On April 3, the Internal Revenue Service (IRS) issued notice 2007-37. The Notice states that fuel produced by coprocessing biomass and petroleum feedstocks can qualify for favorable tax incentives provided by the Energy Policy Act of 2005. The notice has sparked debate in Congress, as well as disagreement between the biodiesel and oil industries. 
 
 As part of the 2004 and 2005 legislation, Congress enacted measures to boost the biodiesel industry: 1) the biodiesel fuels credit, which provides a credit of 50 cents per gallon of biodiesel ($1 per gallon for agri-biodiesel), and 2) the small agri-biodiesel producer credit, which provides a 10-cents-per-gallon credit for up to 15 million gallons of a small producer's annual production. 
 
 Additionally, the 2005 Energy Policy Act created the renewable diesel credit, which provides a $1-per-gallon credit for renewable diesel fuels. This credit is the subject of Notice 2007-37; it allows tax credits for renewable diesel fuel derived from biomass using a "thermal depolymerization process." Biomass is defined as any organic material other than oil, natural gas, coal or any product thereof. 
 
 In the notice, the IRS stated that the co-processing of biomass and petroleum feedstocks usually involves the use of catalysts. However, the notice found that neither the 2005 Energy Policy Act nor its legislative history addressed whether a process that uses catalysts is a thermal depolymerization process eligible for the credits. Based on analysis by the U.S. DOE, the IRS concluded that "thermal depolymerization should be defined generically and broadly to include processes that use heat and pressure, with or without the presence of catalysts." As a result, it expanded the definition of "renewable diesel" to include current, conventional petroleum refining processes that will allow oil companies to claim a $1-per-gallon tax credit for renewable diesel fuel produced utilizing existing petroleum refining processes that add raw vegetable oil or animal fats.
 
 Biodiesel Industry
 The National Biodiesel Board (NBB) expressed significant concern over the notice, stating the renewable diesel tax credit was established to help stimulate an emerging industry and technology, not to provide tax incentives for large oil companies. In an April 16 press release, the NBB called the measure "bad energy policy. If Congress lets this stand, our government will be handing over U.S. taxpayer money to some of the richest companies in the world, and it will not provide many of the benefits that the biodiesel tax incentive has given back to America."
 
 Oil Industry Comments
 The oil industry maintains that the notice was correct. It notes the renewable diesel tax credit applies broadly to refining processes that use heat to break polymers, rather than to a specific method of thermal depolymerization. It further stated that the notice will provide opportunities for greater use of vegetable oils and animal fats in the renewable fuels sector.
 

 Congressional Response
 Several members of Congress have agreed with the biodiesel industry. The sponsor of the renewable diesel tax credit provision, Missouri Rep. Roy Blunt, said the original intent was to provide a credit for new technologies used to produce renewable fuels. He expressed concern in a Sept. 7, 2006, letter to Treasury Secretary Henry Paulson that the oil industry's position, and presumably the notice, is at odds with original legislative intent. "Clearly, interpretations that would allow credits to large unintended producers for fuel processed would require a substantial legislative policy change that far exceeds current law and could be very expensive in terms of potential revenue loss," his letter stated. 
 
 In an April 19, Senate Finance Committee hearing, Washington Sen. Maria Cantwell said she and other members of Congress will work to overturn the notice. 
 
 While the outcome of this controversy remains uncertain, it will definitely have wide-reaching implications for the biodiesel and renewable fuels industries. 
 
 Terrance A. Costello and Todd J. Guerrero are members of the Agribusiness & Energy Group at Lindquist & Vennum PLLP, a leading provider of legal assistance on renewable energy projects across the country. For more information, visit <a href="http://www.lindquist.com" target="_blank">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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IRS Ruling on Renewable Diesel Tax Credit Fuels Debate

As environmentalism becomes trendier, words like "sustainability" have become as ubiquitous (and perhaps as meaningless) as "experiencing unusually high call volume." We've been resting on the laurels that as a renewable fuel, biodiesel is inherently sustainable and thus immune to criticism. However, recent challenges to the industry may signal that this assumption no longer holds true. It's time to evaluate what sustainability in biodiesel really means and why we as an industry should care.

 
 I'm talking about social and environmental sustainability, but I would argue that long-term economic sustainability is inextricably linked to the two. (Can you say methyl tertiary-butyl ether?) At its simplest, sustainability means operating a business so that it has positive net social and environmental benefits, as opposed to negative net impacts. How can we produce biodiesel, not for the industry's sake, but for the sake of achieving larger goals like economic development on a local and national scale, energy independence, regional self-sufficiency, cleaner air quality, greater environmental stewardship, and increased energy security? None of these goals conflict with making a profit. Instead, with some creative problem-solving and business savvy, using biodiesel as a means to realize these larger goals may prove to be a lucrative and robust business strategy-and the key to the longevity of our industry.
 
 Sustainable biodiesel production includes practices such as using indigenous feedstocks, scaling production capacity to reflect the limitations of local feedstock resources, local ownership in projects, and minimization of energy inputs and waste outputs. Using local feedstocks drives feedstock diversification, and reduces the financial and environmental costs of transportation. Feedstock diversity insulates industry from bad crop years, reduces the prevalence of mono-cropping, relieves price pressure and fuels the commercialization of new feedstocks. While feedstock availability stifles industry growth, the development of new feedstocks is essential. Correlating production capacity with local resource availability fosters a decentralized production model rather than a consolidated one. This plan not only distributes economic development benefits among more people and more regions (rural, urban, Midwest and beyond), but is also less susceptible to national security disruptions or natural disasters. Local ownership encourages greater accountability (both for fuel quality and health/safety), keeps money in the local economy, and builds goodwill and community buy-in, all of which are always valuable assets. Aside from reducing environmental impact, minimizing waste and energy is common-sense cost-avoidance. 
 
 There is also the other side of the production value chain to consider: the consumer. As evidenced by some stories in the mainstream media, the backlash against biodiesel is real and growing. However, it may be curbed by paying more attention to how we operate. Our focus on soybean oil as feedstock supreme has stirred panicked food-versus-fuel debates. However much truth there is to this perception, promoting feedstock diversity and backing it up with the commercialization of new feedstocks could quiet the oncoming storm. We have invested heavily in branding biodiesel as an American fuel that reduces reliance on foreign oil, supports American farmers and bolsters energy security. However, this hard-won identity is eroded by each report of imported palm oil or distributed foreign biodiesel. How will permitting that new terminal or production plant fare in a climate where there is greater awareness of these issues and the resentment that ensues? What will it do to our bottom line and to the legislator's ear when we are no longer the darling of the American public?
 
 The environmental and social choices we make as business people color our entire industry. If environmental impact alone isn't reason enough to operate in a sustainable manner, consider our industry's staying power and success. 
 
 Emily Bockian Landsburg is manager of Business Development at Philadelphia Fry-o-Diesel, which has developed patent-pending technology to cost-effectively convert low-value, high-lipid waste streams like trap grease into ASTM-spec biodiesel Fry-o-Diesel, which. She also served on the organizing committee for the 2007 Sustainable Biodiesel Summit, an annual conference dedicated to increasing sustainability in the industry. Reach her at <a href="mailto:eblandsburg@theenergy.coop">eblandsburg@theEnergy.coop</a>.

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Talking Point

Posted June 5, 2007, at 12:23 p.m.
 
 The Utah Department of Transportation (UDOT) has teamed with Utah State University (USU) and Ph.D. student Dallas Hanks on a project to grow biodiesel feedstocks along state highways. The first seeds of this first-of-its kind project were planted in late April, Hanks said.

 
 The idea for the project began with Hanks, owner of a small scientific research company called Blue Cow Inc. and former collegiate professor who saw it as an opportunity to complete his Ph.D. in plant soils and environmental sciences. Although he has looked at the utilization of roadsides for vegetable and grain and fuel source crops for several years, it was not economically viable until this year.
 
 "Once we get to a break point of about $2 per gallon of diesel, this program becomes very feasible," Hanks said. "I thought this would be a great application because we could utilize the dry land conditions for these oil seed crops."
 
 UDOT agreed to fund the first phase of the project, giving $57,200, as well as the use of equipment and personnel help if needed. Canola, safflower and some perennial flax seeds were selected as the most likely to give high yields and four locations ranging from the northern end down to the central part of the state were identified for planting. Hanks said that at each location there are 24 plots and, because the data coming out of the project will be used for his dissertation, the management of all the plots is his responsibility.
 
 While the ultimate goal of the project is to produce biodiesel in areas that do not encroach on farmland and determine the yields in these areas, a secondary benefit exists as well.
 
 "UDOT spends well over $1 million a year to mow and treat their roadsides for weeds," Hanks said. "If we could not only grow a biofuel, but also reduce the weed pressure and herbicide use that would be an additional benefit."
 
 <center><img src="/images/upload/20070605012006.jpg">
 UDOT employees assist USU doctorate student Dallas Hanks in the planting of the first plots in late April.</center>
 
 Although the project itself is moving along well, the weather thus far has been uncooperative, Hanks said. Unfortunately, Utah is experiencing its third-driest spring ever recorded, the heat indexes are off the charts and there are records being broken left and right, he reported. As a result, germination on the plots is lower than Hanks would like it to be. "It's just that we've got one of those years with environmental conditions we can't control," he said.
 

 Despite the setbacks, both Hanks and UDOT are hopeful and UDOT spokesman Adan Carillo told Biodiesel Magazine that the organization plans on fueling its vehicles and other state vehicles on the biodiesel produced from the project.
 
 "Gov. John Huntsman Jr. set out a challenge to UDOT to come up with ways to reduce our dependency on petroleum fuel by 20 percent, so when Dallas came to us with this idea it was a match made in heaven between USU and UDOT," Carillo said. "It was something that we were looking into and … it just made perfect sense."

The first phase of the project, which included the planting of canola, safflower and perennial flax seeds like those shown here, has been fully funded by UDOT.

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Utah DOT growing biodiesel feedstocks on state highways

An unforeseen loophole in the American JOBS Creation Act of 2004, which created the biodiesel tax credit, is causing consternation amongst the European Biodiesel Board (EBB) and the National Biodiesel Board (NBB). The loophole could allow foreign companies to send tanker shipments of biodiesel into U.S. ports, blend it with 1 percent diesel fuel, claim the blender's credit of 99 cents (one cent per percent of biodiesel in the shipment), and then export the shipment outside of the United States, most likely to Europe.
 
 Neither organization could be reached to confirm if the practice is actually happening. However, both officially came out against the idea. "This type of reexporting activity was clearly not intended by the legislative policy and is an inappropriate use of the tax credit," the NBB said in an April statement. "Taxpayers should be advised that the NBB will aggressively pursue legislation and/or regulatory rulemaking that would clarify any ambiguity and clearly state that biodiesel involved in such reexporting transactions is not eligible for the credit."

 
 The EBB alerted the European Commissioner for Trade Peter Mandelson of the potential of this practice in a letter dated March 19. "Triangular trade is starting with biodiesel producers or traders from third countries (Malaysia, Brazil, etc.) shipping biodiesel to U.S. harbors to be 'blended' with a 1 percent ([biodiesel blend]but even a 0.001 percent could be enough) for exporting to Europe afterwards, in a sort of 'touch-and-go' trade," the letter read.
 
 According to the EBB, the subsidized biodiesel is offered on the European market by U.S. exporters at the same price of the raw materials, such as rapeseed oil, purchased by the European Union's (EU) biodiesel production industry. "This competition is price-setting and is progressively disrupting the margins of EU biodiesel producers, putting out of business many EU biodiesel producers who are already confronting important market difficulties because of the late implementation of EU biofuels legislations in many EU countries and subsequent industrial overcapacities," the EBB said. "This system clearly represents an unfair trade measure that urgently needs to be reviewed and eliminated-at least in its unfair trade aspects-by the U.S. government."
 
 Even though the original intent of the biodiesel tax credit was, in part, to enhance domestic energy security by adding fuel to the U.S. energy supply, the legislation did allow the biodiesel tax credit to be applied to biodiesel intended for export. The EBB said it requested that the NBB support the elimination of B99 subsidized exports, but that the NBB responded with a statement that it supports the continued applicability of the U.S. tax credits for U.S.-produced biodiesel that is exported.

B99 exports to Europe come under fire

As I was writing this column, Big Oil went on the defensive, taking heat from a U.S. House panel and denying accusations that so-called mismanagement and a lack of competition caused this spring's record-high gas prices. As that debate waged on, the U.S. average gas price hit $3.10 a gallon and showed no signs of letting up. The cause: a lack of refining capacity exacerbated by unplanned maintenance shutdowns and accidents at a couple of plants. Diesel prices have been less vulnerable-distillate stocks are holding strong-but it remains to be seen how long that will actually last. The fact of the matter is, America's energy security is as shaky as ever. It's clear that a few refinery setbacks at the start of peak driving season can easily send fuel prices trending toward the $4 mark. What if something even more serious happened? 
 

 America's limited refining capacity is, in fact, at the heart of what some believe is the biggest challenge the U.S. biodiesel industry has ever faced. As most of our readers know, renewable diesel-a fuel produced from a process called thermal depolymerization (TDP)-now qualifies for the dollar-per-gallon biodiesel tax credit, and the Internal Revenue Service has ruled in the oil companies' favor to expand the TDP definition to include the conventional petroleum refining process. 
 
 To be clear, U.S. biodiesel producers aren't necessarily opposed to renewable diesel as a fuel, but rather the favorable tax treatment the oil industry is eligible to receive. From what I know about renewable diesel, it appears to have some advantageous properties-very high cetane, improved cloud point, etc. However, I am concerned that allowing major oil companies to essentially add raw oils to their existing refineries will only serve to make the richest companies in the world richer, while adding no new U.S. refining capacity and possibly causing real harm to the rapidly growing biodiesel industry.
 
 Five companies now control 61 percent of the nation's gas stations and half of its refinery capacity. Oil companies are bringing in obscene profits again this year. First quarter profits for ExxonMobil were $9.3 billion. Royal Dutch Shell reported $7.3 billion in profit … and the list goes on. Renewable diesel production-as it would be carried out by the biggest players-would not increase U.S. refining capacity. That stands in sharp contrast to the U.S. biodiesel industry, which is adding to America's transportation fuel production capacity every day. In fact, as you will see in this month's Proposed Biodiesel Plant List, on page 42, there is now at least 2.2 billion gallons of biodiesel production capacity represented by proposed projects around the country. In addition, there's about 1 billion gallons of capacity already on line and another 1 billion gallons under construction. As always, we must be careful to point out the stark difference between U.S. biodiesel plant capacity and actual production, which is significantly lower. What this unprecedented growth tells us is that despite the tight production margins that producers currently face, the biodiesel industry is booming. This existing, under construction and proposed capacity represents twice the amount of crude oil refined into diesel imported from Iraq each year. That's real capacity, and a real contribution to U.S. energy security. While I don't think it is necessary to draw a battle line in the sand between biodiesel and renewable diesel, I do think lawmakers should protect a growing industry that is adding new U.S. refining capacity at a time when our nation so desperately needs it. At the very least, tax credits for renewable diesel should be limited to new, stand-alone facilities not owned or controlled by Big Oil.
 
 Tom Bryan
 Editorial Director
 <a href="mailto:tbryan@bbibiofuels.com">tbryan@bbibiofuels.com</a>

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Big Oil doesn't need another gift from U.S. taxpayers

Editor's Note

Researchers at North Carolina State University (NCSU) have developed and received provisional patents on a technology to turn low-cost, high free-fatty-acid (FFA) materials such as waste vegetable oils into premium-grade jet fuel, which can also be used as a biodiesel additive to reduce cold performance issues. The technology, trademarked Centia (Latin for "green power") is being licensed by the Gilbert, Ariz.-based Diversified Energy Corp. The technology is based on a multi-step thermal, pressurized and catalytic process.

Additive or aviation fuel?

With plans to collocate next to a Bunge crush facility, Renewable Energy Group Inc. (REG) strategically selected Emporia, Kan., as the next place it will build a biodiesel plant. Bunge and REG formed a strategic alliance in 2006, and Bunge's industrial oilseed processing and rendering business will become an important feedstock supplier for REG's biodiesel facility. The plant, which will use mostly soy oil and animal fats as feedstocks, expects to break ground this summer and is scheduled to start production by the end of 2008.

REG proposes plant in Kansas

In May, the Southwest Ohio Regional Transit Authority (SORTA), which serves the Cincinnatti metro area, increased its biodiesel blend to B50, using biodiesel produced by Peter Cremer. SORTA ran its 390 buses on blends up to B75 last summer but lowered the blends to B20 for the winter. Chief Communications Officer Sallie Hilvers said the metro probably won't use blends as high as B75 this summer because of decreased fuel efficiency. It started testing the fuel in 1993 and has consistently used it since 2005.

Cincinnatti metro increases biodiesel blends

MTV's "Pimp My Ride" television show and West Coast biodiesel producer Imperium Renewables teamed up for a special Earth Day episode April 22. The show featured the transformation of a beat-up 1965 Chevy Impala into an 800-horsepower, biodiesel-powered "bio rocket" that gets 25 miles to the gallon. On top of that, California Gov. Arnold Schwarzenegger made a guest appearance, according to Martin Tobias, CEO of Imperium. With the help of experts, the Impala outraced a new Lamborghini and garnered attention for renewable fuels.

MTV's "Pimp My Ride" features biodiesel

A demonstration project in Manitoba has proven biodiesel's worth in the cold. The provincial government teamed with Border Chemical, a fertilizer manufacturer, to test a 5 percent blend of biodiesel and ultra-low sulfur diesel fuel in long-haul trucking. The biodiesel-fueled vehicle traveled more than 50,000 kilometers at temperatures dipping to minus 40 degrees Fahrenheit with no noticeable problems. A final report on the project will be issued by the Manitoba government this spring.

Canadian biodiesel test a success

Green Renewable Energy, Ethanol & Nutrition Holding LLC (GREEN) has selected New Jersey-based Ambitech Engineering Corp. and Pennsylvania-based Matrix Service Industrial Contractors to design and build a 500 MMgy biofuel storage and distribution terminal complex near Tremont, Pa. The Pennsylvania Department of Environmental Protection has issued air quality and storage tank permits for what will become a major biodiesel ethanol and terminal for the Northeast.

Biofuel terminal planned for Pennsylvania

Washington, D.C.-based New Economy Strategies (NES) recently targeted Montana State University (MSU)-Northern's Applied Technology Center as a viable hub for one of the nation's first biodiesel research and development universities. Although federal funding is pending, dialogue with the U.S. DOE has been initiated, according to College of Technical Sciences Dean Greg Kegel. If approved, the federally funded project would come with a $20 million annual budget for research staff, which already has the equipment necessary to carry out its research efforts.

MSU-Northern could house national biodiesel R&D facility

Twelve north-central states, which lead the nation in biomass resources, recently formed the North Central Bio-Economy Consortium, a coalition of each state's department of agriculture, cooperative extension services and university agriculture experiment stations. The consortium aims to spur the region's transition into a leader in the production and use of biofuels, including biodiesel, through coordinated research projects, and regional approaches to attracting investors and working with federal agencies. Member states include: Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota and Wisconsin.

U.S. states form North Central Bio-Economy Consortium

Last year, the National Biodiesel Board (NBB) voiced concern over the eligibility of imported palm oil for the dollar-per-gallon blender's tax credit. This year, the association is focused on renewable diesel. The Internal Revenue Service (IRS) recently issued Notice 2007-37, an interpretation of the term "renewable diesel" used in the Energy Policy Act of 2005, which broadly defines it to include the processing of animal fats or vegetable oils using traditional petroleum-refining equipment.
 
 "As a result of the IRS Notice, oil refiners could collect the dollar-per-gallon tax credit for renewable diesel fuel produced at refineries," said David S. Lowman Jr., a tax partner at Richmond, Va.-based Hunton & Williams LLP. Lowman wrote a series of letters to the IRS supporting the decision. 

 
 NBB CEO Joe Jobe testified before the U.S. House of Representatives Small Business Committee on May 3, saying, "The recent IRS ruling with regard to renewable diesel will allow a large subsidy of conventional petroleum refinery capacity that will not represent second-generation biofuel. That policy was achieved by exploiting an ambiguity in the tax code rather than going through the appropriate legislative process. Moreover, we are not opposed to the petroleum industry replacing some of its capacity with renewable components. However, we do not believe that they should receive $1 per gallon to do so. There exists a [50-cent]-per-gallon alternative fuel tax credit from the 2005 Transportation Bill, which would be available to them."
 
 Rep. Lloyd Doggett, D-Texas, announced his intention to submit a bill reversing the sweeping definition recently given by the IRS. Meanwhile, large oil companies are moving forward with plans to commercialize renewable diesel in the United States-while claiming the dollar-per-gallon blender's tax credit that the NBB believes was intended for methyl ester production.
 
 In mid-April, ConocoPhillips and Tyson Foods announced a strategic alliance to bring renewable diesel into commercialization starting as soon as this year. Beef, pork and poultry fats from Tyson would be used as a feedstock. Jeff Webster, general manager of the Tyson Renewable Energy division, recently spoke with Biodiesel Magazine about Tyson's partnership with ConocoPhillips and renewable diesel's eligibility for the dollar-per-gallon blender's tax credit. "We at Tyson started looking at biofuels 18 months ago," Webster said. "We looked at different technologies when making biodiesel from animal fats. It is a bit problematic due to cold flow performance."
 
 Tyson approached ConocoPhillips to see if the oil company would be interested in pairing up for more traditional biodiesel refining. "ConocoPhillips had been looking at renewable diesel production technology three years prior, a technology for which animal fats is one of the preferred feedstocks," Webster said. 
 
 Animal fats are a preferred feedstock for the refining process of hydro-heating and thermo-depolymerization-breaking down the triglycerides, removing the oxygen and saturating the double bonds with hydrogen-because they have fewer double bonds than soy oil, requiring less hydrogen.
 
 In order for ConocoPhillips to incorporate necessary production and handling capacity, the refiner is spending $100 million in capital expenses at several refineries. Anticipated production by the spring of 2009 is 175 MMgy. Tyson didn't reveal how much it is spending to prepare these feedstocks for the removal of metals, which would otherwise interact with the catalyst during refining. 
 
 Other big oil companies are interested in renewable diesel, too. Jay D. Debertin, an executive from CHS Inc., testified before the U.S. Senate Committee on Finance on April 19 that CHS was "exploring renewable diesel."

 
 Webster said those opposed to renewable diesel getting the credit should also be opposed to the ethanol tax credit. He said oil companies claim the majority of the latter. "It works the same way," Webster said. "It's a big cost." He said without the credit, the feedstock is $2 per gallon-or $84 per barrel-versus $65 crude oil. 
 
 Renewable diesel advocates also highlight the fungibility of the product compared with biodiesel, as well as its carbon-dioxide-neutral status and hydroscopic nature, meaning it won't attract water.

Renewable diesel on the move

Scientists at the Polytechnic University in New York have been awarded $2.34 million over two years from the Defense Advanced Research Projects Agency (DARPA) to perfect a bioplastic made from vegetable oils that can be converted back to fatty acids for the production of biodiesel.
 
 Richard Gross, director of the university's Center for Biocatalysis and Bioprocessing of Macromolecules, developed the new bioplastic. The process involves taking fatty acids-the same feedstock as biodiesel-and adding an alcohol (hydroxy) group to the final carbon in the chain to create an omega-hydroxy fatty acid. This synthesis is done with an engineered strain of the yeast Candida antarctica.
 
 A commercially available enzyme made by Novozymes, called lipase, can then be used to create long-chain polyesters that have similar properties to polyethylene, according to Gross. By manipulating feedstocks and the conditions of the reaction, Gross has been able to create plastic films, thermoset plastics and structural plastics. "The kind of materials we are making fit perfectly in the world of polyethylene-based material," he said. "Plus, they have other properties that go above and beyond what a polyethylene can do. We have shown that material has really good properties."
 
 The polyesters are biodegradable but break down much more slowly than other bioplastics, such as polylactic acid. However, an enzyme called cutinase will break apart the polyester bonds and turn the plastic back into fatty acids. The fatty acids can then go through transesterification with methanol to create biodiesel. "At the end of use, we can treat the plastic with an enzyme that breaks it back down into the monomer," Gross said. "We simply shred the polyester and treat it with the cutinase. It's really quite simple."
 
 The DARPA grant will allow Gross to partner with biotech firm DNA 2.0 to improve the efficiency of each of the reactions. "The most critical step in this process is the monomer synthesis," Gross said. "We need a very efficient conversion of fatty acids to hydroxy-fatty acids. DNA 2.0 is doing the protein engineering part of the project, and we are then taking the variants and studying them in their selectivity and activity."
 
 DARPA is funding the work on this bioplastic because military bases generate large quantities of packaging waste. If the waste can be converted to fuel, not only will it reduce the amount of waste that the military has to remove, but it will also reduce the amount of fuel that has to be delivered to military bases. This benefit is magnified for bases in combat zones, where supply lines can be long and dangerous to convoys.
 

 By the conclusion of the grant, Gross hopes to have a cost-effective, efficient process. "That's where we want to get at the end of this two-year period," he said. "Then we can hand it off to an appropriate partner for commercialization."

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From field to plastic to biodiesel

In late March, the Coal-to-Liquid Coalition was formed and immediately began to push for legislation that would create incentives for coal-to-liquid (CTL) technologies in the United States. Because coal is an abundant feedstock and can be made into a synthetic diesel product, this fledgling industry could be seen as competition for biodiesel.
 
 According to the coalition, Sen. Jim Bunning, R-Ky., and Sen. Craig Thomas, R-Wyo., introduced an amendment to legislation before the U.S. Senate Energy and Natural Resources Committee in late April that would include CTL fuels in a new biofuel mandate that calls on the United States to use 21 billion gallons of biofuels by 2022. Initially, Bunning and presidential hopeful Sen. Barack Obama, D-Ill., coauthored the Coal-to-Liquid Fuels Promotion Act of 2007 and introduced it to the Senate in January.
 
 In the CTL process, the coal is gasified, the gas is run through the Fischer-Tropsch process, and the resulting product can be further refined into various fuel types. Bunning's office maintains that diesel produced from coal is cleaner than conventional diesel because most of the sulfur and nitrogen is removed during processing. "With a strong investment in CTL, America will wean itself off of foreign sources of energy and at the same time create jobs for working families back home," Bunning said. "CTL is a viable, environmentally friendly energy resource that will help cure America's addiction to oil."
 
 However, some disagree with this assessment. In fact, Obama has been criticized specifically for his support of CTL technology by environmentalists whose stance is that coal remains a fossil fuel, even if it is transformed into a liquid. Those same environmentalists, who have traditionally supported Obama, also argue that coal usage is a significant contributor to global warming and therefore disagree with expanding its use.
 
 Energy and the environment will be central issues in the upcoming presidential race that Obama has chosen to enter, and it may be significant if Obama shifts his environmental support to the favor of special interests in his home state. "Illinois Basin coal has more untapped energy potential than the oil reserves of Saudi Arabia and Kuwait combined," he said. "Instead of enriching the Saudis, we can use these reserves to bring a renaissance for Illinois coal."

Coal-to-liquid technology gains political support

Four U.S. states have recently made a push for state biodiesel use mandates or tax credits.
 
 On April 3, New Mexico Gov. Bill Richardson signed a bill into law that required all diesel sold in the state to contain 5 percent biodiesel by July 1, 2012. The new law is a toned-down version of the original bill, which called for statewide B20 use by 2020, according to state Rep. Gerald Ortiz y Pino, who initially proposed the bill. "We obviously have a lot further to go before biodiesel will be recognized as one of the viable alternative fuels, but at least we got off the ground this year," he said. If the price of biodiesel is too high or the fuel isn't readily available, the director of the New Mexico Department of Energy can rescind the mandate for a limited time. There is currently one 750,000-gallon-per-year biodiesel plant in the state, a 15 MMgy facility currently under construction in Clovis, N.M., and two more being developed. "Ultimately, we think that a number of very promising sources of biodiesel will be developed to commercial success in our state and that this year's legislation will have played a big hand in fostering that," Ortiz said.
 
 Similar legislation was passed by the Missouri Senate that required all diesel sold in the state after April 1, 2010, to contain at least 5 percent biodiesel. Distributors aren't required to purchase a biodiesel blend if conventional diesel is cheaper, however. At press time, the bill had been sent to committee in the Missouri House, and a vote was expected before the end of the legislative session May 18.
 
 The Florida House approved an energy package that called for at least 20 percent of the diesel fuel purchased by school districts to be biodiesel by January 1, 2008. In addition, state fleets would take a stepwise approach to biodiesel purchases: A minimum of 5 percent of total diesel purchases must be biodiesel by July 1, 2008; a minimum of 10 percent must be biodiesel by January 1, 2009; and a minimum of 20 percent must be biodiesel by January 1, 2010. In any case, biodiesel usage would be subject to availability. "I think it's clear that nationally we need to get away from fossil fuels and be a greater producer of biofuels," said Adam Hasner, deputy majority leader of the Florida House.

 
 A Nebraska bill is expected to pass by the end of the state's legislative session in May that creates a maximum $250,000 income tax credit for 30 percent of any investment in a new biodiesel facility. The bill, introduced by state Sen. Chris Langemeier, requires that a new plant be located in the state and that Nebraskans own at least 51 percent of that plant. To qualify for a percentage of the credit, a plant must produce 70 percent of its rated capacity for at least a week in the first year and for at least six months each following year.

State legislation boosts biodiesel

Future Canadian biofuels producers are already taking advantage of the Canadian government's new four-year, CAN$200 million biofuels capital grant program, dubbed the ecoAgriculture Biofuels Capital Initiative (ecoABC). After the program officially launched April 23, applications to the program were encouraged to be submitted, and companies such as Biostreet Canada Inc. (BCI), a future biodiesel producer based out of Calgary, Alberta, wasted no time.
 
 BCI was recently awarded a grant for its first project that will feature a crushing facility and a 175 million-liter-per-year (46 MMgy) biodiesel plant on the same site located in Vegreville, Alberta. The company plans to build several adjoining oilseed crush and biodiesel facilities throughout Canada. "It's an excellent program," said Angela Reid, BCI vice president of government and public affairs, of ecoABC. "Going through the entire application process is very beneficial to start-up companies in just making sure all the ducks are in a row and receiving a grant-for us, it was recognition and viability as a business."
 
 First announced in December 2006, the ecoABC was created to provide an opportunity for agricultural producers to diversify their economic bases and participate in the biofuel industry through equity investment/ownership in biofuel production facilities, according to Agriculture and Agri-Food Canada (AAFC). The program provides repayable contributions of up to CAN$25 million per project for the construction or expansion of transportation biofuel production facilities. Corporations (including cooperatives), individuals and partnerships are eligible to apply for funding, according to AAFC. The projects must have new agricultural producer equity investments equal to 5 percent of the total eligible project costs.
 
 Reid said she has no doubt that this new initiative will help foster growth within the Canadian biofuels industry. "The [financial] support from the federal government and the administrative support from the provinces really confirm that all levels of government, industry and obviously the public are increasingly demanding and supporting a transition from fossil fuels," Reid said.
 
 EcoABC, which will expire March 31, 2011, will help the nation reach the government's current 5 percent biofuels target by 2010. In March, Canadian Finance Minister Jim Flaherty announced that C$2 billion would be set aside for biofuel incentives for the next seven years.
 
 For more information about the ecoABC, visit <a href="http://www.agr.gc.ca" target="_blank">www.agr.gc.ca</a> or call (866) 367-8506.

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Canada biofuels grant program gets underway

Although not an independent producer of biodiesel, India is a growing hotspot for foreign entities looking to establish groundwork in lessening the nation's reliance on imported petroleum in an effort to increase energy security.
 
 Global biodiesel producer D1 Oils plc has been one of the major players in the Indian biodiesel industry. The Middlesbrough, United Kingdom-based firm is currently involved in two joint ventures: one with Williamson Magor, India's largest tea producer; and the other with Mohan Brewery, India's oldest and largest liquor producer. The cooperative mission is aimed at augmenting local jatropha and pongamia plantations for biodiesel production. According to D1 Oils Communications Director Graham Prince, both crops are plentiful and have proven to be cost-effective, especially jatropha relative to labor costs. "India could easily end up being in a position with the land available of satisfying its current diesel demand from jatropha," Prince said. D1 Oils has been active in India since 2004 and currently has about 46,000 hectares of jatropha planted in India, just under one-third of the company's worldwide planting total of 150,000 hectares also located in Africa and Southeast Asia.
 
 India imports nearly 70 percent (about 110 million tons) of its diesel requirements, and that figure is expected to rise above 85 percent. Oil prices reached a record high of $76 per barrel as of May 2.
 
 "[India] will create its own industry, and they'll create it in a way that Brazil has with ethanol around biodiesel," said Steve Douty, D1 Oils executive director for global business development in India. "I think it's one of those things that once it's up and running, it's going to be cemented in place in a place like India probably a lot longer than anywhere else."
 
 Other major players taking a proactive approach to India's biofuel independence include Michigan-based Biodiesel Industries Inc., Reliance Industries Ltd., Godrej Agrovet, Emami Group and Nandan Bioagro, as well as a host of other local Indian and third-party companies.

D1 Oils operates a jatropha nursery under a joint venture with Williamson Magor, the world's largest tea producer.

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Biodiesel activity strong in India

United Kingdom-based JS Power Ltd. is offering electrical generators for emergency, standby and stand-alone applications fueled by B100. The Eco-Gen Bio Diesel Generators are available in 14 models with capacities ranging from an 8 kilowatt, single-phase unit that would power a household during power outages up to industrial-sized, 400 kilowatt, three-phase units for stand-alone or backup power.
 
 One of the first to offer a 100 percent biodiesel compatible generator, JS Power is pleased with the generators' performance. Fuel consumption is comparable or slightly better than with a traditional diesel system, according to sales manager Lewis Sharman. "Emissions are significantly reduced over diesel, with a major benefit of biodiesel being the lack of impact to the environment in the event of spillage."
 

 The generators came on the market in the United Kingdom last fall after 18 months in development. Sharman explained the major issue to be worked out with engine manufacturers was biodiesel fuel's aggressive nature toward natural rubber components. The engine didn't need modification, but rather the fuel lines, fuel pumps and injectors. The company has also reduced the cost to "very closely match diesel counterparts," he said.
 
 The units have heavy-duty, multi-cycle biodiesel engines that are water-cooled, with direct injection fuel systems, brushless alternators, starter batteries, automatic controls and exhaust silencers. Automatic models have a jacket water heater. The complete generating set is mounted on a heavy-duty steel frame with anti-vibration pads and an integral fuel tank. Acoustic enclosures are also available for sound reduction. Eco-Gen generators are available in uninterruptible power supply packages to suit a single piece of equipment or a full office building, in single-phase or three-phase models.
 
 U.K. businesses can use the biodiesel generators to fulfill government green power requirements. "It's an easy technology for a company that wants to go green without learning about wind energy or other technologies," Sharman said. The generators function as a backup power supply, running often enough to meet a company's green requirements each year. JS Power also sells a line of biodiesel processors scaled from 80 liters (about 21 gallons) up to 2,000 liters (about 525 gallons) per batch.
 
 The company is talking with potential U.S. distributors for Eco-Gen Bio Diesel Generators. Eco-Gen generators can be adjusted for either the 50 hertz frequency used in the United Kingdom or the 60 hertz frequency used in the United States, according to Sharman. For more information, visit <a href="http://www.jspower.co.uk" target="_blank">www.jspower.co.uk</a>.

Biodiesel, as B100 or blended, is used in JS Power Ltd.'s Eco-Gen Bio Diesel Generator, one of few generators modified to run on the renewable fuel.

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U.K. company develops biodiesel generator

In March 2006, the National Biodiesel Board (NBB) launched its Washington, D.C., office. Scott Hughes, who had managed governmental affairs with a focus on state regulations, assumed the role of the Washington, D.C., bureau chief as director of governmental affairs. Alan Weber had also agreed to a year-long tour-of-duty in Washington, D.C., to help make the NBB office launch successful. These two biodiesel all-stars had a full plate in assuming responsibility for the biodiesel industry's many federal legislative and regulatory priorities. With the help of Gordley Associates and Washington Council Ernst & Young (WCEY), there was an impressive set of skills and resources to work together to address the many policy challenges. 
 
 Over the course of the past year, this team has done a magnificent job launching the NBB's D.C. shop, and supplementing the industry's contract lobbying efforts and those of our partners such as the American Soybean Association (ASA). However, some major changes are occurring. Weber has recently returned to Missouri after being based in D.C. for a year. Hughes will be returning to his St. Louis home base, and Mark Palmer of Gordley Associates accepted a committee staff role with the House Small Business Committee.
 
 This month, we are announcing the addition of some new members of the biodiesel regulatory team who will be providing some powerful reinforcement to the industry's voice in Washington, D.C. Manning Feraci has accepted the position of vice president of federal affairs and will direct the NBB's Washington, D.C., office. Manning previously served as the chief of staff to Rep. Kenny Hulshof, R-Mo., along with Rep. Pomeroy, D-N.D., has been the primary champion of biodiesel in the House of Representatives. Manning has served as a House Ways and Means Committee member for over 14 years.
 
 The NBB is also proud to welcome Larry Schafer to the regulatory team. Schafer, of Diamond Group LLC, has joined the team during this very critical time of the 110th Congress, providing immediate additional resources to the industry's effort. He has a strong history in renewable fuels issues, having served in legal and legislative counsel roles for the National Council of Farmer Cooperatives, the Renewable Fuels Association and Rep. Pomeroy. Schafer was instrumental in helping engineer, pass and implement the Volumetric Ethanol Excise Tax Credit and the renewable fuels standard in the Energy Policy Act of 2005.
 

 As director of governmental affairs, Hughes will continue to serve in the NBB's Washington, D.C., office through the end of the summer, at which point he will transition into focusing on the growing level of state regulatory and legislative activities associated with biodiesel.
 
 Andrew Brandt of consulting firm Marc-IV also serves as policy support analyst in the NBB's D.C., office. Prior to joining Marc-IV, he worked on the Washington, D.C., staff of U.S. Sen. Jim Talent, R-Mo. 
 
 This announcement represents the conclusion of an eight-month recruiting effort. Although it took more time than we had hoped, Hughes and I are elated at the results. Feraci and Schafer are the best two candidates we could have possibly hoped for, and they will make an extraordinarily skilled and effective team in Washington, D.C. 
 
 Here are the other biodiesel troops in D.C.:
 
 › Gordley Associates is a government relations firm specializing in legislation and regulatory policies affecting agriculture and related industries. It has a successful, long-standing relationship with the ASA, NBB and the biodiesel industry. Gordley Associates has been at the center of biodiesel policy efforts since the NBB's beginning.
 
 Founder John Gordley has extensive experience working in the legislative and executive branches of government. Gordley's areas of expertise include farm policy, agricultural trade policy and biotechnology. He has played a major role in every national farm bill since 1981. 
 
 Tom Hance recently took on responsibilities previously overseen by Palmer. He will handle a portfolio that includes biodiesel, conservation and transportation issues. Most recently, Hance served as the federal policy director and head of the Washington (D.C.) Office for Maryland Gov. Robert L. Ehrlich. Prior to that, he served as chief of staff for U.S. Rep. Virgil Goode Jr., R-Va., who served on the House Agriculture and Appropriations committees. 
 
 Janet Kopenhaver, president of Eye (on Washington LLC,) has over 20 years of experience in the governmental relations field. Kopenhaver has been serving as the federal regulatory consultant to the NBB for over three years. In this capacity, she closely monitors proposed federal agency regulations and grant programs for their impact on the biodiesel industry. 
 
 › WCEY is a legislative and regulatory advocacy services firm specializing in tax, budget, energy and environment issues.

 
 Tim Urban is a partner with WCEY. Urban's areas of expertise include tax and budget issues. He has been advising the biodiesel regulatory team since the beginning of the biodiesel tax credit campaign in 2002. He also has extensive experience in this field, having worked for the tax-writing authority in the U.S. House of Representatives Ways & Means Committee. 
 	
 Tara Bradshaw provides clients with integrated communications, media relations and government affairs strategies. She has a strong background in tax policy, budgets, economic policy and health care issues. 
 
 › Karen Coble Edwards heads KCE Public Affairs Associates, which will continue to provide public affairs services to the NBB from Washington, D.C. Since 2000, Edwards and Melissa Narins have provided public, government and media relations counsel to the NBB. 
 
 The reinforcements are here, but we've retained the wisdom of our original commanders. We feel new ammunition is forthcoming in many of our efforts in the nation's capitol, and we are ready to put it to use.
 
 Sincerely,
 
 Joe Jobe
 NBB CEO

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Expansion of NBB's Washington, D.C., Office: Reinforcements Have Arrived

NBB In Sight

House Speaker Nancy Pelosi rallied for energy legislation at a recent press conference held at Seattle Biodiesel headquarters in Seattle. Pelosi described a commitment to reducing carbon emissions and developing American-made fuel sources. She told the media that lawmakers "have an approach that says that America's farmers will fuel America's energy independence. We will send our energy dollars not to the Middle East, but to the Midwest and to rural America."
 
 Washington Gov. Christine Gregoire, Seattle Mayor Greg Nickels, Seattle Biodiesel President John Plaza and Washington legislators participated in the event.
 

 Imperium Renewables, a member of the National Biodiesel Board, is the parent company of Seattle Biodiesel.

Pelosi visits NBB-member plant

Scott Hughes, National Biodiesel Board (NBB) director of governmental affairs, and NBB CEO Joe Jobe recently testified before House committees. Hughes addressed the House Committee on Energy and Commerce Subcommittee on Energy and Air Quality on biodiesel's impact on energy security and other societal benefits. Jobe testified before the House Committee on Small Business in a hearing titled, "The Impact of Renewable Energy Production in Rural America." Their testimonies addressed the many benefits of biodiesel, including the ways in which the biodiesel industry has more than paid for its federal tax incentive through economic stimulation. Both men primarily spoke on the importance of extending the biodiesel blenders tax incentive. "It has stimulated this industry in every way we imagined," Jobe said of the incentive. He noted that the industry produced 25 million gallons of biodiesel in 2004. Production has grown by a factor of 10, to about 250 million gallons of biodiesel in 2006. There are more than 100 plants operating today, a four-fold increase from when the tax incentive took effect.
 
 Jobe and Hughes also addressed the threat of the over-subsidization of some large integrated oil companies due to the recent broad interpretation of "renewable diesel" by the Internal Revenue Service. The ruling means fuel made by coprocessing biomass with petroleum in conventional refineries can claim a tax credit of $1 per gallon, the same as the biodiesel tax credit. "Some have argued that anything that displaces some imported crude oil is a good thing, and that Congress should not pick winners and losers," Jobe said. "But, subsidizing large integrated oil companies a dollar per gallon for their existing refinery capacity by exploiting an ambiguity in the tax code will indeed pick winners and losers. The winners will be the oil companies that will receive windfall profits in a way that will not add significant refinery capacity or economic benefits to the country. The losers will be small businesses that have invested in their communities to build new biodiesel refinery capacity. The other losers will be the U.S. taxpayers who will foot the bill for this flawed policy."
 
 Jobe presented survey results from Moore Information, in which taxpayers were asked whether oil companies should benefit from the same level of government support for renewable diesel as for biodiesel. By a margin of 3:1, Americans said that of the two fuels, only biodiesel deserved that level of government support. Almost eight of 10 Americans said Congress' decision to provide a tax incentive for biodiesel was a good one. 
 
 Also on Capitol Hill, an NBB member testified before the Senate Agriculture Committee with views supported by the American Soybean Association and the NBB. The testimony called for the new Farm Bill to contain specific biodiesel provisions, including a Biodiesel Incentive Program and Biodiesel Fuel Education Program. The measures will help to strengthen the nation's energy policy, according to Neil Rich, president and CEO of Riksch BioFuels in Crawfordsville, Iowa.

NBB testifies to House committees, shares survey results on renewable diesel

The National Biodiesel Board (NBB) congratulates two new companies that joined the BQ-9000 program in April. Peach State Labs, an NBB member and biodiesel producer in Rome, Ga., received its accredited producer status. Pro Petroleum Inc., a Phoenix-based biodiesel distributor, became a certified marketer.
 
 For those who may be newer to the BQ-9000 process, don't forget to register for the ongoing one-day BQ-9000 seminars held throughout North America. 
 
 The remaining dates are as follows: 
 › June 14–Seattle 
 › July 12–Winnipeg, Manitoba 
 › August 16–Boston, Mass. 
 › October 18–Las Vegas
 
 To register for a course, visit <a href="http://www.bq-9000.org" target="_blank">www.bq-9000.org</a> or contact the NBB's Anne Klempke at (800) 841-5849 or <a href="mailto:aklempke@biodiesel.org">aklempke@biodiesel.org</a>.

BQ-9000: New companies and learning opportunities

Harold Kraus has a story for almost everything that comes up in life. That's because he's served in two military conflicts, farmed for 46 years during some volatile times, and has six children and 13 grandchildren.

 
 One of Kraus's stories, like the others, is close to unbelievable, but true. The 76-year-old retired farmer from west-central Kansas recently helped man the Earthrace boat from San Diego to Hawaii. Despite the exotic vacation destination, manning this boat isn't like taking a pleasure cruise. It is an intense, grueling and sleepless proposition. The wave-piercing boat is attempting out to set the world circumnavigation record while running on biodiesel fuel. 
 
 "If you feel like it, do it," Kraus said of his mentality before the trip. "I'm not saying what the 'it' might be. If you're capable, there's no need to sit at home and watch it on TV while you could be the one actually doing it." 
 
 At press time, the Eartrace trimaran was in India after several days waiting for parts in Koror, Palau. Although the record bid is still ongoing, Captain and New Zealander Pete Bethune has said time was built in for one problem while pursuing the record, not the three they've encountered. Kraus, a longtime National Biodiesel Board (NBB) and Kansas Soybean Commission member, sponsored and served as a crewmember on one leg of its ongoing journey. The NBB also sponsored that leg of the trip.
 
 Kraus served on active duty in the U.S. Navy for six years in such capacities as hospital corpsman, amphibious boat crewman, and naval aviator/patrol plane commander flying bomber and patrol planes in the North Atlantic, Mediterranean and Caribbean. He also served on two destroyers, several amphibious ships and the USS Missouri battleship during the Korean War and Cold War eras.
 
 Due to his naval service and biodiesel backgrounds, Kraus knew early on he wanted to be a part of Earthrace. In 2003, he became the first to sponsor a leg of the race. While on his San Diego-to-Maui leg, Kraus experienced several days of repairs while still in San Diego and days of storms at sea. Last year, he was also on a familiarization leg of Earthrace's U.S. promotional tour. It also ran from Santa Cruz to Newport Beach in California.
 
 Kraus and Earthrace finally put to sea in early April. "One of my duties during the actual race bid was doing six to eight hours at the helm during the day to give the three crewmen a chance to get some well-needed rest," Kraus said. "My years of service in the Navy enabled me to understand seamanship, navigation, crowded living conditions and non-air-conditioned vessels. I used all of those experiences on the Earthrace. I do not think I could have been of use to the crew of Earthrace if I had not had the naval training and the summer training on Earthrace." 
 
 He continued, "The most exciting thing was just getting out in the water because I have missed it. We don't get that [chance] often in Kansas. I've worked hard in farming all those years, and while I've got the health, I wanted to play. Not everyone my age can do that. Feeling the ocean beneath the boat and the salt spray in my face made it worth the body aches. Between war conflict marine activity, and this one, my age tells me that this one was more intense."
 
 The only incident Kraus and crew had en route to Hawaii was when they heard a noise under the boat and immediately had a severe vibration. "Marty [Mead, Earthrace's chief engineer] checked aft to see rope and nets dangling off of the prop," Kraus said. "Pete immediately jumped in with a knife, cut the stuff off and handed it up. Luckily, that incident, unlike others, only set Earthrace back by about 15 minutes." 
 

 Kraus realized the beauty of what he was experiencing, despite any setbacks the boat had up to that point in the journey. "I really enjoyed the wildlife along the way- various sea birds, dolphins and an occasional flying fish, one of which hit the windscreen. As we rounded the leeward side of Maui, the humpback whales put on a show for us. They had their calves with them." 
 
 He also realized the magnitude of the trip. "On my way back to Kansas, I was tired, happy and very satisfied that I was a part of this effort to promote biodiesel and possibly set a world speed record," Kraus said. "My hat is off to Pete and all the various ground and sea crews of Earthrace. They are extremely talented, hard working, and at the top of the list-volunteers for the cause." 
 
 Since its departure from Barbados on March 10, Earthrace was involved in a fishing boat accident that left one fisherman dead in Guatemala, and twice was waiting for several days for repairs or parts. Kraus said he admires the crew for its determination despite heartbreaking setbacks, and he was glad to share in that spirit for a time. "You talk about me in this story, but the real hero here is Virginia for letting me do it," he said of his wife. 
 
 Visit <a href="http://www.earthrace.net" target="_blank">www.earthrace.net</a> for more information on Earthrace, including how to support the record bid. Also, watch video blogs 07 and 08 to see Kraus in action.

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First-class travel: Kansas farmer rides Earthrace to Hawaii

Real-time market information provider DTN recently added a new biodiesel-focused service to its already-established products suite: ProphetX Biodiesel Edition. This one-of-a-kind product was designed to help biodiesel producers, as well as investors, maximize returns through effective margin management. ProphetX Biodiesel Edition features include crush tools, input and output price monitoring in real-time, the Hedge Minder, and refined and renewable rack pricing information. This product includes linked displays and the ability to extend the display across multiple monitors. For more information, visit <a href="http://www.dtn.com" target="_blank">www.dtn.com</a>.

DTN offers new biodiesel trading platform

Carotech Bhd., the first publicly traded biodiesel producer in Malaysia, sponsored a leg of Earthrace, a project attempting to circumnavigate the world in a biodiesel-powered motor boat in less than 75 days. When the Earthrace team made its scheduled stop at the One 015 Marina Club in Singapore in May, it refueled with CaroDiesel, a palm-derived biodiesel product, according to a Carotech press release. Earthrace was slated to stop in Singapore between April 25 and 27, but was delayed.

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Malaysian biodiesel company sponsors Earthrace

Alkoxides, used as a catalyzing agent in the biodiesel transesterification process, are essential to many biodiesel production methods. Degussa, a chemical company based in Dusseldorf, Germany, is planning to build a 60,000-metric-ton alkoxide production facility at its existing chemicals complex in Mobile, Ala., which has been operating since 1978. The project is slated to cost at least $13 million. "An additional production facility in North America is desirable in the interests of speed and customer proximity," said Dr. Thomas Haeberle, head of Degussa's Building Blocks Business Unit.

Degussa considers alkoxide production for biodiesel

Biodiesel design/builder Renewable Energy Group Inc. (REG) plans to relocate its Ralston, Iowa, corporate headquarters to Ames, Iowa, by this fall, said company spokeswoman Alicia Clancy. The company plans to hire 30 to 40 new employees in the future. The new location is also expected to facilitate the work that the company is doing on biodiesel research in collaboration with Iowa State University researchers.
 
 In other news, REG recently announced the hire of Robert Anderson as its southeastern biodiesel sales and marketing manager. Anderson previously worked in marketing for Earth Biofuels and CleanFuel USA.

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REG plans to move offices, hires marketing manager

Foothills Bio-Energies, a 5 MMgy biodiesel producer in Lenoir, N.C., expected Kreido Biofuels Inc. to install its trademarked STT Biodiesel Processing Unit (BPU) at the there by the end of May, according to Foothills Bio-Energies General Manager Randy Dellinger. The BPU is a 1 MMgy pilot project that will allow Kreido to test various feedstocks and refine operating procedures, while running independently of Foothills' existing process. Kreido intends to install this technology on a scale greater than 10 MMgy in 2008. Foothills is currently producing at a rate of 1.25 MMgy while it adds newer technology.

Kreido installs pilot project for Foothills Bio-Energies

Dow Chemical Co. has introduced a new high-capacity ion exchange resin for the biodiesel industry. Dowex DR-G8 is a dried cation resin that will remove trace salts, soaps, glycerin and other impurities from biodiesel. The resin also acts as a desiccant to remove and bind trace water after the phase separation and demethylation steps. It is a product for the final polishing of biodiesel to meet European and U.S. standards, and is not a substitute for the bulk separation and washing steps. For more information, visit <a href="http://www.dow.com" target="_blank">www.dow.com</a>.

Dow Chemical releases new resin for biodiesel purification

PetroSun BioFuels is planning a 20 MMgy biodiesel production plant in Australia that should be on line by late 2007 and use algae as a feedstock, according to company CEO Gordon LeBlanc. While the algae cultivation process isn't unique, he said the Algae BioFuels Inc. extraction process that would be incorporated is. In addition to biodiesel, the process produces high-protein animal feed, ethanol and excess electricity. PetroSun Drilling Inc. is an Arizona company with wholly owned subsidiaries Algae BioFuels Inc. in the United States and PetroSun BioFuels in Australia.

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PetroSun plans algae-to-biodiesel plant

The city of Conover, N.C., Thomas Petroleum Co, and state Sens. Charlie Albertson and Janet Cowell received the state's inaugural North Carolina Mobile Clean Air Renewable Energy (CARE) awards April 18. The North Carolina Department of Transportation, the Department of Environment and Natural Resources Division of Air Quality, and the Department of Administration State Energy Office sponsored the awards to recognize outstanding individual and organizational efforts for reducing transportation emissions.
 

 All of Conover's diesel vehicles run on B20, and it plans to increase to B50, implemented through a Regional Fuel Supply Model. Thomas Petroleum Co. has opened numerous B20 pumps and encouraged several other companies to do the same. Albertson and Cowell have pushed for numerous biofuels bills, including the Energy Independence Act that passed in 2006, which would require all diesel fueling sites to transition to B20 by the end of 2007.

All city diesel vehicles in Conover, N.C., run on 20 percent biodiesel. Left to right: Public Works Director Jimmy Clark, Fleet Supervisor Ron Brown, Bruce Eckard and City Manager Donald Duncan.

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North Carolina awards recognize biodiesel advocates

For Biodiesel Magazine, the saying, "The third time's the charm," may hold true as we unveil the third annual Proposed Biodiesel Plant List. This year featured the largest number of staff calling the largest number of proposed projects in the three years the magazine has compiled the list. As usual, the results depict a rapidly growing industry. Biodiesel Magazine started off with more than 380 proposed projects from its internal database. Those were eventually narrowed down to the 94 projects highlighted here.
 
 While three years typically isn't considered an ideal data set to draw historical trend lines, it does allow us to create some general conclusions about the industry. For example, perhaps the most startling statistic was the total capacity represented on the list. Of the plants reporting a proposed capacity, there is more than 2.2 billion gallons of annual production represented here. In terms of total capacity, that's a 152 percent increase from the 2006 Proposed Biodiesel Plant List. Last year's list featured 65 plants representing 1.46 billion gallons. The 2006 list represented a 293 percent increase from our first list compiled in 2005.
 
 <center><img src="/images/upload/20070604094414.jpg">
 2005
 
 <img src="/images/upload/20070604094547.jpg">
 2006
 

 <img src="/images/upload/20070604094615.jpg">
 2007</center>
 
 The 2 billion-gallon threshold is striking considering the National Biodiesel Board estimates 2006 production levels in the area of 250 million gallons. At the time the Spring 2007 U.S. & Canada Biodiesel Plant Map was compiled, there was approximately 849 MMgy of capacity on line with another 1.3 billion under construction. At the same time in 2006, there were approximately 400 MMgy of capacity on line and 320 MMgy under construction.
 
 What do these capacity figures say about the industry? Feel free to draw conclusions, but it obviously shows people are still jumping into biodiesel.
 
 While overall capacity continues to grow, the average plant size remained relatively steady. In 2005, 36 plants averaged 14 MMgy. In 2006, the number jumped to 65 plants averaging 24 MMgy. However, this year's 94 proposed facilities averaged 23.5 MMgy, and this includes a few more massive facilities. The largest is Imperium Renewables' proposed 100 MMgy plant in Hawaii. The company is already nearing completion of its 100 MMgy plant at the Port of Grays Harbor in Washington. Other notable large-scale proposals include a 75 MMgy plant in Clovis, N.M., four 60 MMgy plants in Iowa, an 86 MMgy project in Louisiana and numerous 30 MMgy plants throughout the United States.
 
 Biodiesel's proposed footprint continues to grow in the areas where it already exists. It's also slowly spreading to other regions of the country. The number of states and provinces proposing plants continues to grow. In 2005, 24 states and provinces were on the list. In 2006, the figure increased to 29. This year, 37 states and provinces reported biodiesel projects. Of those, Iowa once again dominated in the number of projects and capacity. The state featured 10 plants with 370 MMgy of proposed capacity. Iowa recently celebrated the opening of its 10th biodiesel plant. Central Iowa Energy LLC held a grand opening ceremony for its 30 MMgy project in Newton.
 
 For the first time, Illinois matched Iowa with 10 proposed projects with a proposed capacity of 285.5 MMgy.
 
 This year's state legislation may play an important role in the development of these proposed plants. At press time, Missouri, Montana, Florida and Oregon were considering various forms of an in-state biodiesel requirement. New Mexico, which landed two plants on this year's list, recently passed a biodiesel requirement. In late April, Gov. Bill Richardson signed a bill into law that requires all diesel fuel sold in the state to be at B5 by 2012.
 

 The massive amount of proposed capacity on this list also raises several concerns-not the least of which is feedstock. Where will these and existing projects get affordable feedstock? While we don't attempt to answer that question here, we can pull some interesting statistics that provide a cross-section of potential demand. Soy oil was again the predominant feedstock with 598 MMgy of proposed capacity from 22 plants. It's also assumed that soy oil will comprise much of the multi-feedstock capacity. Twenty-one plants said they would use multiple feedstocks for a total capacity of 560 MMgy. An additional nine plants said they would produce 328 MMgy of biodiesel from soy oil in combination with some other feedstock, such as animal fats or cottonseed oil.
 
 Approximately 20.2 billion pounds of soy oil were produced in the United States in 2006, according to the American Soybean Association. If every pound of that soy oil was converted to biodiesel, it would create approximately 2.8 billion gallons of fuel. As expected, a majority of the soy-oil-based plants are located in the North Central-West and North Central-East regions of the United States, where most soybeans are grown. This year's list is the first to feature a project specifically touting oil derived from algae as feedstock. While algae has been a feedstock in the laboratory, it hasn't been used on a commercial scale in the United States or Canada. Cetane Energy in Carlsbad, N.M., plans on using algae oil in its planned 3 MMgy facility.
 
 At least 16 plants from last year's list have moved past the proposed stage and have either started construction or already reached production. Due to the nature of business it can be surmised that several-if not most-of the projects listed here won't come to fruition for a variety of reasons.
 
 Finally, it's important to consider the criteria used to compile the list. Our staff attempted to contact every proposed plant-between concept and construction-that we became aware of through other news sources or by word of mouth. Each project listed here was verified by at least one reliable source either directly associated with the project, or a government official, in many cases someone associated with an economic development group.
 
 For various reasons, some proposed plants chose not be included. Others proved impossible to reach. Still others are undoubtedly flying below our radar. If you don't see your project listed here, give us a call. We'd love to hear from you.
 
 As usual, this isn't intended to be an all-encompassing inventory of every proposed biodiesel project in the United States and Canada. It's merely a snapshot of what is happening in the industry right now.
 
 The list is organized by regions: Pacific, Mountain, North Central-West, South Central-West, North Central-East, South Central-East, New England, Middle Atlantic, South Atlantic and Canada. Click on the <a href="http://biodieselmagazine.com/articles-sidebar.jsp?article_id=1658" target="_blank">sidebar articles</a> to view the individual regions.

By Lindsey Irwin, Craig A. Johnson, Jerry W. Kram, Susanne Retka Schill, Michael Shirek, Bryan Sims, Jan Tellmann and Dave Nilles

2007 Proposed Biodiesel Plant List

The diversity of mammals, amphibians, reptiles, birds and fish that exist in the Great Lakes basin make for a complicated ecosystem. To the north, the famous dense hardwood forests sustain a solid wood and paper industry. To the south, marshes and wetlands provide a striking contrast and support a vast catalog of wildlife. As the largest surface area of fresh water in the world, the Great Lakes are a veritable cornucopia of resources, in addition to providing 56 billion gallons of water per day for municipal, agricultural and industrial use.
 

 The industrialization of the Great Lakes region began in the early 20th century, resulting in many harmful environmental impacts. In fact, part of Lake Erie is dead. Today, however, many of the practices that proved to be destructive are being curtailed, and new practices focused on cleanliness, health and preservation are gaining momentum. That's where biodiesel fits in.
 
 The National Atmospheric and Oceanic Administration (NOAA) operates a fleet of research vessels and small boats, and has replaced petroleum usage with biodiesel and biodegradable hydraulic oils, transmission fluid, maintenance lubricants and cleaners. The NOAA is a federal agency responsible for ecosystem management, weather forecasting, data collection, and sustainable practices for commerce and transportation. It's pioneering the use of biodiesel in marine applications as part of its identity and mission.
 
 The NOAA's Great Lakes Environmental Research Laboratory (GLERL), with facilities in Muskegon and Ann Arbor, Mich., set out to operate completely petroleum-free vessels as the main objective of its "Green Ship Initiative." The ships used in the initiative are the first in the federal fleet to run on B100. "We're 100 percent biobased," says Dennis Donahue of GLERL. "We initiated the fleet to biodiesel incrementally by ship. Under our laboratory, there are about 40 vessels involved in the Green Ship Initiative."
 
 One of the focuses of the GLERL's research has been the use of biofuels in marine applications. Donahue and company have gained valuable experience with all of the handling and logistical issues involving biodiesel, such as cold flow, storage stability and market availability. "There's been a dramatic increase in product from when we first started," Donahue says. "B100 in Michigan is about as prolific as No. 2 diesel, which means next-day delivery is available throughout most of the state." According to the GLERL, this can be attributed to the increased distribution network created by the increased demand for B20 and the growth in production capacity, which has also contributed to cost reductions. Currently, the GLERL procures its biodiesel from Crystal Flash Co. of Grand Rapids, Mich.
 
 Sea Sickness Cure
 As a division of NOAA, GLERL is committed to studying and subsequently addressing some of the environmental problems that have plagued the Great Lakes, including invasive species, erosion, nitrogen runoff and transportation pollutants. Over the past seven years, the Green Ship Initiative has built strong field experience with biodiesel "over a broad spectrum of engine, equipment and vessel designs," Donahue says.
 
 Field tests documenting emissions in regard to the use of B100 aren't currently available. However, Donahue doesn't need a scientific study to find out how his colleagues feel about biodiesel emissions. The crew and passengers on deck, who are often directly in the exhaust plume, have become big fans of the renewable fuel. The use of biobased products has improved the work environment of the ships' crew and the scientists who are subjected to long-term exposure of diesel emissions. "There's been a dramatic reduction in sea sickness," Donahue says. "With biodiesel, there aren't those strong fumes that have people going over the side."
 
 GLERL's stance is that when compared with high-sulfur petroleum diesel, the substantial reductions in particulate matter (47 percent) and hydrocarbons (68 percent) make a strong argument for using B100. Even though the U.S. EPA standards are becoming more stringent for new boat engines, those already in operation have been grandfathered in. This means that because of the long life span of diesel motors, a substantial percentage of vessels will continue to operate at emissions levels above the newest standards for many years to come. B100 may be a solution to lower the emissions of those engines in the legacy fleet, which are exempt from the latest EPA standards that went into effect in 2004, Donahue says. Biodiesel hasn't seen a lot of penetration in the marine environment, but these new regulations for both marine fuels and engines could create significant opportunities for methyl esters in this sector. The groundbreaking work that the NOAA and the GLERL have performed should make all private boat owners and commercial fleet operators confident that B100 can match the performance of traditional petroleum-based marine fuels.
 
 100 Percent Biobased

 Renewable Lubricants Inc., (RLI) in Hartville, Ohio, has been supplying the green ships with hydraulic lube, transmission fluid and other renewable mechanical liquids to keep the ships running smoothly. Using biodegradable vegetable oils in onboard systems like crank cases, gear boxes and hydraulics, offers an additional level of environmental protection in the event of spills or other accidental leaks. "They developed motor oil specifically for the diesel engines that we were involved in testing," Donahue says. "They also have a logistical and technical support program that has been very important to us."
 
 RLI, which makes mechanical fluids from soy, canola, sunflower and corn oils, takes steps in its laboratories during the design process to make sure that the process of converting road vehicles or ships to a renewable platform is simple, says RLI Vice President William Garmier. "We focus on compatibility," he says. "We want our customers to make the changeover without doing a major flush. We don't have them go through any major work."
 
 Because the companies interested in using biodiesel are likely to embrace other renewable products, the marine industry has quickly become a hot market. "Cities and other areas around water have been very proactive in looking for alternatives [to petroleum]," Garmier says. "Marine markets are becoming very good for us."
 
 All of these products have undergone rigorous testing and are equivalent in performance to their petroleum counterparts, Donahue says. "These are no-fault, no-fail systems," Garmier says. "If those NOAA weather ships are out at sea, they can't afford to have a failure if a storm is coming and they need to get back to port … they're dealing with some rough territory."
 
 B100 along with nonpetroleum-based fluids and lubricants has performed at the same level or better than traditional products. Significantly, the detergent effect of biodiesel has led to less downtime needed for manual cleaning, Donahue says. Anticipating this fuel characteristic, the GLERL installed duplex filters in its ships prior to converting to a biobased operating platform. When the ships burned the first two tanks of B100, the fuel filters required replacement at nearly three times the pace of normal fuel filter changes. "This is because the biodiesel was washing the gum and gunk out of the system," Donahue says. Overall, biodiesel's qualities as a solvent have contributed to improved fuel system maintenance, which leads to better engine performance. The use of exclusively renewable lubricants and fluids has kept the ships running at peak performance, while simultaneously providing an added measure of environmental protection against leaks and spills. "The old idea that vegetable oils won't work in high-performance applications-we've proved that wrong," Garmier 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.

As the largest surface area of fresh water in the world, the Great Lakes are a cornucopia of resources and provide 56 billion gallons of water per day for municipal, agricultural and industrial use.

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NOAA's Great Lakes Environmental Research Laboratory set out to operate completely petroleum-free vessels as the main objective of the Green Ship Initiative.

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The ships in the Green Ship Initiative are the first in the federal fleet to run on B100 and also the first to be completely non-petroleum based.

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On the heavily traveled Great Lakes, biodiesel innovations by the Great Lakes Environmental Research Laboratory are helping the big ships and their operators to be better environmental stewards.

Treading Lightly on the Great Lakes

"Monocrops," "genetically modified organisms" (GMOs) "imported feedstocks" are words that, for those who advocate a more sustainable approach to production, taint the reputation of biofuels. Biodiesel produced in untenable ways often gets a bad rap in the media for its adverse environmental impacts, and justifiably so.. Unsustainable biofuels development has the potential to lead to disastrous consequences. Lucrative palm oil prices inspire the destruction of environmentally priceless rainforests to make way for palm plantations. Worldwatch Institute recently predicted that a surge in jatropha plantings for biodiesel production "will likely pull the last string of ecological collapse" in environmentally sensitive southwestern China, where natural forests are already shrinking rapidly. The transport of feedstock and fuel-whether it's across the United States or the Atlantic Ocean-is another source of carbon emissions.
 
 The oft-used battle cry for the fuel, "Biodiesel is good for the environment, the economy and energy security," rings hollow in light of these happenings. In response, Worldwatch Institute is slated to release a paper this summer titled "Are Biofuels Sustainable?" Sustainability, as Worldwatch biofuels expert Suzanne Hunt explains it, refers in part to its economic benefits. "It is essential that the biofuels industry be developed in ways that spread the economic benefits as widely as possible, rather than replicating the disastrous concentration of wealth that has marked the petroleum industry in countries such as Nigeria and Saudi Arabia," Hunt says.

 
 There are many definitions and aspects to sustainability. In 1987, the World Commission on Environment and Development defined sustainable development as that which "meets the needs of the present without compromising the ability of future generations to meet their own needs."
 
 Several government entities are also researching how to make biofuels sustainable and are establishing criteria. In the Netherlands, a project group was commissioned to formulate sustainability criteria for the production and processing of biomass for energy, fuels and chemistry. The group submitted its final report, "Criteria for Sustainable Biomass Production," to the Dutch government in April.
 
 In May, the energy division of the United Nations, UN-Energy, released a report intended to provide a framework for the worldwide use of bioenergy in sustainable methods. The report, "Sustainable Energy: A Framework for Decision Makers," was funded by the UN Food and Agriculture Organization. It examines bioenergy's relation to poverty, health, food security, agriculture, climate change, finance and trade.
 
 Although the report emphasizes the benefits of bioenergy in reducing poverty, improving access to energy and promoting rural development, it also warns that "unless new policies are enacted to protect threatened lands, secure socially acceptable land use and steer bioenergy development in a sustainable direction overall, the environmental and social damage could in some cases outweigh the benefits."
 
 To ensure that benefits from biofuels are realized, the report suggests that national decision makers create bioenergy policies that take into account availability, access, stability and utilization. It also recommends that governments weigh the economic and social costs of subsidizing bioenergy sources-in particular, liquid biofuels.
 
 Certified Sustainable
 Within the United States biodiesel industry, the discussion is just beginning. In December 2006, actress Daryl Hannah; Annie Nelson, wife of country singer Willie Nelson; and Kelly King, marketing and communications director of Pacific Biodiesel, formed the Sustainable Biodiesel Alliance (SBA). The mission of the alliance is to establish a certification program for biodiesel production, similar to certifications for organic products, fair trade or the Green Building Rating System: Leadership in Energy and Environmental Design (LEED). "It will be like a seal-you'll know it was approved," says Director Heidi Quante, who previously worked to develop a similar roadmap to green the lifecycle of bioplastics. She adds that the certification may be similar to the LEED system, in which there are different levels of ratings. "The reason [organic and fair trade certifications] changed the marketplace is because there was a consumer demand for it," Quante says. "I'm reaching out to the consumer to see if there is an interest, and there has been a loud 'yes.' We want to create a robust market for biofuel made from sustainably harvested feedstocks or waste grease. There are already so many examples of sustainable biofuels. We want to uplift, support and reward those."
 
 Quante expects to have principles issued by the summer. "It's a multi-stakeholder process," she says. "We're hoping to have a rough draft or a template of criteria by the end of 2007. Once we have criteria, we'll have early adopters. We're in talks with early adopters-both refineries and users, such as large commercial fleets." 
 

 Though the criteria aren't developed yet, Quante says there are some standards that will likely be included, such as the use of local feedstocks and emission controls. "The problem with megaplants [that import feedstocks] is that we're supplanting reliance on one foreign import for another," Quante says, in reference to the importing of palm oil from Southeast Asia, which she considers similar to importing petroleum oil from the Middle East. "That's one reason why you need to ask where your biofuel is coming from." 
 
 In addition to criteria, the SBA also intends to develop a roadmap to help producers implement sustainable practices and achieve a sustainable certification. The certification isn't intended to be mandatory, but rather a set of guidelines. "Whoever wants to support sustainability in the biofuel world is more than welcome to do it," Quante says. "It's up to different entities to decide if they want to be sustainable or not." 
 
 For Quante, the logic is simple. "All foods [labels] include what's in it" she says. "We can easily do it for fuel. This allows consumers who love freedom of choice to decide what kind of green economy they want to support."
 
 Because the group is so new, Donnell Rehagen, chief operating officer of the National Biodiesel Board (NBB), wasn't familiar with its work when he talked to Biodiesel Magazine. However, he says the NBB would be interested in working alongside the organization. "I'm sure the industry would be interested, and I'm sure the customers would be interested in the production practices of the folks involved in the production of biodiesel," he says.
 
 At press time, the NBB hadn't addressed the sustainability issue. "Ninety percent of the biodiesel produced in the United States is produced by members of the NBB," Rehagen says. "I think that would speak volumes for our board to look at sustainability." 
 
 Rehagen indicates interest from the governing board but can't confidently predict what the likelihood is of the board actually addressing the issue. "I know the support is there for our industry to be one that supports sustainability, and I don't think it would be a hard challenge to adopt such a policy," he says. "A lot of issues have to come together for our goal of biodiesel production to be met. That's why it's up to our board and membership to come up with balance to help the industry grow while maintaining environmental aspects of biodiesel production."
 
 Rehagen continues, "I think sustainability is an issue that's come up much more recently as you see the industry grow exponentially over the past several years. It definitely deserves attention, and I think you'll start to see attention given. The industry has positive goals to do the right thing. Sustainability is a key to the viability of the industry."
 
 The topic may have prominence at the 2008 National Biodiesel Conference, Rehagen tells Biodiesel Magazine. "I'm not sure we'll have an entire track related to sustainability, but you'll see sustainability be a common theme," he says, noting that most of the topics and presentations will be decided later this summer.

 
 A focus on sustainability in biodiesel could tackle several specific topics, from energy efficiency to a basic course on sustainability. "The larger biodiesel community uses the word sustainable, and we want them to understand the deeper meaning of that word so they can really be 'sustainable,' says Sara Hope Smith, who has been involved with various movements. She was an organizer for the Sustainable Biodiesel Summit, and is now pursuing a degree in renewables, energy efficiency and resource management. 
 
 As defined by Smith, sustainable biodiesel is produced and distributed regionally; sourced from locally harvested, non-GMO crops; and incorporates regionally specific attributes. It's in balance with the local energy systems. A relationship develops between the consumers and distributors, the producers and farmers, and ultimately throughout the community. "My personal vision is that we learn to live within the limits of the resources that we have," Smith says. "The thinking of limitlessness is what got us into trouble in the first place with petroleum. The American public needs to learn to live within its means, to balance our environmental and economic budgets. That's the heart of sustainability in many ways–living within means but having a big picture of what those means are."
 
 Smith says biodiesel producers must evaluate all aspects of production. "Begin with regionally appropriate feedstocks from local, non-GMO sources," she says. "The next step is how you are producing it. Find ways to produce fuels that use less energy, cut out wasted efforts, or reuse the 'waste' as a resource. Finally, serve your local markets first."
 
 Lyle Estill, a community-based biodiesel producer, has his own list of questions that producers should ask. "We cannot flatten the developing world and ship palm oil to America and call it sustainable," Estill says. For him, the most important criteria for sustainability would be utilizing local feedstocks, followed by energy sources. "What are you powering your plant with?" he asks. Is the plant fueled by renewable glycerin or is it coal-fired electricity?
 
 Estill is the founder of Piedmont Biofuels in Pittsboro, N.C. Piedmont has become a model of sustainability and an example of how a community might fuel its needs in what Estill calls "hometown security." Those at Piedmont are self-described "energy fanatics." Solar panels are used for hot water heat, and photovoltaics generate electricity to power the fuel pumps. "We're selling inside a very narrow area," he says. "In Piedmont thinking, we would argue that there should be a 1 MMgy plant on the edge of every town in North Carolina. We would think that 100 1 MMgy plants is infinitely preferable to one 100 MMgy plant."
 
 He continues, "From a sustainability standpoint, where we have lost our way is the assumption that big is always better-economies of scale. So you bring the palm oil in from Indonesia, then ship the biodiesel from Seattle to North Carolina. That's not sustainable; that's business as usual, and that's what got us into this mess. All industries across all sectors are starting to have to shift because you can't just spend more than you earn, and that's what we tend to do with energy today."
 
 Anduin Kirkbride McElroy is a Biodiesel Magazine staff writer. Reach her at <a href="mailto:amcelroy@bbibiofuels.com">amcelroy@bbibiofuels.com</a> or (701) 746-8385.

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Actress Daryl Hannah; Annie Nelson, wife of country singer Willie Nelson; and Kelly King, marketing and communications director of Pacific Biodiesel, formed the Sustainable Biodiesel Alliance.

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Piedmont Biofuels uses solar technology to power much of its equipment, including this fuel dispenser.

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Piedmont Biofuels' fuel dispenser is sited in a passive solar building made of straw bales and requiring no outside electricity.

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Sure, biodiesel is made from renewable feedstocks, but is it sustainable? That question has led many to take a closer look at harnessing the benefits of biodiesel without creating unintended adverse effects, and it's spurred the formation of a group called the Sustainable Biodiesel Alliance. Standards and certification of sustainability may soon be on the way.

Certified: Sustainable

If the only distinctive feature of SeQuential Biofuels' retail gas station and convenience store was that it offered an array of biofuel blends, this by itself would be something to celebrate. Unfortunately, that sight alone is far too rare. Aptly named the Biofuels Station, this one-of-a-kind store five miles outside of Eugene, Ore., sells five different blends of ethanol and biodiesel: E10, E85, B5, B20 and B99.9. SeQuential Biofuels is a biodiesel marketer, distributor and joint-owner of SeQuential-Pacific Biodiesel, a 1 MMgy production plant-soon to be a 5 MMgy plant-in Oregon that uses waste cooking oils as a partial feedstock. While this is the only station SeQuential Biofuels owns, the marketer's branded biofuels products are sold at 33 locations in and around the Eugene and Portland areas.

 
 Retail stations generally service passenger vehicles. "In the United States, 96 [percent] to 97 percent of passenger vehicles are gasoline-powered-not diesel or flex-fueled, but straight gasoline-powered," says Tomas Endicott, cofounder and managing board member of SeQuential Biofuels. Endicott is also the company's policy and marketing lead. "Clearly, the largest-selling fuel is E10," he says. "It's interesting that it's a foot in the biofuels door. It's not huge, but it introduces the customers to the seamless nature of E10 gasoline." The renewable fuel is blended into nearly half of all the gasoline sold in the United States at various low-level blends up to 10 percent. As far as biodiesel is concerned, Endicott says his part of the country perhaps is more familiar with the higher blends than any other region. "Oregon has some of the best availability of B20 and B99 in the nation," he tells Biodiesel Magazine. 
 
 Although offering five different biofuels blends is unique, it's not the only feature that sets the Biofuels Station apart from other typical retail gas stations. There's much more innovations to celebration at this particular pumping station. "Most people's perceptions of gas stations are that they are dirty, dingy places, but that's not always true," says Ian Hill, cofounder of SeQuential Biofuels. Hill is also a managing board member of the company and its development lead. He has been instrumental in the conceptualization of this biofuels-only station, a design that treads on the environment lightly and takes energy consumption seriously.
 
 Biofuels Station Origin
 The history of the location where the SeQuential Biofuels' retail station sits is not an uncommon story. "It started in 1988," Hill says. "There was a gas station, and the surrounding neighborhood began to complain that their water tasted like gasoline." Drinking water from the surrounding neighborhood came from a well in close proximity to the gas station. The department of environmental quality began its investigation immediately, which ultimately found that leaky dispensers and fuel lines-not faulty underground storage tanks, as is often the case-were the culprit. "The owner declared bankruptcy, and the station closed in 1989," Hill says. "Then it became a toxic hot potato. It went through three owners, and eventually foreclosure."
 
 Oregon's Lane County took possession of the poisoned land. After some time, SeQuential Biofuels began participating in talks with Lane County and various agencies. The biodiesel marketer wanted a station to call its own-one that was more environmentally sound than most. With funds from the U.S. EPA, the site is still undergoing cleanup and is now only a year away from getting the environmental stamp of approval stating "no further action" needed, meaning the remediation was successful. SeQuential Biofuels has a lease-purchase agreement with the county, which still owns the land. When the site is given the all-clear, the biofuels company has the option of taking over ownership.
 
 The idea for this special station to be situated on a remediated brownfield area was to blend green-building practices and sustainable development with the more conventional concepts of traditional refueling and convenience store combinations. "We're doing two things here," Endicott says. "We're creating a more sustainable, renewable space, and then we're inviting people in by giving the customer what they really want. We're educating and adapting." The company, and the knowledgeable and progressive college students who work as attendants at the Eugene-based Biofuels Station, are educating people about renewable fuels and sustainability. At the same time, the company is adapting to its customers' desires.
 
 "We first came up with the concept after spending years as biodiesel enthusiasts," Hill says. "Speaking with customers and consumers, we realized that there's a real desire for a different fueling experience outside of the routine. Consumers want to have an experience in which they feel good about how their dollars are spent. So it all started by articulating a vision, vis-à-vis a business plan." 
 

 Conveniently, Hill's mother owns her own architecture firm, so when it came time to realize green-building concepts, she was instrumental. The general contractor, Pacific Northern Environmental Corp., was chosen for its expertise in the arena of sustainable development. Also, significant efforts were made to procure regionally produced building materials. 
 
 Powering Up 
 SeQuential Biofuels wasn't interested in trying to create a sustainable station that utilized power derived from coal. Therefore, the canopy to be situated over the fuel dispensers, which most all fueling stations have, was built with 244 solar panels to provide up to 33 kilowatts, or up to 50 percent, of the station's electrical power needs on an annual basis. Energy Design Co., an Oregon-based company, installed the solar array. "To make the economics work, we needed a partner to realize the tax credits offered, so Easily Bros. LLC bought the system and we have a power agreement with them," Hill tells Biodiesel Magazine. The station's remaining electrical needs are provided by wind power bought at a premium from a local power provider. 
 
 The building itself was created with passive solar design in mind. This means it utilizes geographic positioning to the fullest for its specific location relative to the sun in any given season. Specially designed Clerestory windows, louvers and heat-absorbing walls all maximize the free and environmentally friendly solar energy. "We haven't had to turn on the [heating, ventilating and air conditioning] system for the last three months," Hill says. However, because the station just opened in September 2006, the design hasn't been tested year-round yet. "Our goal is to never have to turn the HVAC system on," he says. In the winter, sunshine on the thermal mass wall, which is concrete, soaks up the heat. At night, the heat from the thermal mass wall is slowly transferred into the store to keep it warm, he says. 
 
 Celebrating Life, Clean Water
 The impressiveness of this store doesn't stop here. The roof of the Biofuels Station, which is built on a 12-by-2 slope-fully visible to passersby-is alive. A living roof adorns the top of the convenience store, and its six inches of soil are loaded with 5,000 individual plants, including native Oregon species of low-growing succulents, bulbs for seasonal colors and wildflowers. The living roof has several beneficial environmental effects, including bioswales that are landscaped into the design to help filter surface water runoff with "bioremediating" plants. "The purpose of the green roof is to slow the movement of the storm water, so we don't have a big rush of water, or flash floods," says Hill, who explains that the water-channeling bioswales can hold up to a year's worth of runoff water. "[Our system] also cleans the water, which generally dumps into our lakes, rivers and streams." The progressive system also reduces storm water service fees, making it economical as well as eco-friendly. The roof also provides excellent insulation with the soil and foliage, keeping the store cool in the summer and warm in the winter. It also reduces the heat island effect, a contributor to global warming. 
 
 Aside from all of the attractions built into this store-the five blends of biofuels, the solar array, passive solar design, the living roof and eco-sensitive water system-the products in the store are one of the customers most favored features of the Biofuels Station. "Traditionally, convenience stores offer low-quality food," Endicott says. "We serve about a 60-to-40 mix of natural foods and conventional foods-like kettle-cooked chips and Blue Sky soda. Blue Sky is made with organic ingredients and lacks additives like high-fructose corn syrup. "We sell a good mix of locally made micro brews, but at the same time, we sell 12-packs of Pabst Blue Ribbon," Endicott says. Snack maker Kettle Foods provides SeQuential-Pacific Biodiesel with some of its used cooking oils for biodiesel production. A Sweet Life Patisserie exists in an annex inside the convenience store, as well. This is a local coffee shop and bakery, which, as its name implies, offers gourmet sweets among other things. 
 
 An Earth Day Celebration was held at the Biofuels Station on April 21, one day prior to the eco-holiday. Unfortunately it was a rainy day, which suppressed the expected turnout. "It was a classic western Oregon Earth Day," Hill says. Oregonians aren't guaranteed sunshine until July, Endicott explains.

 
 SeQuential Biofuels has received a sizable grant from the city of Portland to build a second Biofuels Station there. A comment box in the Eugene station receives one particular suggestion more so than any other: Please build more. 
 
 "Our goal is to roll out two more this year," Endicott says. With a grant in hand from the city of Portland, one station is sure to be built there, and the other may be built in either the Portland or Eugene areas. Once the sites are selected, Hill and Endicott say each of the refueling centers will only take a few months to construct after all the permits are secured because the knowledge base is in place. "Our design/build team is more educated now," Hill says, referring to the unknowns associated with an Alpha site like the Eugene-based Biofuels Station. "Having gone through the first one, there will be much less head-scratching going on."
 
 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.

E10 and E85 are available at the Biofuels Station, which offers five different biofuels blends.

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The Biofuels Station offers an array of biodiesel blends, including B5, B10 and B99.9.

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Attendants at the Biofuels Station in Eugene, Ore., are knowledgeable about renewable fuels and their station's unique systems. In Oregon, policies disallow self-serve gasoline.

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The roof of the convenience store, being tended by a worker in the foreground, features six inches of soil and thousands of bioremediating Oregon-native plants.

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Products sold inside the Biofuels Station are a 60-40 mix of natural and conventional foods, which customers say is one of the biggest attractions of the store.

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SeQuential Biofuels' retail gas station and convenience store near Eugene, Ore., has several environmentally friendly features.

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Gas stations aren't typically venues for Earth Day activities. That didn't stop SeQuential Biofuels from holding an Earth Day celebration at its Eugene, Ore.-based sustainable retail gas station-the uniqueness of which is hopefully fleeting.

The Biofuels Celebration Station

The global biodiesel industry is among the world's fastest -growing markets, with production volumes in some cases tripling over the past year. Spurred by environmental and national economic benefits, biodiesel continues to gain global popularity. World capacity, production and consumption grew 32 percent on average annually from 2000 to 2005. Production volumes were just under 2 million metric tons in 2004. Global demand reached 6.9 million metric tons in 2006 and is projected to reach 44.8 million metric tons by 2010.
 
 With industry growth-fuel quality-already the focus of numerous studies, has also taken on increased importance. To ensure the success and sustainability of the industry, the National Biodiesel Board (NBB) and other industry stakeholders-including original equipment manufacturers, and chemical and oil companies-are trying to manage and ensure that consistent quality fuel makes it onto the market and to the consumer. Fuel quality has been under added scrutiny since Minnesota's 2005 biodiesel quality issues, which resulted in filter clogging incidences. Additional scrutiny resulted from recent findings published by the National Renewable Energy Laboratory (NREL), which found that half of U.S. biodiesel samples pulled from November 2005 to July 2006 didn't ASTM standards.
 
 Although there are a number of factors that impact biodiesel quality, including the inherent stability of the feedstock, two key factors are the influence of metal contamination on oxidative stability and the storage stability of biodiesel, which will be reviewed in more detail.
 
 Feedstock Developments

 The primary feedstock for biodiesel in the United States is soybean oil. In Europe, it is rapeseed oil. In Asia, a variety of feedstocks are used depending on the region. As the biodiesel industry continues to grow, manufacturers in each region have started to deal with issues of supply and sustainability. As a result, producers have started to evaluate and qualify a broader range of feedstocks. This is critical as the fatty acid profiles have a significant impact on the fuel's property and stability.
 
 <center><img src="/images/upload/20070526014034.jpg">
 Figure 1</center>
 
 Figure 1 highlights some of the common feedstocks currently used for the production of biodiesel. Fatty acid alkyl esters age more rapidly than traditional petroleum diesel. Sunflower and soybean oil, which have a high level of polyunsaturation, are much more susceptible to oxidation than more saturated oils, such as palm. As the differing proportions of fatty acids affect the biodiesel fuel properties, including cold flow performance and resistance to oxidation, feedstock selection and the use of blends will continue to play an important role in understanding biodiesel stability and in optimizing the fuel's performance.
 
 Furthermore, as the demand for biofuels continues to increase and more farmland is dedicated to biofuel-related crop production, the biofuel industry will start to compete with crop production for animal and human nutrition. Vegetable oil prices have been influenced by the growing demand from biodiesel production. Rapeseed oil has been tracking crude oil prices since 2004. With the rapid growth of biodiesel in the United States, soybean oil prices are also expected to increase. This is another reason producers are looking to multi-feedstock systems and the ability to use an increasing array of oils to offset some of these challenges.
 
 Balancing the need for achieving optimum quality and performance, in combination with availability and affordability, will be a key driver for future feedstock development.
 
 Storage Stability and the Influence of Stabilizers
 As indicated earlier, oils and esters containing higher levels of polyunsaturation will have lower overall stability and be at a greater risk of oxidation. The products that arise during oxidation and subsequent degradation can lead to the formation of lower molecular weight acids, peroxides and polymers. Reports from equipment manufacturers, such as Bosch, Cummins and others, have shown that deposit formations and filter clogging are some of the potential results of aged or degraded biodiesel. For engine and fuel injection equipment manufacturers, one of the main concerns is the formation of insoluble gums and sediment deposits in the fuel systems that can influence vehicle operability.
 
 If left unprotected, stored fuel will degrade over time. Along with proper handling, storage and distribution, the use of stabilizers will significantly reduce oxidation and help minimize degradation. Oxidation is further accelerated by the exposure to heat, sunlight, contaminants and a variety of metals that can act as pro-oxidants.

 
 <center><img src="/images/upload/20070526014040.jpg">
 Figure 2</center>
 
 Figure 2 demonstrates that storing biodiesel, even at ambient outdoor temperatures and conditions, can have a significant impact in reducing the oxidative stability of biodiesel. What is even more notable is that, without protection, even high-quality biodiesel that initially meets ASTM D 6751 specifications drops off in stability after only nine weeks in storage. With increasing requirements to store, transport and export biodiesel, storage stability-with respect to oxidation-will be even more significant for fuel suppliers, terminal operators and distributors.
 
 <center><img src="/images/upload/20070526014055.jpg">
 Figure 3</center>
 
 As shown in Figure 3, by adding additives at varying concentrations, the same high-quality biodiesel can be maintained over the same nine-week period. The optimal concentration will ultimately be dependent on the biodiesel, as well as the length and condition of storage. Not all antioxidants and stabilizers on the market will exhibit the same level of effectiveness.
 
 To maximize protection and to provide assurance that the fuel quality is maintained through storage and delivery to the customer, it is critical that additives are usedas early in the process as possible. Once biodiesel starts to degrade, the resulting acids, peroxides or polymers that are formed can't be reversed. Other factors to consider when selecting the optimum stabilizer include product form and multifunctional performance. Liquid stabilizers are usually easier to handle and dose than solids, requiring less effort and energy to process. Some stabilizers are also multifunctional and can protect against other influences impacting stability, such as metals, providing another level of protection.
 
 Impact of Metals on Fuel Stability

 In addition to storage stability, the presence of metals in biodiesel can have a significant impact on the quality of biodiesel. Certain metals have been found to cause operability problems due to the formation of deposits and the poisoning of emission control devices. Certain metals can also catalyze reactions that cause undesired products. Recent updates to ASTM D 6751 - and specifications included in both the U.S. and European standards - have limited the concentration of metals, including magnesium and calcium, which are used as adsorbents for purifying biodiesel, and sodium and potassium, which are used as catalysts in the manufacturing process. There are other metals, such as copper, iron and zinc, that are particularly active in catalyzing the oxidation of polyunsaturated methyl esters. These metals, if present even in small quantities, may contribute to biodiesel instability. Figure 4 illustrates that less than one part per million (ppm) consisting of metals such as copper and iron can drastically decrease the stability of biodiesel when evaluated by the Rancimat method. (EN 14112)
 
 <center><img src="/images/upload/20070526014111.jpg">
 Figure 4</center>
 
 Although it is recommended that copper, brass and zinc metals are avoided in tanks and fittings, it isn't always possible to eliminate all potential exposure from production to distribution and use. For instance, copper may be introduced through the use of brass valves or fittings. In addition, steel-which is commonly used for storage tanks or in reactors-contains iron. Figures 5 and 6 illustrate the efficacy of several stabilizers in addressing the impact of copper- and iron-induced degradation. These metals can lead to decreased fuel stability and potential sediment formation. The levels of sediment from metal-catalyzed degradation could be even higher than otherwise observed with regular biodiesel. As not all stabilizers are able to protect biodiesel from the influences of trace-level metals, it is essential to look for stabilizers that are also able to offer protection against these metals during additive selection.
 
 <center><img src="/images/upload/20070526014127.jpg">
 Figure 5
 
 <img src="/images/upload/20070526014137.jpg">
 Figure 6</center>
 
 Conclusions

 Driven by new regulations and incentives for manufacturers to employ fuels from renewable sources, the biodiesel industry has experienced remarkable growth. One of the key factors influencing long-term market sustainability will be the industry's ability to supply consistent and acceptable biodiesel. While product standards have improved, they will continue to be reviewed and updated to meet the changing requirements and needs for fuel quality. 
 
 With the adoption of an oxidative stability specification in ASTM D 6751 in 2007, the EN 14214 and ASTM D 6751 standards now mandate a minimum level of stability. Even so, NREL has reported that even if a fuel meets current standards, engine manufacturers and fuel consumers are concerned about the durability of engine and fuel system components. Although enhanced measures for assessing and understanding the impact of fuel quality may eventually lead to more stringent requirements for the future, proactive measures must be taken by manufacturers and distributors to fully ensure fuel quality and stability during storage and distribution. The use of stabilizers provides an easy and essential means to ensure the long-term stability and quality of biodiesel.
 
 With the use of the appropriate additives, producers of biodiesel are able to meet regulated specifications and address performance-related concerns. Such additives provide solutions to poor oxidative stability and create a uniform fuel source regardless of the original feedstock, even if presented with negative influences, such as metals. Improved quality can be achieved and assured through the adoption of and adherence to appropriate specifications and, more importantly, in undertaking activities that will allow the industry to achieve long-term, sustainable growth.
 
 Natalie Li is the global marketing manager for Ciba Specialty Chemicals. For more information, contact <a href="mailto:biodiesel@cibasc.com">biodiesel@cibasc.com</a> or (914) 785-2304.

Fuel Quality: Solutions for Storage Stability and Protection from Oxidation

Biodiesel is produced from vegetable oils and animal fats through a process called transesterification. During this process, the vegetable oil or animal fats react with methanol in the presence of a catalyst to produce a mixture of free fatty acid methyl esters (FAME) and glycerin. In order for biodiesel to be sold as a fuel or blending stock, it must meet a set of requirements defined in the American Society for Testing Materials (ASTM) D 6751 standard or the European Committee for Standardization (CEN) EN 14214 standard. These standards specify the maximum allowable concentrations of contaminants in pure biodiesel (B100), including water, methanol and total glycerin.
 
 Fuel meeting these specifications should be clear in appearance and free of water. The presence of water generally indicates poor fuel handling practices. Water can have a great impact on diesel engines, including the corrosion of steel fuel system components. In addition, water can cause improper combustion and microbial growth. The level of water specified in the regulations is within the solubility level of water in fuel and, as such, does not represent free water. High methanol content in B100 can also lead to engine problems, including long-term corrosion and adverse effects on injector performance since it increases its volatility. Total glycerin content is a byproduct of biodiesel production. High levels of glycerin in B100 or biodiesel fuel blend can result in fuel separation, material incompatibility, injector carbon buildup, storage difficulties and transportation problems. 
 
 The ASTM and CEN standards have established limits to allow measured results of water, methanol and total glycerin to be compared with a maximum level acceptable for proper engine operation. More specifically, the maximum allowable concentration for water is 0.05 percent by volume, 0.2 by volume for methanol and 0.24 by volume for total glycerin. Any B100 batch not meeting these requirements can contaminate the entire supply chain with catastrophic economic consequences. Therefore, biodiesel producers must test their finished product to ensure compliance. However, the cost of third-party laboratory testing can significantly add to the cost of producing a single batch. In fact, the cost of sending noncompliant samples for third-party laboratory testing can be as high as $1,200 per sample.
 
 When an acceptable test method for water, methanol and total glycerin in a fuel blend is used, a limit value can be established. ASTM and CEN regulations both specify, a centrifuge method, flash point tester and a high temperature gas chromatographer for this analysis. However, spectroscopic techniques, such as near infrared spectroscopy, are being increasingly utilized for quality control purposes to measure multiple components with one simple test method. 
 

 Testing with Spectroscopy
 Encoded photometric near-infrared (EP-NIR) spectroscopy facilitates a simple, yet process-rugged, photometric design whereby the incoming near-infrared beam from a sample is imaged onto a diffraction-grating-based spectrograph. The dispersed radiation from the grating is then imaged across an aperture onto the surface of an encoder disk, which is spinning at 6,000 revolutions per minute (rpm) at 100 hertz (Hz), providing ultra-fast, real-time detection. The encoder disk has a series of reflective tracks spatially located within the dispersed grating image to correspond to the wavelengths and wavelength regions used for the analysis. Each track has a pattern that produces a reflected beam with a unique sinusoidal modulation for each individual wavelength. The reflected beams are brought to an image on a single detector, which generates a signal similar to a discrete interferogram. The intensity contribution for each wavelength component is obtained by applying a Fourier transform to the interferogram. 
 
 EP-NIR spectroscopy features an ultra-fast scanning capability of 100 scans per second, enabling simultaneous measurement of multiple components in low parts per million (ppm) ranges. The end result is high sample throughput, real-time quality-control monitoring and extreme sensitivity through spectral averaging. In addition to the ultra-fast sample processing capability, EP-NIR spectroscopy is also capable of covering a spectral range of 1,375 to 2,750 newton meters (nm) compared with conventional NIR systems that normally stop at 2,100 nm. As a consequence, EP-NIR 1,375 to 2,750 can meet the analytical requirements of a wide range of applications, such as protein purification and separation, protein and fat analysis, petrochemicals, and alcohols or starch. 
 
 Although EP-NIR spectrometers have been designed to deliver full spectrum information, they are free from environmentally sensitive components. The units don't utilize any hygroscopic optical components or internal lasers. In addition, EP-NIR technology has met military certification standards for vibration resistance. A high-frequency vibration resistance test was performed to determine the effect of vibration on component parts of the EP-NIR analyzers in frequency ranges of 0.5 to 30 Hz. The units demonstrated no degradation in electrical or photometric performance during or after the test. The photometric performance was further tested by collecting spectra as vibrations were applied to the analyzer. Even under the stress of such vibrations, EP-NIR analyzers retained photometric performance and met root mean square (RMS) signal-to-noise specifications greater than 50,000 to 1. 
 
 Return on Investment for B100 producers
 EP-NIR spectroscopy offers B100 producers many significant benefits, including speed of analysis, non-destruction of samples, ease of use and low cost of ownership since the use and subsequent disposal of chemicals is virtually eliminated. EP-NIR spectroscopy, as with other secondary analytical methods, wasn't designed to replace the official analysis method. Nonetheless, as a screening method, it can deliver immediate results in a cost-effective manner to exonerate as many batches of B100 as possible from the requirement of costly and lengthy reference method analyses by third-party laboratories. 
 
 A study was designed to test the accuracy of EP-NIR spectrometry for the simultaneous measurement of water, methanol and total glycerin in B100 samples. A multi-component 2750 EP-NIR analyzer was used in conjunction with an external halogen NIR source and an extended range two millimeter path length process transmission multimode fiber probe. Synthetic biodieselsamples were prepared using an orthogonal experimental design in order to achieve maximum variability of B100 composition with a minimum number of calibration standards, while avoiding colinearities between components. Samples were prepared from four fractions, namely B100 (0.19 percent total glycerin, 0 percent methanol and 0 percent water), methanol (collected at the B100 production site), total glycerin (collected at the B100 production site) and distilled water.
 
 Concentration ranges covered were 0 percent to 0.1 percent by volume for water, 0.1 percent to 0.3 percent by volume for methanol, and 0.19 percent to 0.3 percent by weight for total glycerin. All samples were analyzed in four replicates. Calibration models using principle least square (PLS) and principle components regression (PCR) were developed using trademarked software suite GRAMS AI 8.0. In all cases, spectra pretreatment consisted only of a mean centering to enhance small spectral variations and an automated two-point baseline correction of all the absorbance spectra to improve stability of the signal. F-test statistical analysis was performed to identify outliers. The graphing of the standard error of cross validation as a function of the number of factors in the method and a prediction residual error sum of equals were used as criteria for the determination of the number of factors to include in each calibration model.
 
 The Pearson's Product Moment Correlation (R2, indicating the quality of the fit of the calibration model) and the root mean of the standard error of calibration (RMSEC) were the statistical outputs used to quality the accuracy and precision of the methods.. An accuracy of 95 percent confidence was defined as plus or minus two multiplied by RMSEC, and precision was defined as the average of standard deviation of the residual calculated concentrations for each set of four replicate results.

 
 Results and Discussion
 Figure 1 reports the accuracy and precision levels of the EP-NIR method using three different algorithmic approaches. Water contamination was measured at 0.038 percent by volume or less. Methanol contamination was estimated at 0.184 percent by volume or less, and total glycerin contamination was measured 0.221 percent by volume or less.
 
 <center><img src="/images/upload/20070526015422.jpg">
 Figure 1
 
 <img src="/images/upload/20070526015428.jpg">
 Figure 2
 
 <img src="/images/upload/20070526015433.jpg">
 Figure 3
 

 <img src="/images/upload/20070526015438.jpg">
 Figure 4</center>
 
 With regards to the measurement of water in B100, best analytical results were obtained using the peak cell rate algorithmic approach (Figure 2). R2 was 97.86 percent, RMSEC was 58 ppm (resulting in a 95 percent confidence accuracy measurement of plus or minus 117 ppm), and precision was 58 ppm. The PLS1 algorithmic approach was proven best for measuring methanol and glycerin (Figures 3 and 4). In the case of methanol, R2 was 98.87 percent, RMSEC was 95 ppm (resulting in a 95 percent confidence accuracy in measurement of plus or minus 189 ppm), and precision was 91 ppm. For glycerin, R2 was 91.28 percent, RMSEC was 145 ppm (resulting in a 95 percent confidence accuracy in measurement of plus or minus 290 ppm), and precision was 144 ppm. Overall, glycerin was the most difficult compound to model. The difficulty of the measurement can be better understood when looking at the chemical nature of the compound in relationship to the other molecules present in the matrix. 
 
 From a chemometrics viewpoint, it appeared that the preprocessing of the absorbance spectra (mean centering and two-point automated baseline correction) had much more impact on improving the accuracy and precision of the measurement than switching from one multivariate algorithmic approach to the other (PLS1, PLS2 and PCR).
 
 In conclusion, EP-NIR spectroscopy achieved a level of accuracy of 95 percent confidence for all measurements. As a result, EP-NIR spectroscopy can amply meet the ASTM-defined analytical requirements for the measurement of water, methanol and total glycerins in B100. Assuming that manufacturing of the synthetic samples was constant, it was observed that the least interfered chemical (water) produced the most accurate results, whereas the most interfered chemical (glycerin) produced the least accurate results. Furthermore, from a chemometrics viewpoint, it appeared that the preprocessing of the absorbance spectra had much more of an impact on improving the accuracy of measurement than switching from one multivariate algorithmic approach to the other.
 
 Experimental results prove that EP-NIR spectroscopy is capable of producing accurate results for the simultaneous measurement of water, methanol and total glycerin in B100 samples. Prescreening the samples using EP-NIR spectroscopy eliminates the costly number of noncompliant samples sent for third-party analysis, thus achieving significant cost savings for biodiesel producers.
 
 Mike Beauchaine is the international sales engineer for Aspectrics Inc., a Pleasanton, Calif.-based company providing original equipment manufacturers with infrared spectroscopy technology. For more information, please contact Celine Callender at (+44 1 606 837 787) or <a href="mailto:pr@scottmail.co.uk">pr@scottmail.co.uk</a>.
 
 The claims and statements made in this article belong exclusively to the author(s) and do not necessarily reflect the views of Biodiesel Magazine or its advertisers. All questions pertaining to this article should be directed to the author(s).

Measuring Water, Methanol and Total Glycerin in B100 Samples

Making biodiesel is easy, but what about the rest of the paperwork, permits, plans, programs, training and record-keeping? There are a lot of regulatory issues facing the producer, and there isn't a simple list that includes everything that must be done. It's not easy for a start-up company to know all the requirements. Even plants in full production may not know if they are compliant with all the regulatory agencies. Once a plant is up and running, there is little time for anything but keeping production running smoothly.

 
 Use the following information as a guide to make sure you have everything in place to be in compliance with various regulatory agencies:
 
 Permits to Construct
 
 Air quality construction permit: Permits are required for the construction, installation or modification of equipment that emits one of seven criteria pollutants or 203 hazardous air pollutants (HAP). The main air emission from biodiesel production is methanol (a criteria and HAP pollutant) from the handling, storage and distillation processes. 
 
 New Source Performance Standards: Additional air emission standards, referred to as New Source Performance Standards (NSPS), apply to certain types of equipment. NSPS standards require qualitative and/or quantitative performance testing once the equipment is operational. 
 
 Wastewater NPDES permit: If a biodiesel plant doesn't discharge to a publicly owned treatment works, industrial wastewater from plant operations can't be discharged until a National Pollutant Discharge Elimination System (NPDES) permit is obtained. The permit will specify the limits on the types and amounts of pollutants that can be discharged to a stream or applied to land.

 
 Pretreatment permit: A biodiesel plant must obtain a pretreatment permit before discharging wastewater to a publicly owned treatment facility, because it may contribute a significant hydraulic or pollutant load to the wastewater treatment facility.
 
 Domestic wastewater National Pollutant Discharge Elimination System permit: Plants that opt to dispose of domestic waste either to the surface (lagoon) or below-grade (absorption field) will be required to permit the septic system.
 
 Storm water NPDES permit for construction activities: Construction projects with a land disturbance greater than one acre are required to obtain an NPDES general permit for "construction activities." Contractors must develop and implement a Storm Water Pollution Prevention Plan (SWPPP) and use Best Management Practices (BMP) to prevent and mitigate soil erosion and the potential off-site effects of water pollutants carried in storm water runoff.
 
 Flammable and combustible liquids storage permit: State law regulates facilities that store, handle, or use flammable or combustible liquids. A permit from the state fire marshal is required to construct, install or modify storage facilities. Many states have adopted the "National Fire Protection Association (NFPA) 30 Flammable and Combustible Liquids Code (2000 edition). Feedstock (vegetable and rendered oil) and methyl ester (biodiesel) have a flash point greater than 300 degrees Fahrenheit. These are Class IIIB combustible liquids, defined as having a flash point greater than 200 degrees Fahrenheit. Class IIIB combustibles aren't tightly regulated by the state fire code. Methanol has a flash point of 52 degrees Fahrenheit and a boiling point around 148 degrees Fahrenheit. This is a Class IB flammable liquid, defined as having a flash point less than 73 degrees Fahrenheit and a boiling point greater than 100 degrees Fahrenheit. Class IB flammables are tightly regulated by the state fire code.
 

 Permits to Operate
 
 Air quality operating permit: All sources of air pollution, excluding de minimis sources, are required to obtain an operating permit once the installation or modification is complete. Operating permits are legally enforceable documents that enable authorities to more effectively enforce air pollution rules by recording all permit conditions in one document, and requiring reporting to track emissions and compliance. Conditions of a construction permit will carry over to the operating permit.
 
 Storm water NPDES permit for industrial activities: Biodiesel plants are required to obtain an NPDES general permit for "industrial activities." Plants must develop and implement an SWPPP and use BMP to prevent and mitigate the potential off-site effects of water pollutants carried in storm water runoff. Site drainage must flow to a storm water retention pond. An annual review must be conducted to ensure and document compliance.
 
 Plans and Programs
 
 Occupational Safety and Health Administration general industry safety programs: Under the Occupational Safety and Health Administration (OSHA) standard 29 Code of Federal Regulations (CFR) Part 1910, all employers are required to provide a safe work place for their employees. A comprehensive safety program involves many aspects, including education; training; drills; the dissemination of information; inspections; monitoring; testing; analysis; record-keeping; and written plans, procedures and programs.

 
 OSHA Process Safety Management: 29 CFR 1910.119 requires facilities that process 10,000 pounds of flammable liquids and gases (methanol) or threshold quantities of one of 137 highly hazardous chemicals (HHCs) to implement a systematic safety management system to prevent or minimize the effect of a catastrophic release of toxic, reactive, flammable or explosive HHCs. Similar to the Risk Management Program, Process Safety Management is a detailed safety program that is specific to each process. It requires additional accident prevention exercises, training and documentation.
 
 Department of Transportation (DOT) site Vulnerability Assessment, Site Security Plan and Training: 49 CFR Part 172 requires facilities that transport or offer to transport hazardous materials in placardable amounts to conduct a Site Vulnerability Assessment and implement a Site Security Plan. All employees who transport and handle hazardous materials are required to have hazardous material training every three years. Plants are also required to obtain an annual DOT HazMat Registration under USDOT 49 CFR Part 107.
 
 Risk Management Program: Clean Air Act Section 112r, codified in 40 CFR Part 68, requires facilities that handle any one of 77 toxic substances and 63 flammable substances in threshold quantities to implement a Risk Management Program that identifies and controls on-site hazards to prevent potential off-site effects. Off-site release modeling is required. A nine-section summary of the program, called a Risk Management Plan (RMP), must initially be submitted to the U.S. EPA and resubmitted at least every five years thereafter. Hydrochloric acid (37 percent concentration or greater) of 15,000 pounds qualifies. Risk management rules don't apply to methanol, sulfuric acid or hydrochloric acid in concentrations less than 37 percent. They aren't listed substances under 40 CFR Part 68.130.
 
 Spill Prevention, Control and Countermeasure Plan: 40 CFR Part 112 requires facilities that handle bulk oil (55 gallons or more) in aboveground storage tanks with threshold amounts of (1,320 gallons)to prepare and implement a Spill Prevention, Control and Countermeasure Plan to prevent an oil spill from reaching navigable waters of the United States. Storage capacities over 10,000 gallons must be initially certified by a licensed engineer and recertified at least once every five years thereafter. Monthly documented inspections and annual training are required. 
 
 Reporting

 
 Emission Inventory Questionnaire: As a condition of an air operating permit, facilities are required to submit calculations of their annual emissions based on throughput by April 1 after each calendar year of operation.
 
 Chemical Inventory Reporting (Tier II): Superfund Amendment and Reauthorization Act (SARA) Title III Emergency Planning and Community Right-to-Know Act (EPCRA) Section 312, codified in 40 CFR Part 370, requires facilities that have on hand at any time hazardous chemicals in excess of 10,000 pounds or one of 378 extremely hazardous substances in reportable quantities, to report the maximum amounts of these substances to the State Emergency Response Commission (SERC) and their local fire department on a Tier II form annually by March 1 for the preceding calendar year. Filing methods vary among states including paper, diskettes and web based.
 
 Toxic Release Inventory: SARA Title III EPCRA Section 313, codified in 40 CFR Part 372, requires facilities that process 25,000 pounds or use 10,000 pounds of one of 300-plus toxic chemicals to report releases in the form of a mass balance to the EPA on Form R or Form A. Reports must be submitted annually by July 1 for the preceding calendar year. Toxic chemicals used in the biodiesel industry include methanol.
 
 Jenny Boeckman is the manager of communications with Regulatory Consultants Inc. (RCI). Boeckman has been guiding clients through regulatory questions and concerns for over 10 years. RCI is an industry leader providing businesses with innovative solutions to address regulatory compliance and risk management for more than 18 years. Boeckman can be reached at (800) 888-9596, ext. 213, or <a href="mailto:jenny.boeckman@rci-safety.com">jenny.boeckman@rci-safety.com</a>.
 
 The claims and statements made in this article belong exclusively to the author(s) and do not necessarily reflect the views of Biodiesel Magazine or its advertisers. All questions pertaining to this article should be directed to the author(s).

The Regulatory Requirements of a Biodiesel Producer

In today's economy, the competition in the biodiesel and ethanol industries is heating up, and owner/operators are rushing to build their plant and create shareholder value as quickly as possible. Therefore, it is important to continually look for opportunities to reduce costs and enhance returns on investment. One important, but often underutilized, method is through the negotiation of state and local government incentives. If properly negotiated, incentives can reduce startup and ongoing operating costs from 10 percent to 30 percent. However, before any contact is made with local officials, and certainly before choosing a site–there are 10 key strategies that should be implemented to maximize the value of incentives for your production facility.

 
 1) Adopt a strict internal communications protocol for the project. This is especially true for biodiesel site selection and incentives negotiations. Many projects have been compromised and the negotiating leverage diminished when inaccurate information gets into the public realm. Even a slight departure from your message or an in a local grocery store comment about your company's plans in a local grocery storecan jeopardize your option on the ideal plant site, your product offtake contract, or worse-your entire project. Designating a single point of contact, whether internally with the company or through a consultant, who is responsible for all communication and interaction with government professionals or the media is the most effective strategy.
 
 2) Create and maintain a competitive environment. As with any negotiation, maintaining leverage is the key to getting the most from an incentives package. As soon as a list of viable cities and states has been developed, it is critical that a competitive landscape be created. It is even more important when the short list of two or three finalist locations is determined to ensure that each location understands that it is still in a competitive environment. When a community or state believes it "has the deal," your negotiating leverage may be compromised. Maintaining a legitimate and competitive site selection landscape until all agreements and terms are signed ensures that each alternative location will continue to offer its best deal. 
 
 3) Clearly demonstrate the benefits of your project and business to the community. Although the general public is becoming more aware of biodiesel, some education may still be necessary for community leaders to become advocates of your production facility. For many projects, the use of an economic impact study by an objective third party will provide an independent view of the benefits that the various taxing jurisdictions will receive by attracting your project. Such a study helps provide the cost/benefit analysis that the public wants to see when determining the extent of financial incentives to be awarded. It also offsets the mystery that sometimes surrounds the renewable energy industry. 
 
 Understanding the benefits to the community allows the government's economic developers and elected officials to stand behind what otherwise might be viewed as an overly aggressive incentives package. Most communities are more than willing to incur short-term costs in return for permanent economic and fiscal gains created by your project. It is possible, and indeed desired, for both the company and the community to be perceived as the "winner" in the incentives negotiation process. 
 
 4) Know what to ask for and when to ask for it. The most effective negotiator knows what the opposing side is authorized to offer. Commencing a negotiation without this knowledge can lead to a good deal of unnecessary tension and frustration for everyone. It is incumbent on the company to outline a detailed list of incentives that are within the government's authority to offer, and that will bring significant value to the company's bottom line. Simply asking, "What can we get for our project if we bring it here?" will result in a "standard" incentive package and may establish the wrong expectation. Also, at the point the incentives negotiations are concluding, the company should be prepared to request a deal closer, meaning if the city and/or state can do "X," the company is prepared to select them for the project. The goal isn't to get an incentive proposal; rather, the goal is to negotiate an incentive package that has maximum long-term value to the company.

 
 5) Maximize the impact of tax rulings. Oftentimes, a favorable income tax apportionment ruling will far exceed the value of the best standard economic development package. In addition, state and federal tax credits now available specifically for biodiesel production projects may be mutually exclusive or will negate the value of other standard tax credits. Conversely, due to early stage (start-up) operating losses or other reasons, some tax credits may not provide any immediate or future value to the company. In this instance, government officials offering the incentives should be informed and given the opportunity to offer other alternatives that are of immediate value to the company. In all instances, the company's internal tax department should be involved in developing the negotiating strategy and list of incentives being sought.
 
 6) Don't overlook no-cost or nonfinancial incentives. During the incentives negotiation process, there will be opportunities to negotiate soft incentives, meaning incentives that don't cost the taxing entities in forgone tax revenue or grants. For example, fast-track plan review, permitting and building inspection is an incentive that may have significant value by accelerating production schedules but doesn't require the government entity to absorb out-of-pocket costs. Tax-exempt financing is another example of low-or no-cost incentives. Reaching agreement on these kinds of incentives is usually easier and establishes a positive negotiating environment that will be helpful when the negotiations get tough. 
 
 7) Recognize the first offer or the standard package. Consider the first proposal as just that-a first proposal. Like all negotiations, each party attempts to maximize its position (incentives) or minimize its impact (cost). It's reasonable and expected that there will be multiple rounds of counteroffers until the final incentives package is agreed on by all parties. At some point, the government economic developers may indicate that they have provided their "best and final offer," at which point the company can determine if that is enough to seal the deal or if the project needs to focus on another location. (If you have followed the first key-maintaining a competitive environment-there is another location still under consideration, and the development/production timeline won't be unduly delayed.) Receiving a polite "no" when requesting "sweeteners" is preferable to leaving something on the table that could have a future impact on your bottom line.
 
 8) Be conservative in your commitments. Many companies like to be overly optimistic when providing capital investment and new job creation estimates to economic developers, believing the more aggressive the numbers, the more aggressive the incentives package will be. While incentives are usually based on the proposed capital investment and job creation, it is better to be conservative than overcommitted. The company must remember that what is committed to in the negotiating room will be reported in the local news media when the project is announced. It will also likely be used as performance measurements in any formal incentive agreement. Keep your commitments reasonable and achievable.
 
 9) Be prepared for: A) A lot of paperwork: Most incentives packages will be formalized in development agreements, contracts and by state/local government ordinances. The company should include legal counsel on its project team and make sure the council is prepared to review and negotiate the language in the various legal documents that will be necessary to memorialize the incentives agreements. 

 
 B) Scrutiny of your plans by government officials: When a company requests a package of incentives in return for a new production facility, state and/or local officials will request certain information from the company that will help them prepare their proposal. Financial statements, annual reports, payroll information, etc., are commonly requested. Decide early about what you can and are willing to share. It may help to require that a confidentiality agreement or nondisclosure agreement be executed with the governmental entity. Also, make sure to understand the open records laws in the alternative cities and states, and whether government organizations are required to disclose confidential information if requested. 
 
 C) Recapture provisions: Increasingly, state and local governments are insisting on their ability to recapture those incentives, either in whole or in part, that have been received by the company if the company fails to meet its commitments. Frequently, such "clawback" provisions can be relaxed through the negotiation process. However, they are occasionally strictly mandated and could prove onerous or even punitive.
 
 10) Don't import your consultants. This isn't where you can accept a learning curve. Incentives consultants from outside the region may not be prepared or experienced enough to negotiate the best possible incentives for the company. Consultants who live in the state or a neighboring state and maintain a continual dialogue with the area's economic development and government officials will be more knowledgeable of state and local incentives programs. This allows them to know what can and can't be negotiated and should result in maximized incentives. If the company forgoes the use of a consultant and negotiates the incentives with internal resources, it should include local executives and plant managers to the extent possible. Everyone likes to work with experienced professionals who are familiar with their programs and processes. Moreover, regional resources are viewed as having a significant stake in the outcome, in that they are part of the regional community and care about their economic well being. 
 
 By applying these 10 strategies, potential biodiesel producers will be able to work effectively with the various state and local governments that are under consideration for their projects. Ultimately, the result will be a project that is characterized by that win-win situation that everyone hopes to achieve. 
 
 Eric Geisler is the director of Business Incentives Advisory for Duff & Phelps LLC, a Houston-based independent financial advisory firm. Reach him at <a href="mailto:eric.geisler@duffandphelps.com">eric.geisler@duffandphelps.com</a> or (713) 237-5359.
 

 The claims and statements made in this article belong exclusively to the author(s) and do not necessarily reflect the views of Biodiesel Magazine or its advertisers. All questions pertaining to this article should be directed to the author(s).

Factors to Consider When Pursuing Government Incentives for Your Project

Posted June 11, 2007, at 11:18 a.m. CDT
 
 A train powered by four Cummins QSK19 underfloor diesel engines is the first in the United Kingdom to run on B20 biodiesel as part of a trial program initiated by Virgin Rail Group Ltd. The Virgin Voyager went into scheduled passenger service June 7 in London and is being used to evaluate the use of biodiesel in high speed rail applications.
 
 <center><img src="/images/upload/20070611113923.jpg">
 Four Cummins QSK19 diesel engines power the Virgin Voyager on B20 biodiesel.</center>
 
 The Virgin Voyager evaluation program will provide information about the suitability of biodiesel for intensive rail operations. The B20 used in the program is being produced by Greenergy for rail applications and is a mixture of 20 percent biodiesel and 80 percent ultra-low sulphur diesel.

 
 Currently in the UK, 352 Cummins QSK19 engines are in use in the passenger rail fleet, operating a duty-cycle of up to 19 hours per day.

Cummins engines provide power for biodiesel train test

Industrial heat and control systems manufacturer <a href="http://www.chromalox.com" target="_blank">Chromalox Inc.</a> has introduced its Large Tank Flange Heater (LTFX). The LTFX is designed to provide even heating across the full length of a tank for applications such as fire water storage, asphalt, biodiesel and animal fats. The open-coil style elements can be removed without draining the tank in which it is installed, reducing process downtime. The elements can be bent to a verticle plane with as little as 36 inches of clearance.
 
 The LTFX is an electric heating unit and can be paired with a compatible control panel mounted remotely or installed on the device.
 
 General Specifications
 Connection Size: 			4 to 14 inches, 150# ANSI Flange
 Immersion Length: 			5 to 25 feet
 Operating Temperatures: 		0º to 750ºF
 Element Rating: 			4 to 240 kW
 Voltage: 				240 and 480 Vac., 3-Phase

The Chromalox LTFX can be used in biodiesel tanks to provide uniform heating throughout.

699-1294329733.jpg

Chromalox introduces electric heater for large tanks

Posted June 13, 2007, at 1:38 p.m. CDT

 
 <a href="http://www.deltabiofuels.com" target="_blank">Delta BioFuels Inc.</a> has begun biodiesel production at its recently completed facility located at Natchez, Miss. On line since May 8, the plant is operating a fully automated batch process production line capable of producing 18 MMgy. Work on the continuous flow production line capable of producing between 80 and 100 MMgy is ongoing. Aventine Renewable Energy Inc. will be Delta BioFuels' biodiesel marketer.
 
 "This is the culmination of thousands of hours of hard work and dedication," said Delta BioFuels President Clint Vegas. "The Delta BioFuels team has worked relentlessly over the past year to get this plant up and runnning. The plant started up very quickly and smoothly, which gives me confidence in our ability to be a reliable supplier of the highest quality biodiesel on a global scale."
 
 Delta BioFuels Chief Technical Officer Scott Nisula noted that the plant's step to batch production is today's news but that continuous flow production is the ultimate goal. "The high quality product we are producing right out of the starting gate is a testimony to the talents of the people that have worked so hard on this project," he said. "Now that we have passed the bath plant milestone, we are all very excited about making the leap into continuous flow operations later this summer."

Delta BioFuels begins production in Mississippi

Posted June 15, 2007, at 11:29 a.m. CDT
 
 Freedom Fuels LLC has begun production at its 30 MMgy biodiesel facility near Mason City, Iowa, becoming the 11th biodiesel plant to produce the renewable fuel in the state.
 
 "Another grassroots biorefinery is on the map in Iowa," said Monte Shaw, executive director of the Iowa Renewable Fuels Association. "New, state-of-the-art facilities like Freedom Fuels will help fill the demand for high quality biodiesel stemming from high petroleum prices and the need for lubricity in ultra-low sulfur diesel."
 
 Built by NewMech Companies Inc. and designed by SSOE and Crown Iron Works Company, Freedom Fuels employs 23 workers. In addition to biodiesel, the facility will produce 3 MMgy of glycerin and has a full laboratory on site to test all incoming and outgoing products for quality.
 

 "From the very first batch, the biodiesel exceeded specifications for quality," said Brian Stork of Core Ventures Renewable Fuels and general manager of the plant. "We are very proud of our team and the efforts they have taken to ensure the investors a quality product from the first batch. Since the plant started, all of the biodiesel that has been produced has met specifications."

June 2007

Business Briefs

DTN offers new biodiesel trading platform

Malaysian biodiesel company sponsors Earthrace

Degussa considers alkoxide production for biodiesel

REG plans to move offices, hires marketing manager

Kreido installs pilot project for Foothills Bio-Energies

Dow Chemical releases new resin for biodiesel purification

PetroSun plans algae-to-biodiesel plant

North Carolina awards recognize biodiesel advocates

Columns

Editor's Note

NBB In Sight

Featured

2007 Proposed Biodiesel Plant List

Treading Lightly on the Great Lakes

Certified: Sustainable

The Biofuels Celebration Station

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

Business Briefs

DTN offers new biodiesel trading platform

Malaysian biodiesel company sponsors Earthrace

Degussa considers alkoxide production for biodiesel

REG plans to move offices, hires marketing manager

Kreido installs pilot project for Foothills Bio-Energies

Dow Chemical releases new resin for biodiesel purification

PetroSun plans algae-to-biodiesel plant

North Carolina awards recognize biodiesel advocates

Columns

Editor's Note

NBB In Sight

Featured

2007 Proposed Biodiesel Plant List

Treading Lightly on the Great Lakes

Certified: Sustainable

The Biofuels Celebration Station

June 2007