In Loveland, Colo., residents no longer have to feel guilty about frying foods in oil. While deep-fried foods may not be good for their waistlines, they now have the opportunity to recycle leftover waste oil so it can be made into clean-burning biodiesel. 

 
 The city has started to accept used cooking oil from residents at its recycling center. From there, the oil is picked up by Rocky Mountain Sustainable Enterprises LLC (RMSE), which processes and sells it to Rocky Mountain Biodiesel Industries, a 3 MMgy biodiesel plant in Berthoud, Colo. 
 
 It's a way for residents to pitch in, albeit in a small way, to protect the environment and lessen the nation's dependence on foreign oil, says Bruce Philbrick, superintendent of Loveland's solid waste division. "The most important thing is that we don't want to see it poured down the drain or dumped into the trash," he tells Biodiesel Magazine. 
 
 It also makes life easier for city workers. Dumping grease down the drain causes problems at the city's wastewater treatment facility. Setting it out on the curb with the trash isn't good either. It makes a mess when it's put in a trash compactor, and once it's in a landfill, it can contaminate groundwater. 
 
 The city's recycling center has come a long way from its humble beginnings as a drop-off center for grass, leaves and branches. Today, the center takes in a long list of items, from used clothing to batteries and appliances, Philbrick says. The facility, which has been operating in Loveland since 1991, added used cooking oil to the list of accepted items in May. 
 
 So far, the amount of used cooking oil collected at the Loveland recycling center hasn't been enough to make a lot of biodiesel. On average, RMSE picks up about one 55-gallon drum of oil every two weeks. However, as the idea starts to catch on, Philbrick expects that will grow. "We're not talking a tremendous amount of material yet, but everything we've introduced at our drop-off center has grown tremendously and we don't expect this to be any different," he says. 
 
 From Fryer to Fuel
 Loveland residents aren't the only ones who benefit from RMSE's services. The company, started by father-and-son team De Wayne and Aaron Perry, collects used cooking oil from 600 to 700 restaurants, Aaron Perry says.
 

 These restaurants are located in an area that stretches from Fort Collins in northern Colorado to Pueblo, Colo., nearly 180 miles to the south, according to RMSE Marketing Manager Adam Hall. Besides restaurants, RMSE also picks up used cooking oil from several hospitals, Invesco Field at Mile High where the Denver Broncos play and Coors Field ballpark where the Colorado Rockies play. RMSE was able to attract customers from the Denver area by offering excellent customer service and competitive prices. "Generally, we can save restaurants money," Hall says. 
 
 Some of RMSE's customers also like the fact that the waste oil they cast off is used to make biodiesel. They like being able to recycle it in a more responsible manner and to contribute, even in a small way, to the country's energy independence. "Biodiesel is definitely a buzzword these days," Hall says. 
 
 Despite the low collection figures so far, the start-up company has ambitions to develop more waste oil drop-off points similar to the one in Loveland for residents in other communities. RMSE soon plans to start picking up used cooking oil in cooperation with the city of Broomfield, which is in the metro Denver area. It's also negotiating with Eco-Cycle, which collects hard-to-recycle material in Boulder, Colo. 
 
 Oil collected from RMSE's customers is taken to the company's Berthoud, Colo., facility where it is preprocessed, Hall says. The oil is heated and filtered before being sold to nearby Rocky Mountain Biodiesel Industries where RMSE has an agreement to provide the biodiesel plant with used oil feedstock. 
 
 In Demand 
 The company's biggest challenge right now is keeping up with demand. At press time, about 15 to 20 customers were signing up for the service per week. "We are growing at such a pace that the routing changes day to day," Perry says. Currently, RMSE collects about 750,000 gallons of used cooking oil a year, he says. Within the first quarter of 2007, the company expects the numbers to be at about 1 MMgy. 
 
 The company's processing facility was completed about a year ago. Already, with demand rising at breakneck speed, RMSE is thinking about expanding at some point. "When the time comes, if we need to build a bigger and better plant, that's what we'll do," Hall says.
 
 In fact, not content to be the middleman forever, RMSE is considering producing biodiesel, either in cooperation with Rocky Mountain Biodiesel Industries or on its own, Perry says. In 12 to 18 months, RMSE plans to build an integrated biodiesel facility. The company is currently analyzing its options for capacity and location. Perry says the plant would likely start out at 5 MMgy to 20 MMgy in capacity and be located in the same general area as its current waste oil preprocessing facility. 
 
 RMSE will continue to rely on waste oils as a feedstock. However, it's also looking at a multiple feedstock facility that could utilize virgin oils from crops grown by area farmers. "There are a lot of opportunities for win-win relationships as we vertically integrate in the supply chain," he says. 

 
 RMSE is also interested in zero-waste strategies. In its own biodiesel plant, RMSE may use waste gasification or anaerobic digestion to harvest additional energy for process heat, as well as additional liquid fuel inputs such as methanol or ethanol.
 
 Holly Jessen is a Biodiesel Magazine staff writer. Reach her at <a href=mailto:"hjessen@bbibiofuels.com">hjessen@bbibiofuels.com</a> or (701) 746-8385.

University of Tennessee students Scott Curran, left, and Sean Peterson stand near the biodiesel processor they built.

488-1294329580.jpg

Used cooking oil is one of the feedstocks processed into biodiesel at Rocky Mountain Biodiesel Industries. The 3 MMgy biodiesel plant is located in Berthoud, Colo.

489-1294329581.jpg

Thanks to a growing start-up company, residents and restaurant owners in Loveland, Colo.,  can choose a more environmentally responsible method to recycle used cooking oil. Rocky Mountain Sustainable Enterprises is collecting a substance few want, or even know what to do with, and preprocessing it for biodiesel production at an area plant.

Getting Down and Greasy

James L. Rainey, former president and chief executive officer of Farmland Industries Inc. and Kerr-McGee Chemical Corp., was elected to the board of Nova Biosource Fuels Inc. He replaces former Nova Oil president Paul E. Fredericks. Rainey is expected to take over Fredericks' position as chairman of the Nominating and Corporate Governance Committee, and join the Audit and Compensation committees.

Rainey joins Nova Biosource board

Following the recent well-publicized biodiesel testing results, the industry has appropriately focused its attention on assuring that only high-quality biodiesel is produced and sold in the United States. Poor fuel quality harms users, undermines political support, and ultimately, could weaken the industry. From a legal perspective, protecting fuel quality is straightforward on paper, but can often be difficult to sort out after the fact. 
 
 The disruptions that fuel quality issues can create within the marketplace were experienced firsthand in Minnesota last winter with problems involving clogged filters. Liability for fuel quality issues was difficult to determine. Was the clogging caused by poor-quality fuel or inadequate maintenance? If poor-quality fuel was the culprit, where did the fuel originate, and what caused it to be out of spec?
 
 The National Biodiesel Board (NBB) and the industry at large are taking fuel quality seriously. The NBB, through its Fuel Quality Policy, has long stressed that all biodiesel manufacturers adhere strictly to the American Society for Testing and Materials (ASTM) D 6751, the industry standard for pure biodiesel that can be used in blends up to 20 percent with diesel fuel. The NBB's more recent BQ-9000 program seems to be gaining traction. The program offers accreditation and certification for producers and marketers, respectively, that follow approved storage, testing, blending, shipping and fuel management practices.
 
 So what kind of legal provisions should biodiesel producers, marketers and purchasers (primarily wholesale) inquire about as they continue to conduct business in this marketplace? Producers should insist on three fundamental warranties from the firm that is design/building a plant-essentially warranties with respect to yield, throughput and specifications (quality). The yield warranty means that the plant, once commercially operable, will yield no less than x gallons of biodiesel per y pounds of applicable feedstock. If the plant is capable of utilizing multiple feedstocks, the yields will need to be adjusted accordingly. The throughput warranty is intended to assure that the plant will produce x gallons of biodiesel in any one continuous 24-hour day. The specification warranty is intended to assure that the plant produces ASTM D 6751 quality fuel. The contract should also allow for samples to be tested after the plant is commercially operable. In addition, producers selling biodiesel to marketers and blenders should now be requiring marketers to be BQ-9000 certified. Write it in the contract.
 

 In purchasing biodiesel from a producer, contracts should have similar, but not identical, provisions. Purchasers can be less concerned about throughput and yield-those are the producer and design/builder's worries. Instead, with respect to fuel quality issues, the purchaser's main concern should be that the fuel meets ASTM D 6751 standards. Because actual fuel quality is subject to testing and samples, which purchasers should also provide for in purchase contracts, and because testing can take time and cost money, purchasers should consider requiring that the producer-in addition to warranting the product-be BQ-9000 accredited. Also put this in the contract.
 
 Even those purchasing biodiesel from a marketer or blender for use in company vehicles/fleets should pass the fuel quality obligation upstream. Include in your purchase agreements a requirement that the marketer certifies the biodiesel being purchased as ASTM D 6751 spec and was sourced from a BQ-9000 accredited producer. Require also that the marketer itself be BQ-9000 certified. Again, put it in the contract. 
 
 Of course, what happens when poor fuel quality becomes an issue is often unpredictable. What is predictable is that it is unpleasant and disruptive. With well-constructed contracts, however, liability would be more likely to fall on those who fail to live up to their commitments regarding quality. Equally important is that more widespread use of these simple, straightforward representations in all biodiesel contracts will provide additional incentives for the industry to maintain biodiesel as a high-quality fuel.
 
 Todd Guerrero and Mark Hanson are members of the Agribusiness & Energy Practice Group of Lindquist & Vennum PLLP, a leading provider of legal assistance on biofuels projects throughout the country. For more information, visit <a target="_blank" href="http://www.lindquist.com">www.lindquist.com</a> or call (612) 371-3211.

490-1294329581.jpg

496-1294329582.jpg

Legal Perspective

Some critics of the War in Iraq maintain that the nearly four years of fighting has stemmed from U.S. government's-more specifically, the Bush Administration's-desire for more influence over unstable or hostile Middle Eastern regimes and the oil supplies that lie at stake in the region. Whatever the truth, the federal government has, in fact, acknowledged that there is an energy crisis, and it is searching high and low for ways to promote the production and use of renewable energy sources as a matter of national security. 
 
 Seven years ago, biofuels didn't have the political enthusiasm or public support compared with the explosion of media coverage, investment mania and construction that occurred in 2006. Although biofuels weren't on most people's minds at the time, former President Bill Clinton issued Executive Order (EO) 13149, which was intended to establish the government's position as a leader in finding energy solutions and alternatives for the future. "Reduced petroleum use and the displacement of petroleum by alternative fuels will help promote markets for more alternative-fuel and fuel-efficient vehicles, encourage new technologies, enhance the United States' energy self-sufficiency and security, and ensure a healthier environment through the reduction of greenhouse gases and other pollutants in the atmosphere," according to the order. 
 
 Pam Sorino, chief of product technology and standardization at the Defense Energy Support Center (DESC), says the Energy Policy Act of 1992, which required certain vehicle fleets to acquire renewable fuel vehicles, and EO 13149 were the primary drivers in the military's experimentation with renewable fuels. The DESC manages the procurement and distribution of fuel for all branches of the armed forces. Because of the lack of equipment needed for most bases to handle their own renewable fueling needs, however, and the absence of convenient biodiesel distribution channels, integrating new products into the daily operations of the military has been a challenge. 
 
 The war effort has severely taxed funding for routine maintenance and equipment upgrades, much less for the development of progressive or experimental programs. Sally Jo Hahn, an environmental specialist and point of contact for alternative fuel infrastructure for the U.S. Army Installation Management Command, says financial and managerial strains caused by the war, coupled with the relatively immature biodiesel industry, have made her job a difficult one. "Some places are just harder to get fuel to right now," Hahn says. "It's extremely prohibitive. There are other places where fuel is plentiful, but we need more storage tanks and dispensers at the posts. We've become so involved in the war effort that we don't have any money to replace old infrastructure." 
 
 The funding situation is so bad, in fact, that U.S. Army Chief of Staff Gen. Peter Schoomaker refused to submit a budget plan-without a significant increase in the baseline for 2008-to former Secretary of Defense Donald Rumsfeld, arguing the military could not continue operations in Iraq, as well as its other responsibilities, without additional funds, the Los Angeles Times reported in September. 
 
 Although the U.S. Army is under a lot of pressure, Schoomaker hasn't allowed the focus on sustainability initiatives to diminish, Hahn says. "One of the keys to success in the army is having someone at the top of the organization willing to support the installation, and that is coming from [Schoomaker]," Hahn says. "Going back 15 years or so, the army was not so hot on sustainability, but they got the message in a big way and figured out that if they did not start doing things differently, they weren't going to be around. Renewable fuels are a part of that sustainability initiative."
 
 Experienced Handlers
 Peterson Air Force Base, near Colorado Springs, Colo., was a pioneer in renewable fuels usage and could now be considered an experienced biodiesel handler. 

 
 The base was established during World War II at the Colorado Springs Municipal Airport, and it is the headquarters of Air Force Space Command (AFSPC). This Air Force division works closely with NASA to launch satellites and space shuttles. It also collects weather data and conducts flights of experimental planes, helicopters and other equipment. 
 
 Chuck McGarvey, fuels manager at AFSPC, is well-versed on cold filter plugging points, storage stability and the characteristics of the different feedstocks used to make biodiesel. "I would say my preference is either the virgin soy or canola, but we've also found that yellow greases have value in added lubricity."
 
 Performance in diesel engines is enhanced by biodiesel, says Gary Passmore, transportation director at Naval Station Everett outside of Seattle. A serviceman with 34 years experience, Passmore began studying biodiesel when he arrived at Everett after a long stint at a now-decomissioned base in Kodiak, Alaska. "This was a brand-new base, which was doing things differently, and they gave [me] a lot of leeway on initiatives and directives," Passmore says.
 
 One of the first applications at Everett was in buses the base had acquired from Seattle Metro Transit, which had each seen about 500,000 miles of service. Passmore and company had to replace the fuel filters before these rigs began burning biodiesel, but after that, "No one even noticed," he says. "It was a very simple transition." Since then, Passmore has learned that biodiesel can have problems in the cold, and because of oxidation vulnerability, it needs to be used within a certain time frame after delivery from a supplier. For the military, and the industry itself, oxidative stability is an ongoing concern in regard to biodiesel storage. "Our standard [for expiration] is six months," McGarvey says. 
 
 At Peterson, biodiesel isn't used between October and April because of dependability concerns. "You can't be towing a missile from one silo to another and have a tractor crap out on you," McGarvey says. "We don't use biodiesel in stationary equipment because of the inability to turn it over quickly."
 
 Quality Management
 With experienced handlers who know what precautions to take, the best operating conditions and the characteristics of the fuel, serious biodiesel challenges can be avoided. The DESC says there have been relatively few complaints from base equipment operators who are using biodiesel blends. 
 
 Government inspection is usually conducted and approval granted during receiving activities at a particular destination. However, because there are currently no ASTM specifications for B20 and because the service buys all of its biodiesel pre-blended, it is virtually impossible to tell if off-spec fuel has entered the supply, Sorino says. Efforts are currently underway to develop an ASTM spec particularly for B20. A task force led by Sorino has been working with original equipment manufacturers and ASTM on this front. 
 

 The DESC says it handles all biodiesel transactions in the same way that it handles petroleum, in that biodiesel is procured and supplied to installations through the ground fuels division. Biodiesel doesn't have the infrastructure or history of petroleum, so there are fewer sources of supply. "[The DESC] is kind of our go-between," McGarvey says. "They set contracts for periods, for spot buys. … A lot of it used to come from World Energy [Alternatives LLC], but now there are folks all over the country who have set up little mom and pop operations, so I am sure it's coming from additional sources."
 
 As one of the largest purchasers of biodiesel in the world, the DESC has a unique perspective on how the industry is changing and developing. Tyler Parks, ground fuels division chief for the DESC, says the ability to procure biodiesel from multiple suppliers is indeed a relatively new phenomenon. The DESC has to identify potential biodiesel suppliers and inform them of the terms and conditions for bidding. A solicitation package is then provided to the supplier, which contains fuel specifications, quality assurance programs, quantity measurements and delivery requirements. Suppliers, in turn, bid on an entire region or specific line items requested by ground fuel customers. 
 
 "There are several new players who have come on line recently," Parks says. "World Energy was certainly one of the first [and once exclusive] players that we procured biodiesel from, but we have been able to recently increase the support for the [biodiesel] program in respect to our vendors." Obviously, any time there is increased competition in the bidding process, it will have a positive effect on the cost for the purchaser. So increased competition for contracts, and consequently, lower prices, are welcomed particularly during a time of strained funding. 
 
 Biodiesel retailers and distributors have also realized that there is a market comprised of military personnel who want to run biodiesel in their personal vehicles. "There have been some creative vendors who have positioned themselves outside the gates of some installations," Hahn says. "Vendors have figured out that personnel are requirred to use the fuel if is is reasonably available and not too expensive, which I believe is the exact language in the [Energy Policy Act].'" 
 
 Officially, customer organized groups are the designated purchasing and distribution system in place at the DESC. This system, which resembles the Petroleum Administration Defense Districts used by the U.S. DOE to track gasoline supplies, is meant to consolidate fuel requirements by geographic region. A base must submit a requirement document to the DESC, including location, projected annual usage, the number and size of storage tanks available, and delivery preferences.
 
 As fuel quality issues are resolved and an ASTM B20 pec is put in place, Sorino says she anticipates the military's use of biodiesel will expand to further applications. "The DESC has been at the forefront of implementing new technologies and products," Parks says. "So as far as our activities are concerned, we are always looking for the next best thing for our customers, and one of these is biodiesel." 
 
 Nicholas Zeman is a Biodiesel Magazine staff writer. Reach him at <a href=mailto:"nzeman@bbibiofuels.com">nzeman@bbibiofuels.com</a> or (701) 746-8385.

481-1294329574.jpg

As American soldiers continue to hold their position in turbulent foreign environments, at home the U.S. armed forces have been striving to reduce their petroleum footprint by employing biodiesel in non-tactical applications.

Sustainably Securing the Home Front

In the fourth quarter of 2006, the European Commission released feedback from a three-month public consultation exercise on the progress made by European Union member states in implementing the 2003 Biofuels Directive. 
 
 The Biofuels Directive requires the 25 EU Member States to set indicative targets ensuring that 2 percent of all gasoline and diesel for transport purposes (calculated on an energy content basis) include biofuels by the end of 2005 increasing to 5.75 percent by the end of 2010. 
 
 In the past few years, the Commission has released several key documents, notably the Biomass Action Plan in December 2005 and a report titled "An EU Strategy for Biofuels" in February 2006. In April, the commission announced a review of the Biofuels Directive, launching a public consultation which closed at the end of July. The commission's aim was to draw up a progress report for the European Parliament and EU Council by the end of 2006. At press time, no such report was available on the commission's Web site, although a summary of the responses gleaned from the public comment period was.

 
 That feedback revealed a generally positive attitude towards the objectives of the Biofuels Directive-particularly among government officials and industry stakeholders-but also a sense of strong skepticism in regards to achieving the 2010 target. There was an overwhelming response in favor of amending the directive to some degree. The entire "consultation document" is available online at <a target="_blank" href="http://ec.europa.eu/energy">http://ec.europa.eu/energy</a>. 
 
 Notably, most respondents were also in favor of a system that would introduce a standards certification process for biofuels, although the suggested extent and nature of such a system varied. 
 
 In addition to the forthcoming progress report, a strategic energy review document will be published in early 2007. It is expected that this will include concrete recommendations on biofuels and legislation on renewable energy.
 
 There is unlikely to be any change in the trade regime for biofuels since senior EU energy officials have recently noted that non-EU biofuels suppliers are-or will be-significant to the EU's biofuels strategy, with perhaps some 50 percent of the EU's future biofuels supply coming from outside the region.
 
 Implications for Fuel Producers
 If the commission accepts the feedback from the public consultation exercise and confirms statements made by senior commission energy officials, it is likely that amendments to the Biofuels Directive will be proposed either in the commission's 2006 report or as part of its energy package to be delivered in early 2007.
 
 These developments point to a revision of member state targets for biofuels and/or other renewables-perhaps initiating mandates-and a system of standards and certification applied to biofuels production. A certification system is more likely to be designed to ensure that the cultivation of raw materials for biofuels production meets minimum standards, rather than extending to other areas such as certification of greenhouse gas emissions. Requirements for a monitoring scheme in each member state may precede or accompany such a system. 
 

 EU member states may also be required to impose biofuels obligations on fuel suppliers as a tool to achieve national targets. Those targets would, in turn, require suppliers to include a given percentage of biofuels in the total amount of fuel placed on the market. A mandate at the EU level, requiring all fuel sold in the EU to contain minimum proportions of biofuels, is an outside possibility. Finally, labeling requirements disclosing the proportion of biofuel contained in a fuel, currently limited to fuels containing more than 5 percent of biofuel, may be extended to cover all fuels.
 
 A further system of incentives for the development of second-generation biofuels, beyond possible support at the research and development stage, is unlikely. While most respondents were in favor of encouraging second-generation feedstock utilization (i.e., waste sources, etc.), senior commission officials have recently indicated that the commission doesn't presently intend to distinguish between the two types of production feedstocks (i.e., crops versus waste, etc.).
 
 What is clear is that most respondents are in favor of continuing the EU's policy on the promotion of biofuels beyond 2010, even though current member state targets are unlikely to be met in 2010. 
 
 Frank Schoneveld and James Arneill are with the international law firm of McDermott Will & Emery. They are both based in Brussels, Belgium, the administrative center of the EU. Reach Schoneveld at +32(0) 2 282 35 83 or <a href=mailto:"fschoneveld@europe.mwe.com">fschoneveld@europe.mwe.com</a>. Reach Arneill at +32(0) 2 282 35 24 or <a href=mailto:"jarneill@europe.mwe.com">jarneill@europe.mwe.com</a>.

Are Changes Imminent for the EU's Biofuels Directive?

Talking Point

Approximately 20 percent of downtown Cincinnati's workforce commutes on buses fueled by biodiesel blends, according to <a target="_blank" href="http://www.go-metro.com">Metro</a>, a fixed-route bus service in southwest Ohio. While the use of biodiesel is typically tied with environmental friendliness, it's also saving Metro some money.
 
 Metro Chief Communications Officer Sallie Hilvers told BiodieselMagazine.com that the use of biodiesel blends saved Metro approximately $450,000 in 2006 when compared to straight petroleum diesel fuel. "If we bought diesel on the open market, we would have paid more than $450,000 more for it than biodiesel," Hilvers said.

 
 In 2006, Metro's 390-unit fleet of 40-foot urban transit buses used nearly 1.8 million gallons of biodiesel. The fleet's age range is comprised of 40 new buses purchased within the past few months to 14-year-old buses. 
 
 "Power was our big worry," Hilvers said, referring to the company's initial decision to test biodiesel. "Propelling 13-ton buses up our hills takes a lot of power."
 
 Thus far power hasn't been an issue, and fuel mileage has improved slightly, according to Hilvers.
 
 Hilvers said 2005's Hurricane Katrina played a major role in shifting to increased biodiesel blends. She said Metro had difficulty receiving petroleum diesel supplies that are normally piped northward from the Gulf of Mexico region.
 
 Metro splash blends its own fuel, which ranges from approximately 75 percent biodiesel in the summer to B20 blends during the winter. <a target="_blank" href="http://www.petercremerna.com/">Peter Cremer North America</a>, which is based in Cincinnati, provides Metro's biodiesel. The company was the first biodiesel producer to be accredited under <a target="_blank" href="http://www.bq-9000.org">BQ-9000</a>, which is the biodiesel industry's voluntary fuel quality assurance program.
 
 Metro is no stranger to biodiesel use. It began testing the fuel in 1993 and 1994. However, at the time biodiesel was cost prohibitive at more than $4 per gallon. 
 

 Hilvers said the 2005 hurricane season caused biodiesel prices to become comparable with diesel fuel. Combine that with a consistent supply of fuel, and Metro began increasing use. Hilvers said the company has contracted to continue using biodiesel throughout 2007.
 
 Dave Nilles is Online Editor for Biodiesel Magazine. Reach him at <a href=mailto:"dnilles@bbibiofuels.com">dnilles@bbibiofuels.com</a> or (701) 373-0636.
 
 Posted: 10:25 a.m. CST Thursday, January 11, 2007

497-1294329583.jpg

Cincinnati transit fleet says it saved money with biodiesel

After fueling up with a couple tanks of B20, Keith Bevers, an owner/operator truck driver, has noticed something positive. "You do seem to get better mileage because it goes in and cleans out the tanks and the motor," he tells Biodiesel Magazine.

 
 Bevers, who drives for Overbye Transport Inc., based in Lakeville, Minn., still has some reservations, however. The renewable fuel really hasn't been completely proven yet-either as a positive or a negative for diesel engines, he says. As a result, Bevers buys biodiesel blends for his truck when it's available but only when the price is the same or lower than regular diesel fuel. "I'm still kind of on the fence," he says. "It's a 50-50 thing."
 
 On the other hand, Carl Cornelius, part owner of Carl's Corner Truck Stop, says he's heard few, if any, negative comments about biodiesel from truck drivers. The benefits of biodiesel include everything from increased gas mileage, cleaner exhaust fumes and a cooler-running engine. He's even been told that adding biodiesel cleans out the algae growing in a truck's fuel tank. "Actually, it's entertaining listening to people [talk about the benefits of biodiesel]," he says. 
 
 A lot of customers at the truck stop in Carl's Corner, Texas, are pleased with how smoothly their trucks run on biodiesel. Truckers are attuned to every vibration and sound coming from their trucks, he says. Many say their vehicles "run like a dream" after adding biodiesel. "We've had them come in here with their trucks shaking," Cornelius says. "They put biodiesel in, and it's just purring."
 
 Though Cornelius is a fan of biodiesel use, he did say today's biodiesel industry is in need of uniformity and consistency. He advocates for BQ-9000, a voluntary quality assurance program. "[Biodiesel is] a relatively brand new type of adventure," Cornelius says. 
 
 Official Stance
 Overall, the American Trucking Associations (ATA) is supportive of the biodiesel industry, says Rich Moskowitz, regulatory affairs counsel for the ATA. The organization regards it as a reasonable means to extend the fuel supply.
 
 In October 2005, the ATA endorsed B5. This past summer, the Agricultural and Food Transport division of ATA formed a renewable fuels task force. 
 
 In the next breath, Moskowitz stresses that the association is "adamantly opposed" to blends above the 5 percent threshold. "When you start getting above 5 percent, there are some operational challenges for the over-the-road-trucking industry," he says. 
 

 Overall, ATA views quality as the No. 1 issue facing the biodiesel industry. "We are aware of significant quality issues throughout the industry," he tells Biodiesel Magazine. It's the biggest barrier to the trucking industry's total support. The industry can't continue to stand behind biodiesel if the quality problems with the renewable fuel aren't faced and corrected. "The industry needs to get it right because we can't afford to have trucks breaking down on the side of the road," Moskowitz says. 
 
 Because biodiesel acts as a solvent, it can clog fuel filters. That tends to be a big problem when a truck is stranded several hundred miles away from its base of operations. Cold weather performance is another issue, and the higher the biodiesel blend, the greater the probability of the fuel gelling. 
 
 Price is another issue that could hamper or erode the trucking industry's acceptance of biodiesel. Fuel is the second-largest expense for most trucking companies, making up to 20 percent to 25 percent of a company's total budget. When the price of biodiesel is higher than conventional diesel, utilizing it can have a big impact on the bottom line. "A difference of even a penny for a gallon is very significant for the industry," Moskowitz says. 
 
 The lower energy value of biodiesel is also a factor. Conventional biodiesel has about a 9 percent energy penalty, Moskowitz says. While that difference wouldn't be readily apparent at lower blends like B2, the impact would be more noticeable for big companies running a lot of trucks. "It certainly would be measurable across a large fleet," he says. 
 
 Getting the Facts 
 G&P Trucking Company, which has 12 locations in six states and about 560 company trucks and owner/operators, isn't ready to use biodiesel in its trucks, says Senior Vice President Richard Strobel. He's heard some things that aren't flattering about the alternative fuel. 
 
 Before Strobel would be willing to accept biodiesel, he'd like to see more studies that would determine if the fuel is detrimental to the operation of the vehicle, he says. Those studies need to be conducted by people within the trucking industry, not the fuel industry. 

 
 To convince Strobel and other skeptics, a trucking company in Fort Dodge, Iowa, is conducting its own study. Decker Truck Line Inc. is working with a variety of partners, including the National Biodiesel Board and the Iowa Soybean Association, to conduct a real-world, over-the-road study, says Dale Decker, industry and government relations director for the company.
 
 During the next two years and 2 million miles, the study will look at the effects of using B20 versus ultra-low sulfur diesel (ULSD). Currently, six trucks are part of the study, with three using B20 and three using conventional ULSD. The trucks are all outfitted the same, and have comparable routes and loads, Decker says. 
 
 The company, which has 750 trucks in its fleet, may expand the study to include more trucks. The study's objective is to get information out to the trucking industry so that individual drivers and companies can make informed decisions, Decker says. Though the study isn't completed yet, he believes the positive effects of using biodiesel blends will outweigh the negatives. 'We haven't had any problems so far, and I wouldn't expect any problems," he says. 
 
 With ULSD as the new reality for diesel fuel, Decker Truck Line is excited about the added lubricity that the biofuel offers. ULSD is basically stripped of all lubricant because it has only 15 parts per million of sulfur. "Biodiesel adds more lubricant back than you're actually using with ULSD, so actually we feel that it is better for the engine," Decker says. 
 
 However, the availability of the biofuel must improve before it can really take off. Biodiesel blends need to be readily available at major truck stops across the country, such as Pilot Travel Centers, Flying J travel plazas and Road Ranger travel centers. We can't find it at many truck stops along the road, he says. 
 
 Decker also addressed the quality issue, which he agreed is the key to the success of the industry. "When you get a bad batch of biodiesel, you don't wonder 'Oh, who made that?'" he says. "You just remember 'I had a bad batch of biodiesel.'"
 
 Still, Decker is convinced that there's demand for and interest in biodiesel. For example, the company has diesel pumps on-site, which are utilized by the owner/operators who work for them. There's been a lot of interest in getting the company to add a B20 pump. "I get calls every day," he says. 
 
 Holly Jessen is a <a href=mailto:"Biodiesel Magazine">Biodiesel Magazine</a> staff writer. Reach her at <a href=mailto:"hjessen@bbibiofuels.com">hjessen@bbibiofuels.com</a> or (701) 746-8385.

Decker Truck Line Inc. is embarking on the 2 Million Mile Haul, a real-world study of how biodiesel affects over-the-road trucks.

483-1294329577.jpg

484-1294329577.jpg

Widespread acceptance of biodiesel by the trucking industry would certainly grease the wheels of the biofuels industry. Biodiesel 
advocates are gaining ground with many truck drivers and trucking companies, but the campaign has just begun.

The Long Haul

Trucking firms are highly sensitive to the price of diesel. Their vulnerability is worn on their sleeves, but many other businesses and individuals are susceptible to the ripple effect of high-priced diesel fuel. When load carriers pay more for fuel, their burden is often relieved by their customers who, in turn, pass the added cost on to their consumers. The effect may not be so obvious to the naked eye, but it's a fair summation of the practice. Furthermore, once fuel prices hit a certain level, those companies onto which the fuel surcharges are being passed become forced to reevaluate their transportation needs in order to save money. 

 
 Even those who ride bikes, drive hybrids or walk everywhere are impacted by the diesel market's encompassing stranglehold. We're all affected by the high cost of diesel fuel, which experts say can ratchet up prices on all sorts of consumer goods. Furthermore, that "cost" doesn't come only in the form of money. Fragile relationships with kings and dictators, whose countries keep the supply of base materials for transportation fuels flowing, perhaps come at an even greater cost than those bills settled with the almighty dollar. If oil tankers ceased delivery to U.S. shores-even if only a fraction of oil lost its way here-major problems would quickly arise. 
 
 Outside of the customary paradigm, there's another option by which trucking companies can model their businesses-one that doesn't rely on the supply and demand of petroleum, or the price gouging alleged to occur between those few countries and companies dictating prices. 
 
 Ullrich GmbH, a German trucking company, is setting a new standard in sustainability by producing the very fuel it consumes as a large load carrier, and that fuel happens to be biodiesel. This trucking outfit isn't making 55-gallon batches in its garage, though; Ullrich is much more sophisticated than that. Its story is one of a family business becoming one of the largest load-haul service providers in the world, after which it then began using B100 and, ultimately, made the leap into commercial-scale production to fuel its fleet toward freedom from high diesel prices. The Ullrich model seems worth emulating in today's economy, and it may very well be a model of the future in which some experts believe the decentralization of energy production is inevitable. 
 
 Ullrich Fleet and Biodiesel Meet 
 Founded in Kaufungen, Germany, in the central state of Hess, Ullrich GmbH has grown to be Germany's largest independent truck load carrier. From relatively humble beginnings in 1966 when the company consisted of a mom and pop start-up with a single truck, the company has grown to employ 1,450 people who keep more than 1,000 trucks hauling goods on Germany's highways around the clock. According to Marc Andreas Ullrich, the firm that started out more than 40 years ago is still family owned, with the third generation of Ullrichs now involved in managing the business. Ullrich hauls virtually anything within reason, and has the means to do so. The company's vast fleet of tractor-trailers include deep-freeze containers, cross-feed and swap trailers, tautliners, car transporters, tanker trucks, and containers built specifically for hauling construction materials. Essentially Ullrich hauls most everything, from cars to escargot. After years of successful growth, company leaders made the decision to give biodiesel a try. 
 
 "In 1997, the company management came up with the idea of buying biodiesel for the operation of its vehicle fleet," Marc Andreas tells Biodiesel Magazine. "This was prompted by an article on research into biodiesel production at the University of Kassel (in Kassel, Germany)." Even in 1997 in Germany, biodiesel blends didn't have a real presence in fuel markets-especially not B100. Outside of government, university researchers and niche environmental circles, it really didn't receive much exposure at all. "The Ullrich family decided to take a risk and bought into biodiesel," Marc Andreas says. "At the time, colleagues and customers reacted with incomprehension and amazement. Hardly any other haulage company was using biodiesel at the time. Most truck manufacturers were also decidedly averse to approving the use of biodiesel in their vehicles." Today, only 10 years later, nearly all diesel automakers approve the use of B2 or B5 in their engines, or at least they don't object to it. Many of Ullrich's fleet trucks are powered by MAN Diesel engines, which is granting general approval for the use of biodiesel up to B100, Marc Andreas says. 
 
 The family-owned German trucking firm is now the world's largest consumer of biodiesel. Since the decision to start using biodiesel was made a decade ago, Ullrich trucks have traveled more than 700 million kilometers (435 million miles) on B100, a distance unrivaled by any other biodiesel user. Outside of what Marc Andreas says is a 5 percent fuel economy drop and an increase in oil-change intervals, his company's trucks operate just fine on B100. "Experience has shown that following the introduction of biodiesel, every problem with the vehicle is initially attributed to biodiesel," Marc Andreas says. "Even defective headlight bulbs have been blamed on biodiesel. Once the prejudice of suppliers, workshops and drivers were found to be unjustified, they too have been able to accept the conversion to biodiesel, and no further adverse effects have been observed. We are thus left with the positive, environmentally friendly and resource-saving aspects of the use of biodiesel." 

 
 Ullrich Leaps into Producer Status
 An idea sparked in the minds of management two years after the German transport company began fueling its fleets with the biofuel. "Following initial successful tests in practical operation, the Ullrich family decided in the year 1999 to become involved in the production of biodiesel themselves," the third-generation Ullrich told Biodiesel Magazine. Time went by as negotiations and discussions were held to work out the details with Ullrich's turnkey provider, Probitech GmbH, and its contracted technology provider STH Engineering, a major shareholder of Probitech. "In the year 2000, the first production plant was designed, and subsequently went into production in 2001," Marc Andreas says. That plant, Ullrich Biodieselanlage I, produces 20,000 metric tons a year (6 MMgy) of biodiesel using virgin (rapeseed and soybean) oils and/or used vegetable oils in a continuous process with waterless purification. "Probitech is using ionic exchanger material for the purification process," the turnkey provider states in a presentation on Ullrich. The Kaufungen-based refinery operates three shifts per day with two operators per shift at 8,400 hours of operation a year-or 350 days.
 
 With the company still expanding, it became clear that more production was needed to meet the fleet's growing demand for fuel. Knowing exactly what to do, the family-owned business crunched some numbers and made another call to Probitech. In the winter of 2004-'05, Ullrich Biodieselanlage II-a larger plant with a capacity of 30,000 metric tons per year (9 MMgy)-began production. Probitech says production there can be increased to 50,000 metric tons (15 MMgy). "The relationship between Ullrich and Probitech is very close as we are improving the technology continuously together," says Marc Andreas, who tells Biodiesel Magazine that the biodiesel produced at Ullrich's facilities meets the European EN 14214 standard. He also says that while there is no management agreement between the turnkey provider and the haulage-company-turned-biodiesel-producer, there is a technical service agreement in place. 
 
 Clearing a Couple of Different Paths
 Many independently owned trucking firms in the United States may not be equipped to absorb the high capital costs needed to develop sophisticated refineries like the two facilities Ullrich had Probitech and STH Engineering build, even though the return on investment comes in the form of practicality and savings. However, there are less-capital-intense options to consider. Area-specific trucking operations could form a cooperative and share the costs of designing, building and operating a biodiesel production facility. Perhaps not everyone can afford an equal share in such a project, but if larger groups contribute more and the smaller groups contribute what they can, what results is a fair system of getting out what has been put in. If that isn't an option, a small fleet manager of a trucking outfit might consider a less robust fuel-refining system capable of handling cheap feedstocks. 
 
 Cheryl Haas of Haas Converting LLC, a start-up business based in Wisconsin, tells Biodiesel Magazine that her company makes relatively low-cost, low-volume conversion units. "Our company manufactures biodiesel processors for farmers, individuals or companies," she says. "One processor can produce 300 gallons per day. It's made from biodiesel-compatible stainless steel with high quality and safety standards." A "day" consists of a two-hour stint of operating time, she says. Haas is reluctant to divulge the cost of her converter because the company is in the midst of a marketing arrangement. "If we had to put a number on it, I'd say … $30,000-approximately," she says. If cheaper waste oils are used, biodiesel can be made for about $2 a gallon including maintenance costs using the conversion unit. In order for her company's processors to handle waste stocks, an add-on option would be required, which would come at an increased cost. 

 
 If trucking companies are interested in small-scale conversion systems, a simple design can even be handed to local contractors for relatively little cost so long as low volume and simplicity are desired. While some may question the legitimacy of or the quality of product from small-scale operations like these, they provide at least a partial opt-out strategy from a fuel system of questionable pricing practices, sustainability and supply. 
 
 Marc Andreas says the Ullrich family trucking business was originally motivated to use B100 in its growing number of fleets because of the positive environmental aspects associated with the fuel-lower harmful emissions and biodiesel's carbon-neutral status-but began producing its own biodiesel for the cost-savings. "The use of biodiesel is widely accepted by the trucking industry, as there are still financial advantages," Marc Andreas says. "As the nonregenerative energy resources are limited … biodiesel is very important for the energy mix."
 
 Ron Kotrba is a Biodiesel Magazine staff writer. Reach him at <a href=mailto:"rkotrba@bbibiofuels.com">rkotrba@bbibiofuels.com</a> or (701) 746-8385.

Ullrich’s B100 refueling station, fittingly located near rapeseed crops, exudes the company image of progressiveness.

485-1294329578.jpg

Outside a 5 percent loss in mileage and increased oil-change intervals, Ullrich workers have found no mechanical or operational adversities attributable to biodiesel use.

486-1294329579.jpg

Ullrich's two biodiesel facilities feature German process technology by Probitech.

487-1294329579.jpg

How can trucking firms of all sizes avoid volatile diesel prices and at the same time protect the environment? That's easy-by producing clean-burning, renewable fuel themselves.

Total Package Fleet

From the United States to Brazil to Germany, the vast majority of vehicle fleets are diesel powered. Military vehicles, commercial trucks, government and privately owned buses … you name it-the diesel engine is, hands down, the workhorse of the world's ground transport sector. 
 
 Likewise, fleets make up the diesel industry's core market. So it makes perfect sense that the biodiesel industry would try to establish a strong following within that nucleus. In the United States, that tactic has been employed-effectively so-by the National Biodiesel Board (NBB) and other biodiesel advocacy groups. Unlike Europe, where light-duty diesel passenger vehicles rule the road, the bulk of diesel-powered vehicles in the United States consists of trucks, buses, and off-road vehicles like agricultural and construction equipment. That means "getting in" with fleet managers-really getting them on our side-is vitally important to the U.S. biodiesel effort.
 
 In this issue, the Biodiesel Magazine editorial staff provides a few snapshots of how biodiesel is being used in fleet operations both domestically and abroad. Our coverage starts with an up-front look at how the U.S. military is using biodiesel blends-and how a trickle down effects of the nation's military campaign in the Middle East has ironically made it more difficult for the armed forces to obtain domestically produced biodiesel at home. While the funding is tight, the biodiesel supplies are not. There's now a healthy number of U.S. biodiesel suppliers bidding on military contracts through the Defense Energy Support Center (DESC), one of the largest purchasers of biodiesel in the world, and acceptance of the renewable fuel among fleet managers and other military personnel is on the rise. 
 
 On a related note, the heightened profile of B20 now seems inextricably linked to U.S. vehicle fleets, both government and commercial. The military has been doing its part in working with the NBB and ASTM officials, as well as original equipment manufacturers, to develop an ASTM spec for B20. The military developed its own B20 standard in 2004. As has been reported in this magazine on numerous occasions, an ASTM spec for B20 is needed by the fuel and auto industries for certification and warranty purposes. As the industry works to that end, support-albeit qualified support-continues to come from various industry players. Ford Motor Co., for example, recommends the use of nothing higher than B5 in its diesel-powered vehicles. The automaker says its stance is consistent with the standards set down by the World Wide Fuel Charter, a compilation of fuel quality requirements endorsed by U.S., Japanese, European and other engine and vehicle manufacturers. Don't think Ford is a biodiesel hater, though. The automaker is actually in the process of evaluating and researching vehicle designs and requirements needed to run vehicles on B20. So it seems as though even those resisting higher biodiesel blends are almost anticipating the wider acceptance of them. 
 
 DaimlerChrysler, on the other hand, isn't waiting around to see what happens. The automaker recently proclaimed its endorsement of the use of B20 in its new vehicles used in public and private fleet applications. At the same time, all new diesel Dodge Rams are being factory-filled with B5. As reported in this month's page 54 feature, "B20: A Ram Tough Blend," while the B100 standard is still evolving, a concerted effort is underway to solidify the characteristics of an industry-wide B20 standard. Such a standard would have to pull in parts of petroleum diesel fuel's quality standard-ASTM D 975-plus the neat biodiesel D 6751 standard. For the time being, DaimlerChrysler is recommending that fleets use B20 that meets the military standard. In the meantime, DaimlerChrysler is working with Detroit-based NextEnergy-as well as Bosch, Delphi, Ford and Biodiesel Industries-to develop an ASTM spec for B20 by the end of the year.
 
 Those who are involved with this effort are confident it's the right thing to do, and the right time to do it. Collaborations between the fuel, auto and equipment manufacturing industries are not too common-or easily carried out-and the U.S. biodiesel industry should consider it a small victory to have simply gotten this important effort on a fast track.
 

 Tom Bryan
 Editorial Director
 <a href=mailto:"tbryan@bbibiofuels.com">tbryan@bbibiofuels.com</a>

460-1294329553.jpg

We've put the spotlight on fleets, B20 spec this month

Editor's Note

Bermuda-based Infinity Bio-Energy Ltd., already involved in Brazilian ethanol production, has confirmed its intentions to invest $75 million in at least one biodiesel project in Brazil, with the possibility of two more in upcoming years. Eduardo Tobias of Infinity Bio-Energy told Biodiesel Magazine that because these projects and the company's biodiesel strategy are still being developed, he couldn't disclose any specifics, such as project names, locations or what feedstocks might be used.

Infinity Bio-Energy to invest in Brazilian biodiesel

Bunge North America has agreed on a settlement with the Department of Justice and U.S. EPA stemming from emissions violations at 12 soybean processing plants in eight states. The company is committed to operating in an environmentally responsible manner and will reduce emissions, pay a penalty of $625,000 and spend $1.25 million on community-based environmental projects, according to a company press release. Deb Seidel, director of communications for Bunge, said the company doesn't believe it was in the wrong.

Bunge works to reduce emissions after clean air penalty

A biodiesel blend-level standard is under consideration in Australia, according to Bob Gordon, executive director of Renewable Fuels Australia. While a national fuel quality standard has already been set by the Fuel Quality Standards Consultative Committee for B100, the issue of a blend standard is now being discussed. A paper on the topic is circulating, and comments are being accepted through January, Gordon said. "Our industry will be pushing strongly for both B5 and B20 [blend-level standards]," he said.

Australia looks at blend-level standards for biodiesel

Global biodiesel producer INEOS Enterprises recently announced plans to build Europe's largest biodiesel production facility in Grangemouth, Scotland, according to a company press release. INEOS, a global manufacturer of refined products, revealed the $140 million investment in October, and approximately $18 million of it was backed by the Scottish Executive, the executive arm of Scotland's national legislature. INEOS anticipates that the 500,000-metric-tons-per year (150 MMgy) plant will be operational by 2008.

INEOS to build Europe's largest biodiesel plant in Scotland

Toyota Motor Corporation signed a memorandum of understanding with Isuzu Motors Limited to collaborate on the development of diesel engines. Specifically, the companies will focus on small diesel engines, emission-control technologies and technologies related to renewable fuels. Toyota will assume the primary role in developing the renewable fuels technologies, while Isuzu offers the know-how for small diesel engines. To facilitate the business collaboration, Toyota purchased 100 million shares of Isuzu stocks, or 5.9 percent of the company.

Toyota, Isuzu plan biodiesel-powered engine development

Natural Fuel Limited, based in Perth, Western Australia, started groundwork in November on a 1.8 million-metric-ton (540 MMgy) biodiesel facility on Jurong Island in Singapore. According to the company, the $130 million facility will be built over three phases. The first phase, with a production capacity of 600,000 metric tons (180 MMgy), is slated for completion by the end of 2007. Natural Fuel contracted with Lurgi AG for the plant's design, and Vopak Singapore for fuel storage and logistic services.

Natural Fuel starts construction of Singapore biodiesel plant

O2Diesel has partnered with Ben Franklin Transit of Richland, Wash., to begin testing a blend of O2Diesel's ethanol-blended diesel with B20 in 20 of the city's transit buses. The new fuel is 28 percent renewable, consisting of biodiesel, O2Diesel's biomass-based fuel technology and ethanol. If the test is successful, additional buses will switch to the renewable fuel blend. Ben Franklin is the first transit company in the United States to operate on the unique blend, according to O2Diesel.

O2Diesel tests biodiesel/ethanol blended fuel

On Oct. 31, the Iowa Renewable Fuel Infrastructure Board (RFIB) approved a grant of $50,000 to help Keck Inc. in Des Moines, Iowa, establish a biodiesel terminal, as well as grants for two other companies to install biodiesel retail pumps. Additional funding is  available, and companies or cooperatives wishing to install biodiesel retail stations or blending terminals can apply for grants through the Iowa Department of Economic Development.

Iowa gives biodiesel pump grants

Kip Cullers of Purdy, Mo., set a world record by growing an average of 139.39 bushels of soybeans per acre in the 2006 Missouri Soybean Association yield contest. There is no national soybean yield contest, but USDA records indicate no grower has ever come close to Cullers' mark. Cullers grew his record crop using Pioneer seed variety 94M80 on an irrigated and conventionally tilled field.

Missouri farmer breaks soybean record

Renewable energy advocates came to an international agreement at the Great Wall Renewable Energy Forum in Beijing to promote an increase in the use of renewable energy to 25 percent of the global energy supply by 2025. Leaders of four nongovernmental organizations from Europe, the United States and China, including the American Council on Renewable Energy, signed a memorandum of understanding to assess the feasibility of their goals and the policy changes that would be needed to achieve them. A joint report will be issued in 2007.

Renewable groups set global goals

A study designed to evaluate the quality of biodiesel being marketed in the United States was released in November. The study revealed that inconsistencies in fuel quality continue to be a major issue for the biodiesel industry.
 
 A national fuel quality testing project, cofunded by the National Biodiesel Board (NBB) and the National Renewable Energy Laboratory (NREL), tested 32 B100 samples between November 2005 and July 2006. According to Teresa Alleman, an NREL scientist who led the study, 16 samples-or 50 percent-fell short in at least one category of the ASTM D 6751 specification. She said some samples failed on multiple properties, with the most typical infractions involving flashpoint or total glycerin. Thirty percent failed to meet flashpoint, and 33 percent failed in total glycerin, she explained. 
 
 The samples were randomly collected by a subcontractor from each of the five Petroleum Administration of Defense Districts (PADDs). Each was a one-time sample from a unique location-generally from distributors-Alleman said. More samples were taken from the Midwest region to reflect that area's greater production volume. However, Alleman stressed that the samples weren't based on national production volumes and aren't necessarily indicative of biodiesel volumes. Thus, she said, the results may not be representative of the biodiesel that is out there by volume.
 
 "As an industry, [this study is] a wake-up call that every producer needs to be vigilant about quality control," said Leland Tong, chairman of the National Biodiesel Accreditation Commission. "To me, it shows the importance of in-process quality control and testing of the finished product as it leaves the plant. Every production lot of fuel should be tested before it leaves the plant-no exception." 
 
 Since the origin of study sample is unknown, it is also unknown if the off-spec samples came from plants with quality control programs. "A quality control program is only as good as the company that's implementing it," Tong said. "If the company that's implementing the system doesn't do what they're supposed to do, it doesn't matter what system they use."
 
 In addition to the NBB/NREL study, Denver-based Blue Sun Biodiesel performed an internal multi-year market research effort within the western United States to develop its own products. Blue Sun wouldn't provide the exact numbers or terms of the study, but according to a company press release, it "estimates that more than 60 percent of the biodiesel produced in the U.S. today does not meet minimum ASTM specifications." 

 
 Tong said one reason why some producers may not be testing consistently is because of the expense. "They don't think they can afford to, but they can't afford not to," he said. "There's also pressure to get product out the door to maintain cash flow. … They want to do the right thing, but there are economic pressures and they overestimate their abilities to produce on-spec product on every production lot."
 
 Alleman told Biodiesel Magazine that early indicator tests are being developed to tell a producer in advance if the fuel is likely to meet specifications once tested with the ASTM test method. Nevertheless, Tong said the expense of testing isn't an excuse to avoid it. "That's the cost of doing business," he said. "If we as an industry don't police ourselves and companies don't do what they need to do, our industry will suffer, falter and sputter for years until we can get some of these issues worked out."

461-1294329554.jpg

Biodiesel tests reveal off-spec fuel in U.S. market

The world's third-largest ethanol-producing nation, the People's Republic of China, is working to get its biodiesel industry established-with or without governmental pressure. Businessman and biodiesel producer William Kao said he acknowledges ethanol's premier placement in China's biofuels agenda and is committed to completing the first of perhaps many commercial-scale biodiesel refineries under the Grease Monkey name, in a culture where monkeys are revered with esteem. Kao anticipated the start-up of his 3.3 MMgy Grease Monkey No. 1-after 10 months of construction-to occur in February in the southern Chinese city of Xiamen, Fujian Province. As the name implies, the plant will be refining various waste greases. 
 
 Kao grew up in New Zealand, obtained a graduate degree from Duke University in North Carolina in the late '90s and, ultimately, moved to China from Chicago so that he could help tend to his father's hotel business. He heard about methyl esters at Duke, but he thought biodiesel might have been "too green and not economically viable" for the United States then. "I wondered whether the radically different Chinese economy [could] make biodiesel viable," Kao told Biodiesel Magazine. 
 
 Severe brownouts in the Fujian and Guandong provinces' coastal cities during the summers of 2003 and 2004 forced many manufacturers there to buy diesel-powered generators to keep their respective operations going. "This put tremendous pressure on the supply of diesel," Kao said-a supply since replenished with bootlegged diesel by way of Hong Kong, causing biodiesel production to lose some of the economic ground it gained there this past year. 
 
 Before the recent flood of illegal product, however, Kao said he thought making fuel for the generators from the hotel restaurant's waste greases was an appealing solution to the once-high diesel fuel prices caused by the 2003-'04 brownouts. "I began my research in late October 2004," he said. Starting in a lab with five-liter beakers, Kao and associates experimented with virgin rapeseed oil, deep fryer oil (yellow greases), brown greases and gutter (black) greases. "Having some success in the lab, we built … a 25-liters (7-gallons) per-batch reactor on the 13th of November 2004," he said. "After many alterations and additions, today it is a three-metric-tons (900-gallons) per-day pilot plant." 
 
 It was when Kao wanted to increase capacity by 40 times that he knew it was time to call in the experts. Rather than one 25-liter (7-gallon) reactor, he wanted to install four 250-liter (66-gallon) reactors. "I invited a Mr. Lin to be my consultant to take over research, engineering, plant design and operation," Kao said. "He had just recently retired as a [vice president] after 25 years in a major food company in Taiwan." Nearing press time, Kao was preparing for a meeting with George Wight and Jonathan McDermott from Wight Group-an energy company based in Illinois-to discuss the possibility of working together on what could result in many more Grease Monkeys to come. "I had planned to build two [plants] in five years," Kao said. "But if Wight [Group] is interested, who knows? One in every city in China is not unreasonable."

Grease Monkey No.1 biodiesel plant, a 3.3 MMgy facility in Xaimen, Fujian Province, China, is the first of what owner Kao hopes will be many facilities in the country.

462-1294329555.jpg

China's Grease Monkey plant nears completion

The rush to build renewable fuels plants appears to be impeding construction for some projects in the biodiesel industry. Many groups currently building biodiesel plants have expressed concern to Biodiesel Magazine about the lengthening-sometimes unexpected-delays for receiving plant components. In fact, several projects have pushed their start-up dates back at least one month due to delays.

 
 One project recently overcame the delays and is now on line. Michigan Biodiesel in Bangor, Mich., tested its first batch of biodiesel Nov. 22. The plant is now preparing to operate 24 hours per day, according to company CFO Roger Betz. Betz listed several items he had to wait for, including fuel loading arms, motors and a tank flame arrestor. "We had some difficulties," Betz said in early November. "It's been a boom for suppliers, some who are out 10 to 12 weeks on some items. I've talked to suppliers, and they are booked even on things like ethanol and biodiesel tanks, and fittings." Despite supply delays, Betz said his project was completed according to the construction timeline. 
 
 Two biodiesel projects in Texas had also been waiting on key items. One project was being built based on an "accelerated timeline," according to a company spokesman, and suppliers weren't given enough lead time to manufacture equipment. The second project was waiting for a final piece of equipment for its methanol recovery system in order to reach full-scale start-up. Initial tests of biodiesel were being produced, but full-scale production was delayed by at least one month. "The construction is basically complete," a spokesman said. "Our supplier has some back orders to fill."
 
 All-American Biodiesel in York, N.D., is pushing back plans for start-up until May. Lee Dirkzwager said he initially wanted to start up his plant at a limited production level by December 2006. The plant is designed to expand to 5 MMgy but will initially produce 2 MMgy. Following several delays, Dirkzwager said he switched vendors for an unspecified "major" piece of equipment. 
 
 One supplier told Biodiesel Magazine that the demand for specialized equipment has increased since many biodiesel projects are being custom-built through a variety of builders.
 
 There are more than 1 billion gallons of biodiesel capacity under construction or expansion at more than 45 plants in the United States.

Manufacturer delays slow construction for some

A European company and the University of Idaho (UI) have teamed up through a research and development agreement. Eco-Energy Limited of Gibraltar will provide about $2 million to the university to develop oilseed varieties to make biodiesel, according to Jack Brown, UI professor and plant breeder. 
 
 This isn't the university's first venture into oilseeds. "We have been developing oilseed types for biodiesel for at least 15 years," Brown said. 
 
 Eco-Energy will pay UI a royalty for the oilseed cultivars that the university develops. The company is currently in the process of building biodiesel plants in Europe and is also interested in becoming a biodiesel feedstock provider, Brown said. 

 
 According to the research agreement, UI will develop new cultivars of mustard, canola and rapeseed. "I think we will have product in the marketplace within five years," Brown said, adding that the project will be reevaluated and likely extended at the end of that five-year period. 
 
 UI will continue to develop cultivars with specific fatty acid profiles. Typically, oilseeds low in polyunsaturated fat are high in saturated fat, and oilseeds high in polyunsaturated fat are low in saturated fat. "We're developing oils hopefully that will have both good attributes," Brown said. 
 
 Oilseeds low in saturated fat content produce biodiesel with good cold-flow properties. Those with low levels of polyunsaturated fats produce biodiesel with reduced NOx emissions and a better shelf life. The goal is for an oilseed feedstock to produce high-quality biodiesel. "It's like anything else," he said. "The highest quality will always command the highest prices."
 
 Researchers will also look at seed meal properties. As more oilseed crops are crushed, especially with the growth of biodiesel production, that will become a critical issue. "There's almost certainly going to be a glut of meal for the livestock industry," Brown said.
 
 Researchers will work to create oilseed cultivars with higher oil content, as well as good qualities for livestock feed. Companies or individuals with the higher-value meal would have the best chance to sell it, he said. 
 
 Secondly, researchers will continue study and develop of biopesticides, primarily looking at mustard seed but also rapeseed or canola seed. UI researchers are working to create a mustard seed that, once added to soil and water, will work as a designer pesticide to kill weeds, bacteria or fungi. 
 
 Mustard contains glucosinolates, which give it its pungency, Brown said. The glucosinolates, though not harmful to humans, produce a toxic compound when mixed with saliva, which explains how the seed meal could be used as a pesticide. 
 
 If researchers are successful in creating a biopesticide, it could be used in organic farming as a natural product. That would be a boost to the organic farmers, many of whom currently pay farm laborers $1,000 per acre to hand-weed their crops.

Ian Rosenblatt, CEO of Eco-Energy Limited, takes a look at a Volkswagen Beetle powered completely on B100 during a visit to the University of Idaho, hosted by Brown, right.

463-1294329556.jpg

Eco-Energy, University of Idaho partner to develop oilseed varieties for biodiesel

WHDC LLC, a software development company, has come up with a way to connect consumers with information about biodiesel pump locations across the United States. Using the Internet or cell phone, consumers can find the nearest biodiesel pump, according to Kevin Hull, cofounder of NearBio. The information can also be text messaged to a cell phone. The company considers NearBio a complimentary system to the Biodiesel Hotline, announced by the National Biodiesel Board in August, Hull said. To use the service, check out <a target="_blank" href="http://www.nearbio.com">www.nearbio.com</a>.

474-1294329568.jpg

NearBio helps consumers track down biodiesel pumps

It was a milestone event for the biodiesel industry two years ago when the DaimlerChrysler Group announced it would approve the use of B5 in the Jeep Liberty Common-Rail Diesel, and that the automaker would also factory-fill the light-duty diesel vehicle with B5. It was vindication for those working furiously to get the biodiesel industry off the ground and into the mainstream. It was that point at which biodiesel had arrived, some say. 
 
 Last year about this time, DaimlerChrysler made another significant announcement. The automaker proclaimed its endorsement for discretionary public and private fleets' use-or public policies that requisition the use-of B20 in Dodge Ram fleets, while remaining under warranty. On top of that, all new diesel Rams are coming out of the factory with a tankful of B5 this year. 
 
 The Ram comes in 1500, 2500 and 3500 series. For 2007 Dodge Ram 2500 or 3500 series trucks, deemed the heavy-duty version compared with the lighter 1500 series, either a 5.7-liter gas-powered Hemi V-8 or a Cummins 5.9-liter diesel-powered inline six-cylinder engine comes standard. The 2007 model gas engine comes available with a flexible-fuel package, meaning it can fuel-up and operate on E85. To sum it up, DaimlerChrysler has both ends of the biofuels spectrum covered. 
 

 The biodiesel industry, however, is much less mature and cohesive compared with its distilled-from-corn cousin ethanol. Moreover, different feedstocks used in production give way to alkyl esters of varying properties. The industry-accepted standard for test methods and fuel specifications pertaining to neat biodiesel-ASTM D 6751-is still evolving to better serve the pursuit of quality in this industry, which no one needs to be reminded is paramount. Experts meet relatively frequently to discuss how the standard might need to change in order to more effectively account for quality issues arising in the field. 
 
 While the B100 standard is still evolving, a concerted effort is underway to solidify the characteristics of an industrywide B20 standard. Such a standard would have to pull in parts of petroleum diesel fuel's quality standard-ASTM D 975-plus the neat biodiesel D 6751 standard, in addition to accounting for "unexplainable" phenomena arising out of blending 80 percent diesel with 20 percent biodiesel. For example, results gathered by Cummins (the supplier for Ram's diesel engine) indicated abnormally high amounts of deposits formed at the B20 level. While information gathered from 2007 Ram fleets is expected to aid the development of a B20 standard, those involved seem to think of it more as a figurehead-or even a show of faith-leading the way to wider B20 acceptance, as opposed to an entrenched program designed to amass all of the answers. 
 
 Making It Official
 "Our goal is to identify a few fleets using B20 that we can track," says Loren Beard, senior manager of fuel legislation, regulation and policy with DaimlerChrysler. Beard says implementing the Ram B5 factory fill and informing customers about B20 sums up what has been done since the auto company's announcement last year. This isn't really a program, though. It doesn't come with a set of rules or guidelines detailing what type of data DaimlerChrysler expects to receive from its participants, or how often. "We're not really monitoring anything or laying out any rules," Beard tells Biodiesel Magazine. "The reality is that people are already using B20 and have been doing so for a decade."
 
 What DaimlerChrysler does recommend for fleet managers who would like, or are required, to use B20 is: that the fuel passes specifications laid out in the standard developed by the military, that the biodiesel be purchased from producers and distributors focused on quality assurance, and that a supplemental fuel filter be used alongside the stock filter found standard in the Dodge Ram. "The [B20] military specification is based on ASTM, plus it includes conditions over and above what ASTM calls for," Beard says. "For one, it says that the fuel must be used up within six months." According to the International Association for Stability, Handling and Use of Liquid Fuels Inc., the military developed its B20 standard-CID A-A-59693 A-in January 2004. "We also recommend they have a water-fuel separator, work with high-quality producers and distributors, and we certainly suggest BQ-9000-certified suppliers," he says.
 
 There are no "costs" for DaimlerChrysler associated with this quasi-program, either. "We'll supply the water-fuel separators out of our dealerships," he says. Beard couldn't say how many fleets have used B20 as a result of the announcement. "We knew since the Energy Policy Act passed [that] there'd be a rising interest," he says.
 
 DaimlerChrysler has surrounded itself with the right partners to develop and implement this B20 standard. "DaimlerChrysler is working with NextEnergy in Detroit on this," Beard says. "We're also working with Bosch, Delphi, Ford and Biodiesel Industries to develop this standard, with a goal to have one in place or agreed upon by the end of 2007." 
 
 Bosch, maker of the common-rail fuel injection system, is concerned about higher-level blends of biodiesel like B20, mainly due to the increasing pressures under which fuel gets sprayed into the cylinders and how biodiesel-not necessarily off-spec-might foul up injector nozzles over time. Nevertheless, Tom Livingston, senior engineering representative of Bosch, said after the late-spring 2006 Biodiesel Summit held at NextEnergy's Center in Detroit's Tech Town: "We're optimistic that a prudent B20 ASTM spec [will be] developed cooperatively by the fuel and manufacturing equipment industries." 
 
 Beard tells Biodiesel Magazine that DaimlerChrysler hears from Bosch "all the time" on the use of B20 in Dodge Ram fleets and, hence, Bosch's injectors. "Bosch does endorse the use of B5," he says. "It didn't back the use of B20, but it's not opposed to it either." 

 
 Broader Work, Intentions
 NextEnergy, a nonprofit group, was founded in 2002 and focuses on the commercialization of energy technologies that contribute to economic competitiveness, increase U.S. energy security and benefit the environment. "At NextEnergy, we have a program that we're facilitating with DaimlerChrysler and a number of other companies to help facilitate a faster acceleration of a B20 standard," says Jim Saber, director of program development at NextEnergy. "We started with the Department of Energy on this objective prior to the DaimlerChrysler announcement on Ram fleets. Funding for this particular project-developing a B20 standard-is in large part coming from the energy department. Other programs NextEnergy is involved with are supported by the Department of Defense, private companies, philanthropic organizations and individuals." 
 
 Even though DaimlerChrysler and NextEnergy are working toward this aim together, one didn't necessarily cause the other to act. "Our program isn't designed to be specifically for Ram trucks," says Saber, who adds that automakers like DaimlerChrysler are serious about developing a B20 standard because they need a specification to design equipment against. "The goal, as we see it from an industry standpoint, is that the [original equipment manufacturers] aren't able to warranty vehicles using B20 because there isn't a standard for B20. NextEnergy believes if we have an industry-accepted ASTM standard specifically for B20, there'd be greater opportunity as a whole in the North American market for biodiesel and diesel vehicles, too." 
 
 According to Beard, one task the auto group hopes to learn from this endeavor is the ability to correlate the stability of B20 and that of B100. "We see stability as one of biodiesel's biggest problems," Beard says. "There are additives for that though." 
 
 DaimlerChrysler's endorsement of B20 in Dodge Rams is a step toward a B20 standard. "It's a big step," Saber says. "DaimlerChrysler is saying, 'Here's a blend of B20 we will support.' It's a very big starting point." NextEnergy is committed to this work, gaining a better knowledge base and understanding to develop this standard-to do it right, Saber says. "From a business standpoint, if we have a strong standard, we can really grow this industry," he says.
 
 Ron Kotrba is a Biodiesel Magazine staff writer. Reach him at <a href=mailto:"rkotrba@bbibiofuels.com">rkotrba@bbibiofuels.com</a> or (701) 746-8385.

It's been a year since DaimlerChrysler announced its support of B20 for use in 2007 Dodge Ram fleet trucks. Now Biodiesel Magazine speaks with the automaker and Detroit-based nonprofit NextEnergy about how this approval might fit in with the development of an industry-accepted B20 quality standard.

B20: A Ram-Tough Blend

Archer Daniels Midland Co. (ADM) wants to position itself as "the global leader in bioenergy" while continuing to expand its food processing business, the company revealed. Biodiesel from U.S. and international sources will play a key role in ADM's plans.
 

 "The word 'the' is there for a purpose," said ADM CEO Patricia Woertz of the company's goal. "It means we will be number one. It means we will be 'the' leader, not amongst the leaders, not a U.S. leader, not a leader where we choose to market or operate. It is 'the global leader in bioenergy.'" Woertz discussed ADM's plans in a presentation for financial analysts in November in Chicago.
 
 As part of its plan, ADM predicts explosive growth for biodiesel. Global biodiesel demand is projected to grow 350 percent by 2015, fueling a 30 million-ton demand shift in the global oil and fat market, said Mark Zenuk, ADM vice president of European and Asian operations. That is more than three times the current total U.S. soy crush. One out of every 12 pounds of vegetable oil will be used for biodiesel by 2015, according to Bill Camp, ADM executive vice president for global processing.
 
 ADM plans to invest in additional biodiesel capacity in the United States, Germany, Brazil and Asia.
 
 Later in November, ADM announced the expansion of five of its crushing plants in the United States and Canada. ADM will expand capacity at its soybean crushing plants in Quincy, Ill., Frankfort, Ind., and Mexico, Mo., and its canola crushing plants in Velva, N.D., and Lloydminster, Alberta. The expansions will support ADM's two North American biodiesel facilities in Missouri and North Dakota. The expansions are scheduled to be completed by mid-2008.

464-1294329557.jpg

ADM plots biofuels future

In November, Saskatchewan Deputy Premier Clay Serby made an appeal to federal Environment Minister Rona Ambrose to progress with Canada's renewable fuels strategy. 
 
 Serby received a response in late December. Ambrose and Agriculture Minister Chuck Strahl announced in Saskatoon, Saskatchewan, that the government would regulate the use of renewable fuels and would provide a total of CAN$345 million for two programs that would assist farmers and rural communities to seize market opportunities in the agricultural bioproducts sector.
 
 Starting in 2007, the Canadian government will fund the Agricultural Bioproducts Innovation Program (ABIP) and the Capital Formation Assistance Program for Renewable Fuels Production. The latter program, which will receive CAN$200 million, is intended to provide producers with incentives for participation in new renewable fuels production capacity. 
 
 The ABIP will receive the remaining CAN$145 million, in order to provide support for cross-sector research networks that are exploring new economic opportunities for agriculture in the areas of bioproducts and bioprocesses, such as biofuels.
 
 According to a press release, the Canadian government intends to require that gasoline average 5 percent renewable content by 2010. The 5 percent could be met by renewable content in either diesel/heating oil or gasoline. Additionally, the government intends to regulate a 2 percent requirement for renewable content in diesel fuel and heating oil by 2012, upon verification that renewable diesel fuel use performs under the range of Canadian weather conditions.
 
 These regulations are expected to take two years to develop and will be included within amendments to the Fuels Division of the Canadian Environmental Protection Act of 1999. These amendments are proposed under Canada's Clean Air Act, which must pass in order for the renewable fuels requirement to take effect.

Canada funds two capital programs to develop biofuels industry, details RFS

Jeff Passmore, executive vice president of Ottawa-based Iogen Corp., summed up the Canadian Renewable Fuels Summit (CRFS) well with four overall themes: government leadership/policy, the importance of partnerships, the size of opportunity that biofuels offer and the policy drivers behind it.

 
 The more than 500 attendees of the Canadian Renewable Fuels Association event were happy to learn after the summit that the Canadian government did step up and create a renewable fuels standard (RFS) similar to one enacted in the United States in 2005 (see page 16 for more information). The Canadian version set up a 5 percent renewable fuels inclusion requirement to be met by 2010, and a 2 percent requirement specifically for renewable fuels in diesel fuel or heating oil by 2012. 
 
 The Saskatchewan government was aiming for a 10 percent inclusion mandate, but a 5 percent inclusion rate may be a stepping stone. To give an idea of the impact such legislation would have, Lionel LaBelle, president of the Saskatchewan Ethanol Development Council, said a 10 percent RFS would require 6 billion gallons of renewable fuels capacity, 600 million bushels of grains and oilseeds, 20 million acres of farmland, and would result in 8.4 metric tons of greenhouse gas reduction. Dividing these numbers in half may give an idea of what would more accurately occur with the newly enacted policy.
 
 Nearly every speaker mentioned a need for federal government involvement in some way. Several, including Saskatchewan Premier Lorne Calvert, expressed disappointment that Minister of the Environment Rona Ambrose only addressed CRFS attendees via video. "We need to sit at the table together," Calvert said in reference to governmental leaders. David Aldous, president of Shell Canada; David Paterson, vice president of corporate affairs for General Motors Canada; Lorne Hepworth, president of CropLife Canada; and Dave Vander Griend, president of Colwich, Kan.-based ICM Inc., said government support at various levels was necessary to drive the renewable fuels industry forward in Canada. 
 
 The federal government must have heard that request.

Saskatchewan Premier Lorne Calvert, left, and Kory Teneycke of the Canadian Renewable Fuels Association answer questions after Calvert's speech at the Canadian Renewable Fuels Summit.

465-1294329558.jpg

CRFS speakers ask for-and receive-federal support

After an eight-month hiatus, Biodiesel of Mississippi Inc. (BMI) began producing soybean-based biodiesel fuel in October 2006 at its Nettleton, Miss., plant. In February 2006, the plant was forced to cease operations and file Chapter 11 bankruptcy as a result of a disagreement with a management company that provided some working capital financing for the refinery.
 
 BMI also asked Maryland mergers and acquisitions firm Equity Partners Inc. (EPI) to seek a buyer for the plant. The facility was open for site visits, received several bids and held an auction before determining a final buyer Dec. 21. The bankruptcy court approved the sale of the plant to a Virgin Islands group by the name of La Croix International, and BMI hopes to close Jan. 20, said Ken Mann of EPI.
 
 BMI's plant has operated on and off for three years, producing biodiesel fuel consistently for three quarters leading up to its close. Sitting on a 3.9-acre site, the soybean processing facility is listed as a 60,000-gallons-per-day plant, Mann said, although a permit application has been submitted to the Mississippi Department of Environmental Quality to produce up to 130,000 gallons per day. BMI used Ultra Sonic Fusion Reactors technology to produce its biodiesel. Two large grain storage bins, a grain elevator and truck scales are also situated on the property.
 
 Headquartered in Pasadena, Md., EPI provides investment banking services exclusively for businesses operating in Chapter 11 or suffering from financial distress.

After ceasing operations and filing for bankruptcy in February 2006, Biodiesel of Mississippi Inc. began producing biodiesel fuel again at its facility in Nettleton, Miss.

466-1294329558.jpg

Biodiesel of Mississippi restarts operations, sells plant

America's largest state-owned electric utility, The New York Power Authority (NYPA), undertook two days of testing in the fall of 2006, using biodiesel in a stationary application to produce electricity at its Charles Poletti Power Project site in Queens.
 
 "This truly is an important occurrence, in step with energy and environmental policies put forth by Governor [George] Pataki, including a 2005 executive order requiring state agencies and public authorities to increase their [purchasing] and use of biofuels for heating and fueling purposes," said Timothy Carey, NYPA president and CEO, in a company press release. 
 

 Varying biodiesel blends were used during the testing, ranging from B5 to B20 mixed with No. 6 fuel oil. The NYPA says it used 1 million gallons of fuel for this test, including 100,000 gallons of biodiesel. Data gathered from the tests indicated that efficiency gains, along with a reduction in emissions, resulted from using the blended fuel, compared with the combustion of conventional oil. 
 
 A diverse group of NYPA staff from the departments of power generation, fuels operations, research and technology development, and environmental programs directed the two-year study. "This really was a collective effort drawing on the expertise of a number of our professionals," said Paul Tartaglia, NYPA regional manager at the Poletti Project, who was involved with plans for the experiment from its initial stages. "It all began a couple of years ago when a few of us took two five-gallon buckets over to the Poletti chemistry lab to mix small amounts of blended fuel, so we've come a long way." 
 
 Operators blended the conventional fuel oil with the biodiesel at the plant site since the quantity needed for the test exceeded the amount of blended fuel that could be purchased. The NYPA installed a system of tanks, pipes, pumps and other equipment to deliver the blended fuel to the plant's 18-story boiler-where temperatures reach more than 3,000 degrees Fahrenheit-to produce steam for electricity generation. 
 
 The Charles Poletti Power Project usually burns natural gas as its primary fuel, and uses heating oil as a backup. The 885-megawatt project operates at a site in Astoria, N.Y., on the East River. The NYPA said this facility is "among the most efficient and cleanest fossil-fuel plants [and] uses combined-cycle technology to capture hot gases normally lost in the generation of power to provide additional amounts of electricity and lower emissions."
 
 Similarly, the McMinnville Electric System in McMinnville, Tenn., has used biodiesel to generate electricity for the Tennessee Valley Authority (TVA). In cooperation with Caterpillar, the original equipment manufacturer, McMinnville Electric was running biodiesel in a two-megawatt generator to provide power to the TVA grid.

David Hom, operating mechanic for the NYPA, checks the biodiesel lines during two days of testing Oct. 24-25 at NYPA's Charles Poletti Power Project in Queens.

467-1294329560.jpg

New York Power Authority experiments with biodiesel

Texas is famed for doing things its own way. In fact, it's the only state that can fly its flag alone-without the American flag. Its reputation for independence has made it one of our most unique-and popular-states. Another unique aspect of the Lone Star State is its Texas Low Emission Diesel (TxLED) fuel program. Unless the biodiesel industry can persuade the state of Texas that biodiesel won't impact the integrity of the TxLED program, Texas will become the first state in the Union to ban biodiesel blends.
 
 If biodiesel sales became illegal in Texas, it would have a dramatic and negative impact on the entire industry, and could set it back substantially. Texas is the second-largest biodiesel producer in the United States. It is home to 12 plants, with another four under construction. With 33 B20 pumps, Austin leads the nation in biodiesel retail availability for any single city. Fortunately, due in large part to a massive effort from the biodiesel industry, biodiesel blends haven't yet been banned in Texas. The state environmental agency, the Texas Commission on Environmental Quality (TCEQ), has proposed bans on biodiesel blends under its TxLED program two times in the past two years, but has now agreed to a second waiver to allow additional scientific evidence to be explored on the underlying issue of whether biodiesel will impact the integrity of the TxLED program. 
 
 As part of the state's plan to address ozone non-attainment problems in its major cities, the TCEQ developed the TxLED program-similar to the California Air Resources Board diesel program-as a means for reducing nitrogen oxide (NOx) emissions from diesel exhaust. It took effect Jan. 31, 2006. NOx emissions, along with volatile organic compounds (VOC), are thought to be precursor pollutants for ozone formation. The program covers a 110-county area that encompasses Dallas, Fort Worth, Tyler, Longview, Austin, San Antonio, Corpus Christi, Houston, Beaumont and Port Arthur. This particular area within Texas is one of the largest diesel fuel markets in the world. Statewide, Texas is projected to use more than 7.6 billion gallons of diesel fuel in 2007. 
 
 Until 2005, it wasn't clear that TCEQ intended to regulate biodiesel blends under TxLED. The confusion was created by the fact that the TxLED rule didn't expressly deal with biodiesel. On the one hand, TCEQ didn't include biodiesel within the definition of "diesel fuel." On the other hand, biodiesel meets the TxLED aromatic and cetane specifications. Therefore, members of the industry relied upon the fact that biodiesel was either exempt from the rule or complied with it, but certainly had no reason to believe that the TxLED rules would be interpreted to prohibit biodiesel blends. TCEQ issued informal guidance in 2005 indicating that it wouldn't recognize biodiesel's fuel characteristics, but instead characterized biodiesel as an additive. TCEQ also made it clear that it would require biodiesel blends to use additives and demonstrate NOx neutrality in engine dynamometer testing protocols in order to be sold in the 110 TxLED counties. 
 
 In light of TCEQ's position, the National Biodiesel Board (NBB) pursued additive testing strategies and in May 2005 was awarded three grants to test additive-based, emission-testing strategies. However, toward the end of the year, it became clear that no testing could be completed before the effective date.

 
 Due to the urgent situation, some members of the Texas biodiesel industry-mostly members of the NBB-rallied to form a state trade association in November 2005. They called it the Biodiesel Coalition of Texas (BCOT) and held the first meeting in Carl's Corner, Texas. BCOT's first order of business was to ensure that biodiesel would be legal after the implementation of the TxLED program. BCOT's efforts were successful, and in January of 2006, it negotiated an "Alternative Emission Reduction Plan (AERP)," which allowed biodiesel blends to be sold during the calendar year. This important development facilitated the continued growth of the industry in Texas.
 
 Throughout the year, BCOT has worked to pursue a more permanent solution to the TxLED issue with the TCEQ and interested members of the Texas legislative and executive branches of government. At the same time, the NBB has continued to pursue the additive testing grants as a contingency plan, but in May, it encountered some hesitation on TCEQ's part to approve biodiesel-specific test protocols. A significant development occurred one month later when TCEQ refused to allow the NBB to use one of the available grants to test a straight biodiesel blend without any additives. TCEQ's refusal to allow the NBB to test the underlying assumption about biodiesel's impact on NOx caused the NBB to fundamentally rethink additive-based compliance strategies. Ultimately, the TCEQ staff continued to shift positions about how biodiesel fuel should be tested, so an additive-based compliance strategy was discontinued. 
 
 With help on the federal level from the NBB, BCOT maintained constant efforts on the home front and participated in a Texas Senate Hearing in October, during which industry representatives and state and national scientists testified before the Texas Legislature regarding regulatory barriers to the biofuel industry and the evolving science on the biodiesel NOx question. Among the experts was Dr. Bob McCormick from the U.S. DOE's National Renewable Energy Laboratory (NREL), who presented testimony about the recently published DOE/NREL study on the issue, which found that vehicle testing data showed no change in NOx levels between diesel and biodiesel fuel. He also presented recent studies performed by the Navy, Texas A&M University and North Carolina State University.
 
 Finally, on Dec. 8, the TCEQ commissioners convened a public meeting and directed their staff to implement a policy to extend the biodiesel AERP for another year until December 31, 2007. This will allow further testing and input from the U.S. EPA, which recently announced plans to carefully consider the new data in hopes of making a more clear determination about the potential impact of biodiesel on NOx emissions. The NBB and BCOT intend to coordinate efforts to ensure that a timely resolution of the issue occurs on the national level so that further uncertainty in state programs like TxLED can be avoided. 
 
 Together, we will continue working to ensure that TxLED doesn't stand in the way of the growth of the biodiesel industry in the Lone Star State, or in any other state.
 
 Joe Jobe is the CEO of the NBB. Mike Nasi is the general counsel of BCOT and a partner at Jackson Walker LLP. BCOT is made up of 49 feedstock developers, producers, distributors and end-users of biodiesel in Texas. The board of directors and regulatory committee of BCOT includes the following companies: ADA Resources, Ag Fuels, Austin Biofuels, Big Daddy's Biodiesel, Biodiesel Industries, the city of Denton, DFW Biodiesel, Earth Biofuels, BioSelect Galveston (formerly Galveston Bay Biodiesel), Green Earth Fuels, Organic Fuels, Pacific Biodiesel of Texas, Safe Fuels, Sierra Fuels, Smithfield Energy, SMS Biofuels and Texoga Biofuels.

468-1294329561.jpg

469-1294329562.jpg

Biodiesel: A Lone Ranger in the Lone Star State

NBB In Sight

Legend has it that nearly 200 years ago, after finding impressive apple trees in Defiance, Ohio, Johnny Appleseed established a nursery business in the rural community.
 
 Today, he would still find apple trees, but he would also find a blooming biodiesel plant. American Ag Fuels is growing its annual biodiesel production from 3 million to 6 million gallons. By the time the plant completes the expansion in April 2007, it will have nearly 20 full-time and eight part-time employees, in addition to boosting business for the local contractors who are involved in the construction.

 
 It's just one example of how the growing biodiesel industry is feeding the U.S. economy through job creation, tax revenues and farm income. "We decided to expand because frankly we've had trouble keeping up with demand," says American Ag Fuels President Steve Lankenau. 
 
 The National Biodiesel Board released a new economic study that shows how biodiesel plants are a boon to the U.S. economy as they sprout up across the nation. According to the economic analysis by John M. Urbanchuk of LECG LLC funded by the soybean checkoff through the United Soybean Board, the aggregate economic benefits of biodiesel include the following: 
 
 --America's biodiesel industry will add $24 billion to the U.S. economy between 2005 and 2015, assuming biodiesel growth reaches 650 million gallons of annual production by 2015
 
 --Biodiesel production will create a projected 39,102 new jobs in all sectors of the economy
 
 --Additional tax revenues from biodiesel production will more than pay for the federal tax incentives provided to the industry. It will keep $13.6 billion in America that would otherwise be spent on foreign oil. This total impact of biodiesel on the economy includes the temporary impacts of construction, the permanent impacts of annual production, and the direct value of biodiesel and by-products (i.e., glycerin). 
 
 "Because these plants buy local goods and local services, the second and third-round employment-generating impacts are really significant," Urbanchuk said. "You're looking at a fairly substantial employment-generating impact. Most of these jobs are going to be located in rural communities, and you can't overstate the impact of the biofuels industry on these rural economies." 
 
 A fact sheet on this study can be found at <a target="_blank" href="http://www.biodiesel.org/links/120806.htm">www.biodiesel.org/links/120806.htm</a>.

New study shows biodiesel will add $24 billion to U.S. economy

New board members and new projects have re-energized the National Biodiesel Foundation. The foundation was formed in 1994 to solicit funding opportunities for educational and research goals. Participating corporations, along with nonprofit and federal organizations, will sponsor additional development of the biodiesel industry.
 

 Tom Verry, director of outreach and development for the National Biodiesel Board (NBB), was voted in as the executive director at the foundation board meeting held in conjunction with the NBB's most recent board meeting. Current board members and their positions are:
 
 --President-Darryl Brinkmann of the American Soybean Association
 
 --Vice president-David Womack of the Tennessee Soybean Promotion Board
 
 --Treasurer and secretary-John Heisdorffer of the Iowa Soybean Association
 
 "Biodiesel has been growing at such a rapid pace," Verry said. "It was apparent the time had come to put the National Biodiesel Foundation into action. One value the foundation can bring to donors is the comfort of knowing the funds will not be used for lobbying, which is important as this industry pursues more government and nonprofit funding opportunities. Additionally, it gives corporations and individuals an opportunity to support biodiesel research and education, while classifying their contribution as a tax-deductible donation."
 
 At the next foundation board meeting, Verry will present funding opportunities, and there will be discussion on future action and grant options. This meeting will be held in conjunction with the National Biodiesel Conference and Expo on Feb. 4-7 in San Antonio, Texas.

471-1294329564.jpg

National Biodiesel Foundation is on the move

The National Biodiesel Conference and Expo is soon approaching, and in case you haven't registered yet, here is what's in store for the 2007 event. The event will take place Feb. 4-7 at the Henry B. Gonzalez Convention Center in San Antonio. The National Biodiesel Board (NBB) expects 3,500 people to attend.
 
 All-star lineup mixes Congress, country-western
 A blend of entertainment and education will keep everyone interested during the general sessions and other activities. Highlights include:
 
 --The Congressional rock band The Second Amendments performing at the opening night reception and serving on a panel during Monday's general session

 
 --Merle Haggard starting off the first-ever biodiesel political action committee (PAC) meeting at the conference
 
 --Political pundit-couple James Carville and Mary Matalin closing the conference with their unique style of communicating how to make politics work in your favor 
 
 --Biodiesel supporter Larry Hagman of television show "Dallas" fame 
 
 --Bill Mack, the XM Satellite Cowboy 
 
 --Dr. John G. Stoessinger, internationally recognized political analyst and prize-winning author of 10 world politics books, including The Might of Nations: World Politics in Our Time. Stoessinger escaped from Nazi-occupied Austria and went on to serve with the United Nations and Council on Foreign Relations.
 
 
 Methanol safety and more make up important sessions
 New to the rich educational program for 2007 will be an additional track on production. Past tracks-Users, Markets, Technical, Regulatory and OEM-will also be included in the 2007 agenda. Session topics include uses for glycerin, emerging markets and methanol handling, which mirror what the NBB has been offering as Web teleseminars.

 
 In 2006, the NBB began working with Methanex, the world's largest producer of methanol, to set up a series of Web-based teleseminars on safety. This will be repeated at the conference and will help to raise awareness about the existing legal, environmental and safety requirements of methanol use. It is critical that biodiesel producers are fully aware of any risks and regulations. 
 
 NBB offers several events
 Attendees can enjoy the golf tournament at the Quarry Golf Club (www.quarrygolf.com), as well as receptions that the conference agenda offers. An expo hall reception and a Super Bowl Welcome Reception are on the schedule so far. Also on Super Bowl Sunday, preconference sessions are offered, including details of the BQ-9000 program. Other meals are included with registration, as well.
 
 Conference offers growing expo
 The 2007 expo will showcase the foremost service and technology providers for the industry. With exhibitors vastly increasing from the previous trade shows, conference planners expect 225 booths. Plus, expo hall hours are expanded for 2007.
 
 Accommodations 
 The Marriott RiverWalk and Marriott RiverCenter are the conference hotels, but rooms were limited at press time. Check out the Hilton Palacio del Rio and the historic Menger Hotel. Both are located either across the street or within a few blocks from the convention center. Book quickly to ensure availability. More information is at <a target="_blank" href="http://www.biodieselconference.org/2007/pre/area/lodging.asp">www.biodieselconference.org/2007/pre/area/lodging.asp</a>. 
 

 
 NBB thanks sponsors
 The NBB and sponsors host the National Biodiesel Conference and Expo. Some of the sponsors at press time included World Energy Alternatives LLC, a Platinum sponsor; and Core Ventures, the exclusive Super Bowl party sponsor. Gold sponsors are:
 &bull; Bioenergy of America
 &bull; Crown Iron Works Company
 &bull; Degussa Building Blocks
 &bull; Renewable Energy Group Inc.
 
 Registration
 The discounted preregistration time period ends Jan. 26. After that, attendees must register on-site. The registration desk opens at 10 a.m. on Feb. 3. For more details on the conference and to register, visit <a target="_blank" href="http://www.biodieselconference.org/2007">www.biodieselconference.org/2007</a>.

470-1294329565.jpg

Don't miss fourth annual National Biodiesel Conference and Expo

John Heisdorffer has been using biodiesel blends in his farm machinery for years. As an Iowa soybean farmer, Heisdorffer knows the importance of using biodiesel in his Case IH tractors and combine. After all, using biodiesel enabled him to burn a more beneficial fuel that he and his peers can grow anew each year. 
 
 Case IH has given farmers and its other equipment users the blessing for up to a B20 blend of biodiesel. The company said customers can use B20 in most Case IH engines and B5 in all Case IH engines. In addition, Case IH fills most of its models with biodiesel blends right out of the factory. 
 

 Heisdorffer, an Iowa Soybean Association (ISA) executive committee member and a director of the Iowa Renewable Energy biodiesel plant, said biodiesel owes some of its success to equipment manufacturers like Case IH. "I appreciate that Case IH took the initiative to be one of the first engine manufacturers of farm equipment to promote not only biodiesel, but especially [a blend] up to B20," he said. "I have been using B20 and have never had any problems whatsoever with the Case IH equipment or the fuel." The ISA is a member of the National Biodiesel Board and Heisdorffer was recently elected an officer of the National Biodiesel Foundation.
 
 Case IH is not only taking the farmer's word for it, but also their own in their next steps in advancing biodiesel. "Case IH and our engine partner companies are continuously testing higher biodiesel blends and engine configurations to provide our customers with the most up-to-date information," said Randy Baker, president of Case IH North America. "A 100 percent factory-fill of a biodiesel blend is a logical next step in the process of embracing biodiesel. Adding to demand for soybeans while producing the crop is the type of strategy our customers like to pursue. It's good environmental stewardship and good business." 
 
 Case IH agricultural equipment fully supports the use of B5 blends on all engines it manufactures. B20 is approved for use in all Case IH engines other than common rail. In addition, field testing is being conducted to determine performance levels of blends up to 100 percent biodiesel as part of a program to ensure maximum productivity and engine durability. 
 
 "As long as engine maintenance procedures are followed, and in-spec blends are purchased from a reputable supplier, biodiesel blends from B5 through B20 can be used in any Case IH engine in operation today," Baker said. 
 
 All major original equipment manufacturers (OEMs) support B5 and lower blends, provided they are made with biodiesel meeting ASTM D 6751. New Holland also has approved up to a B20 blend in its diesel engines. A growing number of OEMs are recommending the use of BQ-9000 companies. BQ-9000 is the industry's biodiesel fuel-quality program. 
 
 Additional information regarding recommended biodiesel blend levels is available on the product pages of www.caseih.com/na.

Case IH continues champion-of-biodiesel role

As the cold season arrived, ultra-low sulfur diesel (ULSD) simultaneously took its permanent place in the on-road market recently. Cold weather can bring more precautions to biodiesel use, but some untested variables are arising with the new ULSD fuels, in addition to ULSD/biodiesel blends. 
 
 Some petroleum distributors have expressed concerns about the cold flow properties of some types of ULSD when blended with cold-flow additives. It may take more treatment than previously expected. Adding biodiesel to this mixture can further change the amount of cold-flow additives needed for successful winter use. 
 
 The National Biodiesel Board (NBB) and the Petroleum Marketers Association of America (PMAA) issued a joint bulletin advising petroleum distributors to report any issues they are having with ULSD before biodiesel is blended. For a copy of that bulletin, called the "Biodiesel Winter Weather Advisory," visit <a target="_blank" href="http://www.biodiesel.org/links/110806.htm">www.biodiesel.org/links/110806.htm</a>.

 
 Additionally, the NBB and PMAA have agreed to share data collected from the field on biodiesel/ULSD blends. The NBB is also contracting with laboratories to test and confirm blended fuel properties with ULSD and biodiesel. Winter-grade ULSD has been unavailable for testing until now. 
 
 Please e-mail NBB Director of Petroleum Outreach Paul Nazzaro at <a href=mailto:"advancedfuel@comcast.net">advancedfuel@comcast.net</a> or Holly Tuminello, PMAA vice president, at <a href=mailto:"info@pmaa.org">info@pmaa.org</a> with any information you might have.

ULSD and biodiesel: Notes you should know

In November, Tyson Foods announced the formation of Tyson Renewable Energy, a division designed to commercialize the company's supply of animal fat into biofuels, starting in fiscal year 2007. Tyson, which processes and markets chicken, beef and pork, produces 2.3 billion pounds of animal fat per year-enough feedstock for 300 million gallons of biofuels-according to Senior Vice President Jeff Webster. Tyson is also exploring renewable diesel, synthetic diesel, biogas, and litter for electricity and fuel.

472-1294329566.jpg

Tyson Foods forms Tyson Renewable Energy

The name of a rendering company currently building a biodiesel plant in De Forest, Wis., changed from Anamax to Sanimax in November. In 2005, Sanimal, with corporate offices in Montreal, and Anamax, with corporate offices in Green Bay, Wis., merged, according to plant General Manager Mike Spahn. The name of the plant now reflects that change. At press time, the 20 MMgy, multi-feedstock Sanimax Energy Services Inc. anticipated a January 2007 start-up.

473-1294329567.jpg

Anamax changes name

New Century Lubricants recently announced its partnership with the National Chemical Laboratory, a constituent laboratory of the Council of Scientific and Industrial Research in India, to develop New Century Lubricants' Ensel technology for the transesterification of seed oils and the etherification of glycerin. New Century Lubricants plans to build and operate a 1-ton-per-day Ensel pilot plant in India to evaluate different feedstocks from all over the world. William Summers, president of New Century Lubricants, expects the plant to come on line in one year.

Two companies work to develop Ensel technology

The American Oil Chemists' Society (AOCS) is preparing to release a CD-ROM titled "Focus on Biodiesel" in early 2007. According to AOCS Senior Director of Product Development Jodey Schonfeld, the medium is a virtual library of biodiesel knowledge and is part of the organization's Professional Development series. "It's a compendium of information," Schonfeld told Biodiesel Magazine. The most up-to-date technical information, including standards, properties and more, is detailed. "It gives a historic, full picture of how things developed in this industry," Schonfeld said. The CD-ROM costs about $49 for nonmembers.

475-1294329569.jpg

AOCS to release biodiesel CD-ROM

Provista, a biodiesel and ethanol marketer, was formally introduced in November as a joint venture between CHS Inc., a food, grain and energy company, and U.S. BioEnergy Corporation, an ethanol producer and marketer. Provista currently has 450 million gallons of ethanol and 85 million gallons of biodiesel under contract. According to Provista's John Litterio, the company has exclusive contracts with Beatrice Biodiesel, a 50 MMgy plant under construction in Beatrice, Neb., and Washington Biodiesel, a 35 MMgy plant under development in Warden, Wash.

476-1294329571.jpg

CHS, U.S. BioEnergy form Provista to market biodiesel, ethanol

Biodiesel and ethanol plants can now assess the risk and maximize profit possibilities through a stochastic risk analysis tool developed through the Iowa Farm Bureau and operated by the Iowa Agriculture Innovation Center (IAIC). The model uses historical patterns to determine 500 possible outcome scenarios for a 10-year financial prediction based on several variables, such as weather conditions, crop yields, commodity prices and more. According to Garth Sparbow, a financial analyst with the IAIC, clients can receive results in one to two weeks if all data is available.

477-1294329572.jpg

IAIC launches new risk analysis tool

In an effort to more accurately reflect the company's focus on biodiesel production, Dyametrics Medical Inc. has changed its name to Allegro Biodiesel Corporation. Dyametrics currently owns Vanguard Synfuels LLC, a 15 MMgy plant in Pollock, La., and plans to build and acquire more biodiesel production capacity "at a rapid pace," according to CEO Bruce Comer. The company's Web site, <a target="_blank" href="http://www.allegrobiodiesel.com">www.allegrobiodiesel.com</a>, is under development, and Allegro Biodiesel is now listed on NASDAQ under the symbol ABDS.

478-1294329572.jpg

Dyametrics Medical changes name

UOP LLC, a subsidiary of Honeywell International, has announced the formation of its Renewable Energy and Chemicals business unit. The unit, directed by Jennifer Holmgren, is charged with providing new or adapted technology for processing renewable energy sources in petroleum refineries. Additionally, UOP's development efforts have targeted the creation of transportation fuels that can be used with existing diesel and gasoline infrastructure. Such efforts include UOP technologies that can convert vegetable oils to high-cetane diesel fuel and the conversion of glycerol to propylene glycol.

Honeywell's UOP starts Renewable Energy and Chemicals unit

SeQuential Biofuels in Portland, Ore., has appointed Dave Garten as its first CEO. SeQuential is a biofuels marketing, distribution and retail company that supplies biodiesel to more than 30 regional fuel distributors in Washington and Oregon. Garten previously served as a business advisor to SeQuential and, before that, general manager and director of business development at the Intel Corporation. He holds a master's degree in business administration from the Massachusetts Institute of Technology, as well as a master's degree in engineering from Rensselaer Polytechnic Institute in Troy, N.Y.

SeQuential Biofuels appoints CEO

A new slate of officers was elected at the United Soybean Board annual meeting in St. Louis, Mo. The new chairman, Eric Neimann of Nortonville, Kan., reaffirmed the board's commitment to promoting and developing the biodiesel industry.
 

 Ike Boudreaux of Lebeau, La., was elected vice chairman. Kent Gronlie of Northwood, N.D., will continue in his post as the board's treasurer. Chuck Friedrich of Aurora, S.D., is the board's new secretary. 
 
 Biodiesel quality will be a top priority for the board in 2007, Boudreaux said. The board will continue to work through the BQ-9000 program to educate suppliers on the proper handling, storage and transportation of biodiesel.

479-1294329572.jpg

United Soybean Board elects new officers

Perth, Australia-based Natural Fuel Ltd., a group of renewable energy companies, announced recently the appointment of Dr. John Hewson to the position of chairman. Hewson is currently the special advisor to the undersecretary of the United Nations (UN), and the executive secretary on infrastructure financing for the UN Economic and Social Commission for Asia and the Pacific. Formerly, Hewson served as an economist for the Australian Treasury and The Reserve Bank. He was also an advisor to the prime minister.

480-1294329573.jpg

Natural Fuel Ltd. of Australia appoints new chairman

An Iowa land developer has acquired land and is raising equity for a 30 MMgy biodiesel plant in Illinois. Pella, Iowa-based Ewing Land Development & Services' Todd Ewing said a division of his company, America's Renewable Energy LLC (ARE), has purchased a 172-acre site along the Mississippi River in Quincy, Ill., that will be home to a biodiesel and ethanol plant.
 
 Ewing said equity is being raised for the $47 million biodiesel plant, which will be Phase 1 of the planned two-phase renewable fuels park. He said he hopes to begin construction on the biodiesel plant in May 2007 with an August 2008 start-up.
 
 The plant site is adjacent to Archer Daniels Midland Company's (ADM) soy crush facility. ADM announced in November 2006 that it was planning on completing an expansion of the facility by mid-2008. Feedstock contracts haven't been signed between ADM and ARE, Ewing said.
 

 The site is also served by the Burlington Junction Railway. Ewing said Quincy is being considered as a potential location for a modern regional intermodal port and attached terminal area under direction of the <a target="_blank" href="http://www.maia-port.com/">Mid-America Intermodal Port Authority</a>. The terminal would serve areas in Illinois, Iowa and Missouri. "Our site provides a unique advantage for the direct procurement of feedstock and efficient delivery and distribution straight to the highways of America," Ewing said.
 
 ARE has engaged with <a target="_blank" href="http://www.proenergies.net/">Progressive Energies Inc.</a> of Leawood, Kan., for construction management services. Ewing said a technology supplier has been contracted, but a general contractor for the project has not been finalized.
 
 Illinois's largest biodiesel producers include Joliet-based Stepan Company and Gilman's Incobrasa Industries Ltd., which recently began going through start-up at a 30 MMgy plant.
 
 Dave Nilles is Online Editor for Biodiesel Magazine. Reach him at <a href=mailto:"dnilles@bbibiofuels.com">dnilles@bbibiofuels.com</a> or (701) 373-0636.

 
 Posted: 12:05 p.m. CST Thursday, January 11, 2007

Illinois biodiesel project raising equity

In what will almost certainly be a reversal of 2007, corn production dropped slightly and soybean production set a U.S. record in 2006, according to year-end statistics released this week by the USDA.
 
 The USDA estimates 2006 corn production at 10.5 billion bushels, which is the third largest on record but still a 5 percent drop from 2005. Yield is estimated at 149.1 bushels per acre, which is the second highest on record behind 2004. More than 70 million acres of corn were planted for grain production in 2006, which is down 6 percent from 2005.
 
 Up from last month's estimates, the projected price range for corn was increased 10 cents on each end of the range to $3 to $3.40 per bushel. Projected U.S. corn ending stocks are projected at 752 million bushels. Global corn stocks are projected to fall to their lowest level since 1977/'78.
 
 Sorghum, another ethanol feedstock, saw its production drop 29 percent from 2005 levels. Yield also fell 12.3 bushels per acre from 2005. 
 
 Corn acres are expected to increase dramatically in 2007, due in large part to the rapid increase in fuel ethanol production capacity. The U.S. ethanol industry currently has capacity to produce roughly 5 billion gallons per year. More than 4.5 billion additional gallons of capacity is under construction or expansion. Current planting estimates forecast an increase in the range of 7 million to 10 million acres. The USDA's annual prospective planting report will be released in late March.
 
 The 2006 U.S. soybean crop was the largest on record despite a 0.3 bushels per acre drop in average yield from 2005. U.S. farmers produced 3.19 billion bushels with an estimated 42.7 bushels per acre average yield. Harvested area is up 5 percent from 2005 to a record 74.6 million acres. Production is actually down 16 million bushels from the USDA's previous estimate. The drop is attributed to the lower yields.
 
 The U.S. season-average soy oil price is forecast at 26.5 to 28.5 cents per pound compared with the 26 to 29 cents per pound estimated last month. Soy meal prices are projected at $170 to $185 per short ton compared to $165 to $190 last month.
 
 U.S. oilseed production is estimated at 96.9 million tons. Meanwhile, global oilseed production for 2006/2007 is projected at a record 395.4 million tons.

 
 Dave Nilles is Online Editor for Biodiesel Magazine. Reach him at <a href=mailto:"dnilles@bbibiofuels.com">dnilles@bbibiofuels.com</a> or (701) 373-0636.
 
 Posted: 10:06 a.m. CST Friday, January 12, 2007

Corn production drops, soy sets record in '06

A new Wisconsin group is trying to develop the state's growing biobased industry. The <a target="_blank" href="http://www.wisconsinbioindustry.com">Wisconsin Bio Industry Alliance</a> was officially announced earlier this month with a focus on the development of bio-based renewable energy, power and products.
 
 The group, which is heavily comprised of representatives from Wisconsin ethanol producers, is a natural spin-off of the Wisconsin Ethanol Coalition and Gov. Jim Doyle's Consortium on Bio Based Industry, according to Josh Morby, spokesman for the Bio Industry Alliance. 
 
 The group's executive board is a who's who list of ethanol production in Wisconsin. The board includes John Malchine of Badger State Ethanol, Steve Christensen of Western Wisconsin Grain Producers, Alex Samarzdich and Bob Sather of Ace Ethanol, Bob Welch of Utica Energy, and Kevin Roche and Jerry Franz of United Wisconsin Grain Producers.

 
 Malchine was also co-chair of the state's <a target="_blank" href="http://bioeconomy.wi.gov/">Bio Based Industry Consortium</a>. One of that group's recommendations was to create a partnership of Wisconsin firms involved in the bio industry.
 
 The Bio Industry Alliance is a nonprofit organization with a primary focus of providing market opportunities for companies and researchers, according to Morby. "This really started as a private sector-driven policy development and education organization," he said.
 
 The group's Web site lists a variety of goals, including helping researchers, emerging businesses and entrepreneurs access federal and state grants, provide technical assistance to developers, and work with regulators to build a framework for bio industry technology that protects the environment and grows Wisconsin's economy. 
 
 Morby said the group, which also includes biodiesel industry stakeholders, is expected to meet on a monthly basis.
 
 Wisconsin has five operational ethanol plants and four more under construction. Upon completion, the state will have capacity to produce more than 470 MMgy of ethanol.
 
 Wisconsin's eastern neighbor held the second meeting of its <a target="_blank" href="http://www.renewablefuelscommission.org">Michigan Renewable Fuels Commission</a> in Detroit, Mich., on Jan. 11. The commission was created by a group of renewable fuel-related bills signed into law by Gov. Jennifer Granholm in July 2006.

 
 The group's formational meeting was held Nov. 30, 2006. The Jan. 11 meeting split the group's 25 commissioners into areas of focus, including feedstocks, production of fuel supply, public education and marketing, and distribution and infrastructure.
 
 Commissioner Dick Vande Vusse, president of Ag Solutions Inc., said the initial meeting was to the direct the committee's focus. Ag Solutions Inc. is a 5 MMgy biodiesel plant located in Gladstone, Mich.
 
 Vande Vusse said the November meeting featured discussion on biofuel feedstock potential, as well as tying in the research being conducted by institutions in the state. "How can we tie them together and utilize them as a base to get us to the next level?" he said. "We'll look at legislative regulatory issues that are a hindrance or could be a help to create growth in renewable fuels."
 
 The commission's next meeting will be held Feb. 26 and Michigan State University. 
 
 Dave Nilles is Online Editor for Biodiesel Magazine. Reach him at <a href=mailto:"dnilles@bbibiofuels.com">dnilles@bbibiofuels.com</a> or (701) 373-0636.
 
 Posted: 12:23 p.m. CST Monday, January 15, 2007

Wisconsin and Michigan groups work to develop biofuels industries

A New York biodiesel project has doubled in size. <a target="_blank" href="http://www.gs-agrifuels.com">GS Agrifuels Corporation</a> announced today the formation of GS Fulton Biodiesel LLC, a 10 MMgy biodiesel plant to be built at the Riverview Business Park in Fulton, N.Y.

 
 The project was initially a 5 MMgy project being designed by <a target="_blank" href="http://www.nextgenfuel.com">NextGen Fuel Inc</a>. In 2005, the New York State Energy Research and Development Authority awarded NextGen a $250,000 contract to design and build a facility in Fulton, N.Y. 
 
 GS Agrifuels said it has executed an agreement with a subsidiary of <a target="_blank" href="http://www.homeland-energy.com">Homeland Energy Biofuels LLC</a> to form the venture. Homeland Energy, the lead developer in the project, has managed the feedstock, off-take and other technical and business aspects of the project over the past year and had selected NextGen Fuel Inc.'s biodiesel production equipment as the production technology for the project, according to a release. The biodiesel system is being fabricated by Warnecke Design Inc., added the release.
 
 GS Agrifuels announced Nov. 2, 2006, that it had acquired NextGen Fuel. NextGen Fuel's Jeff Deweese recently told Biodiesel Magazine that the Fulton project could begin production as soon as April 2007. GS AgriFuels President and CEO Thomas Scozzafava said the plant is expected to begin production by mid-2007. 
 
 The biodiesel plant will be built adjacent to Northeast Biofuels LLC, which is developing a 110 MMgy ethanol plant at the former Miller Brewing Company plant. Both projects will utilize existing brewery infrastructure. Northeast Biofuels is expected to start production later this year. Permolex International LP, which already operates an ethanol plant in western Canada, is the project's lead equity investor.
 

 Eric Will, co-developer of the Riverview Business Park, said a second biodiesel project has inquired about developing a project at the site. GS Agrifuels, under its Mean Green Biofuels brand, is also developing a 30 MMgy biodiesel project in Memphis, Tenn.
 
 Homeland Energy is also developing additional biodiesel plants in New York and New Jersey, according to its Web site. The company managed the development of New York's first hydrogen fueling station and is involved with the second, which is expected to open in 2007, according to the release.
 
 Dave Nilles is Online Editor for Biodiesel Magazine. Reach him at <a href=mailto:"dnilles@bbibiofuels.com">dnilles@bbibiofuels.com</a> or (701) 373-0636.
 
 Posted: 2:13 p.m. CST Tuesday, January 16, 2007

GS Agrifuels developing New York biodiesel plant

A Utah biodiesel producer has found a buyer for its fuel and announced plans on expanding production capacity in 2007. <a target="_blank" href="http://www.betterbiodiesel.com">Better Biodiesel Inc.</a> announced today that its first commercial shipment of biodiesel was delivered to heavy hauling truck firm Christensen Brothers of Spanish Fork, Utah.
 

 Christensen is the first commercial user of Better Biodiesel's fuel, which is produced in a 3 MMgy plant in Spanish Fork. Better Biodiesel spokesman Anthony Evans said the plant hasn't operated at full capacity since it came on line in September 2006. Instead, it has operated to meet demand. Better Biodiesel previously donated fuel to the <a target="_blank" href="http://www.earthrace.net">Earthrace</a> project, which is a B100-powered boat aiming to set a world record for circumnavigating the globe.
 
 "Christensen Brothers is pleased with the performance and attributes of [Better Biodiesel's] fuel, including its potential to lower maintenance costs and enhance the longevity of its engines and equipment," said Christensen Brothers CEO Lew Christensen.
 
 According to a Securities and Exchange Commission (SEC) filing, Better Biodiesel's 175,000-square foot facility is located on a leased, five-acre parcel of land in Spanish Fork, Utah, near Interstate 15. The facility contains offices, laboratories, and refining, maintenance and fabrication areas. The site, which has four railroad spurs, is adjacent to 28 acres, which could be used for expansion.
 
 On Sept. 29, 2006, Better Biodiesel completed acquisition of Domestic Energy Partners LLC, which developed the multi-feedstock processor in Spanish Fork. The SEC filing said Better Biodiesel's subsidiary, Domestic Energy Partners LLC, has a patent pending on its biodiesel process technology. The company said its process uses a "continuous flow method that can process a wide variety of raw feedstock oils into biodiesel fuel in a matter of minutes."
 
 Better Biodiesel plans to expand production to 100 MMgy of biodiesel by year's end, Evans said. He added that Better Biodiesel's business model is to manufacture numerous 10 MMgy facilities. 
 
 Most, if not all, of the new capacity will be built in Spanish Fork, which is located 50 miles south of Salt Lake City. The site's infrastructure would likely need to be developed to handle the expansion. The SEC filing said the site's tank farm consists of three 10,000-gallon tanks and one 108,000-gallon tank for storing feedstock oils, finished biodiesel and glycerin.
 
 The first expansion is expected to be complete by the end of the first quarter of 2007 depending on the successful raising of capital, Evans said. He added that an engineering firm has been hired to develop the expansion.
 

 Dave Nilles is Online Editor for Biodiesel Magazine. Reach him at <a href=mailto:"dnilles@bbibiofuels.com">dnilles@bbibiofuels.com</a> or (701) 373-0636.
 
 Posted: 9:43 a.m. CST Thursday, January 18, 2007

Better Biodiesel looks to expand in Utah

Another hurdle has been cleared for a proposed biodiesel plant in northern Indiana. On Jan. 16, LaGrange County commissioners approved a zoning change for Ultra Soy of America LLC's 60 MMgy biodiesel facility proposed near South Milford, Ind.
 
 The decision moves the project another step closer to construction. Ultra Soy of America LLC plans to invest more than $140 million in a soybean processing and biodiesel plant near South Milford. The plant will be one of the largest soybean crushing operations in the United States, the company said in a statement.
 
 The crush plant is expected to produce 120 MMgy of soy oil. The excess capacity will be sold on the open market.
 
 Financing is now being raised for the project, according to President Gary Pipenger. He also operates Fort Wayne, Ind.-based Amalgamated Inc., which produces and custom-blends fuel additives for the distillate fuels market. Pipenger said Amalgamated has considerable experience with cold flow, stabilization and performance-enhancing additives for biodiesel. He said the biodiesel project was a "natural fit" for his company.
 
 Construction on the South Milford project is slated to begin later this year and be operational in 2008. Pipenger said he estimates 16 months for construction. He didn't disclose the project's design/build team.

 
 Pipenger said several sites were considered before settling on South Milford. He said the site is located near a short-line railroad, which will allow for the importation of soybeans. East-west Canadian Pacific and Norfolk Southern rail lines run near South Milford, which is 40 miles north of Fort Wayne.
 
 Indiana has two commercial-scale biodiesel plants in operation. Evergreen Renewables LLC of Hammond produces 5 MMgy. Integrity Biofuels produces 5 MMgy in Morristown.
 
 Two larger facilities are under construction. E-Biofuels LLC is building a 25 MMgy plant in Middletown. Louis Dreyfus Agricultural Industries is building an 80 MMgy plant in Claypool.
 
 Dave Nilles is Online Editor for Biodiesel Magazine. Reach him at <a href=mailto:"dnilles@bbibiofuels.com">dnilles@bbibiofuels.com</a> or (701) 373-0636.
 
 Posted: 11:05 a.m. CST Monday, January 22, 2007

Proposed Indiana plant gets zoning change

A South Carolina biodiesel plant is nearing start-up. <a target="_blank" href="http://www.sebd.biz/">Southeast BioDiesel LLC</a> is nearing completion of its 6 MMgy plant in North Charleston.

 
 Southeast BioDiesel President Dean Schmelter said he hopes to begin fuel production by Feb. 1 at the plant, which is located at the former Charleston Naval Complex. The naval facility operated until 1996 along the Cooper River just north of Charleston, S.C. The biodiesel company signed a property lease in May 2006 and commenced construction in June, according to Schmelter.
 
 The facility features a "continuous-batch" process that was designed in-house, according to Schmelter. The plant will be capable of converting multiple feedstocks, but will likely rely heavily on the poultry fats available in the region.
 
 The plant's process equipment is housed within a 5,000-square-foot building adjacent to a tank farm.
 
 Schmelter said the fuel will be tested via an in-house lab and outside labs for ASTM verification. He said he expects to begin producing fuel in eight-hour shifts by Feb. 1. "We plan on running 24 hours per day, five days per week, with the weekend for repairs and maintenance," he said.
 
 The fuel will also be marketed by Southeast BioDiesel. Schmelter said the fuel will be directed toward fleets and construction companies. He said he also hopes to attract marine users since they are next to a large, deepwater port.
 
 Carolina Biofuels LLC is South Carolina's lone existing producer. It is expanding a 5 MMgy plant to 50 MMgy in Taylors, S.C.
 
 Southeast BioDiesel is also planning another facility in central Florida. The company recently finalized a lease for property at the Orlando-Sanford International Airport Commerce Park in Sanford, Fla. The commerce park currently has 270 undeveloped acres. Schmelter said the project is currently in the financing stages.
 
 Dave Nilles is Online Editor for Biodiesel Magazine. Reach him at <a href=mailto:"dnilles@bbibiofuels.com">dnilles@bbibiofuels.com</a> or (701) 373-0636.

 
 Posted: 11:58 a.m. CST Monday, January 22, 2007

South Carolina plant nears production

Six years of hard work is coming to fruition for Michael Noll. The president and founder of <a target="_blank" href="http://www.alfindustries.com">Alternative Liquid Fuel (ALF) Industries</a> said ground has been broken for the biodiesel facility he has been developing.
 
 Financing was finalized Dec. 7, 2006, and a ceremonial groundbreaking was held the next day at a site near McArthur, Ohio. Dirt work is underway, according to Ken Reed, Vinton County community and economic development director. Noll said steel for the process building is on order.
 
 Reed was a major reason ALF Industries sited its biodiesel project in McArthur. Noll said he considered several other sites for the biodiesel project, but a combination of economic incentives ultimately led him to the south-central Ohio town located 70 miles south of Columbus. "What's happened was finding the right bank and the right economic development team to put this together," Noll said.
 	
 ALF Industries' 6 MMgy biodiesel plant will be located on a portion of 200 acres that Vinton County developed several years ago. Reed said the site is equipped with basic utilities including electricity and municipal sewer.
 	
 Noll said construction on the building could be complete as soon as mid-April. <a target="_blank" href="http://www.bioking.nl/">BioKing</a> of The Netherlands is providing the process equipment, which is expected on-site in April. "The actual construction will be very fast," Noll said. "The company we're buying the processors from will take 12 weeks from the time of the order to delivery."

 	
 ALF Industries is also working on a deal to become the U.S. distributor for BioKing's equipment. The McArthur plant will start-up at approximately 3.5 MMgy of capacity and be capable of processing multiple feedstocks, according to Noll.
 	
 Noll said he expects the plant to be commissioned in May. He said he will pursue BQ-9000 accreditation, which is the biodiesel industry's voluntary fuel quality assurance program.
 	
 ALF Industries will not be using a fuel marketer. Noll said much of the plant's biodiesel has already been pre-sold to distributors.
 	
 Once operational, the biodiesel plant is expected to add up to 25 jobs to the local economy, Reed said. The impact is expected to be significant in an area Reed said is "economically distressed."
 	
 "We're excited," Reed said. "We're hoping to see more development. I'd like to see this facility as a beginning."
 
 Ohio has two operational biodiesel plants. American Ag Fuels is expanding a 3 MMgy plant in Defiance. Peter Cremer operates a 30 MMgy facility in Cincinnati. Jatrodiesel Inc. is developing a 5 MMgy project near Dayton. 
 
 Dave Nilles is Online Editor for Biodiesel Magazine. Reach him at <a href=mailto:"dnilles@bbibiofuels.com">dnilles@bbibiofuels.com</a> or (701) 373-0636.

 
 Posted: 2:02 p.m. CST Tuesday, January 23, 2007

Ohio plant begins ground work

While the speech may not be remembered for a reference to switchgrass or an "America is addicted to oil" quotation, President George W. Bush's 2007 State of the Union Address once again gave ethanol and biodiesel the center stage in a national venue.
 	
 Bush set a goal of producing 35 billion gallons of alternative fuels by 2017 as part of a plan to reduce U.S. gasoline consumption by 20 percent in the next 10 years. The alternative fuels standard (AFS) would include more fuels than the current renewable fuels standard (RFS), which Bush signed into law as part of the Energy Policy Act of 2005. The RFS calls for 7.5 billion gallons of renewable fuel use by 2012. 
 	
 The President's plan, titled Twenty in Ten: Strengthening America's Energy Security, also calls for reforming the Corporate Average Fuel Economy (CAFÉ) standards, stepping up domestic crude oil production and doubling the capacity of the Strategic Petroleum Reserve. "Let us build on the work we've done and reduce gasoline usage in the United States by 20 percent in the next 10 years," Bush said. "When we do that we will have cut our total imports by the equivalent of three-quarters of all the oil we now import from the Middle East."
 
 Currently, the U.S. ethanol industry has capacity to produce nearly 5.6 billion gallons of ethanol annually. An additional 4.1 billion gallons is under construction and expected on line within the next 18 months. "Our industry is up to the challenge," said <a target="_blank" href="http://www.ethanolrfa.org">Renewable Fuels Association</a> (RFA) Chairman Ron Miller.
 
 The biodiesel industry has the capacity to produce more than 700 million gallons of fuel. The <a target="_blank" href="http://www.nbb.org">National Biodiesel Board</a> (NBB) estimates approximately 250 million gallons of biodiesel were produced in 2006. "We are glad to see that the President's Twenty in Ten plan includes strong steps toward renewable energy, energy conservation and diversification, and carbon reduction," said NBB CEO Joe Jobe.

 	
 Additional details of the President's energy plans were listed in a <a target="_blank" href="http://www.whitehouse.gov/stateoftheunion/2007/initiatives/energy.html">pre-speech briefing</a> released by the White House Office of Communications. The President's proposal calls for 35 billion gallons of renewable and alternative fuels in 2017, and increasing the scope of the standard from an RFS to an alternative fuel standard, including corn-based ethanol, cellulosic ethanol, biodiesel, methanol, butanol, hydrogen and alternative fuels.
 
 Bush began discussing energy about 15 minutes into his speech. "It's in our vital interest to diversify America's energy supply-the way forward is through technology," Bush said. "We must continue changing the way America generates electric power, by even greater use of clean coal technology, solar and wind energy, and clean, safe nuclear power. We need to press on with battery research for plug-in and hybrid vehicles, and the use of clean diesel vehicles and biodiesel fuel. We must continue investing in new methods of producing ethanol, using everything from wood chips to grasses to agricultural wastes."
 
 The increased standard will also contain multiple "safety valves," such as giving the EPA administrator and the Secretaries of Agriculture and Energy the authority to waive or modify the standard if deemed necessary. The standard will also include an automatic "safety valve" to protect against unforeseen increases in the prices of alternative fuels or their feedstocks.
 
 Both corn and soybeans, the predominant feedstocks for the ethanol and biodiesel industries, have recently increased in prices. Cellulosic ethanol will likely have to play a significant role to meet Bush's proposed AFS. "Between now and 2017, you'll have cellulosic ethanol commercialized," said RFA President Bob Dinneen.
 
 The President expects most of the expanded fuel standard to be met with domestically produced alternative fuels, according to the pre-speech release. However, importing alternative fuels will also be part of the plan.
 
 Under the plan, Congress would not legislate a particular numeric fuel economy standard. The Secretary of Transportation would be given the authority to set the fuel standard based on cost/benefit analysis.
 	
 The plan would also allow auto companies to buy and sell CAFÉ credits. By 2017, the renewable fuel and fuel efficiency components of the plan would cut annual emissions from cars and light trucks by as much as 10 percent, or about 175 million metric tons.

 	
 Funding for the plan was also discussed in the pre-speech briefing. The President's 2008 budget contains funding for advanced energy technologies, including nearly $2.7 billion for the Advanced Energy Initiative, which Bush announced in his 2006 State of the Union Address. The initiative focuses on increasing research and development on energy technology.
 	
 The budget also provides $179 million for the Biofuels Initiative, which is aimed at accelerating cost reduction and commercial development of cellulosic ethanol.
 	
 Bush's Farm Bill proposal will include more than $1.6 billion of additional new funding over 10 years for energy innovation including bioenergy research, energy efficiency grants and $2 billion in loans for cellulosic ethanol plants.
 	
 It's unclear how a 35 billion gallons AFS would be implemented. The EPA has yet to release its final implementation plan for the current RFS. The EPA is expected to unveil its final ruling within the next few months. The RFA hasn't endorsed an increase in the RFS until after the EPA's ruling is issued. "Our industry applauds President Bush for his recognition of ethanol's importance and looks forward to working with him on an agenda that takes this industry to a bold new horizon," Dinneen said.
 
 Dave Nilles is Online Editor for Biodiesel Magazine. Reach him at <a href=mailto:"dnilles@bbibiofuels.com">dnilles@bbibiofuels.com</a> or (701) 373-0636.
 
 Posted: 3:15 p.m. CST Tuesday, January 23, 2007

President George W. Bush put ethanol and biodiesel on the center stage again at his 2007 State of the Union Address. Now the ethanol and biodiesel industries are looking for the correct path leading to an aggressive goal.

President calls for less oil dependence

A three-year study conducted by the <a target="_blank" href="http://
 www.energyinstitution.org">Energy Management Institute</a> (EMI) concluded that alternative fuels are cost competitive with their hydrocarbon-based counterparts. EMI released some of the results of the study earlier this week.

 
 The study was conducted by analyzing three years of pricing data collected from more than 80 urban areas across all 50 states. "We looked at the relationship between the cost of each fuel and the amount of energy one could buy on a BTU-equivalent basis, and compared those values to their gasoline and diesel counterparts in each market," said Scott Susich, editor of EMI's Alternative Fuels Index. "Next we had to look at the trends of those relationships to determine whether the results were atypical or part of a sustained pattern. In each case the data showed a continuing trend toward competitiveness."
 	
 The fuels ranged from being 17.4 percent more cost-competitive for ethanol to 41.4 percent for natural gas. Biodiesel was listed as 29.2 percent more cost competitive, despite significant process technology advances over the course of the study. "I expected to see biodiesel-as a new, immature market and industry-change in big increments over a period of the past couple of years," Susich told BiodieselMagazine.com. "But ethanol … production technology is getting better. It was interesting to see something like ethanol, which is much more mature, is still increasing in competitiveness." 
 
 Susich attributed the increase to improved efficiencies in process technology.
 
 The volatility of the crude oil market of the past three years may have played an impact in alternatives' cost competitiveness. Susich agrees.
 	
 "Either way you look at it, alternatives became cost-competitive due to market influences," Susich said. "Some say alternatives look better because of Hurricane Katrina and Iraq. I'd say, great. That stuff isn't going away. It's indicative of our dependence on foreign oil."
 
 Dave Nilles is Online Editor for Biodiesel Magazine. Reach him at <a href=mailto:"dnilles@bbibiofuels.com">dnilles@bbibiofuels.com</a> or (701) 373-0636.

 
 Posted: 12:01 p.m. CST Wednesday, January 24, 2007

EMI study finds alternatives are cost competitive

Beginning Jan. 1, 2009, Missouri diesel fuel may be required to contain at least 5 percent biodiesel by volume, according to state Sen. Bill Stouffer. He introduced Senate Bill 204, which would require biodiesel to be blended in the state's diesel supply.
 	
 The bill amends the Missouri Renewable Fuel Standard Act to include biodiesel. The act, which requires most Missouri gasoline to contain at least 10 percent ethanol by Jan. 1, 2008, was signed into law in July 2006 by Gov. Matt Blunt.
 	
 Stouffer's bill requires that biodiesel used to meet the requirement would be produced and distributed by accredited producers and certified marketers under BQ-9000, which is the biodiesel industry's voluntary fuel quality assurance program. "We used the BQ-9000 standard with cold fuel filtration so we have a premium fuel on the market," Stouffer said. "The easiest way to kill this industry is to allow poor fuel in the retailer's market."
 	
 Unlike Minnesota's B2 requirement, which became effective in fall 2005, Stouffer's bill doesn't tie biodiesel use to an in-state production quota. The Minnesota requirement called for at least 8 MMgy of in-state production before it took effect. "By January 2009, we'll have four times as much production in Missouri as needed to satisfy the 5 percent," Stouffer said. 
 	
 Missouri consumed approximately 34 million barrels of distillate fuel in 2004, according to the Energy Information Administration. The state has three biodiesel plants with capacity to produce approximately 36 MMgy. There are at least four biodiesel plants under construction with capacity for 98 MMgy of biodiesel. Cargill is also developing a 30 MMgy project in Kansas City, Mo.
 	
 Stouffer said biodiesel would be injected at the rack level, allowing blenders to splash higher blends of biodiesel if required. "Retailers don't want to put in the extra infrastructure such as heated tanks," he said. "We're trying not to burden them." 	
 
 Stouffer said he is pushing for B5 so that if distributors and retailers need to put in infrastructure they are able to distribute the cost over more gallons of fuel.
 	
 A 2009 implementation was selected because of issues surrounding ultra low sulfur diesel (ULSD), according to Stouffer. He said there have been problems with ULSD holding diesel fuel additives. Stouffer said he wanted to give blenders time to iron out the problems so biodiesel isn't tagged with the blame.

 
 The bill's text says if the acquisition of the biodiesel-blended fuel is more expensive for a distributor than conventional diesel fuel, the distributor is not required to acquire the biodiesel-blended fuel. "Neither this nor the sale of conventional diesel fuel at retail will be considered a violation of the act," the bill said.
 	
 SB 204 has had one hearing in the Senator Agriculture, Conservation, Parks & Natural Resources Committee. Stouffer said the earliest it would leave committee is next week.
 	
 Stouffer said he introduced the bill as an answer to importing crude oil. The state has no active oil wells. "This is our above-ground oil well, if you will," Stouffer said.
 
 Dave Nilles is Online Editor for Biodiesel Magazine. Reach him at <a href=mailto:"dnilles@bbibiofuels.com">dnilles@bbibiofuels.com</a> or (701) 373-0636.
 
 Posted: 10:45 a.m. CST Thursday, January 25, 2007

Missouri considers a biodiesel requirement

NextGen Fuels Inc. is getting ready to ship out its first 10 MMgy biodiesel processing unit. The manufacturing company said it has completed its first processor, which is expected to be delivered to an undisclosed client later this quarter.
 	
 NextGen CEO Jeff DeWeese said the unit is on display at Van Wert, Ohio-based Warnecke Design Service Inc.'s manufacturing facility, where it has been constructed for approximately 18 weeks.
 	
 NextGen Fuels is a division of GS AgriFuels following an acquisition that was completed in October 2006, according to GS AgriFuels President Tom Scozzafava. He said NextGen fit will with GS AgriFuels' business model, which calls for developing small-scale biodiesel plants at or near corn-to-ethanol facilities. The plants would use corn oil as feedstock.
 	
 DeWeese said NextGen has six more contracts for biodiesel plants, representing 50 MMgy of production capacity. One of those projects will be GS AgriFuels' planned facility in Fulton, N.Y. GS Fulton Biodiesel will be a 10 MMgy unit process soy oil at the site of a former Miller Brewing Company facility. Northeast Biofuels is developing a 100 MMgy ethanol plant at the site.
 	
 GS AgriFuels is also planning a 30 MMgy biodiesel plant in Memphis, Tenn. Scozzafava said the project is in the design and engineering phase while additional funding is being raised. The site will use three, 10 MMgy NextGen units connected in modular fashion. 
 	

 GS AgriFuels also recently announced that Sustainable Systems Inc. received a $700,000 grant from the Montana Department of Labor's Workforce Innovation in Regional Economic Development Program. GS AgriFuels has a 14.3 percent stake in Sustainable Systems, which is doubling capacity at its 300-tons-per-day oilseed crushing and refining facility in Culbertson, Mont. The funding is expected to expand the workforce at the crush facility and a planned biodiesel plant. Scozzafava said Sustainable Systems is under contract for a 10 MMgy NextGen unit, which could be delivered later this year.
 	
 Sustainable Systems founder Paul Miller has previously told Biodiesel Magazine that he was developing a biodiesel project in Montana. The company also plans to develop two additional oilseed extraction and biodiesel facilities within the United States, according to a GS AgriFuels release.
 	
 Dave Nilles is Online Editor for Biodiesel Magazine. Reach him at <a href=mailto:"dnilles@bbibiofuels.com">dnilles@bbibiofuels.com</a> or (701) 373-0636.
 
 Posted: 11:45 a.m. CST Tuesday, January 30, 2007

NextGen processing unit on display

The proposed budget Wisconsin Governor Jim Doyle will announce today at his State of the State address includes funding and programs aimed at developing the ethanol and biodiesel industries in his state. Details of the budget were released Jan. 28.
 

 Doyle announced $40 million in funding toward renewable energy, including an earmarked $5 million grant designated for developing the nation's first cellulosic ethanol plant. His proposal would also create the Governor's Office of Energy Independence, which would coordinate the state's efforts to grow Wisconsin's bio and renewable economies.
 
 The proposed budget picks up on Doyle's "Declaration of Energy Independence," which he signed on Dec. 7, 2006. The declaration was aimed at capturing 10 percent of the nation's renewable energy market by 2030. The plan includes a public/private initiative that would invest $450 million in renewable energy projects.
 
 Today's announcement is expected to set a goal of generating 25 percent of the state's power and transportation fuels from renewable sources by 2025, according to a press release from the governor's office. The Office of Energy Independence would be headed by an executive director who will report directly to the governor and cabinet agencies. The office will include staff from the Departments of Administration Division of Energy, Agriculture, Trade and Consumer Protection, Natural Resources and the Public Service Commission.
 
 The governor's budget also includes the Wisconsin Energy Independence Grant and Loan Program. It includes $30 million in grants and loans for companies and researchers that are developing new technologies to increase renewable energy. The goal is the speed the commercialization of technology.
 
 Doyle is also announcing the Governor's Task Force on Global Warming to develop a state plan of action to solve global warming issues. "The scope and consequences of global warming are so massive that the responsibility for action rests not only with our leaders in Washington, but with all of us," Doyle said. "With new technology, and a commitment to renewable fuels, Wisconsin can lead the way-reducing global warming and helping this nation kick its addition to foreign oil."
 
 Doyle's address will include an initiative to create 400 new renewable fuels pumps in Wisconsin. There are approximately 65 stations selling E85 and 14 selling biodiesel blends in the state, according to the governor's office.
 
 Wisconsin has five operational ethanol plants. Utica Energy and Western Wisconsin Energy LLC and United Wisconsin Grain Producers operate 40 MMgy plants. Badger State Ethanol LLC and Ace Ethanol LLC have operated respectively operated 50 MMgy and 30 MMgy plants since 2002.
 
 Four additional plants are under construction. Didion Ethanol and Castle Rock Renewable Fuels are building 50 MMgy plants. Renew Energy is developing the state's largest plant-130 MMgy-in Jefferson. United Ethanol LLC's 42 MMgy plant in Milton, Wis., is slated to begin production soon.
 
 Wisconsin has no large-scale commercial biodiesel plants, but Sanimax Energy Biodiesel is building a 20 MMgy facility in De Forest. 

 
 Dave Nilles is Online Editor for Biodiesel Magazine. Reach him at <a href=mailto:"dnilles@bbibiofuels.com">dnilles@bbibiofuels.com</a> or (701) 373-0636.
 
 Posted: 1:42 p.m. CST Tuesday, January 30, 2007

January 2007

Business Briefs

Rainey joins Nova Biosource board

NearBio helps consumers track down biodiesel pumps

Tyson Foods forms Tyson Renewable Energy

Anamax changes name

Two companies work to develop Ensel technology

AOCS to release biodiesel CD-ROM

CHS, U.S. BioEnergy form Provista to market biodiesel, ethanol

IAIC launches new risk analysis tool

Dyametrics Medical changes name

Honeywell's UOP starts Renewable Energy and Chemicals unit

SeQuential Biofuels appoints CEO

United Soybean Board elects new officers

Natural Fuel Ltd. of Australia appoints new chairman

Columns

Legal Perspective

Talking Point

Editor's Note

Featured

Getting Down and Greasy

Sustainably Securing the Home Front

The Long Haul

Total Package Fleet

B20: A Ram-Tough Blend

January 2007.css-7jxktu{position:absolute;bottom:0px;left:0px;right:0px;height:3px;border-radius:3px;background-color:var(--chakra-colors-brandBlack);}

Business Briefs

Rainey joins Nova Biosource board

NearBio helps consumers track down biodiesel pumps

Tyson Foods forms Tyson Renewable Energy

Anamax changes name

Two companies work to develop Ensel technology

AOCS to release biodiesel CD-ROM

CHS, U.S. BioEnergy form Provista to market biodiesel, ethanol

IAIC launches new risk analysis tool

Dyametrics Medical changes name

Honeywell's UOP starts Renewable Energy and Chemicals unit

SeQuential Biofuels appoints CEO

United Soybean Board elects new officers

Natural Fuel Ltd. of Australia appoints new chairman

Columns

Legal Perspective

Talking Point

Editor's Note

Featured

Getting Down and Greasy

Sustainably Securing the Home Front

The Long Haul

Total Package Fleet

B20: A Ram-Tough Blend

January 2007