Augsburg College, tucked away in downtown Minneapolis, probably isn't the first institution that comes to mind in a discussion of cutting-edge scientific research. However, the school has a stellar reputation as a leading undergraduate educational institution. It counts among its alumni a Nobel Prize winner in chemistry-Peter Agre, class of 1970, Nobel Laureate, 2003-something many larger institutions cannot brag about. This level of excellence in the sciences has led to an innovation which may change the face of the biodiesel industry.
 
 Brian Krohn, now a senior at Augsburg, worked with his advisor, Arlin Gyberg, to select a research project for his chemistry major. The research project is a requirement for graduation at Augsburg. Both men had an interest in biofuels, so Krohn decided to investigate the chemistry of manufacturing biodiesel. "Without Brian being interested in this project we never would have started," Gyberg says. "We decided to do a very thorough literature search on this. So he spent the first two or three weeks doing an 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 including sulfated zirconia to manufacture biodiesel. Gyberg first attempted to make biodiesel using zirconia as a catalyst by mixing powdered zirconia with alcohol and vegetable oil in a batch process. It was a total failure. He believed there wasn't enough contact between the catalyst and the reactants. Gyberg wasn't ready to give up though. With a background in chromatography, which uses columns of chemically active solids to separate mixtures of chemicals, he wondered if a similar column could be used to make biodiesel. He contacted an Augsburg alumnus, Clayton McNeff, who had formed a company, ZirChrom Separations Inc., to sell a chromatography method using zirconia that he developed for another of his companies, Sartec. Corp. "One of the papers had mentioned zirconia-based catalysts," Gyberg says. "Nobody out there had ever thought of zirconia being a catalyst because they're chromatographers."
 
 McNeff was startled at the idea that the zirconia used in the high-performance liquid chromatography (HPLC) columns could be used as a catalyst because the main idea of chromatography is to separate mixtures of chemicals without changing them. The most common use of HPLC is by the pharmaceutical industry to identify, separate, test and purify drugs and other products. "We were aware there were other uses for these compounds," McNeff says. "We knew that zirconia was used for catalytic cracking in the petroleum industry, but that was gas-phase cracking. But we didn't have a lot of fundamental knowledge of those kinds of things. For this specific use, I was really unaware that they were being used for biodiesel."
 

 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 had properties of both a gas and a liquid. In the column, under the right conditions, the oil and alcohol were converted into biodiesel in six seconds. "The process of running the reactants through the stainless steel tube that had the catalyst in it at elevated temperature and pressure worked, and it worked much better than we had ever expected it could," McNeff says. "We started working at lower temperatures but as we raised the temperature the time it took to do the reaction went down. 
 
 Finally, we reached a temperature where the conversion took just five or six seconds." McNeff, Gyberg and Yan applied for a patent for the method, which they have dubbed the Mcgyan process.
 
 The column allows for continuous production of biodiesel as opposed to the current batch method of production, Gyberg says. A column about 6 inches in diameter and 6 feet long will be able to produce 2.2 million gallons of biodiesel per year. Because the reactor is so small, it takes a relatively small amount of energy to keep it at the operating temperature using insulation and a heat recovery system. "The energy needs for the system really aren't very different than for the traditional process," McNeff says. "Since you can recover a lot of the energy coming out of the system and exchange with the fluid coming into the reactor, you only have to make up the thermal losses. When you insulate it and keep it in a controlled environment, you only have to make up maybe a small percent of the heat."
 
 The process can also convert excess alcohols into ethers, which are more valuable in the current market. "If you use methanol you get dimethyl ether, which is the propellant used in hair sprays," McNeff says. "It can also be burned in a diesel engine. It is a very nice renewable-type fuel." The catalyst even dehydrates glycerin into other chemicals that act as additives to improve the quality of the resulting biodiesel, which increases the amount of biodiesel produced from a pound of vegetable oil. McNeff says these reactions can be encouraged or discouraged by changing the temperature and pressure inside the column. A further advantage of the process is that it isn't affected by the presence of water. "You don't have to use bone-dry ethanol," he adds. That means a Mcgyan-based plant can use hydrous ethanol as a feedstock thus lowering the plant's operating costs. Ethanol forms diethyl ether in the process which is used in starting fluid. It sells for $1 a pound or about $6 a gallon, which gives the process an additional significant revenue stream.
 
 A pilot plant using the Mcgyan process has been running for six months, using a wide range of feedstocks with no problems, Gyberg says. The pilot facility fits into a couple of trailers that could be pulled behind a car. Each of the trailers holds a different step in the production process. "The entire process could be reduced to fit into a single semitrailer," McNeff says. "It could be used as a mobile unit to produce millions of gallons as it goes from site to site."
 
 McNeff formed a company, Ever Cat Fuels LLC, to build a commercial-size 3 MMgy biodiesel facility in Isanti, Minn. The location was chosen for its proximity to the Twin Cities where the prinicipals of the company reside, so they could keep a close eye on the engineering and construction process. The name of the company is based on the idea that the zirconia will be an everlasting catalyst. The company broke ground in November and, if permitting goes as planned, it should be in operation by October. "The purpose of the Ever Cat plant is to scale this technology into a meaningful demonstration scale," McNeff says. "In the next three to five years we intend to scale it up to 30 MMgy. To reach 30 million gallons will only take 14 reactors. So it is a very small footprint. The biggest structure there is going to be the tank farm." The Ever Cat site is only three acres with a 10,000-square-foot building. The process area itself is only 2,000 square feet.
 
 The plant will operate using hydrous ethanol rather than methanol and corn oil extracted from distillers grains as the feedstock. The feedstock will have up to 15 percent free fatty acids (FFAs) with an acid number of 30, which renders it almost useless for traditional biodiesel production. The Mcgyan process converts free fatty acids to biodiesel as easily as triglycerides. "The process converts it 100 percent to biodiesel with essentially no waste," Gyberg says. McNeff adds that the higher the free fatty acid content, the better the process works. The company is working on testing tall oil fatty acids, a byproduct of the pulp and paper industry which is almost pure FFAs. "The more FFAs, the more it loves it," McNeff says. "We can do 100 percent conversion of tall oil and the properties of the biodiesel are tremendous-a cloud point of minus 15 degrees Celsius (5 degrees Fahrenheit) and a very high cetane number."
 
 The pilot-scale facility has proven that the process is nearly emissions free, which simplified the permitting process for the Isanti plant, McNeff says. "In talking to the Minnesota Pollution Control Agency, they indicated that we should withdraw our permit application because we're not emitting anything they see as an issue," he says. "There's really no permit required because the plant is so clean."
 
 Furthermore, the biodiesel coming out at the end of the process doesn't need to be washed. Any excess methanol or reaction products are extracted from the biodiesel in a fractionating still. That, plus the use of feedstocks from a nearby ethanol plant, will make Ever Cat's cost of production nearly $2 per gallon lower than other biodiesel plants. "Ninety percent plus of the cost of biodiesel is in the feedstock," McNeff says. "We will be using oil extracted from distillers grains at 25 to 30 cents a pound while soybean oil is 63 cents a pound. Just that difference in feedstock costs is a tremendous economic advantage. The economics work even without a price support."

 
 One additional aspect of the process Ever Cat is experimenting with is using different alcohols in the esterification process. Most biodiesel is the methyl ester made with methanol. McNeff says using longer chain alcohols such as propanol and butanol offer some distinct advantages. In particular, butyl fatty acid esters have a cloud point that is 10 degrees C (18 degrees F) lower than methyl esters. "If you combine tall oil and butyl alcohol, it is possible that you might get a biodiesel with a cloud point that is minus 25 degrees Celsius (minus 13 degrees F)."
 
 When the Ever Cat plant is operational and successful, McNeff plans to license the technology to other companies. The researchers have formed another company, McNeff Research Consultants, to license the eight pending patents for the Mcgyan technology. "We hope that this will allow the industry to retrofit and become multifeedstock and multiproduct capable," McNeff says. "It takes us away from using food to using feedstocks that are much more acceptable to the public."
 
 Ever Cat is also looking beyond traditional sources of feedstocks for biodiesel. The company has a cooperative agreement with Great River Energy to develop an algae production system. "We also have a grant from Excel Energy," McNeff adds. "We see algae as being a nice feedstock for the Mcgyan process because you typically get a high free fatty acid content in that oil. That high FFA content works well with our ability to make fuel out of those types of materials." 
 
 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.

The first McGyan process biodiesel manufacture system fit on a desk in the chemistry department of Augsburg College in Minneapolis.

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Groundbreaking ceremony for Ever Cat biodiesel plant located in Isanti, Minn. Left to right, Marie McNeff (Clayton's mother); Charles and Alexander McNeff (Clayton's sons); McNeff; Krohn; Gyberg; Yan; and Larry McNeff (Clayton's father and president 

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Ever Cat Fuels biodiesel plant was under construction in April. This first-of-its kind biodiesel plant located in Isanti, Minn., will use the Mcgyan process.

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What started as a student research project at Augsburg College may become a major change in the biodiesel industry. A team of scientists and engineers have turned a tool for purifying and separating chemicals into a six-second process for turning the poorest quality vegetable oil into biodiesel. The first commercial-scale plant using the process should come on line this year.

A Column of Support

To some skeptics, the preclusion of biodiesel in the pipeline network was by and large predetermined before the industry manufactured enough gallons to even worry about it. With merit some assert it's the aviation customers higher on the food chain who really run the show, because of the care and cost that are put into jet propellant. The assertion is that those customers hinder biodiesel's acceptance in the pipeline, telling suppliers that they will not buy their fuel if methyl ester contamination is possible to any degree. 
 
 Then there are those who say that the problem lies with jet engine manufacturers, who haven't researched this enough to set a maximum trace allowance for jet fuel as it relates to airplane engine performance and safety. On that note, the absence of a single-digit parts per million (ppm) test method and instrumentation makes the lack of a max trace threshold moot. Unfortunately concerns about biodiesel properties and the quality of the larger intermingled pipelined diesel fuel pool continue to hold back its wider acceptance in the pipelines. A Spanish company however, is pipelining a bioblend without incident via the same infrastructure through which jet fuel is transported. Because of the international nature of jet fuel specifications-planes flying from the United States to Spain must refuel-the entire argument against pipelining biodiesel needs to be revisited. 
 
 Setting a Precedent: Conspiracy Theory or Reality?

 The replacement of No. 2 low sulfur diesel (LSD) fuel, which contains 500 ppm of sulfur, with 15-ppm ultra-low sulfur diesel (ULSD), as part of U.S. EPA's diesel emissions reduction plan, opened up a can of worms that some say still affects the biodiesel industry today. For years, sulfur acted as a lubricity agent in diesel fuel until it was significantly reduced to comply with new advanced emissions control devices debuting commercially in the 2007 model year. Lubricity additives of a different nature would come into play, and with them new concerns about how those additives, if blended at the refinery, would affect other products moving in the same pipeline. 
 
 In October 2004, Colonial Pipeline Co., the largest pipeline network in the Eastern United States, decided not to allow lubricity additives in its network. When Colonial Pipeline decided to exclude ULSD treated with lubricity additives from its network, most other pipeline operators followed suit according to the American Petroleum Institute's Al Mannato, who presented in November 2004 at a ULSD workshop. The reason: residual amounts of lubricants were detected in products such as jet fuel in which these additives are prohibited. 
 
 Prior to Colonial Pipeline's October decision it announced procedures for the approval of additized ULSD, two of which stated the additive must not impact the quality of other products; and there be an upper limit placed on additive concentration. Subsequent testing by the pipeline operator yielded microseparometer values indicating degradation of jet fuel. Jet fuel thermal oxidation tester results conducted by Colonial Pipeline also indicated a kerosene movement was degraded and trailback of the lubricity additive was detected in the kerosene. These poor results led Colonial Pipeline to exclude lubricity additives in its line. According to an article published in the trade journal Pipeline & Gas Journal in November 2004, the pipeline spent five months testing and moved three trial shipments with additized ULSD before reaching its decision; however, the journal notes, results from these tests don't mesh with Colonial Pipeline's earlier laboratory tests or with experience from pipeline operators outside the United States. So what does any of this have to do with 
 biodiesel? 
 
 A biodiesel trader working in the fuels distribution field who requested anonymity tells Biodiesel Magazine that after Colonial Pipeline made its decision to exclude additized ULSD in its line, truck racks across the nation were required to make large $1 million plus investments per site in order to blend lubricity additives at the terminals rather than at the refineries. "That lubricity additive is basically a methyl ester," the source says. "After doing all of that, they could hardly turn around a month or two later and say, 'Oh yeah, we excluded the lubricity additive but you can move a B5 blend.' So the timing for biodiesel pipeline acceptance and the ULSD rollout was very much a problem. It's been something for the pipeline guys to hide behind in order to put this thing off." 
 
 Jet Fuel and Engines
 Many media reports regarding airlines and jet engine makers testing or using biofuels have come across the wire in the past several months but none of these include methyl ester biodiesel. If jet fuel traders express such concerns over ultra-low concentrations of fatty acid methyl ester (FAME) trailback in aviation fuel, then using a biodiesel blend in jet engines is certainly out of the question. Representatives from Buckeye Partners and Northville Products Services, who presented at the 2008 National Biodiesel Conference & Expo, indicated that jet engine makers need to determine a maximum trace FAME allowance in jet fuel in order to give would-be biodiesel movers a threshold within which trailback could be contained. Conversely, a low-level FAME detector, which reads down to single digit ppm, has yet to be developed. 
 
 In February 2007, NPS released its report on B5 test movements through Colonial Pipeline in which the bioblend was followed by LSD. In its report, the company states, "The sampling of the trailing low sulfur diesel batch identified some level of trailback. The exact quantification of the trail- back is impossible to determine due to the current inaccuracy of the test methods at very low levels of methyl esters. … [Colonial Pipeline] has determined that methyl ester trailback will require segregation of jet fuel shipments to prevent any amounts of contamination … The adverse affects of this 'batch approach' is that it adds costs to the system at multiple points and minimizes shipper and pipeline operating flexibility." 
 

 NPS notes in the report's conclusion that test methods to determine trailback below 1.7 percent by volume do not readily exist commercially, adding, "NPS and [Colonial Pipeline] would like to see a test method developed with accuracy to single digit parts per million of methyl ester." According to information presented one year later at the 2008 National Biodiesel Conference and analytical companies' reluctance to comment on the issue, this is still the case ostensibly. Matt Bowman, global technical sales development manager for PerkinElmer LAS, says, "There is at least one technique PerkinElmer has that can detect bio-material." Bowman says the technique is not specific to biodiesel (FAME) or ethanol, but it could be used to determine cross contamination in pipeline products. "As with most problems, necessity is the mother of invention," he says, implying there is little need as of yet for trace FAME test methods and instrumentation. 
 
 Biodiesel Magazine attempted to get comments from jet engine makers on the lack of a fuel specification established to cap trace methyl ester content in aviation fuel, but they were reluctant to comment. Only one engine maker chose to respond to requests for information. Boeing said it would prepare a statement for this article on the matter. Instead, Peter Conte of media relations with Boeing Commercial Airplanes sent an e-mail stating, "We are going to decline to comment on this matter at this time. I would encourage you to contact us again in the not-too-distant future after we have made more progress with our biofuel research." 
 
 Compania Logistica de Hidrocarburos, a Spanish fuel logistics company, has been moving B5 in its pipelines for one year, according to Pedro Martinez, CLH director of communications. "At the moment, we protect aviation kerosene batches with other petroleum products without biodiesel in order to keep the content of methyl ester in jet fuel below 5 ppm," Martinez tells Biodiesel Magazine. The protocol for this he says can be found in Joint Inspection Group bulletin #15. "This is not the best solution, so we hope new jet fuel specifications will allow a certain content of biodiesel-like 100 ppm-to get a sustainable solution." 
 
 	
 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.

The mere mention of moving biodiesel through pipelines brings so many related aspects into question that Biodiesel Magazine decided it was time to address the totality of these 
interrelated concerns.

The Tangled Web: Pipelines, Jets and Biodiesel

A white paper released by Context Network LLC, titled "A Review of the Energy Independence & Security Act of 2007, and its Impact on U.S. Grains and Oilseeds Production," reported mixed results concerning biodiesel's future. According to the paper, biodiesel supply should meet the requirements set forth by EISA in the short term (2008 to 2010) and medium term (2011 to 2015), but the biofuel still remains the most vulnerable. The paper's principle author Jim Murphy pointed to feedstock as its main hurdle. He said biodiesel will continue to be a niche fuel, requiring government subsidies to exist.

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EISA study addresses biodiesel

The Texas Commission on Environmental Quality has officially approved the use of a third biodiesel blend in Texas' 110 most populous counties, which are regulated by the Texas Low Emissions Diesel program. The approval covers between B5 and B20, which must be treated with a minimum of 1.25 milliliters per gallon of ORYXE Energy International Inc.'s OR-LED3 diesel fuel additive to reduce nitrogen oxide emissions. Two other blends were previously approved by the TCEQ: B5 without the additive and B20 with 20 milliliters of additive per gallon. Since the state's Alternative Emissions Reduction Plan expired Dec. 31, all biodiesel blends must be approved by the TCEQ.

Texas approves third biodiesel blend

Web exclusive posted June 5, 2008 at 1:00 p.m. CST 
 
 The U.S. business law firm of Stoel Rives LLP, has announced its increasing the strength of its renewable energy practice with the addition of Graham Noyes, a leader in the biofuels industry, to its Seattle team. 
 
 Stoel Rives specializes in the practice of renewable energy development and for more than 20 years has represented many of the major developers of wind, biofuels, biomass, geothermal, solar and wave energy projects in the United States, Canada and abroad. 
 
 Noyes previously led sales and business development for Imperium Renewables Inc., a leading national provider of biodiesel and operator of the largest biodiesel facility in the U.S. Noyes also serves as secretary of the Governing Board of the National Biodiesel Board.
 

 "I sought out Stoel Rives because of the firm's forward-thinking practice on renewable energy and cutting-edge experience in biofuels," Noyes said. "I am proud to be a part of the team that will make an impact on the next generation of advanced biofuels and the expansion of the booming CleanTech sector."
 
 "As an industry insider, he will bring a unique view of the biofuels market-knowledge of the players, how these markets work and ways in which our firm can assist the renewable energy sector," said Virginia Pedreira, Stoel Rives' Seattle office managing partner. "That expertise will only serve to expand Stoel Rives' renewable energy practice and give our clients more resources to draw upon for their businesses." 
 
 Noyes, who received a Doctorate of Jurisprudence from the University of California, Davis, is a member of the Order of the Coif and is an active member of the California Bar Association. He is also pursuing admission to the District of Columbia and Washington Bars as well.

U.S. law firm hires renewable fuels expert

I recently read a story on <a href="http://www.WasteNews.com">www.WasteNews.com</a> that highlighted a survey I wanted to share with our readers. Although it may not directly involve biodiesel, I think it's an issue that may have or could affect the renewable fuels industry indirectly in some way. To be honest, I'm not sure.
 
 The survey was titled "Interference at the EPA: Science and Politics at the U.S. Environmental Protection Agency." Conducted by the Union of Concerned Scientists, it concluded that 889 of 1,600 EPA scientists (60 percent) experienced at least one incident of political interference during the past five years. Apparently, political appointees have edited scientific documents, manipulated scientific assessments and maybe altered the science behind EPA regulations. Furthermore, 409 EPA veterans (43 percent) who had worked at the agency for more than 10 years said interference occurred more often in the past five years than in the previous five-year period. (For a copy of the report, visit <a href="http://www.ucsusa.org.)">www.ucsusa.org.)</a>
 
 I wasn't familiar with the Union of Concerned Scientists at the time, but the organization's Web site told me it's the leading science-based nonprofit working for a healthy environment and a safer world. It originated at the Massachusetts Institute of Technology in 1969, and now includes 200,000 citizens and scientists. That's a pretty impressive group looking out for the best interests of the EPA. That's good because I hate to hear of something negative going on at the EPA. The EPA employees who are working on our nation's renewable fuels standard have a tough job, and they should be commended for the many tasks they have completed and challenges they have faced. I can't imagine how difficult it must be to get the many different groups together to create policy that will regulate and enforce our country's renewable fuel consumption. The more I thought about this, the more I wondered if EPA employees even have a choice when political forces seek to sway EPA policy. Indeed, the Union of Concerned Scientists called for reforms to protect EPA scientists, make agency decision-making more transparent and reduce politicization of the regulatory process.
 

 I'll admit it was the conspiracy theorist inside me who was most interested in this survey. It brings to my mind questions that frankly I can't answer, and as a reporter, that bothers me. What EPA renewable fuels policy may have been influenced by political agendas? Was it done to our industry's benefit or detriment? If there's anyone out there who has an opinion on this, please feel free to share it with me.
 
 The union also pointed out that political interference isn't unique to the EPA. I guess it's one of those behind-the-scenes things that the average U.S. citizen isn't aware of. Part of me says that's OK, but another part of me will always wonder what's going on behind the curtain.
 
 Jessica Sobolik
 Managing Editor
 <a href="mailto:jsobolik@bbibiofuels.com">jsobolik@bbibiofuels.com</a>

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Survey Reveals Interesting Side of EPA

The Missouri Senate passed legislation in mid-March mandating the use of B5 by 2010. Introduced by Republican Sen. Bill Stouffer, Senate Bill 759 not only requires all diesel fuel distributors in Missouri to sell B5 blends by June 1, 2010, but also requires terminals in the state to sell the blend starting April 1, 2010. At press time, SB 759 hadn't been approved by the Missouri House. Missouri would be the third state to adopt a biodiesel standard, following Minnesota and Oregon. "I really hope a number of other states pass biodiesel standards," Stouffer said. "Then there could be regional or national standards as opposed to state-by-state standards."

Missouri Senate passes B5 mandate

The USDA's Prospective Plantings report, released March 31, indicated that U.S. farmers intend to plant 74.8 million acres of soybeans in 2008, an  increase from the 63.6 million acres planted last year. The report also projects acreage reductions for corn and increased double-cropping of soybeans with winter wheat. Soybean planting is slated to expand in every major producing state, with the largest increases for Iowa, Nebraska and South Dakota. The USDA also reported weaker speculator activity due to the tightening of credit markets, causing markets to fall. USDA price forecasts were lowered to $10 to $10.50 per bushel for soybeans and 50 to 54 cents per pound for soy oil.

USDA forecasts more soybean acres for 2008

An early April accident, in which two employees were trapped in a railroad tanker car, ended in one's fatality at Northwest Missouri Biofuels in St. Joseph, Mo. According to St. Joseph Police Captain Kevin Castle, Ryley Pearl was overcome with fumes while inside the tanker car. Plant Manager Max Bottorff went into the tanker to assist Pearl but was also unable to get out of the tank. Firefighters were able to rescue Bottorff, Castle said.

Tank car incident ends in fatality

On April 4, U.S. Rep. John Shadegg, R-Ariz., introduced legislation to close a blenders tax credit loophole that allows importers to collect millions of dollars in U.S. tax credits for biodiesel consumed outside the country. Shadegg called the loophole a "scam" that allows foreign tankers to enter U.S. ports, splash their fuel shipment with a minimal amount of vegetable fuel, qualify for the $1-per-gallon blenders credit and then dash off to a foreign port to sell the biodiesel. The bill would prevent U.S. biodiesel exports from receiving the credit, too. Shadegg doesn't want taxpayers subsidizing fuel costs abroad. The Splash and Dash Correction Act would only allow fuel consumed domestically to be eligible for the credit.

Legislation aims to close 'splash-and-dash' loophole

Plans are underway at Canadian Green Fuels Inc. to become the country's largest "biofuel" producer through the construction of a $50 million facility that would produce ethanol, biodiesel, bio-oil and additives, and an upgrade of its existing facility in Regina, Saskatchewan. Overall capacity would total 240 MMly (63 MMgy). Plans include a crushing facility to process oilseeds into biodiesel feedstocks. The company aims to become publicly traded and said it would deliver a prospectus to the Saskatchewan Financial Services Commission by April 30. Construction of the new facility was slated to begin in May or June, followed by completion in the summer of 2009.

Canadian company proposes biodiesel plant

In April, Renewable Energy Group Inc. announced it had trademarked its own product quality specifications for biodiesel produced at all of its plants. The company introduced three products under the trademarked name REG-9000: REG-9000-1, REG-9000-5 and REG-9000-10. 
 
 "The '9000' refers to the fact that it comes from BQ-9000-certified plants," said REG Director of Marketing Jon Scharingson, referring to the quality assurance program developed by the National Biodiesel Board. "The 1, 5 and 10 refers to (the temperature in Celsius of) the cloud point. A lot of customers buy based on feedstock, but feedstock shouldn't matter. 
 
 We're promoting the attributes of the fuel." 
 
 REG said all three products offer improved oxidation stability and enhanced purity, compared with other B100 biodiesel available in today's marketplace. The products adhere to product specifications that meet or exceed ASTM D 6751 biodiesel specs. REG-9000-1 has a cloud point ranging from 0 to 2 degrees Celsius, a cetane level from 47 to 50 and an oxidation stability of three to six hours. REG-9000-5 has a cloud point ranging from 4 to 6 degrees Celsius, a cetane level from 50 to 53 and an oxidation stability of five to eight hours. REG-9000-10 has a cloud point ranging from 8 to 12 degrees Celsius, a cetane level from 53 to 59 and an oxidation stability of seven to 10 hours. The minimum ASTM requirement for cetane is 47, while oxidation stability is three hours. REG can add an antioxidant to meet any customer stability requirement up to 10 hours.
 
 The three different products are offered to meet different customers' needs and budgets. "Customers differ by geography and environment," Scharingson said. "In warmer months, most customers don't have issues with buying REG-9000-5 or REG-9000-10. A lot of our customers are excited about the higher cetane values."

 
 The new specifications were developed in response to customer demand because many current REG customers have their own internal specifications. "This was our attempt to issue specifications that were as tight or tighter than many of the customer specifications," Scharingson said. "We figured if we can meet customer specifications at all of our plants, we 
 should make it public that we're cranking out much higher quality."
 
 Higher-quality specifications include reduced free and total glycerin levels, a reduced acid number, reduced sulfur content, and reduced free water and sediment. REG's specifications also require that internal tests are performed, which aren't currently required by ASTM. These include tests for monoglycerides, diglycerides and triglycerides; tests for total biodiesel moisture; and a cold soak filtration test, which indicates how well the biodiesel will perform in cold weather.
 
 Scharingson said REG is able to meet this level of quality because it's committed to continuous improvement. "What differentiates us is we are continuously making product improvements," he said. "Some people don't change their engineering once they start churning out biodiesel, but we make a tremendous effort to improve the quality of our biodiesel. One of the fruits of this labor is the REG specification that we released." 
 
 National Biodiesel Board CEO Joe Jobe said he is pleased with REG's new program. "ASTM D 6751 defines the minimum requirements for biodiesel that is 'fit for purpose' for blending up to 20 percent with petro-diesel, and the BQ-9000 program, which Renewable Energy Group Inc. was a leader in, requires D 6751 compliance on every lot," he said. "REG has once again proven itself as an industry quality leader by committing its product to a quality level that goes above and beyond the ASTM requirements."

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REG trademarks REG-9000 specifications

The word "sustainability" is no longer a catchphrase but a global market requirement for the palm oil industry. 
 
 "The world now demands palm oil that is certified and produced sustainably," said Peter Chin Fah Kui, the Malaysian minister of plantation commodities and industries, in his opening address at the International Palm Oil Sustainability Conference on April 14 in Sabah, Malaysia. "The challenges created by globalization and the increased demand for natural resources call for additional and different types of intervention. Collaboration between the different actors and stakeholders targeting a balance between sustainable production, trade and consumption is a key element in innovative approaches, and how this will impact the environment." 
 
 The Malaysian Palm Oil Council hosted the inaugural conference, which brought together more than 500 industry players from Southeast Asia, Australia, Europe and the United States to discuss the emerging issues surrounding sustainability. Speakers addressed corporate social responsibility, new certification requirements, wildlife conservation, life cycle analysis and carbon balance, among other topics.
 
 At the opening ceremonies, Chin officially announced the formation of the Malaysian Palm Oil Wildlife Conservation Fund, a collaborative effort of the Malaysian government, the Malaysian Palm Oil Council, Bursa Malaysia (representing the country's financial market) and the Borneo Conservation Trust. One of the first efforts for the $6.25 million research and conservation fund will be to survey the orangutan population in the Malaysian state of Sabah on the island of Borneo. Sabah is the No. 1 palm-producing state in Malaysia and also home to significant populations of orangutans in remnants of virgin tropical rain forests. 
 
 Chin said the Malaysian palm oil industry has been under a shadow for too long. "The cultivation of palm oil generally gives the world an impression that large tracts of virgin rain forests are bulldozed and cleared to make way for our plantations," he said. "Palm oil cultivation in Malaysia is strictly regulated, can only be developed on legally designated agricultural land and does not encroach on protected virgin rain forests." He called for conference attendees to dispel the myths and misinformation surrounding the palm oil industry, "and highlight the sustainability of the palm oil industry, compared to other oilseed crops and agricultural practices around the globe."

 
 MPOC Chairman Lee Oi Hian echoed Chin's emphasis on sustainability. "The demand and expectation of customers for sustainable palm oil are all familiar to us," he said in his opening remarks at the conference. "This is our single most important current challenge or threat." Malaysia is the world's largest exporter of palm oil and follows Indonesia as the world's second-largest producer of palm oil.

Lee Oi Hian, chairman of the Malaysian Palm Oil Council, welcomes more than 500 attendees to the inaugural International Palm Oil Sustainability Conference in Kota Kinabalu, Malaysia. 

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Malaysian palm oil conference focuses on sustainability

In April, GreenHunter Biofuels LLC, a wholly owned subsidiary of GreenHunter Energy Inc. in Grapevine, Texas, announced that construction of a 200-million-pound-per-year glycerin distillation system at its renewable fuels campus in Houston is nearly complete.
 
 The main glycerin distillation tower was installed in February and March, the company stated. The initial installation of major equipment has allowed the commissioning of the entire system to begin, and commercial operation is anticipated during the third quarter of 2008.
 
 Michael Studer, president and chief operating officer of GreenHunter Energy, said the new glycerin system will further diversify the company's revenue stream. The company's campus also includes a 105 MMgy biodiesel plant, 700,000-barrel bulk liquid terminal assets and a 45,000-barrel-per-month methanol distillation system. The biodiesel plant, which would be the largest in the United States, is in the final stages of construction, according to the company. It anticipated initial operation of the campus to begin in April. 
 
 Studer said turning glycerin from the biodiesel plant into a value-added product will play an integral role in the emerging trend of substituting biobased chemicals for fossil-fuel based chemicals. The system will give GreenHunter the ability to refine crude glycerin into a higher-quality distilled glycerin. Crude glycerin is 85 percent glycerin, 10 percent water and 5 percent salts. Refined glycerin is more than 99 percent glycerin with no impurities. It can be used to make pharmaceutical products. 
 
 Studer said the strategy being employed by the company is to exploit every possible revenue source available. He said the plan is to "acquire assets significantly below market in an effort to achieve superior returns on capital deployed."
 
 GreenHunter and its wholly owned subsidiaries are involved in other bioenergy projects, as well. The company acquired an idle 18.5-megawatt waste-to-energy plant in El Centro, Calif., in May 2007. According to GreenHunter Energy's Web site, the project is in the development stage of engineering, budget establishment and the procurement of contractors in order to complete the refurbishment. Operations are slated to begin by June 30. The company may evaluate the feasibility of building a renewable fuels campus there, which would include a biodiesel plant.

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Glycerin plant construction underway

At opposite ends of the Earth, companies are making progress toward a viable source of algae oil. From the south island of New Zealand to the Gulf coast of Texas, entrepreneurs have reached milestones in their quests to provide an economical feedstock for various biofuel producers.
 
 In Marlborough, New Zealand, Aquaflow Bionomics Corp. Ltd. announced that commercial-scale algae harvesting is taking place at its oxidation ponds, which cover 100 acres and produce several tons of algae daily. According to founding director Barrie Leay, an on-site biorefinery will convert the algae into what the company calls "biocrude." Aquaflow has investigated other possible harvest areas, including 1,000-acre oxidation ponds in the United States. "We believe this is an important step, not just for our company but for everybody," Leay said. "The processes we have worked through are evolutionary-not revolutionary-to get to this scale over the past two-and-a-half years. It's been a slow, gentle accumulation of knowledge to get us to this point."
 
 Leay said the company's business model is to create a network of small biorefineries based around existing water treatment lagoons. He compared this with the existing biodiesel and ethanol industries, where feedstocks are shipped to a central facility. "The model we developed is quite different than anybody else's," he said. "We will not be looking at concentrating production in large oil refineries. We shall be using a distributed model in which we do the conversion of algae to oil on the site where the algae is housed. The closest analogy is that we are reversing the pattern of the old IBM mainframes (one central location), and moving to laptop and Blackberry models (which go where users need them)."
 

 Aquaflow is looking to expand its reach. It has partnered with Singapore-based Pure Power Asia to license and develop its technology in south Asia. Pure Power took a 19.9 percent share in Aquaflow in 2007. "[Pure Power] will be developing a significant part of the Asian market, probably in 2009," Leay said.
 
 In Rio Hondo, Texas, PetroSun Inc. is continuing to develop its open-pond algae farm. The company began preparing the site for production April 1. Chief Executive Officer Gordon LeBlanc has met with state environmental regulators in Austin. "There is some work we are doing in advance of our final permit," he said. "[The regulators] wanted to know if we would be discharging into the river there, which we won't be. The other questions dealt with the strains of algae we were going to be using, which are going to be native strains." He said the facility should reach full production sometime in June.
 
 LeBlanc said the project is basing its economic model on a production rate of 2,000 gallons of algae oil per acre. He added that the residual biomass from the algae could also be processed into cellulosic ethanol or other advanced biofuels, raising the energy production from the facility. "That's what we are basing our economics on," he said.
 PetroSun is also completing due diligence on the acquisition of a biodiesel facility in Alabama and is in the preliminary stages of developing a second plant in the state.

Algae grows around the globe

Is algae ready for biodiesel? National Biodiesel Board member Solazyme Inc. says yes, and the U.S. Department of Defense is interested, in particular because of the claim that Solazyme's Soladiesel works well in cold weather.
 
 The defense department recently requested a demonstration of Soladiesel, the branded version of algae-based biodiesel produced by San Francisco company Solazyme. Results of the demonstration were positive, according to Solazyme CEO Jonathan Wolfson. 
 
 "The [Department of Defense's] requested testing of the Soladiesel fuel showed superior performance especially in terms of its cold temperature properties," Wolfson said. "Greater performance in cold temperatures means our biodiesel and other algae-based fuels could help the military in remote northern locations like Alaska and North Dakota, as well as in hot climates, while reducing dependence on petroleum."
 
 Solazyme representatives said that Soladiesel exceeds both the requirements of the ASTM biodiesel standard D 6751 and the European Standard EN 14214, which ensure that biodiesel can safely run in any existing diesel engine. At the National Biodiesel Conference in Orlando, Fla., in early February, Solazyme demonstrated a Mercedes Benz running on algae-based biodiesel. Additionally, at the recent Defense Energy Support Center's Military Energy Conference in Arlington, Va., former director of the Central Intelligence Agency and undersecretary of the Navy, R. James Woolsey, drove a Ford F450 truck powered with B100 Soladiesel-brand fuel. 
 
 Several other U.S. companies are developing algae-based biodiesel. GreenFuel Technologies is using carbon dioxide from existing energy plants to grow algae. LiveFuels Inc. is looking at ways to grow algae in existing ponds located in remote areas with a high amount of heat and sun. Whatever the process, biodiesel is ready for algae to help diversify and increase its feedstocks.

Solazyme Inc. unveiled a Mercedes Benz powered by algae-based B100 at February's National Biodiesel Conference.

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Algae on the horizon

Legislation proposed in the United States and Europe that aims to increase biofuels usage and reduce carbon emissions would provide incentives to the fuels with the lightest carbon footprint but could hamper the profitability of fuels that fail to meet stricter emissions standards. Regardless, SRI Consulting recently found the most immediate challenge to be that not all countries measure carbon reductions the same way.
 
 SRI Consulting's study, titled "Carbon Certification of Biofuels Report" and released in April, looked at proposed biofuels subsidies, such as the United States' recently enacted renewable fuels standard in the Energy Independence & Security Act of 2007. Germany, the Netherlands and the United Kingdom have all proposed legislation to grant tax relief to biofuels based on a carbon certification standard set by each government. Meanwhile, the European Union proposed a separate Renewable Energy Directive, which SRI senior advisor Eric Johnson said is likely to pass in 2008. He said the legislation could be chaotic to administer, but while doling out rewards and punishment, it will create new markets for carbon certificates.
 
 The chaos stems from differences in opinion as to which biofuels would qualify and what measurement each country would use. For example, the United States says its corn-based ethanol reduces carbon emissions by 22 percent, compared with petroleum-based fuel. However, Germany says U.S. corn-based ethanol reduces those emissions by 43 percent, and the United Kingdom says it increases carbon emissions by 27 percent. The SRI study indicates this disagreement could result in widespread confusion and public cynicism.
 Johnson said Europe is aiming for a 30 percent reduction in carbon emissions by 2009, increasing that to 40 percent by 2011. The United States has set goals for a 20 percent reduction. Each country would take its benchmark measurements for the goals and then tally up the savings achieved.
 
 The study also indicates that not only will proposed legislation dramatically alter the subsidy landscape-and the profitability of biofuels companies that base profit margins on continued governmental support-it could encourage farmers to deforest certain regions to plant food crops for biofuels. It might also foster legal challenges from biofuels lawyers and lobbyists unhappy with carbon certification rules. However, Johnson sees overall positives amid some initial uncertainty. Precedents set in this arena could translate to carbon certification schemes for other products and services.

Carbon reduction laws not so easy to enforce

In Washington, where a high percentage of biodiesel is used by consumers on land, the Washington State Department of Transportation's Ferries Division is trying to match that same level of usage by sea.
 
 The ferry division began fueling two ferries with B2 and B5 blends in March to test the viability of biodiesel in a marine environment. The Issaquah, a 124-car ferry, has been successfully running on soy-based B5 mixed with ultra-low sulfur diesel (ULSD) since March 10, while the Tillikum, an 87-car ferry, increased from canola-based B2 to B5 in April. Tests are scheduled to increase the blends to B10 in May, then B20 before ending in March 2009. 
 

 According to Paul Brodeur, director of vessel maintenance, preservation and engineering for the ferries division, performance and operational problems haven't been encountered thus far. "I'm cautiously optimistic," he said. "So far, we've been running B5 successfully, and I hope it continues."
 
 If all goes well, Brodeur said another ferry, the Klahoya, may begin running on a B5 blend derived from animal fats or yellow grease in May, "something that has a higher cloud point than either soy or canola," he said. 
 
 Testing biodiesel in the Issaquah and other ferries is the second attempt in four years by the division, which unsuccessfully implemented a soy-based B20 blend in 2004-'05 that caused severe clogging in the vessels' filters and purifiers. Today, all biodiesel used by the ferry division is ASTM and BQ-9000 certified, which wasn't the case during the division's first test, Brodeur said. "I'm pretty certain that back in 2004-'05 part of our problem was that we had a product that was good quality and met spec, but it was marginally on spec," he said. "The specifications have gotten tighter since 2005, and producers are producing higher-quality fuel to meet those tighter specifications now."
 
 This most recent test comes in response to Washington Gov. Christine Gregoire's aggressive renewable fuels initiatives, which require all state fleets to use a B20 blend by 2009, including marine vessels. It was a collaboration that included the Puget Sound Clean Air Agency, Imperium Renewables Inc., Rainier Petroleum, Sound Refining Inc., Seattle City Light, the U.S. DOE, Washington State University and the University of Idaho. 
 
 According to Brodeur, the state ferry division uses approximately 17 million gallons of diesel per year. "Our intention is to hopefully help the maritime industry move toward cleaner-burning fuels and alternative fuels such as biodiesel," he said. "A successful test would send a very strong message to other operators that [biodiesel] would be a viable fuel option in the marine transportation industry."

The Issaquah has successfully run on a B5 blend of soy-based biodiesel with ULSD since March 10. 

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Ferry system sees positive biodiesel test results

California-based biodiesel marketer Tellurian Biodiesel Inc. has partnered with fast-food supplier Golden State Foods to recycle used cooking oil from McDonald's and other quick-service restaurants into high-grade biodiesel.
 
 The new venture, Encore BioRenewables, is expected to open its first production facility in southern California in early 2009. Initial capacity will be 5 MMgy, with the option to increase to meet demand. Joe Gershen, president of Encore BioRenewables, and vice president of sales and marketing at Tellurian, wouldn't name the plant's specific location, adding that all Encore facilities will be strategically located in urban areas closest to feedstocks and end users.
 
 "Our focus is to recycle second-use fats and oils," Gershen said. "This joint venture with Golden State Foods offers a sustainable solution for [producing] biodiesel."
 Golden State Foods, headquartered in Irvine, Calif., is a $3.3 billion company that provides for quick-service restaurants worldwide. The company has distribution centers on both the East and West coasts, as well as in Texas, Wisconsin, Illinois, Nevada, Arizona, Hawaii and Egypt. 
 
 The partnership with Golden State Foods gives Encore BioRenewables the feedstock supply to produce as much as 100 MMgy of biodiesel nationwide, according to Gershen.
 

 Once the biodiesel plant begins operation, some of Golden State Foods' fleet will use the renewable fuel. According to Bill Sanderson, corporate vice president of finance for Golden State Foods, the company's fleet consists of 250 tractors in 11 markets around the United States. Some of the vehicles are already being fueled with various blends of biodiesel, and Sanderson said Golden State Foods will switch to Encore BioRenewables' fuel "where it's economical." 
 
 Sanderson is "very excited about the green initiative" being taken on by his company. "We wish we were open today, given the current market," he said. "We're happy to help our customers, including McDonald's and Starbucks, achieve their social and environmental responsibilities."

Tellurian Biodiesel, Golden State Foods form new company

A new study by the Steel Tank Institute confirmed that biodiesel is safe for use in underground steel storage tanks. 
 
 In the 12-week study carried out by an independent research lab, the corrosion of low-carbon steel, which is typically used for underground storage tanks, was so low that it couldn't be measured. The study results were presented at the 20th Annual National Tanks Conference and Expo in Atlanta in March. 
 
 The findings were surprising, said Lorri Grainawi, the institute's director of technical services. As the fuel samples aged, it was expected that acids would form and increase corrosion in the tested samples. However, the laboratory found no evidence of pits or corrosion, and periodic measurements with electrochemical impedance spectroscopy and mass loss studies showed an imperceptible corrosion rate. "The results were even better than we thought they would be," she said. "We designed this study to look at a range of conditions, including worst-case conditions, so it really covered everything we needed to consider. Unless something new comes up, I don't see the need for future studies. The results are very this will probably fix itself naturally with the other changes, but check it out just in case.
 
 STI initiated the study for several reasons, Grainawi said. "Part of the reason for doing the study was just curiosity," she said. "We just wanted to make sure biodiesel was compatible with steel tanks. STI offers warranties on steel tanks, and that was part of the drive for the study. Also, Underwriters Laboratories was raising questions about biodiesel because all these tanks have UL listings. One of the arguments was that there is just no data on compatibility. Even though biodiesel has been produced and stored in steel tanks, there was just no test data." 
 
 Steel samples, which were immersed in blends of ultra-low sulfur diesel (ULSD) and biodiesel, were maintained at a temperature just under 110 degrees Fahrenheit. A small amount of rusting was noted on the samples. Slightly more rust was found on the samples submerged in ULSD than in B100. To more realistically reflect actual fuel storage conditions, water was added to half the samples. 
 
 The findings of the study, which was cosponsored by the National Oilheat Research Alliance and the National Biodiesel Board, were consistent with years of in-field use. "In nearly a decade of experience covering hundreds of millions of gallons of biodiesel being used, we have not experienced any problems with the compatibility of biodiesel blends in underground storage tanks," said Don Scott, a technical engineer with the NBB. "Biodiesel is nontoxic and biodegradable, and we are committed to promoting and encouraging environmentally safe storage and handling procedures."
 
 Soy-based biodiesel, which was chosen for the experiment because it was the most commonly used in the United States, is also the most unsaturated common feedstock and represented a "worst-case scenario" for acid formation. A second study using biodiesel made from animal fats will be released later this spring. "Steel tanks have always been assumed to be compatible with any type of petroleum product," Grainawi said. "With the new alcohol fuels and regulations nowadays, it is something that has to be proven instead of just accepted. Regulators want to see some actual data."

Biodiesel blends safe for steel tanks

Those attending February's National Biodiesel Conference general session on feedstocks probably understand the reference to musical chairs in this column's title. At one point the feedstock industry panel seemed to be engaged in a children's game of musical chairs as they shuffled positions and aligned themselves in order of commercialization. Before getting settled, the audience called for a re-alignment to demonstrate the potential order of magnitude that each of the feedstocks might bring to the market. The panel represented corn oil from ethanol plants, mustard, canola, industrial rapeseed, algae, soybeans, brassica juncea, and high-oil corn varieties. Although not scientific, the arrangement demonstrated that oilseeds with the highest volume potential are not necessarily the ones that will impact the market first. 
 
 The crowd favorite that day in Orlando was unmistakably algae. However, it was felt by the industry panel that other technologies would have an impact sooner. Near-term opportunities exist with the creation of "virtual acres" (greater yields per acre), capitalizing on growth in the ethanol industry, and additional acres of oilseeds such as winter canola and camelina.

 
 "Virtual acres" is a term for generating additional feedstock from the same acre. Monsanto plans to introduce new technology that can increase soybean yields by 9 percent to 11 percent. DuPont is commercializing soybean varieties that increase yields by as much as 12 percent. These technologies are set to have an impact in 2010. An increase in yields of just 10 percent could produce more than 250 million additional bushels of soybeans and almost 400 million gallons of biodiesel without increasing acreage in the United States. In addition, the National Biodiesel Board has teamed up with The Donald Danforth Plant Science Center to look at the potential to enhance the oil production in soybeans and other oilseeds, although this is a longer-term endeavor.
 
 Soybeans will play a near-term role in adding to the feedstock supply, but we still need to secure other raw materials to meet future demand. The ethanol industry may offer our nearest-term opportunity for additional supplies. Ethanol firms are investigating fractionation technology to remove corn germ (the portion of the corn kernel that contains oil) prior to the ethanol production process. Further, some ethanol plants have already made public their intention to employ technology to remove the remaining vegetable oil from distillers dried grains, a coproduct of the ethanol process. Both of these technologies could add to the biodiesel raw material supply in a meaningful way. 
 
 The production of oilseeds on new acres may also offer additional raw material supplies to the biodiesel industry. Private firms are offering camelina contract opportunities in the Pacific Northwest, and the U.S. Canola Association has established an initiative to increase canola acres by 2010. Although interest in these oilseeds is high, current price spikes in wheat have dampened the effort to expand winter canola and camelina acres.
 
 Investment in new, non-edible raw materials sources such as algae, jatropha, mustard, brown grease and seashore mallow continues at an aggressive rate. Stay tuned for a future article on the feedstocks just mentioned. Back to the conference session on raw materials-I actually did have an attendee say it reminded them of musical chairs. I had flashbacks of grade school and being pushed out of the way when the music stopped by a bigger and stronger classmate-a girl-by the name of Sheila Johnson. Luckily, in this game of musical feedstocks, no one will be left out. All new fat and oil sources will be needed to meet future renewable fuel needs in a sustainable manner.
 
 Sustainability Task Force makes progress, launches Web pages 
 The recently formed Sustainability Task Force is working to ensure that the U.S. biodiesel industry continues to protect the environment while producing jobs and reducing dependence on foreign oil. The team of 10 industry representatives is developing a definition of sustainability pertaining to biodiesel as well as the mission and goals of the task force. 
 
 To support the work of the task force and keep everyone up-to-date with sustainability issues, the National Biodiesel Board launched a sustainability Web site. The site, <a href="http://www.biodiesel.org/resources/sustainability/">www.biodiesel.org/resources/sustainability/</a> is full of information on environmental, economic and social sustainability. Follow the Sustainability Task Force link to see meeting minutes and more. 

 
 The NBB supports the Sustainability Task Force's efforts to ensure that biodiesel produced and sold in the United States comes from sustainable resources and discourage any non-sustainable practices in producing agricultural commodities used for biodiesel.
 Following are key points on sustainability to keep in mind:
 
 Biodiesel, like all other renewable energy sources, was developed specifically to enhance the sustainability of our use of energy resources. 
 
 › Crop production in the United States is trending significantly toward utilizing more conservation practices. According to the Conservation Technology Information Center, conservation tillage practices, including no-till farming, has increased dramatically both in terms of percentage and actual acreage since 1990.
 
 › he United Nations Food and Agriculture Organization has calculated that of the land that could be used for agriculture today, only 3.7 billion of 10.4 billion acres are used, and of that, only 1 percent is used for biofuels, which includes ethanol.
 
 › In the United States, more than 80 percent of estimated 2007 biodiesel production came from domestic soybean oil. A growing amount of biodiesel produced in the United States is also being made from other feedstocks such as recycled cooking oil, fats and vegetable oils from other oilseed crops. The increased demand for biodiesel is stimulating research and investment in developing new feedstocks such as algae, camelina, jatropha and arid land crops. The result is that additional feedstock volumes will be coming from marginal lands and utilized by innovative technologies.
 
 › Biodiesel has a significant positive energy balance. A USDA and U.S. DOE study has shown that soy-based biodiesel has a 78 percent carbon dioxide reduction. This study takes into account everything from planting the soybeans to delivering biodiesel to the pump. A 2007 update to the USDA/DOE study found that for every unit of fossil energy it takes to make biodiesel, 3.5 units of energy are gained. 
 
 › For every gallon of B100 that is consumed, greenhouse gas emissions are reduced by 16.12 pounds.

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Biodiesel Musical Chairs

Every school day, approximately 440,000 school buses transport more than 24 million children to and from schools in the United States. The vast majority of school buses are powered by diesel engines. Several thousand of those buses are running on biodiesel to reduce particulate matter (airborne fine particles) and provide a healthier ride for children. 
 
 A recent webcast, "Biodiesel for Buses and Children: News to Use," was designed to show why biodiesel is an excellent choice for school bus fleets, particularly in terms of health, equipment, economy and the environment. Plus, despite the school year closing, the summer represents a time when fuel procurement may be considered in preparation for the fall.

 
 The webcast, available at <a href="http://www.biodiesel.org">www.biodiesel.org</a>, was developed by the Missouri School Boards' Association and the National Biodiesel Board with the support of the U.S. DOE, United Soybean Board, Missouri Soybean Board and the city of Columbia, Mo. Originally broadcast live, the webcast was designed to educate decision makers (school bus fleet managers, contracted fleet operators, school board members and other interested personnel) about the use of biodiesel blends. Topics include health effects, emissions reductions, fuel quality, storage and handling guidelines, procurement specifications and pricing. The one-hour program also details why biodiesel is the fastest growing alternative fuel in the United States. 
 
 The American Lung Association reports that particulate matter is linked to greater hospital admissions for respiratory diseases, such as asthma. Asthma is also the leading cause for school absenteeism nationwide. Biodiesel reduces particulate matter by up to 30 percent at a 20 percent blend. Because B20 works in any diesel engine with no modifications, it offers schools a transparent, cost-competitive option for an immediate solution to air quality concerns. 
 The program can be viewed at www.biodiesel.org/multimedia/audiovideo/.

New webcast informs schools about biodiesel

In a March 27 Time magazine cover story called "The Clean Energy Scam," by Michael Grunwald, biofuels were blamed for offenses ranging from emitting net carbon to tearing down rainforests. Joe Jobe, CEO of the National Biodiesel Board, responded with a letter that Time published in the "Inbox" section of its April 21 issue.
 
 The following section of the letter was printed: "Your cover story provides a distorted, inaccurate picture of biofuels. The overwhelming body of data demonstrates the carbon benefits of biofuels. For every unit of energy it takes to make domestic biodiesel, 3.5 units are gained... . It also has a 78 percent lifecycle carbon dioxide reduction. In 2007 alone, biodiesel's contribution to reducing greenhouse-gas emissions was the equivalent of removing 700,000 passenger vehicles from America's roadways. The U.S. biodiesel industry strongly opposes rainforest destruction and nonsustainable agricultural practices. It is implementing a major initiative to enhance the overall sustainability of biodiesel production. Biodiesel increases our renewable-energy supply, adds well-paying, green jobs to the economy and reduces carbons and other emissions. I am proud to work in an industry that addresses these critical issues facing our nation and world."

Time runs NBB response to "Clean Energy Scam"

U.S. sales of biodiesel tripled in 2006 and doubled again in 2007. Soybean oil has historically been the primary biodiesel feedstock, with other edible oilseeds, such as sunflower and canola, in the mix. Recently it has become apparent to most in the biodiesel industry that the media thinks biofuels, which includes biodiesel, is negatively affecting food availability.
 
 The combination of rising energy costs, increased global food demand and the weak U.S. dollar are the main causes of rising food prices. It is important to note that U.S. biodiesel production is not a significant factor. In fact, in 2007, only 12 percent of U.S. soybean production and 4 percent of global soybean production was used by the U.S. biodiesel industry to produce fuel. From the soybeans used to produce biodiesel, 81 percent of the soybean's yield is protein that enters the market for either human consumption or animal feed. Technological advances are certain to increase soybean yields from existing acreage in the future. 
 
 Much of the edible feedstock used for biodiesel provides protein meal in addition to oil. Several comprehensive economic studies evaluating biodiesel have been conducted in the past few years. All had similar conclusions: Greater use of fats and oils for biodiesel production increases the value that farmers receive for their crops, while making protein meal less expensive.
 

 In the case of soybeans, 80 percent of the soybean is protein meal and 20 percent oil. Higher demand for the oil could lead to lower-cost protein meal for human and livestock consumption. According to the University of Missouri Food and Agricultural Policy Research Institute, rising use of soybean oil to produce biodiesel has already increased the availability of protein meal. In addition, the institute projects U.S. consumption of soybean meal and exports to increase, with the price of soybean meal dropping substantially.
 
 The United Nations Food and Agricultural Organization has said that a growing biofuel market offers new opportunities for small farmers around the world. The FAO calls for a plan to develop bioenergy polices ensuring "that everybody benefits," and has recommended small-scale financing to help farmers in poor countries produce local biofuel. Biodiesel can help developing countries and the United States increase the availability of low-cost protein meal while decreasing reliance on petroleum. 
 
 The U.S. biodiesel industry is furthering feedstock development with non-edible sources and by adding yield to existing oilseed crops as agriculture technology continues to develop as it has consistently. The industry is also researching ways to add more oil content in feedstocks such as soybeans and more. 
 
 Biodiesel is a rising tide lifting many ships by adding emissions-reducing renewable fuel supply, and by increasing protein while lowering its cost. When best practices are employed, biodiesel provides benefits in food availability, reduction of greenhouse gasses, energy security and building local economies.

Producing biodiesel from soy oil provides for fuel and food production.

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Biodiesel benefits food supply

Larkspur, Calif.-based biodiesel technology provider and biodiesel producer Greenline Industries raised $20 million in a Series A financing round with Leaf Clean Energy Co., a publicly traded, London-based, $400 million clean energy fund that focuses on investment opportunities in North America. According to Greenline Chief Executive Officer John Kinney, the "initial investment will allow Greenline to accelerate research and development to improve upon its existing technology and add new products to reduce the costs to produce biodiesel."

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Greenline Industries secures R&D funding

Biodiesel enthusiasts have a new networking and auction Web site available: <a href="http://www.fillmorefuels.com">www.fillmorefuels.com</a>. Styled after the popular eBay auction site, Fillmore Fuels lists items under several categories: feedstocks, biodiesel fuel, biodiesel equipment, diesel equipment and general items. Similar to eBay listings, the seller can choose to set a minimum price on an auction listing, list the item with set prices, offer to swap or simply run a classified ad. There are also several discussion forums available.

New Web site offers networking, auction tools

Earthrace, a biodiesel-powered trimaran, left the Vulkan Shipyard at the port of Sagunto, Spain, on April 27 to make a second attempt at a world record for circumnavigating the globe. The powerboat will run on B100 with a zero-carbon footprint.

 
 The crew of the 78-foot vessel hopes to complete the voyage in less than 65 days. The existing record of 74 days, 23 hours and 53 minutes was set in 1998 by a United Kingdom boat, called Cables and Wireless Adventurer.

Earthrace leaves the Vulkan Shipyard on April 27. 

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Earthrace begins new trial

ConAgra Foods Inc. has agreed to sell ConAgra Trade Group to the Ospraie Special Opportunities Fund, part of Ospraie Management LLC. The sale price will be $2.1 billion and is subject to certain adjustments. ConAgra Trade Group will be renamed Gavilon LLC after the sale is completed. The new entity will continue to work with ConAgra's customers in the renewable energy industry as it makes the transition.

ConAgra Trade Group becomes Gavilon

Des Moines, Iowa-based Bratney Cos. recently announced the availability of a new bolt-on process for the pretreatment of crude corn oil used to produce biodiesel. The technology, which is being provided by Germany-based partner Cimbria Sket, filters impurities from crude corn oil recovered at the back end of an ethanol plant to produce refined corn oil and free fatty acids suitable for biodiesel production. The process is expected to provide biodiesel producers with a lower-cost feedstock alternative.

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Bratney offers crude corn oil pretreatment process

A collateral agreement with a local bank will allow Beatrice Biodiesel LLC to complete construction of its 50 MMgy biodiesel production plant in Beatrice, Neb., and then position the plant for sale. The work is expected to be finished by early June. 
 
 When completed, the facility will produce soy-based B100 and "technical-grade" glycerin. Construction stalled when cost overruns and feedstock price increases forced plant owners to seek additional financial support and place parent company U.S. Canadian Biofuels on the market.

Beatrice Biodiesel receives cash pool to complete construction

Houston-based Nova Biosource Fuels Inc. has named Fred Zeidman as interim president of the company. He will replace J.D. McGraw, who will remain vice chairman of the company. Zeidman has been a director at Nova Biosource since June 2007. He previously worked in law, consulting and oil business sectors.
 
 In other news, on March 20, Nova Biosource announced it had secured $12 million in a second installment of funding to complete a 60 MMgy biodiesel plant in Seneca, Ill. The plant began commissioning at the end of March.

Nova Biosource announces funding, names president

Golden, Colo.-based Blue Sun Biodiesel LLC recently appointed Michael Miller to the newly created position of president and chief operating officer. Miller garnered 30 years of experience in the fuels and lubricant sectors at BP Corp., Castrol Ltd., PepsiCo. and Ford Motor Co.
 
 In other news, in early April, Blue Sun Biodiesel closed on an unsecured $3 million loan, which will ensure the company's production of B100. Earlier in the year, Blue Sun delayed start-up of its Clovis, N.M., plant, which was under construction.

Blue Sun Biodiesel announces hires, milestones, delays

BBI International Inc. announced that Angela Damman has filled the newly created position of vice president of international business development. Damman, previously the vice president of conference and events for BBI, will oversee global expansion for the company and develop new business for BBI's service areas, including project development, conferences and events, and media.
 
 BBI also hired Tim Portz to conduct business development for its Community Initiative to Improve Energy Sustainability (CITIES) program. He will identify and pursue opportunities to sell CITIES consultation services to interested municipalities, concentrating his initial efforts in the upper-Midwestern states. Portz previously worked in sales management for printing company RR Donnelley & Sons Co.

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Damman, Portz fill new positions at BBI

The search for sustainable biodiesel feedstocks lit a fire under jatropha development late last year as almost weekly announcements were made of new ventures involving the oilseed bearing plant were cropping up worldwide. Much of that was driven by the European understanding of sustainability, which elevates nonfood biodiesel feedstocks such as jatropha to the top of the list. In the United States, a fledgling effort in the biodiesel industry has quietly been investigating another potential feedstock, Moringa oleifera, because it could serve as food and an oil source for biodiesel.
 
 Among those searching for solutions to feed the hungry, Moringa is well known. Beth Doerr is familiar with the tree because of her agricultural endeavors in developing countries. She and her husband work with the Educational Concerns for Hunger Organization Inc., a nonprofit that grows Moringa, among several other food crops, on its Global Farm Research and Learning Center in North Fort Myers, Fla. ECHO trains people to work with small-scale, subsistence farmers, teaching them to make better use of underutilized plants, and developing small-scale, low-cost technologies. "We teach them how to produce food in difficult circumstances," she says. 
 
 Doerr has seen malnourished children flourish with the introduction of the nutritious Moringa leaf crop, which provides protein, vitamins and minerals in their diets. "Moringa is a great tree," she says. "It can withstand drought, and it can withstand sandy soils." The tree is extremely easy to start from cuttings or from seeds, and is usually grown for its leaves, Doerr says, adding that they haven't conducted research on the tree's potential as an oilseed crop. The tree produces seeds in the first year. In Doerr's work with the trees the seeds were collected and used to produce more trees. In warm, favorable climates the seeds germinate within a week and the tree grows 15 feet or more in the first year. Also, in favorable climates, the trees provide three or more leaf harvests per year, while in harsher climates just one cutting is taken. "It's a very flexible tree," Doerr says. In Central America it is grown like a vegetable, seeded two inches apart and cut back when it's 2 feet tall. "It will never produce seed in that case," she adds. Moringa trees that are grown as perennials for seed should be cut once to encourage branching and then allowed to produce seed. The trees will grow to 30 feet tall when left to mature naturally.
 
 One Tree, Multiple Uses

 The many uses for Moringa products are intriguing, says Glen Meier, manager of research and development for the Renewable Energy Group Inc. In contrast to the toxic jatropha oil and meal, Moringa leaves can be used in salads, or dried and powdered for sauces and baby formula. The immature seed pods-known as drumsticks in India-are harvested and eaten like asparagus. An extract from the leaves can act as a plant growth hormone and it boosted corn yields in the South American country where that research was conducted. 
 
 Indeed, Moringa wasn't considered as an oil source because it has so many food uses, says K. Shaine Tyson, a strategic planning, biodiesel technology evaluation and market development consultant for Rocky Mountain Biodiesel Consulting LLC. "Everybody knows it in India as the drumstick tree," she says. "They don't see it as an oilseed crop." 
 Tyson, former director of the biodiesel program for the National Renewable Energy Laboratory, began to research Moringa after she received a call from Meier wondering what she knew about the tree. For more than six months she searched for data to back up the multiple claims she found on the Internet. 
 
 Tyson presented her findings at this year's National Biodiesel Conference in Orlando & Expo in February. The presentation generated a lively discussion between her and the Europeans in attendance. "They couldn't understand how I could possibly say Moringa was a more sustainable feedstock [than jatropha]." A long conversation couldn't budge them from their viewpoint that food crops couldn't be considered as sustainable biodiesel feedstocks. Tyson believes that Moringa could yield the same amount of oil per acre as jatropha based on her review of both crops, and that it could be used for food in times of shortages. 
 
 The Moringa tree is native to India and grown in tropical and subtropical regions across Asia, Africa and South America. It is also grown as an ornamental tree in the southern United States. Because the tree is easy to establish and grows rapidly, it might lead some to question its invasive tendencies. However, Doerr says in her travels through more than 40 countries she has never seen its weedy potential. One reason for that, she believes, is because animals love to eat the tree. In some areas young plantings have to be protected from animals, although in other regions Moringa is grown as a forage crop just for animal grazing. Another reason Moringa hasn't developed into a weed is that the seed pods aren't dispersed by the wind. "The pods drop below the tree, get bugs and decompose, unless you collect and plant them," she says.
 
 Unproven Unknowns
 Considering Moringa's potential as an oilseed feedstock for biodiesel raises some questions for which there are currently no answers. For example, how are the Moringa seeds harvested? "It has not been optimized as an oilseed crop, and there is no really easy harvest technique right now," Tyson says. Presently, the leaves and pods are harvested by hand like jatropha. Mechanical seed harvesting equipment needs to be developed to commercially produce Moringa as an oilseed feedstock. Also, there's not a lot of good seed yield data on Moringa, although Tyson says her literature search indicates yields of about 3 tons of seed per hectare (1.37 tons per acre), a bit less than what is currently reported as potential jatropha yields. The seeds contain 30 percent to 40 percent oil that is high in oleic acid. The meal yields about 61 percent protein. "The data on the oil quality is excellent," she says. "It's better than sunflower oil." Meier adds that preliminary analysis shows biodiesel made from Moringa has better oxidative stability than biodiesel made with most other feedstocks, although the cloud point is similar to tallow and thus rather high. On the plus side, the seeds are relatively easy to crush using nonsolvent-based crushing techniques, he says.
 
 "[Moringa is] certainly of interest and we're trying to promote interest and research," Meier says. "We're looking for a collaborator on additional research." He and Tyson speculate how it might be introduced into the United States. "It is rather complicated to develop a new crop in the United States," Tyson says. However, she thinks it could be introduced much like soybeans were, being grown first in milder climates and moving northward as new varieties are developed to tolerate the colder climate. 
 
 The crop's multiple dimensions would make it attractive to farmers in the United States and in developing countries, Meier says. Some countries may have a sufficient food supply but lack an economical fuel source. Moringa could be grown initially as a feedstock for biodiesel production until it caught on as a food source. 

 
 While Doerr has focused solely on its food uses, she is interested in the further development of Moringa. "It does produce a lot of seed, and it produces well in areas that need income," she says. "It merits further research and study to see if it is a viable alternative fuel and to see if a market could be developed. From my perspective anything that gets people thinking more about the Moringa tree is good because it is an incredible tree. My only hesitation would be if a large company decided it wanted to patent the tree." 
 
 Meier says he also welcomes further work on the crop, but he fears a jatropha-like rush. "We don't want to give false hope," he says. "This has a ways to go. First, we need to help out some countries that need food and fuel, and second, we need to continue to work toward commercialization." Doerr agrees that a lot of research still needs to be done. "There are a lot of properties of the tree that have never been studied," she says. "If people get interested, maybe that will encourage researchers to find out what the tree can offer." 
 	
 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.

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Moringa seeds are winged. The center ball containing the oil is about the size of a large pea. The seeds and seed meal can be used to purify water. The seeds are held in a 10- to 12-inch triangular pod.

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A plot of Moringa cuttings is used to teach production practices and experiment with small-scale, appropriate technologies at the ECHO research center in North Fort Myers, Fla.

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The oil from the Moringa tree is considered to be a more sustainable biodiesel feedstock than jatropha oil by those who argue that sustainability is better served by feedstocks that can yield both food and fuel.

Multidimensional Moringa

Riverkeeper Nelson Brooke is a biodiesel supporter-so much so that he makes his own backyard brew. When Alabama Biodiesel Corp. took over a local mulching operation, Brooke welcomed it to the neighborhood-in this case, the Carthage Branch of the Black Warrior River. Brooke wondered about potential pollution from the refinery, but told the company he hoped it would be a shining example as the state's first biodiesel venture. Now his nonprofit organization is embroiled in a lawsuit with A-B Corp. after Brooke discovered dark-colored pollutants floating along the waterway that is a major recreational area for Alabamians.
 
 In July 2006, a group of golfers on the Meadow Hills Golf Course in Iowa Falls, Iowa, was startled to find several dead fish and a milky-colored discharge in School Creek, which runs along the course. A subsequent investigation by the Iowa Department of Natural Resources traced the discharge to a Cargill biodiesel plant and glycerin refinery. A septic system contractor allegedly disposed of a sludge wastewater mixture from the facilities on acreage at a recycling site that seeped into the creek. Cargill entered into a partial consent order with Iowa and paid a $100,000 fine for the pollution, without admitting fault.
 
 In Missouri a farmer was spotted discharging the contents of a tanker into Belle Fountain Ditch in October 2007. State and federal responders found decomposing glycerin and methanol generated from the Natural Biodiesel Plant near Hermondale. The farmer now faces criminal charges under U.S. Environmental Pollution Agency laws, for allegedly violating the Clean Water Act. U.S. EPA Region 7 Administrator John Askew says anywhere from 30,000 to 100,000 fish and other aquatic life died as a result of the discharged pollutants. "EPA supports the growth of the renewable fuels industry, however workers need to be environmentally responsible," he says. The plant itself is not charged with any violations.
 

 These incidents may cause biodiesel to get a reputation as a bad neighbor. But a closer look reveals a fledgling industry struggling with a host of issues that go beyond simple acts of pollution. Perception is everything, within and outside of the industry. The perception that this renewable fuel may be environmentally hazardous is new to the industry, and the public. That's because the scientific and regulatory communities seem divided on the toxicity of biodiesel byproducts.
 
 How Widespread are the Problems?
 The National Response Center, a division of the U.S. Coast Guard, tracks oil and chemical spills. The center operates a national spill hotline and, from 1991 to date, the NRC recorded 36 glycerin spills throughout the United States. Of those, only five are attributed directly to biodiesel plants. The Missouri spill was reported as intentional. The remaining spills were attributed to operator mistakes, hose problems and gasket failures. Many of the remaining 31 spills are attributed to transporters-trucking companies, rail lines and other businesses. If any of the transporting entities was moving glycerin on behalf of a biodiesel refiner, there is no way to ascertain this from the database. And although the center has recorded more than 10,000 diesel spills in that same time period, a spokeswoman says the center doesn't differentiate biodiesel from petroleum-based fuel and the database right now can't track source queries, so pinpointing biodiesel polluters as a whole isn't possible yet without viewing each spill individually.
 
 Another difficulty is that records may be scattered between state and federal agencies. "Depending on what the substance is and what happened to it, it can fall under any number of statutes," says Dave Janek, EPA Region 8 public information officer. "There's nothing we track as biodiesel." He says a biodiesel pollutant might be airborne if the fuel is burned, it could be an underground tank issue if a storage tank leaks, or could be a water violation if there's seepage or spills into waterways. "This might change as we track more energy-related things," he says. Janek says he is hearing of glycerin pollution, but he doesn't recall any specific incidents. The EPA database is similar to the NRC's, in so far as it doesn't track specific elements or polluters by industry. "Unless we have a listing for Acme Biodiesel, these could be hard things to track down," he says.
 
 In 2007, the Des Moines Register of Des Moines, Iowa, conducted a statewide survey of biofuels violations for the previous six years, finding 394 air, water or land regulation violations scattered among Iowa's ethanol and biodiesel plants. The majority of the violations came in meeting sewage pollution limits and discharges of wastewater, or spills of wastewater, into waterways. Because the newspaper considered the biofuels industry as a whole, biodiesel might legitimately argue "guilt by association."
 
 Too Much Confusion, Too Little Compliance
 States eager to get onboard the alternative energy train might shoulder some responsibility for their zeal. Brooke says that's what happened in Alabama. He says officials from Alabama's Department of Environmental Management were so intent on working with A-B Corp. to get its permits in order that they neglected the obvious spills and fish kills on the river. The plant kept operating until his agency filed a notice to sue, he says. And it was only after the lawsuit was filed in U.S. District Court that the biodiesel company began addressing the compliance measures, Brooke says, expressing frustration that it had to come to this. "They said that the spills were isolated accidents, that they weren't attributable to an ongoing problem or ongoing discharge" he says. "There was pollution leaving the site without a permit for a year and a half" starting in 2006.
 
 ADEM spokesman Scott Hughes denies that the state delayed policing the spills because the lawsuit and the state's consent order came within days of each other in August 2007. "We documented violations at the facility and we initiated enforcement actions in what we considered a timely manner," he says. "We issued a consent order for the facility for the violations that occurred and we feel we addressed the enforcement and noncompliance." The state documented two separate discharges of "oil sheens" and fined the refinery more than $12,000. But the department didn't find irreparable harm to the 300-mile-long waterway. When regulators looked into the issue of whether the biodiesel plant had gained an economic advantage by operating without the permit, the department noted that, "The A-B Corp. failed to obtain an individual [pollution] permit for its biodiesel operation which saved money on application and monitoring costs," but then determined that no significant economic benefit was derived by the plant. Officials from Alabama Biodiesel did not return calls seeking comment for this story.
 
 The DesMoines Register found numerous problems with the early permitting stages, which embarrassed and angered state regulatory agencies in Iowa. But the newspaper also noted that trade associations, which aggressively promote the biofuels industry, included numerous board members that came from plants that had been fined. One analyst wonders if promotion of biodiesel as an earth-friendly fuel may have created a misperception within the industry. Because so many people "regard biodiesel and its byproducts as organic, dumping or spreading those waste materials becomes an ethical issue, not necessarily a legal or regulatory one," says Rick Kment, a biofuels analyst for DTN. "Is it illegal to dump glycerin in most states?" he questions. 
 

 In Iowa and many other states, there are regulations prohibiting ground application of waste products when a chemical mixture gets to a concentrated level, a toxic level that typically depletes oxygen contents in soil and water or significantly alters existing soil nutrients. All states follow federal regulations that prohibit wastewater discharge when it disturbs surface waters. Many states have enacted laws prohibiting land application of industrial discharges when such practices produce objectionable odors, colors or other "aesthetically objectionable conditions." These are generally listed as "duty to avoid pollution" statutes. In Minnesota, notification is not required if 5 gallons or less of petroleum is discharged. The volume and chemical makeup of the discharge, and the amount of suspended solids, will usually trigger regulations already in place, and duties to disclose discharges. Iowa officials found the School Creek discharge to be "acutely toxic." Nearly 600 fish died.
 
 In both Alabama and Iowa, officials and opponents discussed the propensities for vegetable oil discharge from biodiesel plants to dissolve oxygen. The discharge is high in biochemical oxygen demand and when broken down by bacteria in water, it depletes the oxygen content of the water, causing fish to die. Brooke maintains this "irreparable harm to the environment" is why such elements should not be permitted to be discharged at any level. The oxygen depletion issue is the same in wet soil. Glycerin is another matter.
 "The ability to land-apply glycerin is going to be dependent on what constituents are in the glycerin and at what levels," says Nancy Drach, principal planner for the Minnesota Pollution Control Agency's Environmental Review Division. "Glycerin from biodiesel facilities is generally dirty, it has a large and varied number of constituents and may also be hazardous," she says. "Based on what limited knowledge I have to date from other states, it doesn't land apply very well" due to its syrupy makeup.
 
 Material Safety Data Sheets are a widely used system for cataloging information on chemicals, chemical compounds and chemical mixtures. They generally include instructions for the safe use and potential hazards associated with a particular material or product. The MSDS categorizes glycerin as an irritant and not necessarily a hazard for humans and animals. But it is deemed explosive if combined with certain oxidizers, and that brings it within the purview of a hazardous waste designation. Drach says she attended an environmental seminar in December 2006 where this explosive tendency was discussed at a roundtable. Consequently, disposal of glycerin in wastewater treatment facilities is widely prohibited. In Defiance, Ohio, firefighters said glycerin vapors from the biodiesel plant's tanks were likely ignited by an electrical spark in January 2008 from an overhead garage door. The resulting explosion caused extensive damage to the plant. Biodiesel proponents say it's the methanol component in the glycerin that is harmful, not the glycerin itself.
 
 Whether glycerin should be considered harmful varies depending on who you ask. "I see no significant environmental threat from the glycerin byproduct, in itself," says Dennis Wiesenborn, professor of agricultural and biosystems engineering at North Dakota State University. "Glycerin is not a hazardous chemical and breaks down readily in the environment. The crude glycerin from a biodiesel plant has been described as the wastebasket of the biodiesel process, in the sense that the catalyst, much of the oil impurities and methanol, go to this phase. There could conceivably be some impurity in the glycerin that could elevate the environmental risk, but I know of no threats given typical feedstocks and catalysts. It might be desirable to neutralize the residual catalyst as one safeguard."
 
 Glycerin's level of toxicity, and knowledge of its effects, is at issue in Missouri, where the farmer is facing criminal charges. His attorneys argue that the glycerin and methanol applications may have been negligent but didn't rise to the level of a criminal violation. The case was pending at press time. 
 
 Negligence and the unknown are Kment's points. "The biodiesel industry is so different from the ethanol industry," he says. "It's gone from agricultural micro batches to a hobby type of industry to a trade industry. When you're handling small amounts of these products like glycerin they don't trip the [regulatory] radar. They're viewed more as a nuisance." 
 
 He compares glycerin disposal to dairy farmers spreading whey on their fields. It didn't become an issue until states noticed spilled whey on the roadways, he says. Because whey has a high sodium content, it caused pavement to corrode, and states began enacting regulations. It was like salting roadways, which many states used to do during ice or snowstorms, Kment says. They don't any more. There's a learning curve associated with the fledgling biodiesel industry that will take a few years to sort out, Kment says. "These byproducts haven't been traditionally viewed as manufacturing chemicals," he says, nor has the wastewater that biodiesel plants generate.
 
 The EPA's Janek says the regulatory framework for a fledgling industry may need to grow as well. Some states, such as Iowa, do have mandates to police water violations. "In other states, if they don't police these things, we'll go in," he says. States in the Corn Belt are more familiar with biofuels plants and are more apt to have regulations in place, he notes. 
 

 Nebraska's Department of Environmental Quality has published a guidance document that's considered a model in the industry, containing waste management tips for biodiesel plants. The document contains a number of factors in considering the potential for a hazardous waste determination and mentions glycerin's "ignitability," not its chemical makeup, as reason to categorize it as hazardous. High concentrations of methanol and wide variations in the pH scale of waste materials tilt the determination toward hazardous materials, the document indicates.
 
 Alabama has similar provisions in its laws. "We've never been able to verify exactly what was in the discharge, but they did it in the absence of a National Pollutant Discharge Elimination System permit from the state," Brooke says. "It's a federal criminal offense to be discharging pollution without a permit." He says the oily discharge hampered residents from using the river, which is a major recreational area in Alabama. "People downstream were not able to enjoy the river for many different purposes, whether it was canoeing, boating or swimming," he adds.
 
 In addition to fining the biodiesel plant, Alabama ordered it to undergo a Best Management Practices review and issue to the state a report ensuring future compliance. Many states have management practice statutes along with duties to adhere to regulatory laws. These statutes put businesses, not just in the biodiesel industry, on notice that they must operate within certain standards of care for the public good.
 
 Addressing the Issues
 Because state regulations vary, biodiesel plant developers and operators, large and small, must educate themselves as to the laws guiding their plants. In Iowa, officials cited Cargill and its subcontractor for not testing its industrial sludge to determine the appropriate application rate, in this case 2 tons per acre per year, measured on a dry-weight basis. But the state also faulted Cargill and the subcontractor for not performing a soil determination test beforehand. And the companies were faulted for applying the sludge too close to a drain tile, and in failing to keep records of sample analysis and waste disposal operations. Finally, the companies were cited for not informing environmental authorities before opening the waste disposal sites. Cargill and its attorney did not return calls seeking comment for this story.
 
 Attorney's for the Missouri farmer have requested numerous documents in discovery to determine if the oxygen depletion in the waters of Belle Fountain Ditch could be attributable to other environmental factors, and not simply to the presence of the glycerin and other byproducts dumped there.
 
 In Alabama, plant officials temporarily shut down production as they worked to clean up the spills and stop future discharges. "We've had preliminary settlement meetings and feel confident it will be finalized within the next couple months," Brooke says of the nonprofit organization's lawsuit against the plant.
 
 Testing, analysis, notification, record-keeping and education may be the keys. And as many plant operators move toward lower quality feedstocks, new regulations could arise. "I'm afraid I don't have any detailed information comparing waste from animal fat-based biodiesel versus soy-based," Wiesenborn says. "If the fat is a lower-quality feedstock such as yellow grease, I would expect more impurities in the glycerin, but not to a level that would result in a significantly greater environmental threat," he says. But he suggests that plant operators employ cleaning methods as a precaution. 
 
 Kment believes solutions to the pollution issues will arise as they do with all fledgling endeavors. "The industry in some ways is growing so big," he says. "Some of these issues that on a small scale would have been considered nuisance issues are now bigger. It's so polarized in the media and society right now focusing on the environmental impact that these small issues, in view of the environmentally friendly atmosphere, really become a flashpoint." 

 	
 Sarah Smith is a Biodiesel Magazine staff writer. Reach her at ssmith@bbibiofuels.com or (701) 663-5002.

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As relative newcomers to the industrial world, biodiesel producers, who are generally regarded as environmentally friendly, need to be good neighbors when it comes to properly disposing of byproducts. Although the scientific and regulatory communities have yet to agree on the toxicity of biodiesel byproducts, the industry should be prepared as the regulatory framework for the fledgling industry materializes.

Pollution Violations May Test Public Support for Biodiesel

A strong sense of patriotism, camaraderie with the American farmer and a concern for the environment is prompting more over-the-road truck drivers to fuel their big rigs with biodiesel. To ensure this trend continues, the National Biodiesel Foundation created a Web site to guide drivers to truck stops that carry biodiesel and to offer BioTrucker Fuel Cards.
 
 Sharon Bell, who specializes in trucking outreach for the NBF, says the primary hurdle for truckers has always been locating gas stations that carry biodiesel when they're ready to fuel up. "I want to buy biodiesel, but where can I get it?" Bell says, parroting a question she often hears from truck drivers. 
 
 In a brochure designed to promote the Web site and the use of biodiesel, Loren Beal of Lacrosse, N.D., said although his experience using the renewable fuel has been great, he regrets that it isn't more readily available. "I get five-eighths of a mile more to the gallon with biodiesel," he said. "It cleans the fuel tanks, lines and injectors. I wish more places had it; I get it anywhere I can." 
 
 Indeed, the experiences and observations of today's drivers seem to indicate that availability is a major sore spot. However, the availability problem can be addressed with good communications and information, Bell says. "We created a Web site called www.biotrucker.com," she says. The response to the Web site, which features a map and hotline identifying stations that sell biodiesel, has been nothing short of phenomenal. "We get 8,000 to 12,000 unique visitors a month," she says.
 
 The truck drivers positive reaction to the Web site comes as no surprise to NBF Executive Director Tom Verry, who is also the director of outreach and development for the National Biodiesel Board. "Truckers rely on laptop computers more and more to find loads and route information," he says. Computer usage has permeated every aspect of American life, and the business of moving goods across the country is no exception. "The ones who don't [have computer access on the road] will call back home to their wives," he says, adding that trucking is often a family-run business. Verry believes the response to the Web site is a manifestation of truckers' devotion to their country, the environment and their farming friends. "If there's any way they can use [biodiesel], they want to use it to help reduce our dependence on imported oil and support American farmers," he says. "Our logo for biotrucker is 'American farmers fueling American truckers,'" he says.
 
 Card-Carrying Benefits
 The BioTrucker Fuel Card looks and functions like a credit card, and has several benefits for truck drivers who choose to use biodiesel. "If they buy biodiesel within our network there is no transaction fee," Verry says. "A lot of truckers pay up to $5 per transaction for fuel purposes." The in-network locations and other truck stops that carry biodiesel are listed on the Web site. The NBF has nearly 150 in-network locations that carry biodiesel and they are continually adding to that list, Bell says. 
 
 There are other ways that truck drivers can save money using the card. "They get the cash price on biodiesel purchases, not the credit card price," Verry says, noting that the cash price is typically lower. Bell says a handful of stations also offer an at-the-pump discount for biodiesel. Kevin Cassidy, marketing manager for Sapp Bros. Travel Centers, says the company is proud to be one of the first biodiesel providers to offer a 2-cent per gallon discount at the pump. "We are huge supporters of biodiesel and this program will generate interest and awareness," he said in a press release announcing the BioTrucker Fuel Card.
 

 To increase the number of options for truck drivers, the NBF is partnering with Fleet One, a service provider for companies with vehicle fleets. Fleet One is accepted at about 5,000 truck stops nationwide, Verry says. "Fleet One says this has been the biggest partnership roll out of a fuel card they've had," he says, noting that the company forms these types of partnerships all the time. "[Fleet One] has communication channels set up. That service alone is invaluable for our efforts to help us keep our database."
 
 Generating Interest
 In mid-March, the foundation shared a booth with the United Soybean Board at the Mid-America Trucking Show in Louisville, Ky., where it accepted applications for the card. "We had about 70 truckers come by who were interested," she says. "We had more than 30 applications actually filled out at the show." 
 
 Verry sees the initial success of the Web site and the card as a sign that things are changing. Pointing out the obvious, dependence on foreign oil that the U.S. experiences daily and painfully at the pump, he says the truck drivers have had it with Mideast oil and high prices. "Truckers will sometimes put it in some blunt terms, [how they feel] about Mideast oil," he says. "They're being squeezed there's no doubt about it." The high cost of diesel fuel spurred some truck drivers to head to Washington, D.C., in April, to see if they could get some relief from lawmakers. Their anger and frustration with fuel prices may be another factor driving them toward a fuel that can be produced with feedstocks that can be obtained locally. 
 
 In trucker testimonials the NBF gathered during the Mid-America Trucking Show, Brad Luce, a truck driver from Shakopee, Minn., said he wants farmers to benefit from the fuel he purchases. "I believe in biodiesel for security," he says. "I want to see American dollars go to American farmers rather than the Middle East." Arch Robertson, a trucker from Mechanicsville, Va., agreed, saying that biodiesel is good for everything. "It's good for our trucks, the environment, farmers and our country." Greg Bosley a trucker from Baltimore, Md., appreciates the extra mileage he gets when he uses biodiesel. "I find that highway mileage increases 100 to 125 miles per tank. I also notice no more soot on the paint from the exhaust, and the engine runs smoother and quieter," he said. 
 
 As the number of BioTrucker Fuel Card holders increases and the Web site's popularity grows, Verry says they plan to continue adding value to the products. "The next step is to get price information in there," he says, explaining how real-time information on prices would be an invaluable asset to drivers.
 
 Although it's designed for truckers, others are interested in the fuel card. "We're getting interest from companies who want to see their products moved with biodiesel-by biodiesel powered trucks," Verry says. "A lot of corporations are looking to 'green' their companies." 
 
 The fuel card could also be used by companies that have fleets to convert their biodiesel use into carbon reduction equivalents. "If we could provide [fleets] a print-out through the BioTrucker Fuel Card [they could] track their biodiesel use," he says. "We kind of build this brick by brick," he says, stressing that the ultimate goal is to see the United States achieve independence from the stranglehold of foreign oil.
 
 Truckers can sign up for the BioTrucker Fuel Card by going to <a href="http://www.biotrucker .com">www.biotrucker .com</a> 

 
 Timothy Charles Holmseth is a Biodiesel Magazine staff writer. Reach him at <a href="mailto:tholmseth@bbibiofuels.com">tholmseth@bbibiofuels.com</a> or (701) 738-4962.

Verry, right, and George Martin, United Soybean Board director, answer questions at the BioTrucker Fuel Card press conference on March 25 at the Mid-America Trucking Show.

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Jaime Vincent, middle, of the Kentucky Soybean Board, Michael Frybarger, right, truck owner-operator and biodiesel user, and Bell chat at a booth at the Mid-America Trucking Show.

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A new breed of truckers is emerging among the ranks of the transportation industry and their numbers are increasing up and down the lanes of U.S. highways. The biotrucker has arrived. Although the moniker may sound like some kind of futuristic fictional character from another planet, these men and women are red-blooded Americans.

Card-Carrying Biotruckers

There's no practical reason for Diane Mulloy to be involved in the biodiesel business. She didn't grow up exposed to renewable fuels. She's not a soybean farmer or a fuel retailer. 
 
 In fact, she became aware of biodiesel only a few years ago. No, her only reason to plunge into the volatile biodiesel industry was personal-she wanted to make the world better for her children. "I literally saw [country music star] Willy Nelson talking about biodiesel one day and I said 'That's what I want to do. I want to open a biodiesel company,'" she says. 
 
 Mulloy, a former lobbyist and trade association executive director from Nashville, Tenn., was ready to get back into the workforce after staying at home for several years to raise her children. She had been following environmental matters and was interested in getting involved when she just happened to see Nelson speak. That was enough for her to take action. Mulloy's plan was to own a business that would not only make money, but would help reduce the world's dependence on petroleum. "The economics of it didn't make a lot of sense in the beginning, but after the Energy Act of 2005 passed, I decided to get serious about it," she says. 
 
 Before she could get started, Mulloy needed some financial assistance. She consulted her husband, who owns a chemical company in Nashville, and he agreed to provide financial support for her project. Barbara and Gary Meloni, who own the building that houses the production facility in Memphis, Tenn., and Lehman-Roberts Co., a Memphis-based asphalt and mining company, signed on to contribute the rest of the financing. 	
 
 Milagro Biofuels of Memphis was born.
 
 Mulloy says her lack of experience in the industry was balanced by her investors' knowledge of chemical manufacturing. "I wouldn't advise people who don't have any chemical or manufacturing experience to open a biodiesel company," she says. "If it had not been for one of my partners also owning a chemical company and my husband … they were instrumental in assisting me in the technology end of it."
 

 Milagro Biofuels, the first major biodiesel company in Tennessee, opened in 2006 and was quickly operating at its goal capacity of 5 MMgy. Mulloy says, so far, the experience has been emotionally rewarding and that the company has been a "perfect fit" for her skills and ambitions.
 
 The Inspiration
 If it weren't for her three children, Mulloy says she may never have gotten into biodiesel. "We tell people regularly that we're doing it because of the kids and for their future," she says. "Our kids are our biggest cheerleaders. They've helped us market it, they talk to people about it at their schools and it's been really fun." Unfortunately, the decision to get back out into the workforce puts the same burden on women who are doing it to "save the world" as it does for those who make the same decision for less noble reasons. Mulloy still worries about being at work when her children need her, and feels guilty when she has to travel. She takes some comfort, however, in knowing that her children understand the bigger picture and why she's doing it.
 
 "There were probably several jobs I could have taken and made more money … and been easier," she says. "But I'm sort of an issue-oriented person. I really believe in making a difference where you can. Luckily, we had the ability to put money into a biodiesel company. Not everybody has that opportunity."
 
 The opportunity has yet to fully prove to be a wise investment, however. While 2007 was a "slightly profitable" year for Milagro, the outlook for this year is not as good. "We did this to make some extra money," she says. "Now we just have to make sure the industry does well enough that we're not going to spend [our children's] college tuitions in the process."
 
 Women in the IndustryMulloy tells Biodiesel Magazine she's shocked at how few women share her place in the industry. "When you go to conferences you see some women in sales, but hardly any in executive positions," she says. 
 
 Despite her minority status, she hasn't noticed any gender-based discriminatory practices toward her or the company since opening Milagro, and she thinks some distributors probably enjoy hearing a female voice on the other end of the line for a change. "I may be naïve, but I think what people see is that I genuinely believe in the product and that I'm not just trying to make money-that's not my only intention," she says. "My customers trust me and my customer service is highly important." "Whether you're male or female, as long as you believe in your product and have integrity and a good product, the industry is pretty accepting," she says.
 
 The only gender-based discrimination she happily endures is that because women are a minority when it comes to owning businesses, female business owners have the opportunity to apply for small business grants that aren't available to men. Mulloy declined to apply for any federal assistance while generating start-up funding for Milagro because the process took so long. However, she's open to the possibility of pursuing one of the government contracts that gives preferential treatment to minority business owners. She hasn't applied yet because she doesn't need it. "[But] it's a nice safety net if I ever need that outlet," she says.
 

 Mulloy believes her sales background has helped her gain, and keep, customers in the difficult biodiesel market. "I think one of the things that I'm doing that men aren't doing is speaking to people and organizations," she says. Her view is that educating communities about the benefits of biodiesel provides long-term benefits to the industry. She spends a lot of time traveling to schools and communities to further the public's knowledge about biodiesel in an effort to secure a market for her fuel. "I think we still have a hurdle in the Southeast because a lot of people don't understand biodiesel yet," she says. "They don't understand the need for it, or even how to use it."
 
 Part of Mulloy's motive in speaking out to communities is to promote her company's goal of creating entirely sustainable communities. "The mission of our company is to define the future with biodiesel one community at a time," she says. "Our goal is to build several biodiesel communities across the state and the Southeast. We really believe in the local, regional model. I think that's the more sustainable model-better for the environment and better for the customers."
 
 Feedstocks Don't Discriminate
 Although there may be preferential funding opportunities for female business owners, the biodiesel feedstock market doesn't differentiate among anyone. Mulloy is sure the industry has been equally difficult lately for producers across the board-regardless of gender. She recently decided to close her plant for two months to construct another processing line so Milagro could begin using animal fats in addition to virgin soy oil as a feedstock. At press time, Mulloy was hoping the plant would be operational again by the end of May. 
 
 Many in the industry have, and continue to be, hit hard by feedstock costs. "That has been really difficult," she says. "It's not a profitable industry right now and I'm not quite sure when it is going to be. So, I'm out saving the world but I don't know if I'm ever going to make any money." 
 
 Last year, Mulloy decided to take the bull by the horns and fought to alleviate local producers' high-production costs by forming the Tennessee Biodiesel Producers Coalition. As president of the coalition she led a successful campaign to convince Tennessee legislators to mandate a 3-cent per gallon subsidy for state producers. That subsidy allowed some Tennessee producers to continue to operate, and they have Mulloy to thank.
 
 Think Positive
 Mulloy's views on the future of the biodiesel industry are shaped by her positive, go-for-it attitude. It is her opinion that EISA will be the saving grace of her adopted profession. "I think that 2009 is going to be a great year for biodiesel," she says. Mulloy told Biodiesel Magazine that 2008 is tough because of unrealistically high commodity prices, but prices will settle down by the middle of the year, setting the stage for a successful comeback next year.
 
 Growing acceptance of biodiesel, attributable in part to Mulloy's educational efforts, should help to spur the industry. As it stands, she could sell more product than she's producing, even at the high prices currently being charged for biodiesel. She is frequently solicited to export her product overseas, but has no plans to do so. It's production costs, not demand, that are causing the industry's current problems, and Mulloy says she didn't go into business to supply fuel to other countries. "We went into business to sell it in the state of Tennessee and in the Southeast," she says. "At some point that may be our only option, but I'm still pretty hopeful."

 
 Two years ago, when she was thinking of a name for her business, Mulloy was inspired by the nickname for soybeans-miracle beans-to use the Spanish word for miracle, "milagro," as the name of her company. As the reality of the current state of the industry takes hold, the company's name serves as a kind of irony for her. "Now, we frequently say that it's going to take a 'miracle' for the industry to pull itself out of this tough time," she says. 
 
 Kris Bevill is a Biodiesel Magazine staff writer. Reach her at <a href="mailto:kbevill@bbibiofuels.com">kbevill@bbibiofuels.com</a> or (701) 746-4962.

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Mulloy, co-owner and president of Milagro Biofuels, started her business to make the world a better place for her children. She's pictured here with her family, left to right, Diane, 12-year-old Sarah, James, 14-year-old Natalie and 9-year-old Connor

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In an industry born from grease, oil and animal fat, men have traditionally led the opening and operating of biodiesel plants. In Tennessee, however, one woman is determined to make a difference for her children and the world by creating biodiesel communities.

Biodiesel's Female Factor

Many countries provide incentives, mainly in the form of tax credits, to help biofuels compete with fossil fuels. The intent may be admirable and tax credits may be critical for establishing a healthy demand for biofuels. 
 
 Yet such tax policies often cause a great deal of trouble, both for those they were intended to help and for innocent bystanders. 
 
 This is now the case in Europe, where an inadvertent combination of U.S. tax policy and the phasing out of tax credits in Europe's largest biodiesel market is pulling the legs out 
 from under a once-thriving European biodiesel industry. 
 
 The so-called splash-and-dash tax credit faces phase-out in the United States this year, but the European Biodiesel Board is seeking legal action nevertheless and European Union trade reprisal may be coming. 
 
 Splash-and-dash, however, is only one element in tax mayhem that biodiesel is battling in Europe and elsewhere. As in the United States, European governments have set up tax-credit systems for biodiesel to provide support for domestic markets and industries. In Europe, these tax credits are in the form of reductions in the excise tax paid at fuel pumps-benefiting consumers rather than producers. 

 
 This kind of arrangement builds demand for biofuels. In contrast, the U.S. producer-tax credit assists mainly in building up production capacity, says Will Thurmond, a biodiesel consultant in Houston and author of the report "Biodiesel 2020: A Global Market Survey." 
 
 The German Factor 
 What happened? In Germany, generous tax treatment led to a 17-fold production rise from 200,000 metric tons of biodiesel from rapeseed in 2000 to 3.4 million metric tons (60 million to 1 billion gallons) in 2006. 
 
 The German government, however, was losing revenue by not taxing biofuels, about $3 billion in 2006. On Jan. 1 of this year, Germany imposed the U.S. equivalent of 9 cents per liter of biodiesel-about 34 cents per gallon. And the tax is scheduled to rise. 
 
 The far-reaching upshot has been more biodiesel imports-much of it via the United States because its inadvertent splash-and-dash loophole, which allows a $1-per-gallon tax credit for imported B99 to which as little as one-hundredth of 1 percent petroleum diesel is added in a U.S. port before re-export.
 
 Meanwhile, every European country has set its own level of reduction in its excise tax, which can range from 100 percent to 55 percent. At the same time, however, each country in the European Union is also part of a single European market-which means that biodiesel producers in any EU member country can freely sell their biodiesel into any other EU country. The result is that the specific tax-credit arrangements in the largest national market for biodiesel, Germany, has an enormous effect on the whole European biodiesel industry. "Germany," says analyst Thurmond, "is the magnet and driver of biodiesel in Europe." 
 
 Over the past few years, Germany has been by far the world's largest biodiesel producer, with almost 2.7 million metric tons (815 million gallons) in 2006. Consumption kept pace with production-until 2007.	
 
 Tax Holiday

 Biodiesel's popularity in Germany was primarily a result of tax policy. At the pump it was subject to no excise tax at all, making biodiesel much cheaper than most other fuels. This led to biodiesel capturing a whopping 12 percent of the German fuel market, compared with less than 1 percent for the EU as a whole. 
 
 Like all holidays, however, this retail tax holiday was never meant to be permanent. The German government began to phase in a tax in 2007. It immediately dried up demand for biodiesel in Germany. Biodiesel now accounts for as little as 2 percent of the German fuel market, according to Thurmond. 
 
 The drop in demand in Germany, the largest single EU market for biodiesel, has had a ripple effect on the whole European biodiesel industry, especially producers in Germany and neighboring countries. About 75 percent of Germany's biodiesel production capacity now lies idle, by some accounts. 
 
 Tax credits tend to be temporary, primarily designed to stimulate the growth of a nascent industry and market and withdrawn when the sector can stand on its own. Other support mechanisms may have the same effect. For instance, in the United States and the EU, tax credits are giving way to requirements that biofuels make up a certain proportion of the overall fuel supply. 
 
 Pain and Gain 
 Is it the case that a seemingly viable industry, with profitable companies and healthy demand, may only be so because of a tax credit? Might both profits and demand disappear along with the tax credit, as appears to be happening in Germany? If governments wish to foster biofuels growth, what's the right balance? 
 
 Across Europe as a whole, the pain caused by the loss of the German tax credit has been exacerbated by a spike in prices for vegetable oils, the main feedstock for biodiesel, which has tripled in price over the past year. Together with the "splash-and-dash" loophole, this is all creating a tough business environment for European biodiesel producers-forcing firms out of business or into mergers. 
 
 So what does it all mean for the future of tax policy and biodiesel? Europe's biodiesel industry isn't ready to stand on its own without tax breaks "at the moment," says Werner Langen, member of the European Parliament and chairman of its conservative Christian Democratic Union-Christian Social Union party. "But, sure, the aim in the future should be to have a biodiesel industry in Europe without tax breaks and with larger operations." 
 
 If Europe wants sustainable energy, biodiesel will be a key component and tax policy may well need to support that, Langen argues. Best would be a Europe-wide tax policy. "Only with such a policy can we support this important industry for the future," Langen says. "All in all, biodiesel must be a part of an independent European energy policy. That is our aspiration." 

 
 In the interim, biodiesel producers and consumers will endure some havoc. For some companies it will indeed seem that tax-policy changes can bring down a flourishing industry, Thurmond suggests. Ultimately, biodiesel must stand on its own without tax credits, he agrees. Eventually, cheaper second-generation feedstocks will help. 
 
 Meanwhile, one irony is this: In Germany, the tax credit was aimed at the consumer, stimulating demand until the government phased out the credit starting in late 2006. In the United States, on the other hand, the biodiesel tax credit is aimed at the producer, and has helped stimulate tremendous growth in biodiesel plants and production capacity-but the credit hasn't stimulated growth in consumer demand. Only 4 percent of U.S. passenger vehicles run on diesel, compared with more than 50 percent in Europe. 
 
 So the splash-and-dash loophole isn't the only reason U.S. producers are shipping to Europe. Tax policy notwithstanding, good old supply and demand is still in play. The diesel price in Europe is higher-$9 per gallon in the United Kingdom versus more than $4 per gallon in the U.S. Moreover, demand in Europe is greater. 
 
 Producers benefit from tax credits, but still must tend the basics: They need cheaper feedstocks, such as yellow grease, and higher prices for the end product. 
 
 Thurmond predicts that, for biodiesel producers, "profits will diminish but will not go away." Big, vertically integrated operations will make money even without a credit. Small plants using cheap local feedstocks can do business as well. "The tax credit in both cases is a stimulus, not a necessity," Thurmond says. "The market will eventually find a way to make biodiesel profitable without tax benefits." 
 
 The Right Balance? 
 Finally, then, if governments want to foster biofuels growth-what's the right balance? 
 
 In the United States, soybean growers pushed for tax incentives but didn't coordinate with oil companies and government, Thurmond argues. This resulted in high soybean prices, but left producers where they are today, with idled plants virtually next to fields full of soybeans that producers can't afford. 
 

 Brazil, China and India have planned more comprehensively, involving all the stakeholders, Thurmond says. "A collective, collaborative" U.S. effort involving political and industry stakeholders could create a roadmap that would help rebalance the industry, he thinks. 
 
 In short, tax credits may have the best intentions-though the effects can be anything but. 
 
 Jon Evans is a freelance science writer and editor based in Chichester, UK. He mainly focuses on the chemical and life sciences, covering everything from biofuels to nanotechnology, and is a regular contributor to a number of scientific magazines and Web sites, including Chemistry World and Biofpr.

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Can a thriving industry collapse because of tax policy? That appears to be happening in Germany and perhaps elsewhere. If true-what does it mean for biodiesel worldwide?

Taxing time for European biodiesel

After 88 years as the leading turnkey sugar- and ethanol-plant supplier in Brazil, Dedini Industrias de Base S.A. has turned to biodiesel-and now, in another step beyond its familiar turf, is working on its first foreign contract to supply a biodiesel plant to neighboring Colombia. 
 
 Jose Luiz Oliverio, Dedini's vice president for technology and operations, says the Colombian plant is relatively small. When it opens in 2010, its expected output will be just 100,000 metric tons (30 MMgy) of palm-based biodiesel annually or 2,000 barrels a day. 
 
 Most of the output is likely to go to the Colombian market, but some may be exported to the United States and Europe. The plant will be constructed in the refinery city of Barrancabaermeja, Colombia, for Ecodiesel Colombia S.A. Ecodiesel's parent company, Ecopetrol S.A., will supply the feedstock. The venture is part of a program by the Colombian government to improve the quality of diesel in the country. 
 
 Dedini has already outfitted four biodiesel plants in Brazil-100,000 metric-ton-per-year plants (30 MMgy) for beef producer Bertin, soybean crusher Granol and oilseed crusher Caramuru; and Dedini's 50,000 metric-ton-per-year (15 MMgy) joint venture with Joao Nicolau Petorni, the owner of the Barralcool sugar and ethanol mill. Dedini is also under contract to supply three biodiesel plants for a total output capacity of 121 MMgy to Brazilian agricultural conglomerate Agrenco and another 60 MMgy plant for Brazilian biofuels startup Bionasa. 
 
 In the case of the Ecodiesel plant in Colombia, Dedini teamed up with Italian biodiesel-plant equipment supplier DeSmet Ballestra, which will be responsible for the pretreatment of the vegetable oils and for equipment of the biodiesel plant. 
 
 Dedini's move into biodiesel is significant, considering that it and the Brazilian ethanol industry grew up together. Dedini was founded by Mario Dedini and Pedro Ometto. Ometto's family controls Brazil's largest sugar and ethanol producer Cosan. 
 

 Dedini, based in Piracicaba in Brazil's southeastern state of Sao Paulo, has a relationship extending to all of Brazil's 300-odd sugar and ethanol plants. Its segue into biodiesel was in part based on the synergies of integrating a biodiesel plant with an existing ethanol mill. "I think that is the biggest advantage that our biodiesel system offers," Dedini's Oliverio says.
 
 Lower Costs 
 Well before Brazil's government made biodiesel blends mandatory this year, Dedini introduced the model of an integrated ethanol-biodiesel system and launched its first integrated ethanol-biodiesel prototype at the Barralcool plant in 2006 in Brazil's main soybean-producing state of Mato Grosso. The cane bagasse-fired cogeneration plant of the sugar and ethanol mill provides all the energy for the integrated mill operations, while the biodiesel output fuels the farm machinery such as the cane harvesters. The workforce serves both plants. The efficiency of the arrangement holds promise for carbon credits, but the company has not fully explored the prospects. 
 
 The model of building a biodiesel plant onto an existing cane mill reduces required investments and costs while making maximum use of acreage around the plant. 
 
 It starts with the regular opportunity to plant oilseed crops in sugarcane fields. Cane is a grass that grows back every season after cutting. To help improve yield, producers replant 
 cane on 15 percent to 30 percent of the land around a mill every three to five years. The rest of the land is available between sugar harvests for a single rotation of soybeans, peanuts or sunflowers. 
 
 In the case of the Colombia biodiesel plant, the facility is a standalone operation, but the international expansion accentuates Dedini's growing skill at both biofuels. 
 
 Tailspin 
 Brazil launched its biodiesel program 30 years after implementing its Pro-Ethanol Program in the 1970s to reduce its dependence on foreign oil. At the time, Latin America's agricultural giant was one of the world's largest petroleum importers, bringing in nearly 90 percent of its domestic needs from abroad. The oil crisis at the time sent the economy into a tailspin and the military dictatorship, in addition to stepping up domestic oil exploration and production, bet that sugarcane producers could make their own automobile fuel in Brazil if the government would guarantee them a captive market. 
 

 Going the way of ethanol worked for Brazil. The nation of 192 million people has one of the most advanced biofuels programs in the world with more than 30,000 filling stations offering pure hydrous ethanol as well as gasoline with a mandatory blend of E20 to E25. 
 
 Brazil now is encouraging biodiesel as well. The government made mandatory a 2 percent biodiesel blend in all commercially sold diesels on Jan. 1. In March, it decided to accelerate the program with plans to have B5 in place by 2013-though recent discussions have raised the possibility of a B5 blend as early as 2010. In any case, on July 1, Brazil will raise its mandatory blend to B3. The decision was made in order to soak up some of the slack capacity in the biodiesel industry, which officials believe inhibited investment that would get Brazil closer to B5. 
 
 In the first half of 2008, Brazil's National Petroleum Agency (ANP) reports purchasing 480 million liters (127 million gallons) of biodiesel to supply the market at B2 for the first half of 2008. With the B3 mandate, demand for biodiesel should jump by 50 percent in the second half of 2008. The government's political commitment to developing Brazil's biodiesel market bodes well for Dedini as an equipment supplier in the sector. 
 
 80-Percent Penetration 
 Ethanol remains Dedini's bread-and-butter business. Among Brazil's cane-sugar and ethanol mills, existing and under construction, Dedini mills account for 80 percent of the national production of ethanol-roughly 25 percent of global ethanol production. The company is supplying sugar and ethanol plants to other countries in Latin America such as Jamaica and Venezuela as well as to Africa. Yet the company's penetration into Brazil's biodiesel output capacity now is the same as its ethanol involvement, around 80 percent of national production. 
 
 Where ethanol flourishes, biodiesel can follow suit, particularly where plants are located together. The reason is the sugarcane biomass, known as bagasse, left behind by the harvest. 
 
 Brazil's cane industry has been driven since its inception during the colonial period by world demand for sugar, but the impetus behind Brazilian cane expansion has changed just in the past few years, says Plinio Nastari, president of Datagro. The firm, based in Alphaville near the city of Sao Paulo, analyzes sugar and ethanol. "Ethanol will now be the force behind Brazil's cane crop expansion, in large part due to the success of the flex-fuel motor," Nastari says. 
 
 Traditionally, Brazil has diverted about half of the sucrose that it crushes from its cane crop to sugar production and the other half to ethanol, but over the next decade or so this will shift toward about 60 percent going to ethanol. Nearly all of Brazil's sugar and ethanol mills, and now its biodiesel plants as well, use leftover cane, or bagasse, to fire cogeneration of thermal electric power plants that provide heat for refining and distillation and electric energy for operations. 
 
 The rapid expansion in cane has sent bagasse prices through the floor. Mills are accumulating large stockpiles of the biomass-which Dedini next wants to tap as a feedstock for cellulosic ethanol production. 

 
 Rapid Hydrolysis 
 Dedini has been working on a rapid hydrolysis cellulosic technique over the past decade in which it has invested more than 12 million reals (R$12 million or U.S. $7 million) in partnership with Brazil's massive sugar and ethanol cooperative Copersucar. The company secured a $R50 million (U.S. $29 million) grant in 2007 from the Foundation for the Expansion of Scientific Research in Sao Paulo (Fapesp) to develop cellulosic technologies. 
 
 Dedini will match that sum with its own investments to develop new cellulosic techniques in hydrolysis. "The rise of world interest in biofuels has intensified the search for technological advances based on scientific research," says Carlos Henrique de Brito Cruz, Fapesp's scientific director. 
 
 Dedini has constructed a prototype cellulosic ethanol plant called the DHR project-Dedini Rapid Hydrolysis-in its Sao Luiz mill, in Pirassununga in Sao Paulo state. The Center for Cane Technology in Piracicaba, Brazil, a research spin-off of Copersucar, was also instrumental in early hydrolysis testing before the installation of the DHR at the Sao Luiz plant. 
 
 The experimental plant has a 5,000-liter (1,320-gallon) daily capacity. "Ethanol production from this technique will be able to compete with gasoline as long as oil is above $40 a barrel," Dedini's Oliverio says.
 
 He acknowledges that the prototype plant has encountered obstacles-it needs improved filters to remove sand, for example. "We haven't been able to run the plant continuously because of the corrosiveness of the sand that gets into the system," Oliverio says. "We are shutting down weekly." Yet Oliverio doesn't think sand removal will be a difficult obstacle to overcome. 
 
 Still Innovating 
 In other words, after nine decades, Dedini is still trying to innovate. Aside from the idea of placing biodiesel and ethanol plants together, it's working on ethanol innovation as well. The DHR plant's core process uses a diluted acid wash to break down the lignin that holds the C5 and C6 sugar molecules in the bagasse. So far, there is only a fermentation method for the C6 sugar. The C5 molecule would add about 25 percent more sugar and ethanol production to the hydrolysis system. 
 

 According to tests of the prototype plant, conventional ethanol production at a mill could double from 6,000 liters per hectare (641 gallons per acre) of cane by simply using the bagasse to make cellulosic ethanol in addition to the ethanol made from the sucrose that comes from crushing the cane stalk. 
 
 Questions remain regarding allocation of biomass. Most of the bagasse created in sugar and ethanol production now goes to thermoelectric cogeneration in ethanol and biodiesel plants. And a third of the biomass from the cane plant is also left in the field. 
 
 Dedini's choice of a mild acid wash to break up lignin bucks a trend. Most scientists and researchers believe that the future of cellulosic ethanol production will be enzymes, but cheap mass production of required enzymes is difficult. Brazil will likely need hundreds of millions of tons of enzymes to break up the lignin in its annual 500 million-ton cane crop. 
 
 "This type of acid method typically inhibits fermentation of the sugars in the bagasse, so mills will have to figure out how to overcome this," says researcher Carlos Rossel of the Unicamp university. 
 
 For the time being, Dedini's blend-a dilute acid that doesn't impair fermentation-is as promising as enzymes to become commercially viable in cellulosic ethanol production.
 In short, Dedini-a historic presence in Brazilian biofuels-is still very much in the game. 
 
 Elizabeth Ewing is a journalist covering biofuels from Sao Paulo, Brazil.

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Co-locating biodiesel and ethanol plants provides economies for both and helps a global ethanol leader meet biodiesel mandates.

Dedini's Blend: Ethanol Moves in With Biodiesel

The global increase in biodiesel production has led to a marked increase in world glycerin production. Glycerin is produced as an approximately 11 percent byproduct in the transesterification of triglycerides, which are the predominant feedstock material for producing biodiesel. Glycerin remains one of the most versatile and valuable known chemicals and has a wide variety of uses and applications. The added production of glycerin by the biodiesel industry has created a supply that has encouraged the development of new industrial applications for this material. For example, recent reports tout glycerin's ability to be used as a raw material building block for the production of high-volume industrial chemicals such as propylene glycol, epichlorohydrin, acrylic acid and polyhydroxybutyrate.
 
 Purification is required to transform crude glycerin to a usable state for existing or emerging uses. The purity requirements for the emerging applications of glycerin vary, and are often intermediate to the crude and refined grades previously established for the classical applications. The salt content in crude glycerin, stemming from the use of homogeneous alkaline catalysts, often ranges from 5 percent to 7 percent, which makes conventional techniques cost intensive. This suggests that for future glycerin markets a new low-cost purification strategy may be more cost-effective than conventional routes.
 
 The glycerin produced in the transesterification of triglycerides reaction is a crude grade. Almost all biodiesel production today involves homogeneous alkaline catalysts such as sodium methylate. The transesterification of triglycerides with methanol generates a methyl-ester phase and a glycerin phase. Impurities such as catalyst, soap, methanol and water are preferentially concentrated in the glycerin phase. The glycerin phase is typically neutralized with acid and the cationic component of the catalyst is incorporated as a salt. 

 
 For example, sodium chloride is formed in the neutralization with hydrochloric acid of glycerin containing sodium methylate. Catalyst usage rates vary across the industry, but it is common to find crude glycerin issued from biodiesel production with a salt content of 5 percent to 7 percent. It should be noted that heterogeneous processes using enzyme and solid metal-oxide catalysts are promoted as alternatives to homogeneous alkaline catalysts. The Esterfip-H process marketed by Axens is an example of a heterogeneous transesterification process. Nevertheless, even in heterogeneous transesterification processes, impurities in the natural feedstock materials tend to accumulate in the glycerin phase and therefore, purification may still be required.
 
 Conventional Techniques for Purifying Glycerin
 Distillation is the most commonly practiced method for purifying glycerin. The advantages of the distillation process are well known. Namely, it is an established technology that produces high-purity glycerin in high yield. However, the distillation of glycerin is an energy-intensive process. Glycerin has a high heat capacity, which demands a high-energy input for vaporization.
 
 Classical ion-exchange techniques have long been applied to glycerin purification. However, the high salt content of glycerin issued from biodiesel production makes classical ion-exchange uneconomical for this application. Specifically, the chemical regeneration cost for the resins becomes exceedingly high when salt contents approach the 5 percent- to 7 percent-range commonly found in the biodiesel industry. 
 
 <center><img src="/images/upload/20080514043859.jpg" alt="" /></center>
 The process block diagram illustrates the process steps for the purification of crude glycerin from biodiesel.
 SOURCE: ROHM AND HAAS
 
 A New Approach
 In order to provide a more cost-effective and flexible process for purifying crude glycerin issued from biodiesel production, Rohm and Haas, a provider of functional polymers, ion-exchange and catalyst technologies, has teamed up with Novasep Process, a provider of purification solutions including chromatography, ion-exchange, membranes, crystallization and evaporation. Together, the companies have developed a patent-pending technology for glycerin purification that is specifically designed with the biodiesel producer in mind.

 
 The Ambersep BD50 glycerin purification process can be scaled to any required production volume, although it is recommended that the minimum nameplate capacity be 5,000 metric tons of pure glycerin per year. The process options, as described below, ensure that the purification system is tuned to meet the quality specifications. The system maximizes the recycling of all process water, minimizes energy consumption, and treats all of the process raffinate streams. Raffinate is the portion of an original liquid that remains after other components have been dissolved by a solvent.
 
 The Ambersep BD50 process is commercialized as a complete technology package, including process technology, engineering, media and equipment, tailored service options, and technical support from industry experts.
 
 
 Process Steps
 The process block diagram on the previous page illustrates the different process steps for the purification of crude glycerin from biodiesel by the Ambersep BD50 process. 
 
 Crude glycerin from storage is first heated to 194 degrees Fahrenheit on a plate heat exchanger, using energy recovered from the purified glycerin stream, plus live steam. After a safety filtration to protect the downstream processing steps from fouling by suspended materials, the hot and clean crude glycerin is carefully degassed before entering a chromatographic separator.
 
 The chromatographic separator combines the sequential simulated moving bed technology with Ambersep BD50, a high-performance chromatographic separation resin from Rohm and Haas, to purify crude glycerin with a high salt composition.
 
 Such a system has a high productivity and consumes small quantities of water for the separation of the salt fraction from glycerin. 
 
 Due to the systematic recycling of the condensates produced during the reconcentration of the purified glycerin fraction, no source of fresh water is necessary for the operation of the chromatographic separator during normal operations. 

 
 The Ambersep BD50 glycerin purification system includes the option to concentrate and crystallize the salt fraction coming out of the separator. The raffinate stream contains the salts, other organic impurities (color and free fatty acids), and the minor fraction of glycerin not separated by the sequential simulated moving bed chromatography unit. The raffinate is processed in an evaporator/crystallizer unit, affording the recovery of the salts in a crystalline form and a "secondary glycerin" having a similar composition to the crude glycerin input. This solution avoids the production of effluents in the glycerin purification plant. 
 
 Depending on the required purity of the final glycerin, it is possible to produce a purified glycerin product with 99.5 percent purity or to add a polishing step employing an ion-exchange demineralization unit which enables the end user to produce a high quality glycerin product with 5 parts per million to 10 parts per million salt content. 
 
 The degree of polishing of the refined glycerin can be adjusted depending on the final application. One of the features of this process compared to the conventional distillation route is its low energy requirement. The Ambersep BD50 system does not require the vaporization of glycerin. Water is used for the chromatographic separation and therefore the energy consumption is essentially limited to the removal of water from the purified glycerin after purification. 
 
 Xavier Lancrenon is the commercial director for Novasep Process. Reach him at +1 33 6 0851 15976. Jon Fedders is with business development for Rohm and Haas. Reach him at (215) 592-2503. For more information, visit http://www.amberlyst.com/glycerol.htm

An Innovation in Glycerin Purification

The capability to quantify trace contaminants in biodiesel is crucial for optimizing the biodiesel production process and ensuring final product quality. The base-catalyzed transesterification reaction of an oil or fat is the most commonly used process for making biodiesel. The oil (triglyceride) is reacted with excess alcohol in the presence of a catalyst (potassium hydroxide or sodium hydroxide) to produce biodiesel and glycerin. The transesterification reaction is efficient with yields approaching 100 percent. If the reaction worked perfectly, only biodiesel and glycerin would be present after the reaction. Any trace contaminants such as glycerin, glycerides, water, methanol or free fatty acids in the biodiesel indicates that some step in the process, including the reaction, is not optimized. 
 
 Contaminants that are of most importance for biodiesel final product quality are free and total glycerin, water and methanol since final biodiesel product must meet ASTM D 6751-07 specifications. The purpose of this article is to demonstrate that Fourier transform near-infrared technology can quickly and accurately quantify the concentration of contaminants in biodiesel.
 
 Quantifying impurities in the biodiesel production process, either in-line or online, can help optimize the yield and purity of the fuel. There are multiple points in the process where near-infrared technology works well for predicting complex matrices in-line or online, an advantage over traditional lab methods. Often a single, centrally located instrument using fiber optic cables and probes can be used to analyze multiple key process points. This eliminates the need for the operator to take samples to a common laboratory for analysis. 
 
 Since the results are produced in real-time, the plant personnel can quickly make adjustments to the process, and often closed-loop control strategies can be used to automate process adjustments. The real-time process results can also be plotted to show trends, or be entered into databases for further statistical processing. 
 
 The ability to quickly analyze samples for multiple components using Fourier transform near-infrared results in time savings over traditional lab methods. In this study, a lab-based Fourier transform near-infrared analyzer was able to generate results in 30 seconds. Alternative methods for determining free and total glycerin can take up to one hour. 

 
 There are separate ASTM test methods under ASTM D 6751-07 for quantifying contaminants present in biodiesel. They all require different equipment, reagents and supplies, which increase the cost and add to the overall complexity of the quality assurance system. Methanol presence is done by a flash point tester or a gas chromatography method. The flashpoint method does not allow for exact quantification of how much methanol is present, only that the concentration is above or below a certain threshold. The amount of water present is determined by the percentage volume of water centrifuged out of a sample. Free fatty acid levels are determined by a potentiometric titration that is not part of the ASTM test methods.
 
 The Experiment
 The starting material for preparing standards was a pure biodiesel sample from a plant that uses soybean oil to make biodiesel. This pure sample along with three other samples saturated with glycerin and/or water were used to form four stock standards. These stock solutions were combined to produce lots that varied in their amount of biodiesel, water and glycerin. These lots had differing amounts of free fatty acids, methanol, tri-, di- and monoglycerides added to them to produce the standards used in the study. The component concentration in each standard was determined by percentage weight with each component addition having a mass uncertainty of plus or minus 0.0002. A total of 68 standards were prepared in order to cover a wide range of component concentrations. The values for glycerin and water were determined using accepted industry primary analytical methods. Pure standards of free fatty acids, methanol, tri-, di- and monoglycerides were purchased for standard preparation in this study. 
 
 For each type of glyceride (tri, di and mono), multiple pure glyceride standards were used for making the method standards. The glyceride standards differed based on the fatty acid chains that were attached to them. Most naturally occurring fatty acid chain lengths are 16, 18, or 20 carbons. In this study, a fatty acid chain length of 18 carbons was used. Table 1 shows the different pure glycerides and free fatty acids used in the standards.
 
 The near-infrared spectral acquisition was performed in a laboratory using a trademarked Thermo Scientific Antaris II Fourier transform near-infrared analyzer. The spectral data was acquired in transmission using glass cuvettes and a heated cuvette holder set at 86 degrees Fahrenheit. A background was taken in between each sample scan. 
 
 The spectroscopic collection parameters were as follows:
 › Spectroscopic range: 10,000 to 4,000 cm-1
 
 › Resolution: 4 cm-1
 
 › Co-averaged scans: 32 scans

 
 › Collection time: 20 seconds
 
 The calibration model was developed using the trademarked Thermo Scientific TQ Analyst software package for quantitative analysis. All spectra were converted into their second derivative prior to calibration. A partial least squares regression model was developed for this study because it gives accurate and robust methods for multicomponent mixtures. 
 
 The partial least squares model is a good choice for this application because it calibrates for each component separately, and it can effectively handle the high number of sources of variation due to the large number of standards with varying concentrations. TQ Analyst can be set to select spectral regions automatically by using concentration and spectral information of the calibration standards.
 
 Data Analysis and Results
 The fact that many of the compounds in this study have the same functional groups makes it hard to see spectral variation among the samples in the raw spectra. For this reason, a second derivative was taken since it increases the spectral peak definition while retaining peak location from the unprocessed spectra. The derivative also removes any baseline due to scattering. Since these samples were liquids run in transmission with a constant pathlength, scattering was not an issue. 
 
 Small changes in absorbance and spectral shape can be seen in the 4,900 to 5,000 cm-1 range which is the hydroxide combination band. The shift in peak and change in absorbance at 4,950 cm-1 is due to varying amounts of methanol in the standards. There is a distinct separation between the samples with the highest and lowest concentration of methanol.
 
 The standards used to develop the calibration model had biodiesel concentration that varied from 90.1 percent to 99.9 percent. The contaminants made up the remaining weight percentage of the standard. As can be seen in Table 2, many trace contaminant concentrations in biodiesel can be predicted accurately. The root mean square error of calibration for all the components in the method was less than 0.2 percent and correlation coefficients were all greater than 0.93. The calibration plot for total glycerin, which is free glycerin plus the bound glycerin portion from the tri-, di- and monoglycerides, is the calculated (near-infrared model predicted values) versus the actual weight percentage for each standard. This plot shows good correlation from 0 percent to 1 percent. It also shows the independent validation points predict as well as the samples used for the calibration because they fall as close to the ideal prediction line (slope=1) as the calibration samples. The calibration plot for methanol shows good correlation from 0 percent to 2 percent and has independent validation points that are predicted well.
 
 Conclusions

 Fourier transform near-infrared can accurately predict concentrations of trace contaminants as well as fatty acid methyl ester in biodiesel as shown by this study. The ability to quickly quantify multiple trace contaminants allows for process adjustments to be made much more quickly than if samples were run by traditional primary analytical methods. 
 
 Transfering Fourier transform near-infrared methods from lab to line gives production facilities flexibility on instrument location and sample presentation. Transferring Fourier transform near-infrared inline allows process adjustments to be made in real-time using closed-loop control strategies. By optimizing the process, chemical and processing costs can be minimized. The capability to measure multiple sample points simultaneously with a multiplexing Fourier transform near-infrared makes inline measurement more practical and economical since one instrument might be all that is needed for a biodiesel production facility. The use of Fourier transform near-infrared simplifies the testing protocol for biodiesel process samples since one instrument can replace multiple pieces of equipment and eliminate lab supply costs. This study proves that Fourier transform near-infrared is a valuable tool for biodiesel process monitoring. 
 
 Stephanie Scherer and Warren Kosman are with Valparaiso University in Valparaiso, Ind. Chris Heil and Jeffrey Hirsch are with Thermo Fisher Scientific in Madison, Wis. For an extended version of this article, including additional charts and figures, visit <a href="http://www.BiodieselMagazine.com">http://www.BiodieselMagazine.com</a>.

Testing Shows Benefits of Near-Infrared Analysis

U.S. biodiesel companies already know how to protect trade secrets shared with business partners and customers on biodiesel projects in the United States. With the highly competitive nature of the industry, companies need to protect proprietary information.
 
 Confidentiality agreements are signed with business partners and customers so they cannot disclose proprietary information to third parties. The information can only be used in connection with the biodiesel project. Non-competition agreements are signed with business partners and customers so they cannot use proprietary information in competing biodiesel projects in the United States. Some companies perhaps even sign license agreements with business partners and customers, allowing them to use proprietary information only in a prescribed manner.
 
 Finally, companies sometimes file applications with the U.S. Patent and Trademark Office to obtain intellectual property protection-whether in the form of patents or copyrights-for proprietary information, so that third parties cannot use or copy proprietary information without consent. Even though these measures to protect trade secrets can be taken in the United States, such measures may not adequately protect trade secrets on overseas biodiesel projects.
 
 Protection Across the Pond
 Confidentiality agreements that would be enforceable in the United States may be invalid in foreign countries. The courts in many foreign jurisdictions will determine for themselves whether to enforce the provisions of a confidentiality agreement against corporations or individuals in their country. The courts will review the contents of the agreement to determine whether the obligations placed on their corporations or individuals are fair and reasonable. They will look behind the subject matter of the confidentiality agreement to determine whether duress or coercion played a role in the corporation's or individual's decision to sign the confidentiality agreement.
 

 Courts in many foreign countries take the same approach to the enforcement of non-competition agreements, but are less likely to find them enforceable; especially if the foreign corporations or individuals are restricted from competing against the U.S. biodiesel company after the biodiesel project has been completed. Non-competition agreements are sometimes held invalid by courts in foreign jurisdictions on the grounds that they are void for public policy reasons. In other words, they are held to be unenforceable because they would restrict a foreign business partner or customer from earning a living in the biodiesel industry.
 
 The enforcement of license agreements in foreign countries presents its own set of problems. Although license agreements are often found to be enforceable by foreign courts, thereby allowing one to restrict a business partner or customer to use the proprietary information only for the biodiesel project at hand, any royalties or other payments that the business partner or customer may be required to pay for the use of the proprietary information may be subject to corporate income tax in the foreign jurisdiction. Many foreign countries impose a tax on payments related to the transfer or licensing of technology from abroad. Licensing proprietary information to a foreign business partner or customer for use in connection with the overseas biodiesel project will usually fit into this category.
 
 While confidentiality, non-competition and license agreements provide different types of protection for trade secrets, they may not adequately protect biodiesel technology overseas due to the previously mentioned obstacles to enforcement. If concerned about these obstacles, consider filing patent applications abroad.
 
 International Patent Applications
 Patent applications can be filed directly in individual countries and/or with an international patent application (commonly referred to as a PCT application), which allows companies to later file the same patent application in participating countries of choice. More than 130 member countries participate in the international patent process through various conventions and treaties. They participate individually or as part of regional groups, such as Africa, Europe and Eurasia. While a PCT application does not itself become a patent, it does preserve a company's future right to file a patent application in any country that is a party to these conventions and treaties.
 
 Under some circumstances, companies may have up to 32 months before having to make a final decision as to where to file the foreign patent application. This period starts from whichever is earlier: the date of the U.S. application or the date of the first sovereign application. If a U.S. patent application under a convention or treaty is filed first, the company has one year from that filing date to file a foreign patent application.
 
 PCT applications are an important cost management and strategic tool since they allow companies to monitor and evaluate markets, and make informed decisions about where to file. In the PCT application process, the company receives a preliminary assessment of, or determination on, the patentability of its biodiesel technology. This gives a sense whether there will be significant technical challenges to obtaining a patent or whether the path will be relatively smooth to patenting at least some aspect of the technology. This can be important information in deciding whether to incur the significant costs of filing patent applications directly in foreign countries.
 
 If thinking about filing patent applications internationally, also consider what aspects of the biodiesel technology or trade secrets might merit the financial investment of patent protection. If technology can readily be reverse engineered, it probably does not amount to much of a secret, and it therefore makes sense to seek patent protection. On the other hand, if the company believes that its confidentiality, non-competition and license agreements are sound and relationships with foreign business partners and customers are strong, it will want to weigh those factors against how easily competitors can reverse-engineer or design around the biodiesel technology overseas.
 
 If only a U.S. patent application is filed, some competitors may be able to use the technology disclosed in the U.S. application to compete in foreign countries. This may be reason enough to file a PCT application or to file directly in a country where a company most wants to protect market share and competitive advantage. Keep in mind that, while not enforceable abroad, a U.S. patent may be enforceable in the United States against a U.S. company that participates overseas in the manufacture or sale of products covered by another company's U.S. patent.

 
 Using the Primary Tools
 When relying on confidentiality, non-competition and license agreements as the primary tools to protect biodiesel technology, note that in the course of implementing an engineering solution as part of a biodiesel project, you may be developing not only marketable technology but also patentable technology. While there are potentially significant costs involved in filing patent applications, they can be managed by being strategic about where they are filed and focusing foreign patent applications on select aspects of the biodiesel technology. It is important to consider filing in countries where the company has significant or multiple biodiesel projects, where competitors have significant or multiple biodiesel projects, or countries that represent a new target market for business.
 
 License agreements with foreign business partners and customers will have a different level of enforceability if the biodiesel technology behind them is protected by patents in the countries where the projects are located.
 
 Protecting proprietary information overseas can be tricky business. Understanding the enforceability of contracts with foreign business partners and customers and obtaining patent protection in the jurisdictions in which biodiesel projects are located will help assess whether-and how much-proprietary information should be shared on overseas biodiesel projects. 
 
 Adonis Neblett is a patent attorney and advisor in the intellectual property department of Fredrikson & Byron P.A. Reach him at <a href="mailto:aneblett@fredlaw.com">aneblett@fredlaw.com</a> or (612) 492-7049. Richard Weiner is an international biodiesel lawyer in the energy law department of Fredrikson & Byron P.A. Reach him at <a href="mailto:rweiner@fredlaw.com">rweiner@fredlaw.com</a> or (612) 492-7009.

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Protecting Biodiesel Trade Secrets Overseas

The nation is awakening to the renewable fuels movement. While fuels such as biodiesel and ethanol have been around for more than 15 years, the real growth has been in the past five years as crude oil prices have increased and the public clamors for alternatives to foreign petroleum. However, it's important to step back and fully evaluate the rush to biofuels. While it's clear biodiesel is here to stay, any new fuel must be technologically feasible.

 
 By definition, biodiesel is a 100 percent fatty acid methyl ester fuel. The most commonly used blends range from B2 to B20, which means anywhere from 2 percent to 20 percent biodiesel is blended in petroleum diesel. One of biodiesel's positive features is that it's biodegradable. However, in a poor environment, this can also be one of biodiesel's negative features. In this case, the enemy is Mother Nature in her simplest form of life: microorganisms that feed on straight chain fatty acids. These microorganisms have a chemical protocol that starts by trying to feed on straight-chain hydrocarbons that they have modified from the petroleum hydrocarbon to a fatty acid. If these molecules are not available, they proceed to the next molecule to try and convert it into a fatty acid. This selection process continues until the microorganisms have succeeded.
 
 Biodiesel and its blends can provide an easier pathway for the microorganism as the fatty acid methyl ester molecule is in the final stage prior to breaking down the fuel for energy. The introduction of water into biodiesel can create an environment for a biological attack on the fuel itself.
 
 Battling Biological Deterioration
 In simple terms, biodiesel and blend components are more susceptible to biological attack than regular diesel fuel. As a result, removing water from a fuel system becomes increasingly important, a surveillance program becomes paramount and long-term storage becomes difficult. Removing the water can be an arduous task. In the worst-case scenario, it's impossible to remove entirely. This is why a surveillance program that includes quarterly or at the least semi-annually testing the fuel is highly recommended. Real-time testing of a fuel system is most effective and convenient for users. Obtaining results in 30 minutes or less, as touted by some newer technologies, allows treatment to begin immediately if necessary.
 
 The good news is that not all is gloom and doom. A variety of low-cost field biological tests can be performed to determine if a fuel system is being degraded, and a variety of biocides can be used to combat the problem. However, water removal is another issue. Biodiesel can retain up to 20 times more water than regular diesel (1,200 parts per million compared to 60 ppm). Biological activity requires water, so water removal is the first line of defense against biological attack. One side effect of microbiological contamination is severe corrosion to the metal components of a fuel system. This is referred to as microbial influenced corrosion. Another is filter plugging, which is usually the first sign that most people see when the product is under microbial attack. 
 
 Biodiesel quality control is also critical. A National Renewable Energy Laboratory survey released at the February 2008 National Biodiesel Conference featured surveys collected from biodiesel producers between April and October 2007. In-spec samples represented 90 percent of the biodiesel produced that year, according to the results. The findings were a significant improvement from a similar study NREL conducted in 2006.
 
 The industry has made tremendous efforts to gain greater quality control over biodiesel production by instituting programs such as BQ-9000. This voluntary quality assurance program assures that product produced under BQ-9000 accreditation is produced using ASTM-certified methods. Other steps have been taken by individual states to require certificates of analysis on product. The industry will likely see more required regulated quality assurance certifications in the future. The marketplace will demand them.
 
 The upside to increased quality scrutiny is that as biodiesel blends become more available to the consumer-in some cases by mandate-users will become more confident that issues that initially plagued the industry will begin to fade. However, this doesn't mean all technical issues have been solved. The industry continues to face ongoing challenges, such as exposure to cold weather issues, out-of-spec fuel and the previously unrecognized phenomena that impacts new fuels. All can be resolved in time, but increased surveillance is necessary if the industry is to continue prospering. The public is fickle and doesn't like problems.
 

 Overcoming MaterialCompatibility
 Material compatibility is another issue that must be addressed when dealing with a diverse fuel infrastructure. Fuel systems handling biodiesel must be examined carefully so that material used is compatible with the fuel when it comes in contact with any wetted surface. In general, B2 to B20 blends have no real issues with seals and gaskets (see page 118), but several metals, such as yellow metals, can provide some issues. Higher concentrations of biodiesel may begin to see problems more rapidly with zinc, tin and some seals and gaskets. Regular diesel fuel also has issues with copper and zinc, and wetted surface contact should be avoided. The appendix to ASTM D 975 contains specific comments on this topic.
 
 Heating oil systems are especially at risk without proper preparation. Almost all home heating oil systems contain copper. In fact, it is required by fire codes. However, copper is a known oxidation catalyst to fuel and heating oil, especially if the fuel is stored for six months out of the year. Additives are available to counter this problem, but they are not mandated. As biodiesel becomes more popular in home heating oil, it will become necessary for homeowners or their suppliers to be conscious of issues that may affect home heating operability.
 
 In conclusion, buyer and supplier must be aware of fuel degradation and material compatibility with all fuels, including biodiesel. The biodiesel industry has quickly learned that and is working on solutions to ensure the continuity of the industry's growth. 
 
 Howard Chesneau is the president of Fuel Quality Services Inc. in Flowery Branch, Ga. Reach him at (800) 827-9790. For more information, visit <a href="http://www.fqsinc.com">www.fqsinc.com</a>.

An example of a tank, after cleaning, which suffers from severe microbial influenced corrosion

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Plugged fuel filters can result from microbial attack of fuel.

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Overcoming Microbiological Contamination, Material Compatibility

Having been called the "fastest-growing alternative fuel" in the United States by the U.S. DOE, there's no question that biodiesel will continue to play an increasingly significant role in the nation's future motor-fuel supply. In fact, in 2006 the Congressional Budget Office and the USDA confirmed that biodiesel is the lowest-cost alternative fuel option for meeting the Energy Policy Act of 2005's alternative fuel use requirements. Additionally, late last year President George W. Bush signed the Energy Independence and Security Act of 2007, which further expanded the renewable fuels standard and set a mandate of 1 billion gallons of biodiesel use by 2012. Because of its utilization of renewable feedstocks, energy efficiency, compatibility with the existing fuel-distribution infrastructure and ability to reduce greenhouse-gas emissions, biodiesel is the one alternative fuel that truly has the capability to make a difference in the nation's diesel-fuel use patterns today.
 
 B100, sometimes called neat biodiesel, is most often blended with regular diesel fuel at an 80-percent diesel, 20-percent biodiesel ratio to form B20. The B20 blend, if formulated to conform to ASTM D 975, can generally be used interchangeably with diesel fuel for normal usage as long as the biodiesel meets the requirements of ASTM D 6751 and the cold-flow properties of the blend are adequate for the geography and time of year the fuel will be used. It can also be handled with most current technologies that handle petroleum diesel. In fact, in its B20 configuration, biodiesel has been shown to have very little, if any, adverse effects on compression-ignition engines, fuel-oil and heating-oil boilers, and turbines, or the pumps, hoses, seals, gaskets, swivels, loading arms, valves, fittings and other equipment used in its handling, transportation and storage. Users should be aware that the B20 may degrade faster than petroleum diesel if oxidizing metals such as copper, bronze, brass or zinc are present.
 
 The introduction of any new fuel to existing storage and infrastructure requires due diligence of compatibility. 
 

 Limiting Causes of Concern
 While federal mandates appear to guarantee a boost in the use of alternative fuels now and into the near future, in order to ensure their safe implementation into the motor-fuel pool, the companies that manufacture the equipment used for the processing, handling, transporting and storing of these up-and-coming fuels must first be confident in that equipment's ability to handle any new formulations. Material compatibility, operational reliability, maintenance requirements and energy savings are among the critical areas of concern for any manufacturer when designing and engineering new equipment.
 
 As with any new fuel or chemical formulation, care has to be taken that material compatibility is ensured. With that in mind, studies have shown that although B20 is well suited for use with existing diesel technology, B100 and other higher biodiesel blends require special handling with equipment that has been engineered to be compatible with the fuel. 
 
 Specifically, B100 will degrade, soften or seep through some hoses, gaskets, seals, elastomers, glues and plastics with prolonged use. Compounds especially susceptible to degradation include nitrile rubber, polypropylene and polyvinyl materials. Nonmetallic materials that have been shown to be compatible with B100 include polytetrafluoroethene, some flouroelastomer formulations, various fluorinated plastics and nylon. Metals that are compatible with B100 include ductile iron, stainless steel, carbon steel and aluminum, while brass, bronze, copper, lead, tin and zinc are incompatible.
 
 Material compatibility concerns aside, when it comes to the type of pump that is best able to handle biodiesel through its production, transportation and storage phases, pumps that feature sliding vane technology have proven to be efficient, reliable and environmentally safe options, while also providing energy-saving operation and low maintenance costs. 
 
 Invented more than 100 years ago, sliding vane technology is featured in positive displacement pumps that are ideal for handling thin liquids. By constantly improving and upgrading its performance, today's sliding vane technology is able to meet the demands of reliability, product-loss prevention, environmental protection and process efficiency in biodiesel production.
 
 Overview of Sliding Vane Technology 
 Sliding vane technology offers high efficiency and low maintenance advantages over traditional gear and centrifugal pumps. These are important factors in today's era of rising energy costs, lean personnel staffs and high demand for increased profitability. But these reasons are only part of a much bigger picture. For even greater flexibility, efficiency and productivity, advanced vane pump designs include motor speed technology, "designed in" features such as a hydrodynamic journal bearing and one mechanical seal. These features serve to further improve the fundamental pumping process in the manufacture of biodiesel.
 
 The secret behind a sliding vane pump's enviable operational characteristics is the vanes that slide in and out of slots in the pump rotor. The pump's rotation draws liquid in behind each vane, through the inlet port and into the pumping chamber. As the rotor turns, the liquid is transferred between the vanes to the outlet where it is discharged. Each vane provides a positive mechanical and hydraulic displacement of the liquid. Vanes are actuated by three forces: 1) centrifugal force from the rotor's rotation, 2) push rods moving between opposing pairs of vanes, and 3) liquid pressure entering through grooves and acting on the rear of the vanes. Each revolution of a sliding vane pump displaces a constant volume of fluid. Variances in pressure have a negligible effect. Energy-wasting turbulence and slippage in the pump are minimized and high volumetric efficiency is maintained. The sliding vane technology also results in superior priming and suction capabilities, making the pumps suited for line-stripping, the evacuation of heels and pumping from underground or top unloaded storage tanks. Sliding vane pumps for biodiesel applications are available with capacities from 1 gallon per minute to 2,300 gallons per minute.

 
 Recent advancements in sliding vane technology have increased the pumps' operation efficiency and longevity. Sliding vane pumps with hydrodynamic journal bearings eliminate shaft-to-bearing contact, meaning that there is virtually no contact or wear, resulting in superior bearing life and pump efficiency. Advanced sliding vane pumps can also include cavitation/noise-suppression liners that control the wear effects of cavitation and reduce noise levels up to 15 decibels. Compactly designed, motor-speed sliding vane pumps have been created for reliable continuous-duty operation. If need be, sliding vane pumps can be serviced with the piping attached, allowing for quick and easy maintenance. If the vanes become damaged, replacement is accomplished by removing the outboard head assembly, sliding out the old vanes, inserting new ones and reinstalling the head.
 
 Taking note of the cautions that are required for the handling of B100, upgraded elastomer seals in many lines of sliding vane pumps allow for compatibility with all biodiesel blends. Flouroelastomer formulations have been upgraded to high-grade compounds that allow for much broader compatibility with a wider range of fuels. These elastomers are Underwriters Laboratories-listed and approved for all ethanol and biodiesel blends, including B100.
 
 Conclusion
 In the past, because of the continent's ready acceptance of diesel fuel and its corresponding technology, Europe represented nearly 90 percent of global biodiesel consumption. Of late, however, there has been a ramping up of biodiesel production in the United States. In fact, according to the National Biodiesel Board, production of the fuel reached approximately 450 million gallons in 2007, up from a scant 2 million gallons as recently as 2000. The NBB also reports that as of late 2007, 165 biodiesel manufacturing plants were on line in the United States with the capacity to produce 1.85 billion gallons of the fuel per year. In addition, another 80 plants were under construction and expected to be completed by mid-2009.
 
 Therefore, with biodiesel production and use continuing to grow in the United States, there is a profound need for materials and equipment that are capable of handling its production, transportation and storage. With a century-old history of efficiently and safely handling thin liquids, sliding vane technology can handle the pumping requirements of a biodiesel plant, tank truck and railcar fleet, or storage facility. 
 
 Tom Stone is the director of marketing for Grand Rapids, Mich.-based Blackmer. Reach him at <a href="mailto:stone@blackmer.com">stone@blackmer.com</a> or (616) 248-9252.

This cutaway shows the sliding vane pump's ability to draw liquid behind each vane, through an inlet port and into the pumping chamber.

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Sliding vane pumps in use at a biodiesel production facility

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A Closer Look at Sliding Vane Pump Technology

Biodiesel and other biofuels such as ethanol, in addition to being renewable energy sources that reduce dependence on imported oil, have long been considered nontoxic, biodegradable and environmentally friendly. Tell that to The New York Times. Its widely publicized 2008 article, alarmingly titled "Pollution is called a byproduct of 'clean' fuel," described an Alabama biodiesel plant that allegedly released a "ribbon of oil and grease" that "resembled Italian salad dressing" into local waterways. The article asserted that such discharges "can be hazardous to birds and fish" and contains quotes making charges such as "a vegetable oil spill is just as deadly as a crude oil spill."
 

 Before dismissing this as reporting from a source that neither understands nor cares about the biofuels industry, consider a 2007 newspaper story from ethanol country. "Biofuel plants generate new air, water, soil problems for Iowa," declared the Des Moines Register & Tribune, in a piece that began: "Iowa's ramped-up ethanol and biodiesel fuel production led to 394 instances over the past six years in which the plants fouled the air, water or land or violated regulations meant to protect the health of Iowans and their environment." That 70 percent of these "instances" related to excess iron in groundwater discharges was buried deep in the text.
 
 Of course, contrary to what's often said by news media and environmental groups, regulated environmental indicators are getting better and compliance levels are improving. 
 
 However, there is huge political and media pressure to keep enforcement penalties high (they're now up to $32,500 per violation per day) and growing. Anything less than perfection is used as proof that polluters are being "coddled." The result is an enforcement squeeze in which smaller and smaller compliance items become a bigger and bigger risk-in terms of enforcement, civil and criminal penalties, and negative public relations-for any business covered by environmental regulations.
 
 With its rapid growth and rising profile, the biofuels industry will squarely confront this enforcement squeeze. According to the Renewable Fuels Association, more than 130 ethanol biorefineries are in operation in 26 states, and the plants under construction will almost double industry output by 2010. The biodiesel industry has likewise expanded. Approximately 150 plants produced an estimated 500 million gallons of biodiesel in 2007.
 
 Under this kind of expansion pressure, it's tempting to neglect environmental permitting and compliance requirements as burdensome paperwork. But the enforcement squeeze doesn't just require the right piece of paper-it's about fines, penalties and jail time for lack of compliance.
 
 Regulatory Burden
 While much of the industry's focus on environmental regulation understandably has been drawn toward fuel standards concerns, it is essential that biodiesel manufacturing, terminal and transportation companies not lose sight of the complex and burdensome environmental regulatory compliance requirements that apply to their facilities, much as they do to other fuel refiners and handlers. Federal, state and, in some circumstances, local laws and regulations provide for, among other things: 
 
 › Complex and costly permitting and controls on the emission of pollutants to the air and releases of pollutants through wastewater and stormwater discharges 
 

 › Control over the generation, classification, handling and disposal of wastes 
 
 › Management practices, planning and reporting relating to many types of hazardous materials 
 
 › A laundry list of permitting, registration, control, testing, monitoring, inspection, planning, prevention, training, reporting and recordkeeping requirements relating to all of the above. 
 
 A summary of what producers face was provided by the U.S. EPA Region 7 in its November 2007 publication, "Environmental Laws Applicable to Construction and Operation of Ethanol Plants." Even a few examples from the EPA's 100-plus page manual show the compliance risks biodiesel and ethanol producers face if they are ignorant of these laws.
 
 National Environmental Policy Act If federal money is involved to construct a biofuels plant, it may be subject to NEPA and its detailed process for assessing the environmental impact of activities that significantly affect the environment. The NEPA assessment must include all potential environmental and human health impacts involving wetlands, water quality, hazardous waste and air quality.
 
 Clean Water Act If there is a potential for placing dredge or fill materials into surface water during plant construction or expansion, the act requires a Section 404 permit. To minimize the impact of site runoff on water quality, a stormwater permit must be obtained for discharges to waters from any construction activity that disturbs one or more acres of land. In addition, EPA's Spill Prevention, Control and Countermeasures rules require significant plan preparation, construction of containment, training, inspections and other activities relating to the storage of oils.
 
 Safe Drinking Water Act A biodiesel plant is subject to the requirements of the act if it uses an injection well to dispose of storm water, waste water or industrial fluids, or has an on-site septic disposal system. If a municipal water supply is planned for process water, check with the system operator to identify additional compliance requirements.
 Emergency Planning and Community Right To Know Act This act requires facilities with regulated chemicals above threshold quantities (including ammonia and chlorine) to notify the state emergency response commission and local emergency planning committee within 60 days after first on-site use. 
 
 Resource Conservation and Recovery Act All biofuels plants will probably generate some quantities of hazardous waste. However, the hazardous waste being generated might not be directly related to fuel production. Plant operation sources could include gasoline, spent solvents, lab packs, various paint wastes, used oil, waste lamps and batteries. Hazardous waste must be properly disposed at a permitted treatment, storage or disposal facility, with detailed waste-handling records required by the act.

 
 Compliance Strategy
 Given the complexity and consequences of these regulatory requirements, sound management of biodiesel facilities requires careful attention to compliance assurance efforts. Facility owners and operators who wish to avoid the severe liability from environmental violations should pursue a strong environmental management program, starting with the employment of highly qualified internal and external environmental, technical and legal experts to help design, administer and troubleshoot their compliance efforts. However, maintaining compliance over time requires more.
 
 First, periodic checkup audits are essential. Regular review of environmental compliance status is absolutely essential. There is no environmental compliance "finish line." Even under the best of circumstances, laws change, key people leave and regulated equipment breaks down. Without frequent, comprehensive, independent compliance assessments with the assistance of fresh, expert eyes, companies inevitably overlook certain duties and fall out of compliance. 
 
 Auditing efforts should not be undertaken lightly, though. Uncovering legal violations-obviously a prerequisite to fixing them-can nonetheless lead to significant and costly compliance obligations, evidence that might be used against you, and potentially damaging enforcement consequences. 
 
 Second, systematic management approaches provide direction. The principle of regular, consistent assessment that applies to financial compliance should also apply to environmental compliance. One of the most effective tools for assuring compliance is a formal "environmental management system," that begins with a strong statement by the board of directors or CEO supporting the need for compliance, followed by documenting and implementing a step-by-step compliance program. The key element of most environmental management systems include:
 
 › Periodic evaluation of all the ways each facility or operation interacts with the environment 
 
 › Written, measurable objectives and performance criteria (including legal compliance) for each facility or operation documented
 
 › Written plans and procedures for achieving objectives and evaluating performance, as measured against calendars to ensure timely completion
 

 › Written assignment of all environmental responsibilities to specific positions and personnel
 
 › Documented training of all employees on their responsibilities and procedures
 
 › Periodic internal and independent auditing to confirm the effectiveness of the process
 
 › Systems to track performance, and document and demonstrate correction and prevention, and 
 
 › Regular management review with updating of the environmental management system to reflect the feedback received.
 
 Even companies that do not implement a full, formal environmental management system can benefit from evaluating their current environmental management efforts against the elements of an effective program.
 
 Compliance Help, Cautions
 Software tools help efficiently manage environmental management system implementation and maintenance tasks. These can include project scheduling and management, documentation of training efforts, audit report compilation, and scheduling of corrective and preventive actions. Environmental management system software shared on an enterprise-based system gives easy online access to route environmental and environmental management system documents and records. By centralizing all environmental compliance management documents, data and activities into a single shared network, the software can be invaluable for smaller companies that may otherwise lack the time and resources to address crucial environmental concerns. A systematic approach to compliance institutionalizes continuous improvement and has a much better chance of succeeding and earning regulatory favor than informal or ad hoc approaches.
 
 Unfortunately, environmental management system approaches can raise many potential legal and liability concerns, from the legal issues associated with auditing to the establishment of written policies, procedures and statements about environmental duties that might become evidence to help establish company liability or even criminal responsibility. Consider these less-than-obvious compliance pitfalls:

 
 › Periodic environmental compliance audits, if not properly and promptly acted upon, can give regulators more evidence to take harsher actions against a company.
 
 › Thanks in part to the Sarbanes-Oxley Act, companies risk regulatory sanctions for failing to disclose the financial impact of environmental problems.
 
 › Senior managers who have responsibility for the provision of resources for environmental compliance or who become aware of environmental problems without immediately addressing them can face personal criminal liability as "responsible corporate officers."
 
 The environmental laws are constantly changing and each company's exposure to liability shifts accordingly. Companies should launch an environmental management system and auditing only after consulting legal professionals who are experienced in environmental auditing and compliance. Experienced counsel can also help identify the best strategies for correcting problems, documenting the solutions, working with the relevant agencies, and obtaining protections from federal and state programs that offer opportunities for leniency or immunity from liability.
 
 Companies participating in the biodiesel industry should take pride in their efforts to make and distribute renewable fuels and to pursue the betterment of our environment. 
 
 Environmental compliance assurance requires vigorous management effort and the assistance of qualified technical and legal experts who can help design and implement an effective environmental program. Periodic, comprehensive auditing of environmental compliance status and strong systems for environmental management are potentially costly and can be both difficult and risky to implement, but done right these measures offer the best hope for maintaining and demonstrating ongoing compliance with the complex environmental laws and regulations that govern biofuels companies. 
 
 Timothy A. Wilkins heads the environmental practice of the international law firm of Bracewell & Giuliani LLP. Reach him at <a href="mailto:timothy.wilkins@bgllp.com">timothy.wilkins@bgllp.com</a>. This information is provided for general educational purposes; it is not meant to offer, and is not a substitute for obtaining, specific legal advice. This article represents the personal comments of the author and does not constitute a legal position or opinion of Bracewell & Giuliani LLP.

Environmental Management Systems, Audits Earn Regulator Favor

Fuel quality is perhaps the single most important issue faced by any alternative fuels producer or distributor. Because fuel is transported through numerous channels before it reaches the consumer, there are many points along the distribution chain at which fuel quality may become compromised. 

 
 The current storage/distribution infrastructure for handling mineral-based petroleum products was not designed for the dynamics of alternative fuels as they are introduced, substituted and diluted into the system. As environmental and economic pressures dictate the formulation of our fuels, the fuel-handling infrastructure will be impacted, as will fuel quality. Because of the demanding requirements on today's fuel delivery systems, particularly injectors, a clean fuel supply is extremely important.
 
 Contamination Concerns
 Oxidation, repolymerization, water, microbial life, rust, waxing and gelling have all been impacting the storage and operability of fuels since the use of petroleum products began. 
 
 Cracking heavier products simply accelerated the natural triggers of oxidation and repolymerization that have always existed. The end result of these chemical changes is an infinite variety of new microscopic particulates that stick to each other and form particulates that are big enough to coat tanks, lines, filters, screens and plug nozzles. Adding organic compounds into our fuel will only accelerate these natural processes. 
 
 Water is the major cause of the contamination in both mineral and biomass-based fuel. Fuel storage tanks receive water from delivered product, condensation, damaged fill boxes, bad gaskets, loose fittings, and any other non-water/vapor-tight openings. Once the water enters a tank, it falls to the bottom because of gravity. At the bottom, the water is trapped since it is non-soluble with oil.
 
 Aerobic fungus, bacteria and yeast hydrocarbon-utilizing microorganisms begin to grow at the fuel-water interface. Sediments form on the bottom as the organisms go through life processes. As the fuel degrades, sludge, waxes and varnish form. Unfortunately, these processes occur where current fuel supply lines are located. As the layers of sludge and water build toward the fuel pick-up lines, the quality of the fuel severely diminishes. It may become unpumpable and even noncombustible. 
 
 Renewables and ULSD
 Biodiesel is manufactured from transesterified vegetable oil, animal fat or recycled cooking oil. Biodiesel is a methyl ester, and methyl esters have been used in low volatile organic compound cleaners and solvents for decades.
 

 The problem with introducing biodiesel into diesel storage tanks is that the biodiesel has the tendency of dissolving accumulated sediments into solution. It effectively starts to clean the tank of sludge. This will cause fuel filter plugging and injector scorching. Because of gravity, the contents will be suspended in the lower portion of the tank where current pick up lines are plumbed. 
 
 The layer of sludge at the bottom of a tank contains high levels of sulfur. With the required introduction of ultra low sulfur diesel (ULSD) by the U.S. EPA, sulfur content for highway diesel fuel will be reduced from 500 parts per million (ppm) to 15 ppm. The purpose of the rulemaking is to reduce emissions of nitrogen oxides and particulate matter from heavy-duty highway engines and vehicles that use diesel fuel. Sulfur in diesel fuel must be lowered to enable modern-day pollution control technology to be effective. The proposed solution to bring existing inventories within specifications is to blend ULSD into the tank during a phase-in period. In theory, it would require five tank trucks of ULSD to bring a 10,000-gallon tank within specifications. 
 
 The only problem with blending is that it depends on 100 percent dilution of both materials. In reality, this will not occur because the sludge will not dissolve into the liquid. Therefore, the sludge will have to be manually removed.
 
 Tank Cleaning Procedure
 Before alternative fuel is introduced into an existing tank, the tank should be cleaned. The best method of cleaning a tank is to drain it, enter it, squeegee the bottom, spray the walls and vacuum the contents. This may not be practical because of the expense, time and lack of access into the tank. The preferred method of cleaning a tank is filtering the fuel with low-volume suction. When employing filtration, be sure that the entire bottom is accessed. Filtering at one point in the tank will only clean the immediate area. A good analogy would be cleaning a swimming pool. If you place a suction hose on one end of the pool and there are leaves on the other end, the leaves will remain in place until the 
 suction wand is over them. 
 
 Specifications for a good tank cleaning service should include:
 › A contractor willing to provide all labor, tools, equipment and materials necessary to perform the job, including fall protection for aboveground storage tanks, primary and secondary spill containment, and emergency spill kits.
 
 › Before and after samples of fuel straight from the tank for ASTM clear and bright numerical ratings.
 
 › A field report of service and condition of the fuel and tank.

 
 › The mechanical removal of water, microbiological growth and sludge contamination from storage tanks by accessing the entire bottom of the tank.
 
 › Video inspection of the tank interior during the cleaning process.
 
 › Running fuel through a closed-loop filter circulating system utilizing 0.05-micron particulate filters, a coalescing unit and water absorption filters. 
 
 › A contractor responsible for capturing, containing, storing, transporting and disposal of all fuel/water contaminants that are generated from the performance of the job.
 
 › An EPA number and manifest for hazardous and/or non-hazardous waste removed.
 
 Unique Tank-Cleaning Techniques
 Floating suction is used by the aviation industry to provide the cleanest fuel possible for aircraft. Since contaminants in fuel stratify within the fluid (heavier materials sink to the bottom) clean fuel can be drawn from higher in the column of fluid. One type of floating suction, known as the trademarked FLOATube, is an innovative fuel delivery system that can be attached to existing fuel pick-up lines. The system possesses a floating arm capable of maintaining its position relative to the liquid as the volume changes within the tank. 
 
 Since the FLOATube rises and falls with the level of the fuel, the entire capacity of the tank is utilized, ensuring the cleanest fuel is delivered from the tank at all times. If a fuel quality problem occurs, it will be at the bottom of the tank. Since the system draws fuel from the middle of the tank and floats to the bottom with the change in inventory, the tank can remain in service as long as the inventory level remains above the contaminated level. This allows the operator time to schedule a site visit from a tank cleaning service.
 

 Cleaning a fuel storage tank is expensive and time consuming. Once a tank has been cleaned, it would be more economical to remove just the bottom contents periodically before accumulation occurs. This can be achieved by installing a sludge removal system. For example, the trademarked SludgeLine is a permanent suction line that removes contaminants and water from all areas of the tank floor through multiple points of suction. Removing 1 percent of the tank's volume annually will control accumulation. The combination of floating suction and a sludge removal system eliminates the need for tank cleaning. The systems can also be part of a larger fuel quality assurance program.
 
 Fuel Quality Assurance Program
 To protect assets and ensure that equipment runs appropriately, a preventive maintenance program should be in place for the fuel and fueling system. A good fuel quality assurance program should include the sampling of storage tanks and the inspection of all fueling components including tanks, vents, caps, dispensers, sumps, gauges, pumps, monitoring systems and foundations. A report should be made with recommendations for corrective action such as fuel treatment, water removal, tank cleaning, fuel filtration and replacement of defective parts. 
 
 Biodiesel usage is increasing. In 2004, 30 companies manufactured and marketed 110 MMgy. That capacity is expected to increase to 1 billion gallons per year in 2012. Sulfur restrictions are already in place with a complete phase-in of ULSD by 2010.
 
 With the stricter emission rules and the acceptance of biomass material into our fuel chemistry, a greater demand will be put on our storage/distribution infrastructure. Because of these changes, supply and demand, and political reasons, the cost of fuel will continue to rise. What used to be considered an expense is now an investment. In order to safeguard the investment, consideration should be given to current equipment, operations and maintenance procedures to ensure a good quality product for you and your customers. 
 
 Steven Y. Burris is the founder of Petroleum Recovery Services LLC and Fuel Delivery Services, LLC. Reach him at <a href="mailto:steve@floatube.com">steve@floatube.com</a> or (843) 225-1777.

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A sludge removal system removes contaminants and water from all areas of a tank floor.

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Technology, Maintenance Programs Ensure Quality of Fuel in Tanks

In a coordinated issue paper dated April 8, 2008, the Large and Mid-Size Business Division (LMSB) of the Internal Revenue Service considered the question of whether bioenergy program payments received from the USDA are taxable. Specifically, the LMSB focused on whether these payments are excludable from income as nonshareholder contributions to capital under Section 118(a) of the Internal Revenue Code. Some taxpayers have relied on Section 118(a) to exclude bioenergy program payments from income. Based on its analysis of the relevant case law, the LMSB concluded that these payments do not qualify as nonshareholder contributions to capital under Section 118(a), and are therefore taxable. 
 

 The question of payments qualifying as nonshareholder contributions to capital is a high-priority audit issue for the IRS. The LMSB has classified "Section 118 abuse" as a Tier I audit issue, meaning that it is an issue of high strategic importance in several industries and that the IRS intends to coordinate resolution at the national level. In the past year, the LMSB has issued three industry directives to its directors and field examiners on issues relating to nonshareholder contributions to capital under Section 118. Two of the directives instructed field examiners to challenge all arguments raised by taxpayers operating in a noncorporate form (such as partnerships and limited liability companies) taking the position that Section 118 or some other theory permits payments to be excluded from income as nonshareholder contributions to capital. According to the IRS, the Section 118 exclusion is available only to corporations.
 
 The LMSB's issue paper is intended to provide guidance to IRS field examiners. While not an official pronouncement such as a tax regulation or a ruling, an issue paper sets forth the IRS's current interpretation of a particular issue. Based on this paper and the earlier industry directives on Section 118, it appears that the IRS is prepared to challenge all bioenergy producers on the exclusion of bioenergy program payments from income.
 
 The paper seems to be an advocacy memorandum summarizing the LMSB's position that bioenergy program payments do not qualify for exclusion as nonshareholder contributions to capital under Section 118(a). It concludes, without analysis, that the USDA's intent and motivation in making payments is to "supplement the operating income of bioenergy producers for the increased purchase and use of agricultural commodities to expand bioenergy production." While part of the statement appears to be taken from the stated objective of the bioenergy program to encourage producers of bioenergy by increasing purchases of certain eligible commodities, the paper does not explain why it concludes that bioenergy program payments are made to "supplement the operating income" of bioenergy producers. Moreover, it does not address the other stated objective of the bioenergy program: to "support new production capacity" for bioenergy. Supporting new capacity suggests an intent to encourage capital investment, a motive consistent with the nonshareholder capital-contribution theory. 
 
 In concluding that bioenergy program payments are taxable, the LMSB's paper focuses on the fact that the payments do not compensate or reimburse the participant for actual capital acquisitions. Rather, because payments are intended to supplement operating income, they are similar to subsidies paid to limit production-payments that tax regulations specifically treat as taxable income, not contributions to capital. Moreover, according to the IRS, a statutory purpose to promote public welfare is not enough to qualify for contribution to capital treatment if the payment is a reimbursement for deficiencies in operating income. The IRS observes that the payments are reported on IRS Form 1099-G, which also indicates that bioenergy program payments should be treated as taxable.
 
 Based on the coordinated issue paper, it appears that the IRS is prepared to challenge all bioenergy producers on the exclusion of bioenergy program payments from income as contributions to capital. Recipients of payments who have excluded these payments from income should consult with their tax advisors about possible implications. 
 
 Mark Salsbury is a partner in Lindquist & Vennum's tax and business-planning practice group. Reach him at <a href="mailto:msalsbury@lindquist.com">msalsbury@lindquist.com</a> or (612) 371-3959.

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Bioenergy Program Payments Taxable, According to IRS Issue Paper

While biodiesel is being touted as part of the solution to U.S. energy independence and a way to slow global climate change by curbing greenhouse gas emissions, a scientific debate has arisen concerning the true sustainability of biodiesel as compared to conventional petroleum fuel in regard to climate change. Factors such as land use and net carbon emissions are being analyzed, yet important details have often been left out of recent sensationalist media reports. The media are oversimplifying complicated issues surrounding very different types of biodiesel. 
 

 Not all biodiesel is created equal, and some types are more sustainable than others. While many factors affect biodiesel's sustainability, the choice of feedstock is the most crucial. Each feedstock has its own unique ecological footprint and many factors contribute to its sustainability.
 
 The current debate is centered on the virgin feedstocks that currently dominate the biofuels industry. Biodiesel from virgin feedstocks such as soy and palm oil are being seriously reviewed for their long-term environmental impact. Biodiesel made from recycled resources, such as waste cooking oil, is extremely sustainable and far better for the planet than petroleum and even some other types of biofuels.
 
 Blue Ridge Biofuels in Asheville, N.C., is a sustainable biodiesel company committed to making the most sustainable choices available in our biodiesel production. The most important of these choices is the feedstock. Blue Ridge Biofuels was founded on the "waste fryer oil-to-biodiesel" production model. Our goal has been to produce fuel from sustainable, local sources and to buy recycled oils as long they are obtainable when we need to supplement our own supply. Blue Ridge Biofuels is unique in that it is vertically integrated in all of the aspects of biodiesel feedstock collection, production and distribution. We have long believed that having control over the other aspects of the fuel business is integral to a financially viable and sustainable business model.
 
 Feedstocks are not the only aspect to consider when looking at biofuels and sustainability. Energy inputs for processing are often fossil energy sources and thus impact a facility's sustainability index. Most biodiesel producers use methanol derived from natural gas, which is a fossil fuel source contributing to net carbon dioxide emissions and global warming. Blue Ridge Biofuels has installed a special boiler that allows us to cleanly burn our glycerin or waste oils to generate heat for our biodiesel production. 
 
 Critical examination of all these processes must occur if we are to truly produce and use fuels that are renewable, sustainable and green.
 
 Soybeans and other common feedstocks are currently available "gateway" feedstocks and will ultimately open the door for new markets, research, development, and the commercialization of smarter and more sustainable feedstocks. In the case of biodiesel, it appears that algae could be the leading contender for large-scale production and sustainability. 
 
 Early research indicates that algae could grow up to 500 times more oil feedstock annually for biodiesel production than oil derived from soybeans on a per acre basis. Algae systems can also be used to treat domestic and industrial waste water streams found in every city across the United States. 
 
 Just as energy will have to come from diverse sources in the future, so should biodiesel feedstocks, and a diverse portfolio of agricultural products for both fuel and other resources is a plausible approach. It is likely that all feedstocks will find their niche in the biofuels industry as long as they are balanced in providing value in the form of other products. n
 

 Brian Winslett is a founding partner of Blue Ridge Biofuels. Reach him at (828) 253-1034. Melita Kyriakou contributed to this article.

A Critical Assessment of Biodiesel Feedstocks

Web exclusive posted May 15, 2008 at 2:04 p.m. CST 
 
 Blackhawk Biofuels LLC has acquired a 45 MMgy biodiesel production facility under construction in Danville, Ill., from Biofuels Co. of America LLC. 
 
 As part of the signed agreement, Renewable Energy Group Inc. is providing financing in the form of a convertible loan to Blackhawk. Also participating in the financing is Fifth Third Bank.
 
 "Renewable Energy Group Inc. is proud to partner with Blackhawk Biofuels on the purchase and management of this facility," said Nile Ramsbottom, president of REG. "The opportunity to add production capacity for high quality biodiesel from the Blackhawk facility to the REG network is significant. This is an excellent business and growth opportunity for Renewable Energy Group, Inc. and through our investment, demonstrates our continued commitment to, and confidence in, the biodiesel industry."
 
 REG will manage facility operations and staff at the Danville facility, procure feedstocks and market the biodiesel as part of a management, operations and services agreement with Blackhawk Biofuels. The facility, which is located adjacent to a soybean crushing facility owned by Bunge North America, was designed to exclusively use vegetable oil; however Blackhawk Biofuels and REG will upgrade the plant's process technology to allow for multiple feedstocks. "Located on the Indiana/Illinois border, Danville is a strategic location of choice for us to continue building our nation's biodiesel future," added REG's Chief Operating Officer, Daniel J. Oh. "Upgrades to the facility will further enhance the plant's market advantages. We expect Danville to become a premier facility in the REG network focused on our marketing capabilities in Illinois, Indiana and Ohio."
 
 The state's continued commitment for the Danville facility includes financial support in the form of a state credit enhancement from the Office of Illinois Governor Blagojevich and the Illinois Finance Authority. Biodiesel production at the plant is expected to begin as early as this fall, Oh added. "As the facility brings on employees for family wage, skilled, green collar jobs, we appreciate Governor Blagojevich's continued support of this facility and the community," he said.

Blackhawk, REG to produce biodiesel in Illinois

Web exclusive posted May 15, 2008 at 4:24 p.m. CST 
 

 Renewable fuels legislation in Iowa that will expand the use and access of biodiesel in the state has been signed by Gov. Chet Culver. 
 
 House File 2689, specifically, will increase grant amounts and cost-share percentages for biodiesel infrastructure and retailer enhancements. Under the legislation, retailers are now eligible to apply for multiple awards for biodiesel and E85 improvements at the same site. The bill also includes a state-funded marketing campaign that is aimed at educating the consumer. 
 
 "This bill will help Iowa's biodiesel industry continue to grow and strengthen," said Randy Olson, executive director of the Iowa Biodiesel Board. "It's another step toward making our state the leader of the renewable fuels industry."
 
 Before Culver signed the bill he addressed the food versus fuel debate, saying Iowa can both fuel and feed the world, adding that with gas prices as high as they are it's time to commit to renewable fuels.
 
 "There is a lot of discussion right now about the biofuels' affect on rising food prices," Olson said, noting that many factors are contributing to the debate surrounding food and fuel and it all needs to be assessed collectively.

Iowa Governor signs renewable fuels legislation

Web exclusive posted May 15, 2008 at 4:26 p.m. CST 
 
 Canadians overwhelmingly support the national renewable fuels strategy to blend biofuels in Canada's fuel supply, according to a poll conducted by Praxicus Public Strategies Inc. in April on behalf of the Canadian Renewable Fuels Association.
 
 According to poll results, 74 percent of Canadians support the 5 percent national standard for ethanol and the 2 percent national standard for biodiesel. A further 67 percent support increasing the national renewable fuel blend to 10 percent and 5 percent, respectively.
 
 "This poll shows that Canadians are looking to renewable fuels to fuel change across the country," said Gordon Quaiattini, president of the Canadian Renewable Fuels Association. Founded in 1994, CRFA is a non-profit organization promoting the use of renewable fuels for transportation. "Canadians clearly support replacing some of our fossil fuels with renewable fuels such as biodiesel and ethanol. This will pay a variety of dividends: A cleaner, greener and more affordable source of energy that will strengthen economic prospects across Canada."

 
 Robin Speer, vice president of public affairs for CRFA said Canadians have consistently called for choice and diversity in transportation fuels. "They wish to see prices at the pump moderated, and they want a cleaner-burning home-grown renewable fuel," she said. "Canadians understand the many positive benefits of biofuels, and these public opinion results, and past results, show how strongly Canadians support biofuels."
 
 Currently in Canada approximately one billion liters (264 MMgy) of ethanol and 100 million liters (26.4 MMgy) of biodiesel are produced. By 2012 that is expected to increase to more than 2.5 billion liters (660 MMgy) of ethanol and more than 500 million liters (132 MMgy) of biodiesel. The renewable fuels industry is investing more than $1.5 billion in building production capacity in Canada and is helping to create 10,000 direct and indirect jobs and generating $600 million in annual economic activity. 
 
 "With oil at $120 a barrel, the case for viable alternatives to fossil fuels has never been stronger," Quaiattini said. "Ethanol, biodiesel, cellulosic ethanol and next generation biofuels are our best hope to grow beyond oil with cleaner fuels and provide some relief for Canadian consumers at the pump."
 
 To view the poll results, visit <a href="http://www.greenfuels.org">www.greenfuels.org</a>.

Survey: Canadians support biofuels

Web exclusive posted May 16, 2008 at 9:28 a.m. CST 
 
 Green Star Products Inc. has released a technical report on its 40,000 liter (10,566 gallon) demonstration facility in Montana, which was operational through the summer and winter of 2007-'08. The final stage of the project gave the California-based company experience operating the facility in both summer and winter conditions. 
 
 The company also announced its research operations will be moved from Ensenada, Mexico, to Utah in preparation for the development of a commercial scale algae production facility in that state.
 

 Green Star calls its pilot facility a Hybrid Algae Production System, or HAPS, which is basically a covered pond system that combines the controlled environment of a photobioreactor with the lower costs of an open pond system. The company's report states the HAPS model can be easily scaled up for commercial production and is designed to be built quickly from inexpensive local materials anywhere in the world. A four man crew built the test facility in about 12 hours, once the necessary construction materials were on site.
 
 The final stage of the demonstration facility showed the process was robust enough to continue producing algae even when outdoor temperatures were as low as 0 degrees Fahrenheit and after snowfalls of 14 inches. The production of algae was reduced because of shorter daylight hours and cooler water temperatures. However, the report stated the experience will allow significantly improved cold weather production from its next generation system scheduled to start production this spring. Several improvements have been made, including the use of the exhaust from an electrical generator to both warm the water in the system and provide carbon dioxide as a nutrient to enhance the growth of the algae.
 
 Phase I of the trial focused on controlling the environmental conditions in the HAPS facility. The most important parameters were found to be light control, temperature and salinity. The algae species tested were found to grow best under 25 percent to 50 percent of direct sunlight. The HAPS includes a light barrier to provide the optimal level of sunlight. Inexpensive controls maintained a constant temperature even though the outdoor temperature varied from 30 degrees to 82 degrees Fahrenheit. The enclosed design of the HAPS limits evaporation, minimizing problems in controlling salinity. "In summary, (Green Star) has already addressed the main causes of failures of other systems," the report concluded.
 
 Phase II of the project demonstrated that the HAPS could sustain an acceptable level of algae production. Using a strain of algae called ZX-13, the study allowed the system to go to environmental extremes to test the limits of the strain's productivity. The ZX-13 strain survived temperatures of 115 degrees Fahrenheit for several hours and salinity levels outside the normal operating conditions. The alga doubled itself between 1.5 and four times per day. It grew so fast that it needed to be harvested before Green Star had received all its harvesting equipment. The harvested algae had an oil content of 21 percent, which the report described as "acceptable." The report did not mention the level of production or operating costs of the facility.
 
 Green Star and its consortium partner Biotech Research Inc. announced that their existing microalgae laboratory facility now located at the UABC University in Ensenada, Mexico, will be moved to Utah. Green Star licensed the HAPS technology from Biotech Research. The Ensenada lab facility, which has been responsible for developing commercial algae strains for biodiesel production and high-protein algae biomass for food use, also developed algae harvesting and production techniques. 
 
 The Ensenada algae biotechnology team will be moving to the new expanded facilities in Utah to support the planned commercial algae production facility scheduled to go into operation in the 2008-2009 timeframe. The new lab facility will also be supported by other universities, consortium partners, and industrial technology companies.

Green Star reports Phase III algae results

Web exclusive posted May 16, 2008 at 9:31 a.m. CST 
 
 Earthrace, the world's fastest eco-boat is expected to arrive in San Diego May 16, where it will stop to refuel. Since its departure from the Vulkan Shipyard at the port of Sagunto, Spain, April 27, the eco-powered vessel has braved the waves as her crew attempts to break the world's record for a sustainable fuels boat to circle the globe leaving a zero carbon footprint.
 
 May 13 the craft was speeding up the western coast of Mexico with hopes of arriving at Navidad, Manzanillo, May 15. At that time, Earthrace was ahead of the nautical miles set by the current record-holder Cable and Wireless, which set the record in 1998.

 
 The crew was temporarily held up at the Panama Canal and is making up for lost time.
 
 "Good sea conditions have allowed us to cover almost 600 nautical miles in the last 24 hours," said Pete Bethune, skipper for Earthrace. "We've seen a few thunderstorms in the distance, and one of the most amazing lightning shows I've ever seen."
 
 "There was a bit of a downturn in morale over the last few days, with problems in Puerto Rico and the Panama Canal," Bethune said. A crew member slipped and lacerated his foot, he added, noting the job they all have undertaken is extensive and organization is essential and tiring.
 
 Despite some tribulation the crew has ventured on. "We aim to show the world that the best technology can also be sustainable," Bethune said. "We are hoping that Earthrace stopping here (in the United States) along the race route will be a chance for the people of San Diego to see an example of a vehicle that is 100 percent carbon neutral but does not skimp on performance or design."
 
 John Sheetz is a retired Lt. Commander in the U.S. Navy Reserve and a former U.S. Coast Guard. He co-founded Applied Information Technology (AIT), a company involved in developing solutions to improve environmental concerns. Sheetz was scheduled to make the Atlantic crossing with the Earthrace team in 2007, but the first attempt at breaking the world record was called off. He joined the crew at Manzanillo May 15, replacing Guillermo Woodward Rojas, a shipping agent from Mexico. 
 
 "I am exhilarated to be a part of the team for the next 2250 nautical miles on this record attempt and look forward to contributing what I can," Sheetz said. "My anticipation for this moment has been building steadily since the race started. I am fully charged and if I can't sleep for the next 5 days I won't be surprised. I hope to see Earthrace accomplish a successful circumnavigation and raise awareness of renewable fuels that will ultimately bring change for the good of the global community," Sheetz said. 
 
 Five attempts have been made to break the record since 1998; the Earthrace crew is confident they are going to make it happen.

Earthrace speeds on

Web exclusive posted May 19, 2008 at 5:20 p.m. CST 
 

 Neste Oil announced it will start distribution of a minimum 10 percent biodiesel blend at its service station pumps in Finland. The new diesel fuel, which will be known as Neste green diesel, appears at first sight to be in breach of the European standard EN 590:2004 for diesel fuel. 
 
 The EN 590 standard limits the volume of biodiesel to five percent mixed with 95 percent mineral diesel, however, Jarmo Nupponen of the Finnish Oil and Gas Federation said "the five percent limit refers to first generation biofuels, those such as FAME, and RME. The NExBTL biodiesel that Neste Oil blends into its diesel oil to make Neste green diesel is a hydrocarbon, made by a hydrogen treatment of vegetable oils. It can be blended into diesel of up to 60 or 70 percent without challenging the standard."
 
 Nupponen went on to explain, "its [NExBTL] density is lower than that of ordinary diesel, so in blends above 60 or 70 percent the fuel would not fulfill the minimum density requirement of EN 590."
 
 The Neste green diesel will first be made available to motorists in the metropolitan region around Helsinki, Finland, after which distribution will be extended on a phased basis to the rest of the country. In a statement issued by Neste Oil, Simo Honkanen, vice-president of Renewable Fuels said, "currently the European Union requires a bio content of two percent…and according to current plans, this [10 percent blend] only will be required in the year 2020."
 
 Honkanen said the possibility of using a minimum 10 percent blend with Neste green diesel had been discussed with several authorities in Europe with the agreement that it complied to EN 590. The limit of five percent biodiesel in the European standard EN 590, essentially relates to biodiesel made from methyl ester. NExBTL is a second-generation renewable diesel fuel made from biomass, but is chemically similar to fossil diesel, with the added benefit of emitting lower greenhouse gas over its lifecycle. He confidently predicts that it's a renewable diesel that will suit all diesel motors. 
 
 The European Commission's Renewable Energy Road Map, which was presented to the European Parliament in 2006, referred to biomass-to-liquids (BTL) as, "superior both to biodiesel and to existing diesel, and is not caught by rules limiting biofuel content in diesel. This is one of the reasons why BTL is supported through community research programs, and why efforts need to be intensified to bring it to market." 
 
 The first NExBTL renewable diesel unit was built at the Porvoo, Finland, oil refinery and came into operation in May 2007. A second plant currently being constructed on the same site will be operational in 2009. Both Porvoo units will produce an annual output of 170,000 tons. 
 
 A third NExBTL plant costing €550 million ($844 million) is being constructed in the Tuas industrial zone, southwest of Singapore, and will have an output of 800,000 tons annually when it opens at the end of 2010. The plant will employ approximately 100 people when fully operating, and Neste Oil has made a commitment to use only palm oil certified by the Roundtable on Sustainable Palm Oil. 
 
 The main part of Neste Oil's research and development budget is now being spent on developing new biofuels using non-food raw materials. More than 20 universities and research institutions have been commissioned to work on this, including ways to use forestry waste and algae. The company admits it will require several years to develop the use of, and commercialize these materials.

Europe's 2020 bio-vision available at Neste Oil's pumps

Web exclusive posted May 19, 2008 at 5:24 p.m. CST 

 
 With so many issues being discussed in the 2008 U.S. presidential race, the candidates have minimal time during a presentation to discuss in depth their views on all the topics. Therefore, Biodiesel Magazine is providing a brief summary of Republican nominee John McCain and Democrats Barack Obama and Hillary Clinton's agendas for renewable fuels. 
 
 There are a few similarities between the candidates – but also some glaring differences. Sen. Obama, D-Ill., and Sen. Clinton, D-N.Y., have plans to continue funding research for cellulosic ethanol and other types of biomass-derived fuels. Both have a $150 billion, 10-year investment plan to fund the continuation of renewable energy technologies. However, Obama has not mentioned where the money will come from for his 10-year plan, but Clinton has stated that one-third of her $150 billion plan will be provided by a Strategic Energy Fund, partially financed by oil companies.
 
 Sen. McCain, R-Ariz., has said he's in favor of using switchgrass, sugarcane and ethanol to reduce our dependency on foreign oil, but hasn't delivered a financial plan as to how he will support the advancement of those fuels. 
 
 Although he has said he supports ethanol, McCain is the only candidate who has taken a stance against ethanol subsidies. He doesn't support ethanol subsidies and said the industry is mature enough to exist without government help. According to McCain's Web site (<a href="http://www.johnmccain.com">www.johnmccain.com</a>), he views ethanol subsidies and the current ethanol tariff as a source of higher transportation and food costs. "Ethanol subsidies, tariff barriers and sugar quotas drive up food prices and hurt Americans," McCain said on his Web site. 
 
 In early May, McCain was one of 24 Republican senators that signed a letter addressed to the U.S. EPA requesting a waiver of the renewable fuels standard. "We are very concerned that food-to-fuel mandates and subsidies have contributed to higher domestic and global food prices…although many factors may contribute to high food costs, food-to-fuel mandates are the only factors that can be reconsidered in light of changing circumstances," the letter stated.
 
 A letter in defense of the renewable fuels standard was sent to the EPA by 16 senators, but neither Obama nor Clinton signed the letter.

 
 According to Clinton's website (<a href="http://www.hillaryclinton.com">www.hillaryclinton.com</a>), if elected president she will require 25 percent of all electricity in the United States to be generated by "renewables" by 2025 and 60 billion gallons of renewable fuel be made available to motorists by 2030. Clinton has pledged to double the government's investment in basic energy research, including funding a new federal research agency and would create a Strategic Energy Fund that would include tax credits for gas station owners who install E85 pumps at their facilities, as well as loan guarantees for the commercialization of cellulosic biofuels.
 
 Obama's plan also requires 25 percent of electricity be generated by renewable resources by 2025 and 60 billion gallons of renewable fuels to be used by 2030. In addition, Obama has placed emphasis on biomass-derived fuels. If elected, Obama will offer tax incentives, cash prizes and government contracts towards the development of "the most promising technologies." According to his website, (<a href="http://www.barackobama.com">www.barackobama.com</a>) Obama's goal is to have 2 billion gallons of cellulosic ethanol on the market by 2013. 
 
 Obama is the only candidate to promote a venture capital fund. His energy plan includes $50 billion for a Clean Technologies Venture Capital Fund that will "ensure that promising technologies move beyond the lab and are commercialized in the U.S," Obama said on his Web site.

U.S. presidential candidates' views on biofuels

Web exclusive posted May 22, 2008 at 8:18 p.m. CST 
 
 The now highly-publicized public relations anti-ethanol campaign by the Grocery Manufacturers Association has taken on a new opponent. Ethanol supporters have been voicing their outrage at the campaign since the motive behind the campaign was made public and May 22 the National Biodiesel Board added their name to the list of GMA opponents.
 
 The feeding frenzy on biofuels as the reason for higher food prices has got to stop," said Joe Jobe, chief executive officer for the National Biodiesel Board. "The GMA's anti-biofuels campaign is not based on sound science, but rather on their desire to find an easy target for defending their profits."
 

 Jobe added that, "more than 80 percent of each soybean is still used for animal feed or food. Biodiesel's effect on the food supply is minimal, and to claim otherwise is nothing short of intellectually dishonest."
 
 The campaign by the GMA was made public last week on Sen. Chuck Grassley's, R-Iowa, Web site. May 22 Grassley and fellow senators Byron Dorgan, D-N.D., John Thune, R-S.D., Ben Nelson, D-Neb., Kit Bond, R-Mo., and Ken Salazar, D-Colo., held a press conference to reiterate their support for biofuels funding and use.
 
 The U.S. Department of Agriculture said earlier this week that high energy prices have contributed to rising food prices more than biofuels production. Secretary of Agriculture Ed Schafer said the department clearly has "a difference of opinion with the GMA."
 
 The GMA's request for a public relations proposal can be viewed in its entirety at <a href="http://grassley.senate.gov/public/releases/2008/05152008.pdf">http://grassley.senate.gov/public/releases/2008/05152008.pdf</a>.

NBB bites back in biofuels war

Web exclusive posted May 28, 2008 at 4:59 p.m. CST 
 
 Three researchers from the USDA's Agriculture Research Service Eastern Regional Research Center in Wyndmoor, Pa., received the 2008 Glycerine Innovation Award sponsored by the National Biodiesel Board and the Soap and Detergent Association. 
 
 The award was recently presented during the 99th annual meeting of the American Oil Chemists' Society in Seattle, Wash., to Richard Ashby, Daniel Solaiman and Thomas Foglia for their outstanding achievement in research on new commercially viable applications for glycerine, a byproduct of biodiesel production, which can be used in place of petroleum-based glycerine in everything from disposable razors to credits cards.
 
 The team's research focused on two classes of bioproducts – biosurfactants known as sophorolipids and polymers known as polyhydroxyalkanoates. The surfactants are used in cosmeceutical applications and automatic dishwashing detergents. PHA polymers which have widespread properties, ranging from hard and tough to elastic, can be used to produce a wide range of items.

USDA researchers recognized for glycerine innovation

Web exclusive posted May 28, 2008 at 5:05 p.m. CST 

 
 The Jatropha World 2008 conference in Miami June 9-11 promises to bring participants up to date on jatropha developments internationally. A similar conference was held in Jakarta, Indonesia, last winter. Mexico's Secretary of Agriculture Alberto Cardenas Jimenez will kick off the conference with his keynote address describing developments in jatropha cultivation in Mexico. 
 
 The conference will highlight jatropha developments in several countries around the world, with speakers from India, Brazil, the Philippines, Madagascar, Norway, the United Kingdom and elsewhere. 
 
 Conference speakers include: Jon McLea, director of agricultural development for Imperium Renewables Inc., who will speak about establishing a commercial scale jatropha plantation; Charles Fishel, chief executive officer of Abundant Biofuels Corp., who is interested in jatropha as an economic development tool for Third World countries; and Russell Teall, president of Biodiesel Industries Inc., who has done jatropha research in India, as well as in Santa Barbara, Calif., where he is researching cold tolerance issues on a test plot.
 
 There will also be panel discussions covering investor concerns, plantation issues, agronomy, genetics, harvesting, processing technologies and sustainability issues.
 
 For more information, visit <a href="http://www.futureenergyevents.com/jatropha">www.futureenergyevents.com/jatropha</a>.

Jatropha developments to be highlighted at world conference

Web exclusive posted May 28, 2008 at 5:18 p.m. CST 
 
 The director of the Energy and Environmental Research Center at the University of North Dakota, based in Grand Forks, N.D., anticipates the center will soon enter into joint projects on algae for biodiesel as a result of a trip to Israel. "We are the first group to go to Israel to discuss a potential relationship related to the recently passed U.S.-Israel Energy Cooperation Act and to initiate a partnership that could address opportunities and technologies of mutual interest to both nations," said Gerald Groenewold, director of the EERC.
 

 During the trip Carl Bauer, director of the U.S. Department of Energy's National Energy Technology Laboratory, signed a Memorandum Of Understanding (MOU) with the Interdisciplinary Center Herzliya, a private university in Israel, for cooperation on several energy projects – including carbon management technologies, alternative fuels development, hybrid energy systems and advanced materials for energy systems. Groenewold said that as a strategic partner with NETL, and therefore tied to the MOU automatically, the EERC will be involved in the development and demonstration of many of the technologies.
 
 Israel is the most developed country in the eastern Mediterranean region and has a highly technological economy. Yet it also has limited commercial energy resources and faces many of the same energy and environmental issues as the United States. Using 17 power plants, the Israel Electricity Corp. generates nearly all of the country's power using imported resources. 
 
 "IEC's 2000-megawatt Ashkelon Power Plant, which we visited, ships in coal from 20 different locations worldwide to ensure security of its supply and to keep the power on for the population of Israel. This poses significant technological challenges," Groenewold said. "The Ashkelon Plant is also one of several Israeli facilities that uses waste heat and CO2 from the plant to grow algae. The EERC is particularly interested in algae as a feedstock for production of alternative fuels and anticipates joint projects with the Israelis."
 
 Groenewold was invited to participate in the energy delegation to Israel. Other participants included: Bauer; Robert Dixon, senior coordinator for energy security and climate change with the Executive Office of the President; Raymond Hobbs, manager of the Future Fuels Program at Arizona Public Service; Tim McNulty, associate vice president for government affairs, and Andrew Gellman, head of chemical engineering at Carnegie Mellon University; and Scott Smouse, international group leader with NETL. 
 
 David Haberman, president of IF LCC, an expert in hydrogen and fuel cells, coordinated the visit. Isaac Berzin, an authority on algae-based technology production of biofuels, served as the delegation's host during the weeklong visit. Eitan Yudilevich, executive director of the Israel–U.S. Binational Industrial Research and Development Foundation, cohosted the visit.

EERC interested in Israeli algae project

Web exclusive posted May 28, 2008 at 5:21 p.m. CST 
 
 The Energy and Tax Extenders Act of 2008 passed the U.S. House of Representatives May 21 by vote of 263 to 160. The vote was clearly political with 99 percent of the Democratic representatives voting for the bill's passage, and 82 percent of Republicans opposing the bill.
 
 The bill, sponsored by <a href="http://www.house.gov/rangel/">Rep. Charles Rangel</a>, D-N.Y., was introduced May 14 and includes many extensions for renewable energy tax provisions. The bill is especially important for biodiesel producers as it extends the current biodiesel tax credit for one more year. If passed by the U.S. Senate and signed into law by President George W. Bush, the bill will provide biodiesel producers a $1 per gallon incentive for biodiesel, regardless of feedstock.

 
 The legislation also includes a provision to close the "splash and dash" loophole which allows foreign fuel to be blended with miniscule amounts of U.S.-produced biodiesel to claim the tax credit before being exported overseas for end use.
 
 "The House approval is an important step in allowing the U.S. biodiesel industry to continue to grow America's energy security with cleaner-burning domestically produced biodiesel," said Joe Jobe, chief executive officer for the National Biodiesel Board.

U.S. House extends biodiesel tax incentive

Web exclusive posted May 28, 2008 at 5:24 p.m. CST 
 
 Global Renewable EnErgy Network Corp., a Richmond, British Columbia, biofuels company, sent its leadership team to the May 21-25 Autopetro event in Ho Chi Minh City, Vietnam. The event focused on providing a networking opportunity for businesses in Vietnam and Southeast Asia who are interested in serving the rapidly growing automotive market in the region. 
 
 Vietnam is currently active in the production of biodiesel feedstock materials as the region strives to look for cost-effective alternative energy solutions.
 
 During the event, GREEN Corp. executives introduced the company's Greenstar 1000 biodiesel batch processing equipment. The system, which is adaptable for community-level biodiesel production, can use multiple feedstocks with up to 5 percent free-fatty acid levels.
 
 The Vietnamese outreach is the latest international efforts by the company. In March, GREEN signed a $25 million agreement with the Philippine government to develop biodiesel production from coconut oil in rural areas. The company is also planning to deploy 100 of the small scale units which are capable of producing 1,000 liters (264 gallons) in 10 hours.
 
 GREEN is a joint venture formed by Ontario-based SITTM Technologies Inc. and TriBiotech Resources Ltd., British Columbia.

Canadian biodiesel company attends Vietnamese conference

Web exclusive posted May 28, 2008 at 5:26 p.m. CST 

 
 An explosion May 18 at the Greenlight Biofuels LLC facility located in an industrial park in Princess Anne, Md., killed a worker. 
 
 Michigan-based Diversified Mechanical Services Inc. was contracted to do some work at the plant. Two workers, one an employee of Diversified Mechanical Services, and a subcontractor, were working on welding pipes at the idled plant when the explosion occurred. One worker died; one was not injured. 
 
 The extent of the damage to the building was being assessed a few days after the accident, said Allen Cunningham, president of Greenlight Biofuels. "We're deeply saddened that this tragic accident happened," he said. 
 
 While the exact cause of the explosion is being investigated, he said the safety features of the plant worked as designed. The 4 MMgy multi-feedstock biodiesel plant started production in November, 2007.

Explosion at Greenlight Biofuels facility kills worker

Web exclusive posted May 28, 2008 at 5:28 p.m. CST 
 
 With petroleum and diesel prices increasing, fleet operators and individual drivers are finding it economical to convert to Blue Sun Fusion, a premium B20 biodiesel.
 
 Colorado's largest beer and wine distributor, Republic National Distributing Co., recently selected Blue Sun Biodiesel LCC as their biodiesel supplier. Blue Sun Biodiesel is a vertically integrated manufacturer and marketer of premium agricultural and renewable fuels products.
 
 "We're committed to using Blue Sun Fusion despite the fact that it may cost more than ultra low sulfur diesel because there is a net benefit environmentally and economically," said RNDC Fleet Manager Gregg Miller. "We save money as we operate our trucks and we reduce our carbon output."
 

 By using Blue Sun Fusion B20, drivers can save 22 to 40 cents per gallon, based on over 450 million miles of customer data since 2003.
 
 "Conversion of fleets, retail pumps and fuel distribution facilities is simple, easy and fast, plus our customer service ensures a smooth transition for all our new customers," Blue Sun Biodiesel President and COO Mike Miller said. 
 
 According to Blue Sun Biodiesel, operating cost savings can be as high as 11 percent using Blue Sun's biodiesel which improves fuel economy and reduces maintenance costs.

Blue Sun Biodiesel supplies B20 to Colorado beer and wine distributor

Web exclusive posted May 29, 2008 at 4:17 p.m. CST 
 
 Algae production will be a very important source of feedstocks in the future, but Jim Sears, president of Colorado-based A2BE Carbon Capture LLC, said there are still major obstacles that need to be overcome.
 
 According to one source there may be as many as 200 companies developing algae as a biofuel feedstock, Sears said. By his own estimate, there may be as many as 35 viable companies working in the field. Despite all the investments and excitement in the industry, commercial production of algae oil is still a dream. "With all those companies chasing this, no one has successfully commercialized algae," he continued. "No one yet knows how to do this in a way that makes sense in the long term. However, there are some very large companies working on this so I am confident that we will be there."
 
 A2BE is developing a system that will be marketed to electrical generation facilities and other carbon dioxide emitters as a way to capture greenhouse gas for sequestration or conversion into biofuels. Sears envisions that eventually there will be a national grid similar to the Interstate Highway system where carbon dioxide would be collected and transported to huge algae farms for conversion into algae-based biomass.
 
 There are more than 200,000 known species of algae and scientists say that is a fraction of the total species. They are as different as field mice and zebras, Sears said. Whether the intended result is oil for biofuels or protein for livestock or people, there is a species of algae that can maximize production of the desired product. "We add solar energy and through the miracle of photosynthesis, we get hydrocarbons," Sears said. "These hydrocarbons can be separated into products for industry such as fertilizer that contains nitrogen that is fixed in the process or methane that can be used to make just about any chemical or plastic." Other potential products include transportation fuels and industrial oxygen, which Sears said can make any combustion based process much more efficient.
 
 Sears framed the production of algae as an industrial process for converting carbon dioxide into fixed carbon compounds. A2BE's system will use plastic bags 40 feet wide, 400 feet long and 12 inches thick. Motorized rollers clean the bags and agitate the water to mix the algae to make sure it receives adequate sunlight. "These units will cover about a half acre and will consume about 100 tons of carbon dioxide per year," Sears said. The enclosed systems avoid the problems associated with open pond production such as contamination, evaporation and temperature control.

 
 Separating the algae from the water can be a technical challenge, Sears said. Rather than try to design a system from the ground up, he is looking to natural algae collectors to do the work for him, such as brine shrimp or small crustaceans known as copepods that are natural algae collectors. After the animals eat the algae, they are easier to filter out of the water than the algae. "The animals and algae synergistically work with each other in a multiorganism community that is sustainable," he said. 
 
 Despite the difficulties, Sears foresees algae production as being a good investment. A2BE's economic projections show that a ton of carbon will produce products worth more than $200 after being fixed by algae. "People talk about the price of carbon as if it something we have to have hauled away," Sears said. "Carbon dioxide is not a waste product. It is something you can reprocess into something that has $200 worth of value." He estimated the system would pay for itself within six to 10 years.
 
 Sears spoke at the Renewable Energy Action Summit in Bismarck, N. D., last week. For more information on A2BE Carbon Capture, visit <a href="http://www.algaeatwork.com/">http://www.algaeatwork.com/</a>.

Algae has potential, but more research needs to be done

Web exclusive posted May 29, 2008 at 4:22 p.m. CST 
 
 The 25 by 25 Coalition has notched some significant accomplishments during the 110th U.S. Congress, but the organization continues to work hard to reach its goal of making sure a quarter of the energy used in the United States in 2025 comes from renewable sources, says Bart Ruth, chairman of the group's legislative committee. The coalition has more than 700 members ranging from commodity organizations, environmental groups to local chambers of commerce. "I think there is a great deal of value in having such a broad and deep coalition," Ruth said. 
 
 Since rolling out its action plan in February 2007, the coalition has worked to build support in Congress, culminating in the adoption of a nonbinding resolution of support in the 2007 Energy and Independence and Security Act which was passed by Congress in December of last year. "That was really the first step," Ruth said. "We've been working with our alliance partners to keep them informed about the parts of the action plan that need to become law to make our goal a reality." 
 
 Ruth sees the renewable energy provisions in the EISA and Food, Conservation and Energy Act of 2008 as being significant steps towards building the United State's capacity to generate renewable fuels. Ruth recently attended a hearing in Washington D.C., on the renewable fuel standard (RFS) and said the support for renewable fuels is as strong as or stronger than when the coalition first unveiled its action plan. "The Energy Bill (EISA) was a major success and we've made some meaningful strides with the Farm Bill," Ruth said. "The sense of the Congress is very positive, but we have a very tough budget to work with. Now we need to make certain as we go through appropriations that the programs that were authorized are fully funded. That's the next step legislatively, to keep our champions engaged and pushing forward."
 

 The coalition is also tasked with creating guidelines for sustainable renewable energy production. "We want to answer the critics of renewable energy," Ruth said. "We are actively engaged in positive messaging to combat the negativity in the press that is being fueled by old industry in many cases. If we can collaborate with our partners and form a coherent message from a large group of people – that definitely has value." The group has also created a carbon task force to look at how agriculture can play a meaningful role in upcoming climate change legislation.
 
 The energy picture has changed dramatically in the 16 months since the 25 by 25 Coalition first unveiled its action plan. The mood in the country is even more supportive of renewable energy than it was, Ruth said. "I think consumers are getting the notion that we can't continue to pay $4 a gallon or higher for gasoline. We have to start changing our habits, looking at different things to conserve energy. If we continue to be aggressive, I think we can get to the goal of 25 by 25 because (energy prices) are starting to hurt people's pocketbooks and economic motivators are what change people's behavior."
 
 Ruth spoke at the Renewable Energy Action Summit in Bismarck, N. D., last week.

25 by 25 Coalition takes next steps

Web exclusive posted May 29, 2008 at 4:27 p.m. CST 
 
 New York, N.Y.-based biodiesel producer Innovation Fuels has forged a banking relationship with Citizens Financial Group Inc.'s Citizens Bank to obtain a working capital line of credit to support its production and sale of biodiesel. 
 
 Headquartered in Providence, R.I., CFGI is a $160 billion commercial bank holding company and one of the 10 largest commercial banking companies in the U.S. 
 
 According to Innovation Fuels President and Chief Executive Officer, John Fox, the company intends to use Citizen Bank's cash management and trade banking services as a means for leveraging and expanding the company's domestic and international market presence.
 
 "This working capital line of credit will be used primarily for procurement of our feedstock and to ship our product internationally," Fox said. "We're also able to aggregate other biodiesel products and offer a full range of downstream logistical services of our biodiesel product both here and internationally."
 
 Fox said Innovation Fuels has already begun using some of the funds from the newly-acquired credit line facility to open up its European office, Innovation Fuels Europe, to facilitate logistical services of its biodiesel product in the European biodiesel market. 

 
 Innovation Fuels owns and operates a 24 MMgy biodiesel production plant in Newark, N.J. which is currently undergoing an expansion project to 40 MMgy. So far, the project is going as scheduled, Fox noted. 
 
 Innovation Fuels recently acquired North American Biodiesel, a company that was founded two years ago for the purpose of developing a biodiesel production facility in Milwaukee, Wis. The acquisition provided Innovation Fuels with direct, deep-water international access via leasehold at the Port of Milwaukee, Mich., which is located on the western shore of Lake Michigan. 
 
 According to Fox, Innovation Fuels is currently in a financing drive that will enable the company to provide funding to acquire additional similar facilities. Fox said the company will also make investments in upstream activities, including feedstock production and procurement of non-food based materials such as jatropha. 
 
 To learn more about Innovation Fuels and its projects, visit <a href="http://www.innovationfuels.com/">http://www.innovationfuels.com/</a>.

Innovation Fuels secures working capital credit line from Citizens Bank

Web exclusive posted May 29, 2008 at 4:58 p.m. CST 
 
 With support from both Conservatives and Liberals, Canada's House of Commons overwhelmingly passed Bill C-33 by a 173-64 margin May 28. The legislation, the first of its kind in Canada, will implement a national renewable fuel standard, requiring ethanol and biodiesel blended transportation fuels in Canada. The bill still needs to be approved by the Senate.
 
 If enacted, Bill C-33 would require that gasoline have 5 percent ethanol content by 2010; and by 2012, it mandates that diesel fuel have a 2 percent renewable content. 
 

 "Today, the House of Commons voted to grow beyond oil," said Gordon Quaiattini, president of the Canadian Renewable Fuels Association. "Thanks to this vote, we will lower greenhouse gas emissions, provide new opportunities for Canadian farmers, and bring about competition at the pump. With oil and gas prices at record highs, the case for viable alternatives to petroleum has never been stronger."
 
 Jeff Passmore, executive vice president of Iogen Corp., said the House's passage of the biofuels bill and the Renewable Fuel Standard in Canada is a critical development for next generation biofuels such as cellulosic ethanol. "This vote represents a vote for next generation biofuels," Passmore said.
 
 Ross Ravelli, president of Grain Growers of Canada said the legislation will help ensure the development of a Canadian biofuels sector that will provide strong environmental benefits and create a valuable market. Brian Chorney, president of Canadian Canola Growers Association agreed. "The passage of this bill means new markets for Canadian canola growers, more value-added processing here at home, and it means new jobs created and the revitalization of rural communities right across Canada," Chorney said. "It also means choice and diversity for drivers, and new and cleaner sources of fuel supply in the diesel fuel pool."
 
 "With world corn prices having been very low for decades, ethanol production in Canada allows us to stay away from high transport cost export markets and improve the return on our hardlaboured product," said Christian Overbeek, president of the Fédération des producteurs de cultures commerciales du Québec. "Using the starch from corn to make ethanol will help lower harmful GHG emissions and moderate the price at the pump for Quebec drivers, while the distillers grains coproduct from ethanol will help provide a valuable high-protein feed for Quebec livestock producers. We commend the federal MPs who support Quebec farmers and rural communities by voting for Bill C-33."
 
 Canadian Soybean Council Chair Jim Gowland said the country's soybean industry welcomes the neutral feedstock approach taken to biodiesel in Bill C-33. "Soybeans are a diverse crop and Canadian soybean producers are adaptable to the needs of the market and this is another market for us to tap into," Gowland said.
 
 Canada's largest biodiesel producer, BIOX Corp. called the vote in Parliament a big boost for biodiesel and other renewable fuels in Canada. "This is a huge win for Canadians today," said Tim Haig, president and CEO of BIOX, and chair of the Canadian Renewable Fuels Association. "With diesel prices at an all-time high, trucks, boats, buses, and all diesel drivers will finally have choice at the pump now, paving the way for even greener and less expensive renewable fuels in the near future."
 
 Canada's leading ethanol producer, GreenField Ethanol applauded the passage of biofuels Bill C-33 in the House of Commons. GreenField's ethanol plants in Chatham and Tiverton, Ontario, and in Varennes, Quebec, produce a total of 97.7 MMgy (370 million liters). The company is in the final stages of construction of a 52.8 MMgy (200 million liters) plant in Johnstown, Ontario, that will create 50 permanent jobs and more than 200 construction jobs in Eastern Ontario. It will also provide farmers with a new market for 20 million surplus bushels of corn per year. 
 
 Bob Gallant, president and CEO of GreenField Ethanol said, Bill C-33, when passed by the Senate, will assure this market for ethanol in the future. "Right now, as a result of grain ethanol, we have a market in Canada, we have infrastructure, we have customers using our product, we have companies like GreenField that have earnings and investments and are pouring millions into research and development for next generation cellulosic ethanol," Gallant said. "The passage of Bill C-33 will help companies like ours provide Canadians with a much-needed alternative to expensive, polluting, ozone-depleting non-renewable oil."

June 2008

Business Briefs

Greenline Industries secures R&D funding

New Web site offers networking, auction tools

Earthrace begins new trial

ConAgra Trade Group becomes Gavilon

Bratney offers crude corn oil pretreatment process

Beatrice Biodiesel receives cash pool to complete construction

Nova Biosource announces funding, names president

Blue Sun Biodiesel announces hires, milestones, delays

Damman, Portz fill new positions at BBI

Columns

Survey Reveals Interesting Side of EPA

A Critical Assessment of Biodiesel Feedstocks

Featured

A Column of Support

The Tangled Web: Pipelines, Jets and Biodiesel

Multidimensional Moringa

Pollution Violations May Test Public Support for Biodiesel

Card-Carrying Biotruckers

Biodiesel's Female Factor

Taxing time for European biodiesel

Dedini's Blend: Ethanol Moves in With Biodiesel

A Closer Look at Sliding Vane Pump Technology

Green Star reports Phase III algae results

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

Business Briefs

Greenline Industries secures R&D funding

New Web site offers networking, auction tools

Earthrace begins new trial

ConAgra Trade Group becomes Gavilon

Bratney offers crude corn oil pretreatment process

Beatrice Biodiesel receives cash pool to complete construction

Nova Biosource announces funding, names president

Blue Sun Biodiesel announces hires, milestones, delays

Damman, Portz fill new positions at BBI

Columns

Survey Reveals Interesting Side of EPA

A Critical Assessment of Biodiesel Feedstocks

Featured

A Column of Support

The Tangled Web: Pipelines, Jets and Biodiesel

Multidimensional Moringa

Pollution Violations May Test Public Support for Biodiesel

Card-Carrying Biotruckers

Biodiesel's Female Factor

Taxing time for European biodiesel

Dedini's Blend: Ethanol Moves in With Biodiesel

A Closer Look at Sliding Vane Pump Technology

Green Star reports Phase III algae results

June 2008