I usually avoid talking about politics in order to avoid the debate that inevitably follows. It's not that I don't have an opinion, but I like to keep an open mind about republicans and democrats, right and left, conservatives and liberals. I honestly don't know which category I belong in, so I've been content in simply observing from a distance. However, 
 
 today I find myself thinking about politics.
 
 I've been watching President Barack Obama's speeches with interest (I believe he is a better public speaker than George W. Bush), waiting for him to say something profound about renewable energy. So far, he's only mentioned biofuels in general, and it appears energy independence has taken a backseat to the global economy and the war in Iraq, perhaps rightfully so.

 
 However, the importance of politics, or more so policy, has not taken a backseat within the biodiesel industry. Once again, it was a major focus of this year's National Biodiesel Conference in San Francisco, an event that Senior Staff Writer Ron Kotrba details in a feature beginning on page 40. In fact, an entire educational track was dedicated to policy and regulations, including climate change, European exports, tax incentives and the renewable fuels standard. It will continue to be one of the National Biodiesel Board's 2009 priorities.
 
 Obama won't be directly forming this country's biodiesel policy, of course. Those tasks will be handled by his carefully chosen administration, including Secretary of Agriculture Tom Vilsack and Secretary of Energy Steven Chu. The administration's energy strategy and key players are highlighted in a feature by Staff Writer Erin Voegele that begins on page 48. 
 
 Voegele has also been diligently reading through the American Recovery and Reinvestment Act of 2009, more commonly known as the stimulus bill, which Obama signed on Feb. 17. Details from the package continue to surface (check out the Web exclusives on the Biodiesel Magazine Web site), but so far the language appears to focus mostly on biofuels and biomass, which could include algae and other biodiesel feedstocks. Legislators kept the initial terminology vague with the idea that it would be clarified later, and this all-encompassing strategy allows them to avoid adding new terms down the road. Still, I'd say it's likely that this legislation will impact the biodiesel industry in a positive way.
 
 When I think more about biodiesel and politics, I realize that there shouldn't be much debate. Regardless of one's political persuasion, all should agree that energy independence is a priority. Sure, some may disagree on how the policies should be implemented, how much they should cost and who should pay for them … but hey, look at that, I appear to have reached the end of this column.
 
 Jessica Sobolik
 Managing Editor
 <a href="mailto:Jessica Sobolik">jsobolik@bbiinternational.com</a>

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Politics: Not Everyone Sees Eye to Eye

U.S. soybean production for 2008 totaled 2.96 billion bushels, up 11 percent from 2007, according to the USDA crop production summary issued in January. The average yield per acre was estimated at 39.6 bushels, 2.1 bushels below the previous year's average yield. The harvested area for soybeans was up 16 percent from 2007 to a record 74.6 million acres. The USDA was scheduled to release its prospective plantings report March 31.

The harvested area for soybeans reached a record 74.6 million acres in 2008.

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Harvested soybean acres break record

N.W. Seed Crushers Inc. is considering locating a crush facility in Josephine County, Ore., "for research purposes," according to County Recorder Angel Osipovich. County commissioners recently approved giving $85,000 to the county soil and water department for distribution to farmers interested in planting camelina or canola on unused lands. 
 
 Currently, canola and camelina farmers in Josephine County must transport seeds 200 miles for crushing. 
 
 Meanwhile, a canola crush plant in Northwood, N.D., temporarily halted activity due to poor market conditions. Northwood Mills' maximum crush capacity is 250 tons of seed per day, equaling 8 MMgy of oil. Geoff Bengtson said demand from the food sector is down 20 percent, and the biodiesel plants it was selling oil to have scaled back production or idled.

One crush plant advances as another halts production

The U.K.'s Renewable Fuels Agency recently announced that only 20 percent of the biofuel supplied to U.K. fuel stations in the first six months of the Renewable Transport Fuel Obligation met environmental sustainability standards. The government's target is 30 percent. ConocoPhillips Co., Greenergy International Ltd. and Mabanaft Ltd. are three companies that surpassed the government's sustainability targets during that time. According to the Renewable Fuels Agency, Chevron Corp., Esso, Murco Ltd., Prax Petroleum and Topaz had so far failed to supply any fuel meeting sustainability standards, with Prax and Topaz failing to report any data on the origins of their biofuel. 

 
 The Renewable Fuels Agency, a government nondepartmental public body, is the U.K.'s independent sustainable fuels regulator. Its Communications Director Chris Malins stressed that these reports are based on unverified preliminary data and are subject to change. The final verified figures will be published in a report issued to parliament in January 2010.

UK misses sustainability targets for biofuel

AMES, Iowa (April 14, 2009) - Renewable Energy Group®, the nation's leading biodiesel manufacturer and marketer, today announced Daniel J. Oh, Chief Operating Officer, will transition into the role of President and Chief Operating Officer.
 
 With the announcement, Oh oversees biodiesel manufacturing, sales and marketing, procurement and risk management, production operations and technology services, in addition to alternative feedstock research and commercialization, and corporate development programs for Renewable Energy Group's growing domestic biodiesel business.
 
 Oh takes the reins from Nile Ramsbottom, who has served as Renewable Energy Group's president since the company's incorporation in 2006. Ramsbottom's leadership helped launch REG as a premier producer and marketer of high quality biodiesel. In the nine years Ramsbottom has served at REG and its predecessor West Central Cooperative, the company's biodiesel business has grown from a 1 million gallon-per-year batch plant to a network with the more than 300 million gallons of annual production capacity. Ramsbottom has agreed to forgo full retirement to help strengthen REG's global presence. The new global sales position will be based in St. Louis.

 
 Of the transition Renewable Energy Group Chairman and CEO Jeffrey Stroburg said: "Our board of directors appreciates Ramsbottom's willingness to continue in this new and critical role as he shifts from his position as REG's president and prepares for a personal and professional transition after his 65th birthday in May. In this new position, Ramsbottom will continue pursuing relationships and business with national and international biodiesel customers and large feedstock producers."
 
 Jeffrey Stroburg remains Chairman of the Board and Chief Executive Officer, while Jeff Pattison remains Chief Financial Officer. Renewable Energy Group leads the biodiesel industry by offering a complete biodiesel solution. Renewable Energy Group markets a biodiesel product lineup - REG-9000TM biodiesel, which exceeds ASTM quality specifications - through existing nationwide diesel infrastructure. REG-9000 biodiesel is produced by REG network production facilities consisting of state-of-the-art, proprietary multiple feedstock technology. 
 
 ###
 
 For more information, please contact Alicia Clancy at 515-239-8118, (C) 515-450-9692 or <a href="alicia.clancy@regfuel.com">alicia.clancy@regfuel.com</a>

Daniel J. Oh named President and CEO of Renewable Energy Group

Oh Replaces Ramsbottom as R.E.G. President

Kokomo, Ind., a city of 50,000 people, is producing biodiesel using a processor recently installed at its wastewater treatment plant. City officials began processing waste vegetable oil (WVO) collected from participating restaurants and residents into what will total approximately 1,500 gallons of biodiesel each month, building up to 20 percent of the city's diesel usage, or approximately 30,000 gallons of biodiesel per year over the next 18 months. The city will be collecting data on its oil collection and biodiesel production, including vehicle performance, to share as the program continues. "Our hopes are to grow this, bring in partners and expand to help other cities," explained David Galvin, Kokomo's sustainability manager. He said the city would eventually like to develop a home heating fuel program for low-income families, as well. "We make the biodiesel for about 80 cents a gallon, and we could distribute to low-income residents using some sort of criteria to help with their heating bills," he said. In the second phase of the city's renewable energy effort, it will look at incorporating glycerin with other municipal waste streams for additional bioenergy applications.

Indiana city turns WVO into biodiesel

Biodiesel producer and marketer Renewable Energy Group Inc. opened two biodiesel terminals recently in Seabrook, Texas, and Alamosa, Colo. REG built a biodiesel truck-loading terminal adjacent to its 35 MMgy production facility in Seabrook. The terminal will offer B99 and B100. According to REG spokeswoman Alicia Clancy, it's one of the first truck-loading facilities in the Houston area. "Petroleum distributors, and public and private fleets, from within the greater Houston area and into the San Antonio area now have access to high-quality biodiesel," she said. "The REG Houston facility also has rail access offering larger volumes of high-quality fuel to customers beyond the state of Texas." 
 
 REG's biodiesel blending terminal in Alamosa is the second to open in the Rocky Mountain region, behind the company's terminal in Ogden, Utah, which opened in November. Blends of B2 through B99 are offered at the 20,000-gallon terminal in Alamosa. REG partnered with petroleum company and biodiesel marketer Alta Fuels LLC to help facilitate the marketing efforts of its branded REG-9000 at the site. The company expected business to pick up throughout the year, according to Director of Marketing Jon Scharingson. "Interestingly, we expect to see ski resort equipment, and national parks and forest vehicles, create demand for biodiesel in this region as [those sectors] look to improve their carbon footprints," he said.

REG offers short- and long-term contracts for its REG-9000 biodiesel at its new terminal in Houston./PHOTO: RENEWABLE ENERGY GROUP INC.

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REG opens Texas, Colorado terminals

Wal-Mart Stores Inc. recently announced it's looking into the use of biodiesel for its fleets. The company will test the use of two different kinds of commercial hybrid trucks and two kinds of alternatively fueled trucks in an effort to develop a more sustainable trucking fleet. As part of this testing, 15 trucks at the company's distribution facility in Buckeye, Ariz., will be converted to run on a fuel that has been trademarked Reclaimed Grease Fuel, which is manufactured from waste brown grease obtained from Wal-Mart stores. The remaining trucks at the Buckeye distribution center will operate on a B20 blend of biodiesel made from reclaimed yellow grease.
 
 Various cities in Canada have begun using biodiesel in their fleets. Six city-based showcase programs have been implemented with the purpose of demonstrating innovative approaches to reducing greenhouse gas emissions. Most recently, Minister of State Steven Fletcher announced the opening of a new WinSmart biodiesel fueling station in Winnipeg, Manitoba. The station will supply Winnipeg's municipal fleet with B10. The Canadian government, the province of Manitoba and the city of Winnipeg invested in the project. 
 
 Winnipeg's WinSmart showcase is designed to increase energy efficiency and reduce greenhouse gas emissions along the most heavily trafficked areas of the city. The showcase includes 10 initiatives, one of which is the construction of the WinSmart biodiesel fueling station.

Wal-Mart considers fleet program, while Winnipeg implements one

Bio-Venta Ltd., an €85 million ($110 million), 30 MMgy biodiesel plant in Ventspils, Latvia, began production in late January, according to Graz, Austria-based design company BioDiesel International AG. Bio-Venta's rapeseed-oil-based, EN 14214-certified biodiesel is mainly produced for Statoil ASA of Norway. The plant has on-site crop storage and an oilseed press. 
 
 Meanwhile, Petrotec AG, a 50 MMgy German biodiesel producer, announced in late January that it had temporarily halted production, citing unfavorable markets.

A ribbon-cutting ceremony marked the official opening of Bio-Venta Ltd., a 30 MMgy biodiesel plant in Ventspils, Latvia./PHOTO: BIODIESEL INTERNATIONAL AG.

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European biodiesel plant comes on line as another shuts down

The results of Canada's largest cold-weather performance study of biodiesel and renewable diesel blends are in, and the final report confirms the operability of low-level blends in a range of climatic conditions. 
 
 The Alberta Renewable Diesel Demonstration, managed by Climate Change Central, was performed over a period of 10 months in Alberta. The province was selected as representative of the country's harsher climates. 
 
 The demonstration involved the construction and commissioning of a temporary commercial fuel blending facility at Shell Canada's Sherwood Marketing Terminal in Edmonton, Alberta, in December 2007. According to Climate Change Central, the facility was designed to allow rack loading of 2 percent and 5 percent renewable fuel blends consisting of two different types of renewable fuel-fatty acid methyl ester (FAME) biodiesel and hydrogenated renewable diesel (HDRD). 
 
 All the fuels blended at the terminal met Canadian General Standards Board specifications for quality and cold weather performance, including cloud points for the Edmonton, Lloydminster and Calgary areas, where the fuels were dispensed. 	
 

 In the on-road portion of the study, which followed laboratory blending tests, 2 percent blends of FAME and HDRD were tested during the winter months (Dec. 16, 2007-April 15, 2008) in a fleet of 59 vehicle models of 2002 or newer. Only canola-based methyl ester was used as the blending stock in the winter, while in the spring and summer months (April 16-Sept. 30, 2008), a blend of 75 percent canola-based and 25 percent tallow-based methyl ester was used to make up a 5 percent blend. A control group of 16 vehicles, which used unblended ultra-low-sulfur diesel (ULSD), were monitored for comparison. 
 
 Vehicles participating in the study included Class 8 transport trucks with and without exhaust aftertreatment technologies, school buses, delivery trucks, and heavy-duty oilfield service vehicles. 
 
 Demonstration data showed there was no meaningful difference in fuel mileage among FAME and HDRD blends, and ULSD in winter or summer seasons.
 
 During the winter months, aside from one early filter change, no fleets reported any fuel-related loss of service or mechanical operability challenge, even when temperatures reached -40 degrees Celsius (-40 Fahrenheit). In the summer months, none of the fleets reported any need to change their maintenance schedules or to make any unscheduled fuel filter changes.
 
 The results obtained during the demonstration will be documented in response to the government of Canada's notice of intent to implement a renewable fuels standard, which was published in 2006. 
 
 Over the span of the demonstration, 245,000 liters (65,000 gallons) of B2 FAME and 400,000 liters (106,000 gallons) of 2 percent HDRD were dispensed during the winter period, while 540,000 liters (143,000 gallons) of B5 FAME and 425,000 liters (112,000 gallons) of 5 percent HDRD were dispensed in the spring/summer period. Total fuel use exceeded 1.6 million liters (423,000 gallons).

Downstream handling of biodiesel blends (from the rack or terminal to the card locks) was done using standard trucks, tanks and dispensing infrastructure./PHOTO: ALBERTA RENEWABLE DIESEL DEMONSTRATION

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Alberta Renewable Diesel Demonstration publishes final report

Algae research will get a big boost from two projects involving multiple partners that received funding this winter through the U.S. Department of Defense's Defense Advanced Research Projects Agency. DARPA's BioFuels program is exploring energy alternatives and fuel efficiency efforts in a bid to reduce the military's reliance on traditional fuel through cost-effective alternatives.
 
 Two experienced defense contractors, both based in San Diego, are leading the separate projects. General Atomics will lead a team of 18 university and industrial partners in a three-year project supported by a $43 million DARPA contract. Science Applications International Corp. received a $25 million contract for all phases of an algae development program involving industrial and academic organizations from Georgia, Florida, Hawaii and Texas. Both projects aim to develop a scalable process for the cost-effective, large-scale production of algae oil to be processed into a JP-8 jet fuel surrogate. 
 
 General Atomics said its project will examine all aspects of algae-to-jet-fuel production with the goal of making algae-based jet fuel an affordable, reliable, long-term option for the Department of Defense. This will involve identifying key cost drivers, and investigating multiple approaches to increasing productivity and reducing operating and capital costs. The program will address algae selection and growth; water, carbon dioxide and nutrient supply; algae harvesting; oil extraction; and conversion to JP-8. The contract will conclude with a pre-pilot-scale demonstration.
 
 The advanced technologies group at General Atomics will handle the project. Besides working on technologies to convert algae into fuel, the group has worked on technologies to convert plastic wastes, trash and biomass into power. General Atomics has examined a wide range of energy and advanced technologies for industry and defense, including nuclear energy, laser, electromagnetic power and unmanned aerial vehicles, among others.

 
 Science Applications International's team is targeting a $3-per-gallon cost for algae-derived JP-8 jet fuel in its work covering the same range of research topics as General Atomics, from algae strain selection though conversion, triglyceride purification and economic modeling. Its work on the contract will occur in two phases. Phase 1 will concentrate on technology selection and development, pilot plant site analyses, system integration, and economic modeling and analysis, culminating in lab-scale production capability, a preliminary production facility design and the delivery of samples for testing. The company will also develop detailed commercialization and qualification plans showing a path to commercial and military systems viability. Phase 2 will focus on the final design, integration and operation of a pre-pilot-scale production facility.
 
 Science Applications International is a scientific, engineering and technology applications company working in national security, energy and the environment, critical infrastructure, and health arenas for the Department of Defense, other government agencies and selected commercial markets.

DARPA funds collaborative algae research

Biodiesel and biodiesel feedstocks continue to garner interest from the aerospace industry. Carlsbad, Calif.-based Flometrics Inc. recently tested B100 in a RocketDyne LR-101 rocket engine, and Japan Airlines completed a test flight using fuel that contained camelina, jatropha and algae oils. Meanwhile, Grand Forks, N.D.-based Sunrise Renewables Inc. has obtained a license for a patented thermal-cracking technology from the University of North Dakota, which can convert vegetable oils to aviation fuel, other fuels, chemicals and polymers.
 
 In the rocket engine test, Flometrics found the performance of biodiesel to be within 4 percent of RP-1 kerosene rocket fuel, according to Chief Executive Officer Steve Harrington. 
 
 He said the most important aspect of rocket fuel is fuel economy. "With rockets, most of the weight you're lifting when you're trying to get into orbit is the fuel, and the biodiesel was about 4 percent lower than the RP-1 that the U.S. Air Force uses, so it's pretty close," he said. Further testing may involve changing the oxygen-biodiesel mixture ratio during the burn. "Biodiesel has oxygen in it, and normal kerosene doesn't," he said. "We might be able to get slightly better performance [from the biodiesel]." 
 
 Even if the specific impulse of biodiesel is slightly less than RP-1, the renewable fuel might prove to be a viable rocket fuel for the aerospace industry because it's denser. Harrington said knowing which feedstocks produce the densest biodiesel would help to determine the most efficient feedstock for producing biodiesel for rocket fuel. 
 
 Flowmetrics' initial rocket engine test burn lasted approximately six seconds and consumed approximately three gallons of biodiesel, "just long enough to see what the performance was, and then we shut it down," Harrington said. The company planned to test-launch the biodiesel-powered rocket in the Mojave Desert in California on March 7. He said three gallons of biodiesel would carry the rocket-which is 20 feet tall, one foot in diameter and 150 pounds-to 23,000 feet. The engine was expected to run out of fuel at 10,000 feet.
 
 Meanwhile, the airline industry continues to test biofuels. During a demonstration flight Jan. 30, Japan Airlines used a 50 percent mixture of camelina, jatropha and algae oils with 50 percent kerosene-based Jet-A fuel in a Boeing 747-300 aircraft. The renewable blend powered one of the plane's four Pratt & Whitney JT9D engines during a 90-minute roundtrip flight from the Haneda Airport in Tokyo. During the flight, tests were conducted on the engine's performance during normal and nonstandard flight operations, which included quick accelerations and decelerations, as well as engine shutdown and restart. Data from the flight will be analyzed by Japan Airlines, Boeing Co. and Pratt & Whitney. 
 

 More specifically, the biofuel portion of the mixture was 84 percent camelina, 16 percent jatropha and less than 1 percent algae oil. The camelina oil was provided by Sustainable Oils Inc., a joint venture between Seattle-based agricultural bioscience company Targeted Growth Inc. and Houston-based biofuel producer Green Earth Fuels LLC. The jatropha oil was supplied by India-based Terasol Energy, and the algae oil was provided by San Diego-based Sapphire Energy. 
 
 The biofuel was produced by Nikki-Universal Co. Ltd., a joint venture between Des Plaines, Ill.-based UOP LLC and Japan-based JGC Corp., using a proprietary hydro-processing technology. Lab tests by Boeing, Co., UOP and several independent laboratories verified that the biofuel satisfied the industry's criteria for jet fuel performance. 
 
 In the realm of research and development, Sunrise Renewables' biofuel produced with its thermal-cracking technology has been tested by the Air Force Research Laboratory at Wright-Patterson Air Force Base in Ohio to confirm that the fuel meets military specifications for JP-8 aviation fuel. The U.S. Air Force has requested 200,000 gallons of the fuel for flight testing, so the fuel can be fully certified for military use.
 
 To meet this request, Sunrise Renewables is developing a pilot-scale facility at UND to produce 800,000 gallons of the fuel per year. Then the company plans to build an 8 MMgy demonstration-scale facility. It also plans to use the technology to produce a biofuel equivalent to Jet-A commercial aviation fuel, biodiesel, a cold-flow improvement additive for biodiesel and a product dubbed JB100, a jet turbine fuel that can achieve burn stability at -58 degrees Fahrenheit.
 
 Sunrise Renewables spun out of the Sustainable Energy Research Initiative and Supporting Education program, known as SUNRISE, which involves students and faculty from UND, North Dakota State University, Mayville State University and the North Dakota State College of Science. The SUNRISE program has also been working with biodiesel production equipment manufacturer Crown Iron Works Inc. in Roseville, Minn., to help with the detailed engineering of its process technology.

Flometrics Inc. planned to test-launch this biodiesel-powered rocket in the Mojave Desert in California on March 7./PHOTO: FLOMETRICS INC.

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Before its test launch scheduled for March 7, Flowmetrics tested B100 in a RocketDyne LR-101 rocket engine. The rocket, which had no shell, was not released./PHOTO: FLOMETRICS INC.

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Aerospace industry continues biodiesel-related testing

According to information recently released by global research and consulting company Frost & Sullivan, biodiesel producers in Australia are operating at well-below capacity. 
 
 Research conducted by the organization found that only 60,000 metric tons (19 million gallons) of biodiesel were produced in Australia during 2008, although the continent has the capacity to produce 485,000 metric tons (152 million gallons) annually. 
 
 The data was included in a new report, titled "Strategic Analysis for the Australian Biodiesel Industry," offered by Frost & Sullivan's Chemical and Materials Growth Partnership Service program. 
 
 The research concluded that an unfavorable tax regime and rising feedstock prices have dissolved the Australian industry's potential, and direct government intervention is needed in order to spur expansion. According to Frost & Sullivan, this intervention could be accomplished through the formation of biofuel mandates or tax breaks. 

 
 Although traditional biodiesel production in Australia may be stalled, entities are working to commercialize second-generation, algae-based production technologies. In southern Australia, the Algal Fuels Consortium's Microalgal Research Alliance-formed by members of the South Australian Research and Development Institute, Flinders University, the Commonwealth Scientific and Industrial Research Organization, Flinders Partners, and Sancon Recycling Pty Ltd.-is constructing a pilot-scale algae-oil production facility on Torrens Island. 
 
 The project received a $1.2 million Premier's Science and Research Fund grant in late December, with co-investment from industry partners Sancon and United Water International. 
 
 According to Grace Taylor, marketing and communication manager for the South Australian Research and Development Institute, the Algal Fuels Consortium, with SARDI as the lead agency, applied for an additional biofuels grant in January. 
 
 The Torrens Island facility will span approximately 10 hectares (24.7 acres) and include several raceway ponds. Smaller ponds will be used for inoculation and initial species screening. Water for the facility will come from the Port River estuary, and carbon dioxide will be obtained from the flue gas of a diesel generator. Taylor said the algal production systems will be designed by SARDI and utilize the Commonwealth Scientific and Industrial Research Organization's computation fluid dynamic for hydrodynamic modeling. The biorefinery components of the facility will be designed by Flinders University. 
 
 Taylor said the project will be developed in three phases. A proof-of-concept facility will be operational by late 2009. A pilot plant will be built in two stages, with the smaller ponds being operational by mid-2010 and the larger ponds being operational by the end of that year. 
 
 In addition to producing algae oil and biodiesel, the project will also seek to develop certain coproducts. "The biorefinery component of the project will develop high-value biological and chemical coproducts," Taylor confirmed. Bioprocessing technologies will be developed to optimize a purification system for separating the biofuels, or saturated triglycerides, from target coproducts such as omega-3 fatty acids and carotenoids. The residual protein and carbohydrate components of the algae will also be investigated for possible use as an animal feed, or for other coproducts such as bioactive peptides, natural antibiotics, cosmeceuticals, or food and feed supplements. 
 
 The project will also seek to develop acrylic acid esters from the glycerin left over after biodiesel production. "This project aims to demonstrate advanced chemical processes to improve the efficiency of dehydrating glycerol to acrolein by using a variety of new inorganic acid catalysts," Taylor said. "Acrolein can be converted to acrylic acid and then to acrylic acid ester, used in various industries such as paint, textile, plastics, etc." This biorefinery approach to fuel production will diversify and significantly improve revenue streams to provide a sustainable business model in achieving economic biofuel production, he said.

Australia investigates algae oil production

In January, Pennsylvania Gov. Edward Rendell announced the funding of 49 renewable energy and renewable fuel projects in the Keystone State. Of the 49 projects selected, 12 are biodiesel-related. 
 
 In Bedford County, the Community Foundation for the Alleghenies will receive $199,191 for the renovation of the Whispering Creek Renewable Energy Center. The environmental education facility will demonstrate the benefits of renewable energy generation and energy-efficient upgrades to an existing structure, and provide a location for the hands-on demonstrations of wind, solar, biodiesel and geothermal technologies. 
 

 Dauphin County biodiesel producer Middletown Biofuels LLC will receive $654,845 to demonstrate the pretreatment of alternative biodiesel feedstocks via controlled flow cavitation technology, which has the potential to cut production costs and make the company more competitive with its out-of-state rivals. The project's production capacity is expected to reach approximately 4.6 MMgy and reduce greenhouse gas emissions by as much as 9,950 tons annually. 
 
 Center County-based Matson and Associates Inc. will receive $120,000 to demonstrate the effectiveness of several catalysts in processing alternative, lower-cost biodiesel feedstocks. In addition, eight entities received funding to help buy down the incremental costs of biodiesel-blended fuel distribution.
 
 Funding for the Dauphin and Center County projects came from two state grant programs: The Energy Harvest program contributed $7.2 million, and the Alternative Fuels Incentive Grant program provided $6.5 million. 
 
 The funding for these biodiesel projects will also help accelerate Pennsylvania's incremental biodiesel mandate. The total biodiesel production capacity of the state's seven operating biodiesel plants has reached 40 MMgy, the threshold necessary to trigger a statewide B2 requirement. During a visit to the 93rd Pennsylvania Farm Show in January, 
 Rendell said the state is on track to satisfy its B2 mandate in 2010 as a result of House Bill 1202, which he championed and signed in July. As in-state production rises, the biodiesel requirement will also rise, up to 20 percent once capacity reaches 400 MMgy. 
 
 Meanwhile, the Pennsylvania Farm Bureau and the Global Emissions Exchange have partnered to create a carbon credit trading regime for Pennsylvania farmers who use biodiesel on their farmland. According to farm bureau Media Relations Director Mark O'Neill, the bureau will first focus on enrolling farmers who can earn carbon credits by sequestering carbon dioxide from no-till farming practices. It will host informational meetings in eight counties during the year to educate interested farmers about how they can participate in the program. "At this point, we're focusing more on the education of carbon credits to the farmers than on the biodiesel aspect," O'Neill said, adding that the bureau expects to implement the biodiesel portion of the program by the fourth quarter of this year. "We're not anticipating problems, but we just want to do it well and not too soon."
 
 According to Philip Gotthelf, managing director for the Global Emissions Exchange, once the biodiesel-focused portion of the program is implemented, farmers will be able to earn credits at a rate of 19.7 pounds of carbon dioxide reduction per gallon of B100 used. This protocol was based on studies jointly conducted by the Global Emissions Exchange and 
 Amerigreen BioFuels Inc., a biodiesel wholesaler in Lower Swatara Township, Pa. Gotthelf said the protocol was derived strictly from life-cycle analyses of soy-based biodiesel. 
 
 Protocols for the use of yellow grease as a biodiesel feedstock will later be added to the program. "Pennsylvania farmers can register on our Web site right now," he said, adding that the program is also available to Pennsylvania refiners, blenders and distributors interested participating in biodiesel-specific carbon credit trading programs. "It really represents a unique and powerful economic model moving forward."

Pennsylvania Department of Agriculture Secretary Dennis Wolff , second from left, and Department of Environmental Protection Secretary John Hanger, third from left, join Pennsylvania biofuels producers to cut the ribbon at the 2009 Renewable Energy E

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Pennsylvania issues funding, enacts carbon credit trading

When experimenting with new biodiesel oilseed feedstocks, researchers are aware that there should be a market for the post-crush meal in order to make the crop economics work. 
 
 For the burgeoning biodiesel feedstock Jatropha curcas, markets for the meal have been rather limited because of its toxicity. 

 
 U.K.-based D1 Oils PLC recently developed a way to detoxify the jatropha meal. The company said it's "patenting a process that expels crude biodiesel oil from jatropha seeds and at the same time purifies the seedcake (meal) left after oil extraction to produce high-protein animal feed." 
 
 D1 Oils wouldn't comment further on the process, however. "For reasons of commercial confidentiality and the patent application, we are not saying anything more at this stage than is in the (press) release," Communications Director Graham Prince told Biodiesel Magazine. In the press release, the company said its purified meal contains more digestible protein than soybean meal, and comparable energy and amino acid composition to "the best available protein sources" for animal feed. 
 
 D1 Oils is scaling up its jatropha crush and purification process in order to conduct animal feed trials this year. "Second-phase trials will include tests for palatability, digestibility, animal growth and other performance indicators," the company said. "The Scottish Agricultural College is carrying out the field trials on D1's behalf. In phase three of the project, the results of the trials will be used to complete regulatory approvals and to determine market entry strategies." D1 Oils is working with its planting business D1-BP Fuel Crops Ltd., a joint venture with BP Amoco PLC, to commercialize the meal detoxification process. It aims to license the technology by 2010, the same year it expects to release the "next generation of commercial jatropha plants." The company selected 13 jatropha materials for product placement trials underway in Africa, India and Southeast Asia and "has started multiplication processes for these selections." This year, D1 Oils will take the "best performing accessions from these trials and multiply them into seed lots for intended commercial release to farmers in 2010." 
 
 Jatropha was also the focus of a one-page article in Time magazine in early February. The story mentions Roy Beckford, a researcher with the University of Florida Institute of Food and Agricultural Sciences who was on the verge of publishing results of a study that began in August 2007 with 1,500 jatropha seedlings in Lee County, Fla. The different varieties of seedlings, provided by My Dream Fuels LLC, were planted in a one-acre plot. According to Beckford, he found the optimal growing conditions for jatropha include a soil pH of 6.8 to 8, 24 inches of rainfall per year, provisions of organic nutrients, proper spacing depending on soil nutrients, and integrated pest management. He noted that flooding, specifically submergence in water for more than two days, would be one of the few things that could kill the plants, which for the most part can thrive in less-than-ideal conditions. He also said investment in mechanical jatropha harvesting is still needed.

A D1 Oils jatropha planting in Tamil Nadu, India/PHOTO: D1 OILS PLC

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Workers tend to jatropha plants in a D1 Oils nursery in Swaziland, Africa. /PHOTO: D1 OILS PLC

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Jatropha projects develop worldwide

It is easy to tell when a great concert is about to start. The house lights go down. The buzz, click and whir of pyrotechnics, lights and electric guitars pop through powerful speakers. 
 
 The din of the crowd escalates to a huge roar. One chord, lights, drums and the show takes the stage. It takes the coordination of countless unique components working together to pull it off. Imagine the chaos if each musician just got up there and did his or her own thing, or if the lights weren't coordinated with the music. A great concert works because those components work together, and only because they work together. 
 
 The U.S. biodiesel industry is one of the most technically diverse industries imaginable. Industry leaders are from all walks of life and all parts of the country, using different feedstocks, technologies, plant sizes and business models. That diversity has made it difficult at times to keep everyone on the same sheet of music. But it is also what gives the biodiesel industry such a broad appeal. Unity as an industry was the call to action in my opening speech at the National Biodiesel Conference & Expo in San Francisco in February. I am even more convinced that remaining unified and coordinated as an industry is the only way that we will be able to face the enormous economic and political challenges ahead. 
 
 The biodiesel industry is under attack by wealthy and powerful groups who are trying to protect the status quo and snuff out the promise of biofuels. One tactic they employ is to say that we need to move away from first-generation biofuels such as ethanol and biodiesel and move on to second-generation biofuels. This approach labels biodiesel as the 8-track technology of alternative fuels, implying that we should skip directly to compact discs. Biodiesel is not 8-track technology; it would be more accurately compared to MP3 technology. 
 
 The fact is that when it comes to renewable alternatives to diesel fuel, biodiesel is really the only thing that is working. It is biodiesel that is driving innovation, and stimulating the agricultural and plant science research that is helping to increase supplies of protein for food and feed using the same acres of land. It is biodiesel that is helping to keep family farms profitable so that their land is not gobbled up by urban sprawl.

 
 We know that biodiesel has the highest energy density of any alternative fuel and the best fossil energy balance of any fuel. Of the significant available options in the commercial marketplace, biodiesel is the most sustainable heavy duty transportation fuel in the world. 
 
 But just like a great concert, the only way we can be heard is if we work together. Uniting our talents and resources allows us to tackle industry-wide challenges with a united voice. Instead of cannibalizing our own resources by competing for the stage, working together gives us the strength to leverage support from a variety of funders to overcome the adversity we face. 
 
 We're here. We're getting better all the time. We are the future and not the past. We are ready to rock the house. 
 
 Sincerely,
 Joe Jobe
 Chief Executive Officer
 National Biodiesel Board

Melissa Etheridge rocks the house at the 2009 National Biodiesel Conference and Expo. /PHOTO: NATIONAL BIODIESEL BOARD

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It's Time to Rock the House

Melissa Etheridge and Jay Leno, ferry boats and fast cars, New York and San Francisco-all are a part of the National Biodiesel Board's YouTube channel, <a href="www.YouTube.com/NationalBiodiesel">www.YouTube.com/NationalBiodiesel</a>. 
 
 YouTube is the No. 1 Web site for online video sharing. A staggering 70 million people worldwide visit it each month. Social media sites such as YouTube have become wildly popular in recent years.
 

 NBB's YouTube channel features a wide array of biodiesel information in video form. Clips from celebrity users, samples of news coverage and informative videos are among the nearly 50 videos already available.
 
 More people are turning to the Internet for information than any other media source, including television and newspapers. 
 
 "Sites like YouTube and Facebook are more than just fun and games today," said NBB Director of Communications Jenna Higgins. "They drive public awareness, public opinion and mainstream media coverage. We want to have a voice in this forum and ensure that an opportunity to learn about the benefits of biodiesel is reaching the people who seek it." 
 Biodiesel fans can become subscribers to the channel and find out when new videos are posted, offer comments and share videos with friends.

The NBB's new YouTube channel features a wide array of biodiesel information./PHOTO: NATIONAL BIODIESEL BOARD

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NBB's YouTube channel fires up the web

The National Biodiesel Board will again have a strong presence at the Alternative Fuels & Vehicles National Conference and Expo, held April 19-22 in Orlando, Fla. Hosted by the Alternative Fuel Vehicle Institute, the national conference is a fuel-and-technology neutral gathering that attracts fleet decision-makers and industry experts to accelerate the commercial adoption of alternative fuels, vehicles and advanced transportation technologies. It will be held at the Walt Disney World Swan and Dolphin Resort and attract an estimated 2,000 attendees. 
 
 The NBB serves on the steering committee and has several speakers throughout the four-day event. The NBB is also presenting a workshop on biodiesel's role in growing domestic fueling solutions. Fleet managers and other attendees will hear the latest developments on new biodiesel standards, fuel quality and original equipment manufacturer positions. 
 
 They will also hear from peers who are standout biodiesel fleet managers. The NBB will have a booth in the expo hall and is a silver sponsor of the conference. Other sponsors include General Motors, Toyota, Ford and the Renewable Fuels Association. 
 
 Keynote speakers include General Wesley Clark, co-chairman of Growth Energy; T. Boone Pickens, founder and chairman of BP Capital Management; and Jeff Schuster, the executive director of global forecasting for the consulting firm J.D. Power. Keynote speakers will be joined by 200 experts presenting topics in 35 concurrent sessions. Timely information focuses on evolving transportation policy and funding changes that have created an unprecedented opportunity for alternative fuels and advanced technology vehicle markets. 
 
 The Alternative Fuel Vehicle Institute is an entrepreneurial organization that works through industry to bring people in need of proven transportation technologies together with those who can meet their needs. The institute is fuel and technology neutral. More information on the conference is available at <a href="http://www.afv2009.com">http://www.afv2009.com</a>.

Alternative Fuels & Vehicles Conference heats up Orlando

The National Biodiesel Conference and Expo, held Feb. 1-4 in San Francisco, featured big-name advocates of biodiesel, announcements on biodiesel's support from the scientific community, and automakers' diesel offerings. The conference, themed "Leading. Change. Now," offered educational and networking opportunities. Educational sessions focused on sustainability, fuel production, technical updates, fuel distribution, policy/regulations and markets and users. 

 
 Vehicles Helping to Drive Biodiesel
 A major component of NBB's conference showcased automakers' diesel vehicle offerings and biodiesel support. Volkswagen announced that B5 will be the official fuel of the 2009 Volkswagen Jetta TDI Racing Series. Hyperfuels, a national supplier of race fuels, biodiesel, additives and lubricants, has been selected as the official fuel sponsor. Hyperfuels' parent company, Gulf Hydrocarbon, is an NBB member.
 
 Other vehicles in the 2009 biodiesel vehicle showcase included Chrysler's Dodge Ram pickup truck, which is approved for up to B20 for fleet use; Hayes Diversified Technologies' diesel-powered motorcycles, including a land-speed record-setting production diesel motorcycle; Solazyme's factory-standard Jeep Liberty operating on 100 percent algae-derived biodiesel; and Jay Leno's Ecojet presented by New Holland.
 
 Highest Biodiesel Honors Awarded
 Advocates for environmentally friendly biodiesel recognized as National Biodiesel Board's 2009 "Eye on Biodiesel Award" winners include:
 
 Influence-Melissa Etheridge Etheridge often powers her worldwide tours with biodiesel and said she liked using biodiesel in her tour vehicles so much that she sold her personal cars to buy a diesel sport utility vehicle, which she calls the Bio-Beast. 
 
 Inspiration-Bryan Peterson and Pete Bethune Peterson made his way around the world in a biodiesel-powered boat, generating some of the earliest news on biodiesel. New Zealander Bethune's Earthrace boat, fueled by biodiesel, broke the speed record for circumnavigating the world. 
 

 Initiative-San Francisco Mayor Gavin Newsom In 2006, Newsom called for more biodiesel use in San Francisco. Today, virtually all of the city's 1,500 diesel vehicles run on B20. 
 Industry Partnership-Ronald Hayes, Missouri and Randy Jennings, Tennessee Hayes and Jennings worked in conjunction with state and national regulatory agencies to create and enforce standards for biodiesel fuel. They also helped develop test methods and labeling requirements. 
 
 Impact-Randall von Wedel Von Wedel helped bring biodiesel to the West Coast. Since the early 90s, he opened California's first retail pump, implemented biodiesel in major fleets, introduced fleet quality control programs and helped pioneer biodiesel marine uses. 
 
 Pioneer Award-Kenlon Johannes Johannes was the first executive director of the National SoyDiesel Development Board, which became the NBB. 
 The 2010 National Biodiesel Conference & Expo will take place Feb. 7-10 in Grapevine, Texas.

B5 is the official fuel of the 2009 Volkswagen Jetta TDI Racing Series. NBB Chairman Ed Hegland takes to the track with a biodiesel-powered Volkswagen./PHOTO: NATIONAL BIODIESEL BOARD

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NBB honored industry leaders and supporters with annual awards. From left to right: Johannes, NBB Chief Executive Officer Joe Jobe, Kansas Soybean Commission member Harold Kraus, Bethune and Peterson./PHOTO: NATIONAL BIODIESEL BOARD

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National Biodiesel Conference and Expo sets the bar as a not-to-miss event

Spring's warmth is a welcome change after a cold winter, especially for some students in Bloomington, Minn., who were left outside after buses stalled in below-zero temperatures earlier this winter. Twelve of the school district's 109 buses had problems on a minus-25 degree morning. The school district was quick to inaccurately blame Minnesota's B2 requirement and biodiesel for the problems. 
 
 The National Biodiesel Board, in coordination with the Minnesota Soybean Growers Association, acted quickly to provide the facts and protect biodiesel's good name. 
 
 An independent report issued by Meg Corp. and paid for by the distributor that supplied the fuel, Yokum Oil, analyzed filters from the buses that broke down. "We found that whatever was plugging the filters was not biodiesel, but a substance found in petroleum," the report concludes. 
 
 Several local and national news outlets set the record straight.

 
 A Minneapolis Star Tribune editorial called the situation an "unearned black eye for biodiesel fuel." It further said, "With Minnesota poised to transition to a higher percentage of biodiesel this spring, it's important to set the record straight on the Bloomington bus issue. Biodiesel wasn't the culprit causing the school buses to stall out. Unfortunately, the brouhaha has given the state's pioneering mandates and the promising biodiesel industry an undeserved black eye."
 
 One Minnesota reporter considered the coverage on his electronic publication, "At best, the public was left with a he-said, they-said story, even though evidence was piling up on biodiesel's side…the report and genuinely independent experts make a convincing common-sense case the biodiesel blame was overwrought. Next time, let's simply call it a "diesel day off."
 
 View the coverage and the report exonerating biodiesel at <a href="www.biodiesel.org">www.biodiesel.org</a>.

NBB protects biodiesel's good name

When biodiesel was added to the dictionary, Google was added as a verb in the same round of new words. The Google search engine helps millions of people find the information they seek. The National Biodiesel Board offers its own targeted search engine for biodiesel information. Bioogle is a search engine to help Internet users find what they are looking for on NBB's family of Web sites. 
 
 Bioogle, found at <a href="http://www.biodiesel.org/bioogle/">http://www.biodiesel.org/bioogle/</a>, harnesses the power of the Google search engine to provide an easy and fast way to search for biodiesel and industry information.
 
 ›Bioogle search includes the following websites:
 
 ›The National Biodiesel Board: <a href="www.biodiesel.org">www.biodiesel.org</a> 

 
 ›BioTrucker.com: <a href="www.biotrucker.com">www.biotrucker.com</a> 
 
 ›BQ-9000: <a href="www.bq-9000.org">www.bq-9000.org</a> 
 
 ›The Biodiesel Foundation: <a href="www.biodieselfoundation.org">www.biodieselfoundation.org</a> 
 
 ›All Things Biodiesel: <a href="www.allthingsbiodiesel.com">www.allthingsbiodiesel.com</a>
 

 ›NBBIT: <a href="www.nbbit.com">www.nbbit.com</a> 
 
 ›Biodiesel Conference & Expo: <a href="www.biodieselconference.com">www.biodieselconference.com</a> 
 
 ›The Biodiesel Political Action Committee: <a href="www.biodieselpac.org">www.biodieselpac.org</a> 
 
 ›Ask BEN: <a href="www.askben.info">www.askben.info</a>
 

 The National Biodiesel Board Web site, <a href="http://www.biodiesel.org/">http://www.biodiesel.org/</a>, has long been the premier source for industry information. In coordination with the entire Web site family, its resources and information are nearly limitless when it comes to biodiesel.

Need biodiesel information? Bioogle it

Web exclusive posted March 13, 2009, at 2:07 p.m. CST 
 
 A proposal recently released by the U.S. EPA could serve as the basis for future government climate policies including emissions standards, economic incentives and a carbon tax and/or cap-and-trade program. The proposed comprehensive national greenhouse gas (GHG) emissions reporting system would affect approximately 13,000 facilities, including extractors of crude petroleum and natural gas, coal and oil refineries, ethanol production facilities, industrial landfills, wastewater treatment plants and any other facility which emits more than 25,000 metric tons of carbon dioxide equivalent per year.
 
 EPA Administrator Lisa Jackson said the reporting system would be a "critical step" in helping to protect the country's environment. A mandatory reporting system would allow the EPA to gain accurate and timely information on GHG emissions and a better understanding of the relative emissions of specific industries, the agency said. 
 
 Under the EPA's proposal, emitters would be required to begin collecting data on Jan. 1, 2010. The first emissions report would be due on March 31, 2011, for emissions during calendar year 2010. At that time, reporters would need to present total annual GHG emissions as an aggregate as well as separate emissions data for each source and supply category identified by the EPA. In addition, certain activity data, including fuel use and feedstock inputs, used to generate the emissions information would need to be reported.
 
 The agency said emitters would not be required to report emissions from land-use changes associated with deforestation or from carbon storage in living biomass or harvested wood products. The EPA's proposal stated that methods to collect emissions data from those sources "can be difficult to implement and can yield uncertain results."

 
 The EPA estimates private sector costs for the first year of the program at $160 million. The agency's proposal will be published in the Federal Register, after which it will be open for public comment for 60 days. Public hearings will be held in Washington, D.C., and California.
 
 For more information on the proposed GHG reporting rule visit <a target="_blank" href="http://www.epa.gov/climatechange/emissions/ghgrulemaking.html" rel="external">www.epa.gov/climatechange/emissions/ghgrulemaking.html</a>.

EPA proposes GHG reporting program

USDA projected U.S. soybean ending stocks could be at their lowest at the end of the current marketing year since 2003-'04, due to strong exports and a reduced South American crop offsetting weaker domestic demand. While that boosted USDA's price projections for the soybean sector, it amounted to a modest increase of 1.5 cents per pound on the low end of its price forecast for soy oil to a range of 30 to 32 cents per pound for the 2008-'09 marketing year. The U.S. season-average soybean price range for 2008-'09 was projected at $9.25 to $10.05 per bushel compared with $8.85 to $9.85 per bushel last month. The soybean meal price range was narrowed to $280 to $300 per short ton compared with $265 to $305 last month.
 
 USDA made the adjustments to its market projections in its April 9 World Agriculture Supply and Demand Estimates report. U.S. soybean exports for 2008-'09 were increased 25 million bushels to a record 1.21 billion reflecting strong year-to-date shipments and outstanding sales, and prospects for reduced export competition from South America as the Argentina soybean crop continued to deteriorate. Soybean crush was reduced 5 million bushels to 1.635 billion due to persistent weakness in domestic soybean meal demand. Seed use was raised reflecting expected plantings for 2009 reported in the March 31 Prospective Plantings report. U.S. soybean ending stocks were reduced 20 million bushels to a projected 165 million, the lowest since 2003-'04.
 
 USDA's projections for soy oil use in biodiesel production remained unchanged from the previous month at 2,200 million pounds compared to 2,762 million pounds in 2006-'07 and 2,981 million pounds in 2007-'09. Projected ending oil stocks were reduced slightly from 2,778 million pounds from the last report to 2,748 million pounds.
 
 Global oilseed production for 2008-'09 was projected at 403.5 million tons, down 4.2 million tons from last month. Lower soybean, cottonseed and sunflower seed production were only partly offset by increased rapeseed and peanut projections. Global soybean production was reduced 4.5 million tons to 218.8 million, with Argentina accounting for most of the reduction. Soybean production for Argentina was projected at 39.0 million tons, down 4 million due to lower harvested area and yields. Despite rain in much of the main growing area in early March, hot, dry conditions returned in most of the country, leaving yield prospects below last month. 
 

 Soybean production was also reduced for Paraguay and India. Soybean production for Brazil remained unchanged at 57 million tons. Global rapeseed production was raised 0.4 million tons to a record 57.9 million due to higher projected output in India. Global 2008-'09 oilseed ending stocks were reduced 4.1 million tons to 58.6 million due mostly to lower soybean stocks in Argentina, Brazil, and the United States.

WASDE: Soy ending stocks could be lowest in 15 years

As founder and director of the Thomas Jefferson Agricultural Institute, Rob Myers is well aware of Jefferson's historic commitment to exploring new frontiers as well as agricultural progress. With an eye on continuing advancements in biodiesel that would have appealed to Jefferson's interests, Myers announced the Scientists for Biodiesel declaration at the National Biodiesel Conference and Expo.
 
 Donald Danforth Plant Science Center President Roger Beachy and Myers, co-chairs of the Scientists for Biodiesel campaign, are inviting their peers from around the world to join in support of biodiesel. More than 40 scientists have done so already. 
 
 "Scientists sometimes have differences of opinion, but this declaration is intended to show the broad consensus among scientists about the benefits of biodiesel," Myers said. "Our goal is to increase awareness and information sharing about the depth and breadth of the scientific research behind biodiesel that contributes to its sustainability."
 
 The declaration also calls for more investment into the scientific needs associated with this vital bioenergy source. The full declaration is available online at <a href="www.biodieselsustainability.com">www.biodieselsustainability.com</a> and says, "Biodiesel from a variety of feedstocks can meet contemporary needs for environmental stewardship, economic prosperity and quality of life without compromising the ability of future generations to meet these needs for themselves."

Scientists continue to voice biodiesel support

›Guelph, Ontario-based biodiesel producer and waste vegetable oil renderer Rothsay Biodiesel has contracted with Compass Group Canada to collect waste cooking oils and greases from Compass' food service facilities across Canada, specifically from Manitoba to Newfoundland. Rothsay, which operates five rendering facilities in Canada, intends to use the supply of collected waste vegetable oils as a feedstock at its 35 MMly (9.2 MMgy) biodiesel plant in Montreal. Compass' contract with Rothsay will be fulfilled throughout 2009, according to Compass spokeswoman Cindy Harris. 
 
 ›In January, New Generation Biofuels Holdings Inc. announced the signing of a memorandum of understanding with First Florida Biofuels LLC to pursue the development of potential biofuel projects in Florida. Under the agreement, New Generation Biofuels will provide the technology and know-how for the development of a potential joint venture, while First Florida Biofuels will contribute its marketing expertise and arrange financing for the projects. New Generation Biofuels' technology utilizes the same feedstocks as biodiesel but produces a biofuel that more closely resembles vegetable oil. While biodiesel is manufactured through the transesterification process, this new fuel is made using an emulsification process. 
 
 ›PAC LP, a division of Roper Industries Inc., and Metrohm USA Inc. announced a partnership that will provide complete analytical testing solutions to the biofuels industry. Each company has served the needs of ethanol and biodiesel laboratories with its own portfolios of complementary instruments, reagents and technical support. This cooperative now offers these labs a comprehensive solution with the goal of helping them conform to ASTM test requirements. 

 
 ›Ohio-based Cognis Corp. has added an On-Demand option to its QTA System that allows biodiesel plants to test fuel quality on a per-sample basis. The facilities can send Cognis a raw sample of biodiesel and receive test results back via e-mail within 24 hours.
 
 Similarly, the National Institute of Standards and Technology has developed a faster stability testing method for soy-based biodiesel. The method approximates both oxidation and heating effects without causing biodiesel to break down.
 
 Meanwhile, Rohm and Haas Co. has launched a feedstock purification technology to convert free fatty acids into biodiesel. Ambersep BD19 can replace or supplement conventional degumming processes and extend the life of esterification catalysts.
 
 ›The University of North Dakota's Energy & Environmental Research Center has launched a $1 million project to evaluate renewable oil refining technologies using North Dakota oilseed crops such as crambe processed at a Tesoro Cos. Inc. oil refinery in Mandan, N.D. Crambe is a drought-tolerant, low-input, nonfood oilseed crop. The collaboration between the EERC and Tesoro is being funded with $500,000 from the North Dakota Industrial Commission and an equal amount from the U.S. Department of Defense. The EERC is building on previous work done for the DOD to produce renewable fuels indistinguishable from their petroleum-derived counterparts.
 
 ›Cleveland-based Arisdyne Systems Inc. has named Paul Mulhollem to its company's board of directors. Mulhollem served four years as president and chief operating officer of Archer Daniels Midland Co., and also worked for Continental Grain Co. and Cargill Inc. Arisdyne has also promoted Paul Reinking to vice president of sales engineering from his previous position as operations manager. Arisdyne has developed a high-speed biodiesel process using hydrodynamic cavitation technology.
 
 ›Australia-based Jatoil Ltd. has named former Royal Dutch Shell PLC executive Phil Hodgson chief executive officer. He joined the board in October as a nonexecutive director. A chemical engineer with a doctorate from the University of New South Wales in Sydney, Australia, Hodgson held positions at Shell that involved refinery supply, economics and planning, and risk management for a major fuels portfolio. He also gained sales and general management experience. Jatoil is focused on developing Jatropha curcas as a biodiesel feedstock.
 
 ›Philadelphia-based BlackGold Biofuels (formerly Philadelphia Fry-o-Diesel) has been named the technology provider for a demonstration-scale biodiesel plant in San Francisco that will convert brown grease into ASTM-quality biodiesel, according to the San Francisco Public Utilities Commission. The new facility at the Oceanside Water Pollution Control Plant is expected to be complete in November and will produce 100,000 gallons of biodiesel yearly, BlackGold estimated. In addition, the SFPUC said it received $175,000 from the U.S. EPA to publish a how-to manual for other cities. The city received $1 million from the California Energy Commission in May for the project.
 
 ›Renewable fuel veteran John Sheehan has joined the University of Minnesota Institute on the Environment as scientific program coordinator for biofuels. He has much experience in renewable energy development, spending nearly 20 years with the U.S. DOE's National Renewable Energy Laboratory conducting work on system dynamic models for strategic and policy decision-making related to biodiesel and ethanol. In his new position, he will focus particularly on the direct and indirect consequences of biofuels production on land use across the world.

 
 ›David Sams has joined Iowa-based biodiesel production technology developer Catilin Inc. as vice president of business development. He has more than 20 years of experience in the petrochemical manufacturing industry, has held engineering leadership positions for Shell Oil Co., and has led sales and business development activities for WR Grace and Oryxe Energy International Inc. Most recently, he served as senior vice president of supply and marketing at Oryxe Energy. In his new position, he will be responsible for developing and maintaining company partnerships on a global basis.
 
 ›In late January, Innovation Fuels Inc. announced the formation of a new company in partnership with Tanco Milwaukee LLC called Innovation Fuels Tanco Milwaukee, which will operate a 10-acre, 312,000-barrel (13.1-million gallon) terminal in the Port of Milwaukee, Wis. In addition to the storage capacity, the site is equipped with a 20,000-square-foot warehouse, garage and offices. It has an idled connection to the Westshore petroleum pipeline, as well.
 
 Innovation Fuels announced another partnership in January with Mitchell Supreme Fuel Co., a New Jersey-based supplier of home heating oil, to provide biodiesel-blended heating oil to the East Coast. 
 
 ›San Francisco-based Sirona Fuels Inc. announced in early February during the National Biodiesel Conference & Expo that it had purchased Blue Sky Bio-Fuels and its 15 MMgy biodiesel plant in Oakland, Calif., which uses waste vegetable oils as a feedstock. "We plan to grow the company exponentially by acquiring more refineries, and aggressively expanding our local and international feedstock supplies," said Paul Lacrouciere, chief executive officer of Sirona Fuels, who has 20 years of experience in the energy business. 
 According to Sirona Fuels, the company intends to commercially produce jatropha-based biodiesel by the end of 2009.
 
 ›Iowa-based biodiesel producer Riksch BioFuels LLC has added new information to its Web site that aims to educate equipment owners and operators interested in becoming involved in the biodiesel industry. The Web site, developed by Iowa-based consulting firm Purple Wren, now includes basic definitions and advice for the construction industry, as well. In addition to information on where to find and how to use biodiesel, the site features a blog, which allows users to subscribe to e-mail alerts regarding national trend analyses and advice on utilizing biodiesel, according to Vice President and Chief Financial Officer Don Miksch. To utilize this new information, visit <a href="www.rikschbiofuels.com">www.rikschbiofuels.com</a>.

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Business Briefs: Companies, Organizations & People in the News

Diesel prices continued their downward trend in February, hitting price levels that haven't been seen in several years. According to the U.S. DOE's Energy Information Administration, the price of No. 2 diesel averaged $2.19 per gallon between Feb. 1 and 23, approximately $1.20 per gallon lower than in February 2008. The New England region had the highest regional diesel price average at $2.56 per gallon, while the Midwest and the Gulf Coast regions saw prices in the $2.13-per-gallon range. According to the EIA, the national average retail sales price for No. 2 diesel stood at $2.13 on Feb. 23. 
 
 On-road diesel fuel prices, which averaged $3.79 per gallon in 2008, are projected to average $2.28 per gallon in 2009 and $2.55 in 2010. Despite the fuel price trends for diesel, biodiesel plants are still being built, and new projects are surfacing with the hope that biodiesel will eventually become cost-competitive with the petroleum-based market once again.

 
 Two projects were added to this month's plant construction list of 17, which represent a combined production capacity of 297 MMgy. Chieftain BioFuels LLC broke ground on its 2 MMgy project in Logan, Ohio, in March 2008 and is expected to be complete by March 2009. In addition to using yellow grease as a feedstock, the plant will procure soy oil from its adjacent soybean-crushing facility, which has been in operation since September. The biodiesel plant will be expanded to 5 MMgy by the end of this year, according to President Doug Kitchen. He said the company received a substantial amount of funding from the state of Ohio for this project, which also works closely with area biodiesel producers and 
 Hocking Technical College's Alternative Energy and Fuel Cells program. 
 
 Meanwhile, all concrete work is complete, and most tanks are installed at Eco Energy Biodiesel Inc., a 10 MMgy plant in Adelanto, Calif. Project developers aim to start production in April, according to Chief Executive Officer Alex Mann. The plant will use yellow grease as a feedstock. 
 
 In other project news, Eastman Bio-Fuels Ltd. aims to complete construction of its 10 MMly (2 MMgy) multi-feedstock plant in Beausejour, Manitoba, in May, at which time commissioning will begin, according to President Robert Small. "We can actually see the light at the end of the tunnel now," he said. Subsequently, the company's canola crushing plant adjacent to the biodiesel facility will begin the commissioning phase in April. "We've crushed canola oil already," Small said. "We have the ability to crush about 40 tons per day of canola for oil."
 
 Meanwhile, Terra Bioenergy LLC completed construction of its 30 MMgy plant in St. Joseph, Mo., in February. Once operational, the facility will use animal fats and soy oil as feedstocks. According to Chief Executive Officer Patrick Lappe, the plant will reach full nameplate capacity 30 to 45 days after commissioning is complete.

Eastman Bio-Fuels Ltd.-Beausejour, Manitoba/PHOTO: Eastman bio-fuels ltd.

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Eastman Bio-Fuels Ltd./PHOTO: Eastman bio-fuels ltd.

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Construction Makes Headway Amid Sliding Diesel Prices

At the onset of the 2009 National Biodiesel Conference in San Francisco, in early February, National Biodiesel Board Chief Executive Officer Joe Jobe discussed the "enormous adversity" the industry has endured over the past year. Without sugarcoating anything, Jobe acknowledged that it's been a struggle for producers to deal with two volatile commodity markets. He also addressed the Grocery Manufacturers Association's yearlong attack on biofuels. "The biodiesel industry is absolutely and irrefutably under attack by those trying to protect the status quo," he said. Once the GMA's campaign let up momentarily, the economy tumbled sending oil prices plummeting and ruining biodiesel blend economics. "Once again alternatives are being suffocated out of the market," Jobe said. 
 
 "The biodiesel industry is as diverse as America itself," he said. "We need to recommit to unity, and overcome adversity by leveraging our diversity." This was an important message for Jobe and he repeated it during the final general session as a call to action. "Our country is in a very serious situation," he said. It is time for a change, and the biodiesel industry needs to take advantage of the opportunity to help lead that change, Jobe told the audience. In addition to the economy, the biodiesel industry has many other challenges, which is why "we need to recommit to unity," he said. 
 
 The current wave of attacks on biofuels centers on indirect land use. Jobe said it's absurd to expect biofuels producers to have to account for this when no other industry has to do the same. "You can't include one variable for one industry yet exclude it for the others," he said. "This issue is poised to intentionally stack the deck in favor of petroleum. It is junk science. Unfortunately we have to take these attacks during such poor economic conditions. But we have truth and science on our side." 
 
 The session ended with a panel consisting of the "green team" for the city of San Francisco and the county, moderated by Randall von Wedel, who told the audience about their experiences over the years to get wide acceptance for biodiesel. Von Wedel is a principal scientist at CytoCulture International, a lab in the Bay Area. He also invented the pHLip Test, a 10 minute hand-held test to measure certain biodiesel qualities, and he has been instrumental in getting the city of San Francisco to accept biodiesel. The panel included San Francisco's Vandana Bali, of the Department of the Environment; Mike Ferry, Fire Department; Karri Ving, Public Utilities Commission; and Marty Mellera, San Francisco Municipal Transportation Agency. Before the panel and moderator left the stage, Jobe presented von Wedel with the NBB impact award for his years of work in biodiesel, especially for its acceptance in the Bay Area. Afterwards, industry partnership awards were given to Ronald Hayes, director of weights and measures for the Missouri Department of Agriculture, and Randy Jennings, biofuels administrator for the Tennessee Department of Agriculture. 
 
 Sustainability: The 'Defining Word of Our Time'

 The theme of the second day's general session was sustainability, which NBB Chairman Ed Hegland called the "defining word of our time." He said the board's goal is to have biodiesel make up 5 percent of the national diesel fuel pool by 2015, a plan called 5x15. 
 
 Featured speaker Don O'Connor, president of (S&T)2 Consultants Inc., shared his insight into the indirect land-use issue. O'Connor discussed principals that he believes must be followed when life-cycle analysis and indirect land-use assessments are being developed. There must be relativity, transparency and priority of scientific approach, O'Connor said. "We will need to deviate from pure science," he said, meaning there will have to be projections, forecasts and inevitably the utilization of social sciences to develop sound indirect land-use assessments. O'Connor said there is uncertainty in understanding exactly how to identify and quantify variables in indirect land use. Quantifying indirect land use presents two significant challenges: determining how much production would rise from increased land use and evaluating the yield potential of more efficient farming practices. If one assumes more land is under cultivation somewhere, the location and type of that land needs to be known, he said, adding that some models being developed to address this issue don't include idle land. And once land, such as grasslands and rainforests, is identified, the status of that land should be included. Also, active farm lands have to be assessed to determine what kind of production techniques (e.g. till or no till) are employed on that land. O'Connor also said coproduct assessment is necessary. "There are lots of questions," he said. "And we have a long way to go before we reach a consensus." 
 
 O'Connor also said that those working toward developing how to calculate indirect land use should focus on the agricultural production gap that exists around the world. If soybean and rapeseed producing countries could reach production levels achieved in countries where the most advanced farming practices are used, approximately 7 billion more gallons of vegetable oil for biodiesel could be achieved without introducing one new acre into production. "And there are co-benefits of doing this," he said, adding that when agricultural production rises, poverty decreases. "We need higher ag prices," O'Connor said. Clearly, indirect effects of other fuels need to be addressed because it takes a lot of money and energy to ensure oil shipping lanes are safe. "Those [greenhouse gas emissions] are never factored in," he said. O'Connor concluded his presentation by reminding attendees that they are still in the early days of calculating indirect land use. 
 
 Emily Bockian Landsburg, chief executive officer of Philadelphia Fry-o-Diesel Inc. and chair of the NBB sustainability task force, told the audience about the formalized list of principles the task force developed to help guide the industry on issues of sustainability, which includes climate change mitigation, human rights, food security and respect for natural resources. "Keep in mind when making decisions, 'What are the externalities in this market?'" Bockian Landsburg said. "No one wants to profit from hardship."
 
 Darryl Hannah, an actress and longtime biodiesel advocate, spoke about a documentary she's been working on, and about the state of the oceans, burning of rainforests, the "toxic patchwork" of unsustainable agriculture and biodiesel exports. 
 
 Melissa Etheridge, singer, songwriter and musician, entertained attendees and talked about how she came to be a biodiesel supporter. 
 
 Biodiesel Power on the High Seas
 The final general session of the 2009 National Biodiesel Conference centered on the fantastic stories of two strikingly similar biodiesel-powered boat trips around the world separated by nearly two decades. Brian Peterson, captain of the Sunrider, piloted a rigid inflatable that ran on "soy diesel" in 1989, and Peter Bethune, captain of Earthrace, circumnavigated the globe 15 years later. 
 

 "In 1989, the word 'biodiesel' didn't exist," Peterson said. He set out to prove it worked by taking a boat trip around the world. He entered 35 ports in 25 countries in his biodiesel-powered boat. At each port, he would tell people about his journey. The trip took two years and two months, spanning 35,000 miles. He sold T-shirts to make money. Bethune's story of Earthrace is more familiar to today's generation of biodiesel followers. Both told stories of the powerful storms the oceans can muster, and the potential havoc they could wreak on such small vessels. Bethune stopped in 157 cities and endured 12 storms where he encountered 40-foot waves. "I only had a hundred hours of sea time when I started," Bethune said. "I was green." The Earthrace ship was designed to go through waves rather than float atop them like most boats. "It bombards your senses-the sheer violence and brutality," he said. "The seas are very unforgiving." 
 
 Peterson was asked how biodiesel has changed since his journey. "Well, it exists-you exist," he said, gesturing toward the crowd before him. Both gentlemen agreed, with Sunrider, the smallest vessel circumnavigating the globe on biodiesel, and Earthrace, the fastest, it was hard to argue that biodiesel was not reliable. They pondered the idea of ever wanting to give up the dream when times got rough. Bethune was moved by this, and became visibly emotional because Earthrace collided with an unlit fishing boat killing one of the fishermen. "If we weren't out here doing this," he said, obviously distraught, "someone wouldn't have died." Later, Peterson told the audience, "For some reason, you all find yourselves in this room talking about biodiesel-try explaining that," he chuckled. "Just don't stop, just keep going. You'll get to where your destiny takes you-it's that simple." 
 
 Bethune's words of encouragement were, "Stand up for what you believe in." Each of them was presented with the NBB Inspiration Award. The Pioneer Award was given to Kenlon Johannes, the first executive director of the National SoyDiesel Development Board, which later became the NBB. 
 
 Ron Kotrba is a Biodiesel Magazine senior writer. Reach him at <a href="rkotrba@bbiinternational.com">rkotrba@bbiinternational.com</a> or (701) 738-4942.

Jobe's message to attendees at the 2009 National Biodiesel Conference was to 'overcome adversity by leveraging our diversity.'/PHOTO: CINDY ZIMMERMAN, ZIMMCOMM NEW MEDIA

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Pictured are, left to right, Johannes, the first executive director of the National SoyDiesel Development Board (predecessor of NBB) and recipient of the Pioneer Award; Jobe, chief executive officer of the NBB; Kansas Soybean Commission member Harold

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LC Biofuels' tanker truck, left, and Blue Sky Biofuel's biodiesel-powered shipping truck were displayed in front of the Mascone Convention Hall in San Francisco during the NBB./PHOTO: RON KOTRBA, BBI INTERNATIONAL

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The National Biodiesel Board's annual conference was held in San Francisco, where cable cars, biodiesel and cultural diversity have long been a mainstay.

A Recommitment to Unity:Overcoming Adversity by Leveraging Diversity

President Barack Obama and his administration have large shoes to fill in the biofuels arena. Leaders in both the biodiesel and ethanol industries cite the administration of President George W. Bush as the most pro-biofuel administration our nation has ever seen. Bush and his administration played a crucial part in the establishment of the renewable fuels standard, which has been an invaluable tool in the expansion of biofuels production. 
 
 While this level of support is expected to continue under the Obama administration, the premise behind that support will likely change. Obama and his administration are expected to emphasize the issue of climate change and the role that low-carbon fuels will play in mitigating it. Industry leaders also anticipate that the administration will focus on science and the development of second-generation technologies. 
 
 In the past, energy security has primarily driven U.S. biofuels policy. "Energy security is something that has been resonating with policymakers for the past decade," says Graham Noyes, an attorney at Stoel Rives LLP who focuses his practice on biofuels issues. "I think that with this new administration-while energy security will still be a factor-global warming has probably surpassed it in terms of importance."
 
 Even with this change in focus, industry leaders expect the new administration will continue to support the biodiesel industry. "The NBB (National Biodiesel Board) believes that President Obama's alternative energy initiatives will greatly benefit the U.S. biodiesel industry," says Michael Frohlich, director of communications for the NBB. "Throughout the president's campaign, he cited biofuels-and biodiesel specifically-as a key resource to repower America by creating new 'green jobs' using renewable, home-grown fuel that reduces our dependence on foreign oil." In addition, the Obama administration has made it clear they are going to tackle critical environmental issues such as reducing carbon and greenhouse gas emissions, he says.

 
 The administration is expected to act quickly to enact its energy policies. "I think this administration wants to really push the envelope and really push the industry," Noyes says. "The administration really wants to challenge the scientific, educational and business communities to come up with solutions to our energy problems-and come up with them quickly."
 
 Carbon and Indirect Land Use
 Carbon will be a primary issue facing the biodiesel industry in the future. "I think there has really been a sea change in administration here," Noyes says. This was demonstrated during Obama's first week in office when he issued a memorandum to the U.S. EPA. The memorandum requested that the agency reconsider a March 2008 decision to deny California's application for a waiver that would allow the state to adopt strict limitations on greenhouse gas tailpipe emissions. "[This also] looks like an early indicator that the Obama administration wants to see innovation from the states," Noyes says. 
 
 The establishment of a federal low-carbon fuel standard is listed prominently in the president's energy agenda. Industry leaders agree that a federal standard or carbon cap-and-trade program could significantly benefit the industry. "A low-carbon fuel standard or cap-and-trade scheme could potentially rapidly increase the amount of biodiesel used in the market," says Sara Taylor, executive director of corporate affairs for Renewable Energy Group Inc., a producer and marketer of biodiesel in Ames, Iowa.
 
 Frohlich agrees that a low-carbon fuel standard will benefit the biodiesel industry. "The U.S. biodiesel industry makes a low-carbon fuel that is produced in a sustainable manner, and the National Biodiesel Board is confident that biodiesel can play a significant positive role in the efforts to mitigate carbon emissions and address climate change," he says. "Those [carbon programs] are still big ifs at this point," Taylor says. "But, we know that they are goals that are certainly being discussed-and being discussed at an increased pace."
 
 One issue that is not clear is the administration's position on indirect land use. As part of the proposed rulemaking for RFS 2, EPA must develop a metric to measure indirect land use and life-cycle carbon emissions. "I don't think we know where the administration stands on that," Taylor says. "We know [the administration] is very supportive of biodiesel … but we've not yet heard them address international indirect land use."
 
 As these metrics are developed, it's going to be important for the biofuels industry to actively participate in the process, Noyes says. "The biofuels industry as a whole is going to have to spend a lot of resources and a lot of attention understanding the nitty-gritty of how those regulations are being developed, and participating in that process," he says. "The key issue being when a fuel gets assigned a particular value in those systems, that becomes the truth for that policy or regulation and there is oftentimes no changing it."
 
 "We do need to be very concerned that the science behind indirect land use … is sound, fair and balanced, and doesn't lay blame for all the deforestation issues around the world at the feet of U.S. biofuels producers," Taylor says. It's important for the industry to see more transparency from EPA in how those metrics are being determined, she says.
 

 The Administration
 According to industry leaders, any new biofuels policies need to be grounded in sound science, which the Obama administration is expected to emphasize. This focus on science is clearly reflected in the people Obama has chosen to fill administrative postions. 
 
 The most notable example was the appointment of Energy Secretary Steven Chu. "There usually aren't Nobel Prize winners in the cabinet," Noyes says. "But, it's a great thing to have one." Taylor says she thinks Chu's experience could be of enormous value to the biodiesel industry. "The one thing about Mr. Chu that I think gives people optimism is that he is a scientist and brings that background to the administration."
 
 The appointment of Agricultural Secretary Tom Vilsack has also received strong support from the biofuels industry. "Secretary Vilsack is unquestionably a positive figure influencing the biodiesel industry," Frohlich says. "His executive experience as governor of a large energy and agriculture producing state, along with his unwavering support of biofuels reflects both his and President Obama's commitment to biodiesel."
 
 Another administrative appointment that demonstrates President Obama's commitment to his energy policies was the selection of Carol Browner as the White House energy coordinator, or energy czar, and the appointment of Lisa Jackson as EPA administrator, which brings a lot of regulatory experience to the administration. The administration's commitment to clean energy and climate change is further demonstrated through Secretary of State Hillary Clinton's appointment of Special Envoy for Climate Change Todd Stern, which reflects the administration's intention to address climate change on a global level. 
 
 Industry Wish List
 Although leaders in the biodiesel industry are confident the Obama administration's energy policies will prove to be positive, they have identified some specific actions that need to be taken in the short term. Most importantly, the industry would like to see a multiyear extension of the biodiesel tax incentive. "The current year-by-year extension leaves producers without any long-term certainty and less likely to invest in the future," Frohlich says. "A multiyear tax extension, such as the one that was implemented from 2004 thru 2007 would establish certainty in the biodiesel industry, providing the economic confidence to grow in both production and infrastructure." Taylor agrees that a long-term extension of the tax credit would help build investor confidence. 
 
 The economy is in a difficult state, Taylor says. She says a flexible loan guarantee program could help plants struggling to make it through this bumpy period. She also says a swift implementation of the RFS would help, noting it needs to be implemented in a way that acknowledges the government's true intentions. "At the same time, we are going to need the Obama administration to hold the line in not granting waivers, and sticking to the requirements of the RFS," Noyes says. 
 
 The biodiesel industry has been facing some real economic challenges, which has led to underutilized production capacity, Noyes says. "Hopefully the Obama administration recognizes that we've got underutilized biodiesel capacity in this country and around the world," he says. "We need to put that capacity back to work. We need to use that infrastructure that has already been created even while there is an interest in creating this new next generation of technology." 

 
 Erin Voegele is a Biodiesel Magazine staff writer. Reach her at <a href="evoegele@bbiinternational.com">evoegele@bbiinternational.com</a> or (701) 373-8040.

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President Barack Obama is challenged with guiding the U.S. through one of the most severe economic downturns in its history, and his energy policies are expected to be a cornerstone of his strategy. Industry leaders share their expectations for the new administration with Biodiesel Magazine.

Obama's Energy Team

When Seaport Biofuels installed the nation's first biodiesel blender pump in February 2008, company leaders believed it was the bud of a robust new branch to their business and a way to increase the market for biodiesel. After the first few weeks of offering its urban customers the choice of B20, B50 or B99, Seaport's vice president of finance, Travis Paulson, proudly proclaimed that sales were "through the roof" and that the company planned to help install more biodiesel blenders in the Seattle area. 
 
 A year has passed and the outlook from Seaport's business office is a bit different. "Sales have fallen quite a bit, not because of the pump but because of the market," Paulson says. In mid-February, Paulson told Biodiesel Magazine that Seaport was paying between 60 and 70 cents more per gallon for B99 than for standard diesel. With a spread like that it's impossible for higher biodiesel blends to compete with the lower-priced straight diesel, he says. As a result, Seaport has lowered the biodiesel percentages offered through its blender dispensers by at least half. Paulson says that by selling B50, B20 and B5 they can keep prices more competitive with diesel, and make sure their customers are happy and able to purchase the product. "That's the beauty of a blender pump," Paulson says, adding that having that flexibility is the No. 1 reason why station owners should want to invest in blender pumps. While the blender dispenser may not have turned out to be a boon for the retail gasoline business or the biodiesel industry quite yet, Paulson is still optimistic. Biodiesel blender pumps are "the only way the industry is going to survive," he says.
 
 Dubuque, Iowa, gas station owner Ron Mussehl has come to a similar conclusion about the biodiesel blender dispensers. He installed one at Ron's Five Point Mart in July 2008. Mussehl says he "hasn't heard a whole lot" of feedback from his customers since installing the pump, but the fuel continues to sell so he's keeping it. Customers at Ron's station are primarily soybean farmers and they purchase biodiesel because they see it as a way of supporting themselves, Mussehl says. Why not use fuel derived from the very thing they grow to motor their pickups through their soybean fields? Mussehl believes that as time goes by, more of his customers will start to support farmers and become biodiesel fans. He says he installed a blender dispenser now so he will be ready when demand picks up in the future. Mussehl offers blends with no more than 5 percent biodiesel so he hasn't been as heavily impacted by the diesel-biodiesel price differences as Seaport has in the Pacific Northwest. For now, Mussehl says he probably won't increase the blends offered at his pump in the summer months because he feels the local market is happy with the B2 and B5 that are currently offered at Ron's Five Point. 
 
 How the Pumps Work
 All fuel blender dispensers operate in the same basic fashion. Fuel is supplied to the pump from two separate storage tanks-one standard diesel and one biodiesel. For the consumer it's as easy as pushing a button to select a desired blend of fuel. From there, the dispenser does all the work. Inside the pump are two sets of hydraulics with proportional blending valves, one for each feedstock. Electronics in the valves control the ratio of each fuel flowing through the hose to the consumer's tank, resulting in a B2, B20, or whatever desired blend the pump has been programmed to release. At Mussehl's station, for example, his blender pump is supplied by one storage tank filled with standard diesel and another filled with a B5 blend. Customers who select B5 receive fuel directly from the B5 tank while those who opt for B2 receive a 60/40 blend from the two storage tanks. 
 
 Fuel dispenser manufacturer Dresser Wayne designed the pump that's being used at Ron's Five Point. Scott Negley, Dresser Wayne's North American product management director, says that because standard diesel dispensers have the same components as gasoline dispensers, the same blending dispensers that are commonly used for blending gasoline can be used for biodiesel. Thus the price for a blender dispenser compared with a nonblending dispenser is no different. Converting a standard pump to a blender pump is also a possibility, but only for certain types of fuel dispensers, Negley says.
 

 Boosting the Industry 
 Blender dispensers are certainly a new way for biodiesel to enter the consumer market, but not everyone believes that they alone will be the saving grace of the industry as indicated by some retailers. National Biodiesel Board Chief Executive Officer Joe Jobe says it would be a stretch to claim that blender pumps are the best option available to keep the industry afloat. "Blender pumps will be a great help in certain markets, and will be especially helpful in new stations that are going in, as well as stations that are upgrading or adding pumps, tanks, islands or blend offerings," he says. "This represents an important segment of the market and the industry, but it might be a bit of an oversell to suggest that this new segment is going to be the singular savior of the industry." He says that a combination of both energy policy change and added infrastructure will be the key to expanding biodiesel use in the United States. "Efforts to achieve reasonable economic competitiveness with diesel fuel remain the near, medium and long-term challenge for the industry, with each requiring different objectives," he says. Nonetheless the NBB strongly supports the increased availability of blender dispensers for biodiesel.
 
 Negley says there are several obstacles facing retailers who might be considering placing a biodiesel blender pump at their filling station. Perhaps the most pressing issue is the ability to supply fuel for the trucking industry. According to Negley, the ultra-high capacity diesel dispensers used to fill Class 8 trucks lack the proportional blending valves required for blender dispensers. For now, drivers of semi-trucks have no choice but to pump whatever single diesel blend is available at a particular filling station. The NBB says that over-the-road semi-trucks are the single largest component of the diesel engine category in the U.S. so if a manufacturer were to design a blender pump for use with big rigs the impact on the biodiesel industry could be substantial. There are currently no ultra-high capacity biodiesel blenders in the works, however, as interest increases, new alternatives should 
 become available, Negley says.
 
 Yet another obstacle faced by would-be blender dispenser operators is the Underwriters Laboratories Inc. The not-for-profit safety organization issues certifications for thousands of products each year but, according to UL spokeswoman Michelle Press, the UL "has not certified blender dispensers for use with biodiesel and has no active submittals on biodiesel blender pumps." The lack of UL certification means that while manufacturers might be offering the product and stations might be installing it, its safety has yet to be certified by the UL. John Drengenberg, UL consumer affairs manager, says they are committed to supporting new technologies and that the goal is to "get them approved." While they have not received a request for biodiesel blender dispensers, they are currently working on a manufacturer's submittal for a blender dispenser for use with ethanol, he says. Because products are subjected to rigorous testing before receiving UL approval, Drengenberg declined to estimate when the blender dispensers might receive UL certification. 
 
 Although UL certification isn't required for a product to be lawfully used, the seal of approval aids in the regulation process. Drengenberg says there are more than 5,000 local inspection agencies throughout the country that determine what products are locally acceptable. "Most of them know what the UL is," he says, adding that local inspectors look for the UL label on products to help determine whether a product can be safely used in their area. Already installed blender dispensers may or may not be UL approved when the organization finally releases its regulations. Drengenberg says they will continue to work with the industry to develop new requirements as needed.
 
 One item related to biodiesel that the UL has made recommendations on is the percentage of the fuel to be safely blended with standard diesel. "For the purpose of maintaining the UL listing on the dispenser we recommend using up to B5 [but] the components in our standard models are compatible up to B20," Negley says. "We are waiting for UL to publish a standard similar to that done for higher ethanol blends." If and when the UL does publish recommendations for higher blends of biodiesel, climate will continue to play a role in dictating which blends can be offered at blender pumps. "A high concentration biodiesel feedstock can create problems when the product is sitting idle in the dispenser prior to the blend valves," Negley says. 
 
 Biodiesel blender dispensers are clearly far from becoming a mainstay in the retail fuel market. While the positives are many, regulatory issues vary from region to region and, as with any new product, investing in the idea can be a bit of a gamble. Blender dispenser veteran Paulson suggests those interested in blender dispensers take the time to do the research before investing. "You don't want to put a dispenser out there that you'll have to tear apart because they're not cheap," he says. "Do your homework and take the time to contact people who have the dispensers and work with them." 
 
 Kris Bevill is a Biodiesel Magazine staff writer. Reach her at <a href="mailto:kbevill@bbiinternational.com">kbevill@bbiinternational.com</a> or (701) 373 8044.

Seaport Biofuels Vice President of Finance Travis Paulson, left, and President Randy Thomas/PHOTO: SEAPORT BIOFUELS

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Fuel dispensers that offer up to three different blends of biodiesel are relatively new to the retail market. Although the concept is simple, the blender pumps have been slow to catch on. Biodiesel Magazine talks to the experts about whether the dispensers will increase the market for biodiesel, and what obstacles are preventing their widespread use.

Beneficial Blending

Conservation tillage is a widely recognized and accepted practice that's included in many efforts to define sustainable biofuels. In fact, biodiesel producers won't be alarmed by many of the broad principles that are being proposed to define sustainability but, with all of the diverse groups involved, working out the details won't be easy. Biodiesel Magazine takes a closer look at three approaches to defining sustainability.

 
 NBB's Sustainability Principles 
 The National Biodiesel Board's sustainability task force introduced its sustainability guideposts at the 2009 National Biodiesel Conference in San Francisco in early February (see sidebar below). Task force Chairman Emily Bockian Landsburg, in her remarks to conference attendees, encouraged biodiesel producers to conduct regular sustainability accounting. "There are important business reasons to do this sustainability accounting besides the ethical reasons," she said. "What are the externalities in the market? Are there conditions that are not impacting the market now, but in the future-be they regulations, supply and demand or public opinion? Seeing these issues keeps you on the cutting edge and keeps the industry ahead of the curve. It pays to do sustainability accounting." 
 
 The response to the NBB's sustainability principles at the conference was overwhelmingly positive, Bockian Landsburg says, and came from both small and large producers, farmers and distributors. "Most people are in this industry because they believe in the sustainability of the product," she says. "They're eager to set the record straight about the ways we're sustainable, and they're interested in future improvements." The NBB sustainability principles were intentionally built on the work done by others including the international Roundtable for Sustainable Biofuels and the Sustainable Biodiesel Alliance, a U.S.-based nonprofit, Bockian Landsburg says. In turn, both of those groups built their principles on the work of others, engaging in a diverse dialogue among various stakeholders including producers, farmers, distributors, environmentalists, academics and government representatives. The biggest difference with the NBB's efforts, Bockian Landsburg says, is that while the RSB and SBA are laying the groundwork for certification systems, the NBB is not. She expects that the task force will further elaborate on the principles and share tips, recommendations and best practices for improving the industry's sustainability performance. She also expects the NBB task force to reach out to the environmental community. "Everybody in the industry can get more involved with national and local environmental groups, listen to what they say and share correct information about the biodiesel industry," she says.
 
 RSB Version Zero
 The NBB guideposts essentially parallel the internationally developed principles found in Version Zero written by the RSB. The NBB principles combine four of the RSB principles that address natural resources into one overarching principle. Published last fall, Version Zero lays out 12 principles for sustainability, followed by guidance statements that further describe the intent of the broad principle. The RSB solicited stakeholder comments through a series of outreach meetings this winter, including one held after the closing of the National Biodiesel Conference in San Francisco. The meetings indicated wide support for the principles, says RSB Americas Coordinator Matt Rudolf. Once that support was confirmed the discussion quickly moved to measuring compliance. Even in the consultation principle that would seem to be rather straightforward, Rudolf says, participants wondered how large biofuel producers would be distinguished from small ones. The question arose because the principle requires large proposed projects to conduct environmental and social impact assessments and suggests small projects may require assistance or modified assessment requirements. 
 
 For American producers, several of the RSB principles seemed obvious, such as following applicable laws or providing a safe working environment free from discrimination. Some principles appear to be aimed at developing countries, with requirements for no slave or child labor, and a call for no violations of land rights. Other principles illustrate a well thought out and balanced global perspective on tough issues such as food security. The RSB food security principle calls for producers to make full use of waste and residue feedstocks, to use degraded, marginal or underutilized land, and to seek yield improvements that maintain food supplies. The RSB suggests biofuel projects could plan to take the maximum food value from feedstocks and use the remainder for energy, to plan for intercropping of food and fuel crops or to offset food security impacts via other economic instruments. 
 
 Producers commenting on the greenhouse gas (GHG) reduction principle considered the phrase "significantly reducing GHG emissions as compared to fossil fuels" meaningless, Rudolf says. The reaction to the principle guidance statement on GHG emissions gives clues as to how this contentious issue may play out as it was negotiated by a working group representing several view points. The principle calls for a methodology to be developed that is not susceptible to subjective assumptions or manipulation. It says the fossil fuel reference shall be global, based on international projections of fossil fuel mixes. It also calls for continuous reduction in GHG emissions from biofuel production over time, and the development of an incentive mechanism to promote those biofuels with significantly higher reductions over others. To read the principles and guidance statements in their entirety, and offer comments online, follow the links to Version Zero at <a href="www.bioenergywiki.net">www.bioenergywiki.net</a>.
 

 Once the comment period is closed, the RSB expects to publish Version One in June and move toward implementation. Key indicators for each of the principles will be written for use in certification systems. In anticipation of implementing the global sustainability standards, the RSB made changes to its governance structure in January. Its open membership will be organized into 11 chambers representing stakeholder groups including farmers, biofuel producers, biofuel distributors, the financial community, rights-based nongovernmental organizations (NGOs), environmental NGOs, rural development and food security organizations, climate change organizations, trade unions, indigenous small-holder farmer organizations, and an 11th chamber combining governments, certifiers and consultants into one group. Each chamber will elect two members to a standards board that will be a decision-making body based on consensus.
 
 SBA Baseline Practices
 The SBA is moving toward certifying sustainable biodiesel under its protocols by 2010 and published its "Baseline Practices for Sustainable Biodiesel" in December. In February, SBA announced that Organic Valley would be the first to test the principles in a pilot program involving the cooperative's distribution system and farmer members. 
 
 Closely resembling the NBB and RSB principles, the SBA document provides a more complete outline of what one certification scheme will look like. The SBA principles incorporate environmental goals that address GHG emissions, energy conservation, soil, water and air resources, biodiversity conservation, genetically modified organisms (GMOs), agrochemicals and next-generation feedstocks. Social principles cover food security concerns, local communities and workers, and local consumption. Those overarching principles are then separately applied to feedstock and biodiesel production.
 
 The SBA system reflects the organization's roots in the community-based, small-scale biodiesel movement that has long championed sustainability with many values that parallel the organic agriculture movement. SBA's executive director, Jeff Plowman, says the group is pleased with the response they've received from the industry, adding that some had problems with the SBA stance on GMOs. "SBA baseline practices are intended to be feedstock neutral but not technology neutral," he says. "It's important to ensure that new feedstock choices and next-generation technologies are safe and noninvasive before commercialization." Plowman adds that the SBA's work targets biodiesel and is limited to the United States.
 
 Many of the farming practices outlined in the feedstock section are well-known conservation practices widely used in American agriculture, but the SBA takes a cautious approach to GMOs under the document's ecosystem and biodiversity section where it says sustainable biodiesel feedstock producers shall "avoid using genetically engineered crops unless proven safe by independent third-party certification." The baseline practices ask that GMO use be reported and documented, and measures be taken to prevent the release of genetically engineered organisms into the environment. Similarly, pesticides are not banned as they are in organic standards, but the SBA sustainability practices do call for minimizing pesticide use. The document also calls for using the highest biodiesel blend practical or available in all diesel equipment on the farm where bio-diesel feedstocks are produced.
 
 The document's second section applies broad sustainability principles to biodiesel production. In addition to meeting the appropriate air permits, the baseline practices call for evaluating and controlling fugitive emissions especially regarding methanol. Sustainable biodiesel producers are expected to eliminate waste where possible and handle wastes in an environmentally responsible manner. It recommends sustainable biodiesel plants support other industries that are locally owned and environmentally responsible, using locally produced feedstock. The baseline practices also call for sustainable biodiesel producers to document quality control and meet or exceed ASTM standards.
 
 Opportunity Not Threat
 An underlying assumption of the frameworks profiled here is that the certification systems for sustainability will be voluntary and the market will reward biofuel production that complies. Doug Hooper, chief executive officer of biodiesel distributor Canadian Bioenergy Corp., suggests that those who are developing sustainability criteria look to the forestry and construction industries for examples of successful sustainability standards. There are several groups certifying sustainable logging practices for the forestry industry. In the construction industry, the U.S. Green Building Council developed a suite of standards for a green building rating system known as LEED (Leadership in Energy and Environmental Design). It took a long time to develop both of these initiatives into a fully articulated system, Hooper says. The collaborative effort of industry, regulators, environmentalists and academics successfully developed a set of peer-reviewed sustainability metrics against which products can be measured. Accomplishing that for biodiesel and ethanol will give the industries a means to deliver on their promise to consumers, he says. "There's a big opportunity in this discussion to confirm and affirm that biofuels are sustainable," he adds. "Will that have value? If you look at the forestry and construction industries, you can say yes."

 
 As chairman of the sustainability committee of the Canadian Renewable Fuels Association, Hooper is closely watching the development of sustainability standards. CRFS and the Canadian government launched efforts this winter in preparation for implementing the Canadian renewable fuels standard next year. "My sense is that in the next couple of years there will be an emerging consensus," he says. "The process is important-to be inclusive and open with input from academics, farm communities, ag processors, biofuels processors, distributors, environmentalists and government." Hooper's company, Canadian Bioenergy, participated in the environmental and GHG working groups of the RSB. He expects GHG measurements to be initially based on the life-cycle analysis (LCA) for biofuels involving direct attributes. The LCA for biofuels plants is already fairly well modeled, he says, while there are still improvements needed in the data to fully develop the agricultural LCA. 
 
 The indirect, or consequential, impact of biofuels on GHG reduction is a different story. In the past year, environmentalists have attacked biofuels on the basis that the growth in demand for biofuel crops in the U.S. is increasing the conversion of land to crops in other countries. They contend that GHG emissions from those indirect land conversions need to be assessed to U.S. biofuels. "It's horrendously complex to model," Hooper says. "There is far more impact from the European and U.S. trade policies or petroleum prices or trade barriers than can be attributed to biofuels, but how do you measure that?" Hooper also questions efforts to set a biofuels standard that starts at a 50 percent reduction in GHG emissions when compared with fossil fuels. "It makes no sense," he says. "If we're trying to solve the carbon question, we should accept 5 percent better. Better is better. Set 50 percent as a goal, yes, but not as the bar where you pass or fail." 
 
 Susanne Retka Schill is a Biodiesel Magazine staff writer. Reach her at <a href="mailto:sretkaschill@bbiinternational.com">sretkaschill@bbiinternational.com</a> or (701) 738-4922.

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Producing sustainable biofuels will require conservation tillage practices and much more.

The Search for Sustainable Solutions

First-generation biofuels are based on commonly available agricultural commodities such as wheat or corn. Second-generation biofuels process lignocellulosic biomass, such as corn stover, straw or wood. There is now a lot of talk about third-generation biofuels, which include algae-based biodiesel or ethanol. Seed Science Ltd. spent several months examining the technical and economic feasibility of algae-to-biofuels in British Columbia. As a result, skepticism has surfaced as to whether algae will be part of the biofuels future, whether in British Columbia or elsewhere.
 
 The advantage of growing algae instead of conventional agricultural crops is their very high growth rate, which in turn reduces the surface required to produce a given amount of biofuel. In addition, there is no competition for agricultural land useful for growing food crops since algae can be grown on land unsuitable for agriculture. Big names such as Shell Oil Co. and Chevron Corp., as well as the U.S. military, are investigating biofuels from algae. Over the past few years, some algae start-up companies have been able to leverage several million dollars of investment. So, surely consumers will soon see the first biofuels made from algae at gas stations, won't they?
 
 Photobioreactors
 This article, based on the study completed for the British Columbia Innovation Council, concentrates on photobioreactors, one of the main technologies being proposed to grow algae for biofuels. Photobioreactors, in the sense of this article, use natural sunlight to grow microalgae. They consist of glass or acrylic tubes, pumps, concrete and a greenhouse cover. At least 15 companies are known to be pursuing the photobioreactor concept, mostly in Canada and the United States. There is no doubt that growing algae in photobioreactors is technically feasible since successful operations doing just that exist today. There are, however, serious challenges in making this process cost-effective for low-value products such as biofuels.
 

 The first problem with photobioreactors is their high capital cost. Assuming major economies of scale, the authors used costs of $1.5 million per hectare. Yet, this was thought to be too low by a factor of two or three by industry experts consulted for this work. These capital costs alone will result in per-liter costs of $7 to $15 for oil made from algae, depending on available sunlight and the specific oil yield of a given algae species. This calculation already includes revenues from selling byproducts, such as algae cake, for ethanol production or as animal feed. Since this cost is higher than current diesel pricing, the article could end right here.
 
 There are, however, additional costs in photobioreactor algae production. Current experience with photobioreactors shows that anywhere from one to 15 people per hectare are necessary to operate such facilities. Even assuming as little as one employee per hectare still results in per-liter labor costs of $1.50 to $3 in industrialized countries. Finally, operational costs for fertilizer, electricity, maintenance, etc., will add another $3 to $6 per liter. Figure 1 shows the per-liter costs that were determined for producing biodiesel from algae oil. Equivalent results would be obtained when doing the same analysis for ethanol from algae starch.
 
 Table 1. Comparison of Base Case Capital and Production Costs for Three Algae Production Technologies 
 <center><img src="/images/upload/20090309125819.jpg" alt="" /></center>
 *Assumes that the algae cake is sold to an ethanol producer for its carbohydrate content
 SOURCE: SEED SCIENCE LTD.
 
 Fertilizer costs have increased greatly in past years, but major operational costs in algae cultivation are due to the consumption of electricity. The main difference between the cultivation of algae and conventional agriculture is that instead of the tractor moving over a field a few times per year, algae cultivation requires the constant movement of water 24 hours per day, seven days per week. The concentration of dry matter in photobioreactors is a few grams per liter. Assuming a concentration of 5 g/L, 19 metric tons of water need to be moved for every metric ton of algae harvested. In addition, photobioreactors require cooling for at least part of the year, even in moderate climates. Cooling can be provided either from cooling water, which means moving even more water, or via air conditioning. Using photobioreactors in warm climates may therefore result in a negative energy balance.
 
 Carbon Offsets
 What about the value of sequestered carbon in algae-based biofuels? In short, there isn't any. Atmospheric carbon is only sequestered for a short time until it's burned in an engine. Under existing biofuels mandates in most industrialized countries, there will be no opportunity to sell carbon offsets unless fuel production is additional, or beyond such mandates. The extra value of biofuels is reflected in their higher market value, as well as tax credits or exemptions. Even for cases where the use of algae-based biofuels would be additional and could generate carbon offsets, the value of such offsets by itself (expected to be between $15 and $50 per metric ton of carbon dioxide) can't counterbalance the high production costs.

 
 What about economies of scale or technology improvements? Economies of scale were considered in the analysis, using very generous assumptions. Some improvements could be made, including increased automation, genetically modified algae with higher oil yields and minimized light losses. On the other hand, the main components, such as concrete, glass and machinery, are unlikely to drop in price. Since there are limits to how much oil and starch algae can produce, the result is that photobioreactors can't produce biofuels competitively today and are unlikely to do so in the future. It's not slightly higher than fossil fuels, but by a factor of 10 to 15.
 
 High-Value Byproducts
 The possibility of producing high-value byproducts has also been examined, though in less detail. Initial results show that even very high-value byproducts, such as omega-3 fatty acids, can't improve bioreactor economics enough. Note also that algae producing a maximum of oil or starch don't necessarily produce the required amounts of high-value products. Therefore, one has to decide whether the production of biofuels or high-value products is the main business. If a high-value byproduct is required to reach financial breakeven, then the byproduct becomes the main product, whereas the biofuel is merely a byproduct. Production volumes would then be determined by the market size for the high-value product. Unless the market for high-value products is very large or unless such a large market can be created, algae-based biofuels from photobioreactors can only be produced in small quantities by companies catering to a niche market. Other (non-algae) biofuel production methods that are cheaper are therefore likely to dominate the market.
 
 Raceways and Fermentors
 Two other technologies to grow algae were also examined: open raceways and fermentors. The raceway also uses sunlight and carbon dioxide to grow biomass, but capital costs are much lower compared with photobioreactors (roughly by a factor of 10). Reliability and yields, however, are also lower, and the analysis couldn't confirm the possibility of producing biofuels in British Columbia cost-effectively using this technology, even with the most optimistic assumptions. All technical problems solved, the raceway may function cost-effectively in warm climates, where yields are expected to be higher. The fermentor is a quite different technology that uses no sunlight and an organic carbon source. According to the analysis, this technology comes closest to commercial viability. Nevertheless, it would need further improvements to become competitive with fossil fuels and to offer real life-cycle advantages over first-generation biofuels. Table 1 compares all three technologies examined.
 
 The verdict, based on the research, is therefore that algae research should concentrate on the two technologies identified (the raceway for warm climates and the fermentor). At the same time, other alternatives, such as using bacteria to produce biofuels, should be compared to using algae to see if they offer a bigger chance of success.
 
 These results may come as a surprise to many. They were, however, confirmed by a number of independent sources. The study, although intended to examine the feasibility of algae cultivation for biofuels in British Columbia, has yielded findings that also apply to other regions and worldwide. The 70-page report and appendices can be accessed at <a href="www.bcic.ca/media-and-press/media-releases/132-2009/598-high-technology-a-priority-for-agriculture">www.bcic.ca/media-and-press/media-releases/132-2009/598-high-technology-a-priority-for-agriculture</a>. 
 

 Martin Tampier is an energy consultant working under the name of Envint Consulting in Montreal. Reach him at <a href="mailto:martin.tampier@telus.net">martin.tampier@telus.net</a> or (450) 627-1003.

Large-scale algae-to-biodiesel production is getting tantalizingly close to reality. However, some highly touted production pathways may not be all they are cracked up to be.

A Sober Look at Biofuels From Algae

A sound strategy provides the foundation for all internal audit activity, including development of the internal audit function, audit planning and execution of regular audits. The organization gains considerable value from those activities.
 
 The internal audit function provides the board of directors, audit committee and management with a means for monitoring risks associated with asset protection, loss prevention and compliance efforts throughout the organization.
 
 Through assessing risks, illuminating needs for mitigation, providing assurance for operational compliance, and evaluating the effectiveness of internal controls, the internal audit function supports the organization's overall enterprise risk management objectives.
 
 Internal audit findings enable the board of directors and management to make more informed decisions, thereby enhancing organizational performance. The internal audit department's monitoring and oversight activities also provide continual assurance to all stakeholders.
 
 Forming an Internal Audit Strategy
 Industry compliance statutes, stock exchange membership rules or other provisions imposed by an external regulatory or governance entity may require an organization to establish an internal audit function. While such requirements must be met, the internal audit strategy needs to be based on agreed-upon business strategies to be truly effective.
 
 Each organization is unique and affected by various factors, such as its industry, products or services, market, the geographic locations of its operations and customers, the organization's risk appetite and its internal culture. Business strategies acknowledge those factors.

 
 Business strategies also recognize that such factors vary in importance. With an internal audit strategy that recognizes such factors and their relative importance to overall business strategies, the internal audit function can play a crucial role in promoting long-term organizational growth and health.
 
 The Internal Audit Charter Articulates Strategy
 The internal audit charter articulates the internal audit strategy and provides direction for all related activities, including internal audit function development and management, audit planning and execution of audits. While specific structure and wording will vary among organizations, all internal audit charters should address the following elements and principles:
 Purpose and Scope The internal audit function exists to provide objective assurance for the organization. In performing its services, the internal audit department needs to deploy a systematic approach in evaluating the effectiveness of risk management, governance and internal control processes. Such evaluations address processes and systems for 
 complying with relevant laws and regulations; processes and systems for safeguarding assets and verifying the existence of those assets; communication and interaction among various governance groups; comparisons of operations results to established goals and objectives; comparisons of operational plans to executions of processes; quality control and continuous improvement efforts.
 
 Accountability and Oversight In larger corporations, the chief audit executive position typically has responsibility for overseeing the internal audit function on behalf of the audit committee. In other organizations, that duty can be assigned to the internal audit director. The audit committee is responsible for hiring that individual and reviewing that person's performance. In some organizations, a compliance and risk officer may also have responsibilities for assessing and mitigating risk. 
 
 The chief audit executive or other leader of the internal audit department has direct communication with the audit committee and must prepare and issue a report to appropriate individuals and parties following each annual audit. That individual reports on the adequacy of the internal audit department's resources, and also provides periodic assessments to the audit committee on internal audit activities and findings.
 
 Independence and Objectivity While the leader of the internal audit function reports to a member of executive management at the administrative level, he or she reports to the audit committee at the functional level. This division provides the internal audit department a dual reporting and accountability relationship with executive management and the audit committee. This balance is important to maintain independence and objectivity. To further maintain independence and objectivity, the internal audit department cannot have operational responsibility over any of the activities it reviews, nor can it develop procedures, systems, or engage in any other activities typically subject to audit.
 
 The internal audit department must be free from management suggestions or coercion regarding its activities and decisions, including audit timing and frequency, scopes of audits, and content of reports. 
 

 That independence enables the internal audit department to provide findings that are not influenced by conflicts of interest or any explicit bias.
 
 Authority and Access The internal audit department needs to have full, unrestricted access to all organization activities, functions, physical property and records, and personnel. 
 For organizational support and to ensure open communication, through the chief audit executive or the internal audit director, the internal audit department must have full access to corporate management and audit committee. The internal audit department must also determine the allocation of resources, frequency of audits and techniques needed for audit activities.
 
 Duties and Responsibilities The internal audit department must maintain a professional staff to meet audit charter requirements, and develop an annual audit plan using appropriate risk-based methodology. The internal audit department is responsible for implementing the annual audit plan, reporting its findings, and establishing a quality assurance program that monitors the effectiveness of current efforts and emphasizes the importance of continuous improvement. 
 
 The internal audit department needs to provide the audit committee with significant measurement goals and results for comparison. The department must also evaluate periodic changes and events that affect risks.
 
 Professional Standards and Ethics The internal audit function needs to comply with the Institute of Internal Auditors' International Standards for the Professional Practice of Internal Auditing. 
 
 The standards define basic principles for internal auditing, provide a framework for performing internal audit activities, establish a basis for evaluating internal auditing performance, and foster improved organizational processes and operations.
 
 The overall standards incorporate specific standards for attributes, performance, and implementation. The institute's code of ethics also includes a code of conduct that emphasizes the importance of maintaining integrity, objectivity, confidentiality, and competency in all internal audit activities.
 
 Importance of Strategy for Ongoing Internal Audit Activities

 Organizations operate in dynamic environments that are continually subject to external change. Internal environments change, too, and the internal audit strategy needs to continually assess the risk potential that always accompanies change. Significant change scenarios that the internal audit strategy must adapt to include: 
 
 ›New Organizational Structure An organization's structure may change, for example, from a partnership to a publicly-held corporation. Such a transition brings new compliance and governance requirements. In response, the company must implement related policies, processes and systems, along with necessary monitoring and oversight.
 
 ›Turnover Among Key Personnel Key individuals leaving the organization can signify a substantial loss in knowledge, talent and insight. People taking their places may possess considerable positive qualities, too, but require time to acclimate themselves to new roles and responsibilities, and to the organization itself.
 
 ›Implementation of New Technology While change management policies address introductions of major information technology hardware or software capabilities, difficulties unforeseen by the vendors or the information technology department may emerge in migrating financial and operational processes to that new technology.
 
 ›Mergers and Acquisitions Mergers and acquisitions require assimilating all of the differences that exist between two businesses into one cohesive organization. Even with careful preparation, such assimilation may require resolving differences not recognized during initial planning. 
 
 ›Re-engineering and Restructuring Initiatives A re-engineering or other internal restructuring effort encompasses reorganizing business units and departments, reassigning individuals to new jobs and responsibilities, and devising new processes. While such a transformation delivers long-term benefits, it also requires implementing new practices and performance measures, as well as new monitoring and oversight activities. 
 
 ›New Product Launches Introductions of new products or services may bring unanticipated challenges in producing or delivering those items, as well as uncertainty in how well those new products or services will be received by customers. 
 
 ›Significant Financial Growth Substantial earnings or sales growth may create difficulties, too. Supporting such growth can strain the capabilities of existing equipment, facilities, information technology infrastructure, personnel and control processes. That can lead to setbacks that negate previous gains. The internal audit strategy also needs to incorporate quality assurance and continuous improvement activities. Such activities include assessing the efficiency and effectiveness of the internal audit department based on established standards; evaluating annual risk assessments; examining techniques and methodology used for testing controls; ensuring that audits and conduct comply with the Institute of Internal Auditors' standards and code of ethics.
 
 Long-Term Benefits of Sound Internal Audit Strategy

 A sound internal audit strategy provides the foundation for internal audit development and planning, and provides the direction for all internal audit activities, including annual audits. Based on that strategy, the internal audit function delivers considerable value to the organization.
 
 Internal audit findings address a range of operational aspects and those reflected in financial reports. Those findings give the board and management greater context and a broader frame of reference to apply in evaluating financial statements.
 
 While generating insight for evaluating current or past results, the internal audit function also plays a vital proactive role in enhancing long-term organizational performance. By continually monitoring risks associated with asset protection, loss prevention and compliance efforts, the internal audit department enables the organization to assess the likelihood and potential impact of a related risk. 
 
 Using enterprise risk management methodology, the organization can then determine how those identified risks align with the company's risk appetite, and determine what steps to take to mitigate any unacceptable risks. That allows the organization to respond effectively to change. That continual monitoring and oversight provides assurance and promotes confidence and trust among all stakeholders. 
 
 Alyssa Martin is the Dallas executive partner and the firm-wide partner in charge of the risk advisory services group at Weaver and Tidwell LLP. Reach her at (817) 332-7905 or (972) 448-6975.

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Internal auditing is vital to enhancing a company's long-term organizational performance. Continually monitoring compliance efforts enables a business to assess and handle its risks.

Strategy Formation Nurtures Internal Audit Value

With due respect to Maine, as California goes, so (it appears) goes the nation. 
 
 Last March I wrote about how states-particularly California-continue to drive renewable fuel laws and policies. California's economy is by far the dominant force in the U.S. economy. According to sources, if California were an independent nation, its economy would rank between the seventh and 10th largest in the world. California's impact on the transportation sector is equally significant. Approximately half of all the energy used to drive California's economy is consumed to fuel its cars, trucks and buses. Indeed, California uses more than 16 billion gallons of gasoline per year, apparently enough to drive a car getting 30 miles per gallon to the sun and back three times.
 
 Given California's weight, it wasn't surprising when President Barack Obama's administration, acting through the U.S. EPA, recently decided to reconsider the EPA's March 2008 decision in which it denied California's earlier request for permission to set its own standards for controlling greenhouse gas emissions from motor vehicles. 
 
 Responding to a Jan. 21, 2009, letter request from the California Air Resources Board, Obama signed a Jan. 26 memorandum directing the EPA to reassess whether the EPA's decision to deny California an earlier waiver was appropriate in light of the Clean Air Act and the EPA's past actions regarding previous requests by the state.
 

 To refresh, in March 2007, former EPA administrator Stephen Johnson found that California's request to adopt separate greenhouse gas motor-vehicle standards was far different than previous California waiver requests, all of which had been granted. The EPA noted that greenhouse gases are global in nature and contribute to global climate change, which "poses challenges for the entire nation and indeed the world." Unlike the emissions covered by past waiver requests, the EPA concluded that greenhouse gas emissions are by definition global and that the challenges presented by climate change are not unique to California.
 
 In its reconsideration request, CARB was blunt in its assessment of the EPA's previous denial. It states that Johnson misinterpreted the Clean Air Act by establishing new and "flawed" tests, and then intentionally misapplied the facts to the invented test in order to deny the waiver. According to CARB, Johnson wrongly concluded that in allowing California to set its own motor-vehicle emission standards, Congress intended to limit California's standards to those addressing only local or regional factors unique to the state's topography, meteorology, climate, or human and vehicle population. Instead, CARB is asking the new EPA administrator, Lisa Jackson, to evaluate California's need for greenhouse gas standards not "in isolation" but instead as "part of the state's complete motor-vehicle emission-control program." CARB argued that while the issue isn't necessarily determinative, one reason for the waiver is that California does in fact have more pressing air quality and other resource impacts than other parts of the nation.
 
 On Feb, 6, 2009, the EPA issued a notice asking for public comments no later than April 6, 2009. Jackson is almost certain to reverse the decision of her predecessor and grant California's waiver request. In initiating the reconsideration process, Jackson stated that there are "significant issues" surrounding Johnson's denial, and that the earlier denial was a "substantial departure" from the agency's "long-standing interpretation" of the Clean Air Act and its treatment of previous California waiver requests.
 
 Meanwhile, an appeal of Johnson's decision is presently before the U.S. Court of Appeals in Washington, D.C.
 
 Todd J. Guerrero is an attorney practicing with the Agribusiness and Energy group at Lindquist & Vennum PLLP. Reach him at <a href="mailto:tguerrero@lindquist.com">tguerrero@lindquist.com</a> or (612) 371-3211.

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Obama Administration Revisits California Waiver Decision

Sustainability is the ability to meet the needs of the present without compromising the ability of future generations to meet their own needs, says Gro Harlem Brundtland, an internationally renowned climate change expert. In the biodiesel industry, educating customers, partners and communities about the benefits of sustainability is fundamental to marketing success.
 
 Climate change has already begun to wreak havoc and Mother Nature's need for balance and diversity must be addressed. The good news for business is that attending to environmental and social sustainability can improve existing markets and create new ones: green-collar job creation feeds local economies by keeping more of our energy dollars at home, and it provides energy security. Meanwhile, increased operational efficiency, through greater use of renewable resources, recycling and conservation, not only minimizes environmental impact but cuts costs.
 

 In the biodiesel business, sustainability is related to fuel quality, feedstock diversification and production efficiency. Fuel quality, a bottom-line issue, cannot be overstressed. 
 
 Without it, consumer and industry confidence-let alone market acceptance-would not exist. Even when more sustainable feedstocks are used, if the "biodiesel" that is produced fails to meet ASTM specifications, it will be, by definition, unsustainable. Top notch quality assurance/quality control supply-chain protocols are imperative.
 
 Feedstock diversification has recently come into sharp focus because of the high cost of traditional virgin-feedstock oils and the food-versus-fuel debate. An alarming trend is laying much of the blame for soaring global food and feed prices squarely at the feet of biofuels. But a wealth of evidence shows that the real culprits are rising fossil-fuel energy costs, the declining dollar, and surging demand for food from a burgeoning middle class in Asia and Latin America.
 
 Commodity prices for food oils have demonstrated that insufficient feedstock diversity for biodiesel production does not make good business sense. In today's market, being able to utilize a multi-feedstock strategy can mean the difference between being in the black or in the red. It's important to understand the big picture. In spite of recent criticism, development of the biofuels industry by farmers using food crops has been highly advantageous.
 
 Farmers have helped lay the foundation for investment by the financial community to help industry develop next-generation, sustainable feedstocks whose production does not require arable land and water or traditional agricultural means. We are only a few short years away from commercialization of groundbreaking feedstocks including algae and cellulose, to make sustainable fuels to power our cars, trucks, boats, trains, airplanes and generators, and to heat our homes and buildings.
 
 Some companies have been using recycled and second-use fats and oils to produce sustainable biodiesel and more are exploring these feedstocks as commodity prices for more traditional feedstocks increase. At Tellurian, not only have we focused on these more sustainable feedstocks, but we have also deployed a strategy of outreach and education to help customers and partners understand the business benefits of sustainability. One example of this effort is our partnership with Golden State Foods, one of the largest diversified suppliers to the quick service restaurant industry.
 
 For a classic closed-loop solution, we will be using biodiesel produced from used cooking oil collected from Golden State Foods customers such as McDonald's to power Golden State's delivery truck fleet. One misconception that we often encounter is that biodiesel processed from recycled materials cannot meet the same quality standards as biodiesel produced from virgin vegetable oils. That is not accurate, although extra engineering steps and oleochemical expertise are required to effectively and consistently process this material into high-quality commercial-scale fuel. But, done correctly, the economic and environmental benefits of recycling a lower-value material into a high-value energy product are obvious. This biodiesel will leave the lowest carbon footprint, provide the highest energy balance, and answer those rightly calling for food- and forest-friendly renewable fuels.
 
 Clearly, using diverse feedstocks and understanding the characteristics of the fuel thus produced are crucial to a successful marketing strategy. Helping distributors, fleet managers, original equipment manufacturers and other key stakeholders recognize and differentiate the benefits of sustainability is equally important. Both will become increasingly crucial as the federal Renewable Fuel Standard kicks into high gear and society further comprehends the impact that fossil fuels have on climate change.
 
 Joe Gershen is vice president of sales and marketing for Tellurian Biodiesel. Reach him at <a href="mailto:jgershen@tellurianbiodiesel.com">jgershen@tellurianbiodiesel.com</a> or (310) 314-8246.

Sustainability, Feedstock Diversification: Marketing Biodiesel From Sustainable Sources

Web exclusive posted March 9, 2009, at 2:52 p.m. CST 

 
 The Roundtable on Sustainable Biofuels has extended the deadline for comment on Version Zero to March 27, the day after the last of multiple stakeholder meetings held around the world. A meeting is scheduled March 16 in Washington, D.C., along with meetings also slated to be held in the Dominican Republic, Argentina, Belgium, Malaysia and Kenya. The RSB is soliciting input on Version Zero of its global sustainability guidelines with a goal of publishing Version One in June. The process is moving towards a global sustainability standard to be used for verifying and certifying sustainable biodiesel and ethanol in a voluntary system.
 
 In a presentation to the RSB stakeholders meeting in Ames, Iowa, on March 3-4, Doug Berven, director of corporate affairs for Poet LLC, made the case for the ethanol industry, pointing to improvements in corn production and increases in water and energy efficiency in ethanol production. Berven cited recent studies showing the industry's impact in jobs, taxes paid and its overall contribution to the rural economy. Pointing to the promise of better sustainability performance from cellulosic ethanol, he said, "cellulosic ethanol is not possible without the foundation of grain-based ethanol."
 
 From the environmental community, Craig Cox with the Environmental Working Group, said the preeminent challenges of this century are to move away from fossil fuels as fast as possible while doubling food production, lifting billions in the world out of poverty and living with the profound effects of global warming. He described a sustainable biofuel as making a meaningful contribution to reducing use of fossil fuels and not competing with food production for land and water. 
 A sustainable biofuel must substantially reduce greenhouse gas emissions compared to gasoline and, he said, "must conserve soil, water, watersheds and habitat and enhance resistance and resiliency under a volatile climate." 
 
 Other presenters included Bruce Babcock from Iowa State University, talking about indirect land use change; Ken Cassman from the University of Nebraska, talking about biofuels and climate change; Joe Colletti from ISU, talking on food security; Rick Cruse, also from ISU, talking on water and soil impacts from biofuels production; Cornelia Butler Flora, North Central Regional Center for Rural Development, talking about community consultation and impact assessment.
 
 The RSB is inviting new memberships, with a deadline of March 12 for applications to one of the newly organized chambers that will elect two representatives each to a new Executive Standards Board. The chambers divide the open membership into stakeholder groups such as trade unions, small and large farmers, producers, financial institutions, petroleum and transportation industry, food security non-government organizations (NGO), indigenous people's groups, conservation NGOs, and a general category for government representatives, certifiers and others.
 
 Visit <a target="_blank" href="http://www.bioenergywiki.net" rel="external">www.bioenergywiki.net</a> and follow the links to read and comment on Version Zero, and to access many of the presentations given at the stakeholder meetings.

RSB deadlines approach to comment on sustainability scheme

Web exclusive posted March 9, 2009, at 4:48 p.m. CST 
 
 Brazilian oil and biofuels producer <a target="_blank" href="http://www2.petrobras.com.br/ingles/index.asp " rel="external">Petrobras SA</a> unveiled its business plan March 4, which calls for investments in the order of $2.4 billion in biodiesel and ethanol production for the next four years. More than 91 percent of that investment is to be made in Brazil. 

 
 In all, Petrobras has earmarked $2.8 billion for its biofuels business, which includes expenditures of $400 million in infrastructure such as ethanol pipelines. Another $530 million has been earmarked for biofuel research. The total resources represent an 87 percent increase in investment compared to the previous business plan, according to company information.
 
 Of the $2.4 billion, 80 percent will be invested in ethanol, with the remainder invested in biodiesel. One of the company's goals is to produce 640 million liters (169 million gallons) of biodiesel in Brazil by 2013. The company expects to build a new plant in North Brazil, duplicate its Candeias plant and convert experimental plants in Guamare to commercial production. Production capacity at two other plants will be increased, the company said. A partnership with the Portuguese firm Galp Energia to produce biodiesel production in both Brazil and Portugal will continue. Deployment of a biodiesel production unit in Africa is also being planned.
 
 The Petrobras' goal for ethanol production is to reach 1.9 billion liters (500 million gallons) by 2013 aimed at the foreign market and 1.8 billion liters (480 million gallons) for the domestic market. "The idea is to sign partnerships yet this year, for four new ethanol production projects involving a foreign partner," the company said. Some of the increased ethanol capacity may be done through acquisitions, with one ethanol plant under analysis in Columbia. The company also has plans to develop second-generation technologies based on residual biomass feedstock.
 
 The announcement of its strategic business plan came two days after the company inaugurated its first unit to produce E3 in Japan in a joint venture with Japan Alcohol Trading called Brazil Japan Ethanol. BJE made its first delivery of E3 on March 2 to a gas station in Tokyo. Japan's Minister of the Environment Tetsuo Saito, Brazil's Ambassador to Japan Castro Neves, and Petrobras' General Manager in Japan, Osvaldo Kawakami, participated in an inaugural ceremony.

Petrobras commits $2.4 billion to biofuels

Web exclusive posted March 10, 2009, at 11:18 a.m. CST 
 
 In early March, the Indiana Soybean Alliance tested 250 gallons of a new cold climate Permaflo biodiesel in Alaska; the fuel was developed at Purdue University in West Lafayette, Ind. 
 
 Researchers from the University of Alaska-Fairbanks, the Alaska Agricultural and Forestry Experiment Station, ISA farmer-directors and Purdue agricultural engineering professor Bernie Tao drove two vehicles running on B100 from Anchorage to Fairbanks, a 360-mile trip passing through Denali National Park. One of the vehicles continued on 200 miles to the Arctic Circle where the group camped overnight using a generator powered by Permaflo biodiesel. The testing concluded March 9 with a University of Alaska-Fairbanks symposium on biofuels. The trip was documented on the <a target="_blank" href="http://www.indianasoybean.com/index.php?option=com_content&task=view&id=290&Itemid=290 " rel="external">ISA Web site</a>. 
 

 Purdue University researchers developed Permaflo Biodiesel using a novel process to create biodiesel with a cloud point as low as -55 degrees Celsius (-67 degrees Fahrenheit). The process involves using urea to separate saturated and unsaturated oil molecules. The saturated molecules bond with the urea and drop out of the solution with the remaining molecules used to make the Permaflo Biodiesel. According to the <a target="_blank" href="http://www.indianasoybean.com/index.php?option=com_content&task=view&id=287&Itemid=86" rel="external">ISA Web site</a>, the cold-flow fractionation process alters the chemical composition to improve the cold-weather properties.

Permaflo Biodiesel goes to the Arctic Circle

Web exclusive posted March 10, 2009, at 1:22 p.m. CST 
 
 Renewable diesel producer, Changing World Technologies Inc., announced March 4 that the company and its three wholly-owned subsidiaries filed for Chapter 11 bankruptcy protection. 
 
 According to CWT, the filing was done to preserve the value of the company because debt obligation deadlines were approaching and the company had been unsuccessful in obtaining outside financing.
 
 "CWT has significantly downsized its operations during this reorganization process, which included the laying off of the majority of its workforce," the company stated. CWT's three subsidiary companies are Resource Recovery Corporation Inc.; Thermo-Depolymerization Process LLC; and Renewable Environmental Solutions LLC. 
 
 The 8 MMgy CWT renewable diesel plant in Carthage, Mo., uses turkey waste in a thermal depolymerization process to make fuel for the stationary power market. Biodiesel and renewable diesel crossed paths when the Energy Policy Act of 2005 included subsidy provisions for biodiesel and renewable diesel, after which the IRS incorrectly interpreted "thermal depolymerization" to include "green" diesel coprocessed with petroleum feedstock in conventional oil refinery equipment. 
 
 The Chapter 11 case is pending in the U.S. Bankruptcy Court for the Southern District of New York under case number 09-10977. CWT will continue looking for more debt and equity financing to fund operations and perhaps even future expansion.

CWT files for bankruptcy protection

Web exclusive posted March 10, 2009, at 3:01 p.m. CST 

 
 Representatives from all sectors of the renewable fuels industry gave testimony at a March 4 hearing of the U.S. House Small Business Committee, requesting continued financial support for the struggling industry. The hearing, held to examine the state of the renewable fuels industry as related to the current national economic distress, was attended by members of the biodiesel, corn and cellulosic ethanol communities who all said that finances are the number one problem facing their industry.
 
 RFA Treasurer Nathan Kimpel stressed the importance of continuing to support the ethanol industry as it is today, as well as providing for the future cellulosic ethanol industry. "To do this, access to immediate necessary operating capital is critically important to help weather the current economic conditions facing the industry," he added.
 
 Manning Feraci, vice president of federal affairs at the National Biodiesel Board, pointed to several public policy benefits related to the use of biodiesel as a way to spur support from the committee. "We're not asking for new programs," he said. "We're not asking for huge new initiatives. What we're asking for, moving forward, is the maintenance of what we have now because it's been working." Feraci requested a continuance of the biodiesel tax incentive, among other things.
 
 Cellulosic ethanol pioneer, Verenium Corp., represented the emerging second-generation industry by way of its public affairs vice president, John Howe. He testified to several obstacles facing the fledgling industry, but reiterated that financing is by far the largest challenge. Even large, established companies are currently having trouble acquiring financing, "so for us, it's basically impossible," he said. "In the best of times private lenders won't take technology risks on energy projects, so we have reached a financing log jam." Howe continued to state that renewable energy producers now have no other place to go for funding except to the government.
 
 National Corn Growers Association chairman Ron Litterer voiced the need for the continued governmental support for the existing ethanol industry. "The well-being of our industry is threatened today by the declining state of our national economy," he said. "It is imperative that the existing grain-based ethanol industry and the accompanying infrastructure that has been built around that industry continue to prosper and remain viable in order to serve as a bridge for the next generation of renewable fuels."
 
 Committee chairwoman Rep. Nydia Velázquez, D-N.Y., pledged the Small Business Committee's continued support in enacting policies that serve to protect renewable fuels producers. "These goals are too important to fall by the wayside and as Congress shapes future energy policy, this committee will ensure that the small renewable fuel producers who have pioneered this field are not left behind," she said.

Renewables industry testifies for government support

Web exclusive posted March 10, 2009, at 1:30 p.m. CST 
 
 Two New Jersey farmers are testing growing pennycress as a feedstock for Albany, N.Y.-based biodiesel producer <a target="_blank" href="http://www.innovationfuels.com" rel="external">Innovation Fuels Inc.</a>, which currently operates a 40 MMgy biodiesel plant in Newark, N.J. The company plans to use locally grown feedstocks at the plant to produce biodiesel for local sale, according to John Fox, chief executive officer for Innovation Fuels.

 
 One of the farmers growing a test plot of pennycress for Innovation Fuels is Michael Lazewski of Manalapan, N.J., who said he is excited about growing a winter energy crop. "The great thing about pennycress is that it's a cycled crop," Lazewski said, "and so in the wintertime, after we harvest in November for our soybeans and corn, we go ahead and prep the soil for the pennycress for our winter. The crop basically rotates with our soybeans and corn and so we actually get a whole other season of planting-a winter season and a spring harvest-and then we get a fall harvest with our regular crop and so we're basically doubling the amount of production or output that we end up with."
 
 Lazewski said pennycress should be a beneficial crop for his farm. "Our farm is very rich in iron ore and other types of metals in the soil," he said, "and pennycress is something that really thrives on high-metal-content, high-iron-ore-content soils. It's not going to deplete our nutrients; it's only going to enrich our soil for the soybeans and corn in the spring.
 
 "It's like rotating," he continued. "Let's say if you did soybeans and corn in the spring and then the next year you rotated in maybe a potato crop to give it the nourishment, this seems to be the same type of thing. It's going to be able to revitalize our soil without having to take a year off. We're hoping that this will allow for a better crop in the spring for our soybeans and corn."
 
 Lazewski said the test plot covers approximately 1.5 acres. He said planting and harvesting pennycress should be a seamless process for a corn or soybean farmer. "It's the same equipment," he said. "We use a combine to yield the crop out of the ground and plant it with a grain drill, the same you would do for soybeans or corn. There are really no modifications to the equipment at all."
 
 Planting a winter crop is something new for Lazewski. "We're just waiting to see if any germination occurs," he chuckled, "because myself and my father and grandfather who are farmers realize that it's pretty tough to plant something in the winter and have it germinate in the snow and be able to be ready for the spring. We're hoping that the crop does what it does."
 
 Like most farmers, Lazewski said he is hopeful. "We'll see how the numbers work out when we get the pennycress out of the ground this spring," he said. "(Depending) how the yield turns out this spring, we might plant the whole place."

Farmers plant pennycress for Innovation Fuels

Web exclusive posted March 12, 2009, at 1:58 p.m. CST 
 
 St. Petersburg, Fla.-based Progress Energy Florida recently completed a successful test burn of fuel from <a target="_blank" href="http://www.newgenerationbiofuels.com" rel="external">New Generation Biofuels Holdings Inc.</a>, a Lake Mary, Fla.-based company that uses emulsification to produce fuel from biodiesel feedstocks. The test burn was completed at Progress Energy's Bartow Plant in St. Petersburg, Fla., the company said.

 
 Progress Energy Florida, is a subsidiary of Raleigh, N.C.-based <a target="_blank" href="http://www.progress-energy.com " rel="external">Progress Energy</a>.
 
 According to Jeff Brooks, spokesperson for Progress Energy Florida, the biofuel was injected in pure form through a single igniter into the boiler, where it was then co-fired with natural gas. He said the trial was conducted to evaluate the technical and environmental performance of the fuel in a utility boiler. Preliminary test results were positive, Brooks added. 
 
 "We're going to review the data from this test burn and it is possible that additional biofuel research in the future could include a larger-scale boiler test and/or smaller-scale laboratory testing," Brooks said. "We're focusing on analyzing the data from the Bartow test burn to see what results it produced, how its efficiency compares to technologies that we're currently using to help us decide, as we look to the future, what types of fuels we want to research further and what types of technologies we want to evaluate as we move forward." The results are being examined by the company's Strategic Engineering section, and representatives from New Generation Biofuels and the <a target="_blank" href="http://www.ippd.ufl.edu" rel="external">University of Florida's Integrated Product and Process Design (IPPD)</a> program.
 
 While Progress Energy Florida has tested using fuel from New Generation Biofuels, Brooks said the company has no plans at this time to test biodiesel. "New Generation Biofuels approached us with a proposal for this proof-of-concept test," he said. "Progress Energy Florida has not tested biodiesel and has no specific plan in the works to test biodiesel, but is open to the idea. [We are] continually looking for innovative alternative energy resources to help address the challenges of global climate change and rising costs.
 
 "This trial with this particular form of biofuel is certainly an important part of our balanced solution to meeting our customers' energy needs," Brooks continued. "We want to explore alternative fuels that are available in the market and fuels that may well become part of the market in the future. By testing these fuels, we're able to see how they interact with our utility technology and whether they may be a viable fuel source now and in the future."

Florida utility tests New Generation biofuel

Web exclusive posted March 10, 2009, at 3:27 p.m. CST 

 
 The Farm Foundation is soliciting policy ideas on global energy security, climate change and other topics. To gather the idea, the foundation announced March 5 it's hosting a contest, complete with cash prizes totaling $20,000. The competition is open to anyone with an interest in the public policy issues outlined in the Farm Foundation's report, <a target="_blank" href="http://www.farmfoundation.org/news/articlefiles/1694-Final%2030%20Year%20Challenge.pdf " rel="external">"The 30-Year Challenge: Agriculture's Strategic Role in Feeding and Fueling a Growing World."</a> 
 
 "It is not clear that today's public policies-designed to deal with issues of the last century-provide appropriate tools and incentives to address the challenges of the next 30 years," Farm Foundation President Neil Conklin said. "Farm Foundation is offering this competition as a catalyst for innovative ideas and approaches."
 
 Released in December 2008, the Farm Foundation's 30-Year Challenge Report identified six major areas of challenges focused on agriculture's role and ability to provide food, feed, fiber and fuel to a growing world. The six areas are: global financial markets and recession; global food security; global energy security; climate change; competition for natural resources; and global economic development. The report highlighted key issues that public and private decision makers may need to consider as they confront the challenges of feeding a growing world. 
 
 "Finding the policies and strategies that will help us meet the 30-year challenge for agriculture will not be easy. There are no easy analyses or simple solutions," Conklin continues. "Farm Foundation is committed to fostering a constructive and deliberative debate of the policies that may be needed to meet the challenge." The 76-year-old foundation does not lobby or advocate as it seeks to provide objective information on issues shaping the future for agriculture, food systems and rural regions.
 
 Entries in the Farm Foundation competition are due June 1. An independent three-member panel of judges will look at each of the six challenge areas. Prize winners will be announced in September.
 
 The 30-Year Challenge project is directed and led by Farm Foundation. Contributing financial assistance to the project were: the Alliance for Abundant Food and Energy, the American Farm Bureau Federation, the National Corn Growers Association, the National Pork Producers Council, and the United Egg Producers.
 
 <a target="_blank" href="http://www.farmfoundation.org/news/articlefiles/1694-Competition%20for%20Web%203-5-09.pdf " rel="external">Details of the competition and entry process are available at the Farm Foundation Web site.</a>

Farm Foundation launches policy competition

Web exclusive posted March 10, 2009, at 3:35 p.m. CST 

 
 U.S. Energy Secretary Steven Chu testified at a U.S. Senate Energy and Natural Resources Committee hearing March 5. During his testimony, Chu presented his vision for energy research and development at the U.S. DOE and spoke of the importance of those efforts in meeting the U.S. energy and climate changes challenges. 
 
 In order to prosper in the 21st century, Chu said, the nation must work to reduce its dependence on oil, use energy in the most efficient ways possible, and decrease carbon emissions. "I look forward to working with others in the administration, this committee, and the Congress to meet the president's goal of legislation that places a market-based cap on carbon pollution and drives the production of more renewable energy in America," Chu testified. "Such legislation will provide the framework for transforming our energy system to make our economy less carbon-intensive, and less dependent on foreign oil."
 
 During his testimony, Chu also spoke of the American Recovery and Reinvestment Act. He said it's a top priority for the DOE to get that money into the economy quickly, carefully and transparently. He also talked about the need to increase funding for energy research and refocus the way research funds are spent. 
 
 Chu spoke of the need to focus on transformational technology research, which he defined as research that is 'game-changing' rather than merely incremental. An example, Chu said, is the current biofuels research underway at the three BioEnergy Research Centers located at the Oak Ridge National Laboratory in Oak Ridge, Tenn.; the University of Wisconsin in Madison; and Lawrence Berkeley National Laboratory. "Each of these centers is targeting breakthroughs in biofuel technology development that will be needed to make abundant, affordable, low-carbon biofuels a reality," Chu said. "While these efforts are still relatively new, they are already yielding results, such as the bioengineering of yeasts that can produce gasoline-like fuels, and the development of improved ways to generate simple sugars from grasses and waste biomass."
 
 According to Chu, there is a need to complete more transformational research at the DOE in order to develop a range of clean energy technologies to the point where the private sector can pick them up. One example is the development of biofuels manufactured from lumber waste, crop wastes, solid wastes and non-food crops.

Chu presents energy research, development vision to senators

Web exclusive posted March 10, 2009, at 5:28 p.m. CST 
 
 Oil refining and marketing company <a target="_blank" href="http://www.nesteoil.com" rel="external">Neste Oil Corp.</a> has officially begun building a €550 million ($805 million) NExBTL renewable diesel plant in Singapore, which will annually produce 800,000 metric tons (271 MMgy) of the fuel, mainly from animal fats and palm oil. Plans for the facility, which is being built in the Tuas industrial zone on the southwest side of the island, were originally announced in November 2007. The company said the plant is expected to be complete by the end of 2010 and will employ approximately 100 people.

 
 While produced using the same feedstocks as biodiesel, NExBTL renewable diesel is not biodiesel. In April 2008 Neste Oil changed the name of its Biodiesel division to Renewable Fuels to reflect this fact, the company said. While biodiesel is produced using transesterification, NExBTL-which is a hydrocarbon-based renewable diesel-is produced using hydrogenation and water extraction to convert the fatty acids in vegetable oil and animal fat feedstocks to isoparaffin hydrocarbon, a synthetic diesel fuel.
 
 "The construction of our NExBTL renewable diesel plant in Singapore is proceeding on schedule and on budget," said Matti Lievonen, president and chief executive officer for Neste Oil. "The market has been highly unpredictable in the past year, but the Singapore plant plays an important part in our long-term strategy for growth and our commitment to the project remains solid."
 
 Singapore was chosen as the plant's location because it's near world palm oil feedstock supplies and the city is the world's third-largest oil refining center, the company said.
 
 The company's first NExBTL facility, which annually produces 170,000 metric tons (58 MMgy) of NExBTL renewable diesel, was commissioned at Neste Oil's Porvoo refinery in Finland in the summer of 2007. The company plans to complete a second 58 MMgy plant in Porvoo this year. NExBTL is also building a plant in Rotterdam, The Netherlands, which will annually produce 800,000 metric tons (271 MMgy) of fuel, similar to the Singapore facility. The Rotterdam plant is scheduled to be complete in 2011.
 
 For more information about Neste Oil and NExBTL, read the feature article <a target="_blank" href="http://www.biodieselmagazine.com/article.jsp?article_id=1505&q=&page=all" rel="external">"Heeding Hydrogenation."</a>

Neste Oil building Singapore renewable diesel plant

Web exclusive posted March 10, 2009, at 5:39 p.m. CST 
 
 Kentucky-based Four Rivers BioEnergy Inc. has acquired California-based Kreido Biofuels Inc. assets, which include Kreido's spinning tube-in-tube STT reactors and STT technology, as well as its modular biodiesel production plant equipment and related assets.
 

 According to Kreido Biofuels' Web site, the STT technology accelerates the rate of chemical reaction; increases selectivity, conversions and yields; provides real-time control of the quality of chemical processes; and reduces the time required for manufacturing scale-up. These advantages are achieved through a phenomenon called Couette flow. 
 
 The sale closed on March 5. The purchase price for the assets was approximately $2.8 million in cash, 1.2 million shares of Four Rivers BioEnergy common stock, a warrant to purchase an additional 200,000 shares of Four Rivers BioEnergy common stock at $8 per share, and the assumption of certain purchase orders. The cash proceeds will be used to settle obligations to creditors. The Four Rivers BioEnergy common stock and warrants will be held by Kreido Biofuels for 360 days, after which time the shares may be sold or distributed. 
 
 According to Gary Hudson, Four Rivers' president and chief executive officer, the company plans to build a biodiesel refinery near Calvert City, Ky. That refinery will make use of the technology and assets Four Rivers has acquired from Kreido. No timeline is currently available as to when construction will begin on the project, Hudson said. In addition, he continued, Four Rivers intends to utilize the STT technology in other applications as well, including applications in the chemical and pharmaceutical industries. 
 
 According to an annual report that Four Rivers filed with the U.S. Securities and Exchange Commission on Feb. 12, the company had purchased approximately 437 acres of land near Calvert City and was in the permitting process for the proposed plant. The next stage of development included raising additional capital to carry out construction. In the annual report, the company stated that the severe decline in capital markets had caused work to be postponed until markets recover.

Kreido Biofuels, Four Rivers BioEnergy complete sale

Web exclusive posted March 20, 2009, at 1:38 p.m. CST 
 
 EcoSystem Corp. is working to develop a bioreactor technology that utilizes black soldier fly larva to convert food scrap waste into natural oils, which can be used as a feedstock for biodiesel production and specialty chemical applications. The natural oil that is produced has been trademarked by the company as MAGFUEL.
 
 The larva would be raised in contained bioconversion facilities which would be located in close proximity to major sources of food scrap waste, said Glen Courtright, EcoSystem's president and chief executive officer. Courtright said the company envisions setting up a series of these facilities that are scaled to match each market's available feedstock output. Potential feedstock suppliers could include large-scale industrial food manufacturers, grocery stores, restaurants and caterers, slaughter houses, and facilities producing agricultural waste. 
 
 The larva housed in the bioconversion facilities would consume food waste, and be processed to extract their naturally produced oil, or MAGFUEL. The company has estimated that the dry weight of the larva consists of approximately 42 percent protein and 35 percent natural oils. When running at full capacity, it's estimated the technology could yield up to 190,000 gallons of crude natural oils per acre of bioreactor surface area each year. In comparison, soybeans yield an average of 40 gallons of oil per acre annually. The company also estimated the technology could be deployed at a cost of less than $100 per square foot. 
 
 Courtright said the oil would be extracted from the larva using existing rendering technology, which would produce two main products – lipids and a high protein product suitable for use as an aquaculture feed. In addition, the fly larva would produce castings at the bioconversion facility that can be used to fertilize soil. The technology produces virtually no waste products. 
 
 According to data published by the USDA Economic Research Service in 2007, approximately 27 percent of the 356 billion pounds of edible food available for human consumption in the U.S. was lost during farm, processing, and retail stages of marketing. EcoSystem estimated that 25 percent of the volume of retail, restaurant, and industrial-generated food waste could be converted into black soldier fly larva using this technology. Based upon information the company sourced from U.S. 2010 Census data, up to 100 MMgy of MAGFUEL could be produced and sold to U.S. biodiesel producers using this technology. 
 
 EcoSystem intends to market the trademarked MAGFUEL into the existing biodiesel industry as a blending agent for lower grade biodiesel feedstocks, such as white grease, tallow and yellow grease. According to Courtright, the company is currently working to develop a pilot facility, which is expected to begin operations later this year.

Black soldier fly larva is estimated to contain 35 percent natural oils./ ECOSYSTEM CORP.

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EcoSystem uses fly larva to make MAGFUEL

Web exclusive posted March 20, 2009, at 1:46 p.m. CST 

 
 Indiana-based <a target="_blank" href="http://stellarwindbioenergy.com/index.htm" rel="external">Stellarwind Bio Energy LLC's</a> vision statement couldn't be any clearer: "To reshape the competitive energy landscape by providing a new domestic source of eco-friendly renewable energy." 
 
 And the company is firmly standing behind its company-branded philosophy. The algae oil-to-biofuel development company opened a new corporate headquarters in Indianapolis, Ind., which will be outfitted by a small-scale pilot production facility, a one-tenth-acre greenhouse and an advanced research and development facility. 
 
 Leveraged by two years of research, design and development, Stellarwind Bio Energy is rapidly moving into the next phase of its young business development model. Its new headquarters will allow the company to deploy its patented PhycoGenic Reactor and PhycoProcessor units where it plans to optimize and refine economic and performance feasibility for commercial viability, according to Keith Masavage, executive vice president of marketing and business development for Stellarwind Bio Energy.
 
 "Our goal is to figure out a way to deploy this [technology] on a large scale and to make it affordable," he said. "That's really where we think we've crack the 'magic nut'. We've got a very inexpensive design that will allow us to be massively scalable and to keep the cost down to compete."
 
 According to Masavage, Stellarwind Bio Energy intends to deploy its business model using four basic components based off proprietary design: PhycoGenic Reactor, PhycoProcessor, RecyCO2Tron and Resource Recovery System. 
 
 First, carbon dioxide is captured from any major greenhouse gas-generating producer such as power plants or manufacturing facilities using the company's RecyCO2Tron unit. The carbon dioxide is fed into the PhycoGenic Reactor, which grows and harvests the algae. 
 
 The harvested algae are then fed into the PhycoProcessor, which extract the oils. Residual biomass is fed into its Resource Recovery System that converts the residual biomass into several saleable byproducts such as methane, industrial-grade charcoal, fertilizer and/or syngas. 

 
 Masavage said the company hasn't determined a specific capacity per yield of algae harvested per acre on an annual basis. The company is currently conducting various feasibility studies on which algae strains allow for optimal economic advantages on a commercial level.
 
 "We feel there is a lot more value in that holistic design," Masavage said. "If we can come up with a system that does this viably [on a commercial scale], I think it has a tremendous message to it that you can not only produce renewable energy, but also a whole bunch of renewable resources."

Stellarwind Bio Energy LLC is optimizing the production and economic efficiencies of its PhycoGenic Processor in Indianapolis, Ind./Stellarwind Bio Energy LLC.

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Stellarwind Bio Energy expands algae R&D, facility

Web exclusive posted March 11, 2009, at 10:43 a.m. CST 
 
 In the latest USDA World Agricultural Supply and Demand Estimates report issued March 11, projections for soybean ending stocks in the current marketing year were lowered 25 million bushels to 185 million bushels. Lower crush volumes were offset by increased soybean exports with reported record sales to China and reduced export competition from Argentina. Soybean exports were raised 35 million bushels to 1.18 billion and the soybean crush reduced 10 million bushels to 1.64 billion due to weak domestic soybean meal demand and poor crush margins.
 
 Despite lower production, soybean oil stocks were projected higher due to a sharp reduction in domestic use resulting from lower soybean oil-based biodiesel production. Soybean oil used for biodiesel was reduced 0.7 billion pounds to 2.2 billion, according to WASDE, as biodiesel producers face poor margins, reduced export prospects and strong competition from other feedstocks.
 
 With the changes in export demand, the USDA adjusted its U.S. season-average soybean price projections up 10 cents on both ends of the range from $8.85 to $9.85 per bushel. The soybean meal price projection was unchanged at $265 to $305 per ton. The soybean oil price was projected at 28.5 to 31.5 cents per pound, down 2.5 cents on both ends of the range.
 
 USDA's projection for global oilseed production for 2008-'09 was down slightly at 407.7 million tons, down 0.3 million tons from last month. Higher rapeseed and peanut production only partially offset lower soybean, sunflower seed, and cottonseed production. Global soybean production was reduced 0.9 million tons to 223.3 million. Soybean production for Argentina was projected at 43.0 million tons, down 0.8 million from last month due to lower harvested area. Soybean production for Brazil is projected at 57 million, unchanged from last month. Global rapeseed production was raised 0.7 million tons to a record 57.5 million mainly due to higher output in China.

WASDE: Exports up, biodiesel use down

Web exclusive posted March 11, 2009, at 10:54 a.m. CST 

 
 Oxford, Miss.-based <a target="_blank" href="http://www.encoreenergyinc.com/page.php" rel="external">Encore Energy Systems Inc.</a> recently announced it plans to acquire various biodiesel production facilities. According to information released by the company, these facilities are typically operating under capacity and can be purchased at significant discounts. In a March 10 press release issued by Encore Energy Systems, the acquisition of the operations and facilities represents a major component of the 2009 growth plan. 
 
 Encore Energy Systems has also entered into an agreement with Chicago-based Zenergy International Inc. to provide biofuel plant management services and feedstock allocation. The agreement provides mission critical management and provisioning services to Encore Energy Systems biofuel production facilities as required. 
 
 According to a statement issued by Encore Energy Systems, the company intends to aggressively acquire biodiesel plants; it believes that consolidation of biodiesel assets will position the company as a premier producer and distributor of biodiesel nationwide. 
 
 At press time, Biodiesel Magazine was unable to reach a representative of Encore Energy Systems for comment. Additional information on the company and its stock is available on the <a target="_blank" href="http://www.pinksheets.com/pink/quote/quote.jsp?symbol=ENCS" rel="external">Web site of Pink OTC Markets Inc.</a>

Encore Energy intends to acquire biodiesel plants

Web exclusive posted March 11, 2009, at 5:02 p.m. CST 

 
 Wheat Ridge, Colo.-based TDA Research Inc. has been awarded $225,000 in funds from the U.S. EPA to develop a process which will produce biodiesel from low-cost waste feedstocks, such as waste oils and animal fats. 
 
 TDA, a developer of catalysts, sorbents, advanced materials and components, is primarily supported by government research and development contracts.
 
 The grant was provided by the EPA's Small Business Innovation Research program under the American Recovery and Investment Act of 2009, which has a purpose of strengthening the role of small businesses in federally funded research and development, and to develop a stronger national base for technical innovation. 
 
 The new funds will bring TDA into phase two of a preexisting project, which has previously been financially supported by the EPA. In phase one of SBIR contracts, the scientific merit and technical feasibility of proposed concepts were investigated. Projects are only granted phase two funding if the first phase is successfully completed. 
 
 TDA received one of eight phase two funding awards. 
 
 In phase one, the TDA successfully determined that it could produce biodiesel from waste grease at a cost that was competitive with conventional diesel. In phase two, it will work to develop and commercialize the technology.
 
 SBIR funding can only be accessed by small businesses with less than 500 employees. The EPA call for applications will be open from March 19 to May 20, at <a target="_blank" href="http://www.epa.gov/ncer/sbir" rel="external">www.epa.gov/ncer/sbir</a>. The opportunity can also be accessed through the <a target="_blank" href="http://www.nsf.gov/eng/iip/sbir" rel="external">National Science Foundation</a> until June.

EPA awards TDA Research $225,000

Web exclusive posted March 12, 2009, at 11:18 a.m. CST 

 
 A mechanical failure during the test launch of a biodiesel-powered rocket produced unexpected results, giving rocket engineers a deeper appreciation for the biofuel. According to Steve Harrington, chief executive officer of Carlsbad, Calif.-based aerospace engineering company <a target="_blank" href="http://www.flometrics.com" rel="external">Flometrics Inc.</a>, a stuck fuel valve on the rocket caused some biodiesel to flow into the liquid oxygen system and, upon ignition, a fire inside the liquid oxygen manifold caused the launch to fail on March 7 in the Mojave Desert in the southwestern U.S.
 
 "We got a big puff of flame out of the nozzle, but no significant thrust," Harrington said. "The rocket didn't go anywhere." But what happened next was a surprise. "We ran into a problem, but then we discovered this advantage of biodiesel that we hadn't expected. This type of failure often causes a serious fire when you use kerosene: you get a pool fire underneath the rocket and it just kind of barbeques the fins, and so on. But this time the fire was minimal. The biodiesel just went right out and the rocket did not even get scorched."
 
 According to NASA, the RP-1 kerosene-based rocket fuel that Flometrics used to power its RocketDyne LR-101 rocket engine has a minimum flash point of 82 degrees Fahrenheit (28 degrees Celsius). The National Biodiesel Board said the flash point of biodiesel can range from 200 to 300 degrees Fahrenheit (93 and 149 degrees Celsius). By comparison, the flash point of petroleum diesel is 140 degrees Fahrenheit (60 degrees Celsius), the NBB said. 
 
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 "The biodiesel showed a definite advantage compared to the standard fuel in that it wouldn't sustain itself in a pool fire," Harrington said. "This may be a reason to use it for manned missions, to keep the chances of catastrophic fire lower."
 
 Harrington said the next attempt to launch the 20-foot tall, 150-pound rocket will be on March 21. "The people who run the launch facility are hosting a launch for the Boy Scouts that day," he said, "and so it will be a heckuva show for the Boy Scouts."
 
 For more information, read <a href="http://www.biodieselmagazine.com/article.jsp?article_id=3177 ">"Flometrics to launch biodiesel-powered rocket."</a>

Carlsbad, Calif.-based aerospace engineering company Flometrics Inc. ignited a biodiesel-powered rocket in the Mojave Desert on March 7./PHOTO: FLOMETRICS INC.

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The Flometrics Inc. rocket team readies the 20-foot tall, 150-pound rocket biodiesel-powered rocket for launch./PHOTO: FLOMETRICS INC.

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The Flometrics Inc. rocket team prepares the 20-foot tall, 150-pound rocket biodiesel-powered rocket for launch./PHOTO: FLOMETRICS INC.

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This 20-foot tall, 150-pound biodiesel-powered rocket was ignited for launch in the Mojave Desert on March 7./ PHOTO: FLOMETRICS INC.

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Biodiesel rocket launch mishap surprises engineers

Web exclusive posted March 12, 2009, at 2:07 p.m. CST

 
 The <a target="_blank" href="http://www.iea.org/" rel="external">International Energy Agency</a>, an energy policy organization formed to council its 28 member countries, has released a report examining the current first- and second-generation biofuel industries and the challenges at-hand for second-generation biofuel development and commercialization. The report's researchers have concluded that while many technical challenges remain for second-generation biofuels, a steady transition from first- to second-generation biofuels is expected in the near- to mid-future. 
 
 According to the report, the transition to an integrated first- and second-generation biofuels industry will most likely be spread over the next one to two decades and will require continued significant governmental support. In the near- to medium-term, the biofuels industry will grow at a steady rate and will encompass both generations of biofuels. 
 
 Based on various company announcements, the IEA determined that the first commercial-scale second-generation facilities could be up and running by 2012. However, the report stated that a conversion technology must be successfully demonstrated before it can be commercially viable, "therefore given the complexity of the technical and economic challenges involved, it could be argued that in reality, the first commercial plants are unlikely to be widely deployed before 2015 or 2020." The report further stated that it remains debatable as to what degree second-generation biofuels can contribute to global fuel demands by 2030. 
 
 Current wild fluctuations in oil and gas prices have made investments in second-generation biofuels "a high risk venture" according to the report, therefore requiring furthered governmental financial assistance. Commercial-scale production costs of second-generation biofuels have been estimated by the IEA to range from $3.02 to $3.79 per gallon for ethanol and at least $3.79 per gallon for synthetic diesel. The commercialization and rapid deployment of second-generation biofuels by 2020 could reduce those costs by $1 per gallon for both ethanol and synthetic diesel, which would make both fuels cost-comparative with traditional diesel and gasoline. 
 
 Before commercial development and deployment of second-generation biofuels can be complete, the IEA found several areas in need of attention including: 
 <ul>	<li>Improved understanding of feedstocks, reduction in feedstock costs and development of energy crops. </li>
 	<li>Technology improvements for biochemical and thermochemical production methods in terms of pre-treatment, enzymes and efficiency improvement and cost reduction. </li>

 	<li>Maximizing the value of coproducts such as heat, electricity and various chemicals as a way to increase overall revenue. Also, to ensure fair assessment of second-generation biofuels, market assessments should include items such as rural development, employment, energy security and carbon sequestration.</li></ul>
 The entire 124-page IEA report can be viewed at <a target="_blank" href="http://www.iea.org/Textbase/publications/free_new_Desc.asp?PUBS_ID=2079" rel="external">www.iea.org/Textbase/publications/free_new_Desc.asp?PUBS_ID=2079</a>.

IEA report examines second-generation biofuel challenges

Web exclusive posted March 13, 2009, at 10:17 a.m. CST 
 
 A new report released by the Western Organization of Resource Councils on March 12 examines small and community-scale biodiesel production, the experiences of farmers and entrepreneurs in their endeavors and the role it plays in rural economic development. The report, "Homegrown Prosperity from the Bottom Up," presents six case studies of biodiesel plants emerging in rural economies across the region. 
 
 Wilbur Wood, a cowriter of the report asked, "Can localized production and distribution of biodiesel over large portions of the West disengage family farmers and ranchers from domination by the global fossil fuel market, can it enhance both fuel and food security, create jobs, and keep money in local communities?" After six months of research, Wood said that answer is yes.
 
 Brett Earl, co-owner of Earl Fisher Biofuels LLP in Chester, Mont., is featured in case study number one. Earl views biodiesel as a community-based industry. "We can grow the oil seeds locally, we can manufacture the fuel locally, and we can consume the products locally," he said. The facility currently operates at 275,000 gallons annually and employs three full-time employees, with plans to expand to 1 MMgy and employ six to ten workers. Earl said that would make Earl Fisher Biofuels the third largest employer in the small town of Chester. When operating at a larger scale, Earl wants to share it with other rural communities in Montana, proving it can work. 
 
 Case study number two features a biodiesel project in the remote Costilla County, Colo., which is already seeing positive effects.
 

 "Though this project is still in its infancy stages, the county has displaced several thousand gallons of diesel fuel with its own biodiesel," said Ben Doon, comanager of the Costilla County Biodiesel Project. "The facility has created five jobs in an area desperate for new employment opportunities. It's created a new local and reliable market for oil seed crops and it's given area ranchers a local, low cost option for premium protein feed. In addition, the project has brought in over $535,000 in grant funds."
 
 WORC said the case studies in the report are prime examples that community-scale biodiesel production will spark economic growth for rural areas and is a reason policy should be developed to aid small-scale production. "We urge federal and state officials to make a strong commitment to helping stimulate rural economies by adopting policies that build a strong and lasting foundation for the establishment of small and community-scale biodiesel facilities throughout the region," said Helen Waller, Northern Plains Resource Council member and a Montana farmer. 
 
 The full report can be viewed at <a target="_blank" href="http://www.worc.org" rel="external">www.worc.org</a>.

Report highlights rural biodiesel production benefits

Murrieta, CA - April 9, 2009 - SRS Engineering Corp., a Southern California-based biodiesel equipment manufacturer, was visited on March 26, 2009 by a group of Indonesian delegates to uncover potential goods to import and export from the U.S. These delegates, who represent commerce interests in their country, visited a handful of Southern California businesses to discuss potential trade agreements between the two countries. 
 
 The delegates included the chairman of the Investment Coordinating Board of the Republic of Indonesia, Muhammad Lufti; the consul general of the Indonesian Consulate General in Los Angeles, Subijaksono Sujono; the counselor for economic affairs form the Embassy of the Republic of Indonesia in Washington D.C., Ridwan Hassan; and the consul of economic affairs for the Los Angeles consulate, Edi Suharto. 
 
 Discussions were made regarding the feasibility of a biodiesel plant being erected in Indonesia, along with the possibility of the exportation of palm oil to the U.S., as Indonesia is now the largest producer of palm oil in the world. 
 
 The delegates visited a few companies throughout Southern California looking to develop partnerships with companies like SRS Engineering that could eventually evolve into international trade agreements. With SRS Engineering being a biodiesel equipment manufacturing facility and Indonesia being the largest producer of palm oil in the world, there was an obvious business relationship to be had. 
 
 "I was very impressed with the Indonesian delegates and their desire to create strong trade agreements between the two countries," said Clayton Hawranik, President/CEO of SRS Engineering, "there seemed to be an obvious connection with what we do in the biodiesel industry and the Republic of Indonesia being the number one producer and exporter of palm oil. Our brief meeting uncovered a wealth of opportunities between our countries" 
 
 SRS Engineering will meet with local officials this month as a follow up to the Indonesian delegates visit. They are scheduled to discuss further business opportunities within the Republic of Indonesia. 
 
 About SRS Engineering Corporation
 Headquartered in Murrieta, California, SRS Engineering Corporation has been manufacturing custom process equipment for various industries for more than 20 years. The company offers a wide range of biodiesel equipment, including high-FFA pretreatment systems, high-purity methanol recovery systems, continuous-flow reactors, and complete turnkey biodiesel plant solutions. SRS is uniquely positioned to deliver everything from small biodiesel plants to large-scale biodiesel refineries. For more information visit <a href="http://www.srsbiodiesel.com">www.srsbiodiesel.com</a> or call (800) 497-5841. 

 
 Contact: Valerie Church
 Director of Marketing
 Tel: (951)526-2239
 Fax: (951)526-2441
 Email: <a href="valeriec@srsengineering.com">valeriec@srsengineering.com</a>
 <a href="http://www.srsbiodiesel.com">www.srsbiodiesel.com</a>

Indonesian leaders visit SRS Engineering and uncover goods to import/export

World's Largest Palm Oil Producer Establishes Relationship with SRS Engineering

Web exclusive posted March 16, 2009, at 4:20 p.m. CST 
 
 The Iowa Department of Economic Development has awarded biodiesel technology company Catilin Inc. a $150,000 grant to upgrade its biodiesel pilot plant at the Biomass Energy Convention Center near Ames, Iowa. 
 
 In August 2007, Iowa's legislature approved the creation of the demonstration fund, which provides grants of up to $150,000 to encourage prototype and concept development activities by small and medium-sized Iowa companies in advancements of manufacturing, biosciences and information technology industries.
 
 The T300 technology was originally developed by Iowa State University chemistry professor and U.S. DOE Ames Laboratory senior scientist Victor Lin. Currently being tested at the 300,000 million gallon per year demonstration facility, the T300 is a heterogeneous, or solid catalyst which requires less amounts of water, energy, toxic chemicals and equipment to produce biodiesel and glycerin when compared to traditional biodiesel manufacturing processes, according to Catilin. Existing biodiesel catalysts are liquid. 
 
 The new funds will be used to upgrade the pilot plant from batch to continuous operation mode, which will be the final step toward the company's commercialization of the technology. Catilin said the T300 can be used with most biodiesel feedstock sources including soy, canola, beef tallow, chicken fat, jatropha and algae. Also, it can be reused multiple times and utilized at existing biodiesel plants with minimal modifications.
 

 The pilot-scale facility is currently open for observation to visitors, prospective partners and customers. 
 
 To learn more about Catilin and the T300 Biodiesel Catalyst, visit <a target="_blank" href="http://www.catilin.com/t300.html" rel="external">www.catilin.com/t300.html</a>.

Catilin receives $150,000 for pilot plant upgrade

Web exclusive posted March 16, 2009, at 4:30 p.m. CST 
 
 The European Commission has formally announced its decision to apply temporary anti-dumping and anti-subsidy tariffs to all biodiesel produced in the United States. The commission's decision follows a nine-month investigation initiated by claims from the European Biodiesel Board that U.S.-produced biodiesel was being inserted into the European market at costs that made it impossible for European producers to compete. 
 
 According to EBB Secretary General Raffaello Garofalo, the board simply wanted to level the playing field between the two production giants and give European producers the chance to re-establish their industry. EU Trade spokesperson Lutz Guellner stated that the measures enacted by the commission "are about fighting unfair trade" and dismissed notions that the EU might be employing protectionism tactics. "This decision was taken on the basis of clear evidence that unfair subsidization and dumping of U.S. biodiesel has taken place, and that this is harming the otherwise competitive EU industry, with potentially dire long-term effects," Guellner said.
 
 The dual tariffs became effective March 13 and will remain in place for four months while the commission continues to evaluate the situation. U.S. biodiesel producers will be required to pay between €211.20 (approximately $270) and €237 (approximately $300) per metric ton for the anti-subsidy duties. The anti-dumping measures will result in an additional charge of between €23.60 (approximately $30) and €208.20 (approximately $265) per metric ton. By July, the commission is expected to determine whether or not the EU should keep 'definitive' tariffs in place for an additional five years.
 
 "We are about to get the proof that these provisional duties will hurt the European biodiesel industry much more than they will help," Said Boston-based biodiesel supplier <a target="_blank" href="http://www.worldenergy.net " rel="external">World Energy Alternatives LLC's</a> President and Chief Executive Officer Gene Gebolys. According to Gebolys, U.S. biodiesel has been used primarily as a blend stock for European-produced product and without it Europeans will experience higher-priced biodiesel. "I am confident that the Europeans will soon have all the evidence they need to conclude that their protectionist impulse must give way to more enlightened policies," he added.

 
 For comments from the EBB, read <a href="http://www.biodieselmagazine.com/article.jsp?article_id=3280&q=EU%20trade%20commission&category_id=29">"EBB: Europe's tariff will level the playing field."</a>
 
 To read the full text of the EU Commission's regulation, visit <a target="_blank" href="http://eur-lex.europa.eu/JOHtml.do?uri=OJ:L:2009:067:SOM:EN:HTML" rel="external">http://eur-lex.europa.eu/JOHtml.do?uri=OJ:L:2009:067:SOM:EN:HTML</a>.

EU biodiesel tariffs begin

Web exclusive posted March 17, 2009, at 3:01 p.m. CST 
 
 Contrary to a previous Biodiesel Magazine report (<a href="#note">see below</a>) that stated underground mines can receive and sell renewable identification numbers (RINs), EPA rules currently require the RINs be retired for fuel destined for off-road use. 
 

 The following clarification of the U.S. EPA rules was found in the <a target="_blank" href="http://www.epa.gov/otaq/renewablefuels/420f07041a.pdf" rel="external">question and answer section of the EPA Web site</a>.
 
 The EPA believes that most biodiesel will ultimately be used as motor vehicle fuel, and therefore biodiesel producers can assume the biodiesel meets the EPA definition of renewable fuel and can assign RINs to it without tracking its ultimate use. However, if a renewable fuel is known to be destined for use in a non-road application, such as agricultural equipment or underground mining equipment, it's not considered a motor vehicle fuel and isn't a renewable fuel that is valid for renewable fuel standard(RFS) compliance, and thus can't receive RINs. In cases where the fuel has been assigned RINs, those RINs must be retired and reported.
 
 For biodiesel and other renewable fuels destined for motor vehicle use, there is a provision for the separation of the RINs from the fuel, which then can be sold separately. However, that separation of RINs can't be done with fuel destined for off-road use. Recently, RINs have been trading at around 15 cents per gallon, which has the industry exploring new market opportunities.
 
 The industry is encouraged to examine the proposed new rules for the RFS that is expected to be published in the next several weeks. The Energy Independence and Security Act of 2007 made a number of changes in the renewable standard beyond setting new blending targets. It's expected those will included changes to the handling of RINs.
 
 
 EDITOR'S NOTE: The above clarification of the EPA's rules regarding off-road biodiesel use and RINs corrects information that Biodiesel Magazine reported from a March 5 webinar. The original web exclusive, which has been rewritten to reflect updated information, appears below. 
 

 Webinar: Underground mines can benefit from biodiesel
 
 By Susanne Retka Schill
 
 Biodiesel producers have a new market unfolding in the underground mining business, where many mine managers are turning to biodiesel to meet tighter air quality requirements that went into effect last year. 
 
 Renewable Energy Group Inc. hosted more than 100 participants in a March 5 webinar that covered the basics of using biodiesel in the mining industry. Webinar participants also included media and biodiesel industry representatives interested in the emerging market. 
 
 "When you buy a gallon of biodiesel, we assign those RINs to you," Scharingson said to mining industry representatives during the webinar. "Those in the mining industry are not obligated parties, and you have the opportunity to sell those to the petroleum majors who are obligated parties." Currently, RINs are selling for 16 cents per gallon. With biodiesel carrying a 1.5 RIN credit, a biodiesel RIN is worth 23 to 24 cents per gallon, Scharingson said.
 
 The webinar covered a number of the benefits of using biodiesel in mines, as well as the measures to take when switching from standard diesel to high biodiesel blends or B100. Many in the underground mining industry are turning to biodiesel as a means of reducing diesel particulate matter (DPM) levels as required by the Mining Safety and Health Administration. "We've had mining customers who are willing to pay a significant premium for biodiesel," Jon Scharingson, REG director of marketing, said. "If that mining operation is unable to meet DPM targets, MSHA has the ability to shut down that mine."
 
 Scharingson and Dave Slade, technical manager for REG, covered the importance of biodiesel quality, the proper handling of biodiesel, situations where oxidative stability additives are appropriate, and other issues for new users of biodiesel. Slade stressed that a statement from original engine manufacturers (OEMs) initially caused some confusion. "The OEMs do not restrict you from using biodiesel," he said. "Many have endorsed B5 and many B20. Saying 'does not endorse B100' does not mean 'warranty will be voided.'" Slade pointed to an Oregon decision from the mid-1990s where the courts ruled that fuel use cannot void engine warranties. He added that on-spec biodiesel cannot harm any part of a modern engine, and may actually help due to less soot and higher lubricity. The major issues are with older natural-rubber based hoses, seals and gaskets.
 
 RINs and off-road use

 A question arose during the webinar which was later clarified by REG regarding the handling of renewable identification numbers (RINs). RINs are the tracking mechanism created by the U.S. EPA to monitor what obligated parties are doing to meet the renewable fuels standards. Currently, the renewable fuels standard enacted in the Energy Policy Act of 2005 (RFS1) doesn't allow RINs to be transferred when it's known to be destined for non-road applications. "In visiting with various groups, we believe this to mean that selling biodiesel directly to a mine (sending them a railcar, for example) creates this 'non-road application' and those RINs must be retired," said an REG spokesman. However, a fuel distributor with mine customers can collect and handle the RINs. "As you know, the regulations for RFS2 (the renewable fuels standard enacted in the Energy Independence and Security Act of 2007) are not yet written/released. It looks promising that the RFS2 will allow mining operations to take advantage of RINs. The industry looks forward to understanding the final regulations once released."
 
 Biodiesel Magazine examined biodiesel use in the underground mining industry in its May 2008 issue. Read <a href="http://www.biodieselmagazine.com/article.jsp?article_id=2294 ">"Gaining Traction."</a>

EPA clarifies RINs for off-road use

Web exclusive posted March 17, 2009, at 3:31 p.m. CST 
 
 With algae-based biodiesel pilot and demonstration projects due to be launched in 2010, Houston-based biofuels analyst Will Thurmond predicts the first large-scale algae production destined for the U.S. Department of Defense will begin in 2011 and the first commercial-scale algae biodiesel production will start the following year. "It will be expensive at first," Thurmond said during a recent webinar summarizing his soon-to-be published algae report, which is titled "Algae 2020: Next Generation Biofuels Markets and Commercialization Outlook" and is due out in late March. 
 
 "There is a lot of hype around algae," Thurmond admitted, but after discussion with experts and surveys of many companies, he projects algae production to begin scaling up to commercial levels between 2013 and 2015, with the cost dropping and market share rising and, by 2020, "I expect algae will become a mainstream commodity for biodiesel, bio crude and ethanol." 
 
 Given its yield potential, algae is being seriously considered by the U.S. Department of Defense, he said in a review of market factors. "If Saudi Arabia stopped selling petroleum to the United States, the U.S. military, which is the largest single consumer of petroleum in the world, would be impacted." A second major market driver is the European Union where more than 50 percent of all vehicles run on diesel. That compares with the United States where passenger vehicles overwhelming use gasoline, although the trucking and shipping industries rely upon diesel. 
 
 The detailed report, which includes market information, a technology review and case studies of several algae companies, will be available in late March at <a target="_blank" href="http://www.emerging-markets.com" rel="external">www.emerging-markets.com</a>.

Thurmond: Algae will be mainstream by 2020

Web exclusive posted March 17, 2009, at 3:37 p.m. CST 

 
 Imperium Renewables Inc. has reduced the workforce at its Imperium Grays Harbor biodiesel production facility, citing the dramatically reduced global demand for biodiesel, high feedstock prices and extreme volatility in the petroleum fuel markets. According to the company, 24 employees were laid off. 
 
 "This is an extremely painful step to take, given our employees' dedication to the company and to the greater cause of reducing our dependency on fossil fuels," said John Plaza, founder and chief executive officer of Imperium Renewables. "These are difficult choices that will allow Imperium to survive and grow when the market turns around for the biofuels industry. We understand this is a difficult blow to the Grays Harbor community. We remain committed to Grays Harbor and are doing everything we can to reverse the course our industry has taken."
 
 Until recently, the soft U.S. biofuels market had been offset by demand in the European market, where mandate biodiesel markets had made biodiesel competitive. This advantage ended on March 3 when the EU enacted tariffs on imported U.S.-produced biodiesel. "This confluence of market-driven and geopolitical events has made it very difficult to operate our business as we had planned. The failure in implementation of U.S. policy initiatives such as the renewable fuel standard which was enacted by the Energy Independence and Security Act of 2007 has further deteriorated the market," Plaza said. 
 
 "Despite these challenges, we remain hopeful that there will be a strong future for biodiesel given the Obama administration's leadership on renewable energy," he continued. "He has called for doubling renewable energy consumption in the next three years, enforcing the existing renewable fuel mandates, and enacting future biofuel-friendly policies such as low-carbon fuel standards and a carbon emission cap and trade system. Such forward thinking policies will be required to create a stable market for current and next-generation biofuels." 
 
 The 100 MMgy Grays Harbor facility opened in August 2007. In October, Biodiesel Magazine reported that the company had received a cash infusion from existing investors which was largely used to repay a portion of its debts. (Read <a href="http://www.biodieselmagazine.com/article.jsp?article_id=2826 ">"Investors help Imperium Renewables to repay debts."</a>)

Imperium reduces Grays Harbor staff

Web exclusive posted March 18, 2009, at 11:09 a.m. CST 
 

 Researchers at the <a target="_blank" href="http://www.csiro.au " rel="external">Commonwealth Scientific and Industrial Research Organization</a>, Australia's national science agency, have determined that it's possible to produce biodiesel from saltwater algae for less than what it costs to produce petroleum diesel, reducing greenhouse gases in the process.
 
 In a report titled <a target="_blank" href="http://www.csiro.au/resources/Greenhouse-Sequestration-Algae.html" rel="external">"Greenhouse Gas Sequestration by Algae – Energy and Greenhouse Gas Life Cycle Studies"</a> and written by CSIRO scientists Tom Beer, Peter Campbell, and David Batten, it was found that the economic and greenhouse gas reduction value of algal biodiesel might be maximized if the biodiesel were to be produced near its feedstock source and then used to generate electricity in a colocated stationary power plant.
 
 "Given the costs of transporting the biodiesel-generally, from a fairly remote location some distance to an urban area where it is most likely to be used-it is, in fact, possible that turning all of the algae into electricity could be the best outcome," the scientists said.
 
 The study also found that a 500-hectare (1,200-acre) algal biodiesel plant in a rural area might create up to 45 jobs.
 
 The viability of using algae for biodiesel is highly dependent upon cultivating high oil-yielding algae year-round, which has yet to be demonstrated on a commercial scale, the study noted. Most microalgae, when grown in a nutrient-rich environment, contained between 10 and 30 percent oil content, but "species containing considerably higher oil content have been found (and) more than a dozen algal species have been mentioned as possible candidates for producing biodiesel," the scientists stated.
 
 The CSIRO report found that a 400-hectare (1,000-acre) algae farm might be viable, "but if one increases the size to [one that is] suitable for a large commercial industry, extra costs from increased infrastructure and power costs could make the biodiesel economically nonviable. Economies of scale do not appear to apply for these types of designs." Improved processing and harvesting techniques would be necessary to make commercial-scale projects economically viable, the scientists said.

Study: Stationary power using algae biodiesel viable

Web exclusive posted March 19, 2009, at 11:50 a.m. CST 

 
 In an effort to promote North Carolina's renewable fuels standard (RFS), the <a target="_blank" href="http://www.biofuelscenter.org " rel="external">Biofuels Center of North Carolina</a> has awarded a total of more than $1.3 million to 10 biodiesel-related projects in the state. The Biofuels Center has been tasked to implement the state's RFS, which mandates that by 2017, 10 percent of the liquid fuels sold in North Carolina should come from locally grown and produced biofuels.
 
 The <a target="_blank" href="http://www.ncsc.ncsu.edu " rel="external">North Carolina Solar Center</a> at North Carolina State University in Raleigh, N.C., was awarded $198,385 for its Biodiesel Pilot Plant Demonstration & Outreach Program. The funding will be used to upgrade the program's pilot plant at the <a target="_blank" href="http://www.cals.ncsu.edu/research/field_labs/lwrfl.htm " rel="external">Lake Wheeler Road Field Laboratory</a> so that students can explore methods for optimizing methanol recovery, improve wet and dry cleanup processes to reduce water and energy consumption, develop new techniques for processing waste oil feedstocks into biodiesel, and demonstrate analytical technologies for biodiesel process quality control. In addition, the Solar Center has been awarded $194,375 to develop a market for canola in North Carolina, which includes developing varieties and production guidelines for farmers.
 
 The <a target="_blank" href="http://www.chathamedc.org" rel="external">Chatham County Economic Development Corp.</a> in Pittsboro, N.C., was awarded $197,055 to work with <a target="_blank" href="http://www.biofuels.coop/industrial/our-story " rel="external">Piedment Biofuels Industrial LLC</a> and <a target="_blank" href="http://www.novozymes.com/en " rel="external">Novozymes A/S</a> to research enzymatic biodiesel processing methods for brown grease and chicken meat processing sludge and to build a mobile enzymatic pilot plant.

 
 The <a target="_blank" href="http://www.nc.nrcs.usda.gov/contact/directory/rcd.html"rel="external">Carolina Land & Lakes Resource Conservation & Development Council</a> in Newton, N.C., was awarded $180,496 to work with <a target="_blank" href="http://www.foothillsbio-energies.com " rel="external">Foothills Bio-Energies</a> in Lenoir, N.C., to develop a model project for the combustion of crude glycerin using a process that was developed at North Carolina State University.
 
 Catawba County was awarded $150,000 to build a feedstock processing station to store and process oilseed crops at its 100,000-gallon-per-year Biodiesel Research Facility in the <a target="_blank" href="http://www.catawbacountync.gov/DEPTS/u&e/ecocomplex.asp" rel="external">Catawba County Regional EcoComplex and Resource Recovery Facility</a> southwest of Newton, N.C. In addition, the biodiesel research program at <a target="_blank" href="http://www.biodiesel.appstate.edu" rel="external">Appalachian State University</a> has been awarded $129,133 to educate growers about the benefits of planting biodiesel feedstocks and for optimizing the refinement and extraction of oil from seeds. The school has been working in partnership with the EcoComplex.

 
 The Cape Fear Resource Conservation & Development Council was awarded $108,800 to work with <a target="_blank" href="http://algaeresource.com" rel="external">Alganomics LLC</a> to further develop a pilot-scale tubular photobioreactor at the Oak Island Wastewater Treatment Facility in Oak Island, N.C., for the production of algae oil feedstock, which can be used to produce biofuels, including biodiesel.
 
 The <a href="http://www.centralina.org">Centralina Council of Governments</a> has been awarded $99,850 to design a demonstration-scale plant at the <a target="_blank" href="http://www.charmeck.org/Departments/Utilities/Home.htm" rel="external">Charlotte-Mecklenburg Utilities'</a> Greater Charlotte Region Biofuel Facility in Charlotte, N.C., to convert fats, oil, and grease from sewer lines into biodiesel. Project partners include from the <a target="_blank" href="http://www.catawbacountync.gov/depts/u&e" rel="external">Catawba County Utilities and Engineering Department</a> and students and faculty from the <a target="_blank" href="http://www.uncc.edu" rel="external">University of North Carolina at Charlotte</a>, <a target="_blank" href="http://www.cpcc.edu" rel="external">Central Piedmont Community College</a>, and Appalachian State University.

 
 <a target="_blank" href="http://www.craven.k12.nc.us" rel="external">Craven County Schools</a> in New Bern, N.C., was awarded $49,097 to fund its Farm to Fuels Program, which will train students at West Craven High School and Havelock High School, as well as local farmers and community members, to produce biodiesel using canola oil feedstock.
 
 The <a target="_blank" href="http://www.ncagr.gov" rel="external">North Carolina Department of Agriculture & Consumer Services</a> Division of Research Stations in Oxford, N.C., has been awarded $35,415 to demonstrate to farmers how to grow feedstock crops to produce biodiesel on the farm.

April 2009

Business Briefs

Business Briefs: Companies, Organizations & People in the News

Columns

Politics: Not Everyone Sees Eye to Eye

It's Time to Rock the House

Sustainability, Feedstock Diversification: Marketing Biodiesel From Sustainable Sources

Featured

A Recommitment to Unity:Overcoming Adversity by Leveraging Diversity

Obama's Energy Team

Beneficial Blending

The Search for Sustainable Solutions

April 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: Companies, Organizations & People in the News

Columns

Politics: Not Everyone Sees Eye to Eye

It's Time to Rock the House

Sustainability, Feedstock Diversification: Marketing Biodiesel From Sustainable Sources

Featured

A Recommitment to Unity:Overcoming Adversity by Leveraging Diversity

Obama's Energy Team

Beneficial Blending

The Search for Sustainable Solutions

April 2009