December 2011 Biodiesel Magazine

INSIDE: DON’T OVERLOOK PLANT MAINTENANCE December 2011

Plant Safety Why Proper Maintenance Protocols Are More Important Than Ever in This Year of Record Production Volumes, Increased Plant Restarts Pages 24, 28

Plus An Overview of College

Biofuel Safety Training Programs Page 32

AND

Liability, Insurance Issues in Biofuel Transport Page 6

WWW.BIODIESELMAGAZINE.COM

CONTENTS

DECEMBER 2011 VOLUME 8 ISSUE 12

INDUSTRY

SAFETY

Changing Hands Safely

A Safe Trajectory

Points to consider in restart mode

BY BRYAN SIMS

32

28

24

INSTRUCTION

Record production and cutting corners do not mix

BY LUKE GEIVER

An Education in Safety College programs offer certified training

BY ERIN VOEGELE

DEPARTMENTS 4 Editor’s Note The 5 Ps

BY RON KOTRBA 6 Legal Perspectives

Liability, Insurance Issues in Biofuel Transport

BY JAMES PRAY 8 Talking Point

Don’t Overlook Plant Maintenance

BY RAJ MOSALI 10 Biodiesel Events 12 FrontEnd

Biodiesel News & Trends

18 Inside NBB 22 Business Briefs

Companies, Organizations & People in the News

36 Marketplace/Advertiser Index

Biodiesel Magazine: (USPS No. 023-975) December 2011, Vol. 8, Issue 12. Biodiesel Magazine is published monthly. Principal Office: 308 Second Ave. N., Suite 304, Grand Forks, ND 58203. Periodicals Postage Paid at Grand Forks, North Dakota and additional mailing offices. POSTMASTER: Send address changes to Biodiesel Magazine/Subscriptions, 308 Second Ave. N., Suite 304, Grand Forks, North Dakota 58203.

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EDITOR'S NOTE In this record year of U.S. biodiesel production, there have been fewer instances of biodiesel plant fires making headlines than in previous high-volume production years, but the industry isn’t entirely without its black marks in 2011. A sampling of the plant fires reported in the news this year include a blaze this May at the co-located facilities of American Biodiesel Energy Inc. and North American Powder Coatings near Erie, Pa.; a fire at Viesel Fuel in Martin County, Fla., in late May; and a late July fire at Tennessee Bio Energy in Coffee County, Tenn.

Despite the biodiesel conversion process being relatively straightforward and, for lack of a better word, simple, biodiesel plants are chemical processing facilities. The same precautions, safety protocols and preventative maintenances that are required at petrochemical refineries are also necessary at biodiesel production facilities. The industry has come a long way in improving its safety image over the years, but there is always room for improvement. I’m reminded of a presentation given in Houston at the International Biorefining Conference & Trade Show, where Rich Chmielewski, the biofuels marketing manager for Siemens Industry Inc., said his father always told him to remember the five Ps of life: proper planning prevents poor performance. What a great line, and surely those are words to live by.

Preventative maintenance is a good way to avoid process downtime, and everyone knows that when your plant isn’t running, you’re not making money. And although safety protocols and training are huge factors in helping prevent accidents, maintenance is not just about running a profitable business, it can nip potential safety issues in the bud. As Jatrodiesel President Raj Mosali, this month’s Talking Point columnist, says, maintenance logs are a knowledge base and they should be kept as current and detailed as possible. Mosali also says a common point of failure for automation instrumentation is not the actual instrument, but the wiring. Poor wiring at a chemical processing plant where methanol and vapors may be present is a serious hazard. “At a minimum, automation devices and instruments should be looked at periodically as part of a maintenance schedule,” he says. “Regular checks have to be performed to make sure the wiring is intact and no process liquids are leaking onto the wiring.” In his column on page 8, “Don’t Overlook Plant Maintenance,” Mosali gives a line-item account of what should be done to which pieces of equipment, and how often. Thanks Raj, for your expertise.

And remember, be safe as we cap off the industry’s most productive year yet.

The 5 Ps Ron Kotrba

Editor Biodiesel Magazine rkotrba@bbiinternational.com

FOR MORE INFORMATION AND PERSPECTIVE, VISIT KOTRBA’S BLOG AT BIODIESELMAGAZINE.COM/BLOG/READ/

Associate Editors Luke Geive, author of “A Safe Trajectory” on page 28, discusses practices producers can follow to remain safe as production skyrockets.

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Erin Voegele heads to campus looking for biodiesel safety training programs around the country in “An Education in Safety” on page 32.

Bryan Sims writes “Changing Hands Safely” on page 24, an article that covers safety and maintenance considerations in restarting idled facilities.

www.BiodieselMagazine.com E D I T O R I A L Ron Kotrba Editor rkotrba@bbiinternational.com Bryan Sims Associate Editor bsims@bbiinternational.com Erin Voegele Associate Editor evoegele@bbiinternational.com Luke Geiver Associate Editor lgeiver@bbiinternational.com Jan Tellmann Copy Editor jtellmann@bbiinternational.com P U B L I S H I N G Mike Bryan

&

S A L E S

Chairman mbryan@bbiinternational.com

Joe Bryan

CEO jbryan@bbiinternational.com

Tom Bryan

Vice President tbryan@bbiinternational.com

Matthew Spoor Howard Brockhouse

Vice President, Sales & Marketing mspoor@bbiinternational.com Executive Account Manager hbrockhouse@bbiinternational.com

Jeremy Hanson

Senior Account Manager jhanson@bbiinternational.com

Chip Shereck

Account Manager cshereck@bbiinternaional.com

Marty Steen

Account Manager msteen@bbiinternational.com

Bob Brown

Account Manager bbrown@bbiinternational.com

Andrea Anderson

Account Manager aanderson@bbiinternational.com

Dave Austin

Account Manager daustin@bbiinternational.com

Kelly Kilgore

Account Manager kkilgore@bbiinternational.com

Jessica Beaudry

Circulation Manager jbeaudry@bbiinternational.com

Marla DeFoe

Advertising Coordinator mdefoe@bbiinternational.com

John Nelson

Senior Marketing Manager jnelson@bbiinternational.com

Jaci Satterlund Elizabeth Burslie

A R T Art Director jsatterlund@bbiinternational.com Graphic Designer bburslie@bbiinternational.com

Subscriptions Subscriptions to Biodiesel Magazine are free of charge to everyone with the exception of a shipping and handling charge of $49.95 for any country outside the United States, Canada and Mexico.

To subscribe, visit www.biodieselmagazine.com or you can send your mailing address and payment (checks made out to BBI International) to: Biodiesel Magazine Subscriptions, 308 Second Ave. N., Suite 304, Grand Forks, ND 58203. You can also fax a subscription form to (701) 746-5367. Reprints and Back Issues Select back issues are available for $3.95 each, plus shipping. Article reprints are also available for a fee. For more information, contact us at (701) 746-8385 or service@bbiinternational.com. Advertising Biodiesel Magazine provides a specific topic delivered to a highly targeted audience. We are committed to editorial excellence and high-quality print production. To find out more about Biodiesel Magazine advertising opportunities, please contact us at 701-746-8385 or service@bbiinternational.com. Letters to the Editor We welcome letters to the editor. If you write us, please include your name, address and phone number. Letters may be edited for clarity and/or space. Send to Biodiesel Magazine Letters, 308 Second Ave. N., Suite 304, Grand Forks, ND 58203 or e-mail to rkotrba@bbiinternational.com.

Please recycle this magazine and remove inserts or samples before recycling COPYRIGHT Š 2011 by BBI International

TM

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LEGAL PERSPECTIVE

Liability, Insurance Issues in Biofuel Transportation

BY JAMES PRAY

Biofuel refineries have a good working understanding of the steps needed to avoid workplace accidents and damage to the refinery infrastructure.

The insurance to cover these claims is also well understood. Workers’ compensation insurance covers injuries to employees; liability policies cover injuries to visitors, contractors, and third parties who are injured while at the facility; and property casualty insurance and business interruption insurance covers damage to the facility. But what about the risks posed by the transportation of goods both to and from the site? Some of these risks arise from transporting products and other risks arise from the products themselves. In either case, these risks may be excluded by many of the standard policies.

The transportation of biofuels usually requires the use of train cars or trucks. Liability can arise if a carrier’s vehicles are damaged on the facility grounds. As an example, poor road conditions and unclear signage can contribute to accidents on the facility. Releases of sulfuric acid and methanol (used to refine biofuels) can escalate the size and complexity of the claim. The facility’s management should make sure that it has adequate insurance. Standard property casualty policies may not cover damage to trucks and trains owned by third parties because that property is not owned, controlled or leased by the facility.

Standard liability policies frequently exclude incidents involving train derailments or collisions. If the facility owns railroad tank cars, then management should check to make sure that there is insurance in place to cover not only the cost of repair but also any liability or demurrage claims that may arise if an injury or derailment is caused by a defect in the tank car. If coverage for damages to or caused by railroad trains is excluded, then the company should buy a special endorsement or policy.

Transportation of finished biofuels and byproducts can also pose a liability risk. This risk is greatly reduced if the product is being carried by a common carrier's equipment. Generally, the common carrier will be liable for accidents involving its own equipment and drivers.

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However, depending on the tariff or contract, the shipper may have a duty to secure the load properly. If the facility owns the trailer or tank car, then any equipment problem that contributes to an accident or release of product can also generate secondary liability, even if it is being transported by a common carrier.

If product is released during transport, there are possible civil, administrative, and criminal penalties that can be assessed by state and federal agencies if the release can be traced back to a failure of the refinery to properly load and secure the product. For releases that are large enough to require removal and remediation, then there may also be liability to state and federal agencies that respond and third parties whose property may be affected. Standard policies may specifically exclude any claims arising from the release of a “pollutant.”

Finding environmental insurance that will cover those claims can be very challenging. Lower tier environmental insurance policies contain so many exclusions that they are nearly worthless. There is also no point in buying an environmental insurance policy if it excludes releases that take place during transport or cleanup costs. It is hard to believe that an environmental policy would exclude emergency response and removal costs, but they are out there.

The story does not end with the identification of an insurance policy that appears to cover a given claim.

There is an old adage that insurance companies are in the business of collecting premiums and not paying claims. If the claim is small, insurance companies reject the claim knowing that the cost of litigation for the insured to recover on the claim will consume any recovery. If the claim is large, they reject the claim knowing that when faced with the prospect of costly and drawn-out litigation the insured may capitulate and take less than the full value of the coverage. In either case, the refinery may have to go to court in order to get the coverage that it has paid for.

Author: James Pray Attorney, BrownWinick (515) 242-2404 pray@brownwinick.com

The 2012 market starts here: The NBB Annual Conference is the epicenter for the growing business of biodiesel. Don't miss your opportunity to chart a course of success for the coming year.

REGISTER TODAY! Register by January 20th and save $200! www.biodieselconference.org/2012

HOSTED BY

TALKING POINT

Don’t Overlook Plant Maintenance

BY RAJ MOSALI

Anything that moves in a plant experiences wear and tear and needs upkeep. Plant maintenance is analogous to preventive maintenance. Whether a plant is retrofitted, new, or even running for a long time, the following guidelines are all applicable. The best approach to any maintenance task is to first identify plant equipment that needs maintenance.

Whether the required maintenance is minor or major, it needs to be identified and specified so. The equipment manufacturer’s recommendations should be incorporated into the maintenance documentation. Identify the timeline of maintenance and address downtime. This could also help identify critical path items if a plant goes down and personnel need help with troubleshooting.

Once the schedule is put into motion, an often overlooked but critical item is keeping the logs. Logs should not only include the maintenance tasks performed on a piece of equipment, but also any failures and associated fixes. This enables the staff to quickly identify and take corrective action. Logs act as the knowledge base. If they are computerized, you can quickly search for a specific issue and find a solution to it, instead of troubleshooting all over again. The major advantage with preemptive checking and maintenance is substantial reduction of downtime.

The typical biodiesel equipment that need regular checks, calibration or maintenance are pumps, reactors, heat exchangers, condensers, filters, boiler, cooling tower, compressor, vacuum system, automation instrumentation and calibration, scale (if used), pipelines, automated valves and actuators, check and manual valves, chiller (if used), and lab instrumentation and equipment. This is just a starting point; every aspect of the plant should be closely looked at and put on a maintenance schedule as needed.

Pumps: A proper pump needs to be used for function. Mismatched pumps that are not fit for a specific application cause failure. Pumps are built robustly and rarely fail if operated correctly. Two critical items for a smooth pump operation are installation and operating within parameters. Pumps usually fail over a period of time, so closely monitoring the performance will enable identification of the problem before the actual failure.

Heat exchangers: Heat exchangers (HEs) are the hardest working equipment, after pumps, in a biodiesel plant. Any drop in HE performance is apparent right away. HEs need to be monitored for any drop in their 8

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efficiency. There is not a lot to maintain, but monitoring performance (drop in heating efficiency or increased time to heat a specific liquid) will enable you to identify any impending issues and address them before the failure point.

Reactors: The most overlooked items in a plant are the reactors. One of the main reasons to check reactors is for sediment. It’s often not thought of, but consider your reactor holds 1,000 gallons; if you get 0.5 percent sediment, that’s 5 gallons worth of sediment that, when heated, drops into the reactor. Now consider getting one bad load of feedstock with 2 percent moisture, insolubles and unsaponifiables that contains 1.5 percent sediment— you can do the math. Every few months reactors need to be checked for deposits, whether your process is continuous or batch. The only time increasing reactor check intervals is advised is if you have a preprocess that removes sediment.

Filters: Whether for finished goods or for incoming feedstock, filters must be examined for any tears in the filter trapping mesh, if being used. Not addressing the issue will result in sediment seepage into end product.

Regular maintenance: Air compressor, boiler/ ancillary equipment, cooling tower, and chiller, regardless of size or model, require some form of periodic maintenance.

Automation and Electrical: At a minimum, automation devices and instruments should be looked at periodically. A common failure point for automation instrumentation is not the actual instrument, but the wiring. Regular checks have to be performed to make sure wiring is intact and no process liquids are leaking onto the wiring; and instruments are not experiencing any stresses from mechanical equipment such as piping and reactors.

Also, relief valves must be checked regularly to perform to specifications.

Lab equipment: It’s a good practice to clean the entire lab once a year of all the liquids, calibrate all the instrumentation outside of the regular requirements, and swap out the chemicals used for various standards.

The goal of maintenance is to build confidence in the equipment and process—and peace of mind helps too.

Author: Raj Mosali President, Jatrodiesel Inc. (937) 847-8050 rmosali@jatrodiesel.com

EVENTS CALENDAR Pacific West Biomass Conference & Trade Show JANUARY 16-18, 2012

San Francisco Marriott Marquis San Francisco, California With an exclusive focus on biomass utilization in California, Oregon, Washington, Idaho and Nevada—the Pacific West Biomass Conference & Trade Show will connect the area’s current and future producers of biomass-derived electricity, industrial heat and power, and advanced biofuels, with waste generators, aggregators, growers, municipal leaders, utility executives, technology providers, equipment manufacturers, investors and policy makers.

(866) 746-8385 www.biomassconference.com/pacificwest

Making History, Creating Policy Presented by the California Biodiesel Alliance and Biodiesel Magazine, the California Biodiesel & Renewable Diesel Conference is the first event of its kind and will serve as the state’s most important conversation between policymakers, investors, researchers, producers and fuel users regarding the economic and environmental benefits of producing, distributing and utilizing biodiesel and other forms of renewable diesel.

Join the California Biodiesel Alliance and Biodiesel Magazine in this inaugural event Jan. 16 at the Marriot Marquis in beautiful downtown San Francisco.

Informative tracks include: • New Production Technologies, Energy Integration and Financing • The Low Carbon Fuel Standard and the California Market • International, Federal and State Regulations and Incentives • Advanced Feedstocks, Algae and Beyond Since 2006, the California Biodiesel Alliance has championed the cause of biodiesel in California and has worked behind the scenes on every important issue faced by biodiesel in the state and at the national level. It has been instrumental in working with the following agencies to achieve these results: • U.S. EPA; designing and implementing the RFS1 and RFS2 programs.

• California Deptartment of Food and Agriculture Division of Measurement Standards; the fuel variance program and biodiesel pump labeling regulations.

• California state legislature; getting proper definitions for biodiesel and renewable diesel in California.

• California Air Resources Board; completing the life-cycle analysis of waste feedstock biodiesels to ensure that they received the full benefits of their low carbon properties.

• California Energy Commission; ensuring that biodiesel receives a fair share of government grant funding through AB 118, specifically developing a focus on biodiesel infrastructure grants.

Some of the current challenges the California Biodiesel Alliance is helping to overcome, which will be discussed at the workshop, are: ensuring California’s emissions regulations don’t unfairly subject biodiesel to laws based on old NOx data; ensuring the LCFS is properly implemented and biodiesel’s carbon reductions are fully realized in the legislation; increasing biodiesel infrastructure funding through AB 118; and developing regulations allowing for storage of biodiesel in underground tanks.

Event partner Biodiesel Magazine has been in publication since 2004 and provides objective, independent coverage of biodiesel news, events and information relevant to the global industry. Biodiesel Magazine has helped establish an identity for the diverse industry it serves.

01/16

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California Biodiesel Conference JANUARY 16, 2012

San Francisco Marriott Marquis San Francisco, California Presented by California Biodiesel Alliance and Biodiesel Magazine, this inaugural statewide biodiesel conference will take place Jan. 16 in downtown San Francisco. This one-day event, with evening reception, will take place as part of BBI International's Pacific West Biomass Conference to be held Jan. 16-18 at the Marriott Marquis. Details are being developed now and will be posted here as they become available.

(866) 746-8385 www.biomassconference.com/pacificwest

National Biodiesel Conference FEBRUARY 5-8, 2012

Gaylord Palms Resort & Convention Center Kissimmee, Florida The annual National Biodiesel Conference & Expo is the only event that gathers biodiesel decision-makers from across the United States, and the world. Opportunities abound for attendees and exhibitors to network, connect and learn. This event will explore the topics of governmental policy, technical issues and marketing trends in the biodiesel industry.

(573) 635-3893 www.biodieselconference.org

International Biomass Conference & Expo APRIL 16-19, 2012

Colorado Convention Center Denver, Colorado Organized by BBI International and coproduced by Biomass Power & Thermal and Biorefining Magazine, this event brings current and future producers of bioenergy and biobased products together with waste generators, energy crop growers, municipal leaders, utility executives, technology providers, equipment manufacturers, project developers, investors and policy makers. It’s a true one-stop shop—the world’s premier educational and networking junction for all biomass industries.

Presentation ideas are now being accepted online.

(866) 746-8385 www.biomassconference.com

Co-located with the Pacific West Biomass Conference & Trade Show

January 16, 2012 San Francisco, CA Making History – Creating Policy This unprecedented event is the first event of its kind and will serve as the state’s most important conversation between policy makers, investors, researchers, producers and fuel users regarding the economic and environmental benefits of producing, distributing and utilizing biodiesel and other forms of renewable diesel.

Informative Tracks Includes: • New Production Technologies, Energy Integration and Financing • The LCFS and the California Market • International, Federal and State Regulations & Incentives • Advanced Feedstocks, Algae and Beyond To register visit: www.biomassconference.com/pacificwest or call us at 866-746-8385

Register Today!

Biodiesel News & Trends

PHOTO: NESTE OIL

FrontEnd

WORLD LEADER: Neste Oil’s recently completed renewable diesel plant in Rotterdam, sized at 800,000 tons per year, will eventually expand to 2 million tons per year.

Neste Oil’s Most Impressive Feat Yet Rotterdam refinery completed on-time and on-budget Neste Oil is done with renewable diesel, and that’s not a bad thing. As the final component of a €1.5 billion investment program, the company has completed the program with the startup of its four renewable diesel plants. The final plant, located in Rotterdam, Netherlands, has an initial capacity of 800,000 tons per year but will eventually increase to 2 million tons per year. The Rotterdam facility will be the largest renewable diesel refinery in the

world, and the others—one in Singapore and two in Finland—aren’t far behind. All of the plants are feedstock flexible, capable of using any vegetable or waste oil in the hydrotreating process.

Matti Lievonen, Neste Oil’s president and CEO, says the Rotterdam facility will help his company meet Europe’s demand, “the world’s largest,” for renewable diesel.

The final plant has already put 150 people to work, the company says, and every gallon

of fuel produced at the facility will reduce greenhouse gas emission by 40 to 80 percent compared to fossil fuels.

With four renewable diesel plants up and running, there is no denying Neste Oil is the world leader, but there might even be something more impressive about Neste Oil than its global position in renewable diesel production. According to the company, “The plant [in Rotterdam] was completed on-schedule and on-budget.” —Luke Geiver

AGQM Biodiesel Event Completes Year 5 Fifth annual conference takes place in Berlin For the fifth year in a row, the Biodiesel Quality Management Association (AGQM) has held its annual biodiesel conference. The 2011 event took place in Berlin and companies participating included Evonik Industries AG, Albermarle Catalyst BV, Shell Global Solutions GmbH and Volkswagen AG. Topics covered at the event included a presentation based on a comprehensive study 12

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that evaluated the contents of metals in exhaust aftertreatment systems. The study showed that the metals in the aftertreatment systems were “comparatively low,” according to AGQM, compared to the original source, engine oil.

Also addressed at the conference were the negative impacts of export practices of both Argentina and Indonesia, which have hindered Spain's biodiesel

DECEMBER 2011

industry, limiting its production to only 17 percent of capacity, according to AGQM. The major car manufacturer, PSA Peugeot Citroen, stated its support of the use of higher blends (B30), inferring that engines could handle such blends, and UFOP stated that it is currently investigating the expanded market potential for biodieselblended heating oil. —Luke Geiver

FRONTEND

Every Penny Counts New York extends Bioheat tax credit

For the past several years, residential oilheat customers in New York have been able to benefit through an innovative incentive that allowed them to claim a tax credit for using biodiesel-blended heating oil. The program, which allows Bioheat users a 1-cent-per-gallon credit for each percent of biodiesel blended with traditional heating oil they purchase, up to a B20 blend, was set to expire Jan. 1, but has been extended.

On Oct. 14, New York Gov. Andrew Cuomo signed legislation into law extending the credit, formally known as the Refundable Clean Heating Fuel Tax Credit, for five years. The current law permits both corporate owners of residential developments and individual homeowners to claim the credit. Due to technical oversight, the bill that was presented to Cuomo failed to extend the provision of the law that extended the tax credit to individual homeowners. As a stipulation of his approval of the bill, Cuomo noted that both houses of the legislature have agreed to amend the bill to fix that technical oversight. In effect, the tax credit has been extended in its current form through 2017.

According to Danny Falcone, regional wholesale manager of Ultra Green Energy Services, the tax incentive not only financially benefits Bioheat customers, but it also clearly benefits industry by helping to drive interest in and adoption of biodiesel-blended heating oil. In fact, Falcone notes that several of his wholesale customers have announced their intent to sell B20 at a discount this fall. For the past six months, Falcone says, biodiesel has actually been cheaper than petroleum-based diesel or heating oil. “These suppliers are going to continue to offer standard heating oil because they have to give people a choice, but they are going to offer B20 at a discount,” he says. Due to the current price levels, we can tell our retailers that they can purchase B20 at a lower price and sell it to their customers at a lower price than traditional oilheat, Falcone says. In addition, those retailers can tell their customers about their eligibility to claim the tax credit. Taken together, the reduced

BIOHEAT STATE: New York Gov. Andrew Cuomo extended for five years New York State’s tax credit that gives B20 Bioheat customers back 20 cents per gallon, which was set to expire on Jan. 1, 2012.

price and tax credit can significantly reduce the price consumers pay for fuel, encouraging more people to try Bioheat.

The power this tax credit offers to consumers is particularly unique. Many other incentives, such as the federal biodiesel tax credit, actually benefit those in the middle of the supply chain, Falcone says.

Those entities, such as blenders and wholesalers, bleed off a significant portion of the credit before it reaches the consumer level. “This is a very exciting credit,” Falcone says. “It goes right to the consumers.”

While the benefits of the Bioheat tax credit are particularly pronounced right now with the relatively low price of biodiesel, it will be even more integral to the Bioheat market in the event the federal tax incentive for biodiesel expires or RIN prices are depressed. If the price of biodiesel increases in the future, this tax credit will help ensure Bioheat remains affordable.

Falcone applauds the state of New York for extending the credit.

Incentives are needed to help an immature market, like that of Bioheat, compete, he says. “This incentive became vitally important to the biodiesel market in New York and still is today,” adds Falcone. In addition, the credit helps encourage investment in biodiesel infrastructure by providing potential investors with added certainty. —Erin Voegele

Empirical Acquisition

Why one oil company sees profit in a California cooperative Sometimes for small-scale biodiesel producers, the best way to expand or augment sales of their biodiesel is to align with major oil and gas companies. This is exactly what Promethean Biofuels Co-op Corp., a 1.2 MMgy multifeedstock facility located in Temecula, Calif., did when it was acquired by Canada-based oil and gas company Empire Oil Refineries Corp. As a result, Promethean became a wholly-owned subsidiary of EOR. According to EOR spokesman Rick Wilson, the company engaged Promethean six or eight months ago. “We really liked the facility,” he says.

Promethean’s 17,000-square-foot plant, which started up in February 2010, is located adjacent to a community recycling facility where it collects the majority of its waste vegetable oil feedstock for processing into biodiesel.

While Promethean Biofuels also distributes its own biodiesel produced at the Temecula facility, as part of the acquisition, EOR intends to offer expertise on the sales side that could augment its customer base for capturing more of the market, Wilson says.

“We’ll bring in our management team, not to run their business, but to look at the busi-

ness that they’re capturing and work more on sales-oriented ventures to get more product to refine,” he says.

EOR is relatively new to the renewable energy sector, having formed its Clean Fuels Division in September, which will initially focus on the development and funding of clean energy production, namely farm-based manure-to-electricity projects. Seeing growth in the biodiesel industry, Wilson adds EOR is looking at acquiring additional plants. “We’re really looking at expanding that side of the business big time,” Wilson says. “It’s a huge future for us.” —Bryan Sims

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FRONTEND

Encouraging Sustainable Growth at 300 MMgy NBB recommends a moderate, steady approach to RFS2 volumes Last year, a newly appointed National Biodiesel Board committee began to meet relative to its goal of analyzing all possible constraints to the production, transportation and consumption of biodiesel in the U.S. to develop recommendations to the U.S. EPA regarding future renewable fuel standard (RFS2) volumetric compliance levels. The group would then advise the NBB on what recommendations it should make to EPA. The committee made its recommendation to the NBB this summer, outlining a sustained growth of the volume mandate over a five-year period that would start at 1.3 billion gallons in 2013 and increase by 300 million gallons per year. This would increase the volume requirement for biomass-based diesel to 2.5 billion gallons by 2017.

Gene Gebolys, CEO of World Energy and chairman of this NBB working group, stresses that the volume mandates recommended by his committee are conservative by design. “The group took a constrained approach to determining what these numbers should be,” Gebolys tells Biodiesel Magazine. “The objective was to determine volume levels that will allow for sustainable growth for the biodiesel industry without overreaching our ability to meet them. At

our first meeting we talked about what we wanted to accomplish and what we wanted to avoid. We are very clear that we wanted to avoid creating periods of feast and famine in the industry. We didn’t want to overreach, and we didn’t want to be so cautious [as] to not allow for meaningful growth.”

Econometric modeling was used to help the committee determine what a sustainable path forward would be. According to Gebolys, the committee looked at issues spanning every component of production, from feedstock to processing, distribution and end use.

Alan Weber, partner at Marc-IV Consulting and lead economic advisor to the committee, explains that conservative data was used to populate the model. For example, the committee only evaluated feedstocks that the EPA has approved pathways for. “We also felt like we wanted to be very conservative as we looked into the future,” he says. The group took a hard look at world gross domestic product growth and made a special effort not to minimize potential impacts of global policy. In addition, Weber notes that when the group looked at technology advances, it only accounted for those that have already been proven.

“There were those amongst us that would have liked to get to the 2.5 billion gallons faster, but at the end of the day the consensus of the group was that getting there in a more measured, methodical, and conservative way was the way to go,” Gebolys says. He also notes that the NBB’s recommendation for 2013 is almost identical to the 1.28 billion gallons the EPA has approved, showing the two groups have come to similar conclusions independently.

In addition to encouraging the EPA to step up biomass-based diesel mandates in a sustainable fashion, the committee has also asked that the agency provide industry with nonbinding indications of where they anticipate volume mandates could be set over a five-year period. That outlook is meant to help the obligated parties, biodiesel producers, and distribution providers to become more efficient through additional market transparency.

It is likely that the committee will continue its work on an annual basis. While its current numbers are conservative, Gebolys stresses that this doesn’t mean the NBB can’t modify its recommendations in the future. In fact, it may do so if future analysis indicates a faster rate of sustainable growth is possible. —Erin Voegele

EPA Opens Door for Canadian Canola The oilseed grown north of the U.S. border now qualifies for RFS2 There are 15 to 20 commercial biodiesel facilities within 165 miles of the U.S./ Canadian border, and, for the first time, those plants that want to use Canadianbased canola as a feedstock and generate renewable identification number (RIN) credits through RFS2 can do so. It took the U.S. EPA nearly seven months to review and decide that the feedstock from Canada qualifies for the RFS2, a review process that included aerial photography, agricultural land surveys and other methods to prove that the 123 million acres that will qualify for canola will not alter the growing 14

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patterns or agricultural practices already in place in Canada.

The inclusion of canola might sound like a classic case of using what we already have to solve a problem—in this case feedstock acquisition—instead of searching for new answers, but the approval by the EPA might have many more implications.

“We are thrilled that we have this opportunity to increase our exports of canola into the U.S. for use in biodiesel production,” says JoAnne Buth, president of the Canola Council of Canada. —Luke Geiver

DECEMBER 2011

FRONTEND

Out from the Shadows

The biodiesel industry is prepared to ramp up production volumes to fulfill the 1 billion gallon biomass-based diesel mandate in 2012 prescribed under RFS2, and once-dormant biodiesel plants, or those resuming construction on past projects, will contribute.

The future of the idled Beatrice Biodiesel LLC will be revealed in November as the 50 MMgy facility in Beatrice, Neb., was scheduled for auction Nov. 29, according to Norm Husa, soybean farmer in nearby Barneston and former member of the Nebraska Soybean Board and United Soybean Board.

The soybean oil-based facility broke ground for construction in 2007 and was scheduled to start up in 2008, but mounting financial pressures and rising soybean oil prices inevitably prompted the plant’s parent companies U.S. Biofuels Inc. and Australian Ethanol Ltd. of Perth, Australia, to suspend construction, which led to the plant filing Chapter 7 bankruptcy in late 2008. The plant has been mothballed ever since.

According to Husa, the plant features a rail loop for inbound and outbound product and a novel process technology developed

by Axens North America. One drawback, however, is that the plant is without a co-located soybean crushing operation.

“In my book it was dead to begin with,” Husa tells Biodiesel Magazine. “If you can’t start a biodiesel plant from the very beginning, your chances of being profitable are pretty slim. If somebody were to offer 10 percent on the dollar, it might be sold.”

The plant was about 98 percent complete, Husa says. If a buyer doesn’t purchase the plant to restart, its components may be auctioned piecemeal by prospective purchasers, he says.

Producers’ Choice Soy Energy LLC resumed construction of its 5 MMgy biodiesel plant and co-located soybean crushing

RESILIENT PLANS: After a long hiatus, Producers' Choice Soy Energy resumed construction on its plant and crush facility in Moberly, Mo.

facility in Moberly, Mo., partnering with South Roxanna, Ill.-based biodiesel producer Midwest Biofuels Products LLC to help complete the project. The project originally broke ground in 2008, but construction delays coupled with rising feedstock prices caused the company to indefinitely suspend completing the project.

According to PCSE chairman Jim Beckley, plans are to double the installed production capacity from 5 MMgy to 10 MMgy and install frontend technology that’s capable of processing multiple feedstocks. The plant and soybean crush facility are expected to begin production in December, according to Beckley.

“We’re very optimistic that we’re going to meet our goals,” Beckley says. “We’re very fortunate that we had some great financial partners that have helped us develop this model and had patience to help us see this through.” —Bryan Sims

Ongoing Marketshare War Bioheat event highlights oilheat vs. natural gas competition The Bioheat Northeast Workshop took place Oct. 11, and the group of panelists was a who’s who in biodiesel-blended heating oil. A recurring theme throughout the one-day event was the battle between oilheat and natural gas. Despite natural gas being marketed as cleaner and domestic, it is still a fossil fuel—one that consists largely of highly potent greenhouse gases.

John Huber, NORA president, said, “It gets harder and harder to get hydrocarbons out of the ground. Methane is one of the world’s worst greenhouse gases, but the natural gas industry ignores that.” And despite all of the new natural gas Marcellus shale deposits recently found, that abundance of fossil fuel will be gone in 30 years. At a B12

percent remains in the system as sulfuric acid and corrodes the heat exchangers.

Carcinogenic particulate matter, sulfate particulates, is from sulfur as well. Removal of sulfur from heating oil plus zero-sulfur biodiesel will eliminate this issue. And after ASTM approves higher Bioheat blends, there is no guarantee the market will accept it. Therefore, leveraging the wealth of field experience as well as continued education and marketing—such as the huge New York City campaign Michael Devine with Earth Energy Alliance spoke of, which includes radio spots, bus wraps and much more identifying Bioheat as the Evolution of Oilheat—are critical components, and will be for years to come. —Ron Kotrba DECEMBER 2011 BIODIESEL MAGAZINE 15

level and higher mixed with ULSD, Bioheat can begin to outperform natural gas on all fronts, the speakers said. But to get there, a great body of work is underway (particularly at Penn State University, a study in year two) to determine what the legacy safe level is.

Victor Turk with R.W. Beckett Corp. said a big driver in this study is the fact that up to 7 million oilheat furnaces exist in residential homes, and expecting those to be replaced to allow use of Bioheat blends greater than 5 percent is unrealistic. Removal of sulfur in addition to incorporating higher blends of biodiesel is a major part of becoming cleaner than natural gas. Tom Butcher from Brookhaven National Lab said 99 percent of the sulfur exits the flue as SO2, while 1

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PHOTO: PCSE

Biodiesel plants re-emerge from tough economic times

Biodiesel (in billions of gallons)

FRONTEND

DATA SOURCES: EIA

Better for Biodiesel

Biodiesel fares comparatively well in controversial RFS2 report It is common knowledge that the cellulosic biofuels industry has taken longer to ramp-up production than originally anticipated. This can be attributed to many factors, including the inability to secure financing during the global recession. To accommodate the realities of industry, the U.S. EPA is able to modify the original compliance volumes outlined in the legislation that established the renewable fuel standard (RFS2) for each year’s compliance period. For example, the agency has proposed significantly reducing the 2012 cellulosic target to accurately reflect the current state of the industry.

In October, the National Research Council released a report that claims the U.S. is likely unable to meet some mandates set under the RFS2, unless policies are changed or new innovative technologies are developed. Specifically, the report states that the biofuels industry is expected to produce enough conventional biofuels and biomass-

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based diesel to meet targets, but questions how the cellulosic mandate will be met.

The report further addresses the impact of biofuels on greenhouse gas emissions.

According to the report, feedstock production of dedicated energy crops will probably either require the conversion of uncultivated land to farm land or displace commodity crops and pastures. The authors of the report also touch on land use change, noting that the RFS2 program can neither prevent market-mediated efforts nor control land use or land cover changes in other countries.

While the report did not show cellulosic biofuel production in a positive light, it did highlight several positive attributes of biodiesel. The National Biodiesel Board spoke out thanking the authors of the report for recognizing the wide variety of environmental and economic benefits that biodiesel achieves. For example, the study pointed out that soy biodiesel can have a positive impact

DECEMBER 2011

on livestock feed prices by helping to hold costs down.

The NBB has also pointed out that there are significant uncertainties associated with the hypothetical modeling used to calculate indirect land use change. According to Anne Steckel, vice president of federal affairs for the NBB, the EPA has determined through its own analysis that biodiesel reduces greenhouse gas emissions by 57 to 86 percent, depending on the feedstock used.

“We were pleased to see the authors reaffirm that biodiesel is an advanced biofuel that can meet the biomass-based diesel targets under the EPA's renewable fuel standard,” Steckel said. “In fact, biodiesel—as an advanced biofuel under RFS2—is also wellpositioned to help fill the program's general volume requirement for advanced biofuels.”

—Erin Voegele

FRONTEND

Service-Minded Quality is the name of the game for biodiesel producers, and Schroeder Industries recognizes this full well as the Leetsdale, Pa.-based lubricant purification specialist is offering a novel backend purification technology, called GlyceRx, that delivers several significant advantages for current dry wash finishing systems.

GlyceRx is a custom-produced, synthetic absorption media with significant surface area, modified to ensure that a large concentration of reaction functional groups are present on the surfaces to attract water-soluble compounds NEW OFFERINGS: Schroeder such as glycerin, soaps and glycerides. The contaminants are Industries now offers coalescing filters for diesel engines. held strongly in the matrix as the hydrophilic media are specifically designed to allow methyl esters to pass through.

GlyceRx was specifically designed to meet ASTM and EN quality specifications, be easy to use and work equally well within a full range of feedstocks. In existing systems, product manager Ed Naugle says GlyceRx media can be housed in equipment once used for dry wash, including resin towers, other dry wash media tanks and activated carbon vessels. For typical applications, treatment costs are

PHOTOS: SCHROEDER INDUSTRIES

Schroeder Industries aims to deliver

estimated at approximately 3 cents per gallon of biodiesel processed.

Naugle says the media can absorb excess methanol, but he recommends methanol removal prior to the GlyceRx process to ensure the longest bed life possible.

“The lifespan of GlyceRx, like any other thing you using in biodiesel, depends on what you’re putting through it,” Naugle tells Biodiesel Magazine. “We had a target number in mind where we thought we’d be with efficiencies, and we pretty much hit it dead on, so we think we have a good product.”

In addition to its GlyceRx product offering, Schroeder Industries is offering the ICF and QCF diesel coalescing filters for diesel engines. Both the ICF and QCF are designed to remove water from diesel fuel that have been stored in bulk fuel tanks and for use in single-pass fuel-dispensing or multipass reservoir clean-up and continuous maintenance. Biodiesel acts as a surfactant when mixed with diesel that draws water, which can be problematic when stored in bulk fuel tanks mixed with ULSD diesel fuel because water can promote microbial growth in the tanks. Both of these issues can lead to plugged fuel filters that cause contamination to the entire fuel system in diesel engines.

The ICF and QCF coalescing filters circumvent this issue by utilizing proprietary media that are able to remove approximately 98 percent of emulsified or finely dispersed water in a single-pass, according to Naugle. The QCF is also available in a skid version packaged with a separate, 3-micron particulate filter that helps protect the coalescing component. “They can be used for diesel mixed with biodiesel too,” he says. —Bryan Sims

Chesapeake Bay Clean-Up Could Hinge on Algae University of Maryland research helps solve the problem of water pollution Patrick Kangas has helped work on everything from algae-based floating lake restorers to experimental algae turf scrubbers. Now, he is trying to prove-out and scale-up his algae turf scrubber so it might someday help clean up the Chesapeake Bay. Kangas, an associate professor at the University of Maryland, has developed a system that is based on the growing patterns of algae near coral reefs, with water pulsing through a wastewater cleanup system that acts as waves do in the ocean, to increase the growth rates of the algae.

Using solar-powered pumps, the system sends polluted water (from areas like that of the Chesapeake Bay) into a series of plastic troughs where algae is present and able to filter out the phosphorous or nitrogen in the water for use as a growth medium. Once a week, Kangas and his team from Maryland push the algal sludge created in the troughs to the end of the troughs, where it can dry for later use as an experimental biofuel feedstock by the university’s chemical engineers, who have already developed a process to produce algae-based biobutanol or ethanol.

“Algae sometimes are thought to be part of the problem in Chesapeake Bay and elsewhere because they respond quickly to pollution, and that is through uncontrolled growth.” Kangas says the idea with the algae turf scrubber, however, is to control the way algae works with nutrients like phosphorus or nitrogen.

“This system doesn’t just remove nutrients,” Kangas says. “It adds oxygen to the water.” The addition of oxygen to water is important, he adds, for places such as the Dead Zone in the Gulf of Mexico, where eutrofication has compromised ecosystems. Kangas has formed a new center at the University of Maryland in the hopes of commercializing his wastewater treatment technology. The design of the system was aided by an environmental consulting company Living Ecosystems.

“We’re really just taking what happens in nature and controlling it, and channeling it into the kind of ways that we want to use the algae, essentially, to work for us,” Kangas says. —Luke Geiver

DECEMBER 2011

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You Say You Want an Evolution? Bioheat Campaign Aims to Start One I’ve pounded the pavement for years now, reaching out to oilheat dealers trying to help them see how biodiesel can help the long-term viability of their industry. Their market share is contracting each year by hundreds of millions of gallons, and Bioheat, a mixture of heating oil and biodiesel, may be the only thing that can save them.

Some oilheat dealers share the vision and have been early adopters of Bioheat. In fact, to date, 235 have become registered Bioheat dealers through our partner, the National Oilheat Research Alliance.

But we need more distributors to take the oilheat industry to 100 percent Bioheat. That’s why, for the first time, we’ve enacted a consumer-driven advertising campaign, aggressively piquing the end-users’ curiosity and educating them about Bioheat.

The National Biodiesel Board’s new Bioheat advertising campaign underway in New York City aims to empower oilheat customers to choose Bioheat. Its message is simple: “Bioheat. The evolution of oilheat.”

Our public opinion research shows us that this message is wellreceived by oilheat customers. It speaks to their desire to progress beyond oilheat, to something cleaner, better for the environment, and better for them.

This message has blanketed New York City buses and the subway system, with radio commercials airing on highly rated stations.

It is a campaign that will be replicated on a smaller scale in six New England states.

At $1.3 million, the effort is Bioheat’s largest advertising campaign to date. It is mostly funded by the Nebraska Soybean Board, an organization that has been nothing short of visionary in helping Bioheat find its legs. Once again, our soybean farmers are rising to the challenge on behalf of biodiesel. They see far beyond their fields in the Midwest.

We chose New York City for this campaign because it uses 1 billion gallons of oilheat each year—more than any other city. It is also home to the most significant Bioheat legislation passed to date. The air quality legislation will ensure that starting in October 2012 all heating oil sold within New York City will contain at least 2 percent biodiesel. Greater consumer acceptance of Bioheat will help ensure a smooth implementation.

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The ads direct consumers to the Bioheat website, Bioheatonline.com, which has been revamped in conjunction with the campaign.

Bioheatonline.com has been completely re- Paul J. Nazzaro, designed to become the modern information Petroleum Liaison, hub for all things Bioheat. The site serves both National Biodiesel Board consumers and oilheat dealers interested in Bioheat. Facebook users can also “join the evolution” on the new Bioheat Facebook page, along with other social media efforts on Linked In and Twitter.

Biodiesel is a positive story that resonates with consumers as a truly renewable, sustainable, American-made fuel. It will take the oilheat industry to the next phase of its existence, requiring little investment from dealers. And the NBB is highly committed to helping the oilheat industry redefine itself.

I thank John Maniscalco, CEO of the New York Oil Heating Association, for his support in making this campaign a reality. He says calling Bioheat the “evolution of oilheat” is apropos, and more than just a campaign slogan. It’s a call to action for the entire oilheat industry.

When talking about the evolution of oilheat, I am reminded of a term commonly associated with evolution: natural selection.

Natural selection is defined as “the process by which forms of life having traits that better enable them to adapt to specific environmental pressures, as predators, changes in climate, or competition, will tend to survive in greater numbers than others of their kind.”

As the oilheat market contracts, there will be a natural selection that happens among dealers. Time will tell who adapts and, thus, survives.

Paul Nazzaro, Petroleum Liaison, National Biodiesel Board

inside

NBB Education: the heart of National Biodiesel Conference The 9th annual National Biodiesel Conference & Expo is the only event that gathers biodiesel decision makers from across the U.S. and the world. Important connections are made, and biodiesel business gets done through the array of opportunities the exhibit hall and networking events provide; yet the heart and soul of the biodiesel conference is education.

This year’s breakout sessions feature experts from industry and academia on the most important issues facing the biodiesel industry today.

Sessions are categorized into four separate educational tracks: Technical, Regulatory, Marketing, and a new Petroleum track. Below are some of the highlights attendees can learn about within each topic with full session descriptions and speakers available at www.biodieselconference.org.

Technical New Diesel Exhaust Aftertreatment and Combustion— Biodiesel’s in It for the Long Haul: New diesel engines equipped with diesel particulate filters (DPF) and NOx systems (Selective Catalytic Reduction) reduce NOx and particulate matter more than 90 percent, making them as clean or cleaner than natural gas. Engine companies, vehicle companies, the U.S. DOE and NBB have partnered on efforts to make sure these technologies will go the distance with biodiesel over the full useful life of the vehicle.

Can Feedstock Supplies Grow to Meet the Industry’s 5x15 Vision?—Creating Virtual Acres: Explore viable and novel technologies that have the potential to double, triple, and quadruple the amount of fats and oils produced on the same amount of land. It's a topic that grows in importance as we strive to meet “5 percent of diesel fuel demand by 2015.”

Regulatory Energy Epiphanies: Have you noticed these days that oil companies don’t call themselves “oil companies” anymore? They have repositioned themselves as “energy” companies, and a few even tout their commitment to biofuels in their advertising campaigns. Are public perception and policy pressures at the root of this shift, or are we at the beginning of a true energy renaissance? How does the federal renewable fuel standard impact their business plans, including infrastructure, and what can we do to make sure the RFS is here for the long haul? Top brass among petroleum trade associations will discuss everything from the industry’s perception of biodiesel as a mainstream product, to the future of Bioheat, to how energy policy will leave a lasting imprint on everyone in the energy industry.

Biodiesel conference breakout sessions are key for education on in-depth technical, regulatory, marketing, and petroleum issues that impact the industry.

State of the States—Legislative & Regulatory Review: Each year, state policies and regulations seem to play a larger role in the success of the biodiesel industry. Public policies and critical regulatory actions are opening doors to expanded markets while also placing additional compliance requirements on industry participants. Whether you manufacture, sell or use biodiesel, get the inside track on the latest state activities, and what they mean to you. Also, find out what state houses may have in store for the industry in 2012 and beyond.

Markets Mind Your B's and Q's: Whereas quality is the etiquette of the industry, BQ-9000 is Emily Post. Safeguarding biodiesel quality and ASTM compliance is a cornerstone of market success. Join this panel of experts: a BQ-9000 certified lab, marketer and producer along with a National Biodiesel Accreditation Program commissioner to learn why, in the biodiesel industry, minding your quality manners pays off. They’ll look at new procedures in the program, discuss their decision and process of accessing certification, and offer insight on how BQ certification has impacted their business.

Gaining the AD-vantage: The biodiesel buzz continues to mount as the RFS drives demand and annual production beyond 10 digits. With that added fervor, supporters and skeptics alike have ever more reason to tout their opinions as law. As industry leaders, NBB members have seized this opportunity and worked to give the positive biodiesel messages a much-needed boost. Join us for a three-sided look at the biodiesel Ad-vantage and how it relates to you and your business: 1) what folks think about biodiesel according to latest research data; 2) regional and local biodiesel campaigns; and 3) the Advanced Biofuel Initiative and biodiesel’s first-ever national television spot.

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insideNBB

NBB features petroleum supply chain in new conference track One of the many benefits of biodiesel is its ability to seamlessly integrate into the existing petroleum infrastructure. Between biodiesel production and the end user stand an array of challenges as distillate fuels move throughout the petroleum supply chain.

For the first time, the 2012 National Biodiesel Conference will feature a three-part Petroleum Track. These three sessions focus on upstream and downstream supply chain management, and Bioheat.

These sessions are designed to not only educate the biodiesel industry on the intricacies within the petroleum supply chain, but more importantly to educate the petroleum industry on how biodiesel fits into this intricate system.

Supply Chain Management—Upstream: In this first part of a two-part session, participants will go inside the world of refining and pipeline operations to learn how crude oil and unprocessed biodiesel are gathered, processed, stored and transitioned for downstream deployment. You will also gain insight on the value of the BQ-9000 program and how producers and marketers leverage it in their businesses.

Supply Chain Management—Downstream: Industry experts will demonstrate what it takes to deliver to the street fuels that meet and exceed performance expectations. Highlights include terminal tank management practices, field response protocols to execute in downstream quality investigations, extending the storage life of fuel, labeling, fuel quality testing and BQ-9000 adherence.

Bioheat: Today Bioheat, touted as the “Evolution of Oilheat,” is taking its rightful place among the thousands of fuel dealers ex-

This year’s Biodiesel Conference features a new Petroleum Track to focus on education for the petroleum industry.

cited about delivering a fuel that will compete well into the 21st century. Learn firsthand how you can leverage the product development and deployment strategies NBB has produced to build new opportunities for your business. You will witness how this success story has become a reality and how Bioheat marketers are actively evolving their industry through the use of biodiesel.

Sustainability Symposium within NBB conference highlights key issues The 2012 National Biodiesel Conference & Expo will feature a Sustainability Symposium to take place on Feb. 8. This symposium will cover critical issues that impact our communities, our world and future generations. Renowned experts will describe the fundamental challenges we face to make our society, and particularly our fuel supply, more sustainable. Frank explanations of climate change, and energy and food security will illustrate the seriousness of dependence on unsustainable energy. Factual presentations on the impacts of biodiesel will illuminate possibilities that exist to diversify our sources of energy, reduce greenhouse gas emissions, invigorate local economies, reduce impacts to the environment and increase food security.

The Sustainability Symposium is set up as a conference-withina conference and attendees need not be limited to those who follow biodiesel issues closely. While biodiesel will be the starting point for discussions, sustainable energy touches every aspect of our society.

The more people become informed about these issues, the more

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likely we are to institute real change for the better.

Invitations are extended to those who want to learn about domestic job creation and more effective circulation of revenue within domestic communities. Activists who want to ensure sustainable food production can learn about the benefits of producing food and energy side-by-side. For those yet unaware of the seriousness of the greenhouse effect, experts in the field will inform attendees about the urgent need to immediately reduce extraction of fossil fuels. More than a decade of research by U.S. DOE, USDA, and leading academic institutions will summarize the impacts of biodiesel, and point to its role as America’s advanced biofuel.

Mark your calendar for this important event, and share this announcement with your colleagues, customers and thought leaders.

You can also keep up with developments on NBB’s sustainability blog and conference website. We’ll be covering details about these topics and the experts who will join us in Orlando for this important discussion.

insideNBB

Next Generation Scientists for Biodiesel to join industry in Orlando Launched last year, the Next Generation Scientists for Biodiesel program continues its momentum as more students join the network and engage with industry leaders on the latest biodiesel research. The NGSB program, which is designed to engage and educate tomorrow’s energy leaders, now has more than 100 student members.

Once again, the National Biodiesel Board is working to provide scholarship opportunities so that NGSB students can join those on the front lines of biodiesel production, research and policy at the 2012 National Biodiesel Conference & Expo, Feb. 5-8, in Orlando, Fla. Last year, NBB helped to bring 10 NGSB students to the conference in Phoenix where they heard from and met with some of the nation’s leading biodiesel scientists, participated in conference sessions, and gained valuable networking experience.

“Fostering these students’ interest in biodiesel and providing education and networking opportunities are an important investment for the biodiesel industry,” said Kyle Anderson, NBB technical projects manager. “These students are the future scientists who will develop and improve our nation’s energy solutions. Their commitment to biodiesel as part of that energy solution is commendable, and promises to make a lasting impression.”

NGSB students have been active this fall with many of them participating in a webinar hosted by NBB on Oct. 18 featuring two university students who presented their biodiesel research. Meredith

Next generation scientists met with industry leaders at the 2011 National Biodiesel Conference.

Dorneker, master's degree candidate in geography at the University of Missouri-Columbia, spoke about her research on federal laws, regulations and voluntary programs that are in place to support the sustainable production of biofuels. Daniel Mallin, a chemical engineering major at the University of Rhode Island, shared his research on the glycerol powerwash. In addition, Michael Haas of USDA-ARS shared the latest on basic and applied research and development in a federal lab.

For more information on NGSB program visit www.biodieselsustainability.com/students.

Gaylord has it all under one roof, and even more beyond What could be better than sunny Florida in February? Okay, well Hawaii is not in the cards, so start thinking about all the Gaylord Palms Resort and Convention Center has to offer when you’re not in conference sessions. Located in Kissimmee, Fla., the Gaylord offers resort guests a myriad of services and amenities all under one roof. In addition, its convenient location offers easy access to dozens of theme parks and other local attractions.

The Gaylord’s signature atriums house four and a half acres of indoor gardens in three distinct Florida environments—the Everglades, Key West and St. Augustine. Among the lush gardens and winding waterways, guests can enjoy a wide-range of dining and shopping options. In addition, when you’re ready to unwind, the resort offers a spa, fitness center and pool. All this and the conference center are just steps away.

If you want to take advantage of all that the Orlando area has to offer, you won’t have to go far. The front gate of Walt Disney World is just 1.5 miles away. Other theme parks such as Universal Studios and Sea World, as well as NASA’s Kennedy Space Center and world-class golf, are easily accessible as well. Complimentary scheduled shuttle bus service is available from the hotel to the Disney theme parks and staff can assist with other transportation needs.

In addition to its amenities and great location, the Gaylord is committed to sustainable operations. The Office of Sustainability was cre-

ated in 2010, and charged with integrating sustainability into the overall corporate strategy. The resort is focusing its environmental efforts in three primary areas: energy efficiency and emissions reduction, waste reduction, and water conservation.

The Gaylord Palms is the perfect place to combine the biodiesel industry’s premier conference and expo and a winter get-away with something for everyone—warm weather, theme parks, dining, shopping and more. For additional information, visit http://www.gaylordhotels.com/gaylord-palms/.

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BusinessBriefs Woodlands, Texas-based glycerin company BenchMark Energy Corp. has signed an agreement to acquire a 49 percent stake in Indiana-based Energy Partners LLC, with an option to acquire the remaining 51 percent contingent on certain IRS tax criteria in 2012. Energy Partners had $750,000 in glycerin sales in the nine-month period ending Sept. 30. The company is in discussions with the city of Grand Forks, N.D., to build a 21,600 square-foot, eightacre glycerin processing facility. The project was approved by the Grand Forks Growth Fund committee and the Jobs Development Authority, and upon completion of the project, expected in mid-2012, Energy Partners plans to hire 29 full-time employees at the facility. The facility would have the capacity to process approximately 10 MMgy of crude glycerin sourced from a number of biodiesel plants within an 800mile radius of Grand Forks.

A partnership in China that will bring together a Houston coal-to-liquids (CTL) company and a major Chinese coal and construction firm will utilize a CO2 capture system powered by algae. Accelergy Corp. will provide the Yankuang Group with its trademarked TerraSync terrestrial sequestration system to capture carbon from the future CTL facility in Erdos, an area in China’s Inner Mongolia Province.

Along with the TerraSync system, Accelergy will also create a hybrid configuration of a microcatalytic coal liquefaction system in conjunction with a Fischer Tropsch system provided by Yankuang. The early plan for 22

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Companies, Organizations & People in the News

production at the CTL plant in China will equal roughly 68,000 barrels per day, and the fuel will be used by local fleets. Although the plant will be a first for Accelergy, the technology has already been tested at a pilot facility in China, located at the Bejing Research Institute for Coal Chemistry, the only testing facility, according to Accelergy, that can certify coals for Accelergy’s largescale CTL projects.

U.K. biodiesel producer Argent Energy has announced that leaflet marketing specialist EAE Ltd. is using its B30 blend of fuel to help reduce carbon emissions.

EAE aims to become carbon neutral by 2015. According to Argent Energy, EAE recently took delivery of seven Citroen Relay vans, which will be fueled with a B30 blend of Argent’s fuel. The firm further plans to switch the rest of its 21-vehicle fleet to B30 by the end of the year, which, it is projected, will offset the emission of 80 metric tons of carbon dioxide per year.

Argent Energy converts used cooking oil and tallow into biodiesel. The company has an annual production capacity of 50 million liters (13.5 million gallons).

Anoka-Minn.-based SarTec Corp. has been awarded a $500,000 grant from the U.S. DOE as part of a project to enhance the use of inedible energy crops for production of advanced biofuels using the Mcgyan biodiesel process. The project will involve local farmers in the central plains region of the U.S. who will be contracted to grow pennycress and camelina crops. The oil from these crops will be collected and transported to the 3 MMgy Ever Cat Fuels plant in Isanti, Minn., where it will be converted into biodiesel using the Mcgyan process, which simultaneously performs a catalytic conversion of triglycerides and free fatty acids, into biodiesel. The grant will help support the initial investment in procuring the seed and assistance in growing camelina and pennycress crops.

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Algae.Tec, an algae-to-fuels developer from Australia, has three years to prove out its enclosed modular algae growing systems after the Shoalhaven City Council approved the necessary permitting to Algae.Tec. The Environmental Planning and Assessment Act will give Algae.Tec the go-ahead to build a demonstration facility called Shoalhaven One near the Manildra Group’s ethanol facility south of Sydney.

The permit is effective immediately, and after three years, Algae.Tec will have the option to expand. The site near the ethanol facility will capture CO2 from the ethanol plant’s fermentors for use as a growth medium to feed the enclosed growth systems developed and constructed by Algae.Tec in an 18,200 square foot facility in Atlanta.

Each enclosed photobioreactor is housed in a used freight car optimized to house the system. The price for each unit is roughly $125,000. The container systems also use rotating parabolic light collectors that feed the captured light into a fiber optic system to help the algae grow in ideal conditions.

Each module can produce roughly 250 dry tons of algae per year.

Connecticut-based Greenleaf Biofuels LLC has closed on full project funding with Sovereign Bank for its 10 MMgy biodiesel plant in New Haven, Conn. The Connecticut Community Investment Corp., in conjunction with the U.S. Small Business Administration’s 504 Program, will assume nearly half of the Sovereign term loan once the plant is operational. Sovereign Bank and CTCIC now join the State of Connecticut Department of Economic and Commu-

BUSINESSBRIEFS Sponsored by nity Development and Advantage Capital Partners/Ironwood Capital as financial supporters of the project. The site of Greenleaf Biofuels’ proposed production facility is in the Port of New Haven, and will have access to water, rail and road transportation. The company says site work on the project has already begun and it expects to be producing by second quarter next year. The production equipment is a Greenline Industries system that was bought at auction. The company is working with JatroDiesel and Innovative Design Engineering Associates to redesign and upgrade the process to include methanol recovery and distillation systems. The plant will also feature cold filtering as part of the final polishing process. The multifeedstock technology will initially use waste vegetable oil.

San Diego-based SG Biofuels Inc. has announced several expansions to its management and science teams. The firm says the growth is reflective of the very high demand that SG Biofuels is experiencing for its hybrid jatropha, particularly in key markets such as Brazil and India. In August, SG Biofuels announced a joint venture with India-based Bharat Petroleum to develop and deploy elite hybrids of jatropha for the production of biodiesel in India. In September, the company announced it is teaming with Jetbio, a multistakeholder initiative that includes Airbus, to accelerate the production of jatropha oil as a source of biobased jet fuel feedstock in Brazil. SG Biofuels announced the hiring of three new professionals on Oct. 6: Shawn Swaney will serve as vice president of finance; Grant Aldridge will serve as director of product management; and Livia Tommasini will serve as scientist and project leader.

New Mexico-based Rio Valley Biofuels has been awarded a total of $40,962 in grant funding from USDA Rural Development to support upgrades at the facility and help support the hire of new employees. The grant will be used to upgrade the facility’s chiller and

vacuum pump and help support hiring two new employees. Rio Valley Biofuels has been operating for approximately six years, and produces 1.2 million to 1.5 million gallons of biodiesel annually. The plant operates primarily using recycled vegetable oil as feedstock.

The upgraded chiller will allow for more efficient cooling of liquids during processing.

The grant will also allow the facility to replace two small, inefficient vacuum pumps with a single, more efficient one. The money will allow some of those used parts to be replaced with new counterparts.

A criminal information was filed Oct. 3 charging Rodney R. Hailey, age 33, of Perry Hall, Md., with wire fraud, money laundering and a violation of the Clean Air Act, in connection with a scheme in which he allegedly sold $9 million in renewable fuel credits purportedly produced by his company, Clean Green Fuel LLC, when, in fact, the company did not produce any renewable fuel. The district U.S. Attorney says, “The information alleges that as the owner of Clean Green Fuel LLC, Rodney Hailey, specialized in producing 38-digit renewable identification numbers (RINs) … he allegedly sold more than 32 million RINs for over $9 million.” His business operation consisted solely of generating false RINs on his computer and marketing them to brokers and oil companies. Hailey allegedly used the proceeds of the wire fraud scheme to purchase luxury vehicles as well as real estate and jewelry. According to the information, during the investigation Hailey made numerous false statements to EPA investigators, including that he manufactured the fuel from waste vegetable oil collected from 2,700 restaurants. Hailey faces a maximum sentence of 20 years in prison for wire fraud; 10 years in prison for money laundering and two years in prison for violating the Clean Air Act.

Greensboro, N.C.-based Patriot BioDiesel LLC is expanding its operations in response to increased local demand for biodiesel.

Once complete, the upgraded facility will have an annual production capacity of 2.5 million to 4 million gallons. The expansion was scheduled to be complete by mid-October. Patriot BioDiesel temporarily suspended biodiesel production in early 2010, following the expiration of the biodiesel tax credit. During that time, the company collected and refined waste oil, which was sold to other biodiesel plants. As RIN values increased in mid-2010, however, the plant restarted operations. Due to increased local demand for biodiesel, the company recently decided to increase capacity. Patriot BioDiesel purchased the new equipment from Tactical Fabrication LLC. Patriot BioDiesel elected to go with a unique heating system featuring ceramic elements manufactured by Innovative Heat Concepts. The efficient elements can detect the media they are in and adjust output heat. The facility will have capacity to produce 15,000 gallons of biodiesel per day.

Cumberland, Wis.-based vertically integrated biodiesel producer SunPower Biodiesel LLC has opened a new B99 biodiesel fueling station in Duluth, Minn. The company trucks biodiesel produced at its 3 MMgy plant in Cumberland to the newly-launched fuel station in Duluth, which is based on an original prototype design of a fueling station currently in operation on the site of its plant.

The station is the first in Northern Minnesota to offer a B99 blend. The company intends to transition from B99, considered a summer blend in the Upper Midwest, to an additized B20 winter blend in November.

The company says its winter blend has been tested to withstand the frigid temperatures down to minus 30 degrees Fahrenheit.

SHARE YOUR BUSINESS BRIEFS To be included in Business Briefs, send information (including photos, illustrations or logos, if available) to: Business Briefs, Biodiesel Magazine, 308 Second Ave. N., Suite 304, Grand Forks, ND 58203. You may also fax information to (701) 746-5367, or e-mail it to rkotrba@ bbiinternational.com. Please include your name and telephone number in each correspondence.

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INDUSTRY

FINE-TOOTH COMB: Enervation Advisors facilitated the NextDiesel acquisition in Adrian, Mich., one of several similar deals in the past year.

PHOTO: ENERVATION ADVISORS

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INDUSTRY

Changing Hands Safely Safety risks and costs with restarting previously idled biodiesel plants

BY BRYAN SIMS

It’s no secret that the biodiesel industry has experienced record production levels in the past several months—volumes the industry hasn’t seen since its days of breakneck growth in 2006-‘08. The achievement of this milestone can be traced back to the coexistence of a tax credit and high RIN prices coupled with regional pockets of demand in both on- and off-road applications, such as Bioheat. But the welcome uptick in production volume can also be attributed to the number of idled biodiesel assets that have been acquired and brought back online to operate more efficiently.

Before a valve is ever turned, however, when a plant—especially one that has been mothballed for an extended period—changes ownership, the prospective buyer must be mindful of the safety risks and costs of updating the process technology, equipment, instrumentation and the personnel needed. This is the advice of Paul Tantillo, director of operations and managing partner at Enervation Advisors headquartered in New York, which advises on the acquisition, sale, turnaround and financing of distressed biodiesel assets. Having managed the acquisition of two previously idled biodiesel plants this year in Iowa and another in Michigan, Tantillo says his company is on the lookout to handle the acquisition of more.

“We’re not looking to turn on the switch immediately,” Tantillo tells Biodiesel Magazine. “We have to go in and bring these plants back to life, so to speak, with new parts and simplify the process, and then make the process easily duplicated with staff and personnel so that everyone is reading the same sheet of music.”

Because the existing equipment at each plant is unique to that facility, Enervation Advisors takes a cautious approach when targeting a distressed biodiesel plant to ensure a successful restart without repeating the incidents that caused the plant to originally shut down, Tantillo says. To make sure that every plant is safe and profitable, Tantillo says that Enervation Advisors enforces uniform procedures and strict safety protocols at all of its client plants.

“Standardization is key for us,” Tantillo says. “At the end of the day, the plant is going to have a standard set of protocols and state-of-the-art processing equipment.”

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INDUSTRY Whether the mission is to evaluate existing safety or technology features at a biodiesel plant or to physically make upgrades or replacements, the interface between a reputable design/build firm and the entity that acquired the plant is critical when inspections occur to achieve maximum operational performance as safely as possible during startup.

Knowing is Half the Battle While maintenance activities must be performed on an ongoing basis at all biodiesel facilities, the requirements for idled plants are dramatically different than those for operating facilities, therefore assessing the quality and reliability of particular equipment is only as good as how well maintained it was in mothball status. For many of those plants, design glitches or processes that needed adjusting were part of why they were not able to remain profitable. This is where engineering and design firms come in.

Important items that EPCs and chemical process licensing companies such as Lurgi Inc. look for when evaluating whether a plant needs equipment or technology upgrading include safety of the overall process design, the robustness of the process, as well as the overall reliability of the design. These considerations are key to ensuring long operating periods without interruption by unforeseen circumstances, says John Monfre, director of business development at Lurgi. Since 2007, Lurgi, a member of the Air Liquide Group, has designed and built more than 30 biodiesel plants worldwide spanning Latin America, China, Europe and Southeast Asia. In the U.S., three biodiesel plants were built by Lurgi within the past three years and four within the past five.

“If it’s been a mothballed facility, one of the things that we would help look at and evaluate would be the quality of the maintenance, if there are records of the facility during operation, and also during the time that the facility might’ve been mothballed, because that can really affect what the long-term reliability of the equipment would be and the potential need for replacement or refurbishment,” Monfre says.

According to Roger Gilchrist, chairman of Lurgi, thoroughly documenting dates of when and how pieces of equipment such as centrifuges may have been replaced or upgraded during a plant’s operating life, including the idle period, is critical for ensuring a smooth transition for a successful operation. Doing so allows the design/ build firms to match them with the original design of the plant, which helps it know exactly what recommendations to make to its clients to ensure long-term operating efficiency and profitability.

“New owners frequently will be given information from existing owners, and it depends on the quality of the owner that had the plant as to how valid the design records are,” Gilchrist says.

“The equipment list may not be necessarily ‘as built’ and therefore it is necessary to go back through and verify that the process and equipment that exists in the plant in fact matches the drawings, flow sheets, heat and material balance and so forth.”

According to Mike Shook, co-owner of Stuttgart, Ark.-based engineering and design firm Agri-Process Innovations, the company has been busy bringing previously idled plants back online for new 26

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and prospective owners at various locations across the U.S. API has more than 60 years of experience in the biodiesel industry, having designed and built more than 20 plants worldwide.

Shook says the company has been approached several times by banks that were holding a plant in receivership due to original owners filing bankruptcy, or had a prospective buyer interested in acquiring a plant outright. API can come in and draw up reviews and make recommendations for new buyers to make updates if they’re needed, and determine if existing equipment is arranged and functioning in a manner that conforms to local, state and national safety codes.

“Unfortunately, a lot of these plants were built without a lot of engineering put into them,” Shook says. “Most of them probably wouldn’t pass OSHA or any other type of inspections for meeting code.”

Depending on the size of the plant, the cost of conducting an inspection and review of a biodiesel plant can cost anywhere between $10,000 and $25,000, Shook says. “Travel costs are factored in there,” he says. “If it’s close, it’s cheaper.”

Shook says API assists new and prospective owners of biodiesel plants typically by sending a crew, usually two or three people, to open tanks, take samples of liquids and send them off for testing, check pumps so they’re not locked up, make sure lines are clear, or power up all the instruments to get signals to verify components are functioning properly before making recommendations for any upgrades.

“We draw up a report with pictures and a budget that they can use as part of their negotiation to say, ‘Alright, before this plant begins operation, here are the things that you need to do,’” Shook says.

“We also give the client a budget on what it’s going to take to make replacements on instruments and equipment.”

As one might expect, deficiencies are expected at a plant that has been idled. Among the most common that API has run into, Shook says, deal with the placement of electric components. “The biggest thing we see is electrical, where they don’t use proper classification of electrical equipment for the environment that it’s in,” he says.

During the walk-through inspection process, companies like API and Lurgi must navigate through the nuances of adopting the most current fire and chemical safety codes within the given location because codes can change over time, according to Monfre. “Some of that is driven more so in the lag with which a lot of municipalities perhaps adopt the latest international fire codes or [National Fire Protection Association] codes,” he says. “Even on a year-toyear basis, somebody has to look at that to see if the municipality has restarted it, and certainly if they’re restarting the facility, more than likely the facility would not be grandfathered. Any potential upgrades would have to be discussed with the local authorities in terms of what their expectations are for meeting any changes to the codes.”

Shook echoes Monfre’s statement, adding that the reason many newly acquired plants that changed ownership may be slow to adopt the latest fire and safety codes depends on where they’re located. “A

INDUSTRY lot of these plants were built in rural areas where they don’t have formal inspectors like a big town that has a fire marshal,” Shook says. “Sooner or later though, someone is going to want to show up and inspect you.”

Outside Perspective Pays Off There are several methods of acquiring a distressed biodiesel plant with the intent to restart production. One way is purchasing a plant through sale or auction. Before prospective buyers consider purchasing entire facilities or individual components at auction, it’s recommended that they first be inspected by qualified appraisers because equipment components and instrumentation can depreciate over time, which can dramatically affect the value, according to Cathy Rein, owner of Colorado-based Sandalwood Valuation LLC and appraiser with Lee Enterprises Consulting. In addition to offering appraisals on equipment at biodiesel plants, Rein also conducts fixed asset management services for buyers and sellers as well.

“Having the equipment idled definitely has an impact on its value,” Rien says. “We’ve definitely seen those auction values drop off over the last three years, particularly for equipment components auctioned off piecemeal, in addition to plant entities that were auctioned as an entire plant.”

According to Allison Guyton, direct of operations for Rochester, Minn.-based asset recovery and auction firm Maas Companies, most of the facilities it offers to prospective buyers are lenderowned facilities or diluted foreclosures where lenders are involved in transactions, not the original purchasing entity that’s doing the selling. She adds that most of the assets on the properties that were bought at auction have been well-preserved thanks to proper maintenance procedures. An important item that has come up in recent years more than it used to, Guyton says, are issues over how warranties and licenses on equipment and technology and how they are transferred from one owner to another.

“In some cases they are transferrable—but not always,” Guyton says. “It just varies case-by-case if the property has gone through bankruptcy or how the assets acquired are to be liquidated. There’s really no set formula for that.”

When an experienced appraiser inspects an idled biodiesel plant prior to being acquired, Rein says they do both a market approach, where they look at comparisons between similar sales of similar equipment, and a cost approach, where they look at equipment based on cost.

“They’ll look at what the cost of that equipment was and then depreciate that based on its physical depreciation,” Rein says.

“That physical depreciation is typically tied to age, but it can also be impacted by how well it was maintained. If the equipment has been idled and not maintained, it’s definitely going to increase its physical depreciation and it’s going to lower its value on the cost approach.”

Renewable Fuels Group West Des Moines, Iowa renewablefuels@fcstone.com 800.422.3087, ext. 7419

Author: Bryan Sims Associate Editor, Biodiesel Magazine (701) 738-4974 bsims@bbiinternational.com

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SAFETY

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SAFETY

A Safe Trajectory In a record year, safety still matters

BY LUKE GEIVER

The combination of the blenders tax credit, high RIN prices and an operating RFS2 has made 2011 an unprecedented year in the biodiesel industry.

But although the wide margins seem great, situations do arise as producers try to restart, ramp-up or maximize their production efforts.

Those issues, when ignored, can bring down even the most efficient biodiesel production process. This month Biodiesel Magazine speaks with biodiesel producers and service providers to remind everyone involved in this record year that, as production increases or even levels off, safety remains king—it’s still “safety first.”

Yale Wong is the CEO of General Biodiesel, a 5 MMgy facility that processes yellow grease and waste vegetable oil into on-spec biodiesel.

“Things are rocking man—they are really rocking,” Wong says of the current biodiesel industry. After raising enough capital, Wong and his team were able to perform needed efficiencies and upgrades at the plant over the past year that have helped his operation see a 23 percent increase in monthly production. “One of the biggest improvements is that we were able to start recovering more methanol,” he explains. “I think that is one of the keys out of the biodiesel process, finding ways to do the most recoveries out of the methanol process to give you back your biggest percentage gains.”

By implementing a methanol distillation process, the team has been able to reduce costs by 30 to 50 cents per gallon. “Once you hit that threshold, you really hit that point where now you see the dollars rolling in—you are making money,” Wong says. But for small producers and startup biodiesel production firms looking to capitalize on the economic atmosphere of 2011 that do not have the money to buy a distillation process to recover methanol, Wong cautions cutting corners with safety measures pertaining to methanol recovery is not wise. Methanol is such a flammable liquid or gas, he reminds us, one you can’t even see. “We are finding out that we have to spend double the amount of money with methanol safety,” he says, “because we deal with it so much.”

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Those doubled efforts include an additional H-2 occupancy room that Wong says meets the necessary fire code requirements and firewall ratings. “Everybody in the business is figuring that out real fast,” he says. “That when you have more methanol in an occupied space, you have to have different classifications with the fire marshal.” Part of the room also includes Class 1 electronics that are spark proof.

Wong advises not to go cheap on electronics.

And the electronics the plant uses also help to meter overpressurized or overheated areas in the plant. “If you can beat everything ahead of the curve or find out these things before it ruins your batches or gets you in trouble,” Wong says, “then you are really putting this investment into good use.”

The new electronics or emphasis on methanol safety aren’t the only areas Wong and his team have focused on during this period of increased production. The team has a checksand-balances system, in which every task or duty is recorded and checked for completion.

Through a “buddy system” that Wong and his team employ, every duty or task is checked by a buddy at the facility.

Wong says that the buddy system has worked in more than one instance to prevent a major problem at the plant. In one case, an overfilled feedstock tank was “a coffee cup away” from spilling over, but after an employee double-checked a list of duties to verify their status, that employee caught the problem at the tank before a spill could happen.

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PHOTO: GENERAL BIODIESEL

SAFETY

SAFELY REDUCING COSTS: General Biodiesel CEO Yale Wong says his plant has reduced costs between 30 and 50 cents a gallon with a new methanol recovery system.

For those producers who’ve made the move to using multiple feedstocks like Wong’s team has, there are also issues with handling.

Because tanks typically don’t leak, and problems usually arise during transferring, Wong always has two people working on liquid transfer. The reason, he says, is that with liquids, someone might unhook a hose, forget to close a latch or something like that. “I would say that anything that has to do with thousands of gallons, always use two people and double valves (a system that requires the opening of two valves to open one larger valve).” Doing

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so, he says, will drastically cut down on the number of spills.

Ramping Up Safety Record volumes for 2011 mean more feedstock coming in and more product going out. Rich Bevis, president of Hemco Industries, points out that during such times of production where additional railcars or trucks are entering or leaving a facility, fall protection can be an overlooked issue. “People need access to the tops of these railcars or trucks to open a hatch or to vent or to load or unload,”

SAFETY Bevis says, “and at a small plant sometimes they are sending guys to climb up the side or they are just providing a simple bridge to the top.”

According to Bevis, the hand plank or rail on top of a rail car is actually lower than a standard hand rail (42 inches) on a certified access bridge.

In addition to diagnosing the fall protection issues related to rail car or truck shipments, Bevis also says a plant needs to ensure that all trucks loading or unloading are equipped with the proper grounding equipment. When a truck or railcar pulls up to load or unload, static electricity can be an issue, he explains. Pumping fluid through a pipe, just the motion of the fluid, creates a static charge, he says, and without having a proper grounding system, “static electricity can occur and create a spark.” By verifying that all trucks have a ground verification system, or a simple electrical cable with a big clamp that Bevis says looks like a jumper cable clamp that can be fastened to the vehicle, producers can avoid another safety issue. “Usually,” he says, “that grounding cable is not only connected to just an earth ground, but it is also connected to a verification electronic module that senses electronically whether it has been grounded or not.”

Although new plants will have such a system, older plants may not, he says. Regardless of all fall protection issues or the absence of grounding cables, Bevis says all plants that are ramping up or producing a significantly higher level than they previously did, can perform a safety audit. “We work with in-plant safety teams,” Bevis says, to figure out fall protection measures, and the teams he works with typically include two to four plant personnel. A facility that has undergone an expansion of some sort can simply “decide to start at one end and work through the plant,” he says, to locate any potential safety hazards and verify that the proper safety measures are in place. “That is probably the best way to handle it.”

from power plants to biodiesel facilities, he explains that his team has never had a recordable injury. “We are a highly trained hazmat crew,” he says. “We fix leaks under pressure.”

From Carter’s perspective, “everything is mechanical.” He says, “you can’t stop a flat tire,” adding that this is what his team does: “We fix flat tires while you are driving down the road.”

For plants that do incur a safety issue, Carter says although each type of facility has different criteria, it’s always better to call him or someone like him right away. As an example why, he cites a safety manager for a major petroleum refinery who told him that SOS mitigates more safety for the refinery than anyone because the team is fixing a leak that can help the plant manager avoid shutting off the plant or even isolating a particular area.

“What we are seeing now with energy companies,” Carter says, is that anytime they get any kind of leak, they call his crew—just for conservation efforts. To let something leak, apart from the safety hazards, is costing money,

he says. Biodiesel production facilities might be best served in the event of a problem to call a service like his as soon as possible instead of letting it grow out of hand, not only because even a small problem can be a big safety issue, but because of the money and energy savings. SOS is open 24 hours a day, 7 days a week, 365 days a year, and Carter explains why. Speaking with Biodiesel Magazine from a large power plant in need of his services in Iowa, he put it as simply as anyone could. Does his service make more sense for financial reasons or for safety reasons? “To me,” he says, “safety is the big thing.

You want everybody going home—there is no amount of money that is worth somebody not going home.”

Author: Luke Geiver Associate Editor, Biodiesel Magazine (701) 738-4944 lgeiver@bbiinternational.com

SIMPLICITY Turnkey Biodiesel Technology

EXPERIENCE 12 operating Biodiesel plants.

EXPERTISE Process (catalyst free and with catalyst), Distillation columns, Automation

COMPATIBILITY 0% to 100% FFA

OPTIMIZATION Maximum yield, efficiency and best in the class technology

Safety is Money

RANGE

In the event that a ramped-up plant does incur a safety hazard from a chemical spill, pipe seepage or line break, there are people like Jim Carter, president of SOS (Save Our Steam). In 2010, Carter and his team won the state of Minnesota’s safety award given out by the governor, and in his 20-plus years working on everything

Traditional process (Esterification and Transesterification) to Advanced process (catalyst free)

JatroDiesel, Inc. 845 North Main St., Miamisburg, OH 45342 Phone: (937) 847-8050 ext. 201 | www.jatrodiesel.com | sales@jatrodiesel.com

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INSTRUCTION

PRODUCING SAFE EMPLOYEES: Biofuel training programs emphasize lab and industrial safety.

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INSTRUCTION

An

Education in Safety

Programs around the U.S. tailor safety training to fit a wide range of students, professionals and novices

BY ERIN VOEGELE

A biodiesel plant is essentially a chemical refinery.

Regardless of the specific technology employed, each facililty houses flammable liquids, chemicals, boilers and other pieces of potentially hazardous equipment. It is essential that professionals working in those facilities are well versed in safety procedures. This is important in order to not only protect the plant employees and assets, but also to ensure the safety of the local community.

While employees do receive ongoing safety training on the job, it is helpful for new hires to have an understanding of safety procures and concerns before setting foot on the job site. To help prepare their students for the workforce, biofuels training programs available at community colleges and universities embed safety into all aspects of a program’s curriculum.

Iowa Central Community College has been home to one such biofuels training program. Although the program, which had been in operation for several years, has been put on hiatus due to decreased enrollment numbers, ICCC is still training students to enter the biofuels space via a slightly more broad-based training program that focuses on biotechnology. “We are incorporating some of the biofuels aspects into our biotechnology program, because we think that really covers some of the main ideas in terms of what employers are looking for,” says Julie Ehresmann, an advanced instructor of science at ICCC. She also notes that ICCC is home to a BQ-9000-certified biodiesel testing center, and that the college is absolutely open to reinstituting the biofuels program in the event student interest increases.

When the biofuels program was still active, members of industry helped shape its scope. “The feedback that we’ve gotten for the biodiesel industry is that they think safety is probably their top concern in terms of what they want students to know coming into their plants,” Ehresmann says.

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INSTRUCTION job, but they want somebody coming in with a really good understanding of the safety aspects of working there. They definitely always bring that up to us when we’ve had discussions in the past. All of our courses have an emphasis on safety.”

OSHA Training According to Ehresmann, ICCC offers a one-credit OSHA training course that allows students to earn an OSHA 10 certificate.

Having the certificate seems to make potential employees more attractive. “I know the companies really want candidates with that training,”she says.

ICCC’s OSHA training courses are taught

by Thomas Anderson, the college’s safety coordinator and an adjunct instructor. According to Anderson, he tailors the components of each OSHA class to reflect the skills students in a particular program will need to know. The class he has taught as part of the biofuels training emphasizes laboratory safety. We also address hazardous communication, he says. That means he educates his students on the “right to know” law that ensures employees the right to know what chemicals they will be exposed to in the workplace. “We talk about fire safety, what to do for evacuations, and the different things that are in the OSHA outreach guidelines,” he says. “We talk about electrical, and how a lab is supposed to be set up. We talk about ladder safety and fall protection,” he added, as well as a variety of other regulations.

One clear impact of the OSHA training is that injuries and instances on campus have dropped, Anderson says. The reason for the reduction of incidents is likely that students simply have an increased awareness of steps they can take to ensure their own safety, both in class and on the job.

Minnesota West Community and Technical College also offers students an opportunity to undergo OSHA training. Minnesota West offers both a two-year biofuels program, and a one-year certificate program that is focused on biodiesel. According to Rose Patzer, a biofuels technology instructor at the college, Minnesota West’s two-year program has been in existence for more than a decade.

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training. “I come from a research environment, and in a laboratory that is always upfront,” she says. “You can’t allow for carelessness. The same thing goes in a plant.”

“Safety, in any kind of lab application, is always No. 1,” Patzer says. A lot of Minnesota West’s students complete the biofuels programs online. To help provide safety training to those students, a one-credit OSHA training program is also offered via the Internet. “We hit about 22 of the OSHA standards,” says Patzer. “The students watch an online video and take quizzes and do unit or group exams.”

The class includes components related to safety orientation, fall protection, confined space, electrical safety, personal protective equipment, fire safety, and forklift safety.

Patzer says that while students who complete the online course do gain valuable skills, they do not currently receive an OSHA 10 certificate for their efforts. This is because she says she cannot be 100 percent certain of who is sitting behind the computer screen actually completing that course. Plans are in the works, however, to establish a testing method that would allow online students to earn the OSHA certificate. “What I’m considering is proctored exams,” Patzer says. For example, students who complete the online components of the OSHA training might be able to go to their local public library to take a supervised evaluation. She says that developing this type of testing method will be a focus of the next academic year.

Simulating Danger While OSHA safety skills are imperative to any employee working in an industrial setting, those who wish to work in biodiesel plants should also have a good understanding of the specific hazards they might face, and how to most effectively deal with rare emergency situations. Learning these skills can be difficult in a real-world environment as students cannot gain hands-on experience.

A simulation program developed by a team at Iowa State University is helping students gain those needed emergency response skills. The Interactive Biorefinery Operations Simulator is modeled after real biofuels plants in Iowa, including one owned by Renewable Energy Group Inc.

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Small-Scale Safety

Safety is not only a concern at the industrial level, it is also an important concern for small-scale producers who manufacture biodiesel on the home- or farm-scale for personal use. Educating this demographic of producers has been one goal of the National Biodiesel Education Program at the University of Idaho.

USDA sponsors the National Biodiesel Education Program. Jon Van Gerpen, director of the University of Idaho’s program, notes that there are two groups who cooperate with the USDA on the initiative: UI and the National Biodiesel Board.

The NBB has done a great job of producing safety training videos to serve industrial producers, focusing on things such as methanol fire safety and fire marshal training. Van Gerpen and his team recognized a need for similar education materials for home producers and set out to produce an educational video.

“I think the largest issue that we were concerned with had to do with fire safety,” Van Gerpen says. “In a commercial plant, all of the wiring and equipment is rated for use in a hazardous location. The wiring would be explosion-proof wiring, and it would be very difficult to find sources of flame or ignition sources for starting a fire.” In a situation where someone is making biodiesel in their garage, however, the type of equipment is not as intrinsically safe.

“If somebody happens to have a hot water heater in their garage, that could be an ignition source to ignite the methanol vapors,” he says. “We just wanted to make sure that people are aware of the risk and that they take proper precautions.”

The training video has been downloaded and watched many thousands of times, Van Gerpen says.

He also notes that home production of biodiesel does not seem to be especially hazardous. While we sometimes hear news reports of tragic accidents, those events are actually fairly few and far between.

“Compared to the number of people making the fuel,” he says, “there are very few incidents.”

INSTRUCTION The I-BOS essentially functions like a flight simulator. “We’ve tried to make this program replicate an actual plant environment,” says David Grewell, an ISU associate professor who led the development of I-BOS. “The layout is very similar, the monitors are similar, the software is similar, the way the alarms interact and the way you interface with the software is similar,” he explains.

While the program allows students to respond to and remediate production issues that they are likely to encounter at a biorefinery, such as feedstock contamination, it can also be used to train and evaluate disaster response.

Using the I-BOS, Grewell says students can be trained and prepared to deal with standard emergencies. “How fast do they respond to an alarm that goes off that indicates there is a fire somewhere?” he poses. “And, do they take the proper actions?”

I-BOS is currently utilized primarily by students enrolled in ISU’s Biorenewable Resources and Technology program. However, it is possible the program may be made available to the public via the Internet in the future.

That, Grewell says, has always been the goal, but he wants to ensure that all the bugs are worked out of the program before it is made available to the public. “I still don’t feel it’s quite ready,” he says. “The students are still finding bugs playing with it.”

concrete benefits that plant employees who graduate from a training program can attain.

While everyone starts out at the bottom as new hire with no experience, those who have graduated from a biofuels training program tend to rise through the ranks of a plant more quickly, she says. Those potential employees are also given preference over someone with no training during the hiring process.

Ehresmann also notes that she continues to encourage students to consider a career in biodiesel. “I always push students in that direction because I think the biodiesel industry is

going to survive all of this turmoil,” she says.

“I also tell my students that they are really nice companies to work for. They are not just trying to get everything out of an employee that they can. They want you to learn something along the way, which makes you more valuable as an employee.”

Author: Erin Voegele Associate Editor, Biodiesel Magazine (701) 540-6986 evoegele@bbiinternational.com

The Future of Biodiesel Education While opportunities for biodiesel education abound, fewer students are showing interest in the programs right now. Ehresmann says that is too bad, especially because industry is showing strong demand for workers. “We get calls all the time from potential employers wanting people, and we have far more demand than we have had people graduating from the program,” she says. “We were really disappointed we couldn’t offer the program this year because we see a demand for it.”

While Minnesota West’s biofuels program is still active, Patzer also notes that enrollment is down significantly. One reason for the drop in enrollment is likely the volatility that the biodiesel industry has experienced over the past few years. Students might not see working in biofuels as a potentially stable career move.

Patzer points out, however, that there are DECEMBER 2011

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BIODIESEL MARKETPLACE Ag Products & Services

Tank Cleaning Services

Equipment

Hydro-Klean, Inc. 515-283-0500

Turner BioDiesel 715-288-6480

www.turnerbiodiesel.com

Associations/Organizations Red River Valley Clean Cities 651-227-8014 www.CleanAirChoice.org Twin Cities Clean Cities Coalition 651-223-9568 www.CleanAirChoice.org

Biodiesel Production

PreProcess, Inc. 949-201-6041

www.hydro-klean.com

Conferences/Trade Shows & Meetings Algae Biomass Summit 763-458-0068 www.algaebiomasssummit.org

www.preprocessinc.com

Equipment & Services Air Pollution/Odor Control Anguil Environmental Systems, Inc. 414-365-6400 www.anguil.com

Analytical Instruments

Algal Biomass Organization 763-458-0068 www.algalbiomass.org

Wilks Enterprise, Inc. 831-338-7459

Construction

Expellers

www.WilksIR.com

Fabrication

Existing Producers

Andy J. Egan Company 616-791-9952 Raptor Technology Group 321-274-9675

www.andyegan.com www.raptorfe.com

Plant Construction AP Fabrications 870-673-8504

www.apfabrications.com

Consulting Business Plans Greasemasters, LLC 321-202-6688 www.greaserecycling.com

Chemicals-Catalysts Bases

Public Relations

BASF 724-538-1358

www.inorganics.basf.com

Evonik Degussa Corporation 732-651-0001 www.degussa-biodiesel.com Methanol of Orlando 407-234-1788 SMOTEC PLUS Co. 201-506-9109

Education Bismarck State College 701-224-5735 www.BismarckState.edu/energy

www.smotecplus.com

Biodiesel Education Prog. Univ. of Idaho 208-885-7626 www.biodieseleducation.org

Employment

Ductwork

Recruiting www.hyrdo-klean.com

Emergency Spill Response Hydro-Klean, Inc. 515-283-0500

Filtration Equipment

jmm@arllc.org

Cleaning Hydro-Klean, Inc. 515-283-0500

Stout Solutions Group, LLC 501-833-8511 www.stoutsolutionsgroup.com

Executive Leadership Solutions 800-485-9726 www.team-els.com SearchPath of Chicago 815-261-4403,x100 www.searchpathofchicago.com

www.hydro-klean.com

Met-Chem ¿lter presses are ideal stock pre-¿lters. They have been sucessfully used in process ¿ltration of Magnesol™ and in various other applications for processing biodiesel.

Call: 216-881-7900 info@metchem.com Fax: 216-881-8950

Strategic Resources 425-688-1151 www.strategicresources.com

Hydro-Blasting Hydro-Klean, Inc. 515-283-0500

Engineering www.hydro-klean.com

Crown Iron Works Company 651-639-8900 www.crowniron.com

Railcars Hydro-Klean, Inc. 515-283-0500 36

Process Design

www.hydro-klean.com

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Pelcal, LLC 805-602-1088

www.pelcal.com

BIODIESEL MARKETPLACE Filtration Media Met-Chem, Inc. 216-881-7900

www.metchem.com

Flaking Equipment

Finance

PFT-Alexander, Inc. 1-800-696-1331

Accounting

www.pft-alexander.com

Christianson & Associates 320-235-5937 www.christiansoncpa.com

Maintenance Services

French Oil Mill Machinery Company 937-773-3420 www.frenchoil.com/biodieselmag.shtml

Grease Handling Equipment Moeller Plastics 931-738-809

Loading Equipment-Liquid

www.moellerplastics.com

Laboratory-Equipment

PFT-Alexander, Inc. 1-800-696-1331

Meters PFT-Alexander, Inc. 1-800-696-1331

Sandalwood Valuation 303-955-8393 www.sandalwoodvaluation.com

Due Diligence www.pft-alexander.com

John Harday, Attorney At Law 501-833-8511 jhardy@lee-enterprises.com

Quality Assurance Test Prod

Biodiesel Analytical Solutions 800-483-8107 www.biodieselanalytical.com

Bullard Consulting 501-833-8511

French Oil Mill Machinery Company 937-773-3420 www.frenchoil.com/biodieselmag.shtml

Separators

Laboratory-Testing Services

Appraisals www.pft-alexander.com

Hydrasep, Inc. 662-429-4088

Equity Procurement kent@lee-enterprises.com

Cari Campbell & Associates 563-513-2723 www.caricampbellassociates.com

Insurance www.hydrasep.com

IMA of Kansas, Inc. 316-266-6290

www.imacorp.com

Storage Guttman Group 800-245-5955

Mergers & Acquisitions www.guttmangroup.com

National Business Brokerage, Inc. 501-833-8511 www.natbusbro.com

Tanks JVNW Inc. 503-263-2858

Marketing www.jvnw.com

Used Equipment UPM Machine 713-440-8200

www.upmmachine.com

Water Treatment

YOUR USED OR IDLE EQUIPMENT

Call: 1.800.919.0888 or Email: jeff@watersurplus.com Cennatek Bioanalytical Services 519-479-0489 www.cennetek.ca Iowa Central Fuel Testing Lab 515-574-1253 www.iowafueltestinglab.com Saskatchewan Research Council 306-787-9400 www.src.sk.ca

Gulf Hydrocarbon 800-834-0202

www.gulfhydrocarbon.com

Suma Energy LLC 516-816-3705

www.sumaenergy.com

Blender/Distributor

SELL US REVERSE OSMOSIS SYSTEMS RO MEMBRANE ELEMENTS ION EXCHANGE SYSTEMS ION EXCHANGE RESIN FILTRATION SYSTEMS WASTEWATER EQUIPMENT

Biodiesel

American Biofuel Solutions, LLC 305-246-3835 www.305biofuel.com

Market Data Research 13 503-863-9913

www.Research13.com

Miscellaneous Maas Companies 507-285-1444

www.maascompanies.com

Modular Systems GreeNebraska Renewable Diesel Refineries 402-640-8925 www.greenebraska.com

Turnkey Systems Agri-Process Innovations 870-673-3040 www.apinnovations.com Green Fuels America, Inc. 866-996-6130 www.greenfuelsamerica.com

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BIODIESEL MARKETPLACE Advertiser Index

Vehicles

PICK-UP & DELIVERY.

39 2012 International Biomass Conference & Trade Show 7 2012 National Biodiesel Conference 9 Algal Biomass Organization 2 Biodiesel Plant Map

Grease Collection Service Aluminum Vacuum Tank Trucks

11 California Biodiesel Conference 40 Evonik Degussa Corporation

Tank Sizes from 300 to 7000 Gallons

27 FCStone, LLC

Slide-In Units

JatroDiesel Inc. 937-847-8050 Mcgyan Biodiesel, LLC 763-421-3729

Size & Pump Options In STOCK Selection

31 Jatrodiesel, Inc.

Ask about our dual tank & pumping systems.

30 Moeller Plastics

www.jatrodiesel.com

www.mcgyan.com

Pacific Biodiesel Technologies 503-263-1851 www.biodiesel.com

Research & Development

• • Industries Inc.

866-789-9440 www.keevac.com Denver, CO • Bellefonte, PA • Kansas City, MO

Engine Testing Roush Industries 734-779-7736

www.roush.com

Transportation Railcar Gate Openers The Arnold Company 800-245-7505 www.arnoldcompany.com

BIODIESEL MARKETPLACE

your solution

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BIODIESEL MAGAZINE

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DECEMBER 2011

35 NBB National Biodiesel Board

April 16-19, 2012

Colorado Convention Center Denver, Colorado

The Largest Biomass Industry Networking Event in the World!

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The International Biomass Conference & Expo is anticipated be even larger than last year’s successful event. With an anticipated 1,500 attendees, 230 exhibitors, 120 speakers and 60 sponsors, you’ll experience firsthand why the majority of our past exhibitors and sponsors have walked away with valuable contacts and sales leads.

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