<a href="http://www.buffalobiodiesel.com/">Buffalo Biodiesel Inc.</a>, a wholly-owned subsidiary of <a href="http://www.hydrogeneticsusa.com/">HydroGenetics Inc.</a>, has completed the expansion capacity of its waste vegetable oil processing facility in Tonawanda, N.Y., from 1 MMgy to 5 MMgy. 

 
 According to Sumit Majumdar, president of Buffalo Biodiesel, the expansion project took approximately two months to complete. Buffalo Biodiesel, which collects and renders yellow grease from restaurants within the New York and Pennsylvania areas, has the capability to produce 5 MMgy of biodiesel at its facility in Tonawanda; however, the plant is currently producing approximately half the volume of its maximum rate due to lack of demand for the biofuel along with competing demand for bio heating oil use in the Northeast, according to Majumdar.
 
 "There really is no demand [for biodiesel] at a price higher than heating oil," he said. "Right now we need to push more volume [of biodiesel]. Until the fuel prices go up, every biodiesel producer will continue to sit on the sidelines for now."
 
 Mujumdar said that the expansion of Buffalo Biodiesel's feedstock processing segment will allow the company to enter into contract negotiations with current biodiesel producers who are interested in buying its rendered yellow grease as feedstock for biodiesel production. At press time, Mujumdar didn't disclose potentially interested parties for its feedstock.
 
 "The feedstock we would sell to producers, they could turn it into a profit," Mujumdar said. "Right now, yellow grease is probably the preferred feedstock of choice for biodiesel production, along with maybe choice white grease as well." 
 
 HydroGenetics acquired Buffalo Biodiesel in January, marking its initial entry into the biodiesel sector. Prior to being acquired by HydroGenetics, New Jersey-based AgriFuel Co. had gained a 52.5 percent stake in Buffalo Biodiesel in 2007.

Buffalo Biodiesel completes N.Y. plant expansion

Like many companies are doing now, this publication is restructuring its operations to more efficiently perform its core functions. To that end, I am the new editor of Biodiesel Magazine, leading a team of three other experienced journalists who will focus on the biodiesel and biomass industries. I look forward to the opportunities and challenges our team will face in the coming year, and welcome any comments or suggestions on how to better serve the producers, suppliers, service and technology providers, and organizations focused on biodiesel or other alternative diesel fuels. 
 
 A little about me – I have been a BBI International staff writer for more than four years, writing monthly feature and news articles for Biodiesel Magazine, Ethanol Producer Magazine and Biomass Magazine. Before joining BBI International, I was an advanced engineering laboratory technician for an exhaust manufacturer that supplied automotive companies with critical components such as catalytic converters, diesel oxidation catalysts, diesel particulate filters, selective catalytic reduction systems, and more. Finally, I am a Michigan State University graduate – by the way, the MSU Spartans, who were underdogs, just defeated Kansas, Louisville and UConn in NCAA Men's Basketball, to reach the final championship game only to lose horrendously to UNC.
 
 Susanne Retka Schill, who has been a Biodiesel Magazine staff writer for more than two years, is the new assistant editor. She will not only continue to write great features for the magazine but she will also play a greater role in editing, as well as helping to determine the future direction of this publication. Schill is a University of Minnesota graduate and has an extensive agricultural background. Bryan Sims, the biodiesel plant list manager, is now an associate editor. Sims is a University of North Dakota graduate, and he also serves in the North Dakota Army National Guard. As a Guardsman, in June Sims will be deployed to Kosovo for a year, where he will be away from his new wife and BBI work family. We will miss him and will welcome his return. Another UND graduate and BBI International staff writer, Anna Austin, has also become an associate editor of Biodiesel Magazine. Austin is a good, new writer with a strong willingness to learn. I look forward to greater contributions from Anna in this magazine. Finally, journalism graduates of UND and U of M-Twin Cities, respectively, Jan Tellmann will continue as copy editor and Megan Skauge will remain the e-media coordinator. 

 
 I hope you enjoy this issue. While I'm aware that it is almost a cliché how embattled the biodiesel industry is, clichés become clichés for a reason. In this issue, Biodiesel Magazine covers several of the many issues facing the industry today. The financial crisis and poor biodiesel blend economics permeate all facets of the industry and can be sensed in the general mood of our news section and feature articles. Joe Jobe, CEO of the National Biodiesel Board, discusses some of the political challenges facing biodiesel, particularly a tax credit lasting longer than one year, in the "Inside NBB" section on Page 26. On Page 40, my feature article, "'Cold Soak' or Wet Blanket?", addresses technical issues with the Cold Soak Filtration Test and discusses production adjustments made at some facilities in order to produce B100 that can pass the test – a test no one seems to care for. Of course, there is always an issue with overcoming feedstock limitations of the biodiesel industry – is there enough, is it sustainable, is it a quality oil or fat? Schill, who tracks feedstock issues, this month explores the merging of traditional ag methods with high technology in India, in her "Mission: Jatropha" feature article on Page 58. 
 
 Finally, the public relations battle for greater acceptance of biodiesel is part and parcel of the nature of this magazine, which is why we all come to work every day. 
 
 Ron Kotrba
 Editor
 <a href="mailto:Ron Kotrba">rkotrba@bbiinternational.com</a>

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The Fight Goes On

An on-road test successfully demonstrated the performance and efficiencies of Permaflo biodiesel, a new cold climate form of biodiesel developed by Purdue University researchers. Permaflo is a biodiesel further refined to separate saturated from unsaturated methyl esters with a cloud point of -55 Celsius (-67 degrees Fahrenheit). Two vehicles ran on 250 gallons of B100 Permaflo from Anchorage, Alaska, to Fairbanks, Alaska, while one continued on to the Arctic Circle. The collaborative effort was led by researchers from the University of Alaska-Fairbanks, the Alaska Agricultural and Forestry Experiment Station, Indiana Soybean Alliance farmer-directors, Integrity Biofuels and Purdue agricultural engineering professor Bernie Tao.

ISA farmer-directors helped load a pickup with supplies before heading to the Arctic Circle from Fairbanks, Alaska, to test Permaflo Biodiesel which was made in Indiana from soybean oil through a process developed by Purdue University researcher Dr. 

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Permaflo put to the test in Alaska

Pipeline company Kinder Morgan Energy Partners anticipates beginning regularly moving B5 through its Plantation Pipe Line later this year. The 550-mile line offers the capability to deliver B5 to markets in Alabama, Georgia, South Carolina, North Carolina and Virginia. A successful test run of 20,000 gallons of B5 was delivered through the pipeline in October 2008. Kinder Morgan is also evaluating moving biodiesel blends through its 100-mile Portland to Eugene, Ore., pipeline.

Kinder Morgan to begin moving B5 via pipeline

The comment period for Version Zero of the sustainability criteria developed by the Roundtable on Sustainable Biofuels ended March 27. Version One is due out in June. America's coordinator Matt Rudolf said the top issues raised in the four U.S. meetings included concerns about how RSB certification will apply to next generation fuels, and the need for clear definitions, especially for terms such as high conservation value areas, wastes and residues. Also discussed was the importance of separating direct from indirect impacts; the lack of scientific consensus on the effect of indirect land use change on greenhouse gas emissions; the difficulty in finding local indicators for global principles considering the great differences in agriculture throughout the world; and questions about thresholds when the principles are implemented. For example, the U.S. and European Union have adopted different GHG reduction targets for biofuels. 
 
 While there was much commonality in comments internationally, Rudolf noted some differences. "Comments from the meetings in Colombia and the Dominican Republic tended to focus more on social principles – land rights and food security respectively – than those comments we received in the United States. In Argentina, we received significant concern about the multitude of standards being developed, and a desire for harmonization among them. We also heard a lot about the need to appropriately value co-products, since soy is a major biofuel crop in Argentina, and there is a tendency to not appropriately value the 80 percent meal that comes from soybeans."

Comment period closes on RSB Version Zero

The International Air Transport Association recently outlined its commitment to environmental responsibility, which includes the use of 10 percent alternative fuels within the next eight years.
 
 "IATA is committed to using 10 percent alternative fuels by 2017," said Giovanni Bisignani, IATA CEO and director general. "But we need the right biofuels, those that don't compete with food for land use or harm biodiversity, and that meet the current exacting technical specifications of jet kerosene." 
 
 Bisignani said the recent tests performed by Air New Zealand and Continental Airlines proved that biofuels are viable. "Now we need to speed up the certification process," he added. "The current timeline sees certification by 2013. We are challenging governments to deliver even faster-by 2010 or 2011." 
 
 The IATA represents approximately 230 airlines across the globe, or 93 percent of scheduled international air traffic.

IATA to use 10 percent biofuels by 2017

Virginia-based Xcelplus Global Holdings Inc. has plans to begin commercial production of two types of glycerin-based liquid fuels. One fuel, trademarked as GlyClene, can be used in standard turbine engines and industrial boiler applications. The other, GlyCoal, can be used of offset the use of coal at power plants. Both fuels are produced using waste glycerin sourced from biodiesel plants. To manufacture the fuels, glycerin is treated with a chemical and thermal heat process. According to Bill Smith, the company's chairman, the chemical facilitating compounds used to manufacture the fuels account for less than one percent of the formula. To date, Xcelplus Global Holdings has produced both fuels on a bench and pilot scale. The company is currently working to ramp up production to a commercial scale. Xcelplus plans to commercialize their patent pending proprietary technology through the acquisition and modification of existing biodiesel plants. Smith estimates that commercial production will begin during the first half of 2009. He said the company will likely produce more than 50 million gallons of the fuels by the end of the year.

Xcelplus to commercialize glycerin-based fuels

Biofuels analyst Will Thurmond released his latest comprehensive biodiesel report in late March. "Algae 2020: Next Generation Biofuels Markets and Commercialization Outlook" covers algae's market outlook and profiles several companies developing new technologies. Thurmond predicts the first large-scale algae production destined for the U.S. 
 
 Department of Defense will begin in 2011. "There is a lot of hype around algae," Thurmond admitted in a webinar previewing the publication. After discussions with experts, surveys of many companies, and tours of several research and development facilities, Thurmond expects algae production to reach commercial levels between 2013 and 2015. The cost for algae oil production will drop, market share will rise, and by 2020 he says algae will become a mainstream commodity for biodiesel, biocrude and ethanol. The report is available at <a href="www.emerging-markets.com">www.emerging-markets.com</a>.

Thurmond: algae commercialization to begin in 2011

Carlsbad, Calif.-based aerospace engineering company Flometrics Inc. planned a second launch of a biodiesel-powered rocket May 2, before press time. The previous March 7 launch failed due to a stuck valve, but rocket engineers gained a deeper appreciation for biodiesel as a result. CEO Steve Harrington said with RP-1 kerosene-based rocket fuel, the failure would have resulted in a fire. However, the higher flash point of biodiesel helped to minimize any fire.

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

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Flometrics launches second biodiesel rocket

Prompted by complaints from the European Biodiesel Board (EBB) that U.S. biodiesel was wreaking havoc on Europe's biodiesel industry, the European Commission has put in place temporary anti-dumping and anti-subsidy tariffs on all biodiesel produced in the United States. The tariffs became effective March 13 and will remain in place until July, at which time the Commission will determine whether to impose 'definitive' tariffs, which would last for the next five years.
 
 U.S. biodiesel producers are now required to pay between €211.20 and €237 (approximately $270 to $300) per metric ton for the anti-subsidy duties. The anti-dumping measures pile on an additional charge of between €23.60 and €208.20 (approximately $30 to $265) per metric ton.
 

 EU Trade spokesperson Lutz Guellner said the Commission determined there was a need for tariffs after a year-long investigation showing "clear evidence that unfair subsidization and dumping of U.S. biodiesel has taken place." Commission representatives visited a sampling of U.S. biodiesel facilities during its investigation, including Archer Daniels Midland Co. in Decatur, Ill., Cargill Inc. in Wayzata, Minn., and World Energy Alternatives LLC in Boston.
 
 Gene Gebolys, president and CEO of World Energy Alternatives, said his company was vocal in its opposition to provisional duties from the start and now that they are in place, proof will soon be available that the duties will hurt Europe's biodiesel industry more than they will help. "As prices rise in Europe, Europeans will be paying more for less biodiesel, putting even more pressure on their already dwindling diesel stocks," he said. "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." 
 
 On the contrary, EBB Secretary General Raffaello Garofalo said he believes tariffs are a necessary means to "level the playing field" for European producers. "It's good if biodiesel is supported everywhere worldwide," he said. "But it should not be supported for exporting at dumping price to Europe. This [tariffs] will put an end to an unacceptable situation."
 
 The National Biodiesel Board continues to support its case that U.S.-produced biodiesel has not harmed the European industry. "For those [European] companies that are faring poorly, it is factors not related to U.S. competition that are the cause," said NBB Vice President of Federal Affairs Manning Feraci. Rather, he said, bad business models, high feedstock costs and detrimental changes in European state policy are more to blame for the European biodiesel industry's problems than U.S. B99.
 
 The Commission determined that from a period beginning April 2007 and ending March 2008, the United States held a 17 percent market share of Europe's biodiesel imports. Imports of U.S. biodiesel to Europe increased from 700 million metric tons in 2005 to more than 1 million metric tons by March 2008. While it is certain that some U.S. producers will continue to export their product to Europe during the temporary tariff timeframe, many will be unable to do so profitably anymore.

EU Trade spokesperson Lutz Guellner said the European Commission determined the need for tariffs after a year-long investigation showing "clear evidence that unfair subsidization and dumping of U.S. biodiesel has taken place."

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European Union imposes biodiesel tariffs

California is proceeding with plans to implement a low carbon fuel standard (LCFS) that would seek to reduce greenhouse gas (GHG) emissions from the state's transportation fuels by 10 percent by 2020. 
 
 In March, the California Air Resources Board released its proposed regulation to implement the LCFS, which would diversify the variety of fuels available within the state, boost markets for alternative fuels, and require fuel providers, refiners, importers and blenders to ensure that fuel they provide the California market meet an average declining standard of carbon intensity, determined by examining the fuel pathway, which is defined as the sum of the GHG emissions associated with the production, transportation and consumption of the fuel. According to CARB, some fuel pathways also result in the release of additional GHG emissions through the conversion of forestlands and other carbon-containing habitats, known as indirect land use change. 
 
 CARB's inclusion of indirect land use change to determine the carbon-intensity of fuel is challenged by many scientists and biofuels industry leaders. In March a group of scientists submitted a letter to California Gov. Arnold Schwarzenegger questioning CARB's intention to include indirect land use impacts for biofuels under the state's LCFS. According to the letter, this field of science is in its nascent stage and is controversial in much of the scientific community. The scientists believe that the inclusion of indirect land use change is highly premature, that the science is far too limited and uncertain for regulatory enforcement, and that indirect effects are often misunderstood and should not be enforced selectively. 
 
 While the proposed LCFS does include indirect land use impacts for some biofuels – including ethanol – land use estimates for biodiesel are not currently listed. According to documentation published by CARB, this is due to the fact that estimates for biodiesel are very preliminary at this time. In the proposed regulation's staff report, CARB states that staff members are concerned that their estimate of land use allocation for biodiesel coproducts may significantly underestimate the land use impacts of soy-based biodiesel. Once the board has a better estimate of these land use impacts, the value will be published for public comment and proposed for certification. 
 
 A preliminary fuel pathway document published by CARB in February regarding biodiesel manufactured from Midwest soybeans estimates land use change to be 42.0 grams of carbon dioxide equivalent per megajoule of fuel (gCO2e/MJ). In comparison, CARB's proposed regulation to implement the LCFS assigns corn-based ethanol a land use value of 30 gCO2e/MJ. 

 
 California is also seeking to set standards to control GHG emissions from motor vehicles. Before this policy can be implemented, U.S. EPA must approve a waiver request allowing the state to adopt these limitations on tailpipe GHG emissions. The waiver request, originally submitted to EPA in Dec. 2005, was denied in March 2008 by then EPA Administrator Stephen Johnson. In January, California asked current EPA Administrator Lisa Jackson to reconsider the waiver. President Barack Obama has also requested that EPA reconsider the denial. In February the agency announced it would reconsider California's waiver request. A hearing on the matter was held March 5, and written comments from the public are being accepted until April 6. An EPA spokeswomen said that the agency has no estimate of when a final decision of the waiver request will be issued.

California works to reduce GHG emissions

The U.S. EPA held a Webinar on Feb. 25 to explain the development of its Moderated Tracking System which will be used to accurately and securely track renewable identification number (RIN) credits. The program is intended to help accurately enforce the mandates under RFS2. Hitherto, RIN transaction reporting has been something only ethanol producers have had to manage, for the most part; but under RFS2 biodiesel RIN transactions, in addition to RINs associated with other types of biofuels, will also be managed as part of EPA's enforcement of RFS2. 
 
 The renewable fuels registry RINSTAR has been working with EPA to help develop a federal register through which all RIN transactions would flow to ensure accuracy and honesty in reporting. On March 5, the Webinar along with live polling that EPA originally held Feb. 25 was rebroadcast by RINSTAR and live polling. One of EPA's missions in originally holding the Webinar was to collect industry-stakeholder feedback regarding RIN tracking and its new program to do so. 
 
 The need for EPA to moderate RIN transactions is apparent in the large number of invalid RINs, mostly ethanol, which have entered the marketplace. In 15 months' time there were 27,000 rejected, invalid RINs, according to Clayton McMartin, president of Clean Fuels Clearinghouse and RINSTAR. "During that time, we have safeguarded our membership from hundreds of millions of invalid Gal-RINs," McMartin said. Through MTS, the EPA will not play "matchmaker" in the market with RINs but instead will act as an accounting mechanism to bring integrity to the market. 
 
 "MTS is a terrific program because there was a major flaw with the original RIN program in that it is very cumbersome in terms of settlement and verification of whether the RINs were actually valid or not," said John Gelbard, CEO of RINXchange, an exchange where the sale and purchase of RINs can be conducted. "You have this 38-digit number and it is very complex to keep track of transactions. Every single transaction, which normally is at least a few hundred thousand RINs, involves a whole bunch of separate RIN numbers and every time one of those were transferred or broken up into separate items, there was possibility for human error in transposing them." He said it is very hard for parties to know when they buy RINs if they were getting valid RINs; or if there was an error, that it could be corrected. "It's not that there is fraud going on, but just a lot of back office clerical work," Gelbard said. 
 
 Currently under RFS1, RIN reporting to EPA is quarterly, which means by the time EPA goes through them all it could take six months before a party learns of invalid RINs. Through MTS, EPA will become a RIN bank for participants, and EPA will keep a running tally on everyone's positions. The MTS is not expected to go into effect until the final ruling for RFS2 is released, anticipated for early 2010. MTS will allow EPA to debit a RIN seller's balance and credit the buyer's account in virtual real time, or within 3 days. As a result, EPA will no longer accept spreadsheets as a means to report RIN transactions once MTS is enacted. 
 
 Another major change starting next year under RFS2 will be the introduction of RINs specific to the type of renewable fuel, such as corn-ethanol, advanced biofuel, cellulosic ethanol or biodiesel. So, instead of having one generic RIN regardless from which renewable fuel source it came, there will be RINs that identify what specific type of renewable fuel it represents. "That's a major change," Gelbard said of RFS2. "If they didn't have the [MTS] bookkeeping correction at the same time as this change goes into effect, it would have been a nightmare scenario because you would have had not only potential problems with RIN numbers but potential problems with the source of the RINs." 
 
 The Webinar, and polling data gathered by RINSTAR, can be viewed at <a href="www.cleanfuelsclearinghouse.com/2009/03/epa-mts-webinar-3-5-09/">www.cleanfuelsclearinghouse.com/2009/03/epa-mts-webinar-3-5-09/</a>.

EPA rolls out RINs Moderated Tracking System for RFS2 enforcement

The $787 billion American Recovery and Reinvestment Act President Barack Obama signed into law Feb. 17 includes $43 billion to support energy development. The Clean Energy Finance Authority program included in the recovery plan is intended to revive the renewable energy industry and double the amount of energy produced from renewable sources over the next three years. Collectively, this funding is expected to leverage nearly $100 billion in clean energy projects.
 

 For producers, the legislation provides $6 billion for the Innovative Technology Loan Guarantee program to provide support for more than $60 billion in loans for renewable technologies. The legislation also provides $150 million to support $3 billion in rural business loans and grants.
 
 In addition, the recovery plan creates a new 30 percent tax credit for investment in property used to re-equip, expand or establish a manufacturing facility designed to produce renewable energy; and to support the transmission of intermittent sources of renewable energy. The tax credit can also be used for property to capture or sequester carbon, property designed to refine or blend fuels or produce energy conservation technologies, or other advanced energy property designed to reduce greenhouse gases (GHG). 
 
 For retailers, the recovery plan also temporarily increases the business credit for alternative refueling property from 30 percent to 50 percent of the cost of qualifying property, and increases the cap on the credit for depreciable property from $30,000 to $50,000. It also increases the cap on the credit for non-depreciable property from $1,000 to $2,000, and applies to property placed in service during tax years 2009 and 2010.
 
 For researchers, the legislation provides $16.8 billion for the Energy Efficiency and Renewable Energy Program, including $2.5 billion for applied research, development, demonstration and deployment activities to include $800 million for projects related to biomass. This particular area of funding also includes $300 million for the Alternative Fueled Vehicles Pilot Grant Program for grants to public or nonprofit entities to purchase alternative fuel vehicles, and the installation or acquisition of infrastructure necessary to support the vehicles. 
 
 In addition to the recovery act, as of March, Obama's proposed federal budget for fiscal year 2010 contained billions of dollars in new spending for renewable fuels-related projects. 
 
 The budget included $10.5 billion for the U.S. EPA, a 34 percent increase from 2009. The EPA budget included spending to develop a cap-and-trade program, which would require a reduction of GHG to 14 percent below 2005 levels by 2020. Revenue from the program is expected to begin accruing in fiscal year 2012 and is projected to total $150 billion over 10 years. 
 
 Estimated allocations for the USDA increased slightly from $24.6 billion in 2009 to $26 billion in 2010. Included in the funding is $250 million in loans and grants for renewable fuels projects.
 
 Under the proposed budget, the U.S. DOE is allocated a total budget of $26.3 billion. Among its expected duties is continued support for research, development, demonstration and commercialization of biofuels and renewable energy through loan guarantees.

President Barack Obama signed the American Recovery and Reinvestment Act into law Feb. 17, and $43 billion of the $787 billion package is slated to support energy development. 

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Funds for renewable energy in bailout package

Independence, Ore., residents wishing to gain some environmentally friendly ground will soon have the opportunity to lease space at Independence Station, a facility which its developers have dubbed the "world's greenest building." 
 
 Nearly 50 percent complete in April, the $15 million building is expected to be finished by early 2010. It will house 15 condominiums and multiple office spaces and retail stores, possessing a multitude of green characteristics including rainwater collection and reuse, extensive day lighting, composition from recycled and reclaimed building materials and components, and power generated from biodiesel. 

 
 The 57,000 square-foot building is also expected to be awarded the highest rating recorded by the Leadership in Energy and Environmental Design Green Building Rating System, according to main project developer and owner Aldeia LLC. 
 
 The LEED rating system, which is developed by United States Green Building committees, is designed to guide and distinguish high-performance commercial and institutional projects, including office buildings, high-rise residential buildings, government buildings, recreational facilities, manufacturing plants and laboratories. Out of a possible 69 points, 
 Independence Station is expected to score at least 64. 
 
 Besides residential and business space, the building will also house facilities for biofuel production, education and research. Aldeia plans to collect yellow grease from local restaurants in order to produce biodiesel on site, which will fuel seven Cummins Inc. generators. "We have plans to work with the chemical engineering department at Oregon State 
 University, so our personnel plans are small," said Steven Ribeiro, Aldeia principal developer. "I will be involved in the production personally, and have purchased a 3,000-gallon retired home heating oil delivery truck that has been logoed up as 'Energy for Independence'." 
 
 Ribeiro said he has made arrangements with the local restaurants to collect their waste oil year-round, in exchange for an endorsement from Aldeia and table tents explaining that the restaurants are helping to support the World's Greenest Building with their waste oil. 
 
 B99 will also be purchased from SeQuential-Pacific Biofuels, a Portland, Ore.-based biodiesel provider. "We will use a smaller amount in the summer when the PV (photovoltaic) panels produce the most amount of power and our heat needs are low, and more in the cool winters here," Ribeiro said. "We are very close to SeQuential Biofuels, so we always will have a supply assured."
 
 The anticipated annual utility savings of Independence Station is expected to be approximately 92 percent, when compared to a typical code-compliant building of the same size and type. The project was awarded the "Spirit of the West Award" for the best mixed-use green building by BUILDERnews Magazine. 
 
 Aldeia has two additional LEED projects in Kuna, Idaho, and Moreno Valley, Calif. Other Independence Station project partners include general contractor and project manager Johnson Controls, and Ankrom Moisan Associated Architects, the architect of record. 

 
 Aldeia's work with biodiesel doesn't end with these projects. Ribeiro said the company is also currently involved with algae-derived biodiesel developer Green Star Products Inc. "They are currently putting together a total biorefinery project in Idaho that will totally close the energy loop using non-food feedstocks for both ethanol production and for biodiesel production, as well as several valuable byproducts," he said. "They are blazing the trail for real energy independence, and we are blazing the Smart Grid and hyper energy conservation trail towards the same end-where else are you going to find a hybrid biodiesel condo?"
 
 Ribeiro said the company's goal is for residents in the building to live much better than the average American, but to do so on just 17 percent of the energy that the average American consumes. "I'm referring to their complete lifestyle," he said. "Independence Station will be the highest performing Smart Grid building to come out of the ground anywhere."

Independence Station will utilize biodiesel and co-generation units to provide energy for a multi-million dollar, mixed-use building in Independence, Ore./PHOTO: Aldeia LLC

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Biodiesel to fuel "World's Greenest Building"

With its first 5 MMgy production facility now operational in Baltimore, New Generation Biofuels Holdings Inc. is seeking customers for its unique biofuel using emulsification technology. "Until we had our plant up and running it was difficult to convince a utility customer that we could be a reliable supplier," said CEO Cary Claiborne to investors in a mid-March call. 
 
 It was the first opportunity for Claiborne to answer questions about the company's progress in his new position as CEO, stepping up from chief financial officer to replace former CEO David Gillespie. Claiborne will also continue the duties of CFO in one of several cost containment measures the company is taking. Claiborne told investors employees have agreed to take equity compensation in place of 30 percent of their cash compensation as part of cost-cutting efforts. 
 
 The company is targeting power generation, commercial and industrial boilers and generators as potential users. As production ramped up and customer test burns were successfully completed, the company announced new contracts. The latest at press time was with Catoctin Mountain Growers Inc., in Keymar, Md., for a contract to supply up to 370,000 gallons to heat 12 acres of greenhouses. That contract followed days after a 371,000 gallon year-long contract with Baltimore-based Delta Chemical Corp. Earlier, New Generation announced sales agreements with power producer Dynegy Inc. to supply 1.7 MMgy and Taunton (Mass.) State Hospital for 220,000 gallons annually. 
 
 The company is encouraged by the growing interest. Kim Johnson, power generation sales representative said one example of this was when a utility company that followed up quickly after a test burn requesting a news release and meeting. "It was them wanting to do the news release – not us," Johnson said. She also expects increased interest with the growing expectation that carbon legislation is coming under the Obama Administration and Democratic Congress. "This could be a very significant market for us," she said. 
 
 New Generation's biofuel combines vegetable oil with water and proprietary additives to form a stable emulsion. Emissions tests with the biofuel have shown significant reductions in nitrogen oxides (NOx) emissions – a 40 percent reduction compared to petroleum fuels in power generation and boiler applications. Sulfur oxide emissions drop to near zero. David Wright, vice president product development, explained the water content in the fuel gives the advantage in NOx performance. "Because of the water our peak combustion temperatures are lower," he said. In one test burn, sulfur levels in the mid-50 parts per million when using low sulfur diesel were dropped to zero. The water also contributes to a lower Btu content.
 
 New Generation holds the North American, Central American and Caribbean license for the emulsion technology developed in Italy by inventors Ferdinando Petrucci and Andrea Festuccia. "Emulsions are the combination of products that are normally immiscible," explained Festuccia, New Generation's chief technology officer. "A combination of vegetable oil, recycled vegetable oil or animal fats, water and the proprietary formulation of surfactants produces a renewable biofuel that can be used as a replacement for diesel and fuel oils without the need for engine modification." The manufacturing process is low energy, produces no byproducts and is feedstock neutral. The necessary tanks and mixing equipment require a relatively small footprint, have comparatively low capital requirements and can be built quickly. On Sept. 15, New Generation secured a site at the port location of Atlantic Terminaling in Baltimore, and by early February the 5 MMgy plant was operating on the 5,000-square-foot site. The plant can be expanded to 50 MMgy.
 
 The emulsified biofuel has properties that make it different than both a straight vegetable oil and biodiesel. Compared to straight vegetable oil, Festuccia said New Generation's biofuel has improved viscosity at different temperatures, excellent emission performance, better atomization and combustion properties, and a lower pour point. That lower pour point of minus 21 degrees Celsius is one of the more dramatic differences compared to biodiesel. In addition, Festuccia said the New Generation biofuel is stable and doesn't have solvent effects on the gaskets and piping involved in power plants or boilers. Also, without a chemical reaction to form the fuel, New Generation's biofuel creates no byproducts.
 

 Presently, the company is using a straight feedstock such as straight soy oil or straight waste vegetable oil, adjusting the additives to meet quality specifications. Future work will be done on feedstock blends, Wright said. Customers mainly use the biofuel uncut, he added. Future work will be done to evaluate performance on blends with other liquid fuels. The fuel was successfully tested in Italy in passenger diesel engines, but will need further performance tests in the heavy duty diesel engines used in the U.S.

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New Generation's 5 MMgy plant at Baltimore requires just 5,000 square feet for the tanks and mixing equipment for its emulsification process./PHOTO: New Generation Biofuels

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New Generation debuts emulsified oil-based biofuel

None of us ever wanted to know this. Surviving an economic crisis is a terrible experience. In the biodiesel business, it has been nothing short of traumatic. Dozens of biodiesel producers have plants that are going out of business or sitting idle. These are not just large, faceless corporations. These are National Biodiesel Board members – family-owned businesses, small businesses and farmer-owned cooperatives. It is devastating for us to see so many lights go out in the plants of our members. 
 
 But take heart. It may be hard to appreciate this at a time when so many are suffering, but we will survive this crisis. I believe whole-heartedly that, although it is hard to imagine now, we are among the fortunate. Why? Because the biodiesel industry is exactly the type of green industry this country so desperately needs to turn things around. And that has been recognized by the man in charge. 
 
 In his first address to a joint session of Congress, and in subsequent press conferences, President Barack Obama promoted a bold "new energy" agenda. He's called for ensuring a vibrant, renewable energy industry as one key element of his economic recovery and energy security plan. "We will invest 15 billion dollars a year to develop technologies like wind power and solar power; advanced biofuels, clean coal, and more fuel-efficient cars and trucks built right here in America," Obama said. 
 
 This is good news for our members. Biodiesel is the only fuel commercially available today that meets all the federal government's criteria of an "advanced biofuel." And it's the only game in town when it comes to real, renewable energy for heavy-duty vehicles. But biodiesel is facing monumental challenges in helping to make the president's vision of energy independence a reality. 
 
 What do our members bring? In a time of financial uncertainty, biodiesel's contributions to the American economy are abundant. Last year alone, U.S. biodiesel producers supported 50,000 green collar jobs, contributed $4 billion to the nation's economy, and displaced almost 700 million gallons of petroleum. 
 
 The NBB's robust communications and government affairs efforts are leading the charge to make sure the public and Congress know this. Our public policy vision will put all the elements in place to make the economics of this industry work. The Governmental Affairs program is just one of the many ways NBB helps remove barriers for this industry, but it is the single most important service we provide to our members. And your NBB governing board is leading the way forward. It is structured to represent those who make up the biodiesel community and is an engaged, active group of leaders. 
 
 Recently, they came together in Washington, D.C. to discuss the major issues facing the industry, and to meet with the tax-writing committees and other key Members of Congress. 
 
 They asked policymakers to put in place a stable policy framework that will signal a long-term federal commitment to a policy valuing the displacement of petroleum diesel with low carbon biodiesel. Specifically, the Governing Board discussed the need for a long-term extension of a biodiesel tax incentive that is structured as a production excise tax credit, consistent with NBB membership resolutions. They also explained the pressing need for successful implementation of a workable Renewable Fuels Standard (RFS2). This effort helped yield a letter from 12 U.S. Senators to EPA Administrator Lisa Jackson and 19 U.S. House Members to Office of Management and Budget Director Peter Orszag, urging the Obama Administration to quickly implement RFS2 in a manner consistent with sound science. And in such a way that allows the biodiesel industry to utilize vegetable oils as a feedstock. The entire Governing Board also met personally with Secretary of Agriculture Tom Vilsack. Secretary Vilsack promised and followed through on holding discussions with EPA Administrator Jackson about implementation of RFS2, and also reported his directive to put a priority on the implementation of the Bioenergy Program for Advanced Biofuels, a program that will help biodiesel producers, which was reauthorized in the Farm Bill.
 
 NBB is dedicated to doing everything possible to achieve and demonstrate value to its members through federal policy, communications, technical research, and beyond. This month's Inside NBB discusses how some of those programs benefit the industry. 

 
 Despite the current struggles, biodiesel has always been like the Little Fuel that Could. It is now a much bigger fuel and the stakes are higher, the challenges larger. But just like that little locomotive that made it over a steep and dangerous mountain by not giving up, biodiesel must take heart and keep on chugging over this current mountain – right on to the next one. 
 
 Sincerely,
 Joe Jobe
 Chief Executive Officer
 National Biodiesel Board

Joe Jobe, CEO of the National Biodiesel Board

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NBB Members: Take Heart

Without the National Biodiesel Board's Technical and Operations program, biodiesel as we know it would not exist. Biodiesel as the cleaner burning alternative to petroleum diesel, biodiesel as the fuel recognized and formalized as operational in most diesel engines, and biodiesel as recognized by major customers and by the ASTM wouldn't exist. Securing ASTM blend specifications and working to improve those standards is a critical role of NBB's Technical and Operations effort. 
 
 The program works to reduce or eliminate technical barriers to biodiesel sales and serves as the primary industry leader measuring biodiesel's benefits. Technical and Operations includes educating key decision makers, overseeing fuel quality efforts, building industry credibility and coordinating industry, academia, and government agencies.
 
 Technical and Operations works to stay ahead of industry trends, questions, and challenges and to offer sound technical guidance to facilitate continued industry growth and strength. Their priorities include: maintaining and improving ASTM standards, providing technical data to ensure fuel legitimacy, securing positive B20 position statements from OEMs, and encouraging B20 in future engine designs. 
 
 This program draws on the foremost thinkers in engineering, chemistry, physics, mechanics – the list is endless and the depth of resources infinite. The critical link is the NBB. 
 
 NBB's Technical and Operations program coordinates technical programs among stakeholders to help ensure limited resources are divided across industry priorities, to eliminate duplication, and to provide the critical technical direction required to maintain biodiesel's standing as a viable alternative fuel.

NBB Technical & Operations Creates Biodiesel Industry Foundation

Web news posted April 29, 2009, at 7:22 a.m. CDT
 
 Every day, the oil and gas industries produce millions of barrels of process water during the refining process. This stream, which usually ends up being injected back underneath the ground, is considered waste. <a href="http://www.cehmm.org/">The Center of Excellence for Hazardous Materials Management </a>(CEHMM) in Carlsbad, N.M., however, has found that the characteristics of this "produce" water are excellent for the cultivation of oil-making algae. "This is a nearly inexhaustible resource that nobody wants," said Douglas Lynn, executive director for CEHMM. 
 

 While the price drop for crude has discouraged the interest of the oil industry in this research, the rest of the world seems to continue waiting intently for the "next generation" of biodiesel manufacturers which can make fuel out of non-food-resources. "We saw some interest in our work from the oil companies when the price of oil was over $100 per barrel, but since it fell below $40 per barrel, the inquiries seemed to vaporize," Lynn said.
 
 CEHMM told Biodiesel Magazine that it has indentified a wild, salt-water strain of algae suited for growth in the extremely "brine-laden" subterranean waters found in southeastern New Mexico. "We've discovered that we can mimic the characteristics of these waters in our ponds where we are growing algae," he said. CEHMM has nevertheless been able to manipulate the water to create prime cultivation conditions, and, without using genetic technologies, enhanced the oil-making performance of the algae shortly before the material is harvested. Lynn, however, could not divulge the technique being developed as a trade secret and said only that it involves indentifying the "triggers" which are conducive to increased oil expression in the algae strain. These oils "show incredible purity and viability" for biodiesel refining, CEHMM stated. 
 
 Of course, using waste water from either the oil and gas industries or the unutilized sources from underground reservoirs put no pressure on domestic water supplies. This allows the process to avoid the criticisms which claim that biofuels add pressure to natural resources instead of alleviating it. "The intrinsic assets of the desert southwest I believe are going to lead to tremendous interest in the energy potential of this area and a lot of development," Lynn says. 
 
 The development of the current project has involved growing the algae in open "raceway" ponds and protecting the specific strain from competition and predators. "Our cultures show incredible purity, meaning their composition has not been compromised or invaded by other strains," Lynn says. "Some of the problems associated with growing algae are not much different than traditional crops…like than blackbirds flying into fields to eat grain. We've been able to avoid this, and in a matter of hours we can detect an invader in our ponds and eliminate it."

The algae ponds at the Center of Excellence for Hazardous Materials Management in Carlsbad, N.M. Source: CCEHMM

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Saline waste water found perfect for algae

A relay race cannot be won in a single step, nor by a single runner. Pursuit of the finish line and cooperation are paramount to success. The same is true for biodiesel. The National Biodiesel Board works tirelessly to advance diverse members' priorities, and to move the entire industry towards its finish line: the 5x15 target. The NBB's annual program plan, developed each year by members through an intensive prioritization process, sets the course for the NBB. 

 
 Industry Coordination/Prioritization, in concert with the other four NBB program priorities set forth by members, keeps members and stakeholders coordinated and striving to reach goals for the greater good of biodiesel. The NBB helps facilitate a clear path for information and interactions among biodiesel producers, farmers, government, engine manufactures, the petroleum industry, scientific community and other key stakeholders to keep the industry moving in a common direction. 
 
 Initiatives supporting fuel quality, petroleum outreach, Bioheat fuel, BioTrucker, fleet outreach and feedstock development are major components of the Industry Coordination/Prioritization program area. The National Biodiesel Conference and Expo is another important part of this priority area bringing together biodiesel stakeholders in an unparalleled opportunity for collaboration and progress. 
 
 The NBB serves as the central entity to coordinate biodiesel activity, including research and development nationwide. It is the baton to the relay team as the industry heads to 2015.

Industry Coordination/Prioritization Assures Biodiesel Success

Connections, relationships and affiliations within the National Biodiesel Board work to benefit the biodiesel industry. One recent example is Amber Thurlo Pearson, who served as NBB's Communications Specialist from 2004 to March 2009. After a recent move and a new job as project manager for the Central Texas Clean Cities Coalition, she continues to have a hand in promoting renewable energy. "I really got bitten by the biodiesel bug, and the passion to promote alternative fuels in general, by working for the NBB," said Pearson, who moved to Austin, Tex., with her husband Mike for his new job. "I feel very lucky to be able to continue that practice by moving to the Clean Cities organization. Of course, I will miss most the great industry people I have been able to work with and learn so much from." 
 
 Similar connections can be seen nationwide. There are countless trade associations, advisory boards, organizations, and advocacy groups related to biodiesel. NBB staff and contract members play an active role monitoring these various groups and representing the industry's priorities. Among the groups are the National School Transportation Association, American Public Transit Association, American Lung Association, National Clean Cities, Alternative Fuel Vehicle Institute, Environmental & Energy Study Institute, National Algae Association, Association of Diesel Specialists, National Conference of State Legislatures, US Canola Association, ASTM, and Roundtable of Sustainable BioFuels.

Amber Pearson, Former NBB Communications Specialist

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NBB Connections Benefit Industry: Pearson Joins Central Texas Clean Cities

From major trucking and vehicle fleets to single van delivery services, potential biodiesel customers demand assurance that biodiesel will support their operations with seamless integration. The key is quality. The National Biodiesel Board's Quality Assurance program works to address fuel quality concerns and take proactive steps to promote fuel quality. 
 
 Consistent production of quality biodiesel is critical to the industry's success. The NBB's Quality Assurance program facilitated the creation of BQ-9000, a voluntary fuel quality assurance program, overseen by the National Biodiesel Accreditation Commission (NBAC). BQ-9000 couples the foundations of universally accepted quality management systems with the product specification ASTM D 6751, and has become the premier quality designation in the industry. 
 
 The program covers storage, sampling, testing, blending, shipping, distribution and fuel management practices. Any biodiesel producer or marketer is eligible to become a BQ-9000 Producer or BQ-9000 Marketer. Currently there are 16 BQ-9000-certified marketers and 37 BQ-9000-certified producers. Last year BQ-9000 producers manufactured more the half of the biodiesel produced in the county. 
 
 The NBAC also recently released a new certification for commercial laboratories that analyze biodiesel. 
 
 Assuring a quality product is vital to biodiesel's future, and the NBB remains best-positioned to orchestrate these continuing efforts.

NBB Quality Assurance Program Assures Biodiesel's Future

According to a July 2008 survey, 69 percent of people are familiar with biodiesel. That compares to just 27 percent five years ago. This significant growth is not an accident. Raising awareness, building confidence in biodiesel, and promoting its benefits to a national audience are core functions of the National Biodiesel Board. 

 
 Having a national, collaborative approach to industry-wide communication gives biodiesel producers, marketers, retailers, investors, feedstock suppliers, equipment dealers and stakeholders an exponential advantage. The NBB's communications team involves some of the nation's most experienced and valued communicators and employs communications professionals unmatched in talent and commitment. Relationships with related associations and trade groups create an inner-connected, coordinated strategy that is showing real results. 
 
 A national survey by Wilson Research Strategies this year showed 85 percent of people feel favorably towards biodiesel, up from 77 percent last year. The increase is significant considering the multi-million dollar ad campaign from Grocery Manufacturers Association launched to spread misinformation during the same time frame. NBB plays an important role helping manage issues and concerns that inevitably arise, whether on a state, regional or national level. 
 
 A key focus area for the National Biodiesel Communications team remains sustainability. The team promotes the efforts of the Sustainability Task Force, which recently completed a year-long process to formalize sustainability principles for the industry. Topics relating to sustainability – indirect land use, greenhouse gas calculations, water use, global warming, and food supply – continue to be hot button issues. With a continued proactive, coordinated effort, the widespread benefits of biodiesel are sure to overcome these challenges. 
 
 NBB's cyber-efforts have given biodiesel an online presence, established as the result of fundraising efforts. A variety of funding sources have worked together to support a Google ad campaign, new YouTube page (youtube.com/nationalbiodiesel), a strong Twitter presence, and the foundational work for a formal Facebook platform. This will help get credible biodiesel information into an arena that is astonishingly important in driving public opinion and mainstream media coverage. Another critical component of the communications program is providing information to the public and continuing to build NBB's Web site, biodiesel.org, as the leading source of credible biodiesel information worldwide. 
 
 Despite biodiesel's eight-point jump in favorability, the most recent study also sheds light on potential hazards. Biodiesel's position as a valued, environmentally responsible, home grown alternative energy source continues to come under attack. Fact sheets, letters to the editor, news releases, editorial board meetings, a social media campaign, the creation of biodieselsustainability.org, and a constant vigilance to shine light on the truth are all tools the NBB communications team has called on in what has become a battle to safeguard biodiesel's good name. The reality of today's challenges demand a continued, proactive effort to ensure biodiesel is recognized as what it is – a renewable, sustainable, cleaner burning fuel that is good for America.

National Biodiesel Board Communications drives interest, industry

John Arbuthnot said, "Law is a bottomless pit." It falls to the National Biodiesel Board's Government Affairs team to monitor the constant, endless changes and movements that are part of public policy, which has a direct impact on the U.S. biodiesel industry. 
 
 NBB's government affairs program integrates the biodiesel industry's diverse and widespread interests into a cohesive voice and targeted industry goals. 
 
 In 2003, there were about 100 biodiesel related bills considered in state legislatures. Last year, that number topped 650. NBB takes a proactive role in monitoring legislation that could impact the biodiesel industry. Strategic relationships across the country allow NBB to positively impact the overall state regulatory picture, a feat impossible on a smaller scale. 
 
 The NBB also maintains a significant presence in Washington, D.C., to ensure that the voice of the U.S. biodiesel is industry is heard in the federal legislative and regulatory process. NBB's Washington DC staff interacts regularly with U.S. Congress, federal agencies and other relevant stakeholders to advocate on behalf of the industry's interests, and works to influence the process in a manner consistent with the goals and priorities established by NBB's membership. 
 

 Proactively monitoring and participating in the development of federal and state policies must be an ongoing priority for the industry.

NBB Government Affairs Safeguards Biodiesel Opportunities

›Propel Fuels Inc., a California-based renewable fuels retailer, announced the hiring of Matt Horton as the company's new CEO. Horton has extensive expertise in clean technology and renewable fuels. Propel Fuels said his addition comes at a time of tremendous growth for the company, which recently launched the first statewide network of low-carbon fueling stations in California. 
 
 According to Propel Fuels, the network of stations, which sell E85 and biodiesel, will keep dollars in the state while creating hundreds of new green-collar jobs. The company has opened five stations with a goal to have hundreds across the state within the next five years.
 
 ›Texas-based Earth Biofuels Inc. has changed its name to Evolution Energy Inc., as part of a strategy to further pursue biodiesel production, marketing and distribution. The company recently announced plans to install approximately 30 storage tanks with a total capacity of more than 1 million gallons at its 10 MMgy production facility in Durant, Okla. A methanol recovery system will also be added to the facility.
 
 In March, the company appointed former USDA official Douglas Faulkner to its advisory board and said he will utilize his governmental expertise to develop company tactics and strategy. 
 
 ›German quality assurance firm AGQM discontinued its quality assurance program for public filling stations this spring, blaming the phasing out of German tax incentives and plummeting retail biodiesel sales due to last year's high oil and commodity prices. AGQM will continue its quality management services for biodiesel producers and traders who supply biodiesel for mandated blends, as well to wholesale businesses. At the same time, German biodiesel producer Petrotec AG released preliminary year end figures showing a 28 percent increase in sales to €77.7 million ($105 million), and a preliminary overall loss before interest and depreciation of € 21.1 million ($28 million). Petrotec commissioned its second biodiesel plant in 2008, bringing its production capacity to 185,000 tons per year (55 MMgy), using waste vegetable oil as feedstock.
 
 ›OriginOil Inc. signed a cooperative agreement with the U.S. DOE's Idaho National Laboratory that will help validate and commercialize OriginOil's algae-to-oil technology. Using the INL's cutting-edge equipment and resources, the first phase of the multi-phase program will focus on the collaborative development of an energy balance model for photobioreactor-based algae systems. Subsequent phases will involve validation of OriginOil's processes and piloting specific commercial applications. OriginOil is also targeting regional and national partners able to manufacture, sell, install and support Origin Oil's systems on a local level, according to president and CEO Riggs Eckelberry. Rollouts to these regions are expected to start next year. 
 
 ›Bayer CropScience and the German Leibniz Institute of Plant Genetics and Crop Plant Research recently announced the formation of a research agreement to develop modified, high-yielding canola hybrids. Bayer's primary aim is to incorporate the partnership's resulting innovations into its InVigor Canola seed business in North America and develop global oilseed rape products for markets with a high demand for healthy, high-quality oils. 
 
 ›Renewable Fuel Corp. Inc., a Nevada-based biodiesel producer and distributor, recently announced the company is seeking off-take agreements for the purchase of biodiesel from producers in Malaysia. The company recently opened a new corporate operations office in Kuala Lumpur, Malaysia. This office will manage the operations of the company's biodiesel refineries and distribution facilities. Renewable Fuel Corp. currently operates a 60 MMgy biodiesel production facility in Kuantan, Malaysia. The company is in the process of developing two additional biodiesel production facilities and a jatropha plantation in Dumai, Indonesia. 
 

 ›Scottish Bioenergy Cooperative Ventures has been awarded the £40,000 ($57,000) Climate Change Innovation Prize from Royal Dutch Shell PLC's Shell Springboard program. 
 
 Based in St. Cyrus, Scotland, Scottish Bioenergy builds, sells and operates photobioreactors for capturing carbon dioxide emissions to grow algae feedstock for biodiesel production. 
 
 Recently, the company successfully tested a small-scale version of its photobioreactor at the Glenturret Distillery in Crieff, Scotland. The next phase of the project will be to build a photobioreactor at the distillery that's capable of converting 20 metric tons of carbon dioxide into 6,000 liters (1,600 gallons) of biodiesel per year.
 
 ›The Bureau of Development Services for the City of Portland, Ore., has awarded Gorge Analytical LLC, a biodiesel testing laboratory in Hood River, Ore., the contract to sample and test B100 produced within the state or imported for blending with petroleum diesel, to ensure the fuel meets ASTM standards. The fuel inspections are being conducted in accordance with Portland's renewable fuels standard, which requires petroleum diesel sold within city limits to contain a B5 blend or greater. The requirement will increase to B10 in 2010. Gorge Analytical's $40,000 fuel inspection contract began Jan. 6 and will expire June 30, 2011.
 
 ›Nova Biosource Fuels Inc. and certain subsidiaries filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware at the end of March. Nova requested court approval to continue managing its properties and operating the businesses as "debtors-in-possession." Nova appointed Brent King of Prairie Financial Advisors LLC as vice president/chief restructuring officer of the companies. Blank Rome LLP serves as bankruptcy counsel. Nova Biosource owns two biodiesel refineries, a 60 MMgy plant in Seneca, Ill., and a 10 MMgy plant in Clinton, Iowa.
 
 ›Thirteen seed companies, processors and researchers of camelina across the U.S. and Canada have formed the North American Camelina Trade Association to promote research, production and the development of new markets for camelina, including biodiesel production. Scott Johnson, general manager of Sustainable Oils Inc., will serve as NACTA president. David King, CEO of Great Plains-The Camelina Co. will serve as secretary, and Craig Parker, CEO of Willamette Biomass Processors will assume the position of treasurer. 
 
 The first annual meeting of NACTA will be held in October. 
 
 ›Washington-based algal application specialist Bionavitas announced it has developed a technology that increases yields and reduces costs when growing algae for biofuel production. 
 
 Through its Light Immersion Technology (LIT), the company says it has generated a system that brings light into open ponds and closed bioreactors through a system of rods, which are immersed into the algae culture to increase density and overcome algae's shade layer. Michael Weaver, Bionavitas CEO, said LIT may increase the depth of algae growth from conventional sunlight, which is only the top three to five centimeters, to up to a meter in depth.

 
 ›Innovation Fuels Inc. has partnered with two New Jersey farmers to plant pennycress at two test sites within the state. One site is a 120-acre farm in Manalapan, N.J., owned by the family of Michael Lazewski, president of Alternative Fuels LLC. The other location is in Warren County, N.J., near the Delaware Water Gap owned by Flexcraft Industries Inc. 
 
 Innovation Fuels intends to introduce pennycress as a feedstock at its 40 MMgy plant in Newark, N.J. later this year, according to CEO John Fox. In related company news, Malek Jalal, cofounder and former chief strategy officer, was recently appointed president of Innovation Fuels. 
 
 ›Oil refining and marketing company Neste Oil Corp. began construction of a €550 million ($805 million) NExBTL renewable diesel plant in Singapore, which will produce 800,000 metric tons (271 MMgy) of the fuel per year, 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 stated that the plant is expected to be complete by the end of 2010 and will employ approximately 100 people. 
 
 ›A synthetic blend of B5 will be used to power Volkswagen Jettas for the 2009 TDI Cup race season, according to Volkswagen of America Inc. It is the first year biodiesel will be used in its racing cars. Houston-based race fuel company Hyperfuels will supply approximately $21,000 of its "SynDiesel" fuel for use in the race cars and will also provide BioTrucker fuel cards to racing teams on behalf of the National Biodiesel Board, to allow transport teams the option of using biodiesel in their vehicles as well.
 
 The TDI Cup racing schedule can be viewed at <a href="www.vw.com">www.vw.com</a>.
 
 ›Petrobras earmarked $2.8 billion to biofuels over four years in its business plan released in March. In the biodiesel sector, the Brazilian oil and biofuels producer is committing 20 percent of that amount to expanding its biodiesel production in Brazil to 640 million liters (169 million gallons) by 2013. Petrobras expects to build a new plant in northern Brazil and increase production capacity at four existing locations. A partnership with the Portuguese firm Galp Energia will continue, which calls for biodiesel production in both Brazil and Portugal. Deployment of a biodiesel production unit in Africa is also being planned.
 
 ›Changing World Technologies Inc., a renewable diesel producer, and its three wholly-owned subsidiaries filed for Chapter 11 bankruptcy protection in early March. The filing was due to approaching debt deadlines and unsuccessful attempts to obtain outside financing. The company said operations were downsized during the reorganization process and a majority of its workforce was laid off. CWT plans on continuing its efforts to secure additional debt and equity financing to fund operations. The case is pending in the U.S Bankruptcy Court for the Southern District of New York. 
 

 ›In March, California-based Kreido Biofuels Inc. announced the completion of selling its assets to Kentucky-based Four Rivers BioEnergy Inc. Four Rivers acquired Kreido's spinning tube-in-tube (STT) reactors and technology, as well as its modular biodiesel production plant equipment and related property. The purchase price was approximately $2.8 million in cash, 1.2 million shares of Four Rivers' common stock, a warrant to purchase an additional 200,000 shares of Four Rivers' common stock at $8 per share, and the assumption of certain purchase orders. Four Rivers plans to construct a biodiesel refinery in Kentucky that will use STT technology and the recently purchased assets. 
 
 ›Encore Energy Systems Inc. reported mid-March that it has signed a letter of intent to acquire Geo Green Fuels Gonzales LLC's 3 MMgy biodiesel plant in Gonzales, Texas. The acquisition comes on the heels of a related announcement, which unveiled the company's plan to acquire various biodiesel refineries that are currently operating under capacity, which could be purchased at significant discounts. Encore Energy said it expects the Gonzales multi-feedstock plant to generate approximately $8.5 million annually.
 
 ›Imperium Renewables Inc. has reduced its workforce at the Imperium Grays Harbor biodiesel refinery by 24 people, citing the dramatically reduced global demand for biodiesel, high feedstock prices and extreme volatility in the petroleum fuel markets. Until recently, the soft U.S. biofuels market had been offset by demand in the European market, where European mandates made biodiesel competitive. This advantage ended, however, on March 3 when the EU enacted tariffs on imported U.S.-produced biodiesel.
 
 ›Argent Energy Ltd., a U.K.-based biodiesel producer, received the sustainable biodiesel award for a distributor or producer at the World Biofuels Markets conference and exhibition in Brussels, Belgium, March 17. Florida-based PetroAlgae LLC received the sustainable technology supplier award. In the inaugural year, the winners were selected from a shortlist chosen from nominations. Also making the shortlist from the biodiesel industry were Finnish firm Neste Oil Corp. and another U.K. company, Mabanaft Ltd. Other technology provider nominees, in addition to winner PetroAlgae, were Indian-based Praj Industries Ltd. and China's Institute of New Energy at Tsinghua University.
 
 ›Carotech Bhd., one of Malaysia's largest producers of refined and molecularly-distilled palm methyl ester and crude glycerin, was awarded an industry excellence award for export of merchandise by the Malaysia's Ministry of International Trade and Industry. The "certificate of excellence" is given to exporters who have performed exceptionally well in the global marketplace, according to Carotech. 
 
 The company produces and exports CaroDiesel, its trademarked brand of B100, for biodiesel applications throughout the world. Carotech stated the fuel has a methyl ester content of at least 99 percent, which exceeds both Europe and United States standards.
 
 ›After conducting a technical review of biodiesel fuel with the U.S. DOE, the National Renewable Energy Laboratory and the National Biodiesel Board, Underwriters Laboratories Inc. determined that ASTM-certified B5 blended fuel can be used in products without further investigation. Earlier this year UL announced that B5-blended heating oil and diesel fuel meeting ASTM standards may be considered the same as conventional petroleum fuels.
 
 ›The American Soybean Association has recognized former National Biodiesel Board Chairman Darryl Brinkman with its Lifetime Achievement-Association Focus Award, for his work in the biodiesel industry. The award honors individuals who have shown an impressive commitment to ASA membership development over many years. 
 
 Brinkman serves on the NBB Executive Committee and Governing Board as the ASA representative, and was NBB chairman from 2004-2007. He has been a member of the ASA for more than 30 years. 

 
 ›Solazyme Inc., a South San Francisco, Calif.-based algae oil production company, announced that Arthur Grossman, chief of genetics, has been awarded the Gilbert Morgan Smith Medal for excellence in published research on marine or freshwater algae. The award, which only recognizes one scientist every three years, was established through the Helen P. Smith Fund and is awarded by the National Academy of Sciences. The focus of the award is Grossman's research on algae and cyanobacteria and elucidating molecular mechanisms by which they adapt to changes in light color and nutrient availability.

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Barrels of The Famous Grouse blended Scotch whiskey outside of the Glenturret Distillery in Crieff, Scotland, where Scottish Bioenergy Cooperative Ventures tested its algae photobioreactor./PHOTO: PAUL WATSON

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

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Darryl Brinkmann, left, and ASA President Johnny Dodson/PHOTO: ASA photo by Mike Lewis

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Arthur Grossman, chief of genetics for Solazyme Inc.

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Business Briefs: Companies, Organizations & People in the News

With on-road diesel and biodiesel prices both cruising on a stagnant plane in addition to declining demand for both, one thing is certain: there is no shortage of biodiesel out there. Evidence of this can be seen from the spike in expansion projects that have begun across the U.S.
 
 Biodiesel Industries Ventura LLC, an operating subsidiary of Biodiesel Industries Inc., is expanding the capacity of its modular research and development demonstration facility from 100,000 gallons per year to 3 MMgy at Naval Base Ventura County (NBVC) in Port of Hueneme, Calif. Biodiesel Industries Inc. has a cooperative agreement with the Naval Facilities Engineering Service Center (NFESC) to collect used cooking oil at the base where it is converted into biodiesel and used by the U.S. Navy, according to Trey Teall, technical and training director on the project. 
 
 "It's part of an agreement we formed with [the Navy] in 2004," he said. "It's been a work in progress for quite a while."
 
 Teall said in addition to used cooking oils, the newly expanded facility will be capable of processing other feedstocks such as animal fats and any triglyceride-rich oils. Fabrication of equipment was being finalized, along with procurement of electronics for automation equipment. The company anticipates that the expansion will be complete by August. 
 
 Global Alternative Fuels LLC is adding an additional 10 MMgy to its existing 5 MMgy plant in El Paso, Texas. The company finalized engineering for the $20 million expansion project in September 2008 from the North American Development Bank, according to Chief Operating Officer Carlos Guzman. The expansion to 15 MMgy is the first phase of a planned two-phase expansion. Guzman said the plant will eventually be expanded to 25 MMgy. The existing 5 MMgy plant will remain operational while the expansion project is underway. The goal is to reduce emissions produced from cross-border traffic in the El Paso, Las Cruces and Ciudad Juarez region by producing and utilizing biodiesel, according to Guzman.
 
 In other news, Biodiesel of Las Vegas suspended construction of its 100 MMgy project. At press time, additional equity was being raised in an effort to resume construction, which could be at the end of this year or early 2010, according to project spokeswoman Laura Lattimer. Construction is approximately 90 percent complete, she said. 
 
 Meanwhile, Xenerga Savannah completed construction of its 1.5 MMgy plant in Savannah, Ga., according to Xenerga Inc.'s website. Xenerga Savannah is a subsidiary of Xenerga Inc.

Expansion projects help fuel demand, jobs

Aside from the economy, size and feedstock are probably the two largest issues keeping biodiesel producers awake at night. Large plants aren't doing well and small plants don't make very much fuel. And no matter what feedstock you choose to go with, it seems like the price goes up. Versatility has become the name of the game and many traditional facilities just don't cut it anymore. USFuelTech LLC president and CEO Robert Horning says, "There are plenty of 100 MMgy biodiesel plants out there in the Midwest, but they've all got crickets jumping through them right now because they're not producing." Horning oversees the manufacturing of biodiesel production modules with a capacity between 2 MMgy and 5 MMgy, and he believes this is the direction the U.S. industry is headed. "There just are not many places in the world left for a 100 MMgy plant – there's not enough feedstock," he says. The large plants "are like dinosaurs," Horning says. "They're just sitting there rusting." 
 
 While the need for large production facilities in the current U.S. market is rather nonexistent, there continues to be interest in producing biodiesel. So what is a potential producer to do?
 
 Manufacturers of modular biodiesel production units believe they might have the answer. Their products are smaller and can be scaled up to various sizes when needed, plus they usually can be co-located with the feedstock source. They're less of an investment than a larger facility, obviously, and many are capable of running multiple feedstocks right out of the box. 
 
 The fundamentals of modular production units are fairly universal. Each unit is built at a manufacturing facility before being skid-mounted and delivered to its destination. Most, containerized units range in capacity from 1 MMgy to 5 Mmgy and can be linked together from the start to increase overall capacity although the general idea is to start small and expand as needed. Typically the feedstock supply just doesn't warrant a large facility, in which case those situations are ideal for modular units. 
 
 Europeans have been enjoying the benefits of modular biodiesel production for years. Sweden-based Ageratec AB began manufacturing small modules in 1996 and has since been responsible for the installation of more than 70 processors in 20-plus countries. The company produces biodiesel processors ranging in capacity from 180,000 gallons per year to 2.15 MMgy. While most of the company's units are sold in Sweden, Poland and Australia, there is a growing demand for their product in the U.S., Canada and Latin America. Seattle-based engineering firm E3 Energy Partners LLC became Ageratec's North American engineering partner last fall. E3 principles, Richard Bacigalupi and Daniel Parker, say they became interested in working with Ageratec after working on larger biodiesel projects. "We started noticing that sizes were trending downward below 10 MMgy, so we decided to look on the market for a modular system rather than custom design our own," says Parker. "We discovered Ageratec and realized their technology is very similar to what we would design if we were doing it ourselves." E3 contacted Ageratec and now serves as either the primary or supporting engineer on all of the company's U.S. projects, and is currently modifying its processors with technology updates available later this year.
 
 Feedstock options
 Most of the modular unit inquiries E3 receives are from companies that have located a source of feedstock and are looking to capitalize on its potential. Bacigalupi says more than 100 different oils and fats have been tested on Ageratec units and, by the end of the year, additional technology is expected to be added, which will make them capable of processing feedstocks containing very high free fatty acid (FFA) percentages – in some cases above 70 percent. It was Ageratec's goal to design one unit capable of handling a wide array of feedstocks, says Bacigalupi, and because its systems are fully-automated, all it takes is a change of recipe to switch from one feedstock to another. The move to incorporate higher FFA feedstocks is an important step to take as Bacigalupi predicts Ageratec's future purpose will be to service large food and animal processing groups, restaurants and even ethanol producers. "The people expressing interest in the units have a level of savvy that goes beyond an introductory entrepreneur," he says. "The clients that we're developing projects for now are existing corporations that have access to the feedstock either as a primary or ancillary part of their business." For example, ethanol producers are becoming more interested in producing biodiesel from their leftover corn oil. They'd like to sell the corn oil to local biodiesel processors, but many can't handle the oil's high FFA content. "So the ethanol companies are looking at putting in their own on-site unit, just dropping one in," he explains. "If you're running a 50 or a 100 MMgy ethanol plant you can certainly run a 1 to 3 MMgy biodiesel plant on extracted corn oil, no problem."
 

 Not all potential modular producers possess that level of experience though. USFuelTech CEO Horning says he receives many calls from beginners. ""The problem with some of these small units is that some people have never done it before, and they want to be green and change the world. We sell an industrial system. It's not a home system. And that's probably the level of expertise that some of these guys have," he says. USFuelTech's 5 MMgy processing unit is its best seller, according to Horning, and each system is designed to take in a variety of feedstocks on a continual basis. Horning says, "That is where I believe the market is. You have to be able to take advantage of the market place on a weekly basis and that's where I see our market niche." He offers the example of one USFuelTech client who used chicken fat, yellow grease and virgin soy oil in a three-week period because the client located the modular unit in an area with easy access to a variety of feedstocks. Having access to feedstocks within a short distance is a major benefit and, along with their size, is a good reason why modular systems are becoming more popular.
 
 BioFuelBox Corp. vice president of marketing Rick Reddy agrees that feedstock should dictate the location of a production unit, and says that price is really the deciding factor in what feedstock to use. The California manufacturer is banking on the use of brown grease to fuel its entry into the modular biodiesel market, so the location BioFuelBox deems ideal will naturally differ from other module manufacturing companies. "When we say we're doing brown grease, it's 100 percent brown grease," says Reddy. Because brown grease in significant quantities for biodiesel production limited and contain such large volumes of water, BioFuelBox is focused on locating its production units near wastewater treatment plants, landfills, or other similar locales. Besides manufacturing the units, the company also functions as owner/operator, so it only needs to find willing partners. "Our partners don't necessarily want to produce biodiesel," Reddy says. "But they do want to get rid of a waste product." He predicts future partners will have "captive feedstock" and won't have to worry about competing with other producers to get a good price on the initial product.
 
 Getting feedstock costs under control is a great selling point, but what about other operating costs? The price to purchase and begin producing biodiesel from a modular unit varies wildly depending on the manufacturer and size of the unit. It's important for potential producers to define what comes in the crate while determining an estimated cost per unit, according to Bacigalupi. The No. 1 problem we see as people evaluate modular biodiesel solutions today is the lack of true turn-key processor solutions," he says. "There's always more to the story in terms of add-on processes such as high FFA pretreatment or methanol recovery, and they're not sure what they're buying into." Bacigalupi says Ageratec has built their business on offering all-inclusive units that leave nothing hanging. FFA pretreatment, heating and energy integration systems, controls, purification systems and methanol recovery systems are included in each unit and are fully-automated so production can be supervised from anywhere in the world with Internet access. The initial cost of an Ageratec system might be a little more than other units, but those costs are easily recouped by complete process integration and lower long-term operating costs, according to Bacigalupi.
 
 Horning says USFuelTech's systems vary in price, but he says "you ought to have a million bucks in your pocket" if you plan to purchase one of his 5 MMgy modules. His units can also be fully-automated, but that is not a standard option.
 
 Reddy prefers not to discuss pricing options for BioFuelBox's units because the company plans to own/operate each facility it sets up. The producer only needs feedstock suppliers, he says, so the cost of operating one of their systems is not a factor.
 
 As the biodiesel industry adapts to produce fuel using different methods and different feedstocks, the use of modular units will likely expand. One only needs to look to Europe to witness how the utilization of smaller production units using various feedstocks can supply an area with biodiesel. The future of biodiesel production worldwide is unsure, but the future of modular units appears fairly secure. 
 
 Kris Bevill is the editor of Ethanol Producer Magazine. Reach her at <a href="mailto:kbevill@bbiinternational.com">kbevill@bbiinternational.com</a> or (701) 373-8044.

David Frykerås is president and founder of Ageratec AB, Swedish manufacturer of modular biodiesel production units. /PHOTO: AGERATEC AB.

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Ageratec production systems range in capacity from 180,000 gallons per year to 2.15 MMgy. Their units are fully-automated and require limited manpower to operate./ILLUSTRATION: AGERATEC AB.

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As biodiesel production trends more toward smaller-scale units and variable feedstock supplies, the idea of using smaller sized modular production units placed very close to feedstock sources becomes more attractive. Biodiesel Magazine spoke with modular unit manufacturers to learn more about this emerging arm of the industry.

Modular Production: Co-locating Plant and Feedstock

Although there are numerous benefits associated with the use of biodiesel, the fuel poses some unique challenges. Unlike traditional fossil-based fuels, biodiesel stored under certain conditions is prone to oxidation, which degrades the fuel's quality. Biodiesel Magazine speaks to researchers who are developing innovative and affordable ways to address this issue.

 
 A collaborative research project recently undertaken by two Iowa-based companies has shown that antioxidant additives can be highly effective in maintaining the stability of biodiesel fuels under conditions designed to accelerate the degradation process. The project has been spearheaded by biodiesel producer Renewable Energy Group Inc. and Kemin Industries Inc., a company that specializes in providing shelf-life stability solutions to the food and feed markets. 
 
 According to Jennifer Radosevich, Kemin's vice president of research and development, the main objective of the study was to test the effectiveness of a proprietary antioxidant Kemin developed specifically for the biodiesel industry. 
 
 "Oxidation is basically the generation of free radicals," Radosevich says. "Free radicals are very, very reactive, especially on fats. What happens is one free radical will react with a fat molecule or, in this case, the biodiesel, and produce another free radical, which produces another free radical." These free radicals continue to propagate, leading to oxidative degradation of the biodiesel. 
 
 "What antioxidants do is they react with these initiating molecules, or react with the free radicals, to stop this propagation reaction," she continues. "They quench the reaction. They sacrifice themselves so that you can stop oxidation and stop the degradation of the product."
 
 Under real world conditions, the actual rate of this degradation process depends on a variety of factors, says Dave Slade, REG's quality and technical service manager. The rate of degradation will vary depending on how, where and under what conditions the fuel is stored and handled. Exposure to heat, oxygen and moisture accelerates oxidation. However, even under stressful conditions, it often takes months for this degradation process to significantly impact fuel quality.
 
 "Most biodiesel produced in the U.S. has a stability that is higher than that required by ASTM standards," says Slade. "But occasionally it won't, and occasionally after it's been transferred a few times and come into contact with moisture, heat and air…that stability can start to go down. At that point, it becomes a concern for the producer and supplier of the fuel to meet the [stability] specification at all times." What the antioxidant additives do is improve the stability of the fuel so that it continues to meet specifications for a longer time by reducing the rate of degradation.
 
 In its study, Kemin tested four samples of B100 provided by REG. The proprietary antioxidant was added to two samples of fresh biodiesel. One was treated with 500 parts per million (ppm) of the antioxidant, and the other at a lower rate of 250 ppm. 
 
 The two pretreated samples and two untreated samples were then stored at a temperature of 43 degrees Celsius (109 degrees Fahrenheit) for 10 weeks. "The reason this temperature was chosen is that it is a standard temperature used in the fuel industry for an accelerated storage study," Radosevich says. "It represents very warm conditions that might be experienced in the summer."
 

 After six weeks, the researchers attempted to 'rescue' one untreated sample by treating it with 500 ppm antioxidant. At the conclusion of the 10-week study, the samples were tested to determine the effects the antioxidant additives had on the oxidation process. 
 
 The researchers found that pretreatment with both 500 ppm and 250 ppm antioxidant was effective at preventing oxidation changes in the fuel. "Although 500 ppm was more effective than 250 ppm, both scored better than untreated," Radosevich says. "Looking at the rescue treatment was very interesting. The rescue treatment of 500 ppm antioxidant added at six weeks did increase the oxidative stability in relation to the never-treated fuel. However, it did not increase the stability to the same point as the time-zero treated material. You can rescue it a little bit, but it's not as good as if you add it to the untreated material earlier. Earlier treatment is better."
 
 Final results showed pretreatment of the biodiesel with 500 ppm antioxidant was most effective in mitigating the effects of oxidation. Pretreatment with 250 ppm was the next effective, followed by the rescue treatment of 500 ppm in week six of the study. Untreated biodiesel degraded the most, meaning it's more effective to pre-treat the fuel with a low level of antioxidant than it is to try to rescue the fuel with a higher level of the additive. 
 
 "The study showed that once oxidation begins, you can't reverse it," says Gen Meier, REG's director of technology and feedstock development. "The earlier you treat the fuel, the more effective it is."
 
 According to Slade, REG has offered antioxidant additives to customers for more than a year. However, the company generally doesn't treat the fuel unless requested by the customer. "Most of the fuel REG produces is used within weeks, making it unnecessary to treat all fuels," he says. "It tends to take months for biodiesel to degrade."
 
 One benefit of the antioxidant developed by Kemin is its price. Considering the low inclusion rate of the product that is needed to mitigate the effects of oxidation, it won't be prohibitively expensive for customers to use. "That's one reason we wanted to work with Kemin," says Meier. "So [our customers] could be comfortable with the level of oxidative stability they wanted without pricing themselves out of the market."
 
 Another benefit of using antioxidants is that they allow customer to pick fuels based on qualifications other than stability, Meier continues. "REG makes biodiesel from a variety of feedstocks," he says. "Some of these feedstocks have more natural antioxidants than others." By using antioxidant additives, REG can take a fuel containing fewer natural antioxidants, and make it equivalent to a fuel that contains more. This allows customers to pick fuel based on other qualifications, such as cetane levels or cloud point without worrying about oxidative stability. "Regardless of the feedstock, we can meet whatever oxidative stability specification they were looking for," Meier says. 
 
 Addressing Thermal Decomposition
 For transportation biodiesel, the issues of heat and oxidation are generally associated with storage. However, those researching the use of biodiesel fuel in aviation applications face a different set of challenges. This is because aviation fuels are also subjected to high temperatures during use. In order to use biodiesel-based fuels in the aviation industry, researchers must be able to find a way to mitigate the effects of thermal decomposition. 

 
 Researchers at the National Institute of Standards and Technology discovered a way to overcome this problem while developing methods to overcome biodiesel's instability in distillation tests. In late 2008 researchers led by Thomas J. Bruno, NIST's leader of Properties for Process Separations Group, along with students Arron Wolk and Alex Naydich, published a paper in the Feb. 19, 2009 issue of Energy & Fuels titled, "Stabilization of Biodiesel Fuel at Elevated Temperature with Hydrogen Donors: Evaluation with the Advanced Distillation Curve Method". The paper describes the team's findings. 
 
 "We found two things," says Bruno. "We found that we can use the advanced distillation curve method to assess the stability at high temperatures of B100, and we found we can use it to determine that certain kinds of additive species are effective at high temperature."
 
 Traditional distillation curves work by providing a measurement of the percentage of a liquid that evaporates as the sample is heated. Different components in a fuel mixture have different boiling points, which allow researchers to determine how much of each component each fraction of the liquid contains. The advanced distillation curve method developed by NIST researchers expands on the test's capabilities by providing low uncertainties and allowing for analysis of the chemical composition of each fraction. The curve itself is represented visually by plots on a graph. When researchers can replicate these data points with multiple samples of a fuel, they know the distillation curve is accurate. This is represented by a low standard deviation, typically about 0.4 degrees. 
 
 When the research team attempted to analyze B100 using this method, they experienced a high rate of variability even when several tests were run on the same biodiesel sample lot. The standard deviation was up to 8 degrees. 
 
 "What we theorized was happening was that [the B100] was oxidatively decomposing because of the high temperature," says Bruno. To overcome this thermal decomposition effect, the researchers effectively removed the oxygen from the testing environment by blanketing the test fluid with argon gas. "Low and behold, what happened was all of a sudden we were able to measure distillation curves that were right on top of each other again," he continues. This means that the standard deviation was once again within an acceptable range. The researchers had mitigated the effects of thermal decomposition and were able to accurately plot the distillation curve of the B100. 
 
 The researchers further theorized that adding hydrogen donors to the B100 would increase the stability of the biodiesel and allow them to produce distillation curves with similar standard deviations, even when the samples were tested without the blanket of argon gas. 
 
 "Hydrogen donors are species that when added to fuel at high temperature will decrease free radical reactions by scavenging oxygen," says Bruno. "They do this by donating hydrogen. What we decided to do was determine whether or not you could stabilize B100 with a hydrogen donor, and we decided to use the distillation curve approach to actually assess the stability."
 
 The team tested three hydrogen donors; tetrahydroquinoline, tetrahydronaphthalene and trans-decahydronaphthalene. While all three were effective to a degree, tetrahydroquinoline and trans-decahydronaphthalene were most effective in reducing the standard deviation to levels similar to those of the B100 blanketed in argon gas. This is of practical importance because aviation fuel is often re-circulated and used as a coolant in the engine before it is burned, according to Bruno. 

 
 "If you were to ever use something like B100 as an aviation fuel, this would be of importance," Bruno says. "You could not use straight B100 unless you deoxygenate it somehow as an aviation fuel, because it is just not stable enough…You have to preserve its chemical integrity for a bit longer and at a bit higher temperature than simple B100 will provide you without an additive."
 
 Bruno says he hopes to complete additional research on commercially produced bio-based jet fuel in the future. "The difficulty has been in getting samples of it," he says. He is currently looking to collaborate with companies producing bio-based aviation fuels. 
 
 Erin Voegele is an associate editor for Ethanol Producer Magazine. Reach her at <a href="mailto:evoegele@bbiinternational.com">evoegele@bbiinternational.com</a> or (701) 373-8040.

Kemin researchers found that pretreatment with both 500 parts per million (ppm) antioxidant and 250 ppm antioxidant was effective in preventing oxidation in samples of B100. /PHOTO: KEMIN INDUSTRIES INC. 

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To complete their 10-week study, Kemin researchers treated samples of B100 with 500 parts per million (ppm) antioxidant and 250 ppm antioxidant. The team also attempted to rescue a sample of biodiesel with a treatment of 500 ppm antioxidant at 6 week

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Long-term storage and aviation applications require stable biodiesel. To meet those needs, researchers are developing new antioxidant technologies.

Minimizing Oxygen's Destructive Tendencies

The ambitious plans of Australasian biodiesel producer Mission NewEnergy Ltd. to develop 1 million acres of jatropha are unfolding in India. The company has developed an extensive network of small farmers that marries high-tech with traditional agriculture to develop a new feedstock supply chain. Jatropha is very familiar to the small farmers of India, used as a living fence to keep free-roaming cattle out of their food plots. Many of those farmers are now planting jatropha on high ground not suitable for food plots, primarily because it is too high for the gravity irrigation required for successful crop production. Everything about the project is as foreign and exotic to a Westerner as the scenes in the Academy Award winning movie "Slumdog Millionaire," albeit in a rural setting.
 
 With corporate offices in Perth, Western Australia, Mission New Energy has been developing a multi-prong strategy it hopes will result in its becoming a major player in the international biodiesel market. Mission New Energy co-founder and managing director Nathan Mahalingam is of Malay-Indian descent and has experience in Malaysian project finance and the building of port facilities. His partner and Mission NewEnergy's executive director, Arvind Bansal, is based in India and brings his experience in the agricultural sector and finance to the company's jatropha project. The two invested their savings in the project and in 2006 raised $40 million in equity capital to make their first move – building a 30 MMgy biodiesel plant in Kuantan Port near the Malaysian capital of Kuala Lumpur. The plant started up in August 2008, producing biodiesel from palm oil. The company is the first non-European biodiesel producer to meet German biodiesel quality specs. A 75 MMgy production facility under construction alongside the first is due for completion early this summer. Within a few months of bringing the second plant online, the company expects to begin processing its first commercial quantities of jatropha oil from its Indian operations. Mission NewEnergy is projecting 12,100 tons (approximately 3.6 million gallons) of jatropha biodiesel will be produced in 2009, with production to increase each year until it reaches 100-percent jatropha-based biodiesel production by 2011. 
 
 While construction progressed on the Malaysian biodiesel plant, Mission NewEnergy began laying the groundwork for jatropha production in India. With more than 1 billion people, India is the world's second most populous country with about one-sixth of the world's population, and the world's seventh-largest country in land area. About 70 percent of its people live in rural regions where some 40 percent live below the poverty level. The vast majority of Indian farms are small, with more than two-thirds of them covering five acres or less. Indian farms, though small, are productive with the country second only to China in world wheat production. However, Americans don't hear as much about Indian wheat production since most of it is used domestically, making India a small player in the international grain markets. Other important Indian crops are rice, oilseeds, cotton, jute, tea, sugarcane and potatoes. 
 
 Mission NewEnergy's business model is building on that base of small farms. James Garton, head of corporate finance, described the company's approach as deep and local. "Mission signs a 30-year deal with the farmer and the farmer plants jatropha where he isn't planting his food now," Garton explains. "[The farmer] is delighted to do so because he has no significant opportunity costs. However, in order to plant he needs to buy the necessary saplings. We arrange for the bank to loan the farmer the upfront money he needs. We sell the farmer saplings at an agreed upon price and provide the necessary training to the farmers." The micro-loan comes with a two-year moratorium on payments until the trees approach maturity and begin producing seeds for sale. 
 

 It's an attractive project for banks as well, Garton says, since the Indian constitution requires banks to lend 10 percent of their loan portfolio to agronomy schemes. Besides handling the loan documents, Mission will handle the payments to the bank for the five-year term of the loan, with the residual going to the farmer. "More than 70 percent of the population lives in this zone of small scale farmers in villages," Garton tells Biodiesel Magazine. "With approximately 176,000 individual farming agreements in place, it represents over $30 million in micro-financing." To date, close to 314 million trees have been planted on approximately 350,000 acres. Nearly all of the first-year seed production has gone to the company's nurseries, which supply those saplings. This will be the first year oil is shipped to Malaysia for biodiesel production, with the volume expected to increase each year. 
 
 Once the Malaysian facility reaches capacity in jatropha, additional capacity will be built in India.
 
 Garton adds that the project will utilize idled crush capacity and oil storage installed in the mid-1990s in an effort to expand the country's soybean industry. "Soybeans are an inappropriate crop in India, and that completely failed," Garton says. The crushing and oil storage are part of the Indian system of state grain warehousing, with facilities spaced nine miles apart. Even using all of the idled crushing capacity and storage, Garton says Mission NewEnergy will use less than three percent of the available surplus in storage capacity. "We don't intend to build storage, crushing or logistics."
 
 High-tech meets traditional agriculture
 What Mission NewEnergy has built is an educational and management network with 500 employees and 3,000 field agents across India. The field agents work on a commission basis, recruited among respected farmers with indigenous knowledge. To insure the field agents are visiting farmers on the required schedule, the agents are equipped with Java-enabled mobile phone with GPS tracking. The field agent is asked to record certain data on a farm visit. If a regular report is missed, the farmer's name gets flagged in the data management system and the field agent gets a call. The company has established call centers in seven local dialects to manage the information collection and provide farmer support. Mission NewEnergy also plans to monitor fields using Google Earth. 
 
 The educational outreach brings high-tech to traditional agriculture. In addition to using audio visual training modules, the company has developed traditional methods to teach jatropha management. "We have monthly singing and dancing festivals in various villages," Garton says. "They're very astute people, but not literate in our sense of literate." Information about plant growth cycles and the best time to prune and harvest is taught through traditional song and dance methods. 
 
 Teaching proper management techniques will be the key to getting the average one-ton-per-acre oil yields the company is targeting. "At the beginning, we, like many, were thinking the biggest determination of yield was the seed technology," Garton says. Instead, in research partnerships with The Energy and Resources Institute, Tamil Nadu Agricultural University and Forest College and Research Institute, what was found is statistically insignificant yield variation from numerous jatropha varieties tested. While research continues, the company is focusing on agronomic factors affecting yield. While in many places fertilizers or water are often considered first, Garton says these approaches miss the point of the project – to not compete with resources needed for food production and to keep input costs low. Instead, agronomy research has found 70 percent of yield is determined by tree management. With flowering and fruiting occurring on new growth, proper pruning stimulates multiple shoots and boosts yields. For Mission NewEnergy's model, which depends on small farmers, jatropha's continuous flowering, fruiting and ripening is not considered a barrier. Instead, the hand harvesting keeps machinery costs low, and will maximize potential carbon credits.
 
 Biomass to energy
 The expansive ground force managing large-scale jatropha production from a network of small farmers is only part of Mission NewEnergy's vision for India. The company is also developing the technology to generate power and produce cellulosic ethanol from the meal left after the jatropha oil is extracted. Garton reports a pilot plant has been producing cellulosic ethanol since the middle of last year. While not revealing the technology developer's name, Garton says the technology comes from India's pulp and paper industry, which was under pressure to recover acids in order to avoid environmental hazards. Expanding on that research, the scientists also developed a process that separates the lignin and silica from biomass, leaving the cellulose and hemicellulose available for efficient fermentation into ethanol. Garton says the pilot plant operation estimates the cost of the ethanol at under $1 per gallon, with yields of 130 gallons of ethanol per ton of biomass. The extracted lignin is used to power the process, with the expectation that there will be excess power to sell. Mission NewEnergy expects to be able to use the extracted silica as a filtration medium in its biodiesel production. Engineering is underway for a small-scale facility matching the crushing facilities in India, and on a larger-scaled production targeted at the international biofuels market. Garton visited the U.S. this spring hoping to find a potential partner to demonstrate the technology stateside.

 
 Support for development
 For India, which relies upon imported liquid fuels and where less than 40 percent of the country has electricity, the prospect of home-grown energy is garnering government support. 
 
 The Indian government has mandated a price for jatropha-based biodiesel of 26.5 rupees per liter ($690 per ton or $2.32 per gallon) and established a "must buy" policy for fuel suppliers. The government has also modified its definition of "forest" to make it easier for the small jatropha tree to qualify for carbon credits for forestation projects.
 
 Many in India see jatropha as a frontrunner for helping India meet its energy needs. Jatropha and other tree oils have several factors in their favor, according to J.N. Daniel with the BAIF Development Research Foundation in Pune, India, who wrote a paper titled, "Jatropha Oilseed Production: A Realistic Approach." The factors include depletion of petroleum reserves, more stringent emission standards, the opportunity to earn carbon credits, and "the expanse of degraded barren land in India that has to be brought under vegetation for the future common good … creating rural employment and a non-conventional energy system," Daniel writes. He cautions that many jatropha promoters are overly enthusiastic. "Common beliefs, distorted claims and wishful thinking are all part of the information dissemination that jatropha is going through at present," Daniel writes. In his review of research literature and work at BAIF's research farms, Daniel concludes that while reported seed yields range from 0.5 tons to 10 tons per hectare (0.2 tons to 4 tons per acre), a modest target with a high probability of attainment is 2 tons per hectare (0.9 tons per acre). Seed oil content is also often exaggerated, he says, with oil yields generally at 25 percent, although some researchers have reported twice that oil yield from some varieties.
 
 Sreeniva Ghatty, chief executive officer of Tree Oils India Ltd., also sees great potential for jatropha, but advocates a deliberate approach for development. "During the six years of trials we have been conducting at our research and development farm in India, I observed that there are many issues in terms of inputs and output that make [jatropha] risky at the moment," he says. "We are domesticating a wild plant and there are known unknowns and unknown unknowns." He says that with good moisture and nutrients, jatropha will give profitable results, but the dilemma for Indian farmers is that there are better and tested crops that can be grown more confidently. 
 
 Tree Oils India is researching 10 oilseed bearing tree crops, with the largest acreages devoted to jatropha and pongamia, along with moringa, neem, Chinese tallow and other trees. "Our focus is on sustainability, biodiversity, ecological balance, optimum utilization of natural resources, rural energy, livelihoods, food and fuel; and low-cost and low-risk, integrated tree-based farming. We have incorporated all these elements in our project and would like to approach farmers only after we achieve meaningful outcomes," he says. "We produced reasonable results as of now and hope to reach the target very soon." 
 
 Susanne Retka Schill is assistant editor of Biodiesel Magazine. Reach her at <a href="mailto:sretkaschill@bbiinternational.com">sretkaschill@bbiinternational.com</a> or (701) 738-4922.

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High-tech meets traditional agriculture in Mission NewEnergy's extensive feedstock procurement program, which goes deep and local among India's small farms.

Mission: Jatropha

The biodiesel industry has experienced a financial rollercoaster over the past two years and several companies have been forced to seek shelter in bankruptcy. In these troubling and uncertain economic times, you never know when your business might encounter financial difficulties. 

 
 A major event in a Chapter 11 bankruptcy case centers upon the assumption or rejection of executory contracts and leases. The debtor's right to control the disposition of its executory contracts is one of the considerable powers granted to a debtor in possession, or trustee in a bankruptcy proceeding. Contracts to sell, to supply or to buy may burden the debtor and threaten reorganization. Unprofitable contracts and leases can be rejected. Conversely, if the debtor does not want to upset profitable arrangements with bankruptcy, these contracts may be assumed. 
 
 So what is an executory contract? It is a contract between a debtor and another party under which both sides have important performance obligations remaining. Examples of executory contracts (and reasons why they might be executory) include: equipment leases (lessee has to pay rent/lessor has to provide equipment) and intellectual property licenses (licensee can use only within scope of license). Some types of contracts, including but not limited to commodity contracts, future contracts and swap agreements, are granted special protections from assumption or rejection. The decision of whether a contract is an executory contract can be a difficult one to make, and to protect your rights you should seek advice from a bankruptcy attorney.
 
 Why are executory contracts so important in bankruptcy? Executory contracts are treated differently from general unsecured claims in three important ways. First, a debtor decides whether to agree to or refuse its obligations under a contract. Agreeing to perform translates to "assumption" of the contract, and refusing to perform translates to "rejection" of the contract. The debtor may not pick and choose parts of the contract to accept and reject; the entire contract must be assumed or rejected. Second, while the debtor is thinking about what to do, the non-debtor party must continue performing as if no bankruptcy has been filed. Third, if the debtor assumes the contract, it must cure any default and demonstrate that it can perform in the future. If the debtor wants to assign the contract to a third party, it must cure any defaults and the assignee has to show that it can actually perform under the contract in the future. Once assigned, the debtor no longer has liability under the contract.
 
 The debtor will incur some expense in rejecting a contract, since any damage claim is treated as a pre-petition, unsecured debt. The expense amount will depend on the plan of reorganization and the amount paid to unsecured creditors. However, if the parties continued to operate under the contract throughout the bankruptcy, any amount owing due to post-petition services could be treated as an administrative expense and would have to be paid prior to approval of a reorganization plan. An administrative expense includes the actual, necessary costs and expenses of preserving and administering the bankruptcy estate. Therefore, if the debtor is not benefiting from the contract, it is sometimes in the debtor's best interest to reject the contract early in the bankruptcy. The timing of the rejection should be considered in light of several factors and strategic implications. 
 
 The specific bankruptcy rules governing executory contracts are complex. If you think you may have an executory contract, get advice from a bankruptcy attorney to protect your rights.
 
 Angela J. Cyr is an associate with BrownWinick, a Des Moines, Iowa-based law firm serving the renewable fuels industry. Reach her at <a href="mailto:cyr@brownwinick.com">cyr@brownwinick.com</a> or (515) 242-2418.

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To Assume or Not to Assume: That is the Question

April 24, 2009 - Washington – The California Air Resources Board (ARB) on Thursday voted to adopt a highly controversial Low Carbon Fuel Standard (LCFS), but agreed to convene an expert work group to assist the Board in "refining and improving the land use and indirect effect analysis of transportation fuels." The Renewable Fuels Association (RFA) expressed disappointment in the Board's decision to prematurely adopt the LCFS regulation, but remains confident that the formation of the expert work group will result in a more balanced and fair assessment of the indirect greenhouse gas effects of all fuels.

 
 Responding to ARB's adoption of the regulation, Bob Dinneen, President and CEO of the Renewable Fuels Association, issued the following statement:
 
 "Adopting this standard sets a dangerous precedent about the application of unproven science to industries across the country. This standard is based on flawed analysis and selectively enforced penalties against biofuels only. In unfairly penalizing ethanol, ARB is relegating California to more petroleum use as biofuels are the only viable alternative liquid fuel.
 
 "Despite the Board's vote, we remain cautiously optimistic its decision to form an expert work group will provide an opportunity to get this standard right. Forming such a group is a clear signal that several important questions regarding the science and methodology used to develop and implement this standard remain unanswered. In too many cases, the research has simply not been done or needs additional validation or sensitivity analysis. A better solution would have been to adopt a regulation based on direct emissions only, thereby comparing all fuels on the same basis. Nevertheless, we are optimistic that the expert panel soon to be convened by ARB will recommend the changes necessary to enable the LCFS to be successful."
 
 Several ethanol producers, especially advanced and next generation companies, have issued numerous warning about ARB's efforts. Earlier this month, 12 advanced and next generation ethanol companies warned that the LCFS as proposed would chill investment in future biofuel technologies and greatly hamper efforts to commercialize production. Their letter can be read here.
 
 The RFA, representing both current and next generation ethanol producers, has worked extensively with ARB staff to raise concerns and present new data that would influence ARB's modeling. A complete detailing of those efforts can be seen here.
 
 
 Contact:
 Matt Hartwig
 Renewable Fuels Association
 202-289-3835

RFA: California misses golden opportunity to reduce carbon emissions

As part of preconference initiatives of the 2nd Jatropha World Americas 2009 conferences, the Center for Management Technology has released a free presentation given by jatropha expert William Nolten, in which he shares his research on the utilization of jatropha meal and residues to produce biofuels and other products while taking advantage of the entire plant. 
 

 During the presentation "Utilization Technology of Jatropha Seedcake and Residues," Nolten discusses strategies to make growing jatropha economically feasible during the first three years, beginning with less dense planting and intercropping, in order to generate income for the farmers while continuing to maintain the fields. After one year, and again at eighteen months, pruning and plant density increases begin to generate more income from jatropha. 
 
 Needed nutrients can be easily fulfilled in years one to three by recycling the organic matter residues such as leaves back to the plants, according to Nolten. "Depending on soil conditions, excess organic matter can be traded as organic fertilizer and/or to the pharmaceutical industry," he said, emphasizing that large amounts of salt and fertilizers are needed. 
 
 Nolten said the organic residue resulting from the harvesting of jatropha plants-the fruit shell, seed husk and kernel-constitutes 86 percent of the plant's mass, compared to 14 percent in pure plant oil extracted, and could be used in anaerobic digesters to convert into energy. Jatropha meal has a high calorific value due to higher methane content when digested, about 60 percent higher than cow manure, according to Nolten. "Coverting jatropha cake into biogas for electricity is highly attractive and per kilowatt hour significant less costly as from pure plant oil," he said. 
 
 Nolten discusses a number of other jatropha-related topics, including the potential use of jatropha in animal feed and medicinal applications, and the potential use of seed kernel meal as livestock feed ingredients and in medicinal applications. 
 
 The 2nd Jatropha World Americas 2009 will be held in Miami, Fla., on June 10 and 11.
 
 Click <a href="http://www.futureenergyevents.com/jatropha/video2/ ">here</a> to view the full presentation.

Jatropha World Americas 2009 provides preconference video

April 16, 2009
 

 (Ithaca, NY) Representatives for Mirabito Energy Products took part in the formal announcement of a biodiesel bid award presented by Tompkins County, NY.
 
 A news conference was held Thursday, April 16 at 11:00am, at the Tompkins County Highway Division offices, 170 Bostwick Road, Ithaca, NY. The event celebrated the launch of biodiesel use in Tompkins County and illustrated the county's strong commitment to the environment and energy security. 
 
 Mirabito Energy was presented the winning bid in support of a Tompkins County Finance Department RFP for biodiesel fuel. The "B20" fuel will be used initially to support vehicles in the Tompkins County Highway Division, Ithaca Tompkins Regional Airport, Town of Dryden and Cornell University. "B5" will also be distributed to Ithaca College. 
 
 Mirabito's high-quality B20 is a mixture of 20 percent biodiesel and 80 percent standard petroleum diesel.
 
 "Biodiesel is a very easy way for our country to lessen its dependence on foreign oil-producing countries and at the same time offer a more environmentally- friendly fuel for consumers to use," said Joseph P. Mirabito, Chief Executive Officer of Mirabito Energy Products. "We are pleased to be able to support this initiative in Tompkins County, NY."
 
 The county took its first delivery of B20 last week. 
 
 Since 1927, Mirabito Energy Products has brought a wide variety of energy services to home and business owners. Home owners and businesses rely on Mirabito for their natural gas, fuel oil, electric, biodiesel and related energy needs. The Mirabito Corporate office is located in Binghamton, New York, with regional offices in Vestal, Norwich, Oneonta, Syracuse, Greene, Walton, Albany, New York and Susquehanna, PA.
 
 Contact: Ryan Andres
 607-352-2904

Mirabito Energy Products to Supply Biodiesel To Tompkins County, NY

Alabama Gov. Bob Riley has approved a $37,500 grant to the Alabama Clean Fuels Coalition to provide initial funding for a statewide incentive program to help fuel retailers pay the costs of installing B20 and E85 pumps at their stations. 

 
 The incentive program, a function of the Alabama E85 Infrastructure Task Force, is made up of state agencies and other organizations led by the energy division of the Alabama Department of Economic and Community Affairs. The task force is currently examining traffic volume and the areas of the state with the highest concentration of flex-fuel vehicles to determine the locations with the greatest demand for pumps. 
 
 The grant will be taken from state funds allocated to the division for alternative energy projects. 
 
 According to Alabama Clean Cities Coalition, there are currently 40 retail stations within the state that offer or are soon to offer biodiesel blends.

Alabama to increase B20, E85 pump numbers with grant

The Iowa Biodiesel Board applauds Senate passage of a Biodiesel Fuel Quality Standard (SF 464), requiring the use of a five percent biodiesel blend in every gallon of diesel sold in the state of Iowa. Continuing the bipartisan tradition of promoting renewable fuels, the bill was written by Senate President Jack Kibbie (D, Emmetsburg) and sponsored by 30 other senators.
 
 "Today's Senate passage of the Biodiesel Fuel Quality Standard demonstrates bipartisan agreement that biodiesel is vital to Iowa's rural economic development," said IBB Executive Director Randy Olson. "We look forward to strong bipartisan support for this bill in the House.
 
 "This vote confirms that biodiesel is a strong economic engine for Iowa and ensures we are contributing to our state's energy security, instead of paying for foreign oil," Olson says. "We thank Senate President Jack Kibbie and the bill's other champions, and we urge the members of the Iowa House to quickly approve this legislation. This bill is vital to Iowa's fulfilling its role as a national leader in biodiesel production.
 
 "Today's vote confirms that biodiesel is not only good for Iowa farmers and the environment, but it also adds to national security by decreasing our dependence on foreign oil," Olson says. "I want to thank the senators for their hard work crafting this legislation."
 
 Senate File 464 would make Iowa the eighth state to adopt a biodiesel fuel quality standard. Specifically, the bill calls for every gallon of diesel sold in Iowa to contain at least a five percent blend of biodiesel beginning Sept. 1, 2009. The bill also provides a $.03 per gallon refundable tax credit to retailers that sell diesel containing at least a 10 percent blend of biodiesel.
 
 Senate File 464 now heads to the House of Representatives for final approval before going to Gov. Culver to be signed into law.

 
 ###
 
 Contact: Randy Olson, Executive Director, 515-727-0664

Iowa Biodiesel Board applauds state B5 legislation

Glycos Biotechnologies, Inc. (GlycosBio) announced the closing of a $5.0 million Series A round of financing led by venture capital firms Draper Fisher Jurvetson (DFJ) and DFJ Mercury, both leading investors in early-stage clean technology companies. Proceeds from the Series A financing will be used to hire key technical talent and to commercialize GlycosBio technology to manufacturing scale. 
 
 GlycosBio is pioneering an innovative, sustainable and cost-efficient approach to chemical processes and products using microbes and fermentation technologies as an alternative to petrochemical-based manufacturing. GlycosBio's core technology for glycerin conversion was originally developed at Rice University in Professor Ramon Gonzalez's Chemical and Biomolecular Engineering Lab. This new technology is focused on converting low-value, low-purity carbon sources into high-quality, non-petroleum-sourced chemicals that are molecularly identical to current petrochemical-based chemicals. 
 
 GlycosBio's technologies will bolster economics of the ethanol and biodiesel industries by upgrading glycerin-rich co-products to a variety of chemical intermediates. The company's technologies enable the rapid implementation of a biorefinery business model by leveraging existing infrastructure to increase process efficiencies and improve profits. 
 
 "We are enthusiastic about both GlycosBio's technology and team," said Dan Watkins, managing director at DFJ Mercury. "We believe their microbial technologies open up whole new markets by using low-value, low-purity feedstocks to dramatically reduce the cost of chemical manufacturing. The combination of lower cost and significant CO2 reduction versus petrochemical processes gives GlycosBio a compelling value proposition." 
 
 In connection with this transaction, Steve Jurvetson of Draper Fisher Jurvetson and Dan Watkins of DFJ Mercury will serve on the GlycosBio board. Richard Cilento will join the board as Chairman. 
 
 "We are pleased to have received financing from a leading clean tech investor like DFJ," said Walter S. Burnap, chief financial officer of GlycosBio. "By developing technologies that rely on microbes to create chemicals, we can untether chemical manufacturing from the volatile petroleum market. Not only can GlycosBio offer customers price stability and overall cost savings, but we can also do it in a sustainable way that is good for the environment. GlycosBio will truly transform the biodiesel and ethanol industries by providing new product streams and biorefinery revenue opportunities for their existing facilities." 
 
 To link to a feature article on GlycosBio from Biodiesel Magazine, visit <a href="http://www.biodieselmagazine.com/article.jsp?article_id=1962&q=&page=all">http://www.biodieselmagazine.com/article.jsp?article_id=1962&q=&page=all</a>. 

 
 About DFJ
 
 Draper Fisher Jurvetson ("DFJ") backs extraordinary entrepreneurs anywhere who set out to change the world. DFJ achieves its mission through its DFJ Global Network of Partner Funds managing over $6B on four continents. Since its founding in 1985, DFJ has been proud to back over 500 companies across many sectors including such industry changing successes such as Hotmail (acquired by MSFT), Baidu (BIDU), Skype (acquired by EBAY), United Online (UNTD), Overture (acquired by YHOO), Athenahealth (ATHN), EnerNOC (ENOC), TicketsNow (acquired by TicketMaster), Feedburner (acquired by Google), Interwoven (IWOV), Four11 (acquired by YHOO), Parametric (PMTC), and Digidesign (acquired by AVID). 
 
 About DFJ Mercury
 
 DFJ Mercury is a seed and early-stage venture capital firm. Headquartered in Houston, Texas, DFJ Mercury invests in compelling and novel start-up opportunities in the information technology, advanced materials and bioscience sectors. DFJ Mercury seeks to partner with extraordinary entrepreneurs to build globally competitive businesses, focusing on investments in Texas and targeted regional tech clusters in the MidWest. The firm has a particular focus on university spin-outs and incubation, often investing prior to a business plan or management team being formed. DFJ Mercury is an active partner in the DFJ Global Network of venture capital funds. For more information visit www.dfjmercury.com. 
 
 About Glycos Biotechnologies, Inc.
 
 Glycos Biotechnologies, Inc. is a Houston-based biotechnology company started with technology initially developed at Rice University. GlycosBio is pioneering the metabolic engineering of microbial strains for the production of sustainable chemical intermediates, advanced ethanol and bioprocesses that will deliver lower costs and price stability to the chemical and biofuel industries. For more information, visit www.glycosbio.com.

GlycosBio closes series A round of $5 million

<a href="http://www.originoil.com/">OriginOil Inc.</a> is making progress towards reducing the cost of harvesting algae and extracting the oil in a rapid, one-step process. In addition to integrating this process into its own algae production system, OriginOil plans to quickly commercialize the patent-pending process for use by others in the algae industry.
 
 While a number of developers have been working on various systems to efficiently grow algae, a major hurdle for the industry has been efficiently harvesting the algae and extracting the oil. Not only does algae production require large volumes of water, but algae shares the same specific gravity as water, hindering easy separation. "The energy cost of extracting algae is 10 times the energy cost of extracting soybean oil," Riggs Eckelberry, CEO said. 

 
 In the past several months, OriginOil has combined its ultrasound-based Quantum Fracturing process with pH modification and electromagnetism. "In a single step you can extract the oil and get the biomass and oil to separate spontaneously shortly afterward," he explained. The process releases the oil to rise to the top for skimming, while the remaining biomass settles to the bottom. In less than an hour, the oil, water and biomass separate by gravity alone. No chemicals or heavy machinery are used, and no initial dewatering is required.
 
 OriginOil is already in talks with potential partners to commercialize the technology quickly, Eckelberry added. The company has completed a series of bench prototype testing and continues to experiment with adjusting the various factors to optimize the process. OriginOil intends to distribute the technology for algae harvest and oil extraction separately, as it continues to work with its own algae production system. 
 
 In February, OriginOil announced it had signed a Cooperative Research and Development Agreement with the DOE's Idaho National Laboratory. In the first phase, INL will develop a model to use for evaluating algae systems' mass and energy balance. "The industry hasn't shared just how efficient is this process," Eckelberry said. "The whole industry needs a model." In the second phase, INL will work with OriginOil's prototype technology to validate and further develop the company's algae technology. 
 
 With "breakthroughs" being announced weekly by the multiple companies developing algae technology, Eckelberry admits healthy skepticism is in order. "It's a dot.com environment right now, and it's going to take a while for it all to sort out," he said. He advises observers to follow the announcements, and "see how it settles out." Eckelberry is an advocate of sharing information and progress, while respecting the need to protect proprietary information. He will be speaking at the quarterly forum of algae entrepreneurs on April 30 organized by the National Algae Association. OriginOil's chief technology officer Vikram Pattarkine will be speaking at Algae World on April 27-28 in Rotterdam, Netherlands.
 
 For earlier articles about OriginOil in Biodiesel Magazine see <a href="http://www.biodieselmagazine.com/article.jsp?article_id=2585 ">"OriginOil presents at algae conference"</a> and <a href="http://www.biodieselmagazine.com/article.jsp?article_id=3094&q=OriginOil%20Inc.&category_id=13 ">"Origin automates algae system" 

 </a>

OriginOil achieves rapid algae oil extraction

Web news posted April 30, 2009, at 2:05 p.m. CDT
 
 JEFFERSON CITY, MO. – Minnesota is again leading the nation in the charge to keep valuable jobs in the U.S., decrease dependence on foreign oil and lessen environmental impacts. The state is the first to require that diesel fuel contain a 5 percent blend of homegrown, renewable biodiesel.
 
 "Increasing biodiesel in our diesel fuel allows us to take advantage of a renewable fuel made in Minnesota, which in addition to being environmentally responsible also adds to our state's bottom line," said Ed Hegland, a Minnesota soybean farmer and chairman of the National Biodiesel Board. "I'm proud to live in a state that is leading energy innovations and taking part in valuable solutions like biodiesel."
 
 Biodiesel is a sustainable, renewable alternative to diesel fuel that reduces greenhouse gases and other emissions, and is nontoxic and biodegradable. Biodiesel contains no petroleum, but it can be blended at any level with petroleum diesel. Blends can be used in most diesel engines with few or no modifications.
 

 "This standard empowers the citizens of the state to support Minnesota's economy and use less foreign oil," said Joe Jobe, National Biodiesel Board CEO.
 
 Blends of up to 5 percent biodiesel (B5) are legally categorized as diesel fuel, eliminating any operational or potential warranty concerns. B5 also boasts premium performance characteristics and when properly handled, will perform just like diesel.
 
 The biodiesel industry works closely with the petroleum industry and offers many resources regarding biodiesel use in cold climates. Biodiesel's cold weather performance is well documented. It is safe to use up to a 20 percent blend of high quality biodiesel year-round, in even the coldest of climates. Biodiesel will gel in cold weather, just like regular diesel fuel. But biodiesel blends can be treated for winter use in similar ways that No. 2 diesel is treated. Cold weather concerns are greatly diminished with lower blends like B5.
 
 Some early concerns with the Minnesota B2 requirement were overcome through enhanced quality control, and the program has been a biodiesel success story ever since. Last winter, officials in the Bloomington school district wrongly blamed biodiesel for buses' cold weather operating problems. An independent study and the Minnesota Department of Commerce confirmed B2 did not cause the malfunction.
 
 According to analysis from the Minnesota Department of Agriculture, the state's B2 Fuel Standard added an average of just 4/10 of a penny to the cost of a gallon of diesel during the last three years.
 
 Minnesota was the first among what is now a roster of states that also recognize the countless benefits of biodiesel and have introduced usage requirements of cleaner burning, domestically produced biodiesel. Washington, Oregon, Pennsylvania, Louisiana, New Mexico and Massachusetts have also passed biodiesel requirements.
 
 Minnesota is already home to excellent fuel quality enforcement requirements, proven and tested under the state's B2 standard. The National Biodiesel Board vigorously supports enforcement of quality standards. The NBB has an aggressive fuel quality outreach and enforcement program, funded primarily by the U.S. Department of Transportation and the United Soybean Board.
 
 Last year U.S. biodiesel production approached 700 million gallons, supported 51,893 jobs in all sectors of the economy, added $4.287 billion to the nation's Gross Domestic Product and reduced greenhouse gas emissions the equivalent of removing 980,000 vehicles from U.S. roads. 
 
 Source: National Biodiesel Board

Minnesota moves to B5, upping standard, benefits

NEW YORK, April 20, 2009 – Innovation Fuels has become the first Northeast biodiesel producer to receive BQ-9000 accreditation in both the areas of biodiesel production (2008) and most recently biodiesel marketing (April 2009). 
 
 Innovation Fuels received both accreditations from The National Biodiesel Accreditation Program, a cooperative and voluntary program for the accreditation of producers and marketers of BQ-9000. 
 
 "After initially receiving BQ-9000 production certification and following a thorough year-long process of acquiring BQ-9000 marketing accreditation, I am very pleased that we are the very first in New York harbor to have received both distinctions," commented Bob Lindenbaum, Chief Marketing Officer for Innovation Fuels. 
 
 "In receiving dual accreditation for BQ-9000, we now have heightened marketing capabilities in New York harbor together with advanced production facilities to deliver an array of methyl esters to the domestic marketplace," remarked Innovation Fuels CEO John Fox.

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Innovation Fuels Gains Production and Marketing BQ-9000 Accreditation

The Argentine Renewable Energies Chamber has updated its report of the current state of the Argentinean biodiesel industry, covering the past six months. 
 
 Although Argentina is among the top five biodiesel producing countries in the world, it is only operating at about half of its total installed capacity, the report found. Total industry production reached 1.07 million tons (319 million gallons) in 2008, with sales in excess of $1.3 billion. 
 
 The AREC said that estimates made last October of total 2008 production of
 1.2 million tons (358.8 million gallons) was not met because beginning that month, a rapid decline in demand and pricing took effect. "Some of the reasons behind this can be explained away with the softening of global economy and concurrent falling commodity prices, as well as by the decisions of the European Union that have taken measures to protect their internal markets – but which increasingly appear headed towards protectionism," the report stated. 
 
 The EU has imposed temporary anti-dumping and anti-subsidy duties on imports of biodiesel from the U.S., which came into effect on March 13, and will be in place for four months while the investigation and contacts with stakeholders continue. The level of the measures, which are applied together, is set at between €211.20 to €237.00 ($271.22 to $304.35) per ton for the anti-subsidy duties and between €23.60 and €208.20 ($30.31 to $267.31) per ton for the anti-dumping measures. This has slowed demand for Argentinean biodiesel, as biodiesel acquired by industry traders has typically been in the U.S., where it qualifies for US tax subsidies (reimbursements of $1 per gallon or $300 per ton), and is then re-exported to Europe.

 
 Given that at present the price of biodiesel placed in Rotterdam, Netherlands, is near US$800/ton, these additional tariffs are a hard blow to the U.S. biodiesel industry –but may represent an opportunity for Argentine biodiesel, especially the more established ones, according to the AREC. 
 
 In order to launch a domestic biodiesel market, the AREC proposes to accelerate the start date of the B5 mandate for domestic market by July 2009, to permit Argentine biodiesel producers –currently allowed only to export production- to supply domestic market for a temporary period; and to create a biodiesel stabilization fund with a goal of reducing price volatility for the domestic market.
 
 A free copy of the report, which also discusses the EU's moves to limit the entry of soy-based biodiesel and domestic market data, can be viewed <a href="http://www.argentinarenovables.org/archivos/ArgentineBiodieselMarket09.pdf">here.</a>

Report discusses Argentine biodiesel industry

April 20, 2009 - RICHMOND, BC (Canada): ASTM International has updated specification D6751 to include ASTM D7397, joining ASTM D5773 and ASTM 2500 (manual method) as allowed techniques for cloud point testing of biodiesel. Cloud point is the only cold flow property required before B100 can be released as a blending component.
 
 ASTM D5773 and D7397 (as used in Phase Technology 70X and CPA-T30 analyzers) are the only automatic methods for determining cloud point allowed in ASTM D6751. The specification is used to control pure biodiesel (B100) quality prior to blending with conventional diesel type fuels. ASTM D6751 is generally comparable to the European standard EN 14214.
 
 Cloud point is the temperature at which an oil or fuel, when cooled, begins to congeal and take on a cloudy appearance due to the formation of wax crystals. For B100, cloud point varies significantly and depends upon the mix of feedstock used to produce the biodiesel.
 
 Generally, B100 is not used to power motor vehicles; it is blended with other fuels. ASTM D6751 is critically important for biodiesel producers and blenders, but less of a consideration for downstream operations.
 
 Phase Technology's 70X and CPA-T30 are the world's only automatic analyzers which can be used to test cloud point in the production of biodiesel fuel blend stock, B100.

 
 The CPA-T30 is the least expensive automatic cloud point analyzer available on the market. It offers convenience, ease-of-use, and quick, precise test results – all in a small, portable package. For biodiesel blenders, an onscreen "blends" function calculates approximate volume ratio of B100 and petroleum diesel fuel to obtain a desired target cloud point.
 
 Phase Technology's 70X is a full-featured alternative for biodiesel and blends in circumstances wherein greater versatility is needed. The 70X is well-suited to higher volume situations, those wanting in-depth data and phase plot analysis, or labs that test a wider variety of biodiesel and petroleum fuels. The 70X can also be equipped to test other cold flow properties such as pour point or freezing point, making it the most versatile all-in-one cold flow analyzer available on the market today.
 
 ASTM D7467 is a relatively new specification that applies to biodiesel/diesel blends of between six (B6) and twenty (B20) percent. These grades are suitable for on- and off-road diesel engine use.
 
 Both ASTM D5773 and D7397 (as used in Phase Technology 70X and CPA-T30 analyzers) are included as methods for determining cloud point in ASTM D7467. 
 Under ASTM D7467, the biodiesel component must meet the requirements of ASTM D6751. The final blended product may also be tested for various properties, including cloud point. Since D7467 applies to product that is marketed to end users, it is believed that there will be new interest in biodiesel from vehicle manufacturers and consumers as they gain confidence in the adherence to accepted standards.
 
 Phase Technology designs, manufactures, sells and services test instruments that measure cold flow properties such as freeze, cloud and pour point. With over thirty patents for innovative test methods and scientific inventions, Phase Technology products are backed by a global commitment to deliver prompt, friendly and attentive customer service and technical support. 
 ###
 
 ASTM International is a registered trademark of American Society of Testing and Materials. ASTM International standards are available for purchase from Customer Service (phone: 610-832-9585; service@astm.org) or at www.astm.org.
 
 Further information is available from Phase Technology (phone: 604-241-9568; info@phase-technology.com) or at www.phase-technology.com.

ASTM Updates Biodiesel Specifications for Measuring Cloud Point

DESTINY, FLORIDA-APRIL 21, 2009 – The Sustainable Energy Farm at Destiny, Florida, America's first eco-sustainable city, has planted new biomass crops including jatropha, camelina, and new hybrids of sweet sorghum, which will be studied for future renewable energy and alternative fuel sources, announced Anthony V. Pugliese, III, Founder of Destiny and President and CEO of The Pugliese Company.
 

 The Sustainable Energy Farm is the result of a cooperative effort between Destiny and a growing list of companies and organizations including the University of Florida; Global Renewable Energy; GreenTechnologies, LLC; Southern Farms; Energy Structures & Systems, Inc.; Everglades Farm Equipment; Bio Greens Oil USA, LLC; Treasure Coast Irrigation & Landscape, LLC; William Spreader Service, Inc.; and Aglime Sales.
 
 Several varieties of sweet sorghum were donated by Global Renewable Energy, and planted by Everglades Farm Equipment with the self-steering, precision guidance Autotrac system, which enables crops to be planted more efficiently, waste less seed, and fertilize more accurately. A new drip fertigation system, designed to reduce water waste, will be overseen by Treasure Coast Irrigation. The camelina, a new potential candidate in the biofuel market, and jatropha were planted by Bio Greens Oils USA.
 
 The Sustainable Energy Farm is also planning to grow arundo donax this spring for testing; arundo donax is a perennial grass, with potential yields of 30 to 35 tons of biomass per acre.
 
 To determine the validity of these crops as future fuels, scientists at the University of Florida will research yields per acre, water and fertilizer consumption, different harvesting techniques, and suitability to the Central Florida climate.
 
 "Sustainable agriculture is a key component in our country's transition from fossil fuels to alternative fuels and renewable energy," Pugliese stated. "Fortunately, Destiny is located in the nation's 'sweet spot' for biomass production. Our long growing seasons, large tracks of open land and ideal weather are the perfect combination for producing the needed solutions to the energy crisis."
 
 The Sustainable Energy Farm serves as a learning center where sustainable farming techniques and practices are showcased and taught to residents of Florida and people throughout the world. The Sustainable Energy Farm is also developing and testing carbon-free harvesting techniques, to find the methods that will offer the smallest environmental impact. 
 
 About Destiny, America's First Eco Sustainable City: Destiny, Florida spans 64 square miles, or 41,300-acres, and includes more than 25,000 acres of preserved, open space in southern Osceola County. Less than one hour from Orlando, Destiny is strategically located at one of Central Florida's main intersections; consisting of the Florida Turnpike, U.S. Route 441 and State Road 60. Destiny will provide a variety of industries with a new regional commerce hub located within a day's drive of 30 million consumers. As the future home to scientists, engineers, clean-tech innovators and university research centers, Destiny will be a well-balanced mix of new technology, educational excellence, longevity-based lifestyles, and social and cultural centers. Destiny plans to feature NextGEN aviation, a multi-modal transportation system and a master plan for sustainability by ARUP. Destiny is situated within Florida's Clean Tech Corridor, the seventh largest mega-region in the United States. For more information, please visit www.destinyflorida.com or call 1-888-2DESTINY.

Jatropha, Camelina and Arundo Donax to be Studied for Future

Sustainable Energy Farm at Destiny, Fla., Plants New, Alternative Fuel Crops

April 21, 2009
 
 JEFFERSON CITY, MO. – When it comes to domestic energy solutions, National Biodiesel Board CEO Joe Jobe has often said there is "no silver bullet." But apparently there is a "golden bullet." Honored today with the Alternative Fuel Vehicle Institute's Golden Bullet Award, Jobe pointed out that biodiesel is among renewable energy solutions that, when combined, pack a powerful opportunity to lead America towards energy independence. 

 
 "Biodiesel is just one key part of the solution to reduce our nation's dependence on foreign oil, preserve our natural resources, reduce harmful greenhouse gas emissions and provide sustainable energy," said Jobe. "I am honored to be recognized, but thank the members of the biodiesel community, who are dedicated and persevering when it comes to ensuring America can produce its own fuel." 
 
 The Alternative Fuel Vehicle Institute recognizes outstanding leadership in the alternative fuels and vehicles industry. The Golden Bullet was among awards presented at the 15th national Alternative Fuels & Vehicles Conference and Expo 2009 in Orlando to honor leaders and organizations that further advanced technologies resulting in clean alternatives to petroleum. 
 
 "Joe Jobe's leadership has been a tour de force unifier behind the national effort to bring the biodiesel industry together and advance the use of biodiesel in our nation's fleets," said Alternative Fuel Vehicle Institute's Director of Education and Business Programs, Kimberly Taylor. "A rising tide lifts all boats, and biodiesel's successful growth has a ripple effect in demonstrating that alternative fuels can power the nation." 
 
 Biodiesel use and production have increased exponentially over the last ten years. Estimated domestic biodiesel production in 2009 was 500,000 gallons. By 2008, that number grew to nearly 700 million gallons. Local, state and federal government fleets as well as private companies are making a switch to biodiesel or a blend of biodiesel and petroleum diesel as a way to minimize the negative environmental and health impacts tied to traditional diesel fuel, without negatively impacting the food supply. 
 
 Biodiesel is a sustainable, renewable alternative to diesel fuel that reduces greenhouse gases and other emissions, and is nontoxic and biodegradable. For more information about the many benefits of biodiesel visit www.biodiesel.org. 
 
 
 
 # # # 
 
 

 For more details about biodiesel, including economic and job boosts, energy security, and environmental, visit www.biodiesel.org.

National Biodiesel Board CEO Accepts Golden Bullet Award

Alternative fuels industry honors biodiesel chief

The debate on indirect land use change was heating up April 21 in advance of the April 23 hearing of the California Air Resources Board on its Low Carbon Fuel Standard. While the board's decision will impact all alternative fuels in the California market, CARB's indication to include a measure of indirect land use (ILUC) change in its definitions had the corn ethanol industry, in particular, marshalling evidence to show inadequacies in the ILUC concept. 
 
 The Renewable Fuels Association issued a news release April 21 calling into question California's ability to reach its low carbon goals due to "the policy's inherent bias against low-carbon biofuels." 
 
 The RFA reviewed the conclusions of its analysis of the CARB proposals, saying the model used to predict land use change is not a mature model and includes insufficient credits for co-products; is not sufficiently accounting for projected increased crop yields; and is missing land sets in the database that result in overestimates of forest land conversion. For the complete statement and previous comments from the RFA visit the organization's Web site at <a href="http://www.ethanolrfa.org/.">www.ethanolrfa.org.</a>
 
 Representing a different point of view, the <a href="http://www.ucsusa.org/ ">Union of Concerned Scientists</a> organized a letter signed by more than 170 scientists and economists urging the CARB to account for biofuel pollution from indirect land use change, as well as from other major fuel emissions sources. "To spur innovation in low carbon fuels, the LCFS must send an accurate signal to the growing clean energy market," their letter states. "Strategic investment decisions should be based upon the best available data of the carbon footprint of alternative fuels. Failure to include a major source of pollution, like indirect land use emissions, will distort the carbon market, suppress investment in truly low carbon fuels, and ultimately result in higher emissions."
 
 To learn more about the issue, and follow the debate through submitted comments, visit the CARB Web site at <a href="http://www.arb.ca.gov/homepage.htm">http://www.arb.ca.gov/homepage.htm</a> .

Groups weigh in on the approaching CARB hearing

April 22 - VANCOUVER - Dynamotive Energy Systems Corporation (OTCBB:DYMTF) announced today that it has successfully produced significant amounts of renewable gasoline and diesel from biomass at its research facility in Waterloo Ontario through a novel two stage upgrading process of BioOil.

 
 The process developed by Dr. Desmond Radlein and his research team, involves pyrolysis of lignocellulosic biomass to produce a primary liquid fuel, BioOil, which is then hydro-reformed to a Stage 1 gas-oil equivalent liquid fuel that can either be directly utilized in blends with hydrocarbon fuels for industrial stationary power and heating applications or be further upgraded to transportation grade liquid hydrocarbon fuels (gasoline/diesel) in a Stage 2 hydrotreating process. The major by-product from lignocellulosic biomass pyrolysis is Biochar which has emerging value for soil productivity enhancement and carbon sequestration. Dynamotive markets its Biochar under the trade name CQuest.
 
 Based on initial test and analysis, the Company currently estimates that it can deliver advanced (second generation) fuels from biomass at a cost of less than $ 2 per gallon of ethanol-equivalent fuel in facilities processing about 70,000 tonnes of biomass per annum (current scale of its 200 metric tonne per day plant). For further details on the process please visit Dynamotive's website www.dynamotive.com.
 
 The upgrading process addresses several critical issues in the development of sustainable fuels from biomass.
 
 1) Food vs. Fuel: The Company converts residual biomass from agricultural and forestry operations and/or dedicated non-food crops through a thermochemical process into BioOil and Biochar. BioOil and Biochar plants can coexist with existing forestry and agricultural facilities, providing an additional benefit to operations.
 
 2) Yield: Dynamotive's pyrolysis process converts roughly 85% of the total biomass feed into useful solid (char) and liquid (BioOil) fuels. The balance is utilized to provide energy to the process.
 
 3) Yields of Diesel/Gasoline from BioOil through the Stage 2 upgrading process of 37% have been achieved at bench-scale. The net overall yield from whole biomass to diesel/gasoline is approximately 25%, which to our knowledge is the highest ever reported.
 
 4) Scale: Dynamotive's process is projected to be economically viable at 1/7 to 1/15 scale of competing technologies currently known or under development. It is projected that a plant processing under 70,000 tonnes of biomass a year would produce approximately 4,500,000 gallons of renewable gas-oil at under $ 2 per gallon. The scale factor enables distributed production i.e. plants can be developed in diverse locations creating sustainable "green" jobs, while being compatible with agro and forestry operations.
 
 5) Flexibility: the two stage process developed by the Company also allows for the opportunity to further upgrade the stage 1 renewable gasoil into diesel and gasoline fuels at a centralized facility or the development of a fully integrated plant if production logistics and economics merit it. This provides for flexibility in development and application.
 

 6) Investment: Given the plant scale, the investment required is comparatively low. Approximately $ 33 million will deliver a 15 year production capacity of approximately 67 million gallons of renewable transportation grade hydrocarbon fuels. This is a fraction of the capital cost per gallon and per plant required by proposed competing technologies.
 
 7) Time to market; Dynamotive's pyrolysis platform is available today, with plants of 130 Mt and 200 Mt per day completed. The upgrading process uses conventional hydrotreatment equipment and process conditions allowing for rapid implementation at pilot and commercial scale.
 
 8) Construction of an upgrading pilot plant is planned for later this year.
 
 Dynamotive's path: The Company followed the philosophy that having small scale processing plants (against micro and large scale plants) would provide an opportunity for efficient management of biomass resources and economic operation. The approach allows access to biomass pools that otherwise would not be commercially accessible and allows for the development of distributed fuel production plants.
 
 Dynamotive's technology is in its 5th generation, having progressed since 1995 to date from bench scale to first pilot at 500 kgs day and 2,000 kgs day, second pilot at 10,000 kgs day and 15,000 kgs day and first and second commercial at 130 and 200 tpd biomass input.
 The Company also followed a product development path, aiming at producing renewable fuels that could be blended seamlessly with existing hydrocarbon fuels from biomass. The objective: integrating its products to existing infrastructure and engine technologies.
 
 In doing so provide:
 
 1) A Biomass based refiners input that is competitively priced at source (BioOil).
 
 2) A finished product that would be capable of competing on level terms with existing hydrocarbon based fuels.
 

 3) A finished product that would be compatible with existing infrastructure thus avoiding cost and complexity of dedicated storage, delivery, blend ratios and engine platforms.
 
 Dynamotive through its approach proposes a practical alternative for advanced biofuels production and use which can be competitive on its own merits against traditional fossil fuels in a wide range of economic conditions.
 
 Other Corporate Update:
 
 In other corporate developments, Messrs. Terwilliger and Winsor have retired from the Board of the Canadian parent company but continue to sit on the Board of the Company's US subsidiary to assist management of the US operations. Dynamotive thanks these gentlemen for their valuable support over the last several years.
 
 Cautionary Notes:
 
 Although Dynamotive believes the yield and cost figures described herein are reasonable estimates based on its current knowledge, it cautions that these results were achieved at bench-scale levels only. While Dynamotive believes the process can be scaled-up using conventionally available upgrading equipment, until such upgrades are in place on a large scale and have operated for a longer term, these estimates may be subject to material adverse changes. Subject to availability of financing, construction of a first commercial upgrading pilot plant is planned for later this year. Although patents for the process will be filed shortly, there is no assurance that patents will ultimately issue or that proprietary protection will be available.
 BioOil is a registered trademark of DynaMotive Energy Systems Corp.
 About Dynamotive
 Dynamotive Energy Systems Corporation is an energy solutions provider headquartered in Vancouver, Canada, with offices in the USA and Argentina. Its carbon/greenhouse gas neutral fast pyrolysis technology uses medium temperatures and oxygen-less conditions to turn dry, waste cellulosic biomass into BioOil for power and heat generation. BioOil can be further converted into vehicle fuels and chemicals. Photographs of the Guelph and West Lorne plants may be seen on the company's website www.dynamotive.com.
 About BioOil Biofuel
 BioOil is an industrial fuel produced from cellulose waste material. When combusted it produces substantially less smog-precursor nitrogen oxides ('NOx') emissions than conventional oil as well as little or no sulfur oxide gases ('SOx'), which are a prime cause of acid rain. BioOil and BioOil Plus are price-competitive replacements for heating oils #2 and #6 that are widely used in industrial boilers and furnaces. They have been EcoLogo certified, having met stringent environmental criteria for industrial fuels as measured by Environment Canada's Environmental Choice Program. BioOil can be produced from a variety of residue cellulosic biomass resources and is not dependent on food-crop production.

 Forward Looking Statement
 Statements in this news release concerning the company's business outlook or future economic performance; including the anticipation of future plant start-ups, partnerships, consortiums, teaming agreements, government assistance, other anticipated cash receipts, revenues, expenses, or other financial items; and statements concerning assumptions made or expectations as to any future events, conditions, performance or other matters, are "forward-looking statements". Forward-looking statements are by their nature subject to risks, uncertainties and other factors which could cause actual results to differ materially from those stored in such statements. Such risks, uncertainties and factors include, but are not limited to, changes in energy prices, availability of capital, and the company's ability to access capital on acceptable terms or any terms at all, changes and delays in project development plans and schedules, customer and partner acceptance of new projects, changes in input pricing, competing alternative energy technologies, government policies and general economic conditions. These risks are generally outlined in the company's disclosure filings with the Securities and Exchange Commission.
 
 Source: Dynamotive Energy Systems Corporation
 
 Contact:
 Delphin Thebaud, 703-336-8459
 Toll Free (North America): 1-877-863-2268
 Fax: 703-336-8462
 info@dynamotive.com
 www.dynamotive.com

BioOil "Hydro-Reforming" Two Stage Process Provides Cost and Scale Advantages

Renewable Gasoline and Diesel from Biomass Produced at Dynamotive's Research Facility

ST. LOUIS (April 22, 2009) – The United Soybean Board (USB) and soybean checkoff are proud to serve on the steering committee for Field to Market, the Keystone Alliance for Sustainable Agriculture. The soybean checkoff will provide nearly $160,000 in funding to Field to Market, whose steering committee is a diverse group of grower organizations, agribusinesses, food companies and conservation groups. 
 
 As part of a broader effort to measure and support agriculture's progress against key environmental and socioeconomic sustainability indicators, Field to Market will provide farmers an online source to gauge the sustainability of their operations and access information on practices that can improve their efficiency and protect their local environment. 
 
 In addition, USB's sustainability initiative is committed to helping improve the U.S. soybean industry's environmental footprint. Doug Goehring, a USB director and team lead for USB's sustainability initiative, said part of the initiative's task is raising awareness of the importance of sustainability.
 
 "The sustainability initiative is focused on how to communicate our message of sustainability to audiences throughout the world," said Goehring, who raises soybeans, corn and wheat on his no-till farm in Menoken, N.D. "Sustainability is in its infancy and moving forward carefully. It's more important than people think. It covers everything – production, biofuels, new uses, marketing – sustainability is a central point in everything we do."

 
 Field to Market will soon launch a trial version of its Fieldprint Calculator, a free online sustainability tool. Goehring has been part of the planning process for the online calculator, making suggestions to improve a tool that will eventually be capable of computing sustainability for U.S. commodity crop producers.
 
 "It's kind of a work in progress," Goehring said of the calculator. "They've collected a lot of thoughts from many growers. I know the designers are taking those suggestions into consideration and trying to make it valuable for every grower in the United States. I think, as the calculator evolves, it will really be a valuable tool and be able to impact this issue. It'll really be able to help us measure where we are as an industry." 
 
 The calculator analyzes the use of natural resources, such as land, topsoil and water, and key inputs, such as energy, plant nutrients and crop protection products. Growers can answer a series of simple questions about their operation, and, in as little as 15 minutes, understand how they compare with others in their region or across the country. 
 
 In addition to the calculator, www.fieldtomarket.org will provide a resources page where farmers can come together to share advice and tips, all with the goal of determining which sustainability practices make the most sense for their individual operations.
 
 With the release of the trial version, Field to Market will welcome input from users of the calculator to help adapt the tool to suit individual needs. By participating and providing feedback, farmers can help shape the industry's sustainability effort instead of being subject to prescriptions in the future.
 
 "We are sustainable; we've been practicing it," Goehring said. "The technology is just catching up with us. We're trying to proactively define and measure our industry in an effort to showcase what we're doing already as an industry. We've made great strides in production agriculture in this country, and we'll continue to perfect that."
 
 USB is made up of 68 farmer-directors who oversee the investments of the soybean checkoff on behalf of all U.S. soybean farmers. Checkoff funds are invested in the areas of animal utilization, human utilization, industrial utilization, industry relations, market access and supply. As stipulated in the Soybean Promotion, Research and Consumer Information Act, USDA's Agricultural Marketing Service has oversight responsibilities for USB and the soybean checkoff.

United Soybean Board Committed to Raising Awareness of Importance of Sustainability

Soybean checkoff invests in sustainable agriculture

Biodiesel Magazine obtained a statement from the National Biodiesel Board regarding the California Air Resources Board's recent ruling on a low carbon fuels standard and indirect land use change. The statement reads: 
 

 The National Biodiesel Board has appreciated the opportunity to work with CARB on this difficult but worthwhile issue of replacing fossil fuels with low carbon renewable fuels. 
 
 Today, Biodiesel is an alternative fuel that can immediately and seamlessly transition a diesel fleet to a cleaner-burning fuel program, and the National Biodiesel Board supports efforts to reduce greenhouse gas emissions from the transportation sector. In fact, the nearly 700 million gallons of biodiesel produced in the United States last year reduced greenhouse gas emissions by 11.28 billion pounds, the equivalent of removing 980,000 vehicles from America's roadways. 
 
 Moving forward, biodiesel will continue to reduce regulated emissions and greenhouse gas emission and the National Biodiesel Board will continue to work with CARB on the implementation schedule for diesel and the lifecycle assessment for biodiesel. 
 
 NBB remains hopeful that CARB staff will continue to work collaboratively on potentially difficult issues like indirect lifecycle greenhouse gas impacts. 
 
 Specifically, among other things, NBB will continue to urge CARB to:
 
 &bull; take time with regard to work on indirect land use change modeling and defer any decisions until the science is accurately and fully developed; 
 
 &bull; include historical trends predicting increased crop yields on existing acres; 
 
 &bull; and be exceptionally thoughtful with regard to managing the peer review process. 
 
 Biodiesel is a cleaner burning, advanced alternative fuel and is among the most powerful tools to fight carbon emission, chipping away at the largest contributor of greenhouse gas emissions - fossil fuels. Biodiesel has a 78 percent life cycle carbon reduction compared to petroleum according to the USDA/DOE. 

 
 Biodiesel's environmental benefits are wide spread. The fuel is nontoxic and biodegradable. Biodiesel is the only alternative fuel to have fully completed Tier I and Tier II health effects testing requirements of the Clean Air Act. It is domestically produced from a range of readily available products like soybean and other plant oils, animal fats, recycled restaurant grease, and waste grease. In addition, work continues on new renewable fuel sources, including algae, to bolster what is already the most diversified fuel on the planet.

NBB comments on California standard

Web exclusive posted April 27, 2009, at 11:52 p.m. CST
 
 Following months of consideration and public commentary sessions, members of the California Air Resources Board held a final day-long hearing April 23 to consider the adoption of a low-carbon fuel standard. Board members voted 9-1 in favor of the regulation, setting in motion a plan to reduce greenhouse gas emissions (GHG) in the state by 16 million metric tons by 2020 and to require biofuel producers to meet "carbon intensity" standards, which include indirect land-use change (ILUC) considerations.
 
 From its inception, the inclusion of ILUC in California's standard sparked controversy among members of the scientific community. At issue is whether or not ILUC can be accurately measured. As well, the ethanol industry has lobbied that ethanol is being held to unfair standards because petroleum producers would not be required to include ILUC in their carbon calculations.
 
 CARB members agreed in their vote to reconsider the ILUC portion of the standard – a bright note in an otherwise dismal decision for the ethanol industry. The Renewable Fuels Association expressed disappointment in the passage of the standard but said members are confident the work group assigned to reassess the land-use analysis will determine a more balanced assessment of indirect GHG effects on all fuels. "Adopting this standard sets a dangerous precedent about the application of unproven science to industries across the country," RFA President and CEO Bob Dinneen said. "In unfairly penalizing ethanol, ARB is relegating California to more petroleum use as biofuels are the only viable alternative liquid fuel."
 Industry group Growth Energy also expressed its disappointment with CARB's decision. "This was a poor decision, based on shaky science, not only for California, but for the nation," said Growth Energy co-chairman Gen. Wesley Clark. "It is unfair to selectively single out the indirect effects of one fuel pathway while ignoring the significant indirect effects of all other fuels, including petroleum." Clark said California's decision will stifle the development of the cellulosic ethanol industry.
 
 Growth Energy CEO Tom Buis said that if the work group establishes ILUC standards for all fuels, including petroleum, the ethanol industry will prosper. "We're very supportive of a low-carbon fuel standard because ethanol is a low-carbon fuel," he said. "Corn ethanol can thrive if all fuel pathways are calculated on a level playing field."
 
 Source: Ethanol Producer Magazine

California adopts low carbon fuel standard

Web news posted April 28, 2009, at 11:57 a.m. CDT
 
 <a href="http://www.sironafuels.com">Sirona Fuels</a> announced it has begun jatropha planting operations in Haiti over the past month in a joint venture with 3C Missions, an organization that has established a relief fund for over 1,100 orphaned children in Haiti. Sirona intends to harvest and crush the jatropha in Haiti, and refine it into a high-quality B100 biodiesel in the United States. Sirona's nursery operations include planting multiple strains of seeds and seedlings that will be intercropped with moringa trees. Moringa leaves are high in protein and nutrients and can be simply processed into a micronutrient powder to fight malnutrition.

 
 "Planting our first jatropha in Haiti is an important milestone for us and for our Haitian partners," said Paul Lacourciere, Sirona's CEO. "This represents a critical step in changing the lives of the farmers in Haiti while creating the opportunity for us to deliver high-quality biodiesel that aids in lowering American's carbon emissions. Additionally, Sirona has also partnered with Haitian farmers that have dedicated land to planting jatropha, but have not been able to get their product to market."
 
 In an effort to spark economy in the region, Sirona will not take ownership of the Haitian jatropha farms, but rather form a partnership by providing the equipment, seeds, seedlings and technical advice necessary to grow commercially viable jatropha. The Sirona Cares foundation is also ramping up its activities in the communities in which the Sirona Fuels community farms are located. Among other activities it is distributing medical supplies and mosquito nets to assist communities that are trying to rebuild after last year's devastating hurricanes.
 
 By working with sustainable and affordable feedstocks like used cooking oil and jatropha, Sirona's business model is designed to stabilize fuel prices for its customers, provide sustainable revenue to its suppliers and make significant volumes of high-quality biodiesel available to the market. Sirona has identified commercial sources for jatropha in several countries and is developing businesses that will promote the establishment of jatropha farms in Haiti, India and other developing countries.
 
 Source: Sirona Fuels, Business Wire

Sirona Fuels launches jatropha production in Haiti

Web news posted April 28, 2009, at 1:16 p.m. CDT
 
 <a href="http://www.sgfuel.com/">SG Biofuels </a>today announced the opening of its Jatropha Genetic Resource Center (GRC) to advance profitable, large-scale production of jatropha as a low-cost, sustainable source of feedstock for biofuel.
 
 With research sites in San Diego and several Latin American countries, SG Biofuels and its GRC posses the largest, most genetically diverse library of jatropha genetic material in the world. The GRC will enable the company's efforts to drive genetic improvements that will enhance yield, improve agronomic practices and broaden the effective growing range of this promising subtropical crop, which results in no direct or indirect land use changes.
 
 "Our library of genetic material provides an unprecedented opportunity to push this undomesticated crop to its full potential," said Kirk Haney, president and CEO for SG Biofuels. "We already have identified many strains whose characteristics suggest we've only scratched the surface for the production capabilities of jatropha."

 
 Jatropha curcas is a non-edible shrub that is native to Central America. Its seeds contain high amounts of oil that can be used for a variety of bio-based materials including biodiesel and feedstock substitutes for the petrochemical and jet fuel industries. It can be effectively grown on abandoned lands that are unsuitable for other crops.
 
 The company's team of genetic scientists, led by Robert Schmidt of the University of California-San Diego includes three members of the National Academy of Sciences. Through its GRC, SG Biofuels has begun evaluating thousands of diverse accessions of jatropha obtained from a range of geographical and climatic conditions.
 
 Research efforts include selection and breeding, and the company has generated hybrids among genetically distinct lines to address such issues as yield, cold tolerance and resistance to insect pests. A range of opportunities exist to improve jatropha's oil yield and develop improved strains, including those that can further enhance production in colder climates of southern and southwestern United States.
 
 With proper site selection and agronomic practices, oil yields of 200-300 gallons of extractable oil per acre are realistic today. In addition, jatropha has very-low input costs relative to other biofuel feedstocks, which makes jatropha profitable with current yields.
 
 "Based on early returns from our genetic research, as well as experience with other similar, undomesticated crops, we are confident we can double the yield of jatropha within the next few years," said Haney. 
 
 Source: SG Biofuels

SG Biofuels opens jatropha center

Web news posted April 29, 2009, at 11:38 a.m. CDT

 
 Oxford, Miss.-based <a href="http://www.encoreenergyinc.com/">Encore Energy Systems Inc.</a> has executed a memorandum of understanding (MOU) with Texas-based biodiesel company <a href="http://www.hardinfuels.com/index.php">Hardin Fuels Inc. </a>The agreement calls for joint business development and to assist Hardin Fuels with securing funding for future expansion. 
 
 According to a press release issued by Encore Energy Systems, "the MOU is part of Encore Energy Systems' continuing business development and growth strategy in the biofuels and alternative energy marketplace". BDM was unable to reach a representative of Encore Energy Systems for comment on how the company intends to leverage Hardin Fuels' assets/resources for this specific partnership.
 
 Hardin Fuels currently operates a 2 MMgy multi-feedstock biodiesel plant in Kountze, Texas. The plant recently resumed operation after sustaining a fire that broke out at the plant in February. According to Hardin Fuels' mission statement, the company aims "to help make our country fuel self sufficient through use of unused farm lands as well as recycled vegetable oil…to build a very profitable environment of partnerships in many industries using all by-products effectively with little or no waste."
 
 The move by Encore Energy Systems falls in line with the company's core growth strategy in the biodiesel market. The company aims to "aggressively acquire biodiesel production assets" and believes the consolidation of underutilized and distressed biodiesel assets will position it as a premier global producer and distributor of biodiesel, the goal of its 2009 acquisition and growth plan, according to the company's website.
 
 Evidence of Encore Energy Systems' strategy was put into action in March when the company signed a Letter of Intent to acquire Geo Green Fuels Gonzales LLC's 3 MMgy biodiesel plant in Gonzales, Texas. The multi-feedstock capable facility, which is located on 15 acres adjacent to rail, was expected to generate approximately $8.5 million annually. 
 
 In mid-March, in preparation for its acquisition strategy of biodiesel assets, Encore Energy Systems entered into an agreement with Chicago, Ill.-based <a href="http://www.zenergyintl.com/">Zenergy International Inc.</a>, which will provide biofuel plant management services, biofuel feedstock allocation and purchasing, along with market development services.

Encore Energy Systems signs MOU with Hardin Fuels

Evonik Degussa Corp. held a plant dedication ceremony on April 28 to celebrate the commissioning of its new sodium methylate plant in Mobile, Ala. The 60,000 metric ton (16.5 million gallon) per year facility was built to serve North American biodiesel producers. 

 
 Until now, Evonik Degussa has supplied U.S. biodiesel producers with catalyst made at its German facility. The new plant in Alabama, however, employs a different process to produce sodium methylate than its German counterpart. Instead of using an electrolysis process to make sodium methylate from sodium hydroxide and methanol, the new facility employs reactive distillation to make the same ready-to-use catalyst. 
 
 At the plant dedication event, Biodiesel Magazine talked with Evonik Degussa's head of electrolysis products and alkoxides business line, Joes Berges, about the health of the global biodiesel industry. Berges said despite low energy prices the world over, biodiesel production and use in many countries is thriving – except in the United States. 
 
 Recent tariffs on U.S. B99 entering Europe and the delay in implementing RFS2 – which includes the 1-billion gallon biomass-based diesel mandate – have caused significant stress on U.S. biodiesel production, Berges said, adding that no industry can survive based on export markets alone; a strategy U.S. producers and marketers have relied on for the past few years. 
 
 Berges says the U.S. biodiesel industry can rejuvenate itself by expediting the implementation of RFS2 and creating local markets.
 
 Implementation of RFS2 is slow-going, however, because U.S. EPA must consider several factors, including creating a mechanism to account for biodiesel blending – or the means to accurately monitor renewable identification number credit sales and purchases through the EPA's development of a Moderated Tracking System – and the contentious issue of indirect land use change. 
 
 Berges was also asked if the new plant will serve producers outside North America – such as those in Brazil or Argentina. The intended geographic market for the sodium methylate produced in Alabama is North America, he said, but Evonik Degussa would look at supplying the catalyst elsewhere if economics dictate a reevaluation of this original marketing strategy. 
 
 The Evonik Degussa chemical park in Mobile, Ala., where the new catalyst manufacturing facility is located, contains 17 chemical plants. The company began chemical production there in 1976.

Biodiesel catalyst plant starts production in Alabama

Posted April 30

 U.S. Senator John Thune introduced a bill today designed to strengthen the Renewable Fuels Standard and prevent the Environmental Protection Agency's (EPA) attempts to use inaccurate indirect land use models to discredit the positive environmental impacts of ethanol and biodiesel.
 
 "Following California's recent decision to use flawed models to estimate ethanol's environmental impact, I am concerned that the EPA could soon apply similar standards that will handicap renewable fuel relative to regular gasoline," said Thune. "Congress has asked EPA to apply greenhouse gas emission standards that reflect ethanol's proven environmental benefits. However, with the EPA's current decision that is pending at the White House, I am concerned that EPA's action could have a detrimental impact on our renewable fuel industry and efforts to reduce our dependence on foreign oil."
 
 The EPA has yet to issue rules for the new Renewable Fuels Standard (RFS), which was enacted as part of the 2007 Energy Bill. The new RFS requires new corn ethanol plants and new cellulosic ethanol plants to produce a fuel that emits fewer lifecycle greenhouse gasses relative to regular gasoline. However, Congress included a requirement to quantify emissions from indirect land use changes. Since enactment of the legislation, there is growing concern that EPA could unfairly interpret this provision and discredit American made ethanol with indirect land use changes that may or may not occur in other countries around the world.
 
 Thune's bill directs the EPA to focus on direct lifecycle greenhouse gas emissions, which would level the playing field between ethanol and regular gasoline and bring more regulatory certainty to the ethanol industry. Additionally, the bill would require EPA to publicize the model for measuring lifecycle greenhouse gas emissions before taking any regulatory action. The bill would also allow individual ethanol producers with a unique production method to apply to the EPA for a lower carbon score which would provide an incentive for ethanol companies to develop innovative ways to produce ethanol.
 
 "Ethanol is a cleaner burning fuel than gasoline and we must continue to incentivize ways for ethanol companies to work to reduce their impact on the environment and provide even greater environmental benefits."
 
 The bill would also establish a waiver process for the greenhouse gas reduction requirements in the new RFS. This provision would allow ethanol producers to petition the EPA to waive the greenhouse gas reduction requirements of the RFS if the requirements are preventing the industry from meting the RFS requirements, contributing to our dependence on foreign oil, or creating an undue economic burden on the ethanol industry.
 
 "The activist nature of the current EPA may undercut the environmental benefits of ethanol. I will continue to work with my colleagues in Congress to make sure those efforts are unsuccessful and we do everything we can to grow and expand the ethanol industry."

Thune introduces indirect land use bill

In July 2006, after Greenpeace International authored a report claiming that soya farming was the leading driver of Amazon deforestation, ADM, Cargill and other members of Brazil's vegetable oil and grain exporting industries "agreed to a voluntary moratorium on trading soy harvested from newly deforested areas in the Amazon biome for a period of two years," said Bunge Ltd. in a company statement. "The intent was to relieve pressure on the Amazon biome, so work could be undertaken by government, industry, farmers and environmental groups to ensure its long-term protection." The moratorium is scheduled to end in July after the original agreement was extended last year.
 
 "We hope this moratorium is extended through 2010," said Paulo Adario, director of Greenpeace's Amazon deforestation campaign. "But we haven't begun any serious negotiations as of yet." The sustainable production of biodiesel has been a major focus of the global industry in recent months, as consumer opinion has indicated, especially in Europe – so much so that EU nations do not want to buy biofuels that put pressure on food crops or are made in ways that damage indigenous ecosystems. 
 
 "Biodiesel demand for soy oil is not seen as a significant driver of Amazon deforestation" Adario said. "Most of the soya grown in Brazil, including what is grown on illegal plantations, is for animal and human consumption; and right now, the Brazilian government is investing in other feedstocks for the development of its biofuels program."

 
 The South American country, which is looking to grow its export power in the biofuels market, is being very careful about how its feedstocks are grown and sourced. "Sugarcane cultivation for ethanol production is the primary risk to the Amazon right now," Adario told Biodiesel Magazine. "But the Brazilian government is taking steps to fight this because they know that that if the ethanol or biodiesel produced here is found to be supported by land that is responsible for rain forest destruction, the world market is going to say 'no, no, no.'" 
 
 While Greenpeace says the moratorium has had a significant impact and soy cultivation is no longer the leading driver of Amazon deforestation, there is still much work to be done. "There is no certification for soy in Brazil and very little traceability," Adario said. "So the question is, 'Are the traders ready to totally exclude the farmers who grow soy illegally from the market?'"
 
 Although the domestic feedstock situation is thin at times, U.S. biodiesel producers are reportedly not looking to South America to source needed raw materials. "We rarely import anything, in terms of agricultural commodities, from South America," said Darrel Good, University of Illinois extension marketing specialist. "We do import some palm oil at times, but that is mostly as a food ingredient."
 
 While soybean prices have been strong in early 2009, partly related to uncertainty over South American soybean production prospects, Bill George of the U.S. Department of Agriculture's Foreign Agriculture Service said limiting expansion of soya on illegal acres is insignificant compared to other factors. "Drought, lack of access to financing, and a decline in yields are the major factors for the Brazilian soybean industry," he told Biodiesel Magazine. "So I would see a decline of illegal soy acres as a drop in the bucket in regard to the overall scenario."

Greenpeace: biodiesel not seen as significant driver in Amazon deforestation

Web news posted May 5, 2009, at 11:35 a.m. CDT
 
 With commercial biodiesel production falling to 2006, the National Biodiesel Board called for the timely implementation of theRenewable Fuels Standard. Joe Jobe, NBB CEO , issued a statement after reviewing recent and projected U.S. biodiesel volumes for 2009. Jobe's statement was released the day before the Obama Administration released the U.S. Environmental Protection Agency's long-awaited proposed rules for implementation of the Renewable Fuels Standards contained in the Energy Independence and Security Act of 2007.
 
 "America is at risk of going backwards in energy security," Jobe said. "A review of the March biodiesel production numbers shows commercial biodiesel production fell to 30 million gallons. If this continues, it will reduce industry production to half of the 700 million gallons produced in 2008.
 
 "A primary reason for this dramatic downturn is the absence of the federal Renewable Fuels Standard. The RFS would initially require the use of 500 million gallons of bio-massed based diesel, which would substantially stabilize the young biodiesel industry as it struggles to compete on an uneven playing field.
 

 "We are at risk of losing the only domestically produced homegrown fuel for diesel engines. In fact, biodiesel is the only commercially available advanced biofuel, as defined by the federal government, which is currently derived from any fat or plant oil. It is the most diverse fuel on the planet. At last count, 176 plants in the U.S. enabled production of almost 2 billion gallons of homegrown, renewable fuel per year, but many plants sit idle, and at least 20 have gone out of business. This costs jobs and increases America's dependence on foreign oil at a time when President Obama is calling for economic investment in American renewable energy. Our industry stands ready and waiting to answer that call.
 
 "We again urge the Environmental Protection Agency to implement the RFS program as enacted by Congress that will help the industry fulfill the promise of energy security, a green economy and cleaner air."
 
 SOURCE: NBB

NBB: Biodiesel production falls to 2006 levels

Web news posted May 5, 2009, at 11:38 a.m. CST
 
 Secretary of Agriculture Tom Vilsack, Secretary of Energy Steven Chu and U.S. EPA Administrator Lisa Jackson held a joint press conference this morning to announce the development of an interagency working group that has been formed at the request of President Barack Obama in order to expedite advanced biofuels research and commercialization.
 
 The interagency working group, which includes members of the USDA, DOE and EPA, will evaluate roadblocks to the continued development of biofuels, and determine ways in which they can be reduced or eliminated. "What the President is suggesting is the need for integration within these departments, and then further coordination within the industry," Vilsack said. "I suspect that the interagency working group will learn a lot about these rules, regulation, concerns and barriers. We'll work with our colleagues in other agencies of government to try to reduce those." Members of the working group will work with members of the biofuels industry to restructure previous investments, expand the use of flex fuel vehicles, and coordinate compatible infrastructure with the goal of expanding the use and available of biofuels.
 
 The President has also requested that the USDA begin to implement Farm Bill programs to aid in the development of advanced biofuels within the next 30 days. This includes more than $1.1 billion in funding that is available to support the development of biorefineries, assist existing bio refiners to convert from fossil fuels to renewable power, and create opportunities for producers to receive assistance to produce new cellulosic crops. "He has also asked us to immediately take our credit programs and see if there are ways in which we can assist existing facilities who are currently stressed to restructure their investments and their financing in a way that gives them additional time to get through these difficult times," said Vilsack. 
 
 During the press conference, Jackson also announced that EPA's proposed rulemaking for the RFS2 will be released later today. According to Jackson, the law calls for indirect land use to be part of the analysis, so the proposed rule does include it. She also said that EPA is soliciting peer reviewed scientific feedback to ensure that the finalized rule reflects the best available science. Specific areas of review, she said, will include a peer review of the satellite data that is used to project future land use changes, land conversion greenhouse gas emissions factors, the estimates of greenhouse gas.
 
 SOURCE: ETHANOL PRODUCER MAGAZINE

USDA, DOE and EPA to expedite biofuels development; EPA to release proposed rulemaking for RFS2

Posted May 7, 2009
 
 It has been said that hedge funds positions in the commodities markets essentially disappeared after the September crash, but speculative activity is starting to pick up again, which could affect the price of soybeans. "They're not seeing good returns with stocks, they're not big on bonds…real estate's out…so the hedge guys are viewing energy with an inflation mentality," said Jerry Gidel of North American Risk Management Services in Chicago. 
 

 "Don't get me wrong, there's definitely been a decline in hedge fund participation compared to last year, but since things totally bottomed out we've seen traders starting to come back in," Gidel said. 
 
 Even with this renewed interest, however, those crop sectors affected by biofuels demand may take a hit since the U.S. EPA established proposed parameters for RFS2. At least some commodity market enthusiasm for beans has evaporated since soybean oil's role as a biofuel feedstock may be limited. 
 
 "In order to meet the GHG threshold of 50 percent for biomass-based diesel, a biodiesel production facility would need to use a minimum of 48 percent waste grease and a maximum of 52 percent soybean oil," the EPA report stated in projecting the impact of its proposed rule. "Thus, a pathway that would allow a biodiesel production facility to designate all of its biodiesel as biomass-based diesel would include a requirement that the producer demonstrate that every batch has been produced from no less than 48 percent waste grease and no more than 52 percent soybean oil." 
 The publication of the proposed rule has already an impact on trading. "There were a lot of sell signals on Monday and Tuesday for soybeans-I assume in relation to the EPA rule-so I don't think it's been a good week for prices," said Ernie Goss, professor of economics at Creighton University in Omaha, Neb. 
 
 Markets don't like uncertainty and what essentially amounts to putting a cap on soybean demand from the biodiesel industry will have unknown effects on future and spot prices. "Politics can be even more volatile than markets and who's to say that some of these rules won't change after the next election, so nobody really knows what's going to happen," Goss said. "When you live by the government's sword, you can also die by it."

Hedge funds, EPA proposed ruling could affect market prices

Algal oil extraction company OriginOil Inc. reported it has partnered with Belgium-based oil and fats technology developer Desmet Ballestra, in order to create a more cost-efficient algae oil extraction system
 
 OriginOil CEO and President Riggs Eckelberry announced the partnership during a speaking engagement at the National Algae Association's fifth quarterly meeting, at which he discussed potential gains from OriginOil's technology breakthrough. Eckelberry's presentation from the conference can be found on the OriginOil <a href="http://www.originoil.com">Web site. </a>

 
 Eckelberry said that like most current algae oil extraction systems on the market, the Desmet systems are quite expensive, but in early studies when implemented with OriginOil's system, the companies have estimated that energy efficiency gains may reach 90 percent in certain configurations.
 
 Recently, OriginOil announced it is making progress towards reducing the cost of harvesting algae and extracting the oil in a rapid, one-step process utilizing an ultrasound-based Quantum Fracturing process with pH modification and electromagnetism. <a href="http://www.biodieselmagazine.com/article.jsp?article_id=3417 ) ">(Read: OriginOil achieves rapid algae oil extraction.) </a>
 Desmet Ballestra North America President and CEO Timothy Kemper said the companies expect to announce further industry-impacting details in the months to come.

OriginOil partners with Desmet Ballestra

Posted May 5, 2009 
 
 U.S. Senator John Thune released the following statement after today's announcement by the Environmental Protection Agency (EPA) that it will institute new models to measure ethanol's lifecycle carbon emissions, including measurements of carbon resulting from "indirect land use" in other countries:
 
 "While I am pleased the EPA issued a range of emissions for biofuels, the EPA's new standards for measuring ethanol's lifecycle carbon output in other countries could be a serious setback for our nation's push for energy independence. The EPA is relying on unproven models that undermine our nation's most readily available alternative to foreign oil. Ethanol creates American jobs and reduces our dependence on imported energy while reducing carbon emissions relative to gasoline."
 
 The EPA issued the new rules for the Renewable Fuels Standard (RFS), which was enacted as part of the 2007 Energy Bill. The RFS requires new corn ethanol plants and new cellulosic ethanol plants to produce a fuel that emits fewer lifecycle greenhouse gasses relative to regular gasoline. However, Congress included a requirement to quantify emissions from indirect land use changes. Since enactment of the legislation, there is growing concern that EPA could unfairly interpret this provision and discredit American made ethanol with indirect land use changes that may or may not occur in other countries around the world.
 
 Senator Thune introduced a bill last week which directs the EPA to focus on direct lifecycle greenhouse gas emissions, which would level the playing field between ethanol and regular gasoline and bring more regulatory certainty to the ethanol industry. Additionally, the bill would require EPA to publish the model for measuring lifecycle greenhouse gas emissions before taking any regulatory action. The bill would also allow individual ethanol producers with a unique production method to apply to the EPA for a lower carbon score which would provide an incentive for ethanol companies to develop innovative ways to produce ethanol.
 

 "My bill would help to ensure that the EPA follows Congress's intent in crafting the RFS to promote those biofuels that reduce greenhouse gas emissions. Ethanol is one step to a greener, renewable based energy strategy, and the EPA's activism does a disservice to consumers and to the environment by undermining it."
 
 The bill would also establish a waiver process for the greenhouse gas reduction requirements in the new RFS. This provision would allow ethanol producers to petition the EPA to waive the greenhouse gas reduction requirements of the RFS if the requirements are preventing the industry from meeting the RFS requirements, contributing to our dependence on foreign oil, or creating an undue economic burden on the ethanol industry.
 
 Contact: Andi Fouberg (202) 228-5381

Changes would hurt South Dakota biofuels industry

Thune denounces EPA international indirect landuse ruling

Posted May 5, 2009
 
 Manning Feraci, Vice President of Federal Affairs for the National Biodiesel Board (NBB), today issued the following statement regarding the Environmental Protection Agency's (EPA) proposed rule for the Renewable Fuels Standard (RFS2):
 
 "Biodiesel is the most sustainable, environmentally friendly fuel available in the marketplace today, and there are compelling public policy benefits associated with the production and use of biodiesel. Successful implementation of a workable RFS2 program is of vital importance to the U.S. biodiesel industry and is consistent with a national energy strategy that values the displacement of petroleum diesel fuel with low carbon renewable fuels.
 
 "The RFS2 program as enacted by Congress for the first time requires the displacement of petroleum diesel fuel with low carbon renewable fuels. The program also requires renewable fuels to meet certain greenhouse gas (ghg) emission reduction targets. While the NBB has not yet had the opportunity to review the proposed rule in detail, it appears that the EPA, in determining the ghg profile for biodiesel, is penalizing the U.S. biodiesel industry for land use decisions made outside the U.S. that have little if anything to do with the domestic biodiesel production. A final rule that is based on questionable science and is structured in a manner that restricts the role of sustainable vegetable oils in the program will make it nearly impossible to meet the Advanced Biofuels goals established by statute.
 
 "EPA Administrator Jackson indicated in her comments accompanying release of the rule that her agency plans to work with industry and welcomes review of the methodology employed by EPA in crafting the proposed rule. Hopefully, common sense will prevail in this process and the EPA will issue a workable final rule that is based on sound science and allows the U.S. biodiesel industry to make a positive contribution to the RFS2 program."

Statement from Manning Feraci, NBB vice president of federal affairs regarding Renewable Fuels Standard (RFS2) notice of proposed rulemaking

NBB statement on RFS2 proposed rule

Web story posted May 6, 2009

 
 Today, biochemical production is a small but growing sector of a larger biofuel market. Industrial chemicals, while offering a smaller market than that for fuel, could also offer steadier prices to a target market. 
 
 This notion could hold substantial credence, particularly at a time when biodiesel producers are experiencing a decreased demand for their product. Couple this with a concurrent decrease in price for biodiesel compared to diesel prices and stagnant crude oil prices, biodiesel companies continue to operate well below installed capacity. 
 
 To that end, several biochemical companies are looking to make significant inroads in the staggering industry to help it find its financial footing.
 
 One of those companies is <a href="http://www.elevance.com/index.htm">Elevance Renewable Sciences Inc.</a> Officially launched in March 2008, the Bolingbrook, Ill.-based company was created through collaboration between <a href="http://www.materia-inc.com/">Materia Inc.</a> and <a href="http://www.cargillventures.com/">Cargill Ventures</a>, after receiving a $1.8 million matching grant from the U.S. DOE in 2004. Elevance is majority-owned by TPG Inc., a closely-held fund based in Fort Worth, Texas.
 

 Elevance uses soybean and palm oils to make specialty chemicals, including waxes, skin moisturizers, antimicrobials and lubricant additives, without the high heat and pressure used to make conventional petroleum-based chemicals. The company's technology also produces jet fuel and diesel.
 
 According to Chief Executive Officer K'Lynne Johnson, Elevance is in conversation with potential investors about raising an additional $40 to $50 million this year to acquire distressed biodiesel facilities and outfit them using the company's novel biochemical process technology into producing biochemicals and biodiesel. She said the plan is to convert vegetable oil into 80 MMgy to 100 MMgy of chemicals and fuels, which may be custom built or created by acquiring and retrofitting existing biodiesel plants. 
 
 Johnson said Elevance is currently in talks with a U.S.-based biodiesel company to acquire and begin installation of its technology sometime next year with full operation anticipated to begin in 2012. More details regarding this endeavor will be release later this year, she said. The company is also developing a similar business opportunity in Asia.
 
 "With minor additional modification, adding Elevance technology enables a biodiesel facility to optimize and widen its ability to trade higher value markets that biodiesel often provides," Johnson said. "We believe it's a very distinctive technology platform that truly enables biorefinery versatility and profitability."
 
 The key to Elevance's success is behind its novel process technology, which uses what it calls an olefin-metathesis catalyst technology that reacts with the double bonds of unsaturated sites in oils with natural oils, enabling the company to create a variety of different molecules-whether shortening, lengthening or branching those molecule fragments-out of those natural oils. The technology was developed by Materia founder Robert H. Grubbs, which won him the Nobel Prize in chemistry in 2005. 
 
 "The emergence of green chemicals is very new and just beginning its growth cycle," Johnson said, adding that the technology can operate at very low temperatures and low pressures, which lower its carbon footprint substantially. 
 
 "We expect it to become an additional robust and vibrant component of a renewable and alternative materials platform," she said. "However, the vibrancy and robustness of green chemicals is still dependent on those products delivering comparable performance at competitive pricing and that is the challenge that many of the emerging technologies are looking to scale and overcome right now."

Biochemical firms look to capitalize biodiesel industry

Web news posted May 6, 2009, at 9:40 a.m. CDT
 
 <a href="http://www.fluidimaging.com">Fluid Imaging Technologies Inc.</a> is introducing a particle testing service that will allow research scientists, process engineers and others in biofuels and microbial biomass development to utilize the company's technology for particle analysis. It is particularly effective in identifying algae species.

 
 The FlowCAM Particle Analysis Lab Testing Service includes a free technical consultation to assess the product or sample and verify any target particles or cells match the instrument's capabilities. This is followed by the development of test specifications, running the sample and reporting the results. 
 
 Available on CD or posted privately on the Web, the test results include every image taken along with their measurement data organized in a choice of histograms and scatterplots setup in a simple spreadsheet or detailed laboratory report format as needed. Method development, including establishing sample dilution and magnification requirements, and filter development such as devising statistical pattern recognition filters are also available along with a range of custom analysis services. Pricing starts at $125.
 
 Fluid Imaging introduced its technology originally developed for ocean research to the ethanol industry last fall for use in quickly monitoring yeast performance. Lew Brown, director of marketing for Maine-based Fluid Imaging, characterized his company's technology as an automated microscope, capable of reducing a procedure that often takes 15 minutes down to 35 seconds. Monitoring yeast in the ethanol process currently requires frequent sampling and manual examination under a microscope, he explained, in order to optimize fermentation conditions. While protocols for sampling and preparation of yeast samples remain the same, he said, Fluid Imaging Technologies' FlowCAM replaces the person who manually counts the yeast under a microscope with an automatic reading device that counts, images and analyzes the yeast cells to determine the number of dead, live and budding yeast cells. "The people we've presented the FlowCam to get excited," Brown said, "even the ones who do the yeast counts."

Fluid Imaging's FlowCam helps with quick identification of algae. SOURCE/Fluid Imaging

1649-1294331851.jpg

Fluid Imaging offers FlowCam testing services

Posted May 6, 2009
 
 Life cycle analysis of Greenhouse gas (GHG) for biodiesel is a new part of the Renewable Fuels Standard (RFS2) and, under the proposed parameters established by U.S. EPA, biodiesel made from waste vegetable oils or yellow grease is among the top performing environmental fuels. The National Biodiesel Board, the American Soybean Association and others, however, think the EPA proposed ruling for the implementation of RFS2 is potentially damaging to soy and virgin vegetable oil-based biodiesel. "I think it's wonderful that waste grease performs so well under this ruling," said Charles Neece of FUMPA BioFuels in Redwood Falls, Minn. "But it seems like they aren't giving us any other options." 
 
 The Energy Independence and Security Act of 2007 established new categories and eligibility requirements based on the Environmental Protection Agency's analysis of life-cycle GHGs from increased renewable fuel use. Biodiesel made from waste greases is one of the top renewable fuels in terms of reducing GHG emissions, said EPA in the proposed rule released Monday.
 
 As a multi-feedstock operation, Neece says that a part of his job now will be to manage the mix of feedstocks to give FUMPA the best percentages for reducing GHGs and meeting the EPA guidelines. "Some of us that don't use waste grease in our refineries are not going to be able to make it," he says. "There's just not going to be enough to go around-and if that is the only feedstock that will receive benefits, the industry is not going to be able to meet the volume requirements outlined by the federal government." 
 
 The established time horizon analyzes emissions and applies a discount rate to value near-term versus long-term emissions, but there are many factors that the biodiesel industry feels EPA is not considering. "They're taking a snapshot in time and considering the headway agricultural economy has made in the last 50 years," Neece told Biodiesel Magazine. "Crop plantings, including oilseeds are down nearly seven million acres in the United Sates and that has a lot to do with increased efficiency, so some of their statements and conclusions are little hard to accept." 
 

 Indirect Land Use Change refers to global cropland expansion resulting from the use of agriculturally based fuels. An environmental criticism of biodiesel-made from virgin crop oils-is that it compromises land historically not needed for farming, like the Amazon. NBB, however, along with other industry leaders disagrees with this assessment. "We've not seen deforestation in sensitive areas in the last three years," Neece said.
 
 While using non-food-based and recycled sources to make biodiesel will be important for the future of the industry, it is important to accommodate the "step-changes" that might be necessary along the way. "Using clean-coal technology to power our plants might be one of the transitional ways we improve our efficiency until biomass derived power is more pervasive," Neece said. "It seems like the new rule is promoting an 'all-or-nothing' atmosphere for the development of alternative energy."

Biodiesel from wastes commended by EPA, not so for soy-based fuel

Posted May 6, 2009
 
 Today, Manning Feraci, the Vice President of Federal Affairs for the National Biodiesel Board testified before the House Agriculture Committee's subcommittee on Conservation, Credit, Energy and Research. The hearing focused on examining the RFS2, with a particular focus on the impact Indirect Land Use Change (ILUC) assumptions will have on the program. Below is the oral remarks delivered to the subcommittee. To read the full testimony submitted, please see the attached document. 
 
 "Chairman Holden, Ranking Member Goodlatte and Members of the Subcommittee, I thank you for the opportunity to testify today. 
 "I am here today on behalf of the National Biodiesel Board, the national trade association for the U.S. biodiesel industry. Our membership produces a high-quality, renewable, low carbon diesel replacement fuel that is readily accepted in the marketplace. The U.S. biodiesel industry is the only game in town when it comes to commercial scale production of Biomass-based diesel as defined in RFS2. 
 
 "The production and use of biodiesel is consistent with an energy policy that values the displacement of petroleum diesel fuel with low carbon renewable fuel, and there are significant energy security, environmental and economic public policy benefits associated with biodiesel use. Yet the industry finds itself in the midst of an economic crisis that threatens its future viability. The NBB is not seeking the creation of new programs. A stable reliable policy framework based on existing policy will allow the industry to survive the current economic crisis. Implementation of a workable, realistic RFS2 is a key component of this framework. 
 
 "RFS2 for the first time requires a renewable component in U.S. diesel fuel, and provides a readily attainable schedule for the use of Biomass-based Diesel that increases from 500 million gallons in 2009 to 1 billion gallons in 2012. To qualify for the program, renewable fuel must reduce greenhouse gas emissions by 50 percent compared to the conventional diesel fuel. 
 
 "The science pertaining to direct emissions is well established. The USDA/DoE lifecycle study was initially published in 1998, and has been continually refined and updated since this time. According to this model, biodiesel reduces greenhouse gas emissions by 78 percent. 
 

 "By statute, EPA must consider significant indirect emissions when calculating a renewable fuel's emission profile. Unfortunately, it appears that the proposed rule EPA unveiled yesterday relies on uncertain, inexact assumptions pertaining to Indirect Land Use Change in calculating biodiesel's greenhouse gas emission profile. The result is that biodiesel produced from domestically produced vegetable oils are disqualified from the Biomass-based Diesel program. There are many factors unrelated to U.S. biodiesel production that impact land use decisions abroad. For example, in Brazil, forestry, cattle ranching and subsistence farming drive land use decisions, yet the EPA's proposed methodology appears to attribute this change to U.S. biodiesel production. This assumption defies common-sense. 
 
 "In fact, acreage in Brazil dedicated to soybean cultivation actually decreased from 2004 through 2008 - a time period during which U.S. biodiesel production increased from 25 million gallons to 690 million gallons. If U.S. biodiesel output drove Brazilian land use decisions to the degree that the EPA's proposed rule asserts, the opposite would be true. 
 
 "As a result of these dubious land use assumptions, the EPA's proposed rule restricts feedstock for low-carbon diesel replacement fuel to only animal fats and restaurant grease. Vegetable oils account for more than sixty percent of the feedstock that is available to meet the RFS2 Biomass-based Diesel targets, and the RFS2 volume goals simply cannot be met if vegetable oils are disqualified from the program. Even under the so-called pathway for biodiesel that is briefly outlined in the proposed rule, there will not be enough feedstock available to meet the RFS2 volume goals for Biomass-based diesel. This outcome is not consistent with either sound science or sound energy policy. 
 
 "Lastly, U.S. agriculture has historically realized increased productivity and yields. As technology improves, it is reasonable to assume that these gains in efficiencies will continue. As these efficiencies are realized both domestically and around the globe, the potential impact of land use change due to biofuels production will be further diminished, and this must be recognized in the EPA's greenhouse gas emission calculations. 
 "Chairman Holden, Ranking Member Goodlatte, and Members of the Subcommittee, I again thank you for having the opportunity to testify before you today, and I would be pleased to answer any questions you may have." 
 
 For more of Feraci's testimony, visit: <a href="http://nbb.grassroots.com/resources/feraci_house_ag_subcommittee_testimony_050609.pdf">http://nbb.grassroots.com/resources/feraci_house_ag_subcommittee_testimony_050609.pdf</a>.

NBB testifies before House ag subcommittee on RFS2, indirect land use proposal

Gilbert, AZ – <a href="http://www.diversified-energy.com">Diversified Energy Corp.</a>, an alternative and renewable energy technology development company, is seeking to extend its international patent protection for its Centia™ second-generation biorefinery technology. Based on technology exclusively licensed from North Carolina State University, the Centia™ process can use virtually any triglyceride feedstock (virgin oils, waste greases, animal fats, algal oils, among others) to produce fuels similar to petroleum-derived gasoline, diesel, and jet fuel. The fuels produced will closely match the chemical, kinetic, and combustion characteristics of petroleum, therefore allowing the fuels to be stored, distributed, and used in vehicle engines without infrastructure modifications. 
 
 In fact, expectations are that cetane number (for diesel), octane number (for gasoline), and cold flow characteristics will be superior to petroleum fuels. The process is not based on traditional hydrotreating approaches and therefore results in a very low carbon footprint and the ability to economically build and operate distributed fuels production plants placed in close proximity to the sources of feedstock and fuel usage.
 

 Since 2006 Diversified Energy and North Carolina State University have funded and conducted research and development to validate the technology and scale-up the architecture. The technology is also currently advancing under a government grant. Lab scale demonstrations of each of the process steps have been successfully completed to showcase the technical and economic viability of the approach. Diversified Energy has recently submitted multiple proposals to the federal government and private investors for funding to continue to develop and optimize the architecture.
 
 Diversified Energy recently received a positive patentability analysis from the European Patent Office, whose purpose is to assess the novelty, inventiveness, and industrial applicability of patents for the European market. As a result of this review and the excellent technical progress to date, Diversified Energy is planning to extend its international patent protection into DEC000680 approximately 55 countries around the world. These include some of the largest worldwide consumers of petroleum transportation fuels such as China, Japan, Germany, France, Canada, Russia, the UK, and India. Such actions will preserve the opportunity for Diversified Energy to build plants in these countries or sublicense the technology to international strategic partners.
 
 Jeff Hassannia, vice president of business development, commented, "Based on the technical results generated to date, coupled with positive indications of the strength of our IP claims, we believe this to be one of the most attractive biorefinery technologies emerging in the marketplace. This has resulted in our desire to seek wide international protection for Centia™."
 
 Headquartered in Gilbert, Ariz. (a suburb of Phoenix), Diversified Energy is a privately held alternative and renewable energy company focused on maturing innovative technologies, developing commercial energy projects, and providing engineering services support to project developers. Principal areas of expertise include biofuels, gasification and algal biomass production. Diversified Energy is an exclusive worldwide licensee of the Centia™ biorefinery technology.
 
 Source: Diversified Energy Corp.

Diversified Energy Corp. files patent protection for Centia technology

Posted May 7, 2009
 
 NxtGen Emission Controls Inc. and Süd-Chemie today announced a lower cost, high-efficiency diesel particulate filter (DPF) optimized for low-temperature regeneration that is attainable by using the proprietary technologies of both companies. The collaborative development effort generated up to 40 percent savings as a result of optimizing the filter with up to 60 percent less precious metal. The announcement was made by Jeremy Holt, president and chief executive officer of NxtGen and Martin Morrill, general manager of Süd-Chemie.
 
 With growing concern over health issues caused by diesel exhaust and regulations on diesel engines, there has been substantial demand for cost-effective, advanced diesel exhaust aftertreatment technology that can operate under a wide range of conditions. In urban environments, many applications require aftertreatment systems. The systems function under lightly loaded vehicle conditions at low-exhaust temperatures, which have lower regeneration temperatures than passive systems and hydrocarbon dosing systems. 
 
 According to Holt, preliminary results indicate the NxtGen syngas generator and proprietary control algorithm, coupled with Süd-Chemie's proprietary particulate filter technology, offers a potential solution that is functional even during low-temperature operation of the engine, including idle conditions. 

 
 "Süd-Chemie's technology resulted in a diesel particulate filter that utilizes up to 60 percent less precious metal than a standard filter and is more efficient during regeneration and across a broader range of engine exhaust conditions and temperatures. Depending on the current cost of precious metals, a savings of several hundred dollars per filter can be achieved," Morrill said. 
 
 Together with Süd-Chemie's proprietary wash coat and catalyst technology, the NxtGen syngas technology provides an opportunity to further develop and apply diesel engine emissions controls on urban vehicles, which operate at low-exhaust temperatures. 
 
 The Süd-Chemie Group is headquartered in Munich, Germany. The Süd-Chemie Needham, Mass. facility contains a fully outfitted engine catalyst facility, research and development, manufacturing, analysis labs, warehouse, as well as sales and administrative functions. From the Boston-area facility, the company provides a rapid response to technical and production needs. 
 
 Süd-Chemie Needham manufactures catalyzed DPF and diesel oxidation catalysts, as well as three-way catalysts and oxidation catalysts for natural gas engines and gas turbines. These catalysts are used for reducing the exhaust emissions from engine-powered generator sets, gas compressors, and construction, agricultural and mobile equipment.
 
 NxtGen's syngas technology addresses the emissions challenges of diesel engines through aftertreatment, but also has applications in combustion enhancement and for other fuels addressing emissions and CO2 regulations or targets. Syngas creation has been successfully scaled for use in light- to heavy-duty vehicles and upcoming product applications include an active syngas DPF system for urban trucks that solves particulate filter regeneration problems caused by low temperature, stop / start city driving and syngas lean NOx trap for NOx control to avoid the cost and complexity of urea selective catalytic reduction systems. 
 
 NxtGen Emission Controls Inc. (www.nxtgen.com) is privately held by international institutional investors. The company's headquarters and technology center is located in Burnaby, British Columbia and the manufacturing and application engineering center is located in Wixom, Mich.

Collaborative effort produces DPF optimized for low-temp regeneration

Posted May 8, 2009
 
 Responding to a news article reporting World Energy Alternatives as having been tossed into involuntary Chapter 7 bankruptcy protection, World Energy released a statement on May 8 characterizing the report as "erroneous." 
 
 "World Energy Alternatives is not in bankruptcy and has not wound down its business," World Energy stated. "We continue to conduct business as usual." 
 
 There is, however, a legal dispute between World Energy and Avenir Diversified Income Trust's subsidiary, Elbow River Marketing, involving "substantial claims each party is making against the other." 
 

 In early May, Elbow River Marketing "unilaterally and without the support of any other creditors filed an unsubstantiated petition to place World Energy in Chapter 7 bankruptcy," World Energy stated. As of May 8, no court hearing or ruling had occurred. World Energy is expecting the case to be dismissed. 
 
 Avenir announced in April that Elbow River Marketing's biodiesel business lost $15.9 million in fourth quarter 2008, and expected to lose an extra $10.5 million in biodiesel charges and hedging losses in the first quarter 2009, according to World Energy. 
 
 "Avenir's foray into and hasty exit from the biodiesel market has been marked by mismanagement, poor fiscal oversight, and a lack of appropriate internal controls," World Energy stated, adding that it expects to hold Elbow River Marketing accountable for all damages; including those related to the "improperly filed petition" in bankruptcy court in May. 
 
 Boston Business Journal ran a story on May 7, which stated World Energy had been hauled into bankruptcy court by Elbow River Marketing.

World Energy: Despite report, not going bankrupt

Renewable Energy Group Inc. signed a marketing agreement to sell biodiesel from Iowa's newest producing plant, Maple River Energy LLC, a 5MMgy multi-feedstock facility in Galva, Iowa. Despite being multi-feedstock capable, the Maple River Energy complex is equipped with a crusher and is expected to process 3 million bushels of Iowa soybeans into 5 million gallons of soy oil and 75,000 tons of soybean meal per year. 
 
 According to the marketing agreement, Maple River Energy biodiesel is expected to meet REG-9000 quality specifications, which exceed ASTM D 6751. REG stated that it will market B100 or B99 from the facility under its REG-9000 product line, and the company will include the Galva site as a terminal on its pricing list. 
 
 REG's director of marketing, Jon Scharingson, said, "Our customers in South Dakota, Iowa, Minnesota, and Nebraska will be able to pick up product directly from [Maple River Energy's] truck loading facility."

May 2009

Business Briefs

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NBB Members: Take Heart

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Modular Production: Co-locating Plant and Feedstock

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May 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

The Fight Goes On

NBB Members: Take Heart

Featured

Modular Production: Co-locating Plant and Feedstock

Minimizing Oxygen's Destructive Tendencies

Mission: Jatropha

May 2009