2024 Winter Biodiesel Magazine by BBI International

2024 Winter Edition

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ON A MISSION Mahoney Environmental’s UCO Collection Empire Page 20

Plus Green Energy Biofuel

Excels in Diversification Page 26

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CONTENTS 2024 WINTER ISSUE VOLUME 21 ISSUE 1

FEATURES

20 Full Circle UCO FEEDSTOCK

Neste-owned Mahoney Environmental collects and processes UCO from up to 80,000 businesses, sending it on to be used as a renewable fuel feedstock. BY ANNA SIMET

26 The Value in Diversification PROFILE

Continually embracing versatility since its 2007 inception as a biodiesel producer, Green Energy Biofuel has no intentions of stopping. BY KEITH LORIA

32 Minnesota: SAF Central SAF

Via new partnerships among several anchor companies, efforts are underway by to bring the first U.S. sustainable aviation fuel hub to Minnesota. BY ANNA SIMET

CONTRIBUTION DEPARTMENTS 5 Industry Events 6 Editor’s Note

36 MARINE Making the Case for Marine Biofuels

The maritime industry is taking a good look at renewable fuels, including biodiesel and renewable diesel. BY MICHAEL KASS

(Yellow) Grease is the Word BY ANNA SIMET

10 Industry News Roundup 12 Inside Clean Fuels Alliance America 16

SPOTLIGHT BDI - BIOENERGY INTERNATIONAL GMBH

Talking Feedstock BY BIODIESEL MAGAZINE STAFF

BIODIESEL MAGAZINE

2024 WINTER EDITION

Advertiser Index 40 2024 Biodiesel Summit 35 2024 North American SAF Conference 17 BDI - BioEnergy International GmbH 19 Carbis Solutions Group, LLC 38 Clariant Corp. 15 & 31 Clean Fuel Alliance America 3 Crown Global Companies-Crown Iron Works 25 Deep South Commodities, LLC 2 Desmet Ballestra North America 7 Filtration Technology Corporation 28 Helle Engineering, LLC 23 LEEM Filteration 5 PSC Group 30 Solutions 4 Manufacturing 29 WWS, Inc.

EVENTS 2024 International Biomass Conference & Expo

March 4-6, 2024

Greater Richmond Convention Center | Richmond, VA (866) 746-8385 | www.biomassconference.com 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.

2024 International Fuel Ethanol Workshop & Expo

June 10-12, 2024

Minneapolis Convention Center | Minneapolis, MN (866) 746-8385 | www.fuelethanolworkshop.com Celebrating its 40th year, the FEW provides the ethanol industry with cutting-edge content and unparalleled networking opportunities in a dynamic business-tobusiness environment. As the largest, longest running ethanol conference in the world, the FEW is renowned for its superb programming—powered by Ethanol Producer Magazine—that maintains a strong focus on commercialscale ethanol production, new technology, and near-term research and development. The event draws more than 2,000 people from over 31 countries and from nearly every ethanol plant in the United States and Canada.

2024 Carbon Capture & Storage Summit

June 10-12, 2024

Minneapolis Convention Center | Minneapolis, MN (866) 746-8385 | www.fuelethanolworkshop.com Capturing and storing carbon dioxide in underground wells has the potential to become the most consequential technological deployment in the history of the broader biofuels industry. Deploying effective carbon capture and storage at biofuels plants will cement ethanol and biodiesel as the lowest carbon liquid fuels commercially available in the marketplace. The Carbon Capture & Storage Summit will offer attendees a comprehensive look at the economics of carbon capture and storage, the infrastructure required to make it possible and the financial and marketplace impacts to participating producers.

2024 North American SAF Conference & Expo

September 11-12, 2024 Saint Paul RiverCentre | Saint Paul, MN (866) 746-8385 | www.safconference.com

The North American SAF Conference & Expo, produced by SAF Magazine, in collaboration with the Commercial Aviation Alternative Fuels Initiative (CAAFI) will showcase the latest strategies for aviation fuel decarbonization, solutions for key industry challenges, and highlight the current opportunities for airlines, corporations and fuel producers. The North American SAF Conference & Expo is designed to promote the development and adoption of practical solutions to produce SAF and decarbonize the aviation sector.

FROM BIOMASS TO BIOFUELS, WE’RE WITH YOU EVERY STEP OF THE WAY Whether it’s feedstock coming in or finished biofuels going out, PSC Group has the technical expertise and know-how to provide critical support for your renewable fuels operations. We offer: Unmatched Safety Performance & Culture PSC consistently delivers best-in-class operating performance with a TRIR 7-10x better than multiple industry averages 70+ Years of Industry Experience Unrivaled expertise in product handling and logistics 10+ Years of Hands-on Renewable Fuels Experience 70,000 feedstock and finished product transfers annually Unparalleled Start-up Support PSC’s start-up support and commissioning teams have extensive experience handling biomass feedstocks (tallow, fats, greases, corn oil, etc.) and will ensure a successful operation Our services include: • Feedstock Unloading • Finished Product Loading • Rail Switching • Industrial Cleaning • Tank Farm Operations • Facility Maintenance / I&E • Pre-treatment Unit Operations

www.pscgroup.com (225) 343-8262 www.BiodieselMagazine.com

EDITOR'S NOTE

(YELLOW) GREASE IS THE WORD

BiodieselMagazine.com

PUBLISHING & SALES Joe Bryan CEO jbryan@bbiinternational.com

Anna Simet Biodiesel Magazine

There’s a common thread in this issue of Biodiesel Magazine, and that’s the value, collection and use of the most sought-after feedstock for renewable diesel and sustainable aviation fuel: used cooking oil (UCO). But soybean oil is king for U.S. biodiesel production by a landslide, accounting for nearly 70% of feedstock inputs, according to the U.S. EIA. While we saw a pretty steady increase in the use of UCO for biodiesel for several years (40% from 2014 to 2017, or 10% of total biodiesel inputs) that number has decreased to around 7% of total feedstock inputs since then. Based on the incredible number of renewable diesel and SAF facilities that have been built, are under construction or planned, that’s likely to remain steady or decrease, for biodiesel inputs. Interestingly, the U.S. is seeing a surge in Chinese UCO imports. A few months ago, Reuters reported that beginning two months after the Inflation Reduction Act over a one-year period, China shipped nearly $390 million worth of UCO to the U.S. While cheaper, imported UCO is good for its buyers, it’s not so good for our domestic companies whose businesses center of collecting, processing and selling UCO to biofuel producers. In “Full Circle UCO” on page 20, I chat with Dave Kimball, president and CEO of Mahoney Environmental, which collects UCO from 70,000 to 80,000 restaurants and businesses. The company, owned by Neste as of March 2020, has been around for 70-plus years and has truly mastered what is a difficult and dirty job. During our discussion, Kimball told me the value of UCO has taken a considerable dip, on account of a surge of imports. While he is optimistic prices will rebound, it is yet another component of a complicated amalgamation of variables in this fastgrowing renewable diesel and SAF industry. Another one of our features, “The Value in Diversification” on page 26, details Green Energy Biofuel’s journey from a startup biodiesel company to a three-location grease collector/ processor, biofuel feedstock supplier, grease trap cleaner, food waste disposal and composting company. The latter is the latest add to the company’s portfolio; its food waste depackager allows GEB to process 30 tons of waste per hour, with its Warrenville, South Carolina, plant accepting waste by both rail and truck. CEO Joe Renwick told contributing writer Keith Loria that they were previously spending a remarkable $400,000 per year in landfill fees for disposal of the company’s solid waste. Shifting gears a bit, make sure you check out our page-36 contribution, written by Oakridge National Laboratory’s Michael Kass, that is focused on biofuel adoption in the marine industry. In the article, “Making the Case for Marine Biofuels,” Kass explores substituting heavy fuel oil with two possibilities—biodiesel and renewable diesel. I’ll end a note quoting Kass, which I think is relevant far beyond the marine industry when it comes to replacing fossil fuels with biofuels in the broader transportation industry: “…a multiplefuel strategy is needed based on regional legislative initiatives, economies and unique bioresources. It’s not a one-size-fits-all approach, and will likely mean a higher degree of fuel flexibility than what is currently available.”

Tom Bryan President tbryan@bbiinternational.com John Nelson Vice President of Operations/ Marketing & Sales jnelson@bbiinternational.com Anna Simet Editor asimet@bbiinternational.com Chip Shereck Senior Account Manager cshereck@bbiinternational.com Bob Brown Account Manager bbrown@bbiinternational.com Jessica Tiller Circulation Manager jtiller@bbiinternational.com Marla DeFoe Marketing & Advertising Manager mdefoe@bbiinternational.com ART Jaci Satterlund Vice President, Production & Design jsatterlund@bbiinternational.com Raquel Boushee Graphic Designer rboushee@bbiinternational.com

Subscriptions Subscriptions to Biodiesel Magazine are free of charge to everyone with the exception of a shipping and handling charge 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 asimet@bbiinternational. com.

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News Roundup

PHOTO: GULFSTREAM

Gulfstream Aerospace Corp. on Nov. 20 announced the successful completion of the world's first transatlantic flight using 100% sustainable aviation fuel (SAF). The Nov. 19 Gulfstream G600 aircraft departed the company's headquarters in Savannah and landed six hours, 56 minutes later at Farnborough Air-

port in England. It was powered by Pratt & Whitney PW815GA engines, both using 100% SAF that was produced by World Energy and delivered by World Fuel Services. It was comprised of 100% hydroprocessed esters and fatty acids.

Aemetis Inc. expects to secure the authority to construct air permit for its proposed SAF and renewable diesel project in early 2024, according to comments made by Chairman and CEO Eric McAfee during a third quarter earnings call held Nov. 9. McAfee also discussed the company’s biodiesel plant in India. He said that facility expanded to 60 MMgy earlier this year, and that Aemetis plans to expand it to 100 MMgy in 2025. The company also plans to export refined tallow from the India facility to renewable diesel producers in the U.S., he said.

Total operable biofuels capacity in the U.S. reached approx. 23.5 billion gallons per year in August, up 10 MMgy when compared to the previous month and up 2 billion gallons per year when compared to August of last year. Biodiesel capacity was at 2.08 billion gallons per year in August, a capacity level maintained from the previous month. When compared to August 2022, biodiesel capacity was down 12 MMgy. Capacity for renewable diesel and associated fuels, including renewable heating oil, renewable jet fuel, renewable naphtha, renewable gasoline and other biofuels and biointermediates, held steady at 3.704 billion gallons per year in August. When compared to the same month of last year, capacity for these fuels was up 1.485 billion gallons per year.

Conestoga Energy and SAFFiRE Renewables LLC announced an agreement for Conestoga to host SAFFiRE’s cellulosic ethanol pilot plant at its Arkalon Energy ethanol facility in Liberal, Kansas. The SAFFiRE pilot project aims to validate and demonstrate the commercialization of SAFFiRE’s corn-stover-to-ethanol technology in a fully integrated pilot facility that processes 10 tons of corn stover per day. The cellulosic ethanol from the SAFFiRE pilot project and potential future commercial facilities is planned to be upgraded to ultra-low CI SAF in support of the aviation industry’s decarbonization efforts. U.S. biofuels operable production capacity was up slightly in August compared to the month prior, with capacity for renewable diesel and associated fuels seeing a massive gain in a oneyear period, according to data released by the U.S. EIA.

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2024 WINTER EDITION

Neste has responded to a September USDA Biofuels Annual Report that suggests the company may have received fraudulent used cooking oil (UCO) volumes at its renewable products refinery in Singapore, specifically virgin palm oil from Indonesia exported fraudulently as UCO via China. In released statements, Neste said it takes suspected fraud cases seriously and investigates them accordingly. “In addition, the company continuously evaluates the quality and authenticity of the raw material volumes it receives, conducting thorough laboratory analyses of the samples of UCO volumes it receives to its terminals from China,” Neste said. “Neste’s recent analyses of UCO received

NEWS ROUNDUP¦

from China do not support the USDA’s assertions, hence the company believes that the reference to Neste in the USDA report is either a mistake or based on a misunderstanding.” Neste said it would contact the appropriate authorities at the USDA to discuss and learn more about the assertions in the report. Clean Fuels Alliance America has promoted Jeff Earl to director of state governmental affairs following the retirement of Floyd Vergara. Earl has been a valuable member of the Clean Fuels team for the past two years as director of state and regulatory affairs. In his new role, Earl will lead the organization’s efforts in advocating for enhanced state policies and initiatives Jeff Earl to meet the needs of a growing market for biodiesel, renewable diesel and SAF, overseeing a team of government relations specialists while engaging with policymakers at the state level to continue developing low-carbon

fuel programs and incentives that support homegrown production of clean fuels. CFAA also announced the strategic addition of Cory-Ann Wind. Wind, who has spent three decades at the forefront of environmental progress, will assume the director of state regulatory affairs role beginning Jan. 8, with a primary focus on the West Coast. Wind will continue advancing state and reCory-Ann Wind gional policy efforts for biodiesel, renewable diesel and SAF under the direction of Earl and alongside Steve Dodge, director of state regulatory affairs for the East Coast. Most recently, Wind served as the clean fuels program manager for the Oregon Department of Environmental Quality. In this role, she was responsible for developing and implementing Oregon’s Clean Fuel Program.

PHOTO: GLOBAL CLEAN ENERGY HOLDINGS

Global Clean Energy Holdings Inc. on Oct. 4 announced that its subsidiaries, Sustainable Oils Inc. and Camelina Company, worked with growers to contract a record 65,000 acres of camelina crop during the 2023 growing season. The total acreage comes from across the globe, including the western U.S., Argentina, France and Spain. Global Clean Energy’s camelina variety portfolio includes both spring and winter varieties, allowing camelina’s introduction as an intermediate crop in different crop rotations and geographies. In the U.S., Sustainable Oils produces camelina mostly as a spring crop, replacing fallow land in cereal-fallow rotations in the North-

ern Plains and Pacific Northwest. In the High Plains of the U.S. and in South America, camelina is grown as a winter crop with opportunities for double cropping with soybeans, late corn or sorghum. Camelina Company is testing camelina as a summer crop in Europe, following a cereal or pulse harvest. Sustainable Oils’ farmers also experienced record camelina yields this year, reaching up to 1,900 pounds per acre. As Global Clean Energy’s new, higher-yielding varieties become commercially available in 2024, the company believes that camelina planted next year may surpass 2023 results.

www.BiodieselMagazine.com

News Roundup

IMAGE: MONTANA RENEWABLES

Officials at Calumet Specialty Products Partners L.P. recently discussed the company’s proposed plans to boost SAF production at its Montana Renewables biorefinery. Calumet first announced plans to produce renewable fuels at its existing refinery in Great Falls, Montana, in February 2021, by reconfiguring its oversized hydrocracker to process up to 15,000 barrels per day of renewable feedstocks, producing renewable diesel and SAF. In late December 2022, the company reported the biorefinery had generated a full month of on-spec renewable diesel and had commenced rail shipments of the product. At that time, the biorefinery had the capacity to produce 6,000 barrels per day, scheduled to increase to 12,000 barrels per day following the commissioning of renewable hydrogen, SAF and feedstock pretreatment systems in early 2023. Those systems became operational earlier this year.

Current SAF capacity is in the range of 2,000 to 4,000 barrels per day, but Calumet is considering a plan, referred to as MaxSAF, that would boost total capacity to 18,000 barrels per day, including 15,000 barrels per day of SAF. Louis Todd Borgmann, CEO of Calumet, confirmed during the company's third quarter earnings call that Calumet is continuing to progress engineering around its proposed MaxSAF project and has narrowed the field to a short final list of technology providers and general contractors. He said the company is in the final stage of the application process to secure a loan guarantee from the U.S. DOE and expects to be in a position to fully launch the MaxSAF project as soon as it secures DOE approval.

Clean Fuels Alliance America, the American Soybean Association, the National Oilseed Processors Association the U.S. Canola Association are urging the Biden administration to adopt the U.S. DOE's GREET model to calculate greenhouse gas (GHG) reductions for the SAF tax credit. This fall, the groups sent a letter to John Podesta, senior advisor to the president for clean energy innovation and implementation, calling for the U.S. Department of Treasury to adopt GREET for the proposes of calculating GHG emissions reductions under the SAF tax credit, which was created by the Inflation Reduction Act. The law creating the SAF tax credit includes language specifying that the

GHG reduction of the fuel is to be calculated with “the most recent Carbon Offsetting and Reduction Scheme for International Aviation, which has been adopted by the International Civil Aviation Organization,” or a similar methodology. Representatives of the U.S. biofuel and agricultural industries have been urging Treasury to adopt GREET as a methodology to calculate GHG emissions reductions for the purposes of the SAF tax credit, noting it most accurately reflects current U.S. agricultural practices. In their letter, Clean Fuels, ASA, NOPA and U.S. Canola point to flaws in the ICAO model and explain that failure to adopt GREET as an alternative model will chill investment in the U.S.

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NEWS ROUNDUP¦

biofuels industry. They stress that the ICAO model uses old, inaccurate data on farming practices that would effectively prevent SAF made from crops from qualifying for the tax credit, working against the goals of the Biden administration’s SAF Grand Challenge. The World Trade Organization’s Dispute Settlement Body on Nov. 27 agreed to a request submitted by Indonesia to establish a dispute panel to review countervailing duties imposed by the European Union on imports of biodiesel from Indonesia. The EU in August 2023 opened an investigation into whether Indonesia has circumvented EU countervailing duties on imports of biodiesel originating in the country by routing the fuel through China and the U.K. The request was triggered by a request made by the European Biodiesel Board on July 4. Indonesia has submitted two requests seeking the establishment of a panel to determine whether the countervailing duties are in line with WTO rules. According to information posted to the WTO website, the EU said it was not in a position to agree to Indonesia’s first quest at a DSB meeting on Oct. 26. Indoenesia reiterated its right to protect its national interests and urged the EU to bring its measures into conformity with WTO provisions. According to the WTO, the EU said it believes the measures at stake are fully justified and is confident its measures will be declared in line with WTO law. The DSB has now agreed to establish the panel and the U.S., U.K., Norway, Russian Federation, Thailand, Singapore, Japan, Canada, China, Argentina, and Turkey reserved their third-party rights to participate in the panel proceedings.

Environment and Climate Change Canada has acknowledged that U.S. feedstocks are in compliances with the land use and biodiversity (LUB) criteria included under the country’s Clean Fuel Regulation, according to a report filed with the USDA Foreign Agricultural Service’s Global Agricultural Information Network on Nov. 15. According to the report, the ECCC on Nov. 9 publicly announced that it has approved the U.S. application for legislative recognition, which demonstrates that U.S. feedstock is in compliance with the CFR’s LUB criteria. The acceptance of that application ensures that U.S. biodiesel and ethanol exports to Canada as well as U.S. biofuel feedstock exports to Canada will not be hindered under the CFR’s LUB criteria. The report explains that without legislative recognition, individual farmers or states would have had to provide their own compliance as of Jan. 1. Canada’s CFR became law in July 2022. The program requires liquid fossil fuel suppliers to gradually reduce the carbon intensity (CI) of the fuels they produce and sell for use in Canada, targeting a 15 percent reduction when compared to a 2016 baseline by 2030.

Honeywell announced that CVR Renewables CVL LLC, a subsidiary of CVR Energy Inc., will utilize Honeywell’s Ecofining technology in its evaluation of a potential project to produce biofuels from feedstocks such as distillers corn IMAGE: ROLLS-ROYCE oil, at its facility in Coffeyville, Kansas, or in the surrounding area. The potential new Ecofining plant is being designed to convert apRolls-Royce has successfully completed compatibility proximately 30,000 barrels per day of feedstock to SAF, renewable testing of 100% SAF on all its in-production civil aero engine diesel and other products. types. This fulfills a commitment, made in 2021, to demonstrate there are no engine technology barriers to the use of 100% SAF. Santa Maria Renewable Resources has selected Topsoe A ground test on a BR710 business jet engine at the company’s as its technology provider for its renewable diesel and SAF facility in Canada completed the test regime. Other engines tested plant under development in east Texas, and has executed license as part of the program were: Trent 700, Trent 800, Trent 900, Trent and engineering agreements. The facility will provide 600 to 700 1000, Trent XWB-84, Trent XWB-97, Trent 7000, BR725, Pearl construction jobs and 300-plus permanent operating employment 700, Pearl 15 and Pearl 10X. positions, according to SMRR. A daily output of up to 3,000 barTesting has involved a variety of ground and flight tests to rels per stream per day is expected, encompassing both renewable replicate in-service conditions. All the tests confirmed the use of diesel and SAF. Additionally, SMRR has partnered with Chemex 100% SAF does not affect engine performance. Rolls-Royce has Global, a wholly-owned subsidiary of The Shaw Group, to com- already ensured its new generation UltraFan engine demonstrator mence the front-end engineering design for the facility. has the same capability.

www.BiodieselMagazine.com

Clean Fuels Conference to Spotlight Industry Growth

Donnell Rehagen, CEO, Clean Fuels Alliance America

The clean fuels industry has witnessed significant growth in recent years, driven by a global push toward reducing carbon emissions and promoting environmental sustainability. This growth is being propelled by increasing investments, technological advancements, policy and a growing awareness of the need for low-carbon alternatives. The exponential growth of renewable diesel and sustainable aviation fuel (SAF) is only just the beginning, and biodiesel, despite being a mature industry now, has the opportunity to unlock substantial new markets in the near future. A rich lineup of top-notch experts will delve into the issues shaping the clean fuels landscape during the Clean Fuels Conference in Fort Worth, Texas, Feb. 5-8. Attendees can expect to gain strategic insights into navigating the evolving clean fuels market and capitalize on emerging opportunities. Clean Fuels Conference featured speakers include: • PepsiCo VP & Chief Sustainability Officer, David Allen • American Airlines VP Sustainability, Jill Blickstein • Optimus Technologies CEO, Colin Huwyler

• BNSF Railway VP Agricultural Products, Angela Caddell • Darling Ingredients CEO, Randall C. Stuewe • United Soybean Board VP Marketing, John Jansen Distinguished speakers will discuss topics including the exploration of new markets, the impact of federal and state policies on clean fuel adoption, corporate commitments to sustainability, and advancements in greenhouse gas accounting. Attendees include clean fuels producers and marketers, distributors, feedstock providers, fleet managers, original equipment manufacturers (OEMs), environmental, social and governance officers and members of the media. We have much to discuss as our fuels gain the recognition they deserve as the single, best way to decarbonize the liquid transportation industry with today’s technology. With a focus on collaboration and knowledge-sharing, the Clean Fuels Conference is poised to be a landmark event in the journey to net zero. Donnell Rehagen CEO, Clean Fuels Alliance America CleanFuels.org

Breaking the Barrier: Advancements in Biodiesel Pave the Way for Higher Blend Approval In the ever-evolving landscape of renewable energy, biodiesel continues to play a crucial role in the transition toward net-zero carbon emissions. Recent technical updates in the biodiesel industry have introduced specifications aimed at enhancing performance, addressing Scott Fenwick cold weather challenges and expanding the scope of biodiesel blends. These advancements reinforce the growing acceptance of biodiesel as a promising solution to reach carbon reduction goals from OEMs with higher blend use on the horizon. A common challenge for all diesel fuels this time of year is their susceptibility to cold weather conditions. To address this concern, the industry is continuously studying cold flow operability to help biodiesel users properly maintain their equipment year-round. With support from 12

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Clean Fuels Alliance America, the National Renewable Energy Laboratory recently released its most current set of guidelines for biodiesel in the sixth edition of the Biodiesel Handling and Use Guide. The guide outlines key low-temperature performance metrics such as cloud point, cold filter plugging point and pour point, and highlights solutions to ensure a smooth transition for biodiesel use in the winter months. While seasonal blending and proper storage and handling can help improve startup, the introduction of sophisticated additives can alter the properties of diesel fuel, including biodiesel, to prevent gelling and wax crystallization at low temperatures. Clariant, the leading provider of cold flow additives for middle-distillate fuels, is in the final development stages of an additive that will provide the same operability you can expect from winterized diesel fuel, even for blends up to B50 (50% biodiesel).

INSIDE CLEAN FUELS ALLIANCE AMERICA In addition to recent developments for cold flow operability, revisions to ASTM D6751, the Standard Specification for Biodiesel Fuel Blendstock (B100) for Middle Distillate Fuels, included lowering the allowable metals limit to support the use of higher blends in today’s after-treatment systems. These adjustments led to optimal results in the sixth annual Assessment of BQ-9000 Biodiesel Properties quality report, proving that today’s biodiesel meets these tighter limits, and indicating that the overall quality of biodiesel well exceeds the minimum ASTM requirements. These changes have also led to discussions regarding blend specifications and limits for blends above 20%, including B100 (or 100% biodiesel) for use as a finished fuel.

OEMs play a crucial role in influencing the widespread adoption of biodiesel blends, including engine manufacturers for railroad and marine applications. These developments have led to several OEMs granting approvals for higher biodiesel blends, signaling a shift toward greater acceptance of renewable fuels. Higher blend approvals not only expand the market for biodiesel, but also underscore the industry's commitment to meeting stringent emissions standards and reducing the environmental impact of conventional diesel fuels. As these advancements continue to shape the biodiesel landscape, the industry is poised for further growth and innovation.

Carbon Policies Amplify Market Growth for Clean Fuels With a continual shift toward energy diversity and sustainability, the focus on decarbonizing the transportation sector has intensified. Lawmakers at the state and federal level are repeatedly turning their attention toward renewable fuels made from agricultural feedstocks Jeff Earl including soybean oil, animal fats and used cooking oil as a means to meet carbon reduction goals. Renewable fuel programs now cover nearly every corner of the U.S., playing a crucial role in shaping the landscape for low-carbon liquid fuels and amplifying demand in an already growing market for biodiesel, renewable diesel and sustainable aviation fuel (SAF). Across the Midwest, biodiesel initiatives continue to drive investments in feedstock availability and clean fuel production. Nebraska gave final approval on new incentives for the sale of biodiesel, while earlierthan-expected adoption of Iowa’s B30 incentive is signaling increasing demand for higher blends. Michigan and Indiana have also made significant progress on new programs that will promote the production and use of biodiesel and renewable diesel for emerging markets such as rail and marine. The West Coast continues to pace the industry for market opportunities for both biodiesel and renewable diesel, which now comprise nearly 60% of California’s diesel pool, according to the latest data released by the California Air and Resources Board. In 2023, biomass-based diesel in Oregon is forecasted to grow by over 112 million gallons, accounting for about 14.5% of the state’s diesel pool and 42% of the Clean Fuel Program credits. First quarter data from the Washington Clean Fuel Standard follows a similar cadence with biomass-based diesel contributing around

22% of the credits generated by the program. Biodiesel and renewable diesel still remain the single largest source of greenhouse gas reductions for all three West Coast programs. On the East Coast, the second-largest market for biomass-based diesel, over a half-dozen states are implementing or studying low-carbon fuel programs. New York, in particular New York City, continues to lead these efforts to develop new initiatives for decarbonizing some of the largest fleets in the U.S. The Vermont Legislature passed the Affordable Heat Act, similar to California’s Low Carbon Fuel Standard, which will help in the transition from fossil fuel-based heating oil to Bioheat fuel, a readily available, low-carbon heating oil that can be used in existing applications. Several Northeast states have already adopted Bioheat fuel mandates, providing a seamless transition from traditional liquid fuels. While state policies play a pivotal role in promoting the production and use of biodiesel, renewable diesel and SAF, challenges persist. Harmonizing regulations and incentives at the federal or regional level could streamline the adoption of these alternative fuels, providing a more consistent framework for stakeholders. Additionally, continued investment in research and development is essential to driving down production costs and enhancing fuel efficiency. States can play a crucial role in supporting innovation through grants, research partnerships and infrastructure development. Our industry is currently in a unique position, possessing the technology, infrastructure and product availability to meet the growing demand to reduce carbon emissions from hard-to-electrify sectors while helping both the public and private sector meet sustainability goals. Clean fuels are the only viable option that can do this quickly and efficiently. www.BiodieselMagazine.com

INSIDE CLEAN FUELS ALLIANCE AMERICA Clean Fuels Advocates for Consistent Use of GREET Model In the Inflation Reduction Act adopted in October 2022, Congress revamped an existing tax incentive to support sustainable aviation fuel (SAF) blending in 2023 and 2024. As of December 2023, unfortunately, the Internal Revenue Service had not finalized guidance on how to calculate the credit. Paul Winters The value of the credit is tied to the assessed lifecycle carbon score of the fuel, with the policy designed to provide the highest incentives to the lowest carbon fuels. Still at issue is whether U.S. SAF producers and blenders will be able to use the gold standard model for lifecycle assessment. The law allows the U.S. Treasury and individual taxpayers to use the International Civil Aviation Organization’s Carbon Offsetting and Reduction Scheme for International Aviation, or a similar model, to calculate carbon reductions. Some U.S. SAF producers have already certified their fuels under the ICAO system. But most U.S. fuel producers and regulators are experienced with Argonne National Laboratory’s Greenhouse gases, Regulated Emissions and Energy use in Technologies (GREET) model and want to see the IRS specifically allow use of that model. The GREET model is updated regularly and incorporates real-world production data. It is already used in fuel regulations and is specified for use in calculating other tax incentives established in the 2022 IRA. Clean Fuels has worked with Argonne to provide industry data and consistently advocates use of this U.S. federal model as a basis for domestic policy. The delay in IRS guidance leaves industry with uncertainty on how to calculate 2023 taxes and plan for 2024 production, feedstocks and blending. Clean Fuels has also worked with the Fuels America coalition to advocate a consistent definition of SAF across federal policies. The definition would specify use of the GREET model as the lifecycle reduction yardstick. It would also exclude coprocessing of petroleum with fats, oils and greases as existing tax incentives do. The IRA established a Defense Department program to develop a SAF pilot production plant. In the FY 2024 National Defense Authorization Act, both the U.S. House and Senate agreed to adopt the

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definition of SAF outlined in the tax incentive. In November, Rep. Max Miller (R-Ohio) introduced the Farm to Fly Act, which would ensure that USDA energy programs utilized the same SAF definition. And Clean Fuels worked with members of Congress to ensure the FY 2024 Federal Aviation Administration reauthorization adopts the same definition for all federal aviation policies. As of December 2023, the expiring Farm Bill programs were reauthorized for one year, but many FY 2024 spending authorization bills were extended only through the first months of the year. RFS Volumes Trigger the RIN Cliff This past June, the U.S. EPA finalized long-overdue Renewable Fuel Standard renewable volume obligations (RVOs) for 2023, 2024 and 2025. The agency provided minimal growth for biomass-based diesel over the three years, ignoring the ramp up of renewable diesel capacity already evident in the first six months of 2023. As analysts predicted, renewable identification number (RIN) values fell in September. The U.S. Energy Information Administration noted that the price drop resulted from RVOs “set significantly lower than production trends, meaning it will be easy for the industry to meet the RVOs.” In the final months of 2023 and first quarter of 2024, however, there are a series of RVO deadlines that could shore up demand for RINs. In conjunction with the final RFS rule for 2020-'22, EPA denied all small refinery exemptions pending from 2020. Due to the delay in addressing the petitions, EPA established an alternative compliance plan and allowed refiners to use 2023 and 2024 RINs. The final deadline for this RVO— estimated to be 870 million RINs—is February 1. The volumes for 2020-'22 and for 2023-'25 also include 250 millionRIN supplemental obligations that address the outcome of the Americans for Clean Energy lawsuit decided in 2017. EPA anticipates that biomass-based diesel RINs will be used to meet these supplemental RVOs when they are settled in December 2023 and March 2024. Clean Fuels has intervened in pending litigation over the RFS RVOs for 2020-'22 and for 2023-'25 to ensure that the biodiesel, renewable diesel and sustainable aviation fuel industry’s interests are represented.

GET EXPERT INSIGHT AT THE CLEAN FUELS CONFERENCE The 2024 Clean Fuels Conference features a lineup of top-notch experts who are ready to dig into the pressing issues of clean fuels, including:

• BNSF Railway VP Agricultural Products, Angela Caddell • PepsiCo VP & Chief Sustainability Officer, David Allen • American Airlines Vice President of Sustainability, Jill Blickstein • Optimus Technologies CEO, Colin Huwyler • Darling Ingredients CEO, Randall C. Stuewe

Funded by the United Soybean Board Checkoff.

SPOTLIGHT BDI-BIOENERGY INTERNATIONAL GMBH

Talking Feedstock BDI-BioEnergy International’s Hermann Stockinger chats with Biodiesel Magazine about global feedstock trends, dynamics and observations. With projected demand for biofuels soaring and project developers feverishly working to answer the call, the need for feedstock has never been greater. However, these needs vary greatly according to a number of factors, an overarching one being location and what the country’s policy requirements are in order for the fuel to meet qualifications. The U.S., Europe, Asia and South America all differ, points out Hermann Stockinger, director of customer relations at Austria-based BDI-BioEnergy International. BDI is a global leader in biodiesel plant construction, having completed more than 70 projects around the world—including the largest biodiesel plant in California as well as the largest waste-based biodiesel plant in Europe. In addition, over the last three decades, BDI has successfully obtained more than 300 patents. Feedstock Demand by Country “In the U.S., we’re seeing much more flexibility in regard to allowable feedstocks compared to Europe,” Stockinger says. “Here [Europe], there are expectations from authorities to focus mostly on waste oils and fats. It doesn’t make a lot of sense in Europe to focus on a rapeseed oil biodiesel or HVO [hydrotreated vegetable oil] plant, as there is a push by the commission and the renewable energy directive to phase out food-type feedstocks.” This includes edible oils like soybean and canola oil, sugars and grains, and especially palm oil. “If you’re a developer, certainly you have to follow these requirements,” Stockinger says. “So, in Europe, developers wouldn't want to launch a palm-oil based biodiesel project.” But in Asia—especially Indonesia—it does make sense. “They’re really focused on using what’s available there, and in Indonesia, it’s palm oil,” Stockinger says. Indonesia is the world’s largest producer of palm oil—ac16

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Hermann Stockinger, BDI-BioEnergy International

cording to the USDA, production in the country is forecast at 46 million metric tons for 2023'24, an increase of 3% from the year prior. In the U.S., there is much less restriction on biofuel inputs, Stockinger reiterates. “We see much more openness to using different types of feedstocks, including soybean oil, with many virgin oil processing plants being built,” he says. China is also focusing on nonfood feedstocks for biofuel production, according to Stockinger, mainly UCO. “European markets are sourcing a lot of their demand for UCO from China, which covers its own demands with domestic resources.” Challenges & Flexibility Stockinger reiterates that global demand for UCO has always been high and will continue to be, and with that brings some challenges outside of competition. “One problem is how to define UCO,” he says. “That’s difficult to do based on physical and chemical properties— how many times has it been used? One, or three? And the industry is facing problems with fraudulent production based on feedstock that is wrongly specified by external suppliers. Producers don’t want to work against the law. In the future, it must be ensured that the industry can trust the certificates issued by well-known certification bodies.” From a technical standpoint, in BDI’s experience, UCO qualities are getting worse as

2024 WINTER EDITION

time goes on. “This is because the good qualities of UCO have already been recovered,” he explains. “It’s not an issue for us—we have technologies ready for that and have built plants in the U.S., Europe, and Asia for processing the worst types of feedstock.” Stockinger adds that the next feedstocks BDI has been focusing on are split fatty acids, which are challenging in regard to phosphorous, sulphur and free fatty acid (FFA) content “But this [feedstock] has quite untouched potential for new projects, as we see it,” he says. “It's difficult to process, but BDI has technology for it. We’ve had phosphorous and sulfur reduction on the list for the past 15 or 20 years, and FFAs have never been an issue for us.” With RepCAT, BDI’s high-FFA process, raw materials with up to 99% free fatty acid content can be used. The system also allows for the catalyst to be reused within the process, saving on operating costs. As for advice on how to mitigate inevitable future feedstock crunches, Stockinger says it’s the ability to use what’s available, and BDI can ensure new and existing plants have that capability. “Our answer is always feedstock flexibility,” he adds. “We have already converted or retrofitted several plants and done many studies. We have the concepts, technology and knowhow to bring outdated plant processes up to date.”

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Full Circle

UCO

Starting as a family owned business 70 years ago, Neste-owned Mahoney Environmental collects and processes UCO from 80,000 businesses, sending it on to ultimately be used for renewable fuel production. BY ANNA SIMET

With a single truck in 1953, James Mahoney started up Mahoney Grease Service as a fats and oils recycler, using 13-gallon drums to service customers. Upward of seven decades later, the company has grown to service over 80,000 businesses, with 30 transfer stations and 19 recycling plants across the U.S. Over the past year, Mahoney has collected and processed about 400 million pounds (200,000 tons) of UCO. Though the company was acquired by renewable diesel and SAF producer Neste in 2020, it continues to operate as a standalone subsidiary. President and CEO Dave Kimball says Mahoney has made 12 acquisitions in the past two years alone, jumping from roughly 240 to 700 employees. Kimball underscores how hard the company’s dedicated drivers work, often beginning 10- to 12-hour shifts between midnight and 3 a.m. to get the job done before restaurants open and to beat traffic. “Our driv20

BIODIESEL MAGAZINE

ers have tough jobs,” he tells Biodiesel Magazine. “They’re getting out of their truck 20 times a day and unloading UCO tanks.” In a nutshell, exterior UCO tanks— sometimes heated with hot water tanks—are either lifted via chains and dumped, or cleaned out via a vacuum pump. Some restaurants have a port that extends from inside the business through an exterior wall, where drivers attach hoses to empty indoor tanks. Drivers’ routes are planned by Mahoney’s logistics teams, and include weekly to annual pickups. “The driver will collect within, say, 150 miles of a transfer station that’s in the middle of the geography, and bring it all back to that tank,” he explains. “About once a week, the tank is loaded up and taken to one of the 19 plants where we clean it up, remove the solids and water, and let it settle.” Once pretreated, the processed UCO will be shipped to one of Neste’s refineries, either in Finland, the

2024 WINTER EDITION

PHOTO: MAHONEY ENVIRONMENTAL

www.BiodieselMagazine.com

FEEDSTOCK

Netherlands, Singapore or California, where the company has a joint operating refinery with Marathon Petroleum. At these refineries, collected UCO is turned into products including renewable diesel or SAF. Combatting Theft As are most in the UCO business, Mahoney is all too familiar with UCO theft, which Kimball describes as rampant in the industry. “It’s up to 30%, which is a huge number,” he says. “We see it all the time. When I started two years ago, we had hotspots in the Northeast and Southeast, but now, we see it everywhere.” Spikes in theft can be attributed to dramatic UCO price increases driven by the growing biofuel industry. While the U.S. EPA released UCO traceability requirements in 2020, Kimball is skeptical of its effectiveness on theft prevention. “I don’t know that these rules will help us much,” he says. “What they’re asking for is the point of origin— where the oil was collected and the volume— but they don’t ask for a copy of a contract or anything like that. So, if you’re stealing the oil, you can simply use the address where you got it, and nobody will know whether you had a contract or not.” As for physically safeguarding against theft, Mahoney has implemented a number of measures, including supplying its customers with a UCO locker, an accessory included with their proprietary equipment, as well as devising a network of private detectives. “Whoever thought you would need that for grease?,” Kimball says. “The restaurants will let us know that it’s happening, or our drivers notify us of empty tanks, and these guys will put up cameras or do surveillance overnight. We have been really successful in the Northeast and New York area, catching these thieves.” One issue that compounds the problem, Kimball says, is that oftentimes police don’t realize that grease theft is an issue. “They don’t know the value of it,” he explains. “Especially in the Northeast. And these aren’t smalltime criminals. There is a lot of work going into trying to stop this.” 22

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Plant operators and trucker drivers, like these who work at Mahoney Environmental’s Raleigh, North Carolina, plant, are a crucial component of the company’s team. PHOTO: MAHONEY ENVIRONMENTAL

'We’re doing something good for the world, and hopefully, for future generations—that’s a good feeling.' -Dave Kimball

Dave Kimball, President and CEO, Mahoney Environmental

Another initiative of Mahoney’s is the potential modification of their tanks to make them more theft proof, but this may not even be enough to deter some thieves. “Some carry cutting torches with them, some cut or break off our locks, and we’ve had whole tanks stolen, just like when individuals have taken whole ATM machines,” Kimball says. Mahoney’s custom tanks, called Direct Connect, are placed inside of the restaurant and connected to a port that travels through the wall. This technology allows customers to

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transfer used cooking oil from their fryer to the tank by pushing a button, rather than manually transferring it. Direct Connect equipment can also be placed outside of the restaurant, so it doesn't take up interior space. “When trucks pull up, we connect the hose to the port and pump out the tank, so these tanks being inside greatly reduces the amount of theft. However, we have recently had people break into our ports,” Kimball says. Circling back to the actual value of UCO, he says that recently, prices have dipped.

Used cooking oil is pumped from a collection tank. PHOTO: MAHONEY ENVIRONMENTAL

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Production of renewable products,, including renewable diesel and SAF, began at Neste's Rotterdam, Netherlands, refinery in 2011. The plant is undergoing an expansion from 1.4 million tons to 2.7 million tons per year, which is expected to be complete in 2026. PHOTO: NESTE

Industry Outlook from Neste In 2020, Mahoney Environmental was acquired by Neste. According to Annika Tibbe, acting president, Neste U.S., the company currently has an annual SAF production capability of 1 million tons (365 million gallons). “This will grow to 1.5 million tons (515 million gallons) per annum in early 2024,” Tibbe says. “At the same time, Neste is entering into bold, new partnerships to increase the global availability of SAF. With demand for SAF soaring, Neste believes the No. 1 challenge for the aviation industry is ramping up production. “The aviation industry adopted the ambition to achieve net zero carbon emissions by 2050 not that long ago, but also realizing that this will require an enormous effort and this will not be done overnight,” Tibbe says. “We are seeing growing momentum and positive developments, but we need to move faster and ensure the impact and credibility of the solutions available today or in development.” Tibbe points to an International Air Transport Association report indicating the world is poised to hit 8 billion gallons of SAF annual production by 2030. “At that scale, SAF will equal roughly 10% of total jet fuel demand, up 24

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from only 0.1% today and not enough to meet the industry’s goal of reaching net zero by 2050—but a step in the right direction,” she says. Coupled with a greater awareness of climate change and its consequences, policies supporting the development of renewable fuels in the U.S. have driven demand for renewable diesel and SAF, Tibbe adds. “For the SAF business, the Sustainable Aviation Fuel Credit in the IRA is a welcomed recognition of the role SAF plays and the challenges it faces, and will incentivize increased production and use of SAF in the short-term. We are concerned about what happens after 2024.” Tibbe says policies like this are crucial for increasing SAF supply, but a long-term, stable incentive is needed to speed the transition away from fossil fuels, especially in hard-to-abate sectors like long-distance trucking, critical heavy equipment and aviation. “This is also why the role of states and adopting clean fuel standards are so important,” Tibbe says. “Several states including California, Oregon and Washington have adopted their own clean fuel programs, and these programs help support customers in their decisions.”

FEEDSTOCK

The Value, Future of UCO “It’s an interesting dynamic right now, because today, biofuels are more expensive than fossil fuels,” Kimball says. “A lot of states have credits to offset that price difference, but some of the credits have gone down for different reasons—maybe the states haven’t renewed them or they’re leaning toward EVs—so the credits aren’t as positive as before. And then there’s the whole concern regarding traceability.” While theoretically a tool to help prevent theft, the EPA’s aforementioned recordkeeping requirements are burdensome on and challenging for producers collecting from many thousands of restaurants, prompting a jump in cheaper UCO imports and decreased demand for domestic UCO. “Six months ago, the price of UCO was probably close to 70 cents, and as of Friday (Oct. 27), it was down to about 40 cents,” Kimball says. “There has been a pretty dramatic price drop recently. We’re hoping it’s because everyone is sorting through these

EPA issues, and eventually, everyone will get comfortable again and we’ll see the price begin to go back up.” Kimball is optimistic regarding domestic UCO demand and its imminent rebound, and a renewed focus on using it to drive fuel requirements, rather than heavy emphasis on EVs. “I do think there is a bit of a pause around that, because there are many challenges,” he says. “Eventually, the cost of biofuels will come down and the cost of fossil fuels will go up, and that differential will start to go away.” The exponential growth Mahoney has experienced over the past two years is poised to continue, bolstered by the company’s strategic plan of tripling by 2030. “The plan is to continue to grow, and to continue to look at some alternative services we can produce for our customers,” Kimball says. “It’s all about growth and finding efficiencies for us.” A UCO collection pioneer, the 70 years of Mahoney’s existence has equated to lots of

change and innovation. As for what the company views as its one of its greatest accomplishments, Kimball refers back to its collection tanks. “I think we’re best in class,” he says. “And we continue to invest in new technologies, efficiencies of routing, and things related to that. While we will continue to innovate.” Kimball adds that he believes the company is proudest of the role Mahoney is playing in the circular economy. “We’re using a recycled product, processing it, using it again, and lowering carbon footprints. It’s a pretty cool thing to get behind, and if you talk to a lot of our employees, that’s what they like the most, and it’s why they work here—they’re behind our mission. We’re doing something good for the world, and hopefully, for future generations—that’s a good feeling.” Author: Anna Simet Contact: asimet@bbiinternational.com

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PROFILE

THE VALUE IN DIVERSIFICATION Continually pivoting to stay competitive and grow since its founding in 2008, Green Energy Biofuel has no intentions of stopping. BY KEITH LORIA

It all started in a garage. Joe Renwick, cofounder of family-owned, South Carolina-based Green Energy Biofuel, recounts the 2007 story that set the path of the company in motion. “I met a guy who knew a guy who knew how to make biodiesel,” he explains. “He taught me how to make biodiesel in my garage, and I built my own dualreactor processor and I got bit by the bio-bug, as they say.” Renwick was regularly making fuel from waste cooking oil recycled from the local tapas restaurant, The Bee’s Knees, in downtown Augusta, Georgia, and had made eight batches of fuel when he lost his job as an account executive at the bank he was working at. Meanwhile, his wife, Beth, was finishing up her residency in emergency medicine. Renwick took a job selling pharmaceutical drug manufacturing equipment, gaining valuable experience as a salesperson and fluid process design. Unfortunately, the sole owner of the company passed away and he found himself out of a job again. “I moved back home (to Winnsboro) with my tail between my legs, unemployed, and ran into an old friend from college from The Citadel, and the two of us decided to start a biodiesel company,” Renwick says. That partner was old football teammate Brandon Spence, and the duo started Midlands Biofuels LLC in 2008. Renwick understood the biodiesel part of the business, while Spence, who had worked as a small business specialist at the U.S. Department of Commerce, knew the intricacies of starting a new business. The initial equipment the two acquired—which was bought by maxing out credit cards and a loan against Renwick’s pickup truck—is still in operation today. “By 2009, we were ASTM certified and making fuel; the only biodiesel company in the state of South Carolina, running unopposed for years,” Renwick says, explaining it was the year that saw the first loss of the dollar-per-gallon blending credit and that forced seven other active biodiesel plants in the state of South Carolina to go bankrupt and close. Midlands Biofuels itself saw a lack of support from the government to keep the industry alive, but weathered the storm and found 26

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opportunities, producing biodiesel for on-road use for years. “We continued to grow the business; I was doing the sales, collection and oil processing in-house, so we hired a driver to take some of the work burden off my activities,” Renwick says. A New Path The company came upon an opportunity to build a plant with a five-year contract with US Foods, and by 2010, had built a second plant for the company to process 100% of all the oil collected from its food delivery clients. That’s when the two partners would split the business— with Spence keeping the contract with US Foods, and Renwick focusing on the oil process and biodiesel production side of the business.

Since starting out in Columbia, South Carolina, producing biodiesel as Midlands Biofuels, Green Energy Biofuel has expanded its grease collection services to serve clients in South Carolina, Georgia, North Carolina and Tennessee. PHOTO: GREEN ENERGY BIOFUEL

That’s also when Beth Renwick came in as a new business partner as the majority owner, making the company the only woman-owned biofuel company in the U.S. “By then, the training wheels were off and we knew what our future was, and it did not lie with 100% biodiesel production being the only way to run the company,” Renwick says, explaining that the company transitioned from solely an oil recycler/biodiesel company to a large-scale waste processor of products coming from the biodiesel industry itself. A few years later, the biodiesel industry took a downturn, and unfortunately, the US Foods contract was canceled early. This forced the plant, like many others in the industry, to shut down. Subsequently, Renwick purchased the shuttered plant’s equipment and used it to outfit his

own plant for the next scale of growth. “We brought that equipment into our facility to increase our capacity, and that allowed us to grow,” Renwick says. By 2016, Midlands Biofuels expanded its business area to Tennessee by acquiring a kitchen oil collection processing plant in Knoxville, going outside of the South Carolina market for the first time. With this growth came the decision to change the name of the company to Green Energy Biofuel. “We tried to not seem so small and regional as we moved from South Carolina to servicing eastern Tennessee and some parts of North Carolina as well,” Renwick says. One of Green Energy Biofuel’s first big contracts was with Tyson Foods, where it processed all of the company’s waste for nearly four www.BiodieselMagazine.com

PROFILE

years. “This changed our focus again from being a biodiesel production company to being a feedstock processor,” Renwick says. “For us, it was better to be more on the support side of the biodiesel industry than the production side. But it prevented us from being any sort of a real player in the biodiesel market in South Carolina.” The company became a service provider for all the biodiesel processors in North Carolina, South Carolina and Georgia, and began hauling its waste to the plant for further refinement, finding opportunities to help biodiesel companies get feedstock that they desperately needed. “Due to our advanced processing capabilities that they didn’t have, we could take waste, recover from that waste, and then provide it back to them at the next waste pickup,” Renwick says. “It really shifted our focus as to how to put a dent in the industry, make some profits and grow the company.” That gave the couple the confidence to buy its third plant, a former biodiesel plant in Warrenville, South Carolina, that went bankrupt seven years earlier, and retrofitted it to become a feedstock facility with three unique processes in it that Renwick characterizes as “the good, the bad and the ugly. That plant is a monster, and we invested millions of dollars bringing it back on line,” he says. “It has a rail spur that is next to a rail switching yard, which is really unique. We have a 10-car, private rail spur and we can actively load or unload five rail cars at a time.”

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The plant, which is the biggest feedstock plant on the East Coast, has seven centrifuges, a large steam boiler for heating, insulated tanks, and can process hundreds of thousands of gallons per day. The company also has a wastewater pretreatment permit as well, which was no easy feat—it took five years to get approved. “We have a very robust process that allows us to bring in fat, oil or grease, in any condition, and we can spit it out as a finished product,” Renwick says.

A bird's-eye view of Warrenville, South Carolina, processing plant with four finished product tanks in foreground. PHOTO: GREEN ENERGY BIOFUEL

The most recent significant change in the company occurred during the COVID-19 pandemic. “We had the opportunity to buy a composting company, as we were spending about $400,000 a year in landfill fees for disposal of our solid waste,” Renwick says. “By buying that, we now have a home for all our waste to go. We have retooled and invested a lot in this composting business and it’s awesome.”

This venture has created an opportunity for the company to get access to oil it would otherwise not have known about. It also paved the way for Green Energy Biofuel to purchase a depackager, a piece of equipment that removes food waste from its packaging every day of the week. Foods that contain oil go into the feedstock process; the rest is composted at ReSoil. “We bring in tractor-trailer truckloads of expired waste, run it through the machine, and it separates all of the packaging—all the cardboard, the plastic into one container, and all the food waste into another container,” Renwick says. “It allows us to be a zero-landfill solution for other companies to bring their waste. We have thousands of restaurants we service.” Today, Green Energy Biofuel can provide services to individual restaurants, chains and industrial food companies alike. Services include grease trap pumping, used cooking oil collection, pressure washing, line inspection, line jetting, waste oil and wastewater processing, depackaging and composting. This is one of the things Beth Renrick is most excited about—the rethinking sustainability aspect. “We are advocates on

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Beth and Joe Renwick are the owners of Green Energy Biofuel. Beth Renwick, a doctor by trade, has a passion for sustainability and social responsibility. In 2018, she was named a Women in Influence by the Columbia Regional Business Report. PHOTO: GREEN ENERGY BIOFUEL

how to live more mindfully and help the environment,” she says. “Being able to offer industrial companies and small mom-and-pop shops the ability to get rid of things in a more mindful manner is meaningful.” The company also does services for industrial partners, such as big tank cleanings, pressure washing and other things that have helped

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Green Energy Biofuel diversify. “All we’ve done in our 15 years in business is meet a roadblock based on industry market factors, and reinvent ourselves over and over to get to where we are now,” Renwick says. “We have four locations, service the mid-Atlantic, and are finding opportunities to grow.”

Green Energy Biofuel purchased a 30-ton-per-hour depackager that allows the company to take in large volumes of food waste. Organic waste is composted and recovered plastics and cardboard are sent to a recycling center.

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PHOTO: GREEN ENERGY BIOFUEL

The company has been recognized by Carolina Recycling Association as Recycler of the year, voted by employees as one of the Best Places to Work in South Carolina for two consecutive years, and in 2022 was named the No. 1 High-Growth Small Company by SC Biz News. Education Matters, Looking Ahead The Renwicks both strongly believe in the importance of education, and have started two programs designed for the future of biodiesel. The first has Green Energy Biofuel working with colleges and universities on internships, with the hope of bringing some of them into the fold upon graduation. More than 100 internships have been awarded over the years. The second is Bio4Edu, which aims to support local schools by supporting their bus fleet, making donations to schools and school projects, and providing students with educational opportunities about the importance of environmental sustainability. For Green Energy Biofuel, the future isn’t so much about what else it has to do to reinvent itself, but to grow market share. “We have a plant capable of processing crazy volumes of material, and now we need crazy volumes of material coming in,” Renwick adds. “Our intentions and plans are to expand into Georgia, to expand further into Tennessee and further across North Carolina. Our ability to grow is exponential, and it’s just sitting around the corner for us.” Contact: Anna Simet asimet@bbiinternational.com

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SCALE-UP

MINNESOTA: S AF CE N T R AL

The Minneapolis St. Paul Airport, Greater MSP Partnership and anchor companies including Delta Airlines, Bank of America, Ecolab and Xcel Energy have formed an unprecedented partnership to develop a large-scale SAF hub in Minnesota. BY ANNA SIMET

The inaugural North American SAF Conference & Expo, held in Minneapolis at the end of August, was a fitting location for the unveiling of plans to build out the U.S.’s first SAF hub, a multiyear, ambitious strategy to which its partners reiterated their long-term commitments.

Prior to the announcement, Chris Tindal, assistant director and business team lead at the Commercial Aviation Alternative Fuels Institute, provided a snapshot of what the domestic and global SAF industries look like and whether current production trajectories shore up goals. “So far this year, we [the U.S.] have consumed about 12.8 million gallons of SAF,” Tindal said. “Total [annual] jet fuel use in the U.S. is 26 billion gallons. While we’re on track to exceed 22 million by the end of this year, which is the greatest year we’ve ever had, it’s only 0.1% of total jet fuel consumed in the U.S.” Tindal said while that number is very small, it’s not a doom-and-gloom scenario. “By 2030, we want to have 3 billion gallons being

produced domestically, which would be about 20% of total jet fuel consumption in the U.S. And by 2050, we want to replace all fossil jet with SAF. That is feasible, we can certainly do it—but how?” Tindal said activities like the SAF Grand Challenge, SAF Tax Credit and the forthcoming Minnesota SAF Hub will help stimulate growth needed to hit milestones. Following his remarks, he welcomed panelists to the stage, including Peter Frosch, president and CEO of the Greater MSP Partnership; Peter Carter, executive vice president of external affairs at Delta Air Lines; Brett Carter, executive vice president at Xcel Energy; and Sam Hsu, executive vice president of strategic planning at Ecolab. Frosch said the MN SAF Hub has been in the works for many months. “Now we’re at the point of where it’s time to tell the story about the work we’re going to do together here,” he said. “This set of anchor companies and key parties have come together to address the issue, which is that there must be a set of places around the world that are achieving SAF production at scale, where large volumes of affordable, low-carbon SAF are consistently produced. We’ve come to together to build …an integrated value chain that will result in deliver-

Chris Tindal, CAAFI; Peter Frosch, Greater MSP; Peter Carter, Delta Air Lines; Brett Carter, Xcel Energy; Sam Tsu, Ecolab. PHOTO: JOE SZURSZEWSKI

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Carter said Delta consumes approximately 250 million gallons of fuel per year out of the Minneapolis-Saint Paul International Airport.

Frosch (right) said the Minnesota SAF hub has been in the works for longer than eight months. PHOTO: JOE SZURSZEWSKI

PHOTO: JOE SZURSZEWSKI

ing hundreds of millions of gallons of SAF to the [Minneapolis-Saint Paul International Airport] for use, and we’re committed to doing the things and solving the problems to get there.” Carter said partnering for the SAF hub aligned with Delta’s commitment, made in February 2022, to be a net zero airline by 2050. The goal includes a stepping stone of using upward of 10% SAF for fuel at MSP

by 2027, and 50% by 2035. “Putting this all into context, at Delta, we consume four billion gallons of jet fuel every year, with 250 million gallons consumed out of MSP. For us, 98% of our carbon footprint is generated by jet fuel. So, we need jet fuel to be replaced by SAF as scale. And right now, as you all know, there isn’t enough in the whole world to even fuel Delta for a single day.”

Catalyzing industry growth is more than a promise to buy fuel, from Carter’s perspective. “Candidly, we’ve done what we thought would generate and scale the industry by signing offtake agreements with the Gevos of the world, but that hasn’t been enough to drive the capital and spur development of a truly scalable industry,” he said. “So, that’s where we came to this thought that we need to be a part of some-

Minnesota SAF Hub Goals Immediately: Scale quickly using existing feedstocks and facilities. • Bring SAF flow into Minnesota. As early as 2025, the coalition aims to bring commercial-scale volumes of SAF to the MSP Airport from out of state. Minnesota’s SAF tax credit, passed by the Minnesota legislature and signed into law by Gov. Walz, makes Minnesota among the most attractive states in the nation to produce and blend SAF. • Engage SAF producers. The coalition is working with current and prospective producers to increase SAF production in Minnesota in quantities required to meet the coalition’s existing emission reduction goals. • Expand the coalition. The coalition will welcome additional SAF producers, investors, corporate partners, and broader value chain players. Next: Accelerate greenhouse gas reductions through innovations in agriculture. • New jet fuel production. SAF production begins in Minnesota, including the use of new and existing infrastructure and 34

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2024 WINTER EDITION

assets with a focus on transforming Minnesota ethanol to jet fuel. • Regenerative agriculture. The coalition will work to further reduce the carbon intensity of SAF by incorporating carbon capture and regenerative agricultural practices and crops. On the horizon: Maximize scale and greenhouse gas reductions with advanced technology. • The coalition will leverage a flexible and data-driven approach as SAF technology and research matures. Power-to-liquid, for example, is a pathway that generates SAF from clean hydrogen and carbon that may allow greater emissions reductions and fewer constraints on supply. Minnesota is well positioned to be a global competitor in the production of power-to-liquid, given its ready access to affordable renewable resources, particularly wind, and proximity to bio-based carbon sources.

SOURCE: MINNESOTA SUSTAINABLE AVIATION FUEL HUB

SCALE-UP

Tsu emphasized how Ecolab’s process innovation and technology expertise will help the coalition scale to meet its goals. PHOTO: JOE SZURSZEWSKI

thing—a coalition of the willing, including the whole value chain—to bring people together to solve a difficult issue.” Carter said that if a pin were to be dropped on any community in the world for a SAF hub, that Minnesota jumped out at Delta as the best host community, one reason being that current Gov. Tim Walz is a “huge champion of SAF,” as well as leg-

islation passed earlier in the year that “positions Minnesota to be not just a national leader in scaling SAF, but a world leader,” he said. “The companies in the state of Minnesota, as represented by Xcel, Ecolab and Bank of America, these are companies that are global, that take on difficult issues and also companies that know how to collaborate.”

Carter also highlighted Minnesota’s agricultural community, which he described as “a crucial element to create SAF. You also have clean energy producers like Xcel, you have existing biofuel infrastructure, you have the right public policy as demonstrated by the state’s passing of the [Sustainable Aviation Fuel Tax Credit] SAF incentive law. You have a wonderful university system through the University of Minnesota where we expect additional research to be done, as we’ll need some technological breakthroughs to scale this industry. All of those things together make Minnesota really the place, not just in the country, but the world.” As for the Minnesota SAF hub target of 250 MMgy per year by 2030, Tindal pointed out its significance. “We want 3 billion gallons [for the SAF Grand Challenge], and 250 million gallons is 8% of that total amount,” he added. “Just from Minnesota, 8%—that’s pretty phenomenal.” Contact: Anna Simet asimet@bbiinternational.com

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Making the Case for Marine Biofuels

To meet greenhouse gas reduction goals, the maritime industry is looking heavily at renewable fuels to replace heavy fuel oil. BY MICHAEL KASS

The maritime industry is one of the most important transportation sectors, with more than 80% of all goods shipped via large container or cargo vessels that are powered using residual heavy fuel oil (HFO). The global economy is, therefore, closely bound to heavy fuel oil and maritime transport. Unlike the automotive industry, this sector has not received much regulatory attention until now. Sulfur reductions in residual fuel oils were imposed by International Maritime Organization starting in 2020, and emission control areas were established in the U.S. and northern Europe to reduce shoreline sulfur and particulate emissions from these vessels. However, maritime transport also accounts for 2-3% of global emissions of CO2, which is significant, especially compared to global aviation. To mitigate marine CO2 emissions, the IMO seeks to reduce greenhouse gas (GHG) emissions from 2008 levels by 50% in 2050. To meet this challenge, the mari-

time industry is looking heavily at renewable fuels, including biofuels such as biodiesel, renewable diesel, pyrolysis oils, etc., and zerocarbon fuels like hydrogen and ammonia. Some of these fuels, such as methanol, can be synthesized via several routes, including biomass. Because of the global nature of maritime transport, a multiple-fuel strategy is needed based on regional legislative initiatives, economies and unique bioresources. It’s not a one-size-fits-all approach and will likely mean a higher degree of fuel flexibility than what is currently available. To reduce infrastructure costs and pressure, biofuels have high potential to be used as drop-in candidates for HFO. Fuels With Low Impact on Port and Shipping Infrastructures The two most immediate drop-in candidates for HFO are biodiesel and possibly renewable diesel. Biodiesel (derived from

vegetable oil or waste cooking oil) is the most studied at this point for several reasons, including that it is available in suitable quantities for full-scale field trials, and it shows excellent blend stability with HFO (biofuels are evaluated primarily as blends with HFO). Blending with HFO is important, since there is not enough biodiesel currently available to run as a neat fuel for marine shipping. Also, the engine and shipping companies are taking a measured approach to gain a solid understanding of performance before moving to higher blend levels. The U.S. DOE’s Bioenergy Technologies Office is also exploring fast-pyrolysis (FP) and hydrothermal liquefaction (HTL) oils, which are collectively referred to as biointermediates, and produced from a large variety of feedstocks. These oils must be heavily upgraded in order to be a distillate drop-in. However, because the large two-stroke crosshead engines used to power the large cargo and container vessels

CONTRIBUTION: The claims and statements made in this article belong exclusively to the author(s) and do not necessarily reflect the views of Biodiesel Magazine or its advertisers. All questions pertaining to this article should be directed to the author(s). 36

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MARINE

can operate on lower combustion quality fuels, the level of upgrading (and hence cost) necessary to produce a suitable fuel is expected to be lower. Biointermediates are being evaluated at four DOE labs (Oak Ridge National Laboratory, National Renewable Energy Laboratory, Pacific Northwest National Laboratory and Argonne National Lab) for suitability as a marine fuel. Oak Ridge National Laboratory has been primarily concerned with addressing the technical issues associated with fuel and infrastructure compatibility. The Barriers Barriers can be broken down by technical feasibility, cost and availability. Availability and cost are the most daunting. Biofuel production will have to be scaled up considerably to meet the demand by the maritime sector, and the low cost of residual fuel oils precludes biofuel use at this time. Key technical barriers (assuming that blends with HFO are being considered) are blend stability and compatibility with infrastructure materials. Blend stability refers to the propensity of a fuel mixture to cause the asphaltene fraction of HFO to precipitate out of solution, resulting in clogging and plugging issues. This phenomenon is not completely understood and is a major concern when bunkering new fuels onboard a ship. Biodiesel blends exceptionally well with residual fuel oils, whereas conventional diesel does not. As for renewable diesel, it shows a more mixed response to asphaltene precipitation. Raw biointermediates have not shown consistent suitability to be reliably blended with HFO; however, our studies have shown that moderate upgrading (hydrotreating and oxygenate removal) improves blend stability. Aging is another hurdle, but not one we have looked at in high detail. The second hurdle with regard to infrastructure is compatibility. Biodiesel and its blends with HFO are not expected to have serious incompatibilities with metal infrastructure components, but it would not be surprising if some seals and gaskets have to be replaced. A more serious issue is the high acidity of pyrolysis oils. Oak Ridge National Laboratory has performed studies that have shown that corrosion is

not a concern for fuel system metals when blend levels with pyrolysis oils are kept below 50%. Competition With Sustainable Aviation Fuel Currently, a key concern is the availability of biomass for fuel production. Sustainable aviation fuel (SAF) is expected to be a large consumer of biomass. Incentives have been established for the production and use of SAF for the aviation industry, but there are none in place for the maritime sector. The maritime community is rightly concerned that most biomass production will be directed toward SAF. Assessing the level of competition with SAF is an area of high interest for the DOE multi-lab team, but we are also looking at mutual benefits, too. As can be seen in Figure 1, the compositional range of jet fuel is markedly different than that of HFO used to power large ocean-going vessels. A key feature of biointermediates is that they have a wide compositional range that includes the nonoverlapping ranges of SAF and marine HFO. The lighter hydrocarbon fraction of biointermediates can be more economically synthesized into SAF than the heavy portion, which by its very nature may be more suitable (and more cost effective) for use as a marine fuel. This complimentary scenario presents a welcome opportunity to advancing biomass for both SAF and marine biofuels.

Biofuels as Pilot Fuels for Zero-Carbon Fuels It is important to keep in mind that marine engines being developed for zero-carbon fuels require pilot ignition to ignite the main charge. Pilot ignition is currently done for methanol and liquified natural gas-fueled ships using a diesel-like distillate having a high cetane number. These pilot fuels can be up to 5-10% of the total fuel use (which is around 300 million metric tons per year). Therefore, in order to further reduce carbon intensity, biofuels—especially biodiesel and renewable diesel—are heavily being considered for pilot use. Even so, it is important to keep in mind that if the existing HFO-fueled cargo fleet could be converted to methanol overnight, annual production of at least 15 million metric tons of biodiesel or renewable diesel would still be needed. This quantity is over 50 times the volume of biofuel produced each year. As a result, biofuel production would have to be scaled up to meet this demand, even after the industry transitions to zero-carbon fuel options. Author: Michael Kass Engineer and Researcher Fuels, Engines Emissions Research Center Oak Ridge National Laboratory kassmd@ornl.gov

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