By Tina Caparella
Over the last decade, biodiesel has slowly emerged as an alternative fuel. It has only been in the past few years that biodiesel has gained momentum for use in private and government fleets, school buses, city transportation, national parks, and military vehicles, just to name a few. Initially produced using soy and vegetable oils, feedstocks used to make biodiesel now include animal fats and recycled cooking oil. While most renderers have been sitting in the wings waiting to see how this new market develops, a few have taken the plunge into biodiesel and have mixed emotions about the potential for the rendering industry in this new market.
Griffin Industries took the lead in the rendering industry by going online with their biodiesel plant nearly five years ago. Using batch equipment developed by BDI in Graz, Austria, Griffin Industries produces between one million and 1.6 million gallons of the alternative fuel each year.
“The equipment has performed well with good support from Mr. Wilhelm Hammer, [president, BDI] and his technical staff,” reports Dennis Griffin, chairman, Griffin Industries. The equipment allows the company to produce biodiesel from most any oil feedstocks – corn, soy, fish, canola, and all rendered oils. Flexibility in feedstock used to produce biodiesel is key when selecting production equipment, says Ron Wardrop, Rothsay.
“Build a plant that deals with all feedstocks, no matter where it comes from,” recommends Wardrop. Rothsay has been producing biodiesel in their pilot plant in Montreal, QB, Canada, since September 2001 using restaurant grease and animal fats. The plant, which consists of a batch system designed by Rothsay, generates over one million gallons per year, with expansion plans to 9.2 million gallons per year in 2004.
Both renderers produce their biodiesel to meet American Society for Testing and Materials Standard D 6751, a requirement to sell the fuel commercially. Griffin Industries’ fuel also meets European standards with Rothsay currently working on that goal. Customers for the renderers’ fuel include urban transit systems for Rothsay and truck and rail for Griffin Industries.
But the biodiesel market hasn’t been without its challenges. While customer acceptance for biodiesel, no matter what the feedstock, is not a concern, the biggest hurdle for renderers is convincing government regulators and competing oil industries, such as soy, that feedstock neutrality is imperative to the success of biodiesel.
“We didn’t allow that the U.S. government would be our competitor with all the subsidies favoring the soybean oil feedstock over our industry’s feedstock even though we are a quality producer, at a lower cost,” comments Griffin. Wardrop agrees: “We have advantages already. We are the cheaper provider of feedstock, now all we need is feedstock neutrality and a stable subsidy so the renderers have the confidence to spend the capital.”
Current U.S. regulations provide soy-based biodiesel with about twice the government subsidy as biodiesel produced from animal fats. Renderers have been battling equality in subsidies for years, but to no avail. Hopes of the latest energy bill passing, which balances out subsidies for feedstock in biodiesel, diminished late last year when the bill died in the U.S. Senate. Talks are the bill may be revived early this year.
Meanwhile, other challenges keep renderers who are producing biodiesel on their toes. One learning curve for Griffin Industries has been dealing with a new science in producing a non-agricultural product, which includes handling methanol and the associated regulations. Wardrop says dealing with high fatty acids and the fuel’s cloud point in the winter, when temperatures drop dramatically in Canada, have been challenging issues.
Although they do not have their own biodiesel plant, Baker Commodities has been a partner in biodiesel production using yellow grease and tallow with other companies for the past year and is exploring the possibility of building plants with other entities that might utilize feedstocks generated by Baker Commodities’ rendering facilities. Fred Wellons, director of research and development/quality assurance, Baker Commodities, adds that another challenge for the rendering industry could be competition from non-renderer biodiesel companies that collect restaurant grease in order to supply their plants with feedstock. However, on the plus side, renderers who do not build their own plant but partner with those who do produce biodiesel will help increase the demand for their recycled oil products and those of the entire industry.
So are there enough benefits for renderers considering entering the biodiesel market to jump in at this time?
“Timing is everything on this new opportunity,” comments Griffin. “The large capital expenditure involved in biodiesel plants needs the most careful review before starting down the biodiesel path.”
Wellons adds, “Since capital costs are relatively high, make sure you get an ‘apples to apples’ comparison from biodiesel equipment manufacturers.
“Also consider other biodiesel efforts in your geographical area,” Wellons continues. “A customer today may become a grease pick-up competitor later.”
February 2004 Render