Biodiesel’s appeal continues to intensify and no place was that more evident than at the National Biodiesel Conference and Expo 2005 held in early February in Fort Lauderdale, FL. The National Biodiesel Board’s (NBB’s) second annual conference attracted over 1,000 attendees, double last year’s attendance in Palm Springs, CA. Nearly twice as many renderers made an appearance at this year’s conference over the previous meeting, all with education and networking in mind.
“We find the NBB conference an excellent way to keep abreast with developments in the biodiesel industry and to obtain contacts in the technical, distribution, and marketing sectors,” said Ridley Bestwick, West Coast Reduction, Ltd., who also attended the 2004 conference.
Tom Cook, president, National Renderers Association, and David Kaluzny II, Kaluzny Bros., Inc., were attending their first biodiesel conference in an effort to become better acquainted with this growing industry and get a feel for a potential new market. Other first time attendees were curious to learn if biodiesel could be a profitable venture, whether as a producer or feedstock supplier.
“This alternative fuel will have an affect on our finished product prices, whether we are in the business ourselves or not,” remarked Gus Wintzer, G.A. Wintzer and Son Company. Gary Baas, Inland Products, Inc., agreed, but was more cautious: “Renderers should be very careful about possible investment as there are many other people going into this business, which might flood the market and lower finished product prices.”
Fred Wellons, Baker Commodities, Inc., also sees biodiesel having a major affect on the industry, whether renderers take an active role or not. “We are already seeing small biodiesel producers contacting restaurant chains for recycled cooking oil feedstocks,” he said. “It is imperative that renderers take an even greater part in NBB, as feedstock suppliers or as future biodiesel producers.” Renderers who attended the conference concurred that industry presence at the annual meeting is imperative.
“Biodiesel is a real thing,” noted Ron Wardrop, Rothsay. “I think that if we want rendered material to be part of the biodiesel business, we need to be there to represent ourselves.”
Leaders Praise Industry
The conference opened with NBB Executive Director Joe Jobe declaring to an overflowing crowd that the biodiesel industry is “going to make a very significant impact to America’s energy supply.” President George W. Bush appears to agree with that statement in a letter to conference attendees shared by NBB Chairman Darryl Brinkmann.
“My administration has examined America’s energy needs and resources and developed a National Energy Policy to put our nation’s energy future on sound footing,” the letter states. “Renewable fuels such as biodiesel are a vital part of this policy because their use will help reduce our dependence on foreign sources of energy.
“As we continue to work with the Congress to produce comprehensive legislation that moves America toward greater energy dependence, I appreciate the efforts of NBB members to promote awareness of and interest in biodiesel energy,” the letter also read.
“It’s really great when we can get support from the highest level in something we believe in,” remarked Brinkmann.
Other speakers at the general session included Congresswoman Marcy Kaptur (D-OH), who told the audience that “you inspire me in my own work” when it comes to breaking America’s dependency on foreign oil. In January, Kaptur introduced House of Representatives Bill 388, the Biofuels Energy Independence Act of 2005, which will provide for a biofuels feedstock energy reserve and authorize the Secretary of Agriculture to make and guarantee loans for the production, distribution, development, and storage of biofuels. She asked the audience for their help in moving her bill forward, reminding everyone that funding for alternative fuels was recently cut by $50 million.
“We have our work cut out at the national level,” Kaptur said.
Peter Bethune, Earthrace, shared his effort to set a new world record circumventing the globe in a powerboat. The connection: he will be using 100 percent biodiesel to fuel the 70-foot vessel. His project includes an 18-month tour of 60 of the world’s largest cities to promote fuels like biodiesel and raise awareness about sustainable use of resources. The race is scheduled for March and April 2006 and Bethune is seeking sponsors, donations, and support of his endeavor, which is explained in more detail on his Web site at www.earthrace.net.
NBB took the opportunity of an attentive audience to present their annual “Eye on Biodiesel Awards.” This year’s recipients included:
• “Innovation” – DaimlerChrysler, for their initiative of fueling its new diesel Jeep Liberty with a five percent biodiesel blend at the factory;
• “Impact” – the American Soybean Association, which was instrumental in leading the campaign to pass the biodiesel tax incentive;
• “Inspiration” – Joe Biluck Jr., director of Operations and Technology at New Jersey’s Medford School District who led Medford to become the first school district to use biodiesel and spends his personal time educating other fleet managers about biodiesel;
• “Industry Partnership” – Clean Cities, the Department of Energy’s program that has introduced the world of biodiesel to energy decision-makers and promoted it in its network of over 80 volunteer coalitions; and
• “Influencer” – Neil Young, the singer/songwriter who has shown outspoken support for biodiesel and uses the alternative fuel in his personal vehicles and during his tours. Young accepted the award by videotape.
“I thank the National Biodiesel Board for this great honor,” Young stated. “It’s [biodiesel] a way of life; it’s a better way of moving around the planet.” Last year’s Influencer award winner, actress Darryl Hannah, appeared at the conference to announce this year’s winner and introduce Young’s acceptance video.
NBB also presented Kaptur with the National Energy Leadership Award for her commitment to renewable energy and domestic energy security.
Taxes, Raw Materials, and Other Such Matters
The conference then broke into various sessions, focusing on technical issues, fuel distribution, policy and regulations, markets, and end users. The more popular sessions addressed tax legislation and biodiesel blending and handling. Scott Hughes, Scott Hughes Consulting, said state policies remain extremely critical to the industry. In 2004, there were 130 biodiesel related state bills introduced, with 27 passing, a 30 percent increase over 2003. In the first month of 2005, 44 biodiesel related bills have been introduced in 18 states with more on the way.
“States are increasingly taking proactive steps to implement policies for biofuels,” noted Hughes.
Cold flow was another popular issue addressed at the conference. Ken Bickel, Center for Diesel Research, commented that there are nearly two dozen sources of data on biodiesel’s cold flow properties, with varying results. He said blenders need to know the diesel fuel’s properties prior to blending because cold flow properties of petroleum diesel vary widely, emphasizing that at blends of 20 percent or less of biodiesel, the properties of the diesel will dominate. Paul Hinkle, ASI Engineering, informed an anxious audience that the results of the NBB’s long anticipated cold flow study are almost complete.
Steve Howell, Marc-IV, discussed the American Society of Testing and Material (ASTM) standards for biodiesel. Currently, ASTM D 6751 is approved for 100 percent biodiesel (B100) to be used for blending in the United States. A standard has not yet been approved for use of straight B100, but that the industry is working on a new standard for what is called B20, a blend of 20 percent biodiesel and 80 percent petroleum diesel, which is the most common form of biodiesel used.
The conference’s second day began with a look at biodiesel’s future, particularly among engine manufacturers. Bill Craven, DaimlerChrysler, discussed the company’s decision to fuel the new diesel Jeep Liberty with five percent biodiesel at the assembly plant, and Don Boardman, announced that thanks to the biodiesel tax incentives passed last fall, John Deere plans to use a two percent biodiesel blend (B2) in its diesel propelled machines made in the United States. Beginning March 1, 2005, tractors assembled at the company’s plant in Waterloo, IA, and combines manufactured in East Moline, IL, will be shipped to dealers and customers filled with B2, while the remaining John Deere equipment will be shipped with B2 by the end of the year. Boardman estimated that approximately one million gallons of biodiesel per year would be used once all equipment is being filled.
“Our decision was that B2 was easier to promote and gain acceptance,” said Boardman. “Once that’s accomplished, we will be working very closly with the industry to put to rest any public concern over B20.” John Deere currently supports using up to five percent biodiesel in their equipment.
Florida will be home to a new biodiesel storage facility. Rick Eaton, Transmontaigne, revealed that the company is establishing a B100 storage tank facility at their coastal terminal in Port Everglades, FL, complete with rack blending capabilities. The facility will be accessible by rail, truck, and barge.
“We are excited about this and hope this could be a stepping stone in the future of biodiesel in south Florida,” Eaton stated. Transmontaigne also has a biodiesel storage tank at their facility in Mississippi.
Another popular session, especially among renderers, was the impact of raw materials and co-products on biodiesel profit. John Campbell, Ag Environmental Products, declared that food demand will always take priority for soybeans, but that there is between one billion and two billion pounds of soybean oil available for the biodiesel industry along with one-half billion to one billion pounds of non-soy oils. Campbell said that currently the feedstock of choice is animal fats because of its favorable price over soy and its equal tax credit, but he expects that advantage to eventually level out and predicted a seven-cent spread with yellow grease.
Although passed last fall with an effective date of January 1, 2005, the implementation of the new biodiesel tax incentive is still being worked out and a session addressing the process drew more questions than answers. A biodiesel working group, a 12-member partnership of Internal Revenue Service (IRS) and biodiesel industry representatives, is currently developing reporting requirements and ensuring uniformity. Draft reporting requirements will require anyone producing or importing 100 percent biodiesel to register with the IRS by July 1, 2005. Previous law required only those producing a blended taxable fuel to be registered.
A world summit started off the final day of the conference. Raffaello Garofalo, European Biodiesel Board, said the European Union is the world leader in biodiesel production with 66 operational sites across Europe. He informed the audience that a revision of the European standard EN 590 now recognizes biodiesel blends up to five percent as diesel.
“It has made things much, much easier,” Garofalo commented, adding that in France and Italy, blends up to five percent are not labeled as biodiesel.
Christine Paquette, Biodiesel Association of Canada (BAC), addressed activities in Canada, including a new blend standard being drafted that is due out shortly. She emphasized that when BAC was formed, they took a feedstock neutrality position.
“It’s really important for you to know that there are opportunities for all feedstocks,” Paquette remarked.
How state laws help sell biodiesel was one of several sessions that wrapped up the conference and one that drew a sizeable crowd. Mark Dehner, Growmark, Inc., discussed the details of getting sales tax incentives passed in Illinois in 2003. When approaching lawmakers on introducing biodiesel legislation, he encouraged others to highlight biodiesel’s performance traits, lubricity properties, the economic impact of both state and federal tax incentives, and the impact of greater energy independence. Jim Armstrong, Spokane County (Washington) Conservation District, used his personal Volkswagen Beetle that runs on biodiesel as his way of introducing lawmakers to the alternative fuel, which eventually lead to the passage of four bills that range from encouraging state agencies to use B20 in all diesel vehicles and equipment, to a biodiesel pilot program with two school districts.
“It [the legislative process] is a long and winding road,” warned Armstrong. He stressed that bi-partisan support from Republicans and Democrats is crucial and to highlight the benefits of the legislation to the state (e.g., energy dependence, clean air, etc.), be prepared for the unexpected, and be patient because getting legislation passed could take several years.
Ray Albrecht, New York State Energy Research and Development Authority, shed a bright light on New York’s vast energy consumption, where consumers use more than 35 million gallons of petroleum every day and spend $40 billion annually on energy, with virtually every dollar leaving the state. To encourage the use of alternative fuels, New York Governor George Pataki has provided various credits in his 2005-2006 budget and recently signed an executive order requiring state agencies to begin phasing in the use of biofuels to heat state buildings and power state vehicles. Albrecht said over one million gallons of B20 was purchased under state contract in 2004 with no significant cold weather issues identified and that the authority is investigating biofuel production and distribution in New York.
Also part of the conference was an exhibit hall, where attendees could explore the services and wares of 70 exhibitors and companies such as biodiesel producer and renderer Griffin Industries, Inc., and production technology companies BDI Biodiesel International, Biosource Fuels, and Superior Process Technologies could introduce themselves to potential clients.
“This year’s conference was better for our business as it was much larger in attendance,” commented Dick Talley, Biosource Fuels. “Moreover, the attendees at this year’s conference were more mature and experienced in the arena of commercial biodiesel production. The attendees were much more cognizant of the need for quality products, fuel standards, and process economics.”
Next year’s biodiesel conference and expo is scheduled for February 5-8, 2006, in San Diego, CA.
April 2005 Render