Global energy consumption has been growing the past 30 years, except in 2008, due to the economic crisis. Many forecasts call for the increase in demand to continue&mdash;and not only for crude oil, but also for gas and coal. With growing concerns about the global warming associated with greenhouse gas (GHG) emissions, however, biofuels are becoming a more significant portion of total global energy consumption. Futurists also see continued increases in global commerce, the car population, and &ldquo;dieselization&rdquo; of vehicle fleets. If they are right, strong growth in demand for diesel fuel will contribute to higher diesel prices and supply issues. The result: A growing portion of the increased demand for diesel will be supplied by renewable fuels such as &ldquo;acceptable&rdquo; biodiesel. While the definition of &ldquo;acceptable&rdquo; is still evolving, note that the current standards for biodiesel require that the fuel be &ldquo;fit for purpose&rdquo; and cost-competitive with petroleum diesel. Additionally, its production and consumption must not compete for, or increase, the cost of the food supply, or cause a net increase in GHG emissions. Feedstocks, Low-temperature Performance Biodiesel can be a mixture of fatty acid methyl esters (FAMEs) produced from various feedstocks, such as vegetable oil or animal fats. Such a mixture can contain a variety of structures, including both unsaturated and saturated acids, with carbon numbers typically varying between 10 and 24. As shown in Figures 1 and 2, the saturated FAME components have such a high cloud point (CP), cold filter plugging point (CFPP), and pour point (PP) that they cannot be used when ambient temperatures are below the respective CPs.&nbsp; The primary negative influence on biodiesel cold flow properties comes from the crystallization of long-chain, saturated FAMEs at ambient temperature. Failure to address this issue results in the inability to fully utilize these alternative fuels. Consequently, there is a vital need to improve these properties with specific additives to meet the performance standards of current fuel specifications. FAMEs start as a clear, solids-free liquid at room temperature, such as 20 degrees Celsius. Upon cooling, waxy components begin to crystallize. The temperature at which crystals grow large enough to be seen is defined as the CP and is measured using ASTM D2500 method. Upon further cooling, the waxy crystals continue to grow, eventually becoming large and numerous enough to slow or stop the flow of the FAMEs through a typical vehicle fuel filter. This temperature is determined by the CFPP test, ASTM D6371. As the FAMEs&rsquo; temperature continues to decrease, crystals continue to grow in size, forming a network extending throughout the fluid that prevents it from flowing. The temperature at which the fluid ceases to flow is the PP, measured with the ASTM D97 method. The CP, CFPP and PP are major factors in defining the practical utility of a specific biodiesel, and thus have a significant impact on its value. CP is an early warning sign that waxy material is coming out of solution and might impair flow. CFPP is related to the plugging of the fuel filter by wax crystals whose size matches or exceeds the filter pore size. Filter plugging leads to engine shutdown and immobilized equipment, resulting in loss of time and money. PP is important for FAME producers or transporters who want to avoid frozen biodiesel plugging tanks and lines. Given these operational considerations, FAMEs with better low-temperature performance tend to command a higher value. PAMA CFIs&rsquo; Mechanism of Action Polyalkylmethacrylates (PAMA) are a widely accepted chemical technology used to make CFI additives. PAMA CFIs can improve the low-temperature properties of FAMEs by controlling the waxy structures formed at low temperatures. This is made possible by their ability to co-crystallize with the biodiesel&rsquo;s saturated methyl esters crystalizing out of solution as it cools down. See the diagrammatic representation in Figure 3. In the top left drawing, a wax-like crystal has formed with a characteristic needle-like shape. As temperature decreases, the needles grow in size and number, forming a network that impairs the flow of the FAME (Figure 3, top right). PAMA additive alters the rate of crystallization of the waxy components, preventing the formation of large crystals and of a network structure to lower temperatures. The effectiveness of the PAMA depends on the scientists tailoring the distribution of its waxy hydrocarbon side chains that range from 10 to 20 carbon atoms in length along the polymer backbone. When a biodiesel sample containing an appropriate PAMA is cooled, the waxy side chains of the PAMA co-crystallize with the waxy components in the biodiesel (Figure 3, lower drawings). The bulky polymer backbone interferes with the continued growth of the crystals, which are more numerous but also smaller in size. One area where biodiesel needs improvement in order to be considered fit for purpose lies in its low-temperature properties that are inherently inferior to those of fossil diesel. Biodiesel has a higher CP, CFPP and PP, and it requires specific additive treatment. This has led to the development of new PAMA CFIs engineered to improve the low-temperature performance of a variety of FAMEs to an acceptable level, which greatly increases their market value. Evonik&rsquo;s Viscoplex CFIs can improve the low-temperature properties of FAMEs by controlling the waxy structures formed at low temperatures. This is made possible by their ability to co-crystallize with the saturated methyl esters in the FAME solution. Since different FAMEs have various waxy components, Evonik has engineered the CFI molecules to improve the low-temperature performance of a variety of FAMEs to substantially increase their market value. See the Viscoplex CFI selection guide (Figure 4). The oil additives specialists at Evonik are global leaders in the supply of high-performance fuel and lubricant additives for use in automotive, hydraulic and industrial lubricants. State-of-the-art regional technology centers and manufacturing facilities linked through a global supply chain enable Evonik to reliably provide high-quality customized products and solutions to customers worldwide. Evonik&rsquo;s team of fuel and lubricant specialists is poised to help OEMs, formulators and marketers get an edge and boost efficiency in a range of applications. Author: Alex Tsay Global Marketing Manager, Oil and Gas Evonik Oil Additives USA Inc. 215-706-5808 alex.tsay@evonik.com

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Evonik's Viscoplex CFIs can improve the low-temperature properties of FAMEs by controlling the waxy structures formed at low temperatures. This is made possible by their ability to co-crystallize with the saturated methyl esters in the FAME solution.

CFIs Help Make Biodiesel Fit for  Purpose, Price-competitive

Dublin, Georgia-based Tactical Fabrication LLC and The Smisson Group of Macon, Georgia, formed a biodiesel joint venture, Smisson-Mathis Energy LLC, to retrofit an existing, idled biodiesel production facility in Laurens County, Georgia. The process technology to be employed couples liquid enzymatic and resin technologies for conversion of brown grease to biodiesel, and advanced distillation to reduce sulfur from hundreds of parts per million (ppm) to single digits. A pilot plant in Dublin, Georgia, scaled at 75,000 to 100,000 gallons a year, is where Franklin Mathis, CEO of Tactical Fabrication and SME, is proving out the process. &ldquo;From July 2016 to this past January, we had a small distillation unit running 100 milliliters a minute&mdash;very small&mdash;and we would perform reactions with different feedstocks and distill them in small units,&rdquo; Mathis tells Biodiesel Magazine. &ldquo;This January, we built the pilot unit we have running now with a 28-foot-tall column that runs 6 to 10 gallons an hour.&rdquo; The idled plant SME is purchasing to scale-up its process will initially be sized at 1 MMgy, but once running, the team will expand to 5 MMgy. Mathis originally helped build the idled plant, so he is intimately familiar with its design, which will facilitate the retrofit. After testing trap and brown greases from all over the country, Mathis and his team quickly realized that fats, oils and greases (FOG) from wastewater treatment facilities are much cleaner feedstock than commercial brown grease. &ldquo;FOG from wastewater treatment facilities has been water-washed so many times, many of the contaminants compared to brown grease have been removed,&rdquo; he says. &ldquo;That means once the oil has been extracted, it needs less pretreatment and there&rsquo;s less crud that comes out in distillation.&rdquo; Cities all over the country pay to dispose of FOG and related wastes, but SME wants to partner with municipalities to employ its patent-pending FOG Harvester to cut the volume of waste by up to two-thirds. &ldquo;Our FOG Harvester takes the waste stream and separates the water, solids and oils,&rdquo; Mathis says. &ldquo;Then, the water can stay at the wastewater treatment plant, the oil can be used for fuel production, and the solids can go to the landfills for digestion.&rdquo; The FOG Harvester utilizes commercially available equipment. &ldquo;We&rsquo;ve assembled it in a manner where we can use it in a landfill or wastewater treatment facility,&rdquo; Mathis says. &ldquo;The FOG Harvester pasteurizes the oil and separates the three fractions.&rdquo; Mathis says Novozymes does advertise conversion of most waste oils, but feedstocks derived from brown grease and FOG have until now been a distant dream. But, by combining Novozymes&rsquo; enzymatic process with SME&rsquo;s refined advanced distillation, this dream is now becoming a reality resulting in low-sulfur biodiesel from brown grease and FOG. Mathis says the original version of the distillation process SME is using was developed and patented together with Stu Lamb of Viesel Fuel. &ldquo;Stu and I own the patent, but in the past year several things have changed&mdash;we&rsquo;ve encountered so many different elements in brown grease,&rdquo; he says. &ldquo;The learning curve has been steep and challenges have been found, but we are breaking new ground here.&rdquo; Mathis says all enzymatic processes leave a small amount of free fatty acids (FFA) unconverted. &ldquo;We use Purolite resins to do the conversion on the last remaining percentage of unreacted FFA,&rdquo; he says.
In early June, SME received a coveted &ldquo;Green Light Letter&rdquo; from USDA under the Section 9003 biorefinery assistance program to move to Phase II of a loan guarantee process, with help from Global Renewable Strategies and Consulting LLC and Sustainable Energy Strategies Inc.
Phase I involved providing USDA a rigorous external feasibility study, to indicate a solid business plan and technology selection. Phase II includes a lender&rsquo;s analysis by the prospective bank and a USDA environmental assessment, says Jill Hamilton, SES founder. &ldquo;We are in the midst of completing the requirements for Phase II,&rdquo; says Benjamin Smisson, SME project manager. &ldquo;Part of that is a 120-day run at the pilot plant, doing data point collections, and organizing everything to USDA standards. Everything so far is looking great. We&rsquo;re putting together the pieces to be ready for construction and plant modifications, and we are getting our feedstock agreements in place.&rdquo; SME&rsquo;s plan is to make this a proof-of-concept plant, Smisson says. &ldquo;We&rsquo;d like to offer these services to a number of plants moving forward&rdquo; he adds, &ldquo;optimizing or designing new facilities.&rdquo; Mathis says, &ldquo;Our goal is not to hide our candle under a basket. We want to make this available to every biodiesel producer.&rdquo; Author: Ron Kotrba Editor, Biodiesel Magazine 218-745-8347 rkotrba@bbiinternational.com

IMPRESSIVE CLEAN-UP: Through its enzymatic and resin approach to biodiesel conversion followed by advanced distillation, Smisson-Mathis Energy is able to take high-sulfur brown grease (left) and convert it to on-spec biodiesel.  

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PROVING GROUNDS: Smisson-Mathis Energy is buying this idled biodiesel plant in Georgia to retrofit with its processes, and to use as a commercial showcase.  

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A Georgia-based joint venture is combining enzymatic and resin technologies with advanced distillation to convert brown grease to low-sulfur biodiesel. The plan is to prove out the process and make the technology available to the entire industry. 

Breaking New Ground

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Screenshot of Reiterâ€™s new automation software

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Screenshot of Reiter's new automation software

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Biodiesel Magazine profiles seven companies providing invaluable services, expertise and products that have helped build, grow and sustain the biodiesel manufacturing sector. 

Spotlight: Here to Serve the Biodiesel Industry

The first action by the Trump administration on the Renewable Fuel Standard was much anticipated. The National Biodiesel Board and the entire biofuels industry eagerly awaited the 2018 renewable volume obligations (RVO) proposal released in July. The RFS was intended to move this country toward advanced biofuels, and the biodiesel industry has risen to the challenge of the RFS program every year with the potential to continue growing with the right policy signals. After much consideration and input from our members, our industry working group dedicated to making recommendations on the RVOs and our governing board, NBB recommended U.S. EPA propose a 2018 advanced-biofuel volume of 5.25 billion ethanol-equivalent gallons and a 2019 biomass-based diesel volume of 2.75 billion gallons. Increased volumes would enhance stability in the marketplace, provide room for growth in our industry, increase opportunities for U.S. producers, and provide a clear signal that American-made advanced biofuels are a key component of President Trump&rsquo;s plan for &ldquo;energy dominance.&rdquo; While the July announcement was just a proposal, we felt the disappointment of maintaining the minimum required biomass-based diesel volume at 2.1 billion gallons from 2018 for 2019 and a proposal that slightly decreases the 2018 volume for advanced biofuels to 4.24 billion gallons from the 4.28 billion gallons EPA set for 2017. While the decrease in advanced biofuels corresponds with lower cellulosic biofuel volumes from 2017, EPA&rsquo;s proposal does not show the growth in advanced biofuels that Congress intended or the growth in biomass-based diesel we know can be achieved. BBD the Floor, AB the Ceiling. Raise the Ceiling. In the proposal, EPA argues that the biodiesel industry&rsquo;s ability to exceed the requirements of the biomass-based diesel category means that the proposed volumes are adequate: &ldquo;For 2019, EPA continues to believe that it would still be appropriate to provide a floor above the statutory minimum of 1 billion gallons to provide a guaranteed level of support for the continued production and use of BBD. However, we also believe that the volume of biomass-based diesel supplied in previous years demonstrates that the advanced biofuel standard is capable of incentivizing additional supply of these fuels above the volume required by the biomass-based diesel standard.&rdquo; But the RFS was intended to ensure growth of advanced biofuels to compete against petroleum, and the biomass-based diesel category ensures that growth occurs in the diesel sector. Market growth and new investments are stimulated by the policy signals sent by increased volumes. Without the market stability provided by higher volumes, investors are less likely to fund infrastructure needs or new employee hires&mdash;curtailing the ability of biodiesel to create new domestic jobs. If we want to advance the primary goal of the law&mdash;to expand the country&rsquo;s renewable fuels sector&mdash;the volumes in the advanced-biofuel category must be increased each year. Decreasing this volume will neither increase competition in advanced biofuels nor drive growth in biomass-based diesel fuel. Domestic Producers Can Achieve Higher Volumes The domestic biodiesel industry has made substantial investments and is being drastically underutilized. EPA acknowledges in the proposal that there is additional capacity and available feedstock for more American-made biomass-based diesel. Simultaneously, it cites growing biofuels imports as a concern and a reason for not increasing volumes. The RFS is simply not the appropriate place, nor is it an effective way to address this concern. Currently, the U.S. Department of Commerce and the U.S. International Trade Commission are investigating whether to impose antidumping and countervailing duties against Argentina and Indonesia, because a flood of subsidized and dumped biodiesel imports have stolen market share from U.S. producers. The NBB Fair Trade Coalition filed petitions with these agencies in March to level the playing field for U.S. producers. Preliminary determinations on estimated rates of subsidization and dumping are expected from the commerce department as early as late August and October, respectively. Because subsidized biodiesel that is dumped in the U.S. is currently cheaper than American-made biodiesel, these will be the first gallons bought to meet the RFS volumes. Therefore, lower RFS volumes only exacerbate the harms to the domestic industry. If EPA wants to increase our energy independence, it needs to raise, not lower, the advanced biofuel requirements. Reducing these volumes will simply limit American producers&rsquo; share of the market even more until these trade issues are resolved. It will be up to our industry to make our voices heard during the comment period, with the administration, and through every avenue available until the rule is finalized later this year. It is clear from this proposal that we have our work cut out for us, but I&rsquo;m confident we will be successful in showing the value our industry brings to the economy, environment, and American energy independence. Donnell Rehagen CEO National Biodiesel Board

Donnell Rehagen, CEO, National Biodiesel Board 

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It will be up to our industry to make our voices heard during the comment period, with the administration, and through every avenue available until the rule is finalized later this year. It is clear that we have our work cut out for us. 

Application of America-first Approach to RVOs Well-intended, But Misses the Mark

The year 2016 was big for the sale of biodiesel plants in the U.S., with seven plants representing 256 million gallons changing hands. Most of this activity was the result of larger companies buying plants to expand their footprint. In 2015, five plants sold for much the same reasons.&nbsp; This year has been, and will continue to be, a year with increased uncertainty, given the political climate counterbalanced with increased blending requirements under the federal Renewable Fuel Standard and a California market under the low carbon fuel standard (LCFS) that continues to provide opportunities for biodiesel. So, what should you do if a potential buyer comes knocking on your door? Even more importantly, what should you do if you want to be an attractive target for your friendly neighborhood buyer? Here are some tips to help you get ready. 1. Compare yourself to plants that have already sold. Most potential buyers rank all of the biodiesel plants by how desirable they are to be acquired. Take a look at the key metrics for each plant acquired before, including gallon capacity, RFS and LCFS fuel type, profitability, feedstock costs and more. Based on key metrics, you can likely guess how you rank vs. what you know were attractive plants, and then work to improve those metrics. 2. Realistically assess your weaknesses and strengths. Every business owner sees their business through rose-colored glasses, but you must be brutally honest about where your plant may be weak. Is your feedstock cost too high, your market access too limited, your plant&rsquo;s energy cost too much? Find these weaknesses and improve them first.&nbsp; 3. Consider technological, operational and supply chain improvements. Plants that have been acquired generally offer potential technological, operational or supply chain advantages. For instance, the ability to produce renewable diesel is a strong advantage, as is the ability to improve the plant to produce high-margin coproducts. Plants that have been debottlenecked and operational efficiencies increased are seen as more attractive. Likewise, improving costs and efficiencies in your supply chain, from inputs to outputs, will make a plant a better acquisition target.&nbsp;&nbsp; 4. Cut the fat. This can be a touchy subject, but some plants retain workers or vendors who are less than efficient. Sometimes they have consultants getting paid for questionable work. A buyer will look at all of those expenses and will reduce the purchase price accordingly, and when the price is a multiple of your earnings or profits, any noncritical expense will cost you.&nbsp; 5. Consider who your buyers might be and realize that having only one buyer is a bad idea. Investment bankers have a saying, &ldquo;One is none.&rdquo; One buyer has significant leverage with you as you have only one other option, which is to not sell. Once a seller starts down the process to sell, it is usually hard for them to break off negotiations, even if the deal isn&rsquo;t the best. The buyer has little incentive to pay more, concede on important deal points or provide other accommodations to the sellers. Having another potential buyer adds urgency and competition, which usually increases price and gets the seller better terms. Many times, sellers think they cannot risk finding another potential buyer, or that no other potential buyer makes sense&mdash;especially in the case of a &ldquo;strategic buyer.&rdquo; However, there are almost always other options available if you are willing to look.&nbsp; Once you are approached by a potential buyer, it is almost always too late to improve your position. Buyers will want to move fast to get you to sign a letter of intent so that you are prevented from talking to other buyers and to get you committed. Don&rsquo;t sign a letter of intent until you have discussed it with experienced legal counsel and other advisors. Also consider hiring an experienced licensed broker or investment banker to help you get ready and sell for the most money possible. Author: Todd Taylor Attorney, Jux Law Firm 612-584-3406 ttaylor@jux.law

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What should you do if a potential biodiesel plant buyer comes knocking on your door? Even more importantly, what should you do if you want to be an attractive target for your friendly neighborhood buyer? Here are some tips to help you get ready.


5 Tips to Attract the Right  Buyer for Your Biodiesel Plant

The National Biodiesel Conference &amp; Expo is the place for the industry to come together to do business&mdash;and 2017 was no exception. Industry leaders from all segments of the biodiesel industry from coast to coast convened in San Diego in January for the annual event. &ldquo;Year after year our industry gathers together for educational sessions, federal and state policy insights, updates from OEMs and other stakeholder groups, and most importantly to jumpstart the year&rsquo;s business,&rdquo; said Doug Whitehead, National Biodiesel Board chief operating officer and conference director. &ldquo;Millions of gallons of biodiesel are bought and sold through the hundreds of business meetings facilitated throughout the week. Offering this platform for business to our industry is one of the great benefits NBB provides as a member organization.&rdquo; Highlighting the expo hall along with more than 50 companies showcasing their businesses was the annual Biodiesel Vehicle Showcase. This year&rsquo;s showcase included new diesel vehicles from Ford, General Motors, Nissan, John Deere and others. The event also served as a platform for announcements from GM, which brought a record-setting 20 models approved for B20 to market, and Ford&rsquo;s launch of a diesel option in the F150, the best-selling pickup in America for the past 40 years.
The 2017 event featured speakers including biodiesel industry experts and representatives from the U.S. EPA, USDA, National Renewable Energy Laboratory, Argonne National Laboratory, Natural Resources Defense Council, New York City, the Diesel Technology Forum, and the American Lung Association, just to name a few. &ldquo;NBB works hard every year to deliver top-notch speakers and the most relevant content to the industry,&rdquo; said Whitehead. &ldquo;This year was no different, and attendees can expect the same level of great information and business opportunities in 2018.&rdquo; The opportunity for business begins in 2018 as the event heads to Fort Worth, Texas, Jan. 22-25. Registration will open this fall at www.biodieselconference.com.

Business deals, standing-room-only educational sessions, and industry announcements again highlighted the 2017 National Biodiesel Conference & Expo.

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Biodiesel Conference a Cornerstone of Industry Business

The biodiesel industry continues to press lawmakers for action on the biodiesel tax incentive. It&rsquo;s a simple ask to reinstate the tax credit as a multiyear producer&rsquo;s credit, given the growth potential for the U.S. biodiesel industry, including jobs and economic benefits. &ldquo;It&rsquo;s simple,&rdquo; said Donnell Rehagen, CEO of the National Biodiesel Board. &ldquo;Biodiesel can continue to grow American jobs and prosperity in communities throughout the nation. Our members are making real investments and significant impacts across America, and they want to do more.&rdquo; Under the current structure of a blender&rsquo;s tax credit, foreign fuel imported and blended with petroleum diesel in the United States is eligible for the tax incentive. In 2016, importers brought in more than 1 billion gallons of fuel under the program, making up nearly a third of the U.S. market and harming domestic workers and manufacturers. The American biodiesel industry currently supports 64,000 jobs across the United States. Many are the highest-paying jobs in a county or region. Changing the structure of the tax credit would open the door for the industry to support an impressive 81,600 U.S. jobs and $14.7 billion in total economic benefit.&nbsp;
&ldquo;These aren&rsquo;t any jobs&mdash;they&rsquo;re great jobs,&rdquo; Rehagen said. &ldquo;But American biodiesel will not reach its full potential under the current regulatory framework. We need commonsense changes to ensure taxpayer dollars and programs are supporting American production and jobs.&rdquo; Along with ongoing meetings and visits to the Hill with NBB staff and governing board members, recent efforts to update the tax code have included a letter-writing campaign and a member fly-in timed around the NBB membership meeting in late June.

NBB staff, members, and industry leaders continue to press lawmakers on the biodiesel tax incentive.

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The American biodiesel industry currently supports 64,000 jobs across the U.S. Changing the structure of the tax credit would open the door for the industry to support an impressive 81,600 U.S. jobs and $14.7 billion in total economic benefit. 

Tax Credit Advocacy Keeps the Pressure on Washington

General Motors made headlines during the 2017 National Biodiesel Conference &amp; Expo when it announced eight new diesel vehicle options would be hitting the roadway this year, all approved for use with B20 biodiesel blends. &ldquo;This announcement is a cumulative effect of more than 20 years of testing and research led by the National Biodiesel Board on behalf of the entire industry,&rdquo; said NBB Technical Director Scott Fenwick. &ldquo;Without the support of the OEM community, there is no way our industry could have grown to what it is today. And support from OEMs wouldn&rsquo;t exist without the extensive technical data we are able to develop as an industry.&rdquo; GM is taking bold steps to expand the U.S. diesel vehicle market beyond its traditional stronghold in full-size pickups. The automaker is&nbsp; providing more options than ever before for customers to reap the benefits of fueling up with B20. With eight new diesel vehicle options hitting the roadways in the 2017-&rsquo;18 model year, GM now offers a full line-up of 20 different diesel models, from passenger cars to pickups and SUVs, to commercial vans and low cab forward trucks&mdash;all of which are approved for use with B20. &ldquo;GM is a shining example of a company that is getting it right by continuing to invest in new technology diesel engines to meet consumer demands for powerful, clean and fuel-efficient vehicles capable of running on clean, renewable B20 biodiesel blends,&rdquo; Fenwick said. &ldquo;We applaud GM for its efforts, and look forward to partnering with the automaker in its continued support for biodiesel as its diesel vehicle product line continues to expand.&rdquo; NBB technical programs are funded through resources competitively sought by NBB outside of membership dues dollars. These ongoing efforts ensure biodiesel&rsquo;s seamless use once it hits the marketplace and continue to answer questions from auto manufacturers on issues like stability, metals content, ASTM standards and more as diesel technology evolves.

GM introduced a lineup of 20 different diesel models, from passenger cars to pickups and SUVs. All are approved for B20, thanks to years of technical work led by NBB.

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NBB Technical Program Sparks GM 20 for B20 Announcement

The National Biodiesel Board has a staff team made up of experts in a wide range of fields with more than 180 years collectively at the organization, with even more experience directly involved in the biodiesel industry and from key contractors. This year, NBB welcomed new additions to the staff team and honored long-tenure milestones. &ldquo;Members of the National Biodiesel Board can be proud of the staff that serves the industry on their behalf,&rdquo; said NBB CEO Donnell Rehagen. &ldquo;We have some of the most competent, well-respected experts in their field working to advance the biodiesel industry and the interests of our members on a daily basis.&rdquo; During the June NBB Membership Meeting in Washington, D.C., the organization recognized milestone staff anniversaries. Along with a host of nationally recognized experts in their respective fields, the organization boasts a staff team that is uncharacteristically stable for a national association. &ldquo;To be part of an organization where half of the staff has been together for 10 years or more shows how dedicated this group is to this remarkable industry,&rdquo; said Scott Tremain, IT director at NBB, who was honored for 15 years of service at the organization. &ldquo;Not only is it a great place to work, it is clear that the biodiesel industry matters personally to all of us.&rdquo; Those recognized for more than 10 years of service include: &bull; Scott Tremain &ndash; IT Director, joined NBB in 2002. &bull; Tom Verry &ndash; Director of Outreach and Development, joined NBB in 2003. &bull; Donnell Rehagen &ndash; Chief Executive Officer, joined NBB in 2004. &bull; Desiree Hale &ndash; Accounting Specialist and BQ-9000 program staff liaison, joined NBB in 2005. &bull; April Yaeger &ndash; Chief Financial Officer, joined NBB in 2006. &bull; Anne Klempke &ndash; Accounting Specialist, joined NBB in 2006. &bull; Don Scott &ndash; Director of Sustainability, joined NBB in 2007. This year the organization welcomed two new team members and an addition to the executive team. NBB named Doug Whitehead as its chief operating officer in February. Whitehead joins the executive team after nearly 10 years in various roles with the organization, most recently as the director of operations and membership. New additions include Rosemarie Calabro Tully who joined the team as the director of public affairs and federal communications, and Brad Shimmens, the director of operations and membership. Tully comes to NBB from Capitol Hill where she was previously the press secretary for the Senate Energy and Natural Resources Committee. Shimmens comes to NBB with a background in finance, business development and community outreach. For a full list of the NBB staff team, their experience and roles, visit <a href="http://www.nbb.org/about-us/staff">www.nbb.org/about-us/staff</a>.

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Rosemarie Calabro Tully, NBB Director of Public Affairs and Federal Communications

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Brad Shimmens, 
NBB Director of Operations and Membership

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Doug Whitehead, 
NBB Chief Operating Officer

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NBB Brings Value to  Members Through Experience, Expanded Expertise

Longtime leader of Renewable Energy Group Inc., Daniel J. Oh, resigned from his position as president, CEO and member of the board July 3. REG&rsquo;s board of directors has appointed Randy Howard, a director on the company&rsquo;s board since 2007, as the interim president and CEO. Howard said REG had been discussing for some time the type of leadership needed to take REG to the next level. In June, following the purchase of land in Geismar, Louisiana, where the company owns a 75 MMgy renewable diesel production facility, REG announced plans to expand renewable diesel production in Geismar and at other locations where REG currently makes biodiesel, such as in Grays Harbor, Washington, and Seneca, Illinois. Howard said his extensive leadership experience in the petroleum industry will facilitate acceleration and implementation of REG&rsquo;s growth plans. The board of directors is beginning the search for a new CEO. &ldquo;They&rsquo;ve given me the reigns to run the company until we find a long-term leader,&rdquo; Howard said. West Coast biodiesel distributor and glycerin refiner Whole Energy Fuels Corp. has been awarded a $100,000 federal grant to study whether a lower-cost pathway is possible to make estolides&mdash;a type of lubricant&mdash;from biodiesel. The company received notification of the grant in June from the Small Business Administration&rsquo;s Small Business Innovative Research program. The Phase I grant will be finished by mid-2018, and Phase II will conclude mid-2020. Disbursement of the funds was expected in July. Unlike traditional methods, Whole Energy&rsquo;s process uses fatty acid methyl esters&mdash;biodiesel&mdash;as the base fatty acid, rather than oleic acid. &ldquo;On top of a lower cost, this reduces the need for a separate reaction later to esterify the fatty acid,&rdquo; said Atul Deshmane, president of Whole Energy. The research is being conducted at Whole Energy&rsquo;s lab in Anacortes, Washington. The German biodiesel quality management association AGQM has added four biodiesel oxidation stabilizers to its no-harm list of additives, following completion of the organization&rsquo;s 11th no-harm test round. The four antioxidants added to the list are Xtendra BL100 and BL200 (CFS do Brasil), Baynox Ultra (Lanxess Deutschland GmbH), and Pachem-BL (Pachemtech sp z o.o.). Antioxidants are added to B100 to help achieve the required stability of eight hours in an accelerated procedure used in standards testing. The no-harm test was developed by AGQM in cooperation with the petroleum industry to ensure no negative interactions between the stabilizer additives in biodiesel and the petroleum diesel, engine oil and other additives used. Now, a total of 51 antioxidant additives from 28 manufacturers have passed AGQM&rsquo;s no-harm test. A Tesoro oil refinery in Dickinson, North Dakota, has plans to coprocess renewable feedstock along with regionally sourced Bakken crude oil to produce a 5 percent renewable diesel blend. Construction is planned to begin in October with start-up expected in December. Tesoro acquired the Dakota Prairie Refinery in Dickinson last year. The facility can refine up to 20,000 barrels per day (BPD). To coprocess renewable feedstock, such as soybean oil and distillers corn oil, Tesoro plans to retrofit an existing 8,000 BPD diesel hydroheater and associated equipment. The company plans to market the renewable diesel blend locally in North Dakota. Tesoro has applied for a $500,000 grant through the state industrial commission&rsquo;s renewable energy program. The total cost of the project is $3.5 million. Tesoro selected Haldor Topsoe as the project&rsquo;s technology provider and Jacobs Engineering Group Inc. as engineering and procurement contractor. On Aug. 1, Tesoro changed its name to Andeavor to reflect the company&rsquo;s ongoing transformation. Solfuels USA LLC, a 40 MMgy multifeedstock biodiesel facility located in Helena, Arkansas, successfully began trial production in June, according to CEO Henri Bardon. Last December, two Singapore-based companies, Agritrade Resources Ltd. and Solfuels Holdings Pte Ltd., jointly acquired the former Delta American Fuel LLC soy biodiesel plant in Helena, Arkansas. With help from Frazier, Barnes &amp; Associates as the project&rsquo;s engineering partner and Process Systems Inc. as the construction contractor, Solfuels USA retrofitted the plant with multifeedstock technology to accommodate yellow grease, rendered animal fats, inedible corn oil and refined vegetable oil. Solfuels USA has engaged Weaver for Q-RINs auditing and EcoEngineers to help qualify the plant for participation in California&rsquo;s low carbon fuel standard (LCFS). The company expects the facility to be operating at full capacity this summer. The project created 15 plant jobs in Arkansas and four office jobs in Memphis, where the company is headquartered. The DieselSellerz, stars of Discovery&rsquo;s hit show Diesel Brothers, could be adding &ldquo;bio&rdquo; to their title after teaming up with Minnesota soybean farmers. That&rsquo;s because the DieselSellerz are partnering with the Minnesota Soybean Research &amp; Promotion Council to promote biodiesel. The four &ldquo;Diesel Brothers&rdquo; will take on the task of building a biodiesel truck for MSR&amp;PC, with the build set to air during a future episode on Discovery. The DieselSellerz are scheduled to make appearances Aug. 2 at Farmfest near Morgan, Minnesota, and at the 2018 MN Ag Expo in Mankato, Minnesota, where the Minnesota biodiesel truck will be unveiled. The partnership is part of a larger awareness campaign MSR&amp;PC is embarking upon to tout the benefits of biodiesel in Minnesota. Aemetis Inc. announced that its Universal Biofuels subsidiary in India has signed a three-year biofuels supply agreement with BP Singapore Pte Ltd. (BPS), the regional trading arm of BP Plc, which has an expanding biofuels portfolio. The Aemetis plant in Kakinada, Andhra Pradesh, has a capacity of 50 MMgy and is the first and only India biofuels producer approved under California&rsquo;s LCFS for delivery of tallow and waste oil biodiesel. In April, Aemetis filed a patent on process technology developed at the plant in Kakinada, India, for the conversion of a wide range of waste feedstocks into biodiesel. Universal Biofuels has also won its first contract to supply biodiesel to the India government-owned Oil Marketing Companies in a public tender process. The OMCs provide about 70 percent of the fuel consumed in India, and the diesel fuel market is growing at a rate of more than 5 percent per year.

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Business Briefs

The cornerstones of quality programs for B100 biodiesel are gas chromatography (GC) test methods for residual glycerides and free glycerin (FG), formalized as ASTM D6584 and EN14105.&nbsp; These are part of the legally enforceable fuel quality standards, D6751 and EN14214, used in commerce throughout much of the world. This article focuses on some results of ongoing research on impurities in biodiesel&mdash;their detection and quantification, discoveries made about their solubility, and implications outside the laboratory, which are truly surprising. Concerns about residual glycerides and glycerin emerged in the late 1980s during the development of commercial processing in Austria. Excessive levels were found to stimulate exhaust emissions containing the&nbsp; carcinogen acrolein. Deposits in fuel injector nozzles, on the bottom of storage tanks, and accumulated in blocked fuel filters (Ref. 1) were also discovered. This led to guidance on maximum allowable amounts of total and FG residuals in finished fuel. The first specification for FG was published in Austria by 1991 and was set at 0.03 percent. By 1997 it was reduced to 0.02 percent by a DIN standard, which was later adopted by both the U.S. and EU in 2002-&rsquo;03. The total free and bound glycerin were set at 0.24 and 0.25 percent, respectively. In 2012 a new specification for monoglycerides was added, targeting saturated monoglycerides indirectly because of their involvement in fuel filter obstruction incidents. Fortunately, technological solutions to reduce or eliminate these impurities are now known and implemented successfully by many biodiesel manufacturers. Questions about the reliability of the testing protocols have persisted, however. For example, over many years both ASTM and EN round robin testing have indicated a high level of uncertainty for both total glycerin and FG. And, numerous new analytical challenges have emerged. Early method development focused on relatively simple unused soybean and rapeseed oils as biodiesel feedstocks. Today, a host of new and chemically diverse oils are used that can increase the complexity of the GC fingerprint with added ester components, oxidation products and unknown substances. For FG, there are also no reference materials from the National Institute of Standards and Technology or AGQM to mark the performance of analytical methods or commercially available internal and external standards widely used in the industry. Despite these challenges, the many advantages of the GC approach still prevail. Earlier this year an article was published highlighting some of the research on data scatter and the solubility of FG by our group (Ref. 2). Any of many possible error sources can ruin data. But among our results was the discovery of heterophases of FG in several B100 samples at initial levels originally measured at substantially below 0.02 percent. When agitated, the FG levels sometimes increased by as much as 217 percent, to well over acceptable limits, clearly demonstrating that these dense heterophases can cause severe underestimates. Moreover, simple agitation was itself found in several samples to increase the data scatter. A promising new and readily implemented procedure was developed, consisting of: 1) controlled agitation, 2) increased sample size, and 3) a pretreatment. This combination greatly reduced both imprecision and underestimates due to the heterophases. The existence of heterophases at room temperatures and levels below 0.02 percent was previously unrecognized. Solubility defines a threshold for the formation and disappearance of these dense heterophases, which are problematic for the variety of reasons mentioned above. The solubility of glycerin, when measured in a purified FAME, was less than one-fifth of the previously published data, and fell even more with the addition of small amounts of moisture. This brought solubilities down to levels well-below 0.02 percent at 23 degrees Celsius. Additional factors affecting solubility include blend composition, temperature and interacting impurities. The high density of FG heterophases contribute to unwanted accumulations during storage and transport, and the high viscosity of dry FG phases can increase the risk for fuel-flow obstructions. Contamination of diesel fuels by heterophases is a not a new concern, but, in the case of FG, this has been ignored. For example, the test specification for sediment and water, based upon centrifugation of much larger samples, allows for 0.05 percent by volume of such phases, the equivalent of more than 0.06 weight percent glycerin. Other impurities with limited solubility, such as fatty acid soaps, catalyst residues, filter aids, water and more are likely to have similar influences on test procedures, particularly those that dictate the use of small sample aliquots. Adjustments to test methods will help restore confidence in test data. This renewed confidence will lead to a better appreciation of enforceable limits, and ultimately to an improvement in the consistency of fuel quality. References: 1. Mittelbach, M., Remschmid, C. (2004) Biodiesel&mdash;the comprehensive handbook. Martin Mittelbach, Graz, pp 119&ndash;120. 2. Heiden, R.W., Schober,S., Mittelbach, M. (2017) Bias and imprecision in the determination of free glycerin in biodiesel: the unexpected role of limitations in solubility. J Am Oil Chem Soc 94: 285-299. Author: Richard Heiden Owner, R.W. Heiden Associates LLC 717-299-6860 rwheidenphd@gmail.com

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Contamination of diesel by heterophases is a not a new concern, but, in the case of free glycerin, this has been ignored. Adjustments to test methods will help restore confidence in test data, which will ultimately lead to more consistent quality. 

New Findings in Free Glycerin Research Point to Improved Fuel Quality Testing Procedure

So many changes have taken place in the U.S. biodiesel industry over the past six months, but this constant flux is nothing new. It seems as if the moment one realizes the market has stabilized, it is bound for destabilization. Conversely, once market conditions appear to be at their worst, improvements become apparent. After Trump won the presidential election in November, speculation ran rampant on how this would affect the biodiesel markets, which made stellar recoveries in 2016 after two very bad years. With Trump&rsquo;s mixed message of support for the Renewable Fuel Standard juxtaposed with a new administration stacked with friends of Big Oil, uncertainty reigned once again. The lapsed biodiesel tax credit, the fifth expiration in its relatively short life, and talk of massive federal tax reform only fueled the fire of doubt. Meanwhile, low-cost imports have been eating into the domestic market share. As spring emerged, petitions were filed with federal agencies seeking duties on imports from Argentina and Indonesia, and while the outcome of those trade cases are yet uncertain, the preliminary evidence seems favorable for U.S. producers. However, before domestic producers had time to get too excited, the first RFS proposal under the Trump administration was released and sought a modest decrease in advanced biofuels in 2018 and to flatline biomass-based diesel in 2019 at 2.1 billion gallons&mdash;not the fresh start needed to reinvigorate an unsure market. Even though 2017 has started out rougher than many had hoped, there is a very good chance the year will end stronger than it started. Bills have been introduced in Congress to both reinstate the tax credit as a reformed domestic producers credit as well as a blenders credit. The U.S. Court of Appeals made a finding that the U.S. EPA misused its waiver authority to reduce renewable fuel volumes in its 2014-&rsquo;16 RFS final rule, which bodes well for future installments. Biodiesel advocates are rallying in the RFS comment period once again to demonstrate why EPA should increase its advanced biofuels and biomass-based diesel volumes in the final rule compared to its weak proposal. The trade cases will soon come to a conclusion. And in state policy news, the commissioners in charge of Minnesota&rsquo;s biodiesel mandate determined that, despite claims of inadequate blending infrastructure, the jump from B10 to B20 in the summer months will go into effect as planned May 1, 2018, once again making biodiesel history in the Land of 10,000 Lakes. Finally, the companies we showcase in our <a href="http://biodieselmagazine.com/articles/2516107/spotlight-here-to-serve-the-biodiesel-industry">Spotlight feature</a> on page 14, &ldquo;Here to Serve the Biodiesel Industry,&rdquo; have ridden the ups and downs of this market over the years and have not wavered in their commitment to this sector. Their perseverance is evident and their market share will be rewarded as a result. Thank you for your continued support for this energy movement that history will show is on the winning side of a noble fight. Author: Ron Kotrba Editor Biodiesel Magazine rkotrba@bbiinternational.com

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From the Summer 2017 print edition of Biodiesel Magazine, editor Ron Kotrba writes in his editor's note that, even though the year started out rougher than many had hoped, there is a very good chance the year will end stronger than it began.

2017 Summer Issue

Business Briefs

Business Briefs

Columns

Application of America-first Approach to RVOs Well-intended, But Misses the Mark

5 Tips to Attract the Right Buyer for Your Biodiesel Plant

New Findings in Free Glycerin Research Point to Improved Fuel Quality Testing Procedure

The Noble Fight

Featured

Breaking New Ground

Spotlight: Here to Serve the Biodiesel Industry

Contributions

CFIs Help Make Biodiesel Fit for Purpose, Price-competitive

2017 Summer Issue.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

Application of America-first Approach to RVOs Well-intended, But Misses the Mark

5 Tips to Attract the Right Buyer for Your Biodiesel Plant

New Findings in Free Glycerin Research Point to Improved Fuel Quality Testing Procedure

The Noble Fight

Featured

Breaking New Ground

Spotlight: Here to Serve the Biodiesel Industry

Contributions

CFIs Help Make Biodiesel Fit for Purpose, Price-competitive

2017 Summer Issue