The Colorado Agricultural Value Added Development Board, part of the Colorado Department of Agriculture, awarded $150,000 in Advancing Colorado's Renewable Energy grants to two biodiesel-related projects. 
 

 In partnership with Colorado State University in Fort Collins, Colo., the International Center for Appropriate and Sustainable Technology (ICAST) in Lakewood, Colo., was awarded $100,000 to assist with the implementation of two farm-scale oilseed crushing and biodiesel production facilities. According to Raphael Shay, sustainability project manager for ICAST, one of the facilities will be at a feedlot in Stratton, Colo. "By producing meal with the oilseeds, we can actually make the project viable," he said. "The biodiesel in this case is the coproduct. We're hoping to use this as a demonstration project so that other producers see how it can be done." 
 
 While growers in the region are more familiar with sunflowers, Shay said soybeans will be used as a feedstock "just because sunflowers are very valuable in the market right now." 
 
 The facility is expected to be operational this summer and will produce 100,000 gallons of biodiesel per year. The glycerin byproduct might be diluted with wastewater and sprayed onto fields, or it might be used as a feed additive. 
 
 Shay said the location for the second facility hasn't been finalized, but it might be built at the USDA Agricultural Research Service's Central Great Plains Research Station in Akron, Colo. There, dryland canola and camelina oilseeds from test fields would be crushed for use as a straight vegetable oil fuel or converted into biodiesel to be used in research center tractors. Students from the Colorado School of Mines in Golden, Colo., will design and build the oilseed fuel operations at the research center. Shay said students from the University of Denver are expected to work on a model business plan for farm-scale biodiesel production facilities for ICAST. 
 
 "Speaking with producers, one of the problems that we found [often] is the very unstable price of fuel, which makes it really hard for them to plan whether their farms will be viable or not," Shay said. "By producing biodiesel with on-farm crops, we therefore isolate the producers from price variability."
 
 In 2007, ICAST and CSU studied the performance of five oilseed crops-soybeans, safflowers, sunflowers, canola, and camelina-at nine locations within Colorado: Fort Collins, Akron, Walsh, Dailey, Idalia, Julesburg, Brandon, Yuma and Rocky Ford. Crop performance was tested under three environmental conditions, including dryland, limited irrigation and full irrigation. The collected data included seed yield, moisture content, plant height and pod shattering.
 
 Over the past two years, ICAST has been using a mobile biodiesel demonstration unit, dubbed Big SID (Seeds Into Diesel), to educate farmers and ranchers in Colorado and Wyoming about how to make biodiesel on the farm. It includes a seed crusher and biodiesel reactor, is mounted on a donated flatbed military truck and is designed for mobile farm-scale biodiesel production. Depending on seed oil content, the oilseed crusher can process five tons of seed per day, producing 16 to 20 gallons of oil per hour. The idea is that a Big SID-type unit could be easily transported to produce oil and meal for individual farms. "We actually have a few projects that are moving into the implementation phase," Shay said, adding he knows of at least two other farmers who have started their own farm-scale biodiesel production operations after visiting the Big SID mobile unit. 
 
 Colorado State University's Golden Plains Area Extension Service received the second ACRE grant. A $50,000 research grant will be used to evaluate how energy crops should be rotated on northeastern Colorado dryland farms. "What we're trying to do is take the potential renewable energy crops-whether they're biodiesel, ethanol or cellulosic sources-and see how they fit into a cropping sequence," said Alan Helm, area extension agent for CSU. "Which crops follow which best? Which crops don't follow? If we start growing some of these alternative crops, whether it's canola or camelina, where do they fit into our cropping systems?" 
 
 Helm said canola, camelina and sunflowers will be rotated with dryland corn, grain sorghum, forage sorghums, winter wheat and other crops at the Central Great Plains Research Station to determine how well the crops grow in sequence. "Every crop will be planted into every residue," he said. The ACRE grant covers the first two years of the project, but additional grants will be sought to extend the project.

This mobile biodiesel demonstration unit, dubbed Big SID (Seeds Into Diesel), is used to educate farmers and ranchers in Colorado and Wyoming about making biodiesel on the farm./PHOTO: INTERNATIONAL CENTER FOR APPROPRIATE AND SUSTAINABLE TECHNOLOGY

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Dryland crops are rotated in sequence at the Central Great Plains Research Station in Akron, Colo./PHOTO: USDA

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Colorado grants assist farm-scale biodiesel projects

A group of Spanish developers working under the company name Ecofasa, headed by chief executive officer and inventor Francisco Angulo, has developed a biochemical process to turn urban solid waste into a fatty acid biodiesel feedstock. "It took more than 10 years working on the idea of producing biodiesel from domestic waste using a biological method," Angulo told Biodiesel Magazine. "My first patent dates back to 2005. It was first published in 2007 in Soto de la Vega, Spain, thanks to the council and its representative Antonio Nevado." 

 
 Using microbes to convert organic material into energy isn't a new concept to the renewable energy industries, and the same can be said for the anaerobic digestion of organic waste by microbes, which turns waste into biogas consisting mostly of methane. However, using bacteria to convert urban waste to fatty acids, which can then be used as a feedstock for biodiesel production, is a new twist. The Spanish company calls this process and the resulting fuel Ecofa. "It is based on metabolism's natural principle by means of which all living organisms, including bacteria, produce fatty acids," Angula said. "[It] comes from the carbon of any organic waste." 
 
 He defined urban waste as "organic wastes from home like food, paper, wood and dung," and added that any carbon-based material can be used for biodiesel production under the Ecofa process. "For many years, I wondered why there are pools of oil in some mountains," he said, explaining the reasoning behind his invention. "After delving into the issue, I realized that [those oil deposits] were produced by decomposing organic living microorganisms." This, in Angulo's mind, sparked the idea that food waste and bacteria could be turned into fatty acids that could react into biodiesel. Two types of bacteria are under further development by Biotit Scientific Biotechnology Laboratory in Seville, Spain: E. coli and Firmicutes. The Ecofa process also produces methane gas, and inconvertible solids that can be used as a soil amendment or fertilizer. "There is a huge variety of bacteria," Angulo said. "Currently, [biodiesel producers] receive a fat that must be processed through transesterification into biodiesel, but we are also working on other types of bacteria that are capable of producing fatty acids with the same characteristics as biodiesel." He said this would eventually allow producers to skip the transesterification step. 
 
 Ecofasa may avoid the ongoing food-versus-fuel debate and its expected successor, indirect land use, with its Ecofa process. "It would not be necessary to use specific fields of maize, wheat, barley, beets, etc., which would remain for human consumption without creating distortions or famines with unforeseeable consequences," the company stated in a press release. "This microbial technique can be extended to other organic debris, plants or animals, such as those contained in urban sewage. You can even experiment with other carbon sources, and this opens up a lot of possibilities. It is only necessary to find the appropriate bacteria." 
 
 The company created its name by combining the term "eco-combustible" with F.A., the initials of the inventor. 
 
 "Today we feel that we can produce between one and two liters [of biodiesel] per 10 kilograms of trash," Angulo said. That's a little more than one-fourth to one-half of a gallon for every 22 pounds of trash-or between 24 and 48 gallons per ton of urban waste. "We are working to improve that," he said.

Francisco Angulo, developer of the Ecofa process, demonstrates the operation of a car with Ecofa biodiesel./PHOTO: ECOFASA

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Francisco Angulo, left, talks about the benefits of the Ecofa process during a conference panel discussion./PHOTO: ECOFASA

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Spanish company touts process to turn urban waste into biodiesel

Gold Star Biofuels, a Goldstar Farms Ltd. company based in Ghana, has formed a joint venture with Aiken, S.C.-based USFuelTech LLC, a provider of turnkey modular biodiesel production facilities, to design and build small biodiesel plants in Chile that will use locally cultivated jatropha as a feedstock.
 
 Gold Star Biofuels aims to install up to eight biodiesel production units, each producing approximately 8 MMgy using USFuelTech's proprietary process technology. The first production unit, to be built near Puerto Montt, will supply B20 to a 43-megawatt power facility owned and operated by Energy Partners Chile in Degan on the island of Chiloe, according to Executive Director Jack Holden. 
 
 "We will have about 5 [million] to 6 million [jatropha] acres in Chile by the time we get done, mostly in the northern part of the country," he said. To start, the company has secured agreements with Chilean farmers to cultivate jatropha on 2.5 million acres. The delivery of biodiesel to Energy Partners Chile for electricity generation is expected to occur within two years. "It's going to take about five to seven years to get to the point where we are completely independent," Holden said.
 
 USFuelTech's biodiesel processing units are capable of converting virgin oils and waste vegetable oils into biodiesel. However, the speed at which they operate depends on the type of feedstock that's used, according to Robert Horning, president and chief executive officer of USFuelTech. The units have total output volumes ranging from 5 MMgy to 20 MMgy. "We can build and transport a 5 MMgy processing unit in a 40-foot container, excluding storage tanks," he said. "All the units have skids, so you could load it on the back of a container truck. They're all self-contained, meaning there's nothing else you need except electricity."
 Specifically for Gold Star Biofuels, 

 
 USFuelTech will be shipping some biodiesel facilities preassembled, while some will be delivered in pieces that Gold Star Biofuels can assemble in Chile, according to Holden. 
 
 In addition to its line of modular bio-diesel production refineries, USFuelTech offers biomass-to-energy production "pods" that can gasify crushed jatropha cake left over from the biodiesel production process. The gas can then be converted into electricity or heat for rural Chilean villages, according to Horning. The biomass-to-energy units can gasify other agricultural residues, as well as municipal solid waste. "Essentially, we could use all the waste found in a rudimentary sewage system as an input stream for the biomass gasifiers and give it back to the villages in the form of either methane gas so they can use it to cook instead of using charcoal, or in the form of fuel to run a generator so they can for the first time have electricity for lights," Holden said.
 
 According to Horning, USFuelTech offers a variety of biomass-to-energy production facilities that can operate at 250 gallons per hour, 500 gallons per hour, 2,000 gallons per hour or 10,000 gallons per hour. Gold Star Biofuels will be installing 500-gallon-per-hour units in Chile, he said. The facilities come standard with a computerized "in-line process testing" station. According to Horning, this feature allows an operator to track data such as what feedstock is being used, water content levels, free fatty acid levels and other factors in real time during production. Not only can the data be monitored by the operator of the unit itself, but an overseer can observe the data from a remote location. This feature offers optimum interactivity between operators in different parts of the world and improves quality control procedures, he said. "You could actually run the plants from a central control panel from anywhere in the world," he said. "The other idea is to have video capability with Skype or something like that."
 
 In 2005, Goldstar Farms began cultivating jatropha in Ghana, where it has commitments from farmers to grow the crop on approximately 5 million acres. The company plans to begin producing biodiesel at its facility in Nkawkaw, Ghana, in 2009, according to Holden. 
 
 In addition to Chile, Gold Star Biofuels intends to begin cultivating jatropha in Columbia in mid-2009, and is evaluating the potential for growing jatropha in Mexico, the Republic of Sierra Leone and Nigeria. Holden said the company also identified a site south of Chicago for producing biodiesel from waste vegetable oil. 
 
 Holden said landowners agree to 50-year commitments to provide Gold Star Biofuels with jatropha. The company shares profits with landowners, provides medical insurance to all of its workers and their families, and supports local clinics and schools in the areas they operate. Instead of hiring migrant workers, it employs people year-round. Holden said it's part of Gold Star Biofuels' commitment to "being socially responsible."

USFuelTech LLC's biodiesel processing units can convert any virgin or waste vegetable oil into biodiesel./PHOTO: USFUELTECH LLC

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Gold Star Biofuels, USFuelTech to produce biodiesel in Chile

It is my honor to serve the industry for another year as chairman of the National Biodiesel Board. Although every year brings its own challenges to the industry, 2008 was especially trying for us all. The struggles we face mirror what many Americans are facing-tough economic conditions, severe cutbacks and uncertainty for the future. Like so many others, our industry is gasping for air even as biodiesel holds great promise in helping the country break free from the very undertow that holds us back. We create jobs. We create domestic demand. We stimulate growth in energy, the lifeblood of our nation.
 
 To add to the economic challenges, we found ourselves forced to take a defensive posture. We've invested significant resources to defend the U.S. biodiesel industry against European trade complaints, while opponents of biodiesel seek to raise doubt among consumers and policymakers by falsely accusing the renewable fuel of being unsustainable. 
 
 While science does not support the accusations, opponents of biofuels are still spending millions of dollars on negative campaigns to convince the public otherwise. The misinformation has permeated common beliefs and severely threatens the well-being of the biodiesel industry. The NBB recognized these threats in 2008 and began taking steps to combat them, seeking funding and launching new initiatives, including a Sustainability Task Force. We've launched www.BiodieselSustainability.com, a Web site to get the facts out on biodiesel's environmental benefits and its role in the food chain. We've held high-level editorial board meetings, and had placements in publications such as Time and USA Today since the unfounded attacks on biodiesel began. We are also engaging social networking sites such as YouTube, Facebook and others, which have become powerful tools in 
 shaping public perception. We anticipate great strides in fiscal year 2009 to combat faulty science and misinformation, but recovering from such blows will be a long, uphill battle. 

 
 Those efforts must continue in fiscal year 2010. 
 
 2008 brought accomplishments on the technical front, such as ASTM's passage of new specifications, including a B6 to B20 spec, which will open doors for biodiesel through greater original equipment manufacturer acceptance. In federal legislation, the blenders tax incentive was extended through December 2009, an expanded renewable fuels standard was passed, and the renewable diesel tax incentive was corrected so that only operations adding new refining capacity qualify, just to name a few. 
 
 We have also made great strides in feedstock development through the fiscal year 2009 program. We worked with the Danforth Plant Science Center and the Center for Evergreen Energy in St. Louis to host a biodiesel feedstock symposium. The event gathered experts to provide input for expanding feedstock supplies. 
 
 Our world-class team of professionals with diverse skills has not achieved these wins on its own. These victories are also the result of efforts by NBB members. Active members provide valuable input, support and action in all program areas. An engaged industry is powerful indeed.
 
 Ed Hegland
 NBB Chairman
 
 
 2009 marks my 10-year anniversary serving the NBB. Never in my nearly two decades of biodiesel business have we had a more challenging time. I know our members face enormous challenges and will be transitioning to respond to industry adjustments, including the production demands of the biodiesel renewable fuels standard. Despite these changes in our industry, our members have voted to substantially reduce producer dues by approximately 25 percent. This vote results in dues reductions for every producer-member.
 
 With new opportunities ahead, we continue to work for and with our members to set the course for the NBB in fiscal year 2010. Thank you to each of you who have participated in our intensive fiscal year 2010 prioritization process. We have held committee meetings, led a membership survey and hosted a member webinar. The process of finalizing priorities helps direct staff on industry priorities, and the allocation of financial resources to break down our industry's barriers. NBB programs have been critical for our industry's federal policy and technical achievements. It has helped nurture the growth of state biodiesel legislation. More than 600 biodiesel bills were introduced in 2008, compared with 300 in 2007. 

 
 Also, the petroleum outreach program launched www.BioheatOnline.com which gives dealers and consumers the tools to market Bioheat fuel and realize its benefits. It is also helping us work toward turning the tide of public perception on the food-versus-fuel debate and other misinformation campaigns.
 
 Part of the effort to overcome barriers began after the NBB created a Sustainability Task Force, which has been extremely active. It has been successful in fostering discussions and forming outside partnerships to ensure our industry stays on a sustainable path. This group developed important sustainability guidelines for the biodiesel industry to follow. Don Scott, an environmental engineer, is leading this group and coordinating industry efforts through a newly created director of sustainability position. Once again, feedstock-neutral support from soybean checkoff benefactors has increased in a meaningful way, leveraging our member dollars while answering the call to fend off attacks on the biodiesel industry and farmers. Agricultural producers continue to use their significant public policy influence to support biodiesel legislative priorities. Also, the contributions of the fats and protein organizations, which supply larger-than-ever feedstock volumes, have become active, critical partners.
 
 This year, we hope to see the blenders tax incentive extended past 2009; a resolution to the European Union trade case; positive movement of biodiesel in low-carbon policy, which is becoming "the issue" of our time, with many state legislatures taking the lead over the federal government in developing low-carbon fuel standards; better science applied to indirect land-use change modeling; and public acceptance of biodiesel as a sustainable fuel. We expect an increase in domestic demand for and consumption of biodiesel that will serve as a catalyst for integration in more market segments, such as home heating oil. These are no small tasks, but thanks to the work of members setting our priorities at the beginning of the year, we will have a path to follow for continued success.
 
 Gary Haer
 NBB Vice Chairman

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2009 Letters From Leadership

Web exclusive posted March 4, 2009, at 10:37 a.m. CST 

 
 A jatropha plantation company has joined forces with environmental stewardship and carbon credit project consultants to form <a href="http://www.jatrophabiojet.com">JatrophaBioJet Corp.</a>, a company that plans to develop the jatropha oil feedstock market for aviation fuels. <a href="http://www.abundantbiofuels.com ">Abundant Biofuels Corp.</a> is partnering with <a href="http://www.southpolecarbon.com">South Pole Carbon Asset Management Ltd.</a> and <a href="http://www.mitchhawkins.com/">Mitch Hawkins & Co.</a> to develop the jatropha oil market.
 
 According to Mitch Hawkins, chief executive officer for JatrophaBioJet, the company aims to play a role that so far has been unfilled. "You've got really three unrelated worlds," Hawkins said. "You've got the jatropha growers and developers who are all focused on biodiesel; you've got the aerospace industry which, as large as it is, is fairly very insular; and then you have the carbon credit industry, which is populated with very, very sophisticated people, but they focus primarily on the carbon offset activity almost completely and, while they do many, many different kinds of projects, the people in that industry are focused on the carbon offsets, they are not focused on the projects themselves.
 

 "There appears to be a space in the middle for someone to be able to interface," Hawkins continued, "to enable the jatropha-to-jet-fuel market and the handling of the attendant carbon offsets. We want to stand in the center of that space, to relate those three activities, to move the commodity from the plantation to the aircraft and to enable the carbon offset activity, which is attached when you replace petroleum fuel with biofuel."
 
 Hawkins said JatrophaBioJet's focus on aviation fuel is unique in the jatropha grower industry.
 
 "There is a need for biofuel feedstocks to be turned into jet fuel," Hawkins said, "and most of the focus of the jatropha industry has been on biodiesel. JatrophaBioJet intends to link jatropha growers to the aerospace industry. "We'll be sourcing supply contracts for jatropha oil," he said. "We will be refining it and it will get blended either by us or someone else, and then we will be handling contracts for sale. We will be handling contracts on both ends: the source contract and the sale contract."
 
 Abundant Biofuels is developing jatropha plantations in five countries, Hawkins said, while South Pole Carbon Asset Management has offices around the globe with 150 carbon credit projects underway. 
 
 For more information about Abundant Biofuels Corp. read <a href="http://www.biodieselmagazine.com/article.jsp?article_id=1959&q=&page=all ">"Feedstock Frenzy."</a>

JatrophaBioJet to source jatropha for aviation fuel

Researchers at the University of California, Davis, are growing jatropha on two-acre plots at three locations in California-near Davis, Bakersfield and El Centro-to test how the biodiesel feedstock fares in California's varied climates. The research is funded by Chevron Corp., which in 2006 invested $25 million in the California Biomass Collaborative to pursue advanced technology aimed at converting cellulosic biomass into transportation fuels. The jatropha was planted in April.

Jatropha was planted in the San Joaquin Valley near Bakersfield, Calif., by researchers at the University of California, Davis./PHOTO: UNIVERSITY OF CALIFORNIA, DAVIS

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UC Davis grows jatropha

Is it just me, or is this editor's note getting smaller?
 
 Actually, I wanted to make room for this letter to the editor we received in response to our January cover story, "Re-New-able York City." It reminds us as journalists that there are at least two sides to every story. It also reminds me that not everyone is going to see eye-to-eye.
 
 One place where people apparently do see eye-to-eye is the local coffee shop. Did you know that worldwide, people consumed 15 billion pounds of coffee last year? Our feature, "Wake Up and Smell the Coffee Biodiesel," written by Susanne Retka Schill, details some unique research being done at the University of Nevada-Reno, where coffee oil is being explored as a biodiesel feedstock. The researchers estimate that waste grounds from all the U.S.-based Starbucks alone could produce 2.9 million gallons of biodiesel annually. The number increases to 208 MMgy when the entire world's coffee production is calculated. Relatively speaking, this isn't a large amount, but a project like this would definitely have a dependable feedstock supply.
 
 Research seems to be the unintended theme of the Industry News section this month, as well. Check it out for results on oxidative stability and railcar lining tests in the U.S. and Europe. Spoiler alert: All results came back positive for the biodiesel industry.
 
 Jessica Sobolik
 Managing Editor
 <a href="mailto:jsobolik@bbiinternational.com">jsobolik@bbiinternational.com</a>

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Coffee Drinkers, Perk Up

I just finished reading "Re-New-able York City" in the January issue of Biodiesel Magazine and was disappointed to find the article so one-sided. It didn't give any space to the opponents of the New York City biodiesel mandate (we are advocates of an ultra-low-sulfur diesel heating oil mandate), and there was not a single mention of the negative environmental impacts of sourcing biodiesel from virgin feedstocks. 
 
 Less than 1 percent of all cropland cultivated in the U.S. is certified organic by the USDA. That means that at least 99 percent of the virgin feedstocks used to produce biodiesel is coming from conventional agro-industrial farms that are anything but environmentally friendly. This fact raises the fundamental question, "How can biodiesel be environmentally friendly when it is produced from crops that were cultivated using environmentally destructive practices?" It would be irresponsible to move forward with a biodiesel mandate in New York City before there is a certification system in place to ensure that biodiesel sourcing and production practices are environmentally friendly (clearing new land for energy crops releases up to 420 times more carbon dioxide than the fossil fuels they displace).

 
 Biodiesel can be refined from a wide variety of vegetable oils and animal fats, but in the U.S., subsidies and tariffs make soybean oil the dominant feedstock. Soybeans may be a renewable resource, but America's industrial-scale farms devour enormous quantities of nonrenewable and irreplaceable resources. Powering the machines that plow, plant, harvest, cast fertilizers, spray pesticides and pump irrigation water is energy-intensive. The fossil fuels consumed by on-farm operations release significant quantities of greenhouse gases and toxic air emissions. 
 
 Adding to soybean agriculture's formidable fossil fuel tally, large amounts of natural gas are needed to produce the nitrogen-based fertilizers that promote their growth. These fertilizers break down in fields, releasing nitrous oxides, a global warming agent hundreds of times more potent than carbon dioxide. When these fertilizers leach from farm fields, they poison drinking water and ravage marine ecosystems. Runoff from Midwestern farm fields ends up in the Gulf of Mexico, where it contributes to a New Jersey-sized "dead zone" almost entirely absent of marine life.
 
 A toxic rainbow of pesticides is sprayed on soybeans in an effort to combat weeds and insects. Making matters worse, 91 percent of the U.S. soybean acreage planted in 2007 was genetically engineered to tolerate herbicides, a development that has boosted glyphosate applications severalfold. Glyphosate, a powerful weed killer, is the third most common cause of pesticide illness in farm workers; exposure has been linked to rare cancers, miscarriages and premature births. 
 For more information on the New York City biodiesel mandate, see http://habitatmap.org/habitatmap_docs/BiodieselFactSheet.pdf.
 
 Michael Heimbinder
 Executive Director
 HabitatMap

letter to the editor

Eleven Mid-Atlantic states have signed a letter of agreement to reduce greenhouse gas emissions through the development of a comprehensive, regional low-carbon fuel standard. 
 
 The states will analyze low-carbon fuel supply options and develop a framework for a standard on how to use those fuels. A report issued by the U.S. EPA in 2002 found that biodiesel-blended fuels emit less particulate matter, hydrocarbons and carbon monoxide when compared with standard diesel fuel. 
 
 The Mid-Atlantic analysis will consider both direct and indirect emissions, such as those resulting from potential land use changes. The Northeast States for Coordinated Air Use Management will conduct the study, and the final results will be submitted to the governor of each participating state by Dec. 31. States participating in the program include Pennsylvania, Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island and Vermont.

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Mid-Atlantic states to create low-carbon fuel standard

Michigan Gov. Jennifer Gran-holm signed 11 bills at the end of 2008 that aim to advance renewable fuels statewide. Among the provisions, five renewable fuels renaissance zones were added to the existing 10 that receive tax exemptions. Another bill created a Renewable Fuels Fund to promote alternative fuels in Michigan, including an income tax checkoff provision for citizen contributions. Michigan's Renewable Fuels Commission was extended until 2012 and is charged with tracking renewable fuels in the state. The Michigan Department of Agriculture will develop rules regulating the quality and purity of biodiesel.

Michigan passes key legislation

The North Dakota Alliance for Renewable Energy, an advocacy organization that supports the development of renewable energy, recently presented the North Dakota legislature with a report outlining various actions the state could take to advance the development of renewable energy. The report included a recommendation that the state adopt a renewable fuels standard mandating the sale of B5 and E10 at retail locations. The NDARE also recommended that the state work to develop renewable fuels infrastructure, including the installation of blender pumps, and that a countercyclical production incentive be adopted to benefit the biodiesel industry. The production incentive would be similar to a program already in place for ethanol, and would be designed to assist producers when biodiesel prices are unusually low or feedstock prices are unusually high.

North Dakota group recommends RFS

Signal Hill, Calif.-based Primafuel Inc. unveiled its international Algae Biorefinery Program in January, which aims to develop technologies that produce high-value algae-based products and sustainable fuels, according to Rahul Iyer, the company's chief marketing officer. 
 

 Primafuel holds an exclusive licensing agreement with Israel-based Ben-Gurion University of the Negev and its Microalgal Biotechnology Laboratory, where an internationally recognized team of experts work on strain selection, genetic engineering and aquaculture. Led by Sammy Boussiba, the group includes more than two dozen scientists, researchers and engineers. 
 
 According to Iyer, Primafuel's goals for the international Algae Biorefinery Program include designing technology platforms to maximize the economic value of algae, and exploiting the ability of certain algae strains to produce high-value fine chemicals and renewable fuel compounds.

The algae inoculation system at the Microalgal Biotechnology Laboratory in Israel maintains a unique collection of high-value algae strains./PHOTO: PRIMAFUEL INC.

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Primafuel launches algae program

Iowa continues to forge ahead in renewable fuels infrastructure development with the help of grants recently doled out by the Iowa Department of Economics Renewable Fuel Infrastructure Board. More than $1.52 million was given to 43 biodiesel and E85 retailers and terminal operators across the state to expand their E85 and biodiesel fuel infrastructure
 
 Of the 43 projects, 13 involved biodiesel dispensers, including Pioneer's Rest Area in Dubuque, Iowa, which recently installed the state's first biodiesel blender pump. Now operational, it offers B2 and B5 blends.
 
 Twelve tank wagons and three biodiesel terminals also received funding. The RFIB plans to provide $13 million in financial incentives over the next three years to further expand consumer access to renewable fuels.

Iowa boosts retailers; blender pump opens

The Internal Revenue Service issued a notice regarding eligibility for federal biodiesel tax incentives with respect to the revised biodiesel specification ASTM D 6751. On Oct. 13, the ASTM spec was adjusted to include a cold soak filtration test. The IRS notice stated that, among other things, if a certificate relates to biodiesel produced, sold or used before April 1, 2009, then it can meet the earlier or revised biodiesel specification. If the biodiesel was produced, sold or used after April 1, 2009, it must meet the revised version of ASTM D 6751.

IRS clarifies tax incentives

The community of Santa Cruz, Calif., has created a locally sustainable biodiesel market, thanks to a partnership between the U.S. EPA, the Santa Cruz Metropolitan Transportation District, biodiesel producer Energy Alternative Solutions Inc., the California Restaurant Association, waste oil collector Salinas Tallow Co. Inc. and the city of Santa Cruz. 
 
 Similar to the SFGreasecycle program implemented by the city of San Francisco, Fryer to Fuel is a smaller-scale project that collects used grease from approximately 30 restaurants to create biodiesel that fuels city vehicles.

Salinas Tallow Co. Inc. designed and custom-built the 184-gallon containers used in the Fryer to Fuel program./PHOTO: U.S. EPA

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Santa Cruz Fryer to Fuel program flourishes

The German biodiesel quality management working group AGQM EV published a list of 13 biodiesel stabilizers this winter that fulfill its no-harm criteria for diesel engines. 
 
 The AGQM, which stands for Arbeitsgemeinschaft Qualitatsmanagement Biodiesel, spent the past year evaluating a number of oxidation stabilizers introduced alongside butyl-4-hydroxytoluene (BHT) for compliance with "no-harm" criteria. The tests were conducted using methods agreed upon between European oil companies, fuel suppliers and the AGQM, including tests for compliance with European quality requirements, filtration and engine compatibility.
 
 Dieter Bockey, manager of the AGQM project, said the testing resulted from concerns raised by major oil companies supplying the German and European markets. "The mineral oil companies were concerned about the oxidative stability of biodiesel with the standard being raised to B7," he said. Germany planned to introduce its standard for B7 in February. 
 
 Other member states of the European Union are expected to adopt B7 standards throughout the coming year. 
 
 The AGQM compiled a list of products passing the tests, and additional additive suppliers can file an application for testing at any time. "These additives are approved for the German standard," Bockey said. Companies delivering biodiesel must confirm which additives have been used. He added that the AGQM had already evaluated a number of these additives for use in B100. The testing done over the past year confirmed that the stabilizers used in biodiesel were not interacting with additives used in the diesel portion of the blend. 

 
 <center><img src="/images/upload/20090210032649.jpg" alt="" /></center>
 source: AGQM EV
 
 Another dimension of the tests evaluated product efficiency. "One product might be a bit more expensive than another, but it may actually be cheaper when you consider the volumes required to achieve the results," Bockey said. The relative efficiencies of the listed stabilizers in comparison with BHT can be disclosed with the approval of the respective companies, he added. The final project report and test procedures are available for a fee on the AGQM Web site www.agqm-biodiesel.de. "It was a very comprehensive project," Bockey said, adding that it included engine tests to examine nozzle-fouling issues.
 
 The AGQM has also begun work on a far-reaching project to examine the feasibility of midlevel blends. The studies will evaluate the behavior of B10 in engines with different aftertreatment systems to address the postinjection issue that may ultimately limit the use of biodiesel in engines designed to meet more stringent emissions standards. B10 is being rejected by German car companies that believe the higher blends lead to a dilution of the engine oil due to the different boiling point of biodiesel. Depending on the engine loading, biodiesel does not evaporate like diesel because of the longer carbon-chain length of biodiesel. German, Italian and French car manufacturers are taking different approaches to where they inject fuel to burn particulate matter-the soot-out of the filter. "It is a crucial issue," Bockey said. Some German vehicle manufacturers are proposing that the limit for biodiesel be kept at B7, and that the remaining 3 percent required in the newly adopted European Union directive for 10 percent renewable content in transportation fuels come from hydrogenated vegetable oil coprocessed with mineral oil.
 
 "The AGQM position concerning the future of biodiesel is clear," Bockey said. "The increasing emission demands are the technical challenge with biodiesel as a blend component in the market." Biodiesel will need to compete with the simultaneous improvements in diesel quality in regard to low sulfur and aromatics, he added.

Germany's AGQM publishes list of no-harm biodiesel stabilizers

Biodiesel producer Renewable Energy Group Inc. and antioxidant solution specialist Kemin Industries Inc. are analyzing test results gathered through a research collaboration that served to gain a better understanding of how to cost-effectively maintain biodiesel quality during storage. 
 
 For 10 weeks, the Iowa-based companies observed the oxidative stability characteristics in B100 made from soybean oil, and B100 made from a combination of vegetable oil and animal fats, all of which were provided by REG. 
 
 Biodiesel may initially possess oxidative stability, but the oxidation process begins immediately after production, and leads to the formation of low molecular weight acids, insoluble gums and other undesirable byproducts. 
 
 In tests simulating extreme storage conditions, oxidative stability decreased rapidly in untreated B100 as measured by the oil stability index's induction time, peroxide value, and 1,4-decadienal and hexanal content. When an antioxidant was added to B100, it appeared to ensure the integrity of the fuel throughout the fuel supply chain when stored for long 
 

 periods of time or in less-than-ideal situations. 
 Glen Meier, REG manager of research and development, said antioxidant treatment successfully delayed the oxidation. "Results show that dosage rates will depend on the specific biodiesel product and its feedstock composition, as well as the storage and handling protocols in place," he said. 
 
 Although results are only preliminary so far, the group determined that late "rescue" treatments did not eliminate the need for secondary oxidation products, even though the oil stability index's induction time increased. In addition, oxidation in the measured products indicated changes to B100 that may foster polymer and sediment formation in blends, suggesting the earlier use of antioxidants to preserve quality. "One of the goals in this long-term research collaboration is to help petroleum distributors prevent oxidative stability issues when handling or storage situations are not ideal," said Jennifer Radosevich, Kemin vice president of research and development. "Kemin has created an economically viable additive that can be added to B100 at the production facility to improve oxidative stability." 
 
 The study is Kemin's first in the biodiesel industry. The relationship between REG and Kemin began at the Iowa Biofuels Expo, part of the 2007 Norman E. Borlaug International Symposium in Des Moines, Iowa. The theme of that year's symposium was "Biofuels and Biofoods: The Global Challenges of Emerging Technologies," and REG organized the expo. 
 
 The two companies plan to continue the partnership to further understand oxidative stability, and to conduct educational and promotional activities with petroleum distributors and biodiesel consumers.
 
 In similar research, the National Institute of Standards and Technology recently developed a method to accelerate the oxidative stability testing of biodiesel fuel made from soybeans and also identified additives that enhance stability at high temperatures. The paper, titled "Stabilization of Biodiesel Fuel at Elevated Temperature with Hydrogen Donors: 
 Evaluation with the Advanced Distillation Curve Method," concluded the method can be used to assess the combined thermal and oxidative stability of sensitive fluids such as biodiesel. Researchers used the method to test three hydrogen donor molecules for use as potential stabilizers for biodiesel.

REG, Kemin partner in biodiesel oxidation study

VTG Rail UK, one of Europe's leading rail logistics and wagon hire companies, recently announced the results of a study that aimed to determine the effects of B5 on the lining and components of railcars. The study, completed in partnership with two lining manufacturers, concluded that the fuels caused no adverse effects. 
 
 Immersion tests were used to complete part of the study. "Essentially what we did is take some samples of 5 percent biodiesel … and immersed samples of two lining materials from the two manufacturers in [the B5] for a period of about six or seven months," said Paul Lugg, VTG's tank fleet car manager. "We discovered that apart from a little bit of minor discoloration … there didn't seem to be any softening of the lining of the material." 
 
 VTG is conducting similar immersion tests on railcar components such as seals and gaskets. "We've still got them immersed in the product, but so far there have been no signs of any negative effects," Lugg said. 
 
 In addition to the immersion tests, VTG studied railcars that had already been transporting biodiesel. "We know one of our customers had actually been moving biodiesel for about three years in wagons lined with one of these particular materials," Lugg said. "We took one of those wagons out of service, and went inside and examined it. We found that there was no evidence of any softening … of the lining material."

 
 There were a few areas where the lining had been discolored, however. Lugg said the discoloration is likely due to the way the linings were installed. "If there were any minor imperfections with the lining material, we had to overcoat it," he said. "That overcoated area tends to be prone to a bit of discoloration, whereas the stuff that was sprayed on the first time around was fine."
 
 Due to the positive results of the study, Lugg said VTG has approved the shipment of B5 in its railcars. The company plans to conduct further testing to ensure that its railcars can handle higher concentrations of biodiesel, such as those necessary to meet a European Union directive that requires member states to increase the amount of biobased additives in transportation fuels to 15 percent by 2020. "There may be an increase in concentration, and we want to try to keep ahead of the game and get ahold of some higher-concentration fuels as they become available so we can test our linings," Lugg said.
 
 VTG completed this testing as a preventative measure, seeking to avoid many of the problems that have resulted from changing fuel components in the past, Lugg said. When the fuel industry replaced leaded fuel with unleaded fuel that contained methyl tertiary butyl ether, for example, the transportation industry experienced problems with the seals and gaskets on railcars. The seals swelled, which caused leaks. "It took a few months to establish that it was actually the additives being put in the petrol that was causing the problem," Lugg said. "We had to change the specification of all the gaskets and seals." This included changing the material the seals were made from. "When we discovered that some of our customers were starting to move biodiesel, we thought we'd better get it through a similar sort of exercise to make sure we don't have a problem looming on the horizon," he said.
 
 In the U.S., Renewable Energy Group Inc. completed similar testing of railcar lining material in 2005. However, the company tested the effects of B100, rather than B5. "We ran a test with metal that was treated with the lining material for a period of six weeks to two months," said Bill Neese, REG's director of transportation and logistics. "We continually soaked the lining in B100." Parallel tests were completed by an unnamed lining manufacturer. "What we found at both locations … was that there wasn't any action whatsoever between biodiesel and the lining that was being selected to coat the interior of these cars," he said.
 
 The lining material that REG tested, called placite, is an industrial-grade lining widely used in the chemical industry. "It's a baked-on lining that is applied when the cars are built," Neese said. "They bake it onto the interior of the car, so it's very durable, and it will last for years."
 
 REG has been shipping biodiesel in lined railcars since 2005. Neese said the company began to explore the use of liners as a way to ensure the delivery of high-quality biodiesel. 
 
 Before 2005, the company used unlined carbon steel cars. "Rust was a continual problem in these cars up until the time we started applying linings to them," he said. The unlined cars tended to form rust after they were emptied. "There might be a two-week period where they are exposed to the air, and that was the period where we would see rust start to form on the sides of cars," Neese said. According to Dave Slade, REG's quality and technical service manager, the rusty tanks caused issues with the oxidative stability test required under ASTM D 6751. The use of lined railcars ensures that the biodiesel arrives at its destination in the same state it was loaded, Slade said. 
 
 While lined railcars offer many advantages to biodiesel producers, Neese said they aren't the standard used in the industry right now. It costs more than $5,000 to line each railcar. "We're not aware of anyone else that's requesting lined cars for the shipment of biodiesel," he said.

REG ships its biodiesel in lined railcars./PHOTO: RENEWABLE ENERGY GROUP INC.

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Tests prove biodiesel doesn't negatively impact railcar linings

Nova Biofuels-Seneca, the flagship refinery of Nova Biosource Fuels Inc., has yet to celebrate its first anniversary and already it has secured certification under the NBB quality assurance program BQ-9000.
 
 "BQ-9000 certification confirms the commitment to the quality standards we began with at the onset of production last spring," said Dave Adams, Nova Biofuels-Seneca quality manager. "Participating in BQ-9000 provides additional assurance to our customer base that we produce high-quality biodiesel and the product they buy from us is produced through a certified process. We recognize that the consistent production of quality biodiesel is critical to our success and to our customers."
 
 Industry leaders new and old are taking advantage of the prestige and quality assurance associated with BQ-9000 certification. "Producers and marketers new to the biodiesel industry recognize the value of BQ-9000 certification," said Leland Tong, chairman of the National Biodiesel Accreditation Commission. "We are seeing companies strive to meet our high-quality standards as one of their first orders of business. It is exciting that the newest members of the biodiesel industry see the critical importance of delivering a consistent, high-quality product with BQ-9000 both for their customers and for their own long-term success." 
 
 Biodiesel producer Nova Biofuels-Seneca was one of two producers recently added to the BQ-9000 roster. Prairie Pride Inc. of Nevada, Mo., also received certification. 

 
 BQ-9000 is a voluntary fuel quality assurance program overseen by the NBAC, and adopted by the NBB and the Canadian Renewable Fuels Association. Additional information about BQ-9000 is available at <a href="www.bq-9000.com">www.bq-9000.com</a>.

Nova Biofuels-Seneca, which operates a 60 MMgy plant in Seneca, Ill., recently became certified under BQ-9000./PHOTO: NOVA BIOSOURCE FUELS INC.

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BQ-9000 top priority for new producer

The National Biodiesel Board Sustainability Task Force seeks collaboration among several groups to meet the biodiesel industry's commitment to sustainability. In addition to six educational sessions and nearly two dozen speakers on key sustainability issues at the 2009 National Biodiesel Conference & Expo, the Sustainability Task Force welcomed participants to the Sustainable Biodiesel Summit, held just before the formal conference events began. Specifically, in addition to the summit, the task force worked with the Roundtable on Sustainable Biofuels to gather industry input on their sustainability principles for biofuels. 
 
 Introduced at the 2008 National Biodiesel Conference & Expo, the Sustainability Task Force has made significant progress as they work to assess and improve business practices related to environmentally, economically and socially responsible biodiesel production. The task force crafted six policy resolutions that have been adopted by NBB membership. 
 
 These resolutions include policies such as promoting the use of sustainable feedstocks and supporting research to improve the science of greenhouse gas emission calculations. 
 
 The group's November 2008 symposium brought together a cross-section of expertise to exchange technical information on life-cycle analysis, land-use change and food security. 
 
 For more information about the NBB's commitment to ensuring a sustainable future for biodiesel, visit <a href="www.biodieselsustainability.com">www.biodieselsustainability.com</a>.

NBB's Sustainability Task Force works toward industry cooperation

After 40 years of public service, Sen. Kit Bond, R-Mo., announced he will not seek reelection in 2010, prompting a strong reaction from the biodiesel community. 
 

 "Senator Bond is a model for the kind of strong leader and courageous public servant that our country needs," said Joe Jobe, chief executive officer of the National Biodiesel Board. "He has been a pioneering leader for renewable energy and contributed greatly to the progress our country has made so far."
 
 The NBB was formed by American soybean farmers in 1993 as a Missouri-based development group. Bond was an immediate biodiesel supporter and has been promoting the increased development of a national biodiesel industry ever since. Today, the NBB is a comprehensive national trade association with more than 400 organizational members representing more than 150 biodiesel production plants across the country.
 
 "Bond's work helped give birth, strength and support to this emerging industry, which is responsible for bringing an estimated 20,000 green jobs and more than 700 million gallons of domestic renewable fuel to the fuel supply," Jobe said.
 
 Bond was honored in 2001 with the NBB National Energy Leadership award.
 
 "We admire and respect this distinguished career," Jobe said. "We also join him in his call for the country to come together to work on the significant challenges we face. We look forward to continuing to work with him during his final term in the U.S. Senate and to continue the work he has fought for in renewable energy."

Sen. Bond speaks at a past National Biodiesel Board event. /PHOTO: NATIONAL BIODIESEL BOARD

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NBB commends Bond's service to renewable energy

Gov. Ed Rendell recently announced that Pennsylvania biodiesel producers hit the mark to trigger a statewide B2 standard that will go into effect January 2010. 
 
 "Pennsylvania is one of only a handful of states that has adopted biodiesel requirement legislation," said Shelby Neal, National Biodiesel Board director of state governmental affairs. "Pennsylvania is improving its environment, enhancing economic development during a challenging time and helping the U.S. break its dependence on foreign oil."
 Pennsylvania will join Minnesota, Washington and Oregon as states whose minimum standards ensure greater state energy security by requiring at least 2 percent of all diesel fuel to be fully renewable. Louisiana, New Mexico and Massachusetts have also passed standards. As state legislative sessions reach full swing, biodiesel legislation is again a hot topic. 
 
 "The major challenge we've always had is getting fuel out to the public," said Ben Wootton, president of the Pennsylvania Biodiesel Producers Group and president of Keystone Biofuels, a Pennsylvania biodiesel producer. "We repeatedly hear, 'Where can I buy the fuel?' This legislation helps ensure that the oil companies' terminals offer biodiesel product."

NBB applauds Pennsylvania's B2 efforts

The 2009 National Biodiesel Conference & Expo, held in San Francisco Calif., again set the bar as an outstanding, informative and not-to-miss event. 
 

 Throughout the four-day event the National Biodiesel Board presented a comprehensive slate of educational opportunities and industry insight. With a wide array of speakers and experts, a top-notch trade show and expo, a new sustainability track, and premier receptions and networking events, the conference drew industry leaders and reporters from around the world. 
 
 Look for pictures, features and an inside peak into the conference in the April issue of Biodiesel Magazine.

National Biodiesel Conference & Expo wrap-up

›The German-Austrian company PPM Energie Germany GmbH accepted the 2008 Biofuels Technology Award at the World Refining Association's Biofuels 2008 Third Annual Meeting on Oct. 30 in Berlin. The company, which commissioned Austria's first commercial-scale biodiesel plant in 1998, provides modular, turnkey plants that can be installed on-site and commissioned in weeks. "We are truly honored," PPM founder Paul Munzberg said. "We view this as further incentive to continue advancing the technology in search of even better results for our customers." 
 
 ›Hawaiian Electric Co. and Khosla Ventures have agreed to collaborate on the evaluation and early deployment of green energy technologies by working with entrepreneurs and start-up companies. In addition to solar and electric vehicle initiatives, Hawaiian Electric plans to convert its existing oil-fired generator to biofuels power. It's also building a 100-megawatt turbine on Oahu that will use biodiesel. In 2009, the company will begin testing the renewable fuel in its generating units currently using low-sulfur fuel oil to see how much biodiesel can be used. Hawaiian Electric is also a partner in an algae production project and BlueEarth Biofuels LLC, a proposed 40 MMgy biodiesel processing plant on Maui.
 
 ›Renew Energy Resources Inc. is continuing development of a proposed 5 MMgy biodiesel plant under the new name Legacy Oil LLC, and the direction of Jim Blair and Mike LoCascio, both former employees of Renew Energy Resources. LoCascio said the company plans to lease space in the former Brooklyn Navy Yard, which is being converted into a green manufacturing industrial zone. Pacific Biodiesel Inc. will be Legacy Oil's technology provider. The Doe Fund remains a partner in the project. The New York City nonprofit began a waste vegetable oil collection service a year ago to employ the homeless. 
 
 ›In December, New York-based GreenShift Corp. received a $38 million investment from its joint venture subsidiary CleanBioenergy Partners LLC to build 12 corn-oil-extraction facilities across the U.S. The funds will also be used to double production at NextDiesel LLC, GreenShift's 10 MMgy biodiesel plant in Adrian, Mich. 
 
 In January, GreenShift received a $375,000 grant from the Montana Board of Research and Commercialization. The money will be used to demonstrate algae production from an industrial source of carbon dioxide via GreenShift's patented bioreactor technology.
 
 ›Nova Biosource Fuels Inc. announced in late December that its 10 MMgy biodiesel plant in Clinton, Iowa, will come back on line in early 2009 after a Sept. 30 fire closed the plant. 
 
 The damaged equipment was repaired for less than $100,000. While the facility was idled for repairs, the company's 60 MMgy plant in Seneca, Ill., ramped up production. At press time, the Clinton plant was awaiting favorable market conditions before restarting, according to Kenneth Hern, chairman and chief executive officer of Nova Biosource Fuels. "We'll play it week by week," he said.
 

 ›Beacon Energy Holdings Inc. reduced its workforce by approximately 30 percent at its 12 MMgy animal-fats-based biodiesel plant in Cleburne, Texas, which began operation in 2006. The move was an effort to "reduce working capital expenses and to closely match production levels with current biodiesel sales demand," according to the company. It also temporarily slowed production at the facility as it evaluates its biodiesel inventory. "The duration of the scaleback will be determined by numerous factors, including anticipated future sales volume," the company stated.
 
 ›Minnesota-based turf and landscape maintenance equipment manufacturer Toro Co. announced that its Toro Dingo TX 525 wide track and TX 525 narrow track diesel compact utility loaders will be biodiesel-compatible for blends up to B20. The company previously announced its landscape contractor equipment, and golf course and sports fields grounds equipment would be biodiesel-compatible. Product Manager Greg Lawrence said Toro has been conducting extensive equipment tests using B100 and biodiesel blends over the past five years.
 
 ›PetroAlgae Inc. retained Investor Relations International to develop and lead its shareholder communications program. PetroAlgae anticipates raising awareness of its algae-based biodiesel technology through IRI's "proprietary investor relations model." IRI spokesman Haris Tajyar said the firm plans to broaden PetroAlgae's shareholder base through its proven strategy of "incorporating traditional best practices from the earlier days of investor relations with today's much more active, Internet-driven, information-hungry investor audience." He said this hybrid approach is essential for companies that go public via a reverse-merger because they will almost always lack the aftermarket support that a traditional brokerage firm typically brings as part of its role in an initial public offering.
 
 ›Pennsylvania-based Lake Erie Biofuels LLC announced the addition of Tim Keaveney as its vice president of sales. In this newly created position, he will be leading the development of the company's domestic and international biodiesel markets. He's also a member of the National Biodiesel Accreditation Commission, and has 18 years of sales and marketing experience in the transportation and heating fuels sector.
 
 ›Biodiesel producer Innovation Fuels Inc. in Albany, N.Y., has purchased a 310,000-barrel (43,000-metric-ton) terminal on 10 acres at the Port of Milwaukee in Wisconsin. The terminal includes a 20,000-square-foot warehouse, executive offices, a garage, and infrastructure for loading trucks and railcars. The terminal has access to Class I railroads and international shipping via the Great Lakes St. Lawrence Seaway System, and can receive Mississippi River barge cargo. The facility also has an idled connection to the West Shore Pipeline Co. pipeline, which could be used to bring petroleum to the terminal for blending. 
 
 ›HydroGenetics Inc. completed the acquisition of Buffalo Biodiesel Inc., a 5 MMgy biodiesel plant in New York, making it a wholly owned subsidiary of HydroGenetics. Buffalo Biodiesel collects and renders yellow grease from areas in New York and Pennsylvania, and processes the feedstock into biodiesel. According to Marc Walther, HydroGenetics chief executive officer, future plans for the facility include expanding grease collection activities into additional states, and expanding the production of both yellow grease and biodiesel.
 
 ›Sapphire Energy, a San Diego-based company that uses a proprietary technology to convert algae to "green crude," appointed a new president 
 Dec. 22. Cynthia (C.J.) Warner, former group vice president of global refining at BP Amoco PLC, and an expert in refining, transportation and operations, took the helm Feb. 1. A chemical engineer by training, she spent 27 years as an oil industry executive. She will help Sapphire Energy to scale up its green crude technology, which the company says produces a fuel similar to light sweet crude.
 
 ›For the first time since the Iowa Renewable Fuels Association was formed in 2002, a biodiesel producer will lead its board of directors. Denny Mauser of Western Iowa Energy LLC has become president of the IRFA, succeeding Bill Couser of Lincolnway Energy LLC. Mauser served as IRFA vice president in 2008.
 

 Other elected board members were Nile Ramsbottom of Renewable Energy Group Inc. as vice president, Quad County Corn Processors' Mike Jerke as secretary and Walter Wendland of Golden Grain Energy LLC as treasurer. Bruce Rastetter of Hawkeye Renewables LLC and Jeremie Parr of Central Iowa Energy LLC will serve as executive committee officers.

PPM Energie Germany GmbH's biodiesel plant in Komarom, Hungary. /PHOTO: PPM ENERGIE GERMANY GMBH

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Innovation Fuels Inc. purchased this 310,000-barrel (43,000-metric-ton) terminal on 10 acres at the Port of Milwaukee in Wisconsin./PHOTO: INNOVATION FUELS INC.

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Business Briefs

Two new facilities were added to this month's plant construction list. Once operational, both will employ novel process technologies that will effectively and economically use multiple feedstock streams.
 
 Ever Cat Fuels LLC is building a 3 MMgy biodiesel plant near Isanti, Minn., which will use a proprietary process technology called the McGyan Process. Initially developed as a separation science by Peter Carr at the University of Minnesota's Department of Chemistry, Augsburg College Professor Arlin Gyberg and Clayton McNeff, cofounder of Ever Cat Fuels, are now using it for biodiesel catalysis. The key to this new technology is a highly efficient, heterogeneous metal oxide-based catalyst reactor that converts plant oils and animal fats into biodiesel. 
 
 According to Ever Cat Fuels Vice President Steven Rupp, the tank farm is complete, and most buildings are erected. The plant is expected to start up in March. "We've made quite a bit of progress," he said. "We were hoping to have things done by now, but since it's a new design and process, it's taking a little bit longer than expected."
 
 Green Valley Bio-Fuels is constructing a 10 MMgy multi-feedstock facility in Warrenville, S.C., which will mostly take in chicken fat, but has the capability of processing soy oil and other types of rendered animal fats, according to Chief Executive Officer Chuck Pardue. "We're excited about the project," he said, adding that the 24,000-square-foot facility is located near a soy oil processing plant and poultry rendering facility. "When we decided to do this last year, [the price of] oil was higher. Now that it's much lower, we anticipate that our model will work effectively at $50 to $65 per barrel of oil."
 
 Two projects on this list have been suspended. Alterra Bioenergy of Middle Georgia temporarily halted construction of its 30 MMgy facility in Plains, Ga. The company will resume construction once "economics become favorable again," according to Wayne Johnson, former project manager. Meanwhile, Channel Chemical Corp. continues to evaluate the construction of a 20 MMgy biodiesel facility adjacent to its chemical manufacturing plant in Gulfport, Miss., which has been in operation since 1980, according to Tim Reid, director of operations for Channel Chemical. "We're still very interested in moving forward with the project, but we haven't gotten to the point of breaking ground yet," he said. "We have the entire infrastructure in place. All we have to do is erect what's needed for the plant, which makes things easier and keeps the overhead down on the biodiesel side."

Built-In Feedstock Flexibility

Web exclusive posted Feb. 10, 2009, at 5:19 p.m. CST 
 
 India and the U.S. have signed a memorandum of understanding to cooperatively work on developing biofuels. 
 
 According to the Indian Ministry of New and Renewable Energy, the agreement will establish ways for the scientific, technical, and political communities in the U.S. and India to work together to produce, distribute, and market sustainable biofuels, such as ethanol. The agreement was signed by Joint Secretary for the Ministry Gauri Singh, as well as Steven White, deputy chief of mission for the American Embassy in New Delhi, India.
 
 The Ministry said the two countries have agreed to collaborate on establishing non-edible oilseed bearing plantations on wastelands in India to produce biodiesel and bio-jet fuel; as well as establishing plantations of high-sugar varieties of sugarcane, sweet sorghum, and cassava to grow as feedstock for ethanol production. 

 
 India and the U.S. have also agreed to collaboratively research methods for advancing conversion technologies for first-generation biofuels, such as sugarcane ethanol, and to advance emerging conversion technologies for producing second-generation biofuels, such as cellulosic ethanol, the Ministry said. In addition, the collaboration will work together to establish biofuels testing methods and standards.
 
 The countries will also include improving technologies for producing electricity from the byproducts of biofuels production, according to the Ministry.

Joint Secretary for the Indian Ministry of New and Renewable Energy Gauri Singh and Steven White, deputy chief of mission for the American Embassy in New Delhi, India, sign a memorandum of understanding for the cooperative development of biofuels bet

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India, U.S. agree to collaborate on biofuels

One year ago, the main feedstock used in U.S. biodiesel production was soybean oil, as reported to Biodiesel Magazine by producers for its U.S. & Canada Biodiesel Plant Map published twice yearly. In the spring of 2008, soybean oil constituted 45 percent of the U.S. feedstock spectrum. "Multifeedstock" during that period made up 39 percent of all the feedstock. For the fall of 2008 map, however, the situation had changed fairly drastically. The six months between early spring and early fall had witnessed impressive price spikes in all commodities-soybeans included. Multifeedstock in the fall of 2008 constituted 55 percent, a resounding majority, while soybean oil as an exclusive feedstock dropped from 45 percent to 30 percent. While this data is not collected scientifically, the criteria used in the spring and fall of 2008 were the same. But if a producer runs two or more refined virgin oils through his process, does that constitute multifeedstock processing? 
 
 Russell Teal, the president and founder of Biodiesel Industries Inc., says a couple of years ago when the National Biodiesel Board was gathering data on its members' plants, he was asked if his biodiesel plant used a single feedstock stream or multiple feedstocks. "I asked them if I used RBD (refined, bleached and deodorized) canola oil and RBD soybean oil, would I be considered a multifeedstock producer," Teal says. "They said yes, and I said, 'Well, I'd like to be in a new category then-full spectrum multifeedstock, which means you can use just about anything.'" 
 
 The technique is at the heart of multifeedstock processing, along with real-time data collection and analysis, which show what's going into the plant and allow for testing and automation adjustments of any process parameters. Some producers have spent years developing and fine-tuning their proprietary multifeedstock process, and aren't willing to divulge their trade secrets. However, despite feedstock quality or level of saturation of the fats, at the elemental level, producers want triglycerides. Even concentrated streams of free fatty acids are desirable provided the plant is set up to esterify them into methyl esters. Techniques vary, though. 
 
 <center><img src="/images/upload/20090210041409.jpg" alt="" /></center>
 REG's multifeedstock process flowchart is more of a decision-making tree than a flowchart because there are places along the process where operators must make decisions that will affect process flow and the final product.
 SOURCE: REG INC.
 
 Myron Danzer with Renewable Energy Group Inc. stresses the importance of pretreatment, while Nova Biosource Fuels Inc.'s vice president of technology, Dick Talley, says his company spent years and millions of dollars developing a process that is multifeedstock capable without pretreatment. "Very much like oil refineries, we build biodiesel refineries that are 100 percent fully automated-flow, pressure and temperature measurements are all electronically controlled by control systems," Talley says. "An oil refinery doesn't care if it takes in crude oil from the North Shore, Saudi Arabia or South America." Nova Biosource Fuels supplied the process technology for the Sanimax Energy Biodiesel plant in De 

 Forest, Wis. "We have 17 or 18 different feedstocks coming into the plant right now," he says. "They range from stripped FFAs, to brown greases, to yellows, to tallow, to DDG corn oil, and we are synthesizing the product through." 
 
 The Pretreatment Process 
 Years ago REG narrowed the number of potential feedstocks with enough volume for biodiesel production to 15, Danzer says. "The first thing we look at is the carbon chain makeup of the oil," he says. "Then we say, what's in the oil that's not going to convert to biodiesel-the impurities like phosphorus and metals." He says some approaches to multifeedstock processing run oil, fat and grease through esterification and transesterification, and at the end of the process, utilize distillation to remove all the impurities. "All those impurities will come out in the distillation bottoms, which works fine but it has some effect on the fuel quality," Danzer says. "The acid number could go up, or the impurities might go overhead with the biodiesel." Also oxidative stability could be compromised if all the sterols, or antioxidants, are stripped via distillation. "But one problem it creates is a lot of loss in those bottoms," he says. "So in our opinion, you need to remove the impurities [during] pre-biodiesel processing and, even if you want to distill product at the end and make highly purified biodiesel, you would cut down on that loss because you wouldn't have all those things dragging along through the whole process." 
 
 REG uses Crown Iron Works Co. process equipment in its plants. Derek Masterson, Crown Iron Works' sales engineer, says, "We agree pretreatment in general is necessary, and it's the opposite of what some companies think. We have a spec for neutral, clean oil going into the plant, and then we have the theory that, if you can make the fat into good quality fat, the biodiesel process won't care how it got to that point. So the trick is how to pretreat it to make a good, quality product later." The answer, he says, is designing the plant around the worst-case scenario. Whether the feedstock had 1 percent FFAs or 15 percent, the process is exactly the same. "You might make the stripping column a different size, or have different amounts of cooling and heating, but it's the same process," Masterson says. "We wouldn't change the process at all for the feedstock. It's just a matter of designing it correctly for our customers' idea of their worst-case scenario." 
 
 Greenline Industries Inc. has its own unique multifeedstock process technology, and has developed a high FFA pre-processor. "The FFA pre-processor is a molecular distillation system particularly suited viscous feedstocks," says Gaurav Shah, Greenline Industries senior process engineer. "We did extensive research into the separation process that would fit this application. So after looking at the chemical and thermodynamic properties of the feedstocks, we decided this equipment would fit our application-but we had to tailor it specifically for biodiesel feedstocks." The system is a wiped-film evaporator that works in a single stage. It takes the feedstock in, heats it to 470 degrees Fahrenheit, and scrapes the FFAs from the triglycerides under vacuum. "The result is a beautiful, researched product," Shah says. "We spent enormous efforts to design this-to feed the optimum design, the column, the residence time, the degradation of fats and the chemical properties." 
 
 Process Parameters and the Importance of the Lab
 Teal says some techniques use more robust, broad-range processes that somewhat bypass a thorough pretreatment. "That usually involves much deeper analytical work on the oil profiling," he tells Biodiesel Magazine. "Then there are techniques using high temperatures and high pressures in a supercritical reaction, and in those cases concerns about the variability of feedstock are much less." However, if a fixed-bed catalyst is employed, contaminants could foul the catalyst, so they should be removed before transesterfication. "The bottom line is, there's a lot more to multifeedstock processing than saying, 'This is how it's done,' " Teal says. "You need to work it out, especially if you're retrofitting an existing plant. You need to determine what specifications work with your hardware, and then there are a lot of techniques learned by the operators at the plant in terms of making it run properly." He likens the whole process to running a fine restaurant. "You can have the best kitchen equipment in the world, but if the cook doesn't know what he's doing, he's not going to make a good meal," he says. 
 
 Provided a pretreatment is used, the FFAs are stripped, and impurities such as metals, phospholipids, solids and water are removed, the cleaned amalgam of fats, greases and oils can move into transesterification. 
 
 Greenline Industries evaluated the performance of the four well-known catalysts with respect to yield, effect on different feedstocks and efficient consumption. The catalysts were sodium hydroxide, sodium methylate, potassium hydroxide and potassium methylate. "What we found out was potassium methylate works better with animal fats than sodium methylate," Shah says. "It keeps the soap in glycerin in liquid form, it has better phase separation and promotes better reaction," he says. "So we recommend our customers to use potassium methylate for animal fats, if possible." 

 
 Highly saturated feedstocks such as tallow take more time to convert to biodiesel than lower saturate canola or soybean oil, Shah says. "It changes the process parameters, [for] catalyst consumption, the percent of excess methanol to use, and residence time," he says. Catalyst activity could be hindered if impurities in animal fats such as phospholipids are not removed successfully. "Understanding these parameters in detail helps in achieving better bound glycerin numbers from the reactors in a consistent, reliable manner when working with animal fats and yellow grease," he adds. 
 
 If you have multiple and vastly different feedstocks, experts say it's critical to analyze them as they are delivered. "This is where the lab is so important, more so for pre-treating feedstock," Danzer tells Biodiesel Magazine. "You have to be able to test that. The lab is one of the most important aspects of a plant." He recommends building a test for every part of the process from beginning to end-sample off the trucks, do the analysis, then test it again after the crude feedstocks are blended together. "One of the most important things is to have a mix in that crude tank going into the process that doesn't vary too much," Danzer says. "It will treat a lot better because of its consistency." 
 
 Testing, real-time reporting and automation are critical components to multiple feedstock processing. "The ability to analyze in real time what's going on in terms of feedstocks going into your tank and during the reaction process is very crucial," Teal says. "A gas chromatograph (GC) is an artifact, and a good GC operator can get the info in a half hour, 45 minutes maybe-and at that point it's looking at where the reaction was, not where it is. Getting real-time feedback on the process controls and then being able to automate the reactants, times and temperatures accordingly, based on experience-that's the most difficult part." He says Biodiesel Industries has completed tens of thousands of reactions in multiple plants all over the world, and the data gained from it is priceless. "Having that data set is essential," he adds. 
 
 While techniques vary, experts agree that what is absolutely critical for a multi-feedstock process to be considered successful is good end-product fuel quality, which comes from intelligent design, thorough quality control measures and testing, testing, testing. 
 
 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.

The centrifuge shown is from REG's Central Iowa Energy Plant. It is part of the pretreatment system, which allows CIE to utilize animal fats and other multifeedstock variations./PHOTO: REG INC.

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For many biodiesel producers, volatile commodity markets and paper-thin margins mean feedstock flexibility is absolutely critical for survival. Biodiesel Magazine interviews several different "multifeedstock" technology providers about their approach to processing with flexibility, and fuel quality, in mind.

Synthesizing Multiple Feedstocks Into Quality B100

One-tenth of every gallon of biodiesel that is produced is crude glycerin. The biodiesel byproduct is a colorless, odorless, viscous liquid that has traditionally been used in the manufacturing of a wide variety of products in the food, cosmetic and pharmaceutical industries. The supply of crude glycerin entering the U.S. marketplace remained relatively stable until 2003, when biodiesel production began to increase. Since then, the supply of crude glycerin has nearly doubled, while demand for the product has remained largely unchanged. This excess supply and limited demand has caused glycerin prices to remain depressed. 
 
 These market conditions have made it difficult for most biodiesel producers to realize economic benefits through the sale of their main byproduct. However, businesses and researchers from around the globe are currently engaged in research and development projects, with the primary goal of developing economically viable technologies capable of utilizing this overabundant resource. Once commercialized, these technologies, including the use of glycerin as a fuel to power generators, as a feedstock for plastics and as a carbon source for the production of omega-3 fatty acids, should increase the profits of biodiesel producers by creating a new revenue stream. 
 

 Omega-3 Fatty Acids
 Zhiyou Wen, an assistant professor of biological systems engineering with Virginia Tech's College of Agriculture and Life Sciences, is developing a technology that will use glycerin to aid in the production of algae that produce omega-3 fatty acids. The project originated about four years ago at Washington State University, where Wen worked with Shulin Chen, a professor with Washington State University's Biological Systems Engineering Department, to produce an omega-3 fatty acid known as docosahexaenoic acid (DHA). Wen has since moved to Virginia Tech, and begun to focus his work on another omega-3 fatty acid, known as eicosapentaenoic acid (EPA). 
 
 Wen's technology focuses on glycerin as a carbon source, which is used to grow a microalgae species that produces omega-3 fatty acids. Although many people associate fish oil with omega-3 fatty acids, fish don't actually synthesize it-they accumulate it by eating the algae that produce it. According to Wen, the technology currently available to produce EPA from algae is cost prohibitive. "Our hypothesis is that once we optimize this process the cost will be reduced," Wen says. That's because his technology uses glycerin, which is a relatively low-cost waste stream, rather than a more expensive carbon source such as glucose. 
 
 The omega-3 fatty acid containing biomass produced through Wen's technology could be used as animal feed, and research has proven that this concept will work, Wen says. When animals are fed the omega-3 fatty acid containing algae, they also become a source of the substance. They could potentially extract the omega-3 fatty acids from the biomass for inclusion in other food products, such as cheese or yogurt, however, the extraction process is relatively expensive. 
 
 Although Wen's technology doesn't require the use of refined pharmaceutical-grade glycerin, the soap and methanol present in crude glycerin must be removed before it can be used to aid in the algae growth. According to Wen, the technology's production process automatically removes these impurities. "The pH of the crude glycerol is pretty high," he says. "It's about 12 to 13, around that range. In order to grow the algae, we have to adjust the pH. When you adjust the pH of this medium containing crude glycerol, the soap contained in the glycerol will be precipitated out of the medium." In other words, the process used to adjust the pH of the solution causes the soap to solidify and settle out of the glycerin.
 
 Before it can be used to cultivate algae, the glycerin must be sterilized. To accomplish this, the solution is heated. The boiling point of methanol is quite low, approximately 60 degrees Celsius (140 degrees Fahrenheit), Wen says. The technology requires the glycerin solution be heated to 120 degrees Celsius (248 degrees F), which causes the methanol to evaporate. "The soap and the methanol are relatively easy to remove," Wen says. "So, we think this process shouldn't be that complex in terms of impurity removal."
 
 The technology yields approximately 0.2 to 0.3 units of biomass for each unit of glycerol it consumes. Omega-3 fatty acids account for approximately 10 percent to 15 percent of that biomass. "I think right now we have proven the concept," Wen says. A patent for the technology to produce DHA was filed in conjunction with Chen at Washington State University. Research on the production of EPA is not as far along, however, Wen has also filed a patent for that technology. 
 
 Glycerin as a Fuel
 A newly developed technology in the U.K. allows glycerin to be burned in off-the-shelf diesel generators that are used in combined-heat-and-power applications. The technology was developed by U.K.-based Aquafuel Research Ltd. According to Paul Day, Aquafuel's chief executive officer, the technology is now commercially available. 

 
 The process uses standard diesel generators, which are altered slightly to run on a new combustion cycle, which is referred to as the McNeil cycle. "The basics of the engine, the fuel injection, the pistons and cylinder are not changed at all," Day says. 
 
 Only minor alterations need to be made to the crude glycerin before it is used to fuel the generators. "Crude glycerin contains 3 [percent] to 8 percent catalyst salts, and these salts need to be removed," Day says. However, the glycerin does not need to be fully refined. The technology is tolerant to water, methanol and nonglycerin organic compounds. 
 
 Although existing distillation technology used to remove these salts is available, Aquafuel is also working to develop a low-cost alternative. This alternative chemical-based method would use membranes to separate the salts from the glycerin. According to Day, the new technology would use approximately one-fifth of the energy used by traditional purification methods. While the company's distillation technology has been proven on a lab scale, it is not yet commercially available. 
 
 Day estimates that 1 ton of glycerin will produce approximately 1.7 megawatt hours of electricity and approximately 2 megawatts of heat. In addition, the process creates few emissions. 
 
 There are many advantages to using glycerin as a fuel. "It is nontoxic, biodegradable, and has a high flash point," Day says. In addition to being used at biodiesel refineries, the technology may be applied to other entities that use combined-heat-and-power systems, such as schools, hospitals and apartment buildings. 
 
 The technology was developed through a two-year research and development program that Aquafuel completed with Greenergy, a U.K.-based biodiesel producer. According to Day, the technology is expected to be installed at a biodiesel refinery by the second half of 2009. "Overall, the technology offers producers a chance to unlock revenue from glycerin streams, and at the same time improve its environmental performance," Day says. "That is a rare and welcome combination."
 
 Glycerin in Plastics
 Another European company is working on a technology that would use glycerin as a feedstock to produce plastics. Ireland-based Biobode Ltd. is developing this technology. 
 

 According to Scott O'Connor, Biobode's chief executive officer, the process his company is developing would produce commodity plastics that contain 20 percent to 38 percent glycerin. The remainder of the plastic material would consist of low-cost commodity chemicals. 
 
 Lab-scale research is currently being completed that can produce 1 kilogram batches of the glycerin-based plastic. The next step will be scaling up to producing 5 kilogram batches. "We are going to build a 5 kilogram reactor within the next six months," O'Connor says, at which point the technology will be proven. Once the technology is proven, the next step will be to license it to third parties who will build pilot facilities, he says. 
 
 O'Connor says it has historically been difficulty to use glycerin to make plastics because the process created a cross-linked polymer with no significant commercial value. "This has been a persistent limitation with glycerol since the 1930s," O'Connor says. The company has been able to overcome this problem and produce a high molecular-weight polymer.
 While traditional plastic materials are 100 percent petroleum-based, 44 percent of Biobode's plastic could be sourced from nonfossil, nonpetroleum feedstocks, O'Connor says. The technology has been tested using both refined and crude glycerin, which was sourced directly from biodiesel producers. The only difference that results from the use of crude glycerin is some discoloring of the plastic material. 
 
 Biobode has been working to develop the technology for more than two years, and has successfully injection-molded test components with the material to prove the concept. The technology also uses a traditional reaction process. "We envision it could be applied within the existing infrastructure," O'Connor says. 
 
 O'Connor says biodiesel producers need to become more proactive in investing in glycerin technologies. "It's all about the opportunity that glycerol offers to increase the competitiveness of the biodiesel business model," O'Connor says. "I think that when a biodiesel producer finds a higher value for glycerol, it will affect his bottom line. Thus the effect on his competitiveness will be tremendous." 
 
 Erin Voegele is a Biodiesel Magazine staff writer. Reach her at <a href="mailto:evoegele@bbiinternational.com">evoegele@bbiinternational.com</a> or (701) 738-8040.

Glycerin is a 10 percent byproduct of the biodiesel production process./PHOTO: DAVID PURDY

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The plastic material created through Biobode's technology contains 20 percent to 38 percent glycerin./PHOTO: BIOBODE LTD.

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Researchers worldwide are stepping up efforts to develop new uses for crude glycerin. Once commercialized, these technologies have the potential to improve the economics of biodiesel production.

Glycerin: Research Turns Up New Uses

The cup of java that fuels many people in the morning could soon fuel trucks too, in the form of coffee biodiesel. 
 

 The project at the University of Nevada-Reno came about rather serendipitously, when engineering professor Mano Misra, who is known as a prodigious coffee drinker, picked up a cup of forgotten coffee. Noticing the sheen from the oil floating on top of the cold coffee, it occurred to him that coffee oil could be a biodiesel feedstock. "Coffee is the most used beverage in the world," he says. "Last year the world drank 15 billion pounds of coffee." In mid-2007, he set a couple of students to work on the project. Jason Strull and Narasimharao Kondamudi began conducting experiments to find out how much oil coffee grounds hold and whether that oil could be used to make a high-quality biodiesel. The research became part of an award winning business plan and was the topic of a paper published in November by the Journal of Agricultural and Food Chemistry. It didn't take long for details about the research to hit the newspapers and the blogosphere. 
 
 The New York Times' treatment of the story is one of Strull's favorites. The headline read "Diesel, Made Simply From Coffee Grounds (Ah, the Exhaust Aroma)." The article started out saying the new research touches on two of American's great obsessions-coffee and cars. Other writers had fun with the recycling theme writing: "The next time you drink your morning coffee, think of the money you could make by recycling. Car fumes that smell like coffee, breathing coffee biodiesel." And, "Why make your car smell like french fries when it could loft the sweet aroma of coffee?" Another favorite: "Move the focus of energy from the Persian Gulf to the back alleys of your neighborhood coffee shop."
 
 <center><img src="/images/upload/20090211110738.gif" alt="" /></center>
 MG - monoglyceride, DG - diglyceride, TG - triglyceride, TAN - total acid number.
 SOURCE: UNIVERSITY OF NEVADA-RENO
 
 Actually, the concept of making biodiesel from coffee is not new. For several years, Brazilians have been extracting oil from defective and surplus coffee beans to produce biodiesel. At the University of Nevada, the researchers are focusing on spent coffee grounds, collected from the local Starbucks. The Starbucks outlets in Reno participate in the company's Grounds for Your Garden program, where customers are encouraged to recycle waste coffee grounds for their gardens, Strull says. The students recycled the grounds into their research project instead. 
 
 Biodiesel Performance
 The research determined that coffee grounds yield from 11 percent to 20 percent oil, depending on the variety of beans, with an average yield of 15 percent oil. The resulting biodiesel has an unusually high oxidative stability, but that's offset by high sulfur levels. Kondamudi says they use hexane extraction in the laboratory and process the oil into biodiesel using standard transesterification. The biodiesel is quite stable and can sit for more than a month in the laboratory without any observable physical changes, even though many of the antioxidants are extracted in the water used to brew the coffee-only 10 percent remains in the grounds. The chart on page 58 shows the ASTM analysis of a sample of biodiesel that sat in the laboratory for several weeks, Kondamudi says. The coffee oil has a free fatty acid content of 4 percent to 6 percent, and contains 60 percent unsaturated fats. The resulting coffee biodiesel meets ASTM standards and has a cloud point of 11 degrees Celsius (52 degrees Fahrenheit). 
 
 Researchers solved the sulfur problem by developing a method to remove excess sulfur from the coffee biodiesel, thereby meeting ASTM standards. Because coffee trees grow in volcanic soils high in sulfur content, pure coffee contains from 50 parts per million (ppm) to more than 300 ppm, depending on the growing region, variety and type of roast, Strull says. While sulfur, which provides the aroma and taste coffee is known for, comes out in the brewing process, too much sulfur stays in the grounds for an acceptable biodiesel in markets where emissions are regulated. In Brazil, the standards are not as stringent as in the United States or Europe, Strull adds. The research team has developed a process that can reduce sulfur in biodiesel from 70 ppm to 3 ppm. They hope to publish a paper on that research soon.
 

 Business plans
 It's not unusual for graduate students to have their papers published, but it's rare to get the kind of publicity the Nevada research received when news of the journal article spread. 
 
 The students also received $5,000 when the business plan they developed around the research won the Nevada Lieutenant Governor's Award for the business plan that best employs clean, renewable or efficient energy technologies and services. 
 
 In their business plan, the engineering students estimated that if the waste coffee grounds from all of Starbucks' market in the U.S. were collected and the oil converted to biodiesel, it would amount to 2.9 million gallons of biodiesel annually. If waste grounds from all world coffee production were used, 208 million gallons of biodiesel could be produced annually. The students also evaluated the potential for using the grounds remaining after oil extraction for fuel pellets. They found that 1 pound of pellets contains an energy value of approximately 8,700 British thermal units. They estimate that if all the leftover grounds from Starbucks in the U.S. were used that could generate 89,000 tons of fuel pellets annually, while world production could yield 6.4 million tons per year. Using early 2008 market prices, the students figured Starbucks could make $13 million annually from biodiesel and $20 million from the fuel pellets. Worldwide, that could amount to $935 million from biodiesel and $1.4 billion from the pellets. Those figures were calculated using biodiesel at $4.50 per gallon and fuel pellets at $225 per ton. Strull says the numbers are overstated because the students assumed that all of the waste grounds would be used, which is unattainable, and the values were calculated more than a year ago when prices were high. "Coffee biodiesel doesn't have the potential to replace a huge amount of diesel because of the limited amount available," Strull admits. "What it can do is make people wonder-if we can make biodiesel out of coffee grounds, what else can they use to make biodiesel?" 
 
 While they continue their research in the laboratory on other waste streams with extractable oil content, the students and their faculty advisor, Misra, have turned their business plan into a company called Bio-Grounds LLC. The entrepreneurs have applied for a patent on the process and are doing due diligence now on several companies proposing to partner with them in developing the company. The first step will be to build a pilot plant at the Starbucks roasting and distribution plant in Minden, Nev., and to further and confirm the research begun at the University of Nevada. Among the issues they will address is whether the unusually good oxidative stability of coffee biodiesel make it a premium oil to blend with other feedstocks in the place of additives, Misra says. The researchers also want to double-check their cost estimate of $1 to $1.50 per gallon for the coffee oil. They also are looking at alternative oil extraction methods, preferring to avoid the permitting issues that accompany commercial-scale solvent extraction. While mechanical extraction would reduce oil yields, the result would be a "greener" final product, Misra says. Another issue they are working on is the logistical challenge of cost-effectively collecting the coffee grounds. "Starbucks has 11,000 stores around the country," Misra says. Other potential sources are roasting plants and fast food chains. 
 
 In the meantime, the entire Department of Material Science and Engineering at the University of Nevada can tell when the students are working on the coffee biodiesel project in the laboratory. Not only does the extracted oil smell like coffee, but the biodiesel also smells like coffee and when it's burned-the exhaust smells like coffee. Ah-the aroma. 
 
 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.

The biodiesel sample on the left is made from oil extracted from spent coffee grounds, which are pictured on the right./PHOTO: UNIVERSITY OF NEVADA-RENO

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Diesel-powered vehicles could emit the aroma of fresh-brewed coffee, thanks to the research being conducted at the University of Nevada-Reno.

Wake Up and Smell the Coffee Biodiesel

Currently, biodiesel and ethanol are the two major forms of biofuels being sold and distributed around the world. However, these fuels only represent a fraction of renewable fuels necessary to make an impact on the global energy crisis. Multiple obstacles still need to be overcome in order for these biofuels to become a mainstream energy source. 

 
 A major challenge originates from issues dealing with international trade and the transportation of biofuels. These issues range from feedstock costs and availability to fuel quality and the international compatibility of biofuel testing standards. Both biodiesel and ethanol face similar problems, and steps are being taken toward resolving these issues. ASTM International recently published new specifications for a broader range of biodiesel blends. Advancements in other biobased or alternative energy technology have widened the scope of what are seen as feasible solutions to the world's energy problems. These developments and advances are a positive sign for the alternative fuels industry and could result in a more timely solution to this global problem.
 
 Feedstock Challenges
 The usability of vegetable oil is of utmost importance. Currently, the cost of the feedstock is high because it can be used for many things besides being an energy source. Its primary use is food for human nutritional needs. Only a fraction of vegetable oil production is available for nonfood use, which creates the dilemma better known as "food versus fuel." To simply grow and produce more vegetable oil and use it for fuel would not work. There is a finite amount of land and other natural limitations that make this notion unfeasible. "New agriculture" such as algae does not compete with food crops for land use. A public policy initiative would act as a catalyst and push the thinking in this direction. 
 
 This should be a performance-based policy that pays according to performance, not production. Ultimately, a system of development and sustainability must be in effect for the growth of biodiesel to be successful.
 
 <center><img src="/images/upload/20090210041341.jpg" alt="" /></center>
 
 Quality Challenges
 Quality control is another challenge facing the biodiesel industry. One major difference that separates biodiesel from petroleum-based diesel is how biodiesel behaves under extreme temperature conditions. Cold-flow properties in the winter and oxidation stability in both summer and winter are major issues in quality control. These properties differ slightly based on the feedstock in which the fuel was produced. For example, biodiesel derived from palm oil, tallow or used cooking oils generally has worse cold-flow properties than biodiesel derived from soybean or canola oil, while the oxidative stability of biodiesel differs greatly from that of petroleum-based diesel. The rate at which this oxidation occurs increases with higher temperatures. Therefore, storage during the summer months will cause biodiesel to deteriorate rapidly. The chemical composition of biodiesel also contributes to its oxidation. Again, the composition depends on the feedstock from which the biodiesel was produced. Biodiesel composed of unsaturated fatty-acid alkyl-ester-like linoleic and linolenic acid esters is more susceptible to oxidation than saturated fatty-acid esters.
 
 The diversity among existing biodiesel testing standards is a result of a number of factors. The first factor is that some existing specifications have been formulated mainly around locally available feedstocks. This feedstock diversity is then translated into significant divergences in the specification properties of the derived fuels. Another factor contributing to the discrepancies in the specification properties is that some specifications, such as those in the U.S. and Brazil, are based on the use of biodiesel as a blend stock or extender for fossil-based diesel fuel. Others, such as the European specification, are based on the use of biodiesel as a 100 percent fuel for engines and as a blending component in hydrocarbon-based fuel. Furthermore, biodiesel standards in Brazil and the U.S. are applicable for both fatty-acid methyl esters (FAME) and fatty acid ethyl esters, whereas the current European biodiesel standard is only applicable for FAME. Another reason for the differences in the biodiesel specifications from region to region is the predominance of the types of diesel engines most common in that region. For example, the most prominent diesel engine in Europe is found in passenger cars. This engine is fairly different than the heavy-duty diesel engines found in the U.S. and Brazil. The different engines amount to differences in the emissions regulations that govern these engines, which then contribute to differences in the diesel specifications in the regions. Because the biodiesel specifications in each country were based upon their corresponding diesel specifications, the regional differences were therefore carried over to the biodiesel specifications. 
 

 As previously mentioned, ASTM International recently published new and revised biodiesel standards. Revisions to the diesel fuel oil (D 975) and fuel oil (D 396) specifications now allow for up to 5 percent biodiesel. ASTM D 6751, the specification for biodiesel fuel blend stock (B100) for middle distillate fuels, was also revised to include a requirement that controls minor compounds using a new cold soak filtration test. A new specification for diesel fuel oil and biodiesel blends (B6 to B20) was designated D 7467. This spec covers finished fuel blends for on- and off-road diesel engine use. 
 
 Various institutions such as petroleum corporations, biodiesel manufacturers, engine companies, military representatives, government representatives, researchers and academics assisted in the development of these standards. "We have engine interests, petroleum interests, biodiesel interests and third parties," said Steve Howell, chairman of the ASTM Biodiesel Task Force. "It took cooperation, and a lot of data and information sharing, between all those parties to reach consensus on these specifications." The new specs ultimately represent the next step to making biodiesel a mainstream energy source. 
 
 Ethanol Challenges
 The challenges facing the ethanol industry are similar to those of the biodiesel industry. Ethanol is also subject to the "food-versus-fuel" dilemma and the speculation that it raises food prices. Cellulosic ethanol, a biofuel produced from nonedible parts of plants, could be the solution to this dilemma. The transportation of ethanol yields yet another challenge. 
 
 It can't be shipped through existing gasoline pipeline systems because it's easily contaminated by water and may corrode the pipeline. Therefore, it needs to be shipped by truck or rail, both of which are expensive and slower than pipeline transport and, in turn, add to the product's cost. In order for ethanol to become a mainstream energy source, transport vehicles will have to be retrofitted to run on ethanol, or governments will have to build or fund pipelines explicitly for ethanol. 
 
 <center><img src="/images/upload/20090210041322.jpg" alt="" /></center>
 
 Ethanol specifications are more closely aligned between the U.S., Brazil and Europe than the biodiesel specifications (see Table 1). This is based on a number of factors. Starting at the molecular level, ethanol is a single chemical compound. Conversely, biodiesel is derived from several types of feedstocks, which can translate to variations in the performance characteristics of the finished fuel. Similarities in the three regional ethanol specifications are also largely due to the fact that they all originate from a single (Brazilian) specification. However, differences have arisen due to market developments, climatic conditions in each country and feedstock variances. The ethanol specifications are so similar that the Tripartite Task Force concluded there is no technical specification that constitutes an impediment to trade given the current situation. Water content is a specification that yields a problem, however. The water content level is set at significantly different levels within the three specifications. The European Union specification has the lowest limit, thus requiring additional drying and testing by Brazil and U.S. exporters wishing to supply the EU market. 
 
 Recently, the U.S. denatured ethanol standard was converted to an undenatured basis in order to make the U.S. specification more comparable with the Brazil and EU specifications. 

 
 The unit of measure in the three specifications has also been converted to a common basis. Some key standards that the task force is considering universalizing are the inorganic chloride content, electrolytic conductivity and water content. Water content is the most difficult parameter to agree upon because it's based on the ethanol content of the gasoline-ethanol blend that the individual countries use, and the amount of ethanol used in gasoline is tied to each country's regulatory framework, making negotiated changes to this parameter difficult. Furthermore, a phosphorous content parameter is only found in the European Union specification. In an attempt to universalize this parameter, the U.S. and Brazil have agreed to collect data in order to determine the phosphorous levels in their products, and from this data determine whether a phosphorous level specification should be adopted. For inorganic chloride content, the U.S. and EU have agreed to review the specification in an attempt to lower the limit, bringing it closer to the Brazil limit. In addition, the U.S. recently updated its specification to include two new ion chromatography test methods that identify inorganic chlorides and sulfates.
 
 Second-Generation Biofuels
 Advancement in second-generation biofuel production technology has attracted significant attention. It's becoming more feasible for fuels such as biobutanol, cellulosic ethanol and synthesized higher-chain alcohols to aid in solving the world's energy problems. These technologies are increasingly more efficient, and will ultimately complement or replace ethanol altogether. The technology for cellulosic ethanol is getting closer to commercialization and seems to be a direct replacement for corn-based ethanol. Cellulosic ethanol does not compete much with food production, and it has a better carbon emissions profile. 
 
 Biobutanol also has great potential to replace ethanol. Butanol's properties make it a much more attractive biofuel than ethanol with respect to gasoline blending, distribution and refueling, and use in existing vehicles (see Table 2). Biobutanol can also be produced commercially today unlike other advanced biofuels such as cellulosic ethanol, fermentation hydrocarbons and algae-based biodiesel. The challenge is to improve the commercial process enough to produce large volumes while remaining economically competitive. 
 
 Biobutanol has also been found to be more toxic to humans and animals in the short term than ethanol or gasoline, and it is not clear whether butanol will degrade the materials commonly used in automobiles that come into contact with motor fuels.
 
 Higher-chain alcohols may also replace ethanol, due to recent advances in metabolic engineering techniques. Metabolic engineering is a field that merges genetic engineering, physiology and systems engineering. Metabolic engineers have made significant progress in the production of fuel-grade compounds due to rapidly expanding genomic information, molecular biology techniques and high-throughput tools. These compounds have higher energy densities, lower vapor pressures and are not corrosive, resulting in a fuel that can circumvent or alleviate many problems associated with ethanol.
 
 To cover all the areas discussed, a variety of agencies must be involved, making a universal solution to biofuels as a mainstream energy source more complicated. The food-versus-fuel dilemma involves organizations such as the USDA and U.S. DOE in the United States alone. Alignment of the international biofuels standards will require a large investment of time and effort in testing and research by specialists in laboratories, test facilities and private companies around the world. However, emerging new technologies, the refining of existing techniques, and ongoing development and alignment of testing standards will make for a quick and balanced solution to the global energy crisis.
 
 Raj Shah is a director with Koehler Instrument Co. Inc. Reach him at <a href="rshah@koehlerinstrument.com">rshah@koehlerinstrument.com</a>. Vincent Colantuoni is a sales application engineer with Koehler Instrument Co. Inc. Reach him at <a href="mailto:vcolantuoni@koehlerinstrument.com">vcolantuoni@koehlerinstrument.com</a> or (631) 589-3800.

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Before biodiesel can have an impact on global energy supply, a number of factors have to be addressed.

Challenges Faced in the Standardization and Development of Biofuels

While patents remain the principal form of intellectual property for protecting technological advancements in Canada, plant breeders' rights can provide an alternative or complementary protection for new plant varieties. Species engineering has begun on heralded, under-researched plant feedstocks such as switchgrass, camelina and jatropha, and protecting the fruits of such research and development labor can be achieved in Canada through a combined strategy.

 
 Criteria for Patents Versus Plant Breeders' Rights
 A valid patent will be granted for an invention that is novel, useful and nonobvious. If the invention was disclosed by the applicant more than one year before filing a patent application, then it is considered unpatentable in Canada for lack of novelty. 
 
 To qualify for a plant breeders' rights certificate, a plant variety must be new, distinct, uniform and stable. A "new" variety must not have been sold in Canada before the filing of the plant breeders' rights application and must not have been sold abroad for more than four years, or for more than six years in the case of woody plants and their rootstocks. 
 
 A "distinct" variety possesses measurably different characteristics from commonly known varieties. For example, a variety could be "distinct" because its seed oil content is higher than any known variety of the same species. Furthermore, a "uniform" variety exhibits predictable variation in its characteristics, and a "stable" variety has characteristics that remain unchanged over successive generations. 
 
 Subject Matter of Patents Versus Plant Breeders' Rights
 The Canadian Intellectual Property Office currently holds the position that multicellular organisms are not patentable subject matter. It may be possible to patent new and inventive methods of genetic engineering, or individual cells of multicellular organisms, but any claims to a plant itself will be rejected by CIPO. The Plant Breeders' Rights Act allows the exclusive right to a plant variety that is asexually or sexually reproducible. However, plant breeders' rights cannot be obtained for fungi, algae or bacteria. 
 
 Duration, Scope of Patents Versus Plant Breeders' Rights
 While the term of a patent is 20 years from the date of filing a patent application, the duration of plant breeders' rights is 18 years from the plant breeders' rights certificate issue date. 
 

 The scope of a patent is defined by its claims and often allows broad coverage of an invention, such as a plant cell containing a new chimeric gene that is applicable to several plant species. Each plant breeders' rights certificate, however, covers a particular variety belonging to a particular plant species. The plant breeders' rights certificate holder may exclude others from selling the protected variety, producing it for sale and making repeated use of the protected variety as a step to commercially produce another variety. 
 
 Plant Protection in the U.S. 
 In the U.S., breeders' rights can be obtained for sexually reproduced (by seed) or tuber-propagated plants. It's also possible to obtain a so-called "plant patent" for an asexually reproduced plant. The U.S. also allows regular utility patents for plants. 
 
 Given the need for improved plant feedstocks in the energy industry and the particularities of the Canadian intellectual property system, neither patents nor plant breeders' rights should be overlooked as valuable means of protection. 
 
 Micheline Ayoub is a patent associate in the fields of biotechnology and plant varieties protection at Robic, a Quebec-based intellectual property and business law firm. Reach her at <a href="mailto:ayoub@robic.com">ayoub@robic.com</a>. Jeremy Lawson is a patent agent in the fields of chemical and process engineering at Robic. Reach him at <a href="mailto:lawson@robic.com">lawson@robic.com</a>.

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Plant Breeders' Rights for New Feedstocks

For too long, animal fat-based biodiesel has been hiding in the shadow of its plant oil-based sisters, wrongly perceived as a lesser-quality option. The truth is, that bad reputation isn't justified.
 
 According to scientific studies, both animal fat- and plant-based biodiesel contain the same chemical constituents-only the proportions vary. Both reduce unburned hydrocarbons, carbon monoxide and particulates. Both are biodegradable, nontoxic and safe to use in diesel engines with no modifications. Both are completely renewable sources of energy.
 
 Animal fat-based biodiesel gained a poor reputation in the early years of the industry because some producers ignored quality standards and did not adequately manage their chemistry or downstream refining. Today, there are many high-quality animal fat-based biodiesel producers that offer ASTM and/or EN specification product to their customers. 

 
 Consider the facts:
 Cetane number and emissions: The cetane number measures ignition quality of the fuel. The higher the number, the better. Soybean oil-based biodiesel averages between 46 and 52, while that of conventional diesel falls between 40 and 52. Animal fat-based biodiesel is between 56 and 60. Inadequate cetane numbers result in poor ignition quality and delay, abnormal combustion, excessive engine knock and smoke on cold starts. In addition to improving fuel combustion, increasing cetane levels often reduces emissions of nitrogen oxides and particulate matter. Animal fat-based biodiesel also provides added lubricity, a measure of protective compounds in the fuel that reduce engine wear and tear.
 
 Cold-weather performance: Winter performance is an issue for all biodiesel, regardless of feedstock. While its higher cloud point means animal fat-based biodiesel freezes at a higher temperature than its plant oil-based counterparts, extensive testing has shown virtually no impact in B5 blends.
 
 Engine suitability: If it meets ASTM standards, animal fat-based biodiesel is safe to use in all diesel engines. Most original equipment manufacturer dealers and customer service departments recommend B5 blends, while some promote B20 blends. Like other biodiesel, it acts as a solvent, releasing the deposits that build up after using petroleum-based diesel. For that reason, based on how biodiesel use is implemented, filters should be checked regularly and may need to be changed more often. 
 
 Sustainability: While all biodiesel is greener than petroleum-based diesel, animal fat-based biodiesel offers the most sustainable choice because it uses byproducts as a feedstock instead of relying on virgin materials. In addition, scientific studies continue to show better greenhouse gas reductions from the use of animal fats to produce biodiesel. 
 
 Stability: Without modifications or treatment, biodiesel can form sediments during storage. However, the higher percentage of saturated fats in animal fat-based biodiesel provides greater oxidative stability than its plant oil-based counterparts, reducing the risk of sedimentation. 
 
 Supply: American meat production shows no signs of slowing as the USDA predicts continued growth of 1 percent per year. That guarantees a steady supply of tallow and fats. With only 3 percent to 8 percent of animal fats and tallow being used for biodiesel production, there's no shortage of feedstock to supply North America's booming biodiesel industry. 
 
 The bottom line is that if biodiesel meets the prevalent ASTM specification, the feedstock used to produce it should not be a question. Animal fat-based biodiesel continues to measure up. In order to meet our renewable fuel obligations, we need to start taking advantage of a promising resource. 

 
 Jeremy Goodfellow is vice president of energy for Sanimax. Reach him at <a href="mailto:jeremy.goodfellow@sanimax.com">jeremy.goodfellow@sanimax.com</a> or (800) 263-7430.

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Animal Fat-Based Biodiesel: Explore Its Untapped Potential

Web exclusive posted Feb. 11, 2009, at 10:21 a.m. CST 
 
 The <a href="http://www.renewablediesel.ca/">Alberta Renewable Diesel Demonstration</a> has published its <a href="http://www.renewablediesel.ca/pdf/ARDD%20Final%20Report.pdf ">final report</a> detailing a 10-month study that gauged the operability of biodiesel blends under various climatic conditions. According to the ARDD, the study confirmed the operability of B2 in cold-weather conditions and B5 in moderate- to warm-weather conditions. In addition, the ARDD study showed it's possible to create, dispense, and use B2 and B5 in Canada's cold climates using the existing distribution and commercial infrastructure. 
 

 In December 2006, Canada published a Notice of Intent (NOI) to regulate a renewable fuel standard (RFS) mandating the use of renewable fuels in Canada. The NOl stipulated that implementation of the renewable diesel component of the RFS was contingent on successfully demonstrating the use of renewable diesel under a range of Canadian conditions. The results of the ARDD study will be used as documentation responding to the NOI, the ARDD said.
 
 According to the ARDD, Alberta was selected for the study primarily because it represents some of the harsher climates in Canada. During the study, the participating vehicles endured two consecutive nights when the overnight low temperatures fell below minus 40 degrees Celsius (minus 40 degrees Fahrenheit) in late January. However, no loss of service events was reported.
 
 The ARDD study, which tested biodiesel blends in the laboratory and in real-world over-the-road use by Alberta trucking fleets, was conducted from December 2007 through September 2008. Both fatty acid methyl ester (FAME) biodiesel and hydrogenated-derived renewable diesel (HDRD) biodiesel blends were tested. According to the U.S. DOE, HDRD is produced through the hydrogenation of triglycerides in fats or vegetable oils using conventional oil refinery equipment.
 
 During the study, a fleet of 29 vehicles used FAME blends and 30 used HDRD blends. A control group of 16 vehicles used unblended ultra low sulfur petroleum diesel fuel for comparison. The vehicles included Class 8 transport trucks with and without exhaust after-treatment technologies, school buses, delivery trucks, and a group of heavy-duty oilfield service vehicles. All participating vehicles were 2002 model year or later.
 
 The 29 vehicles using FAME blends used canola methyl ester (CME) biodiesel blended exclusively during the winter months from Dec. 16, 2007, through April 15, 2008. Those same vehicles used 75 percent CME and 25 percent tallow methyl ester (TME) mixed biodiesel blended during the spring and summer months from April 16, 2008 through Sept. 30, 2008.
 
 More than 1.6 million liters (423,000 gallons) of blended fuel were tested, including 245,000 liters (65,000 gallons) of B2 FAME; 400,000 liters (106,000 gallons) of 2 percent HDRD; 540,000 liters (143,000 gallons) of B5 FAME; and 425,000 liters (112,000 gallons) of 5 percent HDRD.

Researchers successfully test B2, B5 use in Alberta

Web exclusive posted Feb. 11, 2009, at 10:34 a.m. CST 
 
 GreenHunter Biofuels LLC, a wholly owned subsidiary of Grapevine, Texas-based <a href="http://www.greenhunterenergy.com ">GreenHunter Energy Inc.</a>, reported Feb. 7 that its 105 MMgy Houston refinery sustained minor damages due to a small fire. 

 
 Located on 22 acres near Houston, the GreenHunter Biofuels facility is on the site of a previous waste oil and chemical treatment plant. 	
 
 The cause of the fire was attributed to a mechanical seal failure on a circulation pump, which caused excessive heat, generating the fire. Firefighters reached the scene within about ten minutes and were able to extinguish the fire using the company's fire water system and the fire department's foam materials and equipment. 
 
 Initial damage assessments indicated minimal damage; GreenHunter estimated repair costs will be less than $50,000 and the facility's downtime would be about three days.
 
 No injuries were sustained by GreenHunter personnel or firefighters during the incident, according to the company. 
 
 This is the second time in the past year that GreenHunter's biodiesel facility has been damaged. In September, the facility was shut down for more than two months due to water damage caused by Hurricane Ike. (Read: <a href="http://www.biodieselmagazine.com/article.jsp?article_id=2786&q=Greenhunter&category_id=5 ">"Hurricane Ike damages Green Hunter facility."</a>)

Fire damages GreenHunter Biofuels facility

Web exclusive posted Feb. 11, 2009, at 10:55 a.m. CST 
 
 The Feb. 10 USDA's World Agricultural Supply and Demand Estimates report reduced its projected U.S. soybean ending stocks for the current marketing year to 210 million bushels, down 15 million bushels from last month. 
 

 Increased exports more than offset lower crush volumes, with soybean exports raised 50 million bushels to 1.15 billion bushels. Export shipments continue to exceed earlier projections, primarily for China. The U.S. soybean crush was reduced 35 million bushels to 1.65 billion bushels reflecting a continuation of the weak domestic soybean meal disappearance that began during the summer of 2008.
 
 Domestic soybean oil disappearance was reduced, mainly due to lower projected use for biodiesel production. The USDA now projects soybean oil use for methyl esters at 2.9 billion pounds for the 2008-'09 marketing year, compared with last month's projection of 3.1 billion pounds. The new projections for methyl ester use was 81 million pounds lower than the 2007-'08 use but higher than the 2.76 billion pounds of oil used for biodiesel in 2006-'07. Overall, soybean oil stocks were projected higher this month as reduced production is more than offset by lower use. The soybean oil exports projection was also lowered this month reflecting weak sales and shipments through the first four months of the marketing year, which began in September 2008. 
 
 The U.S. season-average soybean price range for 2008-'09 is projected at $8.75 to $9.75 per bushel, up 25 cents on both ends of the range. The soybean meal price is projected at $265 to $305 per ton compared with $250 to $310 last month. The soybean oil price is projected at 31 to 34 cents per pound, down 1 cent on both ends of the range.
 
 The USDA reduced its estimates for global soybean production due to hot, dry weather in South America. Global soybean production is reduced 9.1 million tons to 224.1 million tons. Soybean production for Argentina is projected at 43.8 million tons, down 5.7 million from last month as drought conditions and heat in the central growing area has resulted in lower projected harvested area and yields. Soybean production for Brazil is projected at 57 million tons, down 2 million due to dry conditions, especially in the southern producing areas. Paraguay soybean production is reduced to 4 million tons, down 1.6 million, also due to hot, dry weather.
 
 Overall global oilseed production for 2008-'09 is projected at 408 million tons, down 8.3 million tons from last month. The lower soybean prospects and lower sunflower seed production more than offsets increases for rapeseed and peanuts. Global sunflower seed production is projected lower due to reductions for Argentina and the European Union. Global rapeseed production is raised this month due to larger projected crops for India and Ukraine. Other changes include higher peanut production for India, and higher sunflower seed production for Ukraine. Global oilseed stocks are projected at 61.6 million tons, down 3.8 million tons. Most of the decline is due to lower soybean stocks in the U.S., Brazil and Argentina.

WASDE: Soybean exports up, domestic use down

Web exclusive posted Feb. 11, 2009, at 11:08 a.m. CST 
 
 The <a href="http://sfwater.org">San Francisco Public Utilities Commission</a> has announced that <a href="http://www.blackgoldbiofuels.com/">BlackGold Biofuels</a> (formerly known as Philadelphia Fry-o-Diesel) of Philadelphia, Pa., will be the technology provider for the city's demonstration-scale biodiesel plant that will convert brown grease into ASTM-quality biodiesel. 

 
 BlackGold said it has developed and demonstrated the conversion process at its Philadelphia pilot-scale plant over the past four years and has begun licensing the technology.
 
 "It's not a demonstration to prove the technology is there-it's a proven technology," said Karri Ving, biofuels coordinator for the SFPUC. "The purpose of the demonstration is to provide a commercialization pathway for these emerging technologies to bring the price of this conversion in line per gallon with the cost of diesel and biodiesel so that it is commercially viable. We're doing that by locating their processor within the walls of our sewage treatment plant to take advantage of cost-savings: a hot water loop, latent heating, the transportation corridor, the existing permitting, and the discharge into our treatment works-all of that drops down the cost."
 
 BlackGold credits early grant support from the Pennsylvania Department of Environmental Protection and technical collaboration with the USDA Agricultural Research Service for its success.
 
 Brown grease, typically disposed of at sewage treatment plants, is identified as the dark substance that remains in grill traps and grease interceptors under restaurant kitchen sinks. Brown grease has very high free fatty acid content and is not typically considered for use as a biodiesel feedstock, but rather is transferred to an incinerator or landfill.
 
 San Francisco officials estimate there are 2.5 million gallons of brown grease in the city. When the new facility at the Oceanside Water Pollution Control Plant is completed in November, the SFPUC will produce 100,000 gallons of biodiesel per year, BlackGold estimates. The biodiesel will include three types: ASTM-certified biodiesel; a lower-grade fuel for running sewage treatment plant turbines and pumps; and energy to fuel cogeneration, capturing methane gas to convert it to electricity.
 
 The SFPUC estimates that grease blockages in San Francisco sewers account for 50 percent of all sewer emergencies and annually costs the city $3.5 million in cleanings, BlackGold said.
 
 In addition, the SFPUC announced it has received a $175,000 grant from the U.S. EPA to produce a how-to manual for other cities to follow San Francisco's lead.
 
 "The second goal is replication," Ving said. "We want to take this model and write a business case for it, write the cost-benefit analysis, the greenhouse gas emission-saving profile, and be able to open source all of that information in the form a toolbox. That is what the EPA grant provides."
 

 In May 2008, the city received a $1 million grant from the California Energy Commission for the project.
 
 For more information, see the following Biodiesel Magazine articles: 
 <ul>	<li><a href="http://www.biodieselmagazine.com/article.jsp?article_id=3156 ">"Biodiesel in the Golden Gate City"</a></li>
 	<li><a href="http://www.biodieselmagazine.com/article.jsp?article_id=2532 ">"San Francisco receives $1 million grease grant"</a></li>
 	<li><a href="http://www.biodieselmagazine.com/article.jsp?article_id=2428">"San Francisco receives grease grant"</a></li>
 	<li><a href="http://www.biodieselmagazine.com/article.jsp?article_id=2293">"The 'FOG' is Lifting"</a></li></ul>

San Francisco to use BlackGold Biofuels technology

Web exclusive posted Feb. 11, 2009, at 4:23 p.m. CST 

 
 <a href="http://www.biofuelbox.com">BioFuelBox Corp.</a> recently announced success in removing a technical obstacle that has prevented wide-scale conversion of waste greases. "Historically there have been many challenges producing biodiesel from waste greases," said Steve Perricone, president and chief executive officer of BioFuelBox. "Over the last 5 years the BioFuelBox team has systematically addressed each of them and has recently overcome one of the most daunting – the removal of sulfur in order to meet on-road ASTM specifications."
 
 San Jose, Calif.-based BioFuelBox has developed a modular, containerized biodiesel process that produces ASTM-quality biodiesel from high free fatty acid (FFA) feedstocks. Through a suite of technologies in the pretreatment, process and fuel purification steps of biodiesel production, it can handle up to 100 percent FFA content, high contamination levels and high water content, according to Rick Reddy, vice president of marketing for BioFuelBox. Because the company has targeted difficult feedstocks and concentrated on producing ASTM-quality fuel, the resulting biodiesel has had few problems passing the new cold soak tests, Reddy added. 
 
 The company's first commercial installation is nearing start up at a potato processing plant. While the agricultural processor has found markets for its waste fryer oil, it has been stockpiling the lower quality waste oil and greases in an outdoor pond to be periodically hauled away for landfilling. BioFuelBox will be processing that feedstock with its unit. The company is developing a business model where BioFuelBox owns and operates biodiesel processors set up at industrial locations with convertible waste streams. Reddy said the company is negotiating its first industrial contract now.

BioFuelBox claims success in removing sulfur

Web exclusive posted Feb. 11, 2009, at 4:51 p.m. CST 
 
 The U.S. Senate passed the American Recovery and Reinvestment Act of 2009 on Feb. 10 by a vote of 64 to 37. Fifty-eight Democrats and three Republicans voted in favor of the bill, while 37 Republicans voted against it. The U.S. House of Representatives passed their version of the legislation on Jan. 28. 
 
 Like the House version of the package, the Senate version extended the production tax credit for biomass energy until 2013. However, there are differences as well. The Senate bill provided less total funding for energy projects, but allocated slightly more funding to renewable energy loans and renewable energy research than the House legislation. The Senate bill, however, provided significantly less funding in the areas of energy efficiency and electrical grid development. Unlike the House bill, the Senate version also provided funding for fossil fuel research. 
 
 Currently, representatives from the House and Senate are working to reconcile the differences between the bills. Once the conference committee reaches an agreement, the resulting legislation will return to the House and Senate for a final vote. If approved, the bill will then be delivered to President Barack Obama for his signature. Congress is expected to pass the stimulus legislation before Congress's next break, which is scheduled to begin on Feb. 16. 
 

 The Congressional Budget Office estimated the bill passed by the U.S. House of Representatives in January would increase budget deficits by approximately $820 billion. In comparison, budgetary impact of the stimulus package passed by the Senate is estimated to be an additional $19 billion more. 
 
 Members of the conference committee include: Sen. Daniel Inouye, D-Hawaii; Sen. Max Baucus, D-Mont.; Sen. Harry Reid, D-Nev.; Sen. Thad Cochran, R-Miss.; Sen. Chuck Grassley, R-Iowa; Rep. Dave Obey, D-Wis.; Rep. Charles Rangel, D-N.Y.; Rep. Henry Waxman, D-Calif.; Rep. Jerry Lewis, R-Calif.; and Rep. Dave Camp, R-Mich.

Senate stimulus bill includes biomass, biofuels provisions

Web exclusive posted Feb. 12, 2009, at 5:48 p.m. CST 
 
 Texas-based <a href="http://www.earthbiofuels.com/">Earth Biofuels Inc.</a> recently announced it has finalized a transaction that will provide funding for upgrades to its 10 MMgy Durant, Okla.-based biodiesel production facility and incremental working capital for the company. The transaction included the acquisition of more than 350 storage tanks, with capacities ranging from 8,000 to 39,000 gallons.
 
 According to Randy Hepler, senior vice president of Earth Biofuels, the storage tanks were purchased from a former brewery. "They are horizontal glass-lined tanks of various sizes," he said. Approximately 30 of the tanks will be installed at the company's Durant facility with a total storage capacity of more than one million gallons. The remaining tanks will be sold to help provide funding for additional upgrades to the facility. 
 
 Hepler said the upgrades included the installation of a pretreatment process that will allow the facility to recover methanol used in the production process. In addition to soybean oil, the upgraded facility will be able to utilize beef tallow, yellow grease, and poultry fat as feedstocks. According to Hepler, these upgrades will help ensure biodiesel produced at the Durant facility meets current ASTM standards. 
 
 Due to high feedstock prices, the Durant facility, which was originally constructed in 2006, is not currently operating. 
 

 The upgrades will allow the facility to be feedstock flexible, allowing Earth Biofuels to purchase the least expensive feedstock. To overcome volatile market conditions, the company's strategy will be to utilize the additional storage capacity to acquire and hold physical inventories of feedstocks, depending upon the biodiesel economics at a given time.
 
 The storage tanks are expected to be installed by July. Additional upgrades to the plant should be complete by August, with production beginning in September.

Earth Biofuels to upgrade Oklahoma facility

Web exclusive posted Feb. 13, 2009, at 12:52 p.m. CST 
 
 German quality assurance firm Arbeitsgemeinschaft Qualitätsmanagement Biodiesel e.V. (AGQM) announced Feb. 6 that its quality assurance program for public filling stations will be dropped, blaming the change in German tax policies. In August 2006, Germany began phasing out a biodiesel tax incentive; combined with the past year's high petroleum prices, consumer demand for biodiesel at the pump has weakened. 
 
 Until last year, Germany was leading European growth in the number of filling stations selling biodiesel to consumers, with AGQM estimating 1,900 public filling stations offering the fuel. A poll by AGQM of its 437 licensees earlier this year indicated just 88 firms are still interested in selling biodiesel. Of the 1,200 filling stations operated by the licensees, only 250 still sell biodiesel. "As AGQM and other industry associations see it, this negative development is due to the disproportionately high taxation on biodiesel," AGQM said in a statement. The quality assurance firm will continue its quality management services for biodiesel producers and traders who supply biodiesel for the mandated blends, as well to wholesale businesses.
 
 Between 2001 and 2005, German biodiesel sales at public filling stations rose each year. In 2006, as Germany began phasing out its biofuel tax benefits, sales began tapering off until they plummeted last year. In 2008, UFOP, the German Union for Promoting Oil Seeds and Protein Plants, estimated the sales at public filling stations dropped by half from the 2005 numbers. Public filling station biodiesel sales in 2007 amounted to 456,000 tons (136 million gallons). Nearly 1.4 million tons (418 million gallons) of biodiesel are consumed by agriculture and private filling stations for truck fleets and 1.5 million tons (448 million gallons) for mandated blending.
 
 Germany is by far the continent's largest biodiesel user at 3.13 million tons (935 million gallons) in 2007, followed by France at 1.15 million tons (344 million gallons). The rest of the continental European sales combined equal France's biodiesel consumption.

Germany retail biodiesel sales plummet

Web exclusive posted March 4, 2009, at 10:55 a.m. CST 
 
 The camelina industry has formed the North American Camelina Trade Association to promote research, production and the development of new markets for camelina, including biodiesel production.
 
 Camelina, a member of the mustard family, may also be the first of several new alternative oilseed crops to reach commercialization for biodiesel production, as it is a fast-growing short-seasoned crop with high oil content. (Read <a href="http://www.biodieselmagazine.com/article.jsp?article_id=3161&q=camelina&category_id=13">"Meal: More Than Just Chicken Feed."</a>)

 
 Less than a month ago, the U.S. Food and Drug Administration issued a letter allowing the use of camelina meal in the diets of poultry broilers up to 10 percent of the weight of the total ration, The FDA's Feb. 6 approval followed the submittal of a Montana Department of Agriculture-funded study by NACTA, which determined the level of camelina meal which could be fed to poultry. While high in protein and vitamin E, camelina is also a good source for omega-3 fatty acids, which are beneficial to weight gain in chickens. 
 
 NACTA is now working with the FDA and the American Association of Feed Control Officials to secure "Generally Recognized as Safe" certification for poultry and additional livestock species in order to broaden revenue for camelina growers. 
 
 Scott Johnson, General Manager of Sustainable Oils Inc., will serve as NACTA president. David King, chief executive officer of Great Plains-The Camelina Co. will serve as secretary, and Chief Executive Officer of Willamette Biomass Processors Craig Parker will assume the position of treasurer.
 Great Plains and Sustainable Oils are camelina-based biodiesel developers which have been working with the FDA to gain approval for the crop to be used as livestock feed for several years. Willamette Biomass Processors is an Oregon-based oilseed processing facility and supplier of canola/camelina meal. 
 
 The first annual meeting of NACTA, which currently consists of 13 seed companies, processors and researchers of camelina across the U.S. and Canada, will be held in October.

North American camelina industry forms association

Web exclusive posted Feb. 13, 2009, at 2:05 p.m. CST 
 
 The <a href="http://www.fuelresponsibly.org ">Sustainable Biodiesel Alliance</a> announced a partnership Feb. 13 to field test its Baseline Practices for Sustainability with Wisconsin-based <a href="http://www.organicvalley.coop/">Organic Valley Family of Farms</a>. The nonprofit SBA published its baseline practices in December 2008, after a yearlong consultation process involving the biodiesel industry, environmentalists and other stakeholders. Organic Valley will be the first organization to test the applicability of the BPS among its farmer members and in its distribution system.

 
 Organized in 1988, Organic Valley is America's largest cooperative of organic farmers and is one of the nation's leading organic brands. The cooperative includes 1,322 farmers in 34 states and one Canadian province. It was an early adopter of biodiesel in its fleet, and encourages renewable energy use among its farmers-owners that supply dairy products, eggs, produce, soy, juice and meats for nationwide distribution. 
 
 Organic Valley will apply the practices outlined in the BPS document to their existing systems and report its findings to the SBA. The data collected from Organic Valley and other pilot programs which will be launched later this year, will be used to develop criteria and indicators for an independent certification system for sustainable biodiesel that the SBA plans to implement in 2010. 
 
 The SBA was founded in 2006 to promote environmentally and socially sustainable practices for the biodiesel industry. Its 25-page document, titled "Baseline Practices for Sustainability," outlines environmentally and socially sustainable practices for biodiesel feedstock, production, distribution and end users. "As a mission driven organization, the SBA develops tools for sustainability," said Jeff Plowman, executive director of SBA. "Having Organic Valley field test the BPS, will allow us to fine tune those tools."

SBA, cooperative to test sustainability criteria

Web exclusive posted Feb. 16, 2009, at 3:39 p.m. CST 
 
 Biodiesel purification specialist <a href="http://www.schroederbiofuels.com ">Schroeder Biofuels</a> announced that in March it will launch a trial program of its Eco2Pure system.
 
 According to Schroeder Biofuels, the Eco2Pure system works by passing unwashed biodiesel through a fixed bed of purification media, ensuring the fuel is purified in a single pass and production residues, fuels contaminants, and soaps are removed. 
 
 The trial program is being released due to the high interest in the company's product at the recent National Biodiesel Conference and Expo 2009 in San Francisco in early February. 

 
 Beginning Feb. 23, producers can sign up for a trial unit that purifies 1.5 gallons-per-minute. Interested participants can test a complete unit for a few weeks. "If you have a current purification system in place, it will be easy to see how the Eco2Pure works," said Jonathan Dugan, Schroeder Biofuels product specialist. "It will be very easy for you to tap into the current flow of your system. This will provide the opportunity to take a look at the system, easily and quickly, without much work."
 
 All necessary equipment will be provided to allow borrowers an opportunity to observe the system's ability to provide fuel, which meets quality standards. Dugan said four units will be available for testing, on a first-come first-serve basis. 
 
 The Eco2Pure Dry Wash Purification Media, which is a unique, cellulose-based, natural and sustainable composition of absorbent technologies, is manufactured from a side-stream of another production process, according to Dugan. "We don't single-source or cut down trees for the base, which is wood cellulose," he said. Each kilogram of the media can purify between 110 and 180 gallons of crude biodiesel.
 
 "The spent media, after it has had all of this fuel drained through it, has a solid fuel value of 19 million British thermal units per kilogram, meaning you are right around the same fuel value as an entire cord of hardwood," Dugan said. "It has a great value for solid waste burners, as well as anaerobic digestion and compost applications." 
 
 Dugan said Schroeder Biofuels will host a Web cast in the next few months to introduce a light, industrial version of Eco 2Pure skids targeted for those who are producing 500,000 gallons to 1 MMgy biodiesel. The company will also discuss the launch of a cold-soak solution, which Dugan said benefits the end user because it introduces minimal to no yield loss in the final product.

Schroeder Biofuels to launch trial Eco2Pure system

Web exclusive posted Feb. 16, 2009, at 3:55 p.m. CST 
 
 On Feb. 17, President Barack Obama signed the American Recovery and Reinvestment Act of 2009. The legislation passed in the House by a vote of 246 to 183. The Senate approved the legislation by a vote of 60 to 38. 
 
 The legislation, which includes biofuels and biomass provisions, has an estimated price tag of $787 billion. During fiscal year 2009, the conference agreement is expected to cost approximately $50 billion less than the original House bill and $21 billion more than the legislation originally passed by the Senate. 
 

 The renewable energy, biofuels and biomass provisions in the economic stimulus pack include: 
 	<ul><li>$16.8 billion for the Energy Efficiency and Renewable Energy Program, including $2.5 billion for applied research, development, demonstration and deployment activities to include $800 million for projects related to biomass and $400 million for geothermal activities and projects. This particular funding also includes $300 million for the Alternative Fueled Vehicles Pilot Grant Program. </li>
 	<li>A total of $300 million to the Department of Defense for research, development, testing and evaluation, including pilot projects, demonstrations and energy efficient manufacturing enhancements. Funds are for improvements in energy generation and efficiency, transmission, regulation and storage and for use on military installations and within operational forces, to include research and development of energy for fuel cells, wind, solar, and other renewable energy sources to include biofuels and bioenergy. </li>
 	<li>$4.5 billion for the Electricity Delivery and Energy Reliability program.</li>
 	<li>$150 million in budget authority for rural business loans and grants, which will support $3.01 billion in rural business loans and grants. Of this amount, $2.99 million is for guaranteed business and industry loans and $20 billion is for rural business enterprise grants. </li>
 	<li>$6 billion for the Innovative Technology Loan Guarantee program for the cost of guaranteed loans authorized by section 1705 of the Energy Policy Act of 2005. The loan program would provide loan guarantees for renewable technologies and transmission technologies. The $6 billion in appropriated funds is expected to support more than $60 billion in loans for these projects.</li>
 	<li>$15 million to Department of the Interior Bureau of Land Management for wildland fire management. The funds should be used for high priority hazardous fuels reduction projects on Federal lands. </li>

 	<li>$500 million to the Department of Agriculture Forest Service for Wildland Fire Management, including $250 million for hazardous fuels reduction, forest health protection, rehabilitation and hazard mitigation activities on Federal lands. The bill allows the Forest Service to use up to $50 million to make competitive grants for the purpose of creating incentives for increased use of biomass from federal and non-federal forested lands. </li></ul>
 For more information on the American Recovery and Reinvestment Act of 2009, visit the <a href="http://thomas.loc.gov/home/approp/app09.html#h1">Library of Congress Web site</a>.

President signs stimulus package

Web exclusive posted Feb. 17, 2009, at 2:36 p.m. CST 
 
 Los Angeles-based <a href="http://www.originoil.com/">OriginOil Inc.</a> has signed a cooperative agreement with the <a href="https://inlportal.inl.gov/portal/server.pt?open=512&objID=255&mode=2">U.S. DOE's Idaho National Laboratory</a> in an effort to help validate and commercialize OriginOil's algae-to-oil technology into the mainstream market.
 

 The multi-phase research program will focus on commercial scaling of OriginOil's technology in the production of algae-based fuels by utilizing state-of-the-art equipment, capabilities, scientists and engineers of the Idaho National Laboratory. The initial phase will focus on the collaborative development of an energy balance model for photobioreactor-based algae systems. The company expects to use this model in the optimization of its algae-to-oil technology as early as the first quarter of this year. Subsequent phases will center on validation of OriginOil's processes and piloting specific commercial applications.
 
 "Our primary challenge is cost-effective and scalable industrial processes and our partnership with OriginOil will help us find solutions to this challenge in the promising area of algae-to-oil technology," said Thomas Ulrich, advisory scientist for Idaho National Laboratory's Biofuels and Renewable Energy Department. 
 
 In operation since 1949, Idaho National Laboratory is a science-based, applied engineering national laboratory dedicated to supporting the DOE's energy research and national defense efforts. "Partnerships with innovators like OriginOil will accelerate our pursuit of national energy independence initiatives," Ulrich said. 
 
 In December 2008, Biodiesel Magazine reported that OriginOil successfully automated its algae cultivation and oil extraction system, allowing it to grow algae to extract the oil for biodiesel production. (Read <a href="http://www.biodieselmagazine.com/article.jsp?article_id=3094&q=OriginOil%20Inc.&category_id=13">"Origin automates algae system."</a>)

OriginOil signs agreement with U.S. DOE

Web exclusive posted Feb. 18, 2009, at 3:32 p.m. CST 
 
 Purdue University Extension has developed a <a href="http://www.extension.purdue.edu/renewable-energy/">Renewable Energy Web site</a>, dedicated to providing visitors with the latest information on biofuels including biodiesel and corn-based ethanol and its coproducts, wind and solar energy, as well as energy efficiency systems.

 
 The Web site was created to get information on renewable energy technology out to the general public, said Klein Ileleji, a Purdue Extension agricultural engineer. "A lot of people are inquiring more about what technologies are available for them to actually use," he said. "One of my goals is to do outreach and educate the public and this Web site is the means of doing that."
 
 Ilelaji said he wanted to give people a "one-stop shop" for all of Purdue's research and know-how on renewable energy, rather than directing them to other places. The Web site is a collaborative effort between Purdue Agriculture Extension and the Purdue Discovery Energy Center.
 
 A multitude of resources are available on the site, including publications and research done by Purdue faculty and staff, an interactive events page, tools for analysis of renewable energy systems, and links to correlating Web sites. Ileleji said Purdue hopes to add more information and publications on the renewable energy efforts from other land-grant universities.
 
 "Our target audience will be producers serving the state of Indiana, but also the general public," Ileleji said. "There are homeowners who want to look at a power system, or producers who are looking at coproducts, distillers grains, or someone who wants to know the basics about ethanol production." 
 
 Purdue wants the site to be as active as possible, he added. Information on new publications and events will be updated constantly. "We are hoping to be timely, such that people will be able to benefit from the Web site," Ileleji said. The university would eventually like to issue e-newsletters when the site is updated. 
 
 The Web site went live in early February and Ileleji couldn't be happier with the response. "We've been getting a lot of feedback, a lot of calls, a lot of thumbs up. It's been very good," he said. 
 
 The Web site can be found at <a href="http://www.extension.purdue.edu/renewable-energy/">www.extension.purdue.edu/renewable-energy/</a>.

Purdue University launches new renewable energy Web site

Web exclusive posted Feb. 17, 2009, at 3:31 p.m. CST 

 
 The recycling program in Marion County, Ore., now includes curbside recycling for waste vegetable oil which will be used as a feedstock for biodiesel production. <a href="http://www.mrtrashrecycles.com">Mid-Valley Garbage & Recycling Association</a>, which represents eight waste haulers within the county, has agreed to supply Salem, Ore.-based <a href="http://www.sqbiofuels.com/production.htm">SeQuential-Pacific Biodiesel LLC's</a> 5 MMgy facility with the waste vegetable oil feedstock, according to Mary Kanz, executive director for the association.
 
 "We're very surprised with the initial results," Kanz said. "Just within hours after the announcement, we were seeing cooking oil out at the curb. We were very, very surprised. It was very well-received by the public. We didn't expect to see mass amounts, but we were surprised at how quick it showed up. We're very pleased."
 
 Kanz said the project began as a conversation between the waste haulers about what might be added to the association's curbside recycling offerings. "They were very familiar with the new (SeQuential) biodiesel plant and thought it would be a perfect connection," she said. "You can't get any more local than right in your own backyard. We connected with the SeQuential folks and they were as excited or even more excited. We didn't know what we were getting into and the more we found out about it, the more convinced we were that this was a good move to make."
 
 To recycle waste vegetable oil, residents are asked to funnel the oil back into the containers they purchased the oil in and then set the containers curbside. "That would be the best suggestion," Kanz said, "because it is easy for us to identify, because we're picking up other liquids along with this. They really don't have to filter it, (because) that's all done at the biodiesel plant." Kanz said alternatively, residents can place the oil into another clear plastic container, but no glass. "It needs to be plastic with a twist-on cap to avoid any spillage once it is picked up curbside," she said.
 
 After the waste haulers pick up the waste vegetable oil containers, the oil is dumped into larger containers supplied by SeQuential. The empty plastic containers are then recycled. 
 

 Kanz said it's too soon to know how much feedstock will be collected for SeQuential. The U.S. Census Bureau estimates there are 311,000 residents in Marion County. "Not everybody uses cooking oil," Kanz said, "but there is a large amount of people out there that do and they were very surprised. I'm hearing comments just about on a daily basis like, 'Wow! We get to recycle this, too?' We expect to see big spikes around the holiday times, you know, when people are doing the deep fried turkeys and things and then it will settle down throughout the year. We were pleasantly surprised at the quick response from the public."
 
 Kanz is not expecting an enormous amount of oil to be collected. "But the environmental value of it is huge," she said. "Maybe people that hadn't thought of other recycling will see this and it will generate even more recycling because they are excited about this one aspect."

Oregon producer to use residential oil waste

Web exclusive posted Feb. 18, 2009, at 10:13 a.m. CST 
 
 Iowa-based biodiesel producer and marketer <a href="http://www.renewable-energy-group.com/">Renewable Energy Group Inc.</a> recently opened a new biodiesel truck loading terminal in Seabrook, Texas.
 
 Customers have the option to pump either B99 or B100 at the loading station, which is colocated at REG's 35 MMgy production facility. The plant sits adjacent to a terminal owned and operated by <a href="http://www.lbc-net.com/">LBC Group</a>. Headquartered in Paris, LBC is the second largest tank storage company for chemical products and related added value services in the world. 
 
 According to REG, providing biodiesel at the new Houston terminal will offer significant value in several ways. First, REG-branded biodiesel will be competitively priced with #2 ultra low sulfur diesel throughout the year. Second, customers who purchase REG biodiesel will be assigned renewable identification number system, which are currently worth approximately $0.20 per gallon. As well, gallons of biodiesel are exempt from Texas' $0.20 per gallon state excise tax.
 

 "These three factors add up to significant value for our customers' bottom line," said Gary Haer, vice president of sales and marketing for REG. "The current market conditions in Texas make biodiesel a tremendous choice for truck stops and petroleum distributors throughout the Gulf Coast."
 
 Haer said that while B99 or B100 can be picked up from the new truck loading facility, several diesel terminals located in the area create options for in-truck splash blending. Every load of REG biodiesel purchased comes with a certificate of analysis outlining product quality. REG also has an on-site laboratory for ensuring quality throughout the biodiesel supply chain. 
 
 In February, Biodiesel Magazine reported that REG opened a new biodiesel blending terminal in Alamosa, Colo. (Read: <a href="http://www.biodieselmagazine.com/article.jsp?article_id=3199&q=REG%20opens%20Colorado%20terminal&category_id=8">"REG opens Colorado biodiesel blending terminal."</a>)

Renewable Energy Group Inc.'s newly-opened biodiesel terminal in Seabrook, Texas, is colocated with the company's 35 MMgy production facility./PHOTO: RENEWABLE ENERGY GROUP INC.

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REG opens biodiesel terminal in Houston area

Web exclusive posted Feb. 18, 2009, at 4:50 p.m. CST 
 
 A Virginia-based company will soon begin commercial production of two respective glycerin-based fuels. <a href="http://www.xcelplusglobal.com/">Xcelplus Global Holdings Inc.</a>, has been working to develop the fuels since 2006. One fuel, trademarked GlyClene, can be used as fuel in standard turbine engines and industrial boiler applications. The other, GlyCoal, can be used to offset the use of coal at power plants. Both GlyClene and GlyCoal are liquid fuels. 
 

 Crude glycerin directly out of the biodiesel process is the primary component of both GlyClene and GlyCoal. "We take 100 percent waste glycerin from a biodiesel plant, and we crack it, so the components are really all glycerin," said Bill Smith, Xcelplus Global Holding's chairman. The glycerin is treated with a chemical and thermal heat process to create the fuels. The chemical facilitating compound accounts for less than one percent of the formula, Smith continued. Patents are pending on the proprietary technology. 
 
 Xcelplus Global Holdings recently tested GlyClene as a boiler fuel source in Sony International's Dothan, Ala.-based plant, Smith said. That test showed the fuel produced 119,000 British thermal units per gallon. Additional testing is pending at a variety of other facilities, including a chicken plant, a carpet company and an asphalt company. In addition, GlyCoal was recently tested at an 80 megawatt power plant in West Virginia. The fuel was injected directly into the boiler system, said Smith, and resulted in a 10 percent offset of the plant's coal consumption. 
 
 GlyClene was the first fuel Xcelplus Global Holdings developed. The company then developed GlyCoal as a byproduct of GlyClene production. Both fuels have been produced on a bench- and pilot-scale; the company is now ramping up to commercially produce the fuels. 
 
 To commercialize their technology, Xcelplus Global Holdings is acquiring and modifying biodiesel plants. Smith said the company is currently ramping to 10 MMgy at one facility, and will likely produce more than 50 MMgy of the fuels in 2009. Smith estimated the facilities could begin commercial production within 90 to 120 days.

Company produces glycerin-based fuel

Web exclusive posted Feb. 20, 2009, at 10:08 a.m. CST 
 
 The Roundtable on Sustainable Biofuels has scheduled a second round of public consultations in the United States to receive feedback on Version Zero of the draft Principles and Criteria for Sustainable Biofuels. 
 
 A two-day Midwestern consultation will be held March 3 and March 4 in Room 150 in the Scheman building at Iowa State University in Ames, Iowa. The second consultation will be held March 16 at the United Nations Foundation, 1800 Massachusetts Ave. NW in Washington, D.C.
 
 Two previous meetings were held in North Carolina on Jan. 28 and in San Francisco on Feb. 4 following the National Biodiesel Conference. RSB Americas Coordinator Matt Rudolf said attendance at each meeting numbered about 60, with a broad spectrum of input and good discussions. The North Carolina meeting had good representation from U.S. government offices, while the San Francisco meeting had more academics in attendance. The broad principles were widely supported, although there were many questions about the definitions of specific terms. "There wasn't a lot of controversy," Rudolf said, "mostly because we're at the principle level." 
 
 The RSB is proposing a voluntary system to certify sustainable biofuel production. The comments on Version Zero will be compiled and the final draft of Version One is expected to be published in June. Meanwhile, an implementation working group has already begun working on certification plans. The next phase, Rudolf said, will be pilot-scale testing to see how workable the standards are in different locations. Version Zero was developed by working groups formed around three broad issues: the environment, greenhouse gas reduction and social principles.

 
 The text of the Principles and Criteria for Sustainable Biofuels, as well as the link to information on the RSB consultation meetings in North America and an online advance registration form are available at <a href="http://www.bioenergywiki.net">www.bioenergywiki.net</a>.

RSB to host Iowa, D.C. stakeholder meetings

Web exclusive posted Feb. 20, 2009, at 10:25 a.m. CST 
 
 New Generation Biofuels Holdings Inc. has completed construction and begun commissioning its 5 MMgy biofuel plant at the port location of Atlantic Terminaling in Baltimore. 
 
 New Generation describes its fuel as a second-generation biofuel manufactured using a proprietary emulsification process to stabilize oil-based feedstocks rather than the transesterification process used in biodiesel production.
 
 New Generation Biofuels is targeting large stationary power generators, commercial processors and marine transportation markets for its biofuels. According to the company, the Baltimore facility can expand up to 50 MMgy as the market grows. New Generation Biofuels currently has sales agreements with power producer Dynegy Inc. to supply 1.7 MMgy and the Commonwealth of Massachusetts and the Taunton State Hospital to supply up to 220,000 gallons of renewable biofuel over a year. 
 
 "We are pleased that we can now begin producing our second-generation biofuel at our Baltimore plant, whose modular design can accommodate capacity increases as we experience heightened demand for our versatile, cost-effective and technically superior product," said David A. Gillespie, president and chief executive officer of New Generation Biofuels. "Renewable energy has become an essential component of (President Barack) Obama administration's energy policy to address the important issues of energy security and climate change, and we look forward to being part of the solution as we ramp up our production."
 
 To learn more about New Generation Biofuels, read the following stories written by Biodiesel Magazine: 

 <ul>	<li><a href="http://www.biodieselmagazine.com/article.jsp?article_id=2795 ">"New Generation Biofuels to build Maryland plant"</a></li>
 	<li><a href="http://www.biodieselmagazine.com/article.jsp?article_id=2886 ">"New Generation Biofuels lands first heating customer"</a></li></ul>

New Generation begins commissioning facility

Web exclusive posted Feb. 20, 2009, at 12:18 p.m. CST 
 
 U.S. President Barack Obama signed the $787 billion American Recovery and Reinvestment Act into law on Feb. 17. 
 
 "Today does not mark the end of our troubles," President Obama said during the signing ceremony on Denver. "Nor does it constitute all of what we must do to turn our economy around. But it does mark the beginning of the end – the beginning of what we need to do to create jobs for Americans scrambling in the wake of layoffs, to provide relief for families worried they won't be able to pay next month's bill and to set our economy on a firmer foundation, paving the way for long-term growth and prosperity."
 
 The stimulus package is designed to invest in key areas that will save or create jobs immediately, while laying the groundwork for long-term economic growth. The U.S. White House estimates that over the next two years the package will save or create 3.5 million jobs in a variety of industries, including clean energy. 
 
 To help track the effects of the bill, the government has established a Web site, <a href="http://www.Recovery.gov">www.Recovery.gov</a>. According to the Web site, an estimated $787 billion will be spent; $43 billion of that is slated for energy development and $111 billion for infrastructure and science. 

 
 According to a <a href="http://www.whitehouse.gov/assets/documents/Recovery_Act_Energy_2-17.pdf">fact sheet</a> released by the White House, energy aspects of the legislation will help accelerate the development and deployment of clean and renewable energy. The Clean Energy Finance Authority program included in the recovery plan will revive the renewable industry and double the amount of renewable energy produced over the next three years. Collectively, this funding is expected to leverage nearly $100 billion in clean energy projects. These projects will include the creation of a bigger, better, smarter electric grid, increased energy efficiency and green jobs training. 
 
 Growth Energy released a statement Feb. 17 applauding the inclusion of provisions supporting the renewable fuels industry in the American Recovery and Reinvestment Act of 2009. "These measures will help speed the development of next-generation cellulosic ethanol that promises significant job creation as well as considerable reductions in greenhouse gas emissions," the statement said. According to Growth Energy, the U.S. DOE estimates that for each additional one billion gallons of ethanol production that is brought on-line, as many as 20,000 new jobs could be created. 
 
 In the areas of renewable energy and biofuels, the legislation:
 &bull; Extends the production tax credit (PTC) for qualified biomass and municipal solid waste facilities through 2013. 
 &bull; Permits tax payers to elect to claim an investment tax credit (ITC) in place of the PTC for certain projects, including closed-loop biomass, open-loop biomass, geothermal, landfill gas and trash renewable energy facilities placed in service from 2009 through 2013. The amount of the ITC would generally be 30 percent of the qualifying costs. 
 &bull; Modifies the ITC by eliminating the reduction of the ITC for property financed by subsidized energy financing or tax-exempt private activity bonds. 
 &bull; Would permit a taxpayer to receive a grant from the U.S. Treasury Department in place of claiming tax credits for certain properties placed in service in 2009 and 2010 that would otherwise qualify for the PTC or ITC. Federal, state and local governments and tax-exempt entities would not be eligible for the grants. Property placed in service after 2010, but on or before the applicable credit termination date, could qualify for the grants as long as construction began in 2009 or 2010. The amount of a grant would generally be equal to the amount of the ITC for which the project would have otherwise been eligible. 
 &bull; Extends first-year bonus depreciation to property placed in service in 2009. This means an owner of qualifying property placed in service in 2009 could deduct 50 percent of the adjusted basis of the property in 2009. The remaining 50 percent would be depreciated over the regular tax depreciation schedule. 
 &bull; Authorizes an additional $1.6 billion of Clean Renewable Energy Bonds (CREBs) to finance facilities that generate electricity from certain renewable resources.
 &bull; Authorizes an additional $2.4 billion of qualified energy conservation bonds and clarifies that the proceeds of qualified energy conservation bonds could be used for loans, grants, and other repayment mechanisms that implement green community programs.
 &bull; Modifies the carbon dioxide capture and sequestration credit to require that carbon dioxide used as a tertiary injectant be disposed of in secure geologic storage.

 &bull; Temporarily increases the business credit for alternative refueling property from 30 percent to 50 percent of the cost of qualifying property and increases the cap on the credit for depreciable property from $30,000 to $50,000. It also increases the cap on the credit for non-depreciable property from $1,000 to $2000, and applies to property placed in service during tax years 2009 and 2010.
 &bull; Creates a new 30 percent credit for investment in certain property used in a "qualifying advanced energy manufacturing project." Qualifying projects include those that re-equip, expand or establish a manufacturing facility for the production of property designed to produce energy from certain renewable resources, certain energy storage systems, electric grids to support the transmission of intermittent sources of renewable energy, property for carbon capture or sequestration, property designed to refine or blend fuels or produce energy conservation technologies or other advanced energy property designed to reduce greenhouse gases. To qualify, a project must be certified by the U.S. Treasury, which will consult with the U.S. DOE and consider a variety of factors including commercial viability, job creation, net impact on greenhouse gas emissions, newness of technology and project time completion. 
 &bull; Provides $16.8 billion for the Energy Efficiency and Renewable Energy Program, including $2.5 billion for applied research, development, demonstration and deployment activities to include $800 million for projects related to biomass. This particular area of funding also includes $300 million for the Alternative Fueled Vehicles Pilot Grant Program, which will be established under the U.S. DOE Clean Cities Program and will provide grants certain public or nonprofit entities for the purchase of alternative fueled vehicles, fuel cell vehicles or hybrid vehicles and the installation or acquisition of infrastructure necessary to support the vehicles. 
 &bull; Provides a total of $300 million to the Department of Defense for research, development, testing and evaluation, including pilot projects, demonstrations and energy efficient manufacturing enhancements. Funds are for improvements in energy generation and efficiency, transmission, regulation and storage and for use on military installations and within operational forces, to include research and development of energy for fuel cells, wind, solar, and other renewable energy sources to include biofuels and bioenergy. 
 &bull; Provides $4.5 billion for the Electrical Delivery and Energy Reliability program.
 &bull; Provides $150 million in budget authority for rural business loans and grants, which will support $3.01 billion in rural business loans and grants. Of this amount, $2.99 million is for guaranteed business and industry loans and $20 million is for rural business enterprise grants. 
 &bull; Provides $6 billion for the Innovative Technology Loan Guarantee program for the cost of guaranteed loans authorize by section 1705 of the Energy Policy Act of 2005. The loan program would provide loan guarantees for renewable technologies and transmission technologies. The $6 billion in appropriated funds is expected to support more than $60 billion in loans for these projects.
 &bull; Provides $15 million to the Department of the Interior Bureau of Land Management for wildland fire management. The funds should be used for high priority hazardous fuels reduction projects on federal lands. 
 &bull; $500 million to the Department of Agriculture Forest Service for Wildland Fire Management, including $250 million for hazardous fuels reduction, forest health protection, rehabilitation and hazard mitigation activities on federal lands. The bill allows the Forest Service to use up to $50 million to make competitive grants for the purpose of creating incentives for increased use of biomass from federal and non-federal forested lands. 
 
 PDFs of the <a href="http://www.house.gov/billtext/hr1_legtext_cr.pdf">conference report</a> and the <a href="http://www.house.gov/billtext/hr1_cr_jes.pdf">joint explanatory statement of the conference committee</a> are available on the U.S. House of Representatives Web site. Additional information and full text of the <a href="http://thomas.loc.gov/cgi-bin/bdquery/z?d111:h.r.00001:">American Recovery and Reinvestment Act of 2009</a> is available on the Library of Congress Web site. 

 
 Information on the tax provisions of this legislation was sourced from information provided by Stoel Rives LLP.

Stimulus bill includes renewable energy provisions

Web exclusive posted Feb. 23, 2009, at 4:02 p.m. CST 
 
 After years in the making, Josh Tickell's documentary <a href="http://www.thefuelfilm.com">"Fuel"</a> is on the big screen in select locations in southern California and Washington state, with debuts to follow in other states. 
 
 The feature-length documentary, which had the working title "Fields of Fuel," focuses on biodiesel and the desperate need for America to become more energy independent. It is now playing in Yakima, Wash.; Los Angeles; and Santa Monica, Calif. 
 
 On Feb. 20, "Fuel" opened in Irvine, Calif.; and Beverly Hills, Calif. On Feb. 21 it began playing in Bainbridge Island, Wash.. On Feb. 27 it will begin playing at a theater in Kihei, Hawaii; on March 13 in New York; and March 20 in Bellingham, Wash.
 
 The film, with a running time of 111 minutes, was produced over an 11-year time span. In 2008, it won the Sundance Film Festival's Audience Award for Best Documentary, in addition to several other awards. 
 
 During an appearance on the "The Tonight Show with Jay Leno" on Feb. 16, Tickell told Leno the impetus for the film came as a kid, growing up in Louisiana around oil refineries, watching people get sick. He said his own mother had nine miscarriages thought to be due to the pollution caused by the oil refinery that they lived next to. 

 
 In 1997, Tickell bought a diesel Winnebago, painted it with spray paint. Tickell told Leno the van looked like a Grateful Dead Mobile. He then collected waste vegetable oil from Kentucky Fried Chicken and Long John Silver restaurants. 
 
 Leno said to Tickell, "So I'm watching your movie and I say to myself, okay this is about biofuels, and biofuel really doesn't work anymore because then you're taking food off of people's plates to make gasoline, and that seems equally bad." Tickell responded: "So here I was driving around in this veggie van for 10 years, and I thought, oh no, we're potentially starving people. Not all biofuels are created equal," he added, then told Leno about sustainable crops for biofuel use, such as algae grown in the desert, and sewage. "In the U.S. we produce a trillion gallons of sewage a year," Tickell told Leno. 
 
 Tickell also discussed with Leno vertical crops, skyscrapers in which crops are grown on each floor, and how enough food could be grown in one of these urban "farms" to feed 50,000 people – all within a carbon footprint the size of one city block. 
 
 For more information on the film, "Fuel," visit <a href="http://thefuelfilm.com/">http://thefuelfilm.com/</a>. 
 To read a review of the film, visit <a href="http://bioconversion.blogspot.com/2009/02/fuel-is-galvanizing-vehicle.html">C. Scott Miller's BIOConversion Blog, "'Fuel' is a Galvanizing Vehicle."</a>

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Fuel film now playing in U.S. theaters

Web exclusive posted Feb. 23, 2009, at 4:43 p.m. CST 
 
 Nevada-based biodiesel producer and distributor <a href="http://www.rfuelcorp.com/ ">Renewable Fuel Corp. Inc.</a> recently announced the company is seeking off-take agreements for the purchase of biodiesel from producers in Malaysia. According to a Feb. 17 press release, RFC recently opened a new corporate operations office in Kuala Lumpur, Malaysia. The office will manage the operations of the company's biodiesel refineries and distribution facilities, as well as product sale from Malaysia biodiesel refiners. 

 
 According to Steve Braasch, RFC's vice president of marketing and investor relations, the company currently operates one biodiesel production facility located in Kuantan, Malaysia, with a production capacity of 200,000 metric tons per year (60 MMgy). 
 
 RFC is also in the process of developing two additional biodiesel production facilities and a jatropha plantation in Dumai, Indonesia. The engineering is complete on these new facilities, Braasch said. The company is currently in the bidding process for construction, which is expected to start soon. Once completed, the two facilities will have a combined production capacity of 180,000 metric tons per year (54 MMgy). 
 
 Braasch said the new facilities will utilize next-generation technology. While traditional biodiesel plants process feedstock through a transesterification process that produces biodiesel and glycerin, the two Dumai-based facilities will use a catalytic process that produces green biodiesel and propane. According to Braasch, the catalytic process also allows the facility to makes other products. "About 20 percent of the product that will come from those plants will be a green jet fuel," he said. 
 
 Currently, the biodiesel that RFC produces is used locally in Southeast Asia. Braasch said the company plans to begin importing biodiesel to the U.S. later this year.

Nevada-based producer expands Malaysia business

Web exclusive posted Feb. 25, 2009, at 10:44 a.m. CST 
 
 <a href="http://www.bayercropscience.com/">Bayer CropScience</a> and the <a href="http://www.ipk-gatersleben.de/Internet">German Leibniz Institute of Plant Genetics and Crop Plant Research (IPK)</a> recently announced the formation of a research agreement to develop modified, high-yielding canola hybrids. According to a press release issued by the two entities, Bayer CropScience's aim is to incorporate the innovations that are developed into its InVigor Canola seed business in North America and develop global oilseed rape products for markets with a high demand for healthy, high-quality oils. 

 
 Canola oil is used in the food industry and as a feedstock for biodiesel production. According to Bayer CropScience and IPK, the oil content of conventional canola is approximately 45 percent; however, the entities say there is potential to increase the oil content through plant biotechnology. 
 
 "This collaboration with a global company like Bayer CropScience demonstrates that our research is also attracting international attention outside the scientific community," said Andreas Graner, managing director of the IPK in Gatersleben, Germany. "The use of findings from basic research carried out at the IPK to breed improved agricultural crop plants is a major contribution towards safeguarding the food supply in the long term and providing renewable raw materials."
 
 Biodiesel Magazine's current plant list includes three biodiesel production facilities that exclusively use canola oil as a feedstock. These facilities include Inland Empire Oilseeds in Odessa, Wash.; Archer Daniels Midland Co. in Velva, N.D.; and LC Biofuels LLC in Richmond, Calif.

Bayer CropScience, IPK to develop canola hybrids

Web exclusive posted March 4, 2009, at 2:10 p.m. CST 
 
 Bionavitas, a Washington-based bioscience company specializing in algal applications, announced it has developed a technology which increases yields and reduces costs when growing algae for biofuel production. 
 
 Through its patent-pending Light Immersion Technology (LIT), Bionavitas has generated a system which brings light into open ponds and closed bioreactors through a system of light rods. 
 
 "The rods are one component of our LIT," said Michael Weaver, chief executive officer of Bionavitas. "Ultimately the exact shape of our "light pathways" may not be a rod, but another shape that is more optimized for algae growth. Regardless of the shape, the core of our technology is the idea of immersing the light source into the algae culture to increase density and overcome algae's shade layer," he said. 

 
 "For use in biofuels production we will utilize LIT in an outdoor canal system, by which we can take the free, abundant sunlight and redirect it through the rods deeper into the algae culture canals, thereby increasing the depth of algae growth from only the top three to five centimeters-which is currently possible through convention sunlight growth-to up to a meter in depth."
 
 Weaver said this approach produced a much higher yield per acre of land, thereby significantly decreasing the price of biofuels production to levels competitive with petroleum.
 
 Bionavitas has been researching algae since 2004, primarily in its labs in Redmond, Wash, according to Weaver. "Throughout our research process we have visited a wide variety of algae growth facilities and labs all over the world, to learn more about current approaches and obstacles for high volume growth, leading us to our innovative approach using Light Immersion Technology," he said. 
 
 Weaver said since 2005 the company has applied for patents in countries around the world, and are still in process with their respective patent offices. "For future plans, we currently are seeking a series A round of professional financing, which will allow us to build our first outdoor pilot plant for algae using our technology," he said. "Concurrently, we are utilizing our technology for other markets outside of biofuels, including heath products such as nutraceuticals and for bioremediation, such as cleaning up polluted water sources from heavy industry mining."

Bionavitas technology increases algae yields

Web exclusive posted March 4, 2009, at 11:16 a.m. CST
 
 A meeting held March 3 by the EU Anti-Dumping Committee could soon result in a decision to impose tariffs on U.S.-produced biodiesel, according to European Biodiesel Board Secretary General Raffaello Garofalo. "There are reasonable chances, reasonable signs, that an anti-subsidy, anti-dumping duty will be published in the next day," he said. It's up to the EU Commission to publish a definitive confirmation, but all indications are that tariffs of varying rates will be imposed on U.S. biodiesel beginning March 13. U.S. biodiesel companies will then be required to pay up to €41 (approximately $51) for every 100 kilograms of biodiesel exported to Europe.
 
 Garofalo told Biodiesel Magazine that the EBB initiated the anti-dumping duty conversation last year. "The fact that our case looks very close to being accepted proves that our complaint was well-grounded," he said. A tariff on U.S.-produced biodiesel will "finally re-establish the level playing field that our European producers have long awaited."
 

 The EBB claims that U.S. producers exported more than 1.5 million metric tons of biodiesel to Europe in 2008, up 40 percent from the previous year. A tariff on U.S. biodiesel could widely affect the industry. For now, U.S. producers are keeping a quiet eye on the happenings in Europe. A spokesman for Cargill Inc., which operates biodiesel production facilities in both the U.S. and Europe, said that Cargill believes any biodiesel trade disputes "should be resolved in a way that provides equity for all countries and all biofuels trade participants." U.S.-based biodiesel production giant Archer Daniels Midland Co. declined to comment for this story.
 
 Garofalo asserted that the EBB does not hold a grudge against U.S. biodiesel producers. "It's good if biodiesel is supported everywhere worldwide," he said. "But it should not be supported for exporting at dumping price to Europe. U.S. biofuels were flooding Europe and in some cases U.S. biodiesel was being sold in Europe at a lower price than the soybean oil itself. This is something that we do not accept. This [tariff] will put an end to an unacceptable situation."

EBB: Europe's tariff will level playing field

Web exclusive posted Feb. 25, 2009, at 2:40 p.m. CST 
 
 German oilseed and biodiesel promoter, Union for Promoting Oilseeds and Proteinplants (UFOP), is criticizing Indonesia's decision to drop its moratorium on palm oil production in peat areas and calling for stepped up efforts to certify sustainable biofuels.
 
 "UFOP demands that internationally agreed and accepted certification systems be established as quickly as possible to ensure, at least, by identifying the origin of raw materials, the production of biomass for conversion to biofuel does not add to the release of greenhouse gases in excess of what is normal," the UFOP said in a statement. "The decision of the Indonesian government confirms that the displacement effects can obviously not be controlled by certification systems. Therefore, talks between the EU and producing countries, such as Indonesia, on the use of land for the production of raw materials should start now."
 
 In protesting the Indonesia policy change, UFOP recalled the intense debate between the European Council and Parliament over the draining of peatlands prior to adopting the new Renewable Energy Directive. Peatland conversion is considered a prime source of carbon emissions, both in tropical regions where peatlands are drained for oil palm plantings and in Europe where peat soils are drained for farming.
 

 UFOP also called for the petroleum industry as the largest users of biodiesel for blending to recognize its responsibility to ensure only sustainably produced biomass is the basis for biodiesel or hydrogenated vegetable oils used in co-refining. "UFOP is convinced that it cannot be tolerated that raw materials are produced by sustainable methods meeting high ecological and social standards in the European Union whereas exporting countries such as Indonesia are systematically undermining these efforts already now," the promotional council said. "UFOP calls upon the petrol industry to give preference to indigenous or European Union produced biomass, such as rape seed, because this ensures that biofuels from sustainable biomass production are used."

German group protests Indonesian peatland policy

Web exclusive posted Feb. 25, 2009, at 10:49 a.m. CST 
 
 <a href="http://www.scottishbioenergy.co.uk/">Scottish Bioenergy Cooperative Ventures</a> has been awarded the £40,000 ($57,000) Climate Change Innovation Prize from <a href="http://www.shellspringboard.org">Royal Dutch Shell PLC's Shell Springboard</a> program. Based in St. Cyrus, Scotland, the company builds, sells and operates photobioreactors for capturing carbon dioxide emissions to grow algae feedstock for biodiesel production. 
 
 Scottish Bioenergy recently completed successfully testing a small-scale version of its photobioreactor at the Glenturret Distillery in Crieff, Scotland; the distillery was built in 1775 and the oldest working distillery in Scotland. Carbon dioxide from the distillery's boiler exhaust was captured and percolated through the photobioreactor. The system also eliminated chemicals and copper from the waste exhaust.
 
 "This is a fantastic endorsement of the project," said David Van Alstyne, managing director for Scottish Bioenergy. "The financial award means that we can push ahead immediately with construction of the full system. "
 
 The next phase of the project will be to build a photobioreactor at the distillery that's capable of converting 20 metric tons of carbon dioxide into 6,000 liters (1,600 gallons) of biodiesel per year, according to <a href="http://www.edringtongroup.com">The Edrington Group</a>, which is backing the Scottish Bioenergy venture. The final phase will be to build a commercial-scale photobioreactor, larger than what the Glenturret Distillery can accommodate, to produce more than 1.2 metric tons of biodiesel per day.

 
 "The U.K. has a large number of brewers and distillers who use heavy oil in the production of alcohol and who are seeking new methods to reduce their carbon dioxide output," Van Alstyne said. "One distiller burning over 200 tons of oil per day at a single facility equates to over 500 tons of carbon dioxide output. Our technology would reduce the carbon dioxide emissions whilst creating useful and sellable biodiesel."
 
 "The project not only has huge commercial potential, but could have a significant impact on the U.K.'s carbon emissions," said Sue Paterson, U.K. partner operated ventures manager for Shell.

Shell awards prize for algae-to-biodiesel process

Web exclusive posted Feb. 25, 2009, at 11:03 a.m. CST 
 
 As of Jan. 1, a new pricing regime for refined oil product went into effect in China – a break from the last decade of fuel price controls set by the National Development and Reform Commission. According to China Bio Energy Holdings Group, the new scheme aims to link domestic oil prices closer to the changes in global oil markets – in a "controlled manner," though. 
 
 China Bio Energy is a biodiesel producer and distributor, as well as a distributor of refined crude oil products like gas and diesel. In a Feb. 17 press release, the company reported that as a result of the new pricing scheme, the average sales price for its oil products decreased in January – from a 2008 average of $2.28 per gallon of gas and $2.62 per gallon of diesel, to $1.77 per gallon of gas and $2.04 per gallon of diesel. 
 
 "The recent decrease in oil prices has put downward pressure on the company's oil distribution and retail gas station revenues, but as a distributor the company maintains a stable margin," China Bio Energy stated in a press release. "Since biodiesel is sold at a similar price to regular diesel, overall biodiesel revenues are also impacted. However, it's important to note that the company's biodiesel profit margins have largely remained the same due to the decline in raw material prices. Waste cooking oil, which currently constitutes over 50 percent of the raw materials used by China Bio Energy, has dropped nearly 50 percent. … An important reason for this decrease is that many smaller biodiesel producers were forced to close recently due to their lack of distribution channels and economy of scale which prevents them to compete effectively." The company also noted its ability to process multiple feedstocks, giving it an advantage in buying more of the lower priced feedstocks at any given time. 
 
 According to China Bio Energy, it plans to soon add five to seven more retail gas stations, as well as expand its current biodiesel production capacity from 100,000 tons per year (approximately 30MMgy) to 150,000 tons per year (45MMgy) through acquisitions or new construction.

China Bio Energy reacts to Chinese market changes

Web exclusive posted Feb. 25, 2009, at 11:16 a.m. CST 
 

 <a href="http://www.newgenerationbiofuels.com/index.php">New Generation Biofuels Holdings Inc.</a> recently announced the company's renewable biofuel product will be evaluated at Baltimore-based Delta Chemical Corp. facility. 
 
 New Generation Biofuels' first production facility, which is also located in Baltimore, is expected to begin commercial operations within the week. The evaluation program at Delta Chemical's facility is expected to begin a few days later. 
 
 New Generation Biofuels' production facility will utilize the same feedstocks as a biodiesel manufacturing facility, but produce a different kind of biofuel. While biodiesel is manufactured through the transesterification process, New Generation Biofuels' produces a fuel using a blend process that creates an emulsion known as a bioemulsion. 
 
 The company's biofuel will be tested in Delta Chemical's Cleaver-Brooks boiler system. According to Phil Wallis, New Generation Biofuels' chief marketing officer, Delta Chemical's facility has been predominately powered by natural gas. "They have a backup Cleaver-Brooks boiler that they've decided to evaluate New Generation Biofuels' biofuel in. We cleaned out the existing #2 oil tank and switched over to New Generation Biofuels' biofuel and are ready to go," Wallis continued. The evaluation program has been designed to test the operability of the fuel. New Generation Biofuels will be collecting data that will be made available to other potential customers. 
 
 No specific time period has been set on the evaluation program at Delta Chemical, Wallis said. In addition to testing New Generation Biofuels' renewable fuel, the project will also serve as a showcase for the biofuel. Wallis said potential customers will have the opportunity to visit both the company's production facility and the boiler system at Delta Chemical's facility. 
 
 New Generation Biofuels has plans to conduct other evaluation programs as well. In March, Cleaver-Brooks Inc. plans to test the biofuel at one of their factories. A full range of operability tests will be conducted. In April, Taunton State Hospital in Massachusetts plans to begin a 12-month evaluation of the fuel. According to Wallis, the evaluation will involve the use of two Cleaver-Brooks boiler systems. One boiler system will be powered by B20, the other by New Generation Biofuels' fuel. This evaluation program will include a full range of emissions testing.

New Generation to test biofuel at chemical plant

Web exclusive posted Feb. 25, 2009, at 11:27 a.m. CST 
 
 <a href="http://www.globalalternativefuels.com ">Global Alternative Fuels LLC</a> in El Paso, Texas, is finalizing the engineering for a $12 million expansion that will increase its 5 MMgy biodiesel plant capacity to 15 MMgy. The company plans to break ground this spring, according to Carlos Guzmán, president and chief operating officer for the Global Alternative Fuels. "Our current infrastructure allows for a fast implementation schedule," Guzmán said. "We're shooting for the end of this year (to complete the expansion.)"

 
 Guzmán said the additional 10 MMgy production capacity is the first phase of a planned two-phased expansion. He said another 10 MMgy capacity will be added later, which will bring the plant up to 25 MMgy. The plant, which started producing biodiesel on Jan. 3, already needs to increase production to serve the market from El Paso west to Phoenix, Ariz., Guzmán said. "We have a buyer for every drop of fuel we make," he added. 
 
 The plant uses waterless modular biodiesel processing technology from <a href="http://www.greenlineindustries.com/">Greenline Industries</a>. "El Paso is in a desert area, so we chose Greenline's waterless biodiesel platform for our initial plant," Guzmán said. "Once we discovered that 5 million gallons would not be enough to meet demand in our area, we asked Greenline to add another 10 million gallons of capacity."
 
 "It's very exciting to us that Global Alternative Fuels is finding a hot market for biodiesel in the Southwest," said Donn Tice, chief executive officer of Greenline Industries.
 
 Global Alternative Fuels currently processes palm, soybean, cottonseed, and canola oils, along with yellow and brown greases and animal fats to produce biodiesel.
 
 For more information on Global Alternative Fuels, read the following stories: 
 <ul>	<li><a href="http://www.biodieselmagazine.com/article.jsp?article_id=2567 ">"NABD provides funding for Texas biodiesel project"</a></li>
 	<li><a href="http://www.biodieselmagazine.com/article.jsp?article_id=1613 ">"Waterless Washing Machine"</a></li></ul>

Global Alternative Fuels begins expansion

Web exclusive posted March 4, 2009, at 11:28 a.m. CST 
 
 On March 2, 111 of the nation's top scientists submitted a letter to California Gov. Arnold Schwarzenegger questioning the California Air Resources Board's plan to include an indirect land use change (iLUC) for biofuels, such as biodiesel and ethanol, under the state's intended Low Carbon Fuel Standard (LCFS). 
 
 In the letter, the scientists argued that the ability to predict alleged iLUC effects depends on the use of an economic model to predict worldwide carbon effects, the outcomes of which are unusually sensitive to the assumptions made by the researchers conducting the model runs. "In addition, this field of science is in its nascent stage, is controversial in much of the scientific community, and is only being enforced against biofuels in the proposed LCFS," the letter stated. 
 
 The scientists who signed the letter say they believe that the enforcement of any indirect effects – including iLUC – is highly premature. They base this belief on two principles. First, that science is far too limited and uncertain for regulatory enforcement. Second, indirect effects are often misunderstood and should not be enforced selectively. 
 
 The letter criticized the model used by CARB to measure iLUC. According to the scientists, the model is set to a static world economic condition and doesn't allow for shifts in policy, weather, world economic conditions or other economic, social or political variables. The model also assumes zero innovation in agricultural practices and other factors. "We are only in the very early stages of assessing and understanding the indirect, market-mediated effects of different fuels," the scientists said in the letter. "Indirect effects have never been enforced against any product in the world. California should not be setting a wide-reaching carbon regulation based on one set of assumptions with clear omissions relevant to the real world."
 
 Aside from the issue of whether these effects can be predicted with precision or accuracy, the scientists argue that indirect effects should not be enforced against only one fuel pathway. According to the letter, petroleum has a price-induced effect on a variety of markets, and electric cars will increase pressure on the grid. However, CARB is only proposing to enforce indirect effects against biofuels. "This proposal creates an asymmetry or bias in a regulation designed to create a level playing field," states the letter. "It violates the fundamental presumption that all fuels in a performance-based standard should be judged the same way."
 
 The letter ultimately recommended that CARB adopt a LCFS regulation based on direct carbon effects, while the state of California spearheads an international effort to investigate the carbon effects of all fuels. 

 
 The 111 scientists signing the letter don't represent the official views of their home institutions, universities, companies, the U.S. DOE, the USDA, or any National Laboratories. 
 
 CARB is expected to release a completed initial plan for the LCFS by March 6 and submit a final rule to the California Board in late April. On March 5, the U.S. EPA will hold a public hearing regarding the agency's reconsideration of California's request to implement the LCFS. Written comments will be accepted by EPA until April 6. 
 
 To view a complete copy of the letter submitted to Schwarzenegger, visit the <a href="http://www.arb.ca.gov/lists/lcfs-general-ws/28-phd_lcfs_mar09.pdf">CARB Web site</a>. More information on the EPA's public hearing can be found on the <a href="http://www.epa.gov/otaq/climate/ca-waiver.htm ">EPA's Web site</a>.

Scientists argue against indirect land use

Web exclusive posted Feb. 25, 2009, at 11:42 a.m. CST 

 
 The <a href="http://www.portlandonline.com/bds/">Bureau of Development Services</a> for the city of Portland, Ore., has awarded <a href="http://gorgeanalytical.com/">Gorge Analytical LLC</a>, a biodiesel testing laboratory in Hood River, Ore., the contract to sample and test B100 produced within the state or imported for blending with petroleum diesel to ensure the fuel meets applicable ASTM standards.
 
 According to the Bureau of Development Services, the fuel inspections are being conducted in accordance with <a href="http://www.biofuelsportland.com">Portland's renewable fuels standard</a>, which requires all transportation fuel sold within city limits to contain a blend of renewable fuel. Petroleum diesel is required to contain a B5 blend or greater and petroleum gasoline is required to contain an E10 blend or greater. The requirement for petroleum diesel will increase to B10 in 2010. The renewable fuel standard was enacted July 12, 2006, and went into effect July 1, 2007.
 
 Gorge Analytical's $40,000 fuel inspection contract began Jan. 6 and will expire June 30, 2011. The company will test and inspect Oregon-based facilities producing or bringing B100 into the state for use as blendstock. Gorge Analytical is a registered service provider through the <a href="http://www.nwbiofuels.org/ ">Northwest Biofuels Association</a> and the <a href="http://www.biodiesel.org/">National Biodiesel Board</a> and is a member of the <a href="http://www.astm.org/">American Society for Testing and Materials International</a>.

 
 The Bureau of Development Services has been charged with enforcing the renewable fuels standard. Violators could face fines of up to $5,000 for the first violation and up to $10,000 for subsequent violations. To date, no fines have been assessed, the bureau said.

Gorge Analytical inspecting Portland, Ore., biodiesel

Web exclusive posted Feb. 26, 2009, at 4:37 p.m. CST 
 
 High ranking U.S. policy officials, members of Congress and former government leaders attended a day-long event in Washington D.C. on Feb. 23 to create a list of principles key to energy policy reform. The National Clean Energy Project forum was organized by the <a href="http://www.americanprogressaction.org ">Center for American Progress Action Fund</a>, a progressive think-tank headed by former U.S. President Bill Clinton's former chief of staff, John Podesta.
 
 "Mapping the next steps to wire the U.S. for progress is what this day was all about," Podesta said. "Broad support for transmission and other infrastructure policies will enable businesses and government to make investments that create good jobs, boost economic growth, reduce energy use, and protect the Earth."
 
 Attendees at the forum included: former President Clinton; former Vice President Al Gore; Speaker of the House Nancy Pelosi, D-Calif.; Senate Majority Leader Harry Reid, D-Nev.; Senate Appropriations Subcommittee on Energy and Water Chairman Byron Dorgan, D-N.D.; and Secretary of Energy Steven Chu.
 
 As a result of the conference, the group has set forth four key principles deemed necessary in providing a framework for future energy policy. Included is a commitment to invest in new infrastructure to support domestically-produced alternative fuels, including biodiesel and ethanol.
 
 "Developing clean renewable energy is a matter of economic and national security," said Reid, who served as the event's honorary chair. "Many of the stakeholders who play a key role in this movement were in the room today including elected officials, cabinet members, and leaders in industry, labor and the environment. I look forward to our continued partnership to change our nation's energy policy in a way that creates jobs, protects consumers and the environment, and provides reliable power that meets our growing needs." 
 

 For a complete list of the conference member's energy policy principles, visit <a href="http://www.nationalenergyproject.org">www.nationalenergyproject.org</a>.

Key political players attend clean energy event

Web exclusive posted Feb. 27, 2009, at 11:17 a.m. CST 
 
 "It begins with energy." Those were the words of U.S. President Barack Obama during his Feb. 24 address to the joint session of Congress as he attempted to instill confidence that the country can recover from the current recession.
 
 Obama re-avowed his commitment to renewable energy by stating that energy is the first of three areas critical to the country's economic future. "To truly transform our economy, protect our security and save our planet from the ravages of climate change, we need to ultimately make clean, renewable energy the profitable kind of energy," he said. 
 
 Obama also called on Congress to draft carbon cap-and-trade legislation. Sen. Jim Inhofe, R-Okla., ranking minority member of the Senate's environment and public works committee blasted Obama's request for a cap-and-trade system and said it would result in the largest annual tax increase in the history of America. "As bad as the stimulus spending bill was, this would be much worse because instead of being one-time spending, the cap-and-trade tax increase would keep occurring year after year," he said. "During times of economic turmoil it is folly to impose more pain on families by intentionally raising their energy costs through cap and trade." 
 
 Senate Energy and Natural Resources Committee Chairman Sen. Jeff Bingaman, D-N.M., said he looks forward to working with the president in solving the country's economic problems as related to energy reform. Sen. Joe Lieberman, I-Conn., said the challenge of reviving the economy is directly related to a handful of issues, including energy independence. "I am committed to working with my colleagues in Congress to build bipartisan coalitions to make progress in all of these areas," he said.
 
 During his speech to Congress, Obama also declared that the government will invest $15 billion annually to develop renewable energy technologies, including advanced biofuels and fuel-efficient vehicles. "None of this will come without cost, nor will it be easy," he said. "But this is America. We don't do what's easy. We do what is necessary to move this country forward."
 
 A full transcript of Obama's remarks can be viewed at <a href="http://www.whitehouse.gov/the_press_office/Remarks-of-President-Barack-Obama-Address-to-Joint-Session-of-Congress/">http://www.whitehouse.gov/the_press_office/Remarks-of-President-Barack-Obama-Address-to-Joint-Session-of-Congress/</a>.

President directs Congress to focus on energy

Web exclusive posted Feb. 27, 2009, at 11:28 a.m. CST 

 
 The proposed U.S. government budget for fiscal year 2010 proposed by President Barack Obama contains an unprecedented spending total of $3.55 trillion, of which billions in new spending has been allocated for renewable fuels-related projects. 
 
 The following is a brief breakdown of proposed spending and budget cuts affecting the renewable fuels industry.
 
 U.S. EPA 
 Obama's budget increases funding for the U.S. EPA to $10.5 billion, a 34 percent increase from the 2009 level. Obama plans to spend some of the money to develop two energy-related programs: a comprehensive energy and climate change plan and an emissions reduction program. The energy and climate change plan would identify ways to invest in clean energy, address global climate change and create new "green" jobs. 
 
 The economy-wide emissions program, essentially a cap-and-trade program, would require a reduction of greenhouse gases (GHG) to approximately 14 percent below 2005 levels by 2020. Revenue created through the program would be used to fund investments in "a clean energy future," according to the budget outline. Revenue is expected to begin being generated in fiscal year 2012 and is projected to total $150 billion over 10 years.
 
 The EPA will also receive a $19 million increase in funding for work on GHG emission inventory and to work with industry sectors to report GHG emission data.
 
 USDA
 Estimated allocations for the USDA increased slightly from $24.6 billion in 2009 to $26 billion in 2010. Including in the agriculture department funding is $250 million in loans and grant money for renewable fuel projects. The budget outline states that Obama is a strong proponent of American-made renewable fuels and the additional money provided in the 2010 budget will help rural areas to continue to lead the country in this sector.
 

 Direct payments to farmers with sales revenues of more than $500,000 annually would be phased out over three years. According to the budget outline, "Large farmers are well positioned to replace those payments with alternate sources of income from emerging markets for environmental services, such as carbon sequestration, renewable energy production, and providing clean air, clean water and wildlife habitat."
 
 U.S. DOE
 Under the proposed budget, the DOE is allocated a total budget of $26.3 billion. Among its expected duties is the continued support for further research, development, demonstration and commercialization of biofuels and renewable energy by way of loan guarantees. Specific monetary totals were not supplied for the loan guarantee program. 
 
 A complete outline of Obama's proposed fiscal year 2010 budget can be viewed at <a href="http://www.omb.gov">www.omb.gov</a>.

President's budget includes renewable energy

Web exclusive posted March 2, 2009, at 9:16 a.m. CST 
 
 The Governors' Biofuels Coalition recently submitted a letter to U.S. President Barack Obama, asking him to provide national policy leadership and vision to capitalize on the possible biofuels opportunities. According to the GBC, the nation's biofuel industry is poised to provide the U.S. with immediate job growth, generate economic activity and prepare the nation for the next increase in world oil prices. 
 
 According to the letter, low oil prices and near saturation of the E10 blend market are weakening the foundation of the ethanol industry. "The impact of today's recession and these market conditions on the existing ethanol and biodiesel industries is great," the letter stated. "However, the real threat is to the future of biofuels - cellulosic, bio-oils, advanced biofuels. Declining private investors' support for biofuels projects, and the focus, resources, and talent needed to achieve an advanced biofuels future will be lost without a market for the fuels."
 
 The letter also stated that the vision of GBC for the next decade includes increasing the number of flexible-fuel vehicles, which would help eliminate the nation's dependence on high-carbon imported oil. The letter outlined five specific issues the GBC would like to see Obama address. These issues include:

 	<ul><li>Articulating a vision for the nation's biofuels future. According the GBC, misinformation has done a great disservice to the American people, and a continued, straight-forward message from the new administration on biofuels is necessary. </li>
 	<li>Establishing an interagency task force on lifecycle greenhouse gas emissions and transportation fuels. This task force would be led by the USDA, U.S. EPA, and U.S. DOE; it would be charged with helping to resolve the debate over the lifecycle greenhouse gas emissions of biofuels. </li>
 	<li>Initiating an immediate substantially similar ruling from the EPA on E13; this would immediately expand the market for domestically produced biofuels. </li>
 	<li>The creation of new policy options that continue to increase the sustainability of biofuels feedstock production. The GBC encourages Obama to task the USDA with leading an effort to improve sustainability in water efficiency, reduced fertilizer use, better tilling practices, protection of water quality and conservation of fish and wildlife habitat associated with the production of today's biofuels and tomorrow's advanced fuels. </li>
 	<li>The implementation of the nation's first comprehensive biofuel market development program. This includes removing E85 market barriers through policies that increase flex-fuel vehicle production and provide incentives for retail marketing efforts. </li></ul>
 "It is important that America keep its eye on the ball when it comes to biofuels," said North Dakota Gov. John Hoeven, who chairs the GBC. "We must continue to engage the public about the value of ethanol and biofuels. The governors involved in the broad-based GBC are uniquely positioned to provide leadership in this regard and speak directly to our citizens specifically about what biofuels can do for our states."

GBC submits policy recommendations to President Obama

Web exclusive posted March 4, 2009, at 9:44 a.m. CST 

 
 The U.S. EPA held a Webinar on Feb. 25 to explain its development of a Moderated Tracking System that will accurately and securely track renewable identification number (RIN) credits. 
 
 A RIN is a 38-character numeric code that's generated by the producer or importer of renewable fuel; it represents gallons of renewable fuel produced/imported and is assigned to batches of renewable fuel that are transferred (change of ownership) to others. RINs are valid for the calendar-generated, or the following year. 
 
 RINs currently apply to the ethanol industry; however beginning in 2010 RINS will also apply to the biodiesel industry. 
 
 The EPA is developing MTS to track the generation, distribution and sale of RINs as a way to help accurately enforce the mandates under the renewable fuels standard enacted in the Energy Independence & Security Act of 2007. The market-based renewable fuels registry RINSTAR has been working with the EPA to help develop a federal register through which all RIN transactions would flow to ensure accurate and honest reporting. 
 
 The EPA has determined that there is a need to moderate RIN transactions because there is a large volume of invalid RINs on the marketplace. In 15 months' time there were 27,000 rejected, invalid RINs, according to Clayton McMartin, president of Clean Fuels Clearinghouse and RINSTAR. "During that time, we have safeguarded our membership from hundreds of millions of invalid Gal-RINs," McMartin said. The EPA stated it won't play "matchmaker" in the market with RINs, but instead will act as an accounting mechanism to bring integrity to the market. 
 
 McMartin made an analogy between the federal banking system and MTS. When a check is cashed at a bank, unless the check is from the same bank it's being cashed at, it takes a couple of days for the check to clear while it's verified through the federal bank register. This is similar to how a federal RIN registry would work. While optimum circumstances would allow for "real-time" verification there will likely be a lag time of a few days. However, compared to the system now, where once a quarter the EPA receives RIN reports and post-auditing, there is a semblance of real-time to the MTS. 
 
 The MTS won't be enacted until the final RFS2 rule comes out, which isn't expected until Jan. 1, 2010, at the earliest. First there must be a proposed ruling set forth, followed by a comment period; after consideration of the comments a drafting and announcement of the final rule will be made. But when it does activate, EPA will no longer accept spreadsheets or RINs incorporated in invoices as a means to report RIN transactions. 
 
 There were some audio difficulties throughout the Webinar, which may result in a rebroadcast.

EPA rolls out RINs Moderated Tracking System

Web exclusive posted March 4, 2009, at 9:58 a.m. CST 

 
 Texas-based biodiesel production, marketing and distribution company <a href="http://www.earthbiofuels.com">Earth Biofuels Inc.</a> plans to change its name to Evolution Energy Inc. by the end of March. As well, the company recently announced it has appointed Douglas Faulkner, a former USDA official, to its advisory board.
 
 Faulkner served as Acting Under Secretary of Rural Development and Acting Assistant Secretary for Energy Efficiency and Renewable Energy at the USDA under President George W. Bush from 2001 to 2008. Faulkner has held positions in the Executive Branch for nearly 30 years and has experience on issues ranging from foreign policy to economic development. He recently cofounded and is president of <ahref="http://www.chrysalisnrg.com">Chrysalis Energy Partners</a>, a Washington D.C. consultant firm specializing in the renewable energy and energy efficiency markets.
 
 Earth Biofuels plans to utilize Faulkner and Chrysalis to aid in developing the company's tactics and strategy and to assist with working with federal agencies, specifically the <a href="http://www.usda.gov ">USDA</a>, the <a href="http://www.doe.gov ">U.S. DOE</a> and the <a href="http://www.epa.gov">U.S. EPA</a>.

 
 In addition to its new strategy plan, by the end of March Earth Biofuels plans to change its name to Evolution Energy Inc. A company spokesman told Biodiesel Magazine the name change is being made because "'Earth' is too all inclusive" for the company's plan. A press release will be issued by the company when the name change is made effective.

Earth Biofuels changes name, hires Falkner

Web exclusive posted March 4, 2009, at 10:14 a.m. CST 
 
 According to a Feb. 27 document filed with the U.S. Securities and Exchange Commission, Nova Biosource Fuels Inc.'s board of directors has authorized management to idle the company's Seneca, Ill.-based biodiesel plant and suspend plans to restart its Clinton, Iowa-based biodiesel refinery. 
 
 In accordance, management has begun to reduce the company's workforce at these locations. According to the SEC filing, the company intends to continue operating the Seneca refinery until on-hand feedstocks and consumables have been processed, after which the refinery is expected to be idled. 
 
 According to the filing, these actions are the result of an unexpected Feb. 22 breakdown in negotiations with a working capital financing source and the inability to obtain financing from other sources, and as a result, the refineries lack sufficient working capital to continue operations. 
 
 Nova Biosource Fuels is considering restructuring operations and is in discussions with WestLB AG, the project lender for the Seneca refinery. The filing was signed by Jay Fillman, Nova Biosource Fuels' chief financial officer. 
 
 According to a Feb. 17 SEC filing, WestLB agreed to waive the requirement of Nova Biofuels Seneca to make its scheduled principal and interest payments originally due on Feb. 17; the new filing date was March 3. 

 
 On Jan 28, Nova Biosource Fuels filed its annual report with the SEC. According to the report, Nova Biosource Fuels currently owns and operates three biodiesel refineries: the 60 MMgy Seneca facility, the 10 MMgy Clinton County refinery, and a biodiesel refinery in Butte, Mont., which is used primarily for research, development and technology demonstration purposes.
 
 The Seneca facility began operations in March 2008. The Clinton County refinery began operations in May 2006, and was purchased by Nova Biosource Fuels in September 2007. In late September 2008, a fire broke out in the Clinton County facility's primary methanol recovery column. According to the company's annual report, repairs to the Clinton County facility are complete. The plant was expected to restart operations in late January or early February. 
 
 Nova Biosource Fuels also recently announced that the company has received notice from NYSE Alternext US LLC, formerly known as the American Stock Exchange, that it's not in compliance with Section 1003(a)(iv) of the NYSE Alternext US LLC Company Guide. This means the company's financial condition has become so impaired that the Exchange questions the company's ability to continue operations and/or meets its obligations as they mature. 
 
 In order maintain its exchange listing, Nova Biosource Fuels must submit a plan of compliance by March 30, advising the Exchange on how the company intends to regain compliance by Aug. 27. If the plan is accepted, Nova Biosource Fuels may be able to continue its listing during the plan period up to Aug. 11, during which time it would be subject to periodic review. If a plan is not submitted or the company submits a plan that's not accepted or a plan is accepted but the company is not in compliance with the continued listing standards at the conclusion of the plan period, or does not make progress consistent with the plan, Nova Biosource Fuels may become subject to delisting proceedings. 
 
 Furthermore, the Exchange also notified Nova Biosource Fuels that the company's common stock has been trading below $0.25 per share since Oct. 22, 2008. On Feb. 26 the common stock price closed at $0.06. As a result of this low selling price, the company's common stock may not be suitable for auction market trading. The Exchange notified Nova Biosource Fuels that it deems it appropriate for the company to affect a reverse stock split to address its low selling price. If this is not completed in a reasonable amount of time, the Exchange may consider suspending dealing in, or removing the company's common stock from the list. 
 
 <a href="http://idea.sec.gov/cgi-bin/browse-idea?company=Nova+Biosource+Fuels&match=&CIK=&filenum=&State=&Country=&SIC=&owner=exclude&Find=Find+Companies&action=getcompany">Click here to view Nova Biosource Fuels' full SEC filings.</a>

Nova Biosource Fuels to idle biodiesel plants

Web exclusive posted March 4, 2009, at 10:26 a.m. CST 
 
 Houston-based race fuel supplier <a href="http://www.hyperfuels.com ">Hyperfuels</a> has recently been selected to provide biodiesel-blended fuel for Volkswagen's 2009 Jetta TDI Cup race season. Volkswagen's race cars will be fueled with a synthetic B5 sold by Hyperfuels as "SynDiesel."

 
 Jess Hewitt is chief executive officer of Hyperfuels' parent company Gulf Hydrocarbon, a biodiesel marketing firm. Hewitt is also a board member and marketing chairman for the National Biodiesel Board, president of the Biodiesel Coalition of Texas and a former race car driver. "Coming on as a fuel sponsor on the heels of the clean diesel technology announcement by Volkswagen in 2008 makes this a great honor," he said. "If we can help take biodiesel power to the next level then everyone wins."
 
 This is the first year Volkswagen will use biodiesel in its racing cars. <a href="http://www.vw.com ">Volkswagen of America Inc.</a> Motorsport Manager Clark Campbell said B5 has now been fully approved for all of the company's TDI-powered vehicles. "The addition of SynDiesel B5 biodiesel in the Jetta TDI Cup race cars further demonstrates the feasibility of biodiesel as an alternative fuel source for American consumers," he added.
 
 The only modifications made to Jetta TCI Cup cars from stock are the additions of race suspension and brakes. Volkswagen Jetta TDI Cup cars are expected to consume two tanks of B5 during each race this season, which begins April 25 at Virginia International Raceway in Alton, Va. In addition to the approximately $21,000 worth of fuel being supplied for the race cars, Hyperfuels is also providing BioTrucker fuel cards to racing teams on behalf of the NBB so that all transport teams can also fuel their vehicles with biodiesel for the 2009 season.
 
 The TDI Cup racing schedule and a complete driver list can be viewed at <a href="http://www.vw.com">www.vw.com</a>. For more information on BioTrucker fuel cards, visit <a href="http://www.biotrucker.com">www.biotrucker.com</a>.

Qualifying races for the Jetta TDI Cup series were held in Sonoma, Calif. Left to right: Jess Hewitt, chief executive officer, Gulf Hydrocarbon; Ed Hegland, chairman, National Biodiesel Board; and Steve Keys, public relations director, Volkswagen./PH

March 2009

Business Briefs

Business Briefs

Columns

2009 Letters From Leadership

Coffee Drinkers, Perk Up

letter to the editor

Animal Fat-Based Biodiesel: Explore Its Untapped Potential

Featured

Synthesizing Multiple Feedstocks Into Quality B100

Glycerin: Research Turns Up New Uses

Wake Up and Smell the Coffee Biodiesel

March 2009.css-7jxktu{position:absolute;bottom:0px;left:0px;right:0px;height:3px;border-radius:3px;background-color:var(--chakra-colors-brandBlack);}

Business Briefs

Business Briefs

Columns

2009 Letters From Leadership

Coffee Drinkers, Perk Up

letter to the editor

Animal Fat-Based Biodiesel: Explore Its Untapped Potential

Featured

Synthesizing Multiple Feedstocks Into Quality B100

Glycerin: Research Turns Up New Uses

Wake Up and Smell the Coffee Biodiesel

March 2009