GreenFuels UK has something that no one else has. The have over 1500 units operating in the field. They also have another claim that no one else has. "About two thirds of all the biodiesel made in the UK comes from the fuelpod systems", says James Hygate founder of GreenFuels UK. That's an impressive fact. So why all the success?


fuelpod2 pictured

One reason is this is the first fully self contained small scale waterless biodiesel production unit. That all-in-one combination is unique to the fuelpod systems. Additionally, the systems are smart looking and very compact at about two feet in diameter and 5 feet tall. It is the perfect solution for home or small business.  Anyone with access to used restaurant oil can make their own clean fuel with a fuelpod system for about $0.70 cents per gallon. The fuel will run in any diesel engine without any modification. It is true biodiesel.

Another reason for the enormous success of the fuelpods is that they are very user friendly. The process of making fuel has been simplified and well documented. Units in operation can be seen on youtube, search for fuelpod2.

John Hegstad of GreenFuels USA says, "Clients are very happy to find all the features in such a compact unit. Fully self contained and automated units usually cost a lot more and this one has the waterless technology to boot!"

The Fuelpods systems are designed to operate on waste restaurant oil, but can also use any standard biodiesel feedstock and will accept a range of FFA levels.

The units are shipped with a complete lab package including digital scale, titration supplies, lab ware,  and protective gear. A DVD training video is included along with an illustrated instruction manual. Unlimited factory email support and 1 year warranty are standard. Units are drop shipped from the US wear house in Reno Nevada.

The only difference between the fuelpod2 and fuelpod3 is the daily fuel output and price. The fuelpod2 sells for $3995, and makes 12 gallons per day, the fuelpod3 sells for $4995 and makes 26 gallons per batch. The fuelpod2 is slightly shorter in height.

The fuelpod3 was featured at the Union Street Eco Fair in San Francisco last month and an order was booked the first day of the fair. The proud new owners said "We want to do our part to reduce pollution and our dependency on foreign oil. We had looked at a lot of systems and were very excited when we first saw the fuelpod".

Greeenfuels also provides other equipment for commercial production, high FFA processing modules, and equipment for cold flow filtration compliance.

More information on fuelpods and the $100 finders fee program at www.biodieselbusinessplans.com
or www.myfuelpod.com

In an article published by the Jacobsen Index soybean oil continues to fall as the feedstock of choice. Several factors contribute to this not the least of which is the profitability of lower cost feedstocks such as waste oil (yellow grease) and animal fat feedstocks like chicken fat and tallow.

Part of the reason for the new trend is that many of the larger plants that were not multi-feedstock ready have significantly reduced or stopped production whereas the smaller more modern multi-feedstock plants are still in production or are ramping up. Additionally, small business owners and private parties are using waste oil to create fuel for their own use.

Percentage of Biodiesel made from feedstock OTHER than soy


Profit margins are always higher with the alternative feedstocks and it is beginning to show in the oil price market. In the past few months soy prices have held and even dropped a few cents while animal fats are moving up in the price range because producers are not buying soy as often. A few months ago yellow grease had dipped down to 13 cents a pound while soy was hovering around 40 cents a lb. Today soy is still in that neighborhood but yellow grease has doubled to around 26 cents per pound.

This supports a long held notion that as biodiesel comes of age, more and more feedstocks will become available and pricing will begin to average out. The delay in feedstock price stabilization has been in part due to the delay of technology and equipment that is required for processing the various feedstocks that may have higher FFA levels or undesirable cold flow characteristics.

But now technology has improved. Several companies now have equipment that can process high FFA material and produce fuel that will pass the new ASTM cold filter plug point tests. These new technologies are making it more profitable to use the alternative feedstocks, and feedstock prices are adjusting accordingly. This brings bring up some interesting discussion.

With the introduction of new technology, the rise in crude prices, and the looming renewable fuel mandates of 2010, the biodiesel market should heat up considerably in the next few months.

If biodiesel production continues at the rate of the first four months of 2009 and net exports (i.e. imports) continue at the April rate, the supply of biodiesel for the year would barely reach the 500 million gallons in the RFA target under the Energy Independence and Security Act of 2007 (EISA). However, the EPA will not be enforcing the mandates until 2010 when the RFA for "Biomass-based Diesel" increases to 650 million gallons. Based on (1) the declining profits for biodiesel, (2) questions related to whether the blenders' tax credit will be continued beyond 2009, (3) the prospect for continuation of the EU tariff and (4) the challenge posed by EPA's interpretation of EISA for soybean oil biodiesel to reduce GHG emissions by 50 percent, one might ponder what will happen if biodiesel production falls far short of 650 million gallons in 2010 and the 800 million gallon RFS for 2011. Something has to give. Could the incentive exceed the $1.00 mark?

Funding for SoyMor Biodiesel, LLC Allows Plant to Reopen; Save Jobs

WASHINGTON, June 24, 2009 - Agriculture Secretary Tom Vilsack announced today that USDA Rural Development has approved a $25 million loan to enable a Minnesota biodiesel facility to diversify its operations and significantly expand the production of advanced biofuels.

"The investment announced today helps fulfill the Obama Administration's goal of increasing production of biofuels while securing jobs in the alternative fuels industry," Vilsack said. "This is great news for a community that recently saw this company cease production of its operations due to tough economic conditions."

USDA Rural Development is providing SoyMor Biodiesel a $25 million guaranteed loan to purchase equipment that will enable SoyMor to convert multiple types of feed stocks, including an unrefined corn oil waste product from nearby ethanol facilities, into biodiesel. In its current configuration, the plant only has the ability to process soybean oil.

The loan is the second USDA Rural Development has made under the Section 9003 Biorefinery Assistance Program of the 2008 Farm Bill.

The funding will have a significant impact on the nearby communities by restoring nearly 30 jobs and providing an additional value-added opportunity for the ethanol industry and bolstering the local economy. High feedstock costs forced SoyMor to suspend operations at its Albert Lea, Minn ., facility in Spring 2008. The plant opened in 2005 and has an annual capacity of 30 million gallons.

The Biorefinery Assistance Program promotes the development of new and emerging technologies for the production of fuels that are produced from non-corn kernal starch biomass sources. The program provides loan guarantees to develop, construct and retrofit viable commercial-scale biorefineries producing advanced biofuels. The maximum loan guarantee is $250 million per project. The loan is contingent upon SoyMor meeting the conditions of the loan agreement.

USDA Rural Development's mission is to increase economic opportunity and improve the quality of life for rural residents. Rural Development fosters growth in homeownership, finances business development, and supports the creation of critical community and technology infrastructure. Further information on rural programs is available at a local USDA Rural Development office or by visiting USDA Rural Development's web site at http://www.rurdev.usda.gov.

The USDA provides grants and loan guarantee programs.


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Funding Options Still Available for Biodiesel Projects

[Editors note: BBP continues to assist producers with funding sources. We spoke with some lenders over the last few weeks to test the water. Here is what they had to say.]

Funding is still available for biodiesel projects and is evident by the news stories of expansions and new project start ups. Understandably, because of global economic conditions, restrictions and guidelines for successful financing has tighten up in all economic sectors, including renewable energy. But that doesn't mean that it is completely gone.

Existing businesses with a good credit history will be the best candidate for loans. But that is not to say that a start-up is out of the question. According to one lender in Southern California, "We are very interested in the renewable energy sector and continue to monitor biodiesel as an option. We have certain requirements that must be met. Our most successful candidates will be those with a minimum of three to five years of business history." They will review new biodiesel projects with these credentials.

So what about start-up operations? According to the lender there are other options. "If a start-up operation would become a subsidiary of an established qualified business, then the start-up company might qualify." This opens a new door.

Its all about the team. If you are trying to get a start-up project going, now is the time to locate your executive staff. Start talking with people who have existing businesses within the community. Get them to be members of your board or advisory committee. The ideal candidate for your staff would be a local business owner who either has access to feedstock, or may have a direct need for the fuel, such as a contractor with a small truck fleet, or construction equipment operator. Private bus lines, farming, rail, or boat operations are also desirable partners. The key is that they are an established business owner who has some interest in biodiesel. They may not be that that hard to find with a little digging.

Another sure fire method of getting started sooner is to start small.

If you believe you have access to feedstock oil in your area, why wait? Start small and get started making fuel now. Even if its only a few hundred gallons a week. That money adds up fast and a successful track record, is one of the most important selling points when seeking funding for a larger operation.

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Feedstock Tolling Contracts Still Available Via Major Oil Suppliers

[Editors Note:  BBP spoke with a major oil supplier this week and learned exactly how tolling works and a few interesting facts. Tolling contracts are a good thing, and what is more important, they are not that hard to get.]

A tolling partnership is an agreement between a biodiesel producer and a second company who acts as a vendor and buyer.  The second company supplies feedstock oil and will also buy back the fuel. So producers have one contact who is a vendor and also a client. The job of the biodiesel producer is to convert the feedstock into fuel. No worries about locating feedstock or fuel distribution. The following are highlights of typical tolling agreements.

• Feedstock is always available at market prices.
• Contracts are made for each lot, and profit margin is known at time of lot agreement.
• Pricing of feedstock and off take are set at the same time for each load of feedstock.
• Producers are not locked into buying from or selling to the tolling partner.
• Any other feedstock may be purchased from any outside source.
• Finished fuel may be sold to the highest bidder when economically advantageous.
• Tolling partner fees are usually around 2% of the selling price.
• Agreements are open ended, producers choose when to buy or sell
• Profits fluctuate with the market.

The tolling partner acts as your buying and marketing department all in one. The charge a fee for their services but can provide a great service. Since they specialize in monitoring the global feedstock and fuel oil markets, they are in a much greater position to be able to acquire and sell commodities knowledgeably. Producers who are most successful have tolling options and keep on the look out for local spot pricing. The combination helps to smooth out the ups and downs of the market.


* * * *


More Framers are Getting on Board

Go ahead and take a deep breath of exhaust from Giff Foster's farm tractor.
Smells like ... stale doughnuts?

Kind of. That's because it runs on used vegetable oil, filtered and refined to create biodiesel.

Having honed the method of producing commercial-grade fuel from restaurant waste, Foster and a group of other Southern Tier farmers are trying to bring the plan into commercial production.

The idea is to create energy independence, support local jobs and help the environment.

"I would much rather give my money to a local farmer to produce fuel crops than to send it to OPEC across the pond," said Foster, who relishes pointing out the economic and environmental sense of the idea every chance he gets.

The grassroots entrepreneurial effort - called the Southern Tier Agriculture Energy Project - has successfully produced bio-diesel fuel in a Binghamton plant on a limited basis. Now, members are looking to take it to a larger scale.

On paper, the plan looks great. Biodiesel is refined from vegetable oil, like gasoline is refined from crude oil.

According to a report in Proceedings of the National Academy of Sciences, a peer-reviewed journal, biodiesel provides 93 percent more energy per gallon than required for its production, while ethanol generates only 25 percent. Biodiesel, when compared with gasoline, reduces greenhouse emissions by 41 percent, while ethanol yields only a 12 percent reduction.

The alchemy of generating biodiesel from restaurant waste, rather than directly from crops, prevents tying food prices with energy demand - a problem with other biofuels.

Take into account energy independence and a homegrown economic kick to the agricultural sector, and it's hard to dismiss local biodiesel production as a fringe idea cooked up by a few eccentrics.


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Lee County Biodiesel Plant Sees Green Lights

Farmers Market eatery will have new neighbor
Lee County’s biodiesel plant will be located on the state farmers market property off Edison Avenue, yards away from one of Fort Myers’ famed eateries.

FL BioFuels LLC, which has a contract with Lee County to produce biodiesel for county vehicles, will lease a 25,500 square-foot building, formerly occupied by the Harry Chapin Food Bank, starting in September. It will pay $75,000 annually, according to its three-year contract.

Co-owner Roy Benton III said because of the site’s existing building, the start-up process will be sped up. If there are no permitting hold-ups, Benton estimates the plant could produce its first gallon of biofuel by October, two months earlier than expected.

“By the state accepting us here, it shows not only local government but state government is participating in green initiatives,” Benton said.

Biodiesel is created by removing glycerin from vegetable oil. It is refined and blended in tanks, and, when burned by trucks, creates reduced emissions, compared to tradition fuels.

Lee County agreed in April to give the company $500,000 from a government grant for the plant.

In front of the plant’s site sits the Farmer’s Market Restaurant, a home style lunch and dinner spot frequented by Lee County leaders. Owner Bill Barnwell said he isn’t worried about being neighbors with the plant and hopes the 20 people it will hire will stop in to eat at his restaurant.

“Anything that will create jobs, I’m all for it,” Barnwell said.

Lee Crews, senior market manager for the Bureau of State Farmers’ Markets, first heard about the biodiesel plant from a story that ran in The News-Press on May 24. At 8 a.m. the next day, he called FL BioFuels and three of its owners came to have a look two hours later.

This isn’t the first experience Crews had with biofuels. The property housed My Dream Fuel LLC until February, when the company, which grew the fruit jatropha, moved out.

Crews decided to grow his own jatropha plants, whose buds contain tiny seeds that can be crushed into oil that can be refined into biofuel. Now 200 plants have taken root in a grassy stretch of the property. And although the biodiesel plant doesn’t yet have a processor to crush the seeds, Crews sees FL BioFuels plant as a definitive part of his goal.

FL BioFuels will have to do some work on the building before being able to produce an estimated 3 million gallons of biofuel a year. It will tear down an inside wall and build a platform to place its two storage containers on in the back of the building, among others.

By leasing, FL BioFuels will save money, but, according to Benton, it’s too early to say how much it will save.

FL BioFuels will also have to get permits from the Environmental Protection Agency, possibly the South Florida Water Management District, and the city of Fort Myers, said Building Plans Examiner Diana Giraldo.

The plant will be located in the enterprise zone, a 10-square-mile area in Fort Myers and Lee County north of Winkler Avenue and west of Interstate 75 whose business owners receive sales tax refunds.

Giraldo estimates if FL BioFuels has all necessary documents, permitting should take two months. She said she wants to meet with the company before it applies and gather information for city residents who might have concerns.

City Councilman Levon Sims, whose ward includes the new plant, said he would consider the plant successful if it brought tax revenue to the city.

“It could be a catalyst,” he said, “for generating money in a depressed area.”


* * * *

Company Updates Schweitzer on Camelina-Based Biodiesel

Nearly two years ago, a new company set out to bring Montana into an emerging green fuel industry by growing the crop known as camelina for biodiesel fuel.

On Tuesday, company executives met with Governor Schweitzer and other state officials to provide an update on its progress. Sustainable Oils was formed in 2007 from the collaboration of two energy companies: agricultural bioscience company Targeted Growth, and biofuel producer Green Earth Fuels.

The company is working to develop fuel to be used in aircraft. The company says recent tests demonstrate that camelina biodiesel can meet aviation fuel standards, and unlike other biodiesels, does not displace food crops.

Scott Johnson, Sustainable Oils Company President & General Manager, said, "One of the values of camelina (is that) it was brought into North America specifically for biofuels. So, we need to develop that and continue that perception on the oil."

Johnson estimates Montana will produce 275,000 gallons of camelina-based biodiesel this year, which will go toward further development of aviation fuel.


* * * *

National Biodiesel Board Launches Facebook Group

As biodiesel industry leaders meet this week in one of the oldest advocacy centers of the U.S., they are also venturing into one of the newest mediums. The National Biodiesel Board announced today at its annual June board meeting in Washington, D.C. that it has created a new home base on Facebook for biodiesel fans. From the biodiesel-curious to the biodiesel advocate, the new National Biodiesel Board Group will serve as another outlet for biodiesel information and discussion.

With more than 100 million users logging on at least once each day, Facebook is the fourth-most trafficked Web site in the United States. Increasingly more people are turning to the Internet for information than any other media source – including television and newspapers.

“We’re using Facebook to communicate the promise of biodiesel to a wider audience and using facts to correct any misconceptions,” said NBB Director of Communications Jenna Higgins. “Our Facebook group is a valuable tool in our effort to help consumers understand what biodiesel is: a sustainable, cleaner alternative fuel that promotes food security and strong global environmental benefits.”

The Facebook group compliments NBB’s YouTube channel, www.youtube.com/nationalbiodiesel, launched earlier this year. The channel hosts news clips, celebrities talking about biodiesel, educational videos, user videos and more. Biodiesel fans can subscribe to the channel. To join the Facebook group, enter “National Biodiesel Board” into Facebook’s search toolbar.


* * * *

Lubricant Additive Addresses Fuel Dilution Issues with Biodiesel Blends

For those concerned about using a B20 blend in late-model diesels that employ post-injection for controlling emissions, Chevron Oronite Company LLC developed a unique engine oil additive to help combat serious engine wear associated with methyl ester dilution in the engine oil crankcase.

Some OEMs use post-injection in their strategies to “regenerate” or burn off soot accumulated in diesel particulate filters (DPF). Injecting fuel late in the combustion cycle does not combust the fuel but vaporizes it as the fuel is carried downstream through the exhaust to create an exothermic reaction, which burns off the collected soot in the DPF. This periodic soot burn-off is called regeneration. OEMs have a choice to utilize post-injection or fuel injection downstream of the engine, as in the exhaust system directly, but it is more cost-effective to use post-injection because there is no additional hardware needed to perform regeneration.

Fuel dilution has always been an issue with diesels, but never more so than with post-injection. Petrol diesel dilutes engine oil too, but it volatilizes off and eventually is released through the breather system. For biodiesel, however, the story is significantly different.

Biodiesel has a higher and narrower boiling range than petroleum diesel, and its physical properties lead to larger droplet sizes exiting the fuel injectors. This means that, while the petrol portion of the blend vaporizes and follows its destination to the exhaust stream as the piston is at the bottom of the cylinder, the methyl ester fraction—with its higher, narrower boiling range and larger droplet size—remains in liquid form collecting along the exposed surface area of the cylinder wall, and as the piston rises, much of the biodiesel bypasses the rings to enter the crankcase. Once in there, the biodiesel does not volatilize off like mineral diesel does. With the heat of the crankcase, there is concern about oxidation of the oil/biodiesel mix and engine wear resulting from the organic acids.

“In the case of biodiesel, once it gets in the crankcase and as it starts to degrade, it forms organic acids and starts to polymerize,” said Gary Parsons, global OEM and industry liaison manager for Chevron Oronite. “The organic acids can aggressively attack certain metals, particularly lead in the lead bearings. And then as it polymerizes and oxidizes, it can lead to increased deposits in the engine—in particular, deposits on the pistons.”

The engine oil additive Chevron Oronite developed is designed to counter the effect of the acids, so they don’t aggressively attack the metal; and also to prevent oxidation and formation of deposits.

Historically, in the context of acids, the lubricant additive business has largely been focused on formulations that help combat sulfuric acid damage. Before many of the recent sulfur limitations on diesel fuel went into effect, sulfur content in diesel fuel ranged from unlimited to 5,000 ppm to 500 ppm; but now, on road ultra low sulfur diesel only contains 15 ppm sulfur maximum. “Much of the historical effort had been in neutralizing sulfuric acids, and now much of the sulfur issues have gone away,” Parsons said. “But now we’re talking about putting this organic material in the oil, which forms organic acids, so part of what we’ve done is we’ve tailored our formulation to address those organic acids in order to prevent oxidation of the fatty acid methyl ester in the oil. That’s why it’s called for special research and development in that area—because it’s different than what’s been done historically. “

The product, which is commercially available and marketed under the Oronite Lubricating Oil Additive, or OLOA, trademark, has been receiving global attention since its commercial debut last year. “People are starting to see that there’s going to be more biodiesel in the market, and more exposure and potential risk, so we’re seeing more and more interest because of that,” Parsons said. “Until now, the use of biodiesel has largely been driven by economics or people who just want to do good things for the environment—not by mandates.”


* * * *

Minnesota Mandates Jump Up to 20% by 2015

Minnesota is on target of meeting its own lofty goal of having all diesel sold in the state to be a 20 percent blend by the year 2015. At the beginning of this month, the state jumped from a 2 percent to a 5 percent biodiesel blend. And the biodiesel industry in the state seems to be ready for the next two steps: a 10 percent blend in 2012 and 20 percent in 2015:

“We will easily be able to meet the demands on the in-creased production for this step up to five percent,” said Chuck Neece of Farmers Union Industries. “In 2012, that will increase to 10 percent biodiesel, which means there will need to be about 80 million gallons of bio-diesel to blend.

“Half of that, 40 million gallons, would have to come from in-state production.”

Between the biodiesel plant in Brewster and the plant near Redwood Falls operated via Farmers Union Industries, state production is currently at 33-35 million gallons.

So, the need would only have to increase another five million gallons to ensure the demands for 2012, ex-plained Neece.

There are some “safety valves” built into the targets, such as a flexible approval process, involving the legislature, biodiesel producers and other stakeholders, for each step along the way to make sure the state is not committed to something it can’t meet due to unforeseen circumstances down the road. But, for now, it looks likes everything so far is so good.


* * * *

Biodiesel Cold Soak Tax Credit Deadline Pushed Back

Biodiesel producers not quite able to pass the newest quality standard… ASTM D 6751, which now includes a Cold Soak Filtration Test (CFST)… will have some extra time when they can still claim the Internal Revenue Service’s dollar-per-gallon tax credit. Those not meeting the new standard were supposed to lose the credit as of April 1st, but that’s been rolled back to October 1st.
Now, the CFST was developed to help cut down on fuel that has a tendency to turn to solid and clog fuel filters. This story from Biodiesel Magazine points out the extension puts the industry in an interesting position:

For producers having trouble passing the test, it is good news for them that they can continue to collect the credit while modifying their process. However, buyers are interested in purchasing B100 that meets the latest version of D 6751, which means purchasing biodiesel that passes the CSFT.
BQ-9000 certified producers and marketers, however, must meet the latest version of D 6751 to remain eligible for their BQ-9000 status.

Also, the invisible allowance of B5 in the diesel fuel specification, ASTM D 975, is predicated upon B100 meeting the latest version of D 6751.

The version of the cold soak method in existence today, which many people in the industry say is flawed, will be replaced later this year by a new, more feedstock-equal test method.
As you might remember from my post earlier this week, the newest ASTM quality standard… with the new Cold Soak Filtration Test… just passed out of the group’s committee of standards review process and received an official number – ASTM D 7501.

For information on cold soak testing and compliance process equipment, contact Biodiesel Business Plans.



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We hope these new stories are of interest and pertinent to your business plan objectives. All of these articles are available on the internet.
 

Biodiesel Business Plans
Info@biodieselbusinessplans.com / 415-261-1004 Local