July/August 2014 Biodiesel Magazine by BBI International

CONTENTS

JULY/AUGUST 2014 VOLUME 11 ISSUE 4

DISTRIBUTION

PROFILE

US Biodiesel Supply Kings

A Biodiesel Family Affair

Suppliers share their views on the U.S. biodiesel distribution complex

BY RON KOTRBA

Midlands Biofuels’ owners discuss reorganization, improvements and the market

BY RON KOTRBA

CONTRIBUTION 32 INFRASTRUCTURE

Building the New Energy Economy

Akash Energy and Root Fuel work to change America’s fueling experience

32 Advertiser Index 36 2014 National Advanced Biofuels Conference & Expo 35 2015 International Biomass Conference & Expo 12 ALX Enterprises LLC 22 AMERIgreen Energy 2 BBI Project Development 8 Biodiesel Plant Map 24 Crown Iron Works Company 25 EcoEngineers 29 Gorman-Rupp Pumps 18 HERO BX 11 Iowa Central Fuel Testing Lab 9 Louis Dreyfus 19 Methes Energies 5 & 28 NBB National Biodiesel Board 13 Targray 30 Webster Fuel Pumps & Valves 31 Wilks Enterprise, Inc

BY JUSTIN HELLER

DEPARTMENTS 4 Editor’s Note

Distribution Challenges

BY RON KOTRBA 6 Legal Perspectives

Tax Extenders: A Harbinger For Tax Reform?

BY MARK M. PALMER 7 Talking Point

Protecting Storage Tanks From the Unknown

BY PAUL NAZZARO 9 Biodiesel Events 10 FrontEnd

Biodiesel News & Trends

14 Inside NBB 18 Business Briefs

Companies, Organizations & People in the News

34 Marketplace Biodiesel Magazine: (USPS No. 023-975) July/August 2014, Vol. 11, Issue 4. 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.

JULY | AUGUST 2014

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BIODIESEL MAGAZINE

EDITOR'S NOTE

DISTRIBUTION CHALLENGES Ron Kotrba

www.BiodieselMagazine.com

Editor Biodiesel Magazine rkotrba@bbiinternational.com

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 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

Chairman mbryan@bbiinternational.com CEO jbryan@bbiinternational.com

Matthew Spoor

Vice President, Operations mspoor@bbiinternational.com

John Nelson

Marketing Director jnelson@bbiinternational.com

Howard Brockhouse

Business Development Director hbrockhouse@bbiinternational.com

Chip Shereck

Senior Account Manager cshereck@bbiinternational.com

Jessica Beaudry

Circulation Manager jbeaudry@bbiinternational.com

Marla DeFoe

Traffic & Marketing Coordinator mdefoe@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. 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 email to rkotrba@bbiinternational.com.

Please recycle this magazine and remove inserts or samples before recycling TM

BIODIESEL MAGAZINE

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JULY | AUGUST 2014

While major improvements have been made to physical movement, storage and availability of biodiesel over the past several years, there seems no escaping the risk unstable government policies poses to future investment. I would like to thank Steven J. Levy, managing director of Sprague Operating Resources LLC and chairman of the National Biodiesel Board, for sharing his personal thoughts with me on the state of the U.S. biodiesel distribution system as a whole, specifically on improvements, challenges and opportunities. Come to find out, not only is it difficult to make biodiesel more available at a lower price through “the system,” but it’s also tricky to write about. And much easier said than done is getting big companies—such as the largest U.S. producing company that manages a sizable distribution business, major pipeline and terminal operators, and others—to talk about it on the record. For example, one executive for a small company that ended up not participating in a featured article on this subject gave me the number to an attorney, to get it cleared through his legal department before speaking with me. That is fine, except the attorney never returned my voicemails. It is clear there is a level of discomfort associated with exposing weaknesses in a system, placing blame for those weaknesses, and then having to play nice in the sandbox with those you blame. For a professional in this business to throw petroleum companies who block growth but through whom biodiesel can be supplied, or OEMs that ultimately support increased use, or terminal operators that do not pass the savings along to the distributor and consumer, under the bus, or call ASTM processes cumbersome or inhibitory when it’s clear they have done so much good for quality and acceptance, this would not serve anyone well. I can appreciate taking the high road on this. I would like to give a special thanks to the people and companies that participated in our distribution-themed issue, including Sprague, Amerigreen and Targray executives for our featured article on page 20, “US Biodiesel Supply Kings.” NBB petroleum liaison Paul Nazzaro gives us “Protecting Storage Tanks From the Unknown” on page 7. Justin Heller, CEO of Akash Energy in Houston, writes “Building the New Energy Economy” on page 32. Considering how future investment is affected by policy uncertainty, Mark M. Palmer, president and CEO of the Palmer Policy Group, contributes “Tax Extenders: A Harbinger for Tax Reform?” on page 6. And learn about the personal side of running a small biodiesel plant from majority-owner of Winnsboro, S.C.-based Midlands Biofuels, “Bio” Beth Renwick, and her husband and co-owner “Bio” Joe, in “A Biodiesel Family Affair” on page 26.

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LEGAL PERSPECTIVE

Tax Extenders: A Harbinger for Tax Reform? BY MARK M. PALMER

On April 3, the Senate Committee on Finance moved legislation to the full body to extend expired tax provisions (“extenders”). Included in the energy provisions section of that package was an extension of incentives for biodiesel and renewable diesel. Specifically, the bill extends for two years the $1 per gallon tax credit for biodiesel, and the small agribiodiesel producer credit of 10 cents per gallon through 2015. The bill also extends through 2015 the $1 per gallon tax credit for renewable diesel. The two-year extension is estimated to cost about $2.6 billion over the course of 10 years. Unfortunately, having nothing to do with the extenders legislation or biodiesel, the bill has been delayed over 2014 election year politics. Because of leadership on both sides of the aisle, and their unwillingness to make a deal over amendments on other legislation, the fate of this bill, while wildly popular on its merits, having achieved a 96-to-3 vote in May on a major procedural hurdle, may not make it to the president before election day. Some have suggested once the November elections pass, this legislation will make its way through both the House and Senate, and then to the president for his signature. As you can recall, this seems to be a pretty common pattern in Washington with respect to extenders. As the extenders legislation lingers in Congress, one common question by many in industry has been will Congress change the structure of the biodiesel tax credit from a blender to a producer credit? The answer to that question would seem to be no. With respect to extenders, Congress typically does not change the structure of a tax credit. They rarely address major policy changes or shifts as they currently exist for fear of opening a Pandora’s box. Generally speaking, they are clean extensions of existing statutes, only changing the date from which they expire again. However, to flip the aforementioned question on its head, perhaps the more appropriate question might be, does any of this have any meaning for the makings of tax reform? The answer may be yes,

BIODIESEL MAGAZINE

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JULY | AUGUST 2014

for a few reasons. 1. If there are going to be wholesale changes to the tax code, such as making the jump from a blender to a producer credit, tax reform would be the most logical place to make that change. 2. The Senate has a relatively new chairman of the Finance Committee, Ron Wyden, D-Ore., and he has indicated on numerous occasions he is seeking to change how tax credits are established. Providing young industries such as biodiesel with uncertainty, having to deal with extenders annually is not good for the economy, and it’s not good tax policy. 3. In the House, we can expect to see a new Ways and Means Committee chairman emerge as well. Might this hint at new ambition that may lead to a generation-changing tax code for the first time since 1986? 4. Deep into the president’s second term, ushering in a new Congress and having two new tax-writing committee chairs, can the two sides of Pennsylvania Avenue reach a deal on broader economic policy, and tax reform? If they do, the biodiesel industry and its stakeholders will most definitely have to fight to ensure there is a biodiesel tax credit going forward. Because at that time, everything will be on the table. The bottom line is the U.S. needs tax reform that not only cleans up the code, but also provides the American biodiesel industry with some certainty and predictability. The fact is that the biodiesel industry, in the almost 10 years since achieving its first-ever tax credit, has experienced this credit expiring three times. This does little to assure producers, blenders, farmers and other stakeholders the needed assurance to build and sustain an industry. Author: Mark M. Palmer President & CEO, Palmer Policy Group LLC 202-297-2596 mark.m.palmer@gmail.com

TALKING POINT

Protecting Storage Tanks From the Unknown BY PAUL NAZZARO

tank is physically cleaned and dewatered. Let’s face the facts. Even if the fuel you are buying and selling meets an ASTM specification, this represents “minimum” standards. That doesn’t mean it’s a super fuel, nor does it mean the vessels storing that ASTM-specified fuel prior to consumption are clean and dry. In the fast-paced world of liquid fuels marketing, in which I include biodiesel, one thing is form of bulk storage, they have been filled with certain: Sellers sell, buyers buy, but neither party gasoline, diesel fuel, aviation fuel, biodiesel, ethafrequently focuses on managing the storage tanks nol and home heating oil. Generally, the consumer that store their purchases and sales. People often rarely notices these tanks, nor does the consumer ask why petroleum terminals across the nation still think about how their fuel could be impacted by have not begun investing more in infrastructure to factors such as quality and tank design. accommodate efficient and economical blending Over the past few years, a great deal of atof biodiesel, even with the success of the renewtention has been given to what appears to be an able fuel standard now in place. The simple answer increase in premature filter plugging and corrosion centers around uncertainty with the blenders tax activity in the underground storage tank systems credit as well the EPA’s current position on holding across the country, which can affect every type of production values at 1.28 billion gallons. Interestliquid fuel. To appreciate what could be happening to these ingly, last year was a banner year for the biodiesel industry as we endured the coldest winter on record fuel-storage systems, we need to understand how the petroleum supply chain functions and how qual- and still produced and delivered nearly 2 billion gality standards maintain fuel quality from the point of lons of biodiesel to the marketplace. The industry manufacture to the point of sale. It is interesting to demonstrated it could deliver. Millions of gallons of liquid fuels will have contrast fuel quality management practices between changed hands during the time you read this article. the aviation and the pleasure-craft industries. In the The question is, how many of those gallons passed case of the former, the airline industry worldwide through to consumption without enduring negahas invested millions of dollars and hundreds of tive impacts of challenged storage tanks containing thousands of hours to develop a fuel management water, sedimentation and degraded components program that ensures that jet fuel maintains stringent fuel quality standards by filtering and dewater- of countless tank transfers? Adhering to ASTM standards and BQ-9000 fuel policies is a good start ing it every step along the distribution network. to minimizing fuel performance consequences, From production, transport, and storage to fueling the aircraft, industry practices ensure optimum fuel however, it’s not enough. Those in the supply chain quality, resulting in reliable aircraft operation and, in who move or consume fuel need to adhere to tank management policies that can help preserve the turn, passenger safety during flight. quality criterion of the fuel to maximize investment In contrast to the aviation industry is the marine retail market, selling diesel fuel, gasoline and in each gallon consumed. E10. These fuel storage tanks are typically near a Author: Paul Nazzaro body of water, subject to temperature fluctuation President, Nazzaro Group and humid conditions. Over time, these elements 978-258-8360 ext. 301 paulsr@yourfuelsolution.com lead to the formation of sediment and bottom water that remains with the stored fuel until the

Whether buried underground, positioned above ground, or exposed in a basement, fuel-storage tanks have kept millions of cars and trucks, as well as businesses, industries, aircraft, homes and the like adequately supplied with fuel. For as long as liquid fuels have needed some

JULY | AUGUST 2014

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BIODIESEL MAGAZINE

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Down to Earth Energy, LLC

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CincinnaƟ

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Plant Status

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Oswalt Bioenergy Co., LLC

Virgin vegetable oil 105

Florida

106

Lake Providence

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Owensboro

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Soybean oil

ExisƟng

Paseo Cargill Energy, LLC

Kansas City

Patriot Biodiesel, LLC

Greensboro

6.5

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ExisƟng

Peach State Labs, Inc.

Rome

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111

Owensboro Grain Biodiesel, LLC

107 108

Yellow grease 112

113 114

115

Petroless Fuel, LLC Piedmont Biofuels Industrial, LLC

Middle River PiƩsboro

MD NC

0.5 1.4

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Pinnacle Biofuels, Inc.

CrosseƩ

Poultry fat, waste vegetable oil

Pleasant Valley Biofuels, LLC

Washington

5.2

MulƟfeedstock

Producers' Choice Soy Energy, LLC

Moberly

Promethean Biofuels Co-op Corp.

Temecula

R3 Energy, LLC

CoƩonwood Falls

MO CA KS

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2.1

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ExisƟng ExisƟng

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Greenleaf Biofuels, LLC

Greenlight Biofuels Princess Anne, LLC

Greenwave Biodiesel

Griĸn Industries, Inc.

GTBE ProducƟon

Imperial Western Products, Inc.

Integrity Biofuels

New Haven Fort Lauderdale

Guymon Coachella Hoquiam Gilman Morristown

Iowa Renewable Energy, LLC Jatrodiesel, Inc.

Washington Miamisburg

0.5 JNS Biofuels

New Albany

CT MD FL KY TX PA OK CA WA IL IN IA OH MS

Keystone BioFuels, Inc.

Camp Hill

Louis Dreyfus Agricultural Industries, LLC

Claypool

Loyola University Chicago

Butler Erie

High Plains Bioenergy, LLC

Imperium Grays Harbor

Incobrasa Industries, Ltd.

80 81 82

85 86 88

Princess Anne

Houston

Hero BX

37.5

76 77 78 79

83 84

Chicago

Maine Bio - Fuel, Inc.

Portland

Mason Biodiesel, LLC

Westerly

Lilbourn

0.02 ME Bio Energy, LLC

45 10.5 100

5 30 5

MulƟfeedstock

MulƟfeedstock MulƟfeedstock

MulƟfeedstock

Waste glycerin, palm sludge MulƟfeedstock Animal fat

MulƟfeedstock MulƟfeedstock

Soybean oil

MulƟfeedstock Animal fat, vegetable oils MulƟfeedstock

ExisƟng

ExisƟng ExisƟng

119

REG Atlanta, LLC

REG Clovis, LLC

122

123

ExisƟng ExisƟng

REG Albert Lea, LLC

120 121

ExisƟng

124 125

REG Danville, LLC

REG Emporia, LLC REG Houston, LLC REG Mason City, LLC

ExisƟng

126

REG New Boston, LLC

ExisƟng

127

REG New Orleans, LLC

ExisƟng

128

ExisƟng ExisƟng ExisƟng

129 130 131

ExisƟng

132

7.5

MulƟfeedstock

ExisƟng

133

Soybean oil

ExisƟng

Used cooking oil

Soybean oil

ExisƟng

135

ExisƟng

136

0.1

1.5

MulƟfeedstock

1.2

MulƟfeedstock

ExisƟng

134

137

REG Newton, LLC REG Ralston, LLC REG Seneca, LLC REV Biodiesel

Rio Valley Biofuels, LLC Sanimax Energy

ScoƩ Petroleum Corp. Seminole Biodiesel

SeQuenƟal PaciĮc Biodiesel, LLC Shenandoah Agricultural Products

Albert Lea Ellenwood Clovis Danville Emporia Seabrook Mason City New Boston St. Rose Newton Ralston Seneca Gilbert Anthony DeForest Greenville Bainbridge Salem Clear Brook

Restaurant waste oils 5

Simple Fuels Biodiesel

Chilcoot

MN GA NM IL KS TX IA TX LA IA IA IL AZ NM WI MS GA OR

30 15 15 45 60 35 30 15 60 30 12 60 10 1.5 20 20 5 17

High/ low FFA High/ low FFA

ExisƟng Under ConstrucƟon

High/ low FFA

Under ConstrucƟon

High/ low FFA

ExisƟng

High/ low FFA Low FFA Low FFA High/ low FFA High/ low FFA High/ low FFA Low FFA High/ low FFA Used cooking oil MulƟfeedstock MulƟfeedstock MulƟfeedstock

Under ConstrucƟon ExisƟng ExisƟng ExisƟng Under ConstrucƟon ExisƟng ExisƟng ExisƟng ExisƟng ExisƟng ExisƟng ExisƟng

Soybean oil

ExisƟng

Used cooking oil

ExisƟng

0.3

Waste vegetable oil

ExisƟng

Yellow grease

ExisƟng

Southeast Biodiesel, LLC

North Charleston

MulƟfeedstock

Under ConstrucƟon

140

Southern California Biofuel

Anaheim

Used cooking oil, yellow grease

Mid-America Biofuels

Mexico

Soybean oil

ExisƟng

141

Stepan Co.-Joliet

Joliet

Soybean oil

Midlands Biofuels, LLC

Winnsboro

0.2

MulƟfeedstock

ExisƟng

142

Sullens Biodiesel, LLC

Morrison

Waste vegetable oil

ExisƟng

Midwest Biodiesel Products, LLC

South Roxana

MulƟfeedstock

ExisƟng

143

Sun Power Biodiesel, LLC

Cumberland

Canola, soybean oils

ExisƟng

BrownĮeld Biodiesel, LLC

Ralls

Virgin vegetable oil

ExisƟng

144

Sun Products CorporaƟon - Pasadena

Pasadena

Palm oil

ExisƟng

Buīalo Biodiesel, Inc.

Tonawanda

Yellow grease

Pennington Gap

Central Washington Biodiesel, LLC

Ellensburg

33 34

CGF Clayton, LLC

Clayton

Channel BioreĮnery & Terminals, LLC

Houston

0.02

Restaurant waste oils

ExisƟng

MulƟfeedstock

ExisƟng

MulƟfeedstock

ExisƟng

BIODIESEL MAGAZINE IS THE

With subscribers in more than 40 countries, Biodiesel Magazine is the world’s largest and longest-running biodiesel magazine. The only magazine in the world exclusively focused on biodiesel.

ExisƟng ExisƟng

MulƟfeedstock

El Paso

Used cooking oil

ExisƟng

Dexter

Animal fat, soybean oil

ExisƟng

Golden Leaf Energy, LLC

Harvey

2.2

MulƟfeedstock

Green Earth Fuels of Houston, LLC

Houston

MulƟfeedstock

Sedgwick

Corn oil

Green Energy Products, LLC

ExisƟng

Milagro Biofuels

Memphis

Minnesota Soybean Processors

Brewster

Houston

Global AlternaƟve Fuels, LLC Global Fuels, LLC

Houston

Under ConstrucƟon

Moses Lake

64 65

100

ExisƟng

101

Under ConstrucƟon

102

Natural Biodiesel Plant, LLC

HayƟ

New Leaf Biofuel, LLC

San Diego

Newport Biodiesel, Inc.

Newport

North Star Biofuels, LLC

Redwood City

Northeast Biodiesel, LLC

GreenĮeld

directory.biodieselmagazine.com cleaning| BROWSE CATEGORIES NEXT GENERATION FUELS & CHEMICALS

BiodieselMagazine.com

find it online at

Mississippi Investment Petroleum Co. LLC-Houston

One FREE Listing per company

Under ConstrucƟon

138

MulƟfeedstock

ExisƟng

Richmond

MulƟfeedstock

ExisƟng

Menlo Energy Richmond, LLC

3.6

ExisƟng

Lakeland

1.2

Waste vegetable oil

ExisƟng ExisƟng

Menlo Energy Florida, LLC

Used cooking oil Soybean oil

ExisƟng

#1 SOURCE

ExisƟng

Waste vegetable oil

Animal fat, yellow grease

OF INFORMATION FOR AND ABOUT BIODIESEL PRODUCERS AND INDUSTRY PROS.

ExisƟng

MulƟfeedstock MulƟfeedstock

ExisƟng

139

ExisƟng ExisƟng ExisƟng

Animal fat, soybean oil

ExisƟng

Soybean oil

ExisƟng

145

Synergy Biofuels, LLC

Waste vegetable oil

MulƟfeedstock

ExisƟng

146

Texas Biotech, Inc.

Arlington

Waste vegetable, soybean oils

ExisƟng

MulƟfeedstock

ExisƟng

147

Texas Green Manufacturing, LLC

LiƩleĮeld

1.25

Animal fat

ExisƟng

Yellow grease

ExisƟng

148

The Power AlternaƟve, Inc.

Detroit

MulƟfeedstock

ExisƟng

149

Thumb BioEnergy, LLC

MulƟ Ɵfeedstock 5

ExisƟng

Yellow grease

ExisƟng

MulƟfeedstock

ExisƟng

150

TMT Biofuels, LLC

Port Leyden

0.25

Waste vegetable oil

ExisƟng

3.5

Yellow grease

Under ConstrucƟon

151

TransMessis Columbia Plateau, LLC

Odessa

Canola oil

ExisƟng

MulƟ Mul Ɵfeedstock

Sandusky

0.42

Used cooking oil

ExisƟng

Total Capacity of ExisƟng Plants

Foothills Bio-Energies, LLC

Lenoir

MulƟ Ɵfeedstock

ExisƟ Exis Ɵng

Mid-America Biofuels

Mexico

Soybean oil

Fuel: Bio One, LLC

Elizabeth

Animal fat, yellow grease

ExisƟ Ɵng

Midlands Biofuels, LLC

Winnsboro

0.2

MulƟ Ɵfeedstock

FutureFuel Chemical Co.

Batesville

MulƟ Ɵfeedstock

ExisƟ Exis Ɵng

Midwest Biodiesel Products, LLC

South Roxana

MulƟ Ɵfeedstock

ExisƟ Exis Ɵng

General Biodiesel, Inc.

SeaƩ Ʃle

MulƟ Mul Ɵfeedstock

ExisƟ Exis Ɵng

Milagro Biofuels

Memphis

Animal fat, soybean oil

ExisƟ Ɵng

Genuine Bio - Fuel, Inc.

Indiantown

9.2

Waste vegetable oil, tallow

ExisƟ Ɵng

Minnesota Soybean Processors

Brewster

Soybean oil

ExisƟ Ɵng

ExisƟng

Under ConstrucƟ Ɵon 2,577

Total Capacity of Under ConstrucƟon Plants

58 60

ExisƟng ExisƟng ExisƟng

MulƟfeedstock MulƟfeedstock

30 0.5

317

# 168 169

170 171 172 173

174

Plant Name Archer Daniels Midland Co. - Lloydminster

City Lloydminster

Bifrost Bio-Blends, Ltd.

Arborg

Biofuel Weiss, Inc.

175

Milligan Biofuels, Inc.

ExisƟ Ɵng

Capacity (MMly) 265

ExisƟng Under ConstrucƟon ExisƟng

ExisƟng ExisƟng

MulƟfeedstock

ExisƟng

MulƟfeedstock

ExisƟng

MulƟfeedstock

ExisƟng

Nonfood-grade canola oil

ExisƟng

MulƟfeedstock

ExisƟng

Animal fat, yellow grease

ExisƟng

Total Capacity of ExisƟng Plants

755

Total Capacity of Under ConstrucƟon Plants

182

Plant Name

City

State LA

Capacity (MMgy) 137

Feedstock

Energy Product

Animal fat, used cooking oil

Renewable diesel

Diamond Green Diesel

St. Charles

183

Dynamic Fuels, LLC

Geismar

Animal fat, vegetable oil, greases

Renewable diesel

184

KiOR, Inc.

Columbus

Pine wood chips

Cellulosic diesel

Total Capacity of ExisƟng Renewable, Cellulosic Diesel Plants

The Largest Biomass Conference in North America

valuable contacts

Yellow grease

ConstrucƟ Under Construc Ɵon

San Diego

Golden Leaf Energy, LLC

Harvey

2.2

MulƟ Ɵfeedstock

ExisƟ Exis Ɵng

100

Newport Biodiesel, Inc.

Newport

Green Earth Fuels of Houston, LLC

Houston

MulƟ Ɵfeedstock

ExisƟ Exis Ɵng

101

North Star Biofuels, LLC

Redwood City

Green Energy Products, LLC

Sedgwick

Corn oil

Under ConstrucƟ Ɵon

102

Northeast Biodiesel, LLC

GreenĮ Įeld

866-746-8385 | service@bbiinternational.com Follow Us: twitter.com/biomassmagazine

#IBCE14

SOURCE

The only magazine in the world exclusivelyy focused on biodiesel.

3.5

HayƟ Ɵ

New Leaf Biofuel, LLC

U.S. & Canada Biodiesel Plant Map 2014

With subscribers in more than 40 countries, Biodiesel Magazine is the world’s largest and longest-running biodiesel magazine.

ExisƟ Exis Ɵng

Houston

Natural Biodiesel Plant, LLC

SEL MAGAZINE IS THE

MATION FOR AND ABOUT BIODIESEL ERS AND INDUSTRY PROS.

MulƟ Ɵfeedstock

Mississippi Investment Petroleum Co. LLC-Houston

ExisƟ Ɵng

Biomass Power & Thermal | Pellets | Biogas | Advanced Biofuels

the quality of the entire conference

ExisƟ ExisƟng

Animal fat, soybean oil

March 24-26, 2014 | Orlando, FL

100% 96% of the exhibitors positively rated of exhibitors made

ExisƟ Ɵng

ConstrucƟ Under Construc Ɵon

Used cooking oil

www.biomassconference.com

At the 2013 event in Minneapolis…

ExisƟ Ɵng

Yellow grease

MulƟ Ɵfeedstock

225

ExisƟ Exis Ɵng

ExisƟ ExisƟng

Dexter

FIND BROWSE COMPANIES

ExisƟ ExisƟng

MulƟ Mul Ɵfeedstock

Yellow grease

El Paso

Global Fuels, LLC

ExisƟng Renewable, Cellulosic Diesel Plants

ExisƟ Exis Ɵng

directory.biodieselmagazine.com

service@bbiinternational.com | (866) 746-8385cleaning | www.BiodieselMagazine.com | FIND BROWSE CATEGORIES NEXTT GENERATION GENERAT NERATI FUELS & CHEMICALS

find it online at

BROWSE COMPANIES

One FREE Listing per company

2015 MulƟ Ɵfeedstock

Moses Lake

Global AlternaƟ Ɵve Fuels, LLC

ExisƟng

Canola oil Soybean oil

66 76

St. Jean S. Richelieu Ville St. Catherine

Gen-X Energy Group, Inc.

ExisƟng

Flax seed oil

20 2 5

Plant Status ExisƟng

MulƟfeedstock Animal fat Waste vegetable oil

16.4 170

QC AB ON

Feedstock Canola oil Canola oil

26 67

SK ON

Mississauga Foam Lake

QFI Biodiesel, Inc.

0.2

Regina Welland Theƞord Mines Lethbridge

Methes Energies Canada, Inc. - Mississuaga

Rothsay Biodiesel, LLC

NS BC

Toronto

General Bio Energy, Inc.

Kyoto Fuels Corp.

Duncan

Flax Energy Great Lakes Biodiesel, LLC Innoltek, Inc.

177

178

179 180 181

Hamilton

Cowichan Biodiesel Co-op

176

Province AB

Mount Uniacke

Biox Corp.

ExisƟ Ɵng

ExisƟ ExisƟng

Canadian Biodiesel Plants

ExisƟ Ɵng

ExisƟ Exis Ɵng

ExisƟng

MulƟfeedstock Soybean oil Corn oil

22 33 5.5

MulƟfeedstock

Channel BioreĮ Įnery & Terminals, LLC

Soybean oil, yellow grease

10 10

ExisƟng

UT IA

Waste vegetable oil

MulƟfeedstock

MI IA WI

Plymouth Farley

Soybean oil, yellow grease

Waste vegetable oil, tallow

Adrian Crawfordsville Mauston

Washakie Renewable Energy, LLC

Western Dubuque Biodiesel, LLC

Wall Lake

MulƟfeedstock

West Point

W2 Fuel - Adrian W2 Fuel - Crawfordsville

Walsh Bio Fuels, LLC

164

Ukiah

9.2

Virginia Biodiesel ReĮnery, LLC

161 162

163

North Haverhill

159 160

ExisƟ Exis Ɵng Western Iowa Energy, LLC

4.5

ExisƟng

Yokayo Biofuels, Inc.

ExisƟng

SeaƩle

ExisƟng ExisƟng ExisƟng

White Mountain Biodiesel, LLC

ExisƟng

Indiantown

ExisƟng

MulƟfeedstock Waste vegetable oil

165

Gen-X Energy Group, Inc.

Animal fat, soybean oil MulƟfeedstock MulƟfeedstock

20 7.2

166

ExisƟng

General Biodiesel, Inc.

2 12 15

AL FL

167

ExisƟng

Genuine Bio - Fuel, Inc.

GA LA

Moundville Stuart

ExisƟng

Rome Pollock

ExisƟng

PiƩsburgh

US Biofuels, Inc.

Vanguard Synfuels, LLC Veros Energy, LLC Viesel Fuel, LLC

ExisƟng

United Oil Co.

155 156 157 158

MulƟfeedstock

Clayton

154

ExisƟ Exis Ɵng

MulƟfeedstock

Batesville

ExisƟng

Under ConstrucƟon

Used cooking oil

Fort Myers

ExisƟng

MulƟfeedstock

180

Elizabeth

Under ConstrucƟon

MulƟfeedstock

Lenoir

ExisƟng

Plant Status

3.6

FutureFuel Chemical Co.

Used cooking oil

Feedstock

Brooklyn

FL Biofuels, LLC

Waste vegetable oil

Capacity State (MMgy)

Wilson

United Biodiesel, Inc.

Foothills Bio-Energies, LLC

Soybean oil

City

Triangle Biofuels Industries, Inc.

Fuel: Bio One, LLC

Plant Name

152 153

Port Neches

0.5

ExisƟ Ɵng

ExisƟ Exis Ɵng

BasseƩ

37.5

Under Construc ConstrucƟ Ɵon

Richmond

ConstrucƟ Under Construc Ɵon

MulƟ Ɵfeedstock

RBF Port Neches, LLC

ExisƟng

MulƟ Ɵfeedstock

Reco Biodiesel, LLC

ExisƟng

Red Birch Energy, Inc.

116

ExisƟng

Escondido

Richmond

117

ExisƟng

Durham

Lakeland

Menlo Energy Richmond, LLC

118

MulƟfeedstock

Iowa Falls

Menlo Energy Florida, LLC

Plant Status

MulƟfeedstock

Carolina Biodiesel, LLC

ExisƟ Ɵng

ExisƟng

MulƟfeedstock

Buster Biofuels

ExisƟ Ɵng

Waste vegetable oil

Feedstock

MulƟfeedstock

Cargill Inc. - Iowa Falls

Soybean oil, yellow grease

4.5

MulƟfeedstock

Fort Myers

Capacity (MMgy)

Autryville

FL Biofuels, LLC

Filter Specialty, Inc.

Plants that have > 20 MMgy

State

Plants that have < 20 MMgy

28%

City

ExisƟ Exis Ɵng

MulƟ Ɵfeedstock

Warrenville

Bridgeport

Autryville

MulƟ Ɵfeedstock

Green Valley Bio - Fuels

St. Joseph

Filter Specialty, Inc.

1.2

Plant Name

Falmouth

ExisƟ Exis Ɵng

Lilbourn

Bridgeport Biodiesel, LLC

MulƟ Ɵfeedstock

Westerly

ME Bio Energy, LLC

Total Number of Plants = 184

City

OK Biodiesel, Inc.

Blue Sun St. Joe ReĮning

Portland

Mason Biodiesel, LLC

U.S. Biodiesel Plants conƟnued

Plant Name

103

Bluegrass BioDiesel

Maine Bio - Fuel, Inc.

ExisƟ ExisƟng

Exis ExisƟ Ɵng 72% ExisƟ ExisƟng

U.S. Biodiesel Plants conƟnued #

Oakland

ExisƟ Exis Ɵng

Soybean oil

U.S. & Canadian Biodiesel Plants by Annual ProducƟon Capacity Range

Blue Sky Biofuels

ExisƟ Exis Ɵng

MulƟ Ɵfeedstock

Exis ExisƟ Ɵng

MulƟ Ɵfeedstock

500

ExisƟ ƟPlant ng Capacity Across the Industry

Please contact Kolby Hoagland, Data & Content Manager, with quesƟons or comments regarding the 2014 Biodiesel Map at khoagland@bbiinternaƟonal.com.

U.S. Biodiesel Plants conƟnued

ExisƟng

Wilson

ExisƟng

CincinnaƟ Ɵ

400

ExisƟng

Meridian

Evans Environmental Energies, Inc.

Soybean, corn, used cooking oils

Philadelphia

Corona

Felda IFFCO, LLC

300

Plant Status

ExisƟng

Canola, soy, waste vegetable oils MulƟfeedstock

Used cooking oil, yellow grease

Ethos AlternaƟve Energy

ExisƟng ExisƟng

3.5

BlackGold Biofuels

California

NOTE: Plant map as of Nov. 21, 2013 - Plant capaciƟes are listed as maximum installed producƟon capacity - Plants that are temporarily idled or operaƟonal are listed as exisƟng

South Carolina

Hammond

Extreme Biodiesel, Inc.

200

ExisƟng

Animal fat Soybean oil

Animal fat, soybean oil

Waste vegetable oil

Under ConstrucƟon

Central Washington Biodiesel, LLC

Chesapeake Green Fuels

Iowa Falls

ExisƟng ExisƟng ExisƟng ExisƟng

Plant Name

Escondido 35

ExisƟng

OR NV

Kea`au

Biodico Sustainable BioreĮneries - Five Points

18 20

ExisƟng

MulƟfeedstock Canola oil Virgin oils, yellow grease

Portland Minden

Big Island Biodiesel, LLC Bio-AlternaƟve, LLC

ExisƟng

Soybean oil Soybean oil

MI TX

Anchorage

San Jose

Beaver Biodiesel, LLC

Gladstone Douglass

Velva

Bently Biofuels Co.

15 17

Arkansas

MulƟ Ɵfeedstock

U.S. Biodiesel Plants conƟnued

Plant Name

Washington

MulƟ Ɵfeedstock

109

Tonawanda

U.S. Biodiesel Plants

Maryland

ExisƟng Biodiesel Plants Under ConstrucƟon Biodiesel Plants z ExisƟng Renewable Diesel Plants

North Carolina

Evergreen Renewables, LLC

100

439 313 221 201 174 124 110 107 106 87

Georgia

Alabama

104

Mul MulƟ Ɵfeedstock

Tennessee

Mississippi Louisianna

Illinois

Delaware

110

Buī īalo Biodiesel, Inc.

Mississippi

Virginia

Arkansas

Texas

Hawaii

BrownĮ Įeld Biodiesel, LLC

New Jersey

MulƟ Ɵfeedstock

Kentucky

Bridgeport

Connecticut

West Virginia

Oklahoma

New Mexico

Falmouth

Bridgeport Biodiesel, LLC

Ranking State/Province

Rhode Island

Yellow grease

Ohio

Indiana

Illinois

Missouri

St. Joseph

Arizona

Bluegrass BioDiesel

1.2

Iowa

Kansas

Colorado

ExisƟ Ɵng

Top 10 States, Provinces by Total Biodiesel ProducƟon Capacity (MMgy) Vermont

Massachusetts

Trap grease,wastewater sludge

Michigan

Oakland

MulƟ Ɵfeedstock

ExisƟ Ɵng

ExisƟ ExisƟng

Maine

Soybean, corn, used cooking oils

0.26

Pennsylvania

Asheville

Utah

California

Exis ExisƟ Ɵng

Nova Scotia

MulƟ Ɵfeedstock

3.5

Wisconsin

Nebraska Nevada

Blue Sky Biofuels

Under Construc ConstrucƟ ƟonMap Biodiesel Plant 2014

New Brunswick

New York Wyoming

Philadelphia

“The Leading Provider in RFS2 Reviews, Technical and Marketing Services”

Exis ExisƟ Ɵng

U.S. & Canada

New Hampshire

Oregon

BlackGold Biofuels

Blue Ridge Biofuels, LLC

901-725-7258 www.FrazierBarnes.com

Learn More: Genscape.com/RIN

Minnesota

Frazier, Barnes & Associates, LLC

• One Comprehensive Program for QAP-A & B RINs • Cost-effective, trusted, independent veriﬁcation

MulƟ Ɵfeedstock

What can we do for you? -RFS2 Engineering Reviews -Feedstock Procurement -Margin Management -Process Engineering -Plant Appraisals -Esterification ... and so much more!

ExisƟ ExisƟng

RIN INTEGRITY NETWORK™

219-369-4991

Manitoba

Las Vegas

MulƟ MulƟfeedstock

15.5

• Biodiesel • Waste Food

glycerintraders@gmail.com • www.glycerintraders.com

Saskatchewan

Alberta

Washington

BioVantage Fuels, LLC

Defiance, OH 43512 LaPorte, IN 46350

w w w. F u e l s F i x . c o m

Five Points

Biodico Sustainable BioreĮ Įneries - Ventura

Biodiesel of Las Vegas

CGF Clayton, LLC

NATIONAL ALTERNATIVE FUELS EZINE

EVENTS CALENDAR LDCommodities.com 2014 Collective Biodiesel Conference AUGUST 14-17, 2014

Piedmont Biofuels Pittsboro, North Carolina The Collective Biodiesel Conference is the premier conference for anyone interested in biodiesel. Speakers are handpicked from the community and present on a wide range of topics around biodiesel production, promotion, and use. Held annually, it’s jam-packed with great information, knowledgeable people, and offers a chance to rub shoulders with some of the best in the industry. 919-321-8260 | www.collectivebiodieselconference.org

National Advanced Biofuels Conference & Expo OCTOBER 13-14, 2014

Hyatt Minneapolis Minneapolis, Minnesota 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. With a vertically integrated program and audience, the National Advanced Biofuels Conference & Expo is tailored for industry professionals engaged in producing, developing and deploying advanced biofuels, biobased platform chemicals, polymers and other renewable molecules that have the potential to meet or exceed the performance of petroleum-derived products. 866-746-8385 | www.advancedbiofuelsconference.com

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

International Fuel Ethanol Workshop & Expo 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

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Partnership Connecting Your Supply to the Domestic and Global Marketplace.

Community Active Participation in the Communities Where We Live and Work.

Commitment Supported by the Reliability and Financial Security of Louis Dreyfus Commodities.

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Biodiesel News & Trends

EU agreement on ILUC caps conventional biofuels at 7 percent On June 13, the European Union Energy Council announced it had reached a political agreement on measures to incorporate indirect land use change (ILUC) into EU biofuel policies. Biofuel trade groups say the move is expected to restore investor confidence. The agreement places a 7 percent cap on the use of conventional biofuels. It also encourages the transition to second- and third-generation biofuels. To support the move to advanced biofuels, member states are invited to promote their use and are required to set national targets for advanced biofuels based on a reference value of 0.5 percentage points of the 10 percent target for renewable energy in transport of the renewable energy directive (RED). According to information released by the EU Energy Council, member states can set a lower target under certain circumstances. Information published on the agreement also notes that a new annex to the RED has been established that contains feedstocks for advanced biofuels that could count double toward targets. Double counting is also permitted for advanced biofuels not listed in that annex, but used in existing installations prior to the adoption of the new directive. The agreement also includes additional incentives for advanced biofuels by extending the tool of statistical transfers of the renewables directive to cover such advanced biofuels, and the double counting of the contribution of these biofuels is extended to the overall renewables energy targets. In addition, the agreement includes a provision to generate electricity from renewable sources in order to reduce greenhouse gas (GHG) emissions in transport. The EU Energy Council also indicated that ILUC reporting on GHG emission savings from the use of biofuels will be carried out by the commission using data reported by member states. Finally, a review clause in the agreement makes it possible to introduce adjusted estimated ILUC factors into the sustainability criteria. The European Biodiesel Board welcomes the final agreement and fully supports the point of view expressed by a large number of member states that any attempt to decrease the 7 percent objective would pose a threat to the EU economy and agriculture. Rob Vierhout, secretary general of ePURE, the European renewable ethanol industry association, calls the agreement “welcome progress” and says it should pave the way towards a stable policy framework that will restore investor confidence in the biofuel industry. He also notes, however, that more progress needs to be made. “The proposed ceiling of 7 percent for conventional biofuels could limit the uptake of renewable ethanol as the majority could come from existing biodiesel capacity,” he says. “It is essential that the ceiling is combined with a separate renewable in petrol target as proposed by the European Parliament in its first reading position.” “Low- or no-ILUC-risk biofuels should count toward the target above the ceiling, as a way to promote further market penetration of the best performing biofuels,” Vierhout says. “To date, the analysis on ILUC merely confirms that ethanol makes a very strong contribution to 10

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the decarbonization of Europe’s road transport.” While the proposed 0.5 percent subtarget for advanced biofuels is a start, Vierhout says it must be higher, particularly after 2020. He adds that any target must exclude the current system of multiple counting, which allows more fossil fuels to be used. The U.K.-based Renewable Energy Association says the new agreement will effectively bring a close to almost two years of investment-blocking policy paralysis in the low carbon fuels sector. While the REA says it continues to oppose the use of ILUC factors in GHG accounting for biofuels, the organization adds the new proposal should give the existing biofuels industry room to grow and invest in the development of advanced biofuels. The REA also says it remains opposed to double counting toward the renewable energy target. The REA points out that the proposal must undergo a second reading in the new European Parliament before it becomes law. “All EU member states are committed to securing 10 percent of transport energy from renewable sources, such as biodiesel, bioethanol and biomethane, by 2020,” the organization states. “The UK Renewable Transport Fuel Obligation is currently set at 4.75 percent (by volume, equivalent to 3.8 percent by energy). The government has previously stated that it would not raise the RTFO beyond this year due to the ongoing uncertainty over the European ILUC dossier. With ILUC now resolved, the REA calls on the Department for Transport to set out the RTFO to 2020 to give our members the policy framework they need to secure investment in both current and advanced biofuels.” “This is a compromise that will frustrate parties on both sides of the debate, but the overriding feeling is one of relief that the ILUC saga is finally drawing to a close,” says Nina Skorupska, chief executive of the REA. “Our members and stakeholders have grappled with this issue for several years, when they would rather have been focusing their efforts on creating jobs in sustainable biofuel production. We urge the government to get its own house in order now so that the transport sector can get the low carbon momentum back on track and catch up with the progress being made in renewable heating and electricity.”

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New report evaluates Asia-Pacific biodiesel markets, growth A new report by Lux Research says while China and India will dominate growth in Asia’s renewable sectors thanks to aggressive mandates, government support and cost advantages, their aggressive, self-imposed targets will not be met—even with strong growth. India is betting on “risky jatropha” for biodiesel, according to Lux, as it races to meet an aggressive 20 percent biofuels mandate for 2017. “But biofuels will account for less than 0.6 percent of its diesel fuel and 0.3 percent of its gasoline in 2017,” the company finds. “Both countries have huge populations and huge fuel demands, and both governments extend support for ethanol and biodiesel,” says Nancy Wu, Lux Research analyst and an author of the report titled, “Planning for the Long-Term in Asia

Pacific Alternative Fuel Markets.” “However,” she adds, “challenges with cost, feedstock availability and infrastructure will still hold them back from ambitious targets.” In the report, Lux evaluates ethanol, biodiesel and natural gas vehicles in 10 of the largest markets in Asia-Pacific. For biodiesel, India will outpace Asia’s growth, according to Lux. “Indonesia, China and Malaysia are the three dominant nations in biodiesel, each driven by challenging mandates,” the company states. “Indonesia is targeting 20 percent adoption by 2025 while Malaysia positions itself to be a dominant exporter with 143 MMgy in 2015. India’s growth, however, at an impressive 18.5 percent compound

SOURCE: LUX RESEARCH

annual growth rate (CAGR) through 2017, will outpace the rest of the region, which will post a 3.9 percent CAGR through 2017.”

Brazil biodiesel mandate moves to 7 percent come November On May 28, Brazil’s President Dilma Rousseff signed an increase in the nation’s biodiesel mandate, starting in July, from 5 to 6 percent, and moving to 7 percent in November, according to Brazil’s Ministry of Mines and Energy. The measure was signed during an event at the presidential palace. Minister Edison Lobao says the increase will allow full use of Brazil’s biodiesel production capacity and benefit family farmers with

income generation. He also cited the environmental gains. Brazil currently has 57 plants able to process about 7.5 billion liters (approximately 1.98 billion gallons) of biodiesel annually. The increase to 7 percent biodiesel in Brazil will reduce diesel imports by 1.2 billion liters a year. The National Biodiesel Program instituted a 2 percent biodiesel mandate in 2008, and in 2010 it rose to 5 percent where it has stayed.

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In situ biodiesel testing technology presented at AOCS meeting Biodico’s Vice President of Research and Development Trey Teall presented the results of a five-year research project in May at the 105th American Oil Chemists’ Society Annual Meeting & Expo in San Antonio, Texas. The project focused on the use of Fourier Transform Near-infrared Spectroscopy to provide real-time in situ analysis of the biodiesel production process as an alternative to conventional ASTM biodiesel methodology. ASTM D6751 protocols require the use of techniques that are relatively time-consuming and provide data about the state of the biodiesel reaction kinetics after the fact. For example, the use of gas chromatography (GC) to determine mono, di and tri glycerides, and free glycerin will take a trained technician more than 45 minutes. It requires that a sample be drawn, reacted (silylated) and run through the GC, and the results indicate what the reaction state was, instead of what it is in real time. In contrast, Teall’s research has shown that the use of FT-NIRS can be conducted with sensors imbedded in various production process streams and provide highly accurate, near-instantaneous data about the state of the reaction. It can also detect low-level contaminants to ensure that finished biodiesel meets the requirements of ASTM D6751 for finished biodiesel.

Coffee biodiesel properties studied Researchers from the University of Bath’s Centre for Sustainable Chemical Technologies conducted a study looking at fuel properties of biodiesel produced from different types of waste coffee grounds. Twenty different geographically sourced coffees, including regular and decaf and Robusta and Arabica types, were used to make various biodiesel samples that were then tested and fuel properties compared. The end result was little variation in properties despite the spectrum of coffee feedstock used to make the fuels. “For all samples, with the SOURCE: UNIVERSITY OF BATH exception of Vietnamese coffee, the FAME profile of the resulting biodiesel was consistent,” states the study's abstract. Pour points ranged between minus 1 and 16 degrees Celsius. The kinematic viscosity ranged between 4.0 and 5.5 mm2 s–1; the density ranged between 841 and 927 kg m–3. Chris Chuck, Whorrod Research Fellow from the Department of Chemical Engineering, says, “The yields and properties of biodiesel can differ depending on the growth conditions of current biodiesel feedstocks, sometimes causing them to fall out of specification. The uniformity across the board for the coffee biodiesel fuel is good news for biofuel producers and users.”

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Soy-checkoff project targets 60 bushels an acre by 2025 The soy checkoff is spearheading a major project to boost yields for U.S. soybean farmers to an average of 60 bushels per acre, nearly 20 bushels higher than the current national average, by the year 2025. To do it, scientists are using soy-checkoff funding to harness the power of the sequenced soybean genome by using various genetic methods, such as nested association mapping (NAM), RNA sequencing and epigenetics. While this might seem ambitious, farmers are achieving extremely high yields now—in some cases, more than 100 bushels per acre—showing the goal is achievable. USDA researcher Michelle Graham and her team are sequencing the genomes of 100 different soybean cultivars heavily adopted by U.S. farmers over the past 90 years because of their high yield potential. This will help the team identify the genes and gene combinations that have been responsible for yield increases. “This project will generate hundreds of thousands of new molecular markers that will be released to public and private researchers for use in soybean improvement,” says Graham. At the University of Illinois, Brian Diers uses a NAM technique to find the location of important genes, helping save time in field trials. In every soybean plant cell, all of that plant’s genes are present. Expressed genes produce RNA, and scientists can sequence that RNA to find out which genes are expressed in each area of the plant. Gary Stacey works with a team of researchers at the University of Missouri to grow soybeans under various stressful conditions. They then take samples of the different parts of these soybean plants and isolate the RNA. Next, they send the isolated RNA to the U.S. DOE Joint Genome Institute for sequencing to show how the plants react under these environmental stresses. The information is recorded and mapped to provide a “soybean genome atlas.” Stacey says this resource will save researchers time in finding the genes that

are responsible for yield and other desirable traits. Other soybean scientists study a genetic component called epigenetics to learn how soybean plants respond to pathogens, pests and other yield robbers. Scientists hope to be able to predict those responses and use them to farmers’ advantage. Epigenetics serves as a switch that determines whether a soybean plant expresses certain genes, as well as the intensity with which those genes are expressed. “The goal of the checkoff project is really to understand how many of those switches are there in the background that we don’t know about,” says University of Georgia soybean researcher Scott Jackson. Another collaborator on the project, University of Delaware Professor Blake Meyers, says yield is a combination of genetics and the environment, and epigenetics could help determine which varieties to use in different situations. “The environment is not easy to predict, if it can be predicted at all,” says Meyers. “So having soybeans that can respond to the widest range of environments in a beneficial way—drought tolerance, for example—will be critical to achieving that goal of 60 bushels an acre.”

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Political Giving an Important Piece of Federal Policy Puzzle Biodiesel is the only advanced biofuel commercially available across the country, but it is still a relatively young industry when compared to conventional petroleum fuels. As the industry continues to mature, strong public policy remains critical. The biodiesel industry has long been commended for its advocacy efforts in Washington, D.C., and grassroots lobbying strength, but political fundraising remains an important component of supporting Donnell Rehagen, effective public policy and, as of now, has been Treasurer, the only avenue that the biodiesel industry isn’t National Biodiesel Political Action Committee punching above its weight class in Washington. The National Biodiesel Political Action Committee is the connected PAC of the National Biodiesel Board. It is dedicated to electing and supporting political leaders around the country who understand the vital role of biodiesel in the nation’s energy policy. The cornerstone of our industry, the renewable fuel standard (RFS), creates a floor of demand for our product on an annual basis. Needless to say, having champions in the U.S. House and Senate is critical to ongoing success in federal policy. Political giving is an important form of free speech and supporting the members of Congress who support our industry is mission-critical. NBB members contributing to the NBPAC is an efficient and ethical way to do so through a coordinated effort. Others who support the RFS and energy tax incentives provide support to their champions in the Senate and the House, and maybe more importantly, those who oppose renewable energy policies donate big dollar amounts to support their champions. During the recent NBB membership meeting in Washington, D.C., the biodiesel industry hosted a fundraiser meeting with Sen. Al Franken, D-Minn., in which NBPAC participated. Franken chairs the Energy Subcommittee of the Senate Committee on Energy and Natural Resources. He also participated in a Senate press conference in May on behalf of the biodiesel industry calling on the administration and Congress to restore stable policy.

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Past fundraising events the NBPAC has participated in have raised contributions for Sen. Maria Cantwell, D-Wash.; Sen. Chuck Grassley, RIowa; Rep. John Shimkus, Ill.-13; Rep. Adam Kinzinger, Ill.-16; Rep. Ed Whitfield, Ky.-01; and others. Also during the NBB membership meeting, the NBPAC hosted a separate fundraising reception to raise additional funds for future contributions. The PAC’s executive committee is currently planning fundraising events connected with the upcoming November NBB membership meeting and the National Biodiesel Conference & Expo to be held Jan. 19-22 in Fort Worth, Texas. The executive committee includes a mix of NBB staff and members to help guide the efforts of the PAC to be as effective as possible. Officers include Jennifer Case, chair, New Leaf Biofuel; Ron Marr, vice chair, Minnesota Soybean Processors; Kirsten Skala, secretary, NBB; Donnell Rehagen, treasurer, NBB; Doug Whitehead, assistant treasurer, NBB; Denny Mauser, development officer, Western Iowa Energy LLC; and Tim Keaveney, assistant development officer, Hero BX. All members of NBB are eligible to become members of NBPAC and there are many ways to make contributions including one-time donations, participation in fundraising events, and even automatic monthly deductions. Additional information on how you can get involved and approval forms can be found at www.biodieselpac.org. While there is often a stigma attached to political giving in the media and pop culture, it is a vital component of the political process and we know for a fact that RFS opponents are not bashful about making donations to candidates who support their cause. We simply cannot afford to rely on our advocacy and grassroots efforts alone and must do everything we can to support our industry. Donnell Rehagen, Treasurer, National Biodiesel Political Action Committee

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NBB Biodiesel advocacy hits high gear as administration works to finalize RFS NBB has made it a top priority to work aggressively toward an improved standard for 2014 renewable fuel standard (RFS) volumes since the U.S. EPA announced the proposed RFS rule last fall. NBB conducted a series of high-level meetings with administration officials to convey the biodiesel message. This includes meetings with EPA Administrator Gina McCarthy, USDA Secretary Tom Vilsack, senior White House officials, the U.S. DOE, and others. While there was no confirmation on how the administration would ultimately decide the final rule, we know that a strong impression was made and the administration was forced to reconsider the initial November proposal. Nearly 120 biodiesel companies signed a letter to President Obama calling for a higher volume and nearly 100 Republicans and Democrats in Congress signed a letter or contacted the White House directly to advocate on our industry’s behalf. This is more support than we’ve ever had, and these lawmakers from across the country represent districts where the U.S biodiesel industry has a presence, and they highlight the political and geographic diversity of our industry that is among its greatest strengths. NBB rounded out the month of June with a strong finish to our earned media campaign designed to raise awareness of the impact

2014 RFS Advocacy and Earned Media Highlights

By the numbers: • More than two dozen local news outlets highlighting damage from RFS proposal • At least 100 stories in Washington, D.C., media, and other trade outlets • Nearly 50 letters/op-eds in recent months, including in Wall Street Journal, The Associated Press, Reuters, USA Today, Chicago Tribune, etc. • Additional op-eds/columns by third-party supporters • 120 industry signers on letter to President Obama • 100 bipartisan legislators contacted the White House on behalf of the industry

that the proposed EPA standard would have on the industry. In total, the effort saw nearly 200 stories, editorials, columns, and letters to the editor published in news outlets nationwide highlighting the need for a strong biodiesel RFS, including in the Wall Street Journal, Reuters, Politico, USA Today, The Seattle Times, The Associated Press, The Chicago Tribune, and many others. NBB would like to thank all biodiesel stakeholders and supporters who participated in the various advocacy campaigns. Collectively, we made a strong and compelling case for a strong, stable RFS.

States provide policy stability for biodiesel industry Minnesota and Iowa recently took steps in their already steadfast support of America’s advanced biofuel, biodiesel. With the uncertainty surrounding the federal biodiesel tax incentive and the renewable fuel standard (RFS) volumes, strong state biodiesel policies help stabilize the industry and provide a baseline for producers. Recently, Iowa Gov. Terry Branstad signed into law an extension of the state’s biodiesel producer incentive. “Iowa is a biofuels leader in this country and having states step to the plate with legislation supporting America’s advanced biofuel, biodiesel, is a win for our industry,” said Steven J. Levy, chairman of the National Biodiesel Board. “Our champions in Iowa have shown that hard work to grow this still-young industry pays off.” The legislation is an extension of the current biodiesel producer incentive that is structured as a 2-cent-per-gallon refundable credit for the first 25 million gallons produced at any single plant in the state. The incentive was set to expire at the end of this year but the extension now moves that through 2017. On July 1, Minnesota became the first state to move to B10 statewide in all diesel fuel.

“This sends a very important message that Minnesota remains a leader, because the state’s B2 mandate back in 2002 really jumpstarted the biodiesel industry nationwide,” said Ed Hegland, an Appleton, Minn., farmer and member of the NBB’s governing board. “Proving that a state can now go to B10 is a significant step in the right direction for renewable fuels.” The move is expected to take the state’s yearly biodiesel consumption from 40 to 60 MMgy. State biodiesel policies come in many forms across the country but regardless of their structure, they help provide a baseline of biodiesel demand on which the industry can build for future stability and growth. JULY | AUGUST 2014

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Senators highlight unstable policy climate at May press event A group of U.S. Senators came together with biodiesel producers and supporters in May calling on the administration to end policy uncertainty that is hurting the biodiesel industry by restoring a strong renewable fuel standard (RFS) and reinstating the biodiesel tax incentive. Led by Sen. Heidi Heitkamp, D-N.D., the group highlighted the results of the National Biodiesel Board’s biodiesel producer survey that showed significant negative impacts in the first part of 2014 due to unstable federal policy. The press event helped draw media attention to the administration’s proposed retreat on the RFS and included Heitkamp, Dick Durbin, D-Ill., Maria Cantwell, D-Wash., Amy Klobuchar, DMinn., Al Franken, D-Minn., and Joe Donnelly, D-Ind. Biodiesel industry representatives who participated included Jeff Haas, CEO of General Biodiesel in Seattle, Wayne Presby, owner of White Mountain Biodiesel in North Haverhill, N.H., Bryan Christjansen, general manager at Renewable Energy Group’s refineries in Albert Lea, Minn., and Mason City, Iowa, and Terry Goerger, a seed company owner and third-generation farmer from Mantador, N.D. Coverage of the event was extensive, including pieces by the Associated Press, Reuters, Roll Call, Politico, E&E News, The Seattle Times, and many more. Heitkamp said during the press event that the administration’s proposal and the loss of the tax incentive hurts her state’s agriculture sector as well as its production plant in Velva, N.D. “Biodiesel has an incredible success story to tell. Farmers in North Dakota and throughout the country are supporting good jobs, reducing our dependence on foreign oil, and boosting rural

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communities,” Heitkamp said. “But instead of promoting these successes, federal policies are dragging our farmers and producers down. That’s the wrong direction.” Following the press event, NBB’s vice president of federal affairs Anne Steckel echoed the senator’s thoughts. “Inconsistency in Washington is wreaking havoc on the U.S. biodiesel industry. It’s not just hurting these biodiesel producers. It is a setback for local economies where these plants operate, for our environment, for our national energy security, and for drivers who are tired of ever-increasing fuel prices that result from the petroleum industry’s monopoly at the pump.” The producer survey was conducted by NBB between April 14 and April 25 with 54 producers across the country participating. Of those surveyed, nearly all attributed the industry decline to the weak RFS proposal and the loss of the biodiesel tax incentive. April Biodiesel Producer Survey findings include: • 78 percent had reduced production vs. 2013. • 57 percent had idled production altogether or shut down a plant this year. • 66 percent had reduced workforce or anticipated reducing workforce. • 85 percent had delayed or canceled expansion plans. This was the first time NBB had used a survey of producer members to quantify industry effects of policy decisions and while the numbers weren’t good news, it did provide valuable information for the industry’s champions in the Senate to call on the administration for change.

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Next Generation Scientists program welcomes 3 new student leaders Three university students have been selected through a competitive process to help lead the Next Generation Scientists for Biodiesel program. First launched in 2010, the National Biodiesel Board program aims to educate young scientists with factual information about biodiesel. It has led to increased communication and collaboration between the biodiesel industry and colleges and universities involved in biodiesel research. “By engaging with student scientists, our industry has not only learned about their upcoming research, but has opened new lines of communication with their professors and university researchers as well,” said Don Scott, NBB’s director of sustainability. “The new co-chairs are passionate, energetic and innovative, and will do a great job taking this program to the next level.” The new co-chairs are: • James Anderson, Agricultural Sciences, Southern Illinois UniversityCarbondale. • Katharine Ann Heil, Electrical Engineering, University of Colorado at Boulder.

• Michael Morgan, Biochemistry, Utah State University. The new co-chairs replace three other students who have graduated from their studies. Dan Browne, a research assistant in the Department of Biochemistry and Biophysics at Texas A&M University, remains on the team as a co-chair. All of the co-chairs are already engaged in biodiesel-related research or education. Heil serves as director of the University of Colorado at Boulder’s CU Biodiesel club. The club is one of the larger and more established campus biodiesel organizations, and has a biodiesel-producing trailer named Ester, which hosts campus workshops and has a research component. “I believe that being a co-chair will give me the opportunity to continue to spread my knowledge and experience with other young scientists,” Heil said. “Biodiesel is an emerging fuel and in order for it to continue to grow, we must continue to inform others of its importance in society today.”

James Anderson, center, presents a poster at the National Biodiesel Conference & Expo.

Katharine Heil, left, discusses biodiesel with Monsanto's Beth Calabotta.

Save the date: 2015 National Biodiesel Conference & Expo Mark your calendar now for the biggest biodiesel event of the year—the National Biodiesel Conference & Expo to be held Jan. 19-22 at the Fort Worth, Texas, Convention Center. This annual event promises to be the most important ever. “By January, the industry will have received the EPA’s longawaited final volume proposal for the 2014 renewable fuel standard (RFS) and will be adapting to it—good or bad,” said Donnell Rehagen, NBB’s chief operating officer and conference director. “Coming together as an industry at the conference will be critical to charting our course for continued growth under the new rule.” Whether you’re a biodiesel producer, marketer, supplier, funder, retailer, researcher or student, you won’t want to miss the 2015 conference. The event offers trade show opportunities as well as rich content, inspiring speakers and numerous networking opportunities. “We tailor the format to facilitate as much networking as possible—both formal and informal,” Rehagen added. “We’re proud of the National Biodiesel Conference & Expo’s reputation as an event where business gets done.”

As in the past, the latest B20-approved diesel vehicles will be on display at the vehicle showcase and the Ride-n-Drive, where participants can get behind the wheel and go for a spin. Student scientists will again be invited to participate in the conference in an effort to foster collaboration and professional development opportunities for the future leaders of our industry. The United Soybean Board and state checkoff organizations will offer scholarships to bring Next Generation Scientists for Biodiesel to the conference where they will share their research in a breakout and/or poster session. Details on NGSB scholarships will be available this fall. The conference website, registration link and exhibitor prospectus are coming soon. Please check www.biodieselconference. org/2015 for details in the coming weeks. Additionally, NBB staff members are working on the program now. If you have ideas for breakout sessions or speakers, please contact Kaleb Little, klittle@ biodiesel.org in the NBB office.

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BusinessBriefs John Campbell, a former Deputy Undersecretary of Agriculture and a highly regarded 35-year veteran of renewable energy, agribusiness and policy, has joined Ocean Park Campbell Advisors, a corporate finance advisory firm. Based in Los Angeles, OPA is a leading advisor to biofuels and other agribusiness companies. Campbell will serve as managing director based in Omaha, Neb. His duties will be to broaden the company’s relationships, develop new business and help execute transactions. Campbell spent 21 years with Ag Processing Inc. (AGP) where he was an executive vice president responsible for leading the industrial products division. He is credited as being one of the driving forces behind the creation of the U.S. biodiesel industry. Under Campbell’s leadership, AGP constructed the first commercial-scale biodiesel plant in North America followed by numerous other expansions, projects and acquisitions.

Companies, Organizations & People in the News

WMG Services. Phibro Ethanol Performance Group is the exclusive marketer of Lactrol antimicrobial to the ethanol industry and HDI has been partnered with Phibro for commercializing the SPR to enhance yield.

Hydro Dynamics Inc. of Rome, Ga., announced that complete biodiesel plants incorporating its cavitation-based ShockWave Power Reactor are now available for the ethanol industry. In order to offer ethanol plants a seamless “bolt-on biodiesel” solution, HDI is expanding its existing relationships with World Energy of Boston and Phibro Ethanol Performance Group of Teaneck, N.J. HDI previously partnered with World Energy’s WMG Services business unit for sale of the SPR to the biodiesel industry. This new venture expands the cooperative offering to include not only the SPR, but complete plants designed by

Evonik Industries is investing in the Northville, Mich.-based algae technology startup, Algal Scientific Corp. Evonik is part of an investors’ consortium that is investing more than $3 million in a Series A financing round. Under the trade name Algamune, ASC markets 1,3-β-glucan, a polysaccharide that strengthens immune response. It is used as an additive in animal feeds and as a nutritional supplement, as well as in pharmaceutical formulations. According to Evonik, this is the first time it has been possible to obtain β-glucan from algae on an industrial scale. ASC has developed a new

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BUSINESSBRIEFS Sponsored by technology for this purpose and is in the process of starting up the first commercial production plant in Michigan. β-glucan is usually extracted from grain or produced using yeasts or fungi. ASC’s new biotechnological process needs fewer production steps while generating significantly higher yields.

Renewable Energy Group Inc.’s wholly owned subsidiary, REG Synthetic Fuels LLC, has closed acquisition of substantially all of the assets of Syntroleum Corp. Syntroleum advised REG in early June that a majority of its shareholders had voted to approve the asset sale to REG. Shortly after the Syntroleum stockholders’ meeting, officials from the two companies completed the transaction, which included the issuance of 3,493,613 shares of REG common stock to Syntroleum. The as-

sets acquired from Syntroleum include a 50 percent ownership interest in Dynamic Fuels LLC, which owns a 75 MMgy nameplate capacity renewable diesel biorefinery located in Geismar, La. REG has a separate pending agreement with Tyson Foods Inc. to acquire the remaining interests in Dynamic Fuels. Most of the employees at Syntroleum’s Tulsa, Okla., headquarters will join REG as part of the newly formed REG Synthetic Fuels. Methes Energies International Ltd. has received BQ-9000 Producer and Marketer status from the National Biodiesel Accreditation Commission. “We are very proud of this achievement,” says Nicholas Ng, president of Methes Energies. “There are not many companies that are both accredited as a producer and a marketer by the NBAC.” Prairie Horizon Agri-Energy is partnering with WB Services LLC to integrate a 3 MMgy renewable diesel production facility into its existing 40 MMgy ethanol plant. WB Services will design, construct and operate the

renewable diesel plant utilizing patented renewable diesel process technology. Ron Beemiller, president and CEO of WB Services, says, “This plant will be the first of its kind—the first renewable diesel plant to fully integrate into an existing ethanol operation.” In addition to renewable diesel, the new plant will produce denaturant, fuel gas and steam for use at the existing facility. Prairie Horizon Agri-Energy also has a significant investment in the renewable and biodiesel plants under construction by Green Energy Products in Sedgwick, Kan.

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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BIODIESEL LEADER: In 2006, fuel distributor Sprague Operating Resources LLC became the first petroleum company to earn the status of Certified Marketer in the BQ-9000 program. PHOTO: SPRAGUE OPERATING RESOURCES LLC

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DISTRIBUTION

US Biodiesel Supply Kings Leaders in U.S. biodiesel supply share their views on improvements, opportunities and challenges in the distribution system BY RON KOTRBA

The marked increase in U.S. biodiesel production over the past several years was made possible by producers who risk investment in expansion and growth after gauging existing public policy support and private demand. To move this increased product to market, an equally important wave of investment must be made in the supply chain. Biodiesel Magazine speaks with three leaders in the U.S. biodiesel distribution space about the growth and opportunities in biodiesel distribution, and the challenges that lie ahead. Demand for biodiesel has increased gradually over the past decade, initially as a result of its benefits in energy security, clean air, domestic job creation and federal legislation, according to Steven J. Levy, managing director of Sprague Operating Resources LLC. Levy is also chairman of the National Biodiesel Board. He shares his opinions on the U.S. biodiesel distribution chain, which may not represent those of Sprague Resources LP and its subsidiaries, or the NBB. As biodiesel began to make inroads throughout the country, there was a price premium to diesel for biodiesel where it was typically fleet users’ demand comprised mostly of government agencies, utilities and companies seeking to support energy independence and clean air policy. “Product was distributed in a decentralized system, via truck or rail, which was not cost-effective,” Levy says. “Fuel bulk terminal capacity was scarce, if at

all. Biodiesel blending was done loading a delivery truck with diesel and loading biodiesel from a transport or rail car on top of the distillate fuel or vice versa, of which the two product loadings could have been long distances apart.” Due to the lack of rack blending, Levy notes, there were issues with blends, especially during the winter months. “Over time and more recently, as demand grew with the instrumental addition of the federal tax credit, the renewable fuel standard (RFS), and some state and local legislation, we witnessed infrastructure investment,” he says. Expanded infrastructure, with additional storage facilities, increased railcar availability and transportation via barge, resulted in reduced costs and reduced risk of product outage. “Over the past several years as well, there has been an increase in biodiesel suppliers and retailers at all levels of the supply chain, national, regional and local, investing in infrastructure and increased inventory capacity.” This resulted in increased local inventories and biodiesel being more widely available. An additional result is the multitude of various pricing mechanism strategies affording resellers and end users pricing options, Levy explains. Ultimately, there are several factors that have contributed, and continue to contribute, to the growth of the biodiesel industry. The first factor is the fuel quality acceptance of biodiesel by the petroleum industry, says Michael Devine, Amerigreen Energy Inc.’s New England sales and marketing consultant. “Many, if not a large majority of, petroleum marketers are not going to risk any fuel quality issues with their ratable customers,” JULY | AUGUST 2014

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Sprague

Sprague Operating Resources LLC is a subsidiary of Sprague Resources LP, with corporate headquarters located in Portsmouth, N.H. Spragueâ&#x20AC;&#x2122;s predecessor was founded in 1870 and supplied customers with coal delivered on its own fleet of vessels. The company gradually transitioned its offerings to include all traditional petroleum-based fuels including transportation and heating fuels, gasoline, clean fuels such as biodiesel, and finally natural gas, while acquiring terminal facilities throughout the Northeast. Sprague is one of the largest wholesale distributors of refined products in the Northeast U.S. based on aggregate terminal capacity. It owns and/or controls a network of 16 refined products and materials handling terminals with a combined storage capacity of approximately 10.2 million barrels for refined products and other liquid materials. Sprague sells and distributes refined products through approximately 60 third-party terminals. Within this network, Sprague blends biodiesel at several locations, which supports a wide offering of bio-blended distillate products for customers at the rack or on a delivered basis. Notably, Sprague was the first company to commercially supply ultralow sulfur diesel and in 2006 became the first petroleum company to earn the status of Certified Marketer in the BQ-9000 program.

Devine says. â&#x20AC;&#x153;Second would be the entrepreneurial opportunity for petroleum marketers to diversify their fuels products with a cost-effective, high-quality renewable fuels offering to the diesel and heating oil markets.â&#x20AC;? Finally, like Levy, Devine says the growth of U.S. biodiesel distribution is attributable to the successful implementation of the RFS and the biodiesel federal blenders tax credit. â&#x20AC;&#x153;These programs have created a competitive market environment where biodiesel makes sense to blend for the downstream distributor, from an economic standpoint,â&#x20AC;? Devine says. Increased demand for clean fuels along with strong energy policies played key roles in stimulating infrastructure investment. Companies and government agencies were demanding biodiesel for its environmental benefits. While RFS and the biodiesel tax incentive have been particularly important, state policies such as the Minnesota requirementâ&#x20AC;&#x201D;which, on July 1, was the first U.S. state to jump to 10 percentâ&#x20AC;&#x201D;New York Cityâ&#x20AC;&#x2122;s BioHeat program and Californiaâ&#x20AC;&#x2122;s low carbon fuel standard have also triggered investment. â&#x20AC;&#x153;These policies were, and continue to be, crucial to expand biodiesel use in the U.S.,â&#x20AC;? Levy says. Being a market leader with a history of introducing new cleaner fuels and programs into the marketplace, Sprague invested in biodiesel as it saw the opportunity to be one of the first suppliers of the clean-burning, sustainable fuel. â&#x20AC;&#x153;We are proud of the role that Sprague has played in the biodiesel industry from beginning to sell biodiesel in the early 2000s, to becoming the first recognized BQ9000-certified marketer, to today becoming one of the leading sup-

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Amerigreen

Amerigreen was born out of the retail and commercial fuel industry. Its founders embraced biodiesel early on and were committed to making it a focal point of their business. At the time, the state of biodiesel distribution and logistics were cost-prohibitive to splash blend. Amerigreen sought a more efficient, effective way to obtain varying blends of biodiesel for both heating oil and diesel fuel. This system provided other distributors easy access to biodiesel blends and so began the journey and trajectory of Amerigreen. In 2005, the company started by installing the first biodiesel blending system on the East Coast at a pipeline terminal near Harrisburg, Pa. It has grown from a solely biodiesel wholesaler in central Pennsylvania to a total energy wholesaler. The challenges fuel companies face, while with some differences, are largely similar, and leveraging lessons learned and common opportunities have allowed Amerigreen to act as a conduit and resource for companies seeking those best practices. Amerigreen works with those companies to develop an adaptive strategy to help them build towards a more sustainable business model. Amerigreen has grown its portfolio to complement fuel with marketing and hedging services. The firm is proud that its customers and the market have responded so favorably, allowing Amerigreen to grow to serve New England and the Mid-Atlantic. Amerigreen works with distributors to leverage best practices and lessons learned to help them be successful. The company remains true to its vision―Amerigreen succeeds when its distributors succeed; and everything the company does is aimed at helping its distributors succeed.

pliers of biodiesel in the Northeast,” Levy says. Sprague has also played an important industry role by participating in many industry associations, as well as developing biodiesel use and education through its broad customer base including wholesalers, government, utility and private company users. “What is truly remarkable about our country is when opportunity knocks, people will invest and begin new businesses,” Levy tells Biodiesel Magazine. “The growth of this new industry is directly attributable to the opportunity created in industries that saw the biodiesel potential, coupled with government policy to assist a startup industry while affording many businesses to be on the right side of environmentalism.” The aforementioned policy incentives on the state and federal level have been key, but Levy adds that the NBB industry leadership was equally important to the industry’s success in order to facilitate education, product quality standards and demonstration projects proving the uniqueness and use of the product. “Once established, entities nationwide—both household names and small individual businesses—were established to produce biodiesel to help our country reduce emissions and become more sustainable and energy inde-

pendent, while also resulting in critical job creation and putting people to work,” Levy says. “Today the success of biodiesel is attributed to the individual companies, both large and small and not necessarily a producer, marketer or retailer, or one company or business segment. They are also terminal operators, equipment manufacturers, transporters and used oil and grease collectors, to name just a few.” Steve McCracken, president of Amerigreen, says his company recognized a gap between the biodiesel producer and the downstream petroleum marketer through to the consumer. “Connecting these dots throughout the supply chain has created a sustainable business plan for our distributors, which makes the process of marketing and distributing biodiesel an easier integration,” McCracken tells Biodiesel Magazine. “Our model continues to improve as our distributor base continues to grow. We customize each relationship around the current model of each distributor, and ultimately the success comes through understanding the logistics and market opportunities of the individual distributor and applying the Amerigreen lessons learned through our own experiences with our own customers.”

Challenges Back in the early 2000s, biodiesel may not have been ready for “primetime,” as Levy says, due to the product quality issues in producing, transporting and blending biodiesel. “This is not true anymore,” he says. “Biodiesel is a premium, consistent high-quality product when purchased and blended from a reputable source. Over the years, the majority of producers have become accredited by the BQ9000 program.” Furthermore, ASTM standards have improved to correct early quality issues experienced in the field. While quality may no longer be an issue—a big accomplishment of which the industry should be proud—other challenges to the distribution system exist. For the past several years, the biodiesel industry has been railcar constrained for a number of reasons, including growth in domestic energy production, thanks first to a boom in the ethanol industry and, more recently, because of the significant exploitation of shale oil in the Bakken and other regions. What this has traditionally meant, according to Targray President Andrew Richardson, is that producers with railcars would sell until they ran out of railcar capacity. Then they would switch to selling by truck to cost-effectively serve only the local markets. “This situation leaves value on the table at both ends of the supply chain,” Richardson tells Biodiesel Magazine. “Producers are unable to access higher-priced markets and buyers in remote markets may go without product, or have very few choices.” Levy says the issue of railcar supply shortages more recently became apparent after the coldest, longest winter experienced in the U.S. in a long time. “Railcars at times were extremely delayed or could not be located,” Levy says. “This seemed to be more prevalent on the coasts. If it weren’t for imports and increased biodiesel inventory at the expanded storage terminals, this could have been a supply issue.” Targray has deployed a biodiesel-specific fleet of railcars to add value and improve logistics in the business. “We’ve worked with producers who had never shipped a gallon by rail before and have completely changed their business and target markets by spotting Targray railcars at their plant,” Richardson says. “This is the defini-

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DISTRIBUTION tion of value creation.” At the end of 2013, Targray had more than 60 dedicated railcars under service. “With railcar lead times in the 12 to 24 month range, this represents a sizable investment in the future of the biodiesel business,” he says. Richardson says Targray is adding cars at a rate of about 40 per year for the next several years. “Operating a dedicated fleet allows us to create new value for both producers and customers in the bio space,” he says. “This results in increased competitiveness for the fuel buyer.” In 2014, Targray began holding inven-

tory in California to serve its customers. “Some of our customers needed more ratability than railcar deliveries could provide, so holding this was the natural next step for us in creating value for our customers,” says Richardson. “Holding 400,000-plus gallons of inventory is a large investment, but it allows us to effectively serve a new segment of the business.” The Bakersfield, Calif., location was selected due to its ability to serve both the northern and the southern portions of the state. Today, infrastructure investment expan-

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Targray

Targray is a global marketing and trading organization. As a global player trading several commodities, Targray solar PV and biofuels trading activity is driving efficiency in those supply chains. Targray has been in business for 25 years and has grown consistently by serving large customers globally. When Targray entered the biodiesel business several years ago, it did so knowing that it needed to create value in the market in order to be allowed to exist in the supply chain. Targray value creation in biodiesel centers around three key pillars: logistics, inventory and reputation. Targray's presence in the market helps improve the efficiency of the biodiesel supply chain. The company is committed to the biodiesel space and is continuing to invest. Earlier this year, Targray began offering biodiesel in Bakersfield, Calif., and in June the firm announced it has achieved BQ-9000 Marketer certification.

sion and improvements have slowed due to the uncertainty of the tax credit and the RFS. Both of these policies are essential for continued growth and stability to incentivize more companies to continue to invest in distribution and blending infrastructure, according to Levy, to reduce costs and make biodiesel competitive economically. “The major obstacle is instability, stemming from policy uncertainty,” Levy says. “And unfortunately that instability creates something of a vicious cycle that ultimately makes biodiesel more difficult and costly to distribute, and therefore less competitive with petroleum. Quite simply, in addition to other segments of the industry, oil companies have not yet seen a compelling reason to

DISTRIBUTION invest the time and resources into expanded biodiesel infrastructure because policies vacillate so much from year to year. We finally were starting to have some stability around the RFS, for example, until the EPA released this curveball proposal in November that would significantly cut biodiesel production in the U.S. The entire industry simply won’t invest when they see that type of uncertainty.” An additional challenge is biodiesel’s acceptance by pipeline companies, Levy says. It has been tested by many pipelines and it is now being determined what the allowable limits will be to transport biodiesel on pipelines that also carry jet fuel. The outcome on that issue could significantly improve distribution and afford improved economics. “Biodiesel is still a young industry and, to some, a boutique fuel,” Levy says. “Although it has grown immensely, there are suppliers who treat biodiesel as a traditional fuel relating to supply, distribution and blending. There are certain handling guidelines to follow and until biodiesel becomes an even more stable industry, suppliers should have quality control practices in place.” One challenge, Levy adds, is to be sure everyone in the supply chain is receiving the biodiesel content in the distillate fuel they desire. “Whether there is no biodiesel content so they may blend to their desired level, or a percentage they can verify should they decide to blend to a higher blend level, ongoing testing is a prerequisite,” he says. Another key component for the future is that the public and policy makers continue to be educated about the use and benefits of biodiesel. Levy says this includes NBB’s valuable educational programs and demonstration projects to further the expansion of biodiesel in OEMs and also to educate policy makers and users about the benefits and advantages of biodiesel and Bioheat. “I firmly believe that if the National Biodiesel Board was not leading the industry, we would not be where we are today as the only commercial-scale advanced biofuel produced nationwide,” Levy says. In the biodiesel space, customer and suppliers want to do business with counterparties who do what they say they are go-

ing to do. “This has been one of the simple mantras for our business for the past 25 years,” Richardson says. “Our size as well as our experience selling to some of the largest companies on the globe has made us readily accepted as counterparty by both the large refiners and national blenders. The biodiesel business is a trust and reputation business, and Targray has been working hard to create value for our customers and suppliers.” Reputation is important, clearly, and keeping one’s word is critical to building trust and investment. Ultimately, the U.S. biodies-

el industry needs Congress and the White House to stand firmly behind strong energy policies that are in place, Levy says, so the fuels industry has some reasonable certainty of what the rules of the game will be and can make investments accordingly. These subject policies should be for multiyear periods, three to five years, to afford investors a degree of certainty in market dynamics. Author: Ron Kotrba Editor, Biodiesel Magazine 218-745-8347 rkotrba@bbiinternational.com

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BIG GREASY: Midlands Biofuels in Winnsboro, S.C., uses equipment such as the aptly named Big Greasy truck to service 13 biodiesel plants and waste oil processors in the Southeast. PHOTO: MIDLANDS BIOFUELS

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A Biodiesel Family Affair The Renwicks of South Carolina persevere through the biodiesel industry’s instability with ingenuity, passion and teamwork BY RON KOTRBA

What do an emergency room medical doctor, gardening and a community-scale biodiesel plant have in common? The answer is “Bio” Beth Renwick,

majority owner of Midlands Biofuels in Winnsboro, S.C. With production capacity less than 1 MMgy, big things are always happening at this small biodiesel processing facility in the Southeast. When the business started in 2008, Beth’s role was simply an investor—an investor in her husband “Bio” Joe Renwick’s 50/50 joint venture with former co-owner Brandon Spence. “After Brandon and Joe parted ways in Febru- Beth Renwick, majority owner, ary 2013, we had many conversations and looked Midlands Biofuels outwardly for other partners, investors and loans,” Beth says. “After the split, I assumed the role that Brandon’s wife, Becky, had performed—billing, invoicing, payroll, tax filings and anything that needed doing. As the inner workings of the business became clear, Joe and I were able to brainstorm together about all aspects of the company. Sometimes what you’re looking for is right in front of you. Fifty-one percent ownership was decided upon, and we are looking forward to the opportunities a woman-owned business may bring.” The couple met in Charlotte, N.C., in 2003, thanks to an introduction from a mutual friend with whom Joe attended The Citadel. “We caught up again in 2004 and were engaged in seven months,” Beth says. “We were married six months later [October 2005] in Charleston, S.C., my hometown, under live oak trees on the banks of the Ashley River beside The Citadel.” “After meeting briefly in Charlotte, a year passed and I happened to run into her at a local bar, which is now one of our accounts,” recalls Joe. “As soon as I recognized her, I walked up and I asked for her number. She said, ‘You don’t waste any time, do you?’ I replied, ‘I lost you once and I am not going to lose you again.’ Seven months later I asked for her hand and soon after we were married.” When they met, Joe owned a landscaping business and Beth was on her way to becoming a medical doctor. She received her medical education at University of South JULY | AUGUST 2014

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PROFILE Carolina School of Medicine, followed by a three-year emergency medicine residency at the Medical College of Georgia. Since July 2008, Beth has been practicing in the ER at Lexington Medical Center in West Columbia, S.C. In 2006, Joe began home-brewing biodiesel in their garage for his own use, after meeting Mat Davis, a resident with Beth at MCG, who first showed him how to make biodiesel. “Within 30 minutes of leaving his house, I was buying pipe fittings and valves,” Joe says. He built his own dual-reactor processor with stand pipes and wash/dry tanks

in addition to waste vegetable oil (WVO) processing tanks in the garage. “At first, I was cautious about a heated chemical reaction occurring in the homestead,” Beth says, “but I became a fan after we noticed the performance benefits in Joe’s truck.” One year and 10 50-gallon batches later, Joe showed former Citadel football teammate Spence his set-up, and within a few months they had secured $20,000 in angel funding and were off. “We started purchasing equipment, using credit cards and any money we could put together,” Joe says. “I even took a loan against my paid-off ‘03 Chevy diesel that started all this cra-

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