As biofuel production facilities continue to expand, the need for developers to understand the applicable environmental and land use permitting requirements is imperative. It is equally important that state agencies begin to familiarize themselves with the technical and environmental issues associated with biofuels, which remains a relatively new industry in most states. Permitting biofuel production facilities, such as biodiesel and ethanol, involves air emission, water appropriation, water discharge, land use and other issues. Often, these different issues are addressed by different divisions within state and local agencies, and often within different state agencies altogether. 
 
 Generally, construction of biofuels facilities can't begin until all material permits are obtained. For instance, an air permit is a necessary precursor to construction, but not surprisingly, each state has a different process for obtaining air (and other applicable) permits. 
 	

 Given the increasing support for renewable fuels, some agencies are beginning to recognize the need to better understand the biofuels industry and its environmental impact, and are accordingly beginning to develop permitting programs specifically tailored to the industry. Some states, particularly in the Midwest because of its strong biofuels growth, are in the process of creating a uniform review process for biofuels permit applications. 
 	
 One such agency is the Minnesota Pollution Control Agency (MPCA)-the agency charged with overall environmental permitting in the state. The MPCA has created a team of biofuels permit engineers, each with a focus on a different area of the permitting process. This review team is committed solely to processing all of the necessary environmental permits for biofuels projects. 
 	
 The MPCA's biofuels team was created in response to the significant increase in the number of ethanol projects proposed in Minnesota, to ensure that personnel with experience and expertise in ethanol and other biofuels would be reviewing each project. The team would also provide the public with better communication regarding the permitting process. The program seeks to facilitate communication and coordination among those state agencies that have at least some permit authority over biofuels plants. For example, in Minnesota, the MPCA has authority to review applications for air permits and storm water discharge, while the Minnesota Department of Natural Resources is charged with reviewing applications for groundwater appropriation. Local agencies are often charged with regulating land use and zoning review for projects. The MPCA's biofuels program seeks to coordinate and facilitate each of these areas to ensure that the cumulative environmental impact of a proposed plant is efficiently and effectively evaluated.
 	
 Other states, including Illinois, Missouri, and Michigan, have also recognized the need to better facilitate the permitting process for biofuels projects. Each state has created guidance documents that developers have found useful when considering whether or not to build a renewable fuel facility. The Illinois Environmental Protection Agency's "Building an Ethanol Plant in Illinois" document provides comprehensive information on the state's permitting requirements for biofuels facilities and also provides a list of the financial incentives available to developers. 
 	
 The Missouri Department of Natural Resources' "Developing Biofuel Production in Missouri" document addresses both ethanol and biodiesel, and provides business development considerations, information on environmental permitting and additional resources important to developers considering biofuels facilities. 
 
 Michigan's Department of Labor and Economic Growth formed its Ethanol Coalition of Michigan, a coalition uniting farm commodity organizations, fuel suppliers, universities, businesses, government agencies and individuals working to promote the production and use of ethanol in the state. It also created the Michigan Biomass Energy Program to encourage increased production and use of Michigan's biomass resources.
 
 The biofuels industry continues to experience growing pains, and the permitting process is certainly no exception. Fortunately, state and local permitting agencies, after hearing from biofuels developers and other stakeholders and applying their knowledge from other industries, are beginning to hone their expertise and develop programs designed specifically for biodiesel and ethanol. This is an important step in the right direction for biofuels.
 
 Todd Guerrero and Katherine Roek 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.

 
 This article is only a general summary for informational purposes and does not constitute legal advice. Consult a qualified and experienced legal advisor for your specific situation or particular questions.

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Permitting Agencies Gain Biofuels Expertise

Legal Perspective

<a target="_blank" href="http://www.glbiofuels.com/">Greenlight Biofuels</a> has broken ground on a new biodiesel plant in Princess Anne, Md., a small town just south of Salisbury. The move follows Greenlight's purchase of a controlling interest in Baltimore Biodiesel LLC, the project's original developer.
 
 In 1917, Arthur Perdue, a railroad worker in Salisbury, started a small business which became Perdue Farms, one of the nation's leading poultry producers. Ninety years later, in what might be described as a proposed symbiotic relationship, Greenlight Biofuels plans to use rendered animal fat as a feedstock to make biodiesel.
 
 "This project is the first step in a broader strategy for Greenlight Biofuels," said Greenlight President Allen Cunningham. Citing the country's need to expand interest in energy independence and environmental progress, he said the Princess Anne location will be a multi-feedstock plant to take advantage of not only the abundant source of animal material, but possible farm byproducts. 
 
 The company chose to build the plant on the Delmarva Peninsula, which is composed mostly of Delaware and Maryland's eastern shore. The area was once home to some of the most productive vegetable farms in 19th century America, and much of the land is still allocated for farming. 
 
 "We're building a 4 MMgy plant right now, but we have the ability to expand," said Greenlight Biofuels Vice President Erik Lytikainen. The plant will be capable of expanding to a total output of 8 MMgy, but no immediate plans to expand are scheduled.
 
 Like many rural communities, attracting good-paying jobs has been a challenge, but Greenlight Biofuels-like Perdue almost a century ago-anticipates an opportunity to revitalize the peninsula's struggling economy. By creating new employment prospects, the company hopes the high-unemployment area will begin to recover. 
 

 Greenlight also has a strategic partnership with Salisbury-based Cato Oil, which will do at-the-rack injection blending of the biodiesel in their terminal. In addition to the ample co-locational strengths, Lytikainen cited the cooperation of local partners and community leaders as advantages to the project. "This is an important day for Greenlight and Princess Anne," Lytikainen said.
 
 The Princess Anne facility is expected to be completed by August 2007. 
 
 Craig Johnson is a Biodiesel Magazine staff writer. Reach him at <a href=mailto:"cjohnson@bbibiofuels.com">cjohnson@bbibiofuels.com</a> or (701) 746-8385.
 
 Posted: 10:35 a.m. CDT Monday, March 19, 2007

Greenlight Biofuels breaks ground on Maryland plant

BBI International (BBI), a leading global biofuels and biomass service company, has entered into a partnership with The Spitfire Agency to implement a comprehensive conference greening program. BBI will focus on the 4 R's of sustainability (Rethink, Reduce, Reuse and Recycle) to substantially reduce waste, replace non earth-friendly items with environmentally sound ones, and strive for
 carbon-neutral status.
 
 BBI is the largest conference and event producer in their industry, including the National Biodiesel Conference & Expo and the International Fuel Ethanol Workshop & Expo. The National Biodiesel Conference & Expo was the first conference that The Spitfire Agency, the National Biodiesel Board, and BBI collaborated to successfully green.

 
 Despite the positive economic impacts of the conference and event planning industry, there are also negative effects on the environment. In addition to consuming a tremendous amount of energy and water, conferences and events also produce copious amounts of waste and emissions. "Our mission is to improve the overall environmental and economic impacts of our events while leaving the softest footprint possible. The example that we set conveys the importance of environmental stewardship to thousands of our attendees," states Angela Damman, Vice President, BBI Conference & Event Planning.
 
 "BBI's conferences have become an important model for the conference and event planning industry as they walk the talk in their everyday operations and during the on-site production of their conferences," says Sarah Haynes, CEO of The Spitfire Agency. "BBI is the first organization of their kind to create a full-scale program for near zero-waste conferences."
 
 BBI International is a leader in the biofuels and biomass industry, providing client-based services in three divisions: Project Development, Conference & Event Planning, and Media. BBI International operates over 11 conferences annually worldwide, offers consulting services for ethanol, biodiesel, and biomass projects, and publishes Ethanol Producer Magazine
 and Biodiesel Magazine. For more information, visit <a target="_blank" href="http://www.bbibiofuels.com">http://www.bbibiofuels.com</a>.
 
 The Spitfire Agency is a full service production, promotion and marketing agency dedicated to non profits, responsible businesses, and other cause related ventures. Spitfire's mission is to educate the public, alter consumer behavior, and 'redefine cool'. Other zero-waste Spitfire events include Julia Butterfly's We The Planet concerts, Woody Harrelson's SOL Tour, and the Indigo Girl's Honor the Earth Tours. For more information please visit <a target="_blank" href="http://www.spitfireagency.com">http://www.spitfireagency.com</a>.
 
 Upcoming Conferences:

 
 Ethanol 2007 Australia, April 2007
 Biomass Workshop '07, May 2007
 23rd Annual International Fuel Ethanol Workshop & Expo, June 2007
 Going Green 100/Sustainable Living Series, August 2007
 International Distillers Grains Conference, September 2007
 Biofuels Workshop & Trade Show - Western Region, October 2007
 Biofuels Workshop & Trade Show - Eastern Region, November 2007
 4th Annual Canadian Renewable Fuels Summit, December 2007
 5th Annual National Biodiesel Conference & Expo, February 2008
 13th Annual National Ethanol Conference, February 2008
 24th Annual International Fuel Ethanol Workshop & Expo, June 2008

BBI International announces comprehensive conference greening program

When Independence Renewable Energy Corp. (IREC) produced the first biodiesel at its Claiborne, Ala., plant March 5, it was just another step in the company's plans to bring the renewable fuel to the southeastern United States.

 
 The Claiborne plant will produce 40 MMgy when running at capacity later this year, nearly doubling biodiesel production in the Southeast. However, that's just one of several important features of the new facility.
 
 The March 5 start-up of the plant began biodiesel production from one of two 20 MMgy production lines. The second line is expected to be operational in May. IREC Executive Vice President and General Manager Greg Martin said having two separate production lines has some clear advantages, including the ability to produce biodiesel from two different feedstocks at the same time. It also means the company can perform scheduled maintenance with no interruption of supply.
 
 Now that production has begun, IREC will look to tackle the challenges of marketing its product in the Southeast. "The southeastern states are for the most part beginning their development of the biodiesel market," Martin said. "There are relatively few distributors who have made the commitment to the product at this point, but that has been largely because biodiesel has been unavailable in sufficient quantities to establish reliable supply."
 
 Martin said one reason for the lack of supply is the current market conditions appear to be cost prohibitive to building a new facility. A new 40 MMgy biodiesel plant will only put more upward pressure on local vegetable oil prices, but Martin said being able to concurrently produce fuel from two different feedstocks will help mitigate rising prices.
 
 "There is no question that the fuel sector demand for soy oil has led to increased prices, although the current high price levels appear to be the result of speculation and not increased demand," Martin said. "Whether the soy oil supply will eventually be outstripped by biodiesel demand remains to be seen, but it is important to remember that other oils-like corn oil, cottonseed oil and sunflower oil-can all be used as feedstocks to make quality biodiesel. Part of our strategy in building a two-line plant was to have the flexibility to work with different feedstocks."
 
 With its Claiborne biodiesel plant, IREC has staked its claim to what Martin hopes will be a bright future for the renewable fuel. "As with any new product there must be a marketing effort that will educate users about the product and its benefits, and that will develop as more distributors take advantage of increased availability," he said. "Even with the best marketing efforts, the fledgling biodiesel industry will struggle to survive the volatility of the fuel and vegetable oil price cycles without mandates such as the national Renewable Fuels Standard program and domestic production incentives such as the blender's tax credit.
 
 "Considering the objective of decreasing dependence on foreign energy, however, such programs must be designed exclusively for the development of the U.S. infrastructure."
 
 IREC's Claiborne biodiesel plant was designed and built by Parsons and Whittemore, a privately held company based in Rye Brook, N.Y., which owns IREC and the adjacent Alabama River and Alabama Pine pulp mills at the Claiborne site.
 

 Michael Shirek is a Biodiesel Magazine staff writer. Reach him at <a href=mailto:"mshirek@bbibiofuels.com">mshirek@bbibiofuels.com</a> or (701) 746-8385.
 
 Posted: 10:53 a.m. CDT Monday, March 19, 2007

IREC brings flexibility to biodiesel production

<a target="_blank" href="http://www.cummins.com">Cummins Inc.</a> announced this week that it approves the use of a 20 percent biodiesel blend in many of its engines. The company previously said it approved the use of B5 blends in many of its engine lines.
 
 The B20 approval applies to Cummins' 2002 and later emissions-compliant ISX, ISM, ISC and ISB engines, which are used to power a wide range of vehicles including medium and heavy duty trucks, school buses, and fire and emergency vehicles.
 
 Cummins listed three primary reasons for the upgrade. First, the American Society of Testing Materials (ASTM) biodiesel specification now includes a stability specification for B100. Secondly, there is an increase in availability of fuel from BQ-9000 certified marketers and accredited producers. Thirdly, Cummins has completed testing and evaluations to ensure customers can reliably operate equipment using B20.

 
 BQ-9000 is the biodiesel industry's voluntary fuel quality assurance program. There are six certified marketers and 17 accredited producers, which comprises approximately 40 percent of the biodiesel industry's production capacity, according to the NBB.
 	
 "We have completed exhaustive analysis and test evaluations which enable Cummins to provide the necessary guidance and information to our customers for the proper and successful use of this fuel in our engine," said Edward Lyford-Pike, Cummins' chief engineer for Advanced Alternative Fuel Programs. "This will enable our customers to have a choice that includes renewable fuel."
 	
 ASTM is considering a stand-alone B20 blend specification. In fact, recent enhancements to the current B100 standard, ASTM D 6751, may open the door to a B20 specification, according to the National Biodiesel Board (NBB). A March 12 Biodiesel Summit, sponsored in part by DaimlerChrysler, discussed the steps needed to improve B20 acceptance. "Biodiesel represents a huge opportunity to address some of our nation's toughest energy, environmental and economic challenges," said Deborah Morrissett, DaimlerChrysler's vice president of Regulatory Affairs. "We know this is the right thing to do-so the goal now is to develop a national B20 standard that can be universally applied to all diesel vehicles, both on road and in production, to confidently support higher blends of biodiesel such as B20." 
 
 DaimlerChrysler was the first U.S. automaker to specifically approve B20 in a warranty position statement. The company approved the use of B20 in its 2007 model Dodge Ram pickups equipped with Cummins diesel engines. DaimlerChrysler has also used B5 factory fills with several of its vehicle lines. 	
 
 New Holland approved B20 in its engines, becoming the first original equipment manufacturer to announce full formal support for B20 in the engines it produces.
 
 Cummins is headquartered in Columbus, Ind., and has more than 5,000 dealer locations throughout the world.
 	
 "Cummins's announcement is a major milestone for diesel equipment-maker acceptance of biodiesel," said NBB Technical Director Steve Howell, who also leads the ASTM task force on biodiesel standards.
 
 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: 8:49 a.m. CDT Thursday, March 22, 2007

Cummins ups biodiesel blend approval

<a target="_blank" href="http://www.npnrg.com">North Prairie Productions LLC</a> (NPP) is holding a groundbreaking ceremony today for what will become Wisconsin's largest biodiesel plant. The company plans on building a 45 MMgy project on a 15-acre site near Evansville, which is 20 miles south of Madison.
 	
 Wisconsin Gov. Jim Doyle is expected to attend today's event, which celebrates the completion of a $25 million equity drive.
 	
 "We now have sufficient equity in place to allow us to finalize contracts and move forward with our plans to commence construction this spring," NPP Vice President Jeff Pieterick said. "Everything appears to be progressing along the aggressive timeline we established at the start of this project, and we are pleased for the support of our Wisconsin investors that has made this all possible."
 	
 Pieterick told BiodieselMagazine.com that approximately 80 percent of the in-state investors are farmers. "It's definitely a project that is not only a Wisconsin project, but owned by producers themselves," he said.
 	
 NPP gathered more than $25 million in equity investment from over 800 in-state investors. The company expects to close on the equity on or around April 6.
 	
 Pieterick said construction should start within one month. The plant is expected to start up by early 2008. The Boldt Company of Appleton, Wis., will be the project's general contractor. De Smet Ballestra is providing the process technology.
 	

 The project is being built on a site on the Union Pacific Railroad purchased from Landmark Cooperative. Pieterick said the plant site was critical due to its feedstock demand. 
 
 According to an August 2006 study conducted by the <a target="_blank" href="http://www.wisoybean.org">Wisconsin Soybean Association</a> (WSA), there are no large soy crushers or registered Chicago Board of Trade delivery terminals in south-central Wisconsin. However, Wisconsin soybean production increased over 260 percent from 1993 to 2003. According to the study, Wisconsin grows enough soybeans to support a crush facility capable of processing 26.4 million bushels per year, which equates into approximately 45 MMgy of soy oil. "By incorporating the WSA report into its site selection process, NPP hopes to locate within close proximity to the most likely area in the state for any future soybean processing facility to be built," NPP said.
 	
 Pieterick said there is interest in building a soy crush facility near Evansille. He said NPP might even pursue such a project in the future. For now the company will rail product in from out of state. Cargill's Cedar Rapids, Iowa, facility was the closest soy crush facility at the time of the WSA study's release.
 	
 The state's largest current biodiesel producer is Sanimax Energy Biodiesel, a 20 MMgy multi-feedstock plant 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: 9:58 a.m. CDT Monday, March 26, 2007

An artist's rendering of North Prairie Production's proposed biodiesel plant near Evansville, Wis.

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Wisconsin's largest biodiesel plant breaks ground

Arkansas is quickly expanding its biodiesel production capacity. Another large-scale project is being built, this time on the state's eastern border with Mississippi.
 	
 Planter Service & Sales Inc. is building a 40 MMgy project just outside Helena, Ark., which is located along the Mississippi River approximately 70 miles southwest of Memphis, Tenn.
 	
 The project, named Delta American Fuel, is being developed in a pre-existing fertilizer storage facility that Planter Service & Sales has operated for approximately 15 years, according to spokesman Bernie Crowley. Renovation work has been ongoing for four months. "A lot of our work right now is destruction rather than construction," he said.
 	
 However, the facility is beginning to take shape in preparation for the delivery of a modular biodiesel plant. Safer Energy is providing the process technology, which Crowley said could arrive on site as soon as late May. He said tanks are being cleaned for feedstock and biodiesel storage. Crowley also said they are installing piping.
 	
 The plant, which will use mostly soy and cottonseed oil as feedstock, could begin producing test batches by July, Crowley said.
 	
 The Helena project has several logistical advantages, including access to the Mississippi River. Crowley said Planter Service & Sales already utilizes a deep-channel pier access with approximately 60 tons of dry material storage and 13 million gallons of liquid storage. Crowley said the company will devote up to 9 million gallons of liquid storage to biodiesel.
 	

 The storage and river access will give Delta American Fuel the opportunity to export fuel. Crowley said biodiesel could be loaded on river barges which would ship fuel to the Gulf of Mexico and trans-Atlantic cargo vessels.
 	
 The plant site also provides ideal logistics for nationwide shipment of fuel. The site features five miles of railroad siding capable of handling 60-car unit trains on the Arkansas Midland railroad, which connects with a Union Pacific main line.
 	
 One drawback to its location may be the lack of local soy processing facilities. However, a soy crush plant may be in Delta American Fuel's long-term plans, Crowley said.
 	
 Arkansas has several other biodiesel projects. FutureFuel Chemical Company operates the former Eastman Chemical Company 24 MMgy plant in Batesville. Patriot BioFuels is expanding its 3 MMgy plant to 13 MMgy in Stuttgart. 
 	
 Arkansas Soy Energy Group LLC is building a 3 MMgy biodiesel project collocated with a soy crush unit in Dewitt. A project spokesman said the company's crush unit is expected to begin producing oil in June. The biodiesel plant is slated to start-up in the third quarter of 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: 1:30 p.m. CDT Tuesday, March 27, 2007

Construction moving forward on large Arkansas plant

The biodiesel industry's new target is 5x'15. 
 
 The National Biodiesel Board (NBB) has unveiled the association's new vision for achieving a 5 percent share of the U.S. on-road diesel market by 2015. That means we're looking to snag a 2 billion-gallon chunk of a 40 billion-gallon market in less than eight years. The NBB's latest plan doubles the growth strategy the association set for the U.S. biodiesel industry in 2005 when it unveiled a vision for growing a 1 billion-gallon industry within the same timeframe. 
 
 It's not often that an industry is compelled to flat out double its production and market penetration goals, but then again, this is no ordinary industry. The U.S. biodiesel industry knows how to grow fast-very fast. In fact, since this magazine was launched in 2004, the industry's production capacity (which should be differentiated from its market penetration) has increased approximately 10-fold. 
 In fact, the sheer speed of this industry's growth begs the question: Is 2 billion gallons by 2015 enough? It's hard to say wheather a plan that includes a 100 percent increase over previous targets is weak or uninspired. But ardent biodiesel advocates might ask why a 5 percent market share is acceptable when the ethanol industry's share of the U.S. gasoline market is on track to hit 10 percent in just a few short years. 
 
 The easy and obvious answer is that the United States is a gasoline-powered nation. The country uses over 150 billion gallons of gasoline per year. That creates a relatively massive potential market for E10-roughly 15 billion gallons, in fact. An astonishing 10.3 billion gallons of annual ethanol production capacity is now represented by U.S. ethanol plants in production, under construction or expansion. At this rate, it is my opinion that the ethanol industry should hit the 15 billion-gallon mark-the supposed limit for U.S. corn ethanol-between 2009 and 2011. As many of our readers know, the ethanol industry is then expected to shift over to cellulosic ethanol and set its sights on the 35 billion-gallon goal that President George W. Bush recently proposed, or perhaps the 60 billion-gallon proposal Sens. Barack Obama and Dick Lugar served up last year, or even the 100 billion-gallon vision the National Resources Defense Council has envisioned.
 
 In the least, the ethanol industry is going to achieve 10 percent market penetration in three to five years, and some say 25 percent to 40 percent penetration in the next two decades. There's no shortage of very smart and powerful Americans who back that assertion. 
 
 So is the idea of biodiesel achieving a 10 percent market share by 2010 or 2015 such a crazy idea? Would it be foolish to suggest that a 20 percent market share-an 8 billion-gallon U.S. biodiesel market-could be achieved by 2020? 
 
 Some might say it is foolish because the industry is too young, and faces too many challenges, to pursue that type of growth. In my opinion, the industry is not as much hindered by its ability to penetrate the diesel market-and win over consumers and original equipment manufacturers-as it is limited by production costs, feedstock limitations and fuel quality issues that leave even the most die-hard biodiesel supporters quietly apprehensive about the year-round use of B5 to B20 blends on a national scale. 
 
 While fuel quality challenges must be overcome immediately, feedstock issues might prove to be an even greater hindrance to the industry in the years ahead. Improving yields, developing alternative feedstocks and bringing down production costs must occur simultaneously. Whether the industry chooses to strive for 5 percent market penetration or 25 percent market penetration, the same hurdles must be cleared. It's simply a matter of how high we want to jump. 

 
 Tom Bryan
 Editorial Director
 tbryan@bbibiofuels.com

Will 2 billion gallons be a floor or a ceiling?

Editor's Note

For decades, Volvo Group has been a leading maker of 9- to 18-liter diesel engines for the world's heavy-duty vehicle markets. Diesel engines exhibit exceptional pulling power, fuel efficiency and longevity when judged against comparable gasoline outfits, which is why it's the internal combustion engine of choice for big jobs. Volvo Group, a $31 billion company built on its technological diesel prowess, is well on its way to a diversified portfolio of dual-powered drivetrains-diesel-electric hybrids-for the same markets in which Volvo already has an established presence. In 2009, the company expects to launch production of its first commercial lineup of these efficient, high-tech workhorses, the applications for which are many. With growing numbers of fleets guided by public or corporate policies to reduce petroleum consumption and increase the use of alternatively fueled vehicles in their fleets, hybrids and biodiesel used in tandem can reduce the impact of environmental footprints left by humanity's global stampede. 

 "We need to care for the environment, and the trucking industry needs to do what it can," says Marten Wikforss, head of media relations with Volvo Group. "We are part of the problem, yes, but we are also part of the solution." 
 
 An Air Force Entrance
 Volvo Group, and its subsidiary Mack Truck, has been working with the U.S. Air Force (USAF) on diesel-electric hybrid technologies since 2003. Mike Mead, head of the Advanced Power Technology Office (APTO) at Robins Air Force base in Georgia, tells Biodiesel Magazine that the USAF initiated a bid process for vehicle technologies capable of utilizing electrical power with a diesel engine that, when coupled, would use significantly less fuel and yet still perform the rigorous activities required by specified military duties. "The Air Force looked at possible applications of this technology," Mead says. "The heavy-duty vehicles that would be most useful in demonstrating the benefits were selected to be developed by Mack." The APTO acted as the practical, technical liaison between Volvo-Mack and the Air Force at large. The resulting prototype was dubbed the "R-11," a 6,000-gallon refueling truck. 
 
 The R-11 is a mild hybrid, meaning the electric motor only assists in powering the wheels, whereas a full hybrid can be mobilized by either the electric or diesel motor. "The technology has outstanding potential to improve overall vehicle efficiencies while lowering emissions and enhancing performance," Mead says. The leap from passenger hybrid vehicle technology to heavy-duty applications has taken considerably more work. "Heavier vehicles require larger power storage devices for more torque at launch of the vehicle," he says. "Also, the operational needs of heavier vehicles are greater since they serve as platforms for other work, such as fueling aircraft, refuse collection and dump trucks, whereas additional power requirements are not a consideration for smaller passenger vehicles." In a full hybrid, the vehicle can run on electricity alone under certain operating conditions, such as the stop-and-go itinerary kept by transit buses or intra-city parcel and goods distribution. 
 
 Another prominent distinction between hybrids is whether the two onboard sources of power operate in series or parallel configurations. A serial hybrid moves only by the electric motor. Even if the conventional drivetrain is providing the bulk of power, that is still channeled through the electric motor before the vehicle is mobile. When the diesel engine isn't running during certain load or speed conditions, the electric motor takes a primary role. A generator affixed to the diesel-powered engine produces electricity that can be stored in the battery, which also contains electrical energy recuperated from regenerative braking. Friction from braking creates energy that is routed to the onboard batteries. Regenerative braking is also featured on most parallel hybrids. The simplified difference between serials and parallels is that the parallels have the ability to achieve direct mobilization of the vehicle with power from either the diesel or electric motor through complex electromechanical design. 
 
 The test work on the R-11 mild-hybrid refueler truck that began between the USAF and Mack back in 2003 helped Volvo-Mack hone its technology for future applications. "This technology will evolve into a full-hybrid vehicle, where the electric machine will be able to power the vehicle and auxiliary equipment without the diesel engine running," Mead says. 
 
 Post R-11, so to speak, the USAF continues to work with Volvo-Mack. Three Mack Granite dump trucks and two Low Entry refuse trucks are on order Mead says. "Further developments are concentrating on increasing fuel efficiency, reducing idling times, enabling full electric launch of the vehicle, reducing diesel engine parasitic losses, external drive of auxiliary loads electrically and the supply of off-board power while stationary," he tells Biodiesel Magazine. "Air Force engineers and program managers worked with an exchange of ideas on how the technology might be expanded for future vehicles to include electric auxiliary power. Mack then developed a drivetrain to meet all these requirements." 
 
 I-SAM, U-Save
 While the Volvo Group is working on multiple hybrid configurations for a variety of heavy-duty requirements, an integral component of the Volvo Group's technology is the Integrated Starter Alternator Motor (I-SAM). In a detailed Volvo Group press release on the breakthrough engineering, the company states: "The I-SAM consists of a permanent magnet unit including power converter, energy storage system and a powertrain management unit (PMU). The [permanent magnet] unit has a high diameter-to-length ratio and is placed between the clutch and an automatic mechanical transmission, the new generation of Volvo gearboxes. The PMU contains the key logics on gear-shifting strategies and power split between diesel engine and electric machine. The high power and torque output from the [permanent magnet] unit allows for downsizing of the diesel engine. The high power and torque capabilities are used in an electric retardation system and the generated energy is stored in the energy system for later reuse." 

 
 Ultimately, I-SAM can perform as a starter, an electric drive motor and a generator. Real-time speed and load information is relayed to the sophisticated onboard computer, which, through its electronic controls, tells I-SAM what to do and when to do it. Since the permanent magnet unit can meet the high power and torque requirements of heavy-duty operations, the onboard diesel engine can be smaller, another angle to the system's ability to conserve energy.
 
 Much of what Volvo has accomplished wouldn't be possible if not for battery technology advances, and Volvo has done its part on that front, as well. Volvo Technology Transfer, part of Volvo Group, is a principal shareholder in Effpower, a Swedish company formed in 1999 to commercialize breakthroughs in bipolar battery technology. "Effpower has advanced the well-known lead-acid chemistry to a new level," Volvo Group states. "The key to its high performance characteristics (long life, cost-efficient, high power and environmentally sound) lies in a bipolar battery design utilizing a patented lead-acid infiltrated ceramic plate and a patented sealing method."
 
 Biodiesel-Electric 
 Wikforss tells Biodiesel Magazine that this I-SAM-equipped lineup will bring more savings for some applications than others. "It will serve a viable purpose and different applications, but the biggest savings would be in city distribution and transit buses, where there's a lot of stopping and going," he says. Fuel savings there can reach 35 percent or more, but the natural flip side to using less fuel is producing less emissions. As this technology takes off in urban settings, where air quality suffers from mobile emissions sources the worst, the benefits mount. "Another aspect to pollution is noise pollution," Wikforss says. "There's less noise with a hybrid, and those living in urban settings will appreciate that." 
 
 Mead says the USAF's R-11, along with the subsequently ordered Mack hybrid prototypes soon expected, are all capable of running on B20-the Air Force standard. Wikforss, on the other hand, says that while biodiesel is a good fuel and serves a purpose, Volvo doesn't make a practice of pledging its allegiance to just one fuel, no matter its appeal, until one fuel becomes the worldwide-accepted standard. He doesn't object to using biodiesel in such applications, though. Considering Europe's diesel-fuel specification allows for up to 5 percent biodiesel without distinction, it's a moot position either way regarding low-level blends. He expresses concerns over different fuels and emissions regulations when crossing national boundaries. "We want to see international harmonization on that, and decisions must be taken up by the United Nations," Wikforss says. "Those trucks run across borders all the time." 
 
 Leif Johansson, president and CEO of AB Volvo, stated Volvo's position on renewable fuels and his company's hybrid systems in a corporate press release last year. "The hybrid power system is a long-term and highly interesting solution for efficient and environmentally adapted transport activities," Johansson said. "We are aware that oil prices for our customers will rise, and therefore all solutions that reduce fuel consumption are highly attractive. The diesel engine in our hybrid solution can also be operated using biofuels, and consequently transport activities can be conducted without carbon dioxide emissions. This paves the way for interesting developments toward long-term sustainable transport solutions." 
 
 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.

The R-11 refueling truck is a mild hybrid developed for the U.S. Air Force by Volvo and its subsidiary, Mack Truck.

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Urban distribution, mass transit or other "stop-and-go" cycles benefit the most from Volvo's I-SAM diesel-electric hybrid technology for heavy-duty applications

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The Mack Granite line will be one of the first heavy-duty Volvo brands to offer diesel-electric hybrids for commercial markets.

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The Volvo Group is preparing for its commercial production launch of diesel-electric hybrid technology for heavy-duty applications-a launch the U.S. Air Force helped fuel.

The Urbane Powertrain

Cincinnati Metro, the mass transit company for one of Ohio's major cities, said it used 1.8 million gallons of biodiesel in 2006, nearly half of the fuel usage of the system's 390 buses. Its biodiesel use saved the city nearly $450,000 in 2006 when compared with the market price of diesel fuel, the company said. Ohio is the sixth largest producer of soybeans in the United States, according to Metro, and most of the biodiesel that fueled Metro buses came from in-state sources.

Cincinnati Metro saves money with biodiesel

All diesel fuel available at Caltex Australia Ltd.'s terminal in Newcastle, New South Wales, now contains a B2 blend it calls "New Generation Diesel." "We will supply around 550 million liters (145 million gallons) of the New Generation Diesel that will include 11 million liters (3 million gallons) of neat biodiesel in the first year," said Mark Burrowes, Caltex's general manager of marketing.

Caltex offers B2 blend in Australia

According to sources at an environmental review briefing in London, 58-year-old Prince Charles and his wife Camilla are using rapeseed-based B100 in their Jaguars and Land Rover. The converted chauffer-driven Jaguars cost an estimated $67,000 each and are part of the prince's effort to promote renewable energy in conjunction with his recently launched "Costing the Earth-The Accounting for Sustainability" project. The vehicles were converted by Jaguar and Land Rover as part of a pilot program specifically for the prince's household.

Prince Charles begins biodiesel use

Sprague Energy, an energy wholesaler, has opened a biodiesel distribution facility at its terminal in South Portland, Maine, according to Marketing Manager Tim Keaveney. The terminal has the capacity to store 40,000 gallons of B100 to blend with diesel fuel and No. 2 heating oil. It's the company's fourth biodiesel terminal and the first outside of New York. Sprague Energy was the first terminal operator to put biodiesel rack injection systems in its facilities in the Northeast. It is a BQ-9000 certified marketer.

Sprague terminal adds biodiesel

Soybean production in 2006 totaled 3.19 billion bushels, the largest U.S. soybean crop on record, according to the USDA Crop 2006 Production Report. The final tally was a less than 1 percent decrease from the USDA's November 2006 forecast, but 4 percent above 2005 production. The average yield per acre was estimated at 42.7 bushels, 0.3 bushel below the November forecast and last year's record-high yield. Harvested acres rose 5 percent from 2005 to a record-high 74.6 million acres.

Soybean production breaks record in 2006

Montana state Sen. Sam Kitzenberg would like to see his state's first biofuel plant sooner rather than later. Kitzenberg has introduced SB 122, a measure calling for the creation of a seven-member biofuels education board, implementation of per-gallon tax incentives for biofuels made in Montana with local resources and the easing of state red tape in the permitting process. The bill passed the Montana Senate on Jan. 24 with a 27-22 vote and is now being considered by the House of Representatives.

Montana legislator supports biofuels education board

Market researcher Frost & Sullivan projects that the North American biodiesel market will earn $4.9 billion in revenues in 2012 if the federal tax incentive continues beyond 2008. The firm conducted primary interviews with market participants, as well as related companies and organizations, to reach its conclusions in the North American Biodiesel Market Report, in which it also states that the market earned revenues of $217 million in 2005. For information on ordering the report, visit <a target="_blank" href="http://www.energy.frost.com">www.energy.frost.com</a>.

Frost & Sullivan forecasts biodiesel market

Australia's capacity to produce ethanol and biodiesel should reach the government's goal of 350 million liters (92 million gallons) by 2010, according to an independent study conducted by Australian companies EnergyQuest and Ecco Consulting. In fact, capacity may exceed 2.4 billion liters (634 million gallons) by 2010 if current plans are realized, the "Biofuels in Australia: A Growing Sector" study said. The study is the first comprehensive review of the industry since the federal government's Biofuel Taskforce report in August 2005.

Australia capable of rapid expansion

According to the New York-based Energy Management Institute, biodiesel is now 29.2 percent more cost-competitive than its hydrocarbon counterpart crude oil. The study was conducted by analyzing three years of pricing collected from more than 80 urban areas in the United States. It quantified advances in process technology and market efficiency that have been achieved since 2004. The study showed that ethanol, natural gas, electricity and propane were also more cost-competitive than crude oil.

Biodiesel becomes more cost-competitive

Federal and state policy-makers are jumping on the biofuels bandwagon. First, the Democrats included biofuels in their First 100-Hour Agenda in the U.S. House of Representatives, and then the governors of California and Illinois made moves to support biofuels as well, proving that biofuels are continuing to receive ample of support from government.
 
 H.R. 6 redirects oil subsidies
 The Democrats in the U.S. House of Representatives included House bill H.R.6 in their First 100-Hour Agenda. The bill passed 264-163 and repealed several oil industry subsidies. H.R.6, if passed on the Senate side, would scrap nearly $6 billion in oil industry tax breaks, seek to recoup royalties lost due to an Interior Department error in leases issued in the late 1990s, and slap a conservation fee on oil and gas taken from the Gulf of Mexico. 
 
 House Energy Committee members said the measure could yield between $6 billion and $14 billion. The bill creates a separate account for the additional revenues from this act to be known as the Strategic Efficiency and Renewables Reserve. Funds from this reserve would accelerate the use of clean domestic renewable energy resources and alternative fuels; promote the utilization of energy-efficient products, practices and conservation; and increase research development and deployment of clean renewable energy and efficiency technologies.
 
 California goes low-carb

 In California, Gov. Arnold Schwarzenegger signed an executive order in mid-January establishing a Low Carbon Fuel Standard (LCFS) for transportation fuels sold in the state. By 2020, the standard will reduce the carbon intensity of California's passenger-vehicle fuels by at least 10 percent. "California relies excessively on oil to meet its transportation needs," Schwarzenegger said. "That means our transportation fuels are responsible for more than 40 percent of California's greenhouse gas emissions." 
 
 The governor's office expects that the standard will more than triple the size of the state's renewable fuels market, add 7 million alternative-fuel vehicles to the roads and replace 20 percent of the state's on-road gasoline consumption with lower-carbon fuels.
 The LCFS requires California fuel providers to meet a declining standard for greenhouse gas emissions. The standard will rely upon market-based mechanisms that allow providers to choose how they reduce emissions. Compliance flexibility will allow providers that are able to produce low-carbon fuels beyond the standard to bank the credits or sell them to providers that may not be able to meet the standard, which is effective no later then December 2008.
 
 Illinois boosts state's green fleet
 Illinois' new law that orders state vehicles to go green was unanimously approved in the General Assembly and signed by Illinois Gov. Rod Blagojevich on Jan. 12. The law goes further than the governor's executive order of 2004. State agencies are now required to buy flexible-fuel vehicles that can run on E85 or fuel-efficient hybrid vehicles. New diesel-powered vehicles must run on B5.
 The state fleet now consumes more than 8,100 gallons of E85 and more than 60,000 gallons of B5 each month. 
 
 The new legislation will boost the Illinois governor's plan to meet 50 percent of the state's transportation fuel needs with homegrown fuels by 2017.

California Gov. Arnold Schwarzenegger signs the Low Carbon Fuel Standard.

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Federal, state legislators boost biofuels

BBI International has been named a signature sponsor for Biomass '07: Power, Fuels and Chemicals, to be held May 15-16 in Grand Forks, N.D. This event is hosted by the Energy and Environmental Research Center (EERC), one of the world's leading developers of cleaner, more efficient energy and environmental technologies. 
 
 "This is a significant expansion of a strategic partnership between the EERC and BBI International," said EERC Director Gerald Groenewold. "The combined talent, expertise and reputation provide a marvelous opportunity to enhance the use of biofuels on a global scale. We are looking forward to the continued growth this partnership will bring."
 
 Last year, the EERC had plenty of room for its annual biomass conference at its newly expanded research, demonstration and commercialization facility in Grand Forks. The 2006 event drew more than 175 attendees from four countries to the campus of the University of North Dakota. However, this year's event is sparking even more interest, causing the EERC to move it to a larger venue across town, the Alerus Center.
 
 This year's event will have a significant focus on biodiesel production. Chris Zygarlicke, EERC deputy associate director for research, said five speakers are slated to discuss biodiesel in a session titled, "Innovations for Biodiesel Production." Participants include National Biodiesel Board Communications Director Jenna Higgins, The Kinetic Group Managing Director and Dakota Skies Biodiesel CEO Jeremy Dockter, Archer Daniels Midland Co. Manager of New Industrial Chemicals Paul Bloom and EERC Research Engineer Josh Strege. 

 
 Mark Luther, research analyst for Kadrmas, Lee & Jackson (KLJ), will also take part in the biodiesel session, discussing the challenges and opportunities for regional biodiesel plant development. KLJ recently announced the formation of Tall Grass BioIndustries, a business unit aimed at developing regionalized biodiesel production. The group's first project is an oilseed-crushing unit and 5 MMgy biodiesel plant in southeastern North Dakota. 
 
 In a separate session, Andrew Hebard from Technology Crops International (TCI) will discuss new oil crops, the EERC said. TCI is a North Carolina-based company developing the production and processing of new crop varieties.
 
 Other topics to be discussed at the event include trends and opportunities in utilizing biomass, renewable policies and incentives, and the development of biorefineries for chemicals and products. Kevin Kephart, vice president for research at South Dakota State University (SDSU), will discuss development of energy crops, harvest management, fertilizer needs and disease control. "SDSU is the regional lead for biomass production," Groenewold said. "Their work in this area complements the EERC's expertise in biomass utilization, creating the lead partnership for biomass production and utilization in the northern Great Plains."
 
 Other conference sponsors include the EERC's Center for Renewable Energy, the U.S. DOE, the North Dakota Department of Commerce Division of Community Services, Xcel Energy, MDU Resources Group, Great River Energy and Otter Tail Power Company. "An event like Biomass '07 is critical for networking with other researchers and industrial partners to make these innovations a reality," Zygarlicke said.
 
 For more information, visit <a target="_blank" href="http://www .undeerc.org/biomass07">www .undeerc.org/biomass07</a>.

EERC partners with BBI for biomass conference in May

Battelle Memorial Institute got its unique start long ago when Ohio industrialist Gordon Battelle, who made his fortune in steel, provided for the creation of the institute in his will after he died in 1923 at age 40.

 
 The Columbus, Ohio-based institute has since grown into the world's largest nonprofit research organization. It employs more than 20,000 staff members and manages $3.4 billion in annual research and development efforts. It also manages five U.S. DOE laboratories: Brookhaven National Laboratory, the National Renewable Energy Laboratory, Oak Ridge National Laboratory, Idaho National Laboratory and Pacific Northwest National Laboratory.
 
 Recently, the institute has offered its expertise to the biodiesel industry, which has a strong market right outside the institute's doors. In 2006, Ohio growers harvested 217.1 million bushels of soybeans from 4.62 million acres, according to USDA estimates. Finding new uses for soybeans is the impetus behind the institute's biodiesel research efforts. 
 
 More specifically, scientists at Battelle are studying soy glycerin and its functionality as a feedstock in the manufacturing of polyols, materials used in the production of a variety of household products.
 
 The research institute recently worked closely with Ohio State University (OSU) to form the Ohio Bio-Products Innovation Center (OBIC), also in Columbus, that staff-member Dennis Hall says was an Ohio economic development initiative. The increased efficiency of the biodiesel industry and its efforts to grow additional revenue is a concern of soybean growers invested in the renewable fuel. One of the main issues surrounding the growth of the biodiesel industry is what to do with the glut of glycerin, a by-product of the production process. "The issue with glycerin is a fairly widespread concern so there is a lot of research in that area currently underway," Hall says.
 
 The Ohio Soybean Council (OSC) says that farmers have invested almost $8 million in research and new use developments through Battelle and OSU for nearly a decade, and the partnership has been on the cutting edge for developing industrial uses for soybeans. 
 
 The OSC earned research and development awards for soy-based plasticizers in 2002 and toners in 2003. "Much of our work is funded by the soybean checkoff board and the council," says Bhima Vijayendran, vice president of technology commercialization for Battelle, which OSC recently contracted with to conduct research aimed at increasing the percentage of soybean oil in polyvinyl chloride (PVC) pipes. By chemically modifying the structure of soybean oil molecules, Vijayendran and others are looking to enable manufacturers to use up to 25 percent soy oil in the plasticizing process. 
 
 Producing Polyols
 Vijayendran believes polyols are the key to finding ways to use the low-cost abundant supply of glycerin. "We can mix glycerin and soybean oil, and through a chemical modification (ozone treatment and/or selective oxidation) make soya-polyols," he says. With soy oil at 30 cents per pound and glycerin at 10 cents per pound, Vijayendran says polyols can be manufactured from these feedstocks that are competitive with the petroleum-based products.
 

 Vijayendran reports that glycerin "already is in a glut situation," and the DOE projects that, amid increased biodiesel production, glycerin prices could drop even further, creating a potential bargain for polyol manufacturers. Polyols are used to make polyurethane foams, polyester, adhesives and other goods. The polyol market is huge in the United States at nearly 1 billion pounds, making it an immense value-added opportunity for the biodiesel industry to pursue, Vijayendran says. "If you look at polyols, the price has doubled recently," he says. [Polyol] producers are experiencing a lot of pressure-being squeezed by the high cost of petroleum." 
 
 Because of low reactivity, however, soy-based polyols need to be blended with petroleum counterparts-in much the same way that biodiesel is blended with petroleum diesel-to make certain specialty products. "Our technology offers a more reactive, more versatile soya-polyol than is currently available on the market with heightened potential to replace petroleum equivalents," Vijayendran says, adding that polyol and polyurethane manufacturers like the biodiesel industry are looking to add to their feedstock portfolios. Ideally an industry wouldn't want to be held hostage to the volatility of its raw materials, therefore soy oil, which has proven more price stable in recent years than crude oil, has been receiving more attention. 
 
 Battelle isn't the only one that's delving into the polyols realm. In December, Cargill Inc. announced that it had won a technology award from the Alliance for the Polyurethanes Industry for its BiOH bio-based brand of polyols. Cargill's product line references the fact that a polyol is a compound containing more than one hydroxyl group (OH). These molecular groups are attractive to scientists because they're functionally open to organic reactions, creating polymers. However, the materials produced to date have been far from perfect, Vijayendran says. "The challenge with current soy-based polyols is that they have a low reactivity, and also have a color and a 'beanie' odor," Vijayendran says. This is a concern in some applications, like coatings manufacturing, where materials need to be colorless and odorless. "The polyols we can make at Battelle are colorless and odorless," he says.
 
 Multi-Faceted Biorefineries
 Battelle's business strategy is to license technology to interested companies. For the past 12 years, Vijayendran has worked at Battelle with a focus on polymer-surface science and engineering. "We want to take our ideas, demonstrate their feasibility at the lab scale, apply for patents and then use that as a basis for discussions with industrial manufacturing and other commercial companies that may be interested in licensing the technology," Vijayendran says. "I also have a [master's degree in business administration], so I know something about the business aspects of developing new technologies." 
 
 The new technology would change a biodiesel plant into a multi-faceted biorefinery with multiple product streams. "In a petroleum refinery, you can make fuel, but you can also make plastics and polymers, Vijayendran says. "You can even use some of the waste streams to make asphalt. Similarly for a biodiesel refinery, every stream that's coming out of that plant has to have value-added revenue if it's going to be successful."
 
 A 100 MMgy biodiesel refinery is going to generate about 60 million to 75 million pounds of glycerin every year. "If you take our approach, then you can make about 200 million pounds of polyols, and polyols are currently selling for about $1 per pound," Vijayendran says. "So you would be adding about $200 million in revenue. Of course this would require a capital investment, but from the economic analysis we have done, … it's manageable."
 
 Since most industrial-scale biodiesel refineries, produce fuel from virgin vegetable oils-most predominantly soy oil in the United States-and all of them produce glycerin, logistical advantages for polyol production are already in place where biodiesel is manufactured. "Our view is that one of these refineries can make biodiesel for transportation fuel, and add the necessary process steps and investment to be able to manufacture polyols for the plastics and polymers industries," Vijayendran says. "They could do this at a cost that would be competitive with petroleum." Therefore, according to Battelle, biodiesel plants must evolve into biorefineries with multiple revenue streams, multiple processes and multiple products to be the most successfully sustainable and economically dynamic. "It is important to note, that what I describe is in the very early stages of [research and development] with no product today, but we are developing a model for biodiesel plants to grow their businesses through making polyols," Vijayendran says. 
 
 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.

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The Ohio Soybean Council and the Battelle Memorial Institute are working together in the Buckeye State's capital city to pioneer new uses for soybean oil and glycerin. Researchers tell Biodiesel Magazine that polyol demand, and the ability of the compound to produce coatings, polymers and other materials provides a vast value-added stream for the biodiesel by-product.

The Poly-Refinery Plan

Pennsylvania Gov. Ed Rendell unveiled his Energy Independence Strategy in February. The plan would create special funds totaling $850 million for renewable energy sources and conservation. The plan, which needs to be approved by the state legislature, includes mandates for biofuels.
 
 The goal of the plan is to reduce consumers' energy bills by $10 billion over the next 10 years, said Eric Thumma, director of the Pennsylvania Bureau of Energy, Innovations and Technology Development. Another goal is to reduce Pennsylvania's dependence on foreign oil by increasing the state's production of biodiesel and ethanol. Currently, there are four operational biodiesel plants in the state and no ethanol production.
 
 The plan would also increase the use of biodiesel and ethanol to 1 billion gallons per year by 2017, about 12.5 percent of the state's current fuel use. The plan mandates increasing the use of biofuels as production in the state increases.

 
 "There are two separate tracks for ethanol and biodiesel," Thumma said. "We would start out with a B2 requirement one year after we hit 30 million gallons of in-state production. Then, we go up to B5 when we hit 75 million gallons of production, B10 at 150 million gallons of production, and finally B20 is the maximum after we get to 300 million gallons of in-state production."
 
 The plan would require an E10 ethanol blend for gasoline statewide when in-state production reaches 200 million gallons and a determination by the Pennsylvania departments of Transportation and Environmental Protection indicates there is sufficient distribution infrastructure to supply the whole state with ethanol. Currently, only the five counties surrounding Philadelphia have an E10 requirement.
 
 A biofuels stakeholders group, along with other Pennsylvania energy companies, helped the state to craft the proposal. "We worked hard to get everything worked out, from logistics of getting fuel to the pump to clean air issues to feedstock issues," said Keystone Biofuels CEO Race Miner. "It took a lot longer than everyone anticipated. But what I think what you'll see, and the opinion that I have been getting, is Pennsylvania is doing it right."

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Pennsylvania plan would boost biofuels

Fuel quality specifications in Canada and the United States are similar, but they differ for those doing business on both sides of the border. 
 
 On one side, through the appropriate ASTM committee channels, the U.S. biodiesel industry has been working with those in the petroleum and other relevant industries to adjust the ASTM diesel fuel specification, D 975, to allow up to B5. Technically, this would mean that there would be no distinction to draw between pure hydrocarbon diesel fuel and B5 diesel fuel in the United States. "The B5 in D 975 has passed subcommittee ballot, but it will likely not pass through main committee at ASTM until the end of this year at the earliest," said Stu Porter, biodiesel technical analyst for Ontario-based BBI Biofuels Canada. As U.S. diesel fuel specs evolve to incorporate a small but important percentage of biodiesel, it closes the gap between what distinguishes U.S. and European standards; European diesel is already approved to contain up to B5. 
 
 "In Canada on the other hand, the Canadian General Standards Board (CGSB) has opted for separate specifications between petroleum diesel without biodiesel and that which can contain up to B5," Porter told Biodiesel Magazine. "The specification limits are the same, but the classification and specification standard numbers are different." The Canadian spec for on-road low-sulfur diesel fuel with no biodiesel content is CAN/CGSB-3.517, while the on-road low-sulfur diesel fuel spec in which up to B5 can be included is CAN/CGSB-3.520. Where U.S. biodiesel must meet ASTM D 6751, the B100 blended into Canadian on-road diesel fuel can meet either the European (EN 14214) or American protocols. "This was done primarily due to a lack of an oxidation spec in ASTM D 6751 when the CGSB B1 to B5 spec was introduced," Porter said. Since then, however, a three-hour Rancimat test for oxidative stability has been officially incorporated into D 6751. "It has since been decided at CGSB to leave both for market flexibility reasons," he says. 
 
 Other biodiesel-related fuel quality activities are underway in Canada. Much like the B20 spec under development for ASTM, Canadian "bio-technocrats" are also working on a B6 to B20 specification. Additionally, a program looking into the quality of biodiesel is ongoing, said Dennis Beattie, senior program officer with the Canadian measurement agency. Beattie said he is working on particular coefficients of expansion that would allow biodiesel to be sold "on a temperature-compensated basis." 
 
 Although Canada's biodiesel can meet European or American industry standards, the differences are diminishing between the two, Porter said. EN specs with no ASTM counterparts include EN 14103, which specifies a minimum ester content of 96.5 percent; EN 14111, which caps iodine values at 120; and EN 14103, which disallows more than 12 percent linolenic acid methyl esters.

U.S., Canadian fuel specs differ

China Clean Energy Inc., one of only two publicly traded biodiesel manufacturers in China, has gone public again-this time in the U.S. capital market. China Clean Energy is listed on the over-the-counter bulletin board as CCGY.
 
 "The U.S. is the biggest capital market in the world with the biggest capital pool," said Tai-ming Ou, CEO and chairman of China Clean Energy. "Being public in the U.S. is an important milestone in the history of China Clean Energy."
 

 By making the move, China Clean Energy becomes the only China-based biodiesel company to be traded publicly on the U.S. market. Its wholly owned subsidiary Fujian Zongde Technology Co. Ltd. launched biodiesel production in December 2005 in the Fujian Province of China and is aiming to produce 100,000 tons of biodiesel per year (30 MMgy) in 2008.
 
 China has experienced rapid growth in the past five years, becoming an oil importer in 2005. The nation of 1.3 billion people currently uses one-third of the world's oil supply. Ou said the consumption of diesel is only about 45 percent of the consumption of gasoline, but there is a growing demand for the company's product and big potential in future demand.
 
 "According to a report from the China Development and Reform Commission, by 2010 China's annual biodiesel output will only be 2.5 million tons (750 MMgy)," Ou said. "This is far too little to supplement the gap between oil supply and consumption. The biodiesel production will lag (behind) market demand."

China Clean Energy Inc., the first Chinese biodiesel company to be traded in the U.S. capital market, refines biodiesel through a subsidiary at this facility in Fuquing City in the Fujian Province. 

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Chinese biodiesel company breaks into U.S. market trading

North American biodiesel producers are sometimes set back in the construction stage due to an overall lack of equipment needed to run a plant. Perhaps that is why the Canadian government has given tremendous support to incoming biodiesel equipment manufacturer BioKing B.V. Based in the Netherlands, the family-owned company is set to open its doors in May in Lethbridge, Alberta, 135 miles south of Calgary and 60 miles north of the U.S. border.
 
 BioKing President and CEO Hans van de Ven said the plant could possibly begin production of its reactors, wash tanks, preheat systems, oil presses and other equipment in April due to assistance from Canadian provicial officials. Van de Ven said BioKing is eager to get started in Lethbridge because the company has experienced overwhelming growth in the past years. Traffic on the company's North American Web site has increased by 40 percent, and BioKing receives nearly 2,000 e-mails each day, he added.
 
 "We know there's a need for equipment in the U.S. and Canada, which is the reason we are moving there," van de Ven said. Currently, equipment costs for BioKing's customers in North America are high due to the strength of the euro compared with both the Canadian and U.S. dollar, as well as the transportion costs associated with shipping equipment from the Netherlands. By locating a new manufacturing hub in Lethbridge, van de Ven expects sales to increase 10-fold because of lowered equipment costs and convenience.
 
 BioKing has decided to locate a smaller equipment manufacturing plant in Colorado, but it is still in the early planning stages. Van de Ven said they see a need for a Malaysian plant as well, due to a large clientele in that region. "We have some pretty nice equipment designed for crude palm oil, and we sell a lot in Malaysia," he said. "So we want to have a service point there, and then further I think we do not know yet."

These pieces of biodiesel production equipment were built in the Netherlands and sent to Lethbridge, Alberta, to supply initial demand when the new Canadian facility opens its doors May 1. 

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Alberta welcomes new equipment manufacturing plant

ConocoPhillips, the fifth largest oil refiner in the world, has begun commercial production of renewable diesel fuel at the company's Whitegate Refinery in Cork, Ireland. The production process was developed by ConocoPhillips, and the finished product meets European Union standards for diesel fuels, according to Phil Blackburn, a company spokesman. 
 
 The refinery is producing 1,000 barrels (40,000 gallons) of renewable diesel fuel per day for sale in the Irish market. "The product is chemically similar to conventional diesel fuel and thus can be shipped by existing pipelines," Blackburn said. 
 
 The fuel is produced using existing equipment at the refinery. It has a higher cetane value than regular diesel at a lower cost, according to Blackburn. Renewable diesel only has 95 percent of the energy content of conventional diesel, yet 10 percent more energy than biodiesel. Renewable diesel is defined as a non-ester renewable fuel, while biodiesel is produced using mono-alkyl esters.
 
 ConocoPhillips conducted a successful renewable diesel production test at Whitegate last year. Soybean oil will be the primary feedstock, although the plant can use other vegetable oils and animal fats. Renewable diesel burns cleaner than conventional diesel, has a lower sulfur content and emits less nitrous oxide, Blackburn said. A reduction in carbon dioxide emissions will contribute to Ireland's goal of meeting standards required under the Kyoto protocol. 

 
 Renewable diesel has been under some scrutiny in the United States. At the 2007 National Biodiesel Conference & Expo in San Antonio in February, National Biodiesel Board CEO Joe Jobe said some petroleum companies are pursuing a broader definition of renewable diesel so they can blend a minute amount of biomass into diesel fuel. Those companies would then collect a renewable fuels standard credit set aside in the Energy Policy Act of 2005. In that legislation, renewable diesel has an equivalency value of 1.7 gallons, compared with biodiesel's 1.5 gallons. Values are based on energy content.

ConocoPhillips begins production of renewable diesel

Neste Oil Corp. calls NExBTL a second-generation renewable diesel. The term "renewable" is used because it's made with the same feedstocks as traditional biodiesel-vegetable oil or animal fat.

 
 It's called "second generation" because the proprietary process is different than the transesterification process used to produce methyl esters or ethyl esters (commonly known as biodiesel), and different from the Fischer-Tropsch process used in biomass-to-liquid (BTL) processes.
 
 Interest in the new product has been high. "The only bottleneck is that we don't have the product available yet," says Kimmo Rahkamo, executive vice president of Neste Oil's new biodiesel division. That will soon change. Neste expects its first NExBTL plant to be in production by June. The €100 million (US $130 million) plant will produce 170,000 tons per year (60 MMgy) of biodiesel. The plant will require about 200,000 tons of raw materials, of which 10 percent will be animal fats. A second, identical plant is set to come on line in late 2008. Both are being built at Porvoo, Finland, on the site of one of Neste's two oil refineries.
 
 "We are looking into building significantly larger plants than these first two," Rahkamo says. Neste is also working with Austrian oil refiner OMV Aktiengesellschaft to build a 200,000 tons per year (65 MMgy) plant using NExBTL technology at a site near Vienna. A second joint venture with French oil refiner Total was discontinued in mid-February. "All the cost elements that could go bad actually went bad," Rahkamo says. However, the OMV project and others that haven't been publicly announced are proceeding, he adds.
 
 Traditional biodiesel producers should rightfully be concerned about a new process that can be scaled up to oil refinery dimensions. World-class oil-refineries range in size from 200,000 to 400,000 barrels-a-day capacity. In comparison, a 60 MMgy biodiesel plant produces about 1.5 million barrels a year, or roughly 4,000 barrels a day.
 
 Rahkamo perfers to take a long-term approach to the issue. "I believe there is a market for both types of products," he says. "We are not saying their product [traditional biodiesel] is not good. We are saying there is room for a high-quality product like ours. As you know, most car manufacturers limit the use of [fatty acid methyl esters] to 5 percent by volume. If we want to achieve much higher biofuel targets, we need to have something other than traditional biofuels."
 
 While some look for the B5 limit to be raised, Rahkamo says car manufacturers are skeptical, "especially the high-end diesel engine manufacturers like the German car companies. The heavy-duty truck engine manufacturers in Europe are welcoming the higher-quality product."
 
 Stu Porter, a biofuels technical analyst with BBI Biofuels Canada, is following Neste's new product closely. "It is true that the original engine manufacturers (OEMs) have not yet endorsed B20 thus far," he says. "However, this is not because the product is inferior, but rather the OEMs are holding back on that endorsement until the quality concerns of the U.S. biodiesel industry have improved, and until an ASTM B20 specification has been put in place."
 
 He also questions Neste's use of the word "biodiesel" as a generic term. "The term biodiesel in the United States is specific to methyl (or ethyl) esters," he says.
 

 "'Biodiesel' is a good general word for renewable diesel, which is why we keep using it, even though it isn't 100 percent technically correct," Rahkamo explains. Using a technical approach, NExBTL would be called "something like synthetic diesel out of renewable sources," he says. "The French legislation is calling it synthetic biodiesel."
 
 Time will tell how the nomenclature shakes out. In the meantime, traditional biodiesel producers will be watching Neste Oil's progress in introducing NExBTL to the market.
 
 Neste Aims High
 "Given the accelerated public discussion around climate change, and the potential biofuels offer for helping, I believe that we will move ahead on a number of NExBTL projects over the next few years," Neste Oil President and CEO Risto Rinne says. In a news release following the board of director's approval of the new strategy, he said, "We are aiming to be the world's leading [synthetic] biodiesel producer, which means production volumes of millions of tons annually." 
 
 Neste Oil expects to invest several billion euros in growth projects over the next 10 years, which includes enhancing its base oil-refining business. While construction proceeds on the NExBTL lines, the company is building a new €700 million (US $910 million) diesel line at Porvoo. "We have both the will and the financial resources to invest in growth in the areas where we are strong," Rinne says.
 
 Neste Oil was started in 1948 after World War II as Finland's state-owned oil company. In the 1990s, it merged with Finland's power generating company, and in 2006, it was spun off on its own. It is still 50.1 percent owned by the government of Finland, and the remaining shares are publicly traded on the Helsinki stock exchange.
 
 Neste Oil has two other divisions in addition to the refinery and new biodiesel divisions. The shipping division's ocean tankers supply the company's oil refineries and deliver fuels. The retail division has just over 1,000 outlets in Finland, northwest Russia, the Baltic states and Poland. 
 
 With its two oil refineries that together produce 250,000 barrels a day, Neste Oil is a medium-sized European refiner. Not able to compete on size and volume, Neste has long targeted the premium and specialty fuels market. Along with gasoline, Neste markets high-quality diesels, high performance base oils and components such as iso-octane, ethyl tertiary butyl ether, methyl tertiary butyl ether, and tertiary amyl ethyl ether. "We aim to be the most advanced company," Rahkamo says.
 
 Neste was one of the first refiners to take the lead out of gasoline, the first to produce reformulated gasoline in Europe, and the first to phase out sulfur from both gasoline and diesel, Rahkamo says. Now, it is among the first oil refiners to enter the synthetic biodiesel market.

 
 Solving Performance Issues
 The company started investigating biofuels in the 1990s but concluded those esters weren't good enough for the fuels that the company wanted to market. "NExBTL has been a rather long development process," Rahkamo says.
 
 The Neste process entails direct hydrogenation of plant oil or animal fat triglycerides into the corresponding alkane, thus removing oxygen from the oil. Unlike yellow transesterified biodiesel, NExBTL is a clear, colorless paraffin. Neste's proprietary process involves catalysts, high pressure, high temperature and hydrogenation. By-products include propane and gasoline.
 
 Neste says the resulting fuel solves many of the shortcomings of biodiesel and petroleum diesel. According to Neste's promotional literature, NExBTL:
 
 --Is 100 percent hydrocarbon-type biobased diesel fuel
 
 --Is free of sulfur, aromatics and oxygen
 
 --Reduces nitrogen oxides par-ticulate mattce, hydro carbons and carbon monoxide emissions
 
 --Has no storage stability problems
 

 --Has a high cetane number (85 to 99) 
 
 --Has cloud points that can be adjusted from 5 degrees below Celsius (23 degrees Fahrenheit) to 30 degress below Celsius (22 degrees below Fahrenheit) 
 
 --Has lower lifecycle carbon dioxide than fossil diesel fuel
 
 The company describes NExBTL as a component that will function as an iso-octane for diesel. It is similar to ultra-low sulfur diesels, in which lubricity additives are recommended.
 
 For oil refineries, there are other positives for the NExBTL process:
 
 --The process can be scaled up to oil-refinery-sized production
 
 The product utilizes refinery infrastructure as far as blending, logistics and quality control
 
 --The process has no non-fuel coproducts
 
 Wholesale fuel companies are interested in a premium-grade synthetic biodiesel that can be used to boost cetane levels, Rahkamo says. Others are interested in high-profile fleet use to highlight their green commitments. 

 
 "Municipal fleets want to improve their local air quality," he says. Both Helsinki and Stockholm have expressed interest in using NExBTL. "When you use NExBTL in high blends at 30 percent or higher, the tailpipe emissions go down," he says. "That's important when you plan to use it in big cities if you think of the diesel smoke you can reduce."
 
 He continues, "The tests the truck manufacturers have done at 100 percent show the tailpipe emission will be reduced by between 10 [percent] and 20 percent. It is quite significant if you're thinking of the state-of-the-art diesel engines combined with this product."
 
 Porter balances their product claims by commenting, "Although Neste claims the product has a similar carbon lifecycle analysis and emissions reductions as biodiesel methyl esters, the testing on methyl esters has been much more extensive."
 
 Using Variable Feedstocks
 One of the strengths of its process, according to Neste, is its flexible feedstock requirement. "Theoretically, we will use whatever feedstock is the cheapest, with the side note of being concerned with the sustainability of different feedstocks," Rahkamo says.
 
 Rahkamo and Rinne visited Malaysian plantations to ensure palm oil supplies there were sustainably cultivated and not a threat to virgin rainforests. They also want to work with plantations that respect human rights, Rahkamo says. "We've put efforts into [research and development] to widen our feedstock base to nonfood plants," he adds. Neste is considering jatropha, as well as algae and bacteria. "We believe in the long run we should not be competing against food." 
 
 To realize its goal of becoming the world's synthetic biodiesel leader, Neste is looking toward the United States and the Far East. "The United States is a good market," Rahkamo says. The company's U.S. team has met with the U.S. EPA and others in Washington, D.C. "We are really hoping someday we can produce [NExBTL] somewhere in the United States. We hope to be part of improving air quality, and also helping the U.S. reach their targets in biofuels."
 
 The Neste initiative may be a cause for concern to the American biodiesel industry, Porter says. "Although the Neste NExBTL process is more capital-intense than biodiesel (transesterification) processes, oil refineries are interested-and oil refineries have cash. The downside is that Neste's process could soak up the feedstock supply and offers no increase in refining capacity." He adds that the NExBTL process' capital costs and yields aren't fully known, unless an interested company has a confidentiality agreement in place.
 

 Neste's NExBTL will have an impact on the future of biodiesel, Porter predicts. "The best defense for the traditional biodiesel industry is to produce a consistently good quality product. If they don't, they're leaving the door open to products like Neste's. If arguments from biodiesel producers persist-that testing of biodiesel is too difficult or too costly-companies such as Neste will offer a solution to that problem with production at the refinery." 
 	
 Susanne Retka Schill is a Biodiesel Magazine staff writer. Reach her at <a href=mailto:"sretkaschill@bbibiofuels.com">sretkaschill@bbibiofuels.com</a> or (701) 746-8385.

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585-1294329662.jpg

*Rapeseed methyl esters 1) ENS90/2005, 2) Blending cetane number

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Neste Oil aims to become to biodiesel what Nokia is to mobile phones. The Finnish firm has developed a proprietary process that produces a premium diesel from animal fats or vegetable oils. Just what is NExBTL, and who is Neste Oil?

Heeding Hydrogenation

Researchers at eTEC Business Development Ltd., a biofuels research company based in Vienna, Austria, have devised mobile facilities that successfully convert the biodiesel by-product glycerin into electricity. The facilities, according to researchers, will provide substantial economic growth for biodiesel plants while turning glycerin into productive renewable energy.
 
 "With every additional gallon of biodiesel being produced, it is becoming more evident that glycerin is turning into a significant issue," said Robert Hebenstreit, director of project development for eTEC. "Ever since biodiesel production began booming some years ago, Europe has been facing excess glycerin production issues, and the peak has not yet been reached."	
 
 Stable and virtually maintenance-free, eTEC's units consist of a glycerin processing module, a combustion engine with a generator and a control unit that is compatible with any biodiesel plant, according to Hebenstreit. The glycerin is burned in specially adapted engines to produce electricity. With the units low malfunction rate and compact design, it can be integrated into a transfer encasement, making it easy to be transported, assembled and moved from one biodiesel plant to another, Hebenstreit said. 
 
 Since the cost of electricity is expensive in Europe, biodiesel producers will be able to create their own electrical energy using the glycerin conversion process, ultimately offsetting the total costs of raw feedstock used in the production of biodiesel, Hebenstreit said.
 
 In addition, heat is simultaneously released during the electricity conversion process, which can be used for district heating or for heating the tanking facilities of the biodiesel plant. In a further developing step, eTEC plans to reconvert the heat back into electricity. Hebenstreit said the excess electricity that the biodiesel plant doesn't use can also be fed into the main supply grid for use by European citizens at the eco-electricity rates sponsored by the European Union. "In Europe, having this kind of 'green' electricity would be supported by the local states, so it is quite profitable for biodiesel projects," Hebenstreit said. 
 
 For more information, visit <a target="_blank" href="http://www.eteceurope.com">www.eteceurope.com</a>.

569-1294329650.jpg

eTEC finds solution to glycerin glut

The city of Santa Monica, Calif., is in the midst of testing biodiesel, along with selective catalytic reduction (SCR) technology designed by Extengine Transport Systems LLC, to reduce NOx emissions.
 
 This project, in coordination with the South Coast Air Quality Management District (AQMD), is designed to demonstrate the viability of biodiesel in tandem with SCR technology to attain emissions capable of meeting the 2010 federal standards for NOx. Tests are being conducted with two 2005 International 9200i test trucks, which have been equipped with a catalyst and a system that injects urea into the exhaust stream. The urea breaks down to ammonia, which reacts with NOx to produce elemental nitrogen and water vapor. SCR technology has been used selectively in the past to control NOx emissions from power plants, reciprocating engines and gas turbines. 

 
 "We did not see an increase of NOx in our heavy equipment when we went from unleaded diesel to a B20 blend," said Rick Sikes, fleet superintendent for the city of Santa Monica. "We did see [a NOx] increase with B100, but that was expected, and we believe that the catalytic converter will reduce this pollutant in the same way it has in smaller passenger cars."
 
 The total proposed cost of the project is approximately $280,000, according to Sikes. Funding has been provided by the South Coast AQMD, Tellurian Biodiesel in San Francisco, the National Renewable Energy Laboratory and Extengine, among others. According to the California Environmental Protection Agency, the state's current NOx requirement for new urban bus engines is 0.2 grams per brake horsepower hour (g/bhp-hr). The California and national heavy-duty truck new engine standard for 2007 is the same, but flexibilities in the heavy-duty truck rule result in the option of certifying all engines to an average NOx standard of 1.2 g/bhp-hr between 2007 and 2009.

Santa Monica tests biodiesel in heavy-duty trucks

The cost of maintaining and expanding U.S. roads and infrastructure has sparked debate over creative solutions to future budget concerns and the role of biofuels in that discussion. With more cars on the road and more miles being driven than ever before, it may seem counterintuitive that revenue from state and federal gas taxes have stabilized and are expected to decline in terms of purchasing power. However, with biofuels exempt from most forms of taxation, and inflation affecting the cost of construction materials, the gas tax has ceased to be the cash cow it once was. 
 
 Currently, two states-Minnesota and Oregon-are investigating a fee based on the number of miles traveled, rather than the current fuel tax that is assessed on gasoline and diesel. According to Kevin J. Sullivan, the former secretary of transportation for Massachusetts, "the old pay-as-you-go system is not working." Fuel taxes aren't tied to inflation and don't change as roadway maintenance costs increase.
 
 In Oregon, the first state to ever implement a gas tax in 1919, the tax would accrue while the driver traveled with information being stored in an onboard, GPS device. When the vehicle pulls up to a pump at a gas station, the information would be accessed and downloaded, then added to the cost of the fuel. The tax already on the price of the fuel would be deducted for drivers with the system; drivers without the system would pay the regular gas tax.
 
 Minnesota's plan recently received $5 million for "a pilot project to promote mileage-based transportation user fees." According to Gov. Tim Pawlenty, the state needs "fuel-neutral" forms of revenue creation, and a mileage tax "would allow us then to charge by mile driven, regardless of fuel source."
 
 Proponents see the approach as one way to buoy strained infrastructure needs. At the federal level, "the gas tax has only been raised five times in the past 50 years. It is a very unpopular tax," Sullivan said. A mileage tax, or fee, would be one among many creative ways to restructure revenue creation.
 
 Critics point out that the mileage tax treats all vehicles equally, but not necessarily equitably. The cost of a gallon of fuel would be the same for every vehicle type, and once the mileage charge was added, the benefits of fuel-efficient vehicles would be severely diminished. "[Proponents of mileage taxes] don't mean to deincentivise hybrids and fuel efficient vehicles," said Kara Kockelman, a professor of civil engineering at the University of Texas. "They just need to keep the money coming in."
 
 Some drivers are also concerned that the programs will treat light-duty and heavy-duty vehicles as essentially the same when they are not.
 

 In Oregon and elsewhere, the onboard technology may ultimately track the vehicle's whereabouts in an effort to mitigate congestion. Bottlenecks in the system-a particular bridge or roadway-may one day have a higher premium to discourage use during peak hours. However, the same road might have only a minimal charge during low-volume hours and late at night. Kockelman said this is ideal for those managing the networks, as well as travelers seeking reliable, low-stress travel, because "ultimately [those in charge of road pricing] do expect to know where you are." Of course, there may be privacy issues, but accurately pricing heavily trafficked areas might outweigh such concerns.

Mileage tax could fund highway projects

I remember when biodiesel quality was taking shape in the industry. As the ASTM committee met to determine the first set of biodiesel specifications, West Central's first biodiesel batch plant was already in operation. As we looked forward to those specifications, our team decided we needed to improve our biodiesel quality. On Sept. 11, 2001, our team began to design the layout for the nation's first continuous-flow biodiesel plant. Later that day, as we huddled around a small TV and watched the events unfold, we knew we were making the right decision in creating a state-of-the-art production facility that would help supply the United States with high-quality fuel and help the nation in its quest for independence from foreign oil. 
 
 In the weeks and years following 9/11, and as the biodiesel industry has grown, West Central's biodiesel business evolved into Renewable Energy Group Inc. During that time, I've discovered two key planning components to ensure plants will produce ASTM D 6751 specifications: plant design and layout. 
 
 In my experience as a National Biodiesel Accreditation Commission (NBAC) commissioner and a plant designer, I know these two vital pieces of planning will help produce quality fuel. Critically thinking through a plant design can ease the implementation of a quality management system, and the execution of in-process and finished product quality control. Having these systems in place, of course, makes meeting BQ-9000 requirements an easier process, as well
 
 When thinking about the root source of quality, many people only think about the liquid fuel itself. I encourage you to think about how your plant design and layout play a role. The way a plant is designed and maintained aids in keeping your plant running and quality product flowing. Some site tips that can help biodiesel producers design their facilities to meet ASTM requirements include:
 --Installation of a dedicated tank for product that needs to be reworked (nonconforming product or product not meeting spec)
 
 --Product going through a three-tank rotation of 1) production; 2) isolation and testing; 3) release and shipping 
 
 --Sample hatches so proper upper, middle and lower samples can be taken
 
 --Sampling ports on the biodiesel loadout line incorporated so proper loadout samples can be attained
 
 --Access platform for inspection of truck/rail loading and testing areas
 

 --Computer system storing and printing certificates of analysis and injection system for blending biodiesel into B99.9
 
 --A plant information system, where lab records are kept along with data from the plant process
 
 --A safe place to recycle any excess sample or outdated materials
 
 --A training program that highlights safety
 
 --A complete lab incorporated into the design-including all the equipment and standards that are required in the BQ-9000 program; for all other testing including feedstock, glycerin, water, chemicals, by-products of the pretreatment phase; and all in-process testing. Internal labs (built into or added on to the plant) ensure that the samples don't lose their integrity by exposure to the elements.
 
 Don't forget to consider your staff when thinking through your recipe for plant design and layout. Pay attention to tank design for easy testing and employee comfort. Consider stairs instead of ladders and an easy-access, built-in, environmentally controlled area for retain samples. I insist that personnel be present for inspection of the truck or vessel, and installation of the seals.
 
 Those involved in this booming industry-even fuel consumers-are taking note that fuel quality is the No. 1 ingredient for real industry growth. The BQ-9000 accreditation program is the best assurance for fuel consistently meeting ASTM D 6751 and being delivered to the customer in top quality. 
 
 Our team at Renewable Energy Group is reminded each day that the plant design and layout work we started on that infamous day in September more than five years ago is today helping us to produce the highest-quality biodiesel available. 
 
 Myron Danzer, Brad Albin, Matt Schultes and Tim Sullivan work for Renewable Energy Group Inc. and are close to the interaction between biodiesel facilities and BQ-9000. Danzer is vice president of technical and customer service, and serves as a commissioner on the NBAC. Schultes is the technical production manager, Sullivan is the quality systems manager, and Albin is director of plant sales and construction.

Remembering why facility design 
and layout are important for quality

NBB In Sight

As the second-largest biodiesel producing state in the country, Texas was an appropriate setting for the 2007 National Biodiesel Conference & Expo, which by all accounts was a resounding success. The largest and most comprehensive event of its kind, the fourth annual conference brought together a diverse cross-section of biodiesel stakeholders in San Antonio on Feb. 4-7. 

 
 Approximately 3,800 people from across the world attended the event, including government officials, scientists and academics, original equipment manufacturers (OEMs), celebrities and those on the front lines in the industry-biodiesel producers, suppliers and distributors. 
 
 "Each year, the NBB Conference & Expo reaches a new level and expands its reach," said Joe Jobe, National Biodiesel Board (NBB) CEO. "Biodiesel production reached 225 million gallons in 2006, 105 plants are currently operating, and more than 85 plants are under construction or undergoing expansion. This, coupled with an energy policy at the top of the congressional agenda, has led to the industry experiencing unprecedented growth. It is critical that all sectors of the industry have a thorough understanding of the factors that are shaping our business in order to maintain this growth."
 
 Participants had the opportunity to participate in six educational tracks-the newest being the production track. Within these tracks, more than 40 cutting-edge educational sessions covered everything from fuel quality to new diesel vehicles, federal and state legislation, and emerging biodiesel markets. In addition, several celebrities like Merle Haggard, Larry Hagman and Daryl Hannah were on hand to lend their support to biodiesel.
 
 The following is an overview of some of the conference highlights:
 
 --Launch of the National Biodiesel Political Action Committee (PAC): The new PAC will help to carry the voice of biodiesel in Washington, D.C. In addition to many individual donations, a special auction raised $10,000.
 
 --Biodiesel quality sessions: Several educational sessions focused on the industry's top priority: ensuring fuel quality. Discussions covered the NBB's growing quality control program BQ-9000, the results of a national fuel quality survey, ASTM biodiesel standards and more.
 
 --The Second Amendments: Members of this Congressional rock band-U.S. Reps. Thaddeus McCotter, R-Mich.; Collin Peterson, D-Minn.; Dave Weldon, R-Fla.; and Kenny Hulshof, R-Mo.-performed for attendees and served on a public policy panel focused on our nation's energy future. 
 
 --A keynote address by Dr. John G. Stoessinger: This internationally recognized political analyst and Holocaust survivor is also the prize-winning author of 10 world-politics books, including The Might of Nations: World Politics in Our Time. Stoessinger not only shared his personal story, but also reflected on the current dramatic transformations in world politics, including the impact of these changes on the biodiesel industry. 

 
 --Ride-and-drives: Participants had a chance to take a spin in the latest biodiesel-powered vehicles by General Motors, DaimlerChrysler and Volkswagen. 
 
 --Political pundit-couple James Carville and Mary Matalin: This cross-party couple talked about what it takes to have issues heard in Washington, D.C.
 
 --Larry Hagman of "Dallas" fame: This actor and biodiesel supporter led a special session on his passion-solar energy-a natural companion to biodiesel, which he referred to as "liquid solar energy."
 
 --Bill Mack Radio Show: The XM Satellite Cowboy hosted his "Open Road" radio show live from the conference and interviewed dozens of attendees on a wide range of topics.
 
 --Merle Haggard: This legendary musician performed a concert for attendees. The NBB gave 1,000 tickets to local members of the armed forces.
 
 --AllThingsBiodiesel.com: The new, commercial Web site for biodiesel commerce was launched by the NBB at the conference. This is the largest Web site of its kind.
 
 --Greening: For the second year in a row, the NBB "greened" its conference with the help of the Spitfire Agency (<a target="_blank" href="http://www.spitfireagency.com">www.spitfireagency.com</a>). The agency's head, Sarah Haynes, said the NBB earned an A with its many efforts to reduce waste from the conference.
 

 The following sponsors were among the many that helped to make this landmark event possible: World Energy Alternatives, Core Ventures/Croplan Genetics, Bioenergy of America, Crown Iron Works Company, Degussa Building Blocks, Renewable Energy Group Inc. and Volkswagen.
 
 For more details on the conference, visit <a target="_blank" href="http://www.biodieselconference.org/2007">www.biodieselconference.org/2007</a>.

2007 National Biodiesel Conference & Expo makes its mark in Texas

In addition to saving lives, two firefighters in San Francisco are doing their part to lead their fire department in saving the environment. Brie Mathews and Mike Ferry approached the San Francisco Fire Department (SFFD) administration two years ago about using a B20 biodiesel blend in the fire vehicles. The biodiesel industry thanked them, and other champions of the nation's fastest-growing renewable fuel, with awards at the National Biodiesel Conference & Expo.
 
 "Using biodiesel gives us a glimpse of what I hope is a better future for everyone," said Ferry, who has been with his department for 12 years. "We use 170,000 gallons of diesel fuel per year, and all San Francisco municipal fleets combined use over 6 million gallons annually. I am very proud of the role I've played in bettering our local environment through biodiesel's decreased emissions. Biodiesel also offers health benefits to the 1,600 members on our department." He also represents the SFFD on the central working group exploring the citywide use of B20 in San Francisco. Mathews and Ferry, the Inspiration award recipients, began working together when Mathews got the idea to approach the fire department because of her personal biodiesel use.
 
 This marks the fourth year for the annual "Eye on Biodiesel" awards, designed to recognize individuals and groups who have advanced the board's mission of public education and industry growth. Other 2007 awards and winners are:
 
 --Innovation: Gene Hemphill/New Holland Co., manager of North American industry affairs
 
 In 2006, New Holland approved the use of B20 in all of its equipment using New Holland engines. It is the first original equipment manufacturer (OEM) to announce full support of B20 in all of the diesel engines that it produces. Hemphill is a big reason for New Holland's support; he was advocating its use in the company's equipment almost a decade ago. New Holland has also supported the National Biodiesel Board's (NBB) Biodiesel Alliance recruiting efforts.
 
 --Industry Partnership: Rod Lawrence/Magellan Midstream Partners LP, manager of quality and analytical services

 
 Under Rod Lawrence's direction, Magellan Analytical Laboratories has been closely involved in biodiesel testing and analytical method development for more than 15 years. Lawrence's Magellan lab was the first host of the biodiesel industry's Technical Brainstorming Workshop a decade ago. Lawrence has played a leadership role in developing the industry's BQ-9000 program and ASTM specifications. Biodiesel blends are now available at nine Magellan terminals.
 
 --Impact: Sprague Energy
 
 A progressive Northeastern petroleum distributor has become the first petroleum company in the nation to earn the status of BQ-9000 "certified marketer." The New Hampshire-based energy wholesaler also opened the first rack-blended biodiesel terminal in New York. The terminal stores and supplies 40,000 gallons of pure biodiesel for blending in over-the-road applications and No. 2 heating oil (trademarked Bioheat heating oil) in several states. 
 
 --Influence: Bill and Cindy Mack
 
 Bill and Cindy Mack, known and admired by U.S. truckers, have significantly increased the awareness of biodiesel in that large market. Bill Mack, XM Radio's "Satellite Cowboy," and his wife have spoken about biodiesel on their "Open Road" show the past few years. They regularly spend entire shows discussing biodiesel, often with guest Willie Nelson. The Macks also helped the NBB with the launch of the hotline 866-BIODIESEL and the promotion of <a target="_blank" href="http://www.biodiesel.org">www.biodiesel.org</a> and <a target="_blank" href="http://www.BioTrucker.com">www.BioTrucker.com</a>.
 
 --Pioneer: Jim Gay

 
 The NBB also recognized a long-time supporter of the industry. Jim Gay, a founding member of the original national biodiesel organization, received the "Pioneer Award." Gay, a Rockport, Ill., farmer, was the original vice president and started his service to the industry in 1992. 
 
 For the full story on all the award winners, visit <a target="_blank" href="http://www.biodiesel.org">www.biodiesel.org</a>.

Biodiesel awards thank engineering, trucking, petroleum, firefighting champions

After three years of exponential growth that has seen biodiesel demand triple each year, the industry continues to tackle the challenge of enforcing fuel quality standards. During the National Biodiesel Conference & Expo in San Antonio, Texas, the National Biodiesel Accreditation Commission announced that six more companies achieved BQ-9000 accredited and certified status. BQ-9000 is a voluntary quality control program. 
 
 "Achieving the ASTM standard on every batch is critical to protect consumers and maintain the reputation of biodiesel as a high-quality, high-performance fuel," said Ed Hegland, National Biodiesel Board (NBB) Technical Committee chairman. "We encourage all biodiesel producers and marketers to achieve and maintain certification under the BQ-9000 program. Quality is critical. Consumers deserve to have their vehicles work without having to think about their fuel."
 
 There are currently six BQ-9000 certified biodiesel marketers and 17 accredited biodiesel producers, which account for more than 40 percent of the biodiesel production capacity in the United States. Most recently, Western Iowa Energy in Wall Lake, Iowa; Stepan Company in Northfield, Ill.; and Seattle Biodiesel in Seattle became the latest accredited biodiesel producers. Western States Petroleum in Phoenix; FUMPA Biofuels in Redwood Falls, Minn.; and TransMontaigne in Denver also became certified biodiesel marketers.
 
 BQ-9000 helps companies improve their fuel testing procedures and reduces the chances of producing or distributing out-of-spec fuel. The program is a unique combination of the ASTM D 6751 standard for biodiesel and a quality control system that includes storage, sampling, testing, blending, shipping, distribution and fuel management practices. To receive accreditation, companies must develop a quality control manual and pass a rigorous review of their quality control processes by an independent auditor. 
 
 State and federal fuel quality outreach programs are also part of the industry's efforts to enhance biodiesel fuel quality. The NBB has asked government agencies to adopt fuel quality standards for biodiesel and enforce them. Last summer, the NBB board members approved a comprehensive fuel-quality policy that directs the NBB to work diligently with all state and federal agencies with authority to regulate and enforce fuel quality. 
 
 The NBB's Fuel Quality Outreach Program has made contact with all state divisions of weights and measures and encouraged them to adopt ASTM D 6751. At the National Conference of Weights and Measures Interim Meeting in Jacksonville, Fla., the NBB recommended that states aggressively enforce ASTM D 6751 by taking samples of B100 at biodiesel plants, with pipeline terminals and bulk distributors taking appropriate legal action if out-of-spec fuel is found.

 
 The NBB also encouraged each state to become familiar with the BQ-9000 quality certification and accreditation program, and all producers and marketers to become BQ-9000 certified or accredited. Currently, half of the states have adopted the ASTM D 6751 specification as part of their fuel quality regulations, and an additional 13 states are planning to adopt the specification or are studying it. Ten states now proactively test biodiesel or biodiesel blends. 
 
 The NBB has developed an online Fuel Quality Enforcement Guide at <a target="_blank" href="http://www.biodiesel.org/resources/fuelqualityguide">www.biodiesel.org/resources/fuelqualityguide</a> that provides guidance on actions for anyone who has concerns about the quality of their biodiesel fuel.

Voluntary biodiesel fuel quality program continues to expand

The National Biodiesel Board (NBB) welcomes on board Technical and Regulatory Engineer Don Scott. This newly created position will handle technical, regulatory and member support. Scott will be based out of the NBB's Jefferson City, Mo., office.
 
 "In my spare time, I like to get my hands dirty tinkering with diesel engines," Scott said. "I'm excited to join the National Biodiesel Board because I believe clean, efficient diesel engines can extend the life of our existing energy supply. I believe biodiesel is our best option for increasing that supply while also reaping benefits of increased security and economic stability."
 
 NBB COO Donnell Rehagen said his organization has increased in size along with the industry. "With the growth of the biodiesel industry in the U.S., the need for more resources from a staff point of view has become obvious," Rehagen said. "We are excited to have Don join our team, and his background and experience is a perfect fit. Don will provide in-house support for issues and inquiries related mostly to our technical area, but Don's background with the state of Missouri includes policy development and actual drafting of legislation, so his support will also extend to issues of policy and legislation."

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NBB hires new technical engineer

GS AgriFuels Corporation (GSAF) announced in January that it has signed an agreement with a subsidiary of Homeland Energy Biofuels LLC (HEB) to form GS Fulton Biodiesel LLC. The newly formed partnership will construct a 10 MMgy biodiesel plant in Fulton, N.Y.-the first for the state-and production is scheduled for mid-2007. The plant was formerly a project between HEB and NextGen Fuel Inc., but it traded hands when GSAF acquired NextGen Fuel in November 2006.

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GS AgriFuels to develop former NextGen project

Instrumentation maker PerkinElmer Inc. recently announced the availability of its new biofuels brochure, a tool designed to assist both start-up and established labs identify means to navigate through the montage of specifications and methods of analysis for biodiesel or ethanol. The eight-page brochure outlines what's needed to meet U.S. ASTM or European EN standards, in addition to methodological comparisons of bio-content analysis (for determining biodiesel content in blended fuel), information on analysis of inorganic material (potassium, magnesium or calcium), and much more. Visit <a target="_blank" href="http://www.perkinelmer.com/biofuelbrochure">www.perkinelmer.com/biofuelbrochure</a> to download the leaflet.

PerkinElmer biofuels analysis brochure available

Bunge North America, a division of Bunge Ltd., said it will start crushing 240,000 metric tons (about 265,000 tons) of canola per year at its plant in Hamilton, Ontario, beginning in December 2007. As the demand for biodiesel has increased, so has the need for low saturated fat vegetable oils in the food industry, including canola. Bunge's plant will also continue to process soybeans. It isn't clear whether the increase in production will create additional jobs.

Bunge starts canola crush in Ontario

Locomotives haul passengers across the country and railcars across industrial sites. Their uses are as diverse as their loads and the many companies that operate them. Major railroad companies, short lines, passenger excursion trains and industrial switch engines all have one thing in common: Those that are powered by diesel use incredible amounts of the fuel. If the biodiesel industry can prove its utility in locomotive engines and demonstrate cost effectiveness, it could create a new market for the renewable fuel. 
 
 In May 2004, the U.S. EPA published the Clean Air Nonroad Diesel Rule, designed to dramatically reduce soot and emissions from construction, agricultural and industrial diesel-powered equipment. Locomotive and marine engines were exempted from certain engine modification requirements in the rule (the EPA recently proposed a program specific to these engines). However, locomotive and marine engines are required to comply with the fuel section of the 2004 ruling. According to the EPA, the rule reduces nonroad diesel fuel sulfur levels in two steps.
 
 Locomotive and marine diesel fuel will first be reduced from uncontrolled levels to the low-sulfur diesel level of 500 parts per million (ppm) starting in June 2007, and the second step to ultra-low sulfur diesel (15 ppm cap) will go into effect in June 2012 (all other nonroad diesel engines must comply at the 15 ppm level in June 2010). The decreased lubricity of low-sulfur diesel could be an opportunity for the biodiesel industry to access this market. "Indications are that low concentrations of biodiesel might be sufficient to raise the lubricity to acceptable levels," the EPA ruling reads. "Thus, we believe that biodiesel is a feasible technology that could help support today's clean diesel fuel program."
 
 Regardless of the EPA's endorsement, the rail industry hasn't embraced biodiesel. In fact, it's difficult to even find companies that are using it for these applications. One short line that is using biodiesel blends is Minnesota Prairie Line Inc. (MPL) a wholly owned subsidiary of the Twin Cities & Western Railroad based in Glencoe, Minn. MPL is the agent and operator of 94 miles of track between Norwood and Hanley Falls, Minn., which is owned by the Minnesota Valley Regional Railroad Authority.
 

 MPL began using B2 in its two Caterpillar locomotives in 2005, according to Senior Vice President and General Manager Mark Wegner. MPL runs through Redwood Falls, Minn., where biodiesel producer FUMPA Biofuels is located. After encouragement from Redwood County Commissioner Gene Short, the rail, which was already hauling FUMPA biodiesel, agreed to use biodiesel blends if it could get a waiver from Caterpillar, which took nine months.
 
 In 2006, the rail used variations between B2 and B10, Wegner says. In that year, the railroad consumed 114,000 gallons of blended diesel fuel, of which 5,700 gallons were biodiesel. MPL only uses biodiesel blends when it's priced competitively, Wegner says, which is about 20 percent of the time. Before MPL started using biodiesel, the company specified the standards it required to its fuel vendors. "We're proud to say that we have no problems using biodiesel," he says, even when Minnesota had problems with off-spec biodiesel in the winter of 2005-'06.
 
 Tennessee's Locomotion
 The opportunity to expand the use of biodiesel hasn't gone unnoticed by some renewable fuel proponents. Jonathan Overly, executive director of the East Tennessee Clean Fuels Coalition (ETCFC), says he's working with six different companies to encourage them to switch to biodiesel blends. He wants east Tennessee to be the hub for biodiesel use in locomotive engines. 
 
 The ETCFC focuses on a variety of specific markets, Overly says. "We are spending some time and effort trying to diversify biodiesel use in the area so we have many sectors using biodiesel in the community," he says. His efforts are paying off. Last year, there were 2 million gallons of biodiesel consumed in east Tennessee, and that's not counting the rail effort, he says.
 
 At least one company, Gerdau Ameristeel Inc. in Knoxville, Tenn., has switched to using biodiesel blends in its locomotive engines. On Oct. 18, 2006, the company switched its diesel fleet of nearly 30 engines to a B5 blend. Reliability Engineer Bruce Parker was the force behind the switch. He also notes that the Knoxville mill was the first of Gerdau Ameristeel's North American plants to use B5. 
 
 Parker says he plans to increase the entire fleet to higher biodiesel blends. Gerdau Ameristeel owns two track mobiles and leases a full-size switch engine. The company it leases from had no problem with the B5, but Parker says the company must be convinced with data and usage history before the mill is approved to use higher blends. "They're holding back at the moment, but I think we'll convince them to move up," he says. "Particularly in the rail industry, they want hard facts. We have to gradually gather facts on the usage we have on diesel engines and demonstrate the fact that there are no maintenance problems, and that it is very cost effective."
 
 So far, Overly says Gerdau Ameristeel's switch is the first known use of biodiesel in rail in the southeast United States, per his checking with other Clean Cities coalitions in the South. He doesn't want the movement to stop there, however which is why he approached other companies in east Tennessee about using biodiesel blends. He has targeted companies that run short tourist lines or those that use locomotive engines within their industrial complex, such as Gerdau Ameristeel. Overly started promoting the rail use of biodiesel a couple years ago, but it wasn't until late 2006-when Gerdau Ameristeel made the switch-that the issue gained momentum. "They brought this issue to the forefront, and we helped push it over the edge," Overly says. "Now we're getting connections to several others. We're tapping into the right contacts to get things going."
 
 Another industrial user of biodiesel is Eastman Chemical Co. in Kingsport, Tenn. It switched to B10 in the winter months and B30 the rest of the year in its 350 diesel engines. Fleet Manager Darren Curtis says the chemical company switched to biodiesel for environmental reasons-biodiesel helps the company meet air attainment laws. Eastman also felt it had a responsibility as a major industry to set the pace.

 
 The only engines that don't run on biodiesel are the four Electromotive Diesel Inc. (EMD) switch cars Eastman uses to transport materials on the 40 miles of track within its complex. EMD locomotives are exempted because they are contracted from another company, Curtis explains. However, he says his company just started working with that company late last year. "They seem to be open to the idea of at least starting out at a low blend," Curtis says. "I think what it's going to take is research-providing them information about other companies that are using it." He hopes that within the next month he'll be able to provide sufficient evidence for the rail company to feel comfortable with Eastman using biodiesel blends in the locomotives.
 
 Overly has also initiated a discussion about biodiesel use with the Tennessee Valley Railroad in Chattanooga. The company operates its 12 EMD locomotives on a seasonal basis as a tourist scenic rail excursion. This small operation budgets for up to 30,000 gallons of diesel fuel per year, according to company President Tim Andrews. 
 
 Andrews is hesitant to try biodiesel in his company's engines because the effect on the engines hasn't been demonstrated. "I don't know if enough research has been done," he says, adding that he's waiting to see what the rail industry, as a whole does. 
 
 "At the face of it, there shouldn't be any issues, but there hasn't been very much experience," Andrews says. "Once it's proven to us that there isn't a maintenance or downside issue then sure, we're willing to do what we can for air quality."
 
 Getting the proof that biodiesel works in rail applications seems to be a recurring theme. However, there are other issues that are unique to the rail industry, such as supply. The rail industry goes through a lot of diesel. "Are they able to get it in quantities in key fueling locations they need?" Andrews asks. "If you walked into Chattanooga and said you wanted 1 million gallons of biodiesel per day, you couldn't find it. No one is using the volumes that the rail is using. There is a supply and demand issue, and that affects price as well. You're talking millions and millions of gallons. Even a penny per gallon makes a big difference in cost."
 
 Also unique is the fact that the engines are made using copper, which is more flexible than steel and can better handle the vibrations. So railroad companies must know how biodiesel reacts to the copper in these engines.
 
 Waivers from the engine manufacturers may help, and Wegner says the waiver is very important. He explains that the cost of locomotives-$1.5 million to $2 million-can be cost prohibitive when taking risks. "If the manufacturer says, 'Don't use biodiesel,' they won't use biodiesel," Wegner says. "They don't want a $2 million asset that the manufacturer won't support."
 
 EMD has issued a warranty statement regarding biodiesel use in its engines. "It is the responsibility of the user to obtain the proper local, regional, and/or national exemptions required for the use of biodiesel in any emission-regulated EMD engine," the statement reads. "EMD does not approve or prohibit the use of biodiesel fuels or biodiesel blends with distillate diesel fuel."
 

 Proof may have to come from field testing. "Someone using it a long time would have to prove that it doesn't negatively change the lifecycle and its components," Andrews says. "Unlike the trucking industry-where a lot has been tested-in following the literature of the railroad, I just don't see any real evidence of commercial trials."
 
 Major railroad companies aren't likely to conduct commercial trials, leaving it up to the industrial sites and short lines to open the market to biodiesel. "Short lines are more on the edge," Wegner says. "We're willing to try innovative things. We can do it in a controlled environment." 
 
 Curtis thinks these issues don't fully explain why the rail industry hasn't embraced biodiesel. He speculates that biodiesel proponents may have ignored the rail industry, thinking that a train is nothing like a tractor-trailer. "But (a locomotive) is a diesel powered engine and uses diesel fuel," he says. 
 
 Perhaps it's time to get these engines all aboard. 
 
 Anduin Kirkbride McElroy is a Biodiesel Magazine staff writer. Reach her at (701) 746-8385 or <a href=mailto:"amcelroy@bbibiofuels.com">amcelroy@bbibiofuels.com</a>.

Minnesota Prairie Line Inc. began using B2 in its locomotives in 2005 and now uses blends up to B10.

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Minnesota Prairie Line Inc. has had no problems using biodiesel, even in the winter of 2005-’06 when Minnesota was experiencing issues with off-spec product.

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Gerdau Ameristeel in Knoxville, Tenn, uses B5 in all of its diesel-powered engines, including two track mobiles and a switch car.

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Railroad companies have been slow to embrace biodiesel as a fuel for locomotives. Once the U.S. EPA's low-sulfur diesel ruling takes hold in June, however, the industry may be more apt to make the switch.

Railroad Switch

New York-based NexGen Biofuels, Israeli company Healthcare Technologies Ltd. and its largest shareholder Gamida for Life B.V. have participated in a reverse merger, in which Healthcare Technologies will purchase NexGen's assets and sell its current business. For NexGen, which has proposed several biodiesel and ethanol production projects, the transaction will be a fast track to becoming publicly traded on NASDAQ. NexGen COO Jim McAlinden told Biodiesel Magazine that NexGen anticipates a spring groundbreaking for its biodiesel plant in Council Bluffs, Iowa, and its ethanol plant in Red Oaks, Iowa. The company has options for ethanol plants at three other sites in Wisconsin, Ohio and Indiana.

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NexGen Biofuels gains in reverse merger

After completing a reverse merger and placing $25 million in common stock through private funding, Kreido Laboratories has joined the publicly held Gemwood Productions Inc. to form Kreido Biofuels Inc. Kreido Biofuels will develop, own and manage biodiesel plants, as well as license its patented "process intensification technology," which the company said can rapidly scale-up production capabilities of existing facilities. Kreido Biofuels said it has three biodiesel plants under development at various "existing liquid handling facilities" in the Midwest and Southeast. The company expects these plants to produce a combined 100 MMgy by the end of 2008.

Kreido Laboratories forms biofuels entity through merger

John Deere has expanded the content on its Web site to include information on biodiesel and other biofuels to provide farmers and other interested parties with detailed information. The site includes John Deere's position on how these fuels can be most effectively produced and used, the company said. 

 
 The Web site also features a detailed biofuels reference report by Don Borgman, company director of agricultural industry relations, which covers the historical context of biofuels growth and addresses misconceptions regarding energy use and efficiency in U.S. agriculture. The information can be found at <a target="_blank" href="http://www.johndeere.com/ag">www.johndeere.com/ag</a>.

John Deere adds biodiesel report, video to Web site

TransMontaigne Inc., a refined petroleum products marketing and distribution company that handles biodiesel, has begun selling products through the trademarked Data Transmission Network Exchange, an online fuel transaction platform offered by DTN, a business-to-business provider of real-time market, news and weather information services. TransMontaigne is using the DTN Exchange in select terminals in Georgia, North Carolina and Virginia, according to DTN. TransMontaigne has used DTN services in the past, but this is the first time it has utilized the DTN Exchange.

TransMontaigne selects DTN Exchange

The Goldman Sachs Center for Environmental Markets has awarded a grant to World Resources Institute (WRI) for a two-year project studying the viability of technologies designed to reduce greenhouse gas emissions and diversify the world's energy sources through biofuels, coal gasification and other processes. The amount of the award was not disclosed at press time.
 
 The grant is part of Goldman Sachs' $2.3 million research grant program focused on finding solutions to climate change.

Goldman Sachs awards grant to WRI

Mark Vermeer and Pat Lappe, both formerly of Renewable Energy Group, have recently joined Progressive Energies Inc., a biodiesel project development company that guides clients from "inception to implementation." Lappe is the COO, while Vermeer is the director of construction services. Before joining Progressive Energies, Vermeer was previously employed by PowerShift Group Holdings. Progressive Energies Inc. is currently working on a biodiesel project in St. Joseph, Mo., along with various other projects, Lappe told Biodiesel Magazine.

Vermeer, Lappe join PEI

Archer Daniels Midland Co. (ADM) announced two controller appointments recently. Dan Walker was named operations controller. Most recently, he was the senior group controller for ADM's Oilseed Crushing division. He has worked with ADM since 1987 and held various positions in soybean meal merchandising and operations accounting. Nick Lawless replaced Walker as the senior group controller for the oilseed processing division. Lawless joined ADM in 1986 and held various positions in operations accounting, most recently as the group controller for the specialty food, feed and natural health divisions.

ADM names two to new positions

Steve Grohs has been named regional sales manager of biofuels for Univar USA Inc. He will be responsible for the North Central Region, assuming multi-plant account responsibility and helping to further develop, coordinate and implement strategies and tactics for the biofuels industry, the fastest-growing sector in that region. Grohs has worked with Univar since 1998 in the Omaha, Neb., district.

Univar names Grohs regional sales manager

Karl Watkin started D1 Oils PLC with several partners in the late 1990s on the cusp of the biodiesel buzz in Europe. Although an entrepreneur's nature is to eagerly jump into lucrative projects and quickly move on, Watkin soon discovered that he needed to take his time with this project. Watkin, who served as chairman and CEO of D1 until Jan. 7 and is still an active board member, began the company as a simple refinery to produce biodiesel from rapeseed, D1 Communications Director Graham Prince, DI says. Then it blossomed into a multi-pronged, worldwide biodiesel business after the discovery of a less expensive feedstock called Jatropha curcas. 
 
 Jatropha is a fast-growing tree that, depending on how the plants are started, can take up to one to five years mature. The trees can be started using three different methods, according to Abhishek Maharshi, CEO of the Centre for Jatropha Promotion and Biodiesel (CJP) based in Rajasthan, India. Plants raised through the standard seedling method start yielding fruit in the second year, direct seeding plants bear fruit after three years, whereas plants propagated by stem cuttings may yield in the first year, Maharshi says.
 
 While D1 waits for its jatropha plantations to mature, the business designs, builds, owns, markets and operates refineries. It also sources, transports and trades seeds and seedlings, seedcake, crude vegetable oils, and biodiesel. 
 
 Not long after Watkin and his business partners formed D1 and developed the design for the D 120 basic refinery module-an 8,000 metric-ton-per-year (2.5 MMgy) biodiesel plant that's manufactured in pieces for easy transport and shipment-rapeseed and soy oil prices began to rise. Through various contacts, Watkin and Alex Worrall, another D1 investor, identified jatropha as a possible alternative to the conventional feedstocks.
 
 "Essentially, the aim was to get a fuel that we could actually get at a low cost, and in high volume that wasn't going to be subject to price pressures," Prince says. "The reason that jatropha has that characteristic is that the oil is inedible and there is no way that it would ever be used as a cooking oil or a protein source for people." The toxin called curcin makes the oil unfit for consumption.
 

 There are other key attributes that make jatropha an attractive feedstock, Prince says. Jatropha is a tree that grows three to five meters (10 to 16 feet) tall. The trees bear fruit that contain seeds, which are crushed to produce oil. The tree has a life span of up to 50 years, it grows well on marginal soil, and there's little preprocessing work that needs to be done before the oil is refined, Prince says.
 
 No one really knows for sure when and where jatropha originated. Research shows that it was most likely first used by Native American communities in pre-Colombian times in Mexico, Prince says. The word jatropha means "doctor food," and is derived from the Greek words iatrof, which means doctor, and tropha, or food. It was given the name because of its medicinal properties, Prince explains. It was also commonly known as "physic nut" for its healing powers as an antiseptic. The wood and bark of the plant were used to produce a dye, and the seeds were crushed into oil that was used to fuel primitive wick lamps. Later, it was used as a demarcate crop to mark boundaries to keep grazing animals like cows and goats from wandering into and eating more valuable food crops, Prince says. Jatropha likely spread from South and Central America to where it grows abundantly today in areas of Africa, India and Southeast Asia by the Portuguese who brought seeds aboard for medicine as they sailed the Triangle Trade to buy and sell slaves and sugar, Prince says.
 
 No one had explored the use of jatropha as a biodiesel fuel source until World War II when the oil embargo prompted the Japanese and Germans to experiment with a number of oil substitutes, such as coal and synthetic petrol. Following the war, cheap oil prices caused all interest in the crop to vanish until the oil shock of the 1970s. At that time, the United Nations began research, and plantations were established in Nicaragua. Those plantations still stand today despite the Contra War, hurricanes and poor crop management, Prince says. "They are actually one of the main sources of data for the yields," he says. "We figure if the plantations there, which haven't really been looked after and have sustained a fair amount of damage and neglect, can still produce good yields, with a bit of crop management we should be on our way to getting better performance out of it," Prince says.
 
 Jatropha stacks up nicely compared with other feedstocks, according to data from the CJP. Maharshi says soybeans and rapeseed have a relatively low oil yield compared with jatropha. About 375 kilograms per hectare of soybeans in the United States (280 gallons per acre) and 1,000 kilograms per hectare of rapeseed in Europe (740 gallons per acre) to 3,000 kilograms per hectare of jatropha (2,226 gallons per acre) in India. Good planning, quality planting material, standardized agronomy practices and good crop management could increase yields, Maharshi says.
 
 Around the World
 With good yields and cheap prices, jatropha made sense economically as a biodiesel feedstock, but as D1 associates delved deeper, they realized there was another plus-its sustainability benefits. Prince says Watkin began to get excited when he considered just "what the effect could be on the economies of the developing countries planting this stuff in terms of creating jobs … and revitalizing agricultural communities that in some places had been driven out of business by highly subsidized food imports from the U.S. and the EU." That became the deciding factor in naming jatropha D1's primary feedstock, Prince says.
 
 Currently, D1 produces biodiesel from soy oil in anticipation of the harvest of the 125,000 hectares (309,000 acres) of jatropha it has planted. These crops, which D1 has contracted with various growers in India and Africa to grow, will be ready some time next year, Prince says. D1's primary feedstock is being grown in northern India, but the company also has agreements in central India and Zambia. It also has a plantation in Swaziland as part of an entrepreneurship involving D1 and Worrall's new biomass electricity generation business, Helius Energy PLC.
 
 Following D1's lead in India and Africa, a number of countries are investing in jatropha. According to the CJP, the Indian petroleum ministry estimates that, by 2009, India will have approximately 3.1 million hectares (7.7 million acres) planted to jatropha. Others countries, such as Namibia, Kenya, Indonesia, Myanmar, Nigeria, The Philippines, Madagascar, Panama and Mexico are either already growing the crop or have plans to begin producing it in the near future.
 
 The one thing that's holding back more widespread jatropha production is that currently there are no mechanical harvesting methods. The plants must be picked by hand during the four- to five-month harvest period, Prince says. Due to its labor-intensive nature and associated costs, even if jatropha could grow in the drier areas of developed countries, such as parts of California, it's not economical. However, it might be more economical once a mechanical harvesting method is developed, Prince says. Harvesting the crop, makes more economic sense in developing countries where the labor is cheaper, Maharshi says.

 
 Beyond the basic use of jatropha for biodiesel fuel, profits may be increased from the sale of coproducts, Prince says. The seed can be used to make soap, candles, pesticides and a natural fertilizer. However, "if we could identify where the toxin is, whether it's in the seed or a particular part of the seed or even in the seed casing, it might be possible to detoxify it to the point that we can process the meal seed cake for animal feed," Prince says. 
 
 As the excitement over the potential for this green gold intensifies, however, one can't help but approach with caution. Although not an issue as of yet, the food-versus-fuel argument is a valid concern. Could jatropha displace needed food crops, such as groundnuts and sorghum, as farmers rush to make a quick buck? Jatropha production certainly is attractive based on its yield alone. If it becomes a commercially grown crop, which it seems poised to do, there could be a backlash. Prince doesn't believe jatropha competes with food crops, however, as the countries in which jatropha can be grown have no shortage of land. Most of the land that's not being used as cropland was cleared of forest years ago and was used either for grazing or cash crop production. That land was later abandoned after the soil was stripped of its nutrients. Other land that's not currently being farmed is unsuitable for crop production because of climate change. For example, in Swaziland, dry conditions have made it impossible to grow sugar in some areas where it was once produced in abundance, Prince says. "There is no point in providing either developing or developed countries with biofuels whose very production creates more problems in terms of environmental destruction than it consoles," Prince says. "I think jatropha has the flexibility of the sort of land where it can grow that it answers [the food-versus-fuel] question. "It's very early, but it's looking very promising," he adds. 
 
 Lindsey Irwin is a Biodiesel Magazine staff writer. Reach her at <a href=mailto:"lirwin@bbibiofuels.com">lirwin@bbibiofuels.com</a> or (701) 746-8385.

Jatropha seeds yield more oil than soybeans and rapeseed

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Jatropha trees thrive in areas of India and Africa due to their ability to grow with minimal moisture and on poor soil.

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Similar to the growth pattern of the plant itself, interest in developing jatropha as a feedstock for biodiesel production is growing like a weed. The contracts that have been penned between companies like U.K.-based D1 Oils PLC and farmers in India and Africa are stimulating agricultural communities in some of the poorest nations in the world.

Growing Green, Growing Hope

It was a sunny summer day in Fort Collins, Colo., and a group of students were busily laying 70-foot-long plastic tubing across the parking lot of the Engine and Energy Conversion Laboratory (EECL) at Colorado State University (CSU). This wasn't some prank or fraternity stunt but a step forward in the development of a new feedstock for biodiesel.
 
 The plastic tubes were a one-fifth-scale demonstration of a photobioreactor designed by Solix Biofuels Inc. The lab at CSU is partnering with Solix, a start-up company based in Boulder, Colo., to commercialize a system that, if successful, would create a low-cost feedstock for biodiesel production while removing carbon dioxide and nitrogen oxides from power plant emissions. 
 Solix plans to develop an algae bioreactor pilot plant in conjunction with a local brewery in 2007 and has plans to scale that up to commercial production in the coming years. 
 
 The photobioreactor system was originally developed by Jim Sears, who approached EECL researchers in 2005 with an idea that dated back to the energy crisis of the 1970s: Use oil-rich species of algae to provide feedstock for biodiesel production. Sears and the researchers scaled up his design for a photobioreactor, which is basically a tank to grow algae, to an industrial size while keeping costs low enough to make the system financially viable. Together, Sears and CSU's Doug Henston and Bryan Willson created Solix. Henston is CEO of the company, and Willson is chief technology officer. CSU holds an equity position in Solix.
 

 Oil-rich strains of algae have long been recognized as a potential source of feedstock for biodiesel production. The National Renewable Energy Laboratory (NREL) operated its Aquatic Species Program from the late 1970s to 1996 and identified more than 300 algae strains with economic potential. Some of these algae contain more than 50 percent oil by dry weight and have the potential to produce thousands of gallons of oil per acre, as opposed to a few hundred gallons that can be obtained from an acre of conventional oilseed crops. 
 
 "It's not a new technology," Henston says. "NREL, for the better part of 20 years, demonstrated the technology. What's new is essentially 'how do you commercialize this?' How do you develop this so the numbers work out, so there is a compelling business case for developers, for biodiesel producers, for investors, for power plants and for ethanol refiners?"
 
 However, producing an economical product from algae was more complicated than it sounded. "Many people look at the issue of raising algae for biofuels and ask 'How tough can that be?' because you can't keep algae out of ponds or swimming pools," Willson says. "Under natural conditions, algae doesn't grow at a particularly high rate and, in general, doesn't accumulate high amounts of lipids. If you go through the NREL report, you sort of get the idea that you order the right algae, put it in a tank, bubble in carbon dioxide, and you'll be getting oil yields of 10,000 gallons per acre per year. It turns out there are just an incredible number of knobs to turn. Realistically it's very challenging." 
 
 NREL tried to breed its algae strains in open ponds in southwestern United States. While high-oil strains of algae are productive, they're not particularly robust. Wild algae carried by birds or the wind would contaminate the ponds. "What they found was the local 'mongrel' algae outcompeted the 'thoroughbred' strains from other areas," Willson says. 
 
 Scaling it Up
 Growing the algae in closed tanks seemed to be a natural solution to the contamination problem. However, the cost of material, equipment and energy, combined with lower oil prices in the 1980s and '90s made such projects uneconomical. "We believe that what we need to be successful are production systems that allow us to grow existing algae strains at high rates and high lipid contents at low cost," Willson says. "We recognize that, to get high growth rates and high yields, we need to use certain strains of algae."
 
 To keep costs down, Solix's system uses long tubes made of relatively low-cost plastic instead of rigid tanks. Water-weighted rollers act as peristaltic pumps to keep water and nutrients flowing within the tubes. The mixing action allows Solix to make its bioreactor 12 inches deep and still provide light to all the algae. "Systems using glass, stainless steel, rigid plastic tubes-from our economic modeling-all of those don't appear to meet the capital cost requirements that we think we need to meet," Willson says. "So we like to say what we've been working on has been closed-reactor performance at open-reactor costs."
 
 The nutrients within the bioreactor must be carefully monitored to encourage the maximum growth and lipid production from the algae. Like all plants, algae can use carbon dioxide for food in the presence of light. In fact, enriching the growing media with carbon dioxide encourages the production of desirable oils and speeds growth. "The production facilities will have a unique feature in that they will be tied necessarily to point sources of CO2 production, such as power plants or ethanol production," Henston says. "The reason is driven by the technology. We can't just pull CO2 out of the atmosphere. We can't get enough CO2 to produce our algae that way. So, our large production facilities will be centered around greenhouse gas emitters."
 
 Solix's pilot plant, which is slated for construction in 2007, will use carbon dioxide from New Belgium Brewing Company in Fort Collins. The pilot project will include a 350-foot-long by 50-foot-wide unit, covering about one-third of an acre. Carbon dioxide from the brewery's fermentation vats, and exhaust from its boilers, will be used to fertilize the bioreactor.

 
 The goal of the project is to test how well the technology scales to full size, in order to produce enough algae to work on extracting the oil and other valuable coproducts. Willson expects the oil content of the algae in the commercial-scale systems to be about 30 percent. The remainder will contain sugars and cellulose that can be used for ethanol production, and proteins that could be valuable as livestock feed. "This is a many-faceted problem," Willson says. "You have lots of issues related to biology: which algae to use, what media and environment to grow them in, how to entice them to create lipid. On the other side, we have to deal with lots of issues related to engineering in terms of the design of the photobioreactors, design of harvesting and extraction systems, processing the lipids, etc."
 
 If all goes well, Solix could be on track to begin work on a commercial-sized project in 2008. Once it's established, Solix will license its technology to get it to the marketplace quickly. "Where we see this going is the licensing of the technology so we can get as many production facilities out in the market as possible," Henston says. "In order to demonstrate the technology to the market, I use a McDonalds' analogy. Ray Kroc had the idea for the restaurant, built a few restaurants himself to demonstrate it and started licensing the technology, so to speak."
 
 Other Players
 Solix isn't alone in the algae game. At least six strong contenders are working on other algae technologies, and some are working on their own pilot plants, "There are many different technologies," Willson says. "One of the reasons so many people are looking at this is because of the potential of such high benefits."
 
 Greenfuel Technologies Corp. in Cambridge, Mass., has been working on algae production since 2001, says GreenFuel CEO Cary Bullock. In 2004, it installed an algae photobioreactor on a 20-megawatt cogeneration plant at the Massachusetts Institute of Technology. In 2006, it completed construction of an engineering-scale plant at a 1,040 megawatt, coal-fired power plant in Arizona, which will be starting production shortly. "We are trying to get the engineering-scale things done in 2007 so we can start commercial-scale facilities in late 2007 and 2008," Bullock says. "Hopefully, we will have those operational in late 2008."
 
 Researchers with Utah State University's Biodiesel Initiative Group are working on a system that would use vertical photobioreactors to grow algae on polymer membranes, Project Director Byard Wood says. The novel approach in this system is that it uses light-gathering parabolic reflectors to concentrate sunlight on fiber optics. The fiber optics pipe the light into the biorefinery. Wood says one square meter of parabolic mirror can illuminate 10 square meters of algae. The project is examining a number of complementary technologies that could be incorporated, such as anaerobic digestion of cattle manure, to create an integrated biofuels production facility. "The pilot plant should be up and running within two years," Wood says. "The first stage will be built by the end of this year and the second stage by the end of next year. You've got to have a large enough production facility to evaluate the economics of the system. That's what we intend to do."
 
 The Center of Excellence for Hazardous Materials Management, a nonprofit organization located in Carlsbad, N.M., is looking at refining the open-pond concept, says project manager Ron Reeves. The project uses brine from salt-laden aquifers to raise marine species of algae. Since there is little open salt water in New Mexico, the likelihood of contamination is reduced. In 2007, the research center will scale up its experiments by building a 100-acre pond. Its bench-scale demonstrations show potential production in line with NREL results of 5,000 to 15,000 gallons of algae oil per acre per year, Reeves says. The project will provide algae oil to a 3 MMgy biodiesel plant in Carlsbad that is being built by Cetane Energy. "We are on an aggressive schedule," Reeves says. "We believe in being very aggressive and very proactive in everything we do. We are not risk averse. We are willing to gamble and take chances, and have been very successful in doing so."
 
 Aquaflow Bionomic Corp. of New Zealand takes another approach entirely to the contamination problem. It works with native algae that grow in sewage pond discharge, according to the company's prospectus. In 2006, the company extracted lipids from the native algae and used it to make biodiesel. It demonstrated the results publicly by using a 5 percent blend of algae biodiesel to fuel a car that was driven by David Parker, New Zealand's minister for climate change. 
 

 More information on projects involving algae can be found at:
 <a target="_blank" href="http://www.solixbiofuels.com/">www.solixbiofuels.com/</a>
 <a target="_blank" href="http://www.greenfuelonline.com">www.greenfuelonline.com</a>
 <a target="_blank" href="http://www.usu.edu/research/news/newsdetail.cfm?ID=317">www.usu.edu/research/news/newsdetail.cfm?ID=317</a>
 <a target="_blank" href="http://www.cehmm.org/">www.cehmm.org/</a>
 <a target="_blank" href="http://www.aquaflowgroup.com/Home ">www.aquaflowgroup.com/Home </a> 		
 
 Jerry W. Kram is an Biodiesel Magazine staff writer. Reach him <a href=mailto:"jkram@bbibiofuels.com">jkram@bbibiofuels.com</a> or (701) 746-8385.

Students at the Engine and Energy Conversion Laboratory load the initial algae culture into the photobioreactor.

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Brian Willson, chief technology officer of Solix Biofuels, inspects an algae culture.

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Water-weighted rollers act as peristaltic pumps for Solix’s photobioreactor, keeping the algae cultures in motion. The white material aids temperature control.

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The National Renewable Energy Laboratory's Aquatic Species Program identified about 300 species of algae that have the potential to produce thousands of gallons of biodiesel per acre. Researchers and entrepreneurs are on the cusp of bringing this promising technology to commercial production.

Algae on the Edge

Specialty chemicals company <a target="_blank" href="http://www.degussa-biodiesel.com/">Degussa</a> is considering plans to build a 60,000 metric-ton facility at its existing Mobile, Ala., site for the production of alkoxides, which are used to create catalyst solutions in biodiesel production. The project is aimed at supplying the rapidly growing North American biodiesel market.
 	
 "With this facility, we are consistently pursuing our strategy of strengthening businesses with leading positions in attractive markets," said Klaus Engel, chairman of Degussa's management board. "The intensive debate on climate protection leads us to expect a growth rate well into double digits for the biodiesel market. This applies particularly well for the (United States)."
 	
 The project has been submitted to the company board for approval. A final decision to build the facility is expected in mid-2007. The construction timeline would allow Degussa to supply its North American customers in the second half of 2008.
 	
 Degussa currently supplies its worldwide biodiesel catalyst demand through its facility in Lulsdorf, Germany. Degussa is a subsidiary of Essen, Germany-based RAG Aktiengesellschaft. "An additional production facility in North America is desirable in the interests of speed and customer proximity," said Thomas Haeberle, head of Degussa's Building Blocks business unit.
 	
 Although alkoxides can be used for numerous applications, the Mobile plant would primarily serve the biodiesel market. The U.S. industry produced an estimated 225 MMgy of biodiesel in 2006. More than 1 billion gallons of production capacity is projected to come on line within the next 12-18 months, according to figures reported to Biodiesel Magazine.
 	
 Degussa has previously said that alkoxide catalyst solutions are mainly used in large-scale plants. Alkoxide catalysts are hygroscopic, which lends them well to water-free processes. The catalysts are used in solution rather than solid form. Degussa said alkoxide catalysts are typically used in a 30 percent sodium methylate solution or 32 percent potassium methylate solution.
 
 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. CDT Thursday, March 29, 2007

Degussa considering catalyst plant in Alabama

It's a simple formula-more acres equal more corn. Depending on favorable weather, the 2007 growing season promises to provide a bumper crop of corn production, according to the latest <a href="http://usda.mannlib.cornell.edu/usda/current/ProsPlan/ProsPlan-03-30-2007.pdf">planting projections</a> released today by the USDA.
 	
 While the results were widely expected, the increase in corn acres and related decrease in soybean acres was extreme. The USDA reported that corn growers intend to plant 90.5 million acres in 2007, up 15 percent from 2006 and 11 percent higher than 2005. If realized it would be the highest acreage since 1944 when 95.5 million acres were planted.
 	
 Corn production in 2006 was the third-largest on record, but slightly less than 2005 numbers, according to the USDA Crop Production 2006 Summary. The harvest brought in 10.5 billion bushels, 5 percent less than 2005 and 11 percent less than the record set in 2004. Fewer acres were planted in 2006 due to higher fuel and fertilizer costs. Lower than average precipitation also made a dent in overall harvest. 
 	
 The jump in 2007 corn acres is mainly attributed to rising corn prices affected by a massive increase in fuel ethanol production. The U.S. ethanol industry produced 4.86 billion gallons of fuel in 2006, according to the Renewable Fuels Association (RFA). The industry is expected to have more than 8 billion gallons of production capacity on line within the next 12 to 18 months. 
 	
 Soybean acres are projected to suffer due to the increase in corn. Illinois may provide the best example. The state's farmers intend to plant a record high 12.9 million acres of corn. The largest decrease in soy acres is expected from Illinois, which will plant 1.4 million less acres than 2006, according to the USDA.
 	
 Meanwhile, soybean producers intend to plant 67.1 million acres nationwide, which is down 11 percent from 2006. If realized, it would be the lowest planted area since 1996.
 	

 North Dakota and Minnesota are expected to plant record corn acres for each state. Iowa continues to lead the nation with a projected 13.9 million acres, up 1.3 million acres from 2006.
 	
 The USDA's figures are up from even early last month. USDA Chief Economist Keith Collins told attendees at the March 1 U.S. Ag Outlook Forum in Washington, D.C., that corn acres was expected to reach 87 million acres. He said the increase in acreage was expected to lead to a record net crop of 12.2 million bushels. 
 	
 Collins' speech came two weeks after the USDA released its <a href="http://www.ers.usda.gov/publications/oce071/">10-year agricultural baseline</a> estimates. The estimates projected continued ethanol expansion through 2009/2010. By the end of the projections, ethanol production exceeds 12 billion gallons per year, using more than 4.3 billion bushels of corn. The baseline also projects corn planted acres to level off around 90 million acres by 2010.
 	
 "The market is working," said RFA President Bob Dinneen. "Last fall, farmers received the signal that more corn for ethanol, livestock and other uses would be needed, and today we learn they are answering that call. The continued trend of increasing corn yields together with improved efficiency and new technologies in ethanol production and other agricultural industries will mean that American farmers will continue to feed the world while renewably fueling our nation."
 
 Dave Nilles is Online Editor for Biodiesel Magazine. Reach him at dnilles@bbibiofuels.com or (701) 373-0636.
 
 Posted: 9:40 a.m. CDT Friday, March 30, 2007

USDA's latest numbers predict drop in '07 soy acres

The Central American province of Baru, Chiriqui, Panama, received a much-needed socioeconomic boost in September 2006. That's when Houston-based Texas Biodiesel Corp. and Des Moines, Iowa, agribusiness contractor Insta-Pro signed a joint venture agreement to build a palm oil extraction facility and biodiesel plant in the region with intentions to cultivate the province's existing palm oil-rich feedstock and expand its biofuel marketing arm. 

 	
 According to Texas Biodiesel CEO John Autrey, Insta-Pro, a division of Triple F Inc., is currently in the construction phase of its $2.6 million extraction facility that will be located in the Burica region near Port Armuelles, Panama. It will extract approximately 250,000 barrels of palm oil each year on land that was once dedicated to banana plantations. Approximately 1,600 hectares (3,954 acres) of palm oil will be planted in the region while 18,000 hectares (44,478 acres) of new plantations will be created for the new project. Autrey added that the extraction facility would have with potential to extract 450,000 barrels in 2009.
 
 The US$143 million-invested project will also allow Texas Biodiesel and the Cooperative of Associative Oil Palm Producing Enterprises of Chiriqui (COOPEMAPACHI)-a large Panamanian palm oil producer that took over the local government plantations 15 years ago-to both operate the facility under a joint management contract that was signed in November 2006. Texas Biodiesel plans to use the extracted palm oil along with mustard seed and other various vegetable oils supplied by local farming cooperatives and convert it into biodiesel at its 50 MMgy biodiesel plant. According to Autrey, Texas Biodiesel has closed financing for construction of the US$65 million biodiesel refining facility, which is expected to be complete in 17 to 18 months. U.S. Export-Import Bank, along with other private banks, provided financial assistance on the project.
 
 The economic impact of this project will boost the number of workers affiliated with the COOPEMAPACHI from 400 to 2,000-nearly a 400 percent increase. Autrey said supplying the tools in establishing a framework for economic growth on foreign ground is key for Texas Biodiesel and its partners.
 
 "We are open and available to work with other groups and other developing countries to build Insta-Pro extraction facilities because of the fact we are willing to come in as a joint venture partner," Autrey said. "What that does is that from the start that will shift them [local farmers] from growers of feedstocks and then be able to extract it [the palm oil] into the more valuable oil [agri-crude oil]. So, therefore, it significantly impacts the economy and the income potential of the farmers, and it in turn greatly benefits the country." 
 
 Although this is Texas Biodiesel's first Latin American project, Autrey said talks are currently underway in other countries in Central and South America.
 
 Bryan Sims is an Biodiesel Magazine staff writer. Reach him at <a href="mailto:bsims@bbibiofuels.com">bsims@bbibiofuels.com</a> or (701) 746-8385.

 
 Posted: 3:17 p.m. CDT Monday, April 2, 2007

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Texas Biodiesel Corp. and Insta-Pro set to jumpstart Central American biodiesel project

Nova Biosource Fuels Inc. recently announced it has completed a biodiesel off-take agreement with Scott Petroleum Inc. for rights to 50 percent of the biodiesel and glycerin production at Scott Petroleum's 20 MMgy biodiesel plant being built by a Nova subsidiary in Greenville, Miss.
 
 The project is on pace for a July 2007 start-up. Nova Biosource Fuels President J.D. McGraw told BiodieselMagazine.com the plant is expected to be mechanically complete by July 31 and take about a month to fully start-up.
 
 Approximately 50 percent of the process equipment is installed and the terminal's tank farm is 30 percent complete, according to a project spokesman. A rail spur being built on site is also complete.
 
 Construction on the facility started in September 2006. Scott Petroleum is building the plant on an existing 100 MMgy fuel distribution site along the Mississippi River, according to McGraw. He said that Nova will partially fund the multi-feedstock project. Scott Petroleum operates 22 bulk plants throughout Mississippi, Arkansas and Louisiana.
 
 Nova is also developing a biodiesel project in Seneca, Ill., which is expected to reach full-scale construction this month. Seneca Biofuels LLC will produce 60 MMgy. McGraw said initial site work is underway and a concrete pour is expected in April.
 
 Nova previously announced plans for another 60 MMgy plant in Muskogee, Okla. McGraw said land has been acquired and Nova has applied for environmental permits. He added that his company is also considering a project in the Houston area, which is where Nova Biosource Fuels is based.
 
 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: 11:30 a.m. CDT Tuesday, April 3, 2007

March 2007

Business Briefs

GS AgriFuels to develop former NextGen project

PerkinElmer biofuels analysis brochure available

Bunge starts canola crush in Ontario

NexGen Biofuels gains in reverse merger

Kreido Laboratories forms biofuels entity through merger

John Deere adds biodiesel report, video to Web site

TransMontaigne selects DTN Exchange

Goldman Sachs awards grant to WRI

Vermeer, Lappe join PEI

ADM names two to new positions

Univar names Grohs regional sales manager

Columns

Legal Perspective

Editor's Note

NBB In Sight

Featured

The Urbane Powertrain

The Poly-Refinery Plan

Heeding Hydrogenation

Railroad Switch

Growing Green, Growing Hope

Algae on the Edge

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

Business Briefs

GS AgriFuels to develop former NextGen project

PerkinElmer biofuels analysis brochure available

Bunge starts canola crush in Ontario

NexGen Biofuels gains in reverse merger

Kreido Laboratories forms biofuels entity through merger

John Deere adds biodiesel report, video to Web site

TransMontaigne selects DTN Exchange

Goldman Sachs awards grant to WRI

Vermeer, Lappe join PEI

ADM names two to new positions

Univar names Grohs regional sales manager

Columns

Legal Perspective

Editor's Note

NBB In Sight

Featured

The Urbane Powertrain

The Poly-Refinery Plan

Heeding Hydrogenation

Railroad Switch

Growing Green, Growing Hope

Algae on the Edge

March 2007