Methanol makes up a significant portion of the biodiesel process, yet feedstocks and process technology seem to dominate the biodiesel conversation. Unless the topic is safety, methanol has been largely ignored. That's starting to change in light of recent sustainability concerns and technology advances. A new conversation is starting to emerge, and it's about biomethanol.
 
 Biomethanol is simply methanol produced from biomass and other nonfossil sources. Methanol, the alcohol with the simplest chemical structure (CH3OH), is a colorless, tasteless liquid with a faint odor. It is commonly known as wood alcohol and can be produced from a variety of feedstocks. In North America, the most common feedstock is natural gas, while in China they are stepping up production of methanol from coal. Biomethanol projects have used feedstocks such as wood waste, black liquor (a byproduct of the pulping process), methane gas from animal waste and landfills, sugar beet pulp and glycerol.
 
 Biomethanol has a sustainability appeal, which may be a plus for biodiesel producers. Interest in producing biofuels in a sustainable fashion has increased dramatically, and biomethanol could find its niche in the biodiesel industry. "One of the most significant ways to reduce our environmental impact is to identify raw materials that are manufactured responsibly from renewable resources, are regionally produced or further improve our energy balance," says Emily Bockian Landsburg, manager of business development for biodiesel producer Philadelphia Fry-o-Diesel. "Biomethanol is one example. Many environmental risk mitigation strategies are also business risk mitigation strategies. As methanol prices increase alongside the possibility of shortages, diversifying sources in terms of feedstocks and geography will become more and more attractive." Bockian Landsburg was appointed to chair a sustainability task force for the National Biodiesel Board. The appointment was announced in late February at the National Biodiesel Conference in Orlando, Fla.
 
 At least one biodiesel producer has been actively looking for a quality biomethanol to use in its process. "Pacific Biodiesel would definitely support that market," says Kelly King, marketing and communications director of Pacific Biodiesel. She is also the executive director of the Sustainable Biodiesel Alliance, a nonprofit founded in December 2006 to promote sustainable biodiesel practices and create best practice standards for verifying that all points in the production and distribution chain are in compliance with SBA's certification standards. "Judging by the success of the exhibit booth for the Sustainable Biodiesel Alliance at the National Biodiesel Conference, almost everyone is wanting to be more sustainable-from feedstock growers and collectors to biodiesel producers to venture capitalists," she says. "I think any biodiesel producer concerned with sustainability would use biomethanol. I think it would be absolutely more sustainable and could even be something that the Sustainable Biodiesel Alliance certification process would recognize."

 
 Some biodiesel producers might even be willing to pay a premium for biomethanol, but not always. "At times, the price of 'regular' methanol has been so high that no one would be able to afford to pay more," she says. "If methanol goes down to its normal levels, Pacific Biodiesel would certainly consider paying a higher rate for renewable methanol. I would even be willing to sign a long-term contract for renewable methanol if it could be priced fairly, and was based on the cost of production-rather than following the price of fossil-fuel-based methanol. Biomethanol would be a significant factor in the sustainability of biodiesel."
 
 Historical methanol prices confirm King's experience. According to records kept since May 2001 by Methanex Corp., a methanol producer and marketer, the price of methanol has fluctuated dramatically in that time. The nondiscounted reference price per gallon hit a low of 36 cents in February 2002 and steadily rose to a high of $2.50 per gallon in December 2007 and January 2008. The first time it broke a dollar was in December 2005. In the past year, the price fluctuated wildly from month to month; at one time the price increased by as much as 74 cents per gallon in one month, and then by another 80 cents over the next two months. In March, the price was down to $1.90 per gallon. The higher prices are caused in part by increasing global demand for energy and skyrocketing oil prices. 
 
 According to the Methanol Institute, there are 18 methanol production plants in the United States with a total annual capacity of more than 2.6 billion gallons per year. Worldwide, about 90 methanol plants have the capacity to produce more than 11 billion gallons of methanol annually. There is a handful of companies across Europe and the United States that are producing biomethanol, but their numbers are small in comparison.
 
 Making Methanol
 There are two basic steps to producing methanol. The first is to convert the feedstock into a synthesis gas stream, which consists of carbon monoxide, carbon dioxide, water and hydrogen. This is usually accomplished by the catalytic reforming of feed gas and steam, but partial oxidation is another possible route. The second step is the catalytic synthesis of methanol from the synthesis gas. The synthesis gas is fed into a reactor vessel under high pressures and temperatures. In the presence of a catalyst, carbon dioxide and hydrogen combine to produce methanol. Many methanol production facilities use the energy released in the second step to generate electricity needed for the first step.
 
 Like ethanol and biodiesel, biomethanol has been around a long time. In fact, methanol is commonly referred to as wood alcohol because it was made from wood in the early 1900s. Some reports say that as little as 6 gallons of methanol were produced from 1 ton of hardwood, which is why this production method was quickly dropped after natural gas was discovered. It has taken decades for someone to once again pick up the cause for biomethanol.
 
 Development of the alternative fuel has largely been ignored in favor of fuels that are easier or cheaper to convert. Methanol is produced with a gasification system, which is significantly more costly than the process technology required for fermentation into ethanol, for example. Biomethanol has an added layer of challenges. To meet economies of scale, the facilities must be large enough to be able to pay back capital costs. Yet biomass facilities must have an abundant supply of biomass to serve that scale. Traveling too far to collect biomass quickly changes the economics of such a project. 
 
 Taking the Gasifier to the Biomass

 One group is attempting to address both of these challenges. The Energy and Environmental Research Center at the University of North Dakota in Grand Forks received a grant from the Xcel Energy Renewable Development Fund to demonstrate the performance of a mobile biomass gasification system to convert sawdust waste from Valley Forest Wood Products in Marcell, Minn., into biomethanol that can be sold as a fuel for remote-site electric production. The grant's purpose is to create a new electrical source, but the project managers say this research also would develop the technology for distributed methanol production at sawmills, producing approximately 250 gallons per day. Minnesota, with its abundant forest resources and biodiesel plants, would provide a good fit for a biomethanol project, says EERC Senior Research Advisor John Hurley.
 
 The EERC conducted an engineering and economic analysis for the project. The cost varied, depending on the ambitiousness of the plan to pay back the capital costs. "If you're willing to have a 20-year payback and if you operate 24 hours per day, seven days per week for 85 percent of the year, the cost of the methanol would be about 79 cents per gallon," Hurley says. "At the time we did the analysis, the spot price of methanol was $1.80 per gallon." Alternatively, a methanol producer could sell the fuel at the spot price; with that kind of price difference, Hurley says a project could pay off the capital cost fairly quickly.
 
 The EERC project is one of the first near-commercial scale developments of its kind that Hurley is aware of. He says the challenge for biomethanol is scale. Existing methanol plants are huge-some producing as much as 5,000 tons per day. Biomass collection makes this kind of size for biomethanol unfeasible. Thus, the EERC's challenge is to develop distributed biomass utilization systems, or indirect liquefaction systems, that can be used on the biomass scale. 
 
 Another hurdle to efficient biomethanol production has been that gasifiers can be picky about feedstocks. "We developed a modification to existing gasification systems that allows us to gasify much wetter wood than could be done in the past," Hurley says. "The gas that's produced has a much higher hydrogen to carbon ratio than other gasifiers, and you need that to efficiently produce liquid fuels."
 
 The demonstration project, led by Hurley with assistance from Darren Schmidt and Nikhil Patel, will take two-years. It is slated to start this July, with the goal of an operational system by June of 2010. "We'll be ready to team with a company to build these in the summer of 2010," Hurley says. Of course, he notes that in the end, the commercial success of the project will depend on the markets. "If the prices are right in two years and a fuel system using wood is a better and cleaner choice, you could see a very large market open up," Hurley says. At that point, the biodiesel industry may be a large share of that market, or it may find itself on the other side. With this distributed model of biomethanol production, individual biodiesel plants could produce just enough biomethanol for their own production.
 
 On a larger scale, some biomethanol facilities are farther along in development, and some are even producing. The challenge for these larger companies is technology development, location (because of biomass harvesting) and up-front capital costs, which all lead to the overall question of economical production. North Shore Energy Technologies, a 40 MMgy biomethanol plant under development in Mississippi, is in the early stages of preliminary engineering. President Rich Mount says the biomethanol market will become more economical if petroleum prices continue to rise as they have been. 
 
 Within two years, biodiesel producers may see developments in the biomethanol industry that could make their operations more sustainable and profitable. 
 
 
 Anduin Kirkbride McElroy is a Biodiesel Magazine staff writer. Reach her at <a href="mailto:amcelroy@bbibiofuels.com ">amcelroy@bbibiofuels.com </a>or (701) 738-4962.

Nikhil Patel, research scientist at the EERC, works on a bench-scale thermally integrated biomass gasifier.

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Biomethanol could offer biodiesel producers the opportunity to be free of fossil fuels. And production cost and timing may be better than previously thought.

Is Biomethanol in Biodiesel's Future?

The newly formed National Algae Association, based in The Woodlands, Texas, is providing a forum for researchers, producers and investors to advance the discussion and production of algae as a renewable energy source. Biodiesel producers are looking for other feedstock options due to the high cost of corn, soybean and vegetable oil feedstocks, said association founder Barry Cohen of Biofuel Capital Partners. Algae can grow in ponds or tubes, and is considered a low-cost, high-yield feedstock. An inaugural networking forum will be held in Texas on April 10. For more information, visit <a href="http://www.nationalalgaeassociation.com">www.nationalalgaeassociation.com</a>.

National algae group forms

The carbon footprint that is left by printing BBI International Inc.'s publications has been neutralized. Joe Bryan, vice president of media, said the company has implemented an environmentally friendly, carbon-neutral printing process.

 
 BBI addressed the carbon-neutral issue in 2007 and was surprised at the difference some basic changes can make, Bryan said. The company prints its magazines and directories at R.R. Donnelly. Just a change in the type of paper had positive results. "The carbon output in the production of the paper that BBI was originally using per issue (one individual magazine) was 49,102 pounds of carbon dioxide," said Timothy Portz of R.R. Donnelly. "The carbon output for the new paper is 32,155 pounds. The savings is 16,947 pounds, the equivalent of taking two cars off the road for a year." 
 
 BBI, which publishes six trade magazines (three monthly, two bimonthly and one quarterly), in addition to two annual directories and two biannual wall maps, implemented its carbon-neutral plan for the printing of the 2007 directories. Bryan said when Portz explained the effects of the change in paper after the first printing run, he was stunned. "It was unbelievable," Bryan said. "For that one publication, it was enough to power four houses for a year, just by changing the weight of our paper." BBI clearly views paper as an operational necessity, Bryan explained.
 
 The printing run of the directories was the springboard that started a complete printing overhaul. "Tim explained to us that if we invested 'x' amount of dollars, we would be one of the very first publications in the country to be completely carbon-neutral," Bryan said. "We knew right away we had to do it."
 
 Portz said the collaborative effort between R.R. Donnelly and BBI is the real deal and not just what he called "green-washing." He said the unflattering title is used when companies try to hang a green marketing message on something that's not truly worthy. "We spent a lot of time getting an accurate assessment of [BBI's] carbon footprint as it stood before we took over," he explained. "We drew a baseline and then developed real strategies to drive out real carbon. It wasn't just, 'OK, here is the carbon footprint. Let's buy offsets. See you later.' We came up with a manufacturing strategy that reduced [BBI's] total cost [and] reduced the environmental footprint. We cut the carbon footprint nearly in half."
 
 Portz uses a special calculator (found at www.papercalculator.org) to determine paper reduction results and impacts. For example, in order to print 7,800 copies of a 168-page issue of EPM on 70-weight paper, it requires 18,655 pounds of paper. BBI changed the weight of its paper to 50, and it increased the amount of recyclable content in the paper to 30 percent, he explained. "The total weight of paper (used for printing) becomes 13,325 pounds," he said. The calculator also indicates how many trees were saved. Previously, one issue of the magazine used 24 tons of wood. After the paper change, that number was decreased to 13 tons. "That saved 73 trees," he said.
 
 The calculator also determines the impact on total energy, purchased energy, sulfur dioxide, greenhouse gases, nitrogen dioxide, particulates, hazardous air pollutants, volatile organic compounds, total reduced sulfur, wastewater, biochemical oxygen demand, total suspended solids, chemical oxygen demand, absorbable organic halogens and solid waste.
 Bryan said BBI is very pleased with the results of carbon-neutral printing, and the company will continue to implement viable and environmentally friendly projects whenever possible.

R.R. Donnelly account representatives Timothy Portz, left, and Seth Porter run press checks before printing Biomass Magazine.

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BBI International becomes carbon-neutral

Efforts to improve the quality of biodiesel are starting to pay off, according to a fuel quality survey highlighted at the National Biodiesel Conference in Orlando, Fla., in February. 
 
 The survey, conducted by the National Renewable Energy Laboratory, found that 90 percent of U.S. biodiesel production samples met industry specifications for quality, according to NREL Senior Chemist Teresa Alleman.
 
 Alleman's conclusion was based on a relatively large sample size. The sample covered 70 percent of actual U.S. production in 2007 and is believed by NREL to be representative of biodiesel production nationwide. NREL collected the samples from biodiesel producers between April and October 2007. The samples came from plants that produced between 3,000 and 30 million gallons per year from several different feedstocks. NREL tested each sample for critical parameters required by ASTM D 6751, the national standard for biodiesel. "These data show that the biodiesel industry has achieved dramatic improvements in fuel quality since 2006," said Steve Howell, technical director of the National Biodiesel Board. "We expect that this trend will continue so that virtually all biodiesel sold in the U.S. meets these requirements in the very near future."

 
 Alleman said NREL surveys in 2004 and 2006 showed higher levels of quality problems, but she cautioned that the design of those surveys was somewhat different. "Those [surveys] were not linked to production levels, and were sampled at terminals and jobbers, not at the producer level," she said. "I think these surveys are an important thing to do because of the rapid growth of the industry." The fact that more than half of the samples in the 2006 survey failed to meet specifications was a wake-up call for the industry. "In the summer of 2006, our board of directors put into place a strong fuel-quality policy with the goal of increasing the level of in-specification biodiesel in the U.S. to 100 percent," said NBB Chief Executive Officer Joe Jobe.
 
 Plants certified under the BQ-9000 accreditation program fared the best. According to NREL, only one sample from a BQ-9000 producer was out of specification, and that was most likely a sampling or contamination error, not an actual manufacturing issue. There are 27 companies certified under BQ-9000, representing approximately 75 percent of the biodiesel produced nationwide.
 
 The NBB is putting more resources into the BQ-9000 program. It is also working with the Internal Revenue Service and U.S. EPA to enforce biodiesel quality standards. In order to receive tax incentives for biodiesel production, the fuel must meet the specifications of ASTM D 6751. "The NBB's outreach efforts with enforcement agencies and our investment in the BQ-9000 program have yielded terrific results, and we'll continue to push for 100 percent [of biodiesel plants meeting quality specifications]," Jobe said.
 
 Improving biodiesel quality is vital to assuring consumer confidence in the industry, Alleman said. "I think the goal of the industry has to be compliance with 100 percent of the standards 100 percent of the time," she said. "Some may say that's an unobtainable goal, but what we need to strive for is truly perfection."

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Quality survey indicates improvement

Blackmer has released a ProVane Motor Speed Vane Pump that is ideal for caustic transfer applications in a biodiesel plant, according to a Blackmer spokesman. The pump also eliminates the need for an additional motor, which saves producers money and energy. A pump is one of the most crucial pieces of equipment in a biodiesel plant, and Blackmer's spokesman said the ProVane pumps not only last for decades, but are currently being used successfully in all sizes of plants throughout the country. Blackmer is a Michigan-based manufacturer of pumps and compressors used for the transfer of liquid and gas products.

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Blackmer pump offers cost-effectiveness

In January, Colorado Springs was named Government Fleet Magazine's top U.S. city with a biodiesel fleet. The city fleet was also 17th in all nationwide public sectors with alternative fuel fleets. "In terms of biodiesel use, Colorado Springs was up there at the top," said Cindy Brauer, managing editor of the magazine. Blue Sun Biodiesel LLC is the city's fuel provider. Jeff Probst, president of Blue Sun, said his company is pleased to be a part of the success.

Colorado Springs takes honor

Ed Schafer was sworn in Jan. 28 as the 29th Secretary of Agriculture, replacing Deputy Secretary Chuck Connor who had served as acting secretary since September when former secretary Mike Johanns resigned. Schafer was governor in his home state of North Dakota from 1992 to 2000. In remarks at the USDA Agricultural Outlook Forum on Feb. 21, Schafer said, "I think in the next 10 to 15 years, we're going to move a long way toward meeting the goals of this country in self-sufficiency in energy, and it's going to come from an effort in the agriculture community."

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Schafer takes helm at USDA

Saturn V, the rocket that propelled three astronauts to the moon on the infamous Apollo 13 mission, launched at 13:13 central time. Capt. James Lovell, one of three men aboard, said that in retrospect, he should have known just then the nature of things to come. Addressing attendees at the National Biodiesel Conference & Expo in Orlando, Fla., in early February, Lovell gave a compelling recollection of his incredible near-death experience in space-the ultimate crash course in crisis management. 
 
 After takeoff, Saturn V's center engine quit two minutes early, leaving enough power, however, to reach the moon. After two days, the mission was on course. Television cameras sent live feed to all three networks, which aired baseball and reruns of "I Love Lucy" and "The Dick Cavett Show" instead. 
 
 The unviewed program cut short when a loud bang occurred. The ship rocked violently back and forth as emergency lights flashed. The crew lost two of the three fuel cells-liquid hydrogen and oxygen combined to make power and water. Lovell said if one were lost, the moon landing was off. Then, he noticed that the needle on one of the oxygen tanks in the service module read zero, while the needle on the other was visibly going down-something they should never see. "A lead weight went to the bottom of my stomach as I looked out the window and saw a gaseous substance," Lovell said. "I knew it was oxygen-we were to lose our electricity and oxygen." They were 200,000 miles from Earth and had only a small battery and enough oxygen to make the final jettison home. However, they remained on course for the moon in order to circle around it and use propulsion from its gravity to get on the free-return course home. A long trip around the dark side of the moon still lay ahead. 

 
 The astronauts climbed into the small lunar module and communication with mission control was temporarily lost. Lovell said it was teamwork and leadership on the ground in Houston that ultimately got the desperate crew back onto the free-return course-a "better option" than perpetually orbiting the Earth and moon for an eternity, he said. "I learned something then-always expect the unexpected." As he tried to navigate the small lunar module with a hulking 60,000-pound defunct ship still attached, mission control called with the conclusion that they were not coming home. Under the spell of the moon's elusive far side, Lovell's crew mates were oblivious to their expected fate and continued taking photographs. 
 
 Headed finally toward Earth, the weary crew needed to re-enter the atmosphere with extreme care and precision-between five and seven degrees. Too shallow an attempt and they would miss re-entry altogether. Too deep and they would burst into flames like a fiery meteor. Again, mission control called with bad news-the module was off course by 60 to 80 nautical miles. Quickly they remembered the emergency manual procedures, which entailed sighting Earth in the gun sight of the lunar module's window and using what little power remained to maneuver. Earth's horizon was in the cross hairs. With critical teamwork, the three precariously navigated re-entry and landed safely in the Pacific Ocean. "Mission control quietly tore up the obituaries they had planned for us," Lovell said. 
 
 Good leadership, teamwork, initiative, imagination, perseverance, and motivation were the human qualities that changed Apollo 13 into a mission about crisis management. "Sharpen those management skills," he said. "Good leadership fosters teamwork. We never planned for multiple failures like this. The moral of the story is I shouldn't be here to talk with you today. I'm here because of those attributes." Before he left the stage Lovell told the spellbound audience that there are three types of people: Those who make things happen; those who watch things happen; and those who just wonder what happened. 
 
 Meeting Minutes
 The biodiesel industry needs people with the attributes Lovell says it took to safely land Apollo 13, to navigate through some trying times in the biodiesel industry. In his opening remarks at the National Biodiesel Conference, Joe Jobe, executive director of the National Biodiesel Board, said he remains optimistic for the industry despite the current painful market situation and high feedstock costs. Jobe listed positive developments in the past year including the biodiesel carve-out in the renewable fuels standard; the marked improvement in biodiesel quality as shown in National Renewable Energy Laboratory's latest survey; and the boost in people's awareness of biodiesel-jumping 45 percent to 65 percent in one year. Alan Weber, vice president of MARC-IV Consulting Inc. and an economic consultant to the NBB, will be leading the board's feedstock development program, exploring ways for the board to help stimulate the development of second-generation feedstocks. The NBB board also appointed Philadelphia Fry-O-Diesel's business development director, Emily Bockian Landsburg to chair a new nine-member sustainability task force. Holding up a gallon of algae biodiesel, Jobe, who got his start in the soybean industry, hailed the potential for new feedstocks such as algae, with its cloud point of minus 57 degrees Celsius (135 degrees Fahrenheit). "I wouldn't suggest [algae biodiesel] is a panacea-the answer to all the industry's concerns," he said. "On the other hand, it isn't the tooth fairy either. This is real." Reflecting the annual conference's theme of "Navigating in a changing environment," Jobe called for the industry to set its course by navigating by the light of the stars rather than by the light of passing ships. There are few short-term solutions, he admitted, but the long-term outlook is still promising. "We have reached a bend in the road," he said. "But a bend in the road is not the end of the road, that is, unless you fail to make the turn."
 
 Following Jobe's opening remarks members of the NBB executive committee presented an overview of the biodiesel industry and the challenges ahead in a panel discussion at a simulated truck stop. NBB Chairman Ed Hegland, Minnesota Soybean Research and Promotion Council, moderated the discussion. He was joined by NBB Vice Chairman Gary Haer, vice president of sales and marketing for Renewable Energy Group Inc., NBB Secretary Graham Noyes, vice president of sales and business development for Imperium Renewables Inc., and the newly appointed chair of the NBB sustainability task force, Bockian Landsburg. Their presentation was followed by market commentator Don Reynolds, who put the global economy and subprime mortgage crisis into context for the room full of biodiesel producers.
 
 Lisa Ryan of Alterra Energy didn't mind telling the crowd she would be willing to trade hugs for donations to the National Biodiesel Political Action Committee (NAPAC), which was formed just last year and raised $75,000 from 150 donors. In 2008, she wanted to bring in double what the NBPAC pulled in last year. "You spend money on wining and dining customers," she said. "So reroute a small amount of that money to the biodiesel PAC." Manning Feraci, vice president of federal affairs for the NBB, said although the industry was able to secure a billion-dollar biodiesel carve out in the RFS two big legislative initiatives remain-extending the $1-per-gallon blenders' credit, and reviving a new-and-improved Commodity Credit Corp. Bioenergy Program in the Farm Bill, which is currently being debated. Feraci said the industry needs the CCC Bioenergy Program to offset high feedstock costs. The new program should provide payments for every gallon of biodiesel production out there, not just new or expanded volumes like the old one did. 
 
 The First Shall Be Last

 The final day of the conference centered on the first step of the biodiesel process: feedstocks. NBB Consultant Weber led a forum with Jack Brown, an associate professor and plant breeder at the University of Idaho; Keith Bruinsma, vice president of corporate development for ethanol producer VeraSun Energy Corp.; John Sheehan, vice president of strategy and sustainability for LiveFuels Inc; and John Soper, senior research director for soybean product development for Pioneer Hi-Bred International Inc.
 
 It will be another challenging year for biodiesel producers looking to secure feedstocks for two reasons, according to Brown, $5 corn and $14 wheat. "There is too much money in grain crops right now in the USA," he said. "It's great that it's going that way because farmers need a shot in the arm right now. But those crops are still too valuable (compared with oilseeds)." Any new oilseed crop introduced to farmers will have to compete with grains for acres. In order to gain a significant amount of acres, those crops will have to have a significant financial or agronomic benefit or grow on land unsuitable for grain production.
 
 The future isn't all gloom and doom. Soper said his company and other plant breeders continue to work on products that could prove valuable to the biodiesel industry. Along with continued efforts to create higher yielding soybean varieties, Pioneer is close to releasing soybean and corn varieties with higher oil content. The company will be accelerating its introduction of higher yielding soybeans by 2010, and high-oil corn varieties could be on the market by 2013, Soper said. 
 
 In some areas, nontraditional crops such as winter canola and rapeseed could make short-term contributions to the biodiesel feedstock supply, Brown said. But in the long term, he thinks mustard may become much more significant within five years. Mustard meal is being registered as an organic pesticide, and up to 15 million acres could be raised for biopesticides, with up to 70 gallons an acre of oil being produced as a coproduct, Brown said.
 
 One potential new feedstock that could provide some short-term relief comes, somewhat ironically, from the ethanol industry. Bruinsma talked about VeraSun's work to extract corn oil from distillers grains as a feedstock for biodiesel. "You will see a small amount of corn oil come into the market next year, but in the next five years you will see that significantly ramped up as people figure out ways to get solvent extraction equipment installed to get that oil out," he said.
 
 Sheehan is encouraged by the long-term possibilities for algae production. Potentially, an acre that could grow an oilseed crop to produce a few dozen gallons of oil could produce thousands of gallons of algae-based oil. However, the first commercial production of significant quantities of algae oil is most likely about seven years off, Sheehan said.
 
 No one feedstock will provide the ultimate solution to the biodiesel industry's challenges. Arguments about the relative merits of feedstocks are doubly counterproductive, creating divisions between producers and giving ammunition to those opposed to biofuels. "Each of the pieces represented here are part of the solution," Sheehan said. "For someone to get up and say they're the good guy because they have the more sustainable product is damaging to everybody." 
 
 Ron Kotrba is a Biodiesel Magazine senior writer. Jerry W. Kram and Susanne Retka Schill are staff writers. Reach them at <a href="mailto:rkotrba@bbibiofuels.com">rkotrba@bbibiofuels.com</a>, <a href="mailto:jkram@bbibiofuels.com">jkram@bbibiofuels.com</a> or <a href="mailto:sretkaschill@bbibiofuels.com">sretkaschill@bbibiofuels.com</a> or (701) 738-4962.

Jobe called for the biodiesel industry to set its course by navigating by the light of the stars rather than by the light of passing ships.

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Left to right, Weber, Brown, Buinsma, Sheehan and Soper talk about feedstocks during a panel discussion at the National Biodiesel Conference. 

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Perseverance, sustainability and alternatives were three broad themes of the 2008 National Biodiesel Conference & Expo in Orlando, Fla., in early February, as the industry adapts to changing market, agricultural and ecological dynamics.

Plotting a Safe Landing in CHALLENGING TIMES

Florida conjures up thousands of contrasting images: the white sand beaches of Daytona and the sea of grass called the Everglades; Miami's glittering night life and alligators in back yards; explorers headed to space delicately balanced on a lance of fire, and children thrilled to meet a certain movie mouse or web-spinning superhero. Yet another image was showcased at the National Biodiesel Conference & Expo in Orlando, Fla., one where major players are striving to make biodiesel an important part of the energy equation in one of the fastest growing states in the nation.

 
 Every year, large biodiesel consumers in Florida use hundreds of thousands of gallons of the renewable fuel. Three of them-Florida Power & Light Co., NASA and Universal Studios Theme Park-made presentations based on their experiences at the conference in February. Each of these organizations has made a major commitment to using alternative energy resources and have made biodiesel an important part of their energy equation. "Each one of these organizations has national and international impact and are recognized for their leadership," said Tom Verry, director of outreach for the NBB. "In promoting biodiesel for 17 years, I could never dream of a day like this. Florida is a prime biodiesel producing state and has been a leader in this area."
 
 Let There Be Light
 Millions of people live in Florida and the state hosts millions more visitors every year. At night, the region glows with the lights of hundreds of attractions as diverse as Epcot and the Hard Rock Café. The rainbow of neon that is Florida takes a lot of energy to maintain, and biodiesel plays a key role in keeping the lights on, said George Survant, director of fleet services for FP&L. The company started using biodiesel in 1999 and now uses more than 2 million gallons a year. "I run about 1,200 medium-duty trucks in the 27,000 to 33,000 pound weight class," Survant said. "We probably have another 700 smaller trucks that are diesel powered expressly because we can use biodiesel in them."
 
 Survant said his company has always maintained a close working relationship with its biodiesel suppliers in northern Florida. FP&L has always tried to create what Survant called a quality partnership with its suppliers and so has never experienced the quality problems with biodiesel that tend to get reported in the media. In fact, the main problem for FP&L is finding enough biodiesel. "As you might imagine we have had supply difficulties," he said. "Until the recent popularity of biodiesel we actually had a price advantage over diesel fuel, but I'm afraid that has gone the way of the dinosaur. But we expect the supply and demand curve to settle out and prices will normalize over time."
 
 The biggest advantage for FP&L is how much cleaner biodiesel is compared with petroleum diesel. "Our engines are cleaner," Survant said. "Our emissions are cleaner. It has been so long since I have had a complaint about the exhaust fumes from one of our trucks in a residential area, I can't even tell you when it was." Cleaner vehicles are important to FP&L because they need to go everywhere electricity is used. "We may be next to the hospital or in the driveway beside your house," he said. "We are a first responder to ensure that our customers' lights are on. We are everywhere and we are a high-profile fleet."

 
 Biodiesel has not only been a solid environmental choice for FP&L but also a good economic decision. Until recently, the company paid less for biodiesel than for petroleum diesel, a savings for the customers and the company. "We have to make good solid decisions for our customers for good reliable fuel choices and good reliable truck choices," Survant said. "We also have to make solid economic decisions both for our customers and our shareholders. Biodiesel has been a win-win experience across the board."
 
 FP&L has long been a leader in incorporating alternative fuels into its operation a fact recognized by the NBB, which presented the company with its Eye on Biodiesel Initiative Award. 
 
 Biodiesel is not only contributing to the company's environmental goals in the present but will continue to play a large role in the future as well. Continued reliance on fuel sources from unstable parts of the world is not in the best long-term interests of his industry, Survant said. Using biodiesel also supports the Florida economy. "There are so many reasons that [using biodiesel] is the right thing to do at the right time." he added. "We are pleased to be afforded an opportunity to be a leader in this field. The fuel we buy is from north Florida and the soybeans are locally grown. Everything about the program gives our community relations folks a big reason to smile."
 
 To Boldly Go
 Florida is home to the Kennedy Space Center at Cape Canaveral, where spacecraft to the Moon, Mars, Jupiter and beyond all began their epic journeys. NASA maintains more earthly concerns as well. That's why the agency began fueling its 144 diesel-powered vehicles exclusively on B20 in 2003, said Bruce Chesson, alternative fuels coordinator with NASA transportation. Since then, NASA has used more than 276,000 gallons of the fuel. In recognition of its commitment to using biodiesel, the NBB awarded NASA its annual Pioneer Award.
 
 Chesson said the most extraordinary thing about the space agency's conversion to biodiesel was how uneventful it has been. "It was pretty much the easiest switchover to any alternative fuel we could use," he said. "We cleaned out the tanks, put biodiesel stickers on, filled up with biodiesel and started dispensing the fuel from our station."
 

 The NASA fleet is leased by the General Services Administration and includes 43 buses. These are full-sized tour buses as well as smaller shuttles that carry NASA personnel between various industrial areas of Cape Kennedy. Other biodiesel-fueled equipment includes the tractors that move large pieces of equipment to and from the pads prior to a launch.
 
 Cape Kennedy isn't the only part of NASA fueled by alternatives. The space administration has labs and facilities from California to Iowa to Maryland. "All of our centers are trying to operate on alternative fuels as much as possible," Chesson said.
 
 Biodiesel-Powered Movie Magic
 The ominous two-note theme pounds, suddenly a huge shark rises from the water, the sun glistens off hundreds of razor-sharp teeth. That's the experience visitor's thrill to every day at the Universal Orlando Resort in Orlando, and one that is powered by biodiesel. The tour boats that ferry tourists through the "Jaws" attraction at the park are being converted to run on biodiesel. Each boat will use two diesel motors, one for propulsion and the other to run a generator for electrical power.
 
 Since March 2007, every diesel engine at the park has run on biodiesel, said David Winslow, director of engineering and environment sustainability technical services for Universal Orlando Resort. All of the park's water taxis and its ground fleet of more than 50 vehicles are already running on B20. 
 
 Winslow said he took direction from Florida Agriculture Commissioner Charles Bronson who said that when it comes to biofuels, decision makers need to say "yes we can" instead of "no we can't." "That was so true," Winslow said. "It took us a year of trying to convince all the departments of Universal that it was OK to use biodiesel. Every step along the way it was 'no because of warranties' or 'no because we don't know what the emission issues are' or 'no because we don't know about tank compatibility.' Finally I have to give credit to my direct supervisor who said, 'yes if this is the right thing to do for the environment then this is the right thing to do for Universal Orlando, the city of Orlando and the state of Florida.'" The next fuel truck to show up after that conversation was filled with biodiesel, Winslow said.
 
 One of the opportunities that Universal offers the biodiesel industry is that it uses an incredible range of equipment. From trucks to buses to stationary engines, the facility makes use of just about every type and size of diesel engine from a dozen different manufacturers. The park also keeps meticulous records of the service and maintenance done on those engines, so the company will be able to determine if there are any maintenance issues related to biodiesel. So far, there have been no issues related to the fuel. "We are a 24/7/365 [day] operation," Winslow said. "We run our equipment all the time. We put a lot of hours on that equipment very quickly."
 
 The resort uses about 100,000 gallons of diesel fuel per year. Winslow estimates that using B20 has reduced emissions of carbon dioxide by 158 tons per year. "That's about the equivalent of taking 26 cars off the road," he said. "That's a step in the right direction."
 
 Biodiesel has a bright and expanding future at the Universal Orlando theme park. The company's water taxis are being converted from outboard motors to inboard motors from Volkswagen, which will be the first engines at the resort certified to use biodiesel blends higher than B20. Winslow said they will use B20 to start with and after a shakedown period they will start using B50. The engines are certified to use B100, and could eventually be running on pure biodiesel. Half of the boats are scheduled to be converted this year and the other half in 2009. The conversion will increase the park's use of biodiesel by 50 percent.

 
 The one disappointment Winslow expressed is that he personally wants to use alternative fuels, but there are currently no retail biodiesel or E85 ethanol stations between Daytona on the Atlantic Coast and Tampa on the Gulf Coast. "My request to the community is that we get more retail stations out there," he said. 
 
 Jerry W. Kram is a Biodiesel Magazine staff writer. Reach him at <a href="mailto:jkram@bbibiofuels.com">jkram@bbibiofuels.com</a> or (701) 738-4962.

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Winslow fuels a vehicle from Universal Orlando Resort's biodiesel fueling station. All diesel engines at the theme park in Orlando run on a biodiesel blend.

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Florida has a bustling biodiesel industry and a number of major companies have made strong commitments to use the renewable fuel. Three of those companies were featured presenters and were recognized for their use and promotion of biodiesel at the National Biodiesel Conference & Expo in Florida.

Photos and story by Jerry Kram.

Biodiesel Blossoms in the Sunshine State

A couple months ago, I received a press release about a proposed U.S. oil refinery in Arizona that moved its site because of "legal uncertainties" surrounding a lawsuit filed by a local Native American tribe in April 2007.
 
 How about that. I guess the biodiesel and oil industries have one more thing in common: public opposition.
 
 This is a project I first heard about in April 2005. Our staff thought it would be of interest to our readers because just as we support American-made renewable fuels, we also realize that biodiesel and ethanol, among others, can't replace all of the country's fuel demand. Perhaps American-made gasoline and diesel are better than foreign oil-based products. 
 
 However, a U.S. oil refinery hasn't been built since the 1970s, and this Arizona project has clearly become an example of how difficult it is to complete such an endeavor.
 
 The biodiesel industry faces similar challenges with its own detractors. Some people don't want biodiesel plants in their backyards, they don't want any unordinary odors in the air, they don't want increased truck traffic in their towns, and they don't want to wait an extra five minutes for the trains to pass by. There's an acronym for this, and it's not NIMBY (Not In My Backyard). These days, there's the acronym BANANA (Build Absolutely Nothing Anywhere Near Anything). I can see that being applicable to the biodiesel industry in certain cases.
 

 It amazes me how many people agree that we need to diversify our country's fuel supplies, yet not many are willing to make even a small sacrifice. I'm not saying we should turn our backs to the environmental aspects of these industrial facilities. All biodiesel plants should be held to the highest emissions and discharge standards out there, and many do. 
 
 However, I am asking the general public to consider giving up some of their conveniences in exchange for a healthier fuels supply.
 
 The biodiesel industry has more than just public opposition to worry about these days. Feedstock prices are high, quality is a concern, and governmental support is necessary. 
 
 However, all of these factors will positively align one day, making biodiesel production advantageous once again. When that happens, what a shame it would be if an individual or group was to stand up and say they don't want a biodiesel plant in their neighborhood for trivial reasons. In my ideal world, everyone would be more than willing to support such a project. I hope they would be proud to have such a project in their town. While those people wait for the train to ship the product from the plant, they can take pride in the fact that their town is helping reduce our dependence on oil.
 
 Please share your NIMBY or BANANA stories with us! Send them to <a href="mailto:jsobolik@bbibiofuels.com">jsobolik@bbibiofuels.com</a>.
 
 Jessica Sobolik
 Managing Editor
 <a href="mailto:jsobolik@bbibiofuels.com">jsobolik@bbibiofuels.com</a>

 
 Correction from our February 2008 issue:
 The author of the article on page 128, "Environmental Auditing and Management Approaches for Compliance," was incorrectly identified. His full name is Timothy A. Wilkins.
 
 Note: The article on page 142, "Reliable Analysis of Glycerin in Biodiesel," originally appeared in the November 2007 issue of Laboratory Equipment, a publication of Advantage Business Media.

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A Little Sacrifice Goes a Long Way

Dole Fresh Vegetables Co., a division of Dole Food Co. Inc., has begun to use B20 in all of its harvesting equipment in Salinas, Calif., and Yuma, Ariz. Dole, which began conducting B20 tests in its farm equipment and off-road vehicles in August, sees the move as a commitment toward sustainable environmental and agricultural practices, according to Kevin Fiori, senior vice president of agricultural operations. McNeece Brothers Oil Co. currently supplies B20 to Dole's operations in Yuma, while Golden Gate Petroleum will supply the facility in Salinas, Fiori said. 
 
 Producer faces felony charges
 A joint investigation by the U.S. EPA Criminal Investigation Division, the Missouri Department of Natural Resources and the Missouri Department of Conservation resulted in the federal indictment of James Raulerson and James Raulerson Farms for violating the Clean Water Act. An anonymous tip to the Missouri Department of Conservation last fall regarding the illegal discharge of pollutants generated from Natural Biodiesel Plant LLC into the Belle Fountain Ditch in Hermondale, Mo., spurred the investigation. Raulerson and James Raulerson Farms have been accused of the discharging. If convicted, Raulerson faces one year in prison and $2,500 to $250,000 in fines. The business faces fines of up to $500,000. 
 
 Chevron responds to lawsuit
 Chevron Corp. said it backed out of a Texas biodiesel project because it had no legal obligation to see construction finalized after contributing $8.7 million to build the refinery. BioSelect Galveston Bay sued the oil giant, claiming it left the project stranded when it declined to continue funding construction in August. Chevron, in a response filed in a Texas court in February, claims Galveston Bay mismanaged the project and tried to oust Chevron's representatives from the board. It quit contributing because "any additional investment would simply be throwing good money after bad." Chevron is asking that the case be moved to federal court. The plant is operational, producing 20 MMgy of soy-based fuel.
 
 DOE announces 

 small-scale biorefinery awards
 The U.S. DOE recently announced that it would invest up to $114 million for four small-scale biorefinery projects. Among those, the North American arm of Stora Enso, which was recently acquired by printing manufacturer NewPage Corp., was chosen to receive up to $30 million toward its renewable diesel proposal. The project aims to construct and operate a thermal gasification and gas-to-liquids plant in Wisconsin Rapids, Wis. Wood biomass comprised of mill residues and unmerchantable forest biomass will be converted to liquid biofuels-and ultimately renewable diesel-using a Fischer-Tropsch process.
 
 New purpose-built 
 patrol car in development
 Atlanta-based automaker Carbon Motors Corp. intends to produce a purpose-built law enforcement patrol vehicle capable of running on biodiesel. The rear-wheel-drive vehicle will be powered by a 300-horsepower, clean-diesel engine and a six-speed transmission that will help it reach top speeds of 155 mph with a useful life target of 250,000 miles. A carbon council consisting of law enforcement officials representing all types of agencies in the United States and Canada has been formed to advise the company. 
 
 North Carolina Biodiesel Association launches
 The North Carolina biodiesel industry has received a welcome boost from a variety of groups and stakeholders, which have formed the North Carolina Biodiesel Association in order to advance the business interests of the state's emerging industry. The nonprofit organization consists of industry leaders, community-college representatives and workforce development experts. Board member Leif Forer said he is hoping the association receives strong support as the industry moves forward. "Now that we are established, we are inviting producers, suppliers and members of the public to join us in unleashing the power of biodiesel here in North Carolina," he said. 
 
 TCEQ approves B5
 Two biodiesel blends can now be used in the 110 most-populous counties that are regulated by the Texas Commission of Environmental Quality's Texas Low Emissions Diesel (TxLED) program. The TCEQ approved a B5 blend in late December, following its approval of B20 with additives in February 2007. Previously, the TCEQ had allowed biodiesel producers to blend biodiesel under an alternative emission reduction plan (AERP) while nitrogen oxide emissions were studied. Since the AERP expired Dec. 31, all biodiesel blends must be approved by the TCEQ. Program Specialist Morris Brown said he anticipates more blends to be approved this year.
 
 National algae group forms
 The newly formed National Algae Association, based in The Woodlands, Texas, is providing a forum for researchers, producers and investors to advance the discussion and production of algae as a renewable energy source. Biodiesel producers are looking for other feedstock options due to the high cost of corn, soybean and vegetable oil feedstocks, said association founder Barry Cohen of Biofuel Capital Partners. Algae can grow in ponds or tubes, and is considered a low-cost, high-yield feedstock. An inaugural networking forum will be held in Texas on April 10. For more information, visit www
 .nationalalgaeassociation.com. n

Dole Food Co. switches to B20

A joint investigation by the U.S. EPA Criminal Investigation Division, the Missouri Department of Natural Resources and the Missouri Department of Conservation resulted in the federal indictment of James Raulerson and James Raulerson Farms for violating the Clean Water Act. An anonymous tip to the Missouri Department of Conservation last fall regarding the illegal discharge of pollutants generated from Natural Biodiesel Plant LLC into the Belle Fountain Ditch in Hermondale, Mo., spurred the investigation. Raulerson and James Raulerson Farms have been accused of the discharging. If convicted, Raulerson faces one year in prison and $2,500 to $250,000 in fines. The business faces fines of up to $500,000.

Producer faces felony charges

Chevron Corp. said it backed out of a Texas biodiesel project because it had no legal obligation to see construction finalized after contributing $8.7 million to build the refinery. BioSelect Galveston Bay sued the oil giant, claiming it left the project stranded when it declined to continue funding construction in August. Chevron, in a response filed in a Texas court in February, claims Galveston Bay mismanaged the project and tried to oust Chevron's representatives from the board. It quit contributing because "any additional investment would simply be throwing good money after bad." Chevron is asking that the case be moved to federal court. The plant is operational, producing 20 MMgy of soy-based fuel.

Chevron responds to lawsuit

The U.S. DOE recently announced that it would invest up to $114 million for four small-scale biorefinery projects. Among those, the North American arm of Stora Enso, which was recently acquired by printing manufacturer NewPage Corp., was chosen to receive up to $30 million toward its renewable diesel proposal. The project aims to construct and operate a thermal gasification and gas-to-liquids plant in Wisconsin Rapids, Wis. Wood biomass comprised of mill residues and unmerchantable forest biomass will be converted to liquid biofuels-and ultimately renewable diesel-using a Fischer-Tropsch process.

DOE announces small-scale biorefinery awards

Atlanta-based automaker Carbon Motors Corp. intends to produce a purpose-built law enforcement patrol vehicle capable of running on biodiesel. The rear-wheel-drive vehicle will be powered by a 300-horsepower, clean-diesel engine and a six-speed transmission that will help it reach top speeds of 155 mph with a useful life target of 250,000 miles. A carbon council consisting of law enforcement officials representing all types of agencies in the United States and Canada has been formed to advise the company.

New purpose-built patrol car in development

The North Carolina biodiesel industry has received a welcome boost from a variety of groups and stakeholders, which have formed the North Carolina Biodiesel Association in order to advance the business interests of the state's emerging industry. The nonprofit organization consists of industry leaders, community-college representatives and workforce development experts. Board member Leif Forer said he is hoping the association receives strong support as the industry moves forward. "Now that we are established, we are inviting producers, suppliers and members of the public to join us in unleashing the power of biodiesel here in North Carolina," he said.

North Carolina Biodiesel Association launches

Two biodiesel blends can now be used in the 110 most-populous counties that are regulated by the Texas Commission of Environmental Quality's Texas Low Emissions Diesel (TxLED) program. The TCEQ approved a B5 blend in late December, following its approval of B20 with additives in February 2007. Previously, the TCEQ had allowed biodiesel producers to blend biodiesel under an alternative emission reduction plan (AERP) while nitrogen oxide emissions were studied. Since the AERP expired Dec. 31, all biodiesel blends must be approved by the TCEQ. Program Specialist Morris Brown said he anticipates more blends to be approved this year.

TCEQ approves B5

Two issues took center stage at the fifth annual National Biodiesel Conference & Expo in Orlando, Fla.-developing new feedstocks and sustainability. During the opening day's general session, National Biodiesel Board leaders announced initiatives in both areas. NBB Chairman Ed Hegland introduced the newly appointed chairwoman of a nine-member sustainability task force, Emily Bockian Landsburg, manager of business development at Philadephia Fry-O-Diesel. "We want to develop a comprehensive, holistic, long-term policy," she said. "We need to address sustainability proactively. There are a lot of myths about the negative impacts of biodiesel. We need to identify any negative impacts and how we can do it better." The remaining members of the task force have not yet been appointed. In describing the challenge ahead she said, "It's extremely complex, with a lot of diverse interests and a need to approach it wisely."
 
 NBB Secretary Graham Noyes of Imperium Renewables Inc. voiced his support for the task force in the opening session panel discussion, pointing to the worldwide debate that erupted over palm oil biodiesel in the past year and the leadership of the Roundtable on Sustainability toward establishing criteria. "I think the sustainability issues are going to carryover into soy and canola," he said. "I think there's an opportunity to get some standards in the international community so there's not a patchwork out there." It can be difficult to combat negative public opinion even when it's baseless, Noyes said. "We at Imperium have taken a lot of criticism for producing palm biodiesel, but we haven't produced any," he said. "To talk about it was enough for folks to start criticizing us. The fact that we decided for sustainability issues, among others, not to go forward with [palm biodiesel] wasn't enough to stop the one-liners." 
 
 The expansion of palm oil production and other feedstock developments have raised concerns about deforestation and land use changes, Bockian Landsburg said. "We need to address those directly, because if we don't, others will, and we'll be reacting," she said. "We need to take a hard look at ourselves as an industry. Are we doing things that are intensifying negative consequences?" She suggested the industry should stress biodiesel's positive attributes such as energy independence, economic development in small communities, energy security, greenhouse gas reductions, its small carbon footprint and energy balance. "If we're shipping feedstocks in, what does that do to our energy independence and our energy balance?" Bockian Landsburg asked. "We need to realize that if we increase those social and environmental benefits, we increase the value of our fuel. True environmental and social sustainability is inextricably linked to economic viability." After the hearty applause following her comments subsided, panel member Gary Haer, NBB vice chairman from Renewable Energy Group Inc. responded, "You're exactly right, we as an industry have to take the initiative in this effort, and I know the membership is fully supportive."
 
 In her brief comments at the opening session, actress Daryl Hannah talked about the perseverance of the organizers of the independent Sustainable Bioidiesel Summit, which has been held prior to the NBB conference the past several years. She applauded the new task force and the inclusion of a breakout session on sustainability in the conference while making an impassioned appeal to the biodiesel industry to take global warming seriously. "We need to educate ourselves in sustainable feedstocks, production and distribution models," she said. "We need to take the lead and rebuild the faith and the promise of biodiesel. If you're not involved in sustainable solutions, you are part of the problem."
 

 Sustainable Biodiesel
 The breakout session on sustainability was one of the best attended the first day of the conference, attesting to growing interest in the issue. Kent Bullard, who created and manages a Web site called SustainableOptions.com and is a member of the Sustainable Biodiesel Alliance, moderated the panel which included K. Shaine Tyson of Rocky Mountain Biodiesel Consulting, Jake Stewart of Organic Fuels Inc. and Lyle Estill of Piedmont Biofuels Inc. 
 
 Tyson, who worked for the National Renewable Energy Laboratory prior to starting her own consulting firm in Colorado, outlined criteria considered in sustainability analysis as well as factors considered by feedstock users. While many look to jatropha as a sustainable feedstock, Tyson wondered whether all factors have been considered such as the oilseed's toxicity, which would make the meal undesirable. "We need to learn more about these risks," she said. Some suggest the meal could be used as a fertilizer. Have the economics of transporting it back to the field and spreading it been considered? Tyson asked. And, though not a food crop, there still is a potential for jatropha to displace small land holders and food crops, she said. 
 
 In contrast to jatropha, Tyson introduced another new alternative biodiesel feedstock, Moringa oleifera. A native to India where 80,000 acres are currently grown, the small tree crop has multiple food uses. Moringa's leaves can be sold for salad. Its meal, seed and leaves are high in essential amino acids and its immature pods, which resemble asparagus, are edible. As a biodiesel feedstock, Moringa yields 3 tons of seed per hectare (1.2 tons per acre), producing 30 percent to 40 percent oil that contains 65 percent oleic acid. Getting food and fuel from a single crop is most desirable, Tyson said. "Moringa looks like the more sustainable crop," she added.
 
 Stewart addressed greenhouse gas reductions and energy balance using numbers published by the Europeans. Those numbers suggest that biodiesel has a good carbon footprint, with a 78 percent carbon dioxide reduction compared with fossil fuels, and a positive energy balance at 3.2:1 for soy biodiesel, Stewart said. The sustainability criteria recently released in the European Union calls for a minimum greenhouse gas reduction of 35 percent, he said. Impacts from land use change are to be included in greenhouse gas calculations, and no material from virgin forests or material associated with high nitrous oxide levels are to be allowed, Stewar said. The EU's sustainability criteria also call for incentives to use idle lands and deserts for feedstock production.
 
 From the perspective of a small biodiesel producer, Estill said, "I always thought of sustainability as free and easy." He championed the benefits of sustainability in the appropriate-scale, grassroots biodiesel world. "The future of energy lies in distributed production," he said. While many in the biodiesel industry are shutting down production, Estill added "at Piedmont our phone still rings with people who want to build small plants." He also reported receiving calls from others who were tearing out biodiesel plants and asking if Piedmont is interested in the tanks. 
 
 Feedstock Development Program
 Several conference sessions addressed feedstock development. The Wednesday session called "Exploring the Possibilities" introduced several promising feedstocks. Roy Beckford of the University of Florida talked about his work in studying jatropha production in southwest Florida. Rafael Hernandez of Mississippi State University briefly covered his work using oil-bearing microbes grown in wastewater treatment facilities as a biodiesel feedstock. Jack Gallagher of the University of Delaware described his studies of seashore mallow as a potential new feedstock. Seashore mallow is a crop of interest because of its high tolerance for saline conditions. Dick Auld from Texas Tech University reviewed the university's work on winter canola, fall-planted safflower and castor oil.
 
 Alan Weber vice president of MARC-IV Consulting Inc., is leading the NBB's feedstock development program, where he is in the process of compiling a summary of alternative feedstocks and assembling an industry-manned advisory board for the effort. "We're looking for areas where a trade association might have a role to speed along the development of these feedstocks," Weber said. Using camelina as an example, at least two private firms in Montana and the Pacific Northwest are currently working to establish the new crop as a biodiesel feedstock, he said. In the future, NBB as a trade association could assist with feedstock development efforts by addressing the broader issues that need to be resolved, such as working with federal agencies to make crop insurance available, and getting herbicides registered under small acreage programs or helping to facilitate feeding trials for the meal coproduct.

 
 Feedstock development isn't just about developing new crops. The feedstock development program is working with the Danforth Plant Sciences Center, a nonprofit research center in St. Louis, to develop breeding methods that increase the oil content of oilseed crops without negatively impacting the meal's protein, Weber said. The program also expects to begin a working relationship with the St. Louis-based Center for Evergreen Energy to create an international think tank around biofuels feedstock development, expanding the model established to study and promote sustainability in feedstocks to cover other aspects of feedstock development. 
 
 Susanne Retka Schill is a Biodiesel Magazine staff writer. Reach her at <a href="mailto:sretkaschill@bbibiofuels.com">sretkaschill@bbibiofuels.com</a> or (701) 738-4962.

Roy Beckford, Lee County, Fla., extension agent, has already learned one important thing from this test plot - jatropha will withstand frosts. These three-month-old plants dropped their leaves after eight hours of 27 degrees Fahrenheit, but recovered

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Actress Hannah advocated a sustainable approach to biodiesel as a critical need in the face of global warming issues.

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The NBB's feedstock development program will review new feedstocks such as camelina, pictured above, to find ways for the trade association to assist in development efforts.

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Feedstocks, and better yet, sustainable feedstocks, were hot topics at the National Biodiesel Conference & Expo.

Feedstock Development and Sustainability

Researchers at the University of Idaho, in cooperation with the USDA, found that biodiesel produces 3.5 units of energy for every one unit of fossil energy needed to produce the fuel over its life cycle. Prior to this study, the accepted ratio was 3.2-to-1, a number developed in 1998 by the U.S. DOE's National Renewable Energy Laboratory and the USDA in the first comprehensive life cycle analysis of biodiesel. The same study found petroleum diesel to yield 0.83 units of energy for every unit of fossil energy consumed.
 
 The reason for the increase is that yields and technologies are becoming better, explained Assistant Professor Dev Shrestha, who collaborated on the project with Jon Van Gerpen, department head of biological and agricultural engineering, and graduate student Anup Pradhan. The study was based on biodiesel production from soybean oil, similar to the 1998 study. According to the National Biodiesel Board, the new analysis is more comprehensive than previous work; it even includes the energy required to manufacture the farm machinery used to produce soybeans.
 
 For more than three years, the researchers collected data from the USDA agricultural survey reports published by the USDA Economic Research Service, as well as from some industry surveys and literature, Shrestha explained. The data was incorporated into the biodiesel plant process model developed by the USDA Agricultural Research Service and trademarked as SuperPro Designer Model. 
 
 They found national soybean yields had increased at the rate of 0.6 bushels per acre per year, based on yield data from 1975 to 2006. Meanwhile, since 2000, the fertilizer application rate has essentially remained the same, and the herbicide application rate has declined to one-fifth of its previous rate. Reduced herbicide applications mean that less diesel is required for field spraying.
 
 Shrestha told Biodiesel Magazine he plans to update the carbon balance of biodiesel next.

Van Gerpen, center, and Shrestha, right, announce the results of their biodiesel energy balance study at the National Biodiesel Conference in Orlando, Fla., in February. 

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Study shows increased energy balance

A new biofuels training consortium aims to meet the demand for new "green collar" jobs, expected to reach more than 240,000 full-time positions by 2015. Two Iowa community colleges received a U.S. Department of Labor grant to conduct extensive industry research and visit production facilities to develop job guides and curriculums. The two colleges-Kirkwood Community College in Cedar Rapids, Iowa, and Indian Hills Community College in Ottumwa and Centerville, Iowa-formed the Iowa Biofuels Training International consortium, which was unveiled at the National Biodiesel Conference in Orlando, Fla., in early February.
 

 IBTI Executive Director Joe Brehm explained that the program will coordinate training programs using resources from multiple partners. "For example, it is possible that no individual training partner currently offers all the necessary training for a laboratory technician," he said. "However, all the training resources for this position might currently be available from three different training partners." The IBTI would find the necessary training components and coordinate them. It would also develop regional training programs to reduce travel costs for participants. Training will be provided for plant operators, supervisors, and laboratory and maintenance technicians. As the biodiesel industry grows, new curriculums will be developed. The consortium's long-term goal is to provide additional resources, including textbooks, learning modules and online courses, according to Brehm.
 
 The program aims to develop a training network, tapping into resources from community colleges, four-year academic institutions, and product and systems experts. Particular courses and programs will be certified and approved by the IBTI advisory board, which will consist of training partners, industry representatives, contracted trainers and other biofuel experts. The IBTI is recruiting training partners now. Industry representatives or product vendors will be recruited to become part of the IBTI network based on expertise and industry training needs.
 
 Renewable Energy Group Inc. was tapped in the early stages of the IBTI's formation to help create training guides for biodiesel workers. "Working with the IBTI to develop biodiesel training curriculums aids the biodiesel industry in recruiting and retaining qualified candidates, reducing the amount of time it takes to get new employees up to speed and working to their full potential," said REG Chairman and Chief Executive Officer Jeff Stroburg. REG trained more than 100 employees to work in seven biodiesel production facilities in 2007.
 
 People interested in becoming an IBTI advisor, expert trainer or developer of a certified curriculum can do so through the IBTI's Web site at <a href="http://www.biofuelstraining.org">www.biofuelstraining.org</a>. 
 
 -Susanne Retka Schill

IBTI Executive Director Joe Brehm, right, speaks with a reporter In Orlando, Fla., at the February press 

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IBTI boosts biofuels training

On Dec. 20, Lake Erie Biofuels LLC, a 45 MMgy biodiesel plant in Erie, Pa., shipped what it considered the first-ever load of biodiesel via the Great Lakes. The 1.5 million gallons of renewable fuel were sent through the Welland Canal on the St. Lawrence Seaway two days before shipping lanes closed for the winter. The Clipper Tobago carried it across the Atlantic Ocean to Rotterdam, Netherlands, arriving two weeks after leaving Erie.
 
 Plant Manager Mike Nobel said the company's biodiesel is transported via rail to the East Coast after the shipping lanes close for the winter. Canal lock closures generally last approximately three months, and Nobel expects them to reopen by early April. The company plans to use the Great Lakes shipping system as much as possible. Ships traveling on the Welland Canal are loaded less than a mile from Lake Erie Biofuels, so a significant cost savings is expected for the company. Vessel size poses the only limitation when using that shipping method; ships are restricted to a maximum capacity of 1.5 million gallons on the Welland Canal.
 
 Nobel said most of the plant's current volume is sold in Europe. "Our preference is to sell domestically, but right now the European market is much more developed than the biodiesel market in the United States," he said. "In order to keep our plant running at high volume, we need to export shipments." Lake Erie Biofuels sells its fuel to brokers, so the end-users are unknown.

Employees and business partners of Lake Erie Biofuels celebrate the first shipment of biodiesel via the Great Lakes in December.

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Pennsylvania plant exports via Great Lakes

Kings of the road can now be green giants. 
 

 Iowa-based Renewable Energy Group Inc., a major biodiesel producer and marketer, has unveiled a Retail Blending Biodiesel Program that will make biodiesel more accessible to truckers fueling up across the country. REG will provide subscribing fuel retailers with a dependable supply of biodiesel, an injection system that will blend biodiesel with regular diesel at the pump, automated reordering capabilities and a remote monitoring system to ensure a steady flow of vegetable-based fuel. "We did this to give retailers and truckers an incentive to use biodiesel," said Gary Haer, vice president of sales and marketing for REG. "It provides a way for retailers to offer biodiesel blends without having a terminal nearby. It gives the retailer the capability of putting in his own biodiesel-distribution system."
 
 Haer said demand has been brisk since the program was presented at the National Association of Truck Stop Operators Show in January. Haer said truck-stop operators are simply responding to demand from customers who want to be environmentally responsible but can't find biodiesel blends along their travels.
 
 The blending system, integrated into a truck stop's fuel injection pump, will be managed by the retailer and will offer the flexibility of changing blend levels according to customers' general desires. Haer said blend levels could be changed daily, or retailers could employ two separate systems with two steady blend levels.
 
 Haer admitted that REG may be bucking a "gloom and doom" trend in the industry. "There's no question it's a challenging market right now, but I think we're optimistic about the future of the business," he said. "It's a great product supported by public policy, as well as consumers, and it's a domestically produced renewable fuel made right here in the United States."

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Truck stop technology to offer biodiesel blends

Chula Vista, Calif.-based research company Green Star Products Inc. acquired a license in late January to utilize a breakthrough processing technology that can convert algae oil and cellulose sugars into biodiesel and cellulosic ethanol, respectively. 
 
 According to GSPI President and Chief Executive Officer Joseph LaStella, the process uses an efficient, low-cost method to extract the oil and cellulose sugars from oil-bearing microalgae. The novel technology also eliminates the need to mechanically dry and press-extract the algae oil. According to LaStella, approximately 80 percent of algae oil is comprised of carbohydrate-rich cellulose and hemicellulose that can be used to produce a variety of products, including biodiesel and cellulosic ethanol. "GSPI, along with a handful of other high-tech companies, are leading the industry in algae commercialization," he said. "However, there are two major hurdles to overcome: first, an efficient, affordable construction and processing method to control the environment to promote optimum algae growth; second, efficient harvesting and oil extraction from the microscopic algae biomass."
 
 GSPI secured the technology license from Biotech Research Inc., which developed the patent-pending process that continuously strips oil from the algae and breaks down the biomass into carbon-chain carbohydrates, proteins and other components.
 
 GSPI's licensing of the technology followed a successful testing trial at its hybrid algae production facility in Butte, Mont. Data collected from the 10,500-gallon demonstration facility revealed that the algae not only survived, but also managed to grow in severe Montana winter conditions. According to LaStella, the testing method had never been attempted nor accomplished by any other research organization.

Green Star Products acquires algae license

New and expanding markets, pipeline transportation issues, and lingering quality concerns were all highlighted during educational tracks at the 2008 National Biodiesel Conference & Expo in Orlando, Fla., in February. Compared with petroleum, biodiesel is young, with one-sixth the maturity in all respects. Global distribution practices will not change for biodiesel. Instead, biodiesel supporters must do their best to convince the oil industry that it should carry and sell the renewable fuel while minimizing obstacles to mainstream incorporation. As Ed English with Fuel Quality Services Inc. said, "The biodiesel industry is four hours old on a 24-hour petroleum clock." 
 
 At the conference, fuel oil distributors and bio pushers alike diligently advocated Bioheat, even if it was just to green-up oil heat's dirty image. "We're a stodgy old industry," said Vick Turk with R.W. Beckett Corp., a popular oil burner manufacturer. Don Allen with E.T. Lawson & Sons serving eastern Virginia, didn't mince words when he said, "You'd have to have a hole in your head as an oil heat dealer to not sell this product. All of us, as oil heat dealers, want it." Oilheating Journal publisher Don Farrell told listeners fuel oil suffers in the public eye from petroleum's bad image, especially as the growth of a collective environmental consciousness takes climate change, and the role petroleum plays in it, very seriously. "Perception is reality," Farrell said. Bioheat has the ability to change people's perception of oil heat, thereby changing reality. Michael Devine of Devine Bros. Inc., said oil heat is simply not conducive to today's eco-friendly language. He differentiated his company from the thousands of other heating oil distributors by saying, "I'm not in the fuel oil business-I'm in the Bioheat business." Even though Farrell spoke to the challenges distributors might face when deciding to carry Bioheat-improper blending due to a lack of adequate equipment and infrastructure, and with the high cost of biodiesel a bio blend would only add to the cost of an already expensive product-Devine addressed Farrell's points. "Oil heat companies today are not distinguishable from each other," said Devine, excluding his own business from the claim. He said Devine Bros. has built its reputation and retained a loyal customer base on one very important distinction: selling a greener, cleaner product. Devine tells his employees they are part of something different. What about Bioheat's slightly higher price? "If I'm not being shopped as a commodity, three more cents a gallon for Bioheat is nothing," he said. 
 
 Devine detailed what he has found to be the most successful marketing tools employed at Devine Bros., and at the top of the list was building a good Web site. "Everything we want to do from a marketing standpoint, we want to do through the Web site," he said. Secondly, distributors wishing to model Devine's success should develop positive public relations campaigns. Lastly, Devine said he does a lot of public speaking himself to get the word out about Bioheat's benefits to potential customers.
 
 Seventy-three percent of the U.S. heating oil market resides in the mid-Atlantic and Northeast regions. A statewide B5 oil heat mandate in New York State alone would mean an immediate market for 123 MMgy of B100. Farrell said the demand for a national B5 mandate in heating oil sales would equate to approximately 450 MMgy in B100-more than the industry produced in 2007. Before a national mandate can be considered though, the biodiesel industry needs a 5 percent bio allowance in the petroleum heating oil specification, ASTM D396. Experts predict this will be accomplished in June when ASTM meets. It will join the B5 in D975 measure, along with a standalone B6 to B20 specification, all three of which are tied to the passing of a test method for B100 designed to regulate the formation of solids above the cloud point. Once voted into the respective ASTM specs, however, an allowance of up to 5 percent bio in petroleum diesel without disclosure will represent a milestone needed to progress with a national B5 standard-whether that's with on-road diesel fuel or heating oil. 
 

 Even though B5 Bioheat could open up a 450 MMgy methyl ester market, some question why higher percentage bioblends are not receiving the same promotional efforts. The Bioheat trademark has no upper limit on bioblends, but Farrell said B5 "works technically, and is available realistically." Turk also said higher biodiesel blends can lead to inconsistencies in the atomizing nozzles on the burner, increasing pressure. Ultimately this would require adjustments to the air levels in fuel:air ratios, as opposed to the seamless utilization of B5. The experts have also warned users that higher blend ratios should minimize contact with yellow metals (copper and brass) in the heating system. Copper speeds up peroxide formation in biodiesel, English said. 
 
 Avoiding yellow metals was one of five tenets Turk suggested users live by. The other four considerations were: know one's fuel (insist on certification); use additives in the summer months when the fuel sits stagnant in tanks enduring high temperatures and conditions suitable for microbial growth; routinely check tanks for the presence of sludge and water; and periodically observe and change filters to avoid clogging. English explained how microbes attack biodiesel, going after the CH3 methyl group and leaving behind free fatty acids. Even though Bioheat supporters are cautious to advocate blends higher than 5 percent, several audience members attested to using higher blends in Beckett oil burners without incident. 
 
 Transportation
 Bioheat shows promise in expanding markets in the otherwise petroleum-dominated oil heat industry, but continued investigations and trials are underway to better understand the issues with pipelining biodiesel, and what is needed to overcome obstacles. 
 
 T.J. Zeth with Buckeye Partners LP, owner/operator of 5,400 miles of pipeline and 51 product terminals, said fuels entering a pipeline system must be fungible for indistinguishable commingling of like product. Biodiesel is not considered fungible. "This is essential for our system," Zeth said. "It allows us to enhance capacity. With all hand-offs, pipelines need to work together on how to treat movements. The biggest concern with biodiesel is the trail-back on jet fuel. Jet fuel quality is something we take very seriously here at Buckeye," which supplies major airports with jet propellant. Pipeline operators sequence fuels, meaning certain quantities of like fuels (i.e. ultra-low sulfer diesel) are shipped with interfaces between the movements of, for example, red-dye high sulfur diesel and JP-8 jet fuel. The interface naturally absorbs a little of each fuel that it separates, after which it would then be integrated or blended down into the product of lesser quality. The jet engine manufacturers have yet to establish a definition of "zero" fatty acid methyl ester (FAME), likely meaning a single-digit parts-per-million (ppm) maximum biodiesel allowance. "If it's set at 5 ppm, then anything above that we will consider contamination," Zeth said. The problem, however, is that there is no known or commercially available low-level FAME test to read single-digit ppm concentrations. 
 
 Zeth also alluded to data from a study presented at the International Association for Stability, Handling and Liquid Fuels Inc. conference in October, in which JP-8 with as much as 400 ppm FAME caused no adverse effects in jet engines. He also spoke of a test done by French pipeline operator Trapil, which moved biodiesel in a 20-inch pipeline and found disappointing results with regard to FAME trail-back in jet fuel. The investigation used a control sample where jet fuel was piped followed by regular diesel. The test case was jet fuel followed by B10 with 20 percent larger interface than used in the control. With the significantly larger interface biodiesel trail-back was still detected in the JP-8. 
 
 Lest anyone thinks the measure to allow B5 in ASTM's petroleum-diesel spec will ensure pipelining of bio, not so said Zeth. "We need more trials," he invoked. "We need better testing, and we need to get the jet fuel experts involved." Most cuts of fuel are measured by a densitometer, but Zeth said he's not confident FAME trail-back could be measured with such devices. It was also mentioned that pipeline operators don't test for the presence of biodiesel. An audience member asked how they knew B5 was present if it wasn't tested for. "Well, we don't test for mayonnaise either-people just don't put it in there," said Mike Reed with Northville Product Services LP. 
 
 Reed said his company has moved B5 and B20 blends in its pipelines. In 2006, Colonial Pipeline lost money when it tested two bioblend batches in a pipeline. Colonial is owned by several oil companies and is considered a relief valve for Gulf Coast refineries. Reed said the Colonial line may expand between Atlanta and Baton Rouge, La., at a projected cost of $2 billion. "Oil companies don't see biodiesel as an equal or better product, and the majors don't enjoy mandates," Reed said. He mentioned recent successes in Spain (Repsol YPF, S.A.) pipelining biodiesel, and advocated learning from those cases instead of trying to recreate the wheel. 
 
 Quality

 Some people have suggested that the cold soak filtration test (CSFT) may not catch all of the insoluble impurities in biodiesel. Charlie Selvidge with Koch Industries Inc. said monopalmitates, monostearins, and monooleins, which can have melting points as high as 170 degrees Fahrenheit, could lead to filter clogging well above the cloud point temperature of the biodiesel. "In the vehicle these aren't really a problem because when it warms up, they dissolve," Selvidge said. "But not so at the refineries." Selvidge acknowledges the CSFT can catch most mono and diglycerides-mostly products of incomplete processing-but even B100 passing the CSFT in a B2 blend appeared to phase separate and clog refinery filters with inordinate concentrations of these three impurities. 
 
 Scott Fenwick with Archer Daniels Midland Co. presented results from tests done on distilled soy biodiesel. Samples were spiked with sterol glucosides and soaps. He concluded that the CSFT is strongly affected by sterol glucosides and soaps, whereas just water and soaps decreased filtration times-the water made the soaps more soluble. He also said monoglycerides or saturated monoglyceride content could not be correlated with filter times, and that it is more important to monitor sterol glucosides and soaps. 
 
 
 Ron Kotrba is a Biodiesel Magazine senior writer. Reach him at <a href="mailto:rkotrba@bbibiofuels.com">rkotrba@bbibiofuels.com</a> or (701) 738-4962.

Select speakers at the National Biodiesel Conference discussed ways to expand market and transport options for U.S. biodiesel while keeping a close eye on quality, all in the attempt to gain acceptance in the mainstream petroleum infrastructure.

The Fourth Hour

Defined as a substance that takes up space and has mass, matter in its simplest form consists of particles that combine to form all the elements regarded as the building blocks of the physical world; things such as carbon, nitrogen, oxygen and hydrogen. As most people with a basic science background know, matter comes in three main phases: solids, liquids or gases. Several factors determine the phase in which a molecule exists, including temperature and pressure. Changing these factors, in particular, changing the temperature shifts a substance from one phase to another. Heat a solid ice cube in a cooking pot, for example, and it quickly melts forming a liquid. Boil that liquid further and it eventually evaporates forming a gaseous water vapor.
 
 When pressure is factored in, however, a new phase of matter can be reached. By increasing both the temperature and the pressure, a critical point is obtained at which gases and liquids are indistinguishable fluids. Matter that exists in this new phase is called a supercritical fluid (SCF). These fluids exhibit properties of both a liquid and a gas: they can penetrate solids like a gas and dissolve materials into their components like a liquid. In addition, small manipulations of temperature and pressure result in changes in the density of the SCF. Taken together, these "tunable" fluid properties make SCFs suitable solvents for a range of chemical and biological applications. Supercritical carbon dioxide, for instance, is an established industrial solvent for dissolving caffeine in the decaffeination of coffee and tea. 
 
 Now, researchers at the University of Arkansas report that using supercritical methanol in the biodiesel production process shows promise for the economic conversion of low-quality feedstocks like chicken fat and tall oil fatty acids (TOFA). "Bascially, methanol at supercritical conditions becomes an excellent solvent and dissolves the feedstock so that the molecules of the reactants are in close proximity of each other and therefore react readily without a distinct catalyst," explains Robert Babcock, a chemical engineer at the University of Arkansas. Although Japanese scientists first reported the use of supercritical methanol for the conversion of rapeseed-oil-to-biodiesel in 2001, this new work likely represents the first published data making use of supercritical methanol for the conversion of chicken fat or TOFA to biodiesel, Babcock says. Tall oil is a byproduct of pulp and paper milling that can be distilled to a mixture of nearly pure free fatty acids (FFAs). Feedstocks with a high FFA content are considered low quality.
 
 Figure 1
 <center><img src="/images/upload/20080317041456.jpg" alt="" />

 Phase diagram of methanol showing the point where it becomes a supercritical fluid
 SOURCE: BRENT SCHULTE, UNIVERSITY OF ARKANSAS</center>
 
 The U of A study represents Babcock's graduate student, Brent Schulte's master's thesis. Recognizing that the price per gallon of biodiesel is dominated by feedstock costs and that conventional, base-catalyzed transesterification doesn't work well on the high FFA content typical of cheaper, lower-quality feedstocks, Schulte-with Babcock's guidance-decided to focus his research on alternative production processes. "I spent quite a bit of time investigating other potential methods of biodiesel production, including chemical catalysis, enzymatic catalysis and supercritical methanol treatment," Schulte explains. "Each has a set of advantages and disadvantages. Bottom line, supercritical methanol treatment is a very robust process." However, "the tradeoff is the higher temperature and pressure requirements," Babcock says. "From a safety standpoint, this process is not something people can be doing in their garages." 
 
 For each experimental trial, the reaction time and pressure were held constant at 20 minutes and about 1,650 pounds-per-square-inch respectively. On the other hand, a range of reaction temperatures and ratios of methanol to feedstock were tested because, according to Schulte, these two parameters have been identified as the most important with regard to the cost of large-scale production of biodiesel using a supercritical methanol treatment. Temperatures varied from 275 to 325 degrees Celsius (527 to 617 degrees Fahrenheit) while the ratio of methanol to chicken fat or TOFA ranged from 10:1 to 40:1.
 
 The chicken fat was acquired from Tyson Foods Inc. in Scranton, Ark. It was a lower-cost chicken fat that contained about 12 percent FFA. The TOFA came from Georgia-Pacific's pulp and paper mill in Crossett, Ark. After liquefying the feedstock, weighing it and pouring it into a two-liter, stainless steel reactor, water was added in part to take up volume to help achieve the desired pressure, Babcock explains. In addition, there is some evidence that the presence of water in a limited amount improves the yield of the reaction, he says. Methanol was the last reactant to be added before the reactor was placed in a heater assembly and the temperature increased. After letting the reaction run for 20 minutes, the reactor was cooled and the contents were removed for analysis. 
 
 <center>Comparison of various biodiesel/diesel substitute production methods
 <img src="/images/upload/20080317041802.jpg" alt="" />
 SOURCE: BRENT SCHULTE, UNIVERSITY OF ARKANSAS</center>
 
 The reactor soup consisted of methyl esters, glycerol, water and any methanol and feedstock that didn't react. The density differences between these various layers of products allowed for the easy separation of the biodiesel from the other components. Overall, the U of A researchers found that these low-quality, high-FFA feedstocks can be converted to biodiesel in a single step with yields exceeding 89 percent for chicken fat and 94 percent for TOFA. 
 

 Interestingly, compared with chicken fat, less methanol was required for the TOFA conversion, which greatly decreased the cost. The team also successfully tested the conversion of a mixture of chicken fat and TOFA. In this case, however, a two-step process worked the best; the first being a hydrolysis step that liberated any FFAs from the triglycerides while the second was a supercritical methanol step for the production of biodiesel.
 
 Finally, Babcock and Schulte tested cold flow properties of the resulting biodiesel and found that the viscosity of the fuel exceeded ASTM D6751 specifications for biodiesel suggesting that the widespread, commercial use of biodiesel made from a supercritical methanol treatment would require blending with a biodiesel fuel made from a feedstock like soybean oil. "The most significant finding of this work is that a process exists that can convert not only lower cost feedstocks like chicken fat and tall oil fatty acids into biodiesel, but that same process can convert these very different feedstocks at the same time," Schulte says. "Hopefully, my research helps those in the biodiesel industry think even more 'outside-the-box.' There are other materials we can utilize for biodiesel production and I've verified some."
 
 Although Schulte was awarded his master's of science in chemical engineering and now works as a field completions engineer with Southwestern Energy Co. in Conway, Ark., Babcock plans to continue the work. "Our work adds to the mounting data bank on the biodiesel reaction," Babcock says. "It is not the economic breakthrough that everyone is looking for but hopefully it may lead to such a breakthrough." To that end, Babcock's team hopes to obtain additional funding to study crude tall oil and algae oil as a feedstock. The tall oil used in this initial research was refined crude tall oil, which Babcock explains is an economic constraint of the supercritical methanol process. "The refined tall oil has a value of almost as much as biodiesel," he says. "If we could develop the process to the point of using crude tall oil as a feedstock then the economics of the process improve drastically." In addition, Babcock wants to conduct comparative economic studies of the various processes being employed to make biodiesel. 
 
 Jessica Ebert is a Biodiesel Magazine staff writer. Reach her at <a href="mailto:jebert@bbibiofuels.com">jebert@bbibiofuels.com</a> or (701) 738-4962.

Admiral Jack Buffington, left, director of the Mack Blackwell Rural Transportation Center at the University of Arkansas, presents Schulte with the first place award for his thesis work in biodiesel 

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The high-temperature, high-pressure reactor used in the University of Arkansas study.

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University of Arkansas researchers find that using supercritical methanol in the biodiesel production process could alleviate some of the challenges to the cost-competitive production of the fuel.

Supercritical Methanol for Biodiesel Production

Climate Change Central, an Alberta public-private, nonprofit organization that facilitates collaborative projects among government, industry and consumer groups, recently announced the launch of the country's largest cold-weather, on-road demonstration of renewable diesel and biodiesel. 
 
 The Alberta Renewable Diesel Demonstration is a response to the federal government's announcement of plans to implement a renewable fuels standard requiring diesel fuel to contain a 2 percent renewable blend by 2012. The standard is dependent on the successful demonstration of renewable diesel and biodiesel use under a range of Canadian conditions.
 
 To that end, Climate Change Central partnered with Shell Canada, the Canola Council of Canada, the Canadian Petroleum Products Institute, the Canadian Renewable Fuels Association and Canadian Bioenergy Corp., and gathered samples of renewable diesel and biodiesel from a cross section of producers. The samples were tested at the Alberta Research Center using a suite of ASTM International and Canadian General Standards Board quality tests, as well as some additional cold-weather performance parameters, explained Adam Gagnon, program manager of transportation and energy efficiency at Climate Change Central. From the results of these tests, Neste Oil Corp. was chosen to supply renewable diesel for the demonstration, while Milligan Biotech, a biodiesel producer based in Foam Lake, Saskatchewan, was chosen to provide biodiesel. 

 
 Climate Change Central built a pulse-injection blending facility at Shell Canada's Sherwood Terminal in Edmonton, Alberta, and set up distribution points at three Flying J stations and one of the participating fleet yards. Four to five fleets are now on board, accounting for a group of 60 to 70 trucks in a range of sizes and applications from school buses to long-haul commercial carriers, Gagnon said. The demonstration started in late 2007 and will run through October. The two fuels will be monitored in parallel for volume consumed, distance traveled, and the frequency of fuel filter and oil filter changes. "This is basically a demonstration to prove the operability across the cold-weather months," Gagnon explained. "Things are going very well. We've had some pretty serious weather here over the past couple of weeks but have had no operational difficulties."

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Alberta hosts renewable diesel, biodiesel demonstration

Two years ago when Phoenix-based fuel supplier Pro Petroleum Inc. began splash-blending biodiesel for its own use, company Director of Operations Mike Mathers was opposed to switching to the renewable fuel. Later, he became a proponent of biodiesel, which led to the company's "state-of-the-art" automated tank truck loading rack that allows the company's 43 trucks to refuel quickly and accurately. Pro Petroleum is now the largest supplier of biodiesel in the state.
 
 "About a year ago, I went to all the big names I was aware of in the fuel-dispenser industry and said I want a pump that lets me basically dial in a specific blend," Mathers said. "The feedback I got from the representatives of all these companies was, 'We don't have something that does that for biodiesel or diesel.'" So Mathers bought control valves and meters to tie into the load rack automation system, and by the summer of 2007, biodiesel was being injection-blended on-site with the terminal automation system controlling it. 
 
 For tax purposes, the company recently switched from a maximum blend of B100 to B99.9. "Typically, all of our blends are between B2 and B20, with B20 being the most popular recipe," Mathers said. 
 
 Pro Petroleum operates a transportation fleet of 43 trucks, which all run on B20.

Gary Alkire, right, project manager for Pro Petroleum, gives a tour of the Phoenix facility to Leland Tong, chairman of the National Biodiesel Accreditation Commission.

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Pro Petroleum creates automated loading rack

One of the many highlights at the National Biodiesel Conference and Expo this year was the announcement by NBB Chairman Ed Hegland of his appointment of Emily Bockian Landsburg to chair a newly-formed Sustainability Task Force. Emily has a strong background in renewable energy and sustainability, including volunteering her time as an organizer of the Sustainable Biodiesel Summit. Emily works for the Energy Cooperative in Philadelphia, which is dedicated to producing high-quality biodiesel from trap grease. 
 
 Immediately following the conference, Emily and Ed launched a search for the remaining eight task force members who should be seated about the time this article goes to print. 
 
 The meaning of sustainability as it pertains to biodiesel is as wide-ranging and diverse as the membership of the NBB. Ed and Emily were determined to appoint task force members who would represent all these viewpoints and who can help develop and recommend policies which will address issues of sustainability for our industry. Such stakeholders will include farmers, small and large biodiesel producers representing the variety of feedstocks used in biodiesel, and other NBB members with in-depth knowledge of safety, environmental practices and sustainable economic models. Partnerships will also be established with external groups through an advisory committee that will provide an even wider range of expertise to the task force. 
 
 Biodiesel has great potential for making our way of life more sustainable. Soy-based biodiesel, which still represents 80 percent of the biodiesel made in the United States, reduces greenhouse gas emissions 78 percent. Improved farming practices in recent years have resulted in an energy balance that is now 3.5-to-1 for biodiesel-higher than any alternative fuel. There is no doubt that domestic production of fuel makes America more sustainable in terms of economics and energy security. 
 
 It is my hope that the Sustainability Task Force will help shine the spotlight on the peer-reviewed studies that prove these benefits and bring scrutiny to ill-informed alarmists that cloud public perception with statements that are not supported by accurate analysis. I'm referring to recent media buzz about biofuels stimulating harmful land use changes in remote parts of the globe. Destruction of the rain forest and loss of wildlife habitat is a disaster that concerns us all. Biodiesel produced in the United States is grown on domestic acreage that, according to USDA reports, has not increased since 1959. The Sustainability Task Force will examine the potential for land use change and identify ways that this industry can prevent or reverse such threats to sustainability. 
 

 As an industry whose goal is to help contribute to our nation's sustainability, it is important that we take a leadership role in developing practical and meaningful policy which will lead to comprehensive sustainability.
 
 Sincerely,
 Joe Jobe
 NBB CEO

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Biodiesel and Sustainability: You Can't Have One Without the Other

Sustainability and feedstock development were the buzzwords at the fifth annual National Biodiesel Conference & Expo in Orlando, Fla. A diverse cross section of biodiesel stakeholders from around the world attended the Feb. 3-6 event. Industry leaders predicted that biodiesel will grow to 1 billion gallons per year in the United States in the next few years and turned their attention to sustainability issues and developing the next generation of biodiesel.
 
 The conference's Feb. 6 general session and several educational sessions focused on efforts to ensure a cost-effective, high-yielding and diverse feedstock supply. With instabilities in both the agricultural and energy markets, prices for biodiesel have been on the rise. The NBB has launched a feedstock development initiative that will explore potential new sources for biodiesel as well as advancements in current feedstocks. Panelists discussed the future of algae as a potential feedstock, and Solazyme, a biotech company, showcased its algae-derived biodiesel fuel in an unmodified Mercedes Benz C320. 
 
 "We're entering a new and challenging era for the biodiesel industry," said Joe Jobe, NBB CEO. "It is critical that we take opportunities to broaden the way we look at the industry. 
 
 We must make sure our feedstock supply can meet the growing demand for high-quality biodiesel in environmentally-sustainable ways. The conference was so successful because we did our best to include all voices on critical issues, including a focus on regulatory priorities."
 
 The conference featured multiple educational tracks covering fuel production, technical updates, fuel distribution, policy/regulations, markets and users, as well as auto and engine manufacturer sessions. 
 
 Other conference highlights included a sold-out trade show featuring the field's latest products and services. Through composting, waste reduction, recycling and carbon neutrality, the NBB's greening of the conference stayed true to biodiesel's environmentally friendly nature. Plates used at the conference were made from sugarcane and cups were made from corn, both of which were composted and used in Disney gardens.

 
 Actress Daryl Hannah and astronaut Jim Lovell spoke during general sessions.
 
 In an effort to support the local community, children from the Boys and Girls Club of Central Florida (Osceola Branch) were invited to help stuff bags with conference materials for attendees, as well as to watch a biodiesel video. Conference coordinator BBI International donated $2,000 to the club.
 
 Approximately 3,600 people attended the conference. The following sponsors helped to make this landmark event possible: Biofuels Automation, Core Ventures, Croplan Genetics, Evonik Degussa Corp., New Holland, NewMech Companies Inc., Renewable Energy Group Inc., SSOE Inc., StarSupply Renewables and World Energy Alternatives.
 
 For more details on the conference, including a link to the conference blog with audio links and photos, visit <a href="http://www.biodieselconference.com">www.biodieselconference.com</a>

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Conference gears up for continued growth, greater diversification

The National Biodiesel Board recently welcomed the U.S. EPA publication of the new 9 billion gallon Renewable Fuel Standard (RFS) for 2008.
 
 NBB CEO Joe Jobe explained how biodiesel is an important component and a huge value to the current domestic petroleum marketplace. "In 2008, we anticipate the domestic biodiesel industry will produce more than 500 million gallons or at least 750 million worry-free renewable identification numbers (RINs), which can be used by the petroleum sector to meet its renewable fuel requirements in both 2008 and 2009," he said.
 
 The petroleum sector is preparing for compliance with the updated RFS and must secure enough infrastructure to move renewable fuels in the marketplace. All RINs generated in 2008 will exceed the minimum lifecycle analysis of 20 percent, which according to Congress, is required to carry a renewable fuel RIN into 2009. 
 
 "Biodiesel RINs offer 'safe' RINs for the petroleum industry," Jobe said. "First, biodiesel will exceed the 20 percent lifecycle greenhouse gas reduction requirements for the base renewable fuel mandate in 2009. In fact, according to a USDA/DOE lifecycle study, soy-based biodiesel has a 78 percent carbon dioxide reduction. Second, biodiesel can be used in 2008, and the RINs can be safely carried forward to 2009, which means the RINs can be sold or purchased without fear of whether or not they will be valid."
 

 The EPA published a Federal Register notice on Feb. 14 announcing that 9 billion gallons of renewable fuels are going to be required to meet the 7.76 percent RFS in 2008. The Clean Air Act, as amended by the Energy Independence and Security Act of 2007 (EISA), requires the EPA Administrator to annually determine an RFS. It applies to refiners, importers and certain blenders of gasoline. On the basis of this standard, each obligated party determines the volume of renewable fuel that it must use. This standard is calculated as a percentage, by dividing the amount of renewable fuel that the act requires to be blended into gasoline for a given year by the amount of gasoline expected to be used during that year.
 
 In 2007, the U.S. biodiesel industry produced nearly 500 million gallons of high-quality, clean burning, sulfur-free biodiesel, with a RIN value of approximately 750 million "ethanol-equivalent gallons."

Biodiesel offers safe, affordable RINs for '08-'09

Florida is a natural paradise for birds, animals and people, with more than 70 million annual visitors and 17 million residents. Many companies and government fleets have turned to biodiesel to help them protect the state's delicate ecosystem and keep it healthy for future generations. The National Biodiesel Board recognized NASA, Florida Power & Light and Universal Studios as leaders in biodiesel use and education at the National Biodiesel Conference & Expo at the Gaylord Palms Resort in Orlando, Fla., in early February.
 
 Universal Studios announced that biodiesel will be used in its resort water taxis as well as the 50-plus ground-based vehicles already running on a B20 blend. The Orlando theme park has adopted biodiesel to lower diesel pollutants, such as particulate matter and carbon monoxide. The smell and black smoke typically emitted from diesel vehicles will be greatly reduced as Universal Studios pumps B20 into all of its diesel-powered vehicles, including the JAWS ride boats. The results are an improved guest experience and an estimated reduction of carbon dioxide emissions by 158 tons per year. 
 
 "We care about the environment and we want to do the right thing," said David Winslow, NBC Universal's senior director of engineering and environmental sustainability technical services. "The use of biodiesel reduces our engine exhaust emissions and overall carbon footprint. Our biodiesel fuel program affects what our guests see and experience. All of this makes a positive difference." 
 
 Florida is considered a prominent biodiesel state. At the annual awards presentation held during the conference, the NBB recognized NASA and Florida Power & Light for their leadership as biodiesel champions. Other high-profile users include Walt Disney World and Orlando International Airport. The state is also home to two biodiesel processing plants. Agri-Source Fuels operates a 30 MMgy capacity plant in Dade City and Purada Processing LLC operates an 18 MMgy plant in Lakeland.

Universal Studios announces expansion of biodiesel use

Orange County, Fla., Mayor Richard Crotty and country music star Michael Peterson helped kick off the National Biodiesel Conference Ride-and-Drive event with a ribbon-cutting ceremony and ceremonial first test drive. The event offered the public and conference attendees an opportunity to take the latest diesel vehicles for a spin on biodiesel.
 
 During the event's opening remarks, Crotty reiterated the county's initiative to reduce petroleum fuel consumption by 20 percent within the next two years. Additionally, Crotty is supporting a proposal in which the county will fuel all of its bus fleet and county vehicles with B20. This will make Orange County a Florida Green Local Government. 
 
 "Orange County is here to help grow the biodiesel industry," Crotty said. "In 2005, I announced that we would reduce our petroleum usage by 20 percent in five years. The use of biodiesel is an important factor in helping us reach this goal." 
 

 Today's diesel vehicles are extremely fuel efficient and cleaner than ever. They typically get 20 percent to 40 percent more miles to the gallon than comparable gas-powered vehicles. Availability of ultra-low sulfur diesel fuel also allows manufacturers to engineer the cleanest diesel vehicles ever. 
 
 World Energy, a fuel supplier certified through BQ-9000, the industry's quality assurance program, was the official fuel supplier for the 2008 National Biodiesel Conference Ride-and-Drive. World Energy also provides biodiesel to local users like Universal Orlando Resort and Walt Disney World Resort.

Orlando biodiesel Ride-and-Drive brought latest diesel vehicles to public

Some National Biodiesel Board committee chair seats changed at the same time Ed Hegland took the reins of the organization's governing board.
 
 The new or continuing committee chairs are: 
 › Marketing committee: Jess Hewitt, president and chief executive officer, Gulf Hydrocarbon
 
 › Technical committee: Bob Metz, South Dakota Soybean Research & Promotion Council
 
 › Regulatory committee: Gene Gebolys, president, World Energy
 
 › Trade committee: Kris Kappenman, business manager for biodiesel, Archer Daniels Midland Co.
 
 › Producer task force: Lisa Ryan, vice president, Alterra Bioenergy
 
 › Sustainability task force: Emily Bockian Landsburg, manager of business development, Philadelphia Fry-O-Diesel

 Left to right; Crotty, Peterson, Hegland and John Kellogg

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NBB names to know

A Florida utility took home honors from the National Biodiesel Conference & Expo, in Orlando, Fla. Local biodiesel user Florida Power & Light was one of the award recipients of the National Biodiesel Board's annual Eye on Biodiesel Awards. The utility joined an Ivy League school, a branch of the U.S. military and other visionaries recognized for their contributions to biodiesel development. 

 
 The largest investor-owned electric utility in the state, Florida Power & Light first began using B20 in 1999. Today its entire diesel fleet of almost 2,500 vehicles runs on about 500,000 gallons of B20 annually. 
 
 "We thank the NBB and its members for this recognition," said George Survant, director of fleet services for Florida Power & Light. "Today, we are one of the cleanest utilities in the nation. Switching to B20 has allowed us to lessen harmful emissions plus diminish our dependence on foreign oil." 
 
 The awards program recognizes individuals and groups who have significantly advanced the board's mission of public education and industry growth. Florida Power & Light took home the Initiative award. Other categories and honors, and their respective winners and biodiesel initiatives include:
 
 Impact: Growmark Inc.-A leading agricultural cooperative, Growmark has demonstrated its ongoing commitment to the advancement of the biodiesel industry. The Illinois-based company's biodiesel sales grew from 10,000 gallons in 2000 to an estimated 22.7 million gallons in 2007. Growmark has offered hundreds of educational seminars and presentations, and has invested substantially in biodiesel infrastructure. 
 
 Industry Partnership: National Oilheat Research Alliance-A collaborative program established by the oilheating industry in 2001, NORA has been a leading force in Bioheat heating oil education. In 2006, NORA partnered with the NBB to obtain a trademark for the Bioheat fuel logo and streamline the process for becoming a registered Bioheat heating oil distributor. 
 
 Inspiration: David E. Harris, Jr./Harvard University-Under the leadership of Harris, general manager of transportation services, Harvard University in Cambridge, Mass., made the switch to B20 five years ago. It continues to fuel its 68-vehicle fleet with B20. Several other local fleets, including those in the city of Boston, have followed Harvard's lead. Harris continues to meet with potential biodiesel users and is the leading member and Harvard representative on the U.S. EPA's Greater Boston Breathes Better (GB3) program. 
 
 Influence: Barry (Tom) Smallwood/U.S. Marine Corps-Under the leadership of Smallwood, deputy director of the commercial fleet for the U.S. Marine Corps, biodiesel use has skyrocketed within the Marine Corps since 2001. He developed a strategy for the Marine Corps to achieve the 20 percent by 2005 fuel reduction requirement under Executive Order 13149. Thanks to biodiesel, the reduction reached 28.5 percent in 2006. Smallwood's initiative has also led to 90 percent of the Marine Corps bases now using B20. 

 
 Innovation: Cummins Inc.-This company's extensive multi-year research efforts on engine compatibility with biodiesel blends led it to be one of the first companies to support the use of B20 biodiesel blends in its diesel engines. Cummins' pioneering efforts have set a positive example for automakers and other engine manufacturers. 
 
 In addition, the NBB presented the Pioneer Award, an annual special honor to an individual or group who has served the industry, to NASA's John F. Kennedy Space Center. Located on Florida's east coast 45 minutes from Orlando, the center switched to B20 in 2003 in its fleet of 144 diesel-powered vehicles. It has since used more than 276,000 gallons of the fuel. 
 
 The NBB honored one of its own-Lola Helming-with the Dedicated Service Award. Helming has been the NBB's office coordinator for 15 years and was the NBB's first official 
 employee. Most who have contacted the NBB headquarters have received Helming's warm greeting, and she has helped to keep the office running smoothly from biodiesel's research days to the 500 million-gallon industry it has become.

Biodiesel awards recognize diverse cross section of biodiesel champions

Chevron Technology Ventures, a division of Chevron USA Inc., and biotech company Solazyme announced in January that they will jointly develop and test biodiesel made from algae using Solazyme's proprietary technology to optimize algal oil production. This oil can also be used to produce biobased jet fuel.
 
 Chevron has been actively working to develop renewable fuels projects. It is currently researching technology to produce algae-based liquid transportation fuels at the National Renewable Energy Laboratory in Golden, Colo. 
 
 Solazyme teamed up with Imperium Renewables Inc. in 2007 to grow microalgae and convert it to biodiesel.

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Chevron, Solazyme partner

Neste Oil Corp., a Finnish refining and marketing company, recently announced that it has chosen Paris-based Technip as the engineering, procurement and construction contractor for its next-generation renewable diesel plant in Singapore. The €550 million (US$800 million) plant will use Neste Oil's proprietary NExBTL technology to produce 240 MMgy of renewable diesel from vegetable oils (primarily sustainably produced palm oil) or animal fats. Construction will begin by midyear with completion expected in late 2010. The company's first NExBTL plant was commissioned last summer at Neste Oil's refinery in Porvoo, Finland.

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Neste Oil selects contractor

Specialty materials company Rohm and Haas, and France-based Novasep have formed a global alliance to market new technology for the purification of crude glycerol. The technology will integrate Rohm and Haas' patented Ambersep BD50 resin, which eliminates unwanted salts, with Novasep's unique separation processes. According to Michael Pell, global marketing manager for Rohm and Haas, the technology will be marketed by his company, while Novasep will provide the process technology and installation services. The technology could benefit biodiesel producers looking for a value-added revenue stream due to the disparity in crude and purified glycerol prices in global markets, Pell said.

Rohm and Haas, Novesep form global partnership

Greenline Industries Inc. and Skanska USA Building Inc. have signed a strategic alliance agreement to offer a single source of fully operational biodiesel production facilities in North America. Greenline designs and fabricates biodiesel production equipment that includes a waterless, modular processing technology. Skanska provides construction, pre-construction consulting, general contracting and design/build services. Together, the companies will offer services in site selection, permitting, business, finance, and supply and offtake.

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Greenline, Skanska form strategic alliance

DuPont Chemical Solutions Enterprise and Indianapolis-based Vertellus Specialties Inc. have reached an agreement in which Vertellus will produce sodium methylate from DuPont sodium. As the only distributor of sodium methylate made in North America, DuPont works closely with biodiesel producers to meet their needs. The chemical is the preferred catalyst in biodiesel production because it produces high yields at a low cost. With this agreement, three U.S. plants will produce sodium methylate solution on a full-time basis for DuPont, tripling the company's capacity since May 2007. DuPont is planning to have at least two new U.S. production facilities on line in 2008, including one in Mobile, Ala., in early August. The second site is still being negotiated, according to DuPont spokeswoman Mary Baker.

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Vertellus to supply DuPont with sodium methylate

The story behind how BioEnergy of America, went from a Rocky Mountain high to an East Coast low should serve as a caution for other project developers. Tom Davanzo's New Jersey biodiesel start-up banked on the success of its two top-notch biodiesel facilities nestled in the Rocky Mountains of Colorado, and headed east. The chief executive officer seemed to have it all figured out-locating his plants in urban centers and near transportation outlets, keeping the facilities small but competitive and being feedstock flexible. If the cost or availability of one feedstock went up, try another. The East Coast venture barely got off the ground when the funding dried up and BEA headed for bankruptcy court in January 2008. The bankruptcy case was dismissed in late February. 

 
 The tale started in 2006, a banner year for the former BioEnergy of Colorado. Davanzo and other investors had purchased a loan from a Chicago bank two years earlier. Part of that acquisition included an asphalt cleaning facility and tank farm on its Colorado property situated near dozens of rail lines. They spent several months cleaning the site, developing production technology and a rigorous quality assurance program, and building relationships with their target market-local fuel distributors.
 
 By late 2005, the facility, dubbed "Colorado 1," was producing 700,000 gallons of biodiesel per month. Work began on Colorado 2, another Denver-area plant. It was on line by February 2006. The two facilities throughout much of 2007 produced 18 MMgy.
 
 Davanzo meanwhile was tinkering with cold-weather blends and heating oil applications for biodiesel because sales dropped off sharply during the winter. BioEnergy trademarked Gold-n-Green, a BQ-9000 certified fuel alternative. It contained a cold-flow additive that prevented the biodiesel from gelling in frigid temperatures, and typical winter shut-downs. 
 
 Finally, he set his sights on building a plant in the Northeast region of the country because U.S. DOE studies identified that area as containing 78 percent of all home heating oil consumers in the country. As oil prices rise, customers begin looking to other heat sources. Davanzo's fellow investors reasoned that they could recapture that market by combining heating oil with B100. 
 
 Moving East: The Downward Slide Begins
 The company headquarters for the new venture, BioEnergy of America, was in Edison, N.J., where BEA had plans to develop a 45 MMgy biodiesel plant, with three 15 MMgy lines, that would serve the Northeast.
 
 In August 2006, BEA announced a joint venture with Able Energy Inc. to produce and distribute biodiesel at plants constructed at truck stops, home heating depots and terminals used to house petroleum products for distribution or resale. The venture, owned in equal shares by each company, was called USA Biodiesel. The facilities would use BEA production processes. Able Energy, a New Jersey-based company that provides home heating oil, diesel fuel and kerosene, would purchase much of the fuel produced for resale at truck stops.
 
 Meanwhile, Davanzo was trolling for financiers for the Edison biodiesel plant. He landed a venture capital fund founded by Michael Dell, owner of Dell Computers. Dell and his wife, Susan, formed MSD Capital LP in 1998. MSD, based in New York and Los Angeles, exclusively manages the Dells' fortune and was established to engage in a broad spectrum of investment opportunities. Davanzo has never met Michael Dell.
 

 MSD and Paragon Energy Holdings formed a joint venture called Paragon BioFuels LLC, an intermediary whose primary role was to fund the construction. MSD earmarked about $21 million in three installments to build the Edison plant. Construction began in 2006 after the first installment of $7 million was received. When the second installment of $7 million was due in January 2007, there was no check in the mail. "It certainly created a problem for all us contractors," says Russ Richard, whose company, Mechanical Preservation Associates Inc., was the primary contractor. Richard and Davanzo say they viewed the withholding of funds as a temporary glitch, so contractors soldiered on. Turned out it wasn't just a glitch.
 
 On the advice of his engineers and because of technological breakthroughs, Davanzo agreed during construction to install two 40 MMgy lines, expanding overall capacity to 80 MMgy. That caused increased costs and MSD balked, Davanzo says. "MSD's decision was based on a combination of the market and the cost of the plant," he says. "Because of the cost of the plant and the economics of the business, they didn't really want to continue to invest and contractually, as odd as it is, they actually had the right [to stop funding the project]. Of course, we never thought there was a possibility that we weren't getting all the money." MSD spokesman Todd Fogarty declines to say why investors pulled out. "As a matter of policy, we do not comment on our investments," he says.
 
 The project faced difficulties that many projects face: cost overruns, missed deadlines and, in BEA's case, the detraction of the simultaneous venture with Able Energy, which may have diverted attention away from the refinery. These issues may have violated the lending covenants.
 
 Some contractors had made major investments in BEA's progress, including MPA, which is owed $2.3 million. "We were responsible for providing equipment, installing the systems, the tanks, the pumping systems, the pumps and all the process-related, production-related equipment in the systems," Richard says.
 
 In June 2007, the project faced the continued silence of MSD and work stopped. The plant was not quite 30 percent complete, Richard estimates. BEA scrambled to obtain alternate financing, but surrendered to bankruptcy court when it looked futile. "In my mind, they had a great business plan, they had a great process that was well thought out and well-engineered," Richard says of BEA. "It was a very efficient process that was able to produce a product." Michael Losch, BEA's chief financial officer, was reluctant to discuss what would transpire. In January 2008, he acknowledged that a sale of the partially-completed plant was possible, along with the continued pursuit of financing mechanisms. But by February Davanzo had been evicted from the property and plans to convert the Chapter 11 filing into a total liquidation Chapter 7 failed. "Because we couldn't get enough funding [to settle with creditors], they'll kick it out of court," Davanzo says of the New Jersey bankruptcy judge. "That means it'll die without the dignity of a Chapter 7. It'll just be the demise."
 
 Paragon BioFuels is BEA's largest creditor, owed $7.6 million. The bankruptcy also absorbed the two Colorado facilities along with Davanzo's patents, which were collateral for the MSD loan. "It sucked the whole company down the tubes," he says.
 
 A buyer is interested in the trans-load equipment at one of the Colorado plants, which is used to load and unload rail cars. A Las Vegas buyer may strip the other Colorado plant for parts to use in a waste treatment business, Davanzo says. The deal with Able Energy is kaput, he says. He expects to be evicted from the Colorado properties any day now. 
 
 The Illusive Art ofFinancing: Finding Investors With Staying Power
 A case can be made for the fact that BEA's Edison plant was thinly capitalized. A third of the funds had been released, but progress had not quite reached a commensurate level of completion. The $21 million price tag didn't leave room for any errors, mechanical mishaps, change orders or contingencies in general, including the $1.5 million that went for code compliance, environmental compliance and fire trenches to satisfy local fire officials. None of those items were anticipated.

 
 A similar situation occurred in Mead, Neb., where an undercapitalized ethanol plant encountered start-up mechanical problems, wasn't able to finance its way out and filed for Chapter 11 protection. It is currently seeking a financial bailout. Critics of the Nebraska venture have claimed that issuance of $50 million in municipal bonds for the untested "closed-loop" technology was folly. 
 
 In January 2008, the American Council on Renewable Energy held a Web symposium to address the pitfalls and promises of securing financing for alternative energy projects. All the panelists stressed the importance of matching the right financier to the right project. But one panelist noted that in today's capricious climate "sometimes the only ones making money are the lawyers."
 
 And some failed biodiesel ventures have left attorneys with unpaid legal bills. Kermit Nash, a Minneapolis energy attorney, says funding biodiesel ventures is a different animal than funding an ethanol plant, mostly because in the early years, ethanol developers were paying back senior debt much more quickly than anticipated. Although that may not be the case today, Nash says ethanol enjoys "much more broad-based appeal than biodiesel."
 
 Nash says times have changed for biodiesel producers and banks lending to producers and developers. "Twenty years ago when I was growing up in rural North Dakota, the banker would ask what you were going to put in for crops and that was it," he says. "Now you've got some sophisticated lenders asking you what you're doing and if it's soybeans they'll actually give an opinion."
 
 Many banks are syndicated or in participation with other lenders, Nash says, so the scrutiny is magnified. "If you're lending to a biodiesel [facility], they're looking at the market and saying, 'Gosh, soybeans are at an all-time high, corn's at an all-time high and you're going build a biodiesel facility?'"
 
 Nash says the current situation is a "perfect storm" because there's a credit crunch nationally impacting on soybean crushing facilities and biodiesel facilities and "an advanced ethanol-lending market, more critical."
 
 Farmer co-ops that pooled together to build a destination for their crops have nearly gone the way of the dinosaur. "You're seeing more hedge funds, more venture capital funds and international funds looking at investment opportunities and they've been good in some respects but they view a project a little bit differently than producers," Nash says. "Venture capital money and investment fund money is a bit more expensive. You're starting a biodiesel facility? How much equity do you have? The debt-to-equity ratio is much tighter in the biodiesel market than the ethanol market so a bank is going to look very closely at your investors and they may have an opinion on what makes up your equity sources."
 Impatience is also a key factor. Out-of-state investors want to see results-quickly, Nash says. And many projects, like BEA, are being funded on a shoestring budget. "You're seeing quite a few plants that are blowing up-not literally-but the margins are razor thin to upside down," he says. He predicts that some biodiesel plants currently on the drawing board may never materialize until there's a renaissance in the market that will boost demand.
 MSD is one of those results-oriented investors. Its Web site stresses that it engages in "opportunistic investments" in strong and sustainable markets. "Our experience allows us to quickly identify desirable investments and move rapidly to close," site information states.
 One plant critic, a financier named Bill Kolodziejczyk, says obtaining financing became impossible because BEA lacked a process and instrumentation design, which all the interested parties asked for. Without one, he says investors were left with the impression that the developers were flying by the seat of their pants. Davanzo and other construction principals have no idea who Kolodziejczyk is. They named a dozen engineers, architects and other professionals on the project. "We didn't just sit down with a crayon and decide to build a plant," Davanzo says.

 
 What the Future Holds
 Because BEA's case won't go through bankruptcy proceedings, "it leaves a big mess" for the creditors, Davanzo says. The East Coast creditors are aware of the situation and results. The trade debtors that supplied the Colorado plants may individually try to sue, but "they won't even be able to serve their lawsuits because the companies will be off the properties" and defunct, says Davanzo, who has no plans to sue MSD. "I just don't think there's much to gain by that," he says. "It's been a total, total catastrophe for everybody that got involved with this," MPA's Richard says. "We are very much upset by this. It's created a financial hardship for a lot of people." But, at the same time, he marvels at Davanzo's strength under pressure. "I've never seen him lose his cool," he says. Despite his situation, Davanzo still has faith in the biofuels industry. "I've been very flattered to have a lot of job offers and one of them was from Able Energy," Davanzo notes. "I'll probably stick around for something [in the biofuels industry]. I haven't quite figured it out yet." n 
 
 Sarah Smith is a Biodiesel Magazine staff writer. Reach her at ssmith@bbibiofuels.com or (701) 663-5002.

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Construction of the Biodiesel of America plant in Edison, N.J., started in 2006.

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Tom Davanzo should be angry. In 2007, his burgeoning biodiesel empire slid into an agonizing death spiral, then bankruptcy. Now he's being kicked out of bankruptcy court because he doesn't have any money. He can't even raise exit financing. What happened? To sum it up: feedstock prices gone through the roof, fickle financiers, razor-thin capitalization of projects if you can corral a financing package, brutal construction costs, you name it. Yet Davanzo emerges from the ashes with cautious optimism. "I'm an entrepreneur," he says. "I'll be back."

BioEnergy of AMERICA'S Rise and Fall

Kumar Plocher was a skeptic when he walked into the invitation-only screening of the film documentary "Fields of Fuel" at the National Biodiesel Board's National Biodiesel Conference & Expo held in early February in Orlando, Fla. The founder and president of Yokayo Biofuels in Ukiah, Calif., already knew about the benefits of biodiesel and how to make it. He had seen a trailer for the documentary and doubted it would be anything more than a long advertisement for the biofuel producers featured in it. In fact, Brent Baker, chief executive officer of New York's Tri-State Biodiesel who was featured in the film, invited Plocher to the screening. So Plocher grudgingly decided to give it a chance, and was a changed man by the time he walked out of the screening.
 
 The film's director, Josh Tickell, an environmentalist, author of the book Biodiesel America and a biodiesel expert, has dedicated his life to educating others about biodiesel. He began making "Fields of Fuel" 10 years ago, but his journey into the realm of the renewable fuel began many years before. When he was 9 years old he moved with his mother and brother from Australia to the Louisiana bayous. As shown in the film, the family lived near oil refineries where he witnessed the detrimental effects the industry had on the health of people in the area. Because of that experience, Tickell was determined to change the way America gets its energy.
 
 The 'Veggie Van'
 Before directing "Fields of Fuel," Tickell was known for his biodiesel awareness campaign featuring the "Veggie Van" guy. He captured the attention of the mainstream media by driving a cheap, vibrant-colored van across the country stopping at fast-food restaurants to collect used cooking oil, which he used for fuel. Although his stunt drew a lot of media attention, it didn't achieve the sustained effect on the public's view of biofuels that Tickell desired. So he decided to make a documentary. A decade later he produced the 90-minute ode to biodiesel and biofuel technology called "Fields of Fuel." 
 
 It took 10 years to make the film because it was "not your typical big-studio movie," Tickell says. He and his crew were constantly raising money to continue the project. At the same time, biodiesel technology, the subject of the film, was constantly evolving. Tickell managed to raise more than $1 million from company sponsors, private contributors and nonprofits. Many in the biodiesel industry, including Biodiesel Magazine publisher BBI International, provided funding for the film. Biodiesel producers such as Baker's Tri-State Biodiesel and Solozyme in California became sponsors and were featured in the film. 
 
 The Film Festival

 Those who donated to the film obviously felt it was a important, but no one could have guessed that it would get such a warm reception at the Sundance Film Festival.
 Greg Reitman, one of the film's producers, says there are 1,000 documentaries submitted to Sundance and only 16 are selected to be shown during the festival. Of those 16 documentaries, only six awards are handed out at the end of the festival. "Fields of Fuel" was one of the lucky ones this year. The film was handpicked by actor and festival founder Robert Redford for a private screening on the eve of the event's first day, and quickly became the hot ticket. To top it off, the film received the coveted Audience Award. 
 
 Even Reitman couldn't have guessed the film would do so well. "I never expected it to be what it is," he says. "When I created my production company I wanted to make films that make a difference in the world-that's what "Fields of Fuel" is all about."
 
 Tickell says the reaction to the film was validation for all the hard work they had done. "We created the movie to be engaging, fun, educational and interesting," he says. "We didn't shy away from controversy. This is not a boring movie about a farm field that turns into a soybean that turns into a jar of fuel. It's a feature-length documentary film that was made for theatres, and people love it. The Audience Award shows that anyone can watch this movie."
 	
 Between the Reels
 "Fields of Fuel" was designed to help people, who have no prior knowledge of biodiesel, understand what it is and how they can use it. Quick excerpts of government officials talking about energy, snappy cutaways including one about Rudolph Diesel and his mysterious death, and a hip soundtrack make the film attractive to a younger generation of energy enthusiasts. The film demonstrates how biodiesel is made and used, but does so in a way that anyone can understand. 
 
 Tickell also wasn't afraid to give time to those with viewpoints that differed from his. Former oil executive Ken Hern, who now heads Nova Biosource Fuels Inc. in Houston, agrees to disagree with Tickell on some issues. But he still felt the film's message was important and agreed to participate, and even became a sponsor. Tickell thought it was important to show other opinions, which may be why the film succeeded. "Joe Jobe [chief executive of the National Biodiesel Board] is featured a lot and so are people who don't think soybeans make a good fuel," he says. "It builds to an agreement that there are many ways to make energy. If you bring together the oil companies, farmers, politicians, youth, environmentalists, media and celebrities they can change anything in society. That's what the film is about. The concept is that we need to move toward independent energy and we need to do it now." 
 
 Tickell's lifelong struggle to gain mainstream acceptance for biodiesel is the thread that weaves the film together. His face is the face of biodiesel. It may appear self-indulgent to some, but the film's writer felt it necessary to provide viewers with a personal story in order to illicit the emotional response required to inspire change.
 
 That concept worked on viewers such as Plocher. "There is simply no reason to criticize such a well-meaning, and often very insightful, work of art," he says. Plocher walked out of the theater already forming a plan to make Yokayo's biodiesel affordable for local school districts. He is now working with a San Francisco-area biodiesel producer to offer discounted fuel to school bus fleets. He hopes to have the program up and running with the support of parents and school boards later this year. That kind of reaction is music to Tickell's ears. "That's our objective: to increase the number of people who take action," he says. "We give people options of ways to affect change-large and small."
 

 On the Road Again
 This summer, Tickell's mission is to provide everyone in the country with the opportunity to watch the documentary. He is planning a 50-city tour to coincide with film showings, where he will make public appearances and give speeches to further educate and inspire people to reduce our country's dependence on oil. The nationwide tour will begin with the Tribeca Film Festival April 23 through May 4 in New York City. From there, Tickell will lead a biodiesel-fueled caravan through the Northeast and across the country to Seattle, where the tour will continue down the West Coast. Tickell has also been invited to show the film at the Republican and Democratic national conventions. 
 
 Following the rave reviews at Sundance, every major studio in North America has approached him to buy the film, but the tour will happen regardless of who distributes the movie, Tickell says. He has three goals to achieve by the end of the tour: to inform as many people as possible about alternative fuels, to get school bus fleet managers across the country to convert to biodiesel and to work with government officials to create a declaration of energy independence. Tickell will be collecting signatures during the tour and will present a petition to presidential candidates at a rally in Washington, D.C., prior to the November election.
 
 Education will be an important aspect of Tickell's tour. In "Fields of Fuel" prescreenings held in cities throughout the country, he was often surprised by the audiences' lack of knowledge of the oil industry. After a screening at a Los Angeles middle school, students said they thought the section of the film concerning the 1970s oil crisis was fictional because they had never heard about it. Tickell believes that about 95 percent of the people who attended question and answer sessions didn't know the difference between biodiesel and ethanol. Through his travels, Tickell determined that more than 60 percent of high school students have a good grasp on what biofuels are, compared with less than 20 percent of people over the age of 20. "I think there's an assumption that people know what biofuels are," he says. "There's a huge disconnect between what the biofuels industry thinks the public knows and what they actually know." If Tickell can bridge that gap of knowledge even just a little before the movie's popularity plays itself out, he will consider it a decade's worth of work well done. 
 
 Kris Bevill is a Biodiesel Magazine staff writer. Reach her at <a href="mailto:kbevill@bbibiofuels.com">kbevill@bbibiofuels.com</a> or (701) 373-0636.

Kumar Plocher is pictured at his biodiesel production facility in Ukiah, Calif.

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Tickell in a still from the film 'Fields of Fuel'

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A new documentary featuring biodiesel recently made waves at the Sundance Film Festival where it received standing ovations after every sold-out screening. Plans are in the works to distribute the film on a national level later this year.

From the 'VEGGIE VAN' to the Big Screen

When Fleet Biodiesel made its debut at the 2006 Alternative Fuels & Vehicles Conference, it was in the business of helping fleets make the transition to biodiesel fuel. During those few days company officials learned a lot about biodiesel from the folks who were really using it. The company was bombarded by questions about biodiesel quality and listened to fleet managers who had postponed or even reversed their decision to use biodiesel because of quality concerns. It was clear that the basic formula for successfully re-powering a vehicle fleet on biodiesel would take into account the issue of fuel quality. 
 
 As a result of that conference, Fleet Biodiesel changed course and plunged full force into the fuel testing arena, setting out to develop tools that would allow fleet managers to verify the quality of their fuel. In April 2007, the company launched the first of its family of field test kits for biodiesel and petroleum diesel fuel. The company still helps fleets make the move to biodiesel, but it now focuses on fuel quality verification to make sure the biodiesel experience is a positive one.
 

 The basic recipe for switching to biodiesel is no secret. Potential users are fortunate that the fuel has been in use for quite a while and its pitfalls are well documented. This article is not meant to be a primer for fleet managers making the transition, but will cover some of the basic considerations and current issues that need to be addressed. The biodiesel transition model divides the process into three phases: preparation, fuel sourcing and maintenance.
 
 Preparation
 It doesn't take much to convert a fleet to biodiesel, but one needs to be thorough during the preparation process. Most of the preparation tasks are simple and inexpensive, whether it's installing desiccant vent traps on storage tanks or changing out the old hoses in vintage dump trucks. Make sure this is done at the beginning before biodiesel is introduced. Many fleets that experience difficult transitions can trace their problems back to something fairly obvious-like deciding not to clean out a storage tank before switching fuels.
 
 Most of the preparation process is documented on a number of Web sites. The National Biodiesel Board (<a href="http://www.biodiesel.org">www.biodiesel.org</a>), the National Renewable Energy Lab (www.nrel.gov), and the U.S. DOE (www.eere.energy.gov) are all excellent resources. Regional Clean Cities Coalitions, the West Coast Collaborative and local biodiesel user groups provide additional support to fleet managers moving to alternative fuels. 
 
 Several preparation tasks are normally expected. First, the fleet should be screened for pre-1995 vehicles. Second, storage tanks and dispensers should be evaluated for biodiesel compatibility. Third, environmental factors (e.g., weather) should be examined for biodiesel suitability. Fourth, plans should be developed for incorporating biodiesel in seasonal- and emergency-use vehicles and generators. Fifth, storage tanks should be prepped and older vehicles refitted with biodiesel-compatible hoses and gaskets. Finally, compliance with local emissions standards must be ensured.
 
 The preparation process will vary greatly depending on the specific circumstances of the fleet. If this seems intimidating, remember that preparation is a one-time exercise and that there are many fleets that have made the switch with older vehicles operating in extremely adverse conditions. Peterson Air Force Base in Colorado and Mammoth Mountain Ski Resort are two examples.
 
 Fuel Sourcing 
 Most of the problems related to using biodiesel are due to quality. Fortunately, the vast majority of biodiesel fuel being produced and distributed is good fuel that meets ASTM specifications before blending. Remember that one doesn't have to use biodiesel to have fuel-related problems. Water is a problem for petroleum diesel, which can degrade if it sits in a tank for one year.

 
 Biodiesel burns like petroleum diesel, but it is not petroleum diesel. As tempting as it may be, don't think of it that way. Petroleum is highly regulated, produced in enormous quantities and subject to much less variation during the production process. "Highly regulated" means that it is tested to specification during production and transportation to market-an expensive proposition unless testing is conducted in very large quantities. On the other hand, biodiesel is much more loosely regulated. It is typically produced in smaller quantities and subject to a number of quality-affecting factors including the feedstock used and the way it is transported to market. Petroleum is typically transported via pipeline while biodiesel is shipped via tanker truck and railcar.
 
 To complicate matters, the positive characteristics of biodiesel, such as its lower emissions profile and non-toxic nature that make it an excellent alternative fuel, are also responsible for its notorious variation in quality. It is biodegradable and-like the plants it often comes from-is more susceptible to incidental chemical interactions and microbial contamination. The bottom line is that the quality of biodiesel fuel produced to ASTM D 6751 specifications can change anywhere along the journey from the producer to the engine that burns it. 
 
 So, how do fleet managers make sure they get good fuel? The first step is to ensure the distributor understands how to handle biodiesel. Obvious signs to look for include BQ-9000 certification and a good track record. However, these aren't always available. Develop a checklist for the distributor to help identify the vendors that are quality conscious and most likely to provide good fuel. Some key questions that should be asked include:
 
 › How does the distributor verify fuel quality from its supplier?
 
 › Does the supplier use a consistent feedstock?
 
 › Are additives used to compensate for seasonal conditions?
 
 › What method is used to blend the biodiesel fuel with petroleum diesel?
 
 › Does the distributor have dedicated storage tanks and trucks for biodiesel?
 

 › Does the distributor periodically test its biodiesel tanks for fuel degradation?
 
 › Will the distributor provide assistance when bad fuel is suspected or discovered?
 
 › Is the distributor willing to cooperate with the fleet's quality assurance program?
 
 The answers to these questions may lead to more questions, but they will certainly provide an idea of the distributor's familiarity with biodiesel. In many cases, distributors will revise their handling practices to meet your requirements. If asked, they may even implement a fuel quality assurance program. Colorado Petroleum instituted a quality testing program for its client, Amphitheater Public Schools in Arizona. Once the fuel has been sourced, the fleet manager should plan periodic audits to make sure the distributor is performing as advertised.
 
 Now that the fleet is prepared and the fuel is sourced, it's time for the final phase of the transition.
 
 Maintenance
 The maintenance phase has nothing to do with maintaining vehicles-though one should anticipate some minor vehicle maintenance after switching to biodiesel. Remember that most problems arising from biodiesel use are related to fuel quality. That quality can change at any point between the producer and the fuel injectors. Verifying fuel quality on site can eliminate these problems by testing the fuel as it comes from the distributor, out of the pump and, if necessary, in the equipment itself. 
 
 In our experience, a fuel delivery from a distributor is the most likely cause of drastic changes in fuel quality. This is because biodiesel degrades relatively slowly over time, whereas a bad fuel drop from the distributor can have an immediate and much larger effect. Ask a fleet manager who has been burning B5 for a couple of years and gets a load of B100 in his or her tanks. In this case, too much of a good thing is not so good. Luckily, this type of problem is easy to fix once detected.
 
 So how do fleet managers verify fuel quality before it goes into their vehicles? Laboratory testing would be great if one has the budget and the time to wait for the results. In our experience, this is a rare set of circumstances. Periodic lab testing would be another option, but it wouldn't catch the occasional bad batch of fuel-the one that stops vehicles. The ideal situation allows for fuel to be tested reliably and quickly where it's being used. Fortunately, several options exist for on-site quality testing: field test kits, portable lab instruments and full-fledged laboratory instruments. A brief description of each of these options and the associated costs follow.

 
 Field test kits have been around for years, but are only now addressing the needs of fleet managers. They typically cost between $3 and $25 per test. Tests are available for a variety of key indicators of fuel quality, such as water content, acid number, microbial contamination, glycerin content and percentage of biodiesel. Field tests are typically inexpensive and easy to perform (e.g., pour the fuel into a bottle and shake it to get results). They provide an excellent screening mechanism to detect bad fuel or may be used as a diagnostic tool for discovering how a fuel is out of spec. The drawback for these tests is that they are usually limited to a "go/no-go" result. In other words, they won't provide an exact measurement of the key indicators as does an analytical laboratory test.
 
 Portable lab instruments are smaller, more rugged versions of the instruments found in an analytical laboratory. They typically cost between $3,000 and $25,000 per instrument. Many operate on battery power, so they can be used wherever testing is needed. These instruments are typically focused on one particular fuel quality characteristic, like percentage of biodiesel or water content. Portable instruments are often more difficult to use than field test kits, but they provide more accurate (nearly lab-quality) results.
 
 Recently, several multifunction instruments have been introduced to the market that use infrared technology. Like field test kits, these instruments do not use the ASTM testing protocols, but are easy to use and give accurate results. Key indicators tested include free and total glycerin, percentage of biodiesel, water content, free fatty acids and cloud point. 
 Laboratory instruments typically cost between $4,000 and $70,000 per instrument. This is the ultimate testing option for fleet managers who have large budgets, laboratory workspace and a technical staff. Like the portable instruments, lab instruments are usually "one-trick-ponies." Each instrument can only test for one key indicator. The advantage is that the results are high quality and are derived using the official ASTM protocols.
 
 Conclusion
 Fleet managers are the heroes of the biodiesel industry. They are the ones who make the greatest impact on the environment by their selection of alternative fuels. They are also the ones who have the most at stake in terms of operational risk. A fuel problem can be stressful for an organization's budget and for the maintenance team. 
 
 Fleet managers must carefully prepare for the transition to biodiesel, be selective in choosing a fuel vendor, and develop a sensible fuel quality assurance program to verify and document fuel quality on a regular basis. Most fleet managers will have the best results by using a combination of field-testing (using a test kit or portable lab instrument) and periodic lab testing. The field tests will increase the likelihood of catching bad fuel before it does any damage, and lab testing will catch more subtle problems before they trigger the field tests. This type of program costs very little but provides substantial protection against bad fuel. 
 
 Steve Wallace is president of Fleet Biodiesel, a company he founded with Ken Snoke in 2005 with the goal of promoting biodiesel use in the southwestern United States. Reach Wallace at <a href="mailto:swallace@fleetbiodiesel.com">swallace@fleetbiodiesel.com</a>.

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Fleets moving to biodiesel blends should prepare vehicle and fuel storage tanks to avoid problems.

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Fuel Quality Testing for the Fleet Manager

According to the National Biodiesel Board, the estimated sales volume of biodiesel in the United States has grown from 2 million gallons in 2000 to 450 million gallons in 2007. The demand for biodiesel continues to grow. The Energy Independence and Security Act of 2007 calls for more biodiesel usage, starting with 500 million gallons in 2009 and climbing to 1 billion gallons by 2012. 

 
 A variety of filtration issues and requirements will need to be addressed in order to meet the expected demand for biodiesel. These include compatibility issues, storage and usage requirements, pre-filtration, filter and coalescer requirements, and variability in feedstocks.
 
 While the surge in biodiesel supply and demand will create challenges for producers, it also provides opportunities to ensure purer feedstocks and ever-cleaner fuel for motorists. 
 
 While much of the consumer focus is on post-production biodiesel filtration, the process truly starts before the feedstock even enters the plant. Biodiesel production begins with pre-filters and the filtration of feedstock.
 
 Filtration, Coalescing from Feedstock to Biodiesel
 Feedstocks used by biodiesel producers in the United States are most commonly filtered through a 35- to 40-micrometer strainer. However, a high solids contamination level of particles exists at less than 35 micrometers in size. Feedstock contaminant levels can occur when particles are 100- to 2,000-parts per million by weight. Many biodiesel companies filter the incoming feedstock to reduce solids contaminants by using a combination of strainers, bag filters and micron-rated filter cartridges. Coalescing- and cartridge-style coalescers have also worked well for these applications.
 
 High-capacity filters are proven technology for feedstock and methyl ester purification. Coalescers reduce energy costs associated with centrifuges and dryers/desiccants. Both filters and coalescers work well in many applications. However, both have significant application obstacles.
 
 Many of these obstacles have been overcome by new media technologies. However, some process issues still need to be resolved on a case-by-case basis. Biodiesel filters, separators and coalescers have come a long way in the past two years. The performance of the separation process is dependent on the consistency of the feedstock and the transesterification process. Chemflo recommends that testing be performed on new processes because of the variance in feedstocks and processes involved in biodiesel production.
 
 Chemflo has developed high-performance, all-synthetic filter media for biodiesel. It is important to use the correct polymers with methyl esters because of difficult chemical resistance issues. 
 

 Some customers filter methyl ester at the production facility to meet customer specifications or to remove excess solids unique to their production process. The most common method of filtering at the process level is with a strainer. Many biodiesel producers filter to a higher efficiency, either in process or at load out. 
 
 Compatibility of Filters, Coalescers
 Cartridge filters are excellent for these higher efficiency separations but traditionally they have difficulty with chemical compatibility. The two most common problems are 
 
 1) pleated papers not compatible with alcohols, water and methyl esters, and 
 
 2) polypropylene media swelling as they absorb hydrocarbons, causing the cartridge life to be shortened. 
 
 The best solutions are:
 1) polyester microfiber bag filters for small producers, and
 
 2) pleated synthetic media, high-capacity cartridge filters for larger producers. Nylon should be used if carried-over caustic causes the pH to be over eight. 
 
 Metal components of filters are recommended to be stainless steel because the nickel or tin plating used on most carbon steel can react with methyl esters to form unwanted salts. 
 

 Viton fluoroelastome and Polytetrafluoroethylene are the most common gasket and o-ring materials. The most common materials for filter housings are carbon steel and stainless steel. Stainless is often preferred because of water present in the process.
 
 Glycerin, Water, Alcohol, Caustic Removal
 For larger producers, centrifuges are used most of the time to remove glycerin. However, centrifuges are expensive to operate and maintain. Coalescers and mechanical separators can reduce these operating costs by acting as an effective pre-coalescer in front of a centrifuge. Because of the wide differences in specific gravities involved, coalescers can work very well to separate methyl esters. 
 
 The most common application for coalescing in biodiesel production is water removal. These coalescers pre-coalesce in front of a dryer or desiccant system due to dissolved water issues. Because coalescers only remove free, dispersed water and do not remove dissolved water, a dryer, tower or desiccant is used after the coalescer. Coalescers can significantly reduce the operating costs of water/alcohol separations.
 
 Caustic reduces interfacial tensions and causes emulsions that are difficult to separate. Soaps can gum up media in filters and coalescers. Adjusting the pH can help resolve this issue.
 
 Variability of Feedstocks, Processing Biodiesel
 A significant issue in separations for biodiesel producers is feedstock variability and the variability in the transesterification process itself. In Asia, where palm oil is the primary feedstock, and in Europe, where rapeseed oil is predominant, coalescers and filters tend to be used more successfully and consistently during processing than in the United States. 
 
 This is due primarily to the wide variety of feedstocks and biodiesel production processes used here. It's recommended that testing be conducted when working with a new feedstock in order to determine how it affects the separation process.
 
 Most producers would like the filter or coalescer manufacturer to be able to tell them "this is what works," but due to the variability in feedstocks and transesterification reaction processes, the separation process must be modeled and scaled up to a specific plant's production process.

 
 Another common issue heard recently has been that production processes have changed. Many U.S. biodiesel companies have changed suppliers or at least considered it because of impacts in feedstock costs. Several cases have occurred where proven separation methods develop inconsistent results when the feedstock changes. 
 
 Compatibility Issues
 Similar to methyl esters during production, there have been significant material compatibility issues with finished biodiesel product, particularly with B100. 
 
 With prolonged exposure, B100 can degrade, soften or seep through filter media, hoses, gaskets, seals, elastomers, adhesives and plastics. Binders used in cellulose (paper) filters, polypropylene, Buna and Nitrile rubber materials are particularly vulnerable to B100. Materials such as Teflon, Viton, fluorinated plastics and Nylon are compatible with B100.
 
 Acceptable filter vessel materials include steel, fluorinated polyethylene, fluorinated polypropylene, Teflon and epoxy binder microfiberglass.
 
 Brass, bronze, copper, lead, tin and zinc may accelerate the oxidation of diesel and biodiesel fuels and potentially create fuel insolubles (sediments), or gels and salts when combined with some fuel components. Lead solders and zinc linings should be avoided, as should copper pipes, brass regulators and copper fittings. The fuel or the fittings will tend to change color and insolubles may plug fuel filters. Affected equipment should be replaced with stainless steel.
 
 Handling, Storage and Pipelines
 Because of B100 water content, filter vessels should be insulated. Biodiesel must be stored and handled using procedures that do not allow the temperature of the biodiesel or blend to drop below its cloud point. The fuel's cloud point, biodiesel temperature, ambient temperature, and the time the fuel is in transport or in pipelines are all factors that should be taken into consideration.
 

 The current industry recommendation is that biodiesel be used within six months, or it should be re-analyzed after six months to ensure the fuel still meets ASTM D 6751 specifications. A longer shelf life is possible depending on the fuel composition and the use of storage-enhancing additives, but these additives can affect fuel separation.
 
 Biodiesel is most commonly filtered first using 10- to 30-micrometer efficiency filter elements prior to load out, such as at terminals. Filters are also heated to approximately 80 to 90 degrees Fahrenheit. 
 
 Coalescers, separators or gravity settling at load out is recommended in most cases. Biodiesel filtration equipment and processes are vital to make sure that the product is very clean and reliable. 
 
 Clay Cravens is the president of Houston-based Chemflo/Process Filtration LLC. Reach him at <a href="mailto:clay@chemflo.com">clay@chemflo.com</a> or (713) 691-2800.

High-capacity filters are optimized for high flow rates. 

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Filtration from Feedstock to Fuel Tank

The rapid growth in biodiesel use has created an unexpected shortage in certain feedstocks used to manufacture the fuel. In the United States the shortage of soybean oil for biodiesel production has resulted in steep price increases for this critical raw material. As a result, U.S. biodiesel producers have sought alternative feedstock sources for production.
 
 As a feedstock, soybean oil is attractive due to its abundance and reasonably attractive cold flow properties. Some producers are now considering blending their principal soybean feedstock with available alternatives. Other vegetable oils, such as corn, cottonseed, canola (rapeseed), flax, sunflower and peanut can be used but these seed oils are generally more expensive than soybean oil. Attractive lower-cost alternatives include poultry fat, yellow grease (used cooking oil), choice white grease (lard) and tallow.
 
 In part one of this report ("Improving the Quality of Biodiesel Through the Use of Antioxidants and Metal Chelators" in the February 2008 issue of Biodiesel Magazine), stability issues associated with the use of different feedstocks, biodiesel production variability, metal contamination, storage life and transport were addressed by utilizing specific combinations of additives. In this article the use of these same additive systems to improve the stability of biodiesel blends is examined.
 
 <center><img src="/images/upload/20080318102024.jpg" alt="" />

 Figure 1. Oxidative stability index data for antioxidants at a 300 parts-per-million treatment rate.
 SOURCE: ALBERMARLE CORP.</center>
 
 Biodiesel Selection 
 Before looking at how blends respond to stabilizers to improve stability, it is important to understand the response seen with single biodiesel systems. Figure 1 shows the oxidative stability index response to various additives in biodiesel produced from feedstocks of undistilled soybean, distilled canola, yellow grease and poultry fat. The additives used in this study are butylated hydroxyl toluene (BHT), TBHQ/citric acid blend in solvent and Ethanol 4760E, which is a blend of synergistic antioxidants plus metal chelator.
 
 The results imply that different feedstocks show drastically different responses to additives and certain additives respond much more favorably. Ethanox 4760E shows a very powerful response in yellow grease and poultry fat. The specially formulated combination of antioxidants plus metal chelator in Ethanox 4760E leads to the robust performance seen in all the biodiesel tested versus the other stabilizers. 
 
 Based on the above data and feedstock trends in North America, a stability study was performed utilizing blends of biodiesel produced from soybean oil, poultry fat and yellow grease feedstocks. Soybean oil-based biodiesel was selected as the base because soybean oil is the principal biodiesel feedstock in the United States. Poultry fat and yellow grease biodiesel were chosen due to the abundance and low cost of these underutilized feedstocks. Some estimates state that 2.3 billion pounds per year of poultry fat may account for 300 MMgy of biodiesel, while 2.75 billion pounds per year of yellow grease may account for similar quantities of biodiesel. These estimates suggest that future biodiesel production may see much greater use of these alternative feedstocks.
 
 <center><img src="/images/upload/20080318104018.jpg" alt="" />
 Table 1. Feedstock blends used in Rancimat testing (figures listed as percentages)
 SOURCE: ALBEMARLE CORP.</center>
 

 <center><img src="/images/upload/20080318102034.jpg" alt="" />
 Figure 2. Oxidative stability index results from blend study
 SOURCE: ALBEMARLE CORP.</center>
 
 <center><img src="/images/upload/20080318102737.jpg" alt="" />
 Figure 3. Oxidative stability index improvement as a cost/performance estimate
 SOURCE: ALBEMARLE CORP.</center>
 
 <center><img src="/images/upload/20080318102041.jpg" alt="" />
 Figure 4. Contour plot showing Ethanox 4760E performance
 SOURCE: ALBEMARLE CORP.</center>
 
 Blend Study

 Biodiesel blends were prepared as shown in Table 1. Each of the blends was treated with 300 parts per million of various antioxidants (BHT, TBHQ/citric acid blend in solvent, and Ethanox 4760E). The blends were tested in the Rancimat to determine the oxidative stability index value. The blends without antioxidants were also tested as a reference. The oxidative stability index results are shown in Figure 2. The data shows that Ethanox 4760E performs superior to all the other antioxidants tested, whether evaluated in a pure biodiesel or biodiesel comprised of varying feedstocks. A significant performance gain from Ethanox 4760E relative to pure soybean biodiesel is seen whenever poultry fat or yellow grease biodiesel is used in the blend (compare B4, B5 and B7 to B2).
 
 Cost-performance economics are critical when trying to select a stabilization system for biodiesel. This type of analysis generally requires additive performance information as well as additive pricing. It's well known that additive pricing can be affected by many factors including production costs, purchased volumes and shipping costs. Figure 3 describes the improvement in oxidative stability index achieved when using 300 ppm of each of the listed stabilizers. As an estimate, a greater improvement in oxidative stability index corresponds to a more cost effective stabilization system (of course this assumes equal additive cost, which is typically not the case). Note in this type of analysis Ethanox 4760E is typically the most effective option whether a single biodiesel is used or whether blends of biodiesel are used.
 
 Estimating Oxidative Stability Index Results
 The data for each antioxidant in Figure 2 can be illustrated in the form of a contour plot that visualizes the predicted oxidative stability index results for biodiesel blends not actually included in the study. Figure 3 shows such a contour plot for Ethanox 4760E oxidative stability index data. The labels B1 through B7 indicate the locations on the contour plot where the actual tested blends are located. By moving on the surface of the contour plot, predictions of oxidative stability index can be made on blends not actually tested. The contour plot clearly shows the trend for the various biodiesel and biodiesel blends where stability follows: poultry is greater than yellow grease is greater than soybean oil.
 
 The formula embedded in this plot is a useful tool for determining oxidative stability index when blending biodiesel from different sources. From these three particular biodiesel sources we have the following quadratic equation to estimate oxidative stability index data:
 
 Oxidative stability index (hours) = 0.29A + 0.07B + 0.13C - 0.002AB - 0.00053AC - 0.00065C
 
 "A" is the percentage of poultry fat-based biodiesel. "B" is the percentage of soybean oil-based biodiesel, and "C" is the percentage of yellow grease-based biodiesel.
 
 For example, if a biodiesel producer typically uses 80 percent soybean oil and 20 percent poultry fat, the equation would predict an oxidative stability index of 8.2 hours when using 300 ppm of Ethanox 4760E. If this particular producer decided to reduce costs by using 60 percent soybean oil, 20 percent yellow grease and 20 percent poultry fat feedstock, the equation would predict an oxidative stability index of 9.2 hours when using 300 ppm of Ethanox 4760E. Thus for the specific biodiesel samples used in this study, the change in feedstock composition would predict an improvement in oxidative stability index.
 
 Summary

 As the demand for biodiesel increases, alternative feedstocks other than soybean will need to be utilized. Poultry fat and yellow grease represent attractive options. The above study shows that a properly formulated stabilization system such as Ethanox 4760E can meet the challenges of stabilizing biodiesel produced from multiple feedstock sources as well as feedstock blends.
 
 Emily Schneller and Vincent Gatto are with Baton Rouge, La.-based Albemarle Corp. Reach Schneller at <a href="mailto:emily_schneller@albemarle.com">emily_schneller@albemarle.com</a> and Gatto at <a href="mailto:vince_gatto@albemarle.com">vince_gatto@albemarle.com</a>.

Stabilizing Biodiesel Blends from Multiple Feedstocks

Recently, the United States Securities and Exchange Commission proposed to make certain revisions to Regulation D of the Securities Act of 1933. Regulation D provides for various securities registration exemptions that were intended to assist smaller companies in raising capital. The purpose of these exemptions was to allow companies to raise significant capital, whether to capitalize a new company or raise additional capital for an existing company, without requiring a full registration of the offering. Registration can be costly, and may not be feasible for smaller companies to undertake. 
 
 According to the SEC, the proposed revisions are intended to clarify certain SEC staff interpretations of Regulation D and to modernize the regulations to reflect current market conditions. The SEC tries to strike a balance between the needs of small businesses to raise capital in a cost-effective manner and the need to protect investors. Please note that the revisions the SEC is proposing are not final and may not be implemented as they are currently proposed. 
 
 One of the most significant proposed changes to Regulation D includes the creation of a new exemption under Rule 507. The proposed Rule 507 would allow for certain limited advertising in offerings that are made only to "large accredited investors." General advertising is prohibited in other commonly used Regulation D exemptions. The term large accredited investor is defined in the proposed Rule 507 as entities with assets in excess of $10 million, individuals who own investments in excess of $2.5 million or have annual income in excess of $400,000, among other requirements. The limited advertising may allow companies to attract investments by certain large investors that the company would not otherwise have access to. 
 
 Certain Regulation D exemptions treat high net worth investors differently, under the assumption that they do not need as much protection from the SEC as other investors. These high net worth investors are called accredited investors in Regulation D and are subject to certain financial suitability thresholds. Another of the SEC's significant proposed revisions to Regulation D is to adjust these financial suitability thresholds for inflation. The SEC is concerned that not linking these thresholds to inflation actually reduces the protection of these thresholds over time. The SEC is considering this step despite the fact that it is concerned this may lead to companies avoiding the use of the Regulation D exemptions. 
 
 Increasing these investor suitability thresholds could, in the future, shrink the pool of potential investors for companies seeking to raise capital through Regulation D exemptions. 

 The SEC has also proposed to reduce the amount of time that companies must wait between exempt offerings in order to consider the two offerings to be separate. Should the SEC consider the two offerings to be part of the same offering, it may make certain Regulation D exemptions unavailable. The SEC has proposed to reduce these waiting periods, allowing companies more flexibility in relying on several different exemptions under Regulation D within a reasonably short period of time, even if these different exemptions have inconsistent requirements. Currently, companies must wait six months between exempt offerings in order for the SEC to consider them separate offerings. The proposed revisions to Regulation D would shrink this six-month waiting period to 90 days. This is a significant reduction that would give companies flexibility in designing their capitalization plans. 
 
 While the SEC has not yet adopted these revisions to Regulation D, they do signal sensitivity by the SEC to the difficulty smaller companies face in raising the capital they require. 
 
 While the SEC seeks to strike a balance between the needs of smaller businesses and protection of investors, these proposed revisions, should they be adopted, would allow companies to raise capital in an efficient manner without having to resort to costly registration of these offerings.
 
 Catherine C. Cownie represents a number of renewable fuels clients in the federal and state registration process and Joseph F. Leo practices mainly in the area of securities law and corporate transactions. Both practice at BrownWinick, a Des Moines, Iowa-based law firm serving the renewable fuels industry. Reach Cownie at <a href="mailto:cownie@brownwinick.com ">cownie@brownwinick.com </a>or (515) 242-2490 and Leo at <a href="mailto:leo@brownwinick.com">leo@brownwinick.com</a> or (515) 242-2462.

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2007 Proposed Revisions to Regulation D

Web exclusive posted March 18, 2008 at 2:00 p.m. CST 
 
 Conventional ethanol is the best choice for a sustainable biofuel, according to research recently conducted by Context Network LLC. On March 7, the Iowa-based consulting firm released a 56-page paper, titled "A Review of the Energy Independence and Security Act of 2007, and Its Impact on U.S. Grain and Oilseeds Production", which assessed whether the requirements of the EISA could be met and the impact of those requirements. It was assessed in three time frames: short term (2008 to 2010), medium term (2011 to 2015) and long term (2016 to 2022).

 
 According to the paper's principle author Jim Murphy, the most significant finding was that cellulosic ethanol has little chance of becoming a major contributor to the biofuels market. "While there's high hopes for cellulosic ethanol, it's going to develop much more slowly than people think," he said. The paper noted that there are only two cellulosic ethanol pilot plants currently operating in the United States. Other demonstration plants won't begin producing until 2010 or 2011, making the short-term EISA requirement of having 100 million gallons of cellulosic ethanol by 2012 unattainable. 
 
 Medium- and long-term outlooks also failed to provide positive results for cellulosic ethanol. "It becomes a more chronic situation as time goes on," Murphy said. "The law mandates blending of 16 billion gallons [of cellulosic ethanol] by 2022. Our estimate is that, at best, we're going to reach somewhere around 3 billion."
 
 The paper's authors suggest that legislation after 2015 will be more favorable toward cellulosic ethanol and could prompt an increase in production after 2020. Agricultural residues, forest residues and municipal solid waste are expected to be the major cellulosic feedstocks.
 
 The advancement of cellulosic ethanol will be dependant on technology developments and new legislation on greenhouse gases, Murphy said, adding that it will most likely lead to the removal of the current ethanol tariff. "We (Context) are sticking our neck out because it is very much a policy decision that would have to come through Congress, but there's been several mentions of it [recently]," he said. "The fact that sugarcane-based ethanol contributes far less to greenhouse gases than corn-based ethanol is going to give it some advantages."
 
 Murphy said it's very important to note that the EISA requirements are consumption-not production-mandates, and imports could play a substantially large part in U.S. biofuels consumption in the future. The paper's authors predict the number of biofuel gallons imported to the United States could be more than five times greater in the long term.
 
 Biodiesel supply is predicted to meet short- and medium-term requirements, but it's the most vulnerable of all biofuels. "The feedstock, generally speaking, is one that is a direct human consumable," Murphy said. "Because of that, it's always going to have great difficulty as a significant contributor as a biofuel." Murphy added that animal fats as a feedstock can be effective, but biodiesel will continue to be a niche fuel, requiring major government subsidies to exist.
 
 Conventional ethanol is the best choice for fuel when considering EISA requirements, Murphy said. The paper states that researchers expect blenders credits to be renewed until 2015. Murphy pointed to current gas prices as an indication of ethanol's future. "People are now forecasting that ethanol is having a positive effect on gas prices," he said, adding that ethanol's positive effect on the price margin is often overlooked. 
 
 The authors noted that an important litmus test for the future of ethanol will be how soon the U.S. EPA determines if E15 or E20 can be used in standard vehicles. Murphy and others may soon be able to see if their prediction is correct. A recent University of Minnesota study determined that E20 can safely be used in nonflexible-fuel vehicles. Minnesota legislators are expected to petition the EPA on that issue later this year.

Study: Cellulosic ethanol a long shot

Web exclusive posted March 18, 2008 at 2:13 p.m. CST 

 
 GreenHunter Biofuels Inc., a wholly owned subsidiary of publicly traded renewable energy company GreenHunter Energy Inc., announced the closing of two independent tank-leasing transactions March 5. 
 
 The new business transactions include loading, unloading, bulk storage, throughput management, vessel scheduling and logistical management for several bulk liquid products. 
 
 These two unrelated and unnamed operations will use GreenHunter Biofuels' new tank storage at its Renewable Fuels Campus in Houston, which is in the final stages of construction and includes a 105 MMgy biodiesel plant, a 700,000-barrel bulk liquid terminal operation and a 200 million-pound-per-year glycerin refinery. Its strategic location allows for the transport of raw materials and finished products via barge, rail, truck or pipeline. "These initial transactions confirm our business strategy of building bulk liquid terminal assets along the Gulf Coast to achieve our return on capital expectations, and support our operations and distribution plans," said Bruce Baughman, vice president of engineering and technology for GreenHunter Biofuels. "We are currently evaluating additional terminal service opportunities similar to these recently closed deals. We look forward to pursuing similar transactions with industrial clients in the greater Gulf Coast region."

Greenhunter Biofuels' Renewable Fuels Campus in Houston includes a 105 MMgy biodiesel plant, a 700,000-barrel bulk liquid terminal operation and a 200 million-pound-per-year glycerin refinery./PHOTO: GREENHUNTER BIOFUELS, INC.

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GreenHunter completes storage transactions

Web exclusive posted March 18, 2008 at 2:21 p.m. CST 
 
 The nation's first commercial-scale, open-pond algae farm to produce oil as a biodiesel feedstock will begin operating near South Padre Island, Texas, on April 1. PetroSun Biofuels Inc., a wholly owned subsidiary of PetroSun Inc., will operate the farm, which is located on the site of a former shrimp farm, according to Jim LeCrone, chief operating officer of PetroSun Biofuels. 
 
 The facility currently has 94 five-acre ponds and 63 10-acre ponds totaling 1,100 acres of growing space on the 1,831-acre site. "The farm will give us a step into immediate large-scale production and extraction of the algal oil," LeCrone said. "This is a quick start because the ponds are there and ready to go. This will be like a giant pilot plant for us, showing us how to do this on a much larger scale." The open-pond system will use salt water, which implies a marine species of algae, but LeCrone wouldn't confirm that. 
 
 The site has preexisting ponds, offices, labs and a building, which will allow the company to get the site up and running quickly. "If you go out and try to develop a farm, the first and foremost thing is the cost of the land," LeCrone said. "You want to go where the land is cheap and you won't be messing up the environment. The nice thing about this setup is that the land is there, and it has already been developed. We won't have that learning curve to go through, and permitting will be easier. It makes the whole process much easier, so we can get started." If the algae farm is successful, there are surrounding areas available for expansion.
 
 PetroSun Biofuels is moving rapidly to create a widespread network of algae farms around the world, forming subsidiaries in Mexico, Brazil and Australia. It has also announced plans to build additional farms in several U.S. states. The company has entered a joint venture with Optimum Biofuels LLC to develop a biorefinery in Arizona and has purchased a 50 percent interest in Fleet Biodiesel Inc., which is acquiring an existing biodiesel facility in Bridgeport, Ala. Some of the algae oil produced in Texas may go to the Alabama facility. "They are using a different type of feedstock right now, but [in the] long term, that is a possibility," LeCrone said. "We are building a facility in Coolidge, Ariz., and that will also be a customer. We are also talking with potential customers in Louisiana."
 

 LeCrone said tests conducted at the PetroSun Biofuels pilot algae farm in Opelika, Ala., showed oil production between 5,000 and 8,000 gallons per acre per year. He said challenges with extracting the algae from the water and the oil from the algae were overcome at the pilot facility. "All of the technology was developed at Opelika over the last year," he said. "We have a process that is totally different than what anyone else has been doing. We can't divulge what that process is, but we don't have a problem with any of those things." After extraction, the residual algae biomass can be made into ethanol or other products.
 
 After the oil is extracted on-site using a proprietary process, it will be shipped to company-owned or joint-venture biodiesel production facilities. "We can ship by land, sea or rail, so this site is pretty nice that way," he said.
 
 PetroSun will conduct jet fuel and bioplastics research and development projects supported by the supply of oil from the operation. 
 
 CLARIFICATION: According to Petrosun CEO Gordon LeBlanc, oil production at the Opelika facility was between 2,000 and 5,000 gallons per acre. Additionally, he added, all of Petrosun's technology was developed before the Opelika facility was established.
 
 An aerial view of the algae farm can be found at <a href="http://tinyurl.com/2clmzc">http://tinyurl.com/2clmzc</a>.

PetroSun algae farm to begin operation April 1

Web exclusive posted March 18, 2008 at 2:53 p.m. CST 
 
 The Federal Trade Commission is seeking comments on a proposed rule change regarding biodiesel fuel labeling requirements. The commission is proposing to amend the Fuel Rating Rule (16 CFR, Part 306) to include rating, certification and labeling requirements for biodiesel fuel. The amendments are required by Section 205 of the Energy Independence & Security Act of 2007. Comments must be received by April 7. The text of the Federal Register notice, as well as instructions for submitting comments, can be found at <a href="http://www.ftc.gov/os/2008/03/R11005biodiesel.pdf">www.ftc.gov/os/2008/03/R11005biodiesel.pdf</a>.

FTC seeks biodiesel pump labeling comments

Web exclusive posted March 19, 2008 at 3:15 p.m. CST 

 
 PerkinElmer Life and Analytical Sciences, a global leader in application-focused measurement and analysis solutions, introduced two new biodiesel platforms at the Pittsburgh Conference on Analytical Chemistry and Applied Spectroscopy on March 1-7. The Waltham, Mass.,-based company unveiled the EcoAnalytix Trace Metals Biodiesel Analyzer, and the EcoAnalytix Glycerin and Methanol Analyzer, which reads the total glycerin and residue alcohol in biodiesel.
 
 The biodiesel application platforms were designed to help biodiesel manufacturers ensure the quality of fuel, as well as meet ASTM International and European Committee for Standardization specifications. 
 
 "As energy manufacturers around the world explore and commit to using more biodiesel, it is critically important to ensure that the promise of cost-effective, high-quality biodiesel can be realized," said Alessandra Rasmussen, PerkinElmer director of strategic programs.
 
 Rasmussen said the glycerin and methanol analyzer utilizes an innovative dual-oven design, enhancing the analysis of both free and total glycerin, as well as residual alcohol. "The dual oven increases the manufacturer's productivity by allowing it to conduct two types of analysis in one instrument," she said.
 
 She continued, "Our goal is to provide analysis tools that are easy to use and ensure high quality results, regardless of whether the user has a scientific background. Our analyzer approach provides step-by-step instructions and training to ensure fast ramp-up. This approach ensures higher accuracy and faster time to market."
 
 The platforms are part of PerkinElmer's EcoAnalytix initiative, a collaborative problem-solving initiative to create application-based solutions for business ecosystems while supporting local, regional and global initiatives that contribute to a healthier worldwide ecosystem.

PerkinElmer releases two biodiesel platforms

Web exclusive posted March 20, 2008 at 3:05 p.m. CST 
 
 Innovation Fuels in Albany, N.Y., and Iowa Renewable Energy in Washington, Iowa, were added to the National Biodiesel Accreditation Program's list of BQ-9000 accredited producers this month. 
 

 Innovation Fuels is the first BQ-9000 accredited producer in the Northeast. "We have understood the importance of the BQ-9000 program since our inception," said Chief Marketing Officer Bob Lindebaum. 
 
 The voluntary National Biodiesel Accreditation Program, administered by the National Biodiesel Board, is a combination of the ASTM D 6751 standard for biodiesel and a quality systems program that includes storage, sampling, testing, blending, shipping, distribution and fuel management practices. Any biodiesel producer, marketer or distributor of biodiesel or biodiesel blends in the United States and Canada is eligible to receive producer accreditation or marketer certification, but companies must first pass a rigorous review and inspection of their quality-control processes by an independent auditor.

Two producers join BQ-9000

Web exclusive posted March 19, 2008 at 3:28 p.m. CST 
 
 American Renewable Fuels, a Dallas-based subsidiary of Australian Renewable Fuels, announced in mid-March that its 75 MMgy biodiesel plant would be delayed for three months because of funding difficulties. It was in the permitting phase at the time of the announcement.
 
 Earlier this year, Clovis Biodiesel, a 15 MMgy venture by ARES Corp. and Blue Sun Biodiesel LLC, delayed its construction in Clovis because of financing issues and a poor economic climate. The facility is 85 percent complete. 
 
 In January, ConAgra Foods scrapped a proposed 110 MMgy ethanol plant in Clovis when opponents objected to its location near low-income and minority neighborhoods. The delay caused by the opposition resulted in market conditions that ConAgra said were prohibitive, and the company decided not to proceed. 
 
 Clovis officials are taking these announcements in stride. "It's the U.S. economy," said Chase Gentry, executive director of Clovis Industrial Development Corp. "Right now, the stock market is in flux, you have banks that are a little nervous so they're being conservative in what they loan, and you've got raw products for these biodiesel and ethanol plants going up across the nation. It's having an effect on building these plants whether it's in Clovis or anywhere in the nation. It's just an unstable environment." 
 
 American Renewable Fuels' delay was welcomed by Clovis Industrial Development, Gentry said. "We've got a main sewer line we're putting in and we're putting in a new road, so we need to get those in before they start construction," he said. "I just got the bids in, so it'll take 60 to 90 days to get them completed." 
 
 Both biodiesel plants will be located in the same industrial park, but Gentry doesn't see any problems with two similar businesses being neighbors. "They're not competitors," he said. "They have different markets and different source products." Clovis Biodiesel uses soy oil and rapeseed oil as feedstocks, while American Renewable Fuels is planning on using animal fats, he said. American Renewable said it expects to begin construction in July.

Second biodiesel project stalls in Clovis, N.M.

Web exclusive posted March 21, 2008 at 11:59 a.m. CST

 
 On March 11, South Dakota Gov. Mike Rounds signed Senate Bill 148 into law, giving biodiesel producers a 2-cent-per-gallon tax break, which will go into effect after South Dakota producers have 20 million gallons of annual production capacity online and produce at least 10 million gallons. Under SB148, the per-gallon tax on biodiesel in South Dakota is 20 cents. The law has a sunset provision that will end the incentive in the fiscal quarter after 35 million gallons of taxable fuel blended with at least 5 percent biodiesel are produced and sold in-state.
 
 Once in effect, the tax break will be paid for by transferring $800,000 from the Petroleum Release Compensation Fund reserve to the Highway Trust Fund. 
 
 "As diesel costs continue to skyrocket, this tax break will help ease the pain at the pump for consumers while helping to develop our state's biodiesel industry," Rounds said. "Biodiesel is an ideal alternative to petroleum-based fuel. It will not reduce mileage, and because of its increased lubricity, it is better for the engine."
 
 According to Rounds' spokesman Mitch Krebs, the governor signed the bill in an effort to spur more potential producers into business. "If more people use it, more people will produce it," Krebs said. "The governor sees it as a way to help."
 
 Midwest Biodiesel Producers, a 7 MMgy facility in Alexandria, is the state's only biodiesel plant.
 
 A 2-cent-per-gallon incentive is already in effect for ethanol producers that produce 416,667 gallons per month.

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S.D. governor signs biodiesel incentive

Web exclusive posted March 19, 2008 at 4:04 p.m. CST 
 
 On March 10, Iowa-based Renewable Energy Group Inc. inked a partnership with ISE Corp., a California-based hybrid-drive-systems and control-software supplier, to market biodiesel to city bus fleets across the United States. 
 

 According to the two companies, ISE will help REG identify customers, depot locations, vehicle numbers, existing fuel tank sizes and potential locations for its biodiesel injection blending system. In January, REG announced it would sell the systems to truck stops, enabling truckers to buy biodiesel blends mixed at the pump. This new deal accelerates REG's biodiesel reach into mass transit systems. 
 
 "ISE, because of its hybrid-vehicle business, has an established client base with a number of these mass transit authorities already, so it's a natural partnership for us to work with them," said Jon Scharingson, REG director of marketing. He added that the deal could potentially involve "hundreds or thousands of buses, and millions of gallons of fuel." 
 
 The companies have preliminarily identified biodiesel market segments such as transit buses, refuse vehicles and port drayage vehicles. "There's almost unlimited potential because there are opportunities with most of the major mass transit systems around the country, particularly a lot of these cities that are going green, to significantly start them off or significantly increase their utilization of biodiesel," Scharingson said. 
 
 ISE was formed in 1995. Several California cities use buses powered by ISE's gasoline-hybrid system. REG, which owns seven biodiesel plants with an annual capacity of 220 MMgy, engages in biodiesel production, management, marketing, sales and plant construction management. 
 
 "We've looked at different mass-transit systems around the country," Scharingson said. "New York City uses hundreds of millions of gallons of diesel a year, so if you could get them using B5 or B10, you're talking the potential of tens of millions of gallons of biodiesel."

REG partners to market biodiesel to mass transit systems

Web exclusive posted March 21, 2008 at 4:28 p.m. CST 
 
 Cargill Inc. has been ordered to pay a $100,000 fine for alleged environmental violations at an Iowa Falls, Iowa, biodiesel plant. 
 
 A court has ordered Cargill to pay the penalty after Iowa Attorney General Tom Miller filed a lawsuit. "We alleged a series of violations relating to water pollution, wastewater pretreatment and solid waste," Miller said. Cargill has resolved the issues and is in compliance, but these were serious violations."
 
 The allegations in the suit brought against Cargill were presented in a press release by the office of the Iowa Attorney General. 

 
 Wastewater Pretreatment Violations
 The complaint states that during several months in 2005, 2006, and 2007, the company exceeded its pretreatment effluent limitations when their biodiesel production facility, which generates high-strength wastewater and sludge, discharged into the wastewater treatment facility.
 
 Solid Waste Violations
 The complaint alleges that after the city of Iowa Falls, Iowa, refused further wastewater, Cargill hired Mort's Inc., of Latimer, Iowa, to haul the sludge away and land apply it. Between June 14, 2006 and July 9, 2006, 135,000 gallons of sludge were disposed of at two different pasture sites. The suit alleges that neither Cargill nor Mort's complied with numerous requirements of land applications regarding sludge. The suit also claims that the sludge wasn't tested to determine appropriate application, as required by law.
 
 Water Pollution Violations 
 The suit alleges that on July 9, 2006, the Iowa Department of Natural Resources received a complaint by golfers on the Meadow Hills Golf Course, near Iowa Falls, Iowa, that dead fish were floating in the water of School Creek and the water had a milky white appearance. An investigation was conducted by the DNR that concluded the source of the wastes was on of the land application sites used by Mort's. According to published reports, the discharge "created an acutely toxic environment that resulted in the death of at least 582 fish."
 
 Cargill has discontinued its land-application of sludge with Mort's. The waste is now hauled to the Wastewater Reclamation Facility in Des Moines, Iowa.
 
 In addition to the $100,000 civil penalty, the order prohibits future violations at any of Cargill's five Iowa facilities.
 

 The lawsuit filed by the state, also names Mort's, but allegations against the company were not resolved by the Consent Order, Judgment and Decree. That lawsuit is pending.
 
 Cargill Inc. was contacted by Biodiesel Magazine, but did not return calls.

Cargill ordered to pay $100,000 environmental penalty

Web exclusive posted March 21, 2008 at 4:30 p.m. CST 
 
 An undergraduate research project may lead to a revolution in biodiesel manufacturing. Brian Krohn, a senior at Augsburg College in Minneapolis, Minn., worked with his advisor, Arlin Gyberg, to select a research project for Krohn's chemistry major. Because they both had an interest in biofuels, Krohn decided to investigate the chemistry of manufacturing biodiesel. "Without Brian being interested in this project we never would have started," Gyberg said. "We decided to do a very thorough literature search on this. So he spent the first two or three weeks doing a very extensive literature search looking at more than 1,000 articles, which he narrowed down to 100. Out of that we ran across two papers that caught our eye."
 
 The papers discussed esterification catalyzed by solid strong acids to manufacture biodiesel. Gyberg, who has a background in chromatography, which uses columns of chemically active solids to separate mixtures of chemicals, wondered if a similar column could be used to make biodiesel. He contacted Augsburg alumni, Clayton McNeff, who invented a chromatography method using zirconia and formed a company to sell it. "One of the papers had mentioned zirconia based catalysts," Gyberg said. "Nobody out there had ever thought of zirconia being a catalyst because they're chromatographers."
 
 Along with fellow scientist Ben Yan, Gyberg and McNeff built and tested a column that mixed oil and alcohol with the catalyst under high heat and pressure until the mix became supercritical, a state where the mixture contains properties of both a gas and a liquid. Under the right conditions in the column, the oil and alcohol were converted into biodiesel in six seconds. Gyberg said the column allows for continuous production of biodiesel – as opposed to the current batch method of production. A column about 4 inches in diameter and two feet long will be able to produce 3 million gallons of biodiesel per year. The process can also convert glycerin into dimethyl ether, which is more valuable in the current market.
 
 McNeff, Gyberg and Yan named the method, the Mcgyan process, and have applied for a patent. 
 
 For the past six months a pilot plant using the Mcgyan process has been using a wide range of feedstocks with no problems, Gyberg said. 
 
 McNeff has formed the company, Ever Cat Fuels LLC, to build a commercial-sized 3 MMgy facility in Isanti, Minn. The company broke ground in November, and if permitting is on schedule, the plant should be operating by October. The plant will use hydrous ethanol, rather than methanol, and corn oil extracted from distillers grains as the feedstock. Gyberg said the feedstock will have up to 20 percent free fatty acids, which renders it almost useless for traditional biodiesel production, however, the Mcgyan process converts free fatty acids to biodiesel as easily as virgin vegetable oil. "The process converts it 100 percent to biodiesel with essentially no waste," Gyberg said. At the end of the process, the finished biodiesel doesn't need to be washed. And he added, the use of feedstocks from a nearby ethanol plant, will make Ever Cat Fuels' cost of production nearly $2 per gallon lower than other biodiesel plants.

Minnesota scientists create new biodiesel manufacturing process

Web exclusive posted March 21, 2008 at 4:35 p.m. CST 

 
 On March 13, the National Biodiesel board announced the appointment of nine members to its sustainability task force. The new task force and its chair, Emily Bockian Landsburg of Philadelphia Fry-O-Diesel, were first announced at the National Biodiesel Conference in February. The task force ensures that the U.S. biodiesel industry protects the environment, while producing jobs and reducing dependence on foreign oil, according to the NBB. 
 
 Task force members appointed were: Rachel Burton, Piedmont Biofuels; Victoria Carver, Iowa Soybean Association; Dennis Fisher, Archer Daniels Midland; Doug Hanson, South Dakota Soybean Research & Promotion Council; Tim Maneely, U.S. Biodiesel Group; Kumar Plocher, Yokayo Biofuels; Doug Smith, Baker Commodities; and Jeff Trucksess, Green Earth Fuels.
 
 The task force members were chosen from over 200 applicants to represent the broad spectrum of the industry, Bockian Landsburg said. "We were thrilled to receive so many applications and recommendations from across the industry, up and down the supply chain," she said. "This positive response is a testament – both to how much we as an industry care about sustainability and to the urgency of this issue. In order to develop best practices that will be adopted throughout our industry, we selected a task force that represents the various segments of the industry and regions of the country. Recognizing the need for input from critical stakeholders who are not members of the NBB, such as environmental organizations, government entities, and sustainability advocates, we are forming an advisory committee that will be heavily involved in this process."
 
 The task force will oversee the development and implementation of a comprehensive sustainability roadmap for the U.S. biodiesel industry, which will quantify and maximize the environmental and social benefits of biodiesel; ensure that biodiesel produced and sold in the U.S. comes from sustainable resources; ensure that the best environmental and safety practices are followed in the production of biodiesel; develop mechanisms to encourage responsible use of the world's resources; and discourage the use of non-sustainable agriculture practices worldwide in biodiesel production.
 
 The sustainability task force will be covered in more detail in a feature by staff writer Susanne Retka Schill in the April issue of Biodiesel Magazine.

NBB appoints sustainability task force members

Web exclusive posted March 24, 2008 at 4:41 p.m. CST 
 
 Continental Airlines plans to showcase a biofuel demonstration flight in 2009, attempting to reduce their carbon emissions through use of sustainable fuel.

 
 The flight will use a Boeing Next-Generation 737 equipped with CFM International CFM56-7B engines.
 
 The undisclosed fuel provider will work with Continental, Boeing, and General Electric Aviation, to identify sustainable fuel sources that don't impact food crops, water resources, or contribute to deforestation, said Terrance Scott, a spokesman for Continental. 
 
 Continental has achieved a 35 percent reduction in greenhouse gas emissions and fuel consumption per mainline revenue passenger mile flown over the past 10 years, Scott said. 
 
 Scott Donnelly, president of GE Aviation, said "we will be working with our jet engine team." He added, GE has considerable experience working with biofuels in jet engines for aviation, and are eager to get started in the environmentally-friendly effort.
 
 "Exploring sustainable biofuels is a logical and exciting new step in our environmental commitment," said Mark Moran, executive vice president of operations, at Continental Airlines. 
 
 "Continental has been aggressively pursuing efforts to reduce carbon emissions for years," said Ray Conner, executive vice president of sales, Boeing Commercial Airplanes. 
 
 Additional details, including flight plan, will be released closer to the date of the flight.

Continental Airlines to test biofuel plane

Web exclusive posted March 24, 2008 at 4:49 p.m. CST 
 

 On March 17, New Zealand-based algae biodiesel developer Aquaflow Bionomic Corp. announced the appointment of Desmond Ashton as a consultant to lead aviation projects, as well as other key areas of operational development. Ashton, a pilot and aeronautical engineer, owns his own aviation consultancy business and previously served as CEO of Port Marlborough, where he oversaw port operations as well as operating Blenheim Airport in Blenheim, New Zealand. He has held senior positions in the Royal New Zealand Air Force and was chairman of the Defense Industry Committee of New Zealand and vice-chairman of the Aircraft Industry Association Engineering Division.

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Aquaflow appoints aviation specialist

Web exclusive posted March 26, 2008 at 4:08 p.m. CST 
 
 The "Important Notice" on SoyMor Biodiesel, LLC's Web site sums up the fragile state of the biodiesel industry today: "Due to current biodiesel economics the Board of Governors of SoyMor Biodiesel, LLC are suspending the production of biodiesel at this time. SoyMor's Board of Governors has reviewed all possible alternatives regarding the plant's operations and has concluded that the suspension of production is the most prudent decision to ensure long-term viability of SoyMor."
 
 SoyMor, formed in 1999 by 650 Minnesota and Iowa agricultural producers, fell victim to the rising cost of soy oil feedstock. Only three of its 35 employees remain on the job, plant officials said. The 30 MMgy plant suspended operations in mid-March. "We never intended biodiesel plants to run 60 or 70 cent oil," SoyMor's board chair, Gary Pestorious, said. "When we invested in it and put the project together it was 20 cents." Pestorious added, when soy oil hit 62 cents a pound, plant officials estimated the company lost $1 per gallon produced. 
 
 Biodiesel Magazine recently completed a survey of North American biodiesel refineries, finding numerous plants idled or producing at rates well below their nameplate capacity. The results of the study will be published in the May edition of Biodiesel Magazine.
 
 SoyMor's woes occur in a political climate struggling to keep pace with the industry. Minnesota has pending state legislation that would mandate use of B20 blends by 2015. The Energy Independence and Security Act of 2007 mandates a six-fold increase in biofuels production by 2022.
 
 Biodiesel Magazine's survey found that because soy oil doesn't ensure a profit, many biodiesel plant managers and developers are looking to low cost feedstocks to survive and many plants are switching feedstocks regularly. One plant manager surveyed told the magazine he is reluctant to state what feedstock he's using now – or eyeing next - because "right now everybody in the world will try to take my supply." 

 
 Retrofitting SoyMor's plant to use fatty acid feedstocks, or anything other than soy, will cost $5 million to $10 million, Pestorious said. That's not a sum the farmers want to raise right now, he added.
 
 "The relative value of feedstock has increased proportionately," said Rick Kment, a biodiesel analyst for Data Transmission Network. Many of the smaller plants can't take advantage of buying large quantities of a feedstock on futures markets, he added.
 
 Pestorious said the current market "run up" is probably temporary, and he's optimistic that prices will settle back down. "We just have to be cognizant of the fact that sometimes the market just doesn't work and the best thing is to be prudent business people and close it up when you have to," he said. A separate business, a soybean lecithin fractionation and de-oiling facility in the same industrial park, is scheduled to open later this year, Pestorious said.
 
 Kment believes that smaller plants may be able to weather the market better. "They don't have a lot of employees and structure, costs and depreciation," he said. "They might be able to just close and reopen at a later date.

Minnesota biodiesel plant shuts down

Web exclusive posted March 27, 2008 at 11:12 a.m. CST 
 
 Iowa-based Renewable Energy Group Inc., has withdrawn plans for an initial public offering to raise $150 million to finance construction of three biodiesel plants. In a brief statement filed March 17 to the U.S. Securities and Exchange Commission, REG said "market conditions do not support a public offering…at this time." Three days later, the company announced it would also stop construction on a 60 MMgy plant just outside of New Orleans. However, on March 21 REG announced it would be one of two financiers in a Danville, Ill., biodiesel venture.
 
 In a July 2007 IPO prospectus filed by REG, it cited self-reported surveys of industry biodiesel production as support for the filing. But REG also cautioned that the unverified surveys, filled out by individual producers, might portray annual biodiesel production amounts more optimistically than an independent source. After the July 2007 filing, no terms for the stock purchase were set; the withdrawal came on March 17.
 
 SoyMor Biodiesel LLC, a 30 MMgy Minnesota producer owned plant operated by REG, announced in mid-March it was suspending production because it was losing $1 per gallon of biodiesel produced when soy oil prices hit 62 cents a pound. A recent survey conducted by Biodiesel Magazine found that numerous North American plants are currently idle or producing well below nameplate capacity. The survey will be published in the May edition of the magazine. 

 
 The Danville, Ill., plant, which the original developers abandoned earlier this year for unknown reasons, will now be owned by Illinois-based Blackhawk Biofuels LLC, and operated by REG, which will provide debt financing for the project. Although the plant was nearly completed when the acquisition took place in mid-March, Blackhawk wants to modify the soy oil plant to accommodate multiple feedstocks. The plant is expected to be operational in August 2008.
 
 REG had earmarked proceeds from the IPO to fund one-third of the construction costs of three 60 MMgy plants in New Orleans, Emporia, Kan., and North Vancouver, British Columbia. According to the company's Web site, construction is still underway at the Emporia site; there is no information on the North Vancouver plant's status.
 
 REG said it hoped to secure financing for the Louisiana plant once market conditions improved. A delay in obtaining bond financing approval caused conditions to sour, making plant construction unwise, the company said.
 
 REG also owns a 12 MMgy plant, and operates three other plants with an annual capacity of 120 MMgy, including the SoyMor plant, for other owners. 
 
 In January, REG announced plans to market a blending system to retail truck stops, allowing truckers to buy biodiesel blends at the pump. In mid-March the company announced a joint venture with a hybrid drive system supplier to co-market biodiesel to city bus fleets across the United States. But despite these marketing efforts, REG has not been immune to the high feedstock prices, rising construction costs and other market forces that are currently thwarting profits.
 
 "The implementation of biodiesel in the fleet vehicles has been relatively slow when compared to where the ethanol industry is, but then again, it's a lot younger than the ethanol industry," said Rick Kment, a biodiesel analyst for Data Transmission Network. With Europe importing vast quantities of biodiesel due to blending loopholes, Kment said "the outlook has become quite a bit dimmer and it doesn't look like domestic usage will significantly change within the next year or two."
 
 "By pulling our S-1 filing, REG adds flexibility to the way in which it can strategically grow the business," said Jeff Pattison, REG's Chief Financial Officer. "We're very optimistic about REG's future and the biodiesel industry's future, yet current capital market conditions require us to think differently," he said.

April 2008

Business Briefs

Blackmer pump offers cost-effectiveness

Colorado Springs takes honor

Chevron, Solazyme partner

Neste Oil selects contractor

Rohm and Haas, Novesep form global partnership

Greenline, Skanska form strategic alliance

Vertellus to supply DuPont with sodium methylate

Columns

A Little Sacrifice Goes a Long Way

Featured

Is Biomethanol in Biodiesel's Future?

Plotting a Safe Landing in CHALLENGING TIMES

Biodiesel Blossoms in the Sunshine State

Feedstock Development and Sustainability

The Fourth Hour

Supercritical Methanol for Biodiesel Production

BioEnergy of AMERICA'S Rise and Fall

From the 'VEGGIE VAN' to the Big Screen

Stabilizing Biodiesel Blends from Multiple Feedstocks

April 2008.css-7jxktu{position:absolute;bottom:0px;left:0px;right:0px;height:3px;border-radius:3px;background-color:var(--chakra-colors-brandBlack);}

Business Briefs

Blackmer pump offers cost-effectiveness

Colorado Springs takes honor

Chevron, Solazyme partner

Neste Oil selects contractor

Rohm and Haas, Novesep form global partnership

Greenline, Skanska form strategic alliance

Vertellus to supply DuPont with sodium methylate

Columns

A Little Sacrifice Goes a Long Way

Featured

Is Biomethanol in Biodiesel's Future?

Plotting a Safe Landing in CHALLENGING TIMES

Biodiesel Blossoms in the Sunshine State

Feedstock Development and Sustainability

The Fourth Hour

Supercritical Methanol for Biodiesel Production

BioEnergy of AMERICA'S Rise and Fall

From the 'VEGGIE VAN' to the Big Screen

Stabilizing Biodiesel Blends from Multiple Feedstocks

April 2008