Hamilton, Ontario-based Biox Corp. and Ralston, Iowa-based Renewable Energy Group Inc. (REG) have announced plans for initial public offerings (IPOs) of stock to the public. The companies each seek to raise $150 million of capital.

 
 Biox is a leading producer of biodiesel in Canada. Its plant in Hamilton began production in late 2006 with a capacity of 15.8 MMgy. The company has plans to build additional plants in Hamilton and Montreal, and two plants in the United States. If successful, these plants would have a combined capacity of about 70 MMgy. "Biox has been a leader in the development of the biodiesel industry in Canada," said Kory Teneycke, executive director of the Canadian Renewable Fuels Association. "We believe Biox going public is a sign of the progress this industry is making, going from something that was an idea to something that is a permanent part of our fuel mix in Canada. The difference between now and after Biox's IPO is that Canadians who are interested in owning a part of this industry will have one more opportunity to do so."
 
 Teneycke believes that Biox is the first Canadian biodiesel company to go public. There are just a few other public companies in the biofuels industry in Canada, including SunOpta Inc. in Brampton, Ontario, and Lignol Energy Corp. in Vancouver, British Columbia.
 
 Teneycke said this is an exciting time for the biodiesel industry in Canada as the government is preparing to mandate a 2 percent biodiesel blend nationwide by 2012, if not sooner. That would create a 600 million-liter (158.5 million-gallon) market for biodiesel. "Biox is the largest biodiesel producer in Canada today," Teneycke said. "We expect them to continue to play a leadership role in servicing that market."
 
 REG operates a 12 MMgy plant in Ralston and operates four other biodiesel plants: SoyMor Biodiesel in Glenville, Minn.; Western Iowa Energy in Wall Lake, Iowa; Central Iowa Energy in Newton, Iowa; and Iowa Renewable Energy LLC in Washington, Iowa. REG has an agreement to purchase finished biodiesel with Peter Cremer Inc. It also has two 60 MMgy plants under construction in Louisiana and Kansas, and another proposed plant under development in Illinois. The company is a major marketer of biodiesel in the United States. It markets its fuel under the SoyPower brand, which is BQ-9000 certified.
 
 According to the company's filing with the U.S. Securities and Exchange Commission (SEC), REG is looking to expand and diversify its options for transporting and distributing biodiesel. It is specifically developing its facilities where multiple forms of transport are available. "We intend to further enhance our distribution capabilities by constructing facilities near deep-water distribution hubs, including New Orleans, which has direct access to the Gulf of Mexico, and Cairo, Ill., which has direct access to the Mississippi River," according to the SEC filing. The filing also described the company's plans for future biodiesel facilities on the East and West coasts of the United States.
 
 REG will also use the proceeds from the IPO to finance its future expansion plans. The company listed the cost of its three plants under construction or development as approaching $248 million.
 
 Credit Suisse Securities is the lead underwriter for REG's IPO with Banc of America Securities, Goldman Sachs and Thomas Weisel Partners underwriting the offering. REG will list its shares on the New York Stock Exchange under the symbol RWE.

Biodiesel firms plan IPOs

In mid-July, St. Petersburg, Fla., was a bioenergy hotspot as the state ag department hosted the 2007 Farm-to-Fuel Summit, where legislators and renewable energy participants came together to build on growing biofuels momentum and fulfill the progressive energy vision cast by Florida Gov. Charlie Crist. Charles Bronson, state agriculture commissioner, said the task of accomplishing significant energy independence with renewables is Herculean, but the challenges must-and will-be met.
 
 Although the summit's focus was on the larger, more mature ethanol and biomass-to-power industries, a small biodiesel contingent talked about the challenges and opportunities facing existing and future biodiesel producers today. Dave Jarrett with Xenerga Inc. detailed his company's testing of jatropha through its subsidiary JatrophaTech, which plans to grow large-scale nurseries of its cloned and modified jatropha strain near Orlando, Fla. It takes four years for typical jatropha to seed, but the JatrophaTech strain yields oilseeds after just one year. "The plant thinks it is four years old," he said of the 1-year-old specimen. After five years, 5,250 liters of oil per hectare is achievable, Jarrett said. The company is now preparing to set up large nurseries raising its special variety of jatropha.
 

 Fred Tennant, vice president of business development with Melbourne, Fla.-based PetroAlgae, detailed his company's plans to commercialize biodiesel production from a high-yielding algae licensed from Arizona State University. He said 14,000 gallons of algae-based oil per acre is achievable using proprietary bioreactors and the special micro-algae. Tennant said his company has a research facility under construction and will have a small-scale pilot plant running by the end of the year. The company has aggressive plans for commercial algae production in 2008. "Palm and soy oil prices are going up every day," he said, justifying PetroAlgae's production of the alternative feedstock. PetroAlgae intends to develop several strains of oil for many different purposes. After inoculation and growth, the algae are harvested and dewatered, followed by cell disruption to release the oil. PetroAlgae plans to ship algae oil to biodiesel plants for methyl ester refining.
 
 Soybean pricing was also discussed since the increase in corn planting and decrease in soybean acres helped to push soybean oil prices up to 37.5 cents per pound in mid-July. "Palm oil is higher than soy oil for the first time in 20 years," said World Energy Vice President David Shiflett. In 16 months' time, feedstock costs for U.S. producers went up an average of 14 cents per pound, or about a dollar per gallon, boosting per-gallon prices upward of $3 per gallon for soy oil delivered to the average plant. "There's not a lot of arbitrage opportunity in the United States now," he said. "Ninety percent of our Lakeland biodiesel is exported out of state, and much goes out of the country" as B99.9, he said.

The 2007 Farm-to-Fuel Summit attracted more than 400 people to the Marriott Renaissance Vinoy Resort in St. Petersburg, Fla.

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Farm-to-Fuel Summit discusses biodiesel issues

On Aug. 10, just before press time, Minnesota Gov. Tim Pawlenty unveiled a plan to incrementally take the state's biodiesel requirement from B2 to B20 over the next eight years. We'll have to wait and see what the state's lawmakers have to say about that when Minnesota's 2008 legislative session begins, but it's interesting to see that once again the nation's most progressive biofuels initiatives are coming from the state level.
 
 Minnesota, of course, has been a biofuels trailblazer, establishing a first-in-the-nation B2 mandate in September 2005 and a model ethanol program about a decade earlier. Both programs were initially designed to ensure that the state produced as much ethanol and biodiesel as it could consume at the modest levels of 10 percent and 2 percent, respectively. Times have changed, of course. Today, Minnesota is not only producing much more ethanol than it consumes, but it is also producing four times as much biodiesel as it needs at the B2 level, with three biodiesel plants producing a combined 63 MMgy.
 
 For the most part, states like Minnesota are pushing biofuels for economic reasons. Biodiesel and ethanol production supports nearly 16,000 jobs in Minnesota and generates close to $4 billion in total economic activity statewide each year. The Minnesota Department of Agriculture reports that renewable fuels production has led to a 13 percent increase in demand for the state's soybean crop and a 31 percent expansion of in-state soybean processing. Those are big numbers that make a real difference to states that lean heavily on farming and agricultural processing.
 
 No matter your stance on higher biodiesel blends, Pawlenty's plan should be commended for being a responsible approach to increasing biofuels production. In the ethanol industry, we've seen some Corn Belt states produce huge quantities of ethanol for export without mandating E10 within their own borders. So Pawlenty's quest to build in-state demand to absorb growing in-state production is laudable.

 
 Tom Bryan
 Editorial Director
 <a href="mailto:tbryan@bbibiofuels.com">tbryan@bbibiofuels.com</a>

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Keep growing in-state demand for higher blends

Editor's Note

The article by Biodiesel Magazine Staff Writer Jessica Ebert, titled "<a href="http://biodieselmagazine.com/article.jsp?article_id=1709" target="_blank">Playing It Safe with Methanol</a>" in the July 2007 issue, was an excellent discussion of the need to "inert" equipment that handles flammables like methanol. (Editor's note: The National Fire Protection Association (NFPA) defines "inerting" as a technique in which a combustible mixture is rendered non-ignitable by the addition of an inert gas or noncombustible dust.) Inerting is one of the most effective protection methods allowed by NFPA 654 and NFPA 69 against flammable vapor deflagrations (explosions) or fires.
 
 However, I was very concerned not to see any discussion of the hazards involved with the use of nitrogen in confined spaces. The chemical industry has had many years of experience using nitrogen and other inert gases. There have been a number of fatal cases of nitrogen asphyxiation in confined spaces when equipment wasn't properly isolated and ventilated with fresh air prior to entry. Incidents of multiple fatalities have occurred when one person collapses and unprotected rescuers rush to aid their coworker. There have even been cases where someone was asphyxiated when looking into an open manhole on a vessel containing nitrogen while it was being purged. A few breaths of a nitrogen-rich atmosphere are normally fatal. The oxygen content of the atmosphere must be carefully monitored. Any rescuer must be equipped with a self-contained breathing apparatus or they also will become a victim.
 
 The introduction of nitrogen inerting at a biodiesel plant requires a close look at safety procedures, employee training and ongoing reinforcement of that training.
 
 Jeff Whiting
 Senior Consultant 
 Terratec Biofuels Division of Solutia Inc.

Letter to the Editor

Fast-food giant McDonald's is developing a biodiesel program in several countries, following the company's efforts in Austria in 2003 when it developed a closed-loop production concept. The used oil from the company's restaurants is converted into biodiesel, which is then used to fuel the company's distribution trucks.
 
 This model has been followed in Malta and most recently in the United Kingdom (UK). This summer, McDonald's UK began running B100 in half of the 45-vehicle fleet that operates from the McDonald's Basingstoke distribution center. McDonald's said its entire fleet in the UK-155 vehicles-will eventually use B100.
 
 The company gathers waste cooking oil from about 900 of its restaurants in the UK. The oil is processed at a small biodiesel production facility in Milton Keynes, England. The cooking oil comprises 85 percent of the feedstock, while rapeseed oil makes up the remaining 15 percent.
 
 McDonald's tested B5 for a year before it switched to B100. It found that small modifications to fuel pipes were needed, and the vehicles now require more frequent servicing, according to Media Relations Manager Lorraine Homer.
 
 Homer highlighted the carbon savings that biodiesel use will bring. "The carbon savings of the move will be 1,675 [metric tons] annually when the national rollout is completed-the equivalent of removing 2,424 family cars from the road each year," she said. "Our work with the Carbon Trust will help us find more ways, big and small, to reduce our carbon impact across the whole of our business."
 
 The McDonald's corporation has embraced the motto, "Reduce, reuse, recycle." In Malta, the company posts its biodiesel program under its reuse goals; "Used frying oil is sent for reprocessing into biodiesel," the environmental policy reads.
 
 McDonald's is also experimenting with biodiesel in the United States. The Delta Institute, a Chicago-based environmental and economic development nonprofit organization, is exploring the feasibility of a project that would convert McDonald's used cooking oil into biodiesel in the Chicago area. Senior Associate Director Chris Slattery said the feasibility study is nearing completion.

McDonald's distribution trucks in the United Kingdom run on B100 made from waste cooking oil (yellow grease) and rapeseed oil.

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McDonald's converts waste grease to biodiesel

Syntroleum Corp. and Tyson Foods Inc. have jointly created Dynamic Fuels LLC to build multiple, stand-alone facilities producing what they call "ultra-clean, high-quality, next-generation renewable synthetic fuels," or renewable diesel.
 
 The first facility using Syntroleum's trademarked Biofining technology will produce about 75 MMgy from low-grade animal fats, greases and vegetable oils supplied by Tyson. The $150 million project is slated to be on line in 2010 somewhere in the south-central United States.

 
 Syntroleum CEO Jack Holmes said the Biofining process doesn't compete with traditional biodiesel producers using vegetable oils and higher grades of animal fats. "We take very low-quality animal fats, too low of quality to make biodiesel, to produce a high-quality fuel," he said. "Tyson is responsible for aggregating the feedstock. We know there's enough for a handful of these plants using our unique technology." He added that Syntroleum has tested 50 different combinations of low-quality nonfood feedstocks, and "all make the same high-quality fuel."
 
 Biofining produces summer-, winter- and arctic-grade renewable diesel, as well as renewable jet fuels, by processing triglycerides and/or fatty acids with heat, hydrogen and proprietary catalysts. The company claims the resulting fuel provides substantial advantages over petroleum-based fuel, including higher cetane levels, significantly lower nitrogen oxide levels and near-zero sulfur emissions. In addition, it provides superior thermal stability and better cold flow properties. The unblended fuel can be used in existing diesel engines with no engine modifications.
 
 In early July, Syntroleum announced the completion of a contract with the U.S. Department of Defense to supply 500 gallons of its synthetic jet fuel produced from fats for testing in military turbine applications. Holmes said the U.S. Air Force has announced a goal of sourcing 50 percent of its fuel needs from domestic alternative sources by 2016. Last year, Syntroleum supplied 100,000 gallons of synthetic Fischer-Tropsch jet fuel used in a 50-50 blend for B-52 bomber test flights. The company predicts its Biofining process will create renewable fuels comparable with its high-quality Fischer-Tropsch fuels.
 
 Tulsa, Okla.-based Syntroleum Corp. announced in mid-July that it had successfully raised its $4.25 million share in the joint venture. The total $8.5 million contributed by both partners in Dynamic Fuels will be used to select the plant site, and prepare the process design package and front-end engineering for development of the first commercial plant. Syntroleum's recent sale of common stock under its existing purchase agreement with Azimuth Opportunity Ltd. provided the funds for its share of the venture funding.

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Syntroleum, Tyson partner to produce renewable diesel

Through the Energy Freedom Loan Program, $6.4 million in energy loans were approved by Washington Gov. Chris Gregoire in early July. Three biodiesel projects received a majority of that funding to pursue oilseed processing and/or biodiesel production plans.
 
 The Spokane County Conservation District, which received $2.6 million, is working with Palouse Bio LLC to construct an oilseed crushing and biodiesel production facility in Spokane County, Wash.
 
 Similarly, Odessa Public Development Authority in Odessa, Wash., which received $1 million, has partnered with Inland Empire Oilseeds LLC (IEO) to build an oilseed crushing and biodiesel refining facility. IEO, which was formed in 2006 in Odessa, is currently owned by Odessa Union Warehouse Cooperative, Reardan Grain Growers Inc. and Reardan Seed Company Inc.
 
 The Port of Sunnyside, which received $750,000, is working with Natural Selection Farms (NSF) on an oilseed crushing facility to produce feedstock for biodiesel producers. A representative of NSF told Biodiesel Magazine that the crush apparatus is currently operating and the farm is marketing canola oil.
 
 Earlier in the year, the Port of Warden received $7.1 million from the Energy Freedom Loan Program.. The port has partnered with Washington Biodiesel to construct an integrated oilseed crushing and biodiesel production facility.
 

 State law requires that at least 2 percent of the diesel fuel sold in the state be a biodiesel blend by the end of 2008. Additionally, the law requires that at least 20 percent of the diesel used in state vehicles be biodiesel by June 2009. According to the National Biodiesel Board (NBB), five biodiesel plants are on line in Washington with a capacity of approximately 25 MMgy.

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Washington funds biodiesel projects

What began as a foray into fish farming by two fishermen-turned-engineers and an organic chemist from North Wales has produced a contraption that captures carbon dioxide emissions, a process that can be used to indirectly produce biodiesel.
 
 About two years ago, fishermen Ian Houston and John Jones teamed up with organic chemist Derek Palmer to raise fish using algae as feed. Algae need carbon dioxide, sunlight and water to grow, but a machine to pump carbon dioxide into the fish ponds would have cost about $3 million. "We had a meeting," Houston explained. "I asked Derek, 'With all the carbon dioxide in the world, why can't we capture it?' Derek said it would be virtually impossible, but straightaway, John and I said, 'You didn't say "totally impossible." You said "virtually impossible," so that means it can be done.'"
 
 Therefore, Houston and Jones built a device to Palmer's specifications that housed a system for the chemical capture and release of carbon dioxide. The first time the team tested the device, it captured 66 percent of the carbon dioxide flushed through the box. "We very quickly realized what we'd done," Houston said. "We left fish farming behind."
 
 Since that time, the inventors have tweaked the device, found the dirtiest diesel engine they could find, and demonstrated over 130 times that what has been dubbed the "Greenbox" can be used to collect and store 85 percent to 95 percent of exhaust emissions including carbon dioxide, nitrogen oxide and particulate matter. These captured molecules can be stored in the box in their inert state, then released into a bioreactor and fed to algae, which are subsequently crushed and used to make biodiesel.
 
 Houston said representatives from oil refineries, factories, fleet car companies and automobile manufacturers, among others, have shown interest in the technology. "We've given the [United Kingdom] and every other country in the world the possibility of being self-sustaining," Houston said. "[Carbon dioxide] is the fuel of the future, not the enemy we have always believed."
 
 The team has already designed boxes to fit buses and cars, and it is working on designs for trains and prop planes. Houston expects a patent for the Greenbox to be filed by November.

Car fumes help to produce biodiesel

A B20 bio-corridor will soon be made available to drivers traveling on Interstate 65 between Gary, Ind., and Mobile, Ala. The bio-corridor plan is part of a partnership effort between the Indiana Office of Energy and Defense Development (IOEDD) and nonprofit biofuels coalitions based in Kentucky, Indiana, Tennessee and Alabama. The IOEDD received a $1.3 million grant from the U.S. DOE to fund the project. The plan is to build five B20 pumps along the interstate in Alabama and a biodiesel blending facility in northern Indiana.
 
 According to Kellie Walsh, executive director for the Central Indiana Clean Cities Alliance, travelers can expect to see all five B20 pumps installed in Alabama in the fall of 2008.
 
 A group of Clean Cities coalitions from Georgia, eastern Tennessee, North Carolina and South Carolina are also in the process of establishing a B20 bio-corridor of its own on the East Coast. Funded by a $590,000 DOE grant, 14 B20 pumps will be made available to the public, nine of which will be located in North Carolina. At press time, there were four B20 stations completed with one projected to be completed some time late this year.
 
 Tobin Freid, Raleigh, N.C.-based Triangle Clean Cities Coalition coordinator, is leading the four-state team. "This will make a big difference in increasing availability of these cleaner-burning, renewable fuels," he said.

B20 bio-corridor set to open in Midwest; East Coast to follow suit

British biodiesel producer D1 Oils plc has granted BP International Limited the option to acquire over 11.7 million shares as part of a joint venture between the two companies, called D1-BP Fuel Crops Limited. The partnership aims to plant 1 million hectares (2.5 million acres) of the biodiesel feedstock Jatropha curcas over four years. It will have exclusive access to the jatropha seedlings produced through D1's plant science business. The joint venture will likely be formally incorporated in October, according to D1 spokesman Graham Prince.

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D1 partners with BP

According to numbers released by the European Biodiesel Board (EBB) in July, the European Union (EU) increased biodiesel production from 3.2 million metric tons (approximately 790 million gallons) in 2005 to nearly 4.9 million metric tons (1.2 billion gallons) in 2006. This was a 54 percent production increase, following a 65 percent increase in 2005.

 
 EU biodiesel production tallied 1.9 million metric tons (479 million gallons) in 2004. According to the EBB, there are currently 185 fully operational biodiesel plants in the EU, and another 58 plants are under construction. This year, annual plant capacity has reached 10.2 million metric tons (2.6 billion gallons), which includes plants that have started operation but haven't produced for a full year.
 
 <center><img src="/images/upload/20070904123914.jpg"></center>
 
 In 2006, Germany was the largest biodiesel producer in the EU, followed by France, Italy, the United Kingdom and Austria. 2007 projections indicate that Italy will surpass France as the No. 2 biodiesel producer, and Spain will overtake Austria for the No. 5 spot. Finland, Hungary and Luxemburg are the only EU countries that don't produce biodiesel.
 
 Despite the growth, the EBB warned that EU biodiesel production continues to be "strongly hindered by the lack of appropriate market measures able to create a real market for biodiesel in member states." The organization said biodiesel production may begin to stagnate in 2007 if urgent action isn't taken. One reason given for the projected drop was the U.S. B99 export subsidy, or "splash and dash" practice, as the biodiesel industry calls it. The EBB suggests the adoption of certain legislative and standardization provisions in EU member states and the European Committee for Standardization (CEN) in order to meet EU biodiesel production targets in 2010 and 2020. For more information, visit <a href="http://www.ebb-eu.org" target="_blank">www.ebb-eu.org</a>.

EU doubles biodiesel production in two years

Sens. Norm Coleman, R-Minn., and Russ Feingold, D-Wis., have introduced a bill in the U.S. Senate to require that any biorefinery accepting federal funding must provide local residents an opportunity to invest. While mainly directed at the booming ethanol industry, the bill would also apply to biodiesel manufacturers. Specifically, the bill would require any biorefinery that accepts federal loan guarantees, loans or grants to provide residents within 50 miles of a plant 60 days to make an investment in the plant. Forty percent of the investment would be made available to local investors. Under the proposal, plants organized as farmer cooperatives would automatically meet the local investment requirement.

Bill could mandate local ownership stake

Oregon Gov. Ted Kulongoski signed a biofuels bill into law in early July that mandates B2 blends once biodiesel production in Oregon, Washington, Idaho and Montana  reaches 5 MMgy, and B5 blends once production reaches 15 MMgy. The B2 mandate will be triggered by an expansion from 1 MMgy to 5 MMgy recently announced by SeQuential-Pacific Biodiesel LLC at its two-year old Salem, Ore., plant. SeQuential will continue to use waste restaurant oil as a feedstock, as well as contract Oregon-grown canola oil from Madison Farms in Echo, Ore., and Pendleton Grain Growers in Pendelton, Ore.

Oregon standards boost biodiesel market

In an effort to reduce its carbon footprint, television network Fox Sports announced its committment to using B20 to power its broadcasts of the World Series, Super Bowl, the Bowl Championship Series and other major sporting events. The transition to biodiesel was spurred by the "Cool Change Initiative" introduced by News Corp., the parent company of Fox Sports, according to Fox Sports Director of Field Operations Michael Davies. Fox Sports used B20 to power its broadcast equipment during the Major League Baseball All-Star Game in San Francisco in July.

Fox Sports to use biodiesel

A bipartisan bill to expand the national Biodiesel Education Program was introduced in mid-July by Sens. Amy Klobuchar, D-Minn.; Mike Crapo, R-Idaho; and Larry Craig, R-Idaho. Since its inception in 2003 as part of the Farm Bill, the program-administered by the USDA-aims to increase awareness of the benefits, production practices, standards, fuel quality, and economics of biodiesel production and use. The new bill would extend the program for another five years and raise its annual budget from $1 million to $2 million.

Senate bill to aid national biodiesel education program

Manitoba Hydro Laboratories is updating its equipment and accreditation in order to offer biodiesel testing services by early 2008. As the only fuel testing center in Manitoba, it received two grants totaling $614,000 to acquire testing equipment, which will enable it to offer the full range of biodiesel fuel quality testing. Previously, the laboratories could test for cloud point and acidity, but they weren't accredited to do the tests, according to Quality Supervisor Walter Lipinsky. The company is in the process of receiving accreditation and validating test methods, he said. The grants were issued by the Canada-Manitoba Economic Partnership Agreement and Natural Resources Canada.

Testing facility to expand

In-line ratio blending for biodiesel is a new feature at Marathon Oil Corp.'s fuel terminals in Robinson and Champaign, Ill. Because of an added tax exemption for 11 percent biodiesel in Illinois, Marathon will be marketing soy-based B2 and B11 there. As the fifth-largest refiner in the United States, Marathon first offered biodiesel at its St. Paul Park facility in St. Paul, Minn., in July 2005 and added methyl ester blending to its Kramer Lane terminal near Louisville, Ky., in February 2007.

Marathon expands blending

The biodiesel industry in Iowa has formed the Iowa Biodiesel Board. Its leadership comes from a nine-member board of directors led by Randy Olson, the board's executive director. Companies represented by individuals on the board are Cargill; Renewable Energy Group; Pioneer, A DuPont Company; Crouse Transportation; East Fork Biodiesel; Riksch Biofuels; Petroleum Marketers and Convenience Stores of Iowa; Western Dubuque Biodiesel; and the Iowa Soybean Association. For more information, visit <a href="http://www.iowabiodiesel.org" target="_blank">www.iowabiodiesel.org</a>.

Iowa forms biodiesel board

Biodiesel producers have a potential new opportunity for sales growth. The requirements of the Renewable Fuel Standard Program (RFS) began Sept. 1, 2007, and the Renewable Identification Number (RIN) is central to the program's administration. At first glance, a RIN may look like a wicked, advanced algebra problem. In reality, it is the basic currency for the RFS program for credits, trading and use by obligated parties and renewable fuel exporters to demonstrate compliance, as well as to track the volumes of renewable fuels.
 
 A RIN is a 38-character numeric code that is generated by the producer or importer of renewable fuel. It represents gallons of renewable fuel produced or imported and is assigned to batches of renewable fuel that are transferred (change of ownership) to others. RINs are valid for the calendar-generated, or the following year.
 
 A RIN code represents several pieces of information including: 
 

 › (K) = whether a RIN is assigned to a batch of fuel (1=assigned/2=unassigned)
 › (YYYY) = year the batch is produced/imported
 › (CCCC) = producing/importing company registration information
 › (FFFFF) = production facility registration information
 › (BBBBB) = producer assigned batch number
 › (RR) = equivalence value for the renewable fuel (biodiesel is 1.5 = "15")
 › (D) = renewable type code (1=cellulosic ethanol/2=non-cellulosic ethanol fuel)
 › (SSSSSSSS) = RIN block starting number
 › (EEEEEEEE) = RIN block ending number
 
 Example:
 Producer X decides that each batch will represent one day's worth of production. Producer X also decides all 2007 batches will be numbered sequentially starting on Sept. 1. Producer X registers its company and production facility with the U.S. EPA (Company ID, or CCCC number, is 1234; Facility ID, or FFFFF, is 56789). 
 
 Producer X makes one 1,000 gallon tank of biodiesel on the morning of Sept. 1:
 › Gallon RINs go from SSSSSSSS = 00000001 to EEEEEEEE = 00001500
 

 Producer X makes another 1,000 gallon tank of biodiesel on the afternoon of Sept. 1:
 › Gallon RINs go from SSSSSSSS = 00001501 to EEEEEEEE = 00003000
 
 Producer X delivers all 2,000 gallons of biodiesel to Customer A; Producer X can summarize all gallon-RINs on one batch RIN:
 12007123456789000011520000000100003000.
 
 1 2007 1234 56789 00001 15 2 00000001 00003000

 K YYYY CCCC FFFFF BBBBB RR D SSSSSSSS EEEEEEEE

 
 Biodiesel producers will be required to transfer all RINs attached to a batch of biodiesel along with the fuel. Assigned RINs are transferred when ownership of a batch of fuel occurs. RINs are not transferred if the fuel only changes custody.
 
 The mechanism used to demonstrate the transfer of RINs will be the product transfer document (PTD). PTDs are required when ownership of a renewable fuel is transferred to another party. They may be in any form of documentation, such as an invoice that demonstrates transfer of ownership of the renewable fuel. Bills of lading normally would not be a PTD unless it transfers ownership as well as custody of the fuel.
 
 PTDs must include:
 1) Name and address of transferor and transferee,
 2) Transferor's and transferee's EPA company registration numbers,
 3) Volume of renewable fuel being transferred,
 4) Date of transfer, and 
 5) Transfer of ownership of RINs assigned to the fuel must also be documented.
 
 Ensuring the objectives of the RFS are met involves a detailed regulatory process. The examples given here are merely illustrative of the concepts surrounding RINs.
 
 Biodiesel producers and distributors play an integral role and have many compliance requirements to complete. Industry participants are strongly encouraged to read and fully understand the regulations and requirements of implementing the RFS. The NBB has posted additional information on its Members Only section of its Web site and is working with the EPA to answer questions that may arise. The EPA has additionally posted information on the RFS regulations, fact sheets and other information related to compliance with the RFS program at <a href="http://www.epa.gov/otaq/renewablefuels/index.htm" target="_blank">www.epa.gov/otaq/renewablefuels/index.htm</a>.

 
 Like advanced algebra, working through the RIN equation might be daunting at first. However, with time, patience and the resources available to you, this equation can be solved. The NBB will work to keep you apprised as we all make this important adjustment together.
 
 Scott Hughes
 Director of Regulatory Affairs

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The RIN equation: What is it, what do I do with it?

NBB In Sight

Canadian Bioenergy Corp. recently became the first BQ-9000 Certified Marketer of biodiesel in Canada. BQ-9000 is a voluntary fuel quality assurance program, adopted by the National Biodiesel Board and the Canadian Renewable Fuels Association. Producers and marketers are eligible to become either an Accredited Producer or Certified Marketer under BQ-9000.
 
 "Quality is everything-it's always been our top priority and the BQ-9000 process was a natural evolution for our operations," said Alex Russell, assistant director of fuel operations at Canadian Bioenergy. "Our customers, from coast to coast, have consistently told us how critical it is to their success, as end-users and as resellers."
 
 Russell has spent the past two years developing quality systems which adhere to the BQ-9000 protocols.
 
 BQ-9000 couples the foundation of universally-accepted quality management systems with the product specification ASTM D 6751. It has become the premier quality designation in the industry. The program covers storage, sampling, testing, blending, shipping, distribution and fuel management practices.
 
 "This is the direction we're going in Canada to make sure biodiesel is as successful here as it is in Europe and the United States," said Ian Thomson, president of Canadian Bioenergy and the Alberta Biodiesel Association. "If there's a quality issue, it hurts the entire industry. We have made great progress in the past year on quality across North America. The combination of BQ-9000 accredited production with BQ-9000 certified marketing has become critical to large end-users."
 
 Canadian Bioenergy is a biodiesel distributor, but has announced plans to construct a biodiesel production facility on land adjacent to a canola crushing and refining plant near Edmonton, Alberta. More information about the company is available at <a href="http://www.canadianbioenergy.com" target="_blank">www.canadianbioenergy.com</a>.

 
 Oregon makes biodiesel commitment
 Oregonians will soon be burning less fossil fuels. Gov. Ted Kulongoski signed the Oregon renewable fuel standard (RFS) in July that requires the use of biodiesel in the state. The law, which establishes renewable fuel use requirements for gasoline and diesel, as well as other actions, will take effect this fall.
 
 It will require all diesel fuel sold in Oregon to be at least a B2 biodiesel blend when the production of biodiesel in Oregon from feedstock sources in Oregon, Washington, Idaho and Montana reaches a level of at least 5 MMgy for at least three months. The use requirement jumps to B5 when the production of biodiesel in Oregon, from the same sources, reaches at least 15 MMgy.
 
 Oregon's RFS defines biodiesel as "a motor vehicle fuel consisting of mono-alkyl esters of long chain fatty acids derived from vegetable oils, animal fats or other non-petroleum resources, not including palm oil, designated as B100 and complying with ASTM D 6751." However "other renewable diesel" is defined and may be used to meet the RFS requirement, although palm oil cannot be used to meet the RFS.
 
 On the sales side, all retail, non-retail and wholesale dealers in Oregon are required to provide a certificate of analysis for biodiesel received.
 
 There are also property tax exemptions for in-state facilities producing ethanol, biofuel (including biodiesel) or certain fuel additives. The law also creates an income tax credit for production or collection of biomass used to produce biofuel. It also creates an income tax credit for consumer use of biofuel blends or straight biofuel.
 
 Member profile: Westfalia Separator Inc.
 "Take the best; separate the rest," is the corporate theme of Westfalia Separator Inc., a NBB member that provides complete biodiesel process lines and feedstock pre-treatment systems.
 

 Westfalia Biodiesel Market Manager Constantine Triculis is based in the company's U.S. headquarters in Northvale, N.J. "Our company has been in biodiesel processing since 1991, when we began process line development work for what is now known as CD [Connemann diesel] process," Triculis said. "This was a natural evolution for Westfalia as a result of over 50 years in edible oil market and our goal of expanding into process lines."
 
 Westfalia was founded in Oelde, Germany, in the late 1800s. Westfalia Separator began manufacturing centrifuges in 1893. Its entry into biodiesel was as a partner with a German oil mill in order to construct a production facility utilizing a truly continuous process suitable for large capacity plants. Currently, there are 14 biodiesel operating plants employing the CD process worldwide with another 19 in the engineering, construction or start-up phase.
 
 By the end of 2007, it is estimated that plants using CD technology will account for more than 2.4 million metric tons of B100.
 
 Centrifuges are at the core of the CD process and are also employed in numerous other unit operations within biodiesel plants. They employ very high g-forces to mechanically separate liquid/liquid suspensions or solid/liquid mixtures very quickly and with a high degree of efficiency.
 
 Westfalia Separator is committed to the renewable fuels market and has been a strong supporter of NBB by sponsoring its conferences. Company representatives say Westfalia plans to be more directly involved with the NBB with a focus on identifying and resolving technical issues today and in the future.
 
 More information on Westfalia Separator Inc. is available at <a href="http://www.wsus.com" target="_blank">www.wsus.com</a>.
 
 Methanol matters: Register for October webinar workshop
 In continuing its educational efforts on methanol safety, the NBB has been working with Methanex, the world's largest methanol producer, to present a series of webinars on safety. The next webinar will be presented Oct. 24.

 
 The webinars help raise awareness about existing legal, environmental and safety requirements. It is critical that biodiesel producers are fully aware of any risks and regulations. Attendees will learn of other available resources as well.
 
 George Wellon, manager for responsible care for Methanex, will lead the program. The free workshop will be open to NBB members and other methanol handlers. Please register at <a href="http://www.gotomeeting.com/register/712325174" target="_blank">www.gotomeeting.com/register/712325174</a>.
 
 The NBB began offering the webinars last year, recognizing methanol safety as a serious issue deserving focus. More methanol safety training sessions will be offered as needed. Methanex, an NBB member, is headquartered in Canada.
 
 Washington watch: House farm bill promotes biodiesel
 The House of Representatives in late July approved HR 2419, the Farm, Nutrition and Bioenergy Act of 2007-better known as the farm bill-by 231-191. Among its many provisions, the legislation reauthorizes the Commodity Credit Corporation (CCC) Bioenergy Program and the Biodiesel Education Program.
 
 The Farm Bill was approved unanimously by the House Committee on Agriculture, however, its passage in the full House was not without controversy. As a result of provisions unrelated to biodiesel in the underlying bill, the administration has threatened a veto of the bill if it is sent to President George W. Bush in its current form.
 
 The NBB supported House passage of the farm bill. The CCC Bioenergy Program has made a significant contribution to the viability of the U.S. biodiesel industry. The program is critical for biodiesel producers because it makes the purchase of domestic feedstocks needed to produce biodiesel more affordable. Feedstock costs represent roughly 80 percent of overall production costs for the biodiesel industry, and the CCC Bioenergy Program is a vital tool to help U.S. producers offset rising feedstock prices. Additionally, reauthorization of the Biodiesel Education Program at a funding level of $2 million per year, as contained in the bill, will play a critical role in improving consumer awareness and support of the fuel.
 

 A robust CCC Bioenergy Program and the Biodiesel Education Program are critical components of an effort to make biodiesel a significant part of an ever-growing and diversified energy portfolio. Today, there are nearly 60 billion gallons of diesel fuel used per year in the United States. By comparison, biodiesel is an environmentally safe fuel alternative and is one of the most viable transportation fuels when measuring its carbon footprint, life-cycle and energy balance. The USDA's life-cycle study shows a 78.4 percent reduction in life-cycle carbon dioxide for B100. In 2006, biodiesel's contribution to reducing greenhouse gas emissions was equal to removing 350,000 passenger vehicles from America's roadways. Promoting the production and use of biodiesel through programs like the CCC Bioenergy Program and the Biodiesel Education Program will allow the United States to realize the environmental benefits of biodiesel and promote energy independence.
 
 The Senate will consider its version of the farm bill after Congress returns from its August District Work Period. As the legislative process moves forward, the NBB will work to build on progress made in the House farm bill and will continue to advocate a strong CCC Bioenergy Program that provides a stable per-gallon support for producers. 
 
 Petroleum, biodiesel workshops coming to a state near you
 Various areas of the country will host biodiesel workshops for petroleum distributors, thanks to grants awarded to select Clean Cities Coalitions. These U.S. DOE program coalitions will educate petroleum marketers, fleet managers and other officials about biodiesel fuel quality and ideal management practices.
 
 The Maryland Energy Administration, Clean Cities Program and the National Biodiesel Foundation teamed up to award grants to Ohio, New Mexico, South Carolina, Virginia, Philadelphia and Denver. Other areas include Columbia and Willamette, Ore., Puget Sound and the Triangle area in North Carolina. The goal of the seminars and Clean Cities is to increase the use of alternative fuels in metropolitan areas.
 
 The workshops, which began in July, run through Oct. 31, with some of the awardees presenting encore workshops. The scheduled workshops are as follows: 
 › North Carolina: Sept. 18, and Oct. 24
 › New Mexico: Aug. 17
 › Oregon: Sept. 19
 › South Carolina: Sept. 19
 › Ohio: Sept. 19 and 20
 › North Carolina: Oct. 24

 
 For a complete list of dates and locations, visit <a href="http://www.biodiesel.org/events" target="_blank">www.biodiesel.org/events</a>. The National Biodiesel Foundation was created to conduct outreach, education, research and demonstrations for the advancement of biodiesel and its coproducts.
 
 NBB relocates D.C. office
 The NBB's Washington D.C. office has moved. You can now find the team at:
 
 National Biodiesel Board
 1331 Pennsylvania Ave. NW, Suite 512
 Washington, D.C. 20004
 (202) 737-8801
 
 NBB welcomes new members
 Canadian Bioenergy Corp.-North Vancouver, B.C.

 Iowa Renewable Energy LLC-Washington, Iowa
 Direct Fuels-Euless, Texas
 Summit Biodiesel LLC-Orlando, Fla.

Canadian Bioenergy achieves BQ-9000

Metrohm Ion Analysis has introduced a new version of its Rancimat instrument to measure oxidative stability in biodiesel. The Rancimat 873 is designed specifically for the biofuels market. It passes a stream of air through a sample in a sealed and heated reaction chamber. These conditions accelerate the oxidation of fatty acid methyl esters. As the esters decompose, volatile compounds are formed that are carried by the air stream to a second vessel containing distilled water. Organic acids in the air stream can be detected by an increase in water conductivity, which will increase over time. Metrohm said it has proven this method can be used to measure the oxidative stability of biodiesel. The unit's software allows administrative log-in functions with access for groups of users and individuals. The software parameters are now specific to biodiesel and diesel analysis. For more information, go to <a href="http://www.metrohm.com/products/stability.html" target="_blank">www.metrohm.com/products/stability.html</a>.

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New device measures biodiesel stability

Biodiesel International AG (BDI), with financial support from the Austrian Research Promotion Agency, has developed a new technology called the RepCat-Process. Because RepCat doesn't strip free fatty acids from the feedstock, there is no need to blend virgin oils with low-end inputs like animal fats or cooking oil before refining. BDI, based in Grambach, Austria, said the process is being applied for the first time on an industrial scale at its plant in Arnoldstein, Austria, which is currently undergoing expansion.

BDI offers RepCat-Process

Internet trading platform HoustonStreet announced in July that it has added biodiesel to its lists of energy commodities for buying and selling online. The Portsmouth, N.H.-based company will include B100, B99, B20 and B5 biodiesel grades to its trading menu, along with features containing a choice of the feedstock, transport for shipment and a predefined comments section. HoustonStreet began listing ethanol for online trading last year.

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HoustonStreet adds biodiesel to online trading platform

Kittiwake Developments Ltd. in West Sussex, United Kingdom, has developed on-site oil testing equipment for biodiesel. Paul Froome, Kittiwake marketing manager, said the portable biodiesel testing kit is unique in offering "a direct digital readout of water test results on a graphical display, the ability to test the quality of both feedstock oil and biodiesel, a suite of actionable results in less than 15 minutes, and an unrivalled cost per test." The kit tests for water content, density, viscosity, total acid number, acid content and visual quality.

This portable biodiesel kit can be used for monitoring production, as well as checking quality at delivery and in stored biodiesel.

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Kittiwake offers portable test kit

BBI International, organizer of the 2008 Biomass Conference and Trade Show in Minneapolis on April 15-17, is seeking abstracts related to biorefining technologies for the production and advancement of biofuels, biopower, bioproducts, biochemicals, intermediate products and coproducts/byproducts. Companies and individuals are encouraged to submit abstracts, which will be considered for presentations in the general session and technical workshop sessions. The deadline for submissions is Oct. 1. For more information, or to submit an abstract or proposal, visit <a href="http://www.biomassconference.com/speaker.aspx" target="_blank">www.biomassconference.com/speaker.aspx</a>.

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Biomass conference planner calls for abstracts

On July 10, Kinder Morgan Energy Partners LP announced a $41 million terminal expansion and acquisition deal that includes the construction of a terminal that will house liquid storage, transfer and packaging facilities at the Rubicon Plant site in Geismar, La. The company also purchased a 750,000-barrel capacity liquids terminal from Royal Vopak in Westwego, La., which Kinder Morgan said can be used to house vegetable oils and biofuels.
 
 Also in Louisiana, Allegro Biodiesel Corp., the state's first biodiesel producer with a 12 MMgy refinery in Pollock, La., recently signed an agreement to purchase Talen Marine & Fuel, a midstream fuel supplier based in Lake Arthur, La., for approximately $42 million. Bruce Comer, Allegro Biodiesel CEO, said the acquisition is an important part of the company's vertical integration strategy, allowing Allegro to become not only a biodiesel producer but also a major distributor of petroleum and biodiesel fuel to more than 1,200 customers in the Gulf Coast region.

Recent deals to boost Louisiana biofuels infrastructure

Much research by several companies and academic groups centers on breaking into the propylene glycol (PG) market with a biobased form of the compound produced from glycerin. At this time, PG is almost exclusively made from propylene oxide, a derivative of propylene, which is a petrochemical feedstock. The yearly demand for PG exceeds 2 billion pounds and growing. The compound is used in everything from pet food and paints to polyester resins, lubricants, antifreeze and cosmetics.
 
 In early May, Cargill Inc. and Ashland Inc. announced a joint venture to develop and produce a range of biobased chemicals. The first product to be marketed will be renewable PG, which the two companies expect to commercialize by mid-2008 and produce at a 65,000-metric-ton-per-year plant to be built in Europe, although the exact plant location has yet to be determined.
 
 "Cargill, and some of our competitors [including Dow Chemical Co., Archer Daniels Midland Co. and Huntsman Corp.], have been exploring options to convert glycerin into a range of industrial bioproducts-the most promising of which is propylene glycol," says Jim Millis, technical director of industrial bioproducts for Cargill. "We've explored a number of technologies and approaches to converting glycerin to PG. We've settled on an approach that uses a combination of proprietary and licensed technology that we believe has significant advantages."
 

 Although Millis couldn't disclose more specific details about the technology, in general, the conversion process involves the use of a metal catalyst, high temperatures and pressures, and the addition of hydrogen to transform crude glycerin into PG. In order to successfully scale up the process and keep it cost-competitive with petroleum-based PG, most research groups focus on developing catalysts and technologies that allow the reaction to occur at lower temperatures and pressures. "We believe our process will have higher yields and a production cost advantage. It will produce fewer byproducts than alternative approaches we explored," Millis says. "The process will yield a very high grade of propylene glycol that will be suitable for virtually any end-use application of PG."
 
 A second company that aims to produce PG from glycerin is Virent Energy Systems Inc., which was founded in 2002 by two chemical engineers from the University of Wisconsin, Madison. This company brings a unique approach to the production of PG from glycerin. In Virent's patented BioForming process, a liquid stream of a water-soluble carbon source such as glycerin is fed into a solid-state catalyst system. Through a process called aqueous phase reforming, this liquid stream is converted into various high-value chemicals, liquid fuels or gaseous fuels depending on the choice of feedstock, catalyst and process conditions like temperature and pressure. One of the gaseous fuels generated in the process that also plays a critical role in the synthesis of PG is hydrogen. "Other technologies have to have an external source of hydrogen, which is largely fossil-fuel based and adds additional production costs." explains Greg Keenan, vice-president of business development for Virent. "We don't require that external hydrogen because we make hydrogen in situ in the reactor system using the BioForming process," he says. "Ours really is a completely renewable propylene glycol." In addition, depending on the biodiesel process, the glycerin that is used may not require pretreatment before being fed into the BioForming system. If the crude glycerin does need some initial treating it's usually to remove some of the salts, which interfere with the catalyst, Keenan explains.
 
 Virent recently received a $2 million USDA-U.S. DOE grant to optimize yields of glycerin-derived PG. The company is currently designing a glycerin-to-PG pilot plant, which will be associated with a biodiesel production facility in Arkansas. PG is not Virent's sole focus. In May, the company announced a joint development agreement with Shell Hydrogen LLC to develop and deploy hydrogen generation systems for filling station applications. To support that effort, Virent started a pilot plant in Madison in late July to collect data on the production of hydrogen gas from glycerin. "It's a larger-scale pilot plant that we're using to collect additional data in order to build systems that can be deployed at fueling stations," Keenan explains. "The majority of hydrogen used today is made from fossil fuels by either putting energy in to break apart natural gas in a process called steam methane reforming or by using energy to break apart water in a process called electrolysis," explains Mary Willoughby Blanchard, director of marketing and strategy for the company. "There are significant environmental benefits to making hydrogen renewably from glycerol."
 
 Biological Approaches
 In their hunt for new uses for glycerin, Shulin Chen's team of biological systems engineers at Washington State University in Pullman work with a strain of algae that can turn pretty much any organic-carbon source into high concentrations of omega-3 fatty acids. These nutritional elements have garnered great interest as health promoters since the early 1980s when researchers recognized that despite their high-fat diets rich in fish, Inuit people show surprisingly low rates of heart disease. It turns out that fatty fish are full of omega-3 fatty acids and subsequent studies have suggested that these molecules, which the human body doesn't produce naturally and therefore must obtain from the diet, may also play a role in brain function and normal growth and development.
 
 Chen chose glycerin for his carbon source, which he mixes with algae in a fermentor. He then lets the algae feed on the glycerin for a couple of days allowing time for the algae to convert this byproduct of biodiesel production into omega-3 fatty acids-in fairly high concentrations, Chen says. "We've found that from 17 [percent] to over 20 percent of the biomass of the algae is omega-3 fatty acids," he says. The team recently received a grant from the National Science Foundation, which will fund the scale up of the research to a 30-liter fermentor and then to a 100-liter fermentor. From there it will go to the pilot-plant stage, Chen explains.
 
 The question then becomes, what does he do with the omega-3 fatty acid-rich algae? He turns that biomass into milk of course. "Once you have the algae you can do one of two things. You can either extract the fatty acids from the algae or you can feed the algae to animals and use the animals as extractors," Chen explains. Chen's team will be studying the latter of those processes within the next year. They will feed the algae to dairy cows and then determine how much of the omega-3 fatty acids ends up in the milk. "This puts the omega-3s into a product that people use on a daily basis," he says. "Rather than treat the waste as waste we turn it into an actual product."
 

 Another process that employs microbes for the production of a useful product from glycerin is being developed by Ramon Gonzalez, a biochemical engineer at Rice University in Houston. In this new work, Gonzalez's team employs the well-known bacterium Escherichia coli for the production of ethanol from the fermentation of glycerin. "People thought that E. coli was unable to do this," Gonzalez says. "But we found the conditions that enable E. coli to ferment glycerin. It turns out that the main product of the fermentation of glycerin by E. coli is ethanol."
 
 <center><img src="/images/upload/20070905085544.jpg"></center>
 Algae convert glycerol into omega-3 fatty acids, which they store in their cells. When these algae are fed to cows, these animals act like extractors to release the omega-3 fatty acids and excrete it in their milk.
 

 Knowing that microbes tend to be flexible in terms of the different substances they can use for sources of energy and nutrients, Gonzalez and colleagues tweaked experimental conditions such as the composition of the bacterium's growth medium, pH and the amount of gas that accumulated during fermentation to find the environmental conditions ideal for E. coli to ferment glycerin to ethanol. In addition, the process seems to work with various grades of glycerin including unrefined and crude glycerin.
 
 Gonzalez is currently working with biodiesel producers in Texas to form a set-up company to commercialize the technology. He expects to establish a pilot plant for his glycerin-to-ethanol fermentation process in the first half of next year.
 
 "There is a market for ethanol, and biodiesel producers are not scared of flooding that market," says Gonzalez. "Ethanol is something we're going to need for a long time." And glycerin is something that biodiesel producers will not be in want of in the near future.
 
 Jessica Ebert is a Biodiesel Magazine staff writer. Reach her at <a href="mailto:jebert@bbibiofuels.com">jebert@bbibiofuels.com</a> or (701) 746-8385.

Pictured is Virent's process development unit, a pilot plant for the production of hydrogen from glycerin.

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Bob Rozmiarek observes pilot plant results in Virent's hydrogen lab.

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Ramon Gonzalez, left, the William Akers assistant professor in chemical and biomolecular engineering, and Syed Shams Yazdani, postdoctoral research associate.

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Biodiesel Magazine catches up with a few of the researchers investigating innovative chemical and biological processes for the conversion of glycerin into value-added products including antifreeze agents, hydrogen, fortified milk and ethanol.

Discovering New Uses for Glycerin

Glycerin prices dropped through the floor last year as biodiesel producers received market-bottom selling prices of 2 cents a pound or less for the crude byproduct. However, 2 cents a pound looks better on the balance sheets than writing a check to get rid of it. "We saw the bottom of the market late last summer," says Dave Elsenbast, vice president of procurement for Renewable Energy Group Inc. (REG), who markets glycerin for six biodiesel plants in its network. "Since then, we have seen a gradual, steady increase in market pricing coming from an increase in demand." REG is currently receiving between 6 and 10 cents a pound for unrefined glycerin. According to him, the pricing trend is continuing. "Glycerin prices are higher now than they were just a month ago," Elsenbast says. Matt Upmeyer, risk management consultant with FC Stone, says he saw glycerin prices tick up slightly in July between a half a penny and a penny per pound. "Everybody is aware of it," he says. "It helps, but by no means is it the saving grace."
 
 Although high vegetable oil prices are curbing some of the enthusiasm from would-be biodiesel projects, analysts still expect steady growth from the U.S. biodiesel industry. Every million gallons of biodiesel produced pours roughly another hundred thousand gallons of crude glycerin into an already saturated market. "Most companies see the biodiesel industry as being in a growth mode," Elsenbast says. "There's a relatively small volume of glycerin coming from the biodiesel sector now compared with what's expected from it in the future." While raw glycerin returns are only slightly higher, some experts say it's the glycerin refiners who are turning a welcomed profit over the past several months, as prices for the purer varieties have held quite strong. John Urbanchuk, a director with the Pennsylvania-based consulting firm LECG, says refined glycerin is retrieving anywhere from 30 to 40 cents a pound, depending on quality, grade and purity. "The refined glycerin market is strong," Urbanchuk says. "The raw market, however, is still weak as we continue to see large supplies of unrefined glycerin heading for the market." It therefore becomes a question of what to do with all of the crude. Should it be refined in the more traditional sense for sale as technical, pharmaceutical or food grade glycerin, or can alternative uses for the low-priced raw product directly be found?

 
 Domestic Refining Capacity, Foreign Influence
 Cargill Inc. and Archer Daniels Midland Co. (ADM) are expanding their respective domestic refining capacities, but the smaller producers typically are not prepared to invest the necessary capital-a glycerin refinery can cost an average independent producer upwards of $20 million. When the financials are done on the economics of biodiesel production today, the ability to add value to the product streams is an important factor for the profitability of the business. "Biodiesel producers with raw glycerin need to pay attention and make the necessary investments to clean it up," Urbanchuk says. In Iowa Falls, Iowa, Cargill built a 30-million-pound per year glycerin refinery next to its 37.5 MMgy biodiesel plant. In Europe, those same majors-Cargill, ADM and others-have expanded their byproduct refining capacities over the past several years in large part to capitalize on excessive crude glycerin supplies coming from the booming European biodiesel industry. The creation of this additional handling capacity eventually led to a surplus of refined product in Europe. These European and Asian imports were helping to satisfy American companies' needs for dynamite grade, yellow distilled and chemically pure glycerin in commercial industrial applications, and USP- or food-grade glycerin. Scattered reports indicate that refined glycerin exporters from Europe's biodiesel boom and Southeast Asia's palm-based oleochemical enterprises were discouraged because of the low U.S. selling price of glycerin. These exporters purportedly sought closer and more lucrative outlets, notably in China-a country being scrutinized because of its use of unhealthy ingredients exported in products coupled with poor regulatory oversight from the Chinese government. "The situation in China has caught a lot of media attention lately," Upmeyer says. "It will lend a great deal of support to the U.S. glycerin markets." For U.S. biodiesel and raw glycerin producers, Elsenbast says there is growing interest in the export markets-especially Asia. Urbanchuk agrees that there are export opportunities in developing Asian countries. In any event, today's modest U.S. crude gains and even higher refined glycerin prices suggest to some that refined glycerin imports from those same European and southeast Asian processors may once again return, helping to balance price increases with more supplies in the style of classic market economics. At the same time, modest increases in domestic glycerin refining capacity and productive research and development efforts scouting out new commercial applications for crude are expected to create more demand in time for an increased supply of domestic unrefined glycerin.
 
 New Applications Strengthen Crude Outlook
 REG ships a lot of crude glycerin to domestic refiners, and to feed and industrial markets, Elsenbast says, adding that he expects to see an even greater spread between crude and refined glycerin prices in the future. Low prices and chemical versatility have created a plethora of research in an effort to find practical, alternative uses for the abundant biomaterial. From ambitious projects looking into the production of ethanol from crude glycerin to less dramatic but important work examining glycerin's nutritional value in livestock diets, crude glycerin is the subject of vast study. Many universities and extension services are studying how the sweet glycerin affects livestock diets as a replacement for high-priced corn. "When glycerin's market value was as low as it was last summer, it begets a lot of research and brain power looking to add value," Elsenbast says. "Now I think we're seeing the fruits of those efforts." Some of these research efforts are already in the planning stages to go commercial.
 
 In May, Ashland Inc. and Cargill Inc. announced intentions to form a joint venture stand-alone company to develop and produce many different chemical products from renewable resources like glycerin. Manufacturing of biobased propylene glycol will be the first line of focus for the joint venture, beginning with a 65,000 metric ton per year plant in Europe with a specific location yet to be determined. In July, Ashland and Cargill announced a technology licensing agreement with Davy Process Technology Ltd., a Johnson Matthey Co., which owns a highly efficient vapor-phase hydrogenation technology for use in the manufacturing of propylene glycol from glycerin. Jim Millis, Cargill's technical director of industrial bioproducts, says the company's expertise in refining glycerin will complement and further improve the technology now under license. Urbanchuk believes these developments are illustrative of the kinds of work underway to find new uses-pushing greater demand and eventually more attractive prices-for the crude byproduct. "It's a positive step," he says, even though the initial plant is to be sited somewhere in Europe. The development of similar and more widespread commercial uses of crude glycerin are coming but it will take time, Urbanchuk predicts. "I think within two to three years we'll see substantial developments in feed and industrial applications." In the meantime, byproduct quality is of the essence for biodiesel producers, Upmeyer says. "The methanol content [and other impurities] must be very well managed," he says. "Biodiesel does not represent the normal glycerin production stream, so those not focused on quality will have difficulty in marketing their byproduct."
 
 Ron Kotrba is a Biodiesel Magazine senior staff writer. Reach him at <a href="mailto:rkotrba@bbibiofuels.com">rkotrba@bbibiofuels.com</a> or (701) 746-8385.

Refined glycerin prices have remained solid since earlier this year, but biodiesel producers selling crude glycerin, while retrieving modestly higher returns for their byproduct compared to last year, are still entering a saturated crude market. In the meantime, alternative uses for crude glycerin and capacity to refine it are on the rise.

The Glycerin Spread

Steve Verhey spent much of his childhood on a small farm amid the rolling hills of eastern Washington where the vast, fertile landscape is tranquil and clean. He wants to keep it that way.

 
 While teaching at Central Washington University (CWU), Verhey discovered that renewable energy is a key component to preserving the environment. In 2006, he resigned his teaching post at CWU and used his interests in science and renewable energy to create Central Washington Biodiesel LLC. He is the president and CEO of the 3 MMgy canola oil-based biodiesel plant in Ellensburg, Wash. "It was hard to ignore what was going on in the real world and energy is very important, so I found a way to put those interests together-the interest in biochemistry and energy," Verhey tells Biodiesel Magazine. "I found they're really complementary."
 
 Not long after Verhey produced his first gallon of biodiesel in the fall of 2006, he had an opportunity to get involved in a high-profile construction project in Quincy, Wash., where computer software and media services mogul Microsoft Corp. is building the first of six Windows Live Operations Columbia Data Centers. Turner Construction Co., an international construction contractor, is working on the 500,000-square-foot building, which will serve as the backbone of Microsoft's efforts to compete with other Internet services, such as Google and Yahoo. The project is a physical manifestation of the company's ambition to be the leader in the world of Internet services.
 
 Microsoft was attracted to the Quincy area because of the available space, the access to renewable power and the close proximity to its headquarters in Redmond, Wash, says Microsoft spokesman Lou Gellos. Washington is a hub to some of the cheapest, cleanest electricity in the nation supplied by hydroelectric plants. The first of two phases of the construction project were finished in late 2006. Microsoft expects the data center to be complete sometime in the fall.
 
 As the construction of the project progressed however, concerns over poor air quality and the health of subcontractors working with equipment powered by petroleum-based diesel in an enclosed space became an issue for Turner Construction and RSC Equipment Rental, which supplied some of the equipment for the project.
 
 RSC Equipment Rental Territory Manager Jess Bennett, who is based in Ellensburg, visited Verhey in November 2006 to find out if there were advantages to switching to biodiesel. Verhey used his biodiesel-powered forklift to show Bennett the benefits of bioidesel. Ecstatic about what he saw, Bennett relayed to Turner what he learned about the air quality improvement biodiesel could bring to the construction project. In February, Turner and RSC Equipment Rental approved the transition to B99 and workers have been using it since with no complications. "There were some skeptical contractors but the transition actually was very smooth," Verhey says. The switch was expedited by Bennett and his staff, who checked original equipment manufacturer (OEM) information.
 
 Verhey's company supplied the biodiesel and set up B99 tanks on site. "We went from not even knowing we would be supplying the fuel, to supplying all their fuel needs in a week," Verhey says. The transition from petroleum-based diesel to WA Power (what Verhey has coined his biodiesel) has proven to be hassle-free, environmentally friendly and ultimately a relief for the workers who are now exposed to healthier working conditions.
 
 A Smooth Transition

 Early resistance to biodiesel was minimized because RSC Equipment Rental approved B99 for use in all of its diesel-powered equipment. "We were actually surprised at how little trouble there was," Bennett says. "This was a fairly high-stakes situation. If anything bad had happened that would've set things back, but we were lucky enough that everything went well." In fact, the switch to biodiesel was so transparent that when the state Department of Labor and Industries came to the site to check the air quality, the inspectors thought that their instruments were malfunctioning, Verhey says. "The majority of the time it seems like the guys just suffered through it," Bennett says. "I just can't imagine what the jobs have been like in the past [using petroleum-based diesel] in an enclosed situation and having to do the things you need to do."
 
 During Verhey and Turner's first meeting, the construction company decided to totally change over to B99 for the project. According to Verhey, seven cement trucks were working 12-hour days, six days a week for a while, running on biodiesel until the floor of the massive building was complete. All in all, the transition went smoothly, Bennett says. "We expected more [problems] and we were prepared for more but there actually haven't been any problems whatsoever," he says.
 
 Forklifts, backhoes, trackhoes, front-end loaders and dump trucks were the majority of equipment that began using B99 fuel during the first phase of construction. Now, with phase two of the project currently in progress, the biofuel is stored inside of the building in totes where it's easily accessible and portable for the workers. Also on the site are two 33,000 gallon tanks of petrodiesel to power generators for backup power. Those tanks were full of fuel when Verhey met with the construction crew and he was cautious about filling them with biodiesel because it has a shorter shelf life compared with petroleum-based diesel.
 
 Canola-based biodiesel's excellent winter properties allowed Turner Construction and RSC Equipment Rental to use B99 during the winter, according to Verhey. Biodiesel made with canola oil performs effectively at or near 20 degrees Fahrenheit.
 
 Starting a Trend
 Although biodiesel had never been used on a construction site in the state of Washington, Bennett believes that in doing so other construction and equipment rental companies will follow suit because of its environmental and health benefits. However, before others dive into using biofuels education is paramount. "I don't know that other people feel as comfortable or are well-informed enough to do it," Bennett says. "With the reservations that the majority of the other equipment suppliers had, I think people need to be more educated about it and realize just how good biodiesel is for the equipment and the people."
 
 Microsoft's efforts to include environmentally friendly features in its data center structures don't stop at using biofuels during the construction phase. The data center in Quincy is designed to have a minimal to no carbon footprint, according to a Microsoft spokesman. The company's greening efforts include retrofitting existing data centers to decrease the amount of power used to cool the racks of servers, allowing the buildings to capture outside air, maximizing the use of green building technology detailed by the Leadership in Energy and Environmental Design (LEED) Green Building Rating System, a voluntary, concensus-based national standard for developing high-performance and sustainable buildings. Yahoo and Google are looking to follow suit with their data centers.
 
 Verhey would like to see government entities at the state and federal levels require contractors to use biodiesel in their equipment. The move would alleviate the potential for hazardous material spills and other effluent discharge associated with using regular petroleum-based diesel. "The guys working in [the data center] like using [biodiesel]," Verhey says. "They really appreciated that Turner and RSC Rentals were trying to do something to help them because it's nasty to work in a place like that with diesel. They appreciated the better working conditions in general."
 		
 Bryan Sims is a Biodiesel Magazine staff writer. Reach him at <a href="mailto:bsims@bbibiofuels.com">bsims@bbibiofuels.com</a> or (701) 746-8385.

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Central Washington Biodiesel supplied the biodiesel used in the equipment on the Microsoft Columbia Data Center construction site. The canola-based biodiesel was instrumental in improving air quality.

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RSC Equipment Rental played a pivotal role in initiating B99 for use in its equipment at the Microsoft Columbia Data Center construction site in Quincy, Wash.

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Verhey, who calls his canola-based biodiesel WA Power, believes state and federal government entities should require the use of biodiesel on construction sites.

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Washington is nicknamed the "Evergreen State" and Central Washington Biodiesel LLC has taken a proactive approach to preserving that moniker by supplying B99 in support of Microsoft Corp.'s data center construction project in Quincy, Wash. Biodiesel Magazine talks to the biodiesel producer and the contractors involved about how the fuel has improved working conditions.

Constructing a Cleaner Work Environment

News release posted Oct. 3, 2007, at 10:26 a.m. CDT
 
 Renewable Energy Group, Inc. (REG), a leading full-service biodiesel company, is proud to welcome Mr. Jon Scharingson as Director of Marketing; Mr. James Barclay as Human Resources Manager; Mr. Don Nelson as Biodiesel National Sales Director; and Mr. Patrick Hammen as Chief Information Officer.
 
 Jon Scharingson, Director of Marketing
 Mr. Scharingson will oversee national market development strategies for Renewable Energy Group, Inc. and the commercial-scale biodiesel production facilities in the REG network nationwide.
 
 Mr. Scharingson's experience allows REG to better serve current customers through the development of marketing and advertising programs as well as reach potential customers through national business development strategies," explained Daniel Oh, Chief Operating Officer at Renewable Energy Group, Inc.
 
 Mr. Scharingson joins REG after 17 years at Sygenta. He holds a Master of Business Administration degree in Marketing and Management from Iowa State University.

 
 James Barclay, Human Resources Manager
 Mr. Barclay will oversee recruiting, retention, and personnel management for Renewable Energy Group, Inc. and the commercial-scale biodiesel production facilities in the REG network nationwide.
 
 Mr. Barclay joins REG following a 23 year career in the United States Air Force where he retired in the grade of Major.
 
 "Mr. Barclay's experience allows our company to continue to recruit and retain high quality employees to continue moving our biodiesel business forward," said Jeff Stroburg, Chief Executive Officer of Renewable Energy Group, Inc. "His extensive experience in management, team motivation, human relations education and employee benefits programs will serve our team as we continue to grow our staff and pool of industry expertise."
 
 Mr. Barclay's United States Air Force career focused on personnel and human resources program management. He holds a Master of Education in Educational Administration Curriculum and Supervision from the University of Oklahoma.
 
 Don Nelson, Biodiesel National Sales Director 
 Mr. Nelson will work with private and public fleets and the petroleum industry to introduce biodiesel into new markets, grow Renewable Energy Group's current market share and develop national strategies for biodiesel consumption.
 
 "Mr. Nelson's experience in new account management, sales, operations and logistics will allow Renewable Energy Group, Inc. to better serve our biodiesel customers and help intergrate new distribution systems and partnerships into our national marketing network," said Nile Ramsbottom, President of Renewable Energy Group, Inc.
 

 Mr. Nelson's joins Renewable Energy Group, Inc. after more than five years with Joseph Walker and Company where he most recently served as President and COO. He holds a Bachelor of Science in agricultural business management from California Polytechnic State University.
 
 Patrick Hammen, Chief Information Officer
 Mr. Hammen will incorporate new technology services, software and programs for Renewable Energy Group's nationwide network of biodiesel production facilities and growing headquarters.
 
 "Mr. Hammen has experience in evaluating, choosing, implementing and upgrading systems and information technology solutions which will aid Renewable Energy Group, Inc. as we continue to better serve our customers', clients' and employees' needs," said Jeff Stroburg, CEO and Chairman of Renewable Energy Group, Inc."
 
 Mr. Hammen joins Renewable Energy Group, Inc. after seven years with The Waldinger Corporation where he most recently served as the Director of Information Technology.

REG adds new leadership

Argentina wants to be a net exporter of biodiesel and the country is providing incentives for the processing of soybeans so the commodity doesn't leave its shores. The biodiesel that's produced in the South American country is often bound for the United States to capitalize on renewable fuels subsidies here. Argentina taxes biodiesel exports at 5 percent and taxes exports of soybean oil at 24 percent. This 19 percent Differential Export Tax (DET) provides an incentive worth 43 cents per gallon for Argentina's soybean processors to convert soybean oil into biodiesel prior to export. "The whole bean is taxed more than double what biodiesel is in Argentina," says Rick Ostlie, a Northwood, N.D., farmer and member of the American Soybean Association (ASA). "They're building plants all over the place, really trying to grow their industry."

 
 Integrated petroleum enterprises also want to benefit from the hefty $1-per-gallon tax credit available for biodiesel and renewable diesel. Biodiesel producers and the National Biodiesel Board (NBB), however, have argued that the simple act of adding biomass to conventional refinery practices shouldn't receive the same federal support as new energy companies and technologies built from scratch. But the oil companies say they are looking at ways to reduce their carbon footprint, and that these efforts should be rewarded as well.
 
 These two examples illustrate the conditions that are causing friction for biodiesel producers as they look to build up the industry in the United States. There are efforts though to legislate in favor of domestically produced methyl esters in the competition for federal funds and markets. Most of this work is being done in the Energy Bill and the Farm, Nutrition and Bioenergy Act of 2007, commonly called the Farm Bill. The Biodiesel Incentive Program-included in the energy title of the Farm Bill-would authorize the Commodity Credit Corporation (CCC) to use eligible commodities to reimburse U.S. biodiesel producers on domestic production. The reimbursement would equal the 43-cent-per-gallon benefit to biodiesel exported under Argentina's DET export subsidy program, essentially offsetting the so called "splash and dash" loophole.
 
 U.S. biodiesel producers say they need an incentive to offset foreign subsidies in order to compete in their own market. Unlike ethanol, biodiesel is not protected by a secondary import tariff that offsets the value of its tax incentive.
 
 In addition to competing with subsidized imports, the U.S. biodiesel industry is struggling to establish itself at a time of extremely volatile energy and commodity markets.
 
 Biodiesel producers, the ASA and the NBB all believe that allowing foreign countries to capitalize on American incentives is essentially subsidizing production abroad. "It seems like there is a pretty strong feeling in the Senate to get these loopholes closed," Ostlie says. Others, however, say that because the United States is hankering to get "fuel from renewable resources wherever it can," providing incentives for oil companies to benefit from existing incentives as well as allowing foreign imports of renewable fuels is good policy.
 
 Controversial Credit
 In May, Rep. Lloyd Doggett, D-Texas, introduced a bill to prevent large integrated oil companies from "exploiting a federal tax incentive designed to stimulate biodiesel and renewable diesel production," according to the NBB. Doggett's proposal followed on the heels of the Internal Revenue Service's (IRS) approval of a request to expand the definition of "renewable diesel" in the Energy Policy Act of 2005. "Economic analysis shows that biodiesel production will create at least 40,000 new jobs and will add $24 billion to the U.S. economy," said NBB CEO Joe Job. "By contrast, subsidizing the existing operations of oil refineries accomplishes none of these goals, and in fact, could endanger free-standing biodiesel and renewable diesel producers by artificially inflating feedstock costs."
 
 Other lawmakers believe that the United States should support fuel from all possible renewable and domestic resources. "First and foremost is reducing our dependence on foreign oil," says USDA Undersecretary for Rural Development Thomas Dorr. His stance is in keeping with the administration's position that reducing the country's dependence on foreign oil and fostering economic trade with foreign countries is as important to America's future as providing solid subsidies for the domestic agricultural and biofuels sectors.
 

 Using biomass in conventional refining processes, however, doesn't increase domestic capacity, Ostlie says. "By subsidizing that mix you're not gaining a single gallon of refining capacity," he says. "If they're importing low-quality palm oil to use in the front end of the refinery, then the U.S. is supporting imported energy and not increasing refining capacity." The conclusion to Ostlie's argument is that by blending biodiesel with petroleum on the back-end, domestic capacity is being increased.
 
 Administration's Stance, National Conflict, Media Firestorm
 In the long term, liberal trade practices equal good policy, Dorr tells Biodiesel Magazine. This is essentially the Bush administration's standpoint, which is to foster diplomatic relations and trade with South America. President George W. Bush has been outspoken about the need to repeal the 54-cent tariff on imported ethanol and it might be hard to get similar prohibitions for biodiesel across his desk. Also, Jeb Bush, the president's brother and former Florida governor is involved with a coalition called the Florida Free Trade Association. This group counts Brazilian President Luiz Inacio Lula da Silva among its members and making ethanol trade between the United States and South America free and easy is one of its primary goals.
 
 The battle lines are drawn with farm groups, agribusiness giants and biodiesel clearly on one side, and the president and others rallying for reform. The first group says that getting a new industry off the ground requires support and protection from volatile market forces. The second group says that it's time for the United States to start playing fairly in global markets and repair some of the fractured foreign relations that have occurred over the past decades.
 
 In the meantime, people all over the world are watching the Farm Bill discussions. Australian farmers are even urging Bush to veto the Farm Bill. The House Agriculture Committee responded to veto threats from President Bush with some strong language. "This is not the first time that the Bush administration has turned its back on American agriculture and rural America," said Rep. Collin Peterson, D-Minn., chairman of the House Agriculture Committee. "They repeatedly threatened to veto disaster assistance for agriculture, which the Democratic leadership passed this year. The administration also vigorously opposed the 2002 Farm Bill, which [USDA Agriculture] Secretary [Mike] Johanns and others now praise as 'the right bill at the right time.'"
 
 Where the Farm Bill is concerned, the biodiesel industry wants to see expansion of the CCC Biodiesel Incentive Program and the Biodiesel Education Program. The first of these supports domestic biodiesel production by providing farm payments to help U.S. biodiesel producers offset rising feedstock costs. The NBB says educational efforts are critical to raise consumer awareness and support for the fuel it represents, and energy titles in the Farm Bill would double funding for the Biodiesel Education Program from $5 million to $10 million.
 
 The current Farm Bill debate has sparked a firestorm of political and media attention. Critics of the 2002 document say that the new version does nothing to fix the trade-distorting subsidies that are a shameful violation of international agreements. The Los Angeles Times reported that subsidy programs since 2002 "have been managed so badly that the U.S. Government Accountability Office turned up $1.1 billion paid out over seven years to dead people." There have been hundreds of articles written from coast to coast over the past few weeks on this subject representing the press' widespread criticism of Congress. The Denver Post, for instance, said it supported the president's promise to veto the "misbegotten form" in which the bill left the House Agriculture Committee. Many who are opposed to the House version of the Farm Bill say that America's agriculture programs are ripe for reform, and currently serve only to enrich special interests.

 
 Ostlie and the ASA, on the other hand, applaud the House's actions because of a couple of key provisions. First the soybean target price is increased 30 cents to $6.10 per bushel, and it includes a new CCC Bioenergy program funded at $1.4 billion to support domestic biofuels production. Ultimately, the big issue here is one of image. Johanns said that increasing the target prices for 12 crops and raising loan rates on 14 clearly represents a step backward in farm policy. "Planting should be based on free-market demand, but these measures create incentives to plant one crop over another regardless of market forces," he said. "Additionally, the marketing loan program is seen as the most trade-distorting, amber-box (all domestic support measures considered to distort production and trade with some exceptions) program under our World Trade Organization obligations, making it subject to intense scrutiny. That's the bull's eye I talk about being on the farmers' backs."
 
 The administration also wants to end subsidies for a small percentage of wealthy farms that make more than $200,000 per year. "We believe strongly that there is a point at which people graduate from receiving government cash subsidies," Johanns said at a July 25 press conference.
 
 Dorr tells Biodiesel Magazine that he is a strong supporter of the biodiesel industry and that he thinks methyl esters are indeed a long-term alternative fuel, but support of the industry cannot come at the expense of tax increases, diplomatic relations and international trade. Could biodiesel and soybean farmers pay the political price for sought-after subsidies and become associated with trade distortion and wealthy, specialized farming interests? Ostlie says no. "We're growing fast, but we're not 100 percent up and running and we need some help to get there," he says.
 
 In the meantime, this could be the first omnibus Farm Bill vetoed by a president since former President Dwight Eisenhower did it in 1956.
 
 Nicholas Zeman is a Biodiesel Magazine staff writer. Reach him at <a href="mailto:nzeman@bbibiofuels.com">nzeman@bbibiofuels.com</a> or (701) 746-8385.

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The good news is the House Ways and Means Committee supports provisions in the Energy Bill that strengthen the biodiesel industry, and the House version of the Farm Bill would expand the Commodity Credit Corporation Bioenergy Program and the Biodiesel Education Program. The bad news is that nothing is written in stone, and the administration strongly opposes any provisions that could hamper international trade.

Where Does Biodiesel Legislation Stand?

Soybean farmers in the DeWitt, Ark., area, will soon be able to purchase seed, sell their crop and buy fuel to power their equipment from the same company. Their small town in the Mississippi Delta is home to the sharp new facilities of Arkansas SoyEnergy Group LLC, the latest of several agricultural ventures started by the Hornbeck brothers. Jon Hornbeck is chief financial officer and Troy Hornbeck is chief operations officer of the Hornbeck Agricultural Group, while Jeff Hornbeck manages the farm. With Arkansas SoyEnergy, the brothers are taking vertical integration a step further-not only do they raise soybean seed, they research and develop their own varieties, offer crop monitoring and farm management services and now they will be buying soybeans to crush and turn into biodiesel that will be sold locally. The companies within the Hornbeck Agricultural Group include Hornbeck Brothers Partnership, Hornbeck Seed Co. Inc., Worldwide Soy Technologies LLC, Southern Agronomic Resources LLC and now Arkansas SoyEnergy Group LLC.

 
 Jon Hornbeck is pleased and somewhat surprised by the feedback he's received from farmers. "Local farmers have a very keen interest in buying the pure B100," he says. To his surprise, older farmers, whom he expected to be slower to adopt the new fuel, have been the most interested in burning the pure biodiesel while younger farmers are more hesitant. "I personally wish they'd work their way into [using B100] slowly," Hornbeck says, adding that Arkansas SoyEnergy will be educating local farmers about the use of biodiesel and the importance of carefully monitoring fuel filters and pumps when they first start using the fuel. Hornbeck expects to sell B100 to area farmers once the plant is operating and a local fuel supplier will purchase the renewable fuel for blending. "We probably burn from 10 [million] to 15 million gallons of diesel in this county each year-that's just agricultural only and not truck fuel," Hornbeck says.
 
 "We're going to be the first plant in Arkansas to take the soybean from the farmer's field and put biodiesel in the farmer's fuel tanks," says Terry McCullars, general manager of Arkansas SoyEnergy. Arkansas has two other biodiesel producers including Patriot Biofuels Inc., which produces 3 MMgy in Stuttgart, and Future Fuel Corp., which produces 24 MMgy in Batesville. Arkansas SoyEnergy's $9 million facility will crush around 2.5 million bushels of soybeans and produce 3 million to 3.5 million gallons of raw soybean oil annually. The soybeans will be dehulled prior to crushing and the hulls sold in the cattle feed market. McCullar explains that the dehulled soybeans produce a higher protein (nearly 50 percent) meal coproduct, which the company expects to sell to area fish and poultry producers.
 
 The crushing facility completed this summer includes 360,000 bushels of grain storage and a tank farm consisting of six 25,000 gallon tanks for storing raw soybean oil and biodiesel. With the crushing plant ready to crush this year's harvest, work continues on the biodiesel plant, which is scheduled for completion in December. A laboratory will be housed in the plant to monitor the process and make sure the biofuel meets BQ9000 accreditation.
 
 The 7.5 MMgy biodiesel plant was designed by Argentine-based Bionerg. The Hornbecks toured a Bionerg facility when they visited winter research plots in Argentina. The biodiesel plant production capacity will be nearly double the initial crushing facility capacity. Hornbeck plans to expand the crushing capacity by adding more expellers and presses. In the meantime, he's constantly fielding questions about why they aren't building a bigger plant. "My answer is I don't need a bigger plant," he says. "I'm trying to take care of my area. I'll let the big multi-million [gallon] plants take care of the rest of the country, my focus is local. My plant can consume a great deal of the soybeans in my area and I can supply the majority of the fuel in my area."
 
 Plus, a bigger plant would require the Hornbecks to haul soybeans in from a greater distance. "We're at the capacity we need to be at," he says. "If we increase the plant size very much more we're going to have to haul grain in from a larger area. If you haul beans in from a 200-mile radius, you'll out-price yourself with freight charges."
 
 Hornbeck sees the crushing facility and biodiesel plant as adding an important new market for local farmers. DeWitt is located in Arkansas County in southeastern Arkansas-flat, fertile land of the Mississippi Delta where rice and soybeans are the dominant crops. However, the DeWitt area is landlocked, with no railroad or river access. Soybean prices here are based on Chicago Board of Trade (CBOT) price quotes minus the basis, a term referring to the difference between CBOT futures market and the local cash price that reflects transportation costs and local demand. "Local elevators are anywhere from 50 cents to $1 under the board, which is a lot," Hornbeck says. Arkansas SoyEnergy's goal is to narrow the basis by about half, "not as a competitive move, but trying to get the farmers a little more money for their crops."
 	
 Developing Seed Varieties
 The Hornbecks also see an opportunity for their soybean breeding business, Worldwide Soy Technologies. "We run several thousand soybean varieties a year through our research facilities," Hornbeck says. "We've always focused on high protein content. When this project came up we began looking at the oil." Two varieties show promise for producing 2 percent to 3 percent more oil than other varieties while maintaining good yields. The company may contract with farmers to grow the new varieties for the biodiesel plant. "It's not a drastic increase in oil, but any little bit helps," he says.
 

 The brothers are also experimenting with canola. "It's a winter crop that we can grow like winter wheat," Hornbeck explains. Compared with the area's dominant crops of rice and soybeans, canola is a low input crop that requires equipment similar to wheat. Canola's oil content is double that of soybeans and Hornbeck sees it as a good supplement to soybeans to supply the plant. The Hornbecks learned several things when they planted their first canola crop last fall. Chemical residues from previous crops caused problems with stand establishment, and aphids weren't caught in time to prevent damage. They aim to improve the 1,100-pound-per-acre yield next year. If the crop continues to look promising, the Hornbecks' research and seed companies may add canola to their list of crops.
 
 Complete Package
 Looking ahead, the Hornbeck Agricultural Group may offer package deals to their farmer customers. Farmers can buy seed, have the crop monitored, receive help with bookkeeping, sell the grain to the crushing facility and buy the biodiesel to fuel their equipment. "We'll tie the package together and farmers who use all of our services will get a discount."
 
 The real benefit, though, will be to the local community, Hornbeck says. "We're not going to adversely affect farmers because we're farmers ourselves," he says. "We look at it as another source for local farmers to deliver their crop and hopefully make a little more money on their grain. Then we turn around and make the B100 and sell it back to them, hopefully at a discounted price." Also, as their business grows, the brothers will add jobs and contribute money to the local economy. The benefits provided by the Hornbecks haven't been overlooked by the local farmers. "I don't know how many farmers have told me, 'I wouldn't mind paying 5 or 10 cents more per gallon [for their fuel]. I know it's supporting my business and you're buying my beans. It's worth that to me.'"
 
 Susanne Retka Schill is a Biodiesel Magazine staff writer. Reach her at <a href="mailto:sretkaschill@bbibiofuels.com">sretkaschill@bbibiofuels.com</a> or (701) 746-8385.

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Arkansas SoyEnergy's grain handling system includes 360,000 bushels of storage capacity. One of three tanks is visible in this photo.

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Behind the grain storage, six 25,000 gallon tanks store the raw oil and finished biodiesel.

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Three brothers from Arkansas, who already develop and grow their own soybean seed and provide crop monitoring and management services, aim to vertically integrate their business by buying soybeans, crushing them and turning the oil into biodiesel.

From the Ground Up

Early customers of Pacific Biodiesel Inc. were a dedicated lot. They drove out of their way to fill up with biodiesel at the Central Maui Landfill and paid 75 cents a gallon more for the renewable fuel than petroleum-based diesel. "It was really touching," says Bob King, founder and president of Hawaii's pioneer biodiesel company. "These people were not wealthy. They would spend part of their paycheck for the fuel, thank us and bring us bananas and onions."
 
 Today it's easier to fill up with biodiesel. The B100 pump is in Kahului on the island of Maui, Hawaii, next to Pacific Biodiesel's offices. The fuel now costs 50 cents a gallon less than regular diesel and there's a waiting list of 130 individuals plus several business accounts wanting to become regular customers once the supply increases. "We like having the retail pump at the office," King says, "We get deep in plans for plant construction, engineering and finance. It's nice to have a person walk through the door and say, 'Thanks for making this.' How many chances do we get in our normal life to purchase something that truly makes a difference? It's a tank of petroleum that didn't get shipped to Hawaii." King's wife, Kelly, says their customers find hope in buying biodiesel. "Here's something they can do, they're part of the solution and it's easy for them. They come in, pay us, thank us and share stories," she says. "We're building a community around biodiesel on Maui."
 

 Bob King was a diesel mechanic servicing the generators at the landfill in the early 1990s when he learned that disposing of waste vegetable oil was a problem. "They were landfilling all the grease because we didn't have other markets," he recalls. "It was really a mess-composting didn't work. I decided I'd try burning it in diesel engines." He used the Internet, which was new at that time, to make connections with an Idaho researcher. "I learned about biodiesel and ended up building a plant to make it. At that time I thought that was it, one plant on Maui and maybe another plant in Hawaii somewhere." He invested his savings and was backed by others including the contractor making compost at the landfill, an employee at his King Diesel shop and the Idaho researcher.
 
 That was in 1996. The pump located next to the 200,000 gallon-per-year plant was the first retail pump in the nation. The price of crude oil was $12 a barrel and biodiesel was a new product that required a lot of customer education. "It was a struggle," Bob King says. He continued his business as a diesel mechanic and hired Carl Nagata to work in the plant. Kelly King joined the effort by using her marketing and graphics background to get the word out. With one plant, one employee and a secure feedstock, Pacific Biodiesel's costs were stable. The Kings rewarded their loyal customers with a stable price, not raising it for eight years. "It wasn't until we moved offices and hired employees that we raised the cost," Kelly King says.
 
 Within a year of starting up the plant at the Maui landfill, a Japanese businessman learned about the project on the Internet and contacted the Kings. Their second plant was completed in 1997 at Nagano, Japan, to recycle restaurant grease into biodiesel.
 
 Ten years later, Pacific Biodiesel has built 10 community-based biodiesel plants. What started out as a solution to a landfill disposal problem, turned into a mission to create community-based, sustainable biodiesel production facilities.
 
 Promoting Sustainability
 The mission got a boost when Annie and Willie Nelson discovered Pacific Biodiesel and hopped on board. The Nelsons and their two children have a home on Maui. "I read a story about Kelly and Bob and did some reading on my own," Annie says. "I tried to figure out what was the negative. I saw a future here for farmers." Her first step was to purchase a Volkswagen Jetta and try it out herself. She asked the dealer to put only enough fuel in the tank to get her from the delivery dock to Pacific Biodiesel. Willie Nelson was so impressed that he bought a 2005 Mercedes diesel and did the same. "I call them our virgin B100 cars," Annie Nelson says.
 
 Since then, the Nelsons have become big supporters of biodiesel and investors in Pacific Biodiesel projects, including one close to Willie Nelson's hometown at Carl's Corner, Texas. It was the King's integrity and production methods that attracted the Nelsons. "Their concern was about the community," Annie Nelson says. "The model for Carl's Corner is that [the biodiesel] is locally grown, locally produced and locally distributed." The 2 MMgy plant uses locally raised cottonseed oil and waste vegetable oil to produce biodiesel sold at the Carl's Corner Truck Stop on Interstate Highway 35.
 
 Bob King believes that the best thing about biodiesel is that it can be made on a small, community-based scale. "For the first time since hay, farmers can make their own fuel," he says. "Our focus is putting the energy back into the community where it should be rather than these mega plants trying to buy feedstocks all over the planet." The Kings are critical of the move toward large biodiesel plants, and investors primarily interested in making a profit. "People talk about having to [transport the fuel by rail], to me that's the first indication that it's not sustainable," Bob King says. Kelly King echoes her husband's sentiments. "It's getting away from the grassroots reasons why biodiesel is a wonderful alternative fuel, if we do it correctly," she says. "People don't realize renewable doesn't mean sustainable."
 
 The goal is to match the plant to local feedstocks and markets. "In a small community like Maui, where there are a few 100,000 gallons of used cooking oil and no fuel crop, you're looking at a small plant," Kelly King says. The Kings would like to see fuel crops developed on the islands, however, they know that will take some time. "You have to realize that there's not a combine in the entire state of Hawaii," Bob King points out. An initial step in that process was made possible by a $100,000 U.S. EPA grant presented to Honolulu Clean Cities. The money will be used to fund a study to evaluate samples of potential Hawaiian oil crops such as avocadoes, kukui nuts, palm oil and castor beans. Kukui nuts were traditionally used for lamp oil, Kelly King says. They want to know if the oil would make biodiesel to ASTM standards.

 
 The Kings have built other biodiesel plants that use waste vegetable oil or locally grown oils. "We choose our clients carefully, almost as carefully as we chose our partners," Kelly King says. "We've tried to stay away from venture capitalists and keep limited to people who care about the mission."
 
 In Nevada, they built a plant for a ranching client who uses oil from canola crops raised 10 miles from the plant to produce the fuel used on the ranch. In Salem, Ore., waste vegetable oil from the Kettle Foods Inc. potato chip plant provides the feedstock for a 1 MMgy plant. Pacific Biodiesel partnered with SeQuential Biofuels LLC in 2005 to build the plant. An expansion to 5 MMgy is underway and locally grown canola oil will be used to supplement the waste vegetable oil feedstock. The Nelsons, who are investors in the project, joined the Kings in early July in Salem to announce the expansion and celebrate Oregon's biofuels initiatives. "Willie said, 'We've got to pat these guys on the back, they're doing the right thing,'" Kelly King says. In December 2006, the city of Portland became the first U.S. city to adopt a renewable fuels standard mandating all fuels sold within the city limits to be E10 and B5 by Nov. 1. The governor signed legislation at SeQuential earlier in July that beefs up the Oregon renewable fuels standard.
 
 Forming an Alliance
 Kelly King and Annie Nelson along with celebrity Daryl Hannah and others have taken their sustainable biodiesel mission to the next level by organizing the Sustainable Biodiesel Alliance. They have a financial sponsor and have begun to develop a nonprofit organization. "We've got a good roster on the advisory committee," says Annie Nelson, naming organizations such as Friends of the Earth, Worldwatch Institute, Whole Foods Market IP L.P., Farm Aid and the International Association for Trade Policy. They formed the organization to educate consumers about sustainable biodiesel and to develop a seal for operations meeting sustainability criteria. "The goal is when people drive up they will choose the pump that has a seal on it," Annie Nelson says. The seal tells consumers that the biodiesel they are using was produced in a sustainable manner.
 
 Pacific Biodiesel, the Kings, the Nelsons and their vision for community-based sustainable biodiesel are featured in a documentary called "Revolution Green" released this summer by Springfield Entertainment Group and available online at <a href="http://www.revolutiongreen.com" target="_blank">www.revolutiongreen.com</a>. Director Stephen Strout and producer Jessica Kelly spent two years filming the biodiesel promoters to tell the story of their mission. "The first biodiesel pump at the Maui landfill was still operational when we started the project," Strout recalls. "Here's this guy who took all his own savings to start this. That pump represents a leap of faith."
 
 Susanne Retka Schill is a Biodiesel Magazine staff writer. Reach her at <a href="mailto:sretkaschill@bbibiofuels.com">sretkaschill@bbibiofuels.com</a> or (701) 746-8385.

Bob King stands by the pump at the landfill where customers filled up with B100 in the early years.

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Stephen Strout films Bob King making a demonstration batch of biodiesel in his backyard for the documentary "Revolution Green."

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Word of Bob and Kelly King's grassroots approach to producing biodiesel is getting around. Pacific Biodiesel Inc., with its humble Hawaiian roots in the Central Maui Landfill, continues along its community-based, sustainable path using locally produced feedstocks.

On a Simple, Sustainable Mission

Thousands of gallons of water are used everyday at biodiesel production facilities like Renewable Energy Group's (REG) plant in Ralston, Iowa. The research facility experiments with the biodiesel process and has a production capacity of 12 MMgy. It shares its water supply with West Central Cooperative's Soy Center, which uses up to 43,000 bushels of soybeans per day to produce soybean meal.

 
 Prior to the implementation of improvements to the water treatment system, the total water consumption between the facilities required 8,000 to 10,000 gallons of water each day. Facility managers looked at ways to conserve water and improve production quality.
 
 "We want to be smart about water usage," says Randy Daniel, West Central's soy production manager. "It's environmentally and economically important to us. Lower water use conserves local resources while reducing our production costs."
 
 <center><img src="/images/upload/20070905094124.jpg">
 Figure 1. REG's water usage dropped considerably after installing an RO unit.</center>
 
 Daniel and his team implemented an idea that has done just that. They began using a water treatment system that creates dramatic water savings. Daily usage (Figure 1) was reduced from an average of 9,000 gallons to only 3,000 gallons per day. This was achieved by installing a reverse osmosis (RO) system to treat the water prior to distribution to the plant facilities.
 
 <center><img src="/images/upload/20070905094136.jpg">
 Figure 2. The previous water system, shown on the bottom, used three water softeners.</center>
 
 A Water System Improvement

 The facilities' hard well water contains high levels of iron and other dissolved solids. The previous system had a high volume of water blown down through the boilers and cooling towers due to the inorganic materials remaining in the water (Figure 2). The well and water softener were located adjacent to each other. However, the softeners were located at remote locations throughout the facility near points of use. Maintenance of the three units in remote locations was not an ideal situation. In addition, the softeners were not producing the quality of water desired by REG and West Central. Consultants Thompson Environmental and Shive-Hattery Inc. were brought in to examine the facility. After discussing the issues with the consultants and evaluating their options, the managers decided to update with a RO process.
 
 The decision to invest in RO was significant. The managers had to weigh short-term costs with long-term benefits. Costs for the RO system included equipment, start-up and support costs, installation and electrical/mechanical infrastructure, and design and construction phase costs. The total price tag was approximately $138,000.
 
 Upon installation, the RO unit reduced levels of iron, alkalinity and other dissolved solids. Even when treated through a water softener, a high volume of water was "blown down" through the boilers and cooling towers due to the inorganic materials remaining in the water. The new RO system drastically improved the water quality, reduced water usage, allowed the elimination of the water softeners, reduced equipment repairs and improved operating efficiency. The investment began to pay off immediately.
 
 <center><img src="/images/upload/20070905094106.jpg">
 Figure 3. The RO unit greatly improved water quality.</center>
 
 › Improved water quality REG and West Central took samples before and after installation of the system (Figure 3). The raw well water contained iron levels of 3.3 parts per million with a pH of 7.6 and alkalinity of 440. Post-installation water improved to .03 parts per million of iron, 5.7 pH and 4.9 alkalinity. As noted after the sample point in Figure 3, a caustic soda feed was included with the installation to increase the pH to approximately 7.0.
 › Reduced water usage The "well run time" decreased with less demand for water. Production that once on average required 9,000 gallons per day went to just 3,000 gallons per day. There is less depletion of groundwater and the amount of wastewater has been significantly reduced.

 › Eliminated water softeners and reduced equipment repairs The three water softeners were replaced with one RO unit, eliminating the need to continually purchase salt. It is anticipated that pump life will be extended due to the shorter run times. Since there are fewer solids in the water fed to the cooling towers and boilers, the cycle times are extended to reach their conductivity set points. The result is that these units are now using less water with more infrequent blow-down cycles.
 › Improved operating efficiency "The RO unit has streamlined operations for us," Daniel says. "We've minimized waste with an easy-to-maintain water treatment system."
 
 Even the "rejected" water from the RO unit is reused in a soybean wetting process at West Central's Soy Center.
 
 The New Process, Lessons Learned
 Before converting to the RO system, water softeners at each distribution point treated well water. This meant maintaining and feeding salt into three pieces of equipment. The RO system replaced the three stations with one water treatment station.
 
 Figure 2 shows the process. Well water is pumped through an induced-draft aerator and into an iron filter. The next stop is a Siemens water technology Vantage M83-100 Reverse Osmosis Unit.
 
 Shive-Hattery and Thompson Environmental recommended the Vantage M83-100 system because it was the right size for the facility. The compact footprint saves valuable floor space with "clean-in-place" connections that make serving it relatively easy. The only regular maintenance is periodically cleaning the membrane.
 

 As water flows into the Vantage M83-100, contaminated water is put on one side of a membrane that acts as an extremely fine filter. Pressure is applied to stop and then reverse the osmotic process, resulting in much purer water. Rejection rates are low, approximately 25 percent.
 
 A pH controller is tied to the caustic soda feed to adjust water pH levels. On average, readings show a 7 pH level. From here, the water is distributed to various areas: biodiesel, boiler feeds, cooling towers, lab feed and the soy center.
 
 The new water treatment system is capable of flowing 100 gallons per minute with 75 percent of the water going on to be used in the biodiesel production and other needs. The reject water goes to the soybean wetting process.
 
 On a typical day, the water demand is 60 to 80 gallons per minute. The system runs about 35 minutes every hour, 24 hours a day. The RO unit delivers highly purified water for the biodiesel process, very little water is wasted and plant managers are much happier with end results.
 
 The key to a successful RO unit installation is talking with suppliers and equipment manufacturers to find out what product will provide the best performance. A qualified, experienced design consultant can help you find the right fit for your facility.
 
 With the right RO system, your production efficiency will improve with water pure enough to feed all parts of your operations including cooling towers, boilers and your production line.
 
 Michael Hall is a professional engineer with Shive-Hattery Inc. Reach him at <a href="mailto:mhall@shive-hattery.com">mhall@shive-hattery.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 RO unit stands in front of a 12,000-gallon storage tank and iron filter.

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Reverse Osmosis Conserves a Precious Resource

Biodiesel is a clean-burning alternative fuel, produced from renewable resources such as vegetable oils and animal fats. The official definition consistent with federal and state laws and the original equipment manufacturer (OEM) guidelines identifies biodiesel as mono-alkyl esters of long chain fatty acids derived from vegetable oils or animal fats which conforms to ASTM D 6751 specifications for use in diesel engines.

 
 Biodiesel can be used as a pure fuel or blended at any level with petroleum diesel to create a biodiesel blend that can be used in compression-ignition engines with little or no modification.
 
 This alternative fuel is constantly increasing in popularity, with the National Biodiesel Board reporting a rise in sales volume in the United States from 500,000 gallons in 1999 to 75 million gallons in 2005.
 
 All fuels and fuel additives must be registered with the U.S. EPA and be subjected to the health effects regulations contained within 40 Code of Federal Regulations Part 79. Biodiesel is the only alternative fuel to be legally registered with the EPA and to have fully completed the health effects testing requirements of the 1990 Clean Air Act Amendments. Furthermore, pure biodiesel (B100) has been designated as an alternative fuel by the U.S. DOE and the U.S. Department of Transportation.
 
 In order for biodiesel to be sold as a fuel or blending stock, it must meet a set of requirements defined in ASTM D 6751 and EN 14214 standards, which specify the maximum allowable concentrations of contaminants in B100. Biodiesel must be produced to these strict specifications to ensure optimum engine performance as well as safe engine operation.
 
 A range of techniques can be used for both the quality control and the identification of labeled blend levels, including gas chromatography (GC), infrared spectrometry (IR) and inductively coupled plasma (ICP).
 
 Gas Chromatography: The Official Methods
 › Free and total glycerin (EN14105 / ASTM D 6584) Free and bonded glycerin reflects the quality of biodiesel. Low levels of total glycerin ensure high conversion of the oil while high levels of glycerin and glycerides can cause injector deposit, a clogged fueling system and affect cold weather operation. The analysis of glycerin, and mono, di and triglycerides requires a non-discriminative injection system able to transfer both volatile and heavy compounds.
 

 The regulations mentioned earlier specify that GC analysis, with automatic on-column injector and high-temperature oven program from 50 degrees to 380 degrees Celsius (122 degrees to 716 degrees Fahrenheit) is capable of testing the content of free and total glycerin in B100. A non-polar column phase is required. Calibration is achieved by the use of two internal standards (IS) and four reference compounds, namely 1,2,4-butanetriol (IS1) for glycerine, tricaprin (IS2) for mono, di and tri-glycerides, and glycerin, mono-olein, di-olein and tri-olein. Thermo Fisher Scientific's trademarked Trace GC Ultra provides successful determinations of free and total glycerin, either equipped with automatic on-column injector or with programmed temperature vaporizing (PTV) operated in simulated on-column mode.
 
 › Esters and linolenic methyl ester (EN 14103) The cetane number of biodiesel depends on the distribution of fatty acids in the original oil. An accurate characterization of fatty acid methyl esters (FAME) in biodiesel blends is essential for a more accurate calculation of the cetane index. This method requires a GC analysis with split/splitless or PTV injector and wax column for a detailed separation of FAME. The analysis provides verification that the esters content in B100 is greater than 96.5 percent by mass while also allowing the characterization of FAME composition. Calculation of the percentage of FAME is achieved with internal standard calibration.
 
 When FAME is analyzed, the use of PTV backflush option permits to vent the heavier fraction (triglycerides) out of the injection system, preventing wax column contamination and preserving the column performance for a longer period of time. This inlet option ensures easier injector maintenance, since the injector can be opened, leaving the carrier flowing into the column. Air is also prevented from flowing into the column.
 
 › Residual methanol (EN 14110) Monitoring residual methanol in B100 is a matter of safety since even small amounts of this material can reduce the flash point. Moreover, residual methanol can affect fuel pumps, seals and elastomer, and result in poor combustion properties. Regulations require a headspace GC method to be used in order to verify the content of residual methanol in B100. Either polar or non-polar columns are allowed.
 
 There are two options of GC systems. First, a dual GC system can be set up to comply with all of the three official methods for the analysis of glycerin, FAME and methanol. Two Trace GC Ultra units, one dedicated to EN 14105 and one running EN 14103 and EN 14110, along with a single autosampler serving both the GCs, can deliver tremendous productivity and significant costs savings.
 
 Secondly, based on the orthogonal separation principle, comprehensive multi-dimensional GC (GCxGC) increases separation power by more than a factor of 10 with respect to conventional GC, providing an effective solution to characterize biodiesel blends. The GCxGC approach provides triple information at once. It achieves petrodiesel compositional characterization determining the biodiesel percentage content in the blend and details the FAME composition delivering valuable information such as the type of oil used, the origin of the biodiesel and the cetane index, plus pour point evaluation. Quantitative results have been demonstrated to be reliable and highly repeatable.
 
 Infrared Spectroscopy

 Issues that arise during the analysis of biodiesel have a number of sources. For example, production facilities and terminal services need to ensure quality for such things as tranesterification and glycerol removal while testing labs and regulatory agents must ensure the labeled blend levels are present. The former are generally concerned with high FAME content materials (B100), while the latter may be exposed to a wide range of FAME content, from B2 and B20 to B100. IR has been shown to provide a rapid, precise and accurate tool for this analysis.
 
 By coupling a Fourier transform infrared spectrometer equipped with a standard potassium bromide beam splitter and a standard mid-infrared detector with an attenuated total reflection accessory, it is possible to collect the required data, with tremendous advantages.
 
 <center><img src="/images/upload/20070905095819.jpg">
 Figure 1. Calibration result for a 45 degree ARK ATR biodiesel blend.</center>
 
 <center><img src="/images/upload/20070905095826.jpg">
 Figure 2. Calibration result for a 60 degree ARK ATR biodiesel blend.</center>
 
 The ASTM method recommends partial least square (PLS) be used for the analysis of biodiesel. Essentially, PLS models the variation in sample and matrix, so a well-defined set of standards is required to cover the range of matrix effects. Figures 1 and 2 show that the process is very well modeled even with a low number of PLS factors. Prediction of a series of unknown samples when using the 60 degree zinc selenide plate gave answers within plus or minus 0.07 or better over the low range (45 degree plate), and plus or minus 0.1 or better over the high range.
 
 <center><img src="/images/upload/20070905095833.jpg">
 Figure 3. Calibration transfer through ACLS. The top PLS shows the original calibration (0) and the second bench predicted from it (+). The bottom result shows calibration after inoculation of the original method.</center>

 
 The key concern for testing labs is that the variability in petroleum diesels from region to region must be modeled for the analysis to be useful. Transfer of the calibration between spectrometers can be addressed with the augmented classical least squares (ACLS) algorithm developed by Sandia National Laboratories. Figure 3 shows data taken from two spectrometers, one being used to predict the other. A small offset is visible. The ACLS algorithm removes this offset cleanly. Thus, once a calibration is built on one spectrometer, methods can be transferred to another spectrometer by "inoculating" the method with data from the second unit, as is frequently done in Fourier transform near-infrared applications.
 
 The methods developed thus far have focused only on the FAME content, in keeping with the work being outlined by the ASTM D02 committee (ASTM Committee on Biodiesel Analysis by Fourier transform infrared (FT-IR) and attenuated total reflectance (ATR)). However, FT-IR can be used to analyze many other components, including free fatty acids or glycerol, with proper calibration. A generalized method could be developed given a proper set of standards.
 
 Inductively Coupled Plasma
 The elemental analysis of biodiesel and biodiesel blends has become increasingly important over the past decade due to the steady trend to promote low-sulfur and low-emission diesel fuels in the European Union and other parts of the world. The elemental analysis of the biodiesel feedstock and the final blend is essential to maintain quality standards within the EN 14214 regulations of maximum elemental content as well as reducing detrimental environmental effects.
 
 <center><img src="/images/upload/20070905095838.jpg">
 Table 1.</center>
 
 The maximum currently allowable concentrations for the various elemental impurities are easily achievable with biodiesel production methods and are set out in Table 1.
 
 ICP spectrometry has long been a cost-effective tool for rapid, multi-element analyses of a variety of liquids and materials, including organics. However, elemental analysis of biodiesel presents certain challenges to ICP instrumentation however, which must be met to produce credible results-not least of which is the volatility and plasma loading of diesel and biodiesel. Therefore, the instrument requires:
 

 › Good organic capabilities-preferably the ability to analyze undiluted biodiesel at ambient temperatures, reducing evaporation and dilution errors while increasing sensitivity
 › Robust, rapid response radio frequency generator to handle the high plasma loading from organic sample introduction
 › High resolution optics for peak separation
 › High saturation resistance for the detector to resist blooming due to high carbon and diatomic carbon emissions
 › Rapid, multi-element analysis enables high throughput.
 
 ICP can be used to meet all the above criteria. Since the standards are normally artificially prepared from organo-metallic stock standards and then matrix-matched as closely as possible, an internal standard is commonly used to overcome density, volatility and nebulization differences between the standards and the samples. For example, Yttrium can be added to each sample individually in the same quantity. Alternatively, the internal standards can also be automatically added on line using the Thermo Scientific iCAP 6000's multi-channel pump and the internal standard mixing kit.
 
 With the significant benefits of excellent sensitivity and multi-element capability, ICP is an ideal technique to analyze biodiesel and its precursors for all the required elemental analyses. In addition, simultaneous ICP allows other elements such as copper, silicon and zinc to be analyzed concurrently enabling a comprehensive, cost-effective elemental analysis.
 
 The definition of pure biodiesel along with physical and chemical property limits is established by official quality specifications with which the composition of pure biodiesel must comply either for its pure use or prior to blending with mineral diesel. A range of analytical tools can be applied for the analysis and quality control of biodiesel, including GC, IR and ICP.
 
 For more information, contact Thermo Fisher Scientific at <a href="mailto:analyze@thermofisher.com">analyze@thermofisher.com</a> or (800) 532-4752.
 

 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).

An Overview of Biodiesel Test Methods

Shortly after Minnesota mandated that all diesel fuel sold in the state contain 2 percent biodiesel blended with petroleum diesel, the weather turned cold and truckers and bus drivers began complaining that the biodiesel blend was clogging fuel filters. This resulted in the mandate being lifted for a total of 51 days. The Agricultural Utilization Research Institute (AURI) researched the problem and found that while biodiesel was not the only contributor to the clogging problem, it was indeed one of the contributors. Unfortunately for proponents of biodiesel, it appeared that it was the 2 percent biodiesel blended into the fuel mixture that received most of the blame for the problem.
 
 This example and others similar to it bring to light the importance of measuring free and total glycerin in biodiesel that is to be used as a motor fuel. ASTM D 6584 and EN 14105 methods both prescribe gas chromatography (GC) as the method for this analysis. For someone who has spent years working with GC, configuring a system to perform such an analysis may not seem like a daunting task. For novices at this technique, the array of letters such as PPC (programmable pressure control), POC (programmable on column) and FID (flame ionization detector) can be more than just mildly bewildering. Some of the latest technologies feature out-of-the-box preconfigured systems for performing a specific analysis like free and total glycerin in biodiesel. These systems provide a supply of consumables to analyze samples and often special training courses are available for the inexperienced chromatographer.
 
 Having a GC system come preconfigured is most helpful, but let's not forget that standards and samples also must be prepared for introduction into the GC. Fortunately, this operation is quite straightforward and can be performed by an operator with basic laboratory skills.
 
 For preparation of the standards, it is recommended to use a biodiesel calibration standards kit that contains reference solutions that meet the specifications called for in ASTM D 6584 and EN 14105. A set of calibration standards containing external and internal standards can be created using the kit, a pipette and the solvent heptane. The external samples will be used to build a calibration curve on the GC and the internal standards will be added to the sample itself. All external standards can be made up in autosampler vials. Sample preparation is stated in ASTM D 6584 and requires only a few steps. In a 10 milliliter (ml) septa vial, add 100 milligrams of biodiesel, 100 microliters (µl) of the internal standard, 100 µl of the derivitizing solution, shake and allow to react for 20 minutes. Dilute with eight ml of heptane and shake to mix. This solution is now ready for analysis and can be transferred to an autosampler vial. The five external standards and the samples to be analyzed can be loaded into the autosampler tray and the analysis begun.
 
 <center><img src="/images/upload/20070905100847.jpg">
 Figure 1. A chromatogram of B100 shows the peaks for free and bound glycerin.</center>
 
 The biodiesel sample will provide a chromatogram that will appear much like the one shown in Figure 1. Peak identification algorithms built into the system's software show that the free glycerin is a single peak that elutes in about 4.5 minutes. The bound glycerides elute later and appear as three separate families of peaks. It is a good idea to compare the chromatogram from your sample to that generated from the external standards to be sure that the peaks of interest are eluding at the proper time.

 
 At this point the software provided with the turnkey biodiesel GC system can become very helpful to identify the peak or peaks for each of these values and then calculate the concentration of each component based upon the intensity of the peak.
 
 Free glycerin is quite easy to calculate since the GC is actually measuring glycerin itself, and the value determined by the GC can be directly reported as the free glycerin. The peaks used for bound glycerin determinations are actually peaks for various glycerides (monoglyceride, diglyceride and triglyceride), which are glycerin with additional hydrocarbon chains attached. ASTM D 6584 provides the factors needed to convert the values for glycerides in the accepted values for glycerin. The software contains these factors and automatically performs the calculation. The software then takes one more step as it adds the free glycerin value to those values calculated for the bound glycerin and determines a total glycerin value. Figure 2 is an example of a report of the values for free and bound glycerin.
 
 <center><img src="/images/upload/20071031101429.jpg">
 Figure 2. A report generated from PerkinElmer's trademarked TotalChrom software shows the values for free glycerin (glycerin) and bound glycerin (total mono, total diglycerides and total triglycerides).</center>
 
 Laboratories interested in archiving their analyses or generating certificates of analysis will find that there are several new laboratory information management system products that serve this purpose very well. These biofuels-specific data handling packages can collect data from all instruments in the laboratory-either directly or indirectly-and can use those data to provide high-quality reports. As can be seen from the example of a report shown in Figure 3, complete data including the property, ASTM method (EN methods can also be entered), units, limit set by the method, and the standard range of the method can all be built into a report. The appropriate data from your laboratory can then be added alongside this information so that the reviewer will know at a glance how the sample results compare to the criteria set by the method.
 
 Conclusion
 Analyzing biodiesel for free and total glycerin in compliance with ASTM 6584 and EN 14105 methods is not a trivial undertaking. This task can be made much easier through the use of a turnkey GC biodiesel system that is preconfigured with all of the hardware and software needed to perform this analysis almost immediately upon installation. Ready-made standards can be commercially obtained which further reduces the complexity of the analysis. Once the analysis is performed, data from the GC, as well as data from other tests instruments, can be entered into the data handling software for data reporting and archiving.
 
 For more information on preconfigured turnkey systems and laboratory information management system solutions tailored for the biofuels industry, visit <a href="http://www.perkinelmer.com/biofuels" target="_blank">www.perkinelmer.com/biofuels</a>.

 
 Dave Armstrong has global leadership responsibilities for the strategic marketing, planning and execution for the Hydrocarbon Processing, Biofuels and Semiconductor businesses for PerkinElmer Life and Analytical Sciences. Reach him at <a href="mailto:david.armstrong@perkinelmer.com">david.armstrong@perkinelmer.com</a>. Tim Ruppel is the GC application specialist for PerkimElmer Life and Analytical Sciences.
 
 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).

Conducting Glycerin Analysis with a Turnkey Gas Chromatography System

The U.S. EPA mandated the production and use of less than 15 parts per million (ppm) sulfur fuel, or ultra-low sulfur diesel (ULSD), in on-highway vehicles beginning in June 2006. However, due to petroleum pipeline scheduling and terminal storage capacities, along with EPA delays of enforcement deadline periods, the past winter season (November 2006 through March 2007) was the first full winter in which the new ULSD fuel was utilized in most states.
 
 The following article describes various issues and problems reported from equipment users, pipeline terminals and suppliers/distributors of the new ULSD fuels in the United States. The incidents reported during the winter months of January and February 2007 represent only a small portion of the many encountered throughout the country with the fuels.
 
 In past winters much of the low- and high-sulfur diesel fuels were "blended" with light distillates (No. 1-D fuel oil or kerosene) in order to reduce the paraffin content and lower the cold flow operability temperatures. Unfortunately, many of the major oil refiners decided less than two years ago to not "desulfurize" the light distillate (kerosene) stream when the EPA mandate was implemented in June 2006. The decision was primarily made in order to preserve the availability of kerosene for substitution into the jet fuel pool during periods of jet fuel shortages. However, this refinery production decision had the result of causing a substantial reduction in the availability of light distillate blending material for the new ULSD fuel pools.
 
 This article addresses the operating problems with several field applications of the new ULSD fuels and makes recommendations to minimize the occurrence of these same issues in the next and future winter seasons. While the enclosed recommendations are not offered as the only possible solutions, they represent the latest answers currently available to the petroleum industry.
 

 ULSD Background
 The EPA mandated the production and use of ULSD fuels with less than 15 ppm of sulfur beginning June 1, 2006, for all on-highway diesel fuels in an effort to lower the emissions of greenhouse gases. While the law for on-highway ULSD fuels was issued several years ago and some petroleum refineries began producing ULSD fuels prior to the June 1, 2006, deadline, the past winter saw the first widespread utilization of these new fuels.
 
 The use of ULSD fuels in North America created significant winter operability problems, which varied from low power complaints to complete engine shutdown, as well as field storage tank filter plugging and fuel system delivery blockage.
 
 While substantial winter operational difficulties with the new ULSD fuels were encountered in numerous northern areas of the United States, some issues were also reported in areas below the 38th parallel.
 
 Fortunately, much of North America experienced unusually warm temperatures during the early part of the winter (November and December 2006). However, everything changed in late January and early February 2007. During this two-week period, many ULSD fuel users and suppliers experienced a great deal of operational problems with various diesel-powered equipment and diesel fuel supply systems. The situation was not unique to any one specific area of the United States.
 
 Many parts of North America encountered the lowest ambient temperatures in the past five years for a period of nearly two weeks while experiencing their initial winter implementation of ULSD.
 
 The new ULSD fuels have less than 15 ppm of sulfur (compared to the previous 500 ppm limit) as a result of the sulfur reduction process called hydrotreating that typically also raises the fuel cloud points. Unfortunately, we now know that severely hydrotreating a distillate fuel also usually significantly lowers the aromatic content of the fuel during production.
 
 Because the aromatic content is less in these ULSD fuels, the natural tendency of the paraffin content to remain in suspension when it changes to a solid wax at the cloud point temperature is dramatically reduced. The higher cloud points aggravate this problem.
 
 In other words, at ambient fuel temperatures below the fuel cloud point (the temperature at which the paraffin changes from a liquid to a solid wax) the wax crystals tend to precipitate faster and accumulate in the bottom of the vessel (i.e., the vehicle tank or diesel storage tank).

 
 This wax-settling phenomenon results in the solid wax (paraffin) crystals being drawn into the fuel filter of a storage tank pump or vehicle fuel filter as soon as the pump system is activated. Since the fuel filters typically filter to 10 microns, this solid wax material will not go through the fuel filter elements.
 
 Additionally, the paraffin content in a diesel fuel tends to bond with any moisture (water) in the diesel fuel. Past years' higher diesel fuel aromatic content impedes this bonding tendency. However, with the lower aromatic content in the new ULSD fuels, this natural protection is gone. Therefore, any fuel system that has moisture present will have increased fuel-fouling problems. However, it is impossible to know how many of the fuel-related problems experienced this winter involved moisture and paraffin wax. We do know samples pulled from two Fort Wayne, Ind.-area ULSD fuel storage tanks on Feb. 8, 2007, did not contain water. The waxy deposits in this plugged fuel filter were laboratory tested for pour point. The result was 62 degrees Fahrenheit, which indicates the deposit material plugging the filter is paraffin.
 
 Field Complaints with ULSD Fuel
 Although the petroleum refineries predicted two years ago that the new ULSD fuels would have higher cloud points, no one (to our knowledge) projected lower aromatic contents. There were also no forecasts that the new ULSD fuels would have such a negative affect on the paraffin content that would result in wax settling operational problems during sub-zero temperatures. Equally as unfortunate is the fact that (based on our extensive testing) there is no technology available or produced in the United States today that would have absolutely prevented the settling of the paraffin/wax content in high cloud point diesel fuels at ambient temperatures below 0 degrees Fahrenheit.
 
 In our opinion, using high cloud point temperature fuels because of the British thermal unit (Btu) content supplied by the paraffin content is not the best idea during cold weather operations because of the filter fouling potential from the paraffin wax. Unfortunately, reducing the paraffin content to the lowest possible level during cold weather will reduce fuel economy and increase fuel usage because the paraffin content supplies a majority of the Btu content in a diesel fuel.
 
 Fleet Operational Problems with ULSD Fuels and Biodiesel
 Many diesel fleet operators (school systems, trucking companies and fuel delivery organizations) experienced operating problems with ULSD fuels during January and February 2007. Some of these were situations where only diesel fuel was being used and some were where a biodiesel blend was being used. However, based on photographic evidence of both types of fuels and the related operational issues, we conclude that the blending of biodiesel did not have a significant affect on the cold weather operational problems with ULSD fuels this winter.
 
 <center><img src="/images/upload/20070905101924.jpg"></center>
 

 The photos above show settled paraffin wax in a B20 ULSD fuel storage tank sample and three other available No. 2-D ULSD fuels taken from different Fort Wayne, Ind.-area fuel suppliers after these diesel fuel samples were maintained in a freezer at 0 degrees Fahrenheit for 24 hours. Each of these fuel suppliers reported operational problems in fleets using their diesel fuels. Based on the test data and laboratory photos, it is unlikely that changing the fuel suppliers or eliminating the biodiesel blend would have had any effect on the operational issues experienced during the time period.
 
 Other Operational Problems with ULSD
 Some of the operational problems with ULSD fuels experienced during this past winter were vehicle-related, not fuel-related.
 
 › Type of engines For example, one Indiana school system reported that they had no problems with their International buses, but most of the Cummins buses had some operational issues. We received reports from other companies where their Detroit Diesel engines operated just fine, but Caterpillars were experiencing fuel filter fouling.
 
 › Equipment malfunctions We also were advised that some of the operational problems were the result of batteries, electrical components, starter motors and unit heating problems although most of the attention was directed to the fuel issues.
 
 › Vehicle idling Additionally, we understand that some transportation fleets that idled their units overnight during temperatures below 0 degrees Fahrenheit operated adequately. However, those that did not idle engines had starting and some fuel-related problems. While this may seem to be an answer, this approach will increase fuel consumption and wear while reducing fuel economy.

 
 › Kerosene blending Another report indicated that some fleets that diluted their ULSD fuels (and biodiesel fuel blends) with 30 percent kerosene during the colder temperatures did not have any operational problems. However, still other fleets blended as much as 40 percent kerosene in No. 2-D ULSD fuels only (without biodiesel) and still experienced some problems. We also received reports from fleet operators who did dilute with kerosene and still experienced severe fuel filter plugging after weekend shut downs. At the same time, we had reports (in Indiana, Michigan, Ohio and Illinois) from diesel equipment operators that "…did not do anything special or different…" and they had no significant vehicle operating problems.
 
 › High cloud points In all problematic fuels, high cloud points (with reduced aromatic contents) appear to be the major culprit causing operational issues. Differences in the specific vehicles using these fuels compounded the operational issues.
 
 ULSD Problem Fuels Data and Conclusions
 The ULSD fuel samples we received and laboratory tested from various Midwest area major and independent fuel suppliers who reported fuel-related problems (operational difficulties) during the winter of 2006-'07 showed cloud point temperatures above 3 degrees Fahrenheit.
 
 The majority of the ULSD fuels we tested where little or no difficulties were encountered showed fuel cloud point temperatures below 2.9 degrees Fahrenheit.
 
 We believe that given what was previously known (except for the moisture issues and lower aromatic content issues noted herein) most diesel equipment operators did exactly what should have been done to protect their fleet operations with the technology available in the United States. However, much more will need to be done before the coming 2007-'08 winter to avoid issues.
 

 The main underlying factors affecting the operation of diesel equipment this past winter is the amount of paraffin in the ULSD fuels (causing very high fuel cloud point temperatures) and the lower aromatic content in the ULSD fuels. The EPA mandated the U.S. petroleum industry to remove the excess sulfur from diesel fuels and that has caused the fuel cloud point temperatures to rise significantly and the aromatic content to be lowered.
 
 While the petroleum industry could change the high cloud point situation next winter, it will be a costly change for them to implement. Such a change will likely result in lower fuel economy for a fleet because of lower Btu contents.
 
 Correcting the aromatic content is a much more difficult issue to address because the EPA desires an even lower aromatic content for all future distillate fuels. There may be no cost effective technological "fix" for this issue. Only time will tell.
 
 Future Recommendations
 Today's diesel equipment was not designed to work properly at sub-zero Fahrenheit ambient temperatures when diesel fuels with very high cloud points and lowered aromatics are utilized. Accordingly, with the new knowledge and experience we now have and in order to minimize operational issues in future winters, the following steps are recommended:
 
 1) Make certain there is no water in the diesel fuel storage tanks and vehicle saddle tanks before Dec. 1.
 2) Add 1 pint of isopropyl alcohol or glycol ether to each vehicle tank Dec. 1 and Jan. 1 to minimize moisture freeze-ups in fuel delivery systems.
 3) Specify a maximum ULSD fuel cloud point temperature of 3 degrees Fahrenheit or applicable ASTM D 975 specification during November and March.
 4) Specify a maximum ULSD fuel cloud point temperature of 0 degrees Fahrenheit or applicable ASTM D 975 specification for December, January and February.
 5) Prior to next winter, laboratory test (in various ULSD fuels) available cold weather operability chemical additives that claim to minimize fuel filter fouling and utilize the best product(s) tested for the ULSD fuels tested.
 6) Prior to next winter, laboratory test (in various ULSD fuels) available cold weather operability chemical additives that claim to minimize paraffin wax settling at ambient temperatures below the fuel cloud point and utilize the best additive products tested.
 7) Use fuel heaters and fuel-warming equipment. Some equipment suppliers and diesel fleet operators have suggested that the diesel fuel should be "kept heated" at all times during the winter in order to counteract the high cloud points in ULSD fuels. 

 
 Unfortunately, while this approach may minimize some of the operating problems with a high fuel cloud point issue, heating the diesel fuel will negatively affect the diesel fuel stability. As the diesel fuel becomes unstable, it will create oxidation particulate materials that will deposit on the fuel filter elements and plug the fuel filter prematurely, causing a need for fuel filter replacement.
 
 Additionally, because of today's higher fuel injection pressures in the newer diesel engines and the increased fuel flow requirements through the injectors (to keep them cool), today's diesel fuels are already being subjected to excessive heating and cooling cycles during operation. These constant heating and cooling cycles within the vehicle fuel tanks increase oxygenation of the fuel and increase degradation of the fuel from thermal oxidation, resulting in fuel instability.
 
 This is particularly true with the new ULSD fuels because some of the natural oxidation inhibitors in a diesel fuel are removed as a result of the hydrotreating process used at refineries to remove the sulfur content. The refineries also don't currently add stabilizer additives to ULSD fuels in order to replenish the natural inhibitors that are removed.
 
 Therefore, if fuel tank heaters (or in-filter heaters) are used, the new ULSD fuels used may need to be treated on a continual basis with a strong dose of anti-oxidation (inhibitor) additive in order to prevent premature filter plugging and increased fuel filter use from "black fuel" conditions.
 
 Summary
 As indicated previously there is no technology available (to our knowledge) in America today that will prevent the heavy paraffin wax crystals in the new ULSD fuels (and low aromatic ULSD fuels) from settling out of high cloud point ULSD fuels at ambient temperatures below 0 degrees Fahrenheit.
 
 Amalgamated Inc. is continuing to investigate the wax precipitation, aromatic, stability and related issues associated with the new ULSD fuels in the United States. We will search new technologies through all available contacts around the world and in the United States in an effort to find solutions that provide appropriate answers.
 
 Gary Pipenger is the president of Amalgamated Inc. Reach him at (260) 489-2549. For more information, visit <a href="http://www.amalgamatedinc.com" target="_blank">www.amalgamatedinc.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).

Assessing the ULSD Operational Issues of the Winter of 2006

It is well-known that the renewable fuel standard (RFS) adopted as part of the Energy Policy Act of 2005 requires that motor-vehicle fuel in the lower 48 states contain specific volumes of renewable fuel for each calendar year, beginning with 4 billion gallons of renewable fuel in 2006 and ratcheting up to 7.5 billion gallons by 2012. What is not generally understood, however, is how compliance with the standard will be measured. While projections are that renewable fuel volumes will easily exceed the RFS, compliance under the standard is nonetheless important. Under the compliance program, which was announced by the U.S. EPA in May and went into effect Sept. 1, any party, including refiners, blenders and importers, that produces or imports gasoline for U.S. consumption, will be subject to a "renewable volume obligation," the purpose of which is to measure the amount of renewable fuel making its way into motor-vehicle fuel sold or introduced into U.S. commerce, and to ensure that it meets the RFS.
 
 How Will Compliance Be Gauged?
 Under the EPA's RFS program, every gallon of renewable fuel produced or imported into the United States will be assigned a renewable identification number (RIN). RINs are intended to represent proxies for the amount of renewable fuels actually blended into gasoline or otherwise used as a motor vehicle fuel. Each year, obligated parties-refiners, blenders and importers-must acquire sufficient RINs to demonstrate compliance with their volume obligation.
 
 The EPA is confident that once renewable fuels are imported or produced, the fuel is in fact blended with gasoline, or in the case of biodiesel, consumed as a motor-vehicle fuel because renewable fuels aren't used for food, chemicals or feedstocks for other production processes. For instance, ethanol produced for motor-vehicle fuel is denatured specifically for fuel use. With biodiesel, the EPA found that it is only really produced as a motor-vehicle fuel since it is not used in appreciable quantities in anything else. Thus, RINs represent proof of production and proof of consumption. For instance, the EPA found that measuring at the point of production versus at the point of blending provides a more accurate, and more importantly, a more easily verifiable tracking system. This is due in large part to the fact that there are far fewer ethanol and biodiesel producers in the United States (approximately 100 ethanol and 85 biodiesel producers, by the EPA's count), compared with the number of U.S. blenders (approximately 1,200). While exports of renewable fuels represent a potential flaw in using production as a surrogate for blending, since that fuel obviously won't be used in U.S. markets, the EPA's compliance program has created a mechanism that essentially subtracts the amount of exported renewable fuel to ensure accuracy of reporting.
 
 RIN Trading
 One unique problem the EPA encountered in developing a compliance program that measures renewable-fuel production rather than actual motor vehicle use is the fact that refiners and blenders-the parties obligated to show compliance with the RFS-generally don't also produce or blend the renewable fuels at their facilities. Thus, the obligated parties are dependent on others for showing compliance. To address this situation, the EPA's RFS program requires RINs to be transferred with the renewable fuel to which it was assigned until the point at which the fuel comes into the possession of an obligated party. According to the EPA, this approach allows RINs to be incorporated into the current market structure for renewable fuel, and avoids the necessity of requiring refiners and blenders to develop and rely on new markets in order to comply with the program.
 

 More detailed information on the RFS program can be found on the EPA's Web site, <a href="http://www.epa.gov" target="_blank">www.epa.gov</a>. The National Biodiesel Board recently published two fact sheets that provide a general overview of the program and compliance requirements.
 
 Todd J. Guerrero is a partner in 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) 371-3258.
 
 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.

Renewable Identification Numbers Under the RFS

Argentina's oil crushing industry is the most efficient in the world. It has a crushing capacity of 160,000 metric tons per day and exports over 90 percent of its production. Thanks to that, the country's biodiesel industry is beginning to take off.
 
 In the next few months, two plants, owned by Renova and Ecofuel and each capable of producing 200,000 metric tons, will be inaugurated. Other facilities, including those being built by Unitec Bio, Molinos Rio de la Plata, Louis Dreyfus, Patagonia Bioenergia, Explora and GEA Biodiesel, will come on line within the next year, bringing the country's annual installed biodiesel capacity to 1.7 million metric tons. By 2010, annual capacity is expected to exceed 2.2 million metric tons, which will position Argentina among the world's main biodiesel producers and exporters.
 
 Argentina's biodiesel export industry enjoys a favorable exporting rights regime in relation to vegetable oil. It's also expected to begin to build up to feed the domestic market. Law No. 26,093 requires that by 2010 diesel and gasoline sold within the country must use 5 percent biodiesel and ethanol, respectively. The market will then demand 690,000 metric tons of biodiesel per year and 208,000 metric tons of ethanol per year.

 
 In 2006, domestic fuel demand in Argentina was 12.9 million cubic meters (3.4 billion gallons) of diesel, 4.3 million cubic meters (1.1 billion gallons) of gasoline and 3,100 million cubic meters of compressed natural gas (CNG). It's estimated that by 2010 domestic demand will increase to 15.68 million cubic meters (4.1 billion gallons) of diesel oil and 5.23 million cubic meters (1.4 billion gallons) of gasoline. Petroleum refineries are already operating of their full installed capacity, producing a diesel deficit and a gasoline surplus. The diesel shortage will increase by 2010, while there will still be an excess in gasoline.
 
 At the beginning of the 1990s, the majority of existing cars shifted to diesel consumption, thanks to a better fiscal treatment of that fuel. Later, the consumption of CNG increased significantly, which additionally lowered gasoline consumption. However, in the past two years, a natural gas shortage affected CNG supply, and the tendency in consumers' preference is changing. Fuel prices in the Argentine market are very depressed due to a policy of the administration. With all taxes included-which reach approximately 64 percent for diesel and 92.5 percent for gasoline over price without taxes-an Argentine consumer in Buenos Aires pays US$1.86 per gallon for diesel and US$2.42 per gallon for gasoline.
 
 Those prices are held up by US$40 per barrel crude oil, which is a product of export restrictions (petroleum companies must first secure the internal market supply) and the validity of a shifting export's deduction regime, which is set according to the price of West Texas Intermediate crude oil (currently 31.03 percent).
 
 The energy crisis Argentina faces today represents an opportunity to create awareness in the current and next administration. If it doesn't increase energy production, constant economic growth won't be sustained in the years to come. Within this context, an Argentine biofuels industry is rising, which could be one among other additional solutions.
 
 In the medium-term, Law No. 26,093 could be reformed in order to facilitate a better planning horizon for investments and thus favor biofuels in the domestic market.
 
 If the next administration sends clear signs that biofuels policy will be a state policy, there will be an investment boom in the sector.
 
 Claudio A. Molina is the executive director of the Argentine Association of Biofuels and Hydrogen. Reach him at <a href="mailto:claudiomolina@fibertel.com.ar">claudiomolina@fibertel.com.ar</a>.

Biodiesel Industry Takes Off in Argentina

Posted Sept. 11, 2007, at 8:41 a.m. CDT

 
 A new non-for-profit trade association dedicated to promoting the increased use and production of biodiesel in California has been launched. Known as the <a href="http://www.californiabiodieselalliance.org" target="_blank">California Biodiesel Alliance</a> (CBA), it is an association of biodiesel feedstock suppliers, producers, fuel marketers and distributors, technology providers, fuel retailers, consumers, and advocates. The CBA aims to aid in the development of biodiesel production, education and representing the industry at the state capitol.
 
 "We're inviting industry and members of the public to join us in unleashing the power of biodiesel market here in California," CBA Chair Eric M. Bowen said. "We believe that by working together we can prove that biodiesel has a significant role to play in improving California's air quality, decreasing greenhouse gas emissions and reducing the state's dependence on foreign oil."
 
 Membership forms for the CBA are available at <a href="http://www.californiabiodieselalliance.org" target="_blank">www.californiabiodieselalliance.org</a>.

California Biodiesel Alliance launched

Posted Sept. 13, 2007, at 1:11 p.m. CDT
 
 <a href="http://www.nga.org" target="_blank">National Governors Association</a> (NGA) Executive Chairman Gov. Tim Pawlenty, R-Minn., and Gov. Kathleen Sebelius, D-Kan., announced the NGA's Securing a Clean Energy Future initiative Wednesday, signaling the group's commitment to promoting clean energy policies at the state level.

 
 "Our nation has enjoyed more than a hundred years of inexpensive energy, seemingly inexhaustible oil and a relatively forgiving environment," Pawlenty said in an NGA news release. "But America can no longer rely on business-as-usual to meet its energy needs, and the nation's governors are prepared to lead the way in crafting a sensible, sustainable clean energy future."
 
 The initiative will promote state policies that affect changes in energy use by stressing efficiency and conservation, promote biofuels as an alternative to petroleum products, take reasonable steps to reduce greenhouse gas emissions and aid the research and development communities working on clean energy technologies.
 
 U.S. DOE Secretary Samuel W. Bodman joined Pawlenty and Sebelius in announcing $610,000 in support of NGA's work, investing $550,000 in the Securing a Clean Energy Future initiative and $60,000 to support NGA's efforts to increase energy assurance.
 
 Members of the Securing a Clean Energy Future task force include Pawlenty and Sebelius as co-chairs along with Connecticut Gov. M. Jodi Rell, Florida Gov. Charlie Crist, Hawaii Gov. Linda Lingle, Montana Gov. Brian Schweitzer, Pennsylvania Gov. Edward G. Rendell and Washington Gov. Chris Gregoire.
 
 More information on the Securing a Clean Energy Future initiative can be found at <a href="http://www.nga.org/ci" target="_blank">www.nga.org/ci</a>.

NGA launches clean energy initiative

Posted Sept. 14, 2007, at 12:23 p.m. CDT
 
 Representatives of the <a href="http://regfuel.com/" target="_blank">Renewable Energy Group Inc.</a> (REG), <a href="http://www.wdbiodiesel.net/" target="_blank">Western Dubuque Biodiesel LLC</a> (WDB) and public officials were in Farley, Iowa, Wednesday to cut the ribbon signaling the beginning of production at the 30 MMgy WDB plant, the sixth plant in REG's network of biodiesel facilities. REG's network now has the capacity to produce 162 MMgy.

 
 "REG is proud to partner with WDB in the construction and plant management of this facility," REG President Nile Ramsbottom said. "We are now marketing biodiesel from this facility and look forward to continuing to work together to create economic development right here in eastern Iowa."

REG and Western Dubuque Biodiesel celebrate plant opening

Posted Sept. 14, 2007, at 12:28 p.m. CDT
 
 A policy and technology briefing titled "Can Biodiesel and Renewable Diesel Co-Exist" is slated for Oct. 15 in Washington, D.C.
 
 On the agenda for the briefing are updates on federal legislation initiatives by Tara Billingsley and Dr. Kathryn Clay, both professional staff members of the United States Senate Committee on Energy & Natural Resources. Also on the docket is an industry insider roundtable discussion titled "Can Biodiesel and Renewable Diesel Co-Exist in the Fast-Evolving Biofuels Marketplace?"
 
 More information about the conference can be found at <a href="http://www.hartenergyconferences.com/index.php?area=details&confID=37" target="_blank">www.hartenergyconferences.com/index.php?area=details&confID=37</a>.

Biodiesel and renewable diesel policy and technology briefing scheduled

Posted Sept. 17, 2007, at 1:20 p.m. CDT
 

 Norwegian oil and gas company Statoil and Brazilian oil company Petrobras signed a memorandum of understanding that brings the companies together to study business development opportunities in Brazil and internationally. Statoil CEO Helge Lund and Petrobras CEO Jose Sergio Gabrielli de Azevedo signed the agreement in Oslo, Norway, Sept. 14.
 
 According to a Petrobras news release, the agreement will include biofuels production and development with a focus on research and development in cellulosic ethanol and biodiesel production.
 
 The companies already have several partnership agreements governing exploration and production in Brazil, Angola, Nigeria and the Gulf of Mexico. The partners are also joined in a technology partnership involving drilling, exploration and undersea operations.

Statoil and Petrobras sign long-term deal

Posted Sept. 17, 2007, at 1:42 p.m. CDT
 
 <a href="http://www.dtn.com" target="_blank">DTN</a> announced this morning the introduction of DTN Portal Solutions, a set of Web site components designed to integrate into fuel suppliers' existing Web sites. DTN Portal Solutions will deliver company, product and marketing information to customer sites with continual updates.
 
 According to a DTN news release, options available for integration into existing business Web sites include:
 
 Online Message Center Provides business partners online access to all business documents to reduce disputes and improve customer service. A 90-day archive is available and materials can be viewed, printed or downloaded as needed.

 
 Allocation Viewer DTN TABS users can provide customers on-demand access to product allocation status. Each buyer receives detailed volume information for allocations directly assigned to them and availability status for unbranded rack channel of trade level allocations.
 
 Terminal Supply Viewer Imparts product availability status at terminals. Defines products at each terminal and sets product availability status such as available, limited and out. Also provides details on expected re-supply dates.
 
 Private Transaction Center Experience significant differentiation from other peer suppliers and keeps customers coming back with efficient online order reservation.
 
 DTN Web Hosting For organizations who need to get a complete Web site up and running without a large and costly IT project - DTN Web Hosting solutions offer a powerful "admin tool" to help even non-technical users quickly and easily add content.
 

 More information about DTN Portal solutions can be found at <a href="http://www.dtn.com" target="_blank">www.dtn.com</a>.

DTN launches Web application

Posted Sept. 17, 2007, at 3:06 p.m. CDT
 
 Canadian Renewable Fuels Association (CRFA) Executive Director Kory Teneycke will be leaving the CRFA to take on a new role with the Conservative government in Ottawa, Ontario, according to the association. Teneycke will remain with the CRFA through late October and assume his new role as director of the Conservation Resource Group Nov. 1.
 
 "Kory was a big part of several milestone achievements for biofuels in Canada," CRFA Chairman Bliss Baker said. "Kory's insight, political judgment and incredible dedication were an invaluable asset for the industry. He will be missed."
 
 Bliss said Teneycke's replacement would be named shortly after his departure.

Canadian RFA executive director to step down

Posted Sept. 18, 2007, at 1:03 p.m. CDT
 
 Registration for the <a href="http://www.crfs2007.com" target="_blank">Canadian Renewable Fuels Summit</a> is now open. The Canadian Renewable Fuels Association (CRFA)-sponsored event will be held Dec. 2-4 in Quebec City, Quebec.

 
 According to a CRFA release, the event "will bring together a diverse and influential group of approximately 800 professionals from throughout North America whose common goal is to promote and discuss the production and utilization of renewable fuels." Speakers include members of government, financiers, consultants and industry leaders.
 
 For more information or to register, visit the <a href="http://www.crfs2007.com" target="_blank">CRFS Web site</a>.

Registration open for CRFS

Posted Sept. 18, 2007, at 1:04 p.m. CDT
 
 San Mateo County, Calif.-based Allied Waste will roll out its new green initiative Thursday with the announcement of a major change: Its entire 225-truck fleet will switch to locally sourced biodiesel. The move is expected to replace 80,000 gallons of petroleum diesel to B20 on a monthly basis.
 
 State and local officials will join Allied Waste officials to send off the company's first dozen biodiesel-powered waste and recycling trucks Thursday in San Carlos, Calif.

California's Allied Waste converts entire fleet to biodiesel

Posted Sept. 18, 2007, at 1:39 p.m. CDT
 
 Utah-based <a href="http://betterbiodiesel.com" target="_blank">Better Biodiesel Inc.</a> CEO Ron Crafts will appear on this Thursday's episode of <a href="http://www.history.com/minisites/boneyard" target="_blank">Boneyard</a>, a series on the <a href="http://www.history.com" target="_blank">History Channel</a>. The episode will feature biowaste.

 
 The episode will air Sept. 20 at 9 p.m. EDT on the <a href="http://www.history.com" target="_blank">History Channel</a> and will re-air at 1 a.m. EDT on Friday, Sept. 21.

Better Biodiesel CEO to be featured on History Channel

Posted Sept. 18, 2007, at 2:03 p.m. CDT
 
 <a href="http://www.stoel.com" target="_blank">Stoel Rives</a>, an Oregon-based law firm, has added John M. Eustermann as a principal in its Boise, Idaho, office, bringing the firm's Renewable Energy Team to more than 90 menbers.
 
 Eustermann brings more than 10 years of transaction experience to Stoel Rives including five years focused primarily on the renewable energy and biofuels sector. He received a J.D. from the University of Puget Sound Law School and an M.B.A. and B.A. from the University of Notre Dame. Prior to joining Stoel Rives, Eustermann practiced with the Boise office of Holland & Hart LLP.
 
 "I am thrilled to be joining Stoel Rives," Eustermann said. "Stoel Rives has been long recognized as the 'go to' law firm in the renewable energy industry for its strategic counseling, project management and financing capabilities.
 
 More than 350 attorneys work for Stoel Rives in 11 offices spread across seven states.

793-1294329800.jpg

Stoel Rives expands Renewable Energy Team

Posted Sept. 25, 2007, at 10:00 a.m. CDT

 
 U.S. Secretary of Agriculture Mike Johanns resigned his office Sept. 19 so that he can put his efforts into running for U.S. Senate from Nebraska. Johanns sent a letter of resignation to President George W. Bush Sept. 19, effective immediately. Deputy Secretary Chuck Connor will step in as acting secretary.
 
 In his resignation letter, Johanns expressed his confidence in Connor as he heads the department. At the time of Johanns' resignation, the 2007 farm bill was not yet finalized and Connor will take over where Johanns left off.
 
 The full text of Johanns' letter follows:
 
 Dear Mr. President,
 
 It has been a great honor to serve you and the American people as Secretary of Agriculture for nearly three years. After careful thought and difficult deliberation, I am writing to inform you that I have decided to pursue a new opportunity to serve this great Nation. Please accept my resignation effective today, September 19, 2007 and my gratitude for the distinct privilege to serve in your Cabinet.
 
 Under your leadership and vision, American agriculture is stronger than ever before in history. Your presidency has had a profoundly positive impact on the lives of Americans in both rural and urban communities.
 
 Farm equity, now at $2 trillion, has increased $200 billion per year for the past several years. The debt-to-asset ratio is the lowest in more than 45 years. Projected 2007 net cash income is a record high $86 billion. The average farm household income is projected at $81,500 this year, nearly $20,000 above the average household income in the U.S. Overall farm balance sheets reveal a strong and growing farm economy. 
 
 Agricultural exports are expected to set a fourth consecutive record this year, with a projected value of $79 billion. The strong stance you've taken with international leaders in relation to beef trade has led to the re-opening of more than 40 key markets to U.S. beef. This year, U.S. beef exports have increased 18 percent over last year and negotiations are underway to achieve additional market openings.
 

 Your compassion toward the hungry is evidenced in the 70 percent increase in funding for USDA nutrition programs during your presidency. One million additional school children are being served lunch under our program; 700,000 women, infants and children have been added to the WIC program; and nine million additional low-income Americans are participating in the Food Stamp Program. One in five Americans is now touched by the nutrition safety net you have built.
 
 Because of your ambitious conservation goals, for the first time in living memory, America is gaining wetlands instead of losing them. Overall, you have more than doubled the number of acres enrolled in USDA conservation programs, now totaling a remarkable 184 million acres. 
 
 I also want to thank you for your direction related to the 2007 farm bill. Your suggestion to talk to as many farmers, ranchers and stakeholders as possible in developing the Administration's 2007 farm bill proposal proved very wise. As you know, their comments formed the foundation of our proposals, which focus our programs while providing unwavering commitment to U.S. agriculture. Nearly 200 newspaper editorials nationwide have applauded the Administration's vision. Several of our ideas are now part of the House-passed farm bill and my hope is that even will be adopted by the Senate.
 
 I can assure you that I leave the farm bill finalization in supremely capable hands. Deputy Secretary Chuck Conner has been intimately involved in the deliberations - from the development of our proposals to his attendance at virtually every hearing during the House mark-up. Few people are as knowledgeable and insightful about farm bill policy. He is supported by some of the most dedicated civil servants in the federal government.
 
 Mr. President, you should be very proud of the men and women of the U.S. Department of Agriculture. A cornerstone of your leadership is recognizing that people are our greatest resource. You have a gold mine at USDA. It has been my honor to work alongside them.
 
 On a very personal note, I'd like to express my deepest gratitude for your confidence and support. For a farm boy from Iowa, this truly has been an opportunity of a lifetime. As I have often noted, I never dreamed of becoming Secretary of Agriculture as a child because it seemed so far removed from our 160-acre farm. I hope young people growing-up on farms and in rural communities today realize that no dream is too big in America.
 
 Sincerely,
 Mike Johanns

Agriculture Secretary steps down

Posted Sept. 26, 2007, at 1:07 p.m. CDT
 

 With 256.5 MMgy of current production capacity and another 95 MMgy under construction, Iowa leads the way in domestic biodiesel production with 351.5 MMgy of capacity. Texas and Illinois round out the top three with 265 MMgy and 199 MMgy of capacity, respectively.
 
 According to statistics provided by BBI International, Texas (113), Illinois (105) and Nevada (105) all have more than 100 MMgy of capacity in construction as of the third quarter of 2007.
 
 Rounding out the top ten biodiesel producers are Alabama (155 MMgy), New Jersey (134 MMgy), Indiana (130 MMgy), Washington (116 MMgy), Nevada (109 MMgy), Missouri (107 MMgy) and North Dakota (93 MMgy).
 
 Total Biodiesel Production, Fall 2007
 (State, MMgy in production, MMgy under construction/expansion, MMgy total)
 1. Iowa, 256.5, 95, 351.5
 2. Texas, 152, 113, 265
 3. Illinois, 94, 105, 199
 4. Alabama, 95, 60, 155
 5. New Jersey, 74, 60, 134
 6. Indiana, 90, 40, 130
 7. Washington, 116, 0, 116
 8. Nevada, 4, 105, 109

 9. Missouri, 76, 31, 107
 10. North Dakota, 85, 8, 93
 11. Wisconsin, 25, 53, 78
 12. Georgia, 37.5, 36, 73.5
 13. Tennessee, 69, 3, 72
 14. Arkansas, 27, 43, 70
 15. Minnesota, 63, 4, 67
 16. Kentucky, 7, 50, 57
 17. Pennsylvania, 11.6, 45, 56.6
 18. Nebraska, 5, 50, 55
 19. Mississippi, 28, 27, 55
 20. California, 46.5, 3, 49.5
 21. Ohio, 38, 6, 44
 22. Florida, 38, 3, 41
 23. Michigan, 35, 0, 35
 24. Colorado, 29, 0, 29
 25. Oklahoma, 22, 0, 22

 26. Virginia, 17, 0, 17
 27. Louisiana, 15, 0, 15
 28. Ontario (Canada), 15, 0, 15
 29. New Mexico, 0, 15, 15
 30. Idaho, 12, 0, 12
 31. North Carolina, 10, 1, 11
 32. South Carolina, 11, 0, 11
 33. Quebec (Canada), 9, 0, 9
 34. New York, 2.4, 5, 7.4
 35. South Dakota, 7, 0, 7
 36. Delaware, 5, 0, 5
 37. Maryland, 0, 5, 5
 38. Vermont, 4, 0, 4
 39. West Virginia, 0, 3, 3
 40. Utah, 3, 0, 3
 41. Rhode Island, 1.2, 0, 1.2
 42. Hawaii, 1, 0, 1

 43. Oregon, 1, 0, 1
 44. Manitoba (Canada), 0, 1, 1

Iowa, Texas top biodiesel producers

Posted Sept. 26, 2007, at 1:41 p.m. CDT
 
 A week after Kory Teneycke resigned as its executive director to assume a political position in Canada's Conservative government, the Canadian Renewable Fuels Association (CRFA) named Gordon Quaiattini as its president. Although Quaiattini's title is different than Teneycke's, CRFA Chairman Bliss Baker confirmed that Quaiattini will replace Teneycke.
 
 The CRFA did not confirm a start date for Quaiattini and had announced earlier that Teneycke plans to leave at the end of October.

CRFA names new president

Posted Sept. 27, 2007, at 9:38 a.m. CDT
 
 Biodiesel production equipment manufacturer <a href="http://www.greenlineindustries.com" target="_blank">Greenline Industries</a> has announced the appointment of John Kinney as its CEO. Kinney comes to Greenline with experience as a venture capitalist with Bessemer Venture Partners and as a consultant with Bain and Company. He has also served as CEO of two companies on the Inc 500 list.
 
 Kinney holds a BA in human biology, a masters in industrial engineering and an MBA from Stanford University.

Kinney named CEO of Greenline Industries

Posted Oct. 1, 2007, at 7:59 a.m. CDT

 
 <a href="http://www.conocophillips.com" target="_blank">ConocoPhillips</a> and <a href="http://www.admworld.com" target="_blank">Archer Daniels Midland Co.</a> (ADM) announced late last week that they have come to an agreement to develop renewable transportation fuels from biomass. The joint venture between the major oil company and the nation's second-largest ethanol producer will focus on the production and refining of biocrude, a non-fossil substance that can be processed into fuel much like crude oil.
 
 According to an ADM press release, the two companies will work to commercialize two biomass processes that will convert cellulosic materials into a product that can be used as transportation fuel. The result would be the conversion of crop residue, wood residue and energy crops such as switchgrass into biocrude and then refine that biocrude into a useable product.

ConocoPhillips and ADM announce joint venture

News release posted Oct. 1, 2007, at 1:50 p.m. CDT
 
 D1 Oils plc, the UK-based global producer of biodiesel, has signed an agreement with Keygene NV of the Netherlands, one of the global leaders in the science of genetic fingerprinting, to pursue molecular genetics research in Jatropha curcas. Jatropha is an oilseed tree that grows in tropical and sub-tropical regions and produces high yields of inedible vegetable oil that can be refined into high-quality biodiesel. The two year agreement provides D1 with exclusive rights on applied contract research and molecular services carried out by KeyGene on Jatropha. 
 
 KeyGene's genetic fingerprinting technology enables the identification of different Jatropha cultivars through genetic markers similar to commercial bar codes. The technology has the potential to increase significantly the efficiency of D1's breeding programme to develop high-yielding Jatropha cultivars. D1 will act as the exclusive supplier of selected, high-yielding Jatropha seeds and seedlings to D1-BP Fuel Crops, the Company's new planting joint venture with BP. 

 
 Commenting on the agreement, Henk Joos, D1's Plant Science and Agronomy Director, said: "KeyGene's technology is highly suitable for undertaking molecular work on a new crop, since no prior genetic sequence information is required. It enables molecular know-how to be developed quickly and cost effectively. In addition, several new technologies and detection methods have been developed by KeyGene that will increase the efficiency of application of molecular genetics to the crop." 
 Elliott Mannis, Chief Executive Officer of D1 Oils, said: "This agreement is a confirmation of D1's commitment to become a global leader in the plant science of Jatropha for the production of biodiesel. Jatropha is an under-developed crop and understanding its genetic profile will be crucial to its rapid commercialisation as a sustainable energy crop."
 
 Arjen van Tunen, CEO of KeyGene, said: "The collaboration with D1 Oils provides us with a committed strategic partner active in the biodiesel sector. Through our work on established vegetable and field crops we have developed significant technology and expertise in molecular breeding. We are excited to have the opportunity to apply this to a new energy crop on which little molecular genetic information is currently available."

D1 Oils and KeyGene to collaborate on molecular genetics for jatropha

Online exclusive posted Oct. 3, 2007, at 1:26 p.m. CDT
 
 Sen. Max Baucus, D-Mont., unveiled a tax package Tuesday that would add $9 billion above the baseline levels to the 2007 Senate farm bill. Part of that additional revenue would be added to the bottom line by subtraction from existing biofuels tax incentives.
 
 One of the provisions of the bill would decrease the 51 cents per gallon ethanol blenders tax credit to 46 cents per gallon. Language in the bill indicates that the change would come into effect in 2009. Although the blenders tax credit would be reduced, the 54 cents per gallon ethanol tariff would remain in place through 2010 if the provisions are enacted.
 
 Another biofuels provision in the bill is a new ethanol tax credit for cellulosic ethanol producers. The 50 cents per gallon credit would be added to the 51 cents per gallon under the ethanol blenders tax credit and the 10 cents per gallon small producer credit and is applicable for up to 60 million gallons per year.

 
 A two-year extension through 2010 of the $1 per gallon and 50 cents per gallon biodiesel tax credit is also in the bill, as well as a four-year extension through 2012 of the 10 cents per gallon tax credit for small agri-biodiesel producers.

Montana Senator unveils farm bill tax package

Web exclusive posted Oct. 5, 2007, at 10:13 a.m. CDT
 
 Magellan Midstream Partners LLC will hold an open house next week for its biodiesel storage and blending facility at Clear Lake, Iowa. The Oct. 8 event will feature a tour of the biodiesel facility at Magellan's petroleum distribution terminal, speaches from company officials and an address by Sen. Chuck Grassley, R-Iowa.
 
 The event is sponsored by the Iowa Soybean Association and the Iowa Biodiesel Board.

Magellan to hold open house at Clear Lake, Iowa

News release posted Oct. 10, 2007, at 12:35 p.m. CDT
 
 Calypso Communications, a full service marketing, public relations, and design agency, announced that national biodiesel energy leader Green Earth Fuels has hired the agency for its public relations, integrated communications, and energy industry experience and expertise.
 Green Earth Fuels, based in Houston, Tex., is the newest biodiesel energy firm to reliably supply progressive energy companies with renewable and environmentally sound biodiesel fuel that can be integrated with existing distillate product offerings. 
 
 "In its first year of operation Green Earth Fuels has redefined the concept of 'green energy' in this rapidly expanding market, and is solidly positioned as an industry leader," said Kevin Stickney, Calypso president and co-founder. "Green Earth Fuels has an outstanding business model, with unique distinction as an economically viable, environmentally superior, and energy efficient alternative to other biofuels. Our mission at Calypso is to illustrate these advantages to American companies and consumers."
 
 Calypso has instituted a targeted public relations program to raise visibility for Green Earth Fuels within the energy industry worldwide, and communicate biodiesel energy and environmental advantages to both commercial and public audiences. The Portsmouth-based communications firm has also set to work designing a new website and corporate media kit, and is coordinating a grand opening on the Houston Ship Channel for Green Earth Fuels' first biodiesel processing and distribution facility– one of the largest in the United States.

 
 Greg Bafalis, President and CEO of Green Earth Fuels, commented, "We hired Calypso because its team understands the unique challenges of the energy industry, and shares our vision for maximizing alternative renewable sources for everyday energy use. With Calypso's help, I have no doubt we will rightfully stake our claim as the world leader in this exciting and emerging new industry."
 
 Biodiesel is a renewable, clean-burning, alternative fuel derived from select natural plant oils and animal fats. Typically blended with petroleum diesel for use in diesel vehicles, biodiesel is the fastest growing alternative fuel in America.
 
 To date the Green Earth Fuels facility in Houston has produced and shipped more than 2.4 million gallons of fuel, with all of it meeting stringent ASTM (American Society of Testing and Materials) specifications. Expansion plans for three additional refineries are currently underway at sites in key coastal locations. Green Earth Fuels is also invested in ongoing feedstock development and best practices farming of current crops, to ensure a reliable supply of feedstocks that promote long-term environmental and economic sustainability.
 
 "The time has come for a national biodiesel energy infrastructure that is safe, sustainable, progressive, and commercially viable," noted Bafalis. "We are pleased to have a strong partner in Calypso who will help us refine-and communicate-our message to the U.S. renewable fuels marketplace."

Green Earth fuels hires Calypso Communications

Web exclusive posted Oct. 11, 2007, at 2:24 p.m. CDT
 
 North Dakota officials helped Archer Daniels Midland Co. (ADM) officially mark the opening of the company's first wholly owned biodiesel production facility in the United States at Velva Oct. 10. The 85 MMgy biodiesel plant, located next to ADM's existing canola seed crushing facility, was completed on time and within budget, starting operations shortly before the ribbon cutting ceremony. Construction on the Velva biodiesel facility began April 26, 2006. It will use approximately 750,000 metric tons of canola oil each year, the production from about 1 million acres of canola crops.
 
 "As global demand for energy grows, renewable fuels from crops play an increasingly important role in the world's energy supply," said John Rice, executive vice president, commercial and production. "The opening of this biodiesel facility is the next step on a journey that will strengthen rural economies, reduce overall pollution and improve the energy security of our nation and our world."
 
 ADM has a worldwide annual biodiesel capacity of 745 million gallons. Since 1995 it has been a leader in the European biodiesel market, and the number one producer in Germany with plants at Hamburg, Leer and Mainz. ADM has majority interest in a biodiesel plant at Rondonopolis, Brazil and joint ventures at Dumai, Indonesia, and Mexico, Mo., where Mid-America Biofuels LLC came on line in October 2006. ADM operates the world's largest biodiesel plant in Hamburg, Germany.
 

 Rice said ADM will run the Velva biodiesel plant at full production levels, even with feedstocks at record prices. "As we see more demand increase globally, more land will be available; more technology will be available to increase the size of the crops. We feel we will be able to supply both food and fuel," he said.

Cutting the ribbon to officially open the ADM biodiesel plant are, from left, the mayor of Velva, N.D. Sen. Kent Conrad, ADM Exec. VP John Rice, N.D. Gov. John Hoeven, and N.D. Sen. Byran Dorgan.

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ADM hosts ribbon cutting at North Dakota biodiesel plant

Web exclusive posted Oct. 12, 2007, at 1:57 p.m. CDT
 
 Chicago-based Benefuel Inc. plans to build its first biodiesel plant in Seymour, Ind., utilizing a new solid catalyst that enables the use of lower grades of oil to make biodiesel. Benefuel and Seymore Biofuels LLC plan to build the 10 MMgy using Benefuel's catalyst technology. According to a company release, the solid, acidic catalyst allows the processor to skip pre-processing on low-quality oils and fats and uses no water. Another benefit is that the glycerin coproduct is 98 percent pure.
 
 According to Benefuel, officials from both companies expect production at the Seymour plant to begin late in 2008.

Benefuel to build refinery to utilize solid catalyst

Web exclusive posted Oct. 15, 2007, at 9:16 a.m. CDT
 
 <a href="http://www.canadianbioenergy.com" target="_blank">Canadian Bioenergy Corp.</a> will hold a groundbreaking event at the site of its new biodiesel plant at Fort Saskatchewan, Albert, Canada. The facility will use canola oil as a feedstock and produce 114 MMly (30 MMgy) of biodiesel when complete. The plant's location is near an oilseed crushing facility operated by Bunge Canada.
 
 On the Web: 
 <a href="http://www.canadianbioenergy.com" target="_blank">www.canadianbioenergy.com</a>

Canadian Bioenergy to hold groundbreaking in Alberta

Web exclusive posted Oct. 15, 2007, at 1:00 p.m. CDT

 
 Ag Processing Inc. (AGP) announced Oct. 12 that it had received an unsolicited letter of intent last week from Ag Processors Alliance LLC (APA) stating that APA intended to acquire AGP. According to an AGP media release, Senior VP of Corporate and Member Relations Mike Maranell expressed his confidence that AGP members supported the board's action in rejecting the hostile takeover attempt.
 
 AGP is the world's largest cooperative soybean processor and is a leading vegetable oil refiner in the United States. It operates a 30 MMgy biodiesel plant in Sergeant Bluff, Iowa, with a 28 MMgy biodiesel plant under construction at St. Joseph, Mo. It also has a 52 MMgy ethanol plant in Hastings, Neb.
 
 On the Web:
 <a href="http://www.agp.com" target="_blank">www.agp.com</a>

September 2007

Business Briefs

D1 partners with BP

New device measures biodiesel stability

BDI offers RepCat-Process

HoustonStreet adds biodiesel to online trading platform

Kittiwake offers portable test kit

Biomass conference planner calls for abstracts

Recent deals to boost Louisiana biofuels infrastructure

Columns

Editor's Note

Letter to the Editor

NBB In Sight

Featured

Discovering New Uses for Glycerin

The Glycerin Spread

Constructing a Cleaner Work Environment

Where Does Biodiesel Legislation Stand?

From the Ground Up

On a Simple, Sustainable Mission

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

Business Briefs

D1 partners with BP

New device measures biodiesel stability

BDI offers RepCat-Process

HoustonStreet adds biodiesel to online trading platform

Kittiwake offers portable test kit

Biomass conference planner calls for abstracts

Recent deals to boost Louisiana biofuels infrastructure

Columns

Editor's Note

Letter to the Editor

NBB In Sight

Featured

Discovering New Uses for Glycerin

The Glycerin Spread

Constructing a Cleaner Work Environment

Where Does Biodiesel Legislation Stand?

From the Ground Up

On a Simple, Sustainable Mission

September 2007