American Biodiesel news

ST. LOUIS - The success of the growing biodiesel industry has resulted in a supply problem, but the increased need will be met by soybean growers, executives of the new United Soybean Board said.
Directors of the checkoff board, which elected new officers at its annual meeting, discussed opportunities and challenges in store for soybean growers. Biodiesel represents both.

"Meeting demand is a concern," said USB Vice Chairman Eric Niemann during a press conference. "It's a rapidly growing market. But we have made great strides."
Niemann, a soybean producer from Kansas, noted about 25 million gallons of biodiesel were produced this year.

Production capacity is expected to grow from 180 million gallons a year to nearly 300 million gallons by 2006.
"We're having growing pains, such as ethanol did a few years ago," Niemann said. "It's a very young endeavor, but we're enjoying the challenge."

He pointed out that the number of biodiesel outlets has grown from 450 a year ago to more than 1,800.
The new executives discussed a number of issues, including quality, exports and research on higher-yielding beans.

USB Chairman Curt Raasch said farmers should make a point to use biodiesel in their own vehicles.
"Let's face it - if we don't use it as producers, we're going to have difficulty promoting it to others," said Raasch, a producer from Iowa.

"USB has worked on increasing demand and has addressed the availability issue. Farmers need to use biodiesel."
Raasch also stressed the board is continuing the initiative begun this year aimed at working directly with livestock groups to improve feed efficiency and increase consumption of meat. One result of that initiative has the examination of feed intake by pigs.

"We've partnered with the National Pork Producers on a study in which we've looked at the problem that some piglets are allergic to soybean meal at an early age," he said.
"The neat thing about this study is that a lot of what we've found out is going to be applicable to human nutrition as well. We'd like to continue to be involved in things like that."

Directors acknowledged domestic beans have suffered in some aspects of quality, namely lower percentage of protein than some foreign-raised crop.
But they have attributes that make them a good feed. The board is promoting that.

"We have better amino acid in our protein that works very well in feeding animals," Niemann said.
Raasch added, "Amino acid is very important in pork and poultry production. U.S. beans fed to pigs and poultry have been extremely competitive. The feeding value gives a lot of return."

Outgoing chairman Greg Anderson of Nebraska pointed to progress made in educating growers of the importance of the livestock industry. A USB campaign sought to inform growers of the market share of soybeans going to feed livestock.
"We started the year with 3 percent of farmers aware of the numbers," he said. "It's now 10 percent and growing."

Competition is one of the biggest challenges faced by U.S. soybean producers, according to Raasch.
He stressed that USB is working to increase market share lost to Brazil and other countries in recent years. Meeting buyers' needs is key to success.

"We were the largest producer of soybeans in the world; that has shifted," Raasch said. "Our marketing strategy has shifted from market volume to value. We are the only country providing service with the product. We've asked that question: Is service important to you?
"We think that every culture is like the United States, but they are very sophisticated when it comes to trading. We have outstanding staff in our program working on this. To become more competitive in the future it is imperative that the U.S. growers listen to our customers and try to meet their needs."

As an example, Niemann added domestic buyers have increased shipments to the Pacific Northwest, a major launching pad to Asia.
"They're very comfortable with smaller shipments - such as a container," Niemann said.

Anderson pointed to a number of achievements over the past year.

"We are at the forefront of coordinating education on soybean rust," he said. "Significant progress has been made in screening germplasms for resistance to rust, and the soybean checkoff is responsible for promoting the fastest-growing alternative fuel in America. These successes would not have occurred if it had not been for soybean checkoff board and its officers."

The Energy Ministry yesterday announced it would accelerate plans to introduce biodiesel nationwide to follow His Majesty the King's call for more promotion of alternative fuels. Energy Minister Viset Choopiban said the plan was in line with a cabinet decision in May to support biodiesel.


The plan calls for the use of 8.5 million litres of biodiesel per day by 2010. The focus initially will be on a mixture of 5% refined palm oil and 95% diesel in a blend known as B5D.


The use of palm oil, a major crop in Thailand, will be increased to 10% under a B10 blend in 2012.


Several plants have already begun biodiesel production. Golden Biodiesel Co has a daily capacity of 200,000 litres and plans to increase its production to 500,000 litres per day, while Raja Biodiesel Co currently produces 20,000 litres per day, with another 6,000 litres available from the Alternative Energy Development and Efficiency Department.


Bangchak Petroleum, meanwhile, is planning to produce another 300,000 litres per day, with Thai Olefins aiming for another 200,000.


Mr Viset said around 500,000 litres of palm oil per day were currently available after domestic use and export, which is insufficient to meet future biodiesel requirements.


Ministers on Tuesday agreed to expand palm plantation areas to help boost market supplies.


The Agriculture Ministry said at least five million rai of land would be needed to cultivate oil palm, to support the higher biodiesel target in five years.


It will take more than four years to harvest the crop and three to five years to produce biodiesel for commercial use, according to the ministry.


Mr Viset said he was considering a plan to waive some taxes on biodiesel production to help lower the cost to attract consumers.


At present, Bangchak Petroleum Plc is the only distributor of B5 fuel, which is available at 14 petrol stations.

by MALLORI MORRIS
Intern News Reporter


Appalachian State University and the Town of Boone will put biodiesel fuel to the test this winter when technology students convert work vehicles and some AppalCART buses to biodiesel.


Parker Sloan, a technology student working on the project, said winter will be a pilot run to test the biodiesel product on a few vehicles on campus and the town’s work vehicles. Sloan is also the director of Sustainability for the Student Government Association.


The plan is scheduled to take effect sometime in December, Sloan said.


In recent months Appalachian State has seen other biodiesel projects within the technology department.


In June, two students received a $10,000 grant from the Environmental Protection Agency to be used to enter the EPA’s P3 Competition. The money from the grant will be used to design and build an 80-gallon processor that will produce biodiesel fuel.


Sloan said he hopes this test run proves biodiesel works and that in the future, all university and AppalCART vehicles can run on biodiesel fuel.


According to the Appalachian State Energy Web site, North Carolina Department of Transportation uses biodiesel fuel as its primary alternative fuel. NC DOT estimated NC DOT used 600,000 gallons of B20, 20 percent biodiesel and 80 percent distillate diesel fuel, in 2002.


Sloan said the project is being spearheaded by the Renewable Energy Initiative, and recently bought a large tank for $30,000 to store the biodiesel for this winter’s test run.


The REI’s main goal is to switch all university and AppalCART vehicles to biodiesel fuel in the next few years.


By switching to biodiesel fuel, Sloan said the university will save thousands of dollars and reduce the amount of emissions in the air and pollution caused by buses and vehicles.


Sloan said one tractor would also be used in the biodiesel testing.


According to the ASU Energy Center Web site, biodiesel fuel is obtained from biomass

resources and is produced across the nation, but not as widely in North Carolina.


The site also says biodiesel fuel comes primarily from soybeans and recycled restaurant grease and is most often seen in agriculture-intensive states. The rise in the use of biodiesel fuel is growing in the states because of its substantial environmental benefits and the reduced amount of emissions.


Biodiesel fuel can be used in current diesel running vehicles with no modification or can be used in its pure form or blended at any ratio with petroleum diesel, according to Appalachian State’s technology department Web site.

Brian Handwerk
for National Geographic News

November 15, 2005


Japanese scientists may have found a cheaper and more efficient way to produce "biodiesel." The renewable, vegetable oil-based fuel can be used in conventional diesel engines, which are found in about 2 percent of cars currently sold in the U.S. and in about 40 percent in Europe.


The breakthrough could be just in time—industry experts say that demand for the cleaner, greener fuel is on the rise.


Any vegetable oil can become fuel, but not until its fatty acids are converted to chemical compounds known as esters. Currently the acids used to convert the fatty acids are prohibitively expensive.


Michikazu Hara, of the Tokyo Institute of Technology in Yokohama, Japan, and his colleagues have used common, inexpensive sugars to form a recyclable solid acid that does the job on the cheap. Their research is reported in last week's issue of the journal Nature.


"We estimate the cost of the catalyst to be one-tenth to one-fiftieth that of conventional catalysts," Hara said.


The breakthrough could provide cost savings on a massive scale, he said, because the technique could fairly easily make the transition from the lab to the refinery—if interest warrants.


"We have developed this material for large-scale chemical production," Hara said. "Unfortunately, interest in biodiesel in Japan is not higher than in the U.S. and Europe."


Biodiesel Boom?


Though it has been historically limited, U.S. interest in the fuel appears to be rising rapidly.


"We are anticipating 75 million gallons [284 million liters] of production in 2005, and that's triple last year's production," said Jenna Higgins, a spokesperson for the National Biodiesel Board, a biodiesel-industry trade group.


Higgins cites several reasons for the surge, including government incentives and the rising cost and sometimes short supply of conventional diesel fuel.


A Minnesota law, which took effect September 29, mandates that virtually all diesel sold in the state has to be at least 2 percent biodiesel—provided local producers can match the demand.


"That created demand for about 16 million gallons [61 million liters] a year," Higgins said. A larger boost was provided by a U.S. federal tax credit that encourages blending biodiesel and regular diesel fuels.


"That has made biodiesel more cost competitive and significantly increased demand," she said.


The most common biodiesel fuel product, B20, is 20 percent biodiesel and 80 percent conventional diesel. Most commercially available biodiesel is sold in such blends.


Generally, biodiesel costs more at the pump than regular diesel fuel. The cost difference is about the same as it is between premium and regular gasoline.


Biodiesel production costs are tied to weather patterns that affect crops used in its production, such as soybeans or rapeseed (canola). Diesel costs are tied mainly to the cost of its source, petroleum.


Currently the U.S. is home to some 45 biodiesel plants. The average plant produces just 6.5 million gallons (24.6 million liters) a year, but larger facilities may soon be coming online.


Tip of a Green Iceberg?


Monty Goodell is president and CEO of Houston, Texas-based Cogeneration Technologies, parent company of the Biofuel Industries company. He is developing a 50-million-gallon (189-million-liter) facility. The operation would double the entire U.S. biodiesel output, based on 2004 numbers.


"We are at the tip of the iceberg for biodiesel," he said.


"There were 500,000 gallons [1.9 million liters] of biodiesel produced five years ago [in the United States]," Goodell said. "Last year there were 25 million gallons [95 million liters] of B100 biodiesel produced—a 5,000 percent increase in just five years." B100 is 100 percent biodiesel—no diesel added.


If B20 ever becomes a diesel fuel standard, Goodell says, biodiesel demand could be staggering.


"[There were] 55 billion gallons [208 billion liters] of petroleum diesel consumed in the U.S. last year," he said. "[A biodiesel requirement of] 20 percent would equal a requirement of 11 billion gallons [42 billion liters] of B100 biodiesel needed" for mixing with diesel fuel.


The word does appear to be getting out.


"We are seeing quite a bit of demand," said John Rymes, of Rymes Heating Oils in Concord, New Hampshire. Rymes has several biodiesel pumps and also provides biodiesel for construction-vehicle operators and home heating-oil consumers.


"I'm not going to tell you that we've generated a lot of income from it, but we're committed as a company to try to bring a cleaner-burning fuel to the region," he said.


The U.S. Environmental Protection Agency has determined that the greener fuel emits only a third of the unburned hydrocarbons and half of the carbon monoxide and particulates that standard diesel fuel emits. Furthermore, biodiesel's sulfur oxide and sulfate emissions, which cause acid rain, are negligible.


The fuel is also biodegradable, so safety concerns and pollution issues are minimal.


Rymes explains that New Hampshire fuel taxes currently take a big bite out of his potential profits on the fuel. But, to stimulate interest, he keeps biodiesel priced as competitively as he can.


"It's a great product," he said, "and there are a lot of people interested in using it."

The building project for what will become the state's largest biodiesel plant has broken ground. On Monday, Anamax Energy Services held a ceremony to kick-off the construction of its new 15,000 square foot facility in DeForest. Once completed, the factory will employ up to 15 people and produce 20 million gallons of biodiesel annually.


The new facility will be located adjacent to an operation run by an affiliated company, Anamax Grease Services. In addition to biodiesel, which is used as an interchangeable replacement for diesel fuel in vehicles, the new plant will also produce glycerin as a by-product.


"As our nation continues struggling with high energy prices, finding cleaner, renewable and, most importantly, cheaper forms of energy has become even more critical to our economy and national security," said Wisconsin Congressman Mark Green, who was on hand for the groundbreaking.


State Agriculture Secretary Rod Nilsestuen and other local and state dignitaries were also present, and said the benefits to the facility are 'enormous.'


Biodiesel is a clean burning alternative fuel that is produced from domestic renewable resources such as vegetable oil or animal fat. Anamax's products will be sold on a wholesale level.

By JEFF MORELAND


FREDERICK, Md. — The race is on for a cleaner, more efficient and renewable source for energy, and it has been for some time. A Frederick-based group is one of the latest in the nation to enter the race, and it met Tuesday, Nov. 29 to discuss the steps necessary to bring a biodiesel plant and soybean crushing facility to the area.
Jeremy and Robert Butz have been in the soybean processing business for more than 10 years, and they spoke briefly, along with representatives from other areas of the industry, about what a plant could do for the area, and how it would operate.

Robert Butz said soybean farmers have seen a drop in profits, and will likely continue to do so. He pointed out trends that say farmers will lose money again this year, the largest impact will be felt by the smaller farmers.
“The small farmer with no storage for his beans is losing because he has to sell at a lower price rather than store his beans and sell them later (when prices may be higher),” he said.

Butz explained the “soybean basis,” which is the difference in price farmers receive for their beans in comparison with the price being paid on the Chicago Exchange Board. He said the current basis is minus 54 in central Maryland, meaning the farmers in the area are losing an average of 54 cents per bushel to the cash price quoted at the Chicago Board of Trade.
“When you hear farmers say, ‘We are losing 50 cents on our soybeans,’ that is absolutely true,” Robert Butz said.

The building of a soybean crushing facility and biodiesel plant in Frederick would offer farmers an alternative for their beans. Jeremy Butz talked about how the crushing facility works and how soybean meal would be produced, as well as how the oil would be extracted from the beans. He gave a presentation showing photos of the crushing facility, and stressed the smaller size of it in comparison to the grain storage on most larger farms.
“The grain facility, size-wise, dwarfs the bean plant,” Jeremy Butz said.

He said a plant in the Frederick area would likely process around200 tons of soybeans per day while operating three to four production lines. He added that a plant would be friendly to its neighbors, giving off no emissions.
Jeremy Butz pointed out a few interesting facts about soybeans and the products that come from them. He said a gallon of soybean oil weighs seven pounds, and 1.0-1.2 gallons of the oil comes from each bushel of beans. In addition, 50 to 51 pounds of soybean meal can be produced from a bushel of beans. He said soybeans are not the only crop that could be used in the plant, and other food stocks could be processed, possibly leading to other crops becoming popular in Maryland in the future.

“We can squeeze oil out of just about anything,” he added.
As for biodiesel, the refinery process for the fuel begins in the crushing facility with a process called degumming. It is a necessary step in removing gum from the oil after it has been extruded from the beans, then the gum is returned to the meal, reducing it as waste and adding to the meal. Jeremy Butz said 3 percent of oil is gums, and the other 97 percent is oil. A market does exist for the gum, but he stressed that it can be returned to the meal.

“I can’t emphasize enough that this is a natural process,” Jeremy Butz said. “We would build this to food-grade standards as well.” He added that organic products would also be an option for those interested in organic meal and other products.
Susanne Zilberfarb with the Maryland Soybean Board talked about biodiesel in comparison to petroleum diesel, and stressed the safety issues and the environmental benefits of soydiesel. She said biodiesel has a lesser risk of explosion since its flash point is 260 degrees Farenheit, opposed to the 150-degree flash point of petroleum diesel. Biodiesel is also safer in transportation, and she pointed out that no special requirements exist for transporting pure biodiesel.

“It (biodiesel) is combustible, but not flammable,” she said. “It doesn’t have to be placarded for transportation.”
While many people have heard of biodiesel, or even the generic term “soydiesel,” Zilberfarb said that term has no technical definition. Biodiesel, on the other hand, is defined as meeting ASTM D-6751 standards from the American Society of Testing and Materials.

Efficiency is another strong point of biodiesel, and it outweighs petroleum diesel greatly, according to numbers Zilberfarb presented. She said every unit of energy used to produce biodiesel produces 3.2 units of energy in return. Conversely, petroleum diesel provides a return of only .88 units of energy for every one unit used to produce it. She said biodiesel is produced with no smells or high pressure, and no heat is required. Biodiesel production also gives off no smells or emissions, according to Zilberfarb.
As plans begin to get off the ground for a plant in Frederick, others around the area are springing up as well. A location in Clayton, Del., is currently under construction, and others are listed as proposed sites in Pennsylvania. The states with the most plants currently are Texas with eight and California with four plants in operation.

If constructed as planned, the Frederick plant would be the only of its kind in the region, bringing in raw soybeans and sending out refined biodiesel.
Jeremy Butz said a feasibility study is the next step in the plans to determine how, and even if, a plant would fit into the area. Butz said the expected cost for this study is around $50,000. Funds are currently being sought to cover the cost of the study, and from there, the future of biodiesel in Frederick will be determined.

Zilberfarb indicated that the Maryland Soybean Board does not have the funds available to assist in this study.

HESPERIA — An environmentally friendly fuel source called biodiesel has made its way to Hesperia, the only city within 100 miles to offer the fuel at regular gas pumps.


A newly remodeled station at 9269 Sante Fe Avenue is to offer the fuel beginning Wednesday, following a noon ribbon-cutting ceremony.


Data from the National Biodiesel Board states that, "biodiesel will reduce emissions and global warming," as compared to traditional diesel.


The Goodspeed Companies, a local fuel distributor and owner/ operator of multiple fueling stations recently reopened the Sante Fe Avenue location with additional islands, new pumps, more fuel types and improved security, a statement from the company's CFO Doug Kelly said.


That facility will also offer clear diesel for highway use and red-dyed diesel for off-road use, as well as unleaded, mid-grade and premium gasoline.


Biodiesel is intended to offer similar power for diesel engines as well as reducing harmful emissions into the atmosphere while reducing dependency on fossil fuel supplies.