) to "develop a consensus line around cautionary statements, and the need to have all blends labeled. We plan to take that to the Secretary of Food and Agriculture and show them that here's a consensus that wasn't part of the original consideration."
 	

 They're also working with ASTM to develop a new "Fill and Go" specification for B20, and a "Stand Alone" specification for B100. The process may take 18 months, but it's a priority for biodiesel stakeholders because with EPACT regulations, federal, state, and utility fleets will have to decrease their petroleum use by 20 percent by 2005. With B20 as the blend of choice by EPACT users, demand for the fuel is expected to increase dramatically.
 	
 The legislative process may be invoked to promote interim standards until specific ASTM standards for B20 and B100 are developed. Concerning interim standards, Lazier remarked, "I am reasonably sure that our office would not be opposed to a law."
 	
 With so many state legislatures looking to California for direction, all biodiesel stakeholders are encouraged to write to their state representatives to support interim ASTM standards for B20 and B100.
 	
 It may be possible for biodiesel marketers to apply for a variance from the CDFA. There is a provision in the law that allows centrally located fleets and co-ops to use developmental fuels for two years, while collecting data on the real world experience for ASTM. The variance would probably be renewable.
 	
 Leaders at NBB are looking into an "umbrella variance" for fleets and co-ops in California, to streamline the process. State DMS officials have responded positively to the idea of dealing with one organization, instead of hundreds of variance requests.
 	
 "The variance would contain reporting requirements for the NBB to abide by," explained Lazier. "They would have to report on a quarterly basis about the gallonage, the fleets using it, and any catastrophic failures. The whole idea of using a variance is that it's working towards an ASTM standard."
 	
 While NBB leaders continue dialogue with state officials, the numerous B100 providers and users of California are beginning to create strategies. By forming a statewide biodiesel co-op, some people hope to work within the variance process. Customer education materials could be shared and fuel could be purchased in bulk. 
 	
 "It's unfortunate that we have to go that route, but it's positive in that it might give us lobby power," said Ray Newkirk, owner of Pacific Biofuel in Santa Cruz. "We jump through the hoops, and when all the hoops are jumped through, it might help small producers and distributors. We must turn obstacles into opportunities." ,
 
 Louisa Aronow is a freelance writer living in California.

B100 at Yokayo Biofuels' pump in Hopland, Calif.

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B20 pump at San Diego's Regional Transportation Center (RTC)

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High level blends-everything above B5-could be limited, even banned, in California under new state regulations.

B100 California's Endangered SPECIES?

Small and medium sized biodiesel producers are growingly interested in exploring simpler, more environment friendly ways to make biodiesel. Several factors make these alternative production methods appealing: (1) producers can avoid the labor-intensive glycerol removal process, (2) utilize ethanol instead of methanol and (3) sidestep the hazardous use of sodium hydroxide or other strong alkali. Currently, methanol is preferred over ethanol only because it is less sensitive to water in the alkali procedure. Imagine a process where one doesn't have to worry about this (and where less toxic ethanol could be used).

 	
 Processes that allow biodiesel producers to simply mix alcohol and oil, pour the liquid over a catalyst and collect the products as they drip into a receiver, are trouble-free, flexible and growingly viable. Glycerol is still produced, but there is no need to wash the biodiesel esters and neutralize the corrosive alkali. 
 
 Drawbacks of standard methods
 Standard methods for producing biodiesel, a mixture of alkyl (methyl or ethyl) esters of fatty acids, is to heat vegetable oils or mixed animal-vegetable oils with (a) a strong alkali and (b) methanol or ethanol. Biodiesel forms during a process known as transesterifcation, which is simply the exchange of the original alkyl group of the fat (oil) with the methyl group of the methanol (or ethyl group of the ethanol). The diagram below displays transesterification. 
 
 RCOOR' (fat or oil) + NaOH (alkali) + MeOH (methanol) ? RCOOMe + glycerol (biodiesel ester)
 
 The RCOOMe (mixture of several methyl esters) is the biodiesel (methyl ester of fatty acids from the animal or vegetable oil). 
 	
 The final biodiesel product still has to be washed with water, neutralized and "dried" or "salted out" (to remove water) to be suitable for use as a biodiesel fuel or fuel additive.
 	
 The initial alkali reaction transesterification reaction requires the removal of glycerol, partway through the reaction, which is a real time consumer and is labor intensive.
 	
 Methanol is convenient, because of its insensitivity to water, but it is a questionable environmental choice. Methanol is highly toxic to humans. Even a few milliliters can cause blindness and violent nausea, as historians can tell us. During the Prohibition, when ethanol was not readily available, people drank "wood alcohol" (methanol) and went blind, or even died. Vapors of methanol are irritating to the lungs and can damage the eyes, even in small doses. Methanol is metabolized by the body to formaldehyde (which is also very toxic) and then to formic acid (which is also toxic). Formic acid is found in the bodies of stinging ants.

 	
 Sodium hydroxide, also known as "lye," is very corrosive. It also dissolves slowly in methanol. On a large scale, solid sodium hydroxide is exothermic (evolves heat) and can cause the alcohol to heat or boil. Handling sodium hydroxide and methanol, can be dangerous to workers-especially those without chemistry education and laboratory safety experience. A far safer procedure is to avoid the sodium hydroxide altogether.
 	
 Another problem is the interference of glycerol (glycerine or propane-1, 2, 3-triol). The glycerol has to be removed in order to drive the equilibrium of the reaction to the right, that is, to get a good yield of the biodiesel methyl esters (instead of returning to the original oil and alcohol).
 
 Using a Simple, Greener Chemistry
 For many producers-and future producers-the idea of using a process in which you could simply mix alcohol and oil, pour it over a catalyst and collect the products as they drip into a receiver (flask, jar or other collection vessel) is very attractive. 
 	
 There's good news. These non-alkali methods have been developed by research chemists. These processes are not only simple, but flexible as well. 
 	
 First, a biodiesel producer could easily use ethanol in place of methanol, even if the ethanol contains a little water. Ethanol is much less toxic than methanol, and you've probably tasted it if you've ever consumed gin, vodka, rum or wine. Ethanol is metabolized in the body to acetaldehyde, which quickly converts to acetic acid (which in dilute form is ordinary vinegar). The author doesn't recommend that you start drinking, but at least you'll know that you and your staff are less likely to go blind if you're exposed to a little alcohol vapor from the ethanol (caution: nobody suggests drinking the ethanol at home).
 	
 Ethanol is readily available from fermentation of corn, of course. Now since we know that there's plenty of vegetable oil (corn oil from the Midwest, palm kernel oil, cottonseed oil, soybean oil, canola oil from Canada and avocado oil from California) and plenty of Midwestern corn-produced ethanol, we can turn on the "green chemistry" machine and start making biodiesel fuel with a minimum of environmental waste disposal problems and fewer worker safety hazards. Let's call this "ethyl biodiesel," to distinguish from the "methyl biodiesel " derived from methanol.
 
 Catalysts: Enzymes or OrganometallicsWhat catalysts should we use if we're not using an alkali, like sodium hydroxide? Well, for one thing, NaOH is not a catalyst but actually a co-reactant, because you have to weigh out a certain amount. Catalysts can be used in small amounts. They do not enter into the reaction. They can be used over and over again without replacement.

 	
 These new catalysts for converting vegetable oil into ethyl biodiesel are not the same as the platinum catalysts in your auto engine. Two types of catalysts can be used: (a) biochemical enzymes or (b) "organometallics" (that is, inert catalysts based on organic and inorganic chemistry).
 	
 You might know something about biochemically-derived enzymes, even if you are not a scientist. Enzymes are used in converting (a) milk into cheese, and (b) hops into beer. They are also used in modern enzyme based detergents.
 	
 Enzymes for making biodiesel esters include lipases and other "esterases." The enzymes can be derived from several different sources, ranging from bacterial and yeast cells to pork tissue (depending on your preferences). 
 	
 The enzymatic process could simply be called the "trickle down theory." All you need to do is to mix the reactants (oil and alcohol/EtOH) and pour them over the column containing the enzyme. You can already buy the enzymes supported on an inexpensive material to prepare your enzyme column. 
 	
 The advantages? Well, there's (a) no heating (the reaction takes place at room temperature), (b) no two-step reactions (the reaction goes to completion in one step), (c) no neutralization for the caustic alkali (this is a neutral pH reaction), (d) no water washing (no acid to remove), and (e) no drying to remove excess water. If you want the "pure" biodiesel esters-free from the glycerol and anything else-you can remove the glycerol by gravity (just use a large glass, gravity separator).
 
 Organometallic catalysts are even better. They're commercially available and can also be supported on inexpensive clay, diatomaceous earth, zeolites and other common materials. You can also use the "trickle-down theory" and just pour the oil and alcohol over the column and watch it "trickle down" the column into your waiting container. For many small producers, especially in "environmentally aware" states, this method is much more suitable than using the harsh, corrosive chemicals and worrying about the chemical waste.
 
 Dr. Novinson works with chemists, chemical engineers, biologists and other scientists with skills in environmental engineering, toxicology, government regulations, and analytical chemistry.

The Ethyl Biodiesel Alternative

More than 300 people from 28 countries gathered in Berlin in late November to discuss global efforts to extend fossil fuel supplies with renewable fuels like biodiesel and ethanol. 
 	 
 Focusing primarily on the European Union (EU), The 4th European Motor Biofuels Forum, held November 24-25, yielded an exceptionally broad overview of the global rise of biofuels. Discussions centered on policy, production and feedstocks. Marketplace issues and fuel quality standards were also addressed.

 
 Political commitment in place In his opening remarks, the chairman of the influential Union for Promoting Oilseeds and Proteinplants (UFOP), Dr. Klaus Kliem, stated, "The Federal Government has emphasized its political commitment for opening new outlets and sources of income for farming and forestry. I am grateful for the cross-party consensus in Parliament which will allow biofuels to be freed from taxation until at least the end of 2009. This is an important signal for production currently developing in Germany." 
 	
 Kliem went on to say that the EU member states must choose a path for future research and development-for both biodiesel and ethanol-and provide a forecast of the development of new biological fuels, which are classified under the generic term "Sundiesel."
 	
 Support for the continuing development of the biofuels industry in EU states (and EU "accession" nations) was echoed again and again by representatives of key government agencies, such as Matthias Berninger of the Federal Ministry of Consumer Protection, Food and Agriculture, as well as Mechtild Rothe, a member of the European Parliament from Belgium, who said she supports the biofuels mandate because member states would avoid compliance without it.	
 The policy is in place to increase the volume of biofuels produced and used in EU nations, but most of the accession countries-nations that will eventually become members of the EU-are also working toward complying with the biofuels program, according to Magdalena Rogulska, a system analyst at the IMBER Institute in Poland.
 	
 Don Stevens, program manager at Pacific Northwest Laboratory in Richland, Wash., clarified how policies help remove the barriers to biofuels implementation. Those barriers, he said, are primarily: product cost, technology risk, infrastructure issues, vehicle compatibility and "momentum." The primary types of policies that have historically been implemented have been taxation-based, agricultural-based or fuel mandates, Stevens explained. 
 
 Remedying emissions problems European Biodiesel Board President Moritz Gaede explained that, with the exception of the transportation sector, all other sectors of greenhouse gas emissions in the EU have improved. Increased use of biofuels is the only viable way to remedy that problem, Gaede said, noting that the transportation sector is almost 100 percent dependent on oil.
 
 Marketplace growing 

 Use of biodiesel within the 15-member EU is far more developed than any other country or region in the world. In 2003, approximately 1.35 million metric tons (nearly 1.5 tons) of biodiesel were produced in what is called the"EU-15." By 2005, 10 more countries could become members of the EU, adding biodiesel production capacity. 
 	
 What does the 2 percent mandate target mean in terms of a future "EU-25?" 
 	
 UFOP executive Dieter Bockey explained, "Many discussions have been held on the marketing of pure biodiesel or as an additive to diesel fuels. However, the success achieved in marketing pure biodiesel in Germany and Austria is [unchallenged]. In these countries, biodiesel is no longer a 'no-name product'-it's generally known to the public."
 	
 Bockey continued, "The marketing of the pure product opens a series of positive arguments to improve [consumer acceptance and political acceptance among European lawmakers]." 
 	
 At hand are the politically popular attributes of biodiesel, including its biodegradability, its ability to reduce exhaust emissions, and its non-toxicity.
 	
 In Germany alone, biodiesel is currently available at over 1,700 public filling stations. In fact, every 10th public filling station in Germany will soon supply biodiesel, according to industry analysts. The marketing of biodiesel in Germany, through a public filling station network, will be further extended in the future. For small, independent filling stations in Germany, biodiesel has become an important supplementary product that's given many retailers a competitive edge in an aggressive marketplace. 
 
 Imports will be monitored Imports of biodiesel into the EU from Brazil draw considerable attention among producers and supporters of biodiesel in the EU. However, the balance and flow of biodiesel into EU member countries will be closely monitored in order to control saturation of the marketplace as the accession countries begin to produce more biofuels and become members.
 
 New biodiesel standard to be published soonAs has been experienced worldwide with the fuel ethanol industry, quality control is of utmost importance to both consumers and automobile manufacturers. The vast majority of private cars in Europe have diesel engines rather than gasoline, as in the United States. According to Barry Cahill with the Fuels Engineering department of PSA Peugeot Citroen, a new European automotive fuel standard for biodiesel has been designed and should be published soon. The standard was made in response to a mandate given to CEN, the European standardization organization, and was overseen by a group that usually deals with fossil fuels. A task force drawn from biodiesel producers, distributors and users has pooled its expertise to create what is intended to be the highest quality industrial specification for biodiesel within the bounds of today's know-how. The standard is a timely addition to the European standards and will contribute to the European Union's policy to extend the use of biofuels. The debate on the specification spanned more than two years and nine meetings. 

 
 EU is feedstock neutral 
 Kerr Walker of the Scottish Agricultural College presented a review of oilseeds for biodiesel in the EU. Rapeseed and sunflower seed are dominant feedstocks in the EU, he said. Likewise, rapeseed is the primary feedstock in Canada, and soybean oil is the leading feedstock in the U.S. However, new temperate oils crops are under investigation in the EU: camelina, dual purpose hemp and flax, mustard, borage, coriander, meadowfoam, marigold and safflower, to name a few. Walker also reported that in India, plant byproduct oils come from rice bran, cottonseed and seeds of tobacco, melon, chilli and jute. 
 	
 Walker predicted that traditional crop sources of biodiesel are likely to be higher yielding and approach ideal fatty acid profiles. Animal fats, he said, may offer a cheaper source of feedstock, but greater management skills are required in production of the ester. Walker concluded by saying, "Although offering interesting opportunities, new crops are unlikely to produce a cheap source of biodiesel feedstock in the short-term." 
 	
 Graeme Marshall, director of Clean Fuels, Environment Australia, said that the Australian government is trying to learn from the biofuels experiences of Europe and the United States. The primary biodiesel feedstock in Australia is rapeseed and Malaysian palm oil. 
 	
 In Austria, a new collection and recycling system for used cooking oil (recycled vegetable oil), called the "Öli-System," has been established. Spokesman Klaus Meyer said that what makes Öli so popular is three-liter containers for households and 25-liter containers for the catering industry. They offer a unique, free-of-charge, container-exchange service. Impressively, an estimated 1 million households in six federal counties in Austria collect used cooking oil through the Öli-System.
 	
 By almost every measure, the EU is far ahead of the rest of the world in biodiesel production and use, and it will likely continue along this impressive path forward. As countries such as the United States and Australia build production capacity and refueling infrastructure, the challenges already overcome by the EU will serve as a guidebook to building success. In other words, we can learn from its experiences in biodiesel just as other countries have looked to the United States and Brazil for lessons from the ethanol industry. ,
 
 For more information about the European Motor Biofuels Forum,visit <a target="_blank" href="http://">www.europoint-bv.com/events.</a>

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Werner Korbitz of the Austrian Biodiesel Institute (left) and Joe Jobe of the National Biodiesel Board

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European Motor Biofuels Forum addresses biofuels policy and production

Commited to the Directive

As biodiesel production and use grows in the United States and flourishes in Europe, Canadian canola and soybean growers have teamed with renderers to create a national coalition specifically aimed at building-and shaping-the industry north of the border. 
 	

 The Biodiesel Association of Canada (BAC) was formed in December 2003 to support government efforts to foster the growth of Canada's biodiesel industry. The BAC will advance proposed policies, legislation and regulations-on both a national and provincial level-that will impact the biodiesel industry. The association will also strive to broaden the scope of domestic and export market opportunities for biodiesel. Like its American and European counterparts, the BAC will become a source of information on all aspects of biodiesel, taking part in studies, research and development, and discussion forums.
 	
 Brad Hanmer, a 30-year-old canola farmer from Goven, Saskatchewan, has been selected as the BAC's chairman. Hanmer owns his family's canola business, Hanmer Seeds Ltd., and is active on several agricultural boards, including the Canadian Canola Growers. He was also named the BAC's spokesman.
 	
 "The BAC wanted to bring commercial interest to Canada," Hanmer said. "A lot of good [biodiesel] research has been done worldwide, and we wanted to form a group that could build upon that research and foster economic interest of how biodiesel can work. For any research projects that are being done, we wanted to be a one-stop shop for communication for how biodiesel could be brought to light."
 	
 Rick Watson of the Canadian Oilseed Processors Association (COPA) was named the vice chair of the BAC. Watson is also the vice president of Oil Processing for Bunge Canada in Toronto.
 	
 The inaugural meeting was held in December 2003 in Winnipeg, Manitoba. The latest meeting on Feb. 24, again in Winnipeg, addressed government issues the group is working on. Technical and economic committees, along with subcommittees, have been formed to deal with these issues.
 	
 The 10-member BAC board consists of three Canadian Oilseed Processors Association members, three Canadian Renderers Association members, three Canola Growers Association members and one member from the Ontario Soybean Growers.
 	
 "We didn't want to be exclusive," Hanmer said. "We wanted to make sure that all potential feedstocks and economic regions that would allow biodiesel production to occur wouldn't be left out."
 	
 Hanmer is perhaps the ideal spokesperson for the BAC because of his self-declared neutrality.
 	
 "I'm not a biodiesel supplier," Hanmer told Biodiesel Magazine. "I'm a raw product feedstock grower just trying to get the biodiesel industry established."

 	
 With last year's removal of the 4-cents-per-liter excise tax, Canada's biodiesel industry now has the opportunity to grow. In addition, Canada has the agricultural products to support a biodiesel industry, mainly canola and soybeans. Canola, the largest crop grown in the country, spreads across 14 million acres. Saskatchewan is the top canola-producing province. About 46 percent of the country's canola originates there. As for soybeans, approximately 500,000 acres grow in Canada, mainly in Ontario. 
 	
 According to Hanmer, the BAC will use the European Biodiesel Board and the National Biodiesel Board in the United States as models for its own organization.
 	
 "What our American friends have done is broken the trail," Hanmer told Biodiesel Magazine. "We can look at that path and see which one we want to take. We're prepared to work together on many issues. Having the National Biodiesel Board is a fundamental alliance to bring biodiesel to fruition in Canada."
 	
 Hanmer said he feels an international biodiesel association should be formed in the future. He said inquiries about that type of organization have already been made and the possibility is being investigated. ,

Canola, soybean growers team with renderers to form Biodiesel Association of Canada (BAC)

Northern Exposure

March 31, 2004
 Waukesha, Wisconsin
 Country Inn Hotel & Conference Center
 The Wisconsin Alternative Fuels Task Force and the University of Wisconsin-Milwaukee Center for Alternative Fuel will host this workshop. Organizers intend to educate diesel vehicle fleet managers of their biodiesel/biofuels options. Overall, the workshop will address biodiesel fuel use, biodiesel implementation and infrastructure, heavy-duty engine legislation and biodiesel fleet experience. 
 ONLINE: <a target="_blank" href="http://">www.doa.state.wi.us </a>(search for "biodiesel")

Wisconsin Workshop to Advance Biodiesel

April 2, 2004
 57 Locations Nationwide
 Held in multiple locations nationwide, this one-day event will be a dazzling display of how powerful the choice to use alternative fuel vehicles (AFVs) can be. The objective of the event is to build awareness and enthusiasm for AFVs and for clean-fueled, energy-efficient, and other advanced-technology vehicles as viable options for consumer and fleet transportation choice. Participants will see the trends, find the options, meet the experts, explore ownership opportunities, and discover AFV training and job possibilities. 

 ONLINE: <a href="mailto:www.nationalafvdayodyssey.org">www.nationalafvdayodyssey.org</a>

National AVF Day Odyssey

May 9-12, 2004
 Chattanooga, Tennessee
 Chattanooga Choo Choo Holiday Inn & Centennial Center
 Hosted by the Oak Ridge National Laboratory, this symposium continues a series that focuses on improving the technology and economics of fuels and chemicals production. This year's program provides the opportunity for experts from around the world to gather and discuss the latest research breakthroughs and results in biotechnology. A variety of formal technical sessions, a poster session, and informal discussion groups allow the exchange of new information among attendees from industrial, academic, and government sectors. 
 ONLINE: <a target="_blank" href="http://">www.ct.ornl.gov/symposium</a>

26th Symposium on Biotechnology For Fuels and Chemicals

May 9-12, 2004

 Cincinnati, Ohio
 Cincinnati Convention Center
 According to the American Oil Chemists Society, this event is evolving to meet the needs of the fats and oils industry. This year, new and exciting "hot topic" programming will be offered that will cross technical interests. Throughout the technical program are presentations by industry, government and academia that discuss trends, research, and regulations in the field. Over 500 oral papers and 150 posters will be presented during the meeting. The conference is an ideal place to meet with vendors offering products and services to the biodiesel industry.
 ONLINE: <a target="_blank" href="http://">http://www.aocs.org/meetings</a>

95th AOCS Annual Meeting & Expo

May 10-14, 2004
 Rome, Italy
 Palazzo dei Congressi
 Part of the European Series of Conferences on Biomass, this event is touted as a "formidable meeting." The aim of the conference is to arrive at "distinct conclusions" with respect to the future of using biomass for energy.
 ONLINE: <a target="_blank" href="http://">www.conference-biomass.com</a>

World Conference & Technology Exhibition on Biomass

June 22-25, 2004 
 Madison, Wisconsin

 Monona Terrace Convention Center
 Held in conjunction with the International Fuel Ethanol Workshop, this introductory workshop will start with the basics but will include enough up-to-date information to interest those with a technical background. The workshop will cover biodiesel markets and benefits, production technologies, quality control, distribution and storage issues, experiences of fleet operators and fuel users, tips on organizing a biodiesel project, updates on state and federal incentives and a look at future industry developments. This year's event is being held in partnership with Biodiesel Magazine. 
 ONLINE: <a target="_blank" href="http://">www.bbibiofuels.com/few</a>

Biodiesel 101 / 20th Annual International Fuel Ethanol Workshop & Trade Show

July 20-22, 2004
 New York, New York
 Jacob K. Javits Convention Center
 This fourth annual event is sponsored by the Federal Fleet Policy Council, the U.S. General Services Administration's Office of Government-wide Policy and GSA Fleet. Organizers bill the conference as a massive annual training opportunity centered on the essential topics related to the management and operation of the entire federal motor vehicle fleet of almost 580,000 vehicles.
 ONLINE: <a target="_blank" href="http://">www.fedfleet.org/generalinformation.asp</a>

FedFleet 2004

October 25-27, 2004
 Sacramento, California
 Hyatt Regency Sacramento
 This dynamic new conference is modeled after the influential and successful International Fuel Ethanol Workshop & Trade Show. In its first year, the event will focus on regional technical and policy issues concerning commercial-scale biodiesel and ethanol production, market development and policy drivers. Attendees will have access to current producers, design/build engineers, industry vendors, marketers, feedstock producers, policy makers, researchers, as well as other industry experts and stakeholders. 

 ONLINE: ww<a target="_blank" href="http://">w.bbibiofuels.com/biofuelsworkshop</a>

Biofuels: Workshop & Trade Show Western & Pacific Region

QUESTION:
 The USDA's Commodity Credit Corporation (CCC) adopted several changes in 2003 for biodiesel. This included modifying the conversion factor related to the price of soy oil, increasing eligible feedstocks and making reimbursement payments on base production through 2005 in addition to payments on increased production. How are these payments determined?
 
 ANSWER:
 	
 While the purpose of the program is straightforward-to reimburse bioenergy producers for part of their eligible feedstock costs-the payment formula can be confusing.
 	
 Payment varies depending on feedstock used, including soy oil, animal fats and greases, and other vegetable-based feedstocks. All CCC biodiesel payments are based on a soybean conversion factor and the price of soy oil, adjusted by comparing the applicable oil or grease price of non-soybean feedstock to the market price of soy oil. 

 	
 Assume a plant has full capacity of 10 mmgy. In 2003, the plant's first year of operation, it produced 5 million gallons. In 2004, it increased to 6 million gallons. Determine the plant's gross payable units (GPU) for all biodiesel production. This has two components:
 
 1) Additional production payments 
 (APP), made on increased production.
 
 2) Base production payments (BPP), made 
 on production that doesn't represent an 
 increase from the previous year. 
 	
 APP is measured by dividing the gallons of increased biodiesel production by a "conversion factor" of 1.4. This factor is used to convert fuel gallons into commodity units, such as bushels. A conversion factor of 1.4 means one bushel of soybeans produces 1.4 gallons of biodiesel. 
 	
 In 2003, the plant produced 5 million gallons and the APP is 3,571,428 (5,000,000/1.4). (In 2003, the plant's APP is also its GPU, as our hypothetical had no 2002 production.) 
 	

 To determine the plant's CCC payment, convert the GPU (3,571,428) to a net payable unit (NPU) dividing by a "plant capacity conversion factor"-2.5 if the plant is under 65 million gallons annual capacity, and 3.5 if capacity exceeds that. For our plant, the NPU is 1,428,571.
 	
 Convert NPU to a "gross payment" by multiplying the net payable unit by the posted county price where the plant is located. If the quarterly price for soybeans is $5.95, the gross payment formula for the plant is: 3,571,428 ÷ 2.5 = 1,428,571; 1,428,571 x $5.95 = $8,499,998. 
 	
 As producers can't receive more than 5 percent of the program's available $150 million annual funding, the plant was entitled to the maximum CCC payment of $7,500,000 (Payments are quarterly, our example is annual). 
 	
 If the feedstock is not soybeans or soy oil, more calculation is needed. For eligible commodities with corresponding oil or grease market prices, such as animal fats, the program uses the posted soybean price for Macon County, Ill. For our example, in 2003 that was $6 per bushel.
 	
 Divide the animal fat or yellow grease market price by the soy oil price (cents per pound) published in The Agricultural Marketing Services' Weekly "Soybean Crush Report" for Central Illinois on the applicable date. 
 	
 Multiply that ratio, or "feedstock factor," by the "soybean gross payment" (the NPU multiplied by the soybean posted price for Macon County) to determine the producer's gross payment. For eligible commodities lacking corresponding oil or grease markets, a formula will be developed "in a manner as determined by CCC." 
 	
 So, if the same plant used animal oil at $.095 a pound as its feedstock instead of soy oil at 24.5 cents a pound, the gross payment in 2003 is $3,257,141 ($.095/$.245 = 0.38; 0.38 x 8,571,426 = $3,257,141). 
 	
 To determine the gross program payment for the plant in 2004, when production increased by 1 million gallons, the formula includes a provision for both increased production and base production. 
 	Again, first determine the plant's APP. This APP is 714,285 (1,000,000 gallons ÷ 1.4 conversion factor). Determine the plant's BPP by dividing base production (5 million gallons) by 1.4, then multiplying the result by 0.3 (5,000,000 ÷ 1.4 x 0.3) for a BPP of 1,071,428. Adding APP to BPP gives you the GPU, or 1,785,713 (714,285 + 1,071,428).

 	
 To determine the gross payment, the formula simply starts again, this time using 2004 prices, and the applicable discount factor-15 percent in 2005, 0 in 2006.
 	
 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. They can be reached at (612) 371-3211.

Legal Perspective

Entrepreneur and business author Harvey McKay has written often that a key to sales success is to "dig your well before you're thirsty." It's appropriate in mature industries as well as new market development. It's equally true for biodiesel. Alternative fuels in general, and biodiesel in particular, have spent their domestic existence fighting for legitimacy. The key to success must not rest with ideological theory that implies environmental activism, but rather, sound business principles. From a rendering industry perspective, I believe there are three critical areas which must be addressed to ensure biodiesel's continued growth and prosperity:
 
 1. Create a Petroleum Industry Partnership. 
 Biodiesel must be recognized as an integral part of the energy puzzle. Rather than threaten the petroleum industry elites and their lobbyists, biodiesel should be recognized as a requisite in extending the finite life expectancy of a natural resource. The low inclusion blend is the obvious short-term solution. As a lubricity additive for ultra-low sulfur diesel or compliance tool for a future renewable fuel standard (RFS), biodiesel must be in the general diesel fuel supply. The chicken or the egg question is answered by volume. An RFS mandate will translate into dramatically larger production facilities that will in turn result in economies of scale, reducing producer and consumer costs. 
 
 2. Maintain Feedstock Neutrality. 
 Ultimately, the consumer cares little about feedstocks. We don't specify whether crude oil comes from the North Atlantic or off the coast of Alabama. The ultimate objective of biodiesel has to be more than to generate an aggressive return on investment for one feedstock over another. Rather, consumer preference should be directed to the suppliers that balance product quality with the most efficient production process, regardless of feedstock origin. 
 
 

 3. Establish Fair Legislation. 
 The path to economic viability is laid by production efficiency and RFS mandates, not subsidies. It's important to note that the commodities produced by the rendering industry do not receive subsidies. If the Commodity Credit Corp. program equalizes the inherent disparity in feedstock values in biodiesel production, then why are excise tax incentives that further differentiate feedstocks necessary? The reality is that state and federal legislative initiatives that support biodiesel related tax incentives must be fair and balanced, or they will not exist. Incentives that promote one feedstock over another will bring into question what is in the consumers' best interest. 
 	
 I recognize that tens of millions of soybean check-off dollars have been directed to biodiesel. However, the financial and marketing investment made by renderers is also impressive. These are primarily family-owned businesses, many of which have spent millions of dollars out of their own pockets to develop this market and produce a high quality, commercially viable product. 
 	
 To date, the biodiesel industry through the leadership of the National Biodiesel Board has accomplished a great deal. From a fledgling industry to the fastest growing alternative fuel in the United States, the future is bright. Moving forward, I believe that RFSA-related mandates that create substantial biodiesel demand will accomplish far more than incentives. Through petroleum industry collaboration and an elevation of NBB's stated feedstock neutrality position that is further supported by unbiased legislation and incentives, a revolutionary industry can be built. Working together we can dig the well that will ultimately quench our nation's thirst for renewable energy. 
 
 Rick Geise is the marketing director of Griffin Industries Inc., a major rendering facility and biodiesel plant in Cold Spring, Ky. He can be reached by e-mail at <a href="mailto:rgeise@griffinind.com.">rgeise@griffinind.com.</a>

Griffin Industries Inc. produces and markets Bio G-3000 Premium Biodiesel Fuel

March/April 2004

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Business Briefs

ISA elects president, officers

Alliance creates new plant design company

Grease Works!, and they're proving it in Oregon

Columns

Editor's Note

Legal Perspective

Talking Point

Featured

Spring Training

Rethinking the Process

Austria's BDT Eyes- US Market for Modular Unitsl

B100 California's Endangered SPECIES?

The Ethyl Biodiesel Alternative

Commited to the Directive

Northern Exposure

March/April 2004