People often ask what is meant by clean diesel-is it a trademark for a particular technology, or does it mean biodiesel-powered vehicles? I don't mind answering that question from those who seem to only associate diesel fuel and compression-ignition power with heavy equipment, who are not aware of the significant progress made in all diesel market segments: light-, medium- and heavy-duty. The only dumb question is the one not asked, right? 
 
 Clean diesel technology is an array of advancements made over the past two decades that has brought diesels-once dirty, noisy workhorses-to the forefront of the clean car revolution. Many people chastise government for heavy-handed regulation, but were it not for international governmental efforts in Europe, the United States and elsewhere, the phenomenal advancements in diesel powertrains may not have even come into existence. Clean diesel technology refers to a progression of optimizations to diesel fuel injection systems, combustion cycles, sophisticated onboard diagnostics and a number of advanced emissions controls. It means more efficient, less polluting and quieter applications in trucks and passenger vehicles, and increased performance. Clean diesels do not have to be run on biodiesel blends to be considered "clean," although doing so will certainly add to its overall greenness-not to mention it would help support the struggling biodiesel industry. 
 
 On April 1, the U.S. EPA and the transportation department jointly announced the final rule to the corporate average fuel economy (CAFE) program spearheaded by President Barrack Obama, to take effect between 2012 and 2016. The changes will increase the average fuel economy of new vehicles to around 35 miles per gallon, and is hailed as being the first U.S. regulation of greenhouse gases. Clean diesels are ready to meet tomorrow's challenge today, and many believe this rule will provide the catalyst for the dieselization of America, so to speak. Read more about this on page 9 of the Industry News section. On that note, Mazda announced it is bringing a mid-sized diesel car to the U.S. market in 2012, about which you can read more in the BIObytes section of this issue. 
 
 Since this issue's focus is next-generation biodiesel feedstock developments-not clean diesels-we also bring to you a suite of stories on this very important topic. Over the past couple of years, algae and jatropha have been seen as highly promising feedstocks. In the feature article on page 20, "Engineering the Perfect Algae Strain," we take an in-depth dive into the genetic science underway at Iowa State University. Professor Martin Spalding's team is investigating the stacking of traits in one particular strain of algae, helping commoditize the microorganism to produce an unlimited amount of biodiesel feedstock. On page 10 of the Industry News section, we cover some recent investments in jatropha developments in the Eastern and Western hemispheres. And in this month's Talking Point column on page 38, Sreenivas Ghatty, CEO of Tree Oils India Ltd., gets the last word on jatropha in "Jatropha: A Failed Success?"

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Clean Diesels and Biodiesel Feedstock Developments

Posted May 14, 2010
 
 The National Biodiesel Board hosted a Webinar May 13 featuring four biodiesel producers and NBB CEO Joe Jobe discussing the severe damage to American biodiesel companies, and local economies, resulting directly from the lapse of the federal biodiesel tax credit more than four months ago. 
 
 The message was sad, listening to hard-working Americans being forced by Congress' inaction to lay off employees and shutter domestic biofuel refineries while one of the most environmentally and economically disastrous oil spills in American history unfolds in the Gulf of Mexico; as Americans fight and die overseas to protect us from extremists in those countries on which we are most dependent for crude oil. 
 
 Bernie Crowley, a partner with Delta American Fuel in West Helena, Ark.-one of the most impoverished areas in the nation-said his company could directly support between 75 and 80 full-time jobs between the biodiesel plant and the terminal Delta American Fuel owns. He said there is no way they could bring their plant online now, and the effects from the tax credit lapse are going to "pull our other business under the water," Crowley emphasized, due to "serious cash flow issues." 
 
 But the direct effects are only the beginning. Bobby Heiser, a partner in Nittany Biodiesel LLC headquartered in State Park, Pa., which owns the 15-MMgy Bulldog Biodiesel in Georgia, says the indirect effects on the community are also devastating. When running at capacity, Bulldog Biodiesel has 45 trucks a week deliver feedstock oils, 12 more a week for other materials, and 45 trucks a week carrying product out of the plant for distribution. Not to mention the oil collection businesses hurt by an idled biodiesel industry, in addition to third-party labs used for testing. 
 
 Heiser said Nittany Biodiesel was started by a small group of American investors and $30 million. "Our intention was to build four or five plants, but that's fading," he said, adding that since January he has held on to what may be the only bipartisan issue in American politics-energy independence. "But three weeks ago we were forced to let go 20 people," Heiser said. "We reached the limits of our funding. Our lenders are growing ever doubtful and they may want to call in our debts. You see where this is going." 
 
 Jeff Stroburg, CEO of Renewable Energy Group Inc., the largest biodiesel company in the U.S. with 360 MMgy capacity produced or marketed by REG, said lender uncertainty right now is huge. "The debt market is extremely skittish," he said. "To attract debt capital, we need a three- to five-year credit in place to attract debt back into this market." Most troubling is what's happening to small investors, because when those investors get wiped out, they are not likely to come back. And if the credit were back in place today, Stroburg said REG would be looking to fill 129 jobs. 
 

 "People are looking for work and we sure wish we could employ them," said Scott Johnson, president and CEO of Gen-X Energy Group headquartered in Pasco, Wash., with a biodiesel plant in Burbank, Wash. He said Gen-X Energy has been planning a new 6 MMgy plant in Richland, Wash., but plans are on hold. If the tax credit hadn't expired, Johnson said, "Our new facility would already be online." 
 
 Panelists discussed how the biodiesel industry actually generates more revenue than the cost of the tax credit, creating $445 million in taxes paid to the federal government; adding $9 to a head of cattle; 25 cents to a bushel of soybeans; and much more. 
 
 Jobe discussed the ongoing lawsuit the petroleum associations filed against U.S. EPA regarding the renewable fuel standard, RFS2. "The lawsuit is meritless," Jobe said, adding that Big Oil is simply trying to reduce their obligations under federal law and set up scenarios for waivers. The petroleum industry has screamed for all hands on deck to help fix the oil spill in the Gulf, Jobe said, yet they are wasting resources on this lawsuit that could be spent saving the already sensitive ecosystems in the Gulf. "If the credit were turned back on today, tomorrow we could begin contributing energy to the economy, 10 times the amount of toxic crude spilling into the Gulf." 
 
 "We're close to the point where it's time to shut the whole thing down," said Crowley of his biodiesel business, Delta American Fuel. "That's on the horizon" without the credit in place, he said. 
 
 The House Ways and Means Committee is talking about getting the already-passed but divergent Senate and House versions of the tax credit reconciled, Jobe said, and they are trying to find revenue to fund it under the PAYGO (pay-as-you-go) rules . 
 
 Crowley promised biodiesel production and his business could work, however, so long as the current credit is reissued, the RFS2 is implemented as intended, and a longer-term credit is passed before the end of the year.

An American industry struggles for existence

German oilseed promotion organization UFOP has analyzed official statistics published by BAFA, the German federal office of economics and export control, on the nation's domestic consumption of biofuels from 2007 through 2009. UFOP's analysis confirms a dramatic decline in German B100 sales. 
 

 Domestic German consumption of B100 in 2009 was down nearly 78 percent from 2008, dropping from 1.1 million metric tons (approximately 330 million gallons) of B100 in 2008 to 240,600 tons in 2009. 
 
 Even though pure B100 consumption in Germany is down significantly, 2009 saw a big rise in use of biodiesel as a blend component due to the move from B5 to B7. In 2008, German consumption of biodiesel for blending reached just more than 1.6 million tons, but in 2009 this had risen to nearly 2.3 million tons, constituting a 41 percent increase. UFOP noted, however, that this increase fails to compensate for the drop in pure B100 consumption.

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German B100 sales in 2009 down sharply

Texas, a leading biodiesel producing state, is requesting proposals to conduct a comprehensive bioenergy study. The state ag department, in conjunction with the comptroller's state energy conservation office, intends to identify Texas' bioenergy needs and opportunities. The study will examine feedstocks, logistical challenges and bioenergy integration practices necessary to meet the state's energy demands.

Texas gets serious about bioenergy

Market intelligence services company GlobalData recently published a report titled, "Global Biodiesel Market Analysis and Forecasts to 2020." Worldwide biodiesel production increased from about 253.34 million gallons in 2001 to 4.16 billion gallons in 2009, at a compound annual growth rate (CAGR) of 41.9 percent. GlobalData's report states that the biodiesel market is expected to produce 11.96 billion gallons of biodiesel in 2020, representing a CAGR of 10.1 percent from 2009 to 2020. The new report states that Europe leads the biodiesel market with a production share of 49.8 percent, followed by the Americas with a 32.8 percent share, and Asia Pacific with a share of 4.4 percent in 2009. Europe's share in biodiesel production has been declining since 2001 while the share of Americas and Asia Pacific increased. The top five biodiesel producing countries in the world are Germany, the U.S., France, Argentina and Brazil. Together these five nations produce 68.4 percent of the world's total biodiesel. Australia is the largest producer of biodiesel in Asia Pacific, followed by China and India. The U.S. is the second largest producer of biodiesel, manufacturing 17.7 percent of the world's production in 2009, the report states. 
 
 The German biodiesel market is facing a bleak outlook due to the imposition of taxes that have made biofuels too expensive for its consumers. Though the country is the largest producer of biodiesel in Europe, the future for the market looks weak, GlobalData's report states, mainly because of taxes the German government has imposed on green fuels. Another factor that has contributed to the negative outlook of the German biodiesel market is the generous export subsidies received by the U.S. producers. The EU has now imposed an import tariff on US biodiesel imports to protect the European market. The country has reduced the blending target to 6.3 percent in 2010 from 6.8 percent as set out previously in the plan to cut carbon dioxide emissions, although the specific blending mandates for biodiesel will remain unchanged until 2014. 
 
 China has become the world's largest automotive market, surpassing the U.S. in terms of units sold. This, along with China's concern for energy security, has led to increased government interest in developing an alternative fuel vehicle market. In 2009, the government of China provided a 10 billion yuan ($1.5 billion) subsidy for three years to automakers who upgrade their technology and develop alternative fuel vehicles, states GlobalData's report. This stimulus package will result in rising activity in the Chinese biofuels sector. 
 
 "Global Biodiesel Market Analysis and Forecasts to 2020" analyzes the global biodiesel market and provides forecasts up to 2020. The research analyzes key trends, major issues and growth opportunities in the global biodiesel market. Market share by production capacity, elaborate profiling of major industry participants and information on major present and upcoming production facilities provide insight into the competitive scenario of the global biodiesel industry. This, coupled with information on

Germany, the U.S., France, Brazil and Argentina produced more than 68 percent of the world's biodiesel in 2009.

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Report: 12 billion gallons of biodiesel by 2020

The U.S. Department of Transportation and the U.S. EPA established new federal rules April 1, setting the nation's first greenhouse gas (GHG) emissions standards in place and significantly increasing the fuel economy of all new U.S. passenger cars and light trucks. 
 
 Clean diesels are ready today to meet tomorrow's challenge. Clean diesel technology was given special mention as one advanced pathway to increasing automakers' fleet fuel economy standards. "EPA and [the National Highway Traffic Safety Administration] expect that some manufacturers may choose to pursue more advanced fuel-saving technologies like hybrid vehicles, clean diesel engines, plug-in hybrid electric vehicles and electric vehicles," the DOT stated. 
 

 Allen Schaeffer, executive director of the Diesel Technology Forum, said the announcement requiring more efficient cars will mean more clean diesel choices for American consumers in the coming years. 
 
 On March 31, Mazda announced it would bring a clean diesel car to the U.S. market in 2012, which Schaeffer called the "first evidence of what we believe will be many more announcements that underscore the role of fuel-efficient clean diesel technology in manufacturers' plans to meet these new requirements." 
 
 Starting with 2012 models, the rules together require automakers to improve fleet-wide fuel economy and reduce fleet-wide greenhouse gas emissions by about 5 percent every year. The NHTSA has established fuel economy standards that strengthen each year reaching an estimated 34.1 miles per gallon (mpg) for the combined industry-wide fleet for model year 2016. 
 
 Because credits for air-conditioning improvements can be used to meet the EPA standards, but not the NHTSA standards, the EPA standards require that by the 2016 model-year, manufacturers must achieve a combined average vehicle emission level of 250 grams of carbon dioxide per mile. The EPA standard would be equivalent to 35.5 mpg if all reductions came from fuel economy improvements. 
 
 Today, clean diesels already deliver a 10-mpg fuel savings or more compared to gasoline-powered models. The diesel Volkswagen Jetta TDI is EPA-rated at 42 mpg highway while the gasoline version is rated at 29 mpg. The diesel Audi A3 TDI is EPA-rated at 42 mpg while the gasoline model is at rated at 28 mpg. The diesel Volkswagen Jetta SportsWagen is rated 12 mpg better than its gasoline counterpart. The diesel BMW 335d is rated at 36 mpg and the gasoline version is rated at 26 mpg. In larger SUV segments, the Mercedes Benz GL350 Blue TEC is rated 6 mpg better than the gasoline version. 
 
 During an April 1 press conference, EPA administrator Lisa Jackson hailed the new rules as giving the "certainty of a single national standard instead of a patchwork" of various rules. 
 
 The overall cost to the auto industry to implement these efficiencies is estimated at $52 billion, or approximately $950 per vehicle. These numbers are lower than earlier figures because, as Jackson said, the rule-making process has led to acquisition of better data. The added cost per vehicle is expected to be recouped by the owner within three years after the purchase, due to the savings at the pump. While the aggregate cost seems high, the net benefit of the new rules is said to be $190 billion. 
 
 Ray LaHood, transportation secretary, said his team has been working night and day to finalize these new rules, and once they have gotten a chance to sleep and the public has absorbed the rules, work on initiatives for years beyond 2016 will begin.

Diesels: meeting tomorrow's fuel economy standards today

Several developments unfolded recently in global jatropha commercialization efforts. In the Central American country of Guatemala, the Roundtable on Sustainable Biofuels is working with SG Biofuels to develop sustainability standards for jatropha farming. "There aren't any standards right now," said Kirk Haney, CEO and president of SG Biofuels. 
 
 Last year SG Biofuels established a community farming initiative in Guatemala with 385 farmers working 1,400 acres of marginalized land. Haney told Biodiesel Magazine that while many jatropha business models have failed in recent years, jatropha hasn't. "The plant didn't fail-the businesses did," he said. "Some of these companies were handing out seeds with a $5 bill and saying, 'Go plant this.'" Haney said his company approached the community of interest in a different way. 

 
 "We wanted to find a community to partner with, not take over," he said. "We worked with community leaders. We gave them seedlings. We donated fertilizer. We provide tech support and advice. And we contracted with the farmers for all of their production." Haney emphasized that the importance of the contract cannot be understated. "It helps create rural entrepreneurship," he said. 
 
 Haney pointed out that in places outside the U.S., some land is community-owned, not privately held-a foreign concept to most Americans. Some of this land, especially in the subtropics, was once rainforest, cut down long ago for cattle pastures, but after years of intense grazing the land has become stressed and marginalized. "It is abandoned pastureland so when a company like ours can come in with a new technology like this-I don't want to say it's an easy sell, but they see it as a very good economic opportunity," Haney said. Contracts signed by the community farmers lock in their profit and take away the execution risk. "There is a floor in the offtake agreement, it's indexed to a couple of different factors," Haney said. 
 
 The RSB observed how SG Biofuels approached this jatropha farming initiative and liked what it saw, Haney said. "The pilot project with SG Biofuels provides us with the opportunity to test and improve our sustainability standards against a unique model of jatropha production," said Matthew Rudolf, RSB's regional manager of the Americas. First harvest is expected this summer. 
 
 Across the planet, the Indian government has reaffirmed its approval allowing Australia-based Mission NewEnergy Ltd. to invest additional capital into its wholly-owned subsidiary, Mission Biofuels India Pvt. Ltd., for the purpose of carrying out with its originally approved activity of contract-farming jatropha and use of its oil for domestic and export markets. "Of key interest is the official confirmation of Mission's ability to export jatropha oil," said James Garton, Mission NewEnergy's head of corporate finance, mergers and acquisitions. 
 
 In December, Mission NewEnergy signed an offtake agreement with Valero Energy Corp. for its jatropha-based biodiesel, a contract worth $3.5 billion. "The Valero contract is already in effect and we were expecting the first shipment of product in April," Garton told Biodiesel Magazine in late March. Just like palm, canola and many others, jatropha biodiesel has yet to be approved by the U.S. EPA to count toward biomass-based diesel obligations under RFS2. "Our understanding is that the EPA, while it has not yet made its ruling, is not concerned about jatropha achieving the necessary hurdles to be an approved pathway to [reducing] greenhouse gas emissions," Garton said. "Rather it is a question of whether there will be sufficient quantities of jatropha in the U.S. to justify inclusion. Given the largest ever biodiesel offtake agreement is between Mission NewEnergy and Valero for jatropha biodiesel-and Valero is the largest obligated party under RFS2-we can clearly demonstrate that jatropha will be relevant in the U.S. Even more so, given the environmental and political attractiveness of jatropha, we are of the view that it will be approved by the EPA." 
 
 Mission NewEnergy currently uses palm oil as feedstock for its 30 MMgy biodiesel refinery at Kuantan, Malaysia, and as its jatropha operations mature, the company plans to phase out its use of palm oil. The company said it anticipates that by 2014 it will be able to supply its operating 30 MMgy biodiesel plant, along with its 75 MMgy refinery in commissioning, entirely with jatropha oil. "[We] have 350,000 acres under contract and, based on the first gestation period now being completed, we are delighted to have just more than 170,000 proven, productive acres," Garton said. 
 
 When Garton was asked to compare Mission NewEnergy to its competition, he said overall the company is well-positioned strategically as a fully integrated, established player that has already reached "critical jatropha plantation mass." 
 
 "Mission NewEnergy started its business years ago and has the benefits of early failures to practically guide it going forward," Garton said. "Mission NewEnergy is not a whiteboard and Excel model exercise-we have empirical data and real experience." Some of the advantages Garton said Mission NewEnergy holds over its competition include the company's deep penetration in rural markets where the seeds are; active plantation management by way of proprietary software, business operating procedures and global positioning system mapping; a novel rural bank financing scheme; and farmer trust as a result of the company's continued human presence.

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Jatropha investments strengthen in Central America, India

Engineers with Tenneco Automotive have developed a new hydrocarbon lean NOx catalyst (HC-LNC) system for diesel NOx control using E85 as a reductant. E85 is a renewable fuel made of 85 percent ethanol and 15 percent gasoline. Unlike urea selective catalytic reduction (SCR), which employs diesel exhaust fluid (DEF) comprised of ammonia and water, Tenneco's HC-LNC system will use both diesel fuel and E85 dosing in the exhaust stream to help catalyze NOx emissions into tailpipe-out nitrogen and water. 
 

 A Tenneco engineer told Biodiesel Magazine that diesel fuel as a reductant can attain moderate NOx reductions but E85, however, can achieve significantly better conversion numbers. Exactly why E85 works so well for NOx abatement is not fully understood yet, but its oxygen content and volatility are thought to be major factors. 
 
 Urea SCR systems typically use copper- or iron-based catalysts, but Tenneco's HC-LNC system employs a unique silver-based catalyst. General Electric is the producer of the new silver catalyst, which recently completed a technology transfer with Umicore for Umicore's substrate design and washcoat application of GE's catalyst formulation. Tenneco has secured exclusive rights to GE's specific catalyst formulation in systems development for a majority of the on- and off-road emissions control markets, except for large locomotive applications. 
 
 The intention is to use both diesel fuel and E85 in the same exhaust system and catalyst. Typically, diesel fuel would be used for NOx control under light loads while E85 would come into play during heavier loads and stop-and-go cycles. 
 
 Another advantage E85 has over urea is its ability to withstand lower temperatures. Alcohol has a much lower freeze point than DEF, which can gel at minus 11 degrees Celsius. An E85 storage tank on the vehicle would not require all of the heaters and heated lines that DEF tanks need, so the overall complexity of the system could be simplified. 
 
 Urea can also leave crystal deposits in the exhaust system-on mixers and the inlet face of the catalyst-a problem E85 will not have. 
 
 This type of system, however, would rely on a well-developed E85 infrastructure, something many flex-fuel vehicle owners say is grossly lacking. Biodiesel Magazine's source, however, said he believes the U.S.' E85 infrastructure, as deficient as it may be today, is thought to be better developed at this point than a urea distribution infrastructure. 
 
 This could also be the catalyst needed by the ethanol industry to crack the "chicken and egg" conundrum often associated with E85 and compatible vehicle availability. And the synergy of simultaneously developing an E85 and clean diesel fluid infrastructure built around one renewable fuel is very appealing. 
 
 Tenneco anticipates its new system will be ready for commercial on-road application as early as 2012, with its eye on off-road applications as early as 2014.
 
 While it may be a tough sell to convince engine makers already committed to commercial production of urea SCR systems in their on-road applications to switch to an E85-compatible HC-LNC approach, it may provide an interesting alternative for companies such as Navistar Inc., which has been outspoken over its refusal to incorporate urea SCR as a means to NOx reduction. The company, instead, has developed and relies on what it calls Advanced Exhaust Gas Recirculation (Advanced EGR), but some experts are skeptical whether Navistar can meet its NOx reduction requirements through Advanced EGR alone. 

 
 Other potential outlets for this new HC-LNC system include the myriad of off-road applications, which EPA will also require meeting very strict NOx reductions in coming years.

Similar to how new diesels with urea SCR technology have a tank for diesel fuel and another tank for liquid urea (shown above), Tenneco's new E85-capable hydrocarbon lean NOx catalyst system can draw from either the diesel fuel or E85 tank, depending

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New aftertreatment system provides alternative to urea SCR

Biodiesel is just one of those things. The stories that touch everyone, the jokes that make anyone smile, the people you'd always welcome as company-that's biodiesel. 
 
 Regardless of the location or audience, accurate biodiesel news and information is almost always warmly received. People like hearing about good stuff, and biodiesel is good stuff.
 
 Several years back our strategy was to talk to anyone who would listen about biodiesel. I drove "Old Brownie," a 1992 Ford F250 that ran on biodiesel, 330,000 miles to help promote what was then this crazy alternative fuel no one had even heard about. When I first started promoting biodiesel in 1991, it cost more than $6 a gallon when diesel fuel was in the 80 cents per gallon price range. But even then people could see that biodiesel's energy security, economic and environmental benefits would be needed by this country sometime in the future. We promoted biodiesel at county fairs, tractor pulls, and farm shows. I thought I would die in that truck, but I'm still tickin'-and actually, so is Old Brownie, if you can believe it. The Missouri Soybean Association still runs that old truck and tells the story of biodiesel's meager beginnings. 
 
 As the nation recognized the benefits of biodiesel, we began to get bigger. The board was organized, and we hit the trade show circuit full speed. Staff and supporters must have racked up a million frequent flyer miles to make sure the biodiesel name and our expo booth was front and center at just about every trade show on the books. We went to truck shows, fleet shows, natural products shows, ag shows, oil shows, government leader shows, mining shows, port shows, engine shows-even a fair and expo show. If biodiesel had a place, we had booth. 
 
 More importantly, during that same time, biodiesel itself was racking up the miles, carrying major transport companies and entrepreneurial city fleets the distance, and doing it as well as or better than petroleum.
 
 Now most people we talk to have at least heard about biodiesel. The latest poll shows 86 percent of voters are familiar with biodiesel, up from just 27 percent in 2004. 
 
 So today we are more strategic in our outreach. Biodiesel has found its footing as domestic use steadily grows. Fleet managers have recognized that biodiesel really is the simplest way to transition an existing diesel fleet to alternative fuels. Fleets and drivers have heard from others who have had success with the fuel, and they want to know more.
 
 Most of the trade shows and outreach events we now attend or sponsor directly target those who not only want information about biodiesel, but who might be ready to make a decision to use it or are key stakeholders in our industry. We have also maintained a presence at feedstock, equipment, and technical events, often supporting sessions or speakers who talk about biodiesel's impact on various industry sectors. For example, this spring we brought the biodiesel message to the Green Truck Summit with the National Truck Equipment Association, the National Association of Fleet Administrators, Commodity Classic, Society of Automotive Engineers World Congress, Mid American Trucking Show, and the Alternate Fleet Vehicle Institute, among others. These events open the door to new contacts and biodiesel opportunities, helping to ensure that biodiesel is a consideration for decision makers and providing an opportunity for industry leaders to ask biodiesel questions first hand. 
 

 In addition to our direct outreach, state and non-profit organizations have joined the biodiesel rank and file and also represent the industry at trade shows and events. Over the years we have forged new relationships with groups including American Lung Association chapters, and the U.S. DOE's Clean Cities Coordinator program. Both organizations support biodiesel and other alternatives to petroleum as part of a strategy for cleaner air. Their work extends our outreach potential exponentially and supports our ongoing objectives. 
 
 This year, in conjunction with the Renewable Fuels Association, we received a DOE grant that supports even more coordination. The grant has made it possible to reach Clean Cities Coordinators all over the country and offer training to ensure they know the latest information about biodiesel. 
 
 In the past decade, our outreach strategy and tactics have adjusted as the biodiesel landscape and member funding priorities have shifted and changed. Through that time we've had the good fortune of having a good story. Biodiesel's strengths continue to grow, research continues to refine what we know about the fuel, and support is stronger than ever. I can only imagine where we'll be 10 or 20 years from now. Who knows? Maybe we'll have a diesel-fuel cell hybrid flying car version of "Old Brownie." 
 
 Tom Verry, director of outreach and development, NBB

NBB's outreach efforts include maintaining a presence at feedstock, equipment, and technical events, such as the 2010 Commodity Classic shown above. 

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Out and About for Biodiesel

Posted May 5, 2010
 
 Agriculture Secretary Tom Vilsack announced on May 4 that the USDA is planning to accept applications for the Biorefinery Assistance Program, Repowering Assistance Program and the Bioenergy Program for Advanced Biofuels. Details on how to apply will be released later this week in the Federal Register.
 
 The Bioenergy Program for Advanced Biofuels works to support and ensure expanding production of advanced biofuels by providing payments to eligible advanced biofuels producers.
 
 Advanced biofuels are derived from renewable biomass, other than corn kernel starch. These include cellulose, sugar and starch, crop residue, vegetative waste material, animal waste, food and yard waste, vegetable oil, animal fat, and biogas (including landfill gas and sewage waste treatment gas). 
 
 The advanced biofuels program is an important part of achieving the Obama administration's goal to increase biofuels production and use. 
 
 USDA's Biorefinery Assistance Program provides guaranteed loans to develop and construct commercial-scale biorefineries or to retrofit existing facilities using eligible technology for the development of advanced biofuels. The amount of a loan guaranteed for a project under this program cannot exceed 80 percent of total eligible project costs. 

 
 The Repowering Assistance Program is designed to encourage the use of renewable biomass as a replacement fuel source for fossil fuels used to provide process heat or power in the operation of eligible biorefineries (those biorefineries in existence on June 18, 2008-the date the 2008 Farm Bill was enacted). 
 
 Vilsack today also announced that USDA is seeking applications to increase the production and use of renewable energy sources. Funding is available from four USDA Rural Development renewable energy programs authorized by the Farm Bill. 
 "This funding will help spur investments in technologies that will reduce reliance on fossil fuels, conserve natural resources and help build a sustained renewable energy industry in rural America," Vilsack said. "Support provided by USDA through these programs will not only benefit the environment, it will create green jobs and help America become more energy self-sufficient." 
 
 USDA is accepting applications for grants and loan guarantees in the Rural Energy for America Program (REAP) until June 30, 2010. More information on how to apply for funding is available in the April 26, 2010 Federal Register. The Rural Energy for America Program provides funds to agricultural producers and rural small businesses to purchase and install renewable energy systems and make energy efficiency improvements. 
 
 Eligible projects include installing renewable energy systems such as wind turbines, solar, geothermal, biomass, anaerobic digesters, hydroelectric, and ocean or hydrogen systems. Funding may also be used to purchase energy-efficient equipment, add insulation, and improve heating and cooling systems. In fiscal year 2009, this program helped fund 1,485 REAP projects in 50 states, the commonwealth of Puerto Rico and the Western Pacific Islands. 
 
 "The Rural Energy for America Program enables owners of small rural businesses, farms and ranches to reduce energy consumption, part of President Obama's effort to reduce our reliance on foreign oil and the destabilizing effects of a changing climate," Vilsack said. "Through this program, farmers, agricultural producers and small business owners will be able to upgrade or replace outdated, inefficient systems in their operations. That not only saves money, it supports job creation." 
 
 One rural company that used REAP funds to reduce energy costs is Energex American, Inc., a Mifflintown, Penn., based pellet manufacturing firm. In 2009, the company received a $476,685 grant to help fund the installation of an industrial dryer powered by woody biomass. The company reduced its annual demand for propane by 150,000 gallons and realized energy savings of nearly 98 percent. 
 
 SOURCE: USDA

Details to come on advanced biofuel funds

Both the American Petroleum Institute and the National Petrochemical and Refiners Association filed lawsuits with the U.S. Court of Appeals for the District of Columbia challenging the U.S. EPA's rule on the recently finalized revised renewable fuel standard (RFS2). The final RFS2 rule combines the 2009 and 2010 biomass-based diesel volumes. 
 
 "While the U.S. oil and natural gas industry recognizes and appreciates the role of ethanol and other biofuels in the fuel marketplace, we are deeply concerned that the EPA's final RFS2 rule could result in higher consumer costs," API stated. "By setting retroactive requirements, refiners, and ultimately consumers, will be penalized for EPA's inability to get this rule out on time as directed by Congress. We believe this rule is unlawful and unfair…EPA made the rule effective on July 1, 2010, while setting unreasonable mandates on refiners that reach back to 2009 for biomass-based diesel, and to Jan. 1, 2010 for the other advanced biofuels." 
 
 Charles T. Drevna, president of the NPRA, said, "Our concern is with the unreasonable retroactive application of certain provisions of the rule and fundamental fairness in the implementation of policy … EPA retroactively and unlawfully imposed RFS2 compliance burdens on obligated parties, many of whom are NPRA members. Simply put, the fact that EPA failed to meet its statutory obligations under current energy law does not give [EPA] license to impose retroactively additional compliance burdens on obligated parties. At the least, such action calls into serious question the fundamental fairness of EPA's RFS2 rulemaking process."

Oil lobbies sue EPA on RFS2

The University of Connecticut's Center for Environmental Science and Engineering's Biofuels Testing Laboratory celebrated its grand opening in April with an open house and biodiesel symposium. Attendees received an overview of the biofuels testing laboratory and a tour of the facility. Scheduled to speak at the symposium were the Connecticut House Majority Speaker Denise Merrill and Daniel Falcone, wholesale manager for Ultra Green Energy Services. 
 
 Ultra Green Energy Services has announced its support and sponsorship of the new test lab, which recently opened in Storrs, Conn., utilizing a grant from the Connecticut Center for Advanced Technologies. The lab was established to certify the quality of biodiesel and biodiesel blends.

UConn opens new biodiesel test lab

The American Chemical Society's annual meeting in San Francisco publicized a presentation made by Albin Czernichowski, which detailed using the processes at work in big-screen plasma televisions to make a renewable diesel fuel. The GlidArc reactor, designed by Czernichowski, is named for the gliding arc of electricity that produces plasma inside the reactor. The plasma allows for conversions at reduced temperatures, taking gases from heated biomass that become clean and chemically active to produce clean fuels. "Low-tech and low cost are the guiding principles behind the GlidArc reactors," said Czernichowski. "Almost all the parts could be bought at your local hardware or home supply store. We use common 'plumber' piping and connections, for instance, and ordinary home insulation. Instead of sophisticated ceramics, we use the kind of heat-resistant concrete that might go into a home fireplace. You could build one in a few days for about $10,000." Czernichowski said glycerin coproduct from biodiesel processing, which can be expensive to refine, would be a suitable candidate feedstock for syngas-to-biofuels production.

TV tech finds alternative fuel application

On April 6 the U.S. deputy secretary of agriculture Kathleen Merrigan and Jackalyne Pfannenstiel, an assistant secretary of the Navy, kicked off the first of what's planned to be several energy forums hosted by the two federal entities initiated by their Jan. 21 memorandum of understanding to look at ways to increase advanced biofuels production and meet the Navy's renewable energy needs. "President Obama has an ambitious renewable energy agenda, and the USDA/Navy partnership we are highlighting today is a critical step to enhance America's energy security," Merrigan said.

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USDA, Navy kick off first energy forum

At the New York International Auto Show in late March, Mazda North American Operations announced it is bringing a new mid-sized clean diesel car to the U.S. market in 2012, part of its SKY technologies suite. The new diesel engine, given the concept name SKY-D, will be matched with the SKY-Drive transmission to achieve up to 43 miles per gallon-a fuel economy greater than today's mid-sized hybrids and 20 percent better than Mazda's current 2.2-liter diesel. The SKY-D will also meet Tier 2 Bin 5 emissions regulations, among the toughest standards in the world, Mazda noted. 
 
 The SKY Concept is Mazda's development strategy behind its next-generation powertrains. Mazda chose the word "sky" because it reflects the automaker's "desire to deliver driving pleasure while helping to ensure blue skies and clean air for future generations." The concept is being realized through optimization of existing technologies: engines, transmissions, weight reduction and aerodynamics.

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US to see Mazda mid-sized diesel car in 2012

The start of summer isn't the only noteworthy event in June. It also brings the NBB membership meeting, where biodiesel producers and supporters can shape the future of the biodiesel industry. 
 
 On the agenda of the meeting to be held in the nation's capital will be efforts to ensure the long-term viability of the federal biodiesel tax incentive. This includes seeking a multi-year extension of the incentive to avoid the many difficulties associated with a year-to-year program. The board also seeks to make changes to the structure of the incentive, to better serve the industry-and the country. 
 
 To that end, NBB will again assist members in setting up Congressional visits while in Washington. These grassroots visits led by members of the industry continue to be paramount to achieving the board's long-term vision and legislative priorities. 
 
 "I attend the board meetings because I believe if you are in business in an industry, you should participate in that industry," said biodiesel producer Ron Marr of Minnesota Soybean Processors. "You may not always get what you want, but you can at least be heard. It's a little bit like voting-if you don't vote, you can't complain later." 
 
 As always, members will get the inside track on what's happening in all areas of the industry, and learn about the progress of NBB in meeting industry objectives through technical, regulatory and marketing programs. 
 

 The NBB membership meeting takes place June 21-23 at L'Enfant Plaza Hotel in Washington. Watch for more information via e-mail and the Members Only site for agendas and registration instructions.

This summer's can't-miss event:  NBB membership meeting

April 22, marked a major milestone in our nation's journey toward environmental protection-the 40th anniversary of Earth Day. To help the event mark four decades, biodiesel played a valuable role in the National Earth Day celebration in Washington.
 
 Event organizers turned to cleaner-burning biodiesel blends to power the generators supporting the extensive festivities. Biodiesel powered through a week-long series of events held on the National Mall to recognize the special occasion. Organized by the Earth Day Network, activities included musical performances, speeches by U.S. EPA Administrator Lisa Jackson, members of Congress and others, an Eco Village and much more. 
 
 NBB staff and contractors facilitated biodiesel use for the event. Biodiesel was also a part of local Earth Day celebrations around the country as NBB members, Clean Cities Coordinators, biodiesel supporters and organizations touted renewable fuel alternatives.

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Earth Day's 40th anniversary celebration turns to biodiesel

The NBB recently launched its Biodiesel Industry Guide to quickly and easily connect industry leaders with the tools they need. 
 
 NBB partnered with MultiView Inc., an Irving, Texas-based publisher of Digital Buyer's Guides and E-News Briefs to launch the online vendor search site that allows biodiesel industry professionals to conveniently perform targeted searches for industry-related products and services. 
 
 Unlike traditional search engine results that can generate numerous irrelevant results, the Biodiesel Industry Guide is filled with industry-specific suppliers and service providers. It was designed to be a resource to NBB members and the biodiesel community so that important industry information can be found quickly.
 

 "The Biodiesel Industry Guide will ultimately hold the answers and connections to address any biodiesel-related opportunity or challenge imaginable," said Doug Whitehead, NBB director of operations. 
 
 There are two ways to search for a product or service within the site, either by using a keyword search, or an alphabetized category directory search. Either way, the result is a list of company names and contact information for the needed product. This feature is ultimately designed to save users time. 
 
 Available resources can be the key to success within the industry, and NBB wants to make it easier for biodiesel organizations to do business with each other. Whether companies are looking for supplies and services, or simply the essential tools and accessories needed to satisfy customers, the Biodiesel Industry Guide is designed to help. 
 
 Start your search at the NBB homepage (www.biodiesel.org), and click on the link for the Biodiesel Industry Guide, or go directly to the guide at <a href="http://thebiodieselindustryguide.com">http://thebiodieselindustryguide.com</a>.

NBB created the Biodiesel Industry Guide to make it easier for biodiesel organizations to connect.

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Biodiesel Industry Guide a service to the industry

Biodiesel customers, including fleet managers, have made it clear that quality is among their most important priorities. They have noted some benefits of purchasing biodiesel from a BQ-9000 producer or marketer, including:

 
 &#61500;Being aware of the BQ-9000 program and seeing value in fuel produced by a BQ-9000 producer. Some now specify BQ-9000 in procurement contracts. 
 
 &#61500;Helping ensure consistency in the quality of biodiesel 
 
 &#61500;Sleeping easier knowing they have taken a big step towards ensuring fuel quality for their customers
 
 The BQ-9000 program recently welcomed both a new producer and a new marketer to its ranks. Inland Empire Oilseeds LLC in Odessa, Wash., was certified as a BQ-9000 producer in November. Central Ohio Farmers Coop Inc. in Marion, Ohio, was certified in December as a BQ-9000 marketer.
 
 BQ-9000 is a voluntary fuel quality assurance program, overseen by the National Biodiesel Accreditation Commission and supported by the NBB and the Canadian Renewable Fuels Association. BQ-9000 couples the foundations of universally accepted quality management systems with the biodiesel product specification ASTM D6751, 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. &#61500;

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BQ-9000 program continues to welcome new members

Posted May 5, 2010

 
 LL Bio-fuels Namibia, a foreign-initiated multi-billion-dollar venture, has secured 300,000 hectares of land from chiefs in the north-eastern Caprivi Region to plant jatropha, whose seeds will be press-crushed to produce the much-sought-after biodiesel.
 
 When jatropha seeds are crushed the resulting oil can be processed into biodiesel while the residue, or press cake, can be used as biomass feedstock for electricity or as a fertilizer because jatropha contains nitrogen, phosphorous and potassium.
 
 The jatropha plant may yield more than 10 times as much fuel per hectare as soybeans, and more than 10 times that of maize.
 
 LL Bio-fuels signed a 20-year lease agreement with the co- owners of Katima Farm-the Caprivi Regional Council and Namibia Development Corporation (NDC)-to enable the firm to undertake various crop experiments aimed at maximum oil output.
 
 Alon Vered, an agronomist and project manager for LL Bio-fuels Namibia (Pty), on Monday told a Xinhua correspondent who visited the Caprivi Region that the Israeli-owned biofuel venture has planted 400 different jatropha crop varieties on 15 hectares of the 400-hectare Katima Farm to see which of the selected pilot crop varieties has a higher diesel yield and is suitable for Namibia's north-eastern region.
 
 If everything goes according to plan and if ongoing negotiations with the government sail through, LL Bio-fuels plans to produce the first barrels of the green fuel next year, he told Xinhua adding that the fuel will cost about 75 U. S. dollars per barrel, which is equivalent to about 200 litres. The product is most likely to be cheaper than fossil diesel.
 
 The company also intends to engage one of the multinational oil companies once it starts production, possibly to explore avenues on how it can tap into this lucrative market.
 
 So far, the project, mooted and funded by an Israeli tycoon has invested N$20 million for the ongoing experimental phase.
 

 But once the Israelis are content with the yield, billions of dollars will be pumped into commercial production of jatropha on 20,000-hectare portions of the land availed by the chiefs. 
 
 "Our target is to find the best jatropha tree varieties that yield 3 to 8 tons of diesel per year, that is why we are experimenting to see which variety is suitable for Caprivi," explained the agronomist, sent to Namibia by Lev Leviev, the Israeli investor.
 
 He said since the 300,000 hectares availed by all the chiefs in Caprivi is more than adequate "we only want to plant 20,000 hectares at a time. And the jatropha seed will go to a press machine, just like olive oil seeds, to squeeze out the biodiesel. "
 
 The firm intends to channel some of the billions of dollars into a hi-tech chemical plant that will comprise a huge seed press and some silos for the storage of the oil-rich seeds. Once crushed and the biofuel extracted, the seeds will leave a residue that will be converted into an organic fertilizer that will be spread on the jatropha plants.
 
 For every 20,000 hectares of land planted with the deep-rooted and drought-resistant jatropha that produces seeds all-year-round, the firm expects a yield of a million barrels and for 100,000 hectares 5 million barrels of bioffuel will be extracted from jatropha.
 
 "All this biodiesel produced we will use it for Namibia and export some of it. We want to be the biggest producer of biofuel in Africa, especially for biodiesel," he said.
 
 He also said unlike Angola and Nigeria amongst several African and other countries that have commercial crude oil deposits, Namibia imports this strategic resource to meet domestic energy needs spending crucial foreign reserves on its oil bill.
 
 American pioneer entrepreneur, Henry Ford, was the first to use "biodiesel" when he successfully used oil extracted from groundnuts to fuel a motorized vehicle.
 
 Namibia also imports between 70 and 80 percent of its food mainly from neighboring South Africa but the Katima Mulilo-based investor wants to offset this colonial legacy of food imports and dependency by making Namibia self-sufficient in food production.

 
 In this vein, the firm has cross-planted some sweet potatoes between the jatropha plants that can grow up to 10 meters high, but whose height will be maintained at about 3 meters to ensure workers do not have to use cranes to pick the diesel-bearing seed, he said.
 
 For now, the farm produces green and red peppers, tomatoes, bananas, onions, fresh corn-on-the-cob, cabbages, lettuce and other vegetables for the market at Katima Mulilo.
 
 The project has a 100-strong multi-ethnic workforce but this number will possibly swell to thousands of employees once it attains commercial production.
 
 SOURCE: XINHUA NEWS AGENCY VIA ISTOCKANALYST

Namibia to produce jatropha biodiesel

March 22 is World Water Day, which was designed to focus on water's role in healthy ecosystems and human well-being. But when misinformation about biodiesel leaked into the mix, the NBB was quick to set the record straight. 
 
 All too often biodiesel's water use is exaggerated or misstated. In a statement distributed nationally to media members and biodiesel stakeholders, Don Scott, NBB director of sustainability, had this to say about water and biodiesel:
 "Even the most pristine sources of water require energy to move it by pumping or shipping it in containers, such as plastic bottles. With a planet covered in water, and the realization that it takes energy to provide clean water in a useful form, we quickly see that wise use of water and wise use of energy are linked. 
 
 "That's where biodiesel comes in. By switching to renewable fuels such as biodiesel, we help ensure future access to energy and future access to clean, fresh water. For every unit of energy put into producing biodiesel, 4.5 units of renewable solar energy are stored in the usable form of liquid fuel. Biodiesel is the best way to store energy from the sun in a dense, liquid fuel for transportation uses, but it can also be used as a renewable fuel for stationary uses such as the Thames Water Desalination Plant in London. This plant will use biodiesel from recycled fat and oil from London restaurants and households to provide water for one million people. 
 

 "We must also protect our water resources by minimizing pollution. Biodiesel production reduces wastewater by 78 percent and reduces hazardous waste production by 96 percent compared to producing petroleum diesel. These numbers are based on the entire life cycle of the fuel. The conversion of fats and oil to biodiesel uses very little water and can be done consuming no water at all, if necessary. 2008 was a record year for biodiesel production in the U.S. Even during that record production, the entire U.S. industry used less water than a handful of golf courses use to water their lawns. In the context of societal uses of water and the benefit it brings, biodiesel production represents a very meager use of water." 
 
 Scott's expertise runs deeper than biodiesel alone. His previous experiences in protecting water resources include eleven years as an environmental engineer for the Missouri Department of Natural Resources, and chief of surface water for the Missouri Water Resources Center. &#61500;

NBB sustainability director weighs in on water

GreeNow, a company leasing biodiesel-powered generators for events, announced its new winter power system for diesel generators was successfully demonstrated at three New York events this past season. Under development and testing for two years, the company's winter power system allows event organizers who wish to minimize their carbon footprint to use B100 without concerns of fuel gelling. GreeNow's generators were utilized at the Knickerbocker Ice Festival in Rockland Lake, N.Y., and by Metrovision to power its mobile broadcast trucks at an international Red Bull press event in New York City, both in January; and by Events in Motion, which contracted GreeNow and its biodiesel-powered generators to power a movie premier for Percy Jackson in NYC in early February. 
 
 The merger of German diesel engine maker, MAN Diesel SE, and MAN Turbo AG was completed in March. The new enterprise, based in Augsburg, is named MAN Diesel & Turbo SE. By combining the complementary product portfolios of the two firms, the merged company will strive for growth and seek to strengthen its position in the relevant market segments. "The MAN Group will be seeking to pool its expertise in large bore diesel engines and power plants with its strengths in compressor and turbine technologies," said Klaus Stahlmann, MAN Diesel & Turbo SE's CEO. The company stated it will now be in a position to offer its customers product packages, such as turnkey Diesel Combined Cycle (DCC) power plants, or waste heat recovery systems for maritime applications. 

 
 The National Advanced Biofuels Consortium, created by stimulus packages under the federal government's economic recovery efforts, has selected Pall Corp. to develop filtration and separation processes for a U.S. DOE project to enable fungible biomass-based fuels to be integrated into the existing hydrocarbon fuels infrastructure. The company will be an engineering partner on each of six processes for biofuel production being evaluated under the program. These processes include fermentation, catalytic conversion, catalytic fast pyrolysis, hydropyrolysis, hydrothermal liquefaction, and a low-cost, one-step syngas-to-distillates process. The initiative will deliver at least one pilot-ready process, design reports, and life-cycle analysis demonstrating economics and environmental benefits. The $46 million project will be co-led by NREL and the Pacific Northwest National Laboratory. 
 
 Yara North America Inc., a leading North American producer and seller of Air1-branded diesel exhaust fluid (DEF), signed Canadian automotive fluid packaging and distribution firm Recochem Inc. to a long-term supply and packaging agreement for Air1. DEF is used with urea selective catalytic reduction systems for NOx control. Yara and Recochem will work to sell Air1 throughout Canada helping to build out the DEF infrastructure. 
 
 
 General Motors Corp. just announced a five-year partnership with the U.S. DOE to demonstrate that jatropha can produce significant quantities of oil for conversion to biodiesel, and to develop new high-yielding varieties that can withstand frost and grow in temperate climates. Two jatropha farms will be established in India: a 16-hectare (39.5 acre) plot in Bhavngar and a 38-hectare plot in Kalol, near GM's India car manufacturing plant. An existing 30-hectare jatropha farm in Bhavnagar also will be managed under this project. 

 
 
 Start-up firm Cyclogine Inc. is working to bring its biodiesel-related technologies and materials to market, including a precipitant material for pretreating low-grade feedstocks high in free fatty acids such as corn oil from ethanol plants. Cyclogine also has a new biodiesel catalyst that requires less methanol than conventional catalysts, reduces or eliminates soap formation, has rapid reaction times and requires no feedstock preheating. The company also developed an efficient distillation process for methanol removal, among other technologies. Cyclogine is looking for potential partners-biodiesel plants-to validate performance of its products at full-scale operating facilities. For more information, contact Jeff Fischer at (920) 229-1767. 
 
 Provacs Manufacturing Inc. has developed a new light-weight vacuum system for collection of used cooking oils and trap grease for small biodiesel operations, called the Provacs Toolbox Vacuum Tank. Made of aluminum, the tank and pump system can be custom-made for any standard pickup truck bed and is sized up to 500 gallons. The company has patented the internals of the tank, which are designed to stabilize tank pressure. A complete package, including tank, pump, a Honda 5.5 horsepower motor and more, costs $5,500. 
 
 Renewable Energy Group Inc., the largest biodiesel company in the U.S., idled two of its plants in late March and laid off 22 employees due to the continued lapse of the biodiesel tax credit, the company stated. The closed plants are the 12 MMgy REG Ralston and the 30 MMgy REG Newton refineries, both in Iowa. Since Jan. 1, REG and its network plants have laid off 45 percent of their workforce. Employees not laid off have taken pay cuts, the company stated. 

 
 Heartland Biodiesel LLC has developed a new purification column design to make handling and removal of purification media easier, safer and more efficient for biodiesel plant operators. The columns are swiveled on an axis from the vertical to an angled position where they can be securely held in place while the bottom hub system is removed in one step, eliminating the need for a crew of workers and heavy equipment to exchange spent media. It also reduces workers' contact time with the spent, hazardous material. Heartland Biodiesel has incorporated its proprietary distribution system into this design, which can extend the life of purification media. The company stated its new column design is the only one on the market in which either ion exchange resin or Eco2pure media can be used in a down or up flow configuration determined by the media being used. 
 
 Four Rivers BioFuels Ltd., a subsidiary of Four Rivers BioEnergy Inc., signed an offtake agreement with BP Oil International Ltd. for the sale of at least 60,000 metric tons (approximately 18 million gallons) per year of on-spec biodiesel. The initial term of the agreement is five years. With current production capacity at 77,000 tons per year, Four Rivers BioFuels stated that it intends to expand to 100,000 tons in the next seven months, and up to 200,000 tons within three years. The company is seeking financing for the working capital necessary for plant expansion. Also, feedstock supply agreements are still being negotiated.

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Business Briefs

When a series of labs collects data concerning different systems of the human body, they produce a reservoir of information known as metadata-which could be RNA and DNA knowledge of hela cells, nerve samples, or different aspects of the heart-often recorded using standardized methods. Researchers can use sophisticated computers to determine which clusters of experiments might be of use to each other. 
 
 "It's a great time to be a scientist," says Eve Wurtele, professor of genetics, development and cell biology at Iowa State University in Ames, Iowa. "We are able to gather massive amounts of data very quickly," she says. "My job in this project is to analyze the data that is gathered here at Iowa State and at other laboratories using computational analysis and bioinformatics. We can know every experiment computationally, and similarly, the variables involved." 
 
 The project to which Wurtele refers is an ISU effort underway investigating the process of genetically stacking traits in algae for biofuels production. With a $4.37 million grant from the U.S. DOE, ISU genetics professor and project lead Martin Spalding intends to develop a micro-algal platform allowing algae to be treated as a crop. The best analogy to this is stacking traits in corn. "Farmers could plant simple unmanipulated lines of corn that have high yield," Spalding says, "but you wouldn't get the drought tolerance you want. You could plant drought-tolerant corn, but you wouldn't get standability. But by genetically manipulating corn, you get all the traits you need."
 

 Basil Nicolau, professor of biochemistry and an associate scientist at DOE's Ames Laboratory, says, "The biodiesel industry has developed out of seed crushing because seeds are dry. Algae, however, is relatively wet and that has been a main problem in terms of the percentages and yields of particular cultures." 
 
 One way to make algae grow faster is to adapt it to grow at higher temperatures. "Thermodynamically, if you increase the temperature you can accelerate the reaction that promotes growth," Nicolau says. "Most algae grow at around 20 degrees centigrade." 
 
 Scientific equipment is available to scan millions of cells often grown on agar plates and dyed with a special ink. In addition, these powerful robotic eyes can see what mutated cells can survive the pressure of elevated temperatures. Seeing the gene that allows for survival in the heat could precipitate the genetic development of an algal strain grown in conditions that cause it to produce more lipids at a faster rate. "Natural mutagenesis occurs all the time, and most natural mutations are detrimental," Spalding says. "But using the power of huge numbers-seeing literally millions of cells-we can see what is beneficial."
 
 There is a lot of genetic/genomic information and prior science surrounding Chlamydomonas. "It's just been sequenced and it has a good genetic system," Nicolau tells Biodiesel Magazine. "Our job will be to introduce new genetic elements, and specifically, my role is to maximize the metabolic process by which the organism produces oil through biochemical etymology."
 
 
 Metabolism, Biosynthesis and Gene Expression	
 
 Three terms that the ISU scientists often uttered in conjunction, or connection, with each other is metabolism, biosynthesis and gene expression. One process of metabolism is exemplified when algae take in carbon dioxide and produce a carbohydrate. Biosynthesis, in turn, concerns the metabolic pathway in which proteins carry out certain steps in the digestion process. It is in the examination of these proteins that the roles of bioinformatics and computational analysis enter.
 
 A primary interest is how photosynthetic cells monitor their carbon status and regulate the genes involved in carbon assimilation in response to carbon availability. This is an example of metabolic regulation of gene expression, where products of metabolism act as signals in the regulation of gene expression. "We can perform very rapid, deep sequencing of the genes that are used to make proteins," Spalding says. "And we can compare the results with other experiments. There are a lot of experiments that track the expression of genes." 
 

 In Chlamydomonas, ISU is dissecting both the signal transduction pathway for adaptation to changes in CO2 and the microalgal "carbon concentrating mechanism" using insertional mutagenesis to generate tagged mutants subsequently relied upon to clone the key genes in the pathway. Identification of a key gene in the Chlamydomonas signal transduction pathway, cia5, has provided the opportunity to identify genes/proteins that interact with it using both suppressor analysis and the yeast two-hybrid system.
 
 Of course, what Spalding and his team hope to accomplish is to increase the amount of lipid produced and the rate at which the algae produces it. When researchers dye the cells they can see "tiny droplets of oil." It is here that a stain accumulates and causes a light scanner to "fluoresce" as it passes through the cells. "So we can pick out the cells with high fluorescents," Spalding says. "It would be impossible to deal with any other way."
 
 This process of selection and isolation is the backbone of genetic engineering. The proverbial "needle in the haystack" are those genes that are involved in the biosynthesis of lipids. So, the relentless search for those candidates present in the biosynthetic pathway that could lead to faster growth and increased fat production precedes the work involved with isolating mutants and modifying the genes. "Screening technology has opened up a whole world," Spalding says. "[Screening] a hundred million cells takes a couple of hours."
 
 
 The Spalding Lab
 
 The problem according to ISU is that no one really understands the genomes of most algae well enough to consider the possibility of stacking traits to make them produce more oil, offer better thermal resistance or any of the other characteristics needed. Currently, the algae used for biofuel development are wild strains found in nature that have certain traits growers like. "Using those algae is a good strategy, but the limitation with that strategy is that it has no flexibility because the algae can't be manipulated genetically," Spalding says. 
 
 Spalding's research in the lab focuses on regulation of carbon metabolism and carbon partitioning in plants and other photosynthetic organisms. "A primary interest is how photosynthetic cells monitor their carbon status and regulate genes involved in carbon assimilation in response to carbon availability," Spalding says. "This is an example of metabolic regulation of gene expression, where products of metabolism act as signals in the regulation of gene expression." 
 
 Ultimately, researchers believe the three-year study will produce many desirable traits in Chlamydomonas alga. "Our project will probably lead to increased production of basically vegetable oil that can be converted to biodiesel," Spalding says. "Using the same process we are using to increase that oil production, we also could divert the production into hydrocarbons, which are closer to petroleum." The end result could have several benefits. "It will mean we will have a more sustainable source [of energy] than we have now-more sustainable and more flexible," he says. 
 
 In other projects related more with traditional agriculture, ISU researchers are investigating the factors controlling partitioning of carbon metabolites in developing soybean embryos. These projects utilize isogenic soybean lines that differ markedly in their oil and protein contents, and represent part of a large effort at ISU to investigate the factors controlling carbon and nitrogen partitioning into oil versus protein. 

 
 Involvement of the Spalding lab includes analysis of changes in the proteome early in the development of soybean embryos in the isogenic lines, and application of a novel metabolic flux mapping technique, Metabolic Flux Ratio Analysis, to provide information about how the carbon flux changes through key steps in intermediary metabolism in developing soybean embryos across time, space or genotype.
 
 
 Nicholas Zeman is associate editor of Biodiesel Magazine. Reach him at (701) 738-4972 or <a href="mailto:nzeman@bbiinternational.com">nzeman@bbiinternational.com</a>.

ISU genetics professor Martin Spalding is working to stack multiple desirable traits in one type of algae to engineer the perfect strain for commercial biodiesel production. PHOTO: ISU

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ISU assistant scientist Dan Stessman adjusts one of the algae bioreactors in the laboratory. PHOTO: ISU

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The research team includes, in front from left, Chad Haynes (DOE), Wei Fang (ISU) and Marcia Almeida-de-Macedo (ISU); in back from left, Dan Stessman (ISU), John Morgan (Purdue), Larry Halverson (ISU), Martin Spalding (ISU), Jane Roche (ISU), Eric To

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Iowa State University's Plant Sciences Institute is genetically modifying Chlamydomonas, an alga whose genome is already mapped out. Algae start-ups have scoured the earth for attractive-high-oil or fast-growing-breeds. But researchers applying the manipulative power of biotechnology, through which multiple desirable traits can be stacked in the same strain, intend to create that which nature did not.

Engineering the Perfect Algae Strain

Building on its position as a global leader in oilseed production, in just under four years Argentina has made an astonishing catch-up with some of the more mature biodiesel producers such as Germany. It now ranks as the fifth largest producer and largest global exporter. Neighboring Brazil has become a global leader in ethanol production, and Argentina is poised to take on the same role in biodiesel. And the prospects for the sector have never been brighter-not only is global demand rising on the back of biofuel mandates, but also Argentina introduced its own mandatory B5 mix in March, creating a large domestic market for biodiesel and putting the country on a par with the most advanced economies in terms of its energy policy. For those considering investing in the Argentine biodiesel sector, it is effectively a one-way bet. 
 
 Argentina's main soybean-growing region is concentrated within a radius of 200 kilometers of the port of Rosario in Santa Fe province. With plentiful soybean supplies, Rosario constitutes the largest oilseed processing cluster in the world. The sector as a whole has a crushing capacity of more than 150,000 metric tons per day, with some excess capacity. Benefiting from economies of scale and ultramodern technologies, plants are highly efficient. An added advantage is the excellent logistics, in particular the modern port facilities at the mouth of the Paraná River adjacent to the crushing complexes. 
 
 Facilities based in the province have an installed capacity to produce 2.5 million tons (approximately 750.5 million gallons) of biodiesel annually, with more than a dozen firms involved in production. Unquestionably, Argentina has the competitive advantage to emerge as an undisputed global leader in biodiesel production. 
 
 
 Investment Surge, Strong Institutions Emerge
 

 Concerns over emissions and security of supply led Argentina to pass federal law 26093 in 2006 to promote the use and production of biofuels. Since passage of the law, which gave the biodiesel sector a strong legal foundation, the industry has seen an enormous inflow of investment. And support has not stopped at the federal level. Provincial governments such as that of Santa Fe have also been proactive in their support, putting in place promotional regimes for biofuels research and development along with the production and use of renewable energy-related products. 
 
 Strong industry groups such as the Argentine Renewable Energies Chamber (CADER), presided over by Carlos St. James, have emerged, giving the industry the opportunity to influence policymaking. 
 
 Large oil crushers were the first to take advantage of the opportunities in the sector. Based on their large crushing facilities, in addition to their strategic location next to ports, international trade networks and ready access to feedstock, it was a relatively straightforward transition. A good example of this is Renova SA, a joint venture between the long-established Argentine oilseed processing company Vicentin and Swiss commodities group, Glencore. This segment of the market has an installed capacity of more than about 850,000 tons annually, and is virtually working at full capacity.
 
 Taking advantage of the enormous opportunities in the market and the already competitive edge held by Argentina in biodiesel production, many new independent players have emerged in the past couple of years with installed production capacity now equating to more than 570,000 tons per year. In general, these new companies have strong financial backers, excellent production facilities and are well-positioned near key ports. While for the most part they do not have crushing facilities of their own, many of them have entered into long-term contracts with large oilseed crushers, taking advantage of the excess capacity in the sector. 
 
 One of these successful new companies among the many new independent players in Argentina's biodiesel sector is Rosario Bioenergy, which was awarded a quota to supply the domestic market. Financed by Argentine, Irish, Swiss, French and Italian capital, it recently started production at its state-of-the-art facility in Roldán on the outskirts of Rosario. Driven by a vision of environmental sustainability, its founders, led by Federico Pucciariello, president and principle shareholder, have created the first production facility in Argentina that does not use fossil fuel in the production of biodiesel. As a further manifestation of its green credentials, the company is spearheading a pilot program for the conversion of used vegetable oil from restaurants and hotels in Rosario to biodiesel. 
 
 
 EU Requirements Will be Significant 
 
 Hitherto, the Argentine sector has been highly export-orientated, with an estimated 1.2 million tons exported in 2009, most of which went to the EU. Since July, the European biodiesel industry has been vigorously lobbying for a halt to Argentine biodiesel imports, claiming they are suffering from unfair competition. A particular target for the campaigners has been Argentina's use of Differential Export Taxes. Unprocessed soybeans are taxed at 35 percent of their free-on-board (FOB) price compared to a rate of 17.5 percent for soy-based biodiesel. DETs have long been a feature of Argentine fiscal policy and an important tool in incentivizing the creation of a value-added processing industry, generating much needed employment. And such taxes are fully compliant with World Trade Organization rules. 
 
 If the EU is to meet its binding target that 10 percent of fuel consumption in its transport sector should come from renewable sources by 2020, it is estimated that, at least, this will require production levels of 30 to 35 million tons of biodiesel per year. But EU production is falling far short of this target. Encouraged by support from the European Commission and member states, a big increase in capacity has taken place over the past few years-but half of this capacity is idled because of insufficient demand, shortages in rapeseed oil for feedstock or inefficiencies, making it difficult to compete with more efficient producers such as those in Argentina. 

 
 Even if this campaign from the European Biodiesel Board and its members is successful, and restrictions on Argentine exports to the EU are put in place, it is hard to see how such a policy would be sustainable in the medium-term. It is fanciful, however, to think that the EU can meet its targets without resorting to imports, and Argentina is in a very good position to help make up this deficit. 
 
 
 China: A Growing Need for Biodiesel 
 
 Europe is not the only prospective market for Argentine biodiesel. Excellent prospects also abound in China, where more than 24 percent of vehicles run on diesel. With soaring vehicle ownership and escalating oil import requirements, China is also looking at alternative fuel supplies. By 2020, the government has set a target of 12 million tons of biofuel production, amounting to 2 percent of the country's total oil consumption. But with problems surrounding the lack of feedstock and the conflict of trying to feed itself, China will undoubtedly need to import biodiesel. Indeed, according to the CADER, Chinese companies have already started to look at the Argentine market as a potential source of imports. 
 
 
 Argentina's Own Domestic Demand
 
 While the main market for Argentine biodiesel has up to now been almost exclusively export-oriented, its internal market has just come into being and will expand over the next few years. Argentina holds a huge potential domestic demand for biodiesel. Thanks to favorable tax policies introduced at the beginning of the 1990s, diesel fuel is the most widely consumed fossil fuel in Argentina with around 67 percent of cars, trucks and farm machinery powered by diesel. 
 
 In February, the Argentine federal government awarded production quotas of 860,000 tons-representing 35.7 percent of the country's installed capacity-to 19 companies for supplying the domestic market, enabling implementation of the mandatory B5 requirement. Four companies were awarded 45 percent of the internal quota of biodiesel (UnitecBio, Viluco, Explora and Diaser), with the remaining 55 percent awarded to the rest, including large independents such as Rosario Bioenergy, Biomadero and AOM.
 

 Besides setting the technical requirement for biodiesel, the government has also set the price by which the companies can sell biodiesel to the internal market. Currently set at 2.90 Argentine pesos ($0.75) per liter, it is deemed profitable and will give businesses the ability to plan with certainty.
 
 Over the next four years, the mandatory biodiesel requirement will increase incrementally to 20 percent by 2014, creating an enormous domestic market and making it an excellent opportunity for investors. 
 
 
 Feedstock Diversification
 
 While there is still scope for significant expansion in the soybean sector, inevitably at some point sustainable soy production will reach its limit, resulting in feedstock supply constraints. It is very encouraging, however, to see that Argentina is beginning to plan for that eventuality. The government agency, Instituto Nacional de Tecnología Agropecuaria, has carried out jatropha trials in areas not suited for soy production in the provinces of Salta, Misiones and Formosa. Research is also taking place at Universidad Nacional de la Patagonia San Juan Bosco, in Trelew, Cubut, in collaboration with Italian researchers looking at the potential of using microalgae for biodiesel production.
 
 John Kennedy is an independent economic consultant based in London. Reach him at +44 77898 61880 or <a href="mailto:johnpkennedy@btinternet.com">johnpkennedy@btinternet.com</a>.

Stainless steel tanks at the Rosario Bioenergy biodiesel plant in Roldán, Santa Fe province PHOTO: ARGENTINE RENEWABLES CHAMBER

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The grain exchange in Rosario PHOTO: JOHN KENNEDY

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Despite being a late entrant to the world of biodiesel, Argentina has not only embraced the potential of this renewable energy, but also, through efficiency and innovation, is fast becoming a global standard-bearer for the sector. With growing demand in Europe and other countries such as China, as well as a vibrant domestic market, Argentina enjoys the best of both worlds, presenting huge opportunities for investors.

Argentina: A Win-Win Situation

Throughout development of the biofuels industry, the main feedstock focus of researchers and producers has been grain starches, cane and beet sugars, vegetable oils, tallows and lards, and cellulosic biomass, leaving the strain on producers to manage sustainability concerns, feedstock costs and operational improvements. Global biodiesel production has relied on rapeseed, soy and palm oils, along with fewer amounts of fats and waste greases. Only in the past five to seven years has research into the use of so-called second- and third-generation feedstocks been adequately promoted and supported by federal programs and the renewables industry. U.S. biodiesel production is expected to reach 1 billion gallons by 20121. The USDA projects that soybean oil for biodiesel will grow to 2.9 billion pounds by 2012-'13, representing up to 15 percent of domestic soy oil production, supporting nearly 400 million gallons of biodiesel. Although other plant-based vegetable oils are used by the U.S. biodiesel industry, much of the remaining volume to reach the 1-billion-gallon mark in the revised renewable fuel standard (RFS2) by 2012 will come from fats or recycled vegetable oil. 
 
 
 Glycerin Platforms

 
 Industrial biotechnology company Glycos Biotechnologies Inc. of Houston, Texas, recently developed a biotransformation technique that directs crude glycerin from the biodiesel process into ethanol at high yield efficiency. Using microorganisms as biocatalysts-enzymes or microbes that initiate or accelerate chemical reactions-GlycosBio makes possible the conversion of a disadvantaged coproduct into another prominent chemical. Scientists recognize that glycerin is sometimes difficult to convert in a microbial transformation, but its inherent chemistry opens alternatives to produce hundreds of compounds. For that reason, biofuel producers can tap crude glycerin streams to produce new and valuable coproducts. 
 
 What does this mean for the biodiesel industry? This new biological process enables owners of biodiesel plants to use glycerin streams within their plants to diversify coproducts and provide revenue management flexibility. Crude glycerin exiting the separation units can be converted to products like ethanol and propylene glycol, an important component of polyester resins, industrial solvents and hydraulic fluids, which boasts a $786 million U.S. market. At 85 cents per pound, propylene glycol has the potential to add 29 cents in production margin per gallon of biodiesel. If soybean oil prices begin to rise again, glycerin provides minimal plant contribution against low oil prices, but unlike glycerin, the industrial uses (and prices) for propylene glycol present a more sustainable source of economic value.
 
 Translating this into plant dollars, a 50 MMgy biodiesel refinery that converts its nearly 4.5 million gallons of crude glycerin can churn out 25 million pounds of propylene glycol, or $21.35 million at today's market prices. The conversion of glycerin to propylene glycol is under development by Dow, UOP, and Huntsman2. Epichlorohydrin is a high-volume commodity chemical used largely in epoxy resins. Dow and Solvay developed technology for converting crude glycerin to epichlorohydrin. The process is solventless and exemplifies the trend of an expanding use of natural polyols for the manufacture of commodity chemicals3.
 
 
 The Promise of Algae
 
 Third-generation biofuels seek to improve yields through improving the feedstocks themselves instead of the processes. Third generation or advanced feedstocks include those sources that promise to generate greater than 500 gallons of oil per acre per year, namely palm oil and algae oil as examples. Corn, soybean and camelina yield 18, 48, and 62 gallons of oil per acre, respectively. Rapeseed and jatropha yield 127 and 202 gallons of oil per acre. Palm oil alone yields 635 gallons of oil per acre. But conservative projections are that oil harvested from algae will yield values much higher than all of these; between 5,000 and 10,000 gallons of oil per acre have been speculated. Still, there is no successful commercial demonstration of biodiesel from algae oil apart from a few laboratory samples. 
 
 The production cost of algae oil depends on many factors such as the yield of biomass from the culture system, the oil content, the scale of production systems, and the cost of recovering oil from algal biomass. Currently, algae oil production is still far more expensive than petroleum diesel fuels. For example, Chisti4 estimated the production cost of algae oil from a photobioreactor with an annual production capacity of 10,000 tons per year. Assuming the oil content of the algae to be around 30 percent, the author determined a production cost of $2.80/liter ($10.50/gallon) of algal oil. This estimation did not include the costs of converting algal oil to biodiesel, or the distribution and marketing cost for biodiesel and taxes. At the same time, the petroleum diesel price was between $2 and $3 per gallon.
 
 In 2007, Shell established Cellana with HR Biopetroleum of Hawaii for the development of algae-based biofuel. Chevron partnered with Solazyme last year to develop and test algae for biodiesel feedstock5. And last year, ExxonMobil announced more than $600 million for research and development of algae-based biofuels through a partnership with U.S. biotech company Synthetic Genomics. Most researchers agree with Shell and ExxonMobil that another 10 years will be required before algae-based biofuels will be available in commercial quantities.
 

 The first algae ventures will come online in 2011 with CO2-capture projects, federally-funded energy and defense initiatives, and the first small-scale commercial biofuels and biomass projects. Then between 2012 and 2015, a larger number of projects will scale up from demonstration to commercial-scale.
 
 Fourth-generation feedstocks will include genetically modified feedstocks designed to increase oil yields and improve levels of CO2 sequestration. The fuels produced-biodiesel, ethanol, or renewable diesel-would qualify as an advanced biofuel under RFS2 and would be eligible for a higher per-gallon tax credit.
 
 
 Waste Greases, Animal Fats
 
 Waste cooking oil is one of the most economical choices to produce biodiesel. Since one of the major concerns of biodiesel producers is feedstock price, waste cooking oil greatly improves the economics of biodiesel. 
 
 Huge quantities of waste cooking oils and animal fats are available throughout the world, especially in developed countries. Management of such oils and fats pose a significant challenge because of their disposal problems and possible contamination of the water and land resources. The Energy Information Administration estimates that just more than 110 million gallons of waste cooking oil is generated per day in the U.S., where the average per capita waste oil was reported to be almost 10 pounds6 or 1.5 million tons per year. In Canada, that number could be 135,000 tons per year, and in Mexico that number could be 555,000 tons per year. 
 
 High Plains Bioenergy in Guymon, Okla., a subsidiary of Seaboard Foods, operates its 30-MMgy biodiesel plant using animal fats and vegetable oils from Seaboard's Guymon processing plant. In fact, High Plains uses much of the waste pork fat from Seaboard's co-located pork processing plant as a biodiesel feedstock. William Walden, High Plains' yield engineer, said their intent is to consolidate feedstocks in producing multiple biofuels on site. 
 
 Valero Energy Corp. announced last year it plans to build a 135 MMgy renewable (hydrogenation-derived) diesel facility using animal fats and waste grease in Louisiana, in conjunction with animal fats producer Darling International. Hydrogenation-derived renewable diesel is usually produced by hydrocracking natural oils and fats, alone or blended with petroleum, in an oil refinery. 
 
 Ramon Gonzalez, assistant professor of chemical and biomolecular engineering at Rice University, said if researchers can co-develop some commercial platforms for glycerin, fatty acids, and greases, the renewables industry as a whole will come much closer to displacing petroleum-based chemicals, both economically and technically. "Integrating products and feedstocks across streams and processes is what we need to aim for," Gonzalez said. "It's taking a page from the success of the petrochemical industry." 

 
 
 References
 1. O'Brien, Daniel. AgMRC Renewable Energy Newsletter March 2010, Agricultural Marketing Resource Center, USDA, Iowa State University.
 2. Patent Watch, American Chemical Society (2008)
 3. Briggs, J.R. Glycerin as a Renewable Feedstock for Epichlorohydrin Production. Clean 2008, 36 (8), 657-661.
 4. Chisti, Y. 2007. Biodiesel from microalgae. Biotechnology Advances 25:294-306.
 5. De Guzman, Doris. Biofuels pumped up, ICIS Chemical Business, Sept. 29, 2009. 
 6. Radich, A. Biodiesel performance, costs, and use. U.S. Energy Information Administration.
 
 David Gaskin is the director of strategic planning for Houston-based Glycos Biotechnologies Inc. Reach him at <a href="mailto:dgaskin@glycosbio.com">dgaskin@glycosbio.com</a>.

At GlycosBio's lab facility, Stephanie Doneske, senior scientist (left), and Munira Momin, research scientist, monitor an anaerobic fermentation that will optimize the production of ethanol from a feedstock of crude (biodiesel) glycerin. PHOTO: GYCOS

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Intensified government support and erratic oil prices continue to propel new technology breakthroughs and development for next-generation alternative feedstocks.

Emerging Next-Generation Feedstocks

he U.S. Senate recently took an important step toward protecting our nation's energy security and protecting thousands of jobs in rural America by passing a one-year extension of the federal biodiesel tax credit. The future of that legislation, however, remains uncertain since the legislation must be reconciled with significantly different legislation passed by the U.S. House of Representatives. 
 
 On Dec. 9, 2009, the House passed an extension of the biodiesel tax credit. That legislation, the Tax Extenders Act of 2009 (H.R. 4213), would extend the biodiesel tax credit through Dec. 31, 2010. The House legislation would make the extension retroactive to cover sales of biodiesel that occur after Dec. 31, 2009, the date on which the tax credit expired. 
 

 The Senate amended the House bill by substituting the text of its own version of the legislation. The Senate bill's extension of the biodiesel tax credit is identical to the version included in the House-passed legislation. In addition to extending certain expiring tax provisions, however, the Senate bill includes a number of other provisions. For example, the Senate bill would extend unemployment insurance benefits and extend eligibility for a tax credit that is intended to assist workers who have lost their jobs. On March 10, the Senate adopted its version of the legislation, titled the American Workers, State, and Business Tax Relief Act of 2010, by a vote of 62 to 36. 
 
 The House and Senate must now begin the process of reconciling the two versions of the legislation. As of early April, it was still unclear if or when this reconciliation would occur. 
 
 In fact, the recent passage of health care reform legislation may frustrate the reconciliation process. The Senate extenders bill included a number of "offsets" or provisions that reduce the overall cost of the bill by closing tax loopholes or otherwise increasing revenue to the federal government. By reducing the overall cost of the legislation, its sponsors improved its chances of passage. 
 
 On March 21, the House passed the Senate's version of a health care reform bill, as well as a separate "reconciliation" bill to make a number of changes to the Senate's health care reform bill. The reconciliation bill included several of the same offsets that the Senate had included in its package of extenders. For example, both bills included a provision to close a loophole in the Internal Revenue Code that has allowed the pulp and paper industry to take advantage of the cellulosic biofuels credit for "black liquor," a byproduct of the paper milling process that the industry has used as a fuel for decades. According to the joint committee on taxation, that provision alone would save $23.6 billion over the next 10 years. Since this offset has now been enacted in the health care reform measure, the Senate will no longer be able to use this offset to reduce the cost of its extenders package, including the biodiesel tax credit. 
 
 Rep. Sander Levin, chairman of the House Ways and Means Committee, has indicated that the House and Senate may have to appoint a conference committee to reconcile the significant differences between the two bills as a result of the different offset provisions. Ultimately, however, the process for reconciling the two bills and moving the process forward rests with the leadership in both chambers: Speaker of the House Nancy Pelosi and Senate Majority Leader Harry Reid. 
 
 It is critical that the biodiesel industry continue to keep pressure on congressional leadership to complete the work that it has started, and to adopt an extension of the biodiesel tax credit. Investors, employees, and other friends of the biodiesel industry must continue to reach out to their own senators and representatives and remind them that with each additional day of congressional inaction, more jobs may be lost and the future of this clean, domestic source of energy may be in jeopardy. 
 
 Adam Freed is an attorney with BrownWinick, a Des Moines, Iowa-based law firm serving the renewable fuels industry. Reach him at (515) 242-2402 or <a href="mailto:freed@brownwinick.com">freed@brownwinick.com</a>.

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After Senate Passage, Future of Tax Credit Remains Unclear

When I was asked if I would be interested in writing a column on jatropha, I, having personally been involved in the cultivation of this crop for the past seven years, thought it would be a good opportunity to share my thoughts with other jatropha enthusiasts. While it is one of the much talked about, domesticated wild species, in my opinion, it has yet to gain its popularity in terms of its yields. While the plant has shown huge potential to become a great success commercially, with the right approaches adopted, it has yet to generate satisfactory and profitable outcomes in my own farm or any other farm that I have known so far.
 
 Cart before the horse While the commercial cultivation is not a success so far, perhaps we should take a look at the cultivation practices rather than blaming the plant. We are yet to fully understand the pests and diseases that affect this plant and the way to treat them. Going for large-scale plantations without the proper set of practices is risky, and more importance should be given to research and development work focusing on the genetic improvement of the species, and agronomic practices.

 
 Competing with other crops Jatropha has to be grown on nonfarm and nonforest lands that are unused or underused with poor rainfall and marginal soils, so it would not compete with other crops. Hence, the focus of commercialization should be on growing jatropha in those regions of the world profitably rather than achieving the highest yield per unit.
 
 Local production and consumption Ideally, power generation or fuel production should be done locally where jatropha is or where it is to be cultivated, as this would lead to energy self-sufficiency in regional, remote areas, promoting area development. If the developed areas need jatropha oil, they need to fund the plantation costs and take the risk. Biodiesel processors should start with plantation activity first, or go for backward integration and develop plantations without further delay.
 
 Not a panacea Jatropha is not a panacea for biodiesel feedstocks, and there are other tree species such as Pongamia that are performing well. However, jatropha has great potential and needs huge investments and time to make it truly commercial. Pending that, it is advisable to go for an integrated and low-cost approach through biodiversity and ecological balance to mitigate the risks. Jatropha cultivation may pick up quickly and do well if it is done along with growing conventional crops. State subsidies and incentives coupled with carbon credits would go a long way in nurturing the nascent activity.
 
 Operational issues Machinery has yet to be developed to harvest pods, and manual harvesting in large-scale plantations is practically impossible. This, and a few other issues related to postharvest operations, could produce losses. There is immediate need to address these issues before large-scale cultivation is taken up.
 
 Unscrupulous players The hype created by unscrupulous players inflated the prices of jatropha seeds and oil, but the real benefits did not reach the farmers and project owners. While biodiesel plants suffered from unavailability of feedstocks at reasonable prices, the jatropha producers were losing due to the production, marketing and pricing issues. Dust from the middle men is settling down and the fly-by-night operators are vanishing after making their kill. The time has come for the serious players to take a big role in making the activity sustainable and viable.
 
 Loss making Jatropha is not cost competitive as of now, but can be a profitable activity for all the stakeholders, only after sustainable and large-scale cultivation. Apart from the R&D, such cultivation also requires risk-taking private investments. Subsidies and other incentives can only be the icing on the cake. 

 
 Way forward The initial failures made farmers and project owners skeptical of commercial success of jatropha, and there is a need to establish jatropha trial-cum-demonstration farms in different regions of the world. The immediate task is development of high-quality genetic material that can perform in different agro climatic conditions along with the agronomic practices that minimize risks and maximize returns. 
 
 
 Sreenivas Ghatty is CEO of Tree Oils India Ltd. Reach him at <a href="mailto:gs@treeoilsindia.com">gs@treeoilsindia.com</a>.

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Jatropha: A Failed Success?

Posted May 4, 2010
 
 Navistar International Corp. reached an agreement on May 3 with the U.S. EPA in which EPA promised to hold a public workshop or hearing to address issues Navistar raised in its federal court appeal of EPA's certification policies for SCR-equipped diesel powered trucks. 
 
 Navistar had asked the U.S. Court of Appeals in Washington, D.C., to void those polices because they had been adopted by the EPA without the public process required by law, but instead following input only from the SCR engine makers. 
 
 In its appeal, Navistar charged that EPA is using those policies to allow SCR-equipped diesel powered trucks to operate for extended periods without any control of NOx emissions and is certifying SCR engines as meeting NOx emission requirements when they do not. 
 
 The agreement reached yesterday provides that EPA will "engage in a public process to reexamine its policies, for future 2011 and later model year engines," during which it will "provide a thorough review of EPA's policies regarding operation of SCR-equipped engines." 
 
 EPA also has promised to "ensure, among other things, that SCR-equipped heavy-duty diesel engines are designed to properly control emissions as required under applicable regulations." The agreement must be published by EPA in the Federal Register for comment before it can become final. 

 
 "We are pleased with this agreement and look forward to participating in the public process," said Jack Allen, president of Navistar's North American Truck Group. "We believe that with full and open public participation, EPA will develop a new approach that will result in equal enforcement of the 2010 NOx requirements for all engine makers." 
 
 In March, Navistar's MaxxForce DT mid-range diesel engines and MaxxForce 13 big bore diesel engines were certified by the EPA for model year 2010. 
 
 SOURCE: NAVISTAR INTERNATIONAL CORP.

Navistar resolves lawsuit against US EPA

Posted May 4, 2010
 
 The CEO of Chico, Calif.-based Springboard Biodiesel, Mark Roberts, was honored recently with Innovator of the Year Award by the Chico Chamber of Commerce during a local annual awards ceremony held at the Chico Fairgrounds. 
 
 Roberts was honored with the award for his work in promoting small- to mid-scale biodiesel production both locally and nationally.
 
 "The bottom line is biodiesel is good," Roberts said in his acceptance speech. "It's cheaper to make than diesel if you're making it in our machines, it's much better for the environment, and you can make it right here in the U.S. from a vast selection of vegetable oils."
 

 Springboard Biodiesel manufactures and sells small-scale, fully-automated biodiesel processors, trademarked The BioPro line, and are used widely by businesses, universities, farmers and other groups who want to save money on their fuel costs while simultaneously reducing greenhouse gas emissions. 
 
 The company is preparing to release a fully integrated, multifeedstock processing system this summer that will allow its operators to make ASTM-grade biodiesel from the lowest-cost feedstock available. The system is called the ILP, which stands for Intelligent Local Production, and Springboard Biodiesel anticipates its release will help to further promote local, affordable biodiesel production and usage.

Springboard Biodiesel CEO wins award

Posted May 5, 2010
 
 SGS North America Inc. announced a solution to biofuels producers in meeting new U.S. EPA registration requirements required by RFS2.
 
 All producers of ethanol and biodiesel serving U.S. markets are required to register and certify their facilities with EPA.
 
 Multiple steps are involved in the registration process, including electronic application submission, EPA processing, approval, and finally verification by a licensed professional chemical engineer in the state in which the biofuel plant is located. 
 

 To finalize the registration process, an independent third party company must be retained to provide written verification of key elements of the electronic application, including types of feedstocks used, a description of production processes, coproducts produced, process energy fuel types and locations of origin, and baseline volumes as specified in EPA-issued air permits. 
 
 SGS will provide an on-site visit, review of critical documents and written report and cover letter verifying the information provided in the electronic registration process.
 
 SGS intends to work with individual producers of ethanol and biodiesel, both domestic and foreign, to assure compliance with this critical verification step. 
 
 SGS has been providing key training information to industry groups such as the National Biodiesel Board and the Iowa Renewable Fuels Association detailing the requirements of the new EPA requirements.
 
 With less than 2 months before the deadline, ethanol and biodiesel producers are under considerable pressure to complete this important requirement of qualifying their production facilities. 
 
 "By leverage our experience in the area of renewable fuel regulations and compliance, we are able to save producers both time and money in this critical step", said Howie Nelson, business development manager-alternative fuels with SGS North America. 
 
 SGS Industrial Services, headquartered in Bartlesville, Oklahoma, will provide a written quotation for this service upon request. All requests for quotation should be directed to Howie Nelson (howie.nelson@sgs.com).

SGS offers RFS2 plant registration service

Posted May 11, 2010
 
 OriginOil Inc. announced on May 10 that MBD Energy Limited has become the company's first algae-producing customer. Anglo American, one of the world's largest mining companies, is a cornerstone investor in MBD Energy.

 
 The parties recently signed a Memorandum of Understanding on a multi-phase commercialization program under which OriginOil will supply MBD Energy, an Australia-based company, with its trademarked Quantum Fracturing and Single-Step Extraction systems. Andrew Lawson, Managing Director of MBD Energy, said: "We are delighted to become OriginOil's first major customer and we look forward to working with the OriginOil team to forge a comprehensive commercial relationship with game-changing potential in the exciting third-generation biofuels space."
 
 Three of Australia's largest coal-fired power generators have committed to building test facilities adjacent to their power stations using MBD's proprietary growth system, the Algae Synthesizer, where smoke-stack CO2 emissions are captured and used to grow oil-rich algae in solar bioreactors. This process effectively achieves BIO-CCS (Carbon Capture and Storage). In the full production systems, OriginOil's technology will be integrated into the MBD system to enhance algae growth and perform oil extraction. 
 
 In the initial phase, OriginOil will equip MBD Energy's research and development facility at James Cook University in Queensland, Australia, where testing will take place. The two companies agreed that, subject to the success of the initial test phase, MBD will purchase significantly larger feeding and OriginOil extraction units to serve facilities planned for its three Algal Synthesizer power station projects in Australia: Tarong Energy (Queensland), Loy Yang A (Victoria) and Eraring Energy (New South Wales). 
 
 Riggs Eckelberry, OriginOil CEO said, "We have been looking for a partner with the resources and scaling capabilities to rapidly industrialize algae production with a focus on the long-term development of our industry. We are delighted to have found this partner in MBD Energy." He added, "Many thanks go to MBD's Larry Sirmans and Enrico Bombardieri, and our own Dr. Pattarkine, for their vision and persistence in making this partnership possible."
 
 Queensland Premier Anna Bligh officially opened MBD's expanded R&D facility in November 2009. Premier Bligh said: "The revolutionary algal carbon capture and storage (BIO-CCS) technology is already proving successful in trials and will soon be rolled out at three coal fired power stations, including Tarong Power Station near Kingaroy. This technology has the potential to revolutionize carbon capture in Queensland and around the world." She added: "As our state continues to grow and coal remains a key export, it is essential that we devise new ways to manage the impact of that growth on our environment."
 
 The Queensland Premier also announced that MBD would shortly commence construction of a one-hectare pilot plant at South Eastern Queensland's Tarong Power Station. The trial aims to capture 700 tonnes of carbon dioxide annually and, if successful, could expand over the next five to 10 years to consume more than half of Tarong's problem flue-gas emissions.
 
 MBD's Andrew Lawson said that each of the three current MBD power station projects has the potential to then grow to 80-hectare commercial plants, each capable of producing 11 million liters of oil for plastics and transport fuel, and 25,000 tonnes of drought-proof animal feed annually. He said that the projects will eventually consume more than half of each of the power station's problem flue-gas emissions.
 

 OriginOil's Quantum Fracturing System breaks down nutrients such as CO2 into micro-particles that stay suspended in water longer, allowing algae to feed more efficiently. The Single-Step Extraction system is the first commercial "wet" extraction system, able to separate algae oil from its biomass without costly and energy-intensive dewatering operations.
 
 SOURCE: ORIGINOIL

MBD Energy intends to purchase algae feeding and extraction systems

OriginOil gets first algae-producing customer

Posted May 11, 2010
 
 The Connecticut General Assembly recently passed legislation to incorporate biodiesel and lower the sulfur content in the state's heating oil supply. Bill No. 382 requires that all heating oil sold in the state must contain 2 percent biodiesel beginning July 1, 2011. 
 
 In 2012, the mandate increases to B5; in 2015, B10; in 2017, B15; and finally, in 2020, Connecticut will require 20 percent biodiesel in all heating oil. 
 
 The bill also requires the sulfur content to be reduced to 15 parts per million by 2014. 
 
 There are some caveats to this legislation. First, Governor M. Jodi Rell needs to sign the bill before it becomes law. 
 
 The governor's office told Biodiesel Magazine that the bill is still at the clerk's office and has yet to reach the governor's desk. Once the bill does reach Rell's office, she will have 15 days to act on it. 

 
 There also must be sufficient in-state biodiesel production, meaning at least 50 percent of the annual mandated volume of biodiesel based on data from the Energy Information Administration and the U.S. DOE. 
 
 The bill also requires that the states of New York, Rhode Island and Massachusetts pass bills of a similar nature.

Connecticut Assembly passes Bioheat bill

Posted May 11, 2010
 
 Troy, Mich.-based Delphi Corp. and Volkswagen have developed what is being called one of the greenest diesel systems ever produced, with the new 1.2-liter, 3-cylinder VW Polo BlueMotion-a vehicle with exceptionally low CO2 emissions and fuel consumption featuring a highly refined powertrain "built for performance," Delphi stated. 
 
 Car and Driver reviewed the VW Polo BlueMotion and, regarding its performance, wrote, "This Polo is comfortable and at least has enough power to merge into traffic safely. … The tiny engine gets a bit harsh when you follow the gearshift indicator slavishly. Just when you think the engine has reached happy rev levels, it suggests you upshift. VW insists the engine doesn't mind, but it does feel-and sound-a bit strange to shift the five-speed manual into top gear at 30 mph." 
 
 Delphi supplies its Multec Diesel Common Rail System for the new fuel-efficient vehicle. 
 
 "Our customers are downsizing their engines to meet stringent CO2 requirements," said Michael Gassen, general director for Delphi Powertrain Systems and Delphi Europe, Sales & Marketing. "The new Volkswagen 3-cylinder Common Rail diesel engine allows Delphi to demonstrate the great potential of our solenoid-based fuel injection system technology. This is Delphi's first diesel Common Rail program with Volkswagen, and it is on a vehicle that is now the most economical five-seater with the lowest emissions and the 2010 World Car of the Year. This is an excellent match for our technology." 
 

 With 75 horsepower at 4,000 RPM, the VW Polo BlueMotion gets about 71 miles per gallon-leaving hybrids in the dust in terms of fuel mileage-but Americans hungry for this diesel-sipping phenom are out of luck since it is not for sale in the states. 
 
 Delphi's Multec Common Rail System, launched in 2000 featuring a balanced valve fast servo-solenoid injector, supports downsizing concepts while maintaining competitive cost and performance criteria. 
 
 The common rail system on VW Polo BlueMotion includes the latest evolution of solenoid-type diesel common rail injector technology with Delphi's next generation DFP6 fuel pump. This combination allows for just 87 g/km of CO2 emissions. 
 
 "Delphi's new common rail system provides significantly improved fuel delivery control, extended multiple injection capability, enhanced spray atomization and air mixing," said John Fuerst, general manager with Delphi Diesel Systems. "The system in this vehicle can deliver up to six injection events per combustion cycle, which translates into a very smooth combustion process and therefore lowers the NVH (noise, vibration and harshness) levels." 
 
 As well as optimized combustion, the injection efficiency of the system is improved through reduced parasitic losses, reduced component mass, improved energy consumption and hydraulic performance. Delphi stated that, because of this, its common rail system will suit future generations of downsized engines in a range of vehicle classes.

VW, Delphi develop 'greenest' diesel system

Posted May 11, 2010
 
 Joe Jobe, CEO of the National Biodiesel Board, today renewed his call for Congress to put Americans back to work immediately by retroactively reinstating the expired biodiesel tax incentive. The industry is barely operating and at risk of total collapse without it, he warned.
 
 "Congress and the Administration have said they are dedicated to a 'jobs' agenda-their first step should be to reinstate the biodiesel tax incentive," Jobe told energy leaders at the Alternative Fuels and Vehicles Institute national conference in Las Vegas.

 
 Jobe explained that the biodiesel tax credit, in just five short years since its enactment, has resulted in the construction of over 150 renewable refineries in 44 states, 23,000 jobs, billions of dollars of net tax revenue to the U.S. Treasury, and the displacement of billions of gallons of petroleum. Congress allowed the biodiesel tax credit to lapse on Dec. 31, along with all other expiring tax provisions. 
 
 Jobe also pointed out the critical environmental benefits of biodiesel that could be lost if the tax incentive is not reinstated immediately.
 
 Produced from a wide variety of abundant and regionally-diverse by-products from crop and livestock production, biodiesel cuts carbon pollution by as much as 86 percent, according to the U.S. EPA. It is less toxic than table salt and biodegrades as fast as sugar. 
 
 "As we all wait in dread for the Gulf oil slick to wreak devastation on some of the nation's most sensitive wetland habitats, Congress' inaction has left America's nontoxic, biodegradable biofuel at risk of collapse," he said.
 
 The biodiesel tax credit has broad bipartisan support and has passed both Houses of Congress in a broader "tax extenders package." Congress need only reconcile the two versions of this package and send it to the President for signature. 
 
 "Further inaction by Congress to complete this common sense policy is causing the loss of jobs every day, derailing America's investment in its first successful advanced biofuel and it's simply unacceptable," Jobe said.

Jobe: Congress' inaction is 'unacceptable'

Posted May 12, 2010
 
 A Fischer Tropsch microchannel reactor developed by Velocys Inc., combined with a new highly active FT catalyst developed by Oxford Catalysts, was named winner of the CWC World XTL award 2010. The award was presented to CFO of the Oxford Catalysts Group, Susan Robertson, at a dinner on May 11 as part of the CWC 10th Annual World XTL Summit in London.
 

 The reactor can achieve productivities that are orders of magnitude greater than conventional FT reactors, and can operate economically at outputs as low as 500 barrels (21,000 gallons). 
 
 The technology makes it possible to produce liquid biofuels from a wide variety of waste feedstocks, including municipal waste in situ, thus avoiding the need to transport large volumes of waste to central processing facilities. A demonstration biofuels plant, which includes the FT microchannel reactor and uses gasified woodchips as a feedstock, is currently being commissioned in Güssing, Austria.
 
 Other microchannel technology applications being developed and demonstrated by Oxford Catalysts include small-scale onshore and offshore gas-to- liquids (GTL) and the intensification of steam methane reforming.
 
 "Our innovation represents a whole new way of looking at the problems associated with the distributed production of new generation biofuels, and the fuels produced offer significant environmental benefits over equivalent products from fossil fuels," said Roy Lipski, CEO the Oxford Catalysts Group. 
 
 Alirio Parra, CWC Group Ltd senior associate, said, "This achievement demonstrates that Oxford Catalysts is regarded by its industry peers as an innovative and exciting player in the XTL world and we look forward to hearing of the Group's developments at next year's World XTL Summit." 
 
 Microchannel reactors are compact reactors that have channels with diameters in the millimetre range. The small diameter channels dissipate heat more quickly than conventional reactors with larger channel diameters in the 2.5 – 10 cm (1 – 4 inch) range so more active catalysts can be used. Microchannel reactors make it possible to greatly intensify chemical reactions to enable them to occur at rates 10 to 1000 times faster than in conventional systems.
 
 Promising applications for microchannel reactor technology include GTL and the production of next-generation biofuels from a wide variety of waste sources via biomass to liquids (BTL) processes.
 
 The Oxford Catalysts Group is currently working with the Portuguese company SGC Energia (SGCE), to demonstrate and commercialize the Oxford Catalysts Group's FT microchannel reactor for the distributed production of biofuels. It is also working with other partners to demonstrate the application of microchannel GTL for use on offshore platforms and floating production, storage and offloading vessels. 
 
 The CWC XTL Award was established in 2006 to celebrate excellence and encourage innovation in the synthetic fuels sectors. This year's award, open to companies of any size involved in the XTL value chain, was designed to honor the company that has contributed most to XTL innovation during the past year. The winner was chose by a panel of leading industry experts from a short list of nominees that also included BioMCN, ENI/IFP/Axens, Oryx GTL, Rentech, Shell and Technip.

 
 Previous winners include Oryx GTL, GTL.F1, and Shell Gas & Power.
 
 SOURCE: OXFORD CATALYSTS

FT microchannel reactor wins award

Posted May 12, 2010
 
 Agriculture Secretary Tom Vilsack toured Middletown Biofuels in central Pennsylvania on May 7, where he highlighted biodiesel production as a critical component in America's strategy to create jobs and revitalize the rural economy. But the hope of Congress finalizing the biodiesel blender tax credit legislation, critical for the industry's survival, and sending it to the President's desk by the Memorial Day break is beginning to fade. 
 
 Middletown Biofuels, which produces fuel from a variety of waste oils, is one of more than 120 companies that recently received funding under USDA Rural Development's Bioenergy Program for Advanced Biofuels, a program authorized under the 2008 farm bill. The bioenergy payments are made to biofuels companies in rural areas to expand the production of advanced biofuels, which are those made from renewable sources other than corn kernel starch. 
 
 Middletown Biofuels' plant manager Alan Legrand was unavailable for comment on Vilsack's visit. 
 
 Earlier, the USDA announced that it was soliciting additional applications for funds under the advanced biofuels program. 
 
 "These continuing payments significantly help advance the production of biofuels in Pennsylvania," said USDA Rural Development State Director Tom Williams. "Middletown Biofuels' plant is in a prime agricultural region in central Pennsylvania. Businesses such as this create jobs in addition to producing renewable energy. They are a win-win on many levels." 

 
 USDA, through its Rural Development mission area, administers and manages more than 40 housing, business and community infrastructure and facility programs through a national network of 6,100 employees located in 500 national, state and local offices. These programs are designed to improve the economic stability of rural communities, businesses, residents, farmers and ranchers and improve the quality of life in rural America. Rural Development has an existing portfolio of more than $134 billion in loans and loan guarantees.

Vilsack tours Pennsylvania biodiesel plant

Posted May 18, 2010
 
 Netspace International Holding Inc., trading on the Pink Sheets as NSIH, announced May 18 that its wholly owned subsidiary, Alternative Fuels Americas, has signed a Letter of Intent to acquire Integrated Biodiesel Industries of Sao Paulo, Brazil. 
 
 Alternative Fuels Americas is a biodiesel consolidation company seeking to acquire companies at every phase of the biodiesel cycle, instituting operational efficiencies and reducing the cost of biodiesel. 

 
 Integrated Biodiesel Industries has made significant advances in recent years in feedstock development in Brazil and Argentina, and has exclusive world rights to a proprietary modular refining technology. 
 
 "This LOI marks the beginning of the implementation of our carefully crafted business plan," comments AFA CEO Craig Frank. "We are excited by the brain trust, experience and technology that IBI and its team bring to the table. We are looking forward to combining talents and resources to the benefit of shareholders of both companies." 
 
 "We are excited by the possibilities presented by the AFA acquisition," says Marcelo Lopez, IBI CEO, "and we see the two companies as sharing an industry vision and ideas on strategies for realization. We believe that AFA is the right company for our shareholders going forward." 
 
 AFA and IBI have initiated a process of due diligence and will be holding meetings to complete the acquisition over the next 90 days.
 
 SOURCE: NETSPACE INTERNATIONAL HOLDINGS INC.

AFA to acquire Integrated Biodiesel Industries

Posted May 18, 2010
 
 Wilks Enterprise announced the availability of comparison data done by independent laboratories on its InfraCal Ethanol and Biodiesel Blend Analyzers and InfraSpec VFA-IR Spectrometer. 
 
 The InfraCal Ethanol Blend Analyzer was tested against an Oxygenate Flame Ionization Detector (O-FID) with comparable results. The InfraCal Biodiesel Blend Analyzer and InfraSpec VFA-IR Spectrometer were compared to an FT-IR using EN 14078 and ASTM 7371 methods. In all tests, the results obtained with the Wilks instruments were at least equal, if not better. 
 

 This data indicates that the InfraCal Ethanol and Biodiesel Blend Analyzers, as well as the InfraSpec VFA-IR Spectrometer, do provide results comparable to EN 14078 and ASTM 7371 methods. However, they provide a significant advantage in that they are rugged, portable, easy-to-use instruments that provide measurement data in less than one minute. They are ideal for on-site use in laboratories, production facilities or distribution centers. 
 
 A copy of the comparison data can be downloaded from the Wilks Enterprise Web site, <a target="_blank" href="http://www.WilksIR.com" rel="external">www.WilksIR.com</a>.
 
 SOURCE: WILKS ENTERPRISE

Comparison data available on blend analyzers

Posted May 18, 2010
 
 Dover Corp.'s Pump Solutions Group was recently named recipient of the 2010 North American Positive Displacement Pumps Customer Value Enhancement of the Year Award by Frost & Sullivan. The award was presented to PSG at Frost & Sullivan's 2010 Excellence in Industrial Technologies Awards banquet at the Grand Hyatt-Riverwalk in San Antonio, Texas.
 
 "PSG's integrated business structure encompassing all of Dover's diverse brands allows the company to function as a single business entity, leveraging its common manufacturing and supply-chain infrastructure into enhanced value for its customers," said Muthuraman Ramasamy, Frost & Sullivan Research Analyst. "Its multiple pump technologies, combined with its domain expertise spanning several industry verticals enables Dover to cater to diverse operational requirements of end-users."

 
 Comprised of Dover's individual pump brands, including Wilden, Blackmer, Griswold, Almatec, Mouvex and Neptune, PSG is currently one of the largest manufacturers of air-operated double-diaphragm (AODD) and sliding vane pumps. 
 
 "One of the core missions of PSG and its operating companies is to not only provide our customers with the best pumping technology available, but to also work tirelessly to offer new-and-improved products that will help our clients move their businesses forward," said Dean Douglas, president of PSG. "This prestigious award from Frost & Sullivan shows us that our initiatives in this area are taking root."
 
 The Industrial Technologies Awards are presented by Frost & Sullivan to companies that have made significant contribution to the manufacturing, automation, logistics, distribution, materials, construction, security and process industries. Award-winners have exhibited success in meeting the needs of their clients in delivering value and innovation while developing world-class companies with strong management teams.
 Overall, Dover's formation of PSG acts as an umbrella group through which end-users can choose from a wide range of pump technologies. Dover's strategic acquisitions and subsequent successful integrations of those companies have enabled it to deliver enhanced and continuous value to business owners, making it the worthy recipient of the 2010 North American Frost & Sullivan Award for Customer Value Enhancement in the PD pumps market.
 
 "This honor is a reflection on the hard, focused work in which PSG's six member companies have been engaged," said Soma Somasundaram, President of Dover Fluid Management. "It is also motivation for us to hopefully receive this award for value enhancement many more times in the years to come."
 
 SOURCE: PUMP SOLUTIONS GROUP

PSG earns Frost & Sullivan award

Posted May 19, 2010

 
 Construction of the 75-MMgy Dynamic Fuels renewable diesel plant in Geismar, La., not far from Baton Rouge, is nearing completion, according to Jeff Bigger, Syntroleum Corp.'s senior vice president and director of the Dynamic Fuels management committee. Dynamic Fuels LLC is a 50/50 joint venture between Tyson Foods Inc. and Syntroleum. 
 
 The facility will use Syntroleum's trademarked Bio-Synfining process to convert low-cost feedstocks to renewable diesel fuel, with coproduction of naphtha and liquid petroleum gas (LPG). Tyson Foods' experience in applied protein-chemistry will come into play for pre-processing and optimizing the feedstock mix, which will consist of the food giant's large byproduct stream of beef tallow, pork lard, chicken fat and various greases, for best possible conversion to fuel. 
 
 Mechanical completion of the renewable diesel refinery will come in June, just weeks away. "Construction is very near complete, with primary efforts at this point being completion of quality inspections on the piping, and items such as post-weld heat-treating, weld X-ray, hardness testing and final restoration after pressure testing," he said. 
 
 Commissioning, plant start-up and full-rate operations are expected in the third quarter. "Nine of the 27 systems in the plant have been turned over from the contractor to Dynamic Fuels and are being commissioned," Bigger told Biodiesel Magazine. 
 
 Dynamic Fuels will be able to produce a variety of diesel products from summer- to arctic-grade on-road renewable diesel fuel to biofuel for aviation applications that meet all U.S. military requirements. The plant cost more than $150 million and more than 300 jobs are being created. 
 
 "We are fully staffed with our permanent plant staff and they have completed preparation of all operating procedures and have completed all training, so the staff is ready to operate as soon as the plant is completed," Bigger said.

Renewable diesel plant in La. nearly complete

Posted May 19, 2010
 
 Escherichia coli-E. coli for short-is often identified as a bacterium that contributes to foodborne illness. But research led by a Rice University scientist has discovered ways to use a safe, non-pathogenic E. coli to convert glycerin into high value fuels and chemicals. 
 
 Ramon Gonzalez, William W. Akers Assistant Professor in the Departments of Chemical and Biomolecular Engineering and Bioengineering at Rice University in Houston, also chair of Glycos Biotechnologies Inc.'s Scientific Advisory Board, received the 2010 Glycerin Innovation Award during the Annual Meeting & Expo of the American Oil Chemists' Society. The Award is sponsored annually by The Soap and Detergent Association and the National Biodiesel Board and administered by AOCS. Gonzalez was presented with a $5,000 honorarium and plaque for his work. 
 
 Gonzalez and his team of researchers identified the metabolic processes and conditions that allow a known strain of E. coli to convert glycerin into ethanol. Glycerin is a byproduct of biodiesel production. 
 
 "The biodiesel process converts fats or oils into biodiesel and glycerin, with one pound of glycerin produced for every 10 pounds of biodiesel," said Steve Howell, NBB Technical Director. "Glycerin is a sustainable natural sugar, and it is necessary to remove all the glycerin in order to meet the stringent ASTM specifications for biodiesel." 
 
 The Rice researchers discovered innovative pathways and mechanisms that mediate glycerol fermentation in E. coli. That enabled their efforts to develop new technologies for converting glycerol into high-value chemicals. In essence, they designed strains of E. coli that could produce a range of products from biofuels, ethanol, hydrogen and organic acids. 
 
 These technologies are being licensed commercially so they can be brought to market. 

 
 The SDA/NBB Glycerin Innovation Award recognizes outstanding achievement for research into new applications for glycerin, with particular emphasis on commercial viability. 
 
 "Glycerin has an established market and biodiesel companies typically sell their glycerin to oleochemical companies who then refine the glycerin into pharmaceutical grade," said Howell. "Finding new, value added uses for sustainable glycerin will help improve biodiesel profitability and lower costs for the first commercial advanced biofuel-biodiesel." 
 
 The Award, which includes a plaque and a $5,000 honorarium, was presented by the AOCS Industrial Oil Products Division during the AOCS Annual Meeting in Phoenix, Az. 
 
 For more information on the honored research, contact Gonzalez at (713)-348-4893 or ramon.gonzalez@rice.edu. 
 
 SOURCE: NBB

NBB honors Rice U. for glycerin research

Posted May 21, 2010

 
 Kastalon Inc., based out of Alsip, Ill., has designed and manufactured a fixture to lock internal fryer oil and yellow grease tank-systems and their contents. As demand for biodiesel grows and yellow grease prices surge, theft has been on the rise. 
 
 Once considered waste, used fryer oil now serves as a viable and substantial key-ingredient in alternative fuel sourcing. The highly pure nature of used fryer oil and its relative low viscosity have made it a prime and easy target for these thieves. Some larger holding tanks can be vacuumed empty in just minutes.
 
 With a typical fast-food restaurant producing 200 to 300 pounds of the waste oil per week, and a large rendering company servicing hundreds of these locations regionally, the value of at-risk material can range into the upper tens of thousands of dollars per week. When larger facilities are serviced and a national outlook is taken, theft potential to a renderer can be astronomical.
 
 Although still a relatively new issue, shielding oil from theft while allowing it to be accessed by those authorized has been a challenge. Most methods have been ineffective, inefficient or costly. Kastalon stated that its innovation, trademarked The Sekure Kap, is easy to install, simple to maintain and able to be retrofitted to any oil-containment system in a cost-effective manner.

May 2010

Business Briefs

Business Briefs

Columns

Clean Diesels and Biodiesel Feedstock Developments

Jatropha: A Failed Success?

Featured

Engineering the Perfect Algae Strain

Argentina: A Win-Win Situation

May 2010.css-7jxktu{position:absolute;bottom:0px;left:0px;right:0px;height:3px;border-radius:3px;background-color:var(--chakra-colors-brandBlack);}

Business Briefs

Business Briefs

Columns

Clean Diesels and Biodiesel Feedstock Developments

Jatropha: A Failed Success?

Featured

Engineering the Perfect Algae Strain

Argentina: A Win-Win Situation

May 2010