2015 Edition Biodiesel Magazine

INSIDE: IMMOBILIZED ENZYME TECHNOLOGY ENTERS COMMERCIAL STAGE 2015 Edition

On a Mission CEO Buster Halterman Takes His Vision to Reclaim, Recycle, Refuel Full Circle Page 16

Plus

New Technology Updates, Reviews

Page 22

AND

Ongoing Process Improvements at Greenleaf Biofuels

Page 30

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CONTENTS

2015 EDITION VOLUME 12 ISSUE 1

16

22

PROFILE

TECHNOLOGY

Realizing the Vision to Reclaim, Recycle, Refuel

Ever-Evolving Biodiesel Technology Developments

San Diego grease collector Buster Biofuels nears completion of a 5 MMgy enzymatic plant

Updates on new, emerging biodiesel process technologies and proven optimization strategies

BY RON KOTRBA

BY RON KOTRBA

CONTRIBUTION 3O PROCESS

Continual Improvements to Continuous Flow Production Connecticut-based Greenleaf Biofuels enhances its 10 MMgy process on an ongoing basis

30 Advertiser Index 2 2015 International Biomass Conference & Expo 14 AMERIgreen Energy 29 AOCS American Oil Chemists Society 34 BBI Project Development 24 Community Fuels 32 Crown Iron Works Comany 28 Desmet Ballestra North America 36 Evonik Corporation 7 GEA Westfalia Separator 25 Glycerin Traders 21 Gorman-Rupp Pumps 26 ICM, Inc. 20 INTL FCStone Inc. 8 Iowa Central Fuel Testing Lab 27 Louis Dreyfus 15 Methes Energies 33 & 35 NBB National Biodiesel Board 18 Oil-Dri Corporation of America 19 Pennsylvania State University 9 SGS North America, Inc.

BY MING CHAI AND GUS KELLOGG

DEPARTMENTS 4 Editor’s Note BITTERSWEET GIFT

BY RON KOTRBA 5 Legal Perspectives Patenting Strategies in the Biodiesel Industry

BY BENJAMIN SPEHLMANN 6 Talking Point Immobilized Enzyme Technology Enters Commercial Stage

BY AHMED TAFESH 8 FrontEnd Biodiesel News & Trends

10 Inside NBB 14 Business Briefs Companies, Organizations & People in the News

34 Marketplace

Biodiesel Magazine: (USPS No. 023-975) 2015 Edition Volume 12 Issue 1. Biodiesel Magazine is published bi-monthly by BBI International. 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.

2015 EDITION

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BIODIESEL MAGAZINE

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EDITOR'S NOTE

BITTERSWEET GIFT

www.BiodieselMagazine.com

Ron Kotrba

E D I T O R I A L Tom Bryan President & Editor in Chief tbryan@bbiinternational.com Tim Portz Vice President of Content & Executive Editor tportz@bbiinternational.com

Editor Biodiesel Magazine rkotrba@bbiinternational.com

Ron Kotrba Editor rkotrba@bbiinternational.com Jan Tellmann Copy Editor jtellmann@bbiinternational.com

P U B L I S H I N G Mike Bryan Joe Bryan

&

S A L E S

CEO jbryan@bbiinternational.com

Matthew Spoor

Vice President, Operations mspoor@bbiinternational.com

John Nelson

Sales & Marketing Director jnelson@bbiinternational.com

Howard Brockhouse Chip Shereck Jeff Hogan

Business Development Director hbrockhouse@bbiinternational.com Senior Account Manager cshereck@bbiinternational.com Account Manager jhogan@bbiinternational.com

Jessica Beaudry

Circulation Manager jbeaudry@bbiinternational.com

Marla DeFoe

Traffic & Marketing Coordinator mdefoe@bbiinternational.com

Jaci Satterlund Raquel Boushee

The U.S. biodiesel industry received a bittersweet gift from Congress a week before Christmas when it reinstated the $1 per gallon biodiesel tax credit. Last year, the industry waited and waited, and

Chairman mbryan@bbiinternational.com

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

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waited some more for EPA to finalize biomass-based diesel volumes under the renewable fuel standard (RFS), and for Congress to act on the tax credit reinstatement. Toward the end of the year, EPA finally said it was holding off until 2015 to issue RFS volumes for 2014—an absurdity, no doubt. Then, in December, Congress passed the tax extenders package reinstating the tax credit—for 2014 only.

The action is sweet because those in the industry entitled to the credit will receive a sum totaling well over $1 billion, constituting a significant cash injection. The gift is bitter for several reasons. The obvious reasons are the credit wasn’t extended forward, only backwards. Efforts to renew the tax credit will occupy the collective minds of this industry and the National Biodiesel Board into the new year—once again. Dec. 31 was the fourth time this incentive expired. It had been renewed three times, with the third time being the first time it was renewed only retroactively.

If the government is going to spend the money anyway, why wouldn’t it do it in such a way that fosters domestic, renewable energy production and job growth while reducing emissions and dependence on foreign oil and dirty, finite fossil fuels in general? The same can be said for the EPA—they must finalize the RFS rule, so why not do it in a time frame that allows obligated parties to fulfill their requirements and give the renewable fuel producers a stable, predictable trajectory that will attract investment and foster growth?

It’s not just the biodiesel industry that benefits from a tax credit and RFS that is in play and predictable. Oil companies that blend biodiesel benefit from the dollar, and EPA’s delay baffled and concerned them just as much as it did those in the biodiesel space. Despite all of the uncertainty producers endured in 2014, the year was a decent one in terms of production volumes and sector activity. However, this pattern of backward-looking policymaking is stifling investment and putting a slow, painful squeeze on this industry in ways we have yet to fully realize.

2015 EDITION

LEGAL PERSPECTIVE

Patenting Strategies in the Biodiesel Industry

BY BENJAMIN C. SPEHLMANN

Accompanying the expanding number of process innovations in the biodiesel arena is a healthy growth in the intellectual property positions being carved out by participants. About 70 percent of the U.S. patents

in this industry have been issued within the past four years, providing an increasingly growing landscape in which to protect new processes and equipment. Obtaining a desirable scope of coverage, as defined by patent claims, involves a number of important considerations.

Appreciating the State of the Art. A patentable invention must be deemed novel and nonobvious, relative to the current state of the art. The patent office frequently deems that this “prior art” includes not only the numerous patent and literature publications recently available in the biodiesel industry, but also the well-established technologies for processing fossil fuels. Inventors should therefore recognize key differences relative to practices in the refining and petrochemical fields.

For example, the very low sulfur content of a raw biooil may be associated with the discovery of different catalysts and/or milder operating conditions, compared to those required for similarly upgrading a counterpart, crude oil fraction. In this case, the specific types of catalysts and operating conditions, and a description as to how they differ from the art-recognized standards, should be documented in an invention disclosure.

Claiming Advantages over Features. The mere fact that some process or product feature is unknown in the prior art typically cannot, without more, overcome the nonobviousness hurdle to a patent award. Patent examiners frequently cite legal propositions relating to “obvious design choices” and “routine optimization” in concluding that a given modification, such as a new operating Feature X (e.g., one or a combination of process conditions such as temperature, pressure, reactor residence time, etc.), cannot be patented.

But suppose it is newly discovered that Feature X leads to reduced byproduct yields. If Feature X alone is incorporated into a patent claim to a process, it could be dismissed as an obvious modification, based on any suggestion in the prior art leading to operating Feature X, for example, the need to compensate for a different feedstock composition. However, claiming Feature X

together with its associated process advantage, namely a decreased percentage of byproduct yield, presents a much stronger case for patentability. Similarly, claiming Feature X together with some related advantage, such as a defined reduction in posttreatment operating severity or energy input (due to the reduced byproducts), provides a separate way to potentially patent the invention.

On this point, it is always beneficial to present alternate claim formats, as some claim limitations may be harder to prove were known in the prior art (rendering the claim more difficult to invalidate), whereas other claim limitations may be easier to demonstrate are infringed by a competitor’s practices.

Numerical ranges that quantify any and all advantages are valuable, because qualitative statements alone (e.g., improved throughput) may not be deemed to describe the invention with sufficient definiteness. Where possible, examples should be added that experimentally confirm the defined values.

Explaining the Invention in the Patent Specification. A well-drafted patent application does more than simply describe a process or product and list a large number of associated embodiments or aspects.

It conveys the importance of the invention in terms of addressing known problems and conferring benefits that could not have been appreciated from knowledge of the prior art. This leaves the practitioner prosecuting the application before the patent office (who may not have drafted the application) with arguments and evidence supporting the patentability of the invention, and with little doubt as to inventor’s overall motivation for seeking patent protection.

Being mindful of these points can improve the chances of effectively protecting a biodiesel process or product technology, with a claim scope encompassing foreseeable activities of competitors attempting to design around the patent. Value derived from strong patents will benefit the technology developer as well as other stakeholders in a venture, including investors, licensees and end users.

Author: Benjamin C. Spehlmann Attorney, Banner & Witcoff Ltd. 202-824-3000 bspehlmann@bannerwitcoff.com

2015 EDITION

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TALKING POINT

Immobilized Enzyme Technology Enters Commercial Stage

BY AHMED TAFESH

TransBiodiesel has a very strong relationship with U.S. oil and biodiesel producers. We have ongoing collaborations with U.S. customers, including a joint venture partnership with Appalachian Biofuels to produce 28 MMgy using TransBiodiesel’s immobilized enzyme technology in Russell County, Virginia, by August; a 1 MMgy pilot plant with another company; and a third U.S. partnership with a project enzymatic technology platform to assist biodiesel companies in fueling the world by producing ASTM to produce 5 MMgy of biodiesel by February.

In collaboration with the Korean company and EN biodiesel from any grade of feedstocks M-Energy, TransBiodiesel has developed and with free fatty acid (FFA) content running the implemented a biodiesel production process using spectrum from zero to 100 percent, including used immobilized enzymes to produce ASTM biodiesel cooking oil, palm fatty acid distillates, crude plant at a rate of 8 MMgy. TransBiodiesel has several inoils and brown grease.

The immobilized enzyme used in a continuous, ternational collaborations and it seems to be making stirred tank reaction process is mainly featured with itself at home throughout the world.

TransBiodiesel supplies its flagship product to its high simultaneous esterification and transesterithe biodiesel production industry under the brand fication activities, tolerance to high concentrations of methanol and water in the reaction medium, and name TransZyme A, providing the best use cost its long-term operational lifetime without having to when dealing with high-FFA feedstock, delivering greater yields and efficiencies to biodiesel producers replace it for six to 12 months, depending on the than conventional chemical processing. TransBiofeedstock, which makes it economically viable for use in biodiesel production. One ton of the biocata- diesel also supplies customers with the engineering assistance they may need. The company is willing lyst can produce 3,000 to 4,000 tons of biodiesel.

Our value proposition helps companies cut the to collaborate and partner with serious companies in the form of joint ventures to produce biodiesel cost of biodiesel production, opens the possibilenzymatically. ity of producing more biodiesel using alternative, The benefits of using immobilized enzymes in lower-grade feedstocks, and reduces harm to the the production of biodiesel have been adopted on environment. Since feedstock represents the largest a large scale, and the hurdles of making the process share of the price of biodiesel (75 to 90 percent), economically viable on a commercial scale have there is a significant need to drive down feedstock been overcome. TransBiodiesel can save produccosts. The higher the FFA concentration in feeders several million dollars a year in costs related stock, the lower the feedstock price, and therefore a better process economy for the final products can to feedstocks, chemicals, energy and cleanup. Our immobilized enzyme technology and joint venture be achieved.

Such inexpensive feedstocks involve some pre- propositions are available solutions for continued treatment steps, which include filtering the oil down growth in the biodiesel sector. to 5 microns to prevent particles from colliding with the enzyme beads. The posttreatment proprietary Author: Ahmed Tafesh method developed by TransBiodiesel warrantees to Chief Technology Officer, TransBiodiesel achieve ASTM-spec biodiesel when applied on all 972-4-7709182 atafesh@transbiodiesel.com reaction mixtures obtained from using the different low-quality feedstocks. Depending on the FFA content of the feedstock, the quality of the formed glycerol is almost salt-free and transparent, which can be upgraded to USP-grade glycerol without distillation.

TransBiodiesel entered the biofuel arena with its new, game-changing technology and IP-protected technology related to preparation of immobilized enzymes, or biocatalysts, for production of biodiesel. The company offers an advanced

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EVENTS CALENDAR

National Biodiesel Conference & Expo JANUARY 19-22, 2015 Fort Worth Convention Center Fort Worth, Texas The National Biodiesel Conference & Expo has grown from a small gathering to a powerful platform that drives biodiesel business all year long. The event provides educational tracks for all biodiesel stakeholders—state, national, and international feedstock and feedstock processor organizations, biodiesel suppliers, fuel marketers and distributors, and technology providers—as well as networking opportunities, industry updates, and access to government leaders.

800-841--5849 | www.biodieselconference.org

International Biomass Conference & Expo APRIL 20-22, 2015 Minneapolis Convention Center Minneapolis, Minnesota Organized by BBI International and produced by Biomass 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.

866-746-8385 | www.biomassconference.com

JUNE 1-4, 2015 Minneapolis Convention Center Minneapolis, Minnesota The FEW provides the global ethanol industry with cutting-edge content and unparalleled networking opportunities in a dynamic business-to-business environment. The FEW is the largest, longest running ethanol conference in the world—and the only event powered by Ethanol Producer Magazine.

866-746-8385 | www.fuelethanolworkshop.com

National Advanced Biofuels Conference & Expo OCTOBER 26-28, 2015 Hilton Omaha Omaha, Nebraska Produced by BBI International, this national event will feature the world of advanced biofuels and biobased chemicals—technology scale-up, project finance, policy, national markets and more—with a core focus on the industrial, petroleum and agribusiness alliances defining the national advanced biofuels industry.

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FrontEnd

Biodiesel News & Trends

REG enters EU market, completes US projects

NEW TERRITORY: REG entered the renewable diesel production and sales market with the purchase and start-up of the 75 MMgy plant formerly named Dynamic Fuels.

PHOTO: RENEWABLE ENERGY GROUP INC.

Renewable Energy Group Inc. and IC Green Energy Ltd. announced in December that REG, through a wholly owned subsidiary, will acquire ICG’s 69 percent equity ownership position in German biodiesel producer Petrotec AG for $20.9 million in REG shares. Petrotec is a fully integrated company utilizing more than 15,000 collection points to gather used cooking oil (UCO) and other waste feedstocks to produce biodiesel at its two plants in Emden and Oeding, Germany. Petrotec’s nameplate production capacity is 55.5 MMgy, produced predominantly from UCO. Petrotec’s collection service, treatment processes and production facilities are certified by both German and European regulators. REG European Holdings B.V. will also purchase ICG’s loan to Petrotec of $15.4 million.

Closing was expected before the end of 2014.

“REG’s investment in Petrotec is a natural extension of our business strategy, which should enable us to better capture value from international trade flows and to participate in European biofuel markets,” says Daniel J. Oh, REG president and CEO. In the fall, REG celebrated the grand opening of its Geismar biorefinery, which is now producing renewable hydrocarbon diesel (RHD) in

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commercial-scale quantities. The event marked the successful start-up of the 75 MMgy nameplate capacity plant that REG acquired in June. The fuel produced in Geismar is branded REG-9000/RHD. “REG Geismar strengthens our core biomass-based diesel business, allowing us to further expand our product offering to our customers,” Oh says. “It reinforces our commitment to advanced biofuels and demonstrates our confidence in this market.”

The company also announced completion of upgrades to its 30 MMgy biodiesel plant in Mason City, Iowa. REG began the $20 million project in fall 2013, shortly after the company restarted the plant, which was purchased in July 2013. The upgrades enable the Mason City biorefinery to utilize multiple raw materials, such as inedible corn oil, animal fats and greases. REG also improved the existing frontend technology at the biorefinery that enables higher yields from free fatty acids in the production process. “Enhancing the plant’s pretreatment and distillation capabilities will enable us to take a broader spectrum of lower-cost feedstocks and produce a high-quality product,” says Brad Albin, REG vice president of manufacturing. “The increased feedstock flexibility helps drive greater demand for local feedstock suppliers and keeps more of their products in the Midwest.” The company was awarded approximately $2.5 million in incentives from the Iowa Economic Development Authority and the city of Mason City for the project. At press time, REG announced it had also completed upgrades to its 30 MMgy biodiesel plant in Newton, Iowa.

Finally, REG expanded its division that sells heating oil and petroleum diesel along with biodiesel blends by offering additional biofuel blends in New York, Minnesota and Iowa, the company announced in October. REG Energy Services LLC will offer ultra-low sulfur heating oil and diesel (ULSHO/ULSD) blended with up to 20 percent biodiesel at its New Hyde Park, New York, terminal. In addition, ULSD blended with biodiesel will be offered at Minnesota terminals in Alexandria, Mankato, Roseville and Rochester, and Iowa terminals in Mason City and Des Moines. This adds ULSD to REG’s existing biodiesel offerings at those locations. This is the first time REG Energy Services will offer biodiesel fuel blends along the Magellan Midstream Partners terminal system in Iowa and Minnesota.

FRONTEND

Biodiesel sector activity strong despite policy uncertainty

NEW AWARD: Community Fuels’ latest grant award from the California Energy Commission for $4.1 million is for a distinct project that is complementary to its previous two projects expanding production capacity and building an advanced biofuel terminal.

PHOTO: CAPTIVATING PHOTOS

While 2014 has been colored by U.S. policy uncertainty, thanks to EPA delays in finalizing the renewable fuel standard and the lapsed biodiesel tax credit, acquisition, construction, expansion and optimization activities in the sector have been impressive. Here is a briefing of noteworthy activities that have taken place in the past several months.

Rendering firm Baker Commodities Inc. announced last fall that it has acquired a controlling interest in New Leaf Biofuel, a 6 MMgy biodiesel facility in San Diego. New Leaf Biofuel President Jennifer Case and her husband Tyler Case, vice president of operations, will work with Baker as general operators of New Leaf Biofuel.

Bridgeport Biodiesel in Connecticut is expanding production. TriState Biodiesel and its parent company, The Sustainable Biodiesel Company, partnered with New Jersey-based Lard-NABF LLC to purchase the plant in 2013. Brent Baker, operations director of the facility and CEO of Tri-State Biodiesel, says a new tank farm and another large process line are being added to take total capacity from 2 MMgy to 10 MMgy at the site. The project is slated for completion this spring.

BDI-BioEnergy International has been contracted to optimize the Crimson Renewable Energy LP plant in Bakersfield, California. The retrofit project will allow waste materials to be processed more efficiently and more sustainably into high-quality, ultra-low carbon biodiesel, and increase capacity to 22.5 MMgy. Community Fuels in Port of Stockton, California, won a grant from the California Energy Commission totaling more than $4 million to expand its process capabilities.

The nation’s first biodiesel plant co-located at an ethanol refinery, Adkins Energy in Illinois, came online last fall. The project was engineered by WB Services LLC. Stuart, Florida-based Viesel Skunk Works LLC has developed a continuous flow enzymatic biodiesel process in partnership with Tactical Fabrication and Novozymes that will soon be commercially available to the industry.

Buster Biofuels is constructing a 5 MMgy enzymatic plant in San Diego and plans to open early this year. The plant will be the first enzymatic biodiesel production facility on the West Coast. See page 16 for more information on this project.

Appalachian Biofuels is building a biodiesel plant in Russell County, Virginia, in a joint venture with immobilized enzyme maker TransBiodiesel. Ahmed Tafesh, the chief technology officer at TransBiodiesel, says it is being built on a modular basis and will start at 9 MMgy and after 12 months expand to 28 MMgy. Washakie Renewable Energy is doubling its biodiesel production capacity from 20 MMgy to 40 MMgy. A Benefuel and Felda joint venture is retrofitting a 75 MMgy biodiesel plant in Malaysia formerly owned by Mission NewEnergy.

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2015 EDITION

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NATIONAL

BOARD

In Face of Uncertainty, Industry Must Fight On As we put another year in the books, I am extremely proud of how the biodiesel industry came together to respond to the adversity faced in 2014. We have certainly seen more than our share of tough times before, but we have never had to fight harder, smarter, and with more at stake than we did in 2014.

The disastrous proposed 2014 renewable volume obligations (RVO) and the EPA’s delay in the final rule all the way Joe Jobe, CEO, to 2015, combined with Congress’ delay National Biodiesel Board in the reinstatement of the biodiesel tax credit, caused tremendous financial harm to many members—especially our smaller producers. Meanwhile, we saw a refortified effort by a powerful antibiofuels coalition attack biofuels politically, legally, and through public opinion. Huge efforts to repeal the renewable fuel standard (RFS), litigation against it, and multimedia campaigns to disparage biofuels came from the petroleum lobby and its antibiofuels coalition.

Every effort has been made to combat and defeat these attacks on all fronts. While we continue to win these fights despite being out-resourced many times over, this is a fight that will be ongoing for some time.

During 2014, the biodiesel industry submitted more than 6,300 individual comments to EPA during the 60-day 2014 RVO comment period. Members also helped shape the extensive official NBB comments, 400 pages worth of data. More than 120 businesses from 41 states signed a joint letter to President Obama to support a strong RVO for biodiesel. More than 200 news stories, letters to the editor, and op-eds were printed in papers large and small across the country urging support of biodiesel and the RFS. Members hosted their senators and representatives at their facilities to show firsthand the negative impact of policy uncertainty on their businesses. Hundreds of meetings took place on the Hill throughout the year through coordinated NBB member fly-ins, staff meetings and members’ individual efforts.

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While this list doesn’t come close to the exhaustive efforts of NBB staff and members during the year, it does show that when faced with a challenge, the people in our industry rise to the occasion.

The RFS is the only comprehensive energy policy in the transportation fuels sector and, when allowed to work, it can have a great impact in diversifying our transportation energy supply with cleaner burning, renewable fuels. This policy, for all its flaws in execution, has been the single biggest driver of our industry growth the past four years. As painful as a two-year long political fight is, it is absolutely worth it. We have no other choice but to keep pushing forward and to keep fighting onward.

Biodiesel’s long-term future is still a bright one. Despite all the challenges, we are still the fastest growing advanced biofuel produced in the U.S. With current production estimates coming in between 1.6 and 1.7 billion gallons for 2014, our industry is on track for four straight years of more than a billion gallons of production, and four straight years of exceeding EPA’s minimum volume requirements under the RFS. More OEMs support high blends, more states and cities have blend requirements, and biodiesel is in more markets than ever before. This isn’t something that simply happens on its own. This comes from hard work, long-term vision, and the execution of effective state and federal policies.

EPA and this administration have stated that they are committed to getting this program back on track in 2015. Everyone in the biodiesel industry is certainly supportive of this goal. Future growth of the RFS beyond 2015 was all about growing advanced biofuels.

As America’s first, and currently, only commercially successful advanced biofuel, biodiesel must continue to lead if the RFS is going to succeed. We can succeed and we will. Despite huge challenges and misinformation to the contrary, biodiesel has caused the goals of the entire advanced biofuel category to be met and exceeded every year.

Now is no time to stop. In fact, 2015 is the turning point year to get the program on a predictable, stable and sustainable path.

Joe Jobe, CEO, National Biodiesel Board

inside

NBB RFS delays continue … and continue … and continue After waiting all year for the 2014 renewable fuel standard (RFS), biodiesel supporters got word in late November that the frustration would continue into the new year when the EPA announced that the standards wouldn’t be ready in 2014.

In announcing the additional delays, the agency said the proposed rule “generated a significant number of comments, particularly on the proposal’s ability to ensure continued progress toward achieving the law’s renewable fuel targets. Due to the delay in finalizing the standards for 2014, and given ongoing consideration of the issues presented by the commenters, the agency intends to take action on the 2014 standards rule in 2015.”

In a press statement, the agency added, “Looking forward, one of EPA’s objectives is to get back on the annual statutory timeline by addressing 2014, 2015 and 2016 standards in the next calendar year.”

Additionally, the agency said the deadline for compliance with the 2013 standards will shift to 2015.

While it is encouraging that EPA has set a goal of getting back on track next year with three years’ worth of rules, the continued delays are incredibly disruptive to the biodiesel industry. The National Biodiesel Board has worked all year to fight the EPA’s original

proposal for just 1.28 billion gallons while at the same time educating the EPA about the damage stemming from the ongoing RFS uncertainty. NBB has urged the agency to issue the biodiesel standards as quickly as possible, issuing the following statement when the EPA announced the latest delay.

“This administration says over and over that it supports biodiesel, yet its actions with these repeated delays are undermining the industry. Biodiesel producers have laid off workers and idled production. Some have shut down altogether. We know that fuels policy is complex, but there is absolutely no reason that the biodiesel volume hasn’t been announced. We are urging the administration to finalize a 2014 rule as quickly as possible that puts this industry back on track for growth and puts our country back on track for ending our dangerous dependence on oil. We also urge them to move quickly on 2015 so that we don’t repeat this flawed process again next year.”

Heading into 2015, NBB will continue pressing the Obama administration to act and will be calling on all biodiesel stakeholders to remain engaged and vocal in the political process to ensure the biodiesel industry’s voice is heard.

National Biodiesel Board members elect governing board

NBB members voted to reelect Steven J. Levy as National Biodiesel Board chairman at the fall membership meeting.

National Biodiesel Board members selected their trade association leadership recently, electing five returning governing board members and two new members to serve in leadership roles.

“Biodiesel has faced many challenges, but with strong leadership from among all sectors of the industry, we are in a position as an organization to face those challenges head on,” said NBB CEO Joe Jobe.

“This industry has produced more than a billion gallons of advanced biofuels each of the past four years and will continue to grow into the future under the direction of the board.”

Officers elected to lead the board are: • Steven J. Levy, chairman, Sprague Operating Resources.

• Ron Marr, vice chair, Minnesota Soybean Processors.

• Mike Cunningham, treasurer, American Soybean Association.

• Greg Anderson, secretary, Nebraska Soybean Board.

NBB members also voted to fill seven board member spots. Members elected to the governing board included officers Steven J. Levy, Greg Anderson and Mike Cunningham, along with: • Jennifer Case, New Leaf Biofuel.

• Tim Keaveney, Hero BX. • Robert Morton, Newport Biodiesel.

• Ben Wootton, World Energy.

Ron Marr, Gary Haer, Todd Ellis, Kent Engelbrecht, Ed Hegland, Bob Metz, Robert Stobaugh and Ed Ulch also continue to serve on the governing board.

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insideNBB

#PumpUpBiodiesel social media campaign raises grassroots biodiesel support NBB launched a grassroots social media campaign late last year aimed at garnering support for biodiesel and spreading the word about its benefits.

With negative press swirling as the EPA and the White House continued to delay action on the 2014 renewable fuel standard (RFS) volumes, the campaign aimed at sharing positive information about biodiesel.

As many biodiesel supporters already know, there are many reasons to be in favor of biodiesel, including reducing greenhouse gas emissions, creating American jobs and reducing our dependence on foreign oil, among many others.

“The campaign was set up to create a positive buzz for biodiesel during a time when the administration was set to make a critical decision on the RFS,” said NBB Director of Communications Jessica Robinson. “Our industry has always had a great grassroots presence and this campaign gave us an avenue to showcase that support.”

Participants used the hashtag #PumpUpBiodiesel on both Twitter and Facebook throughout the month of November. This hashtag reflected the industry’s goals of growing biodiesel to 10 percent of the diesel market by 2022. It also tied to the industry’s call for an increase in volumes under the RFS.

Have it your way: Your trade association priorities made to order The National Biodiesel Board is your association; that means you can have it your way. NBB members run the show. Members define long-term objectives and programs—they have it their way.

This is the time of year staff works with NBB members on an extensive planning process to capture member input and share association priorities. NBB staff and contractors are constantly interacting with biodiesel companies, regulators, users, engine and vehicle companies, and distributors to better understand the needs and priorities of the industry.

“There are a number of ways NBB staff gather input beyond just our day-to-day interactions with members and industry stakeholders,” said Doug Whitehead, NBB director of operations and membership. “The development of our program plan is a multistep process that includes members all along the way.”

Members provide their input on industry priorities through a number of avenues including the Biodiesel Technical Workshop, the fall NBB membership meeting, NBB standing committee discussions including the regulatory, trade, technical, and marketing committees, and an extensive online survey.

All of this input comes together and defines where staff will spend time and resources in fiscal year 2016, which runs from October 2015 to September 2016.

“All of this is done so that NBB as an organization is truly representing the best interests of our members,” Whitehead added. “Being able to come together, identify our strengths and weaknesses, and then go out and execute in the areas that will help us the most is one of the biggest advantages we have as an industry.”

NBB welcomes new members Synergy Biofuels LLC—Pennington Gap, Virginia Greener Planet Systems—Monroe, Iowa

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Bridgeport Biodiesel LLC—Bronx, New York Solazyme Inc.—South San Francisco, California

insideNBB

Voters give a strong ‘yes!’ to biodiesel policy The biodiesel industry’s two major policy priorities have the support of American voters, according to a nationwide survey commissioned by the National Biodiesel Board in November. Three out of four voters (75 percent) support a tax incentive for biodiesel, the survey found. Seventy-six percent said they support a national renewable fuel standard.

“These numbers reflect overwhelming public support for developing cleaner, alternative fuels so that we’re not so dangerously dependent on petroleum,” said Anne Steckel, NBB’s vice president of federal affairs. “These policies are popular because they are effective. We’re gradually reducing our dependence on oil. We’re reducing harmful and costly pollution. And we’re creating jobs and economic activity at home.

Congress and the Obama administration should take cues from the people who elected them and step up to make sure we have strong, stable policies supporting biodiesel production.”

NBB annually surveys consumers and voters to track public opinion of biodiesel to help quantify public outreach efforts. Among other findings in the survey: • 85 percent of respondents said a candidate’s position on energy issues was somewhat important or very important in their voting decision.

• 78 percent said a candidate’s position on alternative fuels was very important or somewhat important.

• 81 percent said they would use biodiesel if they could.

• 83 percent said they would support products or services that use biodiesel in their businesses.

• 65 percent classified biodiesel as an advanced biofuel that can help replace fossil fuels.

Voters showed resounding support for biodiesel policies including the RFS and federal biodiesel tax incentive as tools to increase the use of biodiesel in the U.S.

• 82 percent had heard of biodiesel, compared to just 27 percent in June 2004 when NBB began surveying the general public.

The survey of nearly 1,200 registered U.S. voters was conducted

by Moore Information Opinion Research between Sept. 30 and Oct. 2.

NBB: Your membership organization The National Biodiesel Board is the national trade association representing America’s first advanced biofuel. NBB works to create sustainable biodiesel industry growth through governmental affairs, education, communication, technical and quality assurance programs.

Serving as the coordinating body for research and development in the U.S., the organization is comprised of state, national and international feedstock and feedstock processor organizations, biodiesel producers, fuel marketers and distributors, and technology providers.

NBB membership has grown significantly over the years from its start with seven members in 1992 to more than 200 member companies today. These companies vary from Fortune 100 companies to small, family-owned businesses. This diverse membership base has provided a strong foundation for growth with member companies representing nearly all 50 states.

No matter what your involvement with the industry is, NBB has a lot to offer. To find out how to become a member visit nbb.org/ join-us.

NBB Mission Statement: Representing America’s first advanced biofuel, the National Biodiesel Board will advance the interests of its members by cre-

ating sustainable biodiesel industry growth. NBB serves as the U.S. biodiesel industry’s central coordinating entity and will be the single voice for its diverse membership base. Industry success will be achieved through governmental affairs, communications, market development, technical and quality assurance programs. We are dedicated to inclusiveness and integrity.

For membership information, please contact: Doug Whitehead Director of Operations and Membership dwhitehead@biodiesel.org 800-841-5849

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BusinessBriefs

Companies, Organizations & People in the News

equivalent methyl fatty esters. The reaction takes place in the presence of a proprietary solid catalyst.

The team at Johnson Matthey Davy Technologies was recognized at the annual Institution of Chemical Engineers (IChemE) Awards in November by winning the IChemE Sustainable Technology Award for its development of a reactive distillation process for biodiesel production.

The technology is geared toward converting low-quality feedstocks into market-ready biodiesel efficiently and economically. The process begins with conventional oil hydrolysis to produce fatty acids plus a clean water/glycerol stream. The molten fatty acid then passes to the esterification reaction column. The preheated liquid fatty acids feed to the top of the esterification reaction column, in which they react with methanol vapor to form their

Plymouth, Utah-based Washakie Renewable Energy is doubling its biodiesel production capacity from 20 MMgy to 40 MMgy, according to plant manager Brian Starr. The expansion project started in late November and is scheduled for completion in January. Production at the plant has been down while additional reactors, settling capacity and a water-wash column are being installed. In two to three months, the plant will also have a new distillation column in place.

Starr says the expansion project at Washakie Renewable Energy is being done in-house.

The company received $16,543 from the USDA’s Advanced Biofuel Payment Program, which it is using to help pay for the expansion. “Every little bit helps,� Starr says.

Hawaiian Electric and Pacific Biodiesel Technologies have signed a contract for the Maui-based biofuel company to sup-

ply biodiesel processed from waste cooking oil and other local feedstocks, primarily for use at the 110-megawatt Campbell Industrial Park generation facility with the capability for use at other Oahu power plants as needed.

The two-year contract for a minimum of 2 MMgy and up to 3 MMgy will go into effect in November, subject to review and approval by the Hawaii Public Utilities Commission.

The Campbell Industrial Park plant now uses biodiesel processed from waste fats and oils

by Iowa-based Renewable Energy Group Inc. under a contract that will end this November.

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BUSINESSBRIEFS Sponsored by trio to recover more than 99 percent of excess methanol mixed in with the glycerin that’s produced when making biodiesel. The equipment also removes and recovers excess methanol from biodiesel. The company states that after the methanol is recovered at 98 percent purity from the glycerin, the equipment ejects a quickly cooling block of glycerin soap. The equipment is operated from a touchscreen pad mounted on the side of a shared condenser (the MC12) and is universally compatible with any biodiesel processing equipment.

Sprague Operating Resources LLC has signed a definitive agreement to purchase the assets of Castle Oil Corp., including Castle’s Port Morris terminal and the company’s associated wholesale, commercial and retail fuel distribution business for a combined $56 million in cash and stock, plus payments for Castle’s inventory as of closing. Castle’s Port Morris terminal is the largest deepwater petroleum products terminal in New York City, with a total storage capacity of 907,000 barrels, handling distillates, residual fuel, asphalt and

biodiesel. The terminal includes an interconnected tank system enabling on-site blending and is located on the East River with deepwater marine access on multiple ship and barge berths. The acquisition was expected to close before the end of 2014.

Missouri Secretary of State Jason Kander issued a cease and desist order Nov. 7 against Boyd A. Ware of Centralia, Missouri, and his company, Central Missouri Energy LLC. According to the order, Ware

and Central Missouri Energy offered and sold securities without being registered with Kander’s office, deceived investors with phony information and scammed Missourians out of nearly $200,000. An investigation by Kander’s office revealed that Ware founded CME in 2006 for the purpose of operating a biodiesel plant in Fulton, Missouri. The order alleges CME began offering investments in an initial offering around August 2006 for a minimum investment of $25,000. Investors were told the funds would be used to construct a biodiesel facility and meet the working capital needs of the plant. The biodiesel facility was never built after more than seven years. Investment money helped fund trips to Mexico, a large payment to an associate’s ex-wife, and another company owned by Ware.

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.

PROFILE

REFUELING A VISION: Buster Halterman nears the end of a long road to bring his mission of reclaiming, recycling and refueling full circle by soon operating his own 5 MMgy biodiesel plant in San Diego featuring cutting-edge enzymatic process technology.

PHOTO: JAMES WALL

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PROFILE

Realizing the Vision to Reclaim, Recycle, Refuel The CEO of Buster Biofuels is on the cusp of fulfilling his mission in cutting-edge ways

BY RON KOTRBA

Like so many in this industry, Buster Biofuels CEO Weldon “Buster” Halterman’s entrance into the commercial biodiesel world was fueled by frustration and passion. The frustration

arose from his homebrewing experiences. His passion stemmed from a deep-rooted desire to tread lightly on this planet by reducing emissions—and empowering others to do the same.

“This all started when I became frustrated with making my own fuel,” Halterman says. “It was time-consuming and surely not saving me money, but I was passionate about it and wanted to continue using biodiesel. Stopping my 50-gallon batches would mean that I’d have to stop refueling my vehicles since there was only one station—Pearson Fuels—in San Diego selling biodiesel. This was too far away.”

Meanwhile, Halterman, a former professional skateboarder who held full-time positions in various corporate management and consulting roles, reached out to the market and spoke to friends, everyday consumers, companies and organizations such as the San Diego Padres and Legoland that care about the environment and product choices available. They all loved the idea of biodiesel but wondered, “Where can I get it?”

“Through my desire to make biodiesel more available to companies and consumers, Buster Biofuels was born,” Halterman says.

Since late 2009, Buster Biofuels has been growing its feedstock collection base in the San Diego area with the mission to reclaim, recycle and refuel. “Since we were handicapped and unable to make biodiesel at a facility of our own, we chose to launch a pilot program to prove our ability to fulfill our mission,” Halterman tells Biodiesel Magazine. The company outsourced production to a few biodiesel plants, which enabled it to deliver fuel in limited volumes to select, local entities such as the Padres, Legoland California and San Dieguito Union High School District. “We figured it wasn’t going to make us any money at the time, but it was about showing both ourselves and our alliances that it was possible and within our means, no matter what adversity stood in front of us,” he says. “It definitely boosted company morale at a time when our in-house plant was not in the foreseeable future.” He says, in the end, it was fun creating marketing videos with key companies and individuals who believed in Buster Biofuels’ entrepreneurial spirit.

Today Buster Biofuels’ feedstock collection has spread to Los Angeles, and the company is nearing the end of a construction project that will establish the first enzymatic biodiesel production facility on the West Coast. Construction officially began in October 2013 when Buster Biofuels broke ground for the concrete foundation on which its “tank jungle” was built. “I call it a tank jungle because real estate 2015 EDITION

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PROFILE

EXPANDED BASE: Buster Biofuels has been growing its feedstock collection base in San Diego for years, but the company recently expanded collection services to the Los Angeles area.

PHOTO: JAMES WALL

was extremely tight and our tanks are tall and skinny,” Halterman says. Nearly two years before a shovel was put in the ground though, Halterman had selected Tactical Fabrication to build his plant.

Tactical Decision

“At the time we were contacted, Buster had already completed the site selection and

was working on his infrastructure and other permitting,” says Franklin “Frankie” Mathis, owner and CEO of Tactical Fabrication.

“Our scope was limited to the process vessels involving methanol recovery, glycerin separation and similar processes. We began designing Buster’s facility as a traditional project.”

During this period, Tactical Fabrication had also begun working with Stuart, Florida-based

Viesel Fuel LLC, a biodiesel producer seeking early entry into enzymatic biodiesel production partnering with Danish enzyme maker Novozymes.

Tactical Fabrication entered the biodiesel space in 2005 as a result of Hurricane Katrina. The two principals, Franklin and his son Garrett, were given the responsibility to ensure regular fuel supplies for a contractor who was providing demolition and emergency infrastructure repair in Louisiana. Petroleum fuels were hard to obtain and deliveries were irregular. To help solve this problem, the two partnered with a small biodiesel producer outside of the destruction zone and quickly learned how to improve the efficiency and quality of the biodiesel, increasing production to a level that could meet the needs of the contractor. “In a matter of weeks we had converted a 6,000-gallon-per-week plant into a nearly 10,000-gallon-per-day plant,” Mathis says. “That experience, together with the need for renewable and sustainable energy supplies, led Tactical Fabrication to focus on biodiesel from that point forward.”

Tactical Fabrication began by providing maintenance and support to its biodiesel clients, but as its experience became more varied and its knowledge increased, the company began constructing, fabricating and assem-

bling vessels and expanding existing plants.

“Tactical Fabrication has now grown to a point where we have the ability to fabricate and erect entire biodiesel plants,” Mathis says.

“Further, all vessels we construct or plants we build can be fully automated.” Tactical Fabrication has provided its services to biodiesel clients in the U.S., Europe and South America, including Patriot Biodiesel, Triangle Biofuels Industries, Coastal Biofuels Inc., Synergy Biofuels, Mother Earth Energy Inc. and EBM Technologies, to name a few.

Halterman says at the end of 2011, Tactical Fabrication brought to his attention Viesel Fuel and its progressive direction with an enzymatic process. “Our original equipment and design has always kept enzymatic in mind in hopes that we could incorporate it, if and when the process seemed commercially ready,” Halterman says, adding that lines of communication were kept open between Viesel Fuel, Tactical Fabrication and his team. This meant project updates from both sides and multiple site visits. “Eventually, it just made sense for us all to commit to each other and the enzymatic process on the West Coast,” he says. Mathis adds, “The enzymatic process being developed by Viesel is so cutting-edge and state-of-the-art that we redesigned Buster’s facility to be enzymatic.”

PACKAGE DEAL: Tactical Fabrication builds biodiesel processing skids at its manufacturing facility in Georgia and then ships them to the customer. In Buster Biofuels' case, they are sent across the country to San Diego, where the company installs and commissions the units.

PHOTO: TACTICAL FABRICATION LLC

Mathis says, after years of experimentation and testing with Novozymes, Viesel Fuel and with the assistance of Purolite Corp., “We were able to improve the enzymatic process using a proprietary resin whereby no caustics are used and the FFA are converted to biodiesel with a minimum of losses. There is no

question in our minds that this is the cuttingedge technology for the manufacture of biodiesel.”

In December, Novozymes announced it is making its Eversa enzymatic solution commercially available to the industry after years of working with select plants to prove out

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PROFILE the technology. “Viesel actually developed the final version of the enzymatic process using the Eversa enzymes,” says Stu Lamb, CEO of Viesel Fuel. “We have been working almost exclusively with Novozymes to perfect this process,” on which Lamb says Viesel has a patent pending.

Feedstock quality has long been an issue in biodiesel production. Tactical Fabrication developed a mechanical pretreatment process to make low-quality feedstock suitable for the enzymatic process. Water and high free fatty acid (FFA) content are not problems for enzymatic processing as they are for base chemical catalysis. Mathis says Tactical Fabrication

has also developed a mechanical treatment for sulfur removal so even feedstock high in sulfur, such as brown grease, can be used in the enzymatic process.

“Since most of the other elements of a traditional biodiesel plant are similar to an enzymatic plant, we can install this new process in existing facilities relatively seamlessly,” Mathis says. “Upon conversion, the enzymatic process runs at an operating temperature of approximately 95 degrees Fahrenheit, which is a fraction of the energy requirements of a traditional plant. Further, there are no high pressure operations as most of the enzymatic processes function at atmospheric pressure

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INSTRUMENTAL MEMBER: With the company since its early days, Max Minahan, production manager at Buster Biofuels, has been instrumental in the company's progress, Halterman says.

PHOTO: JAMES WALL

with no special tank or mixing requirements.

The downstream polishing process is very traditional in requiring methanol recovery, glycerin separation, and ion exchange, which all traditional plants do now.”

Lamb says the capital costs for equipment using the enzymes are far less than conventional plants, but the operating costs are about the same. “The real savings is being able to use cheaper, high-FFA feedstocks such a brown grease, fish oil and more,” Lamb says.

“In many cases, these feedstocks are $1 per gallon cheaper than conventional feedstocks such as used cooking oil or soybean oil. And the return on investment is remarkable.”

Tactical Fabrication built its functioning skids in Georgia and transported them to San Diego for installation and commissioning at Buster Biofuels. “These skids make it possible to plug into a traditional facility, install the enzymatic process or otherwise expand a facility, and then dramatically increase production,” Mathis says.

While Viesel Fuel spin-off company Viesel Skunk Works LLC and Tactical Fabrication have recently developed a continuous flow enzymatic process (see “Biodiesel Technology News & Reviews” on page 22), Buster Biofuels is utilizing a modified batch approach.

PROFILE In addition to Tactical Fabrication, Buster Biofuels is using equipment from vendors including Eaton, Parker Boiler, Autrol and Central Valley Tank. Mathis says beyond Novozymes, Viesel Fuel and Purolite, his other partners include Industrial South for automation and attorney James M. Vernon for legal support. The principals of Tactical Fabrication are also involved and have an ownership interest with Vernon in the Florida-based engineering firm Renewable Fuel Consultants and Engineers Inc., which provides full site and process engineering services.

Staying True

Buster Biofuels will be the first commercial-scale facility to use the Viesel Enzymatic Process, and the first enzymatic plant on the West Coast. Lamb says while Buster Biofuels is the first plant installing its process, it’s not the only one. “We are working on a 20 MMgy project in Boston as well as a 10 MMgy plant in Indiana,” he says. When asked why Buster Biofuels ultimately decided to go enzymatic, Halterman says, “Our engineers and the Buster Biofuels team were continually challenged by traditional esterification. My partner Brian Sachau and I wanted to get on board with a more advanced process instead of traditional esterification and transesterification.

We detested the thought of using sulfuric acid—from a safety and environmental perspective—and being selective in our feedstock purchasing due to FFA restrictions. I would say these two things were driving forces that helped us make the decision.”

To help make Buster Biofuels’ vision of operating a cutting-edge plant in San Diego a reality, the company received a $2.64 million grant from the California Energy Commission in 2013 to help construct its 5 MMgy facility. “Since we were self-funded to date, the CEC grant enabled us to pull the trigger on construction and surely gave our private investors and owners more confidence in Buster Biofuels’ vertically integrated model,” Halterman says.

The road Halterman has taken from his days of homebrewing and gauging the market years ago to nearly completing his advanced biodiesel processing facility has been a long one. “We have been growing with this foundation and desire as best we can at what seems to be a snail’s pace as we bounce with the political and regulatory punches,” he says.

“Our mission is ‘Reclaim, Recycle, Refuel.’

This mission, or vision, gives us purpose on a daily basis.”

The most important lessons Halterman and Sachau have learned about building a biodiesel plant are patience and perseverance.

“This is one of the most challenging things that my partner and I have ever taken on,” Halterman says. “I, personally, have learned that staying true to what you believe in is the best policy. In other words, keep the eyes on the prize. Sadly, and unfortunately, in the past five years—more than ever—I’ve learned that most businesses and most people think first and foremost about the mighty dollar instead

of doing the right thing. It seems obvious that most are driven by money, right? However, it is a whole new level running a ‘green’ business that often requires educating and recruiting support from the mainstream. It is crazy how many people just don’t care about the environment or doing the right thing. I’m sorry, but doing the right thing is rarely cheaper— and I can almost guarantee it won’t be convenient.”

Author: Ron Kotrba Editor, Biodiesel Magazine 218-745-8347 rkotrba@bbiinternational.com

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TECHNOLOGY

OPTIMIZATION LEADER: Austria-based BDI-BioEnergy International AG has been contracted to optimize several plants in the U.S. and abroad under its RetroFit program to expand feedstock choices while increasing yields and expanding capacity. Pictured here is EcoMotion Franceâ&#x20AC;&#x2122;s 22.5 MMgy multifeedstock plant designed and built by BDI, in Le Havre, France.

PHOTO: BDI-BIOENERGY INTERNATIONAL AG

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TECHNOLOGY

Ever-Evolving Biodiesel Technology Developments Unique processes and new approaches keep production diverse and fluid

BY RON KOTRBA

The biodiesel technology spectrum is vast and diverse, ranging from new techniques demonstrated in the lab to optimization efforts proven industrially. Even so-called conventional chemical processing is riddled with original approaches and unique twists. A cookie-cutter industry biodiesel is not. While too many technologies exist in this field to report on, Biodiesel Magazine offers an overview of several emerging biodiesel process developments or existing optimization techniques that have made headlines and headway recently— some more developed and commercially tested than others.

A unique microwave process to convert used cooking oil (UCO) and other tested feedstock to biodiesel with methanol and a solid catalyst, strontium oxide (SrO), is being developed by Jiunn-Der Liao, professor, and faculty of National Cheng Kung University, Taiwan. Aharon Gedanken, professor emeritus of chemistry, Bar-Ilan University in Ramat-Gan, Israel, invited by Liao, is cooperating with NCKU faculty in conducting the research and scaling up the process. Liao says with Gedanken’s help, NCKU is setting up a converting station at its An-nan campus. “Our goal is to introduce the station to companies in Taiwan or abroad that are in the bioenergy business,” Liao says, adding that they have received inquiries from Thailand, Malaysia and at least three Taiwanese enterprises. The three-year project began in August 2013. With the system designed by the NCKU team, a machine has been built by a company in Taiwan. “The machine is made in Taiwan and working very well, comparing it with similar ones I have at home,” Gedanken says.

Thus far, the lab-based process yields 3 liters per hour, and the only cleanup performed on the UCO is removal of large contaminants. “The reaction is very fast and full conversion is finished in 10 seconds,” Gedanken says. “The role of the microwave oven is not only heating. Microwave radiation affects also the transition state of the reaction, and lowers the activation energy. Therefore, the reaction is much faster.”

Gedanken says they are using SrO for catalysis because they sought a base that doesn’t dissolve and isn’t poisonous. “Potassium hydroxide is more difficult to reuse and it also produces an unwanted salt as a byproduct,” he adds.

A patent is pending in Taiwan. “We asked to protect the flow process using nanoparticles of SrO,” Gedanken tells Biodiesel Magazine. “That will guarantee a full conversion to biodiesel even at a fast flow rate.” Keeping the SrO nanoparticles in the microwave is a problem Gedanken hopes to overcome. Capital costs for a microwave oven enabling a flow system to convert 100 kilograms (roughly 29 gallons) of UCO a day would cost $60,000 to $100,000, he adds.

Methes Energies recently introduced its new biodiesel pretreatment process centered on a noncorrosive liquid catalyst it calls PP-MEC. Feedstock with up to 70 2015 EDITION

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TECHNOLOGY percent free fatty acids (FFA) and less than 0.2 percent moisture is combined with methanol and 1,000 parts per million (ppm) of PP-MEC catalyst in a high-pressure reaction vessel. The process temperatures are often less than 480 degrees Fahrenheit with pressures around 800 pounds per square inch (psi). The yield after the first step is 92 percent biodiesel, 7 percent monoglycerides, 2 percent diglycerides and glycerin with no salts or soaps. The reaction time is five to 15 minutes. After glycerin separation, 1 percent sodium methylate by weight is added for base transesterification of the remaining glycerides. For producers using distillers corn oil (DCO) feedstock from ethanol plants, the PP-MEC pretreatment process lightens the color and requires no wax removal or degumming. The separation phase following pretreatment is easy because PP-MEC does not create an emulsion layer. The company says its new pretreatment process can save biodiesel producers 8 to 10 percent on overall catalyst costs. Dorf Ketal Speciality Catalysts LLC is the manufacturer of PP-MEC catalyst.

“There’s been a lot of interest, but the challenge with this new technology is we don’t have a pilot conversion plant running yet,” says

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Nicholas Ng, president and co-founder of Methes Energies. “We can show the process on lab scale, but people want to make sure it works on a higher volume.” Ng says his company is working with a plant to prove out the process on a commercial scale. Hardware is on track for installation early this year.

The PP-MEC process originally revealed utilizes high pressure and high heat. Since then, Methes has developed a low-pressure, highheat version tailored for FFA esterification and removal of waxes and color from DCO. “This may have good applications for DCO producers who don’t have the money to invest in a full biodiesel plant,” Ng says. The low-pressure, high-heat process will improve DCO quality while making small amounts of biodiesel from FFA. The low-pressure process operates at 240 psi instead of 800 psi, and capital costs to process 1.3 MMgy of DCO would be around $500,000, Ng says—three times less than the high-pressure version.

In November, Johnson Matthey Davy Technologies was recognized at the annual Institution of Chemical Engineers (IChemE) Awards by winning the IChemE Sustainable Technology Award for its development

2015 EDITION

of a reactive distillation process for biodiesel production. The technology is geared toward converting low-quality feedstocks to biodiesel efficiently and economically.

The reactive distillation process begins with conventional oil hydrolysis to produce fatty acids plus a clean water/glycerol stream.

“The molten fatty acid then passes to the esterification reaction column,” the company states.

“The preheated liquid fatty acids feed to the top of the esterification reaction column, in which they react with methanol vapor to form their equivalent methyl fatty esters. The reaction proceeds in the presence of a proprietary solid catalyst, achieving complete conversion to the methyl ester product. The water produced in the esterification reaction is stripped out of the methyl esters by excess methanol.” Following this is methanol recovery and biodiesel purification. Michael Winter, technology manager at Johnson Matthey Davy Technologies, says the technology is a valuable, attractive and sustainable option for its customers, “and being recognized in this way is a great achievement for everyone involved.”

Enzymes

Perhaps the most promising new technology being deployed commercially today is enzymatic production. While Biodiesel Magazine has covered enzymatic production quite extensively over the past several years—from inception by pioneers such as Novozymes and Piedmont Biofuels, to the technical descriptions of how the process works—several business and technical developments have been made in the past year.

Early last year, Blue Sun Biodiesel in St. Joseph, Missouri, and Viesel Fuel LLC in Stuart, Florida, announced the full-scale production of enzymatic biodiesel in partnership with Novozymes. The enzyme maker has also worked with WB Services LLC on the Illinois-based biodiesel project co-located with Adkins Energy’s ethanol plant, featuring enzymatic and chemical processing. Adkins Energy began biodiesel production last fall and is recognized as the first producing biodiesel plant co-located with an ethanol refinery. Novozymes is also working with Buster Biofuels in San Diego.

Even though Novozymes had been making headlines with a few select producers, the process wasn’t considered market-ready—until now.

In December, Novozymes announced it is making its Eversa enzymatic biodiesel solution commercially available. “The idea of enzymatic biodiesel is not new, but the costs involved have been too high for commercial viability,” says Frederik Mejlby, marketing director for Novozymes’ grain processing division. “Eversa

TECHNOLOGY Novozymes Eversa®

Methanol

Biodiesel Enzymes

Feedstock Water Oil Pretreatment

Polishing

Separation of crude FAME after reaction

changes this and enables biodiesel producers to finally work with waste oils and enjoy feedstock flexibility to avoid the pinch of volatile pricing.”

Global biodiesel plant builder Desmet Ballestra says enzymatic processing will prove popular with biodiesel producers. “The enzymatic process is simple and does not need much pretreatment,” says Marc Kellens, group technical director at Desmet Ballestra. “It is the best alternative for modifying existing plants to enable them to incorporate difficult-to-convert oils. In conventional plants, 80 to 85 percent of the costs of biodiesel are linked to feedstock cost. So the more you are able to convert a cheaper feedstock into biodiesel, the more profitable the business is. The enzymatic process makes it possible to convert waste oils into biodiesel with relatively low capital expenditure by retrofitting a plant.”

Kellens says he believes the enzymatic process is a more direct and less complicated one, and will initially be used as an add-on to the existing biodiesel market to make use of cheaper waste oils. “A small number of plants has been producing biodiesel from waste oils using existing technologies,” Mejlby adds.

“But this has not been cost-efficient until now, broadly speaking, as the waste oils have had to be refined before being processed using chemicals.” The enzymatic process eliminates the need for sodium methoxide.

Biodiesel production using liquid enzymes has, thus far, involved batch reactions.

Progress has been made recently, however, in continuous flow enzymatic production. In collaboration with Tactical Fabrication of Dublin, Georgia, and Novozymes of Denmark, a novel biodiesel production technology developed by Viesel Skunk Works LLC will soon be offered commercially. The system features a continuous flow enzymatic reaction process that also eliminates sulfur from biodiesel when low-grade feedstocks such as brown grease are used.

The patent-pending technology by VSW is a design of several continuously stirred tank reactors (CSTRs). It provides for a complete reaction with the potential of using fewer enzymes than in single-step batch systems, according to VSW. The simpler design contains several CSTRs and skid-mounted injection pumps, according to Brent Chrabas, Viesel Fuel quality engineer. Each CSTR can be easily switched to batch operation mode in the case of accidental interruption of continuous mode. Intensive caustic washing in the current enzymatic process for FFA removal is overcome by using resin columns to convert FFA to esters. Chrabas says the continuous process is stable and five times faster than conventional batch pro-

Pretreated Oil

Flash Dryer

Heavy phase

Enzyme Reactor

MARKET-READY: Shown above is a schematic of Novozymes' Eversa enzymatic process for biodiesel production, which the company announced in December is available commercially.

PHOTO: NOVOZYMES

cessing. The company says capital costs for its continuous flow system with single-use liquid enzymes will be lower than batch.

The Novozymes process is based around liquid enzymes, but immobilized enzymes—

those fixed to resins—by companies such as Advanced Enzymes Technologies Ltd. and TransBiodiesel Ltd. have also been making market headway. Biodiesel Experts International LLC has built and shipped several

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TECHNOLOGY

IN-PLAY: The UPR 1000S model of ultrasonic biodiesel reactors manufactured by Ultrasonic Power Corp. can achieve single-pass conversions greater than 99 percent.

PHOTO: ULTRASONIC POWER CORP.

small-scale, skid-mounted enzymatic units to points across the globe—from Dallas to Hong Kong—featuring Advanced Enzymes’ immobilized enzymes. Advanced Enzymes began in India more than 50 years ago and is the largest enzyme producer in Central Asia. BEI had formerly partnered with Israel-based TransBiodiesel.

A joint venture partnership was recently announced between TransBiodiesel and Virginia-based project Appalachian Biofuels LLC for production using immobilized enzymes.

“Initially we both are going to invest $3.5 million for plant construction,” Ahmed Tafesh, chief technology officer for TransBiodiesel, tells Biodiesel Magazine. “The plant will be built on modular basis starting from 9 MMgy of production capacity and within 12 months reach 28 MMgy of biodiesel. This is why the investment is relatively low at the beginning.

Both companies will be sharing expenses such as feedstocks, chemicals, immobilized enzymes and working capital.”

Which enzyme approach—liquid or immobilized—is better depends on who is asked.

The differences, according to Ernie DeMartino, BEI president, are: liquid enzymes can be dif-

ficult to separate from glycerin and experience some loss, while reaction time can take 20 to 24 hours, and liquid enzymes require refrigeration.

Immobilized enzymes, DeMartino says, allow for continuous production as they require no separation, don’t incur loss, reaction time in a stirred reactor is only four hours and they can be stored at 70 degrees Fahrenheit. VSW’s new process now allows for continuous production too, however, as noted. Finally, DeMartino says liquid enzymes cannot be recovered from highFFA material whereas immobilized enzymes require no recovery since they are fixed to a carrier and held in stirred reactors.

Stu Lamb, president and CEO of Viesel Fuel LLC, gives several reasons why his companies chose liquid versus immobilized enzymes.

“The manufacturer could never guarantee the life of the enzymes, or the total gallons that the enzymes would react,” he says. “Also, there is an extremely high initial cost for the enzyme package. If this package is damaged in any way during initial startup, the entire package of enzymes needs to be replaced at considerable cost and the plant is inactive awaiting replacement.”

He adds, “The manufacturer is foreign-based and, therefore, any disputes for enzyme performance would be adjudicated abroad and not in U.S. courts. Also, there is no U.S.-based enzyme replacement in inventory.”

Proven Optimizations

One proven biodiesel process optimization technology is the use of ultrasonics to vastly increase surface area for quicker reactions. Steven Myers, vice president of engineering for Ultrasonic Power Corp., says UPC’s reactors are based on its patented Vibra-bar transducer technology. “These transducers are directly bonded to the radiating surface providing long ultrasonic exposure times compared to the systems that are based on sonicator-type designs,” he says. “This also provides opportunities for higher flow rates. Our reactors are also designed and manufactured in our facility in Freeport, Illinois. We have been providing this technology for more than 40 years and are well-respected in this industry.”

Myers says one of UPC’s recent customers reports single-pass conversions greater than 99 percent with the UPR 1000S model.

A few systems in place using UPC’s ultrasonics include Solvent Systems Inc. and Mid-South Technical College. Myers says UPC’s ultrasonic systems are easy to install and maintain, and since they are made in the U.S., support is easily attainable.

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TECHNOLOGY “Our technology team is talented and ready to match our technology with applications that have yet to be discovered or developed,” Myers says. “We are flexible enough to be able to work with experts in other fields to come up with solutions that could revolutionize the industry.”

Myers says there are closely held secrets in biodiesel production regarding employment of ultrasonics in existing designs. “Most customers will only provide basic end results so it is difficult provide information to other customers to help them succeed,” he says. “I believe the industry is prime for someone to step up and standardize a process or machine that would revolutionize the industry. I believe there are investors and entrepreneurs that are waiting for this to happen. I talk to them weekly.”

Austria-based BDI-BioEnergy International AG is a market leader in biodiesel process technology, in addition to retrofit and optimization plays. The company has retrofitted and optimized biodiesel refineries across the world, including projects for the largest U.S. biodiesel producer, Renewable Energy Group Inc. BDI’s most recent U.S. optimization project is Crimson Renewable Energy LP. BDI is often contracted to expand a plant’s feedstock choices and increase capacity, yield and product quality. The company’s RetroFit program incorporates various units, according to Hermann Stockinger, vice president of global sales, including its FAT Pretreatment unit, which utilizes a Flottweg centrifuge for feedstock preparation and cleaning; Advanced Esterification for feedstock with up to 70 percent FFA; the catalyst-free High FFA Esterification process for feedstock with up to 99 percent FFA; and the ECO or High-end Distillation options, with the latter being a multistage process developed for difficult waste materials such as low-quality tallow or trap grease, with a focus on sulfur reduction and achieving the highest yield possible. Several years ago BDI also developed its RepCat process for poor-quality feedstock, which is a reusable catalyst system that leaves no catalyst residues in the product, Stockinger says, adding that RepCat provides simplification of product purification, requires less production costs and produces a higher-quality end product and salt-free, technical-grade glycerin.

“The range of services included in the BDI RetroFit program comprises all the steps that are required to successfully optimize an existing biodiesel plant,” Stockinger says. This includes status evaluation, pre-engineering, offer preparation, authorization procedure, engineering and delivery, implementation, commissioning and, finally, after-sale service. In addition to Flottweg, some of BDI’s other equipment partners include Westfalia (centrifuges), Endress & Hauser for instruments, AlfaLaval and Tranter for heat exchangers, and UIC Germany—BDI’s daughter company—for distillation and vacuum systems.

Stockinger has his own opinions on new technologies in the space.

“For customers, it will be extremely risky to be the guinea pig when investing in new technologies with seeing this technology working only on a lab scale,” he says. “Our investigations have shown that other, so-called new and innovative technologies are not applicable to process stability and efficiency when dealing with low-quality feedstock in industrial scales.”

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PROCESS CONTRIBUTION

FORTUITOUS POSITIONING: Greenleaf Biofuels is co-located in Connecticut’s New Haven Terminal, a facility with trimodal transportation infrastructure and situated in the largest tank farm between New York and Boston.

PHOTO: GREENLEAF BIOFUELS LLC

Continual Improvements to Continuous Flow Production How Connecticut-based Greenleaf Biofuels keeps enhancing its process

BY MING CHAI AND GUS KELLOGG

As most biodiesel start-ups will find, the relatively simple academic theory of converting triglycerides into alkyl esters is not so simple in the real world. Add into the mix a continuous

flow process technology and what once seemed simple is now proving difficult. Top that off with the need to convert free fatty acids (FFA) into alkyl esters just to make

your plant viable in this market, and things get downright complicated.

Greenleaf Biofuels LLC was formed in 2004 with the intention of bringing renewable energy alternatives to Americans who value preserving the natural environment and strengthening America’s energy security. The company was one of the first wholesale and retail distributors of biodiesel in New England, and is now operating a regional biodiesel manufacturing facility

in New Haven, Connecticut. The production facility is strategically located to take advantage of New England’s large heating oil market.

Greenleaf ’s production system is an integration of Greenline Industries’ 10 MMgy biodiesel production train, consisting of a two-stage transesterification (TE) dosing and reaction system, a robust vacuum system and a custom-developed, acid-catalyzed esterification (AE) reactor,

The claims and statements made in this article belong exclusively to the author(s) and do not necessarily reflect the views of Biodiesel Magazine or its advertisers. All questions pertaining to this article should be directed to the author(s).

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PROCESS

and cold-filtering/polishing and methanol distillation systems. The whole system is a continuous flow process except for the final polishing step.

The feedstock (100 percent waste oil and fats) is going through acid-catalyzed esterification and then two-stage transesterification and two-stage decanting to be fully converted into methyl esters. After drying, the crude biodiesel is polished by a filter press to remove various impurities to meet ASTM specifications, including more stringent cold soak filterability test that many plants struggle with. Glycerin is separated from the methyl esters in two decanters, one after the first TE reactor and another after the second TE reactor. The glycerin then passes through one-stage drying and is stored as coproduct. The volatiles from the process are removed by various vacuum dryers, which eventually feed into a distillation column. Methanol is recovered, purified and reused as a reactant, while water is recycled back to the second-stage decanter to aid separating impurities from the incoming biodiesel stream. The whole process is designed to reuse various materials and to minimize waste generation.

The production facility at Greenleaf Biofuels was commissioned in the first quarter of 2013 and the first batch of

ASTM-grade biodiesel fuel was produced in April 2013. Since then, Greenleaf Biofuels has invested significantly in process reliability debottlenecking and has reached 100 percent designed flow rate. The plant has been operating at higher than 94 percent reliability and has used 100 percent waste oil and fats as feedstocks, including during the commissioning period.

Like a lot of new plants, Greenleaf Biofuels started seeing various and frequent process upsets after commissioning the plant. It has been proven at Greenleaf Biofuels that a small change in optimizing chemical dosing formulas could make a significant impact on fuel quality, throughput and plant economics. With our extensive educational and experiential backgrounds in biodiesel, we designed sampling and analyzing procedures across the whole production system and identified various key performance indicators to keep the production within centerline conditions, which are the most important operational control steps for a continuous flow system.

FFA is the main impurity in waste oil and fats and insufficient pretreatment of FFA represents direct yield loss, and impurity generation affects the following TE reactions. It has been used as a benchmark in the biodiesel industry that reducing FFA

to 0.5 to 1 percent after AE reaction is a very successful practice. The commonly used dosing formula for AE is step-wise.

With our innovative continuous AE dosage formula, Greenleaf Biofuels has been successfully treating various types of feedstock, including used cooking oil, animal fats, fish oil and distillers corn oil from ethanol plants, with FFA ranging from 2 to 20 percent. The average FFA after AE reaction has been controlled at lower than 0.25 percent. Part of this practical research has been published in Fuel Processing Technology, in an article titled, â&#x20AC;&#x153;Esterification Pretreatment of Free Fatty Acid in Biodiesel Production, from Laboratory to Industry.â&#x20AC;?

At Greenleaf, we have implemented the whole quality control system to monitor operating parameters as well as in-process chemistry. On a typical shift data collection sheet, the production crews collect approximately 80 operating parameters from remote or local instruments and up to 20 process quality data points from various analytical tests hourly. Every day, a group of people will review the data collection sheet with other shift production documents.

One production tank (approximately 28,000 gallons) will be internally tested and then transferred to a half-million-gallon quality assurance (QA) tank. A third-party lab will

2015 EDITION

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PROCESS CONTRIBUTION

perform a full slate of ASTM tests of this QA tank before generating a production lot. With this comprehensive quality control procedure across the whole production process, there have been no failed production lots generated since September 2013.

It is challenging to upgrade a continuous flow system because all operating units are linked to each other, and the changes to one section could potentially affect the other units operation. It requires a lot of data

to determine the root cause and identify the true bottlenecks, rather than taking temporary, stop-gap measures. The advantage of extensive data collection is to give Greenleaf the opportunity to be a data-driven decision maker.

The distillation column is one of the most important unit operations in Greenleaf. The quality of overhead distillates and bottoms are determinants of overall operating cost and separation efficiency in

DISTILLED TO BE THE BEST BIODIESEL DOCTOR: Ming Chai, Greenleafâ&#x20AC;&#x2122;s quality control manager, who earned his doctoral degree in environmental engineering from University of Cincinnati, titrates a sample taken from Greenleaf's continuous flow acid esterification reactor.

PHOTO: GREENLEAF BIOFUELS LLC

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the second stage of decanting. The management of the distillation column used to be a headache and sometimes mysterious. In Q1 2014, the distillation column was running well and supporting increasing production in cold weather; however, it caused significant production reduction in Q2 2014 when ambient temperatures rose. A round of study discovered that the condenser for methanol distillation column was significantly undersized. With the sufficient data support, an upgrade project was quickly planned and implemented, which turned into one of the best contributors to the longest continuous run in plant.

As is common in the chemical industry, a lot of good ideas come from the people working on the floor day to day, who can identify the shortcomings of the process and equipment from hands-on experience. Polishing is the only batch process in Greenleaf Biofuels and it used to give us the biggest variance. Khadim Mbaye, one of the shift supervisors, and his team have

It is challenging to upgrade a continuous flow system because all operating units are linked to each other. developed a new method to increase the average flow rate of polishing by 50 percent and consume less polishing media.

Ron Hazard, another shift supervisor, created a new procedure to manage polishing and increased polishing efficiencies across all four shifts. Greenleaf has created a company culture to encourage employees to contribute their ideas to day-to-day operations, which could be as small as installing a pressure gauge in the field or as large as significantly increasing polishing rate.

Process improvement is an ongoing course for Greenleaf Biofuels. We will keep utilizing the intelligence we have designed into plant data collection systems, and maximize the resources available to us. Greenleaf Biofuels is a 24/7 operating facility and we are proud of utilizing 100 percent waste oils and fats. We truly believe that biodiesel fuel is the drop-in solution to mitigate both energy shortage and greenhouse gas emission challenges. Greenleaf Biofuels will keep growing and aims to expand to provide high-quality biodiesel to meet the growing regional demand for biodiesel in home heating and transportation fuels, to increase regional energy security and to promote environmental responsibility.

Authors: Ming Chai, Gus Kellogg Quality Control Manager; Founder and CEO Greenleaf Biofuels 203-672-9028 ming@greenleafbiofuels.com gus@greenleafbiofuels.com

IN CHARGE: Lead Supervisor Ron Hazard runs the controls on Greenleaf's 10 MMgy fully automated, continuous flow, two-stage biodiesel process.

PHOTO: GREENLEAF BIOFUELS LLC

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2015 EDITION

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MARKET PLACE

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