Biodiesel Magazine - December 2010

INSIDE: NEW CRIMINAL PENALTIES FOR NEGLIGENT PRODUCERS

BIODIESEL MAGAZINE December 2010

Maintaining

Safety and Value How a proper maintenance program can keep plant personnel safe, ensure swift restarts for idled plants, and help retain facility value PAGE 30

AND

Fleet Managers Talk Biodiesel PAGE 24

PLUS:

Chemical Safety Matters PAGE 34

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DECEMBER 2010

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CONTENTS

DECEMBER 2010 VOLUME 7 ISSUE 12

24

34

30

USE

MAINTENANCE

SAFETY

Model Fleets

Maintaining Safety and Value

Chemical Safety Matters

BY ERIN VOEGELE

BY BRYAN SIMS

Why biodiesel is an easy option for fleets

BY LUKE GEIVER

How solid maintenance programs offer many benefits

DEPARTMENTS 4 Editor’s Note Diverse Group

BY RON KOTRBA

Handling hazardous chemicals should not be taken lightly

CONTRIBUTIONS 38 Lockout or Be Locked Up

Stiff new criminal penalties may be in store if safety procedures aren’t followed

BY CHARLES B. PALMER AND ERIC HOBBS

6 Legal Perspectives

Walking through the Valley of Death

BY GARY D. COLBY 8 Talking Point

Plant Maintenance and Safety

BY SHARATH BOBBILI 9 Biodiesel Events 10 FrontEnd

Biodiesel News & Trends

18 Inside NBB 22 Business Briefs

Companies, Organizations & People in the News

40 Marketplace/Advertiser Index

Biodiesel Magazine: (USPS No. 023-975) December 2010, Vol. 7, Issue 12. Biodiesel Magazine is published monthly. Principal Office: 308 Second Ave. N., Suite 304, Grand Forks, ND 58203. Periodicals Postage Paid at Grand Forks, North Dakota and additional mailing offices. POSTMASTER: Send address changes to Biodiesel Magazine/Subscriptions, 308 Second Ave. N., Suite 304, Grand Forks, North Dakota 58203.

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EDITOR'S NOTE BBI International’s Southeast Biomass Conference &

DIVERSE GROUP Ron Kotrba

Editor Biodiesel Magazine rkotrba@bbiinternational.com

Trade Show in Atlanta featured a biodiesel-exclusive panel, which I moderated, titled, “Biodiesel from Waste and Low-Value Feedstock.” The diversity of the panel—a professor/researcher, a small-scale regional producer, a pretreatment specialist and a representative of a global biodiesel process technology provider—mirrored the eclectic nature of the biodiesel industry.

Christina Borgese, formerly with BiofuelBox and now the senior engineer and cofounder of consulting firm PreProcess Inc., opened her discussion with the importance of diesel power and how just a 2 percent blend can replace all the lubricity lost in ultra-low sulfur diesel. She gave an overview of the wide range of feedstock available for biodiesel processing, and spoke about the three D’s of waste feedstock: the diverse array, distributed concentration and diluted fatty acid content. She said fats, oils and greases in sewage waste water, for instance, are as low as 35 parts per million, since most of it is water and solids.

Frank Yeboah with North Carolina A&T University discussed his Department of Defense project looking at the impact of taking all the military waste vegetable oil (WVO) for conversion to biodiesel. He said if the defense department were a country, its fuel consumption would rank 34 in the world, a testament to how much fuel our military operations use. Yeboah’s project hopes to find exactly how much WVO is produced on military bases and barracks around the country, and what beneficial impacts that would have if all of it were to be converted to biodiesel.

Panelist Brandon Spence, cofounder and CEO of Midlands Biofuels in South Carolina, a community-scale biodiesel plant, said Midlands Biofuels is the only ASTM-certified biodiesel production facility in the state. He and his team also started the first green apprenticeship in South Carolina. Regarding the lapse of the $1 per gallon blenders credit, Spence said, “We collect our own feedstock and we stand on our own two feet, we don’t need the dollar. In order for this business to survive, we can’t do it with subsidies.” Spence also said Midlands Biofuels is looking into solar applications for its process.

The final speaker was Klaus Ruhmer, BDI BioEnergy International’s North American business development manager. “In order to achieve profitability, quality must be the foundation, no shortcuts,” he said. “The most important pillar after that is yield. You can’t run on 80 to 85 percent yield.” He also noted that the subsidy was great for producers, but bad for investors, “because they would never know if it was going to go away.” If feedstock prices change 5 percent, that can have a 40 percent impact on profit, he said. A 5 percent change in the price of biodiesel, or in the yield, can have a 50 percent impact on profitability.

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

Associate Editors For Luke Geiver’s feature, “Model Fleets,” he spoke with managers of various kinds of fleets about how easy it has been to incorporate biodieselblended fuel, and what benefits it has brought.

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In “Chemical Safety Matters,” Bryan Sims’ feature story, he reviews some recent biodiesel plant accidents and gets expert input on how the industry can improve its safety image.

Erin Voegele’s feature, “Maintaining Safety and Value,” has timely information that may help under-producing or idle biodiesel producers avoid sliding property values and ensure quicker restarts when the time is right.

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

&

S A L E S

Chairman mbryan@bbiinternational.com

Joe Bryan

CEO jbryan@bbiinternational.com

Tom Bryan

Vice President tbryan@bbiinternational.com

Matthew Spoor Howard Brockhouse

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

Jeremy Hanson

Senior Account Manager jhanson@bbiinternational.com

Chip Shereck

Account Manager cshereck@bbiinternaional.com

Marty Steen

Account Manager msteen@bbiinternational.com

Bob Brown

Account Manager bbrown@bbiinternational.com

Gary Shields

Account Manager gshields@bbiinternational.com

Andrea Anderson Dave Austin

Account Manager aanderson@bbiinternational.com Account Manager daustin@bbiinternational.com

Jessica Beaudry

Circulation Manager jbeaudry@bbiinternational.com

Jason Smith

Subscriber Acquisition Manager jsmith@bbiinternational.com

Marla DeFoe

Advertising 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 for commercial scale biodiesel producers worldwide. Subscription rates for non-producers are as follows (per year): United States - $24.95, Canada & Mexico - $39.95, Outside North America - $49.95. Subscriptions can be completed online at www.BiodieselMagazine.com/subscribe or over the phone at 701-746-8385. Reprints and Back Issues Select back issues are available for $3.95 each, plus shipping. Article reprints are also available for a fee. For more information, contact us at (701) 746-8385 or service@bbiinternational.com. Advertising Biodiesel Magazine provides a specific topic delivered to a highly targeted audience. We are committed to editorial excellence and high-quality print production. To find out more about Biodiesel Magazine advertising opportunities, please contact us at 701-746-8385 or service@bbiinternational.com. Letters to the Editor We welcome letters to the editor. If you write us, please include your name, address and phone number. Letters may be edited for clarity and/or space. Send to Biodiesel Magazine Letters, 308 Second Ave. N., Suite 304, Grand Forks, ND 58203 or e-mail to rkotrba@bbiinternational.com.

Please recycle this magazine and remove inserts or samples before recycling COPYRIGHT Š 2010 by BBI International

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LEGAL PERSPECTIVE

Walking Through the Valley of Death

BY GARY D. COLBY

“How say you, the jury?” Few phrases so succinctly summarize the uncertainty a small business must face when planning its operations, especially safety and maintenance programs. An adverse legal verdict can wipe out a small company in a stroke. A company without wellplanned policies to identify and limit risks inherent in its operation invites destruction. Most companies design and implement policies, equipment and facilities to reap the positive benefits of appropriate safety and maintenance practices, such as efficiency, sustainability and profitability of their operations, workforce safety and lower insurance rates. However, these policies also must take into account the legal liability that the company may bear in the event that a mishap, or even normal operations, damages the lives or property of others.

Although specific legal rules differ geographically, those who harm others are generally held liable for the damage they cause; and they who inflict harm intentionally, through negligence, or even by paying insufficient attention to the dangers they cause, are singled out for punishment beyond mere compensation for the damage done. Businesses can control their potential liability by acting in ways that demonstrate to a judge or jury that the company has attempted to identify and prevent harm to others. The barest bones of such a demonstration will include tangible evidence that a company considered the hazards its operations pose, that it considered ways of reducing or eliminating those hazards, that it selected among hazard-reducing options in a defensible manner, and—perhaps most important—that it implemented those options in a regular and consistent manner.

If a company is unable to demonstrate to a court that it had a safety and maintenance plan in place, the judge or jury may find it easy to conclude that the company’s consideration of safety issues was unreasonable or haphazard. With an injured party standing before it, the court may feel justified in awarding a large, punitive judgment against the company, both to punish the company for its perceived indifference and as a warning to other similarly-situated companies. Thus, a safety and maintenance plan can benefit a company both by improving

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workplace operations and by shielding it from an inference that the company is indifferent to safety concerns.

In addition to identifying hazards inherent in or caused by its operations, a company that wishes to avoid a punitive legal verdict should also investigate equipment and methods for reducing, avoiding or mitigating those hazards. The standard of care that a company must exhibit in order to limit or avoid legal liability is a matter of local law (typically state law in the U.S.). Generally speaking, however, a company will not be required to undertake every possible way of avoiding all conceivable risk. A company should consult with legal experts in the regions in which it will operate its facilities and in which it will project any foreseeable hazard, in order to understand the duties of care it may owe in those localities.

A company that has created a safety and maintenance plan should take care to see that the plan is, in fact, implemented in its operations. Even though development of the plan may itself demonstrate the company’s good faith and desire to operate safely, failure to implement that plan consistently can be damning evidence that it failed to live up to the standard of care that the company itself considered necessary. Thus, implementation of such a plan is critical.

The specific contents of a safety and maintenance plan are as variable as the companies and operations to which they relate. Legal and occupational health/safety consultants are available nationwide to assist companies to develop and implement appropriate plans. These consultants can shepherd biodiesel and other companies through the complexities of local laws, design of industrial operations and workforce training.

The threat of a disastrous legal verdict can make litigation a “valley of death” for companies unprepared to face it. By designing and implementing safety and maintenance plans with legal and safety experts, companies can reduce the uncertainties they face in the unfortunate event they are sued for damage they’ve allegedly caused, permitting them to focus on business operations.

Author: Gary D. Colby Attorney, Dilworth Paxson LLP (215) 575-7075 gcolby@dilworthlaw.com

Soybean Oil Rape Seed / Canola Oil Sunflower Oil Palm Oil Jatropha Oil Camelina Oil Corn Oil Cotton Seed Oil Algae Oil Used Cooking Oil Yellow Grease Trap / Brown Grease Beef Tallow Poultry Fat Pork Fat Leather Fat Fatty Acids PFAD and others

1…

BioDiesel EN 14214 / ASTM D6751

We build BioDiesel plants worldwide, using our own technology.

Guaranteeing highest yield feedstock flexibility best efficiency no limits in FFA content.

The BDI Process leads to the lowest position on the cost curve while avoiding the food vs. fuel risk.

Austria, 1991 9.000 t / 2.7 Mio US Gal

Austria, 1991 1.000 t / 300.000 US Gal

Austria, 1992 20.000 t / 6 Mio US Gal

Czech Republic, 1994 30.000 t / 9 Mio US Gal

USA, 1998 5.000 t / 1.5 Mio US Gal

Germany, 2001 12.000 t / 3.6 Mio US Gal

Spain, 2002 6.000 t / 1.8 Mio US Gal

Germany, 2002 50.000 t / 15 Mio US Gal

Austria, 2003 25.000 t / 7.5 Mio US Gal

Scotland, 2005 50.000 t / 15 Mio US Gal

Lithuania, 2007 100.000 t / 30 Mio US Gal

Spain, 2007 50.000 t / 15 Mio US Gal

Spain, 2007 6.000 t / 1.8 Mio US Gal

Germany, 2007 50.000 t / 15 Mio US Gal

Austria, 2007 25.000 t / 7.5 Mio US Gal

Portugal, 2007 25.000 t / 7.5 Mio US Gal

Denmark, 2007 50.000 t / 15 Mio US Gal

Austria, 2006 95.000 t / 28.5 Mio US Gal

Spain, 2006 25.000 t / 7.5 Mio US Gal

Spain, 2006 25.000 t / 7.5 Mio US Gal

Germany, 2006 50.000 t / 15 Mio US Gal

Latvia, 2007 100.000 t / 30 Mio US Gal

Australia, 2007 50.000 t / 15 Mio US Gal

Spain, 2008 200.000 t / 60 Mio US Gal

Spain, 2008 200.000 t / 60 Mio US Gal

Spain, 2008 100.000 t / 30 Mio US Gal

Ireland, 2008 30.000 t / 9 Mio US Gal

Norway, 2008 100.000 t / 30 Mio US Gal

Hong Kong, China, 2008 100.000 t / 30 Mio US Gal

Netherlands, 2009 100.000 t / 30 Mio US Gal

…30

and more to come soon.

Status October 2010

The world market leader in BioDiesel Multi-Feedstock Technology is also offering ENBAFERM Multi-Feedstock BioGas Technology.

Biofuel Production Residues Brewery Spent Grains Food Waste Organic Fraction of MSW Flotation Sludge Pasty Liquid Blood, Meat and Bone Meal

BioGas The most advanced solution in the field of anaerobic digestion: the revolutionary ENBAFERM Multi-Feedstock BioGas Technology.

Designed for various challenging industrial feedstock: • Highly reliable and stable biotechnological process with maximum possible output of energy.

• Up to 3 times more throughput than conventional systems.

• Compact in size; therefore easy to integrate in existing industrial plants or offered as Greenfield turn-key plants.

www.bdi-bioenergy.com

TALKING POINT

Plant Maintenance and Safety

BY SHARATH BOBBILI

Anything that moves in a plant experiences wear and tear and needs upkeep. One critical but often overlooked task is keeping maintenance and safety logs, which will help in identifying equipment failures. Keeping pumps operating successfully for long periods requires careful pump design selection. Proper installation and careful operation is crucial, noting pump operating parameters. Pump performance should be monitored for any performance changes over time. If failure occurs, cause must be determined to prevent recurrence. Pumps that are properly sized, dynamically balanced, sit on stable foundations with good shaft alignment, properly lubricated, operated within the specified specs and regularly checked by maintenance personnel who fix any offbeat performance issues never experience catastrophic failure.

Typically a pump that fails twice for a similar issue needs to be examined closely for proper installation and whether it’s operating out of its specified efficiency points.

For reactor maintenance, the sediment in the incoming feedstock, if not addressed, will be a major problem as it will reduce the reaction efficiency. The reactor must be examined regularly and proper preventative measures should be taken. Filters, whether for finished goods or for incoming feedstock, must be examined and changed regularly. Improper maintenance will result in sediment seepage either into end product or incoming feedstock. A prime cause of filter failure is tears. Air compressors, regardless of size or model, require some form of periodic maintenance. Compressor maintenance must be done according to hours of operation, not calendar date.

Operating equipment outside of process parameters causes a majority of issues. Heat exchangers are also a critical part of the process and careful consideration has to be given to their operating parameters and preventative maintenance. At minimum, automation devices and instruments should be looked at periodically as part of a maintenance schedule. A common failure point for automation instrumentation is not the actual instrument, but the wiring. Regular checks must be performed to make sure the wiring is intact, no process liquids are leaking onto the wiring, and instruments are not experiencing any stresses from the mechanical equipment such as piping and reactors. Also, relief valves must be regularly checked to ensure they are performing according to spec.

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Plant safety has to be addressed well before the plant is fully constructed. All safety related points must be identified and proper care should be taken to address each point. All employees should know the plan of action in case of emergency, and a safety document with clearly identified steps needs to be part of employees’ vocabulary.

The largest safety hazard in biodiesel plants is methanol and catalyst, which also contains 75 to 80 percent methanol if it’s a liquid catalyst. Any equipment that comes in contact with methanol or catalyst needs to be explosion-proof or intrinsically safe. There should be clear demarcation between explosion-proof and nonexplosion-proof areas. Care should be taken to make sure the plant design complies with the latest version of the National Electric Code and all of the National Fire Protection Association codes for flammable liquids and vapors. If for any reason changes to the facility occurred, extreme care should be taken to identify the liquids in the facility and the process/methodology before making any changes. Equipment that is being worked on should be water washed and aired out for days. Methanol leaks due to pump seal, hose and instrumentation connection failures, or similar incidents. Personnel should be trained to be observant for any mechanical abnormalities so remedial action can be taken immediately. A handheld volatile compound detector should be kept handy and employees should be encouraged to use it often to identify any stray vapors in the facility.

Further, it is important to ground the tanks, pumps, panels and instrumentation; regularly check for leaks on the tanks, pumps and pipelines; insulate all heated elements; condensate pumps on the steam line to prevent heat exchange failures; properly install vents and blow-off valves on tanks and process equipment; prevent static hazard while taking samples; use ventilated conditions and all safety measures while doing maintenance work such as welding and cleaning; and ground trucks before loading materials. At the end of the day, one plant accident is one too many.

Author: Sharath Bobbili Refinery Deployment Project Manager, JatroDiesel Inc. (937) 847-8050 sharathbobbilister@gmail.com

EVENTS CALENDAR International Algae Congress 2010 DECEMBER 1-2, 2010

Congress Centre, The Planetarium Amsterdam, Netherlands This fourth event is expected to attract 200 people from more than 40 countries. Focus will be on development, technologies and political issues in the world’s growing algae industry.

The event is organized by DLG Benelux, subsidiary of Germany-based DLG e.V. +31 (0)348 484002 www.algaecongress.com

National Biodiesel Conference & Expo

Seattle to Host Regional Biomass Show

01/10

As the birthplace of grunge and Mecca for coffee drinkers and rainy weather, Seattle will host BBI International’s Pacific West Biomass Conference & Trade Show, Jan. 10-12 at the Sheraton Seattle Hotel.

Biorefining technologies are helping breathe new life into the struggling pulp and paper industry. With a focus on local and regional projects, one panel, titled, A Game Changer: Energy Production in the Beleaguered Pulp and Paper Industry, will feature speakers with expertise in capitalizing on pulp and paper waste streams. An estimated 500 pulp, paper and paperboard manufacturers do business in California alone, equating to great biorefining potential.

The world is waiting for an economically effective process for growing, harvesting and converting algae into advanced biofuels and biobased chemicals, and the West Coast may have a solution. With an abundance of R&D algae work underway, the West Coast provides a glimpse into the future of algae including efforts devoted to strain characteristics, genome sequencing, harvesting methods and others. The Algal Research, Development and Commercialization in the Pacific West panel will include insight from leading university-based algae specialists on the current state of algae development, along with successful strategy approaches in use today explained by some of the leading algae industry developers and producers.

From a value proposition, some argue that regional biomass supplies are best put to use as inputs for advanced biofuels and biobased chemicals refining, not simple combustion for heat and power. In Converting Woody Biomass and Ag Waste into Biobased Fuels and Chemicals: Our Progress, some of the region’s most involved biorefining players will discuss the enhanced value biorefining can bring to biomass feedstock, how utilization of forest residues for biorefining applications can specifically improve woodland health and human safety, decrease reliance on foreign-sourced crude oil, and increase energy security.

Finally, recycling and collection strategies have been optimized over time but the rapid accumulation of MSW continues to stress landfills. Costly and hazardous incineration, landfill and burying methods can no longer be ignored.

This fourth panel, Attacking a Growing Municipal Solid Waste Problem via Biorefining, will highlight the importance of turning this liability into a valueadded feedstock by discussing conversion processes, such as gasification, to produce a suite of products that are needed for economic stimulation and environmental stewardship.

FEBRUARY 6-9, 2011

Phoenix convention center Phoenix, Arizona The four-day event will be held at the Phoenix Convention Center and Venues, and the Wyndham Phoenix and Hyatt regency Phoenix will provide easy access to the conference and local activities. 2011 promises to be an important year for biodiesel, so don’t miss the opportunity to hear from experts in the field on all the important issues and network with peers. www.biodieselconference.org

International Biomass Conference & Expo MAY 2-5, 2011

America’s Center St. Louis, Missouri The International Biomass Conference & Expo is the biomass industry’s largest, fastest-growing event. Plan to join more than 2,500 attendees, 120 speakers and 400-plus exhibitors for the premier international biomass event of the year.

(701) 746-8385 www.biomassconference.com

International Fuel Ethanol Workshop & Expo JUNE 27-30, 2011

Indiana Convention Center Indianapolis, Indiana The FEW is the largest, longest-running ethanol conference in the world. Focused on commercial production of grain and cellulosic ethanol, operational efficiencies, plant management, energy use and near-term research and development, the FEW will attract 2,500 attendees.

(701) 746-8385 www.fuelethanolworkshop.com

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Biodiesel News & Trends

PHOTO: MARK BEANE, PHOTOGRAPHER AND MARKETING COORDINATOR, LUC

FrontEnd

EDUCATION ON WHEELS: From left to right, Zach Waickman, lab manager for LUC's biodiesel program, Kristina Clark, senior at LUC and former biodiesel program participant, and Adam Schubel, STEP coordinator and former biodiesel program lab manager, have thoroughly embraced the university’s biodiesel program.

Biodiesel U Why college-level biodiesel programs are sprouting up across the U.S. A thriving industry usually equates to growing educational opportunities in various university systems. However, the inverse of this traditional train of thought appears to be occurring with biodiesel, as a spate of universities have created biodiesel-specific curriculums. It’s this disconnect that has gotten people wondering, with all the trouble in the industry, why now? “Universities are kind of a community and we communicate with one another,” says Nancy Tuchman, Loyola University-Chicago vice provost.

“When a program or initiatives like these are launched at one university, the students talk to each other and kind of push for it to happen at their school. I think this might be part of why it’s not unique at just one or two schools.”

Initially tested and built as part of a course, LUC’s Center for Urban Environmental Research and Policy’s Biodiesel Program evolved into the first school program in the U.S. to be licensed by state and federal authorities to produce and sell biodiesel. The program is expected to produce approximately 2,500 gallons of biodiesel during the school year, from August 2010 through May 2011, from waste cooking oil collected at campus cafeterias and a local restaurant in the area. Students of the program sold B100 to its first customer, The Free Enterprise System Inc., a university shuttle bus service that runs between its Chicago-based Lake Shore and Water Tower campuses. The Free Enterprise System shuttle buses run on B7 blends, but an increased supply of biodiesel should eliminate the use of nearly 3,000 gallons of diesel fuel every year in the company’s six Loyola buses, according to Tuchman.

As former CUERP director, Tuchman was instrumental in creating LUC’s biodiesel program. She says that programs like these appeal to students because it’s a technology that doesn’t require just chemistry majors’ involvement in the program anymore, but rather a host of students with different disciplines interested in gaining hands-on experience. “Another reason is that when our 10

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students hear in lectures about global climate change throughout their curriculum, they begin to feel a sense of hopelessness and despair,” Tuchman says. “I think having students design, develop and build a solution to a problem like this with their own hands is empowering.”

Formed in 2007, LUC’s biodiesel program was awarded a $10,000 grant from the EPA to implement a new education model on campus called, “Solutions to Environmental Problems,” or STEP. The program received an additional $75,000 grant from the EPA for high school outreach and is now its own stand-alone program, according to Tuchman.

While current and prospective students continue to express interest in programs like these, available state or federal funding is another driving force behind decisions to get programs up and running. Ina, Ill.-based Rend Lake College was awarded a $60,835 USDA grant in October to support the launch of a three-part biofuels education program, which will include training on farmbased biodiesel production. Linda Dention, RLC professor of physics and physical science who will oversee the program when it officially begins in the spring, says that available federal funding wasn’t the main factor behind creating programs like these. She says that universities should find their niche based on location, community need and educational targets. “We started looking at it because of the community demand,” she says. “We live in a poor rural area and we wanted to educate people how they can produce biodiesel themselves.”

RLC’s biofuels program is funded for 18 months, but Denton says she is hoping to find additional money to allow the program to continue into the future. Although the college hasn’t yet considered the possibility of expanding the program to offer a two-year degree focused on biofuels, Denton says it could be a possibility in the future if RLC identifies sufficient student demand.

—Bryan Sims

FRONTEND

An Exciting Addition E-Biofuels ramped up production and reaped the benefits, $5.65 million’s worth

GROWTH PLANS: Even after a major increase in revenues due to expanded plant capacity, e-Biofuels has plans for more additions.

Although it may sound fabricated given the particular biodiesel climate many in the industry hoped would be better by now, the following statement is true: “These are exciting times at our e-Biofuels subsidiary,” says Jeffrey T. Wilson, president of Imperial Petroleum Inc. Wilson’s statement relates directly to the recent success of e-Biofuels LLC, a Middletown, Ind.-based 15 MMgy biodiesel plant that, compared to 2009, reported a 339 percent increase in average monthly revenues and, compared to this July, reported a 61 percent increase in revenues for the month of September, netting $5.65

million in revenue for the month. Its success, it appears, is a case of addition by addition. Imperial Petroleum acquired the plant in May and by July, had the plant running at nearly 100 percent capacity. By September, the plant was producing almost another 10 MMgy for a production capacity nearing 25 MMgy. The additions don’t stop there either. Wilson says the plant has plans to continue upgrading for more efficient production and will also add biojet fuel production capabilities. —Luke Geiver

Debating Biodiesel’s Benefits Iowa congressional candidates debate the benefits of biodiesel A recent political debate between two congressional candidates in Iowa caused some concern within the local biodiesel industry.

During the Oct. 15 event, incumbent third district Congressman Leonard Boswell stressed his support for reinstating the lapsed biodiesel tax credit, while challenger Brad Zaun, a member of the state senate, noted that he would not support its reinstatement.

The Iowa Biodiesel Board reached out to Zaun after the debate, requesting a meeting to inform the candidate on the many ways biodiesel benefits his state. The meeting, which took place Oct. 27, was highly successful, says IBB Executive Director Randy Olson. “We had a great discussion with Sen. Zaun, and had the opportunity to provide some facts about biodiesel that he was unaware of,” Olson says, noting that the senator clearly appreciates our

nation’s initiative to reduce its dependence on foreign oil. “He expressed emphatically that he wants to see biodiesel succeed,” Olson continues. “Whether senator Zaun is working for us in Washington or in Des Moines, I am confident he will be a strong supporter of biodiesel because of its importance to Iowa’s economy and our nation’s energy security. All in all, it was a good meeting. For a candidate to take 45 minutes out of his very busy schedule less than a week before an election clearly showed that he was interested in learning more about biodiesel and its importance to Iowa and the nation.”

While Zaun will continue to serve Iowa in the state legislature, he was narrowly defeated by Boswell for a seat in the U.S. House of Representatives Nov. 2. —Erin Voegele

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FRONTEND

Worth Remembering The Center for a New American Security reminds us what renewable fuels mean for the future It’s no secret that if the U.S. military can be fueled, so can just about anything that needs fueling. For petroleum providers working with the U.S. Department of Defense and its large supply of aircraft, ground vehicles, ships and weapons systems, life has been pretty good. Nearly 77 percent of all fuel needs for the DOD comes from petroleum, which is no surprise. Think things are going to change? A quick look at the life span of a typical military vehicle, fighter jet or submarine and their fueling requirements, for instance, might suggest the status quo is here to stay, but numbers from the U.S. Energy Information Administration indicate that the DOD may have no choice but to integrate renewable fuels like biodiesel.

According to the EIA, world energy demands will increase from a 2007 level of 495.2 quadrillion Btu all the way to 738.7 quadrillion Btu by 2035. Global petroleum use in 1980 called for roughly 63 million barrels of oil per day. Today the U.S. consumes more than 85 million barrels per day and, if trends remain unchanged, by 2035 global demand will equal 110.6 million gallons per day. If you haven’t heard, global oil reserves are shrinking as well. So what should we do? A team from the Center for a New American Security went looking for an answer. Here’s what they found.

In a report titled, “Fueling the Future: Preparing the Department of Defense for a Post-Petroleum Era,” Christine Parthemore, fellow at CNAS, and John Nagl, president, pointed out what many have been touting for some time: “It is not prudent to assume that supplies will be readily available to the United States three decades hence; nor is it wise to perpetuate the geopolitical, operational and environmental costs indefinitely.”

Ensuring that the DOD can function on nonpetroleum fuels in 30 years, they say, is a conservative approach to hedge against

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economic, political and environmental constraints of the future.

The goal of instituting renewable fuels, according to the report, should receive immediate attention and represent the main path forward. “Other goals debated in recent years, including a goal of simply increasing the efficiency of petroleum use or a static reduction in overall fuel consumption, will be insufficient.” They note that since the 1970s, America’s energy efficiency has grown, but, not surprisingly, so has overall petroleum demand. “Gains in efficiency are necessary and important,” they say, “but there is a danger that too heavy a focus on

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efficiency over a long-term timescale will mask an increasing reliance on petroleum.”

While reports like these reaffirm what many already know, this particular report points out something worth remembering.

If the DOD implements a change towards renewable fuels, it can avoid unbearable fuel costs while guaranteeing its ability to protect the U.S., the report says, “regardless of the availability of petroleum-based fuels.”

—Luke Geiver

FRONTEND

Trucking towards Higher Efficiency New fuel efficiency and GHG reduction standards proposed for trucks When it released proposed regulations to establish the nation’s first standards to improve the fuel efficiency and reduce greenhouse gas (GHG) emissions of medium- and heavy duty vehicles, the U.S. EPA and U.S. Department of Transportation's National Highway and Traffic Safety Administration took a historic step towards putting more energy efficient diesel vehicles on U.S. roadways. The new regulations are an extension of similar requirements established for light-duty vehicles earlier in the year.

Although both RFS2 and the newly proposed regulations aim to reduce GHG emissions from transportation vehicles, the means to achieve those reductions are very different. RFS2 aims to reduce the GHG emissions through the use of renewable fuels, while the proposed GHG emissions and fuel efficiency standards seek to achieve reductions through greater vehicle efficiency via better engineering and design.

“We are proposing a strong and comprehensive national program that will oversee fuel efficiency standards for medium- and heavy-duty vehicles, whether pickups, vans, buses or semi-trucks,” says DOT Secretary Ray LaHood. “This will be a win-win-win. It will reduce our reliance on oil, strengthen our energy security and mitigate climate change.” Although the new proposed regulation affects both gasoline and diesel-powered heavy-duty vehicles, the impact on the diesel community will be far more pronounced.

“More than 95 percent of all heavy-duty trucks are diesel-powered, as are a majority of medium-duty trucks,” says Allen Schaeffer, executive director of the Diesel Technology Forum. “Diesel power is the driving force today of goods movement by truck in our economy. This proposal clearly envisions clean diesel power as the centerpiece of freight transportation in the clean energy

EFFICIENCY INCREASES: Proposed fuel efficiency and GHG reduction standards for medium- and heavy-duty trucks are expected to achieve up to 20 percent reductions in carbon dioxide emissions and fuel consumption by model year 2018.

categories of vehicles: combination tractors, heavy-duty pickups and vans, and vocational vehicles. Each of the three categories is further broken into several subcategories based on different elements, such as weight class, cab type, payload, towing capabilities, presence or absence of 4-wheel drive, or other identifying characteristics. Specific standards are designed for each applicable subcategory of vehicle.

EPA Administrator Lisa Jackson says, “Altogether, greater fuel efficiency will save Americans $41 billion, with the added benefit that much of the money will be able to stay at home in the U.S. economy rather than buying oil from overseas.”

—Erin Voegele

A New Method The first rapid-screening FAME detection method The ability to test low levels of fatty acid methyl ester (FAME) content in jet fuel has been sought by pipeline operators and jet fuel distributors for years. SetaAnalytics, a division of Stanhope-Seta, recently announced that the Energy Institute in London has now published a new test method, IP 583, the first for rapid screening of FAME in jet fuel. The patented “Fame In Jet Instrument” has been in development for more than three years and offers the industry a rapid and easy check on parts per million (ppm) levels of FAME in aviation fuel. FIJI utilizes state-of-the-art Fourier Transform Infra-Red Spectroscopy technology and a patented sample prepara-

tion system allowing FAME detection accuracy down to the 20 ppm level. FIJI is fully automatic so no specialist operator training is involved. Tests take less than 20 minutes. A key advantage over current analytical FAME in Jet methods is FIJI’s ability to detect all types of FAME in the range C8 to C22. Current DEF STAN 91-91 and ASTM D1655 specifications state a maximum safe limit of 5 ppm in aviation fuel, but an industry-wide research project is currently evaluating the effect of FAME at higher concentrations.

The lifting of the 5ppm limit to a higher level is expected as a result of the research project, states SetaAnalytics. —Ron Kotrba

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Development in Progress Proposed projects still move forward, potential suitors assess idled plant Although the biodiesel industry isn’t exactly a model of success when it comes to economic prosperity today, plant developers are taking strategic approaches before they foray into the market.

“Taking the time and doing the research, and really learning from other peoples’ situations I think has made us a lot stronger,” says Jon Hall, president and CEO of Bio-NRG LLC. The Mt. Pleasant, Iowa-based company intends to break ground on a 15 MMgy multifeedstock plant on 15 acres of land in LaHarpe, Ill., by 2011 with commercial operations slated for 2012. According to Hall, the $38 million plant will initially use soy oil from a soybean crushing facility to be built on site. In the future, Hall says, the company plans to incorporate an algae process that could be used to provide an alternative feedstock. When constructed, the plant will have the capability to produce soybean oil, meal, hulls, biodiesel, glycerol products, algae oil and algae biomass. “We’re doing everything we can to identify and exploit some of these other alternative feedstocks out there than just using traditional methods,” Hall says, adding that the company had finalized the project’s debt financing package and permitting was awaiting approval.

Central Missouri Energy plans to build a 10 MMgy biodiesel plant in Fulton, Mo., using jatropha oil as feedstock, but the future of the project rests on securing financing, according to Fulton

Area Development Corp. President and CEO, Bruce Hackmann.

“The principles of the project still feel very confident in the plan they have,” he says. “It’s just really a matter of the financing at this point.” CME’s original cost of the project was $40 million, but logistical issues surrounding how the plant would source the jatropha from Mexico via rail or truck complicated how lenders have assessed the feasibility of the project, Hackmann says. “They had been working on getting funding for this project for three years,” he says. “We’re still optimistic. It’s not dead by any stretch of the imagination.”

Meanwhile, preliminary discussions began with a potential buyer for the 8 MMgy BEST BioDiesel Cashton LLC biodiesel plant in Cashton, Wis., but financing has not yet been finalized, according to Laxson Boyd, principal for Wadsworth Whitestar Consultants, a turnaround consulting firm assigned to maintain and market the plant for sale. “We’re certainly finding it a challenge to locate a buyer who has access to funds and who is interested in operating a biodiesel plant under the current circumstances,” he says. “The senior lender in this situation is certainly interested in finding a buyer as quickly as possible, but not at a price that means essentially walking away empty handed from the sale.” —Bryan Sims

Sounds Good, Looks Even Better

PHOTO: W.R. GRACE & CO.

A silica gel producer has good things to say about biodiesel―and the evidence to prove it

WATCH AND LEARN: W.R. Grace & Co. has big plans for silica gel production at two facilities, based on positive predictions for biodiesel's future.

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Sometimes it’s better just to watch than to listen, but in the case of W.R. Grace & Co., a little of each might be the perfect mix to reveal the future of the biodiesel industry in developing countries. W.R. Grace, a catalyst provider from Maryland, says, “The global renewable fuels industry is expected to grow significantly over the next several years, especially in the emerging economies of Latin America and Asia Pacific.”

At existing facilities in Kuantan, Malaysia and Sorocaba, Brazil, the company will expand the manufacturing capabilities of silica gel, specifically its very own TriSyl. The gel, which removes contaminants from natural oil feedstocks more efficiently than alternative products, reduces plant effluents

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(from the filter cake and centrifuge effluents) and, in some cases, can even make it possible to remove both the primary and water wash centrifuges, and its production will be ramped up, “particularly for the production of biodiesel and renewable diesel,” according to W.R. Grace.

The Kuantan site already produces more than 40 grades of silica for applications ranging from plastics to consumer goods, apart from biodiesel production use. The Sorocaba facility, operating since 1984, is already the largest in Latin America according to the company, producing more than 50 grades of silica. Construction will begin by the end of the year and production of the gel will start by the third quarter of 2011. —-Luke Geiver

FRONTEND

Got Theft?

Most biodiesel producers who use waste cooking oil as feedstock have heard about this, and many likely have experienced it. At 2 a.m., in the dark alley behind a local restaurant or at the back entrance in the parking lot, a van, or sometimes an expensive collection truck, rolls up to the waste grease collection container, pumps out as much waste oil as possible and leaves without ever being noticed. Under these conditions, the interloper is most likely stealing waste oil from a contracted collector.

“Everybody that I know in the industry has told me that they have had oil stolen,” says Jason Biddle, chief sales officer for an up and coming biodiesel producer in Escondido, Calif., Buster Biofuels.

“We were losing around $1,000 dollars a month, and that is just to resell the oil,” Biddle says. “If we were making biodiesel it would be a lot higher.” Biddle’s case is typical and as he points out, he’s not alone.

In recent national news, two men were charged for stealing 700 gallons of waste oil from a Five Guys Burgers and Fries location in New Jersey on two separate occasions. Biddle notes that, at one point, he spoke with several other waste oil collection companies from his area about hiring a private investigator in the hopes of halting the problem. The National Renderers Association has also taken action and is currently working on a study to document just how much grease recyclers are losing to theft.

“The larger companies account the theft and the thievery into their profit and loss,” Biddle says, but his company, Buster Biofuels, can’t afford to lose any amount. Luckily, Biddle has put in the time and found a few answers to stop, at least for now, the problem. After spending nearly a week staked out at various locations in the middle of the night, the lack of sleep was enough for Biddle. “I called three of my competitors and told them I was setting up a sting operation and since I have done that, we haven’t had any oil stolen.” Biddle

PHOTO: LUKE GEIVER, BBI INTERNATIONAL

Waste oil thieves are everywhere, so here’s how to stop them

GREASE CRUSADERS: Small-scale grease collection and biodiesel companies like Buster Biofuels can't afford to lose any waste grease to theft.

says just letting anyone else in an area who might consider slipping in during the night to steal oil know that the area will be under surveillance has worked for him. If at some point it stops working, he will consider cameras.

And he points out how to determine what type of thief you are dealing with. Biddle says a few locations that kept getting hit were most likely a home biodiesel producer, because the theft only amounted to five or ten gallons. “That is all they can fit in their car,” he says. For larger amounts, think about what Biddle says. “Nobody is just going to drive around with a $40,000 pumping truck unless they are licensed.” —Luke Geiver

Vilsack’s Blessing USDA secretary continues to support biodiesel

BIODIESEL BACKER : A staunch supporter for reinstating the biodiesel tax credit, USDA Secretary Tom Vilsack urged producers to be more efficient and find ways to incorporate new feedstock in light of tough economic times.

Clearly the absence of a tax credit has created an economic blow to the biodiesel industry, causing a dramatic drop-off in production volume, job loss and an overwhelming shadow of uncertainty. In light of its struggles, USDA Secretary Tom Vilsack didn’t turn a blind eye on this glaring fact when he addressed those concerns during a speech in October to the National Press Club in Washington.

In his presentation, Vilsack highlighted how the lapsed tax credit has severely undercut jobs, adding that he supports a renewed incentive for producers.

Vilsack said, “We have already seen what happens when incentives are withheld too quickly. The lapse of the biodiesel tax credit cost the industry jobs—nearly 12,000 jobs were lost as production was cut in half once

the credit lapsed, according to industry estimates—and these are jobs we can’t afford to lose. But, tax credits, by themselves, are not enough. Our effort must include identifying additional feedstocks available throughout the country while discovering more efficient production processes. Research and development must intensify.”

Manning Feraci, vice president of federal affairs for the National Biodiesel Board, says, “We look forward to collaboratively working with the USDA to develop new and existing lipid sources that can be used to produce biodiesel. The U.S. biodiesel industry has been, and will continue, working with a broad range of stakeholders to urge Congress to seamlessly extend the biodiesel tax incentive when it reconvenes after the elections for the lame-duck session.” —Bryan Sims DECEMBER 2010

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Paving the Road to New Pathways EPA continues work on palm oil-based biodiesel The U.S. EPA has been working to approve new fuel pathways for biodiesel in the past year. While a pathway for canola oil was approved in mid-2010, the industry is still awaiting the approval of one for palm oil.

According to EPA Spokeswoman Cathy Milbourn, the agency is actively working on the palm oil pathway as part of a supplemental analysis to the final rule for RFS2. The next step in that process, she says, is issuing a notice of data availability when the agency has preliminary results.

However, Mibourn was unable to offer an estimated timeframe for this action. Surprisingly, Milbourn confirms that EPA has not yet received an official petition for a pathway review and determination for jatropha.

While pathways for palm oil have yet to be approved, that does not necessary negate the possibility of producing renewable identification numbers (RINs) for palm oil-based biodiesel. In July, the EPA proposed a provision that would allow for “delayed RINs.” The measure would allow certain producers of renewable fuels, including those using palm oil as a feedstock, to generate RINs for fuel produced in 2010 as long as the agency determines the fuel pathways of these feedstocks meet the required greenhouse gas reduction thresholds. The proposal was also set to apply for the canola oil pathway, which was approved earlier this year.

—Erin Voegele

Petition requirements for new fuel pathways Type of feedstock and description of how it fits the definition of renewable biomass Market value of feedstock List of other uses for the feedstock List of chemical inputs needed to produce the feedstock and prepare it for processing Energy needed to obtain, deliver, plant, harvest, and modify the source to create the feedstock Current and projected future yields of the feedstock Available supporting information, and information requested by the EPA administrator PETITIONING FOR PATHWAYS: The U.S. EPA offers comprehensive guidance on the petition process for new renewable fuel pathways on its website at http://www.epa.gov/otaq/fuels/renewablefuels/ compliancehelp SOURCE: U.S. EPA, NEW GUIDANCE ON THE PETITION PROCESS FOR EVALUATION OF NEW RENEWABLE FUELS AND PATHWAYS UNDER 40 CFR 80.1416

Cross-Country Commodity Crude jatropha oil (CJO) has a track record as being a good feedstock for biodiesel production, but Australia-based renewable energy and biodiesel producer Mission NewEnergy Ltd. has found markets in which CJO could be used for other applications. In October, MNE sold and shipped 20 metric tons of unrefined crude jatropha oil at approximately $130 per barrel to one of Europe’s largest power companies, for energy generation. The shipment, according to James Garton, MNE’s head of corporate finance and M&A, represents a 60 percent premium compared to prevailing crude oil prices. “The shipment was a demonstration that there are multiple markets for crude jatropha oil other than biodiesel,” he says. “From our perspective, it’s a major milestone for us.”

The CJO shipment to Europe falls in line with a milestone the company achieved in June when it crushed and shipped 188 metric tons of crude CJO to its operating 100,000 metric ton (30 MMgy) biodiesel facility in Kuantan Port, Malaysia. The company is in the process of commissioning a 250,000 metric-ton-per-year plant adjacent to the Kuantan Port facility. Though it used traditional pressing methods to crush its 1,500 metric tons of seed, MNE plans to introduce solvent extraction methods to increase oil yields.

Even though both plants now use crude palm oil as feedstock, the latest shipment of CJO to the European power provider, according to Garton, doesn’t dismiss the company’s goals for using CJO as a feedstock for its production plants. “That’s not to say that we intend BIODIESEL MAGAZINE DECEMBER 2010 16 z

PHOTO: MISSION NEWENERGY LTD.

Why crude jatropha oil is more than just a biodiesel feedstock

A JATROPHA GIANT: Mission NewEnergy's 100,000 ton (30 MMgy) biodiesel plant, located in the foothills of Kuantan Port, Malaysia, will soon use crude jatropha oil in conjunction with palm oil feedstock.

to move away from using CJO [for] our biodiesel production,” he says. “The European shipment is a milestone equally measurable to our first crush, or our first jatropha planting.”

Since 2007, MNE has planted jatropha seeds on its 180,000 acres of land in India. Based on median estimates, MNE’s jatropha operations are expected to yield approximately 1,300 pounds of CJO per acre, which represents more than 20 million barrels of supply over 30 years. With those figures, Garton says, there is more than enough demand for sustainable crude oils such as CJO for use in energy generation in Europe that currently exceeds MNE’s expected supply.

He adds, “We expect to generate a 300 percent increase compared to what we had this year.” —Bryan Sims

FRONTEND

Registering for the Future The U.S. EPA has issued a new list of producers registered under the RFS2 program With 2010 coming to a close, the biodiesel industry seems eager to leave the sometimes awkward transition to RFS2 in the past. Although delays in implementation of the program did pose some challenges, the outlook for the program in 2011 is looking up. In October, the U.S. EPA released an updated list of renewable fuel producers that have completed new registrations under the RFS2 program, which is a prerequisite for the generation of renewable identification numbers (RINs). According to the document, a total of 317 renewable fuel producers have completed the process to date. While these represent both ethanol and biodiesel producers, National Biodiesel Board Vice President of Federal Affairs Manning Feraci notes that approximately 40 percent of those facilities produce biodiesel.

“Right now, 133 plants representing over 1.9 billion gallons of production capacity have registered with the EPA under the RFS2 program,” Feraci says. “In addition, there is ample feedstock available to meet and exceed the 800 million gallons of biomassbased diesel that must by law be used domestically in the U.S. in 2011.” Biodiesel plants that have not yet completed new registrations and those that need to update registration information under the RFS2 program can complete registration activities through the EPA’s online Central Data Exchange (CDX) system.

According to the agency, an engineering review must be submitted and accepted by the EPA as part of the registration process. Existing plants that are operating and generating RINs were required to submit these reviews by July 1. However, renewable fuel producers are still able to complete the registration process by submitting the engineering review 60 days prior to the generation of RINs. The EPA also states that the agency has no set deadline for approval of engineering review. Rather, the agency will approve the review when the staff determines it is complete and meets all necessary requirements. Subsequent engineering reviews must be completed every three years, and when changes are made to a facility that will result in fuel production that does not fit into the original registration category.

Major registration requirements for domestic producers Documentation of construction commencement date Types of renewable fuel and coproducts a facility is capable of producing List of feedstocks likely to be employed Description of production process Completion of applicable engineering review SOURCE: FINAL RFS2 RULE

Biodiesel plants that are ready to register under the RFS2 program don’t have to go it alone. The NBB can provide assistance to help producers understand and comply with the program's many requirements. “Successful implementation of the RFS2 program is a top priority for the NBB, and the NBB has held multiple seminars and webinars to help biodiesel producers navigate the RFS2 program’s various compliance requirements,” Feraci says.

“NBB members can also access a host of tools and information to help them navigate the program on our website, and the NBB’s February 2011 conference in Phoenix, will provide additional information that will be invaluable to any stakeholder in the biofuels marketplace.”

While many biodiesel plants have been operating at below capacity due to economic conditions and the expiration of the biodiesel tax credit, rising RIN prices and 2011 RFS2 volume requirements should help nudge a ramp-up in production.

—Erin Voegele

Coming to a Town near You The ATA offers free biodiesel training courses Feeling out of the loop on biodiesel and clean diesel technology? If so, there’s still hope to catch up. The Automotive Training Authority is offering free green aftermarket training courses on hybrid and compressed natural gas vehicles, and biodiesel and clean diesel technology. The courses are intended for automotive repair shop owners, technicians and fleet maintenance managers, and

are made possible through a federal alternative fuel training grant.

The biodiesel- and clean diesel-related training will cover biodiesel production and what clean diesel technology is. For training schedules, contact the ATA at (800) 575-4ATA or email Haru Lindsey at haru@ataautomotivetraining.com. —Ron Kotrba

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Foundation Focused on Industry Advancement As the executive director of the National Biodiesel Foundation, I have the privilege to work alongside a dedicated, hardworking board of directors: Darryl Brinkman, John Heisdorffer, David Womack, and Beth Calabotta. This board, on behalf of the NBF, strives to accomplish outreach, education, research and demonstration activities for the advancement of biodiesel and its coproducts to improve rural economic development, national security, air quality and the environment.

Established in 1994, the NBF is a national organization working to support the expansion of biodiesel in the marketplace. As such, over the past several years, we have been successful in many educational and promotional events. For example, in 2009, NBF partnered with the state of Arizona to promote biodiesel through the Capital Christmas Tree Campaign.

Tom Verry This project funded the fuel for the vehicles executive director, National Biodiesel transporting the Christmas tree from Arizona Foundation to the city of Washington. This was the first year the tree was transported using an alternative fuel and was an excellent opportunity to promote and educate the general public on the benefits of biodiesel.

In addition, we have worked with Clean Cities coalitions across the nation to host fuel quality workshops. We have also received two U.S. DOE Clean Cities grants to promote renewable fuel education and develop biodiesel infrastructure.

Plans for 2011 include working with the National Biodiesel Board on water and greenhouse gas life cycle analysis for biofuels, increasing awareness of Bioheat through educational programs, and continuing to develop biodiesel infrastructure projects. These projects as well as others could not have been accomplished without taxfree contributions from individuals and organizations like yours.

Get Involved As 2011 approaches, we are preparing our annual silent auction that will be showcased during the 2011 National Biodiesel Confer-

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ence & Expo in Phoenix. We are requesting tax-deductible donations (cash, goods or services) to be combined into auction packages or to stand alone. Funds raised by this event will support our industry priorities. This is a unique opportunity to gain visibility during the conference while supporting this great cause. If you would like to donate a service or item, please contact me. General donations can be made through our website at www.biodieselfoundation.org or by mailing checks to:

The National Biodiesel Foundation PO Box 104898 Jefferson City, MO 65110-4898

The NBF staff and directors work closely with the NBB as we support educational and research projects consistent with the needs of the industry. The NBF is a 501 c (3) nonprofit and accepts taxfree contributions from individuals and organizations. With your tax-deductible donation, we can continue our important work with biodiesel—the domestically-produced, renewable and sustainable energy source that moves our country one large step closer to energy independence.

If you would like more information on the NBF, its auction, or its 2011 open solicitations, please contact me at (800) 841-5849.

I welcome the opportunity to talk with you. Remember, your active support is essential to the biodiesel industry.

Tom Verry, National Biodiesel Foundation Executive Director

inside

NBB NBB works to help stakeholders navigate RFS2 program The renewable fuel standard (RFS2) for the first time provides for a specific renewable component in U.S. diesel fuel. Throughout the rulemaking process, the National Biodiesel Board employed a variety of legal, lobbying, media, and grassroots assets to encourage the U.S. EPA to implement a workable program.

In 2011, 800 million gallons of biomass-based diesel, which is primarily biodiesel, must be used domestically in the U.S. This volume requirement will increase to 1 billion gallons in 2012, and from 2012 through 2022, the minimum volume requirement is 1 billion gallons.

The statute gives the EPA administrator the ability to increase the biomass-based diesel obligation.

The U.S. biodiesel industry is ideally positioned to take advantage of this opportunity, and the NBB has been working to help stakeholders navigate the new program. “We are providing information to our members that will help them comply with the program in the most efficient way possible,” said NBB Senior Advisor Larry Schafer. “The first time through this process is difficult, and we are trying to demystify the program.”

NBB offered a series of workshops, including on-site training in Houston, Los Angeles, New York, Atlanta, Des Moines and 10 webinar sessions. Key components of each workshop are available online for viewing. NBB members who were unable to attend the workshops or webinars can find the information on the members-only website on the members homepage, at the media center button. The videos cover a wide variety of information that is extremely important to participating in RFS2.

Another new service NBB offers for its members is the addition of an RFS2-registered plant list on the NBB website. This list is provided as a resource for obligated parties to find biodiesel for purchase in their area. As each member plant becomes registered with the EPA, their plant information is added to the site. This is just another way to make the implementation of RFS2 as seamless as possible.

Industry continues to stress quality and continual improvement As the petroleum industry has become more confident in meeting the ultra-low sulfur diesel (ULSD) sulfur requirement of 15 parts per million maximum, it has started to squeeze every ounce of profit from ULSD operations. This has resulted in changes in the composition of ULSD, which is having unexpected effects with both petrodiesel alone and with some biodiesel blends. Some petrodiesel alone is exhibiting tank corrosion and internal injector deposits not observed before. And although rare, some petrodiesel blended with biodiesel is exhibiting filter clogging above the cloud point as the temperature gets lower. Since one of the benefits of biodiesel is its ability to be blended seamlessly with petrodiesel, ASTM is considering changes to the existing B100 specification (ASTM D6751) to address even these rare occurrences with petrodiesel/biodiesel blends.

To tackle this issue, the technical expert members of ASTM are proposing a new grade of B100, a No. 1-B grade, with tighter con-

trols on minor components that serve as predictors for the phenomenon. The current specification parameters in D6751 would become a No. 2-B grade of B100. Either grade could be used at any time of the year. The proposed No. 1-B biodiesel would be an option to help insure operation of finished blends down to their cloud point, if blends with No. 2-B exhibit filter clogging above the cloud point.

Engine makers and diesel customers gain confidence from the fact that biodiesel has an ASTM specification (no other alternative for diesel fuel has an ASTM specification at this time) and that the industry is committed to continually improving the existing specs, and therefore the quality of the fuel. This bodes well for biodiesel, the first commercially available advanced biofuel, as a low-cost option for reducing harmful greenhouse gases and meeting the new renewable fuel standard (RFS2) requirements for the use of more than 1 billion gallons of advanced biofuels in 2012.

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insideNBB

Annual survey shows public opinion of biodiesel positive, but soft The National Biodiesel Board’s annual survey showed that while familiarity with biodiesel has grown significantly over the past years, the public still has a lot to learn about alternative fuels.

The survey was conducted among 1,000 representative voters around the country. It showed that NBB sustainability awareness and communications efforts are helping to ensure the positive perception of biodiesel and sustainability are maintained. Excerpts of findings from the survey conducted by Moore Information tell the story: “Annual voter survey results show that today, a wide majority of voters (76 percent) across the country are aware of biodiesel. In the November 2009 survey, awareness was identical (76 percent aware).

“We find those familiar with biodiesel have a positive impression of the product. Today, 52 percent of voters have a positive impression of biodiesel, only 4 percent have a negative impression, another 37 percent have no opinion and the remaining 7 percent are unsure.

In September 2009, biodiesel’s image among those aware was similar (53 percent positive, 8 percent negative and 32 percent no opinion).

Net positive responses (those who have a positive impression of biodiesel) increased from 45 percent last September to 48 percent this year.”

The survey also explored voters’ perceptions of biofuels. Nearly half of voters had no opinion about each of six statements about biofuels, an indication that many are still not familiar with these products. Voters were most likely to have opinions about the following four statements, widely describing each as “true.”

• Biodiesel reduces emissions compared to petroleum (53 percent true/6 percent untrue)

NBB Voter Survey Samples Voters’ Impression of Biodiesel

Annual voter surveys help the National Biodiesel Board gauge public opinion and monitor program success. The September 2010 survey showed the majority of voters have a positive impression of biodiesel.

• Replacing petroleum with biodiesel is good for the environment (53 percent/5 percent) • Biodiesel is an advanced biofuel (50 percent/7 percent) • Biodiesel is sustainable (50 percent/7 percent) These survey results demonstrate the significant opportunity for additional biodiesel education in order to secure long-term support for the fuel and keep biodiesel myths from permeating. For more detailed analysis of the Moore Information survey, visit NBB's members-only website or contact the communications office.

Become ‘Lord of the RINs’ at the National Biodiesel Conference & Expo The renewable fuel standard (RFS2) is now in place, and is set to open demand for biodiesel like never before. Educational opportunities at the 2011 National Biodiesel Conference & Expo, Feb. 6-9 in Phoenix, will help you understand how this impacts your business, what demands it will place on you, and how you can make the most of it for a competitive edge.

We have scheduled educational sessions specifically focusing on the RFS2, including commodity and risk management within the RFS2 framework, and the petroleum industry’s outlook on fulfilling biodiesel obligations. Plus, all conference registrants can attend a free half-day RFS2 training workshop on Wednesday, Feb. 9. The workshop will incorporate:

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• EPA Moderated Transaction System training • RIN training • Forms completion training • General Q&A This training will make your biodiesel business more efficient in an RFS2 world. Advance your business at this all-encompassing biodiesel industry event.

Visit the official conference website www.biodieselconference. org for easy online registration. The website is also home to schedules, lodging information, area attractions and many other helpful links.

insideNBB

NBB members guide association priorities National Biodiesel Board members play a major role in defining the long-term objectives and programs for their trade association. This month, NBB members have been asked to complete an online survey to provide input and identify priorities for the draft 2012 NBB Program Plan, which will cover October 2011 to September 2012.

The survey is part of an extensive planning process to capture member input and share association priorities. NBB staff and contractors are constantly interacting with biodiesel companies, regulators, users, engine and vehicle companies and distributors to better understand the needs and priorities of the industry. NBB gathered input on the technical program through participation in the Biodiesel Technical Workshop, which NBB hosted in November in Kansas City. Also in November, the membership meeting in St. Louis

provided another opportunity to give input to the planning process.

During this meeting, the standing committees (Regulatory, Trade, Technical and Marketing) convened and discussed issues the industry would be facing in 2012.

In addition to committee meetings, direct member input, and a survey, the program plan development also includes a webinar presentation and member review, which will be held in January. Finally, the comprehensive, directional plan for the biodiesel industry will be the No. 1 order of business at the membership meeting held during February’s National Biodiesel Conference & Expo in Phoenix.

This extensive input process allows NBB to prepare a clear direction to ensure the trade association continues to meet members’ needs.

NBB touts biodiesel at industry events One of the priorities of the National Biodiesel Board is to represent biodiesel at industry events, and this fall was packed full of important meetings, conferences and trade shows. NBB staff continues to participate in events across the country including policy discussions, fleet conferences, regional U.S. DOE Clean Cities events, sustainability workshops and many others. These events offer opportunities to share information about NBB programs, to promote biodiesel to related industries, and to educate both the media and the general public.

The events cover a wide variety of audiences with a differing level of biodiesel knowledge. Discussions range from petroleum equipment compatibility in legacy equipment, to informing people where they can find biodiesel.

“Many of the questions we hear are either general information about biodiesel or very specific to some key issue,” said NBB Communications and Member Specialist Kaleb Little, regarding recent events.

For example, at a fleet show in San Diego, attendees were very interested in California underground storage issues, while at a biotechnology conference in South Dakota people wanted to know about feedstock development and new production technologies.

Little attributed this difference to the specific audiences at each event, but emphasized the continued need for biodiesel outreach.

Attending events and trade shows is just one of the ways NBB represents the biodiesel industry.

“We always get questions about cold flow properties, biodiesel handling, availability and sustainability topics, no matter where we are,” Little added. “I think it confirms why we are out there talking to people about biodiesel.”

Attending events and tradeshows is just one of the ways NBB represents the biodiesel industry and is a key part of an ongoing effort to educate fleet managers, decision makers and opinion leaders on the benefits of biodiesel.

NBB welcomes new members EcoEngineers—Des Moines, Iowa

San Francisco Public Utilities Commission—San Francisco

Amerigreen Energy Inc.—Manheim, Pa.

Southeastern Biodiesel Solutions Inc.—Creola, Ala.

Thumb BioEnergy LLC—Troy, Mich.

Sullens Biodiesel LLC—Morrison, Tenn.

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PHOTO: RON KOTRBA, BBI INTERNATIONAL

BusinessBriefs

Companies, Organizations & People in the News

anopoulos, an MIT professor of chemical engineering leading the project, the technology utilizes an engineered microbe to convert carbohydrate feedstocks into lipids.

While Stephanopoulos notes that he is unable to disclose specific details of the process due to its proprietary nature, he says that the patent-pending technology can be applied to a wide portfolio of carbohydrate feedstocks, including sugars, glucose, glycerin, hydrolysates from biomass and algae.

BIODIESEL GUY: Ed Burke has been pushing the benefits of biodiesel in the Boston area community for years.

The state of Massachusetts recently renewed its biodiesel contract with Chelsea, Mass.-based fuel distributor Dennis K. Burke Inc. The bid enables all public entities to purchase biodiesel from Dennis K. Burke, including department of public works, state hospitals, correctional facilities and universities. Massachusetts is expected to purchase about 750,000 gallons of blended biodiesel under this contract. Chairman of the board Ed Burke says the company has been awarded the state contract since 2007, and previously had supplied the state with biodiesel blends under pilot programs.

Burke says state agencies are mandated under executive order to use biodiesel blends, and this contract allows them to purchase blends at a discount to retail. The Chelseabased supplier also won a separate bid to supply biodiesel-blended fuel to the city of Boston.

A research team at the Massachusetts Institute of Technology has won a $50,000 ConocoPhillips Energy Prize to support the development of a carbohydrateto-biodiesel process. The technology, which is designed to significantly increase yields, may also provide a pathway for the direct conversion of hydrogen and carbon dioxide into biofuels. According to Gregory Steph-

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Decatur, Ill.-based agribusiness firm Archer Daniels Midland Co. plans to build a 164,000 metric ton (about 50 MMgy) biodiesel facility in Joacaba, Santa Catarina, Brazil. Construction on the plant is slated to begin in March 2011 with completion during the first half of 2012. The Joacaba biodiesel plant will be constructed adjacent to an ADM soybean crushing facility and a vegetable oil refinery. Acquired from Sadia in 1998, these operations currently process nearly 475,000 metric tons of soybeans and are capable of refining approximately 73,000 metric tons of soybean oil annually.

Once operational, the biodiesel production facility is expected to increase oil refining capacity to approximately 110,000 metric tons per year. In addition, the facility will be the first in the state of Santa Catarina, which boasts an ample supply of soybeans produced mainly by small family farms.

Bio-NRG LLC is moving ahead with plans to construct a biodiesel plant in LaHarpe, Ill. The facility, which will be op-

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erated under the name LaHarpe-NRG LLC, will have an estimated production capacity of 15 MMgy. According to BioNRG President and CEO Jon Hall, the new facility has been uniquely designed to be economically feasible.

The business model for the LaHarpe plant is for a vertically-integrated biorefinery. The city of LaHarpe recently commissioned a third-party feasibility study of the project to ensure the projected economics of the plant add up. The results of that study, completed by Tennessee-based Frazier Barnes & Associates, were overwhelmingly positive.

Thomas J. Tobin has joined Sandmeyer Steel Co. as District Sales Manager in its Midwest sales territory.

He will service customers in Illinois, Wisconsin, Minnesota, Iowa, METALS MAN: Tom Missouri and Kansas. Tobin brings more than 20 years of Tobin brings with him experience in metal more than 22 years of sales to Sandmeyer metals sales experience, Steel Co. mainly with Special Metals Corp. in West Virginia and Tempel Steel Co. in Chicago. He earned his bachelor’s degree from Washington & Jefferson College in Washington, Pa., and his MBA from Xavier University in Cincinnati. The family-owned and managed Sandmeyer Steel was founded in 1952 and is a leading producer of stainless steel and nickel alloy plate products used in capital equipment for the chemical and other process industries. The company services customers throughout the world.

China Integrated Energy Inc. closed on the acquisition of a newly constructed 50,000 metric ton (15 MMgy) biodiesel production facility from Chongqing Tian-

BUSINESSBRIEFS Sponsored by run Energy Development Ltd. in Chongqing City, China. According to CIA, the newly-acquired plant is located adjacent to the company’s existing 100,000 metric ton facility in Tongchuan City, Shaanxi Province, China. The company expects to conduct initial testing in December, followed by ramping up production. The company says it paid approximately $16.5 million in cash from the $58.7 million it had in hand as of June 30 for the Chongqing Tianrun biodiesel plant. CIA anticipates that the acquisition could add approximately $32 million in revenue and $8 million in pretax income in 2011.

and ensuring successful deployment of Autodesk’s software.

General Biodiesel Inc. tapped digital prototyping and piping and instrumentation diagramming (P&ID) software from Autodesk Inc. to streamline the production process at its 15 MMgy multifeedstock facility in Seattle. The improvement project cut more than $500,000 on traditional upgrade costs to the plant, according to the company. As part of its plant improvements, General Biodiesel used Autodesk Inventor and Auto CAD P&ID software to design a sophisticated pretreatment system that allows higher yields from converting used cooking oil into biodiesel. By using Autodesk Inventor software, General Biodiesel could produce compelling 3D digital prototypes of the plant and equipment to quickly visualize and explore the viability of proposed changes. The company also used AutoCAD P&ID to generate the bill of materials, making for more accurate reports and saving money through greater efficiency. Autodesk’s partner IMAGINiT assisted with training

According to a new report from Pike Research, algae biofuels production will grow rapidly over the next decade, reaching 61 million gallons per year and a market value of $1.3 billion by 2020. While barely a drop in the bucket for biofuels, this represents a compound annual growth rate of 72 percent, roughly on par with early development in the biodiesel industry. Pike Research anticipates that, with 50 percent of all algae activity, the U.S. is poised to ramp up production the earliest among world markets. Pilot- and demonstration-scale facilities are beginning to break ground across the country.

The EU market, which is home to about 30 percent of algae activity, will be limited initially by the industry’s focus on university research, and later by insufficient access to water, land and nutrient sources.

Latin America and Asia Pacific, which are home to fewer projects in operation today, are set to gain significant market share in the long run.

Aurora Algae Inc. is constructing a demonstration-scale algae facility in northwestern Australia, which is expected to be operational by the end of the year. Plans for an adjacent commercial-scale plant are also underway. The company, formally known as Aurora Biofuels Inc., recently changed its name to reflect a new focus.

While Aurora plans to initially focus on the production of high-value algae-based products, such as Omega-3 fatty acids, the company hasn’t abandoned the idea of biofuels production. Aurora has developed a pale green cultivar of algae that lets light penetrate farther into the pond and creates a much higher yield in production. Aurora has a total of 27 patents for its biology and technology platform.

Enzyme developer Verenium has renewed and extended for five years its joint marketing agreement with Alfa Laval, the heat transfer, separation and fluid handling company, for its patented Purifine PLC enzyme. Under terms of the extended agreement, Alfa Laval will market Purifine PLC to edible oils processing customers in agreed territories and continue its efforts on developing the Purifine PLC enzymatic degumming process. The renewed agreement supersedes the initial agreement announced in early 2009.

SG Biofuels recently announced a strategic partnership with Bunge North America to research and develop a model to process jatropha seeds into a biofuel feedstock.

SG Biofuels President and CEO Kirk Haney made the announcement at the Advanced Biofuels Markets Conference & Expo in San Francisco. Bunge, a global leader in oilseed processing, joins a team of partners, including Flint Hills Resources, a refining and petrochemical company and wholly owned subsidiary of Koch Industries, Life Technologies Corp., a global biotechnology tools company, and others that are collaborating with SG Biofuels to develop jatropha as a viable source for cost-effective, sustainable crude plant oil.

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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EASY CHOICE: In the harshest weather imaginable, Rothsay Biodiesel chooses to run biodiesel blends in more than 137 transport trucks.

PHOTO: MIKE PASZTI, ROTHSAY

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Fleets How fleet managers view the incorporation of biodiesel blends

BY LUKE GEIVER

Ask 10 people what sustainability means and you'll likely get 10 different answers. Some of those answers will, however, begin with alternative fuels like biodiesel, and the proof is in the most obvious of places—public and private fleets. From landfill operations in New Mexico to food transport companies in Canada, a growing number of vehicle fleets are acting on the idea of sustainability by putting biodiesel-blended fuel in their tanks. Coincidentally, even with immensely differing rationale for why they decided to use biodiesel, managers of 5- to 500-vehicle fleets say the same things—that their concerns, the changes and the amount of maintenance required to successfully introduce biodiesel into their vehicles, make a very short list indeed.

In Las Cruces and Dona Ana County, N.M., the South Central Solid Waste Authority runs the Corralitos Landfill—and it does so with biodiesel. For the past four years, the facility has been moving garbage and filling holes with vehicles fired on a B20 blend supplied

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BIG GAINS: The heavy-duty trucks used by the SCSWA run on biodiesel-blended fuel for added lubrication.

PHOTO: MIKE PASZTI, ROTHSAY

by Rio Valley Biofuels, a biodiesel producer just down the street. With only one storage tanker on site, SCSWA receives a 7,500-gallon tanker of B20 every month to fuel its 17 tractor-trailers and garbage trucks. Operating out of a single storage tank might sound like a headache, but it factored in to why the landfill is using B20 today. Patrick Peck, director of the SCSWA, says before the decision was made to use biodiesel at the landfill, a colleague at another facility in California talked to him about it and praised the B5 blend for its lubrication qualities, and after some extensive research into vehicle warranty and conferring with Rio Valley Biofuels, Peck made his decision. “We only have one tank, so I had to bite the bullet,” he says.

“We couldn’t test anything, so I didn’t have much of a choice.”

That was four years ago, and today Peck says, “With biodiesel, it’s so easy to switch that we didn’t have any issues at all.” That’s not to say that Peck and his team didn’t learn anything about using biodiesel to fuel a fleet and heavy equipment. After a faulty air filter installation required a trash truck to be shut down and the engine dismantled for repairs, Peck says the team noticed they could still see the cross hatchings on the cylinder sleeves.

“You could definitely see the lubricant and biodiesel’s effect on the engine parts,” he says. “They were lubricated.” The sight of what Peck calls biodiesel’s effect has made him a firm believer in the fuel. “To me that shows great lubrication properties and that is what we’re looking for, more than anything.” Now, Peck says, SCSWA uses B20 for preventative maintenance as an added engine lubricant.

Even with the qualities biodiesel brings, Peck notes there are some instances when his fleet would not use biodiesel, and a few other issues prospective fleets should consider. The first is fuel quality.

“You really have to make sure you are buying the fuel from a reputable dealer,” he says. The second has to do with time. Peck says if they weren’t going to use a vehicle or a piece of heavy equipment for a long period, six months or so, his crew would

PHOTO: SCSWA

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COVERING THEIR TRACKS: In 2009 alone, Rothsay has removed the equivalent of 130 cars from the road simply by running biodiesel.

flush the system to avoid any caking from the biodiesel. As for additional maintenance or requirements from B20, he says they had a few extra filters on hand, “but as far as the trucks go, we didn’t really see that much of a difference.” Peck says when

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designing fleets, the fuel systems must be looked at and fleet managers should weigh the pros and cons of conversion. But, as for incorporating bio-blends, “Biodiesel is very easy,” he says.

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PHOTO: MIKE PASZTI, ROTHSAY

The Northern Perspective

PHOTO: SCSWA

FREE FUEL: A clean fueling system from the beginning helped Rothsay to implement biodiesel blends into its fleet.

HEAVY OR LIGHT: The SCSWA uses biodiesel blends in everything from heavy machinery to backup generators.

Canadian producer Rothsay Biodiesel runs 137 transport trucks for Maple Leaf Foods Inc. Mike Paszti, director of technical services and innovation for Rothsay, says using biodiesel in its fleet is basically a nonevent, and in terms of maintenance and fleet concerns based on biodiesel, what the fuel does not do is more notable. “The extent of our preparation for running higher biodiesel blends was to have some spare filters and spare dispenser filters on hand, which you should have anyways.� Using biofuels like biodiesel “is not a huge leap,� he says.

The Rothsay perspective is based on three things. First, Paszti says, the company was fortunate enough not to have dirty fuel systems in its filling tanks and vehicles, meaning the biodiesel running through the systems wasn’t “loosening up a bunch of petroleum-based junk,�

Paszti says. Second, Rothsay has worked out the bugs that come with the trucks themselves, bugs that don’t relate to biodiesel. And third, like the SCSWA, Rothsay uses high-quality fuel. The result of those three elements has made Rothsay a major proponent of biodiesel use in even in the most extreme weather conditions.

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USE volved, he says. “What does it cost to have a spare filter? What does it cost to think through a scenario with a roadside failure?

We’re not talking big bucks, we’re just talking good practice.”

For Rothsay, good practice wasn’t always the case, however. Early on, the company blended its fuel by dumping it into an unheated tank followed by a good stir with a stick, Paszti says. A bumpy road filled

To prospective users, Paszti says this about the weather, “You need to understand the environment these trucks are going to operate in. That is by far the most important thing.” Along with the environment a truck will operate in, he also notes the type of usage, running times, routes, starts and stops will help determine which blends to use when implementing biodiesel into a fleet. Cost-wise, not much is in-

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with potholes would do the rest of the blending. “It’s a little bit of a cowboy way to do it,” he says. “I’m pretty sure we did everything wrong, but things still worked out.”

In 2009 alone, the Rothsay fleet’s use of biodiesel resulted in a carbon reduction of roughly 700 tons, the equivalent of removing nearly 130 cars from the road. And while its early approach to implementing biodiesel might not exactly meet today’s “best practice” model, its maintenance claims and positive messages should not be taken lightly. If looking for the best of the best for putting biodiesel into a fleet for the first time, however, one should look at Monroe County, N.Y.

A Model Fleet The Gosilano Institute for Sustainability works on production systems, industrialization and transportation issues that relate to its name. As part of the Rochester Institute of Technology, GIS partnered with Monroe County, N.Y., and in 2008, opened a green fueling station.

This, along with several other alternative fuels, meant using biodiesel in a county fleet. While not every county, municipality, organization or any other entity considering biodiesel implementation might want a fueling station featuring B5, B20, E20, E85, compressed natural gas or hydrogen, the work in New York shows a promising example of what could be.

“We helped Monroe County as an organization to apply some of its green acquisition policies to looking into its transportation, and how the county as a business can run its own operations,” says Dr. Nabil Nasr, director of GIS. The business model matched up a public organization, including all of its vehicles, with a private research institution that was more than willing to use those fleet vehicles to test new fueling strategies with alternatives. “We decided to partner because they aren’t researchers and they have to be a good guardian of their taxpayer’s dollars,” Nasr says. “And we needed to make sure

USE that while we are trying new technologies and new types of fuel, this was going to be cost effective and productive.”

It turns out that the partnership was both. Nasr said the cost-benefit analysis on the project has always been positive, and Michael Garland, director of environmental services for the county, says the fueling station is something the county is very proud of. “We’d like to think we are setting the example through our actions and our efforts,” he says. These are emerging technologies and alternative fueling opportunities that need to be explored, and we think government can play a role in that.” Maggie Brooks, the county executive, set a priority to pursue alternative energy and alternative fuel projects, “in an effort to make the county more sustainable," Garland says.

Regardless of government involvement, there are a number of things to learn from the Monroe example. Nasr points out that the approaches Monroe used to convert its fleet (more than six dozen cars, trucks and other vehicles) were based on extensive research with GIS, benchmarking the fuel use and constant monitoring on the cost-benefit factor. The county took advantage of GIS’ willingness to work together, and that aspect is an area Garland recommends for any fleet manager or director considering a switch to sustainability. “Look for opportunities to partner,” he says. “Look for corporate partners, or academic or municipal partners.” Doing so, he says, allows two sides to pool resources and save on dollars.

The most important thing to note, however, is a stipulation Nasr points to.

Instead of going through the whole process like Monroe and GIS did, look at others who have successfully done it, and learn from their experience. “The ability to use somebody else’s experience can be very helpful to people that are new at this,” he says. Luckily, at least for any fleet manager, county director, or private fleet owner, someone has already gone through the maintenance issues, the general concerns

and any other testing procedures related to biodiesel use in fleets anywhere from New Mexico to Canada to New York. It also doesn’t hurt that those who have done it have combined a strong commitment for sustainability with proven research and testing, and have shown that fleets fueled by biodiesel not only perform, but they do it well. As for that checklist of things to consider, there really may only be one item

to consider, but Nasr points out that this item may already be considered crossed out. “If the drivers didn’t like some of the conversions that were done, it probably would not have worked.”

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

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MAINTENANCE

Maintaining

Safety Value

and

A proper maintenance program can help retain a facility’s value and ensure a swift restart

BY ERIN VOEGELE

The development of a solid maintenance and safety program is imperative to running a safe and efficient biodiesel plant. These programs also need to be continued—often in a slightly altered form—even when the plant is idle. Ensuring that safety standards continue to be met, and that maintenance activities are performed in a timely manner, can help maintain the value of a plant while helping to ensure a smooth and seamless restart.

While maintenance activities must be performed on an ongoing basis at all biodiesel facilities, the specific requirements for idle plants are markedly different than those for operating facilities. The requirements for facilities operating below capacity are largely the same as those operating at full capacity, however.

“If you are running a drop, you are running,” says Brad Albin, Renewable Energy Group Inc.’s vice president of manufacturing. “From a safety and maintenance perspective, if you are running at all—whether you are running at a low capacity or a high capacity—most of the day-today work really doesn’t change.”

Plants running at below capacity may employ a skeleton crew, which is fine so long as the required maintenance and safety standards are met.

When the crew is reduced to the extent that these activities cannot be performed properly, it’s a problem, Albin says. “Then you are operating an unsafe facility and you’re probably close to having someone get hurt,”

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MAINTENANCE on vessels that contained methahe continues. “When you are runnol vapors. So, that’s definitely a ning a skeleton crew, you can’t cut priority for safety reasons.” back so far that maintenance and This might be easier said safety activities aren’t getting done, than done, however. Plants are because they are non-negotiable— designed to take in these hazor should be.” ardous substances, not offload Complying with applicable OSHA regulations and staying on EQUIPMENT EXPERT: them, Albin says. For this reason, it is important to get the top of maintenance needs does Brad Albin, right people and equipment more than just provide a safe Renewable Energy Group Inc.’s vice involved to ensure a safe and working environment, it also al- president of complete removal of these sublows other elements of plant op- manufacturing, stances. eration, such as product yield and says that safety and environmental After the hazardous chemquality, to fall into place. “This is standards must be icals are offsite, the next step because [these facilities] will have maintained, even good corrective action processes in when a facility is idle. should be a complete cleaning of the facility, including the place to help them find root causes flushing of all lines. Special atand correct things,” Albin says.

While some facilities may consider a tention should be paid to lines that might stop-and-go solution to below-capacity contain salt, such as glycerin lines. If these operation, Manfred Baumgartner, BDI- lines aren’t flushed and cleaned properly, it BioEnergy International AG’s technical will lead to problems down the road. “[The director, advises against it. “If there is ca- salt] could harden and cause things to be pacity needed at lower production rates we very difficult to clean upon startup,” Massuggest very much not to do a stop-and-go terson says. “If you were to try to startup operation,” he says. “We suggest running the plant again without cleaning it first, the plant at lower capacity, but running it there would be significant problems, so our continuously.” This is important because general suggestion is to clean upon shutrepeatedly starting and stopping the facility down. Then you won’t need to worry as is more likely to result trouble in terms of much when the plant is started up again.”

Baumgartner agrees that special attenmaintenance needs, cleaning issues and metion should be paid to glycerin lines, but also chanical problems.

Most pieces of equipment within a notes that at all applicable machines, such biodiesel plant have a set capacity range for as those made from carbon steel, should optimal production, which is generally be- be filled with a conservation fluid during tween 50 and 110 percent, says Baumgart- a long-term shutdown. “Basically they are ner. These guidelines should be adhered to. mineral oil-based fluids,” he says, noting Running outside the guidelines can lead to that several are available on the market. It is also possible to use pure biodiesel for this inefficient operation and quality problems. purpose, Baumgartner says, so long as it is treated with an oxidation stabilizer. If the Idle Facilities When it comes to maintaining an idle biodiesel is not stabilized, it can degrade facility, plant management has to make a de- and get gluey.

Facilities located in cold climates also cision on how long the shutdown is likely to last. In the event of a long-term shut down, need to ensure that all water lines are prophazardous material removal should be a pri- erly drained to prevent damage from freezmary concern. “There is no reason to have ing, Baumgartner says. “Freezing water can methanol vapors around if it’s not neces- cause huge issues,” Albin agrees. “It will sary,” says Derek Masterson, Crown Iron freeze up a pipe, a valve, a pump. It will bust Works Co.’s product sales manager. “There it open and you won’t know until later.”

In addition, all bearings with squeeze have been a lot of accidents in the past years because of maintenance work done lubrication should be filled completely with 32

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grease to prevent air from reaching the metal and causing corrosion, Baumgartner says.

Actions should also be taken to protect carbon steel components from corrosion. This can be done by covering all areas that may be exposed to air with a corrosion inhibitor, he continues. Electrical components must also be protected from moisture in the air.

“Electrical equipment should be sealed, and it’s recommended to use silica get packets,” to protect these elements from moisture, Baumgartner says.

It is also a good idea to get in touch with the manufacturers of a facility’s boiler and water treatment systems for advice on how to store these pieces of equipment so they don’t seriously degrade over time, Albin says.

Whether an idle plant keeps an employee onsite, or hires a contractor, it is also important to have someone regularly turn pumps, motors and bearings because these components can degrade if left in the same position for a significant period of time.

“It’s just like if you have a tire on your car and it sits there for five or six years on that tire, it will flatten on one side,” Albin says.

Even when greased properly, moving parts that are left sitting stationary for an extended period can displace the grease due to pressure. This can cause pitting, Baumgartner says. Suppliers offer recommendations on how often these parts should be rotated. It is best to abide by their recommendations.

Maintaining Quality Taking these kinds of protective actions at an idle facility can go a long way towards maintaining the value of a plant, which is important regardless of whether a company intends to retain the facility or sell it. According to Albin, approximately 20 facilities have approached or interacted with REG regarding possible sales, upgrades or technology partnerships. “The level of upkeep runs the gamut on those plants; from some people who didn’t know that they were doing to start with, to some that had plants that were running and have kept them very well, to some people who at the end, when they were running out of

MAINTENANCE capital, didn’t keep them very well,” Albin says. “It really runs the gamut on what you see out there.”

Regarding facilities that REG has considered acquiring, Albin says proper upkeep of maintenance and safety standards does play a significant role in the decision to purchase. “If [a facility] is not kept well, then that’s a cost to purchase or to startup that has to be taken into consideration,” he continues. “They can be significant costs.”

REG recently acquired and restarted its Seneca facility, which had been idle for more than a year. “We had to take a long time going through that one with the people who had been there before, using our experts to come up with a startup plan that we probably worked on—including that deal—for four or five months, to figure out exactly what it was going to cost to startup,” Ablin says. “That plant has got two of three lines already past the performance guarantee. It is running quite well, but it takes a lot of planning and expertise to do that.”

and that increased safety measures be taken until the system has been checked for leaks.

It is also necessary to reverse many of the protective actions that were taken while the plant was idle, Baumgartner says.

Any bearings that were filled with excessive grease to protect them from corrosion need to be cleaned to remove the extra lubrication. Restarting equipment with too much grease in the bearings can cause overheating, which could cause damage. In addition, all elements that were filled with corrosion inhibitors must be drained. We also highly recommend that all stopped rotors are manually turned before they are filled with media and restarted, Baumgartner continues.

He also notes that some necessary maintenance activities, such as the replacement of seals and gaskets, should be completed right before restart. Once a plant is restarted, it should not be shut down again in the short-term for maintenance reasons,

he says. In addition, all lubrication and hydraulic fluids should also be changed out prior to restart.

“Biodiesel plants aren’t unique in having to be shut down and restarted,” Masterson says. “The No. 1 aspect, I think, is safety in terms of methanol. No. 2 is in terms of salts and other residues, and No. 3 is general maintenance issues.”

No matter what a facility’s status, Albin says it is never okay to compromise on safety or environmental issues. “You need to make the right decisions on how long you are going to be down, and make some good decisions on whether you are going completely down—and if you are, cleaning everything out and doing that the right way.”

Author: Erin Voegele Associate Editor, Biodiesel Magazine (701) 850-2551 evoegele@bbiinternational.com

Restart As economic conditions improve and federal lawmakers continue the effort to pass an extension of the biodiesel tax credit, it is likely that more and more idle biodiesel plants will restart operations. When restarting a plant, Masterson says it is probably best to take the same steps that were taken when the facility was started for the first time. This includes checking all electrical connections, checking mechanical connections and running each piece of equipment individually. It may also be beneficial to run water through the entire system to make sure everything is working properly before vegetable oils and chemicals are introduced into the system, Masterson continues.

“If I were a new owner taking over a plant, I would check everything as if it never ran before and as if I were starting it for the first time,” Masterson says. “But if the owner is the same and the plant has simply been idle for awhile, I would still do a lot of checking.”

In chemical pipelines, such as those delivering methanol, Baumgartner says he recommends that gaskets be changed out

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SAFETY

The process area in SeQuentialâ&#x20AC;&#x2122;s plant shows several design elements pertinent to facility safety when it comes to dealing with hazardous chemicals, such as a concrete firewall, the use of XPFC-rated motors and instruments, in-code wiring and proper emergency venting of process vessels.

PHOTO: CREDIT: SQPB

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DECEMBER 2010

SAFETY

Chemical

Safety Matters Why the biodiesel industry should heed chemical safety standards now more than ever

BY BRYAN SIMS

DECEMBER 2010

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SAFETY

and containing the various hazardous chemicals it involves should not be taken lightly.

Common chemicals found at a plant, such as methanol, can leave plants vulnerable to fires and explosions if the equipment isn’t properly designed within state, local and municipal fire codes. Additionally, plant personnel are expected and required to go through extensive chemical spill and fire response training in order to help preserve property, and personnel safety, in accordance to Occupational Safety and Health Administration and International Fire Code standards, along with other supporting local or state safety protocols.

Despite the industry’s good-faith efforts for enforcing chemical safety practices, its track record can tell a different story. From 2006 until 2009, approximately 21 accidents occurred in the form of fires or explosions, according to information reported in Biodiesel Magazine. Of that total, nearly half were linked to improper handling or containment of hazardous chemicals.

“In municipalities where these plants were going in, it was a new thing for them,” says Will Smith, engineering manager for Salem, Ore.-based Pacific Biodiesel Technologies Inc. Since 2000, PBT has provided engineering, equipment, contracting and laboratory services for 10 biodiesel plants in the U.S. “Fire marshals and permitting officials leaned heavily on owners and, through negligence, there was a lot of confusion on how to interpret the codes at that time,” Smith continues. “Some fire code consultants didn’t know how to classify, for example, a mixture and a reactor.”

As recently as July, Innovation Fuels Inc.’s 40 MMgy plant in Newark, N.J., had an explosion that injured an employee. The cause was attributed to a sulfuric acid leak from inside the plant’s containment area. The employee was connecting hoses to a tanker truck filled with methanol when the sulfuric acid container behind him leaked and subsequently burst.

In an industry that relied heavily on a tax credit during its heady days of breakneck growth, the incentive has since expired, causing many plants to curtail installed capacity or shut down operations altogether. Consequent36

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PHOTO: SQPB

Producing biodiesel is a relatively easy and straightforward process, but handling

FIREPROOFING: An aqueous film-forming foam fire protection system and diesel booster pump are installed at SeQuential-Pacific Biodiesel’s 5 MMgy plant in Salem, Ore.

ly, concerns mount whether operating plants, including those in “hot idle” status, have the financial resources available to put chemical safety at the top of their lists as the industry heads into 2011. Regardless of financial standing, according to Smith and fire department officials, producers should keep chemical safety a high priority during both the preconstruction and operation phases.

Building to Code As the saying goes, “compliance costs money.” But the cost to upgrade fire- or explosion-damaged property will by far outweigh the cost of installing fire protection equipment carefully selected during the engineering and permitting stage. Typically, biodiesel plants adhere to National Fire Protection Association code 30, which is a common starting point for engineers in preconstruction and for local fire authorities for compliance during inspections when built. The code outlines specific containment and spatial procedures for flammable and combustible liquids stored in a facility.

NFPA 30 gives specified classification ratings to various chemicals according to their flammability and combustibility properties.

For example, biodiesel and glycerin have a

DECEMBER 2010

flash point at or above 200 degrees Fahrenheit and are listed as Class IIIB combustible liquids.

Methanol is a Class IB flammable liquid and sodium methoxide is a Class IC flammable liquid. Sulfuric acid and sodium hydroxide (lye) are nonflammable and noncombustible, but are very reactive caustic materials.

One of the best ways for plants to mitigate risks of potential fires or explosions is to involve local fire authorities early on in the design of the plant to ensure that proper fire protection systems are in place in the event a fire or explosion occurs, according to Jason Allen, fire safety engineer for the Georgia State Fire Marshal’s Office. “One of the best things that people can do is to make sure they get with their local fire authorities, whether it’s the fire department or the fire prevention bureau within the fire department,” he says. “Meet up with them, go over emergency planning, bring the fire department in and go over with them where hazardous materials are.”

The additional cost of proper engineering and equipment will pay off, especially in the face of human error, Smith says. He agrees with Allen that plants should maintain a solid rapport with local fire authorities particularly whenever plants choose to make modifications. “When-

SAFETY ever we make a major change at a plant, we like to bring them out to show them,” Smith says. “If you move tanks or change contents of tanks and so forth and if there was ever an accident, first responders may be unfamiliar with what’s being installed.”

Plants should also consider staying in line with what National Electric Code requirements call for when developing a project or while in operation, according to Allen. Certain code requirements, he says, target specific placement and usage for C-lofts, explosion-proof boxes/ junctions and so on. Specific codes within the NEC also warrant procedures for grounding and bonding electrical wiring when plants are exposed to nonconductive flammable liquids that have the potential to build up a surface charge to static electricity. “You want to have certain ground procedures where you can help alleviate static build-up to ground or have bonding where you have electrical continuity,” Allen says. “This is especially true if you’re going through polymeric or elastomeric type hoses so you can maintain some sort of electrical continuity there.”

sources can be developed, according to Smith.

“You can never build anything that’s ‘idiot proof,’ especially when you’re handling flammable and combustible liquids,” he says.

Clearly, being in compliance with construction codes goes hand-in-hand with compliance of personnel safety training codes. “It’s very important for everybody to be informed,” Smith adds. “Even at smaller facilities under those 10,000 pounds, it’s still a good idea to implement a PSM-type program anyway. It may be more of a burden at a smaller plant, but the hazards remain the same to personnel.”

The PSM program is not a document that can be copied from one site and applied to another. Each phase of the operation is evaluated for potential hazards and problems that could be encountered during normal operation, startup, shut down and standby or down time.

A fundamental starting point, Allen says, is for plant personnel to regularly refer to their

Materials Safety Data Sheet, a thick booklet found at every chemical plant as required

by OSHA. The MSDS describes in detail the chemical characteristics and properties of each hazardous chemical staff are exposed to, along with recommended safety response measures in the event an accident occurs.

“Although some of the chemicals may be nonflammable and noncombustible, they can certainly go through reactions that create flammable gases and heat; in some cases enough heat to self-ignite,” Allen says. “It’s best to always know the reactions that you’re using as well as recognize hypothetical reactions that could occur if the wrong chemicals—or steps—are mixed together.”

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

System & Kits for........

Knowledge is Power The prevailing consensus among biodiesel producers is that process safety can be achieved by common sense and enforcement of prescriptive codes and standards; however, considerable expertise is needed to comprehensively mitigate biodiesel manufacturing risks. One of the best ways to ensure chemical safety is to voluntarily adopt a process safety management (PSM) program. The code of federal regulations 29 under CFR 1910.119 mandates a PSM program if more than 10,000 pounds (1,517 gallons) of methanol is present in a production facility, and all but the smallest of plants have more than this amount. Implementing a PSM can not only assist the biodiesel industry in the prevention of catastrophic accidents, but it can also enhance employee knowledge of operations, improve technical procedures, maintain accurate process safety information and increase overall facility productivity.

At first glance the documentation requirements of a PSM may seem daunting, but a guideline document to ensure compliance with a PSM without consuming too many re-

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SAFETY CONTRIBUTION

Lockout or Be Locked Up Why biodiesel producers should take lockout/tagout procedures seriously BY CHARLES B. PALMER AND ERIC HOBBS Industrial accidents, where a seemingly routine task turns into catastrophe for the unwitting employee, happen every day. The Deep Water Horizon oil platform explosion, which killed 11 workers, followed by an environmental catastrophe; recent mine accidents in the U.S. and Chile; the death of 19- and 14-year-olds in an Illinois grain facility, are just a few recent examples. In the aftermath, there are always calls for stiffer criminal penalties against corporate officers and management.

Many states already have a history of prosecuting corporate officers for homicide in extreme cases. About a year ago, OSHA adopted a policy that it will refer all fatalities it concludes 38

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resulted from willful violations of an OSHA standard to the U.S. Department of Justice for consideration of criminal prosecution. While only employers (not corporate officers or managers) can be criminally prosecuted under current federal law, this may change.

Under the proposed Robert C. Byrd Miner Safety and Health Act of 2010 (HR5663), U.S. Occupational Safety and Health Act of 1970 would be amended to raise prison terms to 10 years for a first conviction and 20 years for a second conviction in the event of a fatality resulting from a “knowing” (seemingly a lesser standard than “willful”) violation of an OSHA standard. In addition, under the proposed amendments, any “knowing” violation

DECEMBER 2010

of an OSHA standard resulting in “serious bodily injury” could result in imprisonment for up to five years for a first offense and up to 10 years for a second offense. Corporate officers and directors would be subject to prosecution, fines and imprisonment under both proposed changes.

Anatomy of Catastrophe Most corporate officers and directors don’t think that horror stories about catastrophic accidents will ever involve them. After all, in 2010 most U.S. companies have a safety program and at least one person charged with safety responsibility. Yet catastrophic accidents nevertheless happen. In the vast

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

SAFETY

majority, industrial activity creates circumstances in which stored or built-up energy is unexpectedly released with employees in harms’ way. Sometimes this is just a fall from a ladder. Other times employees are trapped in machines, equipment or containers for hours, or for coal miners, months. Sometimes there is an explosion and/or fire. Following the event, rescue equipment piles up outside, and news reporters, trucks and helicopters arrive.

Accidents involving a combination of human and equipment error are different from a slip and fall case, a fall from a ladder or similar circumstances. Injuries involving equipment or entrapment are interesting, often gruesome, and therefore, of interest to the press. This can have devastating results for a company and its owners as media, customers, employees, the community where the business is located, and law enforcement officials follow the developing story over days, weeks or even months.

In response, the inevitable “rear view mirror” analysis leads to the knee-jerk conclusion that there had to have been human error—employer failure. The media and law enforcement focus first on the company’s past OSHA record available on the internet. Then they ask the difficult questions: Why were the employees exposed to such dangerous conditions? Who knew these conditions existed or should have expected them? What was done to attempt to prevent them? If answers aren’t sufficient, a referral for criminal prosecution may follow.

Many of the mega-fines leveled against employers and the criminal prosecutions of companies in the past were based not on the fact that any company manager directed an employee to do something unsafe, but, instead, on the employer’s alleged failure to consider the process, to develop a plan to avoid an accident and then to implement that plan. Many times the employer had a rule in place to avoid the incident, but allegedly failed to enforce compliance.

Lockout/Tagout Standards The biodiesel industry has to deal with some of the more common hazards that have

been involved in the recent, high-profile cases mentioned above—fire and explosion hazards, confined spaces, grain or other storage facilities, and flammable material piping processes. But if biodiesel manufacturers had to follow just one regulation, the choice among government regulators likely would be the lockout/tagout standard, 29 CFR 1910.147, often referenced by the shorthand, “LOTO.” LOTO refers to specific practices and procedures employers must adopt and implement to safeguard employees from unexpected energizations or start-up of machinery and equipment, or release of hazardous energy during service or maintenance activities. LOTO procedures can be found in many standards besides 29 CFR 1910.147. Those applicable to biodiesel are addressed in electrical safety standards (29 CFR 1910.306 and 333), process safety management regulations (29 CFR 1910.119—the most commonly cited standard in the biodiesel industry), as well as in confined space standards (29 CFR 1910.146), and grain handling facility standards (29 CFR 1910.272), among others.

Generally, all of these require that a machine, process, space or equipment be rendered safe before an employee enters it or puts a body part in the zone of danger.

LOTO-type standards also require that an employee who enters a danger zone have exclusive control over the danger, so that another person cannot reintroduce the hazard unaware of the presence of the employee in harm’s way. The employer must insure it has provided a fail-safe mechanism that prevents human error and a potentially-tragic result.

Finally, LOTO-type standards recognize that employees may take shortcuts, forget or deliberately bypass safeguards to solve problems more quickly or increase productivity. LOTO requirements mandate training and audits of procedures to verify compliance.

Recently, the head of federal OSHA responded to a series of fatal accidents in grain storage facilities with a letter to 3,300 grain facility storage operators. The letter identified specific steps that, in the OSHA chief ’s view, are required of employers by existing law. First on the list was to lockout all

power equipment. The letter identified three separate companies that were recently issued combined penalties of almost $4 million. The letter concluded with this warning: “If any employee dies in a grain storage facility, in addition to any civil penalties proposed, OSHA will consider referring the incident to the Department of Justice for criminal prosecution pursuant to the criminal provisions of the Occupational Safety and Health Act of 1970.”

The OSHA Administrator’s letter demonstrates the current tone of his agency, including its bent toward referring all potentially appropriate cases for possible criminal prosecution. It also highlights the focus OSHA is placing on deaths caused by entrapment hazards, especially in the agricultural industry and the relationship of those hazards with LOTO standards.

A rational biodiesel employer should look proactively for entrapment and other LOTO-types of dangers to its employees involved in maintaining, repairing, cleaning and loading/unloading equipment, electrical components, machines, tanks, pipes, containers, and other storage spaces and take steps compliant with the LOTO standard and the LOTO requirements of other standards.

Educate employees on LOTO principles and solicit their assistance in identifying related hazards. Create a comprehensive written program that addresses LOTO principles as applied to each of the work practices identified. Create a step-by-step LOTO procedure for each such practice to insure that the hazards are neutralized before any work is done. Document all employee training.

Conduct audits at least annually in order to verify continued compliance by the employer and employees, and document the audit and its results. Biodiesel employers may be eligible for free consultation programs from state and federal resources to assist in developing these programs.

DECEMBER 2010

Authors: Charles B. Palmer, Eric Hobbs Attorneys, Michael Best & Friedrich LLP (262) 956-6518 cbpalmer@michaelbest.com

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BIODIESEL MARKETPLACE Ag Products & Services

Environmental

Laboratory-Equipment

Equipment

Aquaterra Environmental Solutions, Inc. 877-913-8200 www.aquaterra-env.com

Lazar Scientific, Inc. 574-271-7020

Turner BioDiesel 715-288-6480

www.turnerbiodiesel.com

Feasibility Studies

Wilks Enterprise, Inc. 831-338-7459

Associations/Organizations

Lee Enterprises 501-833-8511

Red River Valley Clean Cities 651-227-8014 www.CleanAirChoice.org

Project Development

Twin Cities Clean Cities Coalition 651-223-9568 www.CleanAirChoice.org

www.lee-enterprises.com

AP Innovations 870-673-3030

Quality Assurance Test Products

Bases

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

www.smotecplus.com

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

www.hyrdo-klean.com

Hydro-Klean, Inc. 515-283-0500

www.hydro-klean.com

Hydro-Blasting www.hydro-klean.com

Tanks

SearchPath of Chicago 815-261-4403,x100 www.searchpathofchicago.com

ATEC Steel 620-856-3488

Engineering

Central Valley Tank 888-374-8265 wwww.centralvalleytank.com

Vogelbusch USA, Inc. 713-461-7374

www.vogelbusch.com

Filters Midwest Filtration Solutions 816-943-6141

bluff42@aol.com

www.hydro-klean.com Dexter Biodiesel Solutions 713-389-8595 www.dexterbiodiesel.com

Filtration Media

Process Concepts 636-475-7474

Met-Chem 216-881-7900

Spokane Industries Inc. 509-921-8868 www.spokanemetalproducts.com WINBCO Tank Company 641-683-1855

www.winbco.com

Wastewater Treatment Services Hydro-Klean, Inc. 515-283-0500

www.hydro-klean.com

Feedstock Option Energy Technologies LLC 203-931-0652 www.optionenergytech.com

www.processconcepts.com

GreenLight Biofuels Inc. 410-290-3287

Instrumentation

ATEC Steel 620-856-3488

Flow Line Options Corp.

330-468-0180 www.flowlineoptions.com

www.atecsteel.com

Insulator www.westmor.biz

Miller Insulation Co., Inc. 701-297-8813 www.millerinsulation.com

Consulting BIODIESEL MAGAZINE

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DECEMBER 2010

www.glbiofuels.com

www.metchem.com

Tanks

40

www.jvnw.com

Recycled Fats & Oils

Plant Construction

Westmor Industries 320-589-2100

JVNW Inc. 503-263-2858

Oils-Seed

Filtration Equipment

Construction

www.atecsteel.com

Distillation Equipment

Hydro-Klean, Inc. 515-283-0500

Hydro-Klean, Inc. 515-283-0500

www.guttmangroup.com

Process Design

SRS Engineering Corporation 800-497-5841 www.srsbiodiesel.com

Tank Cleaning Services

Storage

Recruiting

Railcars www.hydro-klean.com

www.wilksir.com

Guttman Group 800-245-5955

Equipment & Services

Hydro-Klean, Inc. 515-283-0500

Wilks Enterprise, Inc. 831-338-7459

Employment

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

Emergency Spill Response

Laboratory-Testing Services

www.apinnovations.com

Education

SMOTEC Plus, Inc. 201-506-9109

www.wilksir.com

Cennatek Bioanalytical Services 519-479-0489 www.cennetek.ca

Chemicals-Catalysts Evonik Degussa Corporation 732-651-0001 www.degussa-biodiesel.com

www.lazarsci.com

Finance Appraisals Natwick Associates Appraisal Services 800-279-4757 www.natwick.com

BIODIESEL MARKETPLACE Mergers & Acquisitions

Research & Development

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

Marketing

Engine Testing Roush Industries 734-779-7736

44 2011 International Biorefining Conference and Trade Show www.roush.com

43 2011 Biodiesel Plant Map

Retail Stations

Biodiesel Suma Energy LLC 516-816-3705

Advertiser Index

42 2011 National Biodiesel Conference

Pumps www.sumaenergy.com

Ultra Green Energy Services, LLC 888-858-7202 Ext.4 www.ugesllc.com

7 BDI Biodiesel International AG

Great Lakes Tank Systems, LLC 920-850-0080 www.greatlakestanks.com

27 Biodiesel Analytical Solutions

Transportation

28 Crown Iron Works Company

Marine

Blender/Distributor

2 Evonik Degussa Corporation

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

Odin Marine, Inc. 203-969-3400

Market Data

Railcar Gate Openers

Research 13 503-863-9913

The Arnold Company 800-245-7505 www.arnoldcompany.com

www.Research13.com

www.odingroup.com

33 HEMCO Industries 37 MP Biomedicals, Saftest Division 29 National Biodiesel Board

Process Technology Modular Systems GreeNebraska Renewable Diesel Refineries 402-640-8925

www.greenebraska.com

Turnkey Systems Green Fuels America, Inc. 866-996-6130 www.greenfuelsamerica.com

BIODIESEL MARKETPLACE

your solution

JatroDiesel Inc. 937-847-8050

www.jatrodiesel.com DECEMBER 2010

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