Web exclusive posted Oct. 24, 2008 at 2:16 p.m. CST 
 
 The opening session of the Algae Biomass Summit in Seattle on Oct. 23 was a standing room only event. The Algae Biomass Summit in Seattle on Oct. 23 drew more than 650 participants and 50 speakers, nearly double the attendance of the inaugural summit in 2007. The event, which is the official conference of the Algal Biomass Organization, is designed to highlight scientific advances and share knowledge in an effort to accelerate the commercialization of algae production.
 
 Mario Tredici from the department of agricultural biotechnology at the University of Florence in Italy said algae has many of the properties for a second green revolution that could help satisfy the world's energy and food needs. However, algae have very specific culture requirements to produce near their theoretical potential. Changing light conditions as the density of cultures increase can limit the efficiency of the plants ability to convert sunlight into biomass. "Algae are not a miracle," he said. "It must obey the laws of thermodynamics." He does believe, with the proper technology and understanding of algae's biology, that yields of 70 to 80 tons of algae can be produced per hectare (approximately 2.5 acres), producing 15 to 20 tons of oil and about twice that much protein.
 
 The true value of algae will rely on the total amount of biomass not just the oil content, said Mark Tegan, chief executive officer of Inventure Chemical. Inventure processes biomass products into value-added products. Algae produce three distinct products – oil, carbohydrates and protein. Each component can be processed downstream into a variety of valuable products. "There is a lot of opportunity available in the chemical market," Tegan said.
 

 Tryg Lundquist, a professor at the California Polytechnic State University, updated a study that looked at the economics of building a large-scale algae production facility, and summarized the results as "expensive." His projections show algae oil will cost $9 to $16 a gallon, not including the cost of processing it into biodiesel. A system using algae to capture nutrients as part of waste water treatment would have a capital cost of $36 million. The cost for a stand alone algae facility would be similar.

ABS: Summit explores future of algae

During the first half of 2008, German biodiesel producer Petrotec AG posted net sales of €41 million ($61 million), up 29 percent from last year. The company operates two facilities in Germany with a combined capacity of 185,000 tons (53 MMgy). Falk von Kriegsheim, Petrotec's head of investor relations, attributes the growth to public opinion favoring the company's use of yellow grease and animal fats as feedstocks, and the recent completion of Petrotec's second biodiesel plant in the harbor of Emden, Germany.

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Petrotec increases net sales

Web exclusive posted Oct. 20, 2008 at 3:36 p.m. CST 
 
 Argentina jumped to third place in world biodiesel production for 2008, tripling its capacity from 2007. On Oct. 15, the Argentine Renewable Energies Chamber released a summary of its first full analysis of the Argentine biodiesel market, which includes a list of producers, analysis of present and future capacity, as well as recommendations. 
 
 <a href="http://www.argentinarenovables.org/ingles/informes_estudios_ensayos.php">The Outlook for the Argentine Biodiesel Market</a> states that Argentina will produce more than 10 percent of the world's biodiesel in 2008 making it the third largest world producer with sales in excess of $1.5 billion. "However, to guarantee the industry's full potential in Argentina - and establish itself along with Brazil as a biofuels powerhouse - the industry needs to be nurtured and protected far more than has been done thus far," said Carlos St. James, president of the Buenos Aires-based organization, in the report. 
 
 According to the report, in 2008 only Europe and the United States produce more biodiesel than Argentina. The total installed biodiesel plant capacity in Argentina will grow 150 percent from 2007 to 2008, the report states, with similar growth expected during 2009. New production capacity will increase 840,000 tons (251 million gallons) in 2008 to a record total of 1.4 million tons (419 million gallons) from 18 commercial biodiesel facilities averaging 83,000 tons per year (25 MMgy). The number of plants is expected to nearly double to 34 by the end of 2009.
 
 A B5 mandate which will begin in 2010 is expected to create a domestic market for 625,000 tons (187 million gallons) annually.
 
 The report also states that from January through September 2008, producers have exported approximately 750,000 tons (224 million gallons) of biodiesel from Argentine ports. "Over 90 percent of this production makes a first stop in the United States, where it is mixed with U.S.-made biodiesel and allowing for the entire shipment to qualify for the local subsidy. From there it typically leaves again for its final destination, Europe, but with far more attractive margins," the report stated. 
 
 One of Argentina's greatest attractions is the abundance of feedstock in the country, according to the report. Argentina is the world's largest exporter of soy oil. In addition, the country favors biodiesel use by eliminating the 32 percent export tax paid by soy oil exporters giving biodiesel made in Argentina a cost advantage.

 
 "This study is a contribution of the Argentine Renewable Energies Chamber to help give structure, order and solid foundations to an industry that has so much potential for our country," St. James said.

Argentina now third largest producer

Houston-based biodiesel producer Nova Biosource Fuels Inc. reported a $4.6 million third-quarter net loss Sept. 15. The total loss reported for the first three quarters of the year was $16.3 million. The company generated $25.5 million and $34.3 million in revenue during the same respective periods last year through its biodiesel production plants in Clinton County, Iowa, and Seneca, Ill. Nova's facility in Greenville, Miss., began shipping B100 in September.

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Nova Biosource Fuels reports third-quarter loss

Web exclusive posted Oct. 21, 2008 at 1:51 p.m. CST 
 
 The Northwest Crush Plant, a camelina mechanical extraction crush plant near the Lake Erie shoreline in Union City, Pa., will be operational at the end of October. Joel Hunter, an agronomist with the Penn State University co-op extension, presented data on the Camelina Project of Northwest Pennsylvania during the second annual Energy from Biomass and Waste Exposition & Conference which was held in Pittsburgh on Oct. 14-16.
 
 In an effort to benefit biodiesel production, the project planted camelina, a low input no-till oilseed crop that contains 35 to 40 percent oil. Hunter said 80 acres of camelina seed were planted on March 21 using no-till drill or fertilizers; however, herbicides were used to burn down the existing weeds. The camelina was successfully harvested in July. No modifications were needed for the harvest equipment, so regular corn/soybean sieves were used. Hunter said they didn't get the 40 bushels per acre that was anticipated, but did achieve 25 bushels per acre. A bushel of camelina weighs 50 pounds. 
 
 "Camelina is a crop you don't even want to consider tilling," Hunter said. "It's similar to a lot of the small grains crops." 
 
 The crush facility's two Anderson Super Duo machines from the World War II era have recently been refurbished and can achieve a 75 percent oil recovery from the camelina, Hunter said. The plant, when it comes on line at the end of October, will be able to crush 30 tons in an eight-hour shift. 
 
 This year Pennsylvania passed a B2 mandate, which has not been implemented yet due to infrastructural reasons. Pennsylvania is considered a soybean growing state, so therefore there are incentives to use locally grown feedstocks. Growing camelina, crushing it in the state and then eventually turning it into biodiesel at one of the state's biodiesel facilities to sell and use in Pennsylvania is one way to accomplish this task. 
 
 At the Energy from Biomass and Waste Exposition & Conference, Hunter passed around bags full of camelina seed and camelina meal, as well as a jug of oil. "We really appreciate the farmers' willingness to try this," he said. 

 
 Some of the camelina oil extracted from the crush plant will be sold to Lake Erie Biofuels, Pennsylvania's first large-scale biodiesel production facility. As a result of economics and market demand, the 45 MMgy plant was modified to accommodate multi-feedstocks, including tallow and animal fats, as well as soybeans.

Camelina crush plant to go on line this month

In September, Cargill Inc. opened a rapeseed-crushing facility in western France that will produce 250,000 metric tons of oil per year. The oil will supply the French food and biodiesel industries, with a significant volume transferred via pipeline to a biodiesel plant owned by Diester Atlantique, a subsidiary of the French oilseed financing group Sofiproteol. Cargill is the majority shareholder in the crushing facility, which is a result of a partnership with Sofiproteol. Cargill also holds a minority stake in Diester Atlantique.

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Cargill opens crushing facility

Web exclusive posted Oct. 20, 2008 at 2:07 p.m. CST 
 
 Energy solutions research and development company <a href="http://www.biocentricenergy.com)">BioCentric Energy Inc.</a> has released details of five proposed projects that are slated to occur in the next three years, most of which are centered on the development and use of algae as an emissions absorption agent, biodiesel feedstock and electricity generator. 
 
 Over the past thirty months, BioCentric Energy has conducted research and development on algae in Sri Lanka and India. The company has indicated it's ready to implement its proprietary technological process, which converts two species of algae into biofuels.
 
 BioCentric Energy said its technology consists of capturing carbon dioxide and nitrous oxide emissions from smokestacks, which are fed to a closed-loop algae solution where up to 50 percent of the emissions can be eliminated. The algal oil is then extracted and used to make biodiesel; the leftover residue is fed through a dual pyrolysis unit to create syngas for electricity generation. 
 
 The five algal projects are:
 <ul>	<li>In Lake Elsinore, Calif., BioCentric Energy will collaborate with Southern Pacific Energy Inc. to deliver its carbon dioxide reduction and algae growth solution for biodiesel production, as well as residue gasification process to produce electricity. </li>

 	<li>In Wuhan, China, through a joint venture BioCentric Energy will work with a coal-fired steel facility to implement its carbon dioxide reduction/algae growth solution for biodiesel production, and residue gasification process to produce electricity. </li>
 	<li>In Orange County, Texas, BioCentric Energy will collaborate with joint venture partner Petroleum Equipment Institute, which purchased 54 acres owned by a prior Exxon refinery, to implement a project involving the development of two acres of both covered and non-covered algae canals to absorb carbon dioxide emissions and produce biodiesel and electricity.</li>
 	<li>In Peru, the company is organizing and facilitating a farmer co-op to assist in the planting, harvesting, sale and delivery of organic biodiesel feedstock.</li>
 	<li>BioCentric Energy will facilitate the sale and delivery of sister company BioCentric Consortium's organic oils, including rapeseed oil, for biodiesel production.</li></ul>
 
 In early September, Biodiesel Magazine reported that BioCentric Energy had agreed on the terms and conditions of a Memorandum of Understanding to merge with AutoMax Group Holdings Inc. Read <a href="http://www.biodieselmagazine.com/article.jsp?article_id=2715&q=BioCentric&category_id=5">BioCentric Energy, AutoMax Group Holdings merge</a>.

BioCentric Energy to implement algal technology 

Nu-Energie LLC in Blountville, Tenn., has formed a partnership with EnerSight Fuels in Huntsville, Ala., to acquire waste vegetable oil for its 3.5 MMgy biodiesel plant in Surgoinsville, Tenn. The partnership is called Nu-Holdings. Due to recent price increases for virgin oil feedstocks, Nu-Energie modified the Surgoinsville facility to process waste vegetable oil, according to Nu-Energie Chief Executive Officer Brian Hullette. EnerSight has a multi-year contract to purchase waste vegetable oil from more than 1,000 restaurants in the Southeast.

Nu-Energie, EnerSight partner for feedstock

Sustainable Fuels LLC has received a $4 million loan guarantee through the USDA Business and Industry Loan Program to purchase machinery and equipment for its $6 million, 5 MMgy biodiesel plant in New Iberia, La., which is slated to begin production in January. The company plans to use waste vegetable oil, brown grease and soy oil as feedstocks. The permitting process is underway, the company said, and improvements have been made to the plant's 13,000-square-foot building.

Sustainable Fuels receives loan

California-based Green Star Products Inc. recently released its comparative financial statements for 2005-'07, which reveal that in 2007 the company had revenues of $2.49 million, a 60 percent increase over earlier estimates of $455,000. Green Star President Joseph LaStella largely credits the company's financial success to its employees and strong presence in the biodiesel industry. "We also have a very unique conversion process that no one else has, and we are the only company that manufactures our own facilities," he said. "We build and operate all of our own plants."

Green Star Products increases revenue

Web exclusive posted Nov. 4, 2008 at 3:07 p.m. CST 
 
 NxtGen Emission Controls Inc. announced Oct. 30 it had closed on a $15.4 million series B investment led by Altira Group LLC. "The financing of the company with B series stock is particularly meaningful given the economic circumstances of the day, NxtGen President and Chief Executive Officer Jeremy Holt said. "The inclusion of two strategic investors from Japan is noteworthy, as is the lead investor for this round, U.S.-based Altira, and the returning Canadian-based investor syndicate." 
 
 Canada-based NxtGen developed a scaled-down, under-the-hood technology to produce syngas from fuel to help reduce emissions of particulate matter and nitrogen oxide. The syngas aftertreatment technology developed by NxtGen also significantly reduces precious metal loading on catalysts for emissions control and can skirt the complex urea-injected selective catalytic reduction systems for nitrogen oxide control altogether. According to the company, its technology provides a platform for advanced emission and combustion technologies for multiple fuels, including diesel, biodiesel, natural gas and gasoline. 
 
 "Global demand for diesel power continues to increase while emissions regulations grow stricter," said Jim Newell, an Altira Group partner, who is expected to join NxtGen's board of directors. 
 
 Holt said the series B funding will be used to commercialize the company's first products for retrofitting diesel emission reduction systems for on- and off-road vehicles, and to complete development of advanced emissions and combustion optimization systems for European, Asian and North American original equipment manufacturers.

NxtGen Emissions closes $15.4 million series B funding

The new chairman for the American Trucking Associations is also president of the 5 MMgy Integrity Biofuels biodiesel plant in Morristown, Ind., which opened in August 2006. 
 
 Charles "Shorty" Whittington is also president of Grammer Industries in Grammer, Ind., a trucking company that specializes in transporting anhydrous ammonia, liquefied petroleum gases, carbon dioxide, nitric acid and bulk liquid corrosive hazardous waste throughout the eastern half of the United States.
 
 Whittington was named chairman during the ATA Management Conference and Exposition in New Orleans, La., on Oct. 7. He also serves on a number of boards, including the Indiana Motor Trucking Associations, the Agricultural & Food Transporters Conference, and the National Tank Truck Carriers. He is also active in many state propane and fertilizer trade associations.
 
 According to the ATA's official biodiesel policy, which was published Sept. 29, the associations are concerned about both the quality and cost of biodiesel. The ATA is calling for federally-enforced biodiesel quality standards, a single national diesel fuel standard that would pre-empt state mandates, and financial incentives for the trucking industry to use biodiesel. Whittington said the ATA's policy will not change with him as chairman.
 
 "The ATA's position is not going to change," he said. "The quality and economics are just not there for the trucking industry to embrace [biodiesel] yet. [Truckers] are not going to pay a premium for a product just because. Hopefully, we will get the economics turned around and understand that there is value, but we've got to roll up our sleeves and get down to the brass tacks here pretty quick."
 
 An American Transportation Research Institute survey published Oct. 5 said the cost of fuel is at the top of the concern list among more than 5,000 trucking industry executives.
 
 "Once [biodiesel is] competitive with diesel fuel at the pump, it won't take a mandate to sell biodiesel," Whittington said, "but until we get there, it's going to be a challenge."

 
 Whittington said as chairman of the ATA, he won't be a stumbling block for the biodiesel industry. "I will certainly be a friend of the industry, but they've got to earn the business and so far, that has not been the case. Right's right and wrong's wrong and we've got a lot of work to do," he said.
 
 "The good thing about [being chairman of the ATA and a biodiesel company president] is that, if anybody has got a question about the real story about biodiesel, I can explain it," Whittington said. "I feel I am very qualified to talk about that industry and get the right information out."

Whittington becomes trucking group chairman

Web exclusive posted Oct. 15, 2008 at 9:57 a.m. CST 
 
 The fourth edition of the National Renewable Energy Laboratory's Biodiesel Handling and Use Guide is now available. The publication provides direction for those who blend, store, distribute, and use biodiesel and biodiesel blends. 
 
 The guide, which contains information on the proper and safe use of biodiesel products in engines and boilers, is intended to help those involved in the biodiesel industry understand procedures for handling and using biodiesel fuels. 
 
 The last edition of the guide was published in March 2006. According to Robert L. McCormick, NREL's principal engineer for fuels performance, the new edition contains significant new information on storage stability, low temperature blending and operability, and on the new biodiesel blend specifications.
 
 McCormick said the guide is designed primarily to benefit marketers, blenders and commercial users of biodiesel. However, private users could also find the information interesting. 
 
 The 56-page document includes basic information on biodiesel blends to B100, and the BQ-9000 program for supply chain management. 

 
 Engine warranties, taxes and incentives, safety, health and environmental issues are also covered. 
 
 The document can be downloaded from the NREL Web site, <a href="http://www.nrel.gov/vehiclesandfuels/npbf/feature_guidelines.html">www.nrel.gov/vehiclesandfuels/npbf/feature_guidelines.html</a>.

NREL updates Biodiesel Handling and Use Guide

A fire at All-American Biodiesel in York, N.D., in late August destroyed one of the biodiesel producer's four buildings, rendering the plant inoperable. The state fire marshal's office determined the fire was accidental, possibly caused by a piece of equipment. However, the extent of the damage made it difficult for marshals to be certain of the exact source. It's unknown whether the 5 MMgy facility was producing at the time of the fire or whether it will be rebuilt.

North Dakota plant destroyed in fire

Web exclusive posted Oct. 15, 2008 at 10:40 a.m. CST 
 
 More widespread usage of biodiesel took a step forward Oct. 13 when the ASTM International published new approved standards for stronger biodiesel blends. 
 
 ASTM International, one of the largest and most highly regarded standards development organizations in the world, officially published the highly anticipated biodiesel blend specifications on its <a href="http://www.astm.org">Web site</a>. 
 
 The new biodiesel blend specifications include: 
 	<ul><li>ASTM D975-08a, Specification for Diesel Fuel Oils - used for on- and off-road diesel applications, was revised to include requirements for up to five percent biodiesel</li>

 	<li>D396-08b, Specification for Fuel Oils - used for home heating and boiler applications, was revised to include requirements for up to five percent biodiesel</li>
 	<li>ASTM D7467-08, Specification for Diesel Fuel Oil, Biodiesel Blend (B6 to 20) - a completely new specification that covers finished fuel blends of between six (B6) and 20 (B20) percent biodiesel for on- and off-road diesel engine use</li>
 	<li>ASTM D6751-08, Specification for Biodiesel Fuel Blend Stock (B100) for Middle Distillate Fuels - used to control pure biodiesel (B100) quality prior to blending with conventional diesel type fuels, was revised to include a requirement that controls minor compounds using a new cold soak filterability test</li></ul>
 
 According to Steve Howell, technical director for the National Biodiesel Board and chairman of the ASTM Biodiesel Task Force, before the introduction of ASTM D7467-08, there were no separate specifications for finished blends of biodiesel and diesel fuel. As long as the two parent fuels met their specs, they could be blended up to B20. "That way of operating has worked well in the marketplace and has allowed the biodiesel industry to begin and start to thrive," Howell said. One benefit of the new specifications is that companies can now design engines for finished fuel blends. 
 
 "We would not have been able to pass these specifications through the rigorous voting process of ASTM were it not for the support of all three groups working together – engine [companies], petroleum companies, biodiesel companies – to get these specs passed," Howell said. "With the passage of these specifications, biodiesel used in B20 blends and lower can now be considered a proven fuel." In addition, the specifications have been designed so that when B100 and diesel fuels meet their respective specifications prior to blending, the blended products will always meet the new blended fuel specifications. 
 
 Also under the new specifications, fuel blends of up to B5 are considered a fungible component with the conventional petroleum-based diesel fuel. This means that biodiesel content of 5 percent and lower is considered part of the normal makeup of diesel fuel. 
 
 "Diesel users can be confident that the fuels meeting the newly approved specs are fit for purpose," Howell said. "OEMs can now use these specs to design new engines…and regulators can use them to enforce fuel quality. This is perhaps the biggest technical achievement of the biodiesel industry, in my personal opinion, since its inception in the U.S. in the early 1990s."

 
 For more information, visit the ASTM International biodiesel web portal at www.astmbiodieselfuel.com.

ASTM publishes new biodiesel standards

The theme of this November issue is alternative feedstocks. We have many informative features in this issue focusing on animal fats, grease, jatropha, camelina and algae, among others. However, for this month's editor's note, I want to focus on a different topic: biodiesel plant safety.
 
 Staff Writer Kris Bevill wrote a feature about this in our October issue, titled "Handling Hot Work Hazards," which was spurred by a rash of fires and explosions at biodiesel plants that are sadly becoming too common. Since she wrote that feature, there have been two more plant fires-at All-American Biodiesel in York, N.D. (see BIObyte on page 18), and Nova Biosource Fuels Inc. in Clinton, Iowa. 
 
 Thankfully, no one was seriously injured in either fire, although a firefighter who responded to Nova Biosource Fuels sustained minor steam burns. At press time, the cause of that fire was unknown, and the extent of the damage was being assessed. The North Dakota Fire Marshal Division concluded that the fire at All-American Biodiesel started in an area that held electrical equipment, but an exact cause was not determined.
 
 Bevill's feature mostly focused on welding issues, which caused two biodiesel plant fires earlier this year. In the safety breakout session at this year's International Fuel Ethanol Workshop & Expo, I asked representatives of companies that work to prevent industrial accidents why these welding accidents were happening. The answer surprised and saddened me. They said welders often work for third-party companies outside the biodiesel plant and have no idea what type of industry they're dealing with. They aren't in charge of making sure a tank has been properly emptied or that valves are functioning properly. They are simply shown a pipe and asked to weld it. That could be one scenario, but I'm sure there are others. Of course, no one intends for these accidents to happen, but once they do, biodiesel plant managers most likely wish they had been more vigilant with their fire safety. 
 
 Unfortunately, by that time, it's too late.
 
 My dad is a retired firefighter, and so oftentimes when I was growing up, he would check our house for fire hazards-a stack of old newspapers, lint built up behind the clothes 
 dryer, too many electronics plugged into one outlet, etc. This should be a regular practice at biodiesel plants, as well. Hazards should be continually identified and corrected. 
 
 Equipment should be well-maintained. It's true that accidents happen, but if the proper steps are taken, they should happen less often.
 

 Jessica Sobolik
 Managing Editor
 <a href="mailto:jsobolik@bbiinternational.com">jsobolik@bbiinternational.com</a>

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Safety Should Truly Come First

A biodiesel producer and a biodiesel production equipment manufacturer were both recently named on Inc. magazine's list of the 500 fastest-growing companies. 
 
 Larkspur, Calif.-based Greenline Industries Inc. was ranked seventh on the overall list and was the No. 1 fastest-growing energy company for 2008. The equipment manufacturer has experienced a 10,000 percent growth rate since its inception in 2002.
 
 Golden, Colo.-based Blue Sun Biodiesel was ranked No. 242 on the overall list and was 10th on the list of 23 energy companies.

Greenline, Blue Sun make Inc. magazine list

Web exclusive posted Oct. 15, 2008 at 5:30 p.m. CST 
 
 A recent grease theft arrest in northern California has resulted in a police sergeant being put on paid administrative leave as he awaits a court hearing for allegedly stealing $350 worth of used cooking oil from a local restaurant.
 
 Sacramento Rendering Co. held the contract for pick-up of grease from that location and reported the theft. Sacramento Rendering President Michael Koewler said in March he began noticing thefts had occurred at his company's pick-up sites. He contacted local police in June and they began an investigation that ended Sept. 30 with the arrest of Folsom, Calif., Police Sergeant John Landahl on misdemeanor theft charges. He was released on his own recognizance and is scheduled to appear in court on Oct. 17 to face charges of the theft and illegal transportation of used cooking oil.

 
 Reports of grease thefts have been on the rise across the country in the past year. Prices for waste oil have gone up as a result of increased demand for the product as a feedstock for biodiesel production. Koewler said although the biodiesel industry has caused increased demand for the product, rogue biodiesel producers are not to blame for grease thefts. Rather, according to Koewler, the periodic rise in price of grease is to blame for the increased number of thefts. "Even before biodiesel was the craze, we had a number of thefts," he said. 
 
 Folsom, Calif., is located approximately 20 miles northeast of Sacramento.
 
 Koewler said the amount of grease thefts in California has been "absolutely crazy" due to the higher prices being paid for grease in recent months. He believes that thefts are more prevalent in California than other areas of the country because the weather is mild year-round, so grease never reaches the semi-solid state that would make it more difficult for would-be thieves to collect it. 
 
 Convincing police to investigate grease thefts is a problem for businesses, said Koewler, so he's happy that Folsom officials took the complaint seriously and spent time working on the case. He's had past experiences with thefts that haven't gone nearly as well. "We've had cases that have been pretty solid and trying to get a district attorney to take on these cases with their high workload has been very problematic," he said. 
 
 Sacramento Rendering uses locks on their collection bins, but that is sometimes counterproductive because thieves end up completely destroying the container in order to get past the lock, he said.

California cop is arrested for grease theft

San Francisco-based Solazyme Inc. recently raised $45.4 million through investors that include Braemar Energy Partners, Lightspeed Venture Partners and Harris & Harris Group. 
 
 The Series C funding will be used for the company's expansion and growth in producing biodiesel from algae oil on a commercial scale. Solazyme also has an agreement with Chevron USA Inc. to develop and test biodiesel feedstocks. The company's proprietary process grows algae in closed fermentors rather than photobioreactors or ponds used by most other algae producers.

Solazyme receives expansion funding

Beatrice Biodiesel LLC filed for Chapter 7 bankruptcy as its 50 MMgy biodiesel facility under construction in Gage County, Neb., became the property of Minnesota-based AgStar Financial Services ACA. Beatrice Biodiesel initially attempted to file for Chapter 11 bankruptcy Aug. 21 after its parent companies U.S. Biofuels Inc. and Australian Ethanol Ltd. failed to supply sufficient funds to cover outstanding debt, according to Gage County Director of Economic Development Terri Dageford.

Beatrice Biodiesel files for bankruptcy

John Hardy has assumed the position of process engineering market leader at Wisconsin-based Affiliated Engineers Inc. Biodiesel is a main market focus for the engineering firm, along with biofuels in general, Hardy said. Most recently, he was director of engineering development at U.S. Biodiesel Group LLC, which was acquired by Renewable Energy Group Inc. this summer. In his new position, he will be responsible for developing Affiliated Engineers' process engineering practice, which is focused on the biofuels, chemical, food and pharmaceutical/biotech market sectors.

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Hardy joins Affiliated Engineers

The Wisconsin Biodiesel Association appointed Richard "Hardy" Sawall to the position of vice president Sept. 8. He is a professional engineer and senior vice president of Midwest operations for Innovation Fuels Inc., to which he sold his own firm North American Biodiesel. "We greatly value Hardy as a member of the board and are very happy that he has accepted his new position," said Tony Hartmann, president of the WBA.

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Biodiesel association names vice president

In September, New York City-based Tri-State Biodiesel LLC was named one of 12 finalists for the Social Venture Network's second annual Innovation Awards, which are given to companies whose practices positively impact the environment and/or society. Six award winners will be named at an award ceremony in late October. Tri-State collects yellow grease, a waste product, from New York City restaurants for biodiesel production. At press time, the company was shipping its feedstock to Ohio-based JatroDiesel for processing while Tri-State worked to complete its own production facility in Brooklyn, which recently stalled because of financing issues. Tri-State also supplied biodiesel for this year's annual 9/11 memorial in New York City. Generators that powered the light display were fueled with B20.

Tri-State Biodiesel receives sustainability award nomination

The San Francisco Port Commission approved the construction of a 10 MMgy biodiesel plant on Pier 92 in the Port of San Francisco adjacent to Darling International's animal fats and waste vegetable oil rendering facility. The project is part of Darling's plan to expand its current operations to include biodiesel production. The company is the largest maritime exporter at the port and has operated the rendering plant since 1966. This is the second biodiesel production facility planned for the city in the past year.

San Francisco approves city's first biodiesel plant

The city of Destiny, Fla., announced Aug. 27 that it has created the state's first sustainable energy farm. The Destiny Sustainable Energy Farm will be a learning center where new farming techniques and practices can be showcased and designed to produce energy crops for alternative fuels. To date, 20 acres of sweet sorghum have been planted. The farm is expected to plant jatropha in late fall and may consider planting hybrid sugarcane, Napier grass, sunflowers and industrial sweet potatoes in the future.

Florida energy farm to research biofuels crops

Wisconsin state agencies boosted their biodiesel usage 842 percent in 2007 compared with the previous year. Usage rose from 6,404 gallons of B20 in 2006 to 60,331 gallons in 2007. While no B5 was sold in Wisconsin in 2006, 4,970 gallons of B5 were sold in 2007. Also, the Wisconsin Office of Energy Independence estimates that consumption of B100 reached 809,000 gallons in 2007. In 2006, an executive order required state agencies to reduce their use of petroleum-based fuels, setting the goal of reducing diesel use by 10 percent by 2010 and 25 percent by 2015.

Wisconsin boosts biodiesel use

Keith Klein, a researcher at Sul Ross State University in Alpine, Texas, is designing a solar collector to distribute light and heat to grow algae as a biodiesel feedstock. The instrument will include an insulated algae propagation tank with a parabolic mirror and refractor to concentrate the plant-feeding part of the light spectrum onto algae, and the remaining light onto solar cells and a boiler to produce electricity. The device will enable algae to be grown in variable climates, he said.

Researcher designs solar collector for algae

New Zealand-based Aquaflow Bionomic Corp. announced production of its first samples of green-crude from wild and natural algae. The company said green-crude differs slightly from first-generation biofuels because it's made solely from photosynthetic microorganisms (algae), which absorb sunlight, carbon dioxide, and nutrients found in waste streams or agricultural runoff. Aquaflow Chairman Barry Leay said the outputs from the samples are showing similar or greater potential compared with existing petroleum products.

Aquaflow produces first green-crude samples

Biodiesel markets in Brazil, Russia, India and China, countries also known as BRIC, are the subject of a new report conducted by India-based Bharat Book Bureau. According to the report, today's BRIC biodiesel market represents nearly $578 million from a cumulative turnover of 35 active players. That number is expected to grow in the next four years to $6 billion as 33 additional companies are in the process of establishing biodiesel plants that could be on line by the end of 2012. "The top three players alone account for nearly two-thirds of the BRIC market," the bureau said.

Report analyzes BRIC biodiesel markets

Ukrainian agricultural producer Landkom International PLC harvested 48.7 million pounds of rapeseed in 2008. About 7.94 million pounds was lower-quality product, which will be processed into 792,500 gallons of biodiesel for use in the company's tractors, trucks and logistics fleet. The company harvested 40.9 million pounds of what it called "high-quality" rapeseed from 12,363 acres, which represents an average yield of 3,305 pounds per acre. In comparison, North American canola farmers typically average 2,500 pounds per acre.  n

Landkom releases harvest data

As the Atlantic hurricane season nears an end, the footprints of Gustav and Ike remain.
 
 Hurricane Gustav made U.S. landfall Sept. 1 along the Louisiana coast as a Category 2 cyclone, causing approximately $15 billion in damages and killing more than 40 people. 
 
 Hurricane Ike, also a Category 2 storm, reached the Texas coast Sept. 12 and accounted for approximately 61 U.S. fatalities. The island city of Galveston Bay, Texas, home of the largest biodiesel production facility in the United States, suffered nearly $2 billion in damages.
 
 GreenHunter BioFuels LLC, a subsidiary of Grapevine, Texas-based GreenHunter Energy Inc., announced its 105 MMgy Renewable Fuels Campus in Houston would be shut down for six to eight weeks due to water damage caused by Hurricane Ike. Initially, damage was anticipated to be caused by winds, but the company's preliminary damage assessment attributed the majority of the damage to floodwaters.

 
 Damage was sustained in offices, piping between reagent tanks, and some small and intermediate tank foundations. Additionally, two bulk storage tanks containing vegetable oil and methanol tanks were affected, and as a result, 50 barrels of canola oil were lost. "Given the sheer volume of water and the extreme flood levels that we faced, our initial assessment is that we sustained overall minor to moderate impact to the Renewable Fuels Campus from Hurricane Ike," said Bruce Baughman, senior vice president of technology and engineering.
 
 Other biodiesel facilities in the region reported minimal or no damage from either hurricane. Alicia Clancy, spokeswoman for Renewable Energy Group's REG Houston LLC plant, said the facility fared well through Hurricane Ike. "REG Houston had in place a detailed and well-managed hurricane preparedness plan, which they put into action as Hurricane Ike reached shoreline," she said. "All staff and their families remained safe throughout the duration of the storm." She added that the plant itself sustained little physical damage. "The REG Houston and Renewable Energy Group staff were prepared for the storm, and worked quickly and safely to return the plant to operation," she said. Biodiesel production resumed Sept. 16.
 
 Momentum Biofuels Inc., located in the Houston suburb of League City, Texas, told Biodiesel Magazine that it was untouched by Hurricane Ike. Gregg Enders, president and chief executive officer of Momentum, said although the plant was without power, and damage couldn't be observed for several days after the hurricane hit, all was well and the company expected to be back in production soon. "Feedstock loaded on barges, despite being undamaged, is still being held by the Coast Guard," he said. "All should be normal for us pretty quickly."
 
 On Sept. 15, as a result of Ike, the U.S. EPA issued eastern Texas with a temporary emergency waiver of a special diesel fuel requirement specific to the state and its low emission diesel (TxLED) policy. TxLED was implemented in October 2005 to help reduce air pollution from nitrogen oxides and hydrocarbons in eastern Texas. It requires diesel fuel, including biodiesel blends, to meet certain criteria beyond what is required by federal law. The waiver expired Sept. 30.

Hurricane Ike brought heavy rains, wind and damage to the Houston area in September.

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Hurricane damages biodiesel facility, prompts fuel waiver

The Sustainable Biodiesel Alliance discussed its guidelines for the sustainable production of biodiesel at its Sustainable Biodiesel Stakeholders Summit in Austin, Texas, in mid-September. At press time, a final version of the document was scheduled to be released Oct. 9.
 
 The draft version of the guidelines laid out a vision for the sustainable production and use of biodiesel. Starting with a statement of principles, the document addressed sustainability issues of feedstocks, water use, carbon release, working conditions, air emissions, waste handling, community benefit and quality. It also discussed sustainable practices for biodiesel distributors and end users. "We want to concentrate on what we can do today to make plants more efficient, look at feedstocks and relate them to proximity to markets, and things of that nature," said Jeff Plowman, the alliance's executive director. "There are little things we can do and big things we are still working on."
 
 The alliance published its draft guidelines on its Web site, and created a forum where people and organizations could comment on the rules. Plowman said the group also received many other comments via e-mail, telephone and fax. At the summit, one order of business was to incorporate the public comments into the draft document. Plowman said the most significant changes involved policy and scientific issues. "Much of it was related to direct and indirect land uses changes, and things of that nature," he said. "We discussed that quite a bit. We didn't do too much changing of things there, but those issues are constantly evolving. We're committed to continue following the changes in science and policy, but we want to put things into practice today."
 
 One of the thornier issues at the summit was the use of genetically modified organisms (GMO) in crops used for biodiesel production. Many in the sustainability movement are deeply suspicious of the long-term safety of GMO crops, but the ubiquity of GMO oilseeds may make excluding them in the guidelines next to impossible. "Our basic principle is that GMO feedstocks should not be used, but we know they are being used, so we should be transparent about the issue," Plowman said. "There was a question about why we put a GMO policy in the guidelines, and that is because we were following sustainable farming practices. Sustainable farming is fundamentally against GMO crops."
 
 The guidelines are meant to be a baseline for biodiesel producers who want to follow sustainable practices, Plowman said. "It is a foundation to show people where sustainability begins," he explained. "We will use the guidelines for our pilot programs. The pilot programs will be field-testing these practices, and that will let us know what works and what doesn't. So the guidelines are just Phase One of our organization's mission. We needed a place to start, and that's what the guidelines are all about."
 

 The Sustainable Biodiesel Alliance was formed in December 2006. Its mission was to create a vision for the sustainable production of biodiesel and the means to certify sustainable biodiesel producers. Plowman said the group wants to move biodiesel beyond being an alternative to petroleum. "Biodiesel for biodiesel's sake isn't enough anymore," he said. "We've got to make sure it is part of the solution. When we started, sustainability wasn't a part of the conversation. Now, sustainability has become something of a meaningless buzzword, but it means something very specific for us. We have defined sustainable biodiesel in our document and hope to achieve that through these practices."

Sustainable Biodiesel Alliance hammers out industry guidelines

The Sustainable Biodiesel Alliance discussed its guidelines for the sustainable production of biodiesel at its Sustainable Biodiesel Stakeholders Summit in Austin, Texas, in mid-September. At press time, a final version of the document was scheduled to be released Oct. 9.
 
 The draft version of the guidelines laid out a vision for the sustainable production and use of biodiesel. Starting with a statement of principles, the document addressed sustainability issues of feedstocks, water use, carbon release, working conditions, air emissions, waste handling, community benefit and quality. It also discussed sustainable practices for biodiesel distributors and end users. "We want to concentrate on what we can do today to make plants more efficient, look at feedstocks and relate them to proximity to markets, and things of that nature," said Jeff Plowman, the alliance's executive director. "There are little things we can do and big things we are still working on."
 
 The alliance published its draft guidelines on its Web site, and created a forum where people and organizations could comment on the rules. Plowman said the group also received many other comments via e-mail, telephone and fax. At the summit, one order of business was to incorporate the public comments into the draft document. Plowman said the most significant changes involved policy and scientific issues. "Much of it was related to direct and indirect land uses changes, and things of that nature," he said. "We discussed that quite a bit. We didn't do too much changing of things there, but those issues are constantly evolving. We're committed to continue following the changes in science and policy, but we want to put things into practice today."
 
 One of the thornier issues at the summit was the use of genetically modified organisms (GMO) in crops used for biodiesel production. Many in the sustainability movement are deeply suspicious of the long-term safety of GMO crops, but the ubiquity of GMO oilseeds may make excluding them in the guidelines next to impossible. "Our basic principle is that GMO feedstocks should not be used, but we know they are being used, so we should be transparent about the issue," Plowman said. "There was a question about why we put a GMO policy in the guidelines, and that is because we were following sustainable farming practices. Sustainable farming is fundamentally against GMO crops."
 
 The guidelines are meant to be a baseline for biodiesel producers who want to follow sustainable practices, Plowman said. "It is a foundation to show people where sustainability begins," he explained. "We will use the guidelines for our pilot programs. The pilot programs will be field-testing these practices, and that will let us know what works and what doesn't. So the guidelines are just Phase One of our organization's mission. We needed a place to start, and that's what the guidelines are all about."
 
 The Sustainable Biodiesel Alliance was formed in December 2006. Its mission was to create a vision for the sustainable production of biodiesel and the means to certify sustainable biodiesel producers. Plowman said the group wants to move biodiesel beyond being an alternative to petroleum. "Biodiesel for biodiesel's sake isn't enough anymore," he said. "We've got to make sure it is part of the solution. When we started, sustainability wasn't a part of the conversation. Now, sustainability has become something of a meaningless buzzword, but it means something very specific for us. We have defined sustainable biodiesel in our document and hope to achieve that through these practices."

Small-scale and large-scale fuel studies continue to show that the performance of biodiesel is on par with petroleum diesel.
 
 In Washington, Propel Inc.-which owns a network of fueling stations that offer B5, B20 and B99-recently completed a study with The Essential Baking Co. that concluded that B99 runs as effectively as, if not better than, petroleum diesel when used in the baking company's delivery vehicles, according to Propel. The vehicles varied in model year and type, and were driven on a variety of routes and a variety of distances. Essential Baking used 2,500 gallons of B99 over 37,000 miles and 13 weeks beginning in January. Air temperatures dipped below 35 degrees Fahrenheit during 32 days of the study, and none of the vehicles experienced failures. The majority of drivers reported that the vehicles ran smoother and quieter on B99 than on petroleum diesel.
 
 Meanwhile, with 200,000 miles left to go in the Two Million-Mile Haul over-the-road B20 demonstration test, results showed that B20 performs at a level comparable with petroleum diesel, even at zero-degree Fahrenheit air temperatures, according to Donald Heck, lab director for the Biotechnology and Biofuels Program at Iowa Central Community College in Fort Dodge, Iowa. The demonstration, which began in the fall of 2006, consists of two groups of 10 semi-tractors running with flatbed trailers on matched routes to either Minneapolis or Chicago. A control group is using 100 percent No. 2 petroleum diesel, while the test group uses B20. The test's findings mimic the results of a 12-month study released by the National Renewable Energy Laboratory and the National Biodiesel Board in early August, which concluded that a B20 blend operates comparatively with petroleum-based ultra-low-sulfur diesel. The Two Million-Mile Haul study is sponsored by the community college, the Iowa Soybean Association, Decker Truck Line Inc., Caterpillar Inc., the NBB, Renewable Energy Group Inc. and the USDA.

A delivery vehicle from The Essential Baking Co. fills up with B99 at a Propel Inc. fueling station. 

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Fuel studies continue to validate biodiesel performance

The biodiesel industry has had a tough year, but cautiously optimistic companies such as Tellurian Biodiesel Inc. continue to expand their operations. The Los Angeles-based biodiesel producer and marketer, along with its partner Golden State Foods, recently opened a distribution terminal and storage area in Los Angeles.
 
 At press time, Tellurian was expecting its first railcar shipment of biodiesel to arrive at the terminal Sept. 23 and planned to begin selling biodiesel no later than Oct. 1. Tellurian Vice President of Sales and Marketing Joe Gershen told Biodiesel Magazine the terminal was formerly a petroleum recycling terminal. Tellurian leased a portion of the building, which came equipped with most of the infrastructure, including storage tanks, which lessened the financial costs of opening the terminal. A few biodiesel-specific pieces of equipment were added, and the tanks were thoroughly cleaned to be ready for biodiesel. Gershen said having a fiscally responsible partner like Golden State Foods has helped, and that the project was funded "carefully and conservatively."

 
 Gershen said the decision to open the distribution terminal was made after regularly receiving calls from biodiesel users who had run out of product and were looking for more. "It's hard to gauge anything, but obviously we wouldn't have opened the terminal if we weren't optimistic about the market," he said, adding that inventory management will be the biggest initial challenge. "We don't want too much, but we also don't want to sell out our entire stock in the first two days." He expects the majority of the terminal's customers to come from southern California, but said they've received inquiries from northern California, Arizona, Nevada and other areas of the Southwest. 
 
 Tellurian's B99 terminal is conveniently located near two petroleum terminals, Gershen said, so jobbers can easily purchase biodiesel and drive "down the road" to get petroleum, or vice versa.
 
 Quality has always been Tellurian's No. 1 priority, according to Gershen, and the biodiesel offered at the terminal must also meet the company's standards. It will only sell BQ-9000 certified biodiesel and plans to have the terminal BQ-9000 certified as a marketer within the first six months of operation. Because of its quality demands, Tellurian must import some supply from out-of-state. However, Gershen said the company would like to become an all-California terminal in the future. 
 
 Tellurian and Golden State Foods partnered early this year to form Encore Biorenewables, a biodiesel production company that plans to open its first facility in southern California. Once operational, Gershen said the plant will supply at least some of the terminal's needs.

Tellurian, Golden State Foods open storage/distribution terminal

New York and Illinois farmers are getting a closer look at pennycress this winter as cooperators in on-farm trials explore the plant's biodiesel feedstock potential. 
 
 Researchers at the USDA's National Center for Agricultural Utilization Research in Peoria, Ill., first identified the common weed, also known as stinkweed and frenchweed, as a potential oilseed crop with good biodiesel properties. Their initial work indicated that field pennycress can yield 2,000 pounds per acre, contains approximately 36 percent oil and doesn't present the shattering problem that often occurs with wild plants tapped for domestication. The oilseed, a winter annual, would be planted in the fall and harvested the following spring, potentially creating a winter cash crop that doesn't interfere with existing corn and soybean rotations.
 
 In Illinois, Sudhir Seth, president and chief executive officer of Biofuels Manufacturing Illinois Inc., said the farmer response to a series of meetings cosponsored by his company, NCAUR and Western Illinois University to recruit growers was positive. "We hope to have 150 acres planted this fall in two- to five-acre plots," he said. Biofuels Manufacturing Illinois plans to build a 45 MMgy biodiesel production facility in Mapleton, Ill., using pennycress as a feedstock. 
 
 In New York, Innovation Fuels Inc. is cooperating with Morrisville State College to conduct on-farm trials seeding 10 acres of pennycress in five locations in upstate New York. "We're really pleased with the oil," said John Fox, president of Innovation Fuels. "We've made some biodiesel from the pennycress and are making evaluations now." The initial analysis shows good cold-flow properties, he said, which will make it an ideal blend with the company's current biodiesel production from waste oil, tallow and rendered fats. A grant application has been submitted, he added, but the partnership decided to move ahead with the project in order to get the plots planted this fall. Innovation Fuels operates a 40 MMgy biodiesel plant in New York Harbor and is developing two plants in upstate New York. The company also recently acquired a permitted site in Milwaukee from North American Biodiesel LLC. Engineering work is underway for a planned 50 MMgy biodiesel plant in the Milwaukee port, Fox said.

Field pennycress has yielded 2,000 pounds of oil per acre in research plots. With an oil content of approximately 36 percent, the weed shows promise as a biodiesel feedstock.

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Pennycress farm trials underway

Numerous international biodiesel projects have been announced in recent months, illustrating the industry's ability to move forward worldwide despite current market challenges. 
 
 Many of these new facilities, such as Green Biofuels Ireland Ltd., are choosing to use inedible and waste oils in place of more traditional vegetable oil feedstocks. Green Biofuels completed construction of Ireland's first commercial-scale biodiesel plant in June and reached full-scale production in mid-August. The 9 MMgy facility is located in Wexford County in the southeast corner of Ireland and is capable of transporting biodiesel by ship. While the plant will take in multiple feedstocks, Green Biofuels currently uses yellow grease and animal fats. According to Joe Byrne, the facility's operations officer, these feedstocks are not only cheaper than virgin oils, but also help to keep Green Biofuels out of the food-versus-fuel debate. The company plans to sell biodiesel to small distributors in Ireland and export the fuel to the United Kingdom. The $30 million facility was funded two years ago through bank loans and private investors. Byrne said that if his company was looking for funding today, they wouldn't be able to get it. 
 

 Pure Biofuels Corp. announced completion of its main biodiesel production facility in Peru on Aug. 18. The 52.2 MMgy plant is located at Port Calleo near Lima, and will utilize jatropha and algae as primary feedstocks. The plant includes a mooring facility capable of receiving Panamax vessels that can carry 6,600 tons of liquid cargo. The facility also features Peru's two longest underwater pipelines. The 2.5-mile pipelines connect to Pure Biofuels' tank farm for the receipt and delivery of raw materials. They also allow access to other fuels for blending and terminal services. Pure Biofuels currently cultivates jatropha and intends to meet 80 percent of its feedstock needs with company-owned and harvested jatropha by 2015. In addition, the company recently upgraded a 7 MMgy facility in Lima, Peru, to 10 MMgy, bringing the company's total capacity to 62.5 MMgy.
 
 In the United Arab Emirates, Emirates Biodiesel LLC plans to open its first commercial-scale biodiesel plant in 2009. Located in Al Ain, Abu Dhabi, the 3 MMgy facility will use waste cooking oil and other inedible oils as feedstocks. Emirates Biodiesel was founded by United Arab Emirates-based Ecobility Energy Solutions in May and funded by Alf Yad Ltd. LLC, a Dubai-based venture capital fund. The facility was scheduled to break ground in October and begin production in mid-2009, according to Karim Aly, managing partner of Ecobility Energy Solutions.
 
 Other facilities, such as Brazil-based Integrated Biodiesel Industries Ltd., plan to utilize virgin vegetable oils. On Sept. 3, IBI announced its acquisition of a biodiesel process unit that will become part of the company's second facility in Argentina. The new unit uses a second-generation biodiesel production technology that has no reactors or moving parts. 
 
 Although the plant features a dry biodiesel purification process that can operate with a variety of feedstocks, including vegetable oil and animal fats, the facility is expected to run exclusively on crude, degummed soybean oil. The 15 MMgy facility is expected to cost approximately $1 million, a fraction of what a traditional plant would require.

Various international biodiesel projects underway

Everyone is talking about sustainability-sustainable energy, sustainable food, sustainable economy. It makes sense. We are living large, and if we could only sustain our current way of life, how great would that be?
 
 Unfortunately, few true sustainability models condone our current lifestyle. They inevitably will require us to change our ways of getting around, operating our businesses, disposing of waste and even eating. If asked, most people would probably say they'd lay down their lives for their children, but would they drive a smaller car or spend a few dollars more for cleaner-burning fuel? 
 
 A speaker at the second annual Texas Biodiesel Conference & Expo, held in Austin, Texas in mid-September, defended America's right to 25 percent of the world's energy (despite the fact that we produce only 3 percent of the world's oil supply) by touting U.S. contributions in technology. No statistics were given as to how much of that technology was donated to the rest of the world, and I suspect our inventors and investors have gained at least as much as they contributed. America's position as a global leader must now involve taking the lead in living more sustainably, not defending our right to "business as usual."
 
 I'm not an economist, but it's clear from recent headlines that our current system of buying and selling big businesses, without concern for producing real products or services, is crashing our economy. In September, comedian Craig Ferguson lambasted the Wall Street bailout and questioned what these "rich people" actually contribute. If they make something, even if they invest in businesses that make something, that is OK, he ranted, but making a profit just by moving money around? It was hilarious the way he described the $3,600-per-taxpayer bailout, but in reality, it's no laughing matter. 

 
 The spreadsheet business trend perpetuated by those who profit solely on stock sales and exit strategies is apparent in the biofuels industry. It should scare all of us that billions of dollars have been invested in the idea of a silver bullet-can you say hydrogen fuel economy?-with no resulting solution to global warming. A lot of folks got rich in the process, though.
 
 It's time to come down to Earth and get back to what is real. In the biodiesel industry especially, it should be fairly obvious. Build a biodiesel plant, use locally available resources as much as possible, sell fuel back to your community, and contribute to the triple bottom line. You make money, the farmer makes his or her margin, and the local fuel station sells a better product and makes a profit. The community's economy benefits, carbon emissions are decreased and the system creates true energy security. It's not a get-rich-quick scheme, not spectacular or all-encompassing, not even terribly sexy, but it's real and honest. 
 
 Do we have the political will and the common sense to get back to basics and support community business successes, at least with maybe a portion of what we are giving to Wall Street for its failures? 
 
 There is still time for our industry to do the right thing. The Sustainable Biodiesel Alliance is leading the discussion on sustainability in biodiesel and should be commended for its nationwide, multi-stakeholder, inclusive process in developing principles of sustainability for our industry. In that process, SBA Executive Director Jeff Plowman tells me he's discovering consensus among national and state policymakers, environmental departments and organizations, community activists, businessmen actually running biodiesel companies, and even investing organizations that community-based production and distributed generation is the way to go. 
 
 Impressively, attendees of the SBA's Sustainable Biodiesel Stakeholders Summit held in September included the U.S. EPA, the U.S. DOE, the National Biodiesel Board, the European Biodiesel Board and the Roundtable on Sustainable Biofuels, among others. For all intents and purposes, it seems we could be headed in the right direction after all. Is it possible that the conscience the industry started with is still alive and kicking? 
 
 Kelly King is vice president of Pacific Biodiesel Inc. Reach her at <a href="mailto:ktk@biodiesel.com">ktk@biodiesel.com</a> or (808) 877-3144.

Sustainability is Key for Biodiesel Industry

Web exclusive posted Oct. 16, 2008 at 3:33 p.m. CST 

 
 New Generation Biofuels Holdings Inc. has announced its first sale to an industrial heating customer. In the contract New Generation Biofuels will supply Taunton State Hospital in Taunton, Mass., 180,000 to 220,000 gallons of its renewable biofuel over 12 months. 
 
 New Generation Biofuels holds the North American, Central American and Caribbean license for a technology developed by Italian inventors Ferdinando Petrucci and Andrea Festuccia, which uses an emulsification process rather than a traditional transesterification process. Festuccia serves as chief technology officer for New Generation Biofuels. The company has patents pending on the technology, according to Phil Wallis, chief marketing officer for New Generation. The process uses water and additives that atomizes the oil feedstock and holds the fuel together in a stable emulsion. Wallis said the fuel is closer to a straight vegetable oil than to either a methyl ester or hydrogenated renewable diesel. The process is feedstock neutral. 
 
 "Sustainability is a high priority for the hospital," said Massachusetts Department of Mental Health Director of Engineering and Facilities Management Ken Lortie. "Working with New Generation Biofuels will give us the opportunity to continue to be at the forefront of technology and contribute to a healthier environment." 
 
 In July, Mass. Gov. Deval Patrick signed the Clean Energy Biofuels Act, mandating that all diesel and home heating oil sold in the state contain at least 5 percent biofuel by 2013. 
 
 "We are excited to have Taunton State Hospital on board," said David Gillespie, New Generation Biofuels chief executive officer and president. "They are environmental leaders who understand the importance of using a clean, efficient fuel. Our biofuel has demonstrated significant overall greenhouse gas emission reductions as well as local air pollution reductions including nitrogen oxide and sulfur oxide. In addition, our fuel can be used as a 100 percent fuel switch with no modification to a customer's equipment."
 
 Sept. 15, the company announced it has secured a site at the port location of Atlantic Terminaling in Baltimore, M.D., for a 25 MMgy production plant. It expects to complete arrangements and be operational in the first quarter of 2009.

New Generation Biofuels lands first heating customer

The word "rutabaga" had never been used in biodiesel feedstock vernacular until Michigan State University Professor Christoph Benning began studying genetically modified rutabagas as a potential oil source. The implications of his work on the cold-resistant root crop suitable for northern climates, could be huge. 
 
 Oilseed plants produce oils in seeds that are developed in very short time period in a plant's life cycle. "If you look at a root crop-sugar beets or rutabagas-they photosynthate into biomass during the entire growing season," Benning said, so the idea is to genetically modify rutabagas to produce oil instead of starch in green and root tissues. This would produce more oil throughout the whole life cycle of the plant instead of just during seed development. "I was looking for a plant that was a close relative of the arabidopsis-one that had a big, starchy storage organ," he said. The arabidopsis plant was the first flowering plant to have its entire genetic code sequenced. This led him to the rutabaga, which is the same species as canola and rapeseed.
 
 Benning's work involves expressing a gene called Wrinkled1 found in mutant arabidopsis plants. The gene controls carbohydrate metabolism and has been shown to increase oil yield in canola seeds. Benning inserted it into rutabagas to prevent starch production, yet promote oil biosynthesis. Between 30 and 50 modified rutabagas are growing in a greenhouse now, and results are expected soon. "If we can convert all the starch to oil, we're talking about a potential of a two- or three-fold [oil] yield increase," he said. 
 Rutabagas yield approximately 20 tons per acre, 80 percent of which is water weight. On a dry-matter basis, an acre yields approximately four tons, half being starch. So, if two tons of starch per acre are converted to oils, this equates to roughly 525 gallons of oil per acre compared with 160 gallons of oil yield per acre from canola. "If this thing works, it could be the end of canola because everything we could do with canola, we could do better with rutabagas," he said.

Genetically modified rutabagas could be an oil feedstock for biodiesel production.

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Michigan State professor explores oil-rich rutabagas

If the American biodiesel industry ramps up production in order to meet the federal renewable fuels standard mandated for 2009, an influx of crude glycerin will enter the market. 
 
 Despite continued demand for crude glycerin in the export markets-particularly from China-U.S. biodiesel producers must find alternative markets for the byproduct, which is prohibitively expensive to purify for industrial uses. To better accomplish this, research is being conducted to explore alternative methods for refining crude glycerin in order to handle future supply.
 
 Zhiyou Wen, an assistant professor of biological engineering systems at Virginia Tech's College of Agriculture and Life Sciences, and his team of scientists have discovered a novel fermentation process using crude glycerin to produce omega-3 fatty acids in microalgae. After the fatty acids are produced, the algae can then be used as animal feed. This mimics a natural process in which fish, the most common source of omega-3 fatty acids for humans, eat the algae and then retain the healthful compounds in their bodies. "We have shown that it is possible to use the crude glycerol byproduct from the biodiesel industry as a carbon source for microalgae that produce omega-3 fatty acids," Wen said. "After thorough chemical analysis, we have also shown that the algae biomass composition has the same quality as the commercial algae product." Wen partnered with Steven Craig, senior research scientist at Virginia Cobia Farms, to use crude-glycerin-derived algae as fish feed. "The results so far have been promising," Wen said. "The fish fed the algae had significant amounts of omega-3 fatty acids."
 

 Des Moines, Iowa-based Bratney Cos., in partnership with German biodiesel technology provider Cimbria Sket GmbH, introduced an improved glycerin refining process that is capable of removing odor from the final product. The technology would benefit current and future biodiesel producers wanting a consistent product and increased profit because glycerin tends to be discriminated against in the market due to its odor. "With Cimbria Sket's latest improvement to our industry-leading glycerin technology, we can now offer refined glycerin that not only meets United States Pharmacopeia requirements but also is guaranteed to be odorless," said Paul Brown, a Bratney Cos. spokesman.
 
 Meanwhile, Monarch Petroleum Inc., a wholly owned subsidiary of Voyager Petroleum Inc., announced that it will begin processing crude glycerin for biodiesel producers at its 20,000-square-foot facility in Detroit. Monarch's process involves separating glycerin, fatty acids and biodiesel, as well as neutralizing catalysts, and removing water and alcohol. The company plans to charge a tolling fee for the service. According to Sebastien DuFort, chief executive officer of Voyager, the company may expand its process to further refine the separated glycerin so that manufacturers can utilize a higher grade of glycerin to their fullest cost advantage, which should result in higher margins. "By expanding our processing capabilities, we can tailor each batch to run on the input material mix," he said. "Glycerin is an environmentally friendly substitute for common petrochemicals on the market. We want to be ahead of the market needs by providing the capability to process crude glycerin."

Researchers seek to improve glycerin usage, quality standards

In the 60s, Ike and Tina Turner tore up the R&B charts with hit songs such as "Land of 1,000 Dances" and "Proud Mary." 
 
 In September, Hurricanes Ike and Gustav formed a volatile duo and tore up the Texas coastline with devastating force. With two major hurricanes leaving their mark on the Gulf Coast this summer, the area faces serious challenges in rebuilding. 
 
 The majority of the plants are concentrated in the greater Houston area. When Hurricanes Ike and Gustav struck, I asked National Biodiesel Board staff to contact our members in the area to offer support and see how they fared. 
 
 Luckily, the majority of the plants in the area reported that they sustained only minor damage in the storms and are up and running again. In fact, Renewable Energy Group held the grand opening for its Houston-area facility just days before Hurricanes Gustav and Ike, but fortunately they fared very well. REG reports that it enacted its hurricane preparedness plan, and the plant itself sustained very little physical damage. Biodiesel production was able to begin again just a couple of days later. 
 
 Other plants sustained more damage and faced some disruption. The Houston ship channel was inaccessible for a time, making full operation impossible for some biodiesel businesses. Huish Detergents reported no damage to its plant, but it did have trouble getting trucks in and out. Others told us that even though they were on the ship channel, they were built high enough so as not to sustain any damage.
 
 Some producers, such as Agribiofuels, said the problem was not with any damage, but more with the hurricanes having a negative impact on the market. "Hurricanes Gustav and Ike got people to lay off on buying product," said Edward Gaiennie of Agribiofuels. "They are focusing on new priorities like cleanup and may also not be operating their businesses 
 fully again, lessening the need for fuel." 
 

 Some plant representatives said that they were able to come to the aid of others and provide biodiesel when diesel was harder to come by in the weeks following the hurricane. 
 A few days after Ike, I was in Texas to attend the Biodiesel Coalition of Texas' Texas Biofuels Conference & Expo. I had hoped to travel from Austin to Houston to personally check in with some of our members there. But I scrubbed plans to go to Houston after deciding that my visit during the cleanup process might be more of a nuisance than a help.
 We also tried to stay in touch with our Texas members through our friends at BCOT, including Mike Nasi and Jess Hewitt. BCOT Chairman Jess Hewitt, president of Gulf Hydrocarbon, also serves as NBB's marketing committee chairman. 
 
 "As we can tell from the summer of 2008, hurricanes will be part and parcel of life on the Gulf in Texas," Hewitt said. "We're proud to be a part of the NBB family and we're proud that BCOT members have responded so well in the face of adversity." 
 
 I was glad to see Jenny Ligums-Leonard of Galveston-based BioSelect in Austin at the BCOT conference. She reported that while they were still recovering from flood damage and power outages, the physical damage to the plant could have been much worse.
 
 Texas' Gulf biodiesel operations are significant, making up the majority of biodiesel capacity in the state. Not only does Texas have the largest biodiesel production capacity, but its Gulf operations address various biodiesel markets. Texas is an important focus of the NBB's state regulatory program, which is why we work very closely with BCOT on the very active government affairs efforts in the state. In response to Gov. Rick Perry's request immediately after the hurricanes hit, U.S. EPA Administrator Stephen Johnson temporarily waived TxLED requirements, which provided some regulatory relief to aid in getting fuel into and out of damaged areas.
 
 To those companies we have not heard from, we extend our regards for the best. If you faced any damage, we hope you'll be up and running again soon. We admire that overall the biodiesel industry in Texas continues to stand strong despite a forceful natural disaster, proving its fortitude. It mirrors how the biodiesel industry continues to persevere in the 
 face of wave upon wave of economic, political and technical challenges over the past year.
 
 It is that fortitude, the kind shown repeatedly by our friends in Texas, which helps us continue to weather the storms.
 
 Sincerely,

 Joe Jobe
 Chief Executive Officer 
 National Biodiesel Board

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Ike, Gustav Leave Mark on the Gulf

The Center for Evergreen Energy is hosting a symposium focused on feedstocks for biodiesel. Taking place at the prestigious Donald Danforth Plant Science Center in St. Louis, the symposium will address current challenges in biofuels feedstock research and production. Roger N. Beachy, president of the Donald Danforth Plant Science Center, will facilitate the Nov. 21 event. 
 
 Biodiesel producers, marketers and feedstock producers will hear from presenters including Monsanto, NASA, Enterprise-Rent-a-Car Institute and the National Biodiesel Board, as well as scientists from the Center for Evergreen Energy and Danforth. Participants will address feedstock production, oil content and innovation. For the purpose of the symposium, feedstocks will be separated into three categories: algae, near-term and long-term feedstocks. At the end of the day, policy recommendations will be provided that will help fulfill future biodiesel goals. 
 
 "Increased availability of diversified feedstocks used in biodiesel is vital to the future growth of the biodiesel industry," said J. Alan Weber, economic consultant for the NBB. "This symposium grew out of a need to explore alternatives and educate the biodiesel industry on the short-and long-term future of feedstocks." 
 
 The Center for Evergreen Energy is a think-tank for biofuels advancement formed by the Donald Danforth Plant Science Center and the St. Louis Regional Chamber and Growth Association. The center's mission is to make "credible, innovative and long-lasting contributions to the nation's renewable energy industry."

Feedstock symposium looks at feedstock sources

It was a beautiful fall day when the National Biodiesel Board opened its new "green" headquarters in Jefferson City, Mo. About 150 people attended the grand opening, including some who were curious to see the building's many eco-friendly features.
 
 "Our industry plays a critical role nationally in meeting our energy needs, creating thousands of green jobs and millions of gallons of clean-burning fuel," said Joe Jobe, NBB chief executive officer. "Our rapid industry growth was reflected in our staff growth, prompting the need for new headquarters." 
 
 The new office houses 17 NBB employees. The NBB completely renovated the building using eco-conscious practices, such as carpet made from recycled materials, solar-powered parking lot lights and nontoxic paint. The building also has many technological capabilities, such as worldwide video conferencing. 
 
 Since its 1993 founding, the NBB has been located in Missouri. The state's commitment to the NBB was apparent at the opening, which was attended by Missouri Gov. Matt Blunt, U.S. Rep. Kenny Hulshof and Jefferson City Mayor John Landwehr. As a major farming state, Missouri dignitaries praised farmers for their efforts. "Never underestimate the ingenuity of the American farmer, who can provide both food and fuel from right here in the heartland, while cleaning up the air we breathe," Hulshof said.
 

 Missouri representatives were joined by nine NBB member-leaders from throughout the country in cutting the ribbon and planting a symbolic tree to open the new building. 
 In remarks before the ribbon-cutting, NBB Chairman Ed Hegland, a soybean farmer from Appleton, Minn., said that oil and gasoline prices would be about 15 percent higher if biofuel producers were not increasing their output, according to a U.S. DOE estimate. 
 
 Hulshof may have said it best, "I truly believe biodiesel is a sustainable fuel that is a vital part of our energy solution."

NBB opens "green" building

The National Biodiesel Board has been named a primary recipient of the USDA Biodiesel Education Program grant. The 2008 Farm Bill authorized the extension of the five-year program, which began in 2003. The NBB will continue to build upon its accomplishments from the first program. 
 
 The Biodiesel Education Program provides a valuable opportunity to help steer America away from foreign oil and toward American agriculture as a flourishing source of energy. Five years ago, as an original recipient of the program, the NBB set out to achieve increased availability, greater original equipment manufacturer (OEM) support and broader public awareness. All of these goals were accomplished, as seen in the executive summary under "Programs" on <a href="http://www. biodiesel.org/usda">www. biodiesel.org/usda</a>. 
 
 In 2003, the U.S. biodiesel industry sold 20 million gallons of pure biodiesel. In 2007, that number had increased by 2,400 percent to 500 million gallons. Widespread availability of biodiesel improved dramatically, thanks in large part to the NBB's petroleum outreach program. The number of distributors carrying biodiesel grew from 800 to 1,500. Retailers carrying biodiesel grew from 200 to 1,100. Further, several major OEMs, such as Chrysler, New Holland and John Deere, announced approval of a 20 percent blend of biodiesel either across the board or in specified vehicle models. 
 
 Consumer research shows that awareness of biodiesel jumped significantly during the life of the USDA Biodiesel Education Program. The first survey in 2004 found that 27 percent of Americans were familiar with biodiesel. In January 2008, that number had jumped to 65 percent and today has increased further to 69 percent. 
 
 Under the new program, the NBB will focus on continuing to expand these efforts, as well as an aggressive feedstock development program, trucker outreach, diesel mechanics training and education, Fleet Fuel Quality Education and Quality Assurance Programs, and other areas where vital education is needed. The University of Idaho also received continued funding through the USDA program

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NBB's education efforts ramped up by USDA

When the going got tough the biodiesel industry stepped up to the challenges. The National Biodiesel Board has made progress combating many of the industry inaccuracies that arose in the past year, and will continue to fight the battles that will help advance renewable, sustainable fuel to the market. 
 
 To that end, the organization has added public relations representation in Washington, D.C. In order to step up the focus on communications that directly affect federal legislative issues, the NBB is pleased to announce that Michael C. Frohlich has been named the NBB¡¦s Washington, D.C., director of communications. The position expands the NBB¡¦s Washington, D.C., office. It also expands the NBB¡¦s existing communications efforts, which are based in Jefferson City, Mo., with Director of Communications Jenna Higgins-Rose and Communications Specialist Amber Pearson. 
 

 Frohlich has six years of communications experience in Washington, D.C. He served as communications director and chief spokesman for U.S. Rep. Randy Neugebauer of Texas. In Neugebauer¡¦s office, Frohlich worked with local and national media on energy and agriculture issues. 
 
 ¡§Michael has diverse experience and knowledge in the communications field,¡¨ said Manning Feraci, NBB vice president of federal affairs. ¡§I have no doubt he will be a valuable asset to the NBB and its members.¡¨ ƒ¬

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NBB creates Washington, D.C., communications position

Retailing biodiesel blends is easier than ever, according to Jess Hewitt, president of Houston-based Gulf Hydrocarbon Inc. and chairman of the NBB Marketing Committee. A recent change in the law ensures that gas station franchises can't prohibit franchisees from selling biofuels. "This has been a critical step in ensuring that petroleum marketers have the power to make their own business decisions and respond to market demand for biodiesel," Hewitt said. 
 
 Branded retail franchises now have more power to determine their product mix while helping the nation meet the renewable fuels standard of 36 billion gallons per year by 2022. B20 biodiesel blends can now be sold under the canopy. 
 
 The 2007 Energy Independence and Security Act recently expanded the use of renewable fuels by increasing usage standards. It also lowered barriers for branded retailers to sell renewable fuels. An amendment to the Petroleum Marketing Practices Act states that branded petroleum refiners and distributors cannot prohibit a franchisee from selling renewable fuels including B20, nor can the branded fuel supplier stop the franchisee from advertising biodiesel.
 
 The changes apply to distributors and retailers signing new franchise documents, such as branded supply agreements and leases, after December 2007. Under provisions in the new law, franchise-related documents shall not contain any provisions restricting the franchisee or any affiliate of the franchisee from:
 
 › Installing a renewable fuel pump or tank› Converting an existing tank or pump for renewablefuel use, as long as the tank is either warranted or certified for use with renewable fuels
 
 › Advertising the sale of renewable fuel
 
 › Selling renewable fuel on the marketing premises of the franchisee
 
 › Purchasing renewable fuel from sources other than the franchisor if the franchisor does not offer its own renewable fuel

 
 › Listing renewable fuel availability or prices on service station signs, fuel dispensers or light poles
 
 › Allowing for payment of renewable fuel with a credit card.
 
 However, the refiner or distributor can place "reasonable requirements" on the franchisee. For example, franchisees remain prohibited from mislabeling, misbranding or violating the franchisor's trademark.
 
 The revision to PMPA makes it much easier for owners of franchisee gas stations, service stations and truck stops to provide biodiesel even if the branded refiner or distributor does not supply it. This barrier has been lifted and franchises can make the choice based on customer demand.

Barriers reduced for selling biodiesel at franchised stations

Steve Howell, president and founder of MARC-IV Consulting and NBB technical director, was selected as a 2008 recipient of the American National Standards Institute Meritorious Service Award. Howell was heavily involved in the International Biofuels Forum Tri-Partite specification over the past year, representing the NBB technical program. He was recognized for his significant contributions to national and international standardization activities, as well as his ongoing commitment to the biodiesel industry and the enhancement of the global voluntary consensus standards system. 
 
 Howell was one of only six individuals who received the Meritorious Service Award. An awards ceremony was held Oct. 22 in Bethesda, Md.

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Howell recognized for specification contributions

Register now for the National Biodiesel Conference & Expo to save $100 or more. The Early Bird registration, available at www.biodieselconference.org, ends Nov. 14. The 2009 conference will be held Feb. 1-4 in San Francisco.
 
 The National Biodiesel Board's "Leading Change Now"-themed event will again feature renowned speakers, valuable educational seminars and exciting networking opportunities. In addition to the traditional Technical, Regulatory, Markets/Users, Production, Petroleum and Original Equipment Manufacturers educational tracks, a Sustainability track will be added. 
 
 For detailed information and to register, please visit <a href="http://www.biodieselconference.org">www.biodieselconference.org</a>.

The early bird gets better rates for NBC '09

Biodiesel plants under construction are faced with a plethora of pressures associated with the project development and construction process: feedstock costs and availability, building material costs and availability, project deadlines, equipment delivery deadlines, etc. These challenges are compounded by macroeconomic factors such as the federal government's solution to a financial crisis that has plagued the U.S. economy for the past several months. The unfortunate circumstance has not only resonated within the housing market and general public, but the lack of funding available in the liquidity markets has also made it difficult for future biodiesel producers to gain additional funding for building materials, employee salaries and so forth.

 
 Despite the inevitably challenging building climate, there are two new additions to this month's plant construction list, which brings the total number of plants under construction to 17 with a combined production capacity of 365 MMgy. Both were discovered while compiling data for BBI International Inc.'s biannual biodiesel plant wall map.
 
 Channel Chemical Corp. is in the process of building a 20 MMgy, multi-feedstock production plant in Gulfport, Miss. The company, which has been producing fuel oil chemicals for nearly 20 years, plans to start biodiesel production at an initial rate of 5 MMgy by the end of the year, according to spokesman Brian Reid. He said plans are to increase to full capacity in early 2009.
 
 Simple Fuels Biodiesel, a 2 MMgy facility in Vinton, Calif., intends to use yellow grease as its primary feedstock. According to a company spokesman, fittings for various pipe components and storage tank parts were en route to the site at press time in preparation for start-up in early November. The project recently resumed construction despite delays attributed to permitting issues during the initial design and development work, which began in 2005. 
 
 As previously mentioned, Biodiesel Magazine's editorial staff completed its 2008 U.S. and Canada Fall Biodiesel Plant Map in late September. We confirmed that 113 plants are currently producing. Although not all are producing at full capacity, they equal a potential combined capacity of 1.85 billion gallons. We also confirmed that 31 plants with a total production capacity of 409 MMgy are currently idle. Several cited high feedstock costs as the reason. There were 21 plants that our staff attempted to contact with no response. These facilities, labeled "unconfirmed" on the map, represented 392 MMgy of production capacity. 
 
 Some interesting, but perhaps expected, changes became apparent after compiling the map data. For example, the number of plants using multiple (more than two) feedstocks rose to 55 percent, overtaking soy oil (30 percent) for the first time. These statistics exclude unconfirmed plants. 
 
 The map has been mailed as a supplement to the November issue of Biodiesel Magazine. A rolled wall map may be purchased through BBI International's store at <a href="http://www.store.bbiinternational.com">www.store.bbiinternational.com</a>.

Industry Makes Headway Amid Financial Turmoil

Promoters were hoping 2008 would put camelina at center stage with a big boost in acreage to demonstrate its viability as a biodiesel feedstock. Wheat prices three times higher than those of recent years proved to be too hard to compete with. It is difficult to know just how many acres were seeded to camelina this past season as there is no official reporting mechanism in place, and the handful of companies contracting with growers consider their acreage numbers privileged information. Estimates of the 2008 acreage range from as low as 10,000 acres upward to 75,000 acres in the United States, with a much smaller acreage estimated in Canada. That's a far cry from the 2 million acres cited as near-term goals for the two biggest companies promoting camelina, but with yields of 2,000 pounds per acre and seeding rates of 3 to 5 pounds per acre, camelina production could ramp up quickly. For comparison, U.S. farmers planted just over 1 million acres of canola in 2008 and Canadian producers grew a record 15.5 million acres, according to the USDA's July Oilseed Crop Outlook report. U.S. soybean acres topped 74.5 million acres seeded in 2008.
 
 Even though acreage didn't expand this year as hoped, another year of experience with the new oilseed has promoters convinced it's a viable crop for the dryland farming region centered in Montana and neighboring states and provinces. "Camelina is the most promising oilseed crop that's come along in my career," says extension agronomist Stephen Guy, who just recently moved from the University of Idaho to Washington State University. At Moscow, Idaho, he has seen average yields of more than 2,000 pounds per acre and up to a maximum of 2,400 pounds per acre. The 2008 crop yields, however, were hurt by an unusually wet spring that delayed planting. "Early planting is critical to good yields," he adds.
 

 Camelina is an oilseed with great promise as a biodiesel feedstock. In addition to good yields in dryland conditions, camelina has low input requirements, contains 30 percent to 40 percent oil, needs a short growing season of 85 to 100 days, has exceptional cold tolerance, and utilizes existing equipment for production and harvest. Two companies hoping to produce substantial volumes-Great Plains-The Camelina Co. and Sustainable Oils Inc.-each intend to have 1 million acres seeded to camelina within the next three to five years. 
 
 The companies landed important backing last year to help with their efforts to ramp up camelina production. Sustainable Oils is the product of a joint venture between Seattle-based Targeted Growth Inc., a biotech seed development company, and Houston-based biodiesel producer Green Earth Fuels LLC. Green Earth operates a 90 MMgy biodiesel plant in the Houston shipping channel. Montana-based Great Plains landed an equity partnership with INEOS Enterprises, a U.K. manufacturer of specialty chemicals and oil products that has an 80 MMgy biodiesel plant in France with a goal of expanding capacity to 600 MMgy in the next five years. 
 
 Camelina Benefits in the Field
 The biggest selling point for camelina is its impressive yields even when it's produced in areas that receive low amounts of rainfall. That was proven during a field trial in eastern Oregon, which compared camelina and canola side-by-side, according to Richard Cooley, director of operations for Great Plains in the northwestern United States. The camelina yielded 2,300 pounds per acre while the canola yielded 1,000 pounds per acre. "It shows camelina's ability to yield exceptionally well in marginal areas," he says. "That area [where the trial was conducted] is a 9-inch [annual] precipitation zone." Although the yield potential is there, first-time growers will often see yields between 800 pounds and 1,500 pounds per acre, while experienced growers get between 1,500 pounds and 1,800 pounds per acre on average, says Duane Johnson, vice president of agricultural development for Great Plains. 
 
 Camelina sativa is a broadleaf crop in the Brassica family and is considered to be a much-needed rotational crop for winter wheat, as it can help to break weed and pest cycles. 
 
 Dryland farmers in the Western United States rely upon an alternating crop-fallow system and count on the fallow year to build moisture reserves in the soil profile for the next wheat crop. Many are not ready to risk jeopardizing yields by adding a crop in the fallow year. "We think we could take a camelina crop off at the end of June or the first of July, and have two or three months to replenish the soil moisture enough to germinate the winter wheat crop," Johnson says. He worked on camelina as an agronomist with Montana State University before leaving to join Great Plains to help commercialize the crop. More trials need to be conducted to prove that camelina will boost the yield on a following wheat crop and offset the moisture used. The Great Plains studies indicate that the rotational affect could boost yields as much as 15 percent. Guy expects further studies on camelina will confirm that it provides the same positive rotational benefits that other Brassicas have demonstrated in rotations with winter wheat.
 
 There is much to be learned about the crop and its best management practices as production expands beyond Montana. Johnson says camelina appears to offer a great deal of flexibility for planting dates-from late October through the end of March. It can be broadcast into no-till fields if the seed is harrowed into the stubble, or it can be drilled, which is the preferred spring planting method. If the ground is frozen, the drill can be set to lay the seed on the soil. Some growers have even experimented with drilling through 3 to 4 inches of snow. Guy has heard reports of producers experimenting with broadcasting the seed on top of snow, only to discover it germinated on the snow in the spring and died before making contact with the soil. Obviously, the crop is extremely cold tolerant, Guy says. "We've had reports of the crop surviving temperatures down to 16 degrees Fahrenheit." 
 
 Camelina is also attractive because of its low input requirements. As Cooley points out, white winter wheat growers in the Pacific Northwest are concerned about nitrogen costs of $1 per pound, which would make it uneconomical to grow if prices should retreat. "The idea of camelina only requiring 50 pounds of nitrogen per acre is exciting when you're looking at three times that with canola," he says. Another advantage, when compared with canola, is that although they are both in the Brassica family, camelina is resistant to the flea beetles and aphids that can cause havoc with canola crops. 
 
 On the downside, there are no herbicides currently registered for use with camelina. While it is a competitive crop and appears to have some alleleopathic tendencies, which means the crop suppresses weeds naturally, it needs to be seeded into a clean field to get off to a good, weed-free start. Another potential problem reported by some Montana growers is that camelina is affected by downy mildew under humid conditions, but as is the case with many observations about the new crop, others say they have not seen the same degree of susceptibility.

 
 Expanding Interest
 With the promising results from crops planted in Montana and neighboring states, interest in camelina is spreading. The partners in Sustainable Oils are paying close attention to research being conducted in dryland systems in Texas and New Mexico, and further east as a winter crop in North Carolina, South Carolina and Georgia. Don Panter, president of Sustainable Oils, says preliminary trials in the Southeast showed good results. "It's a pretty neat fit," he says. It's a biodiesel feedstock that could replace winter cover crops that provide no economic benefit to farmers. 
 
 Further north in Pennsylvania, Joel Hunter, Pennsylvania State Cooperative Extension says a little more than 300 acres were grown in 2008. "We had more guys interested in trying it than we had seed," he says. However, when commodity markets shot up, half the farmers pulled out of the project and switched to tried and true crops, he adds. Hunter says growers launched the project to utilize a small mothballed crushing plant in the area to supply the regions' new biodiesel producer Lake Erie Biofuels LLC, a 45 MMgy multifeedstock facility that started production a year ago. The results from the first-year farm trials were disappointing, Hunter says. Late planting resulted in yields of just over 1,000 pounds per acre. The experiments will continue this year. In one field, a volunteer stand of camelina that emerged after a mid-summer harvest was left to determine if two crops could be raised in one season. A few acres will be seeded late this fall to test the dormant seeding concept, and more acres will be planted early next spring to continue the farm demonstrations and learn more about its performance in the east.
 
 Other efforts to introduce the crop have been reported as well. Blue Sun Biodiesel in Golden Colo., has received a state grant to develop camelina production practices for the area. SeQuential Biofuels LLC in Salem, Ore., is sourcing camelina from a group of growers in eastern Oregon who are processing the oil at Willamette Biomass Processors Inc. in Rickreall, Ore. 
 
 Biodiesel Performance
 As biodiesel producers large and small begin to process the oilseed into biodiesel, the crop's processing performance echoes its agronomic promise. Great Plains says they have provided oil to several partners to produce about 500,000 gallons of biodiesel with good results. City-Biofuel Ltd., is one of the cooperators, and has produced about 2,000 gallons of biodiesel from camelina, says Quak Lee, plant manager. City-Biofuel started production this summer at a 2.5 MMgy biodiesel plant in Delta, British Columbia. Lee says the raw oil needs degumming before processing, but camelina produced a biodiesel that meets ASTM standards. Lee, a chemical engineer, says tests show the oxidative stability also meets ASTM standards, and the biodiesel has good cold-flow properties with a pour point of minus 25 degrees Celsius (minus 13 degrees Fahrenheit), cloud point of minus 15 degrees C (minus 5 degrees F) and cold-filter plugging point of minus 3 degrees C (minus 27 degrees F).
 
 Great Plains' equity partner agrees camelina biodiesel has good cold-flow properties. "It also has low phosphorus, which means that the oil is easier to process compared with other biodiesel feedstocks available in North America," says Alan Rodgers, international director of biofuels for INEOS. "Besides those key differences camelina oil performs very similar to soybean oil." INEOS considers camelina to be a highly sustainable feedstock for biodiesel production. "It will allow land not currently used to be brought back into production in many arid areas," he says. "A further benefit is provided through the camelina meal that remains after crushing, which is a protein-rich animal feed. INEOS views camelina as a perfect fit with our ongoing expansion program in biodiesel and provides us with a platform for further development in this very important area, particularly in the American market." 
 
 Green Earth believes camelina fits into its expansion plans to supply the California market when its anticipated low-carbon standard takes effect. "What's exciting for us is seeing the interest [in camelina] spreading," says Jeff Trucksess, Green Earth's executive vice president for regulatory and government affairs. "As farmers try camelina you see the acres grow almost on a zip code by zip code basis."

 
 "The traditional farm belt has been the pioneer in the biofuels industry, and their improvements are coming from improving yields," Trucksess says. "But increasingly people understand the future is going to be in feedstocks like algae, or jatropha or camelina and of these, camelina is the closest to being commercialized." 
 	
 Susanne Retka Schill is a Biodiesel Magazine staff writer. Reach her at <a href="mailto:sretkaschill@bbiinternational.com">sretkaschill@bbiinternational.com</a> or (701) 738-4922.

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A tiny seed, camelina is seeded at a rate of 3 to 5 pounds per acre. 

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Camelina has yet to make the scene as a biodiesel feedstock, thanks partly to high commodity prices that dampened farmers' interest in trying the new crop. Enough has been raised to test its biodiesel performance and promoters still praise its potential.

Oilseed Comes of Age

Most commercially produced crops have an extensive history involving domestication, research and development. For example, mankind has been working to improve corn for more than 5,000 years. Jatropha has no such history. While the plant has been used in various parts of the world for medicinal applications, soap production, a source of lamp oil, and to construct living fences, its potential for large-scale oil production for biodiesel has only recently begun to be explored.
 
 Jatropha research is underway in many locations around the globe, but no long-term comprehensive research has been completed on the cultivation of large monoculture plots. Furthermore, those involved in the plant's research and development have different opinions on what it will take to transform jatropha into an economically viable crop, and when the plant is expected to reach this benchmark. 
 
 Successful efforts to cultivate jatropha for use as a biodiesel feedstock are underway. However, most of this production is being done by individual farmers on a small scale. For example, European biofuels technology company D1 Oils is working with farmers in northeast India. It is estimated that nearly 60,000 hectares (148,263 acres) of jatropha have been planted in the region by nearly 60,000 different farmers each cultivating one or two hectares of the crop. The farming methods are labor intensive as they involve handpicking the crop, which may make it not viable for production in other areas of the world. 
 
 Although jatropha can grow in areas with marginal soil and little water, it does not produce significant oil yields under these conditions. To produce an abundant amount of oil, the plant must be cultivated in the proper location, watered and fertilized. In addition, the crop has no natural resistance to frost. Although specific U.S. climate zones within Hawaii, California and Florida may be able to support jatropha farming, it is expected that nearly all jatropha development will occur in areas closer to the equator. Countries in South and Central America, South Africa and select areas of Asia stand to benefit most from jatropha cultivation. A great deal of the land most suited to jatropha production is located within the borders of developing nations, so in those areas infrastructure issues, political stability, and economic environment may impact jatropha production. 
 
 Domesticating Jatropha

 Although these social, political and economic issues are important, more research is needed to develop the crop before growers will be comfortable planting it on a commercial scale. Some of the first challenges that need to be addressed are increasing the volume and consistency of oil yields, and developing plants with more standard fruit maturation rates. The availability of mechanical harvesting techniques and the development of coproducts will also enhance the economic viability of the crop. 
 
 "Lack of domestication is a legitimate concern, and it can be addressed," says Russell Teall, president of Biodiesel Industries Inc. Teall's company has been heavily involved in jatropha research, including the completion of a five-year feasibility study in India at the request of the United States and Indian governments. Teall says having a good genetic base to work with is important. With current plant selections farmers will see a bell curve in productivity. 
 
 Michael Poteet, an agronomist at the Hawaii Agricultural Research Center, has been conducting jatropha field trials for two years. The first step in his research project was to accumulate jatropha seeds from around the world and evaluate them for suitability in Hawaii's climate and soil conditions. "With the materials we are working with right now, there is not a lot in the way of superior planting materials," Poteet says. "It is such a variable plant. You will get some individual trees that are extraordinarily productive-large fruit clusters, very aggressive fruit production-but, it's really hard to get that uniformity repeated over and over across multiple acres of trees."
 
 Jatropha is a cross-pollinated plant, which means farmers can never be sure what they are getting genetically when planting from seeds. The most productive plants can be propagated using cuttings to create genetically identical plants. However, Poteet says jatropha that self-pollinates experiences high fruit abortion rates, where much of the fruit either drops from the tree or never reaches maturity. "You need some genetic diversity in place to get good yields," he says."
 
 One of the biggest challenges facing Global Energy Trading Co., an organization developing jatropha farms in Peru and Columbia, is the maturation rate of jatropha fruit. The fruit grows in clusters, much like grapes. However, unlike grapes, the individual fruit within the clusters mature at different rates, making mechanized harvesting a challenge. James Fanning, the company's chief executive officer, says getting fruit within the clusters to ripen uniformly is the key to making jatropha a manageable crop in terms of labor. 
 
 Research is being completed to address these problems, but will take some time to develop. Graham Prince, communication director at D1 Oils, estimates his company will be able to develop a jatropha hybrid featuring consistent yields, height, flowering and fruiting within the next five to 10 years. "We are in the beginning of domestication of the crop," he says. "I think the process is actually becoming quite rapid."
 
 While handpicking crops may make financial sense in some areas of the world, finding a way to mechanically harvest jatropha will be an important factor in developing the feedstock in industrialized nations. Poteet's organization has been exploring various ways to do this. Harvesters designed for coffee trees may work once the maturation rate of the fruit can be controlled. Another option Poteet is exploring involves harvesting all the biomass around the tree's parameter. This method would not only collect the fruit, but would induce more branching and flowering around the tree's exterior portions. Fruit could also be collected from the ground. Mike Reardon, owner of Farming Biodiesel Inc., a self-sufficient organic farm that grows jatropha near Desert Center, Calif., says he uses a modified nut shaker to drop ripe fruit to the ground. A vacuum system then collects the fallen fruit. 
 
 Developing Coproducts
 Coproduct development is another important element in turning jatropha into a viable feedstock for biodiesel producers. The high-quality seedcake leftover after oil extraction could be fed to livestock. However, it has a low-protein value and must be detoxified before being fed to animals. 

 
 Roy Beckford, an agricultural and natural resources agent with Lee County Extension in Florida, has been working with local farmers to establish jatropha crops. He says the glycerin leftover from biodiesel production can potentially be marketed as a specialty product for use in pharmaceuticals because of its anti-inflammatory properties. Beckford says jatropha may also have some anticancerous properties that are currently being explored. 
 
 The Hawaii Agricultural Resource Center is researching jatropha's potential for latex production. "There is latex in the tree-in the biomass," Poteet says. "It can be recovered chemically, and it does appear to have some promise." Other coproducts being investigated include natural pesticides, fertilizers and fermentation of the seedcake to create methane gas.
 
 The Future of Jatropha
 Estimates of just how long it will take to develop these plant characteristics and coproducts vary. "We are learning much more about [jatropha's] characteristics," Prince says. "I think a lot of the initial over-enthusiasm is now passing, and we are getting a much more realistic picture of what is possible. I think that the realistic picture is still equally exciting."
 According to Poteet, there isn't a lot of money supporting jatropha research right now. If that should change, he says, farmers could move into large-scale production within the next six to eight years with a support system in place to assist their efforts. "If there is a really slow trickle of support into the development of this, then I think you are looking at more than 10 years before we are really confident," Poteet says. 
 
 Beckford says if current trends continue, significant acreages of jatropha will be planted in Florida within the next five years. Some Florida farmers are already experimenting with small plots of the crop, and a handful are planning to develop plots of up to 100,000 acres in the near future. 
 
 It's important for people to do their homework before getting involved with jatropha, Teall says. "Jatropha is right in its infancy. It really hasn't been cultivated on a large scale." Although much more productive strains of jatropha will be available in the future, successful cultivation also requires finding the right location to grow the crop in terms of climate, economics and politics. "The law and regulations in a country really can make or break large-scale development," Teall says. 
 
 While jatropha holds a great deal of potential as a biodiesel feedstock, it is also important to acknowledge many hurdles must be overcome before the crop can become economically viable in most parts of the world. According to Teall, all feedstocks have their advantages and their disadvantages. Jatropha is no different. 
 
 Erin Voegele is a Biodiesel Magazine staff writer. Reach her at <a href="mailto:evoegele@bbiinternational.com">evoegele@bbiinternational.com</a> or (701) 373-8090.

Jatropha fruit grows in bunches, similar to grapes. 

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Individual fruits within a bunch ripen at different rates, making mechanized harvesting a challenge. 

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Teal poses for a photo in a stand of 18-month-old jatropha trees. 

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Is jatropha a wonder crop that can transform the biodiesel industry and provide a quick and easy income for farmers? Although many of these claims are true, numerous challenges must be overcome before large-scale production of the biodiesel feedstock can begin. Jatropha holds a great deal of potential, but only if it's properly developed, which may take years.

The Truth Behind the Claims

Algae has been the feedstock of the future for a long time, dating back to the National Renewable Energy Laboratory's Aquatic Species Program that ran from the 1970s until its demise in the 1990s. When virgin vegetable oil began its ascent from 20 cents a pound to 50 cents and more, algae started to attract even more attention. Some industry watchers say there are more than 200 companies pursuing plans to grow algae or process it into biodiesel. Major energy companies such Royal Dutch Shell and Chevron have partnered with some of the algae startups as have companies looking for a stable fuel supply, including Boeing and several airlines. The federal government has provided many grants for basic and applied research to further the pursuit of algae-based fuels.

 
 But what has been the result of all this interest and activity? Despite all the promising technology and money invested, there is no current commercial production of algae for energy. Is algae, as the saying goes, five years from success and always will be? Major players in the industry say 2009 could be the year when algae finally starts living up to its potential. Algae producers are starting to band together to share knowledge and educate investors. Two national organizations have started giving the industry a forum to spur these communication efforts. The National Algae Association is based in Texas and the Algal Biomass Organization was organized on the West Coast.
 
 Several groups are getting ready to move their technology out of the labs and break ground on pilot- and demonstration-scale facilities. With multiple companies pursuing various technical solutions, perhaps the biodiesel industry is finally closing in on a solution to feedstock supply programs.
 
 The biodiesel industry has high hopes for algae's potential, but that is grounded in an appreciation for the difficulties ahead. "We are very excited and very enthusiastic about the long-term prospects for algae to produce significant volumes of oil," says Joe Jobe, chief executive officer of the National Biodiesel Board. "That being said, we want to be realistic about expectations. I think it is easy to get excited and enthusiastic about something that offers significant volumes of feedstock to our industry long term. But we also want to manage expectations so it's not oversold. We don't want people to be discouraged that we don't have 10 billion gallons of algal oil available two years from now."
 
 Hurdles Remain
 One of the main hurdles facing companies looking to profit by turning algae into fuel is that, despite what we believe when filling up our gas tanks, fuel is actually a low-value product, says Thomas Byrne, chief executive officer of Byrne and Co. Ltd. and secretary of the ABO. There are a number of companies successfully growing algae for the lucrative nutraceutical market where products can sell for hundreds if not thousands of dollars per gallon. "Biodiesel is really the lowest value product of algae," he says. "Some of the initial algae production plants will likely fill other areas. They could be designed to produce animal feed, omega three oils, aviation fuel-there are a number of uses for algae beyond just biodiesel."
 
 It is still an open question as to which production method will successfully scale up and be able to provide the vast quantities of oil the biodiesel industry needs. "There are a number of things needed to move algae from the labs and pilot plants to commercial facilities," Byrne says. "But they are being worked out and a lot of good people are working on them."
 
 Producing the algae is only the first step in the process of creating an economically viable feedstock. Although algae cultures may look thick and green, a liter of water typically only contains a few grams of algae-less than one-half of 1 percent by weight. Algae has to be harvested and concentrated into a thick paste, which is still mostly water, before the oil can be extracted. Extraction methods also have yet to be developed and perfected. "The biggest issues are basically harvesting and dewatering on a large scale," Byrne says. "Those processes still need to be proven out on a commercial scale. I think a number of pilot plants out there can be scaled up to a commercial size for growing algae, but those other processes still need to be proven on a commercial scale."
 
 There were some well-publicized early attempts by industry pioneers to scale up their technologies rapidly that didn't fare too well. Byrne says that with capital costs for algae production facilities ranging from $25,000 to $500,000 an acre, the industry has become more cautious about how companies do their development. "A couple of companies went out and were very visible and kind of crashed and burned," he says. "Everybody else stepped back and said, 'Let's make sure everything works.'"
 

 Barry Cohen, founder of the NAA said the biggest challenge for his members has been educating investors about the complexity of creating an algae production system. "It's not so much a barrier because we are seeing two or three producers being funded on a quarterly basis," he says. "We are looking at a $100 billion market, which is huge. We have land (for locating facilities) literally being thrown at some of our members because guys are looking at the potential profits per acre."
 
 One aspect of the algae industry that will help overcome many of these challenges is the sheer diversity of algae species. Whether the algae production system uses open ponds, covered ponds, photobioreactors or even uses algae to ferment sugar into oil, there is probably a species that can be optimized for that purpose. "The industry is large enough to support different technologies in different environments," Byrne says. "It will depend on your feedstocks, your availability of carbon dioxide, your availability of nutrients and exactly what you are growing the algae for. Are you growing it for oil? Are you growing it for feed? Are you growing it for nutraceuticals? Are you growing it to sequester carbon dioxide?"
 
 Promise for the Near Future
 Even though the potential for algae has been studied for decades, as an industry it is still in its infancy. Byrne says most firms are still at the pre-venture capital stage. However, a few firms have received significant amounts of money from far-sighted investors, so 2009 should be the year algae makes its commercial debut. "There are a couple of companies that have received a fair amount of money-in the $30 million range-that have taken the lead," Byrne says. "To my knowledge there are at least two commercial plants under construction. They're not large but they will get to a scale that will prove the concept. So by 2009 there will be some commercial production. It won't be enough to make any big mark in the fuels industry but it will be enough to start proving what works and what doesn't work on a larger scale." Byrne says it will probably be five years before algae makes a significant impact on the biodiesel industry.
 
 Individual biodiesel companies who are working directly with algae producers may start producing biodiesel from algae within two to three years, Byrne says. But it will be at least four to five years before there is enough oil to sustain a competitive market where producers will be able to go out and buy oil for their plants."
 
 The NAA and ABO are holding regular meetings to bring developers, academics, investors and potential customers together to accelerate the development of the industry. Both groups say they have experienced rapid growth because of the high level of interest in algae. Cohen says the interest in algae is growing worldwide. The NAA has signed a contract to create a sister organization in Great Britain. The group is also starting a state-level chapter to cover California. "We've tripled in size in just the past three months," he says. "All of the biodiesel companies are contacting us. In our opinion, we are trying to save the biodiesel industry." 
 
 Jerry W. Kram is a Biodiesel Magazine staff writer. Reach him at <a href="mailto:jkram@bbiinternational.com">jkram@bbiinternational.com</a> or (701) 738-4920.

No one is currently producing economical amounts of biodiesel from algae oil but California-based Solazyme has been making small amounts and using it for demonstrations in this diesel-powered Mercedes.

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2009 could be a significant year for algae production as companies start to move their technology from the lab to demonstration-and commercial-scale production.

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After decades of study and millions of dollars in investments, using algae as a feedstock for alternative fuels seems tantalizingly close. However, several hurdles remain, prompting the cooperation of those interested in the economical development of algae oil as a biodiesel feedstock.

Algae Interests Align

North American biodiesel production has mainly centered on soybean oil and other virgin vegetable oils, creating somewhat of an unintentional bias in some media coverage. After all, it was state soybean commodity groups who founded the National Biodiesel Board. However, numbers from the Fall 2008 U.S. & Canada Biodiesel Plant Map produced by BBI International and Biodiesel Magazine suggest animal fats still represent a small percentage of straight-feedstocks used for biodiesel production. A steady percentage of animal-fat-derived biodiesel still means a growing volume though, as U.S. projects continue installing production capacity. 

 
 Each year, North American renderers turn an average of nearly 60 billion pounds of perishable waste from livestock and poultry processing and supermarket and restaurant operations, into value-added products. In a world without renderers, used restaurant greases and animal carcasses-the bones, blood, viscera, feathers, fats, and any other part of the cow, hog or bird many of us would consider inedible-might be dumped into landfills. Instead, renderers find opportunity in that waste and produce goods ranging from edible tallow or lard to livestock rations such as meat-and-bone meal, blood meal, feather meal and more. The biggest market for rendered goods is the livestock feed market, although many pet foods also contain rendered products. Exports are large too. Last year the United States exported 20 percent of its rendered goods. 
 
 Two broad categories of renderers exist today: Captive or packer renderers, who render the inedible materials they produce in their slaughter operations; and independent renderers, who buy fats, used restaurant grease, dead stock and other carcass remains from livestock producers, packing plants, butcher shops and elsewhere. According to Tom Cook, president of the National Renderers Association, captive renderers represent a minority of the rendering business-only 7 percent to 8 percent. The rest are the independent renderers. 
 
 Billions of pounds of animal byproduct and waste grease are recycled by North American renderers every year but only a fraction of that material is first-use animal fats and recovered cooking oils. Cook says the amount of total fats and oils production is roughly 13 billion pounds, 2.5 billion to 3 billion pounds of which is recovered cooking oils. Thus the majority of the material is bones, brain matter, spinal chords and all the parts of an animal few want to think about, which bring up issues of disease and infection. Mad cow disease, listeria and avian influenza, to name a few, are always a concern and thus there is a code of practices reputable renderers follow. David Meeker, NRA vice president of scientific services, says most of the advances in rendering over the past few decades have been to increase safety, but other developments implemented simply help make better, and more, products. Meeker says most renderers have upgraded their process from batch to continuous systems over the past 20 years. 
 
 "There's been a turnover of equipment from the old batch systems, which had variable outcomes, to computer-controlled continuous cookers," Meeker says. "Now the product is much more consistent. They used to burn a batch every now and then and they don't do that anymore. It's a lot steadier process than it used to be." Meeker says it was also about 20 years ago when the NRA research organization began investigating the potential for making biodiesel from animal fats. 
 
 Fat-Derived Biodiesel 
 Rothsay Rendering is a part of the family of Maple Leaf Foods Inc., and operates as a separate company. MLF owns large hog operations and processing facilities across Canada. Rothsay takes the hog carcasses and remnant materials and makes them into value-added products. "We also participate in the open market to acquire raw materials from other sources," says Todd Moser, Rothsay vice president of alternative fuels. Moser says Rothsay is sort of a hybrid model between the packer and independent renderers. Rothsay operates Rothsay Biodiesel, a 9 MMgy plant on the south shores of Montreal, Quebec, which opened in 2005. While Moser wouldn't give exact numbers, he says only a small portion of Rothsay's available raw materials are used in biodiesel production. 
 
 Real or not, there is a perception that biodiesel from animal fats is not as good as soy biodiesel. "There is a bias in the marketplace-we know that," Moser tells Biodiesel Magazine. "But we don't think it's substantiated on the technical merits of the fuel." Rothsay's Web site states that its biodiesel is made from recycled restaurant greases and tallow, but Moser says until there is tax parity in the U.S. federal blenders credit for waste vegetable oil and "first-use" animal fats, the plant will continue to produce a majority of its biodiesel from the more expensive tallow. As of late September, waste vegetable oil was only eligible for a half-penny per percentage point blended into petroleum diesel whereas tallow receives the full penny. "We definitely have the capacity, capability and willingness to use more [waste vegetable oil] but what's preventing that now is the tax disparity in the U.S.," he says. Congress was expected to vote on the revised version of the blenders credit, Sept. 23. Tyson officials told CNN that, if the revised blenders credit passes excluding biomass-based feedstocks (animal fats) when coprocessed with petroleum, its plans with ConocoPhilips to produce a renewable diesel would fold. Tyson didn't respond to requests to participate in this article. Other NRA members including Griffin Industries, Smithfield Foods and Sanimax also didn't respond to requests from Biodiesel Magazine to comment for this article. 
 
 Cold Flow Chart

 <center><img src="/images/upload/20081030105101.jpg" alt="" /></center>
 
 If restaurant grease is given tax parity in the extension, Moser says Rothsay would make a big feedstock switch. "Recycled restaurant grease is less expensive and we believe it has greater environmental benefits long term if you're looking at a total life-cycle approach," he says. 
 
 Moser says the most easily scrutinized characteristic of tallow-based biodiesel is its high cloud point compared with soy or canola biodiesel. "There are advantages of animal-fat-based biodiesel that aren't getting any sort of equity and, of course, the easy one to knock is cold-flow properties, which we don't necessarily dispute in B100," he says. According to National Renewable Energy Laboratory, the cloud point of biodiesel from inedible tallow is 61 degrees Fahrenheit. The cloud point for soy biodiesel is 38 degrees F and canola's cloud point is as low as 26 degrees. Moser says, "We would like consumers to have a better understanding of what the implications of those technical differences really are in the low-level blends that are being used." 
 
 Animal-fat-derived biodiesel is often criticized for high cloud point, but what is less reported is that it has a higher cetane number, which means better ignition properties and reduced nitrous oxide emissions. Also, tallow biodiesel is comprised of saturated fatty acids making it inherently more stable. There is no cold-flow spec in ASTM, and Meeker says if the fuel meets specs, there should be little or no issue-especially in a B5 blend. 
 
 To ensure quality and consistency from their animal-fat derived biodiesel, a distillation system was added to the Rothsay plant last year as "a second line of defense," Moser says. "It has resulted in an even purer biodiesel and it sets the industry quality standard for animal-fat-based biodiesel, for sure. It's a water-white product coming off our distillation unit-very high quality. It was well worth the investment for that added peace of mind." 
 
 Markets: A Rising Tide Lifts All Ships
 In 2007, the U.S. Census Bureau began tracking the use of animal fats and greases in biodiesel production. According to the bureau, 173.1 million pounds of animal fats and greases were used in 2007 for U.S. biodiesel production-about 4 percent of the total feedstock required to make the 500-plus million gallons produced last year. While animal fats and greases made up 4 percent of U.S. biodiesel feedstocks, when looked at conversely, the U.S. biodiesel industry consumed approximately 2 percent of total U.S. production of fats and greases last year. 
 
 Meeker says earlier this year the NRA predicted between 3 percent and 8 percent of all rendered animal fats and greases might be going to biodiesel. "I realize that's a wide window, but in reading other data it's probably closer to 8 percent," he says. "Fats in the 40- to 50-cent-a-pound range, you think, 'Wow, that's pretty high priced,' but it's still a good deal making biodiesel when crude oil is at $140 a barrel. And if corn's $7 a bushel, 40-cent fat looks pretty good in chicken feed, so there are so many competing economic forces at play it's hard to predict how big of a market [biodiesel can be for rendered fats and greases]." Compared with the record-high vegetable oil prices seen recently, it's no wonder biodiesel producers might desire animal fats as feedstock. But, "the saying 'A Rising Tide Lifts All Ships' is true for our industry," Cook says. 
 
 There are all kinds of influences on animal fat markets and pricing. "It's a complicated relationship," Meeker says. "As far as using fats for biodiesel goes, it's impacted by the price of crude oil so when that's up the substitutes are up-including our rendered products-but our biggest use is still animal feed, so we're also impacted by the use of corn, soybeans and so on. We're trying to pull two directions and recently everything has been up." 

 
 All of these markets are volatile. On Sept. 22, the United States saw the biggest one-day jump, $16 a barrel, in crude prices. Crop and livestock markets are volatile too. "If more cattle come to market there'll be a down tick in tallow, and a different environmental law in Indonesia might mean a big uptick in palm," Meeker says. The high cost of grain and soybeans this year may translate into less available animal fats next year. High feed prices could force livestock producers to cut back on the number of cattle or pigs they are going to feed. "That makes a little less raw material for us to render," Meeker explains. Then there are trends that move more animal fats into the marketplace. "Trends like more centralized meat cutting and case-ready consumer products make it more likely those trim fats and waste products will end up at rendering facilities rather than a landfill," he says. "So despite a short-term drop in animal production because of feed prices, overall there'll be growth in these rendered fats being available." 
 
 Ron Kotrba is a Biodiesel Magazine senior writer. Reach him at <a href="mailto:rkotrba@bbiinternational.com">rkotrba@bbiinternational.com</a> or (701) 738-4942.

Rothsay Biodiesel is a 9 MMgy biodiesel facility using animal fats, but if the new U.S. blenders tax credit extension is modified to extend full credit to recycled vegetable oils, then the plant is likely to use more waste vegetable oil in its operat

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The North American rendering industry takes anything that isn't used for food from the animal carcass-all 60 billion pounds-and recycles it into everything from animal feed to biodiesel feedstock. Here's an overview of North American rendering and biodiesel from animal fats.

The Skinny on Fats

The need to use multiple feedstocks has led many biodiesel producers to take a closer look at waste grease and what it can offer in their specific area. Biodiesel Magazine recently contacted biodiesel plants across the country to gather information for its Fall 2008 U.S. & Canada Biodiesel Plant Map and were often told that the plant had recently become "multifeedstock" capable and many were looking to use yellow grease as their primary feedstock. Cost was typically cited as the reason for the switch. But is the switch worth it?
 
 It's difficult to accurately assess the amount of yellow grease available in the United States, but estimates put it in the 2 billion gallon range. Biodiesel Magazine estimates total biodiesel production capacity in the United States at more than 1 million gallons. While many say they are using yellow grease, determining the number of plants actually using it as opposed to those who say they are is impossible.
 
 Bill Dieterichs, a market analyst for The Jacobsen Publishing Co., a Chicago-based firm that analyzes the animal fats, vegetable oils and grains markets, says he's skeptical of any availability totals for yellow grease because the numbers are tallied from questionnaires sent to plants and "those things always get relegated to the shortest man on the totem pole." Not that those plants would purposely submit faulty information, but the person filling out the form is often unaware of the differences in grease. 
 
 "They hear it called grease, so they mark 'yellow grease,'" Dieterichs says, adding that oftentimes the plant may be using poultry fat rather than yellow grease. Nevertheless, he is an analyst and analysts need numbers, so Dieterichs looks to the U.S. Census Bureau's monthly estimates for information. According to the bureau's June 2008 report (the latest month available at press time), 25 million pounds of yellow grease was used for biodiesel production and 94 million pounds remained in stock. That number fluctuates monthly, as does the price. In late September, the Midwest price for yellow grease had fallen to about 31 cents per pound, down from a high of just more than 40 cents per pound in mid-July. Dieterichs estimates that animal fat prices have a bit farther to fall than virgin oils do, and says that part of the decline in prices is probably because more biodiesel producers left their plants idle in the summer. "Biodiesel has been a brand new sector into the market and was a driving force in the rising price," he says. 
 
 Biodiesel production might be driving prices, but that doesn't necessarily mean producers know how to process it. Ohio-based JatroDiesel Inc. is one of only a handful of plants processing yellow grease into biodiesel. "Not many companies are doing it at the scale that they claim," says company President Raj Mosali. 
 

 JatroDiesel operates a 5 MMgy biodiesel production facility in Dayton, Ohio, but its bread and butter is providing production equipment to other producers. To date, JatroDiesel has sold 10 plants-eight in the United States, one in Canada and one in the Philippines, and is currently working on a plant in Uganda, which should be operational in early 2009. 
 
 Mosali says JatroDiesel started working extensively on producing multi-feedstock systems about two years ago in response to the "changing feedstock scenario" taking place across the United States. Mosali says that because of the large amount of water and debris in yellow grease, most producers are unable to use the raw feedstock because they have to ship it elsewhere to be processed into a usable product before it can be turned it into biodiesel. In fact, JatroDiesel started processing the raw feedstock only six months ago, he says. Now the company can take in raw yellow grease, process it from start to finish and move biodiesel out the back door within 16 hours. That capability has made the difference between surviving and shutting down their production facility. "The only way we could survive this market was to go out there and process the yellow grease," Mosali says. Plants that have to pay another company for pre-processing have been able to stay in business by producing only small amounts, he adds.
 
 Why Use Grease?
 Compared with the relative ease with which one can produce biodiesel from virgin oil, yellow grease may seem like more trouble than it's worth. But there are two major benefits that may make it worthwhile for some producers.
 › It's readily available. Competition is increasing, but no one controls the market yet, Mosali says. A producer can still walk into a restaurant and acquire a new collection account by offering the restaurant a deal. The market is open for business and those who get involved now can shore up a steady supply of feedstock before someone else gets to it.
 
 › It's cheap. Even with the expense of pre-processing equipment, producers will have fairly decent margins. Mosali estimates production costs, including collection and processing, to be no more than $2 per gallon. 
 
 Issues to Consider
 As for its downfalls, pre-processing is an obvious issue when considering using waste grease. Its high free fatty acid (FFA) content makes it difficult to use, and consistency is an issue. Restaurants and other food institutions all use different cooking oils and prepare a variety of foods. Sediment and water levels are meaningless to renderers, so up until now restaurateurs haven't paid any attention to the quality of their used oil. That makes it difficult for the biodiesel producer to know what to expect when receiving a shipment. They must be able to handle an array of FFA percentages and sediment levels.
 
 Another major issue is collection. Producers such as JatroDiesel employ their own fleet of trucks that drive to about 1,000 restaurants each week to collect a substantial amount of grease, and competition is fierce. Mosali says that in any new market JatroDiesel enters, restaurant managers comment on the number of calls they receive each month inquiring about their used cooking oil. That has prompted the restaurant managers to become savvy as to the value of their "garbage." Mosali says it's not uncommon for a manager to ask what price JatroDiesel is willing to pay if they keep their oil clean, something unheard of until recently. "Restaurants were paying collectors to have their oil removed eight months ago," Mosali says. "Now it's already gotten to the point where people are paying them up to 60 cents a gallon." 

 
 As with most businesses, location is the key when developing a yellow grease production facility. A plant in the middle of the rural Corn Belt wouldn't survive. Facilities are best located in urban areas, close to a concentration of eateries that can supply feedstock at a steady rate. The size of the plant matters, too. Yellow grease lends itself best to small facilities-up to 5 MMgy. "You're talking about 50 gallons [of yellow grease] here, 40 gallons there and it's stretched out over many square miles in a city," Mosali says. "Our research has shown that a medium-sized city (Philadelphia for example) has about 1 million gallons of yellow grease. For a 20 MMgy plant to process it on its own, it's extremely difficult. You're talking about [feedstock] coming from 20 different cities."
 
 The Brown Grease Factor
 If yellow grease had an ugly stepsister, it would be brown grease. The nasty scum that builds up in grease traps in industrial kitchen sinks is something most people would prefer to ignore. But for a few enterprising biodiesel producers, it's a feedstock. Philadelphia Fry-o-Diesel Inc. is one of those companies. "It's fairly rancid, it's been sitting in a warm trap with water and other food wastes for sometimes a month, sometimes a year, and it has a very high variability in terms of water content, contamination, and free fatty acid and triglyceride content," says Chief Executive Officer Emily Bockian Landsburg. It's also considered a hazardous material so not just anyone can jump in their collection truck and go get it. That hasn't prevented Fry-o-Diesel from developing a "fairly elegant" process for converting the grease to high-quality biodiesel, Landsburg says. 
 
 Fry-o-Diesel's pilot facility in Philadelphia has been producing biodiesel from brown grease at low volumes as it continues to research and develop its technology. They are now producing some biodiesel for local fleets and they intend to license their technology to wastewater treatment plants and biodiesel project developers. "Fry-o-Diesel's technology allows someone to take a liability and turn it into an asset, and upgrade it into a high-grade biodiesel product," says Landsburg, adding that "trap grease is a very costly pollutant in municipalities and communities."
 
 The environmental benefits of recycling brown grease into biodiesel are great. Cities can spend millions of dollars each year ridding their sewer systems of brown grease. According to Landsburg it usually gets incinerated and sometimes has to be trucked long distances and dropped off at a collection point, leaving the door wide open for a more efficient disposal method, such as a biodiesel plant.
 
 The low-cost feedstock can economically benefit biodiesel producers. Furthermore, a collection infrastructure is already in place for the grease. Landsburg says grease collectors survive on the margin between the fee they charge restaurants for pick-up and what it costs them to get rid of it. All a biodiesel producer has to do is offer a lower price to the collector. And quantity is not an issue, says Landsburg, who points to a National Renewable Energy Laboratory study suggesting that there is even more trap grease than yellow grease in the United States. The only problem is that the brown grease industry, compared with yellow grease, is "highly fragmented." Like yellow grease, any potential brown grease facility is best located near an urban center.
 
 Mosali has been experimenting with brown grease at his facility and says it can be done, but he has concerns about the volume. "We have the equipment that can make biodiesel out of that 80 percent FFA oil, but who's going to give us that oil? Even if we wanted to get 1,000 gallons of oil, when you consider 95 percent of what you collect is water it's extremely difficult for us to get oil right now," he says. Cost is the deciding factor though and Mosali admits that as more people "pile on" to yellow grease the cost will go up. "And I'm sure when yellow grease prices climb we'll have people going for brown grease." 
 
 Kris Bevill is a Biodiesel Magazine staff writer. Reach her at <a href="mailto:kbevill@bbiinternational.com">kbevill@bbiinternational.com</a> or (701) 373-8044.

Philadelphia Fry-o-Diesel uses brown grease, otherwise known as trap grease, to produce biodiesel. Brown grease has a higher free fatty acid content than yellow grease, and is often much more contaminated with water and sediments. 

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One of the most popular feedstocks being used by biodiesel producers today is yellow grease. Biodiesel Magazine examines the logistics of using waste cooking oil.

A Greasy Alternative

When the metaphysical poet John Donne wrote "No winter shall abate this spring's increase," he was writing about love-but he might just as well have been writing about the price of virgin oil feedstocks. The spring of 2008 was tough on the biodiesel industry worldwide with the markets tallying record-high prices for palm oil in March and soybean and rapeseed oil in June. Consumption continues to nip at the heels of production, with worldwide consumption of major oilseeds expected to be 414 million metric tons in 2008-'09, just under the 418 million metric tons in expected production, according to the USDA Foreign Agricultural Service's "Oilseeds: World Markets and Trade" September report. Still hurting from last spring's fling, what might biodiesel producers expect for virgin oil feedstock prices in the future?

 
 World Vegetable Oil Production and Consumption
 <center><img src="/images/upload/20081015035147.jpg" alt="" /></center>
 SOURCE: USDA
 
 Soy Oil at Twice the Price
 In June 2008, the price of soybean oil in the United States averaged $1,376 per metric ton, a price that was more than double the average of $684 the previous year, the USDA says. The price of soybean oil has been rising steadily since its low of $507 in 2004-'05. However, the August average for soybean oil fell to $1,120, mirroring a sudden decline in the price of palm oil, the USDA says, which keeps palm oil at an attractive value when compared with soybean oil.
 
 According to the USDA Economic Research Service's "Oil Crops Outlook" report for September, global soy oil production is expected to increase to 38.4 million metric tons in 2008-'09, compared with 37.9 million in 2007-'08. The United States is expected to produce less soybean oil, while China, Argentina and Brazil are expected to produce more. The overall consumption of soybean oil is expected to increase to 37.9 million metric tons in 2008-'09, compared with 37.2 million in 2007-'08.
 
 According to Chad Hart, an agricultural economist at Iowa State University, the United States is on pace to produce the fourth-largest soybean crop on record this year. While that may bode well for the near term, the problem is that there is little room for U.S. farmers to increase their soybean acreage if corn prices remain high, according to John Miranowski, agricultural economist at Iowa State University. "Obviously, for the next planting season, the allocation of acreage will depend on the expected prices of corn and soybeans in the futures market," he says. "Right now, if the corn crop also suffers, I don't see that the price ratio is going to change things. This year, they planted more soybeans than a year ago and relatively less corn and that won't go beyond a 50-50 ratio and so I don't see much, domestically, that's going to increase that, outside of some expansion of acreage into probably less-productive lands."
 
 Due to a dwindling supply of soybeans in the United States, the USDA lowered its forecast for the 2007-'08 soybean crush from 1.83 billion bushels to 1.815 billion, which also lowered 2007-'08 production estimates for soybean oil to 9.5 million metric tons. The USDA predicts there will be little room for expanding the soybean crush in 2008-'09 and processing plants might begin slowing production even sooner. The U.S. soybean crush forecast is slipping to 1.785 billion bushels in 2008-'09 with soybean oil production dipping to 9.2 million metric tons for the same year.
 

 On the export side, Brazil and Argentina are expected to export more soybeans in 2008-'09. Brazil is expected to export 27.5 million metric tons of soybeans in 2008-'09 compared with 25.5 million in 2007-'08. Argentina is expected to export 13.9 million metric tons in 2008-'09 compared with 13.5 million in 2007-'08. Meanwhile, the United States is expected to export less at 27.2 million metric tons in 2008-'09 versus 31.4 million in 2007-'08.
 
 The high cost of soybeans along with a strengthening U.S. dollar are likely to weaken 2008-'09 U.S. export demand, the USDA says. Hart says concerns about general weakness in domestic and international economies will contribute to the erosion of exports.
 
 It is anticipated that soybean oil prices will reach record highs in 2008-'09, the USDA says. Miranowski says a lot depends on what happens to crude oil prices. "If the price of crude oil continues to decline as it has recently, the biodiesel producers are not going to be able to pay as much for the virgin oils," he says. "At the same time, the virgin oils may be in more scarce supply because of the crop outlook.
 
 "I think that a lot of people are much more skeptical than the recent USDA estimates in terms of our soybean yields this fall and that could put significant upward pressure on soybean oil prices," Miranowski says.
 
 Christopher Hurt, an agricultural economist at Purdue University, notes that soybean oil futures dipped to 45 cents per pound at the end of the summer, which means at 7.5 pounds of soybean oil per gallon of biodiesel, the feedstock cost is $3.38 per gallon before the $1 federal biodiesel tax incentive. But the price of petroleum diesel also came down, he says, making biodiesel less competitive.
 
 It is likely that a permanent shift has occurred in price levels for soybeans and so far, the peak price for soybeans in this new era was well above the average price projected for the era, which will see more extreme highs and lows, according to a brief entitled "The New Era of Corn, Soybean, and Wheat Prices." The brief was published Sept. 2 by the Department of Agricultural and Consumer Economics at the University of Illinois, Urbana-Champaign and was written by agricultural economists Darrel Good and Scott Irwin.
 
 From December 2006 through July 2008, the average monthly price of soybeans in Illinois was $9.40 per bushel in a range of $6.21 to $14.10. The low range for soybeans in this new era will be around $8, the brief said.
 
 Good and Irwin said the previous two eras of higher price averages were from 1947 through 1972 and from 1973 through 2006. Each period experienced a structural shift in market conditions that caused average prices to move higher. The first period began in 1947 when price controls were lifted after World War II and the post-war rebuilding effort began. 
 
 The second period began in 1973 and included shifts in exchange rate policies, grain purchases by the former Soviet Union, escalating energy prices and more rapid inflation.

 
 The price of soybeans started moving higher in the autumn of 2006 and has remained generally high and well above the average for the previous 30 years. According to Good and Irwin, evidence suggests that prices are establishing a new higher average, attributable to tight global inventories, growing demand and escalating production costs.
 
 Canola Oil on a Steady Incline 
 In June 2008, the price of canola oil in Europe averaged $1,577 per metric ton, a price that was more than double the average of $770 for 2005-'06, according to the USDA. The price of canola oil has been rising steadily since a low of $359 per metric ton in 1999-'00.
 
 Total world production of canola oil is expected to increase to 19.3 million metric tons, up from 18.3 million in 2007-'08 and 17.2 million in 2006-'07, the USDA says. World canola production is expected to reach a new record of 55.3 million metric tons in 2008-'09, which is 6.5 million more than the previous year, due to yields that are exceeding expectations in the Ukraine and many parts of the European Union and Canada, according to Tom Brooks, market analyst for the Home-Grown Cereals Authority, a division of the Agriculture and Horticulture Development Board, which monitors cereals and oilseeds for the U.K.
 
 Brooks says the EU, which is the largest producer of canola, is forecasted to produce 18.75 million metric tons of seed in 2008-'09 compared with 18.25 million the year before. The EU is expected to produce 8.1 million metric tons of canola oil in 2008-'09, up from 7.6 million in 2007-'08 and 6.5 million in 2006-'07, the USDA says, and while consumption in the EU is expected to reach 8.1 million metric tons in 2008-'09, up from 7.8 million in 2007-'08 and 7.2 million in 2006-'07, EU imports are expected to decrease from a high of 727,000 metric tons in 2006-'07 to 200,000 in 2007-'08.
 
 Brooks says the Canadian canola crop is expected to yield 10.4 million metric tons in 2008-'09, which is around 800,000 metric tons above the five-year average. The expected bumper crop is the result of above-average yields on record acreage, the USDA says. Canada is expected to lead exports of canola, at 1.4 million metric tons in 2008-'09 up from 1.3 million for 2007-'08.
 
 China and India, too, are expected to produce more canola for 2008-'09. The crop in China is expected to yield 11.5 million metric tons, which is below the five-year average of 12 million, Brooks says. India is projected to produce 6.35 million metric tons of canola for 2008-'09, up 1 million metric tons from the previous year.
 
 The Australian canola crop is expected to recover from the drought-reduced yields of recent years and could reach 1.6 million metric tons for 2008-'09, Brooks says.
 

 The demand for canola is likely to remain strong in 2008-'09, especially from the EU biodiesel industry, he says.
 
 Palm Oil Prices Decline
 In March 2008, the price of palm oil in Malaysia averaged $1,291 per metric ton, a price that was more than triple the average of $416 for 2005-'06. The price of palm oil has been rising steadily since its low of $235 per metric ton in 2000-'01. However, the August average for palm oil fell to $879 per metric ton, mirroring a sudden decline in the price of soybean oil, USDA says, which makes palm oil an attractive value compared with soybean oil, and which might restore profitable margins to the biodiesel industry in southeast Asia. 
 
 Exports of palm oil increased in late summer as importers in India, Pakistan, Bangladesh and China defaulted on or renegotiated prior purchase agreements.
 
 Globally, total production of palm oil in 2008-'09 is expected to be 43.2 million metric tons compared with 41.4 million in 2007-'08, according to USDA.
 
 Approximately 10 percent more palm oil was used worldwide in 2007-'08 than a year before, according to Heike Hintze-Gharres, market analyst with the Home-Grown Cereals Authority. She says palm oil producers in Indonesia and Malaysia were able to meet the higher demand because their output increased sharply in 2007-'08. Indonesia's output increased to 18.7 million metric tons, up 2 million over the previous year, while Malaysia's production increased to 17.7 million metric tons, up 2.4 million. She says palm oil stocks are currently high, which has resulted in declining palm oil prices. Hintze-Gharres says total global production of palm oil is expected to reach 44.6 million metric tons for 2008-'09 and palm oil will remain price competitive.
 
 The USDA says importers around the globe will increase imports to 31.2 million metric tons, up from 29 million in 2007-'08, led by China, India and the EU. Exporters will export 31.9 million metric tons compared with 30.1 million in 2007-'08, led by Indonesia and Malaysia.
 
 Palm oil's favorable price difference over soybean oil should allow for growth in Malaysian exports during 2008-'08, the USDA says. 
 
 Ryan C. Christiansen is a Biodiesel Magazine staff writer. Reach him at <a href="mailto:rchristiansen@bbiinternational.com">rchristiansen@bbiinternational.com</a> or (701) 373-8042.

Around the world, the forecast for biodiesel feedstock prices is more of the same as consumption threatens to outpace production.

Continued Strength in Oil Prices

The past year has been a volatile time in the renewable fuels industry. The increased demand for all commodities, including agricultural commodities such as corn and soybeans, has driven up prices affecting the profitability of renewable energy plants. As a result, business models not accounting for this relatively recent market pressure are struggling to keep pace in this rapidly changing environment. Both start-up and mature companies must leverage their unique capabilities, reduce operating costs and diversify revenue streams in order to position themselves for market success. More often than not, this requires a customized approach for each business and an in-depth understanding of its business and relevant markets.

 
 One option that could potentially increase shareholder profitability for both biodiesel and ethanol plants is the extraction of industrial-grade crude corn oil from the ethanol process for use as an alternative feedstock for biodiesel plants. This solution has caught the eye of many given that ethanol plants can further enhance and diversify their revenues with this relatively low capital-intensive "add-on" asset while biodiesel plants can secure a less-expensive feedstock compared to the bulk of food-grade crude vegetable oils. 
 
 On the surface, this outcome looks to be a "win-win" for both the buyer and seller of the industrial-grade crude corn oil. The payback on the ethanol asset is often within a few years, and shareholders quickly see an uptick in enhanced returns to the plant. At the same time, biodiesel plants have a new source of feedstock that isn't solely dependent on the vegetable oil market and is priced at a discount to those traditional oils. 
 
 Even with all the positive attributes associated with this relationship, ethanol and biodiesel plants need to be thoughtful of business, financial, technical, marketing and ownership structure risks associated with the endeavor. Generally speaking, two business models are evolving related to the selling of industrial-grade crude corn oil. One, for lack of a better term, is the "vertically integrated" model, while the other is your typical market-based supply model. Each model has its own strengths, weaknesses and dependencies. Thus, an investor should not only get comfortable with these attributes, but also-and more importantly-consider ways in which to mitigate the underlying risks associated with each approach.
 
 Vertical Integration
 In the vertically integrated model, several ethanol producers form a new entity with the sole intent of producing biodiesel. Often, the biodiesel plant is built to scale based on the volume of industrial-grade crude corn oil that the participants can supply. Listed below are some of the attractive attributes of this business model:
 
 1. The ethanol plants have aligned interest with the biodiesel plant. With this model, those ethanol producers usually contribute equity into the biodiesel plant. Thus, those participating have "skin in the game." Make no mistake, the ethanol producers are interested in capturing a nice return for their industrial-grade crude corn oil but won't sacrifice the viability of the biodiesel plant to do so.
 
 2. Often, the pricing for the industrial-grade crude corn oil is indexed off either biodiesel prices (product), animal fat prices (substitute) and/or other petroleum markets (indexed product) to ensure that the biodiesel plant secures a strong operating margin or crack spread between wholesale biodiesel prices and industrial-grade crude corn oil. Thus, as prices fluctuate, the biodiesel plant can remain competitive while generating a strong return for investors.
 
 3. The biodiesel plant will usually collocate next to an ethanol plant that is an investor and supplier of the crude corn oil. A collocated approach allows the biodiesel plant to reduce its capital costs for infrastructure (rail, storage, utilities, water/wastewater), as well as capture other synergies from the ethanol plant (waste heat, staff, existing contracts for infrastructure). 
 

 4. Transportation costs of the feedstock are generally less expensive than the competition due to the close proximity of the ethanol plants to the biodiesel plant. Usually the investors will locate the biodiesel plant in an area most centrally located among all of the ethanol participants.
 
 Industrial-Grade Crude Corn Oil Index Pricing
 -Possible Pricing Scenarios-
 <img src="/images/upload/20081015040031.jpg" alt="" />
 SOURCE: ASCENDANT PARTNERS INC.
 
 Although there is a lot of value in this vertically integrated model, there are several key considerations that should be fully considered in order to make an informed investment decision. Listed below are just a few of the many questions that should be explored before proceeding with the venture:
 
 1. Strategic issues: 1) What impact will this strategy have on the distillers grains prices and marketing options for the ethanol plant? 2) What impact might it have on future options such as corn fractionation or others? 3) Are the involved participants aligned in terms of return expectations, culture and value fit? and 4) How will the board address key strategic decisions (buy, sell, merge), and what impact does that have on each ethanol plant?
 
 2. Business structure: 1) How will the board be structured (equity contribution, business line expertise, etc.)? 2) What are the issues regarding the transfer of ethanol ownership if an ethanol plant is sold? 3) What impact will that have on the biodiesel plant's ownership structure and control? and 4) What steps can be taken at inception of the biodiesel plant to mitigate long-term business structure issues?
 
 3. Contracts and risk management: 1) What are the risk of default and implications to the ethanol plant and biodiesel plant? 2) What is the contingency plan in case default occurs? and 3) What measures can be documented to minimize exposure?
 

 4. Pricing: 1) How will the pricing of industrial-grade crude corn oil be established? (Length of contract? Methodology? Timing and requirements for delivery?) 2) How will quality control of the product be measured? (What are the standards of the product? How are discounts established?) and 3) What is the contingency plan for policy issues? (Possible expiration of the biodiesel tax credit, and state incentives and grants?)
 
 5. Technology and performance standards: 1) Will all the ethanol plants be utilizing the same corn oil extraction technology? If not, what are the performance risks? (Composition of the crude corn oil? Yield conversion?) 2) Will there be any issues with pretreating and processing different compositions of industrial-grade crude corn oil at the biodiesel plant? and 3) What are the performance guarantees associated with the extraction technology? (What impact does that have on the biodiesel plant's performance? Shareholder returns?)
 
 6. Counterparty risk assessment: 1) What is the financial stability of other participating ethanol plants? 2) What is the debt exposure at the ethanol plants? 3) What are the implications for securing funding based upon existing loan covenants and liens? and 4) Can the ethanol plants secure funding for extraction technology? 
 
 As can be seen, a number of items need to be diligently explored. Ascendant Partners Inc. has only hit on a handful of the key considerations that ethanol and biodiesel board members should consider when exploring this business model. We recommend working closely with legal counsel, equity participants, banks, technology providers and the project developer/consultant to ensure there is alignment around these critical business issues.
 
 The Supply Model
 For biodiesel plants interested in sourcing industrial-grade crude corn oil, often the best way to secure the volume is to work directly with an ethanol plant. There are several procurement approaches that a biodiesel plant can take when looking to lock in the crude corn oil. 
 
 One approach would be to establish a long-term offtake contract with the supplier for a certain amount of volume. The buyer and seller would need to work through many of the contracting issues previously mentioned in order to develop a healthy and sustainable business relationship. Another option would be for a biodiesel plant to purchase the extraction asset for the ethanol plant. With this type of arrangement, the ethanol plant wouldn't have to source the capital for the extraction asset but would likely be required to sell the industrial-grade crude corn oil at a discount to the biodiesel plant. Both parties would need to actively work with their banking relationships to ensure that all parties are comfortable with the risks and structure of the business relationship. Lastly, a biodiesel plant could source industrial-grade crude corn oil on the spot market. This approach is not likely a strong one given the lack of product available on the open market, minimal amount of price transparency/discovery in the market and the technical requirements that a biodiesel plant must plan for when utilizing this product. Ultimately, hinging one's hopes on finding industrial-grade crude corn oil in the spot market is highly risky and not recommended.
 
 The primary reason for the industrial-grade crude corn oil's price discount is its composition. Compared with other vegetable and rendered oils, it has a high free-fatty-acid (FFA) composition (12 percent to 17 percent), as well as waxes and other chemicals that make it unsuitable for human consumption and a challenge to pretreat. With the high FFA content, many producers utilizing this oil resort to acid esterification as the most economical way to convert FFAs into triglycerides versus stripping out the FFAs and selling them for a steep discount to the purchase price of the oil. This level of pretreatment will require a retrofit for existing assets, but the payback can be quick if all works smoothly. One should be cautious when selecting a technology provider for this add-on or first-time install and should utilize a proven technology. Proper performance guarantees and liquidated damages will need to be clearly defined and agreed upon by the plant's banker and shareholders alike. 
 
 Utilizing industrial-grade crude corn oil definitely has a number of advantages for a biodiesel producer. This competitively priced oil provides feedstock diversity and, in many cases, 

 a vertically integrated business model. Additionally, corn oil doesn't have the cold-flow issues associated with animal fat. With all its promise, investors should proactively address the existing and potential risks to protect their shareholders' returns, as well as ensure alignment between the board, management, buyer and seller regardless of what business model is utilized. 
 
 Mark Warren is a partner with Ascendant Partners Inc. Reach him at <a href="mailto:mwarren@ascendantpartners.com">mwarren@ascendantpartners.com</a> or (303) 221-4700.

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Key Considerations When Using Industrial-Grade Crude Corn Oil as a Feedstock

Everyone is talking about sustainability-sustainable energy, sustainable food, sustainable economy. It makes sense. We are living large, and if we could only sustain our current way of life, how great would that be?
 
 Unfortunately, few true sustainability models condone our current lifestyle. They inevitably will require us to change our ways of getting around, operating our businesses, disposing of waste and even eating. If asked, most people would probably say they'd lay down their lives for their children, but would they drive a smaller car or spend a few dollars more for cleaner-burning fuel? 
 
 A speaker at the second annual Texas Biodiesel Conference & Expo, held in Austin, Texas in mid-September, defended America's right to 25 percent of the world's energy (despite the fact that we produce only 3 percent of the world's oil supply) by touting U.S. contributions in technology. No statistics were given as to how much of that technology was donated to the rest of the world, and I suspect our inventors and investors have gained at least as much as they contributed. America's position as a global leader must now involve taking the lead in living more sustainably, not defending our right to "business as usual."
 
 I'm not an economist, but it's clear from recent headlines that our current system of buying and selling big businesses, without concern for producing real products or services, is crashing our economy. In September, comedian Craig Ferguson lambasted the Wall Street bailout and questioned what these "rich people" actually contribute. If they make something, even if they invest in businesses that make something, that is OK, he ranted, but making a profit just by moving money around? It was hilarious the way he described the $3,600-per-taxpayer bailout, but in reality, it's no laughing matter. 
 
 The spreadsheet business trend perpetuated by those who profit solely on stock sales and exit strategies is apparent in the biofuels industry. It should scare all of us that billions of dollars have been invested in the idea of a silver bullet-can you say hydrogen fuel economy?-with no resulting solution to global warming. A lot of folks got rich in the process, though.
 

 It's time to come down to Earth and get back to what is real. In the biodiesel industry especially, it should be fairly obvious. Build a biodiesel plant, use locally available resources as much as possible, sell fuel back to your community, and contribute to the triple bottom line. You make money, the farmer makes his or her margin, and the local fuel station sells a better product and makes a profit. The community's economy benefits, carbon emissions are decreased and the system creates true energy security. It's not a get-rich-quick scheme, not spectacular or all-encompassing, not even terribly sexy, but it's real and honest. 
 
 Do we have the political will and the common sense to get back to basics and support community business successes, at least with maybe a portion of what we are giving to Wall Street for its failures? 
 
 There is still time for our industry to do the right thing. The Sustainable Biodiesel Alliance is leading the discussion on sustainability in biodiesel and should be commended for its nationwide, multi-stakeholder, inclusive process in developing principles of sustainability for our industry. In that process, SBA Executive Director Jeff Plowman tells me he's discovering consensus among national and state policymakers, environmental departments and organizations, community activists, businessmen actually running biodiesel companies, and even investing organizations that community-based production and distributed generation is the way to go. 
 
 Impressively, attendees of the SBA's Sustainable Biodiesel Stakeholders Summit held in September included the U.S. EPA, the U.S. DOE, the National Biodiesel Board, the European Biodiesel Board and the Roundtable on Sustainable Biofuels, among others. For all intents and purposes, it seems we could be headed in the right direction after all. Is it possible that the conscience the industry started with is still alive and kicking? 
 
 Kelly King is vice president of Pacific Biodiesel Inc. Reach her at <a href="mailto:ktk@biodiesel.com">ktk@biodiesel.com</a> or (808) 877-3144.

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Web exclusive posted Oct. 16, 2008 at 4:02 p.m. CST 
 
 Brazilian oil company Petróleo Brasileiro S/A (Petrobras) and Portuguese oil company Petróleos e Gás de Portugal SGPS S.A. (Galp Energia) signed an investment agreement Oct. 10 to jointly produce, market, and distribute 150 MMgy of biodiesel. The agreement calls for producing half of the biodiesel in Portugal and the other half at a location to be determined. The biodiesel will be marketed primarily in Portugal and Spain. The companies plan to jointly create and invest in a new company as equal partners for the venture.
 

 The agreement, dubbed the Belém Project, was signed in a ceremony held at Torre de Belém, a fortified tower in Lisbon, Portugal.

Petrobras, Galp Energia invest in biodiesel plan

Web exclusive posted Oct. 17, 2008 at 9:21 a.m. CST 
 
 A company that is domesticating a tropical East African shade tree for its oilseeds in order to produce a straight vegetable oil that will compete with biodiesel and petroleum diesel has been selected to receive $200,000 from The World Bank's 2008 Development Marketplace competitive grant program. The Africa Biofuel and Emission Reduction Co. Ltd. in Tanzania, a public-private partnership with the government of Tanzania, is growing Croton megalocarpus-also called the Mlalai or Muhande tree that is commonly used for shade on coffee plantations. The plant is being grown on a 49,400-acre core plantation and in cooperation with a farmers' collective on an additional 98,800 acres in the Kagera region of Tanzania, according to Christine Adamow, director for Africa Biofuel. The inedible oilseeds from the plant will be crushed and the oil produced will be marketed as a biologically produced replacement for petroleum diesel.
 
 "It's a straight vegetable oil product," Adamow said. "We're looking to create a carbon-neutral operation, which you realize you can't do when you're producing biodiesel. If we can sell 100 percent of our projected straight vegetable oil for regional requirements, then good for us; if we are required to produce biodiesel on specifications for the local power authority, then we will do that. We will partner and put a production facility in the region to do that."
 
 After seven years of research and development and with seedlings that are three years old, Africa Biofuel expects to be producing the oil by 2010, the company said. The company's overall objective is to replace up to 10 percent of Tanzania's diesel fuel consumption by 2018 through the production of oil from the tree and to provide a new, sustainable cash crop for small farmers in Tanzania.
 
 Adamow said the oil will be shipped by road from the Kagera region to Tanzania's coastal populations. The oil could also be exported from the region by road to Rwanda, Burundi, and Uganda or by barge to Kenya. Tanzania's national electrical utility, Tanesco, might also be interested in using the oil to produce electricity in its Kagera and Kigoma district power plants.
 
 The Croton megalocarpus oilseed contains 32 percent oil, Adamow said, and it's indigenous to seven East African countries. The company has discovered a different species in the Croton family that is indigenous to Indonesia and has oilseeds with 52 percent oil by weight she said, adding that Africa Biofuel is negotiating with a company there to produce biodiesel using that oil. "This nut has what it takes, at least theoretically, to become a gold standard for biodiesel production," Adamow said.

 
 The 2008 Development Marketplace competitive grant program is also sponsored by the Global Environment Facility, the International Finance Corp., the Bill & Melinda Gates Foundation, and the German development agency GTZ.

Tanzanian oilseed venture to receive World Bank funding

Web exclusive posted Oct. 17, 2008 at 9:40 a.m. CST 
 
 Kansas-based Midwest Research Institute, an independent, non-profit, contract research organization has formed a new integrated algal research center, which will provide research and development, process engineering, consulting and lifecycle cost analysis services of algae and its uses to address energy and environmental challenges, primarily for biofuel purposes.
 
 The Center for Integrated Algal Research, located in Kansas City, Mo., will focus on research and technology developments associated with identifying and optimizing algal species for carbon dioxide uptake and biofuel production. 
 
 Specific areas described by the MRI include the modification of algal species using molecular tools, developing and validating harvesting approaches, as well as devising and integrating processing technologies.
 
 "An area that shows great promise regarding energy and the environment is the use of algae as both a mechanism for sequestering carbon dioxide emissions and as a viable source of biofuel," said Michael Helmstetter, MRI senior vice president and director of research operations.
 
 In addition to the new facility, the MRI announced that Stanley Bull has been appointed director of energy programs, a newly created position at MRI. Previously Bull was associate director for science and technology at the National Renewable Energy Laboratory and vice president of MRI. 
 

 Bull has extensive experience in leading and managing research and development programs in renewable energy and energy efficiency. For more than 20 years he provided leadership for NREL's biofuels program, including the aquatic species program. 
 
 The MRI recently confirmed biodiesel producer Green Star Products Inc.'s Montana Micronutrient Booster growth formula is capable of increasing the total biomass quantity in a harvest algae growth cycle by more than 100 percent. The test results, which were achieved by MRI Principal Scientist John Lednicky, demonstrate the same findings as a previous test conducted by Biotech Research Inc., a consortium partner of GSPI's, at its lab facility at UABC University in Ensenada, Mexico.
 
 GSPI reported that Lednicky's test results found that two algae strains treated with the Montana Micronutrient Booster natural growth formula-one saltwater and one freshwater- grew 200 percent more in algae biomass compared to control strains, and also that the increase in mass included cells which lived longer and were larger in size.
 
 GSPI President Joseph LaStella said the confirmations of the Montana Micronutrient Booster's effectiveness, like the results achieved by the MRI, will greatly accelerate its application research worldwide, as well as GSPI's research. The Montana Micronutrient Booster is currently not commercially available, but the company hopes to begin marketing the formula in 2009. 
 
 In 2007, the company built and operated one of the largest algae demonstration plants in the world-a 40,000 liter (10,569 gallon) facility in Hamilton, Mont., which ran for nine months. LaStella said it successfully provided all the information and data required for commercial production.
 
 In July, Biodiesel Magazine reported that EcoAlgae USA contracted with GSPI's associated consortium of companies to construct an algae-to-biodiesel and next generation waste-to-energy complex in Missouri. 
 
 Click here to read <a href="http://www.biodieselmagazine.com/article.jsp?article_id=2606&q=Saline&category_id=19">Missouri algae facility, biorefinery complex receives $141 million</a>. 

 
 To learn more about GSPI, visit <a href="http://www.greenstarusa.com">www.greenstarusa.com</a>.

MRI launches algae research center

Web exclusive posted Oct. 17, 2008 at 9:48 a.m. CST 
 
 <a href="http://www.renewenergy.com">Renew Energy Resources Inc.</a> has begun the preliminary permitting process for a 5 MMgy biodiesel production facility in New York City which will be operated by its subsidiary, Legacy Oil LLC. The project is expected to be complete and operational by mid-2009.
 
 <a href="http://www.rtpenv.com/">RTP Environmental Associates Inc.</a> has been contracted by Renew to handle permitting for the plant. RTP is an environmental consulting company that specializes in permit application preparation, among other services.
 
 The Legacy Oil facility will use waste vegetable oil as its primary feedstock. Waste oil will be collected from New York City restaurants by <a href="http://www.rwaResourceRecovery.org">RWA Resource Recovery</a>, a social enterprise of <a href="http://www.doe.org">The Doe Fund</a>, which was established to create jobs for formerly homeless individuals who are re-entering the job market.

New York City biodiesel project moves forward

Web exclusive posted Oct. 17, 2008 at 9:52 a.m. CST 

 
 The i-SPEC Q-100, a handheld biodiesel analyzer developed by researchers at <a href="http://www.paradigmsensors.com">Paradigm Sensors LLC </a>and Marquette University in Milwaukee, Wis., will be honored by R&D Magazine as one of the 100 most significant technology products of 2008. Previous products that received the award include the automated teller machine, the fax machine and High Definition Television.
 
 This year's recipients will receive their awards at the 46th annual R&D awards banquet on Oct. 16 in Chicago.
 
 The analyzer uses impedance spectroscopy to assess the chemical content of biodiesel, including glycerin, acid number, blend percentage and methanol. "That analysis is important to prevent problems caused by bad biodiesel mixes that can cause mechanical problems in vehicles and machinery," Paradigm President Robert Young said. The portability offered by a handheld device makes the product even more attractive to producers, according to Paradigm.
 
 The technology for the device was developed by Marquette University's College of Engineering. Opus Dean of Engineering Dr. Stan Jaskolski said the success of the i-SPEC is an example of how academic research can contribute to economic development.

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R&D Magazine recognizes biodiesel tool's significance

Web exclusive posted Oct. 17, 2008 at 10:02 a.m. CST 

 
 Having successfully tested moving ethanol in its Central Florida pipeline system, Kinder Morgan Energy Partners LP is now assessing biodiesel transport. In mid-October the company said it is currently testing a movement of B5 in a segment of the Plantation Pipe Line Co. system that transports gasoline and diesel from Collins, Miss., to Spartanburg, S.C. 
 
 Kinder Morgan, a 51 percent owner and the operator of Plantation Pipe Line, expects test results to be available by the end of October. The company is also evaluating the transportation of biodiesel in its Portland to Eugene, Ore., pipeline to support the forthcoming biodiesel mandate in Oregon. 
 
 "We are pursuing pipeline solutions to the overall supply chain for biofuels," said Tom Bannigan, KMP products president. "We look forward to working with producers and our shippers as we continue to assess the optimum transportation and storage logistics for meeting the demand for alternative fuels in the market place." 
 
 Kinder Morgan Energy Partners owns an interest in, or operates, more than 25,000 miles of pipelines and 165 terminals handling petroleum products. It recently has expanded its capacity to handle ethanol at its terminals and pipelines. The Plantation Pipe Line project is the company's first testing for the optimization of biodiesel transport via pipeline.

Kinder Morgan conducts first test of B5 in pipeline

Web exclusive posted Oct. 21, 2008 at 2:18 p.m. CST 

 
 The American Oil Chemists' Society is seeking participants for a biodiesel feedstock quality test series. Feedstock suppliers and producers who operate laboratories are encouraged to participate. The series is part of the AOCS Laboratory Proficiency Program, one of the world's most extensive proficiency programs for oil and fat-related commodities, oilseeds and edible fats. 
 
 The goal of the proficiency program is to assist laboratories in achieving and maintaining peak performance of staff and equipment. This latest test series is designed to further that goal by assessing the proficiency of labs at measuring common aspects of feedstock quality prior to any processing. Parameters that will be analyzed include cleanliness, purity, oxidative stability and fatty acid composition.
 
 AOCS Technical Specialist Gina Clapper said the society is currently assessing interest for the test series. The deadline for participation inquiries is Nov. 20. Participants will be charged an enrollment fee for receiving samples and AOCS reports; however the exact price has not been determined. Clapper would like to have at least 40 participants for the series and added that they are able to accommodate labs from anywhere in the world.
 
 Those interested in taking part in the test series can contact the AOCS technical services division at 217-693-4809 or e-mail <a href="mailto:ginac@aocs.org">Clapper at ginac@aocs.org</a>.

AOCS seeks lab participants

Web exclusive posted Oct. 22, 2008 at 10:14 a.m. CST 
 
 The California Air Resources Board recently unveiled its Proposed Scoping Plan to reduce greenhouse gas (GHG) emissions to 1990 levels by 2020. The plan is the result of a draft that was released in June for public input and received more than 42,000 comments; the final version is scheduled to be approved by the board Dec. 11.
 
 The principle of the plan is to include a variety of strategies to reduce emissions, including a solar initiative and a range of regulations meant to reduce emissions from trucks and ships docked in state ports. The plan also includes a cap-and-trade GHG emissions reduction program which will be linked to the Western Climate Initiative to create a regional market system for carbon emissions.
 

 The plan, which may be implemented as early as 2009, could provide a significant boost for biodiesel demand, particularly for biodiesel produced in-state through the use of sustainable feedstocks. Joe Gershen, vice president of marketing for California's Tellurian Biodiesel Inc., said state officials are "pretty bullish" on the use of renewable diesel to reduce carbon dioxide emissions. The only "renewable" diesel that is widely available now is biodiesel, so it can be assumed that greater percentage mandates for renewable diesel would equal more demand for biodiesel. 
 
 Gershen warned that while it looks good for now, he's only cautiously optimistic about the plan helping California's biodiesel industry, adding that the current volatile economic situation could impact the outcome of the plan in unknown ways. 
 
 CARB was required to prepare the scoping plan as part of Assembly Bill 32, formally known as the Global Warming Solutions Act of 2006. The bill was signed into law in 2006 and required the state to reduce its GHG emissions to 1990 levels by 2020.
 
 The Proposed Scoping Plan can be viewed in its entirety at <a href="http://www.arb.ca.gov">www.arb.ca.gov</a>.

California energy plan could benefit biodiesel

Web exclusive posted Nov. 5, 2008 at 11:24 a.m. CST 
 
 Germany's Environment Ministry ruled in late October that the 2009 biofuel production mandates for the country will be reduced by one percent, down to 5.25 percent overall, and biodiesel derived from soy and palm oils will be eliminated from the list of qualified biofuels. The new regulations will become effective in early 2009, however, they will be retroactive to Sept. 26, 2008.
 
 The ministry stated its decision to rule out biodiesel made either wholly or partially from soy or palm oils is in line with an attempt to use more sustainable raw materials in the country's biofuel production.
 
 Germany-based Petrotec AG, a biodiesel producer currently operating two waste grease-to-biodiesel facilities with a total capacity of approximately 55 million gallons, issued a statement in support of the ministry's new policy. "The federal government is taking an initial step towards the sustainability of biofuels," chief executive officer Roger Böing said. "What it also needs to do, however, with immediate effect, is finally permit again in Germany those raw materials with the best sustainability and climate value, such as used cooking oils and animal fats and oils, for blending purposes! Bans and exclusions alone are not enough – domestic, environmentally-friendly raw materials and technology are the order of the day."

 
 Although the new regulations have not addressed the issue of no subsidies for biodiesel produced from waste materials, Petrotec was encouraged by recent comments made by the ministry's leader, Sigmar Gabriel, signaling the government's support for biofuels produced in that fashion. Falk von Kriegsheim, head of investor and media relations at Petrotec, told Biodiesel Magazine the company is "quite confident" the government will take action soon and change the law to foster biodiesel based on waste products.
 
 The new regulations also include greenhouse gas reduction quotas for fuel beginning with a reduction percentage requirement of three percent in 2015, and up to seven percent by 2020.
 
 A review for possible adjustment of quotas was set for Dec. 31, 2011.

Roger Böing, chief executive officer, Petrotec AG./PHOTO: PETROTEC AG.

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Germany rules out soy and palm biodiesel

Web exclusive posted Oct. 24, 2008 at 2:29 p.m. CST 
 
 Algae production for biofuels has immense market potential and a bright future, said Vinod Khosla, founder of Sun Microsystems Inc. and a venture capitalist who is funding many alternative energy start-ups. However, he's not quite ready to invest in algae. 
 
 Khosla told more than 700 people attending the Algal Biomass Summit in Seattle on Oct. 23 that he has five criteria for investing in cutting edge energy technologies. Algae meets four of those criteria but fails on the last. Khosla said he believes the engineering problems of growing and harvesting algae are manageable. He thinks eventually algae will be competitive with petroleum at a price of $50 per barrel and that algae production will scale up to industrial size with costs that will fall as projects are scaled up. And he believes algae will have manageable startup costs and a quick innovation cycle.
 
 Where algae fails to meet Khosla's criteria is that he doesn't believe algae will be able to compete unsubsidized with petroleum and other alternatives unsubsidized in the next five to seven years. "But don't get me wrong," he added. "I believe in algae. I wouldn't be here talking to you if I didn't."
 

 What algae needs, Khosla said, is a "black swan" solution. Black swans are those very important, industry disrupting ideas that may seem obvious in retrospect but no one forecast beforehand. "There are a lot of smart people in this room," Khosla said. "I wouldn't be surprised if the black swan for algae was in this room right now. I am convinced that someone here will break the code. What it will take is someone willing to look outside the box for answers."
 
 Algae's ability to potentially produce thousands of gallons of oil per acre will be the factor that will allow it to become competitive in the marketplace, Khosla said. In this respect, he sees cellulosic ethanol as algae's main competitor. Algae will have to address the issues that face the cellulosic ethanol industry, such as nutrient and water management, harvesting and storage, as well as energy consumption. "Algae can get above the production of gallons per acre of cellulosic ethanol," Khosla said. "We believe that cellulosic ethanol can get down to a cost of $1.50 to $2.00 per gallon. That is what algae is missing today."

ABS: Is it time to invest in algae?

Web exclusive posted Oct. 24, 2008 at 2:38 p.m. CST 
 
 The subprime credit crisis may be causing havoc on Wall Street, but algae producers should still be able to find funding from eager investors, according to a panel of experts who discussed venture capital and equity financing at the Algae Biomass Summit in Seattle in late October.
 
 "The crisis will have an impact on investment, but the impact will be less on cleantech (clean technology)" said Robert Nelsen, cofounder of ARCH Venture Partners. "There will still be people with a lot of money to invest. Some of the company valuations will come down, and that will drive the casual investors out. But the professional venture capitalists will still put money in."
 
 People with the cash to invest aren't going to let that money sit under their mattresses, said Jim Long, a partner with Gabriel Ventures. The investment situation for algae is actually better than it was a year ago, he added. The financial crisis will force investors to look for higher quality deals and companies should have to expect more scrutiny and due diligence before completing a deal.
 
 The panelists agreed that this was a good time for companies to continue their research and development efforts. Those companies that are ready to move towards pilot and demonstration projects in the next two years will be well positioned to attract investment, said Josh Green, a partner with Mohr Davidow Ventures. "What you can create in the next two years will be the difference between the winners and losers," Green said.
 
 Algae companies will not be served well by thinking small, Nelsen said. Given the size of the transportation fuel and other markets that could be served by algae, most venture capitalists won't be interested in projects that don't have the potential for creating at least a billion dollars of value. Long concurred, but added that another key area for investors will be the industries that will support the algae industry, comparing it to the California gold rush of the 1840s. "I am interested in the companies that sell the picks, shovels and Levis," he said. "They made as much or more money as the miners."
 
 In order to attract private industry funding, algae producers will have to show potential investors how they are creating value in their companies and decreasing risks, Long said. Producers will have to figure out how much investment will be needed to take their companies to next level. 

 
 Companies need to decide how much equity funding they will take as opposed to debt funding, Nelson added. "A lot depends on how independent you want to be," he said. "Many companies will decide to partner with large companies earlier because they will need billions of dollars to reach the ultimate scale." 
 
 There are many kinds of equity funding, Green noted. While venture funding and other kinds of early funding are vital to getting an industry off the ground, debt funding will likely be needed to take the final step to become a major industry. However, there is a danger when obtaining debt – if a growing company stumbles and fails to keep adding value, it can easily wind up being owned by its creditors, he added.

ABS: Hard times may be good for algae

Web exclusive posted Oct. 27, 2008 at 11:37 a.m. CST 
 
 Just days after releasing the draft regulation for the California Low Carbon Fuel Standard, the California Air Resources Board received a letter from members of the New Fuels Alliance, an organization of advanced biofuel developers and supporters who are calling into question the board's intent to enforce indirect effects.
 
 The letter was signed by executives and chief executive officers from 25 biofuel companies, including New Generation Biofuels, Renewable Energy Group, Sustainable Biodiesel Alliance, and Primafuel Inc. Leading advanced biofuel investor Vinod Khosla with Khosla Ventures, and top advanced biofuel researcher Dr. Frances H. Arnold also signed the letter.
 
 The letter noted that the industry generally supports research on indirect effects of any kind, including CARB's subset indirect land use change (ILUC), but warned that enforcing indirect effects prematurely or in a piecemeal way would be catastrophic for advanced biofuel development. "There is no model today that comes close to capturing the interplay of economic, institutional, technological, cultural and demographic variables inherent with quantifying the indirect impact of any fuel," the letter stated.
 
 "The biofuels industry is firm in its commitment to produce sustainable fuels," said Brooke Coleman, executive director of the New Fuels Alliance. "But we are equally adamant that renewable fuels be subjected to the same regulatory standard as other fuels participating in the low carbon fuel standard (LCFS). As it stands today, biofuels are held to a higher standard than all other fuels, including oil."
 
 According to the alliance, the proposed LCFS regulation would be the first in history to enforce indirect, market-mediated effects against any product in the world, and to date, the regulation only applies indirect effects against biofuels. "For months CARB has been promising to investigate the indirect, market-mediated effects of other fuel pathways," Coleman added, "but it hasn't happened."
 

 Earlier this year, 27 leading scientists and researchers expressed similar concerns in a letter to CARB, that said "[a]s researchers and scientists in the field of biomass to biofuel conversion, we are convinced that there simply is not enough hard empirical data to base any sound policy regulation in regards to the indirect impacts of renewable biofuels production. The field is relatively new, especially when compared to the vast knowledgebase present in fossil fuel production, and the limited analyses are driven by assumptions that sometimes lack robust empirical validation."
 
 The New Fuels Alliance emphasized that there are two distinct categorical problems with the draft regulation: (1) the public policy decision to enforce indirect effects of any kind is unprecedented, was not ordered by the California governor or legislature, and has not been publicly vetted; and, (2) the science of "indirect land use change" is extremely imprecise, and is therefore unreasonably dependent on the assumptions made by ARB staff. "It is misleading to suggest that the decision to include indirect effects in the LCFS is a scientific one," the group says. "It's a public policy decision. But the science itself is suspect as well."
 
 Proponents of including indirect land use change in the LCFS insist that indirect land use change impacts exist, and therefore must be included. But the New Fuels Alliance letter directly questioned this rationale. "While it is likely true that zero is not the right number for the indirect effects of any product in the real world, enforcing indirect effects in a piecemeal way could have very serious consequences for the LCFS," the letter stated. "For example, zero is also not the right number for the indirect impact of producing a gallon of petroleum, using more electricity from coal and natural gas, producing advanced batteries and hybrid vehicles, or commercializing fuel cell technology. Yet, to date, ARB has not devoted any significant LCFS rulemaking resources to investigating the indirect effects of other fuels. If ARB is to enforce indirect, market-mediated effects, they must be enforced against all fuel pathways."
 
 "We have a very difficult situation emerging here," Coleman said, "in which the author of the GREET model on which the LCFS is based -- Dr. Michael Wang -- says that today's biofuels are not causing indirect land use change in other countries, while ARB staff is proposing to penalize today's and tomorrow's biofuels for indirect land use change in other countries. And while we debate who's right, we are nowhere with regard to analyzing and discussing the indirect effect of other fuel pathways."
 
 "We are not even close to understanding the indirect effects of all these fuels, indirect land use change included, well enough for a regulation to assign a carbon score to a single gallon of fuel," added Duncan McFetridge, a spokesman for the California Renewable Fuels Partnership, which is affiliated with the New Fuels Alliance. "The GTAP model being used by CARB was not designed or peer-reviewed for this type of work." The New Fuels Alliance believes that the right policy outcome is to enforce the LCFS based on direct impacts, including direct land use change, and set deadlines for investigating the various indirect impacts of the multiple fuel pathways.
 
 "It is very difficult to buy into the hysteria that biofuels are today causing Brazilian rainforest deforestation when exports of corn and soybeans have not dropped in recent years and the prices of these commodities track up and down with oil prices not biofuel demand," Coleman added. "So before any of this starts happening in the real world let's take the time to get it right, for all fuels."
 
 "The regulatory actions in California are critical not just because of the size of the state's fuel market and the ongoing need for affordable motor fuel, but because many other states and regions in the country are looking to California for leadership on this issue," McFetridge said. "For CARB to pick winners and losers, by virtue of holding certain fuels to tougher standards, goes against the very intent of the LCFS."
 
 For additional information, including copies of the letters cited, visit <a href="http://www.newfuelsalliance.org/">http://www.newfuelsalliance.org/</a>.

Alliance: Too soon to enforce indirect land use

Web exclusive posted Oct. 28, 2008 at 9:45 a.m. CST 

 
 Researchers at Flinders University in Adelaide, Australia, have developed an additive that lowers the cloud point temperature for biodiesel made from animal fats, which are high in saturated fats. The additive lowers the cloud point for animal-fats-based biodiesel from 50 degrees to 21 degrees Fahrenheit (10 degrees to minus 6 degrees Celsius), which increases the potential for using biodiesel made from animal fats in colder climates.
 
 The $1 million research project to develop the additive was largely funded by Meat and Livestock Australia, which provides marketing and research services to its 43,500 livestock producer members. MLA has secured a provisional patent for the technology and is partnering to commercialize the additive with The Midfield Group, an Australian meat processor, and Food Processing Equipment, an Australian food processing equipment company. 
 
 According to the MLA, the Australian industry currently produces about 600,000 metric tons of animal fats per year, which is primarily used in the manufacturing of soap and synthetic rubber. "There is a huge potential market for tallow-based [biodiesel]," said Dr. Stephen Clarke, the research team's leader and lecturer at Flinders University's School of Chemistry, Physics and Earth Sciences. "The additive that Flinders has developed removes one of the major impediments to the use of tallow-based [biodiesel]."

Additive lowers tallow-based biodiesel cloud point 

Web exclusive posted Oct. 27, 2008 at 2:49 p.m. CST 
 
 The Pennsylvania Energy Development Authority has approved a total of $624,000 in Alternative Energy Investment Fund grants to develop and expand biodiesel operations in Pennsylvania.
 
 Susquehanna Smart Fuel LLC of Montoursville, Pa., was awarded $462,000 to increase canola oil biodiesel feedstock production by 120,000 gallons per year. The company was presented the PAgrows and Center for Farm Transitions Value-Added Excellence Award by the Pennsylvania Department of Agriculture Aug. 19 during the state's Ag Progress Days in Rock Springs, Pa. The company also sells food-grade canola oil.
 
 Eagle Bio Diesel of Elk County, Pa., has been awarded $162,020 to develop a biodiesel plant that initially will produce 792,000 gallons of biodiesel annually using waste vegetable oil as a feedstock.

Pennsylvania awards $624,000 for biodiesel projects

Web exclusive posted Oct. 27, 2008 at 3:01 p.m. CST 
 

 The U.S. DOE has awarded $885,000 to its Ames Laboratory, which is operated by Iowa State University in Ames, to research using nanoscale particles to harvest chemical compounds-such as triglycerides, neutral lipids, and fatty acids-from microalgae for biodiesel production. Ames Lab is required to secure $232,224 in additional funding for the three-year project led by Victor Lin, Ames Lab chemist and ISU chemical and biological science program director.
 
 According to Kerry Gibson, a media relations staff member at Ames Lab, ISU just completed a research project that successfully used chemically-coated, honeycomb-like silica nanoscale particles to penetrate plant cell walls to deliver molecules to the cells. The biodiesel research project will attempt to use the nanoscale particles to penetrate the cell walls of microalgae to harvest chemicals from the algae to produce biodiesel without destroying the organisms. "It's basically nanofarming," Gibson said.
 
 Dr. Lin is also studying using nanoscale porous catalysts to ferment gasified waste into ethanol. In August, Ethanol Producer Magazine wrote <a href="http://www.ethanolproducer.com/article.jsp?article_id=4645">Nanoscale catalyst converts syngas to ethanol</a>.

Ames Lab to research algae biodiesel nanofarming

Web exclusive posted Oct. 27, 2008 at 4:57 p.m. CST 
 
 <a href="http://www.globalgreensolutionsinc.com">Global Green Solutions Inc., </a>which was formed two years ago to develop and market renewable energy technologies, recently announced it is abandoning its algae-based project in order to focus on a waste wood biomass steam generation project.
 
 The company had been focusing on the two projects in tandem, but after a business analysis determined that the algae-to-oil project, known as Vertigro, would require additional significant research and development investment before it could be commercialized, the company decided to get out – opting to invest all of its efforts into Greensteam, its biomass combustion system. "Market economic conditions dictate that we cannot afford to continue to develop and commercialize both technologies," a company release stated. "Therefore, we are restructuring [the company] to focus entirely on the Greensteam business."

 
 In 2007, Global Green partnered with Valcent Products Inc. to commercialize Valcent's Vertigro algae system with plans to start building pilot-scale plants for customers before the end of 2008. Vertigro, according to the company, is a vertical bioreactor capable of produces mass amounts of algae using little water and space. The algae can also absorb carbon dioxide, making it possible for the company to become capable of generating carbon credits. Global Green had initially partnered with Valcent Products Inc. to form Vertigro Algae Technologies LLC. Global Green sold its 50 percent stake in the company to Valcent in exchange for $5 million cash, five million shares of Valcent stock and the rights to use the algae technology in the future.
 
 Global Green plans to use the money generated from the sale of its portion of Vertigro to fund the early stages of multiple Greensteam projects.
 
 Biodiesel Magazine wrote about Vertigro in its December 2007 issue. <a href="http://www.biodieselmagazine.com/article.jsp?article_id=1959&q=&page=all">Click here to read Feedstock Frenzy.</a>

Global Green: Algae project out, biomass project steams forward

Web exclusive posted Oct. 28, 2008 at 2:18 p.m. CST 
 
 Soybeans will continue to play an important role in the world food supply, although biodiesel has helped the industry with excess soy oil stocks, according to United Soybean Board Chief Executive Officer John Becherer. 
 
 Becherer reflected on biodiesel's role in the soybean industry in an interview with Domestic Fuel given at the 2008 Borlaug Dialogue in Des Moines, Iowa, in mid-October. The USB was a sponsor of the World Food Prize which was awarded to former U.S. Senators Bob Dole, R-Kan., and George McGovern, R-S.D., at the symposium.

 
 With the value of soybeans being lead by soybean meal demand, the build up in soybean oil stocks acted as a drag on prices, Becherer said. "We had very low prices for soybean oil and could not move the excess oil," he added. "Developing biodiesel directly raised the farm gate value for soybeans." In turn, the biodiesel industry's growth has opened opportunities for other oil feedstocks, he said. "I don't see that stopping. I don't think soybean oil producers ever believed we would be the be-all or end-all for producing biodiesel."
 
 Becherer was interviewed while attending the Borlaug Dialogue which featured an array of international speakers and industry leaders talking about agricultural and global development over the next 50 years. To listen to the entire interview, visit <a href="http://domesticfuel.com/2008/10/18/soybean-board-building-demand-for-biodiesel/ ">Domestic Fuel's Web site. </a>

Soybean board CEO addresses biodiesel's role in soy market

Web exclusive posted Oct. 28, 2008 at 2:35 p.m. CST 
 
 Civil engineering setbacks coupled with inclement weather from the Monsoon season have resulted in China Clean Energy Inc. delaying construction of its Jiangyin biodiesel plant. The 100,000-metric-ton (30 MMgy) plant is now expected to begin production in the second quarter of 2009. 
 
 "When they were digging the soil, eventually they had to dig deeper than they originally expected," Ed Job, a hired consultant for China Clean Energy, told Biodiesel Magazine. 
 
 The company has another biodiesel plant in China's Fujian Province, which began biodiesel production in 2005 but has since stopped producing because of the market conditions. "They shut down their biodiesel earlier in the year because the raw material costs shot up, and diesel prices are fixed in China and their margins did not make it worth producing it," Job said. "They are monitoring raw material prices and will resume biodiesel production when they can get margins that make sense again." 
 

 The biodiesel industry in China is very different than that which exists in the United States, Job said. "The United States has subsidies and uses different raw materials so it's very hard to compare," he said. "In china you have no subsidies – the government does not support the industry – and they use waste vegetable oils, not edible virgin oils." 
 
 Since 1995, China Clean Energy has been making specialty chemicals like monomer and dimer acids from waste oils and greases. "The production of monomer acid is very similar to the production of biodiesel, so that's how they entered the biodiesel market," Job told Biodiesel Magazine. 
 
 The original China Clean Energy plant in Fujian Province has an installed biodiesel production capacity of 10,000 metric tons per year (3 MMgy) and an 18,000 metric ton annual capacity to produce specialty chemicals. 
 
 As a result of the construction delay, the company implemented a "make-good" provision. "When they did financing to build the new plant, they set goals including starting production on the first of January 2009, and if management did not reach goals, they would transfer some of the shares to the private placement investors," Job said. In January 2008, certain members of the company's management deposited an aggregate of 1.5 million shares of common stock into an escrow account and, as a result of the construction delay China Clean Energy is disbursing the 1.5 million shares to private placement investors before the end of January 2009.

China Clean Energy delays plant construction

Web exclusive posted Oct. 29, 2008 at 10:09 a.m. CST 
 
 The U.K. government has committed between $4.7 million and $8.4 million in initial funding for the Algae Biofuels Challenge, an initiative to accelerate the commercialization of algae oil production as a feedstock for producing biodiesel.
 
 The project will fund grants to help researchers identify and develop strains of microalgae for maximum oil content and biomass yield, maximum solar conversion efficiency and sustained cultivation, and for the design and engineering of mass-culture systems. The project will further fund construction of demonstration-scale plants, which will likely be located in a tropical or sub-tropical climate. The ultimate goal is to begin using algae oil-based biodiesel as a substitute for petroleum diesel by 2020.
 
 The Algae Biofuels Challenge is managed by The Carbon Trust, an independent company in the U.K. that is funded by the Department for Energy and Climate Change, the Department for Business, Enterprise and Regulatory Reform, the Scottish Government, the Welsh Assembly Government and Invest Northern Ireland. The U.K. Department of Transportation also announced that it will contribute funding.

UK to fund commercialization of algae oil production

Web exclusive posted Oct. 29, 2008 at 10:38 a.m. CST 

 
 On Oct. 28, the USDA corrected its figures from the Oct. 10 World Agricultural Supply and Demand Estimates, lowering both corn and soybean estimates. 
 
 The U.S. soybean acreage was reduced by 1.1 million acres. Soybean production is forecast at 2.94 billion bushels, down 45 million from the Oct. 10 forecast. Soybean exports are projected 30 million bushels lower at 1.02 billion bushels reflecting reduced supplies and higher prices. Soybean crush is unchanged and as a result the soybean meal and soybean oil balance sheets are unchanged. Ending stocks are projected at 205 million bushels, down 15 million from the Oct. 10 forecast. The U.S. season-average soybean price range is projected at $9.70 to $11.20, up 10 cents on both ends of the range.
 
 The corn balance sheet for 2008-'09 was revised, lowering planted and harvested areas by 1 million acres, with corn production forecast at 12.03 billion bushels, down 167 million bushels from the Oct. 10 forecast. As a result of changes in acres, there were changes in several projections. Feed and residual use is projected 50 million bushels lower at 5.3 billion with the smaller crop and higher expected sorghum feeding. Corn exports are projected 50 million bushels lower at 1.95 billion on tighter supplies. Ending stocks are projected at 1.08 billion bushels, down 66 million from the previous forecast. The season-average farm price range is raised five cents on each end of the range to between $4.25 and $5.25 per bushel.
 
 Corn and soybean prices were up sharply at the start of morning trading on the Chicago Board of Trade on Oct. 28th. However, the initial gains were lost later in the day. As harvest pressure lets up and the financial crisis influence wanes, the grain markets are expected to recover from the financial-crisis-led plummet that occurred in October, and follow the more traditional market drivers in fundamental supply and demand.

November 2008

Business Briefs

Petrotec increases net sales

Nova Biosource Fuels reports third-quarter loss

Cargill opens crushing facility

Nu-Energie, EnerSight partner for feedstock

Sustainable Fuels receives loan

Green Star Products increases revenue

Greenline, Blue Sun make Inc. magazine list

Solazyme receives expansion funding

Beatrice Biodiesel files for bankruptcy

Hardy joins Affiliated Engineers

Biodiesel association names vice president

Tri-State Biodiesel receives sustainability award nomination

Columns

Safety Should Truly Come First

Sustainability is Key for Biodiesel Industry

Featured

NBB opens "green" building

The early bird gets better rates for NBC '09

Oilseed Comes of Age

The Truth Behind the Claims

Algae Interests Align

The Skinny on Fats

A Greasy Alternative

Continued Strength in Oil Prices

Sustainability is Key for Biodiesel Industry

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

Business Briefs

Petrotec increases net sales

Nova Biosource Fuels reports third-quarter loss

Cargill opens crushing facility

Nu-Energie, EnerSight partner for feedstock

Sustainable Fuels receives loan

Green Star Products increases revenue

Greenline, Blue Sun make Inc. magazine list

Solazyme receives expansion funding

Beatrice Biodiesel files for bankruptcy

Hardy joins Affiliated Engineers

Biodiesel association names vice president

Tri-State Biodiesel receives sustainability award nomination

Columns

Safety Should Truly Come First

Sustainability is Key for Biodiesel Industry

Featured

NBB opens "green" building

The early bird gets better rates for NBC '09

Oilseed Comes of Age

The Truth Behind the Claims

Algae Interests Align

The Skinny on Fats

A Greasy Alternative

Continued Strength in Oil Prices

Sustainability is Key for Biodiesel Industry

November 2008