After writing this month's Profile feature, "Thinking Small, Globally," page 36, I started thinking about the contrasting models of centralized and decentralized energy production. The issue is taken up in the article because Vallejo, Calif.-based Greenline Industries intends to become a world leader in producing small- and medium-scale biodiesel processing units. At the same time, the company's cofounder and president Jacques Sinoncelli, is a strong advocate of decentralized energy production. That is, Sinoncelli makes a compelling argument that global biodiesel production would be optimal-and ultimately more sustainable and effective-if relatively small processing units were stationed where locally produced renewable feedstocks are abundant and affordable. Ideally, decentralized production would include local use of the fuel, too, essentially tightening the Btu loop, so to speak, by producing and consuming energy locally, or at least regionally. In theory, this model works as effectively in remote villages of the world's least developed countries as it does on college campuses right here in the United States. 
 

 But just what separates centralized and decentralized production? After all, even large biodiesel plants are built in places where raw materials are abundant and affordable, and where markets for the fuel are strong. For example, Archer Daniels Midland Co. recently announced its intentions to build a 50 MMgy biodiesel plant in North Dakota (see Industry News, page 8). The plant will use canola oil as a feedstock, as will another large biodiesel plant already under construction in the state. I won't try to argue that ADM's proposed plant is an example of true decentralized production-I suppose it's not-but compared to the world's truly centralized fossil-fuel-based energy system, even the largest U.S. biodiesel and ethanol plants are, well, pretty darn small and diversified. 
 
 The World Alliance for Decentralized Energy was formed by energy professionals from all over the world who believe the ruling central power generation paradigm is no longer optimal, and that moving to a decentralized model will improve standards of living and reduce the environmental impact of energy production. In addition, proponents of decentralized energy models typically encourage the use of a variety of raw materials for production, as to discourage complete reliance on a single energy feedstock. 
 
 Given all that, it sounds like the world's biofuels industries are on the right path. Despite the fact that America's 50 MMgy biodiesel plants and 100 MMgy ethanol plants are not widely thought of as small- or medium-scale, decentralized energy production facilities, the fact that these plants are utilizing locally available feedstocks, revitalizing rural economies and offsetting the world's dependence on fossil fuels in a sustainable, environmentally friendly way, might give us reason to think otherwise.

Editor's Note

The Peach State tapped into the biodiesel retail pump market by opening its first biodiesel pump in Rome, Ga. Enterprise Oil Co. will market the U.S. Biofuels B20 biodiesel to a local BP station, which operates as a 24-hour truck stop with large truck access. Also, "BioWillie" has come home to Austin, Texas-Willie Nelson's hometown. A B5 blend will initially be offered at a south side station. The blend will be increased to B20 after a few loads have been sold. A handful of other Austin stations are planning to offer "BioWillie" in the near future.

Biodiesel pumps open in Georgia and Texas

A large-scale biodiesel project, Raccoon Valley Biodiesel LLC, has been proposed for Buena Vista County in northwest Iowa. A feasibility study has been completed and land has been aquired, according to Terry Argotsinger, a project spokesman. He said the group of 26 investors is in the process of selecting an engineering company to design the plant. Argotsinger said the area is row- crop intensive and produces a high amount of soybean oil, which would likely be the plant's primary feedstock.

Large-scale Iowa plant proposed

U.S. Sen. Jim Talent, R-Mo., co-chair of the Senate Biofuels Caucus, is asking the U.S. EPA to move quickly to implement the renewable fuels standard (RFS). The EPA is responsible for establishing the regulations for the new standard. In a letter, Talent, together with Sens. Byron Dorgan, D-N.D.; John Thune, R-S.D.; and Tim Johnson, D-S.D., said, "Time is of the essence for the [EPA] to promulgate the necessary rules for the program to begin on time."

Sen. Talent urges EPA to act quickly on RFS

Blue Sun Biodiesel LLC, headquartered in Fort Collins, Colo., has a newfound interest in Oklahoma canola. Blue Sun verified its partnership with an Enid, Okla.-based grain elevator company, Johnston Enterprises Inc., with eventual plans for biodiesel production in the Sooner State.  After finalizing feedstock procurement, the partnership would seek to build a joint canola processing and biodiesel production facility in Garfield County. Blue Sun could not give any further details.

Blue Sun eyes canola facility

Archer Daniels Midland Co. (ADM) announced its plans to build the nation's largest canola-based biodiesel plant. The 50 MMgy facility will be built near ADM's existing canola processing plant in Velva, N.D.
 
 It's the second large-scale biodiesel plant announced for the area that will be using canola as feedstock. Earlier this year North Dakota Biodiesel Inc. announced plans to build a 32 MMgy biodiesel plant in Minot, N.D. Minot is 20 miles northwest of Velva.
 
 The Velva facility would be ADM's first wholly owned U.S. biodiesel plant. The company is already partnering on a 30 MMgy plant near Mexico, Mo.
 
 Groundbreaking could occur as soon as this fall, depending on final engineering and permits, according to ADM spokeswoman Karla Miller. She wouldn't disclose the name of the process technology firm for the plant.
 
 Velva Community Development Chairman Randy Hauck said ADM's current canola facility provides 60 jobs. "Anytime you build a plant of that magnitude, it provides a boost to the economy," he added. "A lot of jobs are created by this addition."
 
 North Dakota is the nation's leader in canola production, with more than 90 percent of the total crop. Barry Coleman, executive director for the Bismarck, N.D.-based Northern Canola Growers Association, said the state planted more than 1 million acres of canola in 2005. That figure has rebounded from the 2004 season, when acreage dropped due to poor weather. Coleman said yields for both years have been solid.
 
 Coleman also said the state could support the demand created by both plants. He said the plants would require a combined 950,000 acres of canola. "There is no question some canola will be brought down from Canada to feed both plants," Coleman said.

 
 The state's legislature this year passed a number of incentives aimed at attracting biodiesel facilities. They include an interest buy-down program, sales tax exemption on all new processing equipment and plant infrastructure, and an income tax credit for any fuel supplier that blends biodiesel to a ratio of 5 percent. The credit equals 5 cents per gallon of fuel blended.
 
 "We've put strong incentives in place for renewable fuels, and we are excited to be working with ADM to develop this new biodiesel plant in North Dakota," Gov. John Hoeven said. "Investment in the plant also signals greater economic stability and growth for the region and ADM's commitment to North Dakota."
 
 ADM also announced it plans to build a biodiesel plant in Mainz, Germany. The 275,000 metric tons per year facility will be the company's third plant in Germany. "ADM is a world leader in renewable fuels and a leader within the European biodiesel market," said Peter Reimers, ADM general manager-European Oleo Chemicals. "We are pleased to use our extensive experience producing high quality biodiesel to meet increased demand through the new facility in Mainz, Germany."
 
 ADM is the largest biodiesel producer in Germany. The company operates plants in Hamburg and Leer. The Hamburg facility recently announced its plans to expand. Construction on the new facility is expected to take one year.
 
 The announcement comes not long after Cargill's decision to invest in a new 200,000-metric-ton-per-year biodiesel facility in Mainz. That facility is expected to complement the company's existing oilseed crushing and refining operations in the region.
 Cargill also announced plans this fall to build a 37.5 MMgy biodiesel facility near its soybean crushing facility in Iowa Falls, Iowa.

ADM announces biodiesel plants

Alberta Research Council Inc. (ARC) and Natural Resources Canada (NRCan) have teamed up to create an online Biofuels Quality Registry, created as part of the Climate Change Plan for Canada government initiative in 2003. 
 
 The registry, based on ASTM D6751 standards, allows biodiesel producers and end-users to sign up to have their products tested for quality. The Web site also acts as a national database where analysis results of candidate biofuels are entered and accessed. The registry will help ensure that end-users have a quality product and producers have an option for quality control.
 
 "Biofuels are a crucial and innovative part of our efforts to ensure a clean environment in the years to come and achieve our ultimate objectives regarding climate change," NRCan Minister John Efford said. "We are pleased to work with ARC on this project to make clean alternative fuels a viable alternative for producers and end-users."
 
 A Biofuels Technical Steering Committee with members from ARC, NRCan and Environment Canada will approve all applications for incentives. NRCan and Environment Canada will also use the collected information to support research and policy activities.

 NRCan is offering a partial rebate on the cost of the analysis, which averages $1,400, to encourage small- and medium-sized producers and end-users to have biodiesel analyzed on a regular basis. It is a two-year program with $100,000 available per year. "From our point of view, we wanted to ensure that people were sending in samples for quality control and give them an incentive to do that," said Melanie Nadeau of NRCan's Canmet Energy Technology Center.
 For more information or to use the registry, visit <a target="_blank" href="http://">www.biofuels.arc.ab.ca.</a>
 -Staff Report

ARC, NRCan create Biofuels Quality Registry

It appears the 2005 U.S. soybean crop avoided serious infection levels from Asian soybean rust. The disease was only reported in five southern states: Alabama, Florida, Georgia, Mississippi and South Carolina. Dry weather in the Midwest and slow development of the disease in the Southeast helped prevent the rust's spread. The disease, which defoliates soybean plants, was great

Soybean crop avoids widespread soy rust

The office of Indiana's Lt. Gov. Becky Skillman has announced $325,809 in grants to be distributed to organizations across the state looking to use alternative fuels. The Indiana Energy Group administered the funds through the Alternative Fuel Vehicles (AFV) Grant Program. 
 
 The AFV grants allow businesses, non-profit institutions and units of local government (including public schools) to purchase alternative fuel vehicles and to convert conventional vehicles to alternative fuels. Grant amounts were available up to a maximum of $50,000, but no less than $2,000. To receive grants, applicants had to meet a number of different criteria to qualify, including having demonstrated that the proposed project will result in a significant decrease in the consumption of gasoline or diesel fuel, having demonstrated that the proposed project is appropriate and technically feasible, having described how their use of alternative fuel vehicles will produce environmental benefits and having described how the project will facilitate economic development in Indiana.
 
 A majority of the grants have gone to school districts that are converting bus fleets to soy biodiesel, as well as to gas stations installing E85 fueling infrastructures. These grants encourage the use of biofuels and allow biofuels to become more feasible, Skillman's office said. To date, grant-funded projects will offset more than 1.2 million gallons of conventional fuel in Indiana.
 
 Organizations in counties designated as non-attainment by the U.S. EPA have been awarded 50 percent of these grants. Some $257,000 in grant money has gone to increase the use of biodiesel in Indiana alone.

Indiana announces Alternative Fuel Vehicles grants

Redland Industries Inc. broke ground on its Guymon, Okla.-based biodiesel refinery Sept. 16, and construction at the greenfield site is in full swing. Redland Industries said it will be the first biodiesel plant built in the state to be owned by an Oklahoma-based business. 
 
 "The initial nameplate capacity will be 30 MMgy," said Kent Powell, CEO and co-founder of Redland Industries. The company already has expansion plans drawn up, but Powell couldn't give any further details. "Redland Industries will expand accordingly with market demand increases," Powell told Biodiesel Magazine. Powell estimates the initial cost for the plant at $10 million, but after its future expansion, he estimates that to increase to $45 million.
 
 The new biodiesel refinery will be multi-feedstock capable, but Powell said the primary feedstock will be first-use tallow. The process design is a proprietary configuration designed and engineered by Redland Industries. "Some information we used for our process design was carried over from the agricultural processing industry," Powell said. Redland Industries' general contractor is Clinton, Okla.-based J. Rose LLC. 
 The company has big plans for its biodiesel. Rather than selling "dot-to-dot," as Powell said, to local jobbers, Redland Industries is looking to go nationwide with its product. "Our company's goal is to market our product to the mainstream," Powell said. "We are setting up pre-selling arrangements with large, nationwide distributors." A biodiesel marketer has not yet been officially named.
 

 Once Redland Industries starts producing biodiesel, it will transport the fuel from the plant in Guymon to its bulk storage facility in Clinton, where the company has its corporate headquarters and where various interstate modes of transportation intersect. This strategy will facilitate its plan to sell nationwide. 
 
 Much of the plant's glycerin will be consumed internally in the boiler system. Powell said the properties of glycerin, in its raw form, are similar to that of heating oil. 
 
 Redland Industries anticipates production to begin in May 2006.

Redland Industries breaks ground in the Sooner State

Morristown, Ind., is preparing to host a new corporate citizen. Integrity Biofuels purchased property with pre-existing structural accommodations, in which Indiana's first biodiesel will be produced by early next year, the company stated. The property is near a Bunge soybean processing facility. In its first year of operation, Integrity plans to produce 10 MMgy of biodiesel from 6.7 million bushels of Indiana soybeans. Integrity plans to eventually expand the proposed plant.

Indiana biodiesel plant proposed

With a pilot-scale biodiesel production unit assembled by Rocky Mountain Biodiesel of Berthoud, Colo., a group at the University of Colorado in Boulder hopes to produce nearly 10,000 gallons of biodiesel per year from the campus' waste grease for use in fleet vehicles and other equipment. CU Biodiesel, a student-run and student-funded group, also plans to use the biodiesel unit to educate students through workshops and laboratory-style classes, and conduct research and development projects. Currently, the group is in talks with campus officials to solidify a location for the plant, according to CU Biodiesel Director Tim Guiterman.

University of Colorado to produce biodiesel

Chadbourne & Parke LLP, a New York-based law firm, organized an afternoon discussion titled "Biodiesel-The Next Growth Opportunity" on Sept. 28. A series of current events, such as the Energy Policy Act of 2005 and ultra-low sulfur diesel requirements, prompted the discussion, attended by about 175 people.
 
 The U.S. DOE predicts the country's biodiesel market will expand to 1.2 billion gallons per year over the next decade, up from 30 MMgy in 2004. The exponential growth rate will require significant capital investment, and new business, financial and contract structures. So, in addition to detailing the basics of biodiesel, the discussion delved into market issues, equity, debt and capital requirements, according moderator Todd Alexander.
 
 Jerry Peters of Hudson United Capital emphasized the importance of working capital, while Gene Gebolys of World Energy Alternatives discussed the importance of diversity in biodiesel sales. "For example, don't just rely on people mandated by the state of Minnesota to buy your biodiesel," Alexander told Biodiesel Magazine. 
 
 Richard Fumoso of Lurgi PSI detailed his company's ability to provide a bankable construction contract, among other important services. David Fennema of Marathon Capital LLC discussed the fundamentals of hedging, and the importance of mitigating risks associated with the lack of correlation between the feedstock and the product.
 A
 ttendees represented developers' financial sponsors, debt providers and other technology providers interested in the direction of the biodiesel industry. "The crowd was very diversified," said speaker Jonathan Phillips, also of Chadbourne & Parke.

Chadbourne & Parke seminar discusses biodiesel

In California and Texas, three recent victories in the war on diesel exhaust pollution took place on the biodiesel front. 

 
 The California Air Resources Board (CARB) recently approved Johnson Matthey's continuous regenerating technology (CRT) diesel particulate filter (DPF) for use with B20 blends of ASTM D6751 biodiesel blended with ultra-low sulfur diesel (ULSD), which is a first for biodiesel-not only in California, but nationwide. 
 
 According to Urszula Miezio, a business development and marketing specialist with Johnson Matthey, the company has had its CRT DPF verified for use with approved diesel fuels (e.g., ULSD) by both CARB and the U.S. EPA for several years. "The verification process covers certain vehicle families and certain fuels at a verification site," Miezio said. "The extension of the main CRT verification to cover B20 meant [the Johnson Matthey team] had to go out and do some extra work and statistical analyses." 
 
 The CRT DPF is similar to a flow-through channeled catalytic converter, but the filter itself is not coated with catalytic precious metals, and every other flow-through channel is plugged. The solid particulate matter (PM) gets trapped in these plugs while the gaseous exhaust flows through the permeable cell walls. This traps the PM and continually regenerates it, or burns it (to avoid backpressure), by first going through an upstream oxidation catalyst, which lowers the burning rate of the PM from 400 degrees Fahrenheit to an easily reached 240 degrees, Miezio said. 
 
 In Texas, two victories for biodiesel recently took place. Texas is implementing its low emissions diesel policy (TxLED-see state feature in July 2005 Biodiesel Magazine), whereby biodiesel blends must be approved by the state in order to be legally sold in a designated 110-county zone. 
 
 The Texas Commission on Environmental Quality (TCEQ) recently approved an additive-GTAT California's Viscon additive-for use with both No. 2 diesel and B20 blends of biodiesel. Under TxLED rules, any diesel fuel needs to meet a minimum cetane number of 48 and no more than 10 percent of total aromatic hydrocarbons by volume. Standard No. 2 diesel would not meet TxLED's goal of NOx reduction without an additive such as Viscon. This is the first additive to be approved for use with both biodiesel and No. 2 diesel fuel.
 
 Also in Texas, Biodiesel Industries Inc. recently became the first biodiesel producer in the state to have its own B20 biodiesel blend state certified for sale in the 110-county non-attainment region. The company reports that its proprietary B20 blend reduces NOx by more than 8 percent and PM by more than 20 percent, compared to No. 2 Diesel.

Biodiesel claims victories in NOx-stringent states.

Through the U.S. EPA's P3 Award program, Oberlin College students received $10,000 to work on their research project titled, "Community-scale biodiesel: an affordable, renewable resource." Investigators Kathryn Janda and Albert Matlin are proposing to build a community-scale biodiesel processing facility, using a unique model to minimize environmental impacts and make the renewable fuel affordable for communities. For more project details and additional P3 winners, visit<a target="_blank" href="http://"> http://es.epa.gov/ncer/p3/
 award_winners.html</a>.

Biodiesel project receives US EPA funding

The distribution of biodiesel-blended fuels in the nation's Northeast just got easier. Worley and Obetz, a Manheim, Pa.-based energy company, announced that the East Coast's first biodiesel injection blending terminal opened Sept. 22. A grand opening was planned for Oct. 27.
 

 The terminal is located at Petroleum Products Corp.'s pipeline terminal in Highspire, Pa. It is the largest pipeline terminal in the commonwealth. It is also strategically located near Interstates 283 and 83, as well as several other major highways.
 Worley and Obetz was the first customer to load from the state-of-the-art facility. The automated system uses a computer that measures the percentage of each component of the fuel. Before the fuel reaches the customer's truck, it will have been seamlessly blended. Blends offered include B2, B3, B5, B10 and B20. 
 
 The system can blend 800 to 900 gallons of fuel per minute. The procedure is no different from the current procedure followed in purchasing diesel fuel or home heating oil from a standard petroleum terminal. 
 
 Previously, companies splash-blended biodiesel, which doesn't ensure a consistent, accurate blend.
 
 Len Zvorsky, Worley and Obetz's compliance manager, told Biodiesel Magazine that his company has spent time educating other fuel marketers in Pennsylvania and the surrounding areas about the benefits of biodiesel-blended fuels. The company has held several symposiums, which should get other fuel marketers to use the new terminal and sell more biodiesel-blended fuel.
 Zvorsky said he has heard no negative comments about biodiesel from fuel users and marketers. Worley and Obetz has been selling a brand of biodiesel called AmeriGreen Biodiesel for several years in the Northeast.

Northeast's first biodiesel injection terminal opens

Finding a use for the biodiesel industry's glycerin continues to be a concern among current and future producers. With a bountiful supply of inexpensive unrefined glycerin on the market, researchers are finding those new uses.
 
 A research chemist at the Agricultural Research Service's Environmental Quality Laboratory in Beltsville, Md., discovered that glycerin from biodiesel production and citric acid can be chemically combined to produce biodegradable polymers, which could be used in produce packaging and other products. Justin Barone said the key to the process is using unrefined glycerol specifically from biodiesel production.
 Barone said he has spent about two years researching the process. Citric acid is reacted with various alcohols, or hydroxyl-containing materials such as glycerol, to obtain a polyester polymer that is biodegradable, edible and biocompatible.
 
 Products that Barone has developed include films, sheets, plastics and gel-like coatings. He said the material holds promise for packaging materials since it is biodegradable. "It's a technology really looking for somebody to develop it," Barone said.
 
 A researcher at the University of Missouri has developed a process to turn glycerin into propylene glycol, a non-toxic agent that can be used in antifreeze as a safer alternative to ethylene glycol. Galen Suppes told Biodiesel Magazine the project began in 2003.
 Renewable Alternatives LLC is licensing the technology. Suppes said he felt the technology could solve the biodiesel industry's glycerin problem.

Researchers finding new uses for glycerin

"There's nothing more powerful than an idea whose time has come." 

 						 - Victor Hugo
 The author of the Les Misérables and the Hunchback of Notre Dame liked to write about struggle and the journey to overcome enormous odds. Biodiesel has had a long and challenging journey, but as was predicted in February at the National Biodiesel Conference, 2005 has become the year of its arrival. 
 
 Our nation's energy situation was reaching critical pressure points before Hurricanes Katrina and Rita took their toll on the petroleum network. The Gulf Coast of Louisiana and Texas serve as the heart of the nation's energy complex. It is where much of the country's crude oil is shipped in, refined and pumped into the veins of the nation's pipeline system. The recent disasters did much to illustrate the vulnerability of our energy supply.
 
 In a recent interview on "Meet the Press," journalist Tom Friedman of the New York Times spoke about energy as the underpinning of our future. He said that Americans have a proven ability to solve problems when enough effort and priority is applied. Finding a solution to our energy situation, he said, should be the "Moonshot" of our generation. He is right. 
 
 The recent energy crunch seems to have finally splashed cold water on the face of American attitudes and awakened some concern about energy. Over the last four years, the energy debate seems to have been missed by a very large chunck of the general public. But now when gasoline prices hit a mark that was almost double of what it was just a year ago, it is finally starting to hit home for many people.
 
 I do believe that a shift is beginning to occur. Fuel prices are finally causing Americans to once again think about fuel economy and conservation in a way that hasn't happened in a quarter century. This shift is likely to contribute to the increase in market penetration for light-duty diesel vehicles. Combined with the unexpectedly high popularity of the Liberty CRD and the surprisingly peppy performance of today's diesels, it is finally time Americans gave diesel cars a second look in a significant way. It is the most immediate way we can make an impact on fuel usage. J.D. Power recently projected that diesel passenger vehicles will climb from a 3 percent market share to a 7.5 percent market share by 2012, but I tend to think even more optimistically.
 
 It is fortunate that biodiesel is positioned to address this shift that is occurring by helping to supplement our immediate supply issues, while gearing up to make an even bigger impact in the near future. America is finally ready for biodiesel, and it is our greatest challenge and most important task yet to answer that call.

2005 shaping up as the year for biodiesel

NBB In Sight

Biofuel Brokers, a Michigan-based marketing company, will be marketing Greenfield, Mass.-based Northeast Biodiesel's biodiesel when the plant opens in spring 2006. Biofuel Brokers President and Director Michael Cooper told Biodiesel Magazine the company has more projects on the horizon, and although he couldn't comment on specific details, he said the company hopes to market more than 20 MMgy of biodiesel nationally next year. Biofuel Brokers also has an East Coast office in Maine. For more information about the company, visit <a target="_blank" href="http://">www.biofuelbrokers.com. </a>

Northeast Biodiesel names marketer

Minnesota became the first state to successfully implement a statewide initiative that blends 2 percent biodiesel (B2) throughout its entire diesel fuel supply. Sept. 29 marked the official implementation of the effort after the state met all requirements contained in the March 2002 legislation that received bipartisan support. Minnesota has exceeded the legislative requirement that the state's biodiesel production be at least 8 MMgy. The state now leads the nation with its annual biodiesel production capacity of 63 MMgy. 
 
 "Many people talk about doing something to help change our energy situation in this country; in Minnesota, they don't just talk-they took a stand and did something about it," said Joe Jobe, chief executive officer of the National Biodiesel Board (NBB). "Today, biodiesel produced in Minnesota from soybeans grown in Minnesota is flowing through the veins of the state's energy infrastructure. Liquid solar energy from the Midwest is replacing oil from the Mid-East. Minnesotans should be proud." 
 
 The Minnesota Soybean Growers Association (MSGA) first introduced the B2 legislation in 2000 and again in 2001. With the help of many clean air advocates and agricultural organizations, including the NBB, the legislation that had become known as the "B2 legislation" passed and resulted in three biodiesel plants with a combined production capacity that far exceeds the production required to implement the B2 rule. FUMPA Biofuels in Redwood Falls, Minnesota Soybean Processors in Brewster and SoyMor in Albert Lea are all member plants of the NBB.

 
 "An economic study completed by the Minnesota Department of Agriculture estimates that using just B2 blends will increase the demand for soybean oil in Minnesota by 92 million pounds. That's the equivalent of 8.5 million bushels of soybeans," said Bob Worth, president of MSGA. "But we already have school bus fleets, trucking firms and municipal fleets using a 20 percent blend-B20. Minnesotans really embraced biodiesel for three basic reasons: It's better for the environment, it's good for the economy, and it helps our nation reduce its dependence on foreign oil." 
 
 The biodiesel blend will also help meet an operational need in diesel starting in 2006. Next year, ultra-low sulfur diesel will be phased in nationwide, and some sort of lubricity additive will be required. Two percent biodiesel fully restores the needed lubricity to prevent premature engine wear and tear in diesel engines.

Minnesota implements B2 standard

A recent study from the Department of Energy's National Renewable Energy Laboratory (NREL) shows that nitrogen oxide (NOx) was reduced in chassis dynamometer tests using B20 fuel versus conventional diesel fuel.
 
 The tests were done in two in-use buses with Cummins ISM 2000 engines in a city suburban heavy vehicle cycle. The engines were not equipped with exhaust gas recirculation (EGR) technology that is available on some Cummins models.
 
 NOx reductions, which were not anticipated, were shown at a 5 percent level with a statistical confidence of 99 percent. Expected reductions in other emissions were found but at higher levels than most previous testing, with particulate matter reduced by 24 percent, hydrocarbons by 40 percent and carbon monoxide by 32 percent. 
 
 NREL scientists who conducted this research say this study was not on a large enough scale to determine whether NOx is always reduced, but it does bring into question the largely held belief that NOx increases slightly with B20 in unmodified diesel engines. Since chassis dynamometer emissions are those from an actual vehicle, some scientists believe emissions from chassis dynamometers are more representative of the 'real world' than those from engine-only dynamometers in a test cell. 
 
 NOx reductions have also been found in studies with biodiesel blends of home heating oil done through Brookhaven National Laboratory in New York, because NOx with open flame combustion is dependent on different factors than NOx with diesel combustion.
 The bus tests were done by NREL at its new ReFUEL facility, which was previously the engine test lab of the Colorado School of Mines.

NOx reductions shown in NREL study

NextEnergy Center, a research facility focused on developing alternative energy technology, is bringing together automakers and biodiesel producers to further biodiesel research and development. 
 
 At the grand opening of the research center, located in Detroit's Tech Town community, NextEnergy CEO Jim Croce announced plans with Biodiesel Industries and DaimlerChrysler to research the development of oil producing crops that can be grown on existing brownfield sites to produce feedstocks for renewable, alternative fuels, as well as further refinement of biodiesel industry standards. Croce also announced plans for Biodiesel Industries to build a biodiesel production plant in Detroit.
 
 "Biodiesel Industries has many years of advanced development and production experience in the otherwise young biodiesel industry," Croce said. "Given the tremendous national market demand for their product, we are delighted that Biodiesel Industries has chosen Detroit for their next biodiesel production facility." 

 
 Biodiesel Industries plans to build a 3 MMgy biodiesel production facility. It will be the sixth such production project completed by Biodiesel Industries, which already posts the largest network of company-owned biodiesel production facilities in the world. 
 
 DaimlerChrysler committed currently unused land at a former SuperFund environmental site for use in producing soybeans for NextEnergy research programs. DaimlerChrysler has promoted use of biodiesel fuel nationally with the launch of the Jeep Liberty CRD diesel, which was fueled at the factory with B5, a 5 percent biodiesel blend. 
 
 NextEnergy is a non-profit organization created by the State of Michigan to advance the Alternative Energy Technology industry in Michigan. The organization hosted a grand opening of the NextEnergy Center facility on Sept. 29.

DaimlerChrysler commits land to future biodiesel plant

The Veggie Van Organization, a nonprofit advocacy group based in Venice, Calif., recently partnered with West Central, a farmer-owned biodiesel company based in Iowa, to transport 13,000 gallons of biodiesel to the Gulf Coast. The donated fuel powered a shrimp boat-turned-relief boat and a former military ship owned by Sub Sea Research, as well as emergency generators for makeshift medical facilities aboard the vessel. The ships took 12 tons of food, water, ice and other relief supplies to Hurricane Katrina victims in devastated areas near the mouth of the Mississippi River.
 
 Ships from Naples, Fla., utilized the fuel, as well as ships and equipment in the Gulf. Josh Tickell of the Veggie Van Organization met up with aid vessels to offer his assistance. Tickell grew up in Louisiana and has been promoting biodiesel since 1997 when he toured the United States in his biodiesel-powered "Veggie Van." 
 
 Former President Bill Clinton has publicly endorsed the use of biodiesel in the hurricane relief effort and in other applications. Speaking recently at the Clinton Global Initiative (CGI), a global conference to develop policies and implement solutions to the world's most 
 challenging problems, Clinton thanked Biodiesel America, another Tickell venture. 
 
 President Clinton honored another of the organization's leaders, Richard Blackledge, for his efforts to educate the public about the fuel, and for the emergency fuel shipments he has been coordinating with Tickell.
 
 "Biodiesel America is committed to mitigating climate change and increasing America's energy independence through public school education on biodiesel, and restoration of the coastal areas of Louisiana with biodiesel-generated support systems," Clinton said. "Their initial investment of $50,000 will lead up to a million dollars in services to assist the immediate recovery of southern Louisiana oil-producing and fishing towns. … This is a very, very important thing. … I hope you become a household name in America."
 
 Former Presidents Clinton and George Bush have teamed up for the Bush-Clinton Katrina Fund. "Biodiesel crosses party lines," said Joe Jobe, CEO of the National Biodiesel Board (NBB). The NBB has also helped coordinate donations of fuel. "Most Americans agree it just makes sense to use biodiesel when they hear of the environmental, economic and energy security benefits it offers." Jobe noted that biodiesel is an especially important alternative in times when the nation's fuel supply is threatened by natural disasters or other events because it is biodegradable and non-hazardous.

 
 Blackledge said it was the moment of a lifetime. "It was a real honor to stand shoulder-to-shoulder with President Clinton," he said. "I think it is a sign of how far biodiesel has come. President [George W.] Bush recently talked biodiesel with Tony Blair. World leaders are taking notice and throwing their weight behind biodiesel." 
 
 Unfortunately, Tickell's journey took a turn from assisting to becoming an evacuee himself when Hurricane Rita hit. After his van was struck by debris, he was forced to leave it when a motorist came to his aid. Tickell has since located the van and reported that it received only minor storm damage. 
 
 Tickell and the NBB are continuing to help coordinate fuel donations to hurricane stricken areas. The work of Tickell and his organization has been documented on www.veggievan.org, where monetary donations can also be made to the cause.

Biodiesel aid sent to hurricane areas; Clinton praises efforts

A fuel used and grown by farmers was used for the second year at Farm Aid, the annual concert benefiting family farms. 
 
 "At Farm Aid before, I said, there is a light at the end of the tunnel and it's called biodiesel," said Willie Nelson, a founder and board member of Farm Aid. "We can use soybeans, canola, mustard seed and other crops for our fuel. American farmers need to be growing things we can be using for our energy."
 
 The Sept. 18 Farm Aid concert, held this year near Chicago, used pure biodiesel (B100) supplied by Stepan Company in Northfield, Ill., in its generator set as well as in artists' buses. Bell Fuels of the Chicago area transported the fuel. Nelson and Farm Aid co-founder Neil Young both use biodiesel in their tour buses and personal vehicles. 
 
 "Stepan is happy to participate in Farm Aid by supplying the biodiesel," said Jeff Nelson, biodiesel business manager of Stepan Company, a biodiesel producer and member of the National Biodiesel Board (NBB). "Farmers are lifeblood to the future of our nutritious food supply, and to quality products we know were created and grown with meticulous care. Sponsoring some of the biodiesel is a small way of giving back to that phenomenal group of people, while also using their product." 
 
 "We thank those who originally made this venue celebrating the American farmer possible," said Darryl Brinkmann, NBB chairman and Carlyle, Ill., family farmer. "Willie Nelson needs to be commended for not only being one of the originators of Farm Aid, but also for the strides biodiesel took in the past few years by his use and publicity of the fuel. Starting his own biodiesel company, Willie Nelson Biodiesel, has made new markets such as the trucking industry very receptive to biodiesel." 
 
 Farm Aid Tractor Parade tractors highlighted their biodiesel use with signage on Farm Aid weekend. Another role biodiesel played in Farm Aid 2005 was fueling the Jeep Liberty Common Rail Diesel (CRD) that was auctioned for benefit. 
 

 Neil Young, John Mellencamp and Dave Matthews make up the three other members of the board of directors, and Mellencamp was the third co-founder. Beyond the board members' performances, others included Kenny Chesney, Los Lonely Boys and Emmylou Harris.
 
 To learn more about Stepan Co., visit www.stepan.com. Information about Farm Aid is available at <a target="_blank" href="http://">www.farmaid.org</a>.

Farm Aid concert gives biodiesel an encore

Indiana will soon have a soy biodiesel production facility in rural east central Indiana. Integrity Biofuels, a member of the National Biodiesel Board, selected the Shelby County town of Morristown because it is located near Bunge North America's Morristown facility, one of eight soybean processing plants in the state.
 
 "As we looked at potential production facility sites throughout the Midwest, we found a match in Morristown," said Integrity Biofuels CEO Charles Whittington. "In this site, we had access to an adequate supply of high-quality refined soybean oil, which is the key ingredient to soy biodiesel production. We also found in Morristown a chamber of commerce and a town board that welcomed our renewable fuel company with community support, an infrastructure critical for long-term business success, and valued tax incentives."
 
 Integrity Biofuels has purchased an existing building and expects to be in the business of selling the domestic fuel by early 2006, said Whittington, a Hoosier native. This biodiesel production facility will employ five to seven workers and produce 10 million gallons of biodiesel annually though company officials are already making plans to grow production. In its first year of production, Integrity Biofuels will utilize 6.7 million bushels of Hoosier soybeans. 
 
 Within the state borders, Hoosiers purchased nearly 400,000 gallons of biodiesel last year. In 2005, the Indiana Soybean Board estimates that Hoosier diesel owners will demand close to 4 million gallons of pure biodiesel. The biodiesel offered to Indiana distillate customers today is primarily produced in Ohio or Iowa.

Indiana welcomes soy biodiesel plant

David Cantrell, co-inventor of a novel corn oil extraction technology that removes corn oil from the ethanol production process and provides a lower cost feedstock for biodiesel production, was appointed CEO of Mean Green Biofuels Corp. (MGBC). MGBC is a newly formed company 51-percent owned by Cantrell Winsness Technologies LLC and 49-percent owned by GreenShift Corp. MGBC now has exclusive rights to use the Cantrell-Winsness corn oil extraction technology in the Eastern United States. Cantrell has copious experience in the feed industry and holds a master's degree in Poultry Science from the University of Georgia.

Mean Green Biofuels appoints Cantrell as CEO

Western Iowa Energy, a 30 MMgy plant under construction near Wall Lake, Iowa, named Chris Daniel as general manager. The Carroll, Iowa, native started Sept. 12. Daniel previously worked at Bandag Inc. in Muscatine, Iowa. "The biggest appeal was not so much the homecoming but the opportunity to be a part of this emerging industry," Daniel said. "… Opportunities like this do not come along very often."

Western Iowa Energy names GM

Archer Daniels Midland Co. (ADM) has announced succession-planning steps to replace long-time company CEO and Chairman G. Allen Andreas, as well as President and Chief Operating Officer (COO) Paul B. Mulhollem. ADM Senior Vice President Martin Andreas also recently announced his retirement. 
 With Mulhollem departing immediately, G. Allen Andreas will temporarily assume the duties of both president and COO. He is developing a succession plan for this newly created dual position, and candidates will be sought from within and outside the company. After a new top executive is hired, Andreas will remain at ADM as chairman of the board.

ADM executives retire, successeion steps underway

Jay Haley has been named new chairman of the North Dakota Renewable Energy Partnership (NDREP). He succeeds Jocie Iszler. NDREP promotes ethanol, biodiesel, wind and biomass energy production in North Dakota through development and expansion of renewable energy, and through support of state and federal legislation. The group, formed little over a year ago, is preparing its action plan leading up to the state's next legislative session.

North Dakota renewables group names chair

In an effort to help increase the demand for U.S. soybeans, U.S. Secretary of Agriculture Mike Johanns has selected 19 soybean farmers-directors to serve on the United Soybean Board (USB). Johanns appointed seven new farmers and reappointed 12 previous farmer-directors to the USB, bringing the total of board directors to 64 from 28 states.
 
 Each USB director volunteers his or her time while serving a three-year term where they create and oversee programs to increase domestic and international utilization of U.S. soybeans. "We (USB) must meet the competition from our global competitors, such as expanding the use of soy-based products like soy biodiesel," said Greg Anderson, USB chairman

Johanns appoints USB members

Meadows Springs Inc. acquired 80 percent of Earth Biofuels Inc. in late September. The move allows Earth Biofuels to become a publicly traded company. Meadows Springs is in the process of changing its name to Earth Biofuels Inc. 
 
 Meadows Springs also named five members to its board of directors: Earth Biofuels CEO Tommy Johnson, Apollo Resources International CEO Dennis McLaughlin, move actor Morgan Freeman, attorney Bill Luckett and alternative energy investor Bruce Blackwell.

Meadows Springs acquires Earth Biofuels, names board of directors

Soyatech Inc., based in Bar Harbor, Maine, released its 2006 Soya & Oilseed Bluebook publication in October. The book contains more than 3,350 company listings-70 percent of which are new or have been updated-featuring processors, as well as equipment and service providers. The book includes contact information for 235 processors and suppliers from China. It also contains 65 updated statistical tables and graphs on soybean and oilseed production, processing, price and trade.

 The directory can be ordered or accessed online through a free trial at <a target="_blank" href="http://">www.soyatech.com/
 bluebook. </a>

Soyatech compiles resource book

Charlotte, N.C.-based NewGen Technologies announced the debut of its corporate Web site. Located at www.nwgntech.com, the site provides detailed product and corporate information.
 
 NewGen also announced that its wholly owned U.S. subsidiary, ReFuel America, has signed an agreement with a Canadian firm, Advanced Biotechnology Inc., to form a joint venture to build and operate biodiesel plants in the southeast United States. The new company will be named Advanced Biotechnologies LLC and be managed by Gordon Harper, CEO of Advanced Biotechnology Inc.
 
 NewGen officials said the first facility could have capacity of 60 MMgy and be operable by the fourth quarter of 2006.

NewGen announces new Web site, biodiesel plans

Lanxess Deutschland GmbH has developed a new stabilizing agent to keep biodiesel fresh. The new biodiesel shelf-life improver, Baynox, was created to help ensure that unsaturated fatty acid methyl esters (FAME) don't oxidize over short periods of time in heat, pressure and light. Oxidation "decomposes" long-chain fatty acids to shorter chains and also produces gummy polymers that can harm engine parts. 
 
 Baynox's active ingredient is a chemically simulated, highly effective tocopheral antioxidant (Vitamin E), which dissolves in the FAMEs and is the same viscosity and density as biodiesel. After heavy analysis, the Austrian Mineral Oil Co. awarded Baynox with the "no harm" certificate.

New biodiesel preservative available

The Biodiesel Cold Flow Consortium, a National Biodiesel Board (NBB)-created collaboration of biodiesel producers, petroleum marketers, fuel blenders and various interested experts, teamed up with the NBB to study biodiesel blending in cold weather. The outcome: the Biodiesel Cold Weather Blending Study. 
 
 Three types of biodiesel and unadditized No. 1 and No. 2 diesel fuels were used. A variety of 2 percent biodiesel blends were produced in both splash and injection blending. Results showed that biodiesel must be kept 10 degrees Fahrenheit above its cloud point for successful blending during cold weather. To view the study, visit www.nbb.org and click the "Cold Flow Testing Report" link.

Biodiesel Cold Weather Blending Study released

It wouldn't be difficult to insert a snappy and clever introduction to this article, grabbing the sensationalist curiosity in everyone. But air pollution is a sobering issue, and it's getting graver with time.
 
 As populations increase, more and more people worldwide strive to attain vehicular mobility-and progressively, that mobility is being achieved. Logically so, increased internal combustion travel brings with it apparently inseparable baggage, or amplified levels of air pollution.
 The challenge then is to effectively mitigate some of the damage done by such widespread use of polluting forms of transportation. This is where the proliferation of both biodiesel as a fuel and the diesel engine as an efficient mode of transportation become imperative.

 
 U.S. EPA targets diesel exhaust
 Data produced by the U.S. EPA suggests transportation emissions play a major role in air quality degradation in the United States. Of course, diesel vehicles have been contributing to the problem, albeit not in a way many people think. 
 
 Nitrogen oxides (NOx) and particulate matter (PM), and to a much lesser degree, carbon monoxide (CO) and hydrocarbons (HC) are the four main pollutants emitted from diesel tailpipes. In 2007, the EPA will begin more stringent regulations of PM and NOx emissions, with the most severe regulations coming in 2010. To meet these requirements, many new diesel vehicles, trucks and buses will be outfitted with emissions control technologies, starting in 2007 with particulate filters and climaxing with both particulate filters and NOx abatement devices three years later. 
 
 Even though gasoline vehicles have been sporting noxious pollutant-neutralizing catalytic converters for approximately 30 years, the sheer number of gas-powered automobiles plus an increased number of miles traveled, together place gas, rather than diesel, vehicles at the top of the "major transportation air polluter" list. 
 
 "From a carbon monoxide and hydrocarbon standpoint, we look at what's called the 'inventory,' which is all the carbon monoxide and hydrocarbons that are emitted in the air," said Robert McCormick, senior fuels engineer at Golden, Colo.-based NREL. "Diesel is a really small contributor to the inventory. Gasoline automobiles are by far the largest contributors to the carbon monoxide and hydrocarbon inventories."
 
 As experts like McCormick know, diesels are quite fuel efficient and much lower in some emissions like CO and HC (sometimes called VOCs) than gas engines. This efficiency comes from the diesel engine's lean-burning high air-to-fuel ratio, and it's also what gives diesels lower emissions of these two pollutants.
 
 Jon Van Gerpen, the agricultural and biological sciences department head at the University of Idaho, said untreated diesel vehicles are in the same category-they release comparable emissions-as gas-powered cars with fully functioning catalytic converters. Van Gerpen, an expert in the mechanics of compression ignition engines and their emissions, said that by putting an oxidation catalyst on a diesel engine, CO and HC emissions actually fall below measurement thresholds.
 
 Gasoline powered vehicles have significantly lower NOx emissions as a result of their functioning catalytic converters. Untreated diesels burning conventional diesel, despite being very low in CO and HC emissions, heavily contribute to the NOx and PM inventory. And diesels are visible polluters, spewing black soot over everything in and around their paths, not only as they're truckin' on down the interstate but also as they make their way from one city bus stop to the next. In fact, vehicle-to-vehicle comparisons show that diesel vehicles definitely do emit much more NOx and PM than gasoline vehicles. These factors all contribute to the EPA's reasons for requiring diesel exhaust treatment. 
 

 The unpolished truth about biodiesel's benefits 
 With the overall emissions profile of diesel vehicles gleaming in comparison to that of their gasoline counterparts, the question becomes: To what degree can the use of biodiesel improve diesel emissions, especially for the older fleet vehicles that may continue operation without exhaust treatment? "I am not aware of any retrofit technology that is going to be required for over-the-road trucks," Van Gerpen said, although he acknowledged there might be city bus retrofit requirements in some parts of the United States.
 
 Thus, from an emissions perspective, biodiesel may be an ideal transitional technology as the diesel industry slowly moves from the engines and vehicles of the past toward the finely tuned, high-tech and clean models of 2007 and beyond. "There's quite a few years here where there's going to be some significant benefits from using biodiesel in older fleets-'older' as in anything before 2007," Van Gerpen said. "As those fleets age, there's going to be a lot [of them] that could benefit from biodiesel."
 
 Biodiesel provides many emissions benefits, but some results can hinge on a choice between two commonly administered types of exhaust analysis. That is, whether a researcher relies upon engine dynamometer or vehicle chassis dynamometer testing. Putting that variable aside for now, three out of four major pollutants-PM, HC and CO-are significantly reduced when B100 or biodiesel blends are tested under either method. The higher the biodiesel blend, the higher the reductions are. "It's approximately linear," McCormick said, referring to the positive relationship between increased biodiesel blend percentages and corresponding gains in emissions reductions seen in the lab.
 
 According to McCormick, the emissions benefits of biodiesel come in part from it being an oxygenate, which gives the fuel a more complete combustion. "That means it lowers the products of partial combustion, which are particulate matter, carbon monoxide and hydrocarbons," he said. "For [B100] ... particulate matter reductions can be in the range of 30 [percent] to 50 percent." Similar CO and HC reductions can result in testing [B100], McCormick said.
 
 The phrase "up to 50 percent reduction" usually sounds good when talking about reducing something that's bad or undesired, but when a percentage is tossed around independent of the volumes or quantities it is derived from, one should always be critical and ask, "What are the numbers that constitute the percentage?" Asking this question-and getting the answer-can only arm the discerning biodiesel advocate with the appropriate tools to tackle oppositional arguments. 
 
 McCormick shared a complete data set with Biodiesel Magazine from an NREL vehicle chassis dynamometer test using B20 in transit buses powered by 2000 model year Cummins ISM engines. "For carbon monoxide ... we saw a 32 percent reduction in CO, and that's from about 3.5 grams per mile [of CO from conventional diesel] down to maybe 2.7 grams per mile [of CO using B20]," McCormick said. "For hydrocarbons ... we saw a [25] percent reduction for B20, from about 0.8 to 0.6 grams per mile." 
 
 And there lie the facts. With petroleum diesel only producing 0.8 grams per mile of HC, 25 percent HC reductions may be somewhat negligible. In other words, with such a low initial base number from petroleum diesel, it seems prudent to focus on the largest volume of emissions reductions from using biodiesel: the lessening of PM.
 
 Those particulates matter

 PM emissions from diesel vehicles burning conventional diesel are quite high and very noticeable. And that's where using biodiesel can make the biggest dent in air pollution, McCormick said. "You might get a higher percent reduction for hydrocarbons [using biodiesel blends], but nobody's really that concerned about hydrocarbons from diesel because it's such a small part of the inventory," he said. "PM reduction [from using biodiesel and biodiesel blends] is pretty significant. In an urban area, if you could get a 15 percent reduction in PM across the board-burn B20 in every vehicle-I think that would have a noticeable effect. I think that would be significant."
 
 The role of biodiesel as a transitional technology that allows older fleets to reduce PM carries considerable weight in that it would contribute to improved air quality and, more concretely, reduced PM-linked health risks. PM is a carcinogen, and the smaller the particles, the bigger the health risk. "The fact that biodiesel is a non-synthetic chemical gives it a number of advantages in particle formation," said Dr. Bailus Walker, a professor at Howard University and a vice president of the American Public Health Association. "Biodiesel is not a major cause of fine or ultra-fine particle matter, which penetrates the respiratory tract. It poses no problem, and it actually helps reduce the overall particle load on communities." According to Walker, PM from petroleum diesel adds to the total "body burden of particles," which he said adversely affects the respiratory system. The respiratory system is closely related to the heart, or cardio, system, so when people are exposed to diesel PM, it not only causes such things as asthma and lung disease, but it also exacerbates heart problems as well, Walker said. 
 
 It's not just an urban problem either. "Pollution does not respect geographic or economic boundaries, so no community is safe from it," Walker told Biodiesel Magazine. "It's an urban problem, it's a suburban problem, and it's a rural problem. It's a problem with the whole country, and as we've seen, pollution even crosses international boundaries." 
 
 The rest of the story
 For a comprehensive look at NOx emissions, see the June 2005 issue of Biodiesel Magazine. The long story on NOx made short is that some tests show biodiesel increases NOx slightly while other tests show a neutral comparison with petroleum diesel or maybe even a slight reduction. Both Van Gerpen and McCormick agree that the results obtained from NOx testing depend on what type of test is run-engine tests versus vehicle tests-along with what application the tested vehicle operates under in the real world. Long haul trucks are going to be hitting a particular speed and load cycle that city transit buses rarely see. Therefore, city transit buses may find their "emissions sweet spot" on a vehicle chassis dynamometer, as McCormick said, while an over-the-road truck is better represented by an engine dynamometer test. 
 
 To better capture the complex totality of diesel emissions, different tests are needed for different applications. 
 
 Michael Hass and Melissa Haas of the USDA Agricultural Research Service in Pennsylvania have done some work with butylated hydroxianisole (BHA), an antioxidant. Hess told Biodiesel Magazine that their tests showed a 4 percent to 5 percent NOx reduction when 1,000 parts per million of BHA was used. But due to the expense of BHA, which would add 14 cents per gallon to the price of B100, much work has stalled on this. But if one could find an antioxidant that lengthens the shelf life of the fuel and reduces NOx while remaining economical, a noteworthy find would be made. 
 
 Final important thoughts
 "I would advocate a policy that favored 'dieselization' for energy security benefits and ozone benefits," McCormick said, speaking on the diesel engine's efficiency and reduction of emissions. "Of course, you want to use biodiesel … to get further energy benefits and PM reductions." 

 
 Dieselization, or the switch from predominantly gas-powered mobility to diesel, coupled with the use of biodiesel would have a mitigating effect on global warming, Van Gerpen said. "I think [the global warming argument] is an argument we need to emphasize more and more in the future," he asserted. "We're not releasing fossil CO2, or fossil carbon, using biodiesel." He cited the NREL study done a few years ago, which stated that biodiesel reduces fossil carbon emissions by approximately 78 percent. "That number is really far better than any other fuel out there," Van Gerpen said. "So, as we look to global warming, I think it'll become an increasingly serious issue as time goes on. We have a tremendous benefit there with biodiesel." 
 
 Ron Kotrba is a Biodiesel Magazine staff writer. Reach him by e-mail at<a href="mailto: rkotrba@bbibiofuels.com "> rkotrba@bbibiofuels.com </a>or by phone at (701) 746-8385.

Sure, pollution-pummeling advanced control technologies will likely satisfy the U.S. EPA's 2007 target emissions reductions for future diesel vehicles, but it may take years before pre-existing fleets are actually off the road. Biodiesel can help bridge that environmental gap ... in more ways than one.

Emissions Still Matter

Paul Nazzaro recently found himself sitting in a client's office, leafing through a copy of Oil & Energy Magazine, a publication of the New England Fuel Institute. By Nazzaro's count, the issue had no less than six articles discussing biodiesel and biodiesel-blended heating oil-more commonly known as bioheat. For someone that's been working to promote and advance bioheat for nearly half a decade, the assortment of stories was a pleasing indicator of the renewable fuel's growing acceptance and escalating potential. 
 
 And for Nazzaro, president of Advanced Fuel Solutions Inc. and the National Biodiesel Board's (NBB) petroleum advisor, bioheat's budding popularity means that his longtime push to get the American-made product into heating oil supplies of the Northeastern United States has not been in vain. Bioheat is now widely viewed as a viable heating fuel additive or substitute-and a solution to the region's ailing oilheat industry.
 
 Jack Sullivan is the executive vice president of the New England Fuel Institute (NEFI), an oilheat trade association serving more than 1,000 members. He explained that the heating oil market, although stabilizing in recent years, has been steadily losing market share-mainly to natural gas. He attributes the stabilization, in part, to the marketing and research conducted by the National Oilheat Research Alliance (NORA), which was recently reauthorized through the Energy Policy Act of 2005. Sullivan serves on NORA's executive board.
 
 The main reasons heating oil has lost ground to natural gas is the perception that the latter is cleaner and more convenient to use, according to World Energy President Gene Gebolys. Natural gas has also been perceived as cheaper. With natural gas prices exceeding $14 per MMBtu, however, that definitely isn't the case anymore. "The cost of traditional energy for home heating oil and boiler operations is getting so expensive during the winter season, it's driving a push for looking for alternatives," Gebolys said. "Biodiesel is not a dramatic price savings, but we're within striking distance. It's a good hedge against spikes to the traditional fuel sector."
 
 Inconvenience is no longer an issue either, as leading heating oil distributors have made it as easy to use heating oil as it is to use natural gas, according to Gebolys.
 

 That leaves cleanliness. And bioheat has that issue covered.
 
 Test results reveal surprising trait
 C.R. Krishna is the lead biodiesel researcher at Brookhaven National Laboratory. He's been studying biodiesel and bioheat for the past four years. The New York State Energy Research and Development Authority (NYSERDA) has funded much of his research, as has the NBB. Brookhaven is a multi-program national laboratory operated by Brookhaven Science Associates for the U.S. DOE.
 
 Krishna's research revealed some positive characteristics of bioheat. Although smell, particulate and sulfur oxide reductions weren't completely unexpected, emissions of nitrogen oxides (NOx) were.
 
 "We were surprised to find a reduction in NOx," Krishna said. He added that the amount of NOx reduction was dependent on the burner system being used. Krishna said more work is needed to determine exactly why NOx was reduced in heating oil and not in on-road diesel fuel. "The intricacies of combustion in each process are different," Krishna said. "Maybe that is the reason, but that does not explain it."
 
 Another study, this one conducted by the Massachusetts Oilheat Council and NORA, found similar results when testing a blend of 20 percent soy-based biodiesel in 80 percent low-sulfur highway diesel fuel in residential oil-burning equipment. A preliminary analysis indicated that the environmental cost of the biodiesel blend was less than that of natural gas when gas leakage through distribution was taken into account. The study found sulfur oxide emissions were reduced by 83 percent, and NOx was reduced by approximately 20 percent.
 
 The studies undertaken at Brookhaven National Laboratory, NREL and similar labs have helped sooth the concerns of burner manufacturers. Although none of the major home heating oil burner manufacturers contacted for this story returned calls, it is generally understood that they are aware and supportive of the research.
 
 Which blend is best?

 With tests of B20 blends showing such promise, it begs the question: What is the ideal bioheat blend for the typical consumer's oil burner and the heating oil industry?
 
 Nazzaro said there are three compelling reasons to stick with a 5 percent biodiesel blend in heating oil. The first is that it most closely fits the current supply and demand profile for biodiesel and heating oil. Looking at current and projected production, the biodiesel industry could reach a production capacity of approximately 500 MMgy within 36 months, according to Nazzaro. A 6.7 billion-gallon-per-year heating oil market alone would swallow nearly 70 percent of that potential capacity, even at just a 5 percent inclusion rate.
 
 The second issue is the consumer and fuel dealer cost threshold. Studies, including one conducted by Maine-based Frontier Energy through funds provided by the Maine Technology Institute, have shown that an extra 4 to 5 cents per gallon is about all a consumer or fuel dealer is willing to pay for renewable blends.
 
 Finally, Nazzaro said a 5 percent blend reduces the chance of any technical problems caused by the fuel. 
 
 Krishna said that blend levels ranging from B20 to B30 have worked well in laboratory tests. Brookhaven has studied blends up to B100. In fact, they are working on creating the ideal burner system for B100. "If you want to switch fuels seamlessly, B20 or B30 seems to be the limit where you don't have to worry much about pump and seal degradation," Krishna said. However, Krishna admits that there has not been much long-term study of the effects of bioheat on burner equipment. Current evidence is mostly anecdotal. 
 
 Krishna believes that most heating oil distributors are sticking with low-level blends principally because of the fuel's relative newness.
 Nazzaro said NORA is supportive of 5 percent blends. "It's not just marketing and consumer protection-the stuff works," he said.
 But despite Nazzaro's campaign for widespread use of 5 percent blends, some fuel dealers are selling a variety of blends. Frontier Energy, which has been selling bioheat for four winters, sells two blends of bioheat-B5 and B20. Frontier Energy President Brad Taylor said the product is aimed at two types of audiences. The first, which he termed "Greens," is the environmentally sensitive group willing to pay a higher price for a premium blend in order to help the environment. The second group, which Taylor called the "Red, White and Blues," likes buying an American-made fuel to offset foreign oil imports, but doesn't typically like to pay the higher costs associated with higher blends.
 World Energy recently unveiled its plan to offer a 10 percent soybean-based biodiesel blended with heating oil. It is available in New England at the Bursaw Gas & Oil terminal in Acton, Mass.
 
 Massachusetts-based Worley and Obetz has been selling a 3 percent biodiesel-blended heating oil since October 2004, according to Len Zvorsky, the company's compliance manager. The company services approximately 8,000 homes. Zvorsky said they are selling bioheat at a price competitive with regular heating oil. He said the decision to provide B3 was made primarily due to the biodiesel supply at the time.

 
 The push for long-term widespread use
 Sullivan saw Nazzaro speak at a recent fuel oil conference in New Hampshire. "After seeing him speak and talking with peers, there is some excitement in this product," Sullivan said. "It has the qualities that we need and look for in heating oil."
 
 Sullivan expects many factors will affect this year's heating oil market. He feels conservation levels could reach as high as 10 percent. He added that heating oil inventories are at the high end of the five-year average. "And if there is a boat that can sail product [anywhere in the world], they are coming here," Sullivan said. Therefore heating oil prices might not be as high as the current $2 seen on the futures market.
 However, Gebolys said the industry would still likely use something in the order of 4 million gallons of biodiesel this year to blend with heating oil.
 
 "Demand is going up," Taylor said. "The best thing that happened as far as public awareness is seeing what happened with the volatility of the petroleum market."
 
 Another factor that could benefit bioheat is the possible reduction of heating oil's sulfur content, which is currently 2,000 parts per million (ppm). Nazzaro said NORA's testing was completed anticipating a 500 ppm range.
 Gebolys points out that bioheat could provide a balance to the seasonal biodiesel demand markets, especially those centered in the Midwest, where demand tends to be centered on the planting and harvest seasons. "It's not just a matter of customers, but can you keep the plants running evenly all year, around the clock?" Gebolys said.
 
 Nazzaro said the future of bioheat relies not on its price, but in the product itself. If oil prices should drop, the bioheat market needs to be built on a quality product.
 
 NORA has formulated a task force of industry leaders to study bioheat in the field. Nazzaro said the group has met twice thus far. They are working together to relieve distribution pressure points and assess areas of concern impeding the market.
 "We think it could be huge," Taylor said. "Eventually you're going to see bioheat blended at the terminal. I think every bit of heating oil in New England is going to have some percentage of bioheat. I think that's where we have to go as a country." 

 
 Dave Nilles is associate editor of Biodiesel Magazine. Reach him by e-mail at <a href="mailto:dnilles@bbibiofuels.com ">dnilles@bbibiofuels.com </a>or by phone at (701) 746-8385.

With winter's grip nearing, the nation is looking for ways to overcome what could be its highest heating costs ever. Biodiesel-blended heating oil-bioheat-is offering a cleaner, more exciting alternative.

Warming Up to Bioheat

In an industry where agribusiness giants like Archer Daniels Midland Co. and Cargill are setting out to build biodiesel plants as large as 50 MMgy, Greenline Industries' mission to become the world's leading manufacturer of small- to medium-scale biodiesel processors-that, and its support of decentralized global production-might lack universal appeal. But to Jacques Sinoncelli, the northern California-based company's cerebral cofounder and president, being popular with the "big guys" isn't all that important. 
 
 Sinoncelli isn't a maverick necessarily, he just thinks biodiesel holds a greater, more consequential promise than personal fortune. For him, biodiesel is the real deal-an earth-friendly fuel that can be produced from locally available renewable feedstocks, offering a sustainable source of energy to communities around the globe. "The world has largely gone to a model of centralization, but we feel that decentralization is the way to go," Sinoncelli said. "That's one of the promises of biodiesel … to be able to shift to a decentralized model. For
 example, we could help developing countries become more self-sufficient by just collocating large [biodiesel-powered] generators or water desalinization plants next to biodiesel processors."
 
 This type of industrious idealism drives Greeenline, an offshoot of Bio-Energy Systems LLC, the biodiesel production company Sinoncelli and longtime friend and Greenline cofounder Michael Brown launched in 2002. Under the Bio-Energy Systems name, Sinoncelli and Brown built their first biodiesel plant in Vallejo, Calif. The facility, which was being upgraded and relocated at press time, had an initial capacity of 600 gallons per day but was ratcheted up through a series of expansions to 2.5 MMgy. "It's been a true R&D facility-and it shows it," said Gary Marsh, Greenline's business-savvy vice president of sales. "We're now upgrading the plant to four times its [current] capacity. In order to do that, we're moving to a new, larger location." 
 
 Greenline was spun off of Bio-Energy Systems in late 2004 to develop, fabricate and produce biodiesel processing units. The young company got its feet wet providing the process technology and equipment for Seattle Biodiesel LLC, a 2 MMgy facility located in the city of its namesake, and Southern BioDiesel LLC, a 2.5 MMgy plant in Jackson, Miss. Now, Greenline is in the process of building another 2.5 MMgy plant for San Francisco-based fuel distributor Golden Gate Petroleum. The project is organized under the name Bay Biodiesel, an entity that's also considering a second plant near Reno, Nev., Marsh said. 
 
 Greenline is also under contract to build small-scale "containerized" plants for an undisclosed client that has partnered with Greenline to market the technology. And that's just one angle the company is working. According to Marsh, serious inquiries are coming in from all over the world. "I'm expecting to close in the neighborhood of three to five deals in the next 20 to 30 days," he said, providing few hints about the agreements other than to say at least three of them are based in the United States, each in a different part of the country. 
 
 The Greenline way

 According to Sinoncelli, Greenline's technology, embodied in its MK-series processing units, is fundamentally attractive in two ways: First, it's continuous flow, a rarity for small-scale plants. Second, it excludes the expensive and environmentally dubious process of water-washing methyl esters. Additionally, the MK-series units have relatively small footprints and low costs of initial purchase. In fact, a 1 MMgy processing unit (not including storage tanks and other plant necessities) can be had for as little as $150,000, Marsh said. 
 
 By removing all water content in the first stage of processing, and never reintroducing water in subsequent stages to remove leftover catalyst, soap and glycerin that might remain in the methyl esters, Greenline's process works without excessive water and energy consumption. It also allows a producer to avoid the financial burden of water-regenerating hardware. Instead, Greenline uses ion exchange resin to neutralize those undesirable trace elements and effectively clean up the end product. 
 
 Greenline's continuous flow process is a big draw for some would-be small producers. "Our plants have start and stop times under one hour," Sinoncelli said. "For small plants, batch processes have been the mainstay only because they offer quick start and stop times. That's [historically] been the opposite for continuous flow facilities. But with our design, an operator can shut down the plant in under an hour. It brings the efficiency of continuous flow processing to small production." 
 
 Consistent with the idea of decentralization, Greenline's plants are multi-feedstock capable, which gives producers more flexibility when it comes to the availability and price of raw materials. "I think it's important to be able to accommodate different models of production," Sinoncelli said. "For example, it would be nice for a small community to recycle its yellow grease from local restaurants, process that grease and feed it back as fuel in county vehicles. In that sense, biodiesel production could support the self-sufficiency of a small town." 
 
 Greenline is focused on small- and medium-scale production, of course, but the company's 1MMgy to 10MMgy plants are expandable. "We think it is important to be able to easily expand with minimal reconfiguration," Sinoncelli said. "That's the nice thing about continuous flow processes. You have much better ability to scale plants up or down. For example, someone might want to get their feet wet by starting with a 7 [MMgy] plant. At the same time, they might eventually want to go to a 12 [MMgy] or 14 [MMgy] plant. Knowing that, you can pre-equip the plant-even though it may be running at a smaller capacity-to be able to handle higher outputs with minor modifications down the road."
 And although Greenline currently offers nothing larger than a 10 MMgy facility, Sinoncelli acknowledged that the definition of small- and medium-scale production might change as the industry expands and matures. "We could evolve the process," he said. "Maybe small- to medium-scale plants will be defined in a couple of years as 1 [MMgy] to 20 [MMgy] facilities. That would certainly be within what we would like to do." 
 
 It should be mentioned that Greenline bases the production capacity of its processing units on a 24-7, 350-days-per-year production model. However, Sinoncelli pointed out that many small-scale operations run on standard working-hour schedules (e.g., eight hours a day, five days a week), and are shut down daily. "That was one of the reasons we felt it was imperative to have a very easy start and stop methodology," Sinoncelli said. 
 
 Greenline can deliver a biodiesel plant, whether it's containerized or site assembled, in less than three months. "As we're building more and more processors, we are establishing agreements with some of our key vendors, and they're starting to stock the parts that are made especially for us," Sinoncelli said. "So now we can comfortably put out a processor in under 90 days-for any size plant up to 10 [MMgy]." The assembly is done primarily at the company's Vallejo headquarters, with some of the work subcontracted to vendors. Sinoncelli said Greenline also offers turnkey design/build services and can handle the installation of loading and offloading racks, tank farms and other auxiliary plant requirements.
 
 Global, decentralized production 

 Greenline's global strategy is centered on building affordable skid-mounted processing units that can be shipped anywhere in the world in 8-foot-by-20-foot containers. "This type of processing unit opens up the possibility of biodiesel to the entire world, quite literally," Marsh said. "That's one of the things that Greenline is really committed to-and something that got me interested in what Jacques and Michael were doing. … Essentially, what we are looking at is a situation where you don't really have to bring the feedstock to the processor, you can actually bring the processor to the feedstock. And you can deliver it as close as possible to the people that are going to be using it." 
 
 And decentralized production isn't just a model that works in developing countries. Marsh said it has great appeal right here in the United States. "We have talked to small- and medium-sized trucking firms that could put a biodiesel plant right in their backyards and, at the very least, produce their own biodiesel," he said. "We've also talked to folks that are located in logging areas, who could produce and cross-market biodiesel to other industries. We're talking to small agricultural co-ops that could operate their machinery on biodiesel they would produce themselves." 	
 
 While the world's largest plants might enjoy beneficial economies of scale, the efficiency of small- and medium-scale production is perhaps underestimated. Sinoncelli said that by taking a broad view of the efficiency of biodiesel production, small-scale plants start to make a lot of sense. "A local farm co-op could have a biodiesel plant on site and use the resulting fuel for its tractors and machinery, which could very easily be a million gallons per year or more, even for a small co-op," Sinoncelli said. "Look at that model and calculate all the [energy] that would otherwise be needed to transport [conventional] diesel fuel to the site. Compare it to a large, centralized plant-the shuttling back and forth from distribution and production centers, the transporting of raw materials and, of course, the finished product going back the other way-and I think you're probably talking about more efficiency, not less." 
 
 Sinoncelli isn't opposed to large-scale production, but he feels strongly that centralized production simply does not reflect the true promise of biodiesel. He hopes the growing international industry is big enough for both models. "Fortunately, we are at a stage where we can create the type of industry we want," he said. "I feel that by providing a way for local communities to be able to provide their own energy, not only will they be self sufficient and less dependent on the rest of the world's resources, but I think it will have a domino effect and, who knows, maybe even help unshackle some nations from undesirable economic bonds." 
 
 Tom Bryan is editorial director of Biodiesel Magazine. Reach him by e-mail at <a href="mailto:tbryan@bbibiofuels.com">tbryan@bbibiofuels.com</a> or by phone at (701) 746-8385.

Vallejo, Calif.-based Greenline Industries may offer small- and medium-scale biodiesel processors, but its long-term global mission is anything but undersized. With an efficient continuous-flow process that uses relatively little water, this company is ready to bring renewable power to the people.

Thinking Small, Globally

After suffering one of its worst economic crises in 2001-'02, Argentina is on the road to recovery, but despite improved economic indicators, the country continues to suffer side effects from its dramatic recession. For the biodiesel industry, however, the crisis has generated significant opportunities. Low investment in oil exploration in Argentina and record-high international petroleum prices have raised concerns that local oil production will decline in the coming years. If it does, Argentina could become a net importer of gasoline and diesel, which would cause nationwide price hikes at the pump. To make matters worse, natural gas shortages during the winters of 2004 and 2005 have hurt the legions of automobiles that operate on vehicular natural gas (VNG), and analysts predict the supply issues will continue next winter. 
 But these factors, along with a boom in the nation's agricultural output, have forced the country to look into alternative fuels, including biodiesel. The first step toward making the country's biofuels program a reality came last December, when Argentina's Senate unanimously passed a bill that would require gasoline and diesel sold at the pump to contain 5 percent ethanol and biodiesel, respectively. The bill would have three principal effects: it would diversify Argentina's energy matrix, making it less dependent on petroleum; it would create new demand for its massive vegetable oils industry; and it would help clean up Argentina's air pollution, particularly in its major urban centers.
 
 The bill is expected to pass but has been held up by the finance committee of the lower House, which is concerned about granting the industry a series of tax breaks that observers feel is necessary for the program to get off the ground. If passed as is, the bill would mandate the use of 5 percent biofuels in gas and diesel within five years.
 
 The bill has otherwise received ample backing, including the support of President Nestor Kirchner's administration. However, it has also stalled because of the congressional elections held in October. Nonetheless, experts expect the bill to pass later this year or in 2006.

 "If the law passes, it will be extremely important for the oilseeds industry," said Alberto Rodriguez, the executive director of the Argentine Oilseed Chamber. While the chamber has not yet estimated projected demand levels if the law is passed, Rodriguez expects vegetable oil sales to increase substantially. "Soybean is the only oilseed crop with the scale that could meet the demand," he added.
 
 Diesel consumption accounts for over 50 percent of Argentina's fuels consumption, followed by gasoline at 33 percent. With a B5 mandate, Argentina would be required to produce an additional 2.44 million metric tons of soybeans by government estimates.
 
 The Agricultural Secretariat is proposing that a B20 program be adopted in rural areas, which would help farmers reduce their dependency on petroleum-based diesel and reduce the impact of international price fluctuations. 
 With the expectation that the bill will be passed in the near future, Spanish-Argentine crude oil firm Repsol YPF announced in June it would begin producing biodiesel in Argentina, which would make it the first large-scale biofuels manufacturer in the country. In a company statement, Reposol YPF officials said that, given the country's production of oilseeds, there are significant opportunities for biodiesel production in Argentina.
 
 Repsol has already set up a research center for biofuels in La Plata, in the eastern part of the country, where one of its oil refineries is located. The center is studying the feasibility of producing fuel from vegetable oil and animal fats. The project counts on the support of the government of Buenos Aires province and is also coordinated with local farmers.
 
 According to industry estimates, there are an additional 20 biodiesel plants in Argentina, all of which are small scale. Several other small-scale plants are expected to come on line in the coming months, but no other major plant is likely to come off the drawing board unless the law is passed, according to Rodriguez. "For any major investments to move ahead, the tax incentives will need to be well-defined," he added.
 Nonetheless, several small plants recently began operating. In early October, Argentina's second largest seed producer, Don Mario, inaugurated a plant in Chacabuco, Buenos Aires, with the capacity to produce 500,000 liters (132,000 gallons) of biodiesel per year. The small-scale plant will allow the seed company to produce its own fuel, but the seed company also plans to promote the use of biodiesel among its clients.
 
 The technology used in the plant was developed by Bionerg, a company formed by a group of researchers from the Catholic University of Buenos Aires. The plant cost an estimated US$155,000. Bionerg estimates that the plant will allow the company to reduce its fuel costs by 45 percent. According to German Beckmann, an executive from Bionerg, there has been a great deal of interest in the plant from soy producers, and Bionerg expects to bring an additional six plants on line in the near future. 
 
 Beckmann said that Argentine farmers are seeking to export and produce value-added products from soybeans and other commodities, and that biodiesel represents a good opportunity. He added that large farmers are eyeing their own production of biodiesel in an effort to limit their exposure to diesel price fluctuations. "The agricultural sector uses a lot of diesel and with oil prices at current levels, farmers are seeking a hedge," he added. While Bionerg has been focusing on the Argentine market, Beckmann said they have received some interest from potential buyers in the United States and in Eastern Europe.
 
 Another plant that recently came on stream is the Química Nova plant, located in Caimancito, in the Jujuy province, which has a production capacity 30 cubic meters (8,000 gallons) of biodiesel per day. The plant uses soy oil as feedstock, and Química Nova has plans to bring the production capacity up to 80 cubic meters (21,000 gallons) per day.

 
 In Villa Mercedes, in the province of San Luis, Zichy Thyssen Biodiesel has plans to invest US$40 million to construct a plant with a capacity to produce 100 tons (1.5 million gallons) of biodiesel annually. Likewise, Horreos de Argentina is also considering a new project which will be located in the province of Santa Fe and will have a production capacity of 300 tons per year (4.5 MMgy). CODESU is studying the feasibility of developing a biodiesel plant based on rapeseed in the province of Neuquen. There are also a series of feasibility studies for at least four other plants. 
 
 If all of the projects currently being considered are built, Argentina will have the capacity to meet local demand for B5, according to analysts. Likewise, Argentine soy farmers will have the capacity to meet increased demand resulting from the production of biodiesel, according to Rodriguez. In recent years, Argentina has expanded its agricultural production significantly and is now the world's second largest corn exporter after the United States, and the third largest soy producer and exporter after the United States and Brazil. 
 
 Since the 2001 devaluation, Argentina has become a major exporter of grains, harvesting 38.3 million metric tons of soybeans during the 2004-'05 season, up 21 percent from 31.5 million metric tons in the previous harvest, according to data released recently by the Agriculture Secretariat. During the upcoming harvest, soy planting is expected to expand by 1.1 million hectares to 15 million hectacres, at the expense of other grains being planted. As Argentina's 2005-'06 crop-year gets underway, analysts forecast a record soybean harvest and surging sunflower seed production, but corn and wheat output will slump.
 
 Argentina posted record soybean, corn and wheat harvests in the 2004-'05 season, which was the result of favorable weather and improved seed technology. Soy acreage and output have both surged since genetically modified seeds were approved in 1996. Production rose over 300 percent in the past decade, reaching a record 38.3 million metric tons in 2004-'05. The government forecasts 2005-'06 soybean output at a record 40 million metric tons, while the USDA foresees 39 million tons in the United States.
 
 Other oilseed output from Argentina's sunflower and rapeseed crops could also benefit from demand for vegetable oils for biodiesel production. Sunflower seed area is also seen growing by as much as 25 percent, rebounding after drought hurt plantings last season in northern provinces, such as No. 3 producer Chaco. Production is forecast at 4 million to 4.1 million metric tons, up from 3.65 million last season but far from the record 7.1 million tons registered in 1998-'99.
 
 The soy crop and soy crushing industry will be the basis for a successful biodiesel program in Argentina, analysts say, as no other crop has near the capacity to meet expected demands. 
 
 "Once the law passes, Argentina will be on the road to becoming a major biofuels producer," Beckmann said. n
 
 Elizabeth Johnson writes regularly for Biodiesel Magazine. Her last contribution, "Brazil's Biodiesel Rush," was published in our August/September issue.

Argentine lawmakers are expected to pass a nationwide B5 mandate that would lessen the nation's dependence on fossil fuels, create new demand for its massive vegetable oils industry and help clean up major urban centers. Producers, most of them small-scale, are rising to the call.

Argentina'S Climate of Growth

More than just a deliverer of parcels, the United States Postal Service (USPS) is recognized as an innovator in fleet management, automotive technology and alternative fuel use. At the same time, however, the Postal Service has a reputation for being a tremendous consumer of fuel. It currently operates the largest motor vehicle fleet in the nation, consuming approximately 93.5 million gallons of gasoline and 34 million gallons of diesel fuel per year. 
 

 Searching for ways to offset emissions and cut back on its consumption of petroleum fuels, the USPS began operating flexible fuel vehicles (FFVs)-cars and trucks designed to run on ethanol-gasoline blends as high as E85-in the early 1990s. Today, the Postal Service operates the largest FFV fleet in the world. 
 
 Riding on its success with ethanol-blended gas, the USPS established an aggressive strategy for evaluating and implementing the use of biodiesel blends. The Postal Service started using biodiesel blends in its fleet vehicles in 2000, in part to assess the viability and cost effectiveness of the fuel and in part to comply with the federal Energy Policy Act of 1992 (EPAct). EPAct required that by 2004, 75 percent of all new light-duty vehicles acquired by U.S. government agencies be capable of operating on-but not necessarily using alternative fuels. In 2004, the USPS met and exceeded that requirement with 79 percent of its fleet vehicles running or able to run on alternative fuels. "The USPS has met or exceeded the requirements of EPAct every year-a fact that we're very proud of," said Han Dinh, USPS program director for vehicle engineering. 
 
 With biodiesel playing a significant role, ethanol, compressed natural gas and electric-powered vehicles were also large factors in meeting the requirements set by the federal government. 
 
 Since 2000, USPS fleets have steadily increased their collective use of biodiesel by using B20 in heavy-duty fleet vehicles in various regions of the country. In fact, over 941,000 gallons of B20 were used to fuel USPS fleet vehicles in 2004, compared to roughly 400,000 gallons of B20 in 2000.
 
 Biodiesel research
 In an effort to evaluate the performance of biodiesel, the USPS teamed up with NREL in 2004, conducting a research project designed to critically evaluate the effects of using B20 on engine systems. The results were compared to the effects of conventional petroleum diesel use. 
 
 Primarily, the USPS wanted to document the effects of biodiesel's enhanced lubricity characteristics and how that might lessen mechanical wear on engine components, in addition to evaluating B20's compatibility with non-metal engine parts, its solvent characteristics, deposit-forming tendencies and corrosive potential. Throughout the duration of the project-which was the first of its kind performed in the United States-NREL's primary role was to handle the assessment and evaluation of test vehicles. "This study has been very important," Dinh said. "It is the first [fleet study of its type] where engines have been completely torn down and evaluated." 
 
 Four fleet vehicles, all from the Miami area, were used in the project. The vehicles involved were two identical 1996 Mack Tractor semi trucks and two identical 1993 Ford nine-ton cargo vans. These vehicles all had similar mileage and had been operating on conventional diesel until 2001 when they started running biodiesel blends. The test vehicles were compared to four other identical vehicles, which had been operating exclusively on conventional diesel in similar conditions. The Mack semi trucks used in the study were used to pull full-size trailers from airports to local distribution centers; the routes were mainly short, resulting in mostly city highway miles. The Ford cargo vans were used to transport items between major USPS facilities. These routes were long, resulting in mostly interstate highway miles. 
 
 As part of the analysis process, the engines from the B20-fueled trucks and the petroleum-fueled trucks were removed from their chassis and evaluated using defined protocols. After each engine was disassembled, they were inspected for wear, breaks and other structural/mechanical damage. Each engine was also checked for any accumulation of dirt, sludge and carbon deposits. 

 
 Project findings, which were finalized in the first quarter of 2005, found "mixed results," Dinh said, but were fundamentally positive. In fact, the only negative effects associated with B20 stemmed from what the USPS believes was a case of fuel contamination. 
 
 In biodiesel's favor, initial results indicated that there were no significant mechanical issues or adverse operating conditions resulting from the use of B20 in the Ford cargo vans. "We didn't see any major differences … between the cargo vans," Dinh said. 
 
 The Mack semi trucks also showed no signs of any mechanical issues; however, some fuel system issues did arise during the study. "The Mack [trucks] using biodiesel had issues with the fuel system plugging," Dinh said. "We will be researching this problem further, but believe that there was some sort of fuel contamination in the [vehicle] fuel tanks that caused the clogging." The USPS has since been working with Mack engineering to work on solutions to correct the problem. 
 
 Another upshot for biodiesel was the fact that the report categorized conditions of engine wear on all the tested vehicles as "normal" for the length of service and accumulated mileage of the vehicles. 
 
 After the testing was complete, the Mack semi trucks were rebuilt and put back into service. The Ford cargo vans, which were at the end of their life cycle, were torn down and scrapped. 
 
 A number of new cargo vans that will replace the ones used in the study and others like them will operate on B20, Dinh said. The cargo vans used in the study burned both B20 and conventional diesel during their life cycles, and were 10 to 12 years old. With the new vehicles, the USPS will be able to study how B20 would affect an engine from the beginning to the end of its life cycle.
 
 Dinh presented the initial results of the project at the 2005 National Biodiesel Conference & Expo in February. "The results from this one-of-a-kind study have sparked a lot of interest in the biodiesel industry," Dinh said, adding that the Postal Service will continue to share the practical knowledge it gained through the study with other vehicle fleet operations, as well as the industry and the pubic.
 
 The future of biodiesel and the USPS 

 The Postal Service expects its use of biodiesel to rise significantly in the coming years due to the recent federal biodiesel tax incentive, future prospects of lower biofuel costs and a more readily available commercial biodiesel refueling infrastructure. In 2004, the USPS consumed slightly less biodiesel than it did in 2003. But Dinh said the decrease was caused by a number of fleet trucks being taken out of service because they had reached the end of their life cycle, as well as the limited availability of biodiesel in some areas of the country. As the price of biodiesel becomes more competitive-especially in the face of record-high petroleum prices-USPS expects to operate more vehicles on B20 in additional sites across the nation. "We have a couple of new projects getting underway and more are sure to come," Dinh said. 
 
 While the latest study was conducted in the Miami area, and USPS fleet use of B20 has been largely confined to the Manhattan, Detroit and St. Louis areas, Dinh said the next USPS biodiesel project will be open to the entire nationwide fleet. The project will seek USPS fleet managers willing to run biodiesel blends in their vehicles for a certain amount of time. The USPS Vehicle Engineering Department will then run tests on the vehicles used in the program. Tests would include taking oil samples, inspecting fuel tanks containing biodiesel blends, and checking engine wear. "There has been a very receptive response so far," Dinh said. "Many areas such as Denver, Oklahoma and Alabama have shown interest in participating." 
 
 In addition, the USPS and NREL are planning to team up again soon on a biofuels emissions study involving both biodiesel- and ethanol-blended fuels. 
 
 Dinh said the USPS is also interested in testing the effects of biodiesel blends in smaller vehicles. To date, most biofuels-related fleet testing has been performed on relatively large trucks and vans. The smaller home and business delivery trucks have reportedly not been studied in the same way. The USPS has recently purchased 10 new Jeep Liberty CRD sport utility vehicles for residential mail delivery and, in the future, these or similar diesel-powered vehicles could be evaluated.
 
 In the not-to-distant future, the USPS hopes to see most of its massive fleet using alternative fuels. It's an ambitious objective that would take years to achieve. "It is a major challenge," Dinh said. 
 
 But then again, so is delivering 206 billion pieces of mail per year. 
 
 Kory Wallen is a Biodiesel Magazine staff writer and photographer. Reach him by e-mail at <a href="mailto:kwallen@bbibiofuels.com ">kwallen@bbibiofuels.com </a>or by phone at (701) 746-8385.

The United States Postal Service, a true pioneer in fleet alternative fuels use and testing, completed a research project this year that critically evaluated the effects of biodiesel blends on engine systems. The results were fundamentally positive.

Beyond A Fleeting Chance

October 25-27, 2005
 Radisson SAS, Royal Garden Hotel
 Trondheim, Norway

 The deadline for the European Union's 2010 goal of 12 percent renewable energy use is quickly approaching. Partly in response to that goal, the Norwegian Bioenergy Association is organizing Bioenergy 2005, the largest Nordic bioenergy conference. This three-day conference opens with plenary sessions followed by 10 half-day parallel sessions. The conference will explore the future of bioenergy production in the Nordic region. Target groups are public and private policy decision makers, energy sector consultants and planners, the agriculture sector, equipment vendors, and biofuels and bioheating suppliers, among others.
 +47 2336 5870
 <a target="_blank" href="http://">www.bioenergy2005.no</a>

Bioenergy 2005

November 3-4, 2005
 Hotel Monaco
 Chicago, Illinois
 With North American biodiesel production more than doubling each year, major agribusiness corporations and investors are beginning to take a stake in this growing industry. This two-day event, titled "Finding opportunities and managing risk," will be valuable for both existing biodiesel producers and those who are new to the industry and exploring opportunities. Attendees will include biodiesel producers, commodity traders, agricultural banks, state government agencies and financiers with an interest in biodiesel markets in North America. This conference provides insight on the business climate and strategies for investment in the biodiesel industry.
 (866) 355-2930
 <a target="_blank" href="http://">www.platts.com/Events/PB540X/index.html</a>

Biodiesel Investor Conference

November 13-15, 2005
 Peninsula Palace Hotel
 Beijing, China
 Minnesota Gov. Tim Pawlenty, from one of America's leading biofuels states, will be the keynote speaker at the 2005 World Biofuels Symposium-China. The purpose of the symposium is to exchange technological advancements and policy options to help grow the biofuels industry in a country that is currently the second largest consumer and importer of fossil fuels. Attendees will also have the opportunity to visit one of the world's largest ethanol plants, Jilin Fuel Alcohol Co. Ltd. The Chinese have requested participation in the symposium by foreign engineering firms and technical experts in order to quickly move the industry forward. The renowned Tsinghau University, the state of Minnesota and BBI International have partnered to organize a highly productive symposium and promote international trade opportunities. 
 (719) 539-0300
 <a target="_blank" href="http://">www.worldbiofuelssymposium.com</a>

World Biofuels Symposium-China

December 7-9, 2005

 Hyatt Regency Hotel
 Chicago, Illinois
 The American Seed Trade Association's 35th Annual Soybean Seed Research Conference will again be jointly held with the Corn & Sorghum Research Conference. The event represents the largest annual gathering of seed professionals in the world, and features the ever-expanding trade show, the Seed Expo. Soybean-related sessions are featured on the first day of the two and one-half day event. National Biodiesel Board CEO Joe Jobe is scheduled to discuss what the expanding biodiesel industry needs from soybean producers. A general session "Town Hall" panel will feature the leaders of four of the largest seed companies affecting biotechnology in the world to discuss the future of biotechnology. Register by Nov. 15 and save $75.
 (703) 837-8140
 <a target="_blank" href="http://">www.amseed.com/mtg_css05_geninfo.asp</a>

2005 Corn & Sorghum and Soybean Seed Research Conference

December 13-15, 2005
 Fairmont Royal York Hotel
 Toronto, Ontario
 With several commercial-scale biodiesel projects and three provincial ethanol mandates coming into effect, the biofuels industry is taking off in Canada. The second annual Canadian Renewable Fuels Summit (CRFS) is considered the No. 1 networking opportunity for the Canadian biofuels industry. With the first annual CRFS attracting a standing room only crowd, even more attendees are expected this year in Toronto. This year's CRFS involves key decision makers and addresses ethanol and biodiesel opportunities for growth in Canada, Canadian and world market reports, significant trade issues and a status report on the federal Ethanol Expansion Program. Take the opportunity to network with industry leaders including fuel producers, technology suppliers, government policy makers and investors.
 (519) 576-4500
 <a href="mailto:www.bbibiofuels.com/crfs">www.bbibiofuels.com/crfs</a>

Canadian Renewable Fuels Summit

February 5-8, 2006
 San Diego Convention Center/
 Omni San Diego Hotel
 San Diego, California

 Judging from the 2005 meeting, the National Biodiesel Conference & Expo 2006 is sure to attract a record number of biodiesel marketers, consumers, feedstock growers, fuel distributors, government leaders and biodiesel users. Again in 2006, the National Biodiesel Board is planning a rich educational program featuring presentations and discussions from the industry's most influential and knowledgeable leaders. The conference will include an array of networking and social events, including a golf tournament, Super Bowl party and several informal gatherings, along with an expo containing more than 70 exhibitors. The conference includes more than 40 sessions covering everything from fuel quality standards, federal and state legislation updates, European marketing strategies and opportunities in the agricultural uses of biodiesel.
 (800) 841-5849
 <a target="_blank" href="http://">www.biodiesel.org/expo2006</a>

National Biodiesel Board's National Biodiesel Conference

As reported in this magazine, the number of biodiesel plants recently constructed, being constructed or in the feasibility stage has been rising sharply. These plants employ different technologies, feedstocks and ownership structures. However, they have one major thing in common: They each require a great deal of capital, and most will require investors in addition to the project developer. When a project reaches the point of finding investors, it enters the land of securities laws. 
 Intended to protect investors, federal and state securities laws apply whenever a project offers and sells securities to raise money for the business. The category of "securities" generally includes corporate stock, units issued by a limited liability company and many debt instruments. The basic requirement of both the federal and state securities laws is that a company intending to offer and sell its securities must either register its securities with the Securities and Exchange Commission (SEC) and state authorities in the states where the securities will be offered, or fit within an exemption from registration. 
 
 Registered offerings
 Because the registration process can take several months and involve significant effort from all members of the project team, companies will generally try to fit within one of the exemptions from securities registration. However, the benefit of registration is that the project can seek investment from an unlimited number of investors in those states where the offering has been registered, including from an unlimited number of "non-accredited" investors ("accredited" investors are generally individuals with more than $1 million in net worth or more than $200,000 in annual income). A registered offering also provides more flexibility in a project's ability to reach the investors through advertisements, radio pronouncements, etc. 
 
 In the registration process, the company will work with its attorney and accountants to prepare a prospectus that describes, among other things, the business, the terms of the shares or units to be sold to investors, and the risks of investing in the project. That document will then be filed with the SEC and the appropriate state officials for their review and comment. Only after responding to their comments by modifying the prospectus will the project be authorized to actually accept investment from investors. Detailed requirements governing what you must disclose about your project may restrict the project's ability to include projections of anticipated financial results. 
 
 Intrastate
 Another alternative is provided by the "intrastate" exemption from federal securities registration. Under that exemption, it isn't necessary to register your offering with the SEC if the offering is conducted entirely within the state where the business is located and all of the investors are residents of that state. However, it may be necessary to register with the securities officials in that state, a process that is expected to be less expensive and time-consuming than registering with the SEC. These intrastate offerings can involve public advertising within the state where the business is located and, depending on the particular state rules, may also include projections of expected financial results. 

 
 Private placement
 Another alternative would be less expensive and time consuming if the project is able raise the necessary investment from a small group of investors. Such an offering can be conducted under a "private placement" exemption. An offering that does not involve public advertising and in which securities are sold to fewer than 35 non-accredited investors does not have to be registered with the SEC. A private placement offering isn't reviewed by the SEC but is simply prepared by the project team. Private placement offerings can also include projections, although that step should be taken with caution. 
 
 Regardless of whether the offering is registered or exempt, the project will need to disclose all material information about the project to the prospective investors, and must comply with all applicable federal and state securities laws. 
 
 Mark Hanson and Todd Guerrero are members of the Agribusiness and Alternative Energy Practice Group of Lindquist & Vennum PLLP, a leading provider of legal assistance on bioenergy projects throughout the country. They can be reached at (612) 371-3211. Ron McFall, a senior securities partner in the group, contributed to this article.

The Impact of Securities Laws on Biodiesel Projects

Legal Perspective

"My neighbor just spent thousands of dollars to have her car converted to run on biodiesel," said the lady standing in front of our trade show booth. Several questions later, it finally became apparent that the woman's neighbor had, in fact, installed a vegetable oil system in a diesel-powered Volkswagon and-shouting from the rooftop-she was calling it biodiesel. 
 
 The National Alternative Fuels Training Consortium (NAFTC), headquartered at West Virginia University in Morgantown, W.V., attends many industry conferences and trade shows where our staff fields inquiries from industry professionals and consumers alike. At the recent annual meeting of the North American Council of Automotive Teachers, myself and NAFTC Executive Director Al Ebron even had the opportunity to discuss diesel issues with Lyle Clessie Cummins. 
 
 Biodiesel holds great promise as an alternative fuel ready to help improve the American way of life. Yet biodiesel technology is poorly understood. More critically, it is misunderstood by many individuals who need to understand it well, such as fleet managers, public officials and private industry decision makers.
 
 One of our jobs at the NAFTC is to bring the news of biodiesel and other clean energy alternatives to these individuals, as well as students and the general public. The NAFTC-the only nationwide alternative fuel vehicle and advanced technology vehicle training organization in the United States-is a national leader in promoting programs and activities that will lead to energy independence and the greater use of cleaner transportation. Our mission is to provide the training infrastructure for implementing the widespread use of alternative fuels, alternative fuel vehicles and advanced vehicle technologies. All of this is embodied in our motto: "Because Clean Air and Energy Independence Matter."
 Founded in 1992, the consortium presently consists of 25 member community colleges, spanning the country from New York to California. Each college serves as one of our National Training Centers and provides "Training with Impact" through its experienced instructors and real-world shop facilities. Biodiesel education follows three paths at the NAFTC:

 
 1.We offer a two-hour workshop presentation: "Introduction to Biodiesel." This instructor-led presentation discusses the basic properties of the fuel, quality standards, blends and the main issues surrounding use of biodiesel, both pro and con. This presentation is intended as a non-technical introduction to the renewable fuel and is ideal for advocacy groups, local officials and students.
 
 2.One of our latest course offerings is a comprehensive, two-day study of biodiesel and diesel technology titled "Overview of Biodiesel." This in-depth technical course covers everything from feedstocks, lipids, transesterification and titration of feedstock to fuel quality standards, environmental issues and much, much more. 
 
 3.Our member schools incorporate biodiesel information into their regular automotive technology curriculum. By this process, tomorrow's automotive and truck technicians are gaining knowledge of biodiesel and other energy alternatives as part of their core technical education.
 Both the workshop and full course have been extremely popular with attendees. The "Overview of Biodiesel" will continue to be offered on a periodic basis at our national training lab. NAFTC's biodiesel programs are available nationwide. Courses and workshops can be arranged on a custom basis by contacting our national headquarters at West Virginia University. I also invite you to visit our Web site at <a target="_blank" href="http://">www.naftc.wvu.edu.</a> Of special interest is our e-news articles, which can be easily accessed from our home page. 
 
 Rich Cregar is an instructor and research associate at the National Alternative Fuels Training Consortium. Reach him by e-mail at <a href="mailto:Rich.Cregar@mail.wvu.edu ">Rich.Cregar@mail.wvu.edu </a>or by phone at (304) 293-7882.

The NAFTC is Advancing Biodiesel Education

November 2005

Business Briefs

Northeast Biodiesel names marketer

Mean Green Biofuels appoints Cantrell as CEO

Western Iowa Energy names GM

ADM executives retire, successeion steps underway

North Dakota renewables group names chair

Soyatech compiles resource book

NewGen announces new Web site, biodiesel plans

New biodiesel preservative available

Biodiesel Cold Weather Blending Study released

Columns

Editor's Note

NBB In Sight

Legal Perspective

Talking Point

Featured

Emissions Still Matter

Warming Up to Bioheat

Thinking Small, Globally

Argentina'S Climate of Growth

Beyond A Fleeting Chance

November 2005.css-7jxktu{position:absolute;bottom:0px;left:0px;right:0px;height:3px;border-radius:3px;background-color:var(--chakra-colors-brandBlack);}

Business Briefs

Northeast Biodiesel names marketer

Mean Green Biofuels appoints Cantrell as CEO

Western Iowa Energy names GM

ADM executives retire, successeion steps underway

North Dakota renewables group names chair

Soyatech compiles resource book

NewGen announces new Web site, biodiesel plans

New biodiesel preservative available

Biodiesel Cold Weather Blending Study released

Columns

Editor's Note

NBB In Sight

Legal Perspective

Talking Point

Featured

Emissions Still Matter

Warming Up to Bioheat

Thinking Small, Globally

Argentina'S Climate of Growth

Beyond A Fleeting Chance

November 2005