Tokyo Settling down, specialization, population growth &hellip; you know the story. Densely populated areas created new challenges. Already in medieval ages, strolling through the city center was not exclusively romantic. Even back then, serious doubts were raised as to whether there is really no waste in nature when being hit by the contents of a chamber pot, emptied through the window above. Sewage systems were the logical next step, and the benefits of living in a city continued to greatly outweigh the drawbacks for many of us. Today, Tokyo-Yokohama is the largest megacity in the world, and emptying the chamber pots&mdash;with much progress having been made on those&mdash;of 38 million people is a Herculean task. Which reminds us that discharging fryer grease via the kitchen sink could reopen the stables of Augeas. Graz But let us look back two decades to a much smaller city in Austria. In 1994, Graz became one of the first cities to establish collection of used cooking oil (UCO) from households and restaurants. It was explained to people why UCO is a precious resource. The nearby S&uuml;dsteirische Energie und Eiweisserzeugung Genossenschaft biodiesel plant, built by BDI-BioEnergy International, was the first plant in the world to process UCO on an industrial scale. From then on, thousands of tons of fat waste were transformed into biodiesel every year. To close the recycling management, the public transportation bus fleet switched to UCO-based biodiesel, and if you were cycling behind a bus, you might have perceived a fine aroma of french fries. This success was possible because recycling has a long tradition in Austria, going back to the lack of resources after World War II. Waste paper, plastics, metal, glass, etc., had been collected separately for decades. Collecting UCO made sense for everybody as it helped avoid sewage clogging, saved 10,000 euros per year on public transportation fuel and reduced emissions. And so it was done. Moreover, not to forget about biodiesel technology, which had been developed by BDI in close cooperation with researchers from universities. All it took was a wide viewing angle. Hong Kong Back in 1999, it was the wide viewing angle of a restaurant visitor who noticed how fryer grease was being discharged in Hong Kong. Home to 6.5 million people, fried culinary delights have an especially large fan base there. The road was long, but what previously ended up being worthless grease-trap waste finally found its dedication in 2014, as feedstock for ASB Biodiesel Hong Kong. From the outset, the BDI design of this plant had waste-based materials in mind and newly developed technologies were implemented for esterifying high levels of free fatty acids (FFA) and distilling methyl esters to reduce sulfur. Therefore, 100,000 tons (30 MMgy) of waste-based biodiesel from ASB provide an important contribution to greenhouse gas (GHG) reduction and fewer particulate emissions every year. London As to clean air, if you followed recent media coverage, a more pleasant scent might also be what sewage workers desired in London when they discovered multiple &ldquo;fatbergs&rdquo;&mdash;one bigger, more sumptuous and bizarre than the next. While these fatbergs could have been prevented by establishing a UCO collection system, at least they now serve a purpose. Passengers of the red double-decker bus driving on the streets above for sure were not aware that these monsters help to keep them moving. A recently commissioned 75,000 tons (23 MMgy) biodiesel plant near Manchester, England, owned by Argent Energy, uses BDI equipment and is capable of converting even challenging resources into biodiesel meeting EN standards. And Next: Los Angeles Data published in 2002 by the National Renewable Energy Laboratory already showed a potential of 495 MMgy (1.65 million tons) of biodiesel per year that could be produced from urban waste grease in the U.S. Maybe not all of these waste greases are available today, but there is certainly enough to start the business. Crimson Renewable Energy LP is now realizing the potential of waste fats collected in the metropolitan areas of California and, in particular, from Los Angeles. Again, BDI is providing the technology to process this material, the latest of which is called RepCat. Curiosity Built the RepCat &ldquo;Can we do even better?&rdquo; was the initial question when RepCat, which stands for repeatable catalyst, was developed. Commissioning and process engineers at BDI went for a beer after work one day and discussed what a next-generation biodiesel plant should look like. On top of the wish list was an approach that avoids using&nbsp;&nbsp; corrosive catalysts such as sulphuric acid and caustic potash, which, process-wise, would work fine but require a certain choice of materials and additional safety features. Second was unlimited FFA in feedstock, relieving operators from the permanent attention required when doing traditional acid esterification. Then sales added that the new process must be super stable and robust, because trap grease is the new UCO and this feedstock will be different every minute. The scientific curiosity of the BDI R&amp;D team was awakened by such pie in the sky&mdash;and they accepted the challenge. Finally, after many highs and lows (not only in FFA level), an elegant concept was developed. RepCat is based on recycling a harmless catalyst while being able to use feedstock beyond traditional boundaries, with up to 100 percent FFA. In the RepCat reactors, esterification and transesterification with methanol take place simultaneously. It is a continuous process where feedstock and methanol react at a pressure above 50 barg (725 psig) and a temperature above 200 degrees Celsius (392 F) with help of the recyclable catalyst. Based on these conditions, a stable and robust process is given to handle fluctuating feedstock quality, even without time-consuming settling processes or expensive separators. The number of stages is defined by the FFA content in the feedstock, with a limit of 15 percent for a single-stage system and up to 100 percent for two stages. The reuse of the catalyst, which is synthesized on-site, is one of the main characteristics of the RepCat process, and it is only possible because this special catalyst is not sensitive to feedstock impurities or other usual troubles like catalyst poisoning. Downstream of the reactors, methyl esters and glycerin are distilled simultaneously in the BDI high-end distillation system, followed by a phase separation. The fine vacuum used during distillation considerably lowers the required temperature and avoids product degeneration and unwanted back reactions. In addition to the main rectification column, a short-path evaporator is installed as a squeezing stage to maximize product yield. Monoglyceride levels below 0.1 percent and a sulfur reduction from 100 parts per million (ppm) down to below 10 ppm are guaranteed for the methyl esters, leading to the highest biodiesel quality, surpassing ASTM D6751 or EN14214 requirements. As the glycerin is distilled simultaneously over top, a salt-free quality with a concentration above 95 percent is achieved, surpassing traditional concepts. No salts are generated in the whole RepCat process, and the byproduct treatment is reduced to a simple methanol recycling column. In a nutshell, RepCat achieves higher profitability in the production of biodiesel from waste materials because catalyst and acid costs are cut by 90 percent, income from glycerin is raised by up to 70 percent (due to better quality) and fewer staff is needed due to smooth operation of the continuous process. Again, it was the desire to do things better that was finally rewarded&mdash;with a compact process, unique in feedstock flexibility and a benchmark in production costs. Resources are Plenty &ldquo;Nature is our great teacher&mdash;and we the miserable students,&rdquo; poet Klaus Ender wrote. Let us not be too harsh. There are many examples of how evolving technologies made it possible to redefine waste as a resource, e.g., trap grease that was previously considered useless. The benefits of waste-based biodiesel range from unique GHG reduction over permanent savings on sewage maintenance to a reliable withdrawal of problematic organic material from the food chain. The economic and environmental advantages of waste-based biodiesel are evident and BDI&rsquo;s technology is fit for the purpose. All it takes now is a wide viewing angle. Authors: Hermann Stockinger, Stefan Divjak Vice President Global Sales, Technical Sales Manager BDI-BioEnergy International AG hermann.stockinger@bdi-bioenergy.com stefan.divjak@bdi-bioenergy.com

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CLOGGED ARTERIES: The London sewer system is plagued by multiple â€œfatbergs,â€� massive build-ups of grease that are being removed and turned into biodiesel. 

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FATBERG CONVERTER: Argent Energyâ€™s biodiesel plant near Manchester, England, is helping convert London fatbergs into on-spec biodiesel. 

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Nature knows no waste, but we all certainly do—at the end of the day we ourselves might be readily biodegradable, but the progress mankind made over the past thousand years undeniably came with a few side effects. 

Fat and the City

PQ Corp. Founded in 1815, PQ Corp. is a U.S.-based chemical company specializing in silica-derived products that work in a myriad of markets, including petrochemicals, paints, food and beverage, and biodiesel. PQ first entered the biodiesel space in 2008 with the acquisition of Ineos Silicas, a purchase the company had worked toward for years as Ineos Silicas was a major supplier to the edible oil refining industry. John Votta, global business director for PQ&rsquo;s silica adsorbents unit, says biodiesel producers are familiar with the trademarked Sorbsil silica products as purification agents for their oil feedstocks. &ldquo;In addition to manufacturing silica gel products with the trademarked name Sorbsil hydrogel adsorbents, we consult with prospective clients and assist in a purification strategy,&rdquo; Votta says. This includes trial design and assistance in dose optimization, performance assessment and filtration. &ldquo;PQ has a global supply position for Sorbsil silica to best serve prospective biodiesel clients,&rdquo; he adds. The Sorbsil hydrogel silicas are manufactured&mdash;not mined&mdash;in PQ&rsquo;s plants around the world. &ldquo;Product properties are tightly controlled for best performance for our biodiesel customers,&rdquo; Votta says. The Sorbsil silica gels are amorphous, porous, pure silica powders. &ldquo;We build into the silica products high-surface-area chemistry with designed pore size so oil impurities such as soaps and phospholipids can be adsorbed and removed from the oil,&rdquo; says Neil Miller, business development manager with PQ. &ldquo;The silica surface is hydrated and surface silanols are present to interact and bind with contaminants. The silica and contaminants are then filtered for complete removal, leaving behind the purified oil feedstock or biodiesel fuel.&rdquo; Sorbsil products can be used to both clean up feedstock to remove soaps, phospholipids and trace metals&mdash;allowing lower-cost feedstock to be used&mdash;and in post-transesterification to help remove some impurities left from processing, such as traces of methanol, mono and diglycerides, and sodium soaps. The two primary Sorbsil products used in biodiesel processing are Sorbsil R40F and Sorbsil R92 silica hydrogels, the latter being further processed for improved absorbance efficiency, Miller says. &ldquo;The R92 product is used to adsorb higher levels of soaps, phospholipids and trace metals,&rdquo; he says, adding R92 is more commonly used in biodiesel processing over R40F. PQ&rsquo;s biodiesel clientele is a mix of both large and small producers, but use of its silica adsorbents is often by those processing multiple feedstocks. &ldquo;The ever-increasing move to more stringent fuel specifications will place extra demands on the biodiesel producer,&rdquo; Votta says. &ldquo;The use of Sorbsil silica hydrogel will assist the producer in meeting these demands in a cost-effective way.&rdquo;&nbsp; To keep up with the changing industry, PQ has initiated laboratory expertise and is expanding its overall oil processing group. &ldquo;We are focusing on customers&rsquo; specific needs and our silica expertise to address new issues as they arise in ever-changing oil quality feedstock,&rdquo; Miller says. &ldquo;The industry is continuing to show the need for improved biodiesel quality. It is our goal to meet and exceed these needs.&rdquo;&nbsp;&nbsp; CFCS The presence, detection and treatment of sterol glucosides in biodiesel has been an ongoing area of investigation for a decade. Depending on feedstock and processing, it is possible for sterol glucosides to be present and solubilized in B100. The fuel can even pass specifications. According to Kevin Harrison, director of U.K.-based Contaminated Fuel Conditioning Services Ltd., measurement is often not sensitive enough to detect residual sterol glucosides in the refined fuel. Under certain conditions, they can come out of solution and cause filter plugging issues. Once sterols come out of solution, they cannot solubilize back into the fuel. &ldquo;We became aware of the problems with sterols and B100 through my involvement with maintaining and providing properly certified fuel and systems for the National Health Service and, as a consequence of engine shutdowns, it was found that sterol glucosides had blocked the filters,&rdquo; Harrison says. &ldquo;We then approached Coval to see if they could adjust the current formulation for Aquasolve to solve this problem.&rdquo; Harrison says Aquasolve has a unique ability to control water in fuel. After adjusting the formula, Coval created the Biosolve formula and CFCS became Coval&rsquo;s industrial representative in the various applications of its technology. &ldquo;Coval&rsquo;s technology uses a complex series of compounds including surfactants to fully stabilize water in fuel by solubilizing the water into the fuel permanently,&rdquo; Harrison says. &ldquo;It is therefore fully biostatic and has developed numerous, well-documented benefits.&rdquo; Harrison says the B100 must be treated with Biosolve as soon after refining as possible. &ldquo;We found the addition of this new compound is essential before the sterols start to crystalize and become an untreatable contaminant,&rdquo; he says. &ldquo;We established a protocol to allow for biofuel to be treated as soon after production as possible to prevent fuel degradation in both storage and transportation. Good fuel husbandry is particularly essential.&rdquo; CFCS and Coval conducted a six-week trial in the U.K. with NHS and its use of biodiesel in CHP plants after realizing fuel filter life was erratically reduced. The trial, which combined use of Biosolve and proper filter configuration, brought two issues to the forefront&mdash;the age and quality of the B100 provided by the producer and supplied by the distributor, and the need to have the correct filter systems in place. As a result of the NHS trial, the proper protocol in both fuel management and filter configuration was confirmed. After tank cleaning and preparation, the fuel from the refinery should be filtered during offload to storage tanks and upload to tankers through a minimum 5-micron Absolute Bag filter system. The on-engine filtration system requires a minimum 20-inch housing supporting a 10-micron and 5-micron bag filter system to be changed every three months&mdash;standard OEM filters are not compliant with B100 regulations. Finally, annual tank cleaning is recommended.
Amerigreen Energy Amerigreen Energy (AMG), the Lancaster, Pennsylvania-based energy wholesaler, has been supplying American-made biofuels since 2004. Several years ago near Harrisburg, Pennsylvania, AMG installed the second injection-blending facility in the U.S. capable of inline biodiesel blending. Today the company provides the Mid-Atlantic and Northeastern markets with biofuels, refined products, propane, electricity, natural gas and more to its growing network of customers. As a BQ-9000-certified marketer, AMG&rsquo;s customers are terminal stockholders and retail distributors. &ldquo;BQ-9000 confidently allows us to stand behind our product from a quality perspective,&rdquo; says Jason Lawrence, AMG&rsquo;s vice president of renewables fuels. &ldquo;ASTM is critical and we strictly adhere to it. We have additional focus on parameters contributing to cold-flow operability. Our climate region and commitment to customers require it.&rdquo; &ldquo;We connect the dots in the supply chain,&rdquo; says CEO Steve McCracken. &ldquo;Our logistical advantage allows us to buy from biodiesel producers across the country and cost-effectively supply it to market. Our roots are in the retail fuel distributor business and we occupy a unique place in the supply chain. Retail and commercial delivery logistical experience allows us to fill a gap. We break up massive volumes and deliver material to local distribution tanks. Our relationships with our production and hauling partners make it possible for us to manage all tank sizes, from 20,000 gallons to 20,000 barrels. We&rsquo;re proud to have a blemish-free record to keep blended product flowing at terminals and distributor racks amidst unexpected seasonal and market demand spikes.&nbsp; It&rsquo;s a testimony of our valuable relationships with terminal staff, producers and haulers. It&rsquo;s teamwork at its finest.&rdquo; McCracken says biodiesel has been a change agent for AMG and its customers to grow into what they are today. &ldquo;Our experience provides the platform to work with fuel distributors to help them connect biodiesel&rsquo;s benefits to the value they represent to their marketplace,&rdquo; he says. &ldquo;Biodiesel doesn&rsquo;t do it on its own. Fuel distributors are able to use their biodiesel story to ignite change in their business. Sure, they sell a commodity, but their value and customer commitment go far beyond price. We work to help them embrace biodiesel&rsquo;s benefits to tell that story.&rdquo; AMG prides itself in supplying 100 percent American-made energy when possible. &ldquo;We educate every distributor about domestic supply,&rdquo; McCracken says. Mike Devine, AMG&rsquo;s Northeast sales and marketing representative, says AMG offers an American Fuels Program. &ldquo;We can assure it in the market at specific terminals,&rdquo; Devine says. &ldquo;We have customers who&rsquo;ll pay extra for domestic biodiesel or petroleum products.&rdquo; AMG is more than an energy wholesaler. It provides outreach, education, RINs management and logistical support&mdash;but the real value is unmatched customer service. &ldquo;Our customers aren&rsquo;t a market short,&rdquo; McCracken says. &ldquo;They&rsquo;re customers and deserve to be treated as such. We help them be leaders in their market. It&rsquo;s about personal relationships and trust, with biodiesel as that agent of change.&rdquo; Western Iowa Energy Western Iowa Energy, a 45 MMgy BQ-9000-certified biodiesel producer in Wall Lake, Iowa, made headlines in late 2017 when it acquired the 15 MMgy Agron Bioenergy in Watsonville, California. Western Iowa Energy&rsquo;s Wall Lake plant was built in 2005-&rsquo;06 as a collaborative effort between Crown Iron Works, Todd and Sargent, and Renewable Energy Group Inc., says Mike Altmanshofer, vice president of operations for Western Iowa Energy and Agron Bioenergy. The facility started biodiesel production in May 2006 as a 30 MMgy plant. Brad Wilson, president and general manager of both companies, says the Wall Lake plant has undergone major improvements over the years, including tank farm expansions in 2012 and 2014, and a process rate increase in 2014 that took production capacity from 30 to 45 MMgy, coupled with a biodiesel load-out capacity increase to accommodate moving the additional gallons. Wilson says Western Iowa Energy stays on top of market changes and the continually fluctuating industry by continuing to optimize production processes and efficiencies to maintain its low-cost producer status. Western Iowa Energy&rsquo;s Wall Lake facility is a multifeedstock plant, utilizing animal fats, distillers corn oil, used cooking oil, canola oil and soybean oil, changing its inputs based on market demand and price, Wilson says. &ldquo;We are built with flexibility by design,&rdquo; he adds, &ldquo;so it very easy to adapt to any market changes. And we work very closely with the National Biodiesel Board on several fronts and take advantage of its offerings, so we usually know about any changes before they actually happen.&rdquo; Altmanshofer provides Biodiesel Magazine a brief overview of the Wall Lake biodiesel production process. &ldquo;Feedstock is received and unloaded into one of three 500,000-gallon feedstock tanks, depending upon the feedstock,&rdquo; he says. &ldquo;Then, the feedstocks with high free fatty acids (FFA) are pretreated to remove FFA, metals and other impurities that would interfere with transesterification, and they are then sent back out to an intermediate tank.&rdquo; Altmanshofer says refined feedstocks such as RBD soybean oil are brought directly into the process. &ldquo;Our process is a simple transesterification system utilizing a water-wash-based system and full methanol recovery,&rdquo; he says. &ldquo;After the biodiesel is produced, it is cold filtered and sent out to one of five 500,000-gallon biodiesel storage tanks. From these tanks, product is loaded out either via rail or truck, depending upon the customer&rsquo;s request.&rdquo; Wilson says the negotiations with Agron Bioenergy started in August 2017. &ldquo;We made this acquisition to be more active in the California Low Carbon Fuel Standard&nbsp; market,&rdquo; he says. &ldquo;And it fits perfectly with our business model to grow Western Iowa Energy members&rsquo; investments.&rdquo; The assets of the acquisition include a 15 MMgy biodiesel refinery in Watsonville, California, and patents encompassing Agron Bioenergy&rsquo;s centrifuge system and distillation steps to eliminate water-washing in biodiesel production. Agron Bioenergy was founded in 2012. Wilson says plans for the assets include putting them to use producing high-quality BQ-9000-accredited biodiesel and providing a low-cost fuel source in California. Wilson says no other acquisitions are in the works at this time. When asked what technology he thinks will be &ldquo;the next big thing&rdquo; in biodiesel production, Altmanshofer says, &ldquo;I honestly don&rsquo;t see any next big thing. There are several other processing techniques in the industry including distillation, solid catalysis, glycerolysis, enzymatic and several other high-pressure, high-heat methods, all with their own issues and drawbacks. Until the industry receives some measure of assurance of longevity and growth of renewable volume obligations under the federal Renewable Fuel Standard, the continuance of new developments may be on hold.&rdquo; Western Iowa Energy&rsquo;s competitive advantages in the cutthroat business of biodiesel include zero debt, a healthy balance sheet and the reinvestment of roughly $20 million back into its plant through various fixed asset additions. &ldquo;Our original member investors have been paid back more than their original investment by way of distributions,&rdquo; Wilson says. Other advantages include being a small, locally owned business, having Archer Daniels Midland Co. as its trusted marketing partner, and being fortunate enough to retain employees who are engaged and take ownership in the job. When people hear the name Western Iowa Energy, Wilson says, &ldquo;We want them to think two things,&rdquo; he says. &ldquo;A low-cost fuel provider and the best place to work.&rdquo;

TIGHT SHIP: Kevin Bieret, operations manager for Western Iowa Energy, inspects columns during routine maintenance of the 45 MMgy plant in Wall Lake, Iowa.

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AMG moved 40 million gallons of biodiesel last year and views biodiesel as an agent of change for its customers.  

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The left jar shows wispy trails of sterols, whereas the right jar, treated with Biosolve, is clear and stable.  

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Western Iowa Energy employees continue to optimize processes and efficiencies in Wall Lake, Iowa, and plan to continue that ethic at Agron Bioenergy.  

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In 2014, Western Iowa Energy expanded its Wall Lake, Iowa, plant from 30 to 45 MMgy.

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Biodiesel Magazine spotlights four companies—a respected producer, 
a service-oriented wholesaler, a 200-year old chemical firm, and a fuel conditioning company—that enable biodiesel's role as an effective change agent. 

Biodiesel Agents of Change

NEW OLD PLANT: Built in 1996, AGPâ€™s Sergeant Bluff, Iowa, plant was the nationâ€™s first commercial-scale biodiesel facility. The company completed expansion in July, doubling biodiesel production from 30 to 60 MMgy.

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Continued investment and expansion took place in the U.S. biodiesel sector throughout 2017, despite rising political uncertainty and a lapsed tax credit. Here is an overview of some of the activity, plus a special sidebar story from Joe Jobe. 

Against the Odds

Twenty-five years. A quarter century of biodiesel. Two and a half decades since the National Biodiesel Board and the commercial biodiesel industry got their start in the U.S. We&rsquo;ve come a long way from those early days when the entire industry fit around a single boardroom table. Reflecting on our relatively brief time as an industry reveals some truly remarkable achievements that serve as building blocks for where we are and where we intend to go. The biodiesel industry has been built from visionary leaders throughout our history. In the early days, NBB started as the National SoyDiesel Development Board in 1992 after the Missouri Soybean Merchandising Council&rsquo;s earlier study at the University of Missouri demonstrated biodiesel had potential as a diesel fuel replacement. They joined other state soybean groups to create the organization designed to develop an industrial outlet for the vast surplus of soybean oil paired with a vision for improving American energy security. Recognizing the value that diversity would bring to the fledgling industry, the name was changed to the National Biodiesel Board in 1994. The first decade of the association focused millions of dollars of investments from the soybean checkoff into research and development designed to make this fats-to-fuels dream a reality. At a time when few producers had the means individually, NBB led efforts on engine durability, compatibility and emissions testing. A commercial specification was developed, passed and refined at ASTM. And study after study demonstrated biodiesel&rsquo;s viability. Possibly most important was NBB&rsquo;s health effects testing, a million-dollar project on its own, necessary to make biodiesel a legally registered fuel with the U.S. EPA and compliant with the Clean Air Act. From its publication in 2000 to when the data became public information in 2015, NBB members were able to gain access to NBB&rsquo;s Tier I and Tier II health effects data as a benefit of membership, making their fuel legal to sell without each individual producer conducting his own million-dollar testing to comply with the law. Biodiesel became one of the most-tested fuels in the world because of the robust technical program carried out by NBB in the 1990s. These efforts became the building blocks of growth. After millions of dollars of investment, there was still only a small half-million-gallon annual market for biodiesel by 1999. Now that the fuel was proven and a small group of visionary entrepreneurs were making the industry a reality, it was time to grow the market. The 2000s were dominated by landmark policy efforts as momentum built and more commercial producers came online. Soybean checkoff and federal grant dollars continued to support research, education and promotion efforts as the growing pool of membership dues resources were laser-focused on government affairs efforts at the state and federal level. After years of groundwork, the federal biodiesel tax incentive was first enacted as part of the American Jobs Creation Act of 2004. It was signed into law by President George W. Bush the next year, establishing a federal tax incentive for biodiesel that helped level the playing field, spurring the next wave of growth. The industry increasingly saw the need for strong federal policy and NBB doubled down on its efforts, establishing a full-time presence by opening our Washington, D.C., office in 2006. The National Biodiesel Political Action Committee was also launched in 2007 and the industry produced 500 million gallons of fuel that year. The industry continued its trajectory of growth and the successes of the 2010s have largely revolved around the Renewable Fuel Standard. RFS2 was the revised version of the law that included a carve-out for advanced biofuels and biomass-based diesel, implemented for the first time in 2010. This and other successes propelled us across the 1-billion-gallon threshold for the first time as an industry in 2011. Other achievements have included numerous state policy victories, successful partnerships with equipment manufacturers, continued testing and fuel quality improvements, a national advertising campaign branding biodiesel as an advanced biofuel, extensive sustainability initiatives, and so much more. When looking back over the past 25 years, the list of challenges we&rsquo;ve faced and obstacles we&rsquo;ve overcome as an industry is remarkable. Many other industries our size would have folded under the pressure, but I&rsquo;m convinced we have succeeded because of each and every individual that makes up this great industry. Your vision, strength, resilience and love for what you do has carried us all to where we are today, and I can&rsquo;t wait to see what we can achieve over the next 25 years! Donnell Rehagen CEO National Biodiesel Board

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The U.S. biodiesel industry has come a long way from those early days when the entire sector fit around a single boardroom table. Reflecting on our relatively brief time as an industry reveals some truly remarkable achievements. 

NBB Celebrates 25 Years of Growth, Milestones, Challenges

The National Biodiesel Board is a member-driven organization. Each year, the membership elects representatives from the industry to serve on the board, helping shape the direction of the industry. The board reflects the wide range of member companies from feedstock operations to producers. &ldquo;The National Biodiesel Board is the sole organization representing American-made biodiesel&rsquo;s entire value chain and renewable diesel interests,&rdquo; said NBB CEO Donnell Rehagen. &ldquo;Our strong team of leaders from all sectors of the industry continue to move this American-made fuel forward. We look forward to continuing our efforts to secure strong markets for America&rsquo;s advanced biofuel and the nearly 64,000 jobs we represent.&rdquo; In November, NBB members gathered in Washington, D.C., to advocate for the industry on Capitol Hill, conduct association business and elect industry leadership during the biannual NBB membership meeting. NBB members voted to fill eight board member spots for two-year terms: &bull; Kent Engelbrecht, ADM &bull; Ron Heck, Iowa Soybean Association &bull; Steve Nogel, Ag Environmental Products &bull; Ryan Pederson, North Dakota Soybean Council &bull; Harry Simpson, Crimson Renewable Energy LP &bull; Paul Soanes, RBP Port Neches LLC &bull; Robert Stobaugh, Arkansas Soybean Promotion Board &bull; Chad Stone, REG Inc. Greg Anderson, Jennifer Case, Mike Cunningham, Tim Keaveney, Bob Morton and Mike Rath continue to serve on the board. The board also elected its officers with Kent Engelbrecht continuing to serve as chairman, Mike Cunningham as vice chairman, Greg Anderson as treasurer and Chad Stone as secretary. NBB Leverages Dues Dollars Greater Than 3 to 1 One of the greatest values of NBB membership is the ability of the organization to leverage membership dues dollars with outside funding resources. Less than a third of NBB&rsquo;s total revenue last year came from member dues dollars. For every $1,000 in membership dues paid, NBB members get nearly $3,500 in revenue to support biodiesel through the trade association&rsquo;s ability to secure outside funding from state and national soybean checkoff programs, federal grants and other nontraditional income. Every year, NBB staff submits project proposals for funding to more than 23 state and the national soybean checkoff organizations to fund biodiesel technical, communications, sustainability and education work on behalf of the industry. These projects are critical to industry efforts and couldn&rsquo;t be completed without outside investment. This allows membership dues to be highly focused on advancing government affairs efforts at the federal and state levels. &ldquo;Gathering resources from all sectors of the industry and beyond, and pooling them in one place where they can be strategically focused on the top priorities of our industry, is a tremendous benefit to the advancement of our industry,&rdquo; said NBB Chief Operations Officer Doug Whitehead. &ldquo;Being a member of NBB offers a critical seat at the table when it comes time to direct those significant resources.&rdquo; Members provide their input on industry priorities through a number of avenues including the Biodiesel Technical Workshop, the fall NBB membership meeting, NBB standing committee discussions including regulatory, trade, technical and marketing committees, and an extensive online survey. All of this input comes together and defines where staff will spend time and resources during the year. Get Engaged, Join Today To learn more about NBB, the organization&rsquo;s structure, its financial make-up, and how to join or simply get more involved, contact Director of Operations and Membership Brad Shimmens at 800-841-5849 or at bshimmens@biodiesel.org. For NBB&rsquo;s mission and vision statements, staff contacts and other details, visit www.nbb.org.&nbsp;

The NBB Governing Board reelected Kent Engelbrecht, ADM, as 2018 chairman.

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Fifteen representatives from member companies are elected by the membership to represent all segments of the industry. 

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One of the greatest values of membership in the National Biodiesel Board is the ability of the organization to leverage membership dues dollars with outside funding resources. Less than a third of last year's revenue came from member dues dollars. 

NBB Members Elect Leadership, Collaborate, Leverage Resources

Despite the robust efforts of the industry, the U.S. EPA failed to grow the biomass-based diesel volumes in the required volume obligations (RVOs) under the Renewable Fuel Standard that were recently released. &ldquo;EPA Administrator Pruitt has disappointed the biodiesel industry for failing to respond to our repeated calls for growth,&rdquo; said Doug Whitehead, chief operating officer of the National Biodiesel Board. &ldquo;These flat volumes will harm Americans across several job-creating sectors&mdash;be they farmers, grease collectors, crushers, biodiesel producers, truckers, as well as consumers. We look forward to working with EPA collaboratively as we continue to move the industry forward.&rdquo; Since the July proposal and the September Notice of Data Availability, the biodiesel industry engaged in aggressive advocacy for growth in the volumes. In addition to an extensive series of meetings with administration officials, NBB issued robust data sets, a campaign-style video, a full-page advertisement in The Washington Post, a letter to President Trump from NBB&rsquo;s leadership, and NBB joined a broad coalition letter with other biofuels advocates. The association led several letter-writing and social media campaigns, as well as assisting with the efforts of governors, senators and NBB members&nbsp; to raise the volumes. In November, nearly 100 NBB members were in Washington, D.C., to meet with their elected officials on Capitol Hill. &ldquo;We can&rsquo;t thank our members and our biodiesel champions at the state and federal levels enough for their tireless advocacy and education efforts,&rdquo; Whitehead said. &ldquo;The biodiesel industry has consistently exceeded EPA&rsquo;s standards&mdash;despite the agency underestimating the volumes each year. These volumes are important for setting a baseline&mdash;and our industry will again surpass these low expectations&mdash;but the failure to increase volumes will inhibit continued growth and investments.&rdquo; On Nov. 30, EPA announced requirements of 4.29 billion gallons of advanced biofuels for 2018 and 2.1 billion gallons of biomass-based diesel again for 2019. The July proposal recommended only 4.24 billion gallons of advanced biofuels and 2.1 billion gallons of biomass-based diesel&mdash;a reduction and a flatline, respectively, from last year&rsquo;s standards.

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RFS Volumes Fall Short Despite Industry Efforts

The Discovery Channel&rsquo;s documentary Hot Grease made its official debut this fall bringing the story of the biodiesel industry to a national audience after nearly two years in the making. &ldquo;I don&rsquo;t know if the film crew fully appreciated the scope of what they were stepping into when biodiesel first piqued their interest,&rdquo; said Jessica Robinson, director of communications at the National Biodiesel Board. &ldquo;Not surprisingly, biodiesel&rsquo;s story&mdash;the amazing entrepreneurs and dedicated workers who make that story so powerful&mdash;pulled them in. Hot Grease shares a glimpse into that story with Discovery viewers, showcasing what the industry is about and what we&rsquo;re up against.&rdquo; NBB received a phone call from producers Sam Wainwright Douglas, Paul Lovelace and Jessica Wolfson in early spring 2016 with questions revolving around a story of used cooking oil being stolen from restaurants. One question led to another and each phone call led to additional follow-up. By the time it was over, the film was a full-on biodiesel industry feature with footage from NBB member meetings and events, as well as interviews with several familiar faces in biodiesel, including Robinson; former U.S. Sen. Byron Dorgan, D-North Dakota, and Gene Gebolys, founder and CEO of World Energy. &ldquo;Biodiesel is a solution to many of our country&rsquo;s biggest issues&mdash;job losses, air pollution and energy insecurity,&rdquo; said Dorgan. &ldquo;This fuel embodies the ingenuity and entrepreneurship that this nation is all about, so I&rsquo;m glad that there is now a new way to elevate biodiesel awareness with the American people.&rdquo;&nbsp;&nbsp; The Discovery Impact documentary Hot Grease debuted Nov. 16 on Discovery, following its premiere at the prestigious DOC NYC festival. The film is now available on Discovery Go and Discovery On Demand. Directors Douglas, Lovelace and Wolfson are set to appear on the main stage at the National Biodiesel Conference &amp; Expo in January.

NBB Communications Director Jessica Robinson is interviewed by the Discovery Channel documentary film crew. 

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The Discovery Channel's documentary Hot Grease made its official debut this fall. Directors Sam Wainwright Douglas, Paul Lovelace and Jessica Wolfson are set to appear on the main stage at the National Biodiesel Conference & Expo in January.

Discovery Channel Documentary Spotlights Biodiesel

The National Biodiesel Board Fair Trade Coalition case regarding subsidized biodiesel imports from Argentina and Indonesia continues to move forward to help level the playing field for the domestic biodiesel industry. &ldquo;The biodiesel industry has been injured for the past several years due to unfairly traded imports from Argentina and Indonesia,&rdquo; said Doug Whitehead, chief operating officer of the NBB. &ldquo;We appreciate that these unfair subsidies are being addressed, so we can fix this particular obstacle to continued growth in the domestic industry.&rdquo;&nbsp; On Nov. 9, the U.S. International Trade Commission held a public hearing in Washington, D.C., where members of the coalition testified before the ITC commissioners. The ITC determines whether the domestic industry has been injured by reason of such unfairly traded imports. The ITC issued its final injury vote on subsidies Dec. 5, determining in a 4-0 vote that the U.S. biodiesel industry is in fact materially injured by biodiesel imports from Argentina and Indonesia, which the U.S. Department of Commerce previously determined are subsidized. As a result of the ITC&rsquo;s affirmative determinations, the commerce department will issue countervailing duty orders on imports of biodiesel from Argentina and Indonesia. &ldquo;Though not yet over, this is a step forward in ensuring the product that supports nearly 64,000 jobs is not undercut by unfair imports,&rdquo; Whitehead said. &ldquo;These surging, low-priced imports prevented producers from earning adequate returns on their substantial investments and caused U.S. producers to pull back on further investments to serve a growing market.&rdquo; The coalition filed both antidumping and countervailing duty petitions with the commerce department. Antidumping petitions address whether imports coming into the U.S. are priced below fair value. Countervailing duty petitions address subsidies provided by foreign governments benefiting imported product. The commerce department is scheduled to issue final antidumping determinations in early January, which would be followed by another ITC injury vote as it relates to dumped imports

Biodiesel Trade Cases Continue to Advance

Nancy Foster, President, National Renderers Association, Alexandria, Virginia &ldquo;Upon joining the National Biodiesel Board four years ago, it was clear to me how important biodiesel is to our industry. NRA decided to become more proactive and our board of directors voted to &lsquo;support the success of biodiesel/renewable diesel and the value of RFS.&rsquo; NRA also supports other incentives such as federal tax credits. We appreciate NBB&rsquo;s leadership out front in support of a strong biodiesel industry and its vision for the industry&rsquo;s growth in the future. NRA looks forward to continued partnership with NBB in legislative work on Capitol Hill, legal advocacy and regulatory comments to EPA. The biodiesel industry needs NBB&rsquo;s continued strong leadership and we value our membership.&rdquo; Tyson Keever, CEO, SeQuential, Portland, Oregon &ldquo;NBB&rsquo;s support has been instrumental in defending the low carbon fuel standards in California and Oregon. With its help, we&rsquo;ve been able to secure the standards in both states, providing market assurance for us and other biodiesel producers in the region. We look forward to continued partnership as we work to create consistent policies that promote wide adoption of biodiesel across the West Coast.&rdquo; Woodrow Eaton, CEO &amp; General Manager, Blue Ridge Biofuels, Asheville, North Carolina &ldquo;Blue Ridge Biofuels has been a proud member of the National Biodiesel Board since 2005. The NBB&rsquo;s leadership in the areas of policy, fuel quality and outreach, among others, has been invaluable to the biodiesel industry as a whole. Over the years, the NBB has assisted Blue Ridge Biofuels with many different aspects of operating a successful biodiesel operation and we are grateful for NBB&rsquo;s support.&rdquo;

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NBB Membership Testimonials

Renewable Industries Canada announced in December the launch of a public awareness campaign on the environmental and economic benefits of biofuels mandates. Dubbed &ldquo;Facts Don&rsquo;t Lie,&rdquo; the campaign is designed to educate the public on the role of biofuels in reducing carbon emissions from transportation. Given that renewable fuels such as ethanol and biodiesel are the fastest and easiest way to reduce greenhouse gases in the transportation sector, the campaign will explain why now is the time to increase mandates for renewable content in Canada&rsquo;s fuels. The RICanada campaign, which calls for the federal government to increase mandates for renewable content in fuels, will feature print and digital ads in Ottawa and key markets across Canada. Air Liquide Engineering &amp; Construction has signed a new agreement with Cargill for engineering and supply of a world-scale biodiesel plant in Wichita, Kansas. The state-of-the-art biodiesel plant is planned to start operation in January 2019 and will produce 60 MMgy. The agreement is another step in the long-term partnership between the two companies. Air Liquide Engineering &amp; Construction has already built six biodiesel plants for Cargill worldwide. Air Liquide Engineering &amp; Construction&rsquo;s leading-edge Lurgi biodiesel technology offers a complete oleochemical production chain and provides customers with a range of plant options designed to maximize efficiency, improve the quality of the product, and help minimize operating costs and environmental footprint. Algae growth and carbon dioxide sequestration company PHYCO2 is collaborating with Michigan State University under a $1 million U.S. DOE grant to develop technologies to transform the efficiency and operating costs of reducing power plant carbon dioxide emissions and create marketable chemicals. The process will utilize PHYCO2&rsquo;s algae photobioreactor (APB) technology to grow algae, and a new chemical conversion process to create high-efficiency, absorbent chemicals for carbon dioxide reduction, while using low energy and costs. If successful, the PHYCO2 APB and MSU/DOE technology then will be commercialized in this process and offered to emitting manufacturers and power plants across the U.S., minimizing costs for emission reduction. PHYCO2 will be utilizing its APB technology throughout this three-year cross-disciplinary effort to grow algae from carbon emissions, and then using algae-derived chemicals as a high-efficiency absorbent for greenhouse gases. The project will take place at the T.B. Simon Power Plant on MSU&rsquo;s campus. Deutz AG has approved the latest generation of its entire TCD engine range for operation with alternative fuels, including biodiesel and renewable diesel. While electrification is a viable option in the low-power output range, there is no suitable replacement yet for the combustion engine as the primary source of power in medium- and heavy-duty applications. And while Deutz says electrification can improve efficiency as part of a hybrid system and allows for a downsizing of the combustion engine, there is still considerable potential for improving the ecofriendliness of conventional engines by choosing different fuels. Deutz now approves the engine series TCD 2.9 / 3.6 / 4.1 / 6.1 / 7.8 / 12.0 / 16.0 under the current EU Stage IV/U.S. Tier 4 standard, as well as all older Deutz engines without exhaust aftertreatment, for operation with paraffinic diesel fuels and biodiesel or biodiesel blends. The term paraffinic diesel fuel encompasses a wide range of products. The approval covers 100 percent biodiesel for EU Stage IV as well as biodiesel blends for EU Stage IV and U.S. Tier 4 engines. Hawaiian Electric Co. and Pacific Biodiesel Technologies signed a three-year biodiesel supply contract for the new 50-megawatt Schofield Generating Station, 8-megawatt Honolulu International Airport Emergency Power Facility, and other Oahu generation facilities. Set to go into effect this year, the contract calls for Pacific Biodiesel Technologies to supply 2 to 4 MMgy of biodiesel produced at its 5.5 MMgy production facility on the Big Island of Hawaii via barge to the island of Oahu, where the fuel will be trucked to the utility&rsquo;s various sites. Pacific Biodiesel currently supplies biodiesel to Hawaiian Electric&rsquo;s Campbell Industrial Park generation station and the airport emergency facility owned by the state and operated by the utility. The new Schofield plant, which broke ground in August 2016 and is expected to be fully operational early next year, will use a mixture of biodiesel and petroleum diesel in six W&auml;rtsil&auml; 34DF engines. Evonik Performance Materials GmbH recently announced a global price increase for its potassium methylate solution alkoxide, effective Nov. 1. The company said that while all existing contracts will be honored, the price of its potassium methylate 32 percent solution in methanol, KM32, will go up 4 percent. &ldquo;The increase is unavoidable and necessary to offset the ongoing escalation of regulatory and operating costs,&rdquo; the company stated. &ldquo;Evonik appreciates the long-term and solid relationships with our business partners and will remain focused on providing high-quality products and excellence in value-added services.&rdquo; BDI-BioEnergy International AG, known for its development and construction of biodiesel plants, has taken the first step toward implementation of an in-house-developed algae technology, together with its subsidiary BDI-BioLife Science GmbH. The Styria, Austria-based plant manufacturer is investing roughly 16 million euros in the construction of an industrial plant for production of algae biomass. After several years of research, BDI succeeded in bringing an innovative algae production system to industrial maturity. With engineering, construction and operation of an industrial algae production plant, BDI enters this rapidly developing international business sector as a premium producer. As a first step, BDI-BioLife Science will produce algae-based additives for the food supplement and cosmetic industries. The location for this production plant is Hartberg/Styria and was deliberately chosen by BDI. The close proximity to the in-house research center and to local universities provides synergies for the further development of the algae product range of BDI-BioLife Science. Biodiesel producer Biodico introduced its Master Community Design technology in November to business leaders, farmers, farmworkers, academics and local governments at the Zero Net Energy Farm Summit hosted at Red Rock Ranch in Five Points, California. The technology enables farms and local communities to identify on-site renewable sources of clean energy and then create a plan to convert those resources into electricity and liquid biofuel. Biodico worked with mapping and spatial analytics company ESRI to develop an application that generates interactive referencing maps of renewable resources anywhere in California. Biodico&rsquo;s Zero Net Energy Farm is the world&rsquo;s first fully sustainable liquid biofuel facility to help address energy needs and climate goals in California&rsquo;s Central Valley. The region has some of the worst air quality in the U.S. and is home to the poorest cities on the West Coast. ExxonMobil and Renewable Energy Group Inc. announced in November that by utilizing REG&rsquo;s patented fermentation technology, the companies&rsquo; joint research program has demonstrated the ability to convert sugars from a variety of nonedible biomass sources into biodiesel. During their initial research, the companies successfully validated the feasibility of the REG Life Sciences fermentation technology, which relies on microbes to convert cellulosic sugars into biodiesel in a one-step fermentation process, across multiple cellulosic sugar compositions produced with a variety of methods from various nonedible biomass sources. The research also confirmed REG Life Sciences&rsquo; technology is capable of achieving substantial reductions of full life-cycle greenhouse gas emissions compared to traditional diesel fuel. ExxonMobil signed an agreement with REG in January 2016 to study the production of biodiesel through fermentation of renewable cellulosic sugars from sources such as agricultural waste. The companies have agreed to extend the research program based on their positive findings and are excited to continue to jointly explore the technology&rsquo;s potential for scalability.

Mayor of Huron, California, Rey Leon (center), and Russ Teall (right), president and founder of Biodico, discuss the viability of low-income communities using renewable resources to generate cost-effective energy and jobs. 

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Business Briefs

As is well-known by now, the much-anticipated renewable volume obligations (RVO) under the Renewable Fuel Standard were published Nov. 30 and responses from the biodiesel industry generally ranged from guarded acceptance to outright disappointment. While the RVO for biodiesel is known, there are a number of other macroeconomic and political issues at hand that could impact the industry in the foreseeable future&mdash;including tax reform, the biodiesel tax credit, trade policy (including antidumping and countervailing duties), and the economy. Here, we will not attempt to predict the likelihood of those items or their impact on the biodiesel industry; instead, we will take a brief look at possible implications to biodiesel mergers and acquisitions (M&amp;A)&mdash;assuming the industry breaks out of the status quo.&nbsp; Industry participants generally understand the M&amp;A process in current market conditions, but how might it change if conditions materially improve or regress? If industry conditions materially improve, M&amp;A deals typically change in the following ways: &bull; Transaction timelines typically become more compressed and deals are more likely to close. Buyers and sellers, excited by the prospect of doing a deal, typically move faster and get to closing. &bull; Generally, an increased portion of the purchase price is paid in cash at closing (i.e., there will be less consideration contingent on the post-closing performance of the asset or other metrics). &bull; Buyers are eager to put capital to work and are generally more accepting of commercial risk. This usually means that business and legal negotiations are more streamlined and less confrontational.&nbsp; &bull; It is easier to keep stakeholders on board&mdash;there is decreased risk of unhappy equityholders, lenders, employees, vendors and customers. &bull; Unsolicited offers become more common. As buyers become more enthusiastic about the prospects of the industry, they typically become more aggressive in seeking out deals. The target of an unsolicited offer can sometimes find itself unprepared to respond quickly, putting itself at a disadvantage (at least initially). If industry conditions worsen, the inverse of the foregoing changes generally occur, but a few points probably warrant more discussion. Many times distressed sellers allow their financial or operational condition to deteriorate to the point that interested buyers either become uninterested after they &ldquo;look under the hood&rdquo; or gain tremendous leverage based on the seller&rsquo;s condition. As a result, deals with a distressed seller often take longer to complete and negotiations are much more difficult. Sellers who could eventually fall into this category are well-advised to develop a game plan early in an effort to head off some of the potential negative consequences. Unless the seller has an investment bank or broker engaged, the process of selling a distressed company is typically more chaotic, fractured and subject to greater risk that the process will break down. Negotiating through difficult issues is time-consuming, and with distressed sellers there are typically more difficult issues to address. If a plant has been idled, a buyer&rsquo;s due-diligence process is often much longer and more detailed. In addition to helping get a higher purchase price, bankers and brokers can add great value in keeping the sale process on track.&nbsp; The parties driving the sale process sometimes differ when a seller is distressed. Even if a lender is not actively involved in negotiating the sale, many times lenders are behind the scenes driving the sale and sometimes dictating terms. Oftentimes in distressed situations, lenders are entitled to reimbursement for their fees and expenses and higher rates of interests, which will reduce the amount available to common equityholders. This dynamic can create additional pressure on the seller&rsquo;s management team to keep satisfied the various stakeholders who are directly at odds. &nbsp;&nbsp; A tool used in thriving M&amp;A markets that can help overcome obstacles in struggling markets is representation and warranty insurance. While representation and warranty insurance does not appear to be widely used in biodiesel M&amp;As, it has gained significant traction in many industries based on the benefits that it can provide. After a retention amount is satisfied, the insurer is liable to the buyer for the representations and warranties of the seller. In strong markets, sellers will attempt to use their leverage to force buyers to buy representation and warranty insurance, thereby greatly reducing the seller&rsquo;s exposure for breaches of representations and warranties. In less strong markets, representation and warranty insurance can be used to help buyers and sellers bridge gaps in the representation and warranty coverage that each will find acceptable. Entire articles could be written on this topic&mdash;it is brought up here simply to point out that it is a sometimes-overlooked tool that can be used (and is commonly used in M&amp;As, generally). In sum, if the biodiesel industry breaks out of its status quo, the implications to M&amp;A transactions within the industry will be varied and are fairly difficult to predict. Being cognizant of the impact that changed industry conditions will have on deal dynamics will help managers prepare for the future of their companies. Authors: Adam Hertzke, Joshua Andrews Partner, Director; Faegre Baker Daniels LLP 515-447-4719 202-589-2819 adam.hertzke@FaegreBD.com joshua.andrews@FaegreBD.com

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While the RVO for biodiesel is known, there are a number of other macroeconomic and political issues at hand that could impact the industry in the foreseeable future. Here we will take a brief look at the possible implications to biodiesel M&As. 

M&As and Changing Biodiesel Market Conditions

Desmet Ballestra began researching transesterification of vegetable oils for biodiesel production in the early 1980s. In 1993, we built our first commercial-scale biodiesel plant for Estereco in Umbertide, Italy. Today, Desmet Ballestra is positioned to design and supply multifeedstock biodiesel plants from 50,000 to 500,000 tons per year, complying with the most stringent international specifications. Globally, Desmet Ballestra has built 220 oleochemical processing plants. There are 103 Desmet Ballestra-designed biodiesel plants operating today. Our process technologies not only produce high-quality biodiesel but also a wealth of consumer products with which most people are familiar. We go deep into the consumer products chain for companies that formulate surfactants, detergents, sulfonated esters, soaps and more. With more than 50 years of experience, we understand oleochemical processing. We offer a wide range of services and technologies to help our customers discover the total cost of ownership over the life of their plant. This depends largely on feedstock choice, which affects the number of processing stages and type of technologies employed. The decisions are often based on favorable economics and environmental stewardship. All successful process designs must meet those two broad criteria. We operate that way, and we offer no less for our customers. Roughly 80 percent of our business is from repeat customers. We constantly strive to improve our processes and embrace development of new technologies where applicable. Since the biodiesel &ldquo;gold rush&rdquo; in the mid-2000s, we have focused on a number of ways to make our plants better. The plants we build today are not the same as those we built 15 years ago. Many of our earlier designs have been upgraded as markets change, with each piece examined and modeled for optimum performance. While some of our valued customers are vertically integrated and rely exclusively on a single virgin oil feedstock, others have adapted to processing multiple feedstocks. Some of our biggest changes have been in frontend multifeedstock pretreatment. We prefer to not include total acid esterification in the main process stream. Many biodiesel plants we build have FFA (re)esterification units inside, using either methanol to convert distilled fatty acids from pretreatment and fatty acids in the oleins recovered from the glycerin into their methyl ester form, or using glycerin to produce mono, di and triglycerides, which are sent back to the transesterification process. All new technologies have advantages and disadvantages. My job is to evaluate what technologies fit the customer&rsquo;s business model. Through our vast R&amp;D resources, Desmet Ballestra has evaluated enzymatic processing for years with Novozymes. The main issue with enzymatic processing is residual fatty acids, mono and diglycerides that must be treated through tricky caustic post-neutralization, to meet EN and ASTM specs. This is technically achievable, but there is always a tradeoff. We must compare new approaches to the standard, and evaluate total cost of ownership&mdash;capex, opex, long-term payback and more. Operating costs such as catalyst or resin replacement are crucial to know. Opex is every day&mdash;that doesn&rsquo;t change once the plant is built. If you get rid of sodium methoxide, what cost takes its place? Usually it&rsquo;s energy and additional cap-ex. When comparing new processes to the standard, we must always ask if it makes sense to change. One viable use for enzymatic processing is a small parallel plant to traditional transesterification that can take a coproduct fatty acid stream and convert it to methyl esters. It would conveniently close the loop, and we&rsquo;ll see more of this. Another new technology we have embraced is hydrodynamic cavitation through our partnership with Cavitation Technologies Inc. We have successfully applied nanocavitation in the edible oil market and its use in biodiesel will increase yield and reaction kinetics, reduce consumables, make separation easier and reduce total contamination. We are installing full-scale hydrodynamic nanocavitation reactors now and within a year we will see greater adoption.&nbsp; Feedstock choice plays a major role in technology decisions. It is not economically feasible to design a plant for virgin oils and then decide to process brown grease. Desmet Ballestra has designed a number of pretreatment plants for renewable diesel production facilities, including Diamond Green Diesel. Renewable diesel, often called second- or next-generation biodiesel, is an existential threat to first-generation biodiesel because of feedstock competition and its fuel properties make Big Oil more accepting of higher blend volumes. Renewable diesel integrates into the distribution system easier, including pipelines. As more petroleum companies develop renewable diesel plants, competition for feedstock will get fierce. Hydrotreaters can take in a variety of material, but they require purity in earth metals. Yellow grease, distillers corn oil, deadstock fat, and virgin oils, however, are all for the taking and leave classical biodiesel producers with the leftovers from which it is difficult to remove metals. That&rsquo;s why we&rsquo;re interested in enzymatic processing and other alternative processes. They can handle undesirable feedstocks and become economically viable when competition for easier-to-treat feedstock hits a tipping point. When classical biodiesel producers start competing with petroleum companies for feedstock on a grand scale, they will be relegated to processing more difficult material. An exception to this is the vertically integrated soy/canola oil biodiesel processors who control their own feedstocks. Author: Blake Hendrix President &amp; CEO, Desmet Ballestra North America Inc. 770-693-0061 ext. 116 blake.hendrix@desmetballestra.com

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Desmet Ballestra began researching biodiesel production in the early 1980s. In 1993, we built our first commercial-scale biodiesel plant. Today, Desmet Ballestra is positioned to supply multifeedstock plants from 50,000 to 500,000 tons per year. 

Natural Selection of Biodiesel Process Technology

I cannot adequately express the pride I feel as we move into 2018, which represents Biodiesel Magazine&rsquo;s 15th year of publication. Like some of you, I have been around for the vast majority of that journey, beginning as a writer with the magazine in January 2005. When our first issue came out in 2004, the U.S. industry was producing less than 250 MMgy. When domestic production topped 1 billion gallons for the first time in 2011, it was a major accomplishment. In 2016, U.S. production approached 2 billion gallons, with capacity to do much more. Over the past 15 years, we&rsquo;ve witnessed and reported on the ups and downs in the market, new technologies taking hold, new feedstocks gaining greater market share, and hundreds of plants being built, with some closing down, changing hands, getting retooled, and being restarted. Uncertainty&mdash;for better or worse&mdash;has helped define the biodiesel industry. The uncertainty we have faced year in and year out has only strengthened the industry&rsquo;s resolve and purpose, demonstrating the resiliency of tens of thousands of fine men and women who make this renewable fuel that, as we all know, represents so much more than that. With today&rsquo;s political culture and an expired tax credit, our resolve is being tested yet again. But the investment we continue to see in biodiesel, despite the uncertainty, is encouraging. These investors of smart capital have a longer-term view that extends past what EPA will do this year or next, and they see the future of renewable energies like biodiesel as prosperous&mdash;and so do we. For more on recent investments in biodiesel, please see &ldquo;<a href="http://biodieselmagazine.com/articles/2516232/against-the-odds">Against the Odds</a>&rdquo; on page 16. On page 24 you will find our Spotlight article for this issue, &ldquo;<a href="http://biodieselmagazine.com/articles/2516231/biodiesel-agents-of-change">Biodiesel Agents of Change</a>.&rdquo; I borrowed this phrase, &ldquo;agent of change,&rdquo; from Steve McCracken, CEO of Amerigreen Energy&mdash;one of our four spotlighted companies. The phrase fits so well for those working in this business who, on a daily basis, collectively strive in their individual ways to improve this industry and thereby &ldquo;make Earth great again.&rdquo; The relationships we have built and maintained over the past 15 years allow us to secure contribution articles and support from the most respected names in the industry. Our biodiesel-focused content&mdash;something you won&rsquo;t find anywhere else&mdash;has helped build trust in what we do. For starters, the National Biodiesel Board has been a tireless advocate for this industry, and its commitment to providing us with solid content every issue over the past 15 years is invaluable. We also feature in this issue on page 7 an editorial column from Blake Hendrix, president and CEO of Desmet Ballestra North America, titled, &ldquo;<a href="http://biodieselmagazine.com/articles/2516242/natural-selection-of-biodiesel-process-technology">Natural Selection of Biodiesel Process Technology</a>,&rdquo; and, on page 6, <a href="http://biodieselmagazine.com/articles/2516241/mas-and-changing-biodiesel-market-conditions">a legal column</a> from Adam Hertzke and Joshua Andrews at Faegre Baker Daniels LLP&mdash;our first from FBD. Hermann Stockinger and Stefan Divjak with BDI-BioEnergy International provided us a feature-length contribution article on page 30, &ldquo;<a href="http://biodieselmagazine.com/articles/2516230/fat-and-the-city">Fat and the City</a>.&rdquo; And Joe Jobe, former CEO of NBB and founder and president of Rock House Advisors, authored a special sidebar on page 20, at the end of my &ldquo;Against the Odds&rdquo; project development feature, titled, &ldquo;Heartbreak Ridge: &lsquo;Improvise, Adapt, Overcome,&rsquo;&rdquo; about the World Energy Biox Biofuels plant in Houston. A special thanks to all of you who have helped make this magazine possible over the years through your valued advertising support and editorial contributions. Happy New Year! Author: Ron Kotrba Editor Biodiesel Magazine rkotrba@bbiinternational.com

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In his editor's note from the Winter 2018 print edition of Biodiesel Magazine, Ron Kotrba celebrates the 15th year of publication for the magazine and provides a brief overview of what the issue has in store for readers. 

2018 Winter Issue

Business Briefs

Business Briefs

Columns

NBB Celebrates 25 Years of Growth, Milestones, Challenges

M&As and Changing Biodiesel Market Conditions

Natural Selection of Biodiesel Process Technology

15 Years of Biodiesel Magazine

Featured

Biodiesel Agents of Change

Against the Odds

Contributions

Fat and the City

2018 Winter 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

NBB Celebrates 25 Years of Growth, Milestones, Challenges

M&As and Changing Biodiesel Market Conditions

Natural Selection of Biodiesel Process Technology

15 Years of Biodiesel Magazine

Featured

Biodiesel Agents of Change

Against the Odds

Contributions

Fat and the City

2018 Winter Issue