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May/June 2014 Biodiesel Magazine

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Page 1: May/June 2014 Biodiesel Magazine
Page 2: May/June 2014 Biodiesel Magazine
Page 3: May/June 2014 Biodiesel Magazine

MAY | JUNE 2014 BIODIESEL MAGAZINE 3

CONTENTS

MAY/JUNE 2014 VOLUME 11 ISSUE 3

FEEDSTOCKThe Myth & Reality of Biodiesel Feedstock AvailabilityDispelling the popular misconception that growth is limited by feedstockBY RON KOTRBA

CO-LOCATION Time Has Come TodayEthanol plants embracing biodiesel become multirenewable fuel facilities

BY RON KOTRBA

4 Editor’s NoteThe Feedstock IssueBY RON KOTRBA

6 Legal PerspectivesSustainable Feedstock ContractsBY TODD A. TAYLOR

7 Talking PointA True Masterpiece: Feedstock Diversity and Biodiesel’s Carbon StoryBY DON SCOTT AND ALAN WEBER

9 Biodiesel Events

10 FrontEndBiodiesel News & Trends

14 Inside NBB

18 Business BriefsCompanies, Organizations & People in the News

38 MarketplaceBiodiesel Magazine: (USPS No. 023-975) May/June 2014, Vol. 11, Issue 3. Biodiesel Magazine is published bi-monthly by BBI International. Principal Offi ce: 308 Second Ave. N., Suite 304, Grand Forks, ND 58203. Periodicals Postage Paid at Grand Forks, North Dakota and additional mailing offi ces. POSTMASTER: Send address changes to Biodiesel Magazine/Subscriptions, 308 Second Ave. N., Suite 304, Grand Forks, North Dakota 58203.

DEPARTMENTS

CONTRIBUTION

30 PRETREATMENT

The Chemical Kinetics of GlycerolysisLaboratory work shows higher process temperatures can triple throughput BY ERIK ANDERSON

2620

32Advertiser Index

2014 National Advanced Biofuels Conference & ExpoALX Enterprises LLCApache Stainless Equipment CorporationCrown Iron Works CompanyEcoEngineersGEA Westfalia SeparatorGenscape, Inc.HERO BXICM, Inc.INTL FCStone Inc.Iowa Central Fuel Testing LabJatrodiesel, Inc.Louis DreyfusMethes EnergiesNBB National Biodiesel BoardOil-Dri CorporationThe Jacobsen Publishing CompanyWB Services, LLC

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918302911313722

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Page 4: May/June 2014 Biodiesel Magazine

BIODIESEL MAGAZINE MAY | JUNE 20144

THE FEEDSTOCK ISSUE

The biodiesel industry has long been considered limited in growth on many fronts, a major one be-ing the amount of available fats, oils and greases (FOG) to produce the fuel. Detractors use this to marginalize

biodiesel to merely a diesel fuel additive rather than a blend stock or replacement alternative for diesel. Their argument is, as biodiesel grows, feedstock markets be-come tight and prices rise, causing production to be uneconomical while affecting other markets relying on FOG. But in 2013, we witnessed an interesting phe-nomenon, as U.S. biodiesel and renewable diesel production soared to a record-shattering 1.8 billion gallons. Moreover, in the latter half of the year, the U.S. was producing biomass-based diesel at an annualized run rate of closer to 2.4 billion gallons, an impressive accomplishment for an industry that struggled just three years ago to produce 315 million gallons. Instead of this applying upward pres-sure on feedstock prices, however, we saw feedstock prices go down.

In our featured article on page 20, “The Myth & Reality of Biodiesel Feed-stock Availability,” several important points are made. One is that the commercial development of next-generation feedstocks will not be realized unless industries, in this case, biodiesel, continue to demand supplies of fi rst-generation feed-stocks. As Gene Gebolys, founder of World Energy Alternatives and chair of the National Biodiesel Board’s RFS working group, tells me, “There are folks out there who want to make innovation in feedstock the enemy of our current capa-bilities, and that’s really foolish,” he says. “There’s a lot of talk about foregoing fi rst-generation biofuels for next-generation biofuels, and the most certain way to kill next-generation biofuels is to take a pause in current-generation biofuels.” Another takeaway message from the article is that the biodiesel industry has come nowhere near its limits in terms of how much FOG it can absorb in order to grow in a responsible, sustainable manner.

Our feedstock coverage doesn’t stop there though. In “Time Has Come Today,” on page 26, we discuss the decision-making process of pioneers in the ethanol sector who have pulled the trigger on contracting with biodiesel technol-ogy providers to manufacture biodiesel from their distillers corn oil on site. Also, NBB’s Don Scott and Alan Weber author this issue’s Talking Point column, “A True Masterpiece: Feedstock Diversity and Biodiesel’s Carbon Story,” on page 7. Fredrikson & Byron’s Todd Taylor also hits our feedstock theme with his Legal Perspective column, “Sustainable Feedstock Contracts,” on page 6. Finally, Erik Anderson with Superior Process Technologies discusses glycerolysis of low-cost feedstocks in “The Chemical Kinetics of Glycerolysis,” on page 32. Thanks to all of our contributing writers—and our advertisers—for making this issue possible!

Ron KotrbaEditorBiodiesel [email protected]

EDITOR'S NOTE

w w w . B i o d i e s e l M a g a z i n e . c o m

E D I T O R I A L

P U B L I S H I N G & S A L E S

Mike Bryan

Joe Bryan

Matthew Spoor

John Nelson

Howard Brockhouse

Chip Shereck

Jessica Beaudry

Marla DeFoe

[email protected]

[email protected]

Vice President, [email protected]

Marketing [email protected]

Business Development [email protected]

Senior Account [email protected]

Circulation [email protected]

Traffic & Marketing [email protected]

A R T

Jaci Satterlund

Elizabeth Burslie

Art [email protected]

Graphic [email protected]

Tom Bryan

Tim Portz

Ron Kotrba

Jan Tellmann

President & Editor in Chief [email protected]

Vice President of Content & Executive Editor [email protected]

[email protected]

Copy [email protected]

Subscriptions Subscriptions to Biodiesel Magazine are free of charge to everyone with the exception of a shipping and handling charge of $49.95 for any country outside the United States. To subscribe, visit www.biodieselmagazine.com or you can send your mailing address and payment (checks made out to BBI International) to: Biodiesel Magazine Subscriptions, 308 Second Ave. N., Suite 304, Grand Forks, ND 58203. You can also fax a subscription form to 701-746-5367. Reprints and Back Issues Select back issues are available for $3.95 each, plus shipping. Article reprints are also available for a fee. For more information, contact us at 701-746-8385 or [email protected]. Advertising Biodiesel Magazine provides a specifi c topic delivered to a highly targeted audience. We are committed to editorial excellence and high-quality print production. To fi nd out more about Biodiesel Magazine advertising opportunities, please contact us at 701-746-8385 or [email protected]. Letters to the Editor We welcome letters to the editor. If you write us, please include your name, address and phone number. Letters may be edited for clarity and/or space. Send to Biodiesel Magazine Letters, 308 Second Ave. N., Suite 304, Grand Forks, ND 58203 or email to [email protected].

TM

Please recycle this magazine and remove inserts or samples before recycling

COPYRIGHT © 2014 by BBI International

Page 5: May/June 2014 Biodiesel Magazine

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Page 6: May/June 2014 Biodiesel Magazine

BIODIESEL MAGAZINE MAY | JUNE 20146

Sustainable Feedstock ContractsBY TODD A. TAYLOR

If you are a biodiesel producer, you already believe in sustainability and taking care of our natural resources. You already have your renewable fuel standard (RFS) path-way and are making the best biodiesel you can while trying to make the highest profi t possible. Sustainability is part of your DNA, but is it part of your feedstock contracts?

Sustainability in biodiesel feedstock contracts means many things. Historically, it has meant simply buying feedstock that allows for the resulting biodiesel to qualify for a renewable identifi cation number (RIN) under the RFS. Increasingly, however, sustainabilty is starting to be looked at more broadly, and biodiesel companies need to be aware of the specifi cs of what makes a feedstock and fuel sustainable.

When it comes to establishing a pathway for biodiesel, feedstock is key. The “better” the feedstock, the lower the carbon score and, thus, the more you can get paid for your biodiesel. This is especially true in California under the low carbon fuel standard (LCFS) where a lower carbon score means more money.

So what does sustainability mean for a feedstock contract? In its 1987 report, “Our Common Future,” The United Nations World Commission on Environ-ment and Development defi nes sustainable develop-ment as “Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.”

The Sustainable Biodiesel Alliance even has defi ned sustainable biodiesel: “Sustainable biodiesel is biodiesel that is produced in a manner that, on a life-cycle basis, minimizes the generation of pollution, including greenhouse gases; reduces competition for, and use of, natural resources and energy; reduces waste generation; preserves habitat and ecosystems; maintains or improves soils; avoids use of genetically modifi ed organisms; and provides community economic benefi t that results in jobs and fair labor conditions.”

Note that the defi nition above is mostly focused on feedstock-related issues, rather than produc-tion technology issues. Tilling, irrigation, fertilizer use, GMOs, even transportation distances between feedstock supplier and biodiesel plant, are all critical ele-ments, and each can be part of an offtake contract you

may be facing in the future. While not common, there are already contracts with provisions related to sustain-ability in offtake agreements being signed with major strategic partners. While most sustainability provisions are voluntarily adopted in the U.S., this may change as customers push for sustainability, and regulators on a state and federal level increasingly pull; and in Europe and parts of Asia, sustainability is part of the legal land-scape. Biodiesel producers selling biodiesel into foreign markets are already aware of the differences.

If a customer requires your biodiesel to be sustainable, you will need to require your feedstock providers to be sustainable. For biodiesel, the thought of requiring your farmers to sign feedstock contracts is very odd. Besides the fact that your customers may require your biodiesel to be sustainable, sustainability is really about good farming practices and a sense of connection to the land, and with the people who work that land. Working with your growers to be sustainable is ultimately good for everyone.

Contract provisions for your feedstock suppliers may include requirements to use farming methods that require lower use of fertilizers and pesticides, both of which can contribute to carbon emissions and soil deg-radation. Contracts could also impose sustainable crop rotation requirements to minimize loss of soil nutrients and maximize disease resistance. One common require-ment is to not place marginally productive land, includ-ing but not necessarily limited to CRP land, in service in order to avoid releasing land-sequestered carbon. Other requirements are related to the supply chain and may demand use of low carbon emissions for on- and off-road vehicles in the farming and transportation of the feedstock, as well as placing maximum distances on hauling feedstocks.

Sustainability is part of the daily life of farm-ers and biodiesel producers. As the rest of the world adopts sustainability, biodiesel producers will have to address a host of new voluntary and potentially mandatory sustainability conditions as we all adapt to a changing world.

Author: Todd A. Taylor Attorney, Fredrikson & Byron

[email protected]

LEGAL PERSPECTIVE

Page 7: May/June 2014 Biodiesel Magazine

MAY | JUNE 2014 BIODIESEL MAGAZINE 7

Although neither of us could be con-sidered an expert judge of art, the mosaic of biodiesel feedstocks could be consid-ered one of the more colorful pieces of artwork, if not a masterpiece, within the biofuels arena. This diversity has been a strength as biodiesel producers utilize an extensive pallet of feed-stocks. These include recycled cooking oil, vegetable oils such as soybean and canola oil, animal fats, and other byproducts such as distillers corn oil (DCO).

The benefi ts of this diversity are far from abstract. When a signifi cant portion of the U.S. experienced dry growing conditions in 2012, the diversity and abun-dance of available feedstocks for biodiesel production helped alleviate supply concerns. Also, the use of DCO has added to the profi tability of ethanol production. Increased domestic use of animal fats and used cooking oil in 2013 has helped offset reduced exports for the rendering industry. All together, this diverse feedstock supply enabled the biodiesel and renewable diesel indus-tries to grow to 1.8 billion gallons in 2013.

In this picture, an impressive example of growth is that of DCO. An inedible byproduct of ethanol pro-duction, DCO fl ourished as a result of thriving ethanol processing and the economic incentive to extract the oil for biodiesel manufacturing. We saw 62 percent growth in this product for biodiesel in 2013, and 105 percent growth in 2012. This equates to more than 250 million gallons of biodiesel since 2011.

DCO shows that innovation will fi nd economic solutions when public policy values the environmental and social benefi ts of renewable fuels. But sometimes lost in the discussion is how improvements in technol-ogy and biodiesel’s diversity have made biodiesel a very cost-effective technology in reducing carbon from the transportation sector and providing other environ-mental and social benefi ts. In 2013, U.S. consumption of biomass-based diesel resulted in the elimination of approximately 17.3 million metric tons of CO2—equiva-lent to the annual emissions from 3.6 million cars. Since 2011, biodiesel production costs have declined by 20 percent. At the same time, the biodiesel industry has

signifi cantly increased its use of low-carbon feedstocks derived from waste grease, animal fats, DCO and other ancillary agricultural products, which currently account for almost half of combined U.S. biodiesel and renew-able diesel production. It’s noteworthy that all of the feedstocks used to satisfy the renewable fuel standard (RFS) are decreasing in carbon intensity as the fossil fu-els they displace are increasing in carbon intensity. Based on published life-cycle analysis and an average of 2013 feedstocks, the aggregate biodiesel industry currently reduces CO2 emissions by approximately 81 percent relative to average petroleum diesel, on an energy-equiv-alent basis.

Based on biodiesel’s feedstocks and respective carbon life-cycle estimates, today’s biodiesel eliminates CO2 emissions from petroleum-based diesel at a cost of $71 to $91 per metric ton. While environmental groups often cite that the social cost of carbon is indeed much higher, some government agencies accept this range to represent the value to society in terms of environmental and human health damages that will be incurred if we continue to use fossil fuels, or that can be saved if we reduce fossil carbon emissions. Current trends indicate that the cost of carbon reduction using biodiesel can be even lower in 2014.

Possibly the best part of the biodiesel landscape is that the RFS and other market factors will continue to drive innovation. Research investment will yield new technologies to contribute to low-carbon feedstock sup-plies such as camelina, fi eld pennycress, brown greases, and let’s not forget the amazing leaps that can be made with existing feedstocks. Our industry’s feedstock mas-terpiece is never fi nished. Unlike a great work of art, the biodiesel industry’s masterpiece will continue to evolve, with its beauty found in its diverse pallet.

Authors: Don Scott, Alan WeberThe National Biodiesel Board

573-635-3893 [email protected]@marciv.com

A True Masterpiece: Feedstock Diversity and Biodiesel’s Carbon Story BY DON SCOTT AND ALAN WEBER

TALKING POINT

Page 8: May/June 2014 Biodiesel Magazine

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Page 10: May/June 2014 Biodiesel Magazine

BIODIESEL MAGAZINE MAY | JUNE 201410

FrontEnd Biodiesel News & Trends

Researchers from the University of Porto, Portugal, are looking at water-free methods to purify biodiesel.

The study involved heterogeneous transesterifi cation using what the researchers say is a very active calcium glyceroxide catalyst followed by efforts to remove soaps through pretreating the crude biodiesel (methyl ester content of 90.2 to 91.2 percent by weight, and calcium content of 372 to 393 parts per million) with sodium carbon-ate (Na2CO3) and, afterward, running the fuel through ion exchange resins (6 percent by weight) or a ceramic membrane (0.1 μm).

The purifi cation was effective using biodiesel produced from both soybean and used cooking oils, and resulting fuel quality was comparable to that of conventional water-washing.

While dry-washing biodiesel is not uncommon, the researchers say the effectiveness of this treatment could be explained by calcium elimination through precipitation as calcium carbonate (CaCO3) dur-ing pretreatment, and sodium soaps removal by absorption into the resin or fi ltration by the ceramic membrane, according to the micelle formation mechanism. The researchers say the process “presents a

high potential to remove calcium soaps from biodiesel,” and “could provide signifi cant economic and environmental benefi ts compared to other more energy intensive water-based production methods.”

“In some countries like Brazil, biofuels provide nearly a quarter of their road transport needs,” says David Brown, the Institution of Chemical Engineers chief executive. “In the European Union, negotiations are under way to increase biofuels for transport to 10 percent. And Indonesia—the world's largest producer of palm oil—has announced plans to increase biodiesel production to reduce its reliance on crude oil imports. Current production processes do not always deliver the full potential of biofuels to help reduce greenhouse gas emissions, however, and there are continuing challenges includ-ing economic and environmental. But demand for biofuels is clearly increasing and advancement in chemical engineering processes, such as the use of heterogeneous catalysis and water-free methods using membranes, are very welcome to consolidate biofuels as a globally accepted and sustainable source of renewable energy.”

The Union zur Förderung von Oel- und Proteinpfl anzen (UFOP) reports that the sale of biodiesel declined drastically by 90 million gallons in 2013, according to information from the German Federal Offi ce of Economics and Export Control (BAFA). During 2009-’12, biodiesel sales averaged 750.5 million gallons. In 2013, the volume was only 660.5 million gallons.

UFOP says it has determined that the actual decline in vegetable methyl esters is much more dramatic because the BAFA data also includes the offset amount of hydrated vegetable oil (HVO) and biodiesel from waste oils. Assuming HVO sales of 126 million gal-lons and an estimated sale of up to 60 million gallons of waste-derived biodiesel, the actual sale of conventional biodiesel is only about 480.3 million gallons, UFOP states.

“The consumption statistics spell out the signifi cance of pure fuel marketing in the years 2007-’08 and the total energy quota of 5.25 percent introduced in 2009, as well as its increase to 6.25 for the period 2010-’14,” UFOP says. “How-ever, with the resolution for the Biofuel Quota Act having been passed as a clear indication of political will, the UFOP has criti-cized that volume balancing for compensation of the incremental reduction in the tax concession—biodiesel has been subject to full taxation since 2013—will creep in due to the double ap-portionment of biofuels from waste oils and as a result of HVO imports.”

While German biodiesel sales were down last year, the nation did set a biodiesel record in 2013. At around 480.3 million gallons (just under 1.6 million metric tons), the German biodiesel industry

set a new export record last year, according to an appraisal by the Agricultural Market Information Co. based on BAFA data. The appraisal shows exports from Germany have risen by 20 percent, or roughly 105 million gallons, in comparison to the previous year. UFOP notes that, in the same period, biodiesel imports fell from 228.1 million gallons to 168.1 million gallons.

The UFOP states several reasons for this. The tariffs put on Argentine and Indonesian biodiesel are now showing their effect. Less than 2.25 million gallons of biodiesel was imported from Indonesia. UFOP also says the export balance “confi rmed the competitiveness of the German biodiesel industry and conse-quently its international marketing expertise.” UFOP states that the U.S., with 54 million gallons, is its most important partner outside the EU.

Portuguese researchers study alternative biodiesel processes

2013 a mixed year for German biodiesel

SOURCE: GERMAN FEDERAL STATISTICAL OFFICE

Page 11: May/June 2014 Biodiesel Magazine

MAY | JUNE 2014 BIODIESEL MAGAZINE 11

FRONTEND

The global market for specialty fuel additives is expected to reach $8.5 bil-lion by 2020, according to a new report, titled, “Specialty Fuel Additives Market Analysis and Segment Forecasts to 2020,” by Grand View Research Inc. Cold fl ow improvers are expected to be the fastest growing product segment, the report fi nds, with an estimated compound an-nual growth rate (CAGR) of 7.9 percent from 2014 to 2020.

“Positive outlook on biodiesel demand, especially in regional markets of North America and Europe, is expected to boost cold fl ow improver sales over the next six years,” Grand View Research states. “The global demand for cetane improvers is projected to reach 209.6 kilotons by 2020, at an estimated CAGR of 5.7 percent from 2014 to 2020.”

Other key fi ndings of the study suggest:

• The global market for specialty fuel additives was 1,383.4 kilotons in 2013 and is expected to reach 2,066.4 kilotons by 2020, growing at a CAGR of 46 percent from 2014 to 2020.

• Gasoline dominated the global application market for specialty fuel addi-tives, accounting for 46.2 percent of total market volume in 2013. High gasoline demand, mainly in the U.S., is expected to

drive the demand for specialty fuel additives used in gasoline. Owing to surging demand for ultra-low sulfur diesel (ULSD), how-ever, diesel is expected to surpass gasoline to emerge as the leading application market for specialty fuel additives by 2020. On the afore-mentioned factors, diesel is also expected to be the fastest growing application market for specialty fuel additives at an estimated CAGR of 6.5 percent from 2014 to 2020.

• North America dominated the global market for specialty fuel additives and accounted for 27.8 percent of total market volume in 2013. The clean fuel program initi-ated by the U.S. EPA is expected to drive the regional demand for spe-cialty fuel additives. Rapid strides in fuel consumption by countries such as India and China are expected to turn to Asia Pacifi c as the most attractive market, however, which is projected to grow at an estimated CAGR of 7 percent from 2014 to 2020. In addition, Asia Pacifi c is expected to surpass North America to become the largest market for specialty fuel additives by 2020.

• Global market for specialty fuel additives is moderately concentrated with

Cold flow improvers to grow significantly in next 6 years

top four companies including NewMarket, Innospec, BASF and Infi neum accounting for 48.5 percent of total market in 2013. Other companies operating in the global specialty fuel additives market include Lubrizol, Baker Hughes, Chevron Oronite, Albemarle, Chem-tura, Clariant, Dow Chemical Co., Evonik Industries, Eurenco, Total Additives & Special Fuels, Dorf Ketal and NALCO Champion among others.

SOURCE: GRAND VIEW RESEARCH INC.

Page 12: May/June 2014 Biodiesel Magazine

Lab success doesn’t always translate to real-world success. A team of Michigan State University scientists, however, has invented a new technology that increases the odds of helping algae-based biofuels cross that gap and come closer to reality.

The current issue of Algal Research showcases the team’s invention—the environmental photobioreactor (ePBR). The ePBR system is the world’s fi rst standard algae growing platform, one that simulates dynamic natural environments.

Simply put, ePBR is a pond in a jar that helps identify, cultivate and test algal strains that have the potential to make the leap from lab to pond, proliferate in real-world, real-pond settings and produce the most oil.

Many scientists around the globe are looking for strains of algae that could become a sustainable source of alternative energy. A vexing problem they face, however, is that algal strains that perform well in labs often get stomped when it’s time to scale-up the experiment, says Ben Lucker, MSU research associate.

“It’s like training elementary kids to be really good Ping-pong players,” he says. “But then they take the kids and throw them into a football game against professional players; in those settings, they simply can’t compete at all.”

The ePBRs, which subsequently help make algae biofuel research more desirable to investors, were the brainchild of David Kramer, Hannah Distinguished Professor of Biochemistry and Molecular Biol-ogy at MSU.

Kramer’s lab is like no other. Even though it’s housed among other plant biologists, it could be mistaken for an electronics factory. The benches are covered with wires, soldering irons and printed circuit boards. There are even few early prototypes that provide a history of ePBR’s progress.

The latest models glow green and whir quietly as they test vari-ous strains. By allowing scientists to duplicate natural settings in a lab, ePBRs eliminate many variables before scaling up. The bioreactors

are about the size of coffee makers and can induce changes in light, temperature, carbon dioxide, oxygen, evaporation, nutrient availability and more.

The ePBR system also can duplicate and confi rm results from experiments conducted anywhere in the world. It replaces home-built growing platforms made from fl asks, tubing, aluminum foil and grow lights and gives researchers a tool that can consistently replicate condi-tions and reproduce results, Lucker says.

The potential of ePBRs has already inspired the launch of a company, Phenometrics, an MSU spinoff headquartered in Lansing, Mich. The company is merely two years old, but steady orders for the bioreactors have the company already running in the black. Additional MSU scientists who were part of this study include Christopher Hall and Robert Zegarac. Kramer’s work is funded in part by the U.S. DOE and MSU AgBioResearch.

Michigan State advances algae’s viability as a biofuel

FRONTEND

ALGAE INNOVATOR: The ePBR system is the brainchild of David Kramer, Hannah Distinguished Professor of Biochemistry and Molecular Biology at MSU. PHOTO: G.L. KOHUTH

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Page 13: May/June 2014 Biodiesel Magazine

MAY | JUNE 2014 BIODIESEL MAGAZINE 13

FRONTEND

America’s oldest biodiesel production plant has vacated the Central Maui Landfi ll. While continuing operations in the collection of used cooking oil and trap grease waste, Pacifi c Biodiesel has closed its prototype facility. Built in 1996, Pacifi c Biodiesel’s Maui plant has been widely recognized as a pioneer in America’s biodiesel industry and was the longest, continually operating commercial biodiesel processing facility in the nation. The Maui operation has won awards from the Solid Waste Association of North America, the National Recycling Coalition and the United Nations Industrial Development Organization.

In December, Pacifi c Biodiesel was notifi ed by the Maui County Department of Environmental Management that continuing the cur-rent operation would require multiple permits and extensive upgrades to comply with new county requirements. Robert King, president and founder of the company, says, “With just over two years left on our contract, we couldn’t justify the costly site improvements that were required to meet the county’s demands.”

Pacifi c Biodiesel will continue its full range of pumping and collection services on Maui and Lanai as well as all its collection and processing operations on Oahu and Hawaii Island. Distribution of the company’s biodiesel fuel will continue statewide.

Prior to closing, the Puunene facility was providing preprocess-ing of waste oils for shipping to its state-of-the-art biodiesel refi nery in Hilo. Now that the landfi ll facility has closed, the cooking oil collected on Maui will be transferred directly to Big Island Biodiesel. Grease trap waste will continue to be processed on Oahu and Hawaii Island.

“Needless to say, it was diffi cult to shut down the plant after all these years but we found ourselves with little recourse given the extent of the requirements to continue operations,” says King. “We are committed to our community-based model and hope to return to Maui with our industry-leading technology in the future.”

In the meantime, Pacifi c Biodiesel will continue to collect Maui

County’s waste oils and grease and distribute premium distilled bio-diesel across the state. To date, the Maui-based company has diverted more than 22 million gallons of waste from the community’s landfi ll, greatly reduced the frequency of wastewater spills due to clogging by grease, and saved the county’s restaurants a lot of money.

Retired Pacifi c Biodiesel Operations Manager Larry Zolezzi estimates the savings to Maui restaurants to be about $1 million, explaining, “The pumpers used to charge $1 per gallon to pick up and dispose of used cooking oil (UCO) and $2 per gallon for grease. As the fi rst biodiesel company in the U.S., we changed the culture about what to do with UCO and now grease.” Since 2010, Pacifi c Biodiesel Logistics has been collecting UCO for free and offering restaurants reduced rates for grease trap service.

Pacific Biodiesel closes 18-year-old Maui plant

BIODIESEL PIONEER: Pacifi c Biodiesel Technologies' President Bob King, center, said with just over two years left on its contract at the current site, the company couldn't justify the costly improvements to meet the county's demands.PHOTO: PACIFIC BIODIESEL TECHNOLOGIES

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Page 14: May/June 2014 Biodiesel Magazine

BIODIESEL MAGAZINE MAY | JUNE 201414

People are often bemused—and per-haps even a bit intimidated—by the world of government. Especially the federal government. The buildings are palatial, 14-karat gold lines the doors and hallways. People speak in coded 18th century lan-guage. And, of course, everyone exudes an air of importance.

As a result, I am occasionally asked, “What is the secret to being a good lobby-ist?” It is a good and interesting question. The short answer is to simply “be honest and be yourself.” While I’d love to make it more complicated than that (for purpos-

es of job security), the reality is that adherence to these five little words will get you most of the way there.

Before I delve into a longer and perhaps more satisfying an-swer, I would like to make an essential point, which is that the vast majority of “lobbying” is merely education by another name. We help influencers understand technical information related to bio-diesel, its feedstocks, and whatever else might keep them from mak-ing informed decisions. The thrilling, vicious, high-stakes world of lobbying pretty much only exists on television. Disappointing, I know.

Real success in the field of government affairs relies on good, old-fashioned relationship-building. And just to be clear, I am not advocating for more toothy-grinned, alpha-networking. Everybody hates that. Or at least I do. No, what I am talking about is develop-ing genuine working relationships based on trust and mutual re-spect. And maybe even friendships, if you’re lucky. Once someone knows you, likes you, and trusts you, they’ll lend you their time and an open mind. And this, my friends, is fertile ground for biodiesel education. Or lobbying. Whatever you want to call it.

Of course, I’m not exactly unlocking any secrets to the uni-verse here. I realize that. So I am not sure this technically qualifies as an answer to the original question. But I guess the secret to being

a good lobbyist is that there is no secret. Be around a lot (a whole lot), know your stuff (more than anyone else), be persistent (but polite), and try to be a good person (admitting when you’re not). That is kind of it, really. Or, at least, 90 percent of it.

If this answer still leaves you wanting, I don’t blame you. This is not exactly the stuff of great novellas and screen plays. But it is the truth. As evidence, I would point you in the direction of our own Joe Jobe and the D.C. team. They have done a phenomenal job developing relationships with federal officials. Next time you at-tend a National Biodiesel Board meeting, watch them interact with agency and congressional staff. It is obvious they get along great. No tension. No formality. No conflict. Just a lot of positive energy. This is a big part of why such a long string of policy successes have been achieved at the federal level—from EPAct to the tax credit to RFS2.

In my area of state affairs, I would point to historical suc-cesses in states such as Minnesota, Iowa, and California. These are some of the best biodiesel markets in the country with some of the best policies for in-state companies. How were these successes achieved? You guessed it—good, old-fashioned relationship-build-ing. Of course, these aren’t the only states that do a great job, but I think these folks are among the leaders.

In these states, members not only know the decision makers, they are often viewed as friends, advisors and architects of mutually beneficial solutions. In addition to earmarking their own time for these activities, which is critical, they fund state trade associations to further facilitate collaboration, information gathering, and rela-tionship maintenance. In short, they are highly dedicated to being a consistent and helpful part of the legislative and regulatory process. And their wins are a win for the entire biodiesel industry.

So I guess I have a new short answer to “What is the secret to being a good lobbyist?” Ask Joe or an NBB member from Iowa, Minnesota or California.

Shelby Neal, Director of State Governmental Affairs, National Biodiesel Board

NATIONAL

BOARD

The Secret to Effective Lobbying

Shelby Neal, Director of State Governmental Affairs, National Biodiesel Board

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MAY | JUNE 2014 BIODIESEL MAGAZINE 15

With only two months left until U.S. EPA is expected to release final renewable volume obligations (RVO) under the renewable fuel standard (RFS), it is extremely important that all biodiesel stakeholders continue ag-gressively advocating for a higher biomass-based diesel standard.

The administration has proposed a standard of just 1.28 billion gal-lons—a sharp reduction from 2013 biodiesel production of nearly 1.8 bil-lion gallons. Such a cut would shock the industry and threaten the survival of many biodiesel companies.

The National Biodiesel Board continues to advocate for a higher volume consistent with 2013 production levels, or at least 1.7 billion gal-lons. NBB has held numerous meetings with EPA and administration of-ficials, ensuring they have access to up-to-date industry data and research. Although these meetings have been productive throughout the rulemaking process, we have seen no firm evidence thus far that the administration intends to increase the biodiesel volume in its final decision.

EPA Administrator Gina McCarthy has said the agency plans to fi-

nalize the rule in June. It is important to act quickly to share the individual, personal stories that this proposal will have with a reduced biodiesel vol-ume. While the administration has seen the economic analysis and data from NBB, it is important that they hear from individuals the very real, negative impacts it will have on your companies. Individuals can share their story by writing a letter to the editor or op-ed to the local newspaper, or by seeking media coverage from local media outlets. The economy and jobs in local communities are very important and anything that negatively impacts those will be newsworthy to local media. Be sure to tell your indi-vidual story, why the biodiesel industry is important, and how this rule will negatively impact your business and your community.

Biodiesel supporters should also reach out to their members of Con-gress to remind them how important the RFS is and how much it affects your businesses.

NBB urges you to get engaged. The future growth of the industry depends on it.

insideNBB

Continued RFS advocacy needed as decision nears

NBB again defends RFS in federal courtAs the petroleum industry continues to sue the U.S. EPA over the

renewable fuel standard (RFS), the National Biodiesel Board is actively engaged in helping to defend the law in court. In the latest case, attorneys for NBB delivered oral arguments on April 7 alongside the EPA and Department of Justice in support of the 2013 RFS volumes, particularly the advanced biofuel standard.

The case, brought by oil refiner Monroe Energy LLC and pending before the U.S. Court of Appeals District of Columbia Circuit, has sig-nificant implications for the future of advanced biofuels because we be-lieve it will affirm the EPA’s obligation to maintain the required statutory volumes amid persistent, unsupported calls to reduce those volumes.

Monroe Energy, joined by the American Petroleum Institute and other groups, challenged the EPA’s handling of the 2013 volume require-ments. While a number of renewable fuels groups have joined the case, NBB was the only renewable fuels group to present oral argument along-side the EPA. NBB was represented in court by Bingham McCutchen, the law firm that has successfully handled RFS litigation for NBB since the law’s implementation.

Among the arguments supporting the EPA’s position, NBB pointed out that the petroleum industry’s challenge makes no argument that in-sufficient volumes of renewable fuels were available in 2013 and funda-mentally misinterprets the EPA’s authority to waive volume requirements

under the law. NBB maintains that the EPA’s 2013 standards achieved the directives of Congress.

The Monroe case is the fifth case involving the RFS in which NBB has intervened since 2011. All of the cases have been resolved favorably in EPA’s favor, except a case decided in 2013 involving cellulosic ethanol standards. NBB will continue to support biodiesel producers by defend-ing the RFS on all fronts.

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BIODIESEL MAGAZINE MAY | JUNE 201416

insideNBB

ASTM International is the standards development organization that sets specifications for thousands of consumer products, including fuels like biodiesel. Unlike many other global standards development organizations, ASTM’s decentralized committee system, open forum, and administrative framework allow for anyone interested in a particular area to participate. For biodiesel producers, this means you can be di-rectly involved in setting the standards that govern your industry.

ASTM standards are developed related to the minimum product quality limits, as well as the methodologies used to analyze those prod-ucts. With committees covering everything from air quality to concrete and plastics, the biodiesel industry participates in Committee D02 for “Petroleum Products, Liquid Fuels and Lubricants.”

Committee D02 is ASTM’s largest committee with more than 2,400 members from 65-plus countries, from public- and private-sector interests. Members include petroleum companies; biodiesel producers; auto, truck and engine manufacturers; the military; and general interest companies such as government organizations and laboratory instru-ment manufacturers. Each individual member has options of partici-pating in subcommittees dealing with products such as gasoline, diesel fuels, jet fuel, LPG, lubricants and hydraulic fluids; or in subcommittees

dealing with specific properties such as combustion, elemental analysis, flow properties, and stability and cleanliness.

Being a member of ASTM allows access and input into the ballot items as well as ac-cess to the semiannual member meetings for further discussion with industry peers. Becoming involved in the standardization process is the best way to be-come aware of, and provide in-put to, potential new limits and test methods for your products. While ASTM plays no role in enforcing any of the limits set forth, the standards become mandatory when cited in regulations or in business contracts. These regulations can have a ma-jor impact on the fuel produced at biodiesel facilities across the country.

To join and participate, anyone can enroll at http://www.astm.org/MEMBERSHIP/index.html or contact NBB.

Participate in ASTM: You can have a role in biodiesel standards

Voluntary BQ-9000 programs pay off for participants, industryWhen U.S. biodiesel production began to

take off back in 2005, the fledgling industry quickly became familiar with fuel quality issues and concerns. The BQ-9000 quality assurance programs have since been a major contributor to the now phenomenal fuel quality we have come to expect from commercial suppliers.

“Implementing BQ-9000 and getting ac-credited is a lot of work, but we find follow-ing BQ-9000 structure and rules really helps manage and run Thumb BioEnergy,” said Leon Jackson of Thumb BioEnergy, a small biodiesel producer in Sandusky, Mich. “It has really helped us maximize production and op-timize the quality of our fuel. I would highly recommend becoming a BQ-9000-certified producer.”

The BQ-9000 quality assurance pro-grams are designed to help ensure that the bio-diesel fuel produced, blended, and distributed throughout the U.S. meets and is maintained against the appropriate ASTM specifications. There are currently three voluntary programs developed for producers, fuel marketers and in-

dependent labora-tories. While these are not product quality certification programs, they en-sure the individual companies follow the necessary poli-cies and procedures to maintain the fuel throughout the pro-cess by a checklist of independently audited procedures.

The efforts to expand the programs have been largely successful with more than 87 percent of biodiesel produced in 2013 originating from a BQ-9000-certified pro-ducer. As the program continues to evolve and improve, there is interest from OEMs and the industry in an expansion of the pro-gram to the retail level to further enhance consumer confidence in biodiesel.

For more information on the programs, visit www.bq-9000.org.

NBB welcomes new membersBlack Bear Biodiesel LLC—Plainfi eld, Vt. ENI Trading and Shipping Inc.—Houston

Genscape Inc.—Louisville, Ky. Rolympus (US) Commodities Group LLC—New York City

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MAY | JUNE 2014 BIODIESEL MAGAZINE 17

insideNBB

No one ever expects an accident to happen to them. That is why they are called accidents. All businesses have risks involved and the production and transport of biodiesel is no exception. If something happened to your company tomorrow, would you be ready? No matter what the issue is, the National Biodiesel Board has resources that can help.

“While we hope it’s never needed, our members can access ex-perts on staff in communications, public relations, fuel quality and test-ing, the petroleum supply chain, and all kinds of other areas that can be helpful in an emergency,” said NBB Director of Communications Jessica Robinson.

Emergencies can come in lots of different forms, but one of the best ways to deal with an emergency is to have a plan ahead of time.

“A fire, tornado, train derailments, operations issues in a custom-

er’s vehicle, these are all things that can be a problem, and they don’t always happen between 9 a.m. and 5 p.m. on weekdays,” Robinson said. “If having your trade association on speed dial isn’t part of your emergency plan, it should be. We are here to help.”

With advancements in technology, it is easier than ever to get a hold of your association staff if an emergency situation should occur. Smart phones allow 24/7 access to email. Phone messages left on the office voicemail system are automatically forwarded to the individual’s email, so leaving a message at 800-841-5849 is an option.

“If you are writing up a crisis communication plan for your plant and want to include our cell phone numbers, just call the office or email us and we would be happy to get you that too,” said Robinson. “We may not answer on the first ring at 2 a.m., but if you leave a message you will definitely hear back from us in short order.”

The National Biodiesel Foundation re-cently awarded a grant to the National Biodies-el Board to improve the science of greenhouse gas (GHG) modeling. Greenhouse gas reduc-tions add to the economic and energy security benefits of biodiesel as an alternative to im-ported petroleum. Renewability and environ-mental benefits are something that fossil fuels simply can’t offer, so quantifying these benefits sets biodiesel apart from other alternatives in state and federal energy policies.

“The greatest potential for improving the accuracy of biodiesel’s GHG score is to im-prove the quantification of indirect land use change associated with feedstock production,” said Don Scott, director of sustainability at NBB. Under the NBF grant, NBB expects to improve the accuracy of data used in eco-nomic and life-cycle models. The biodiesel industry has set respon-sible goals based on the availability of feedstocks without increasing prices or acres.

Scott further explains, “The current theory of indirect land use change relies on the assumption that feedstock prices will increase, so the models are predicting outcomes nearly the opposite of what is actually happening.” In 2013, record biodiesel production demon-strated that feedstocks could remain in abundant supply. Biodiesel production increased 35 percent while soybean oil prices dropped 25 percent. “If the scientific community continues to improve the

modeling, it is likely that model results will converge with reality and show zero indirect land use change emissions attributable to U.S. bio-diesel,” Scott said.

NBF hopes to continue to support biodiesel research through projects such as the NBB grant to improve data inputs to GHG models. “NBF has shown a superior ability to manage the complex, technical projects required so that the science surrounding indirect land use change can be improved,” said NBF Vice President Beth Calabotta.

NBF encourages others to get involved as there is considerably more research to do. For more information about the foundation and its activities, or to show your support of its projects, visit www.BiodieselFoundation.org.

No. 1 resource: Your trade association on speed dial

Biodiesel Foundation: Investing in good science helps the industry

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BIODIESEL MAGAZINE MAY | JUNE 201418

Alfa Laval launched a new range of tantalum heat ex-changers that offer the high corrosion resis-tance of a solid-tan-talum heat exchanger, but at a much lower investment cost. The combined benefits of lower capital cost, long-lifetime and minimal maintenance requirements result in signifi-cantly lower total cost of ownership com-pared to heat exchangers made of high-grade alloys, graphite, silicon carbide or glass. Tan-talum is one of the most corrosion-resistant metals, but it’s also very costly. Alfa Laval’s new tantalum heat exchangers have a thin layer of tantalum metallurgically bonded to all surfaces exposed to corrosive media. The result is maximum corrosion resistance and mechanical stability at a low investment cost. The tantalum surface allows Alfa Laval’s new heat exchangers to be used with most corro-sive media at temperatures up to 437 degrees Fahrenheit. Unlike many high-grade alloys,

they can be used with mixed media and at variable concentrations.

Methes Energies International Ltd. announced it has received a deposit from Antilla Energy VBA, formally known as BioFuel Aruba, to start the manufacturing process of one Denami 600 to be delivered to Aruba. The Denami 600 is expected to be delivered in September. Antilla will utilize lo-cally collected waste cooking oil to produce biodiesel that will then be blended with diesel fuel and distributed to clients across the is-land. Antilla Energy VBA is a national com-pany focused on the development and imple-mentation of island-based biodiesel projects utilizing nonfood crop biodiesel feedstocks such as used cooking oil and algae.

Targray, a leader in North American biodiesel supply, announced a new inven-tory location for biodiesel in Bakersfield, Calf. Service for B99 and B100 began in mid-February. Targray will supply biodiesel to its growing customer base in California using the terminal's 24/7 truck rack. “Targray has been

a major supplier of biodiesel by railcar to the California market,” says Andrew Richardson, president of Targray. “We are pleased to take it a step further by providing our customers with this strategic California inventory lo-cation able to serve both the north and the south.” Dan Murray, Targray vice president, says, “We have several active customers in California. We are now reaching out to them to make them aware that they can pick up full truckloads or even splash blend with us now in Bakersfield.”

Great Lakes Biodiesel Inc., the larg-est biodiesel-producing plant in Canada, re-ceived BQ-9000 Producer status from the National Biodiesel Accreditation Com-mission. This designation is the highest level of industry recognized quality assurance. BQ-9000 is a cooperative and voluntary quality

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Page 19: May/June 2014 Biodiesel Magazine

MAY | JUNE 2014 BIODIESEL MAGAZINE 19

assurance program administered by the Na-tional Biodiesel Board for the accreditation of producers and marketers of biodiesel fuel. The program addresses requirements of the ASTM standard for biodiesel, D6751, within a structured quality system that controls stor-age, sampling, testing, blending, shipping, distribution, and fuel management practices. Certification is awarded following a success-ful formal review and audit of the applicant’s quality system documentation, followed by a formal audit of the applicant’s conformance to its system. Great Lakes Biodiesel is located in Welland, Ontario. GLB is a member of the National Biodiesel Board and Ontario Bio-diesel Producers Association. The GLB facility is the largest biodiesel plant in Canada producing 45 MMgy made from vegetable oils. The plant uses state-of-the-art Desmet Ballestra production equipment, which is in service in more than 80 biodiesel plants around the world.

The Iowa Biodiesel Board has cho-sen Grant Kimberley, Iowa Soybean Association director of market develop-

ment, as its new ex-ecutive director to fill the vacancy left by Randy Olson, who took a position with the U.S. Soybean Ex-port Council earlier this year. As executive director, Kimberley’s first official day on the job was March 18, National Biodiesel Day. In his new role, Kimberley will develop and implement strategic plans for the IBB, in-cluding critical policy efforts. His duties will include overseeing the day-to-day operation of the organization, and collaborating with the board for the future of the organization. Kimberley joined the ISA staff in 2000. He graduated with a bachelor’s degree in agri-culture business from Northwest Missouri State University, and also has a master’s de-gree in public administration from Drake University. Prior to joining ISA in 2000, he worked for Monsanto. He began farming in 1995 and became the sixth generation of his family to farm in the U.S.

In April, the mayor of New Zealand’s capital city of Wellington, Celia Wade-Brown, welcomed an announcement by Z Energy of the company’s plans to invest $21 million in a 20 MMly (5.3 MMgy) biodiesel production fa-cility. Z Energy, headquartered in Wellington, says it plans to use tallow as feedstock for its new plant, using about 10 percent of the coun-try’s inedible tallow production. Wade-Brown says the announcement heralds a reduction in New Zealand’s reliance on fossil fuels and will help the country address climate change con-cerns. “Cities, countries and [corporations] all have a role to play in ensuring the world ad-dresses very real climate change concerns,” she says. “It’s great to see local company Z Energy leading new energy sources and developing a green economy for New Zealand.”

BUSINESSBRIEFSSponsored by

SHARE YOUR BUSINESS BRIEFS To be included in Business Briefs, send information (including pho-tos, illustrations or logos, if available) to: Business Briefs, Biodiesel Magazine, 308 Second Ave. N., Suite 304, Grand Forks, ND 58203. You may also fax in-formation to (701) 746-5367, or e-mail it to [email protected]. Please include your name and telephone number in each correspondence.

Kimberley

Page 20: May/June 2014 Biodiesel Magazine

BIODIESEL MAGAZINE MAY | JUNE 201420

FEEDSTOCK

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Greater demand for agricultural commodities from all sectors will expand current―and push development of new―supplies of fats, oils and greases for biodiesel growthBY RON KOTRBA

FEEDSTOCK

The Myth & Reality of Biodiesel Feedstock Availability

Since its commercial inception in the 1990s, the biodiesel industry has faced obstacles from all sides. The technical merits of the fuel have been challenged time and time again. Manufacturing costs and fuel pricing have been used to discredit biodiesel. Free marketeers have tarnished its reputation because government mandates and subsidies attempt to level the playing field with the petroleum indus-try, which still today after more than a century of domination, receives billions of dollars of government handouts a year. And the oil lobbies have waged smear campaigns on all fronts. Even the federal government—and certainly the current administration that has used biodiesel for its own political gains—has seemingly caved to the pressures of Big Oil and Big Food. This became evident last fall when the U.S. EPA suggested stalling the biomass-based diesel quota and shrinking the advanced biofuel mandate in its 2014-’15 renewable volume obligation (RVO) proposal for the renewable fuel standard (RFS). But perhaps the most referenced hindrance to biodiesel growth is global availability of fats, oils and greases (FOG).

“The constraints to biodiesel growth aren’t really from the feedstock side,” says John Kruse, one of the owners and directors of quantitative analysis at World Agricultural Economic and Environmental Services LLC, a firm contracted by the National Biodiesel Board to analyze feedstock markets and different scenarios to better understand how the market reacts with different policies. WAEES also does exploratory work with NBB to look at what the potential for the market is, depending on what EPA does with RFS volumes year-over-year. “Flipping it around a little, the constraints are where the market has to pay a high price for distribution and infrastructure to move biodiesel into the marketplace,” he says.

Kruse says now is a critical time for the biodiesel industry because EPA’s proposal establishes a potentially dangerous precedent for how the agency may set future mandates under RFS. “The longer-term aspect of how they propose to set the mandate based on demand, where you have the crude oil or petroleum industry as strong influencers in how much demand there is by defining the infrastructure available,” Kruse tells Biodiesel Magazine. “That’s perhaps a much more damaging aspect of their foreshadowing of how they want to set policy in the future. How do you ever get growth when you have the petroleum industry, which views you as a competitor, regulating your demand?” Clearly, according to Kruse, the EPA’s proposal to stall the biomass-based diesel standard at 1.28 billion gallons for 2014-’15 is not because of feedstock shortages or potential disruptions in the commodities markets from biodiesel growth.

Gene Gebolys, the founder, president and CEO of World Energy Alternatives, has chaired the RFS working group for NBB for the past five years. “One thing that is be-coming increasingly clear to the working group is that RFS matters to biodiesel across all RIN categories—D6, D5, D4, D3,” Gebolys tells Biodiesel Magazine. “They all matter to biodiesel. A lot of people think only what’s important is D4, biomass-based diesel, but what clearly happened in 2013 is that biodiesel was really a D5, an advanced biofuel technology, more so than a biomass-based diesel technology.” Therefore, what the EPA sets for its final rule in the advanced

Kruse

Gebolys

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FEEDSTOCK

biofuel category (D5) is at least as important as what level it sets the D4 category. On the agency’s proposal to cut back D5 and hold D4 to 2013 levels, Gebolys says, “We think the legislation is pretty clear that the EPA has to come out with a 3.75-billion-gallon requirement in the D5 category—as a mat-ter of statute. We don’t believe they have the authority to do something other than 3.75 billion for advanced.” The NBB RFS work-ing group’s position is clear, he adds. “You have to do what the statute says you have to do, and for D4, you do have flexibility to set at whatever level you chose to, but it’s clear that the statute set a trajectory up. You at least have to do 1 billion gallons, but it also says it can increase year on year. We think that the minimum that EPA ought to consider setting the standard for D4 is 1.7 billion. The industry produced 1.8 billion gallons last year, so even setting it at 1.7 would be a decline from what the industry has already proven it can do.”

More importantly, however, the higher the D5 category is set, the higher the D4 category must be for EPA to address its own objectives. “EPA has made a big deal about its desire to reduce blend wall impacts,” Gebolys says. “And since there are two ways to satisfy the D5 category,

[Brazilian ethanol and biomass-based diesel] it’s important to understand that the higher they set the D4 category, the more that D5 category will be met by diesel-based technology rather than gasoline-based technol-ogy.” The more that it’s met by diesel-based technology, the less impact the D5 category will have on the blend wall concern. “So for EPA’s own purposes of reducing the pressure on the blend wall, it’s important that

Growth in US Soybean Demand

SOURCE: WAEES LLC

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FEEDSTOCK

they increase the component of the mandate that is biomass-based die-sel,” he adds.

Global PerspectiveWAEES uses a large, global partial equilibrium model with more

than 20,000 equations that looks at everything from biofuels to individ-

ual commodity markets, forming the basis for how it looks at biofuel and feedstock markets. “There’s often this perception that there’s this huge shortage of feed-stock, and that’s just simply not the case,” Kruse says. “The thing is, we find ourselves potentially in a glut of feedstock, and those feedstocks are coming from sourc-es that we didn’t traditionally necessarily think about.” Distillers corn oil (DCO) from ethanol plants and used cooking oil (UCO) from the food service industries are two of those sources.

Kruse says for DCO, his forecast looks out to 2030 when 90 to 95 percent of U.S. ethanol plants are de-oiling distillers grains. “When we get to 2022, we get about 70 percent [of DCO] going to biodiesel and 30 percent going to animal feed,” Kruse says, “but we peak at around 520 MMgy of biodiesel from distillers corn oil.” He says you can draw more into biodiesel depend-ing on what the mandates are. “It’s closely tied to that,” Kruse explains. “It’s a big jump, about four to five times where we’re at right now.” For UCO, he says data is thin

on how much there really is out in the market. “There are estimates that say there might be 50 to 70 percent more, maybe 100 per-cent more, yellow grease than what’s currently being reported,” he says. “That’s just in the U.S. Globally, that data is quite a bit harder to put your fingers on.”

Biodiesel is a small, minority subset of the overall demand for FOG,

US Biodiesel Production

SOURCE: WAEES LLC

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BIODIESEL MAGAZINE MAY | JUNE 201424

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and the U.S. is only a subset of global biodiesel demand. So to make sense of any of the feed-stock issues, global supply and that which affects supply must be taken into account: weather pat-terns and currency devaluation in Argentina; political strife in Ukraine; swine disease in the U.S.; the wildcard of China’s purchasing hab-its; and thousands of other issues around the world.

“Did we know we were going to have a drought in Brazil last year?” Gebolys asks. “No, we didn’t. Did we know we’d have a drought in the U.S. the previous year? No, we didn’t. But we get more and more information as time goes

by, and we build it into the model. Do we know what kind of yields we’re going to get year over year? No, we don’t. But we can continue to get more information and improve the model as time goes forward. That said, what we do know is that the world is generating more and more feedstock year on year. Even in the face of a 70 percent increase in biodiesel production in the U.S. last year, feedstock prices went down—not up—meaning we could put a lot more pressure on feedstock markets without causing dramatic disruptions in the market.”

Kruse says, “I always have trouble with the statement about ‘disrupting’ current markets,

because part of what the ag sector was so ex-cited about with biofuels in general was it’s a new demand source.” Like any other sector, if you ramp demand up quickly, there will be a price effect. “But what biofuels do is provide another source of demand that helps avoid the spiraling down into a situation of ever-de-clining real prices for ag products,” Kruse says. “Without growth in demand, that’s ultimately where you go.” He adds that supply has always outpaced demand growth in the ag sector.

Record US Soybean PlantingThe U.S. biodiesel industry was founded

on soybean oil, and roughly half of all feed-stock used in biodiesel production remains soy oil. Based on USDA’s Prospective Plantings report in March, U.S. farmers intend to plant a record 81.5 million acres of soybeans in 2014—up 5 million from 2013. While record planting bodes well for biodiesel feedstock prices, it’s only half of the equation. Favorable growing weather must follow suit to hit record bean production. Also, the U.S. has only so much crush capacity. One source tells Biodiesel Magazine that record U.S. bean production may affect prices, but it doesn’t mean a different supply and demand for soybean oil.

In the past 10 years, record soybean pro-duction was experienced in the 2009-’10 crop season. That was 3.359 billion bushels pro-duced. The lowest production was in the 2007-’08 crop year at 2.677 billion bushels. The high and low delta was 682 million bushels. “But in that same period, our record crush numbers in 2006-’07 were at 1.808 billion bushels,” the source says. “And our low crush numbers for the past 10 years were in 2010-’11 at 1.648 billion bushels crushed,” a difference of 160 million bushels. The soybean export numbers are figures that vary much more dramatically than crush. In 2013-’14, the current crop year, the USDA is estimating 1.58 billion bushels of soybean exports, and in the 2005-’06 crop year, exports were only 940 million bushels. This equates to a 640 million bushel difference in the past 10 years, high to low. “If we were to meet our record crush for the 2006-‘07 crop year versus this year, that means an additional 123 million bushels,” the source says. “And for bean oil production, what that means is roughly 1.3 billion pounds of oil, or 175 million gallons of biodiesel year on year.” In short, record soy-bean acreage does not mean record soybean production; and record soybean production

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MAY | JUNE 2014 BIODIESEL MAGAZINE 25

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does not correlate linearly to that much more soy oil on the domestic market due to limited crush capacity. What record U.S. soybean pro-duction means in general is higher exports.

Nowhere Near the LimitsThere’s a growing set of literature out there

that correlates commodity yields with respect to commodity prices, Kruse says, so in periods of high prices, the argument is farmers adopt more, and new, technologies. “They’re faster to try some of those things because it’s less risky, and that increases the efficiencies,” he says. “They get more yields per acre, so it’s a win-win for everyone, and all of those technology advancements ultimately benefit consumers the most because it reduces the cost they have to pay for food or whatever the ingredient is. There is a lot of empirical evidence—we have it in our models—where there is some impact back on yields when you have higher prices, and vice versa with lower prices. Certainly from the demand side, it’s been just a little frustrating for me because there’s a lot of misinformation cir-culating on how additional demand will result in this much new land use being brought into production. We’re going to have to cut the rain-forest down to do this, and all this kind of stuff, which is simply not accurate.”

Gebolys says the best thing we can do to develop next-generation feedstocks like al-gae, jatropha, camelina, pennycress and other sources, is create greater demand for the exist-ing-generation feedstocks. “As long as we can continue to do that, and create expanding de-mand, I strongly believe that next-generation feedstocks will emerge.” But, he says, they cer-tainly won’t emerge in an environment in which there’s not adequate demand for first-genera-tion feedstocks such as soybean oil. “There are folks out there who want to make innovation in feedstock the enemy of our current capabilities, and that’s really foolish,” Gebolys says. “There’s a lot of talk about foregoing first-generation biofuels for next-generation biofuels, and the most certain way to kill next-generation bio-fuels is to take a pause in current-generation biofuels.” Conversely, the most certain way to advance next-generation biofuels and the feed-stocks from which they will be manufactured is to continue to grow existing-generation bio-fuels.

On any given day, feedstocks can be tight. But over the course of a year, markets basically adjust. “There is plenty of global feedstock for

this industry to continue to expand well into the future,” Gebolys says. “We’ve come nowhere close yet to hitting the far end of our capability. When we were first looking at this stuff, there were people in this industry that said there’s not enough feedstock for this industry to ever pro-duce more than 500 million gallons. And these are very knowledgeable folks.” In the latter half of 2013, however, the U.S. biodiesel industry was producing at an annualized run rate 2.4 bil-lion gallons. “That’s effectively five times what those so-called experts originally thought was the high end of what we could do,” Gebolys says. “I guess the lessons learned are that the so-

called experts don’t really fully take into account how flexible markets are in addressing expand-ing industry capabilities. If we demand feed-stock, feedstock will be there for us to continue to produce biodiesel at higher and higher rates for a long time. Markets have not indicated to us yet that we are anywhere close to reaching those limits.”

Author: Ron KotrbaEditor, Biodiesel Magazine

[email protected]

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BIODIESEL MAGAZINE MAY | JUNE 201426

CO-LOCATION

BIODIESEL TRANSPORT: It won’t be long before the 120 MMgy Patriot Renewable Fuels’ ethanol plant will be shipping millions of gallons of biodiesel from its multirenewable fuel facility in Annawan, Ill.

PHOTO: PATRIOT RENEWABLE FUELS LLC

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MAY | JUNE 2014 BIODIESEL MAGAZINE 27

After years of talk, co-location of biodiesel production at ethanol plants is fi nally being realized BY RON KOTRBA

CO-LOCATION

Time Has Come Today

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BIODIESEL MAGAZINE MAY | JUNE 201428

CO-LOCATION

The synergies between co-lo-cated ethanol and biodiesel pro-duction have been discussed for a decade. The existing infrastructure to share process essentials, an in-house feedstock in dis-tillers corn oil (DCO), and use of ethanol rather than methanol for biodiesel reactions are the more obvious benefits. Biodiesel technology providers want contracts in this highly sought-after market. For ethanol producers, the attrac-tion is added value through biodiesel rather than crude corn oil sales, and D4 RIN generation.

But it’s also about diversification and fulfilling the renewable fuel standard’s (RFS) vision.

“Over the past several years, biodiesel mar-gins have been really strong,” says Ray Baker, general manager for Adkins Energy LLC, a 50 MMgy ethanol refinery in Lena, Ill. Adkins En-ergy announced last fall that it has contracted with WB Services to install a 2 MMgy biodiesel facility on-site with help from a $500,000 grant from USDA’s Rural Energy for America Pro-gram. “But one of the reasons I think we really like the project and the idea behind it,” Baker says, “is that we are already producing a conven-tional biofuel—corn-based ethanol—and we’ll

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20now be producing an advanced biofuel in bio-diesel, and I know in the future we’ll have the opportunity to be producing cellulosic ethanol. So we look at all aspects of the RFS and the growth that’s really built into that, and we see those opportunities.”

In recent years, DCO has emerged as one of the fastest-growing biodiesel feedstocks, and the technologies to effectively convert DCO to biodiesel have been improving. “I think once they got to that point, that helped the technol-ogy evolve and the idea behind it become more economical to install into a plant,” he says. “Before, the size of biodiesel plants was much larger, and now I think bolting them onto etha-nol technologies on a smaller scale has become economical.”

Ron Beemiller, president and CEO of WB Services, says, “From my perspective, the reason this idea of integrating was never fully realized is, nobody ever had a real clear under-standing of both processes enough to do the integration properly.” WB Services has more than 10 years’ experience in the ethanol sector. “We’ve been working on [the co-location con-cept] now for two or three years,” he says, “and it’s not only the biodiesel technology itself through our commercialization efforts with Novozymes, but also through the utilization components with how we can best utilize the infrastructure that exists to maximize return for the plant.”

WB Services is installing both a traditional acid esterification/base transesterification sys-tem at Adkins, as well as an enzymatic pro-cess—newer technology in the biodiesel space pioneered by Piedmont Biofuels several years ago, now running in facilities such as Blue Sun’s St. Joseph, Mo., plant and Viesel Fuel in Stuart, Fla. Pearland, Texas-based Biodiesel Experts International also manufactures enzymatic biodiesel skids.

“Per batch, it can run either way,” Beemil-ler says. “We intend to run enzymatic.” DCO traditionally runs between 10 and 15 percent free fatty acids (FFA), but Beemiller says he can offer performance guarantees far above that with the enzymatic technology. Rather than using what would traditionally be Novozymes’ approach, WB Services “kind of took it from a different perspective,” Beemiller says. “We ba-sically use the enzyme as a pretreatment step to lower the FFA or to convert all the way to bio-diesel, and then we do a few other steps as well, whether that’s an additional reaction along with

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CO-LOCATION

additional polishing, and a few other things. It’s not the way that the Blue Suns of the world are doing it. We took a slightly different approach.”

WB Services has a patent pending on the integration aspects with co-location of biodies-el production at ethanol facilities. “We try to minimize the amount of outside components that need to be brought in while we maximize the use of the existing infrastructure,” Beemi-ller says. “Whether it’s bringing products from the ethanol plant to the biodiesel facility to utilize steam or energy, or whether it’s sending coproducts that are made or consumed within the biodiesel process, and sending them back through the ethanol plant. We’ve spent a con-siderable amount of time trying to maximize the use of the infrastructure that exists today.”

Baker says the option to distill biodiesel was necessary, and only added 5 to 6 percent of the entire plant cost. “For our market here in Illinois, which we’re excited to be a part of, there’s quite a bit of production, and distilla-tion is the preferred product,” he says. “We want to be able to put the best product into that market.” Illinois is a very biodiesel-friendly state. Any biodiesel blended into on-road diesel fuel above 10 percent is exempt from sales tax, making B11 the blend of choice.

Beemiller explains the advantage of using ethanol for the reaction. “The combination of ethanol availability coupled with the ability to blend recovered ethanol back into the plant in-stead of putting in all the capital equipment to collect and clean it is one of the components that we worked on,” he says.

In designing the plant, WB Services worked to use much of the same equipment, such as valves and pumps, as is used in the ethanol plant. The interchangeability is an as-set. “For instance, Sulzer pumps are used because that’s what’s in the ethanol plant,” Beemiller says. “That way they can utilize the spare parts from one to the other.” The agi-tators are ProQuip Inc., just like the ethanol plant. A Flottweg centrifuge will also be uti-lized. Apache Stainless Equipment Corp. and A&B Process Systems Corp. provided tanks and vessels for the project. “Really all of the instrumentation, the DCS, all the major equip-ment, it was all spec’d out to match what exists in the ethanol plant,” Beemiller says.

Construction is underway but the harsh winter has delayed anticipated commissioning until second quarter.

Patriot Fuels, Biodiesel LLCLess than two hours south from Lena is

Annawan, Ill., where Jatrodiesel Inc.’s first com-mercial supercritical biodiesel plant, a 5 MMgy facility, is being installed at the 120 MMgy Pa-triot Renewable Fuels LLC ethanol refinery. “Jatrodiesel is a small company, but they have vast experience building smaller biodiesel plants that convert the harder-to-process feedstocks,” says Rick Vondra, vice president and general manager of PRF. “For the scale and scope of what we wanted to do, it looked like a pretty good fit. Corn oil is not the easiest to convert.” Vondra says permits are not yet in hand, but he

expects to have them soon. “We had an offi-cial groundbreaking although we haven’t started construction yet,” he says. “Hopefully we’ll get that completed in a few weeks, and start put-ting some steel in the ground.” While the EPA’s 2014 RFS proposal to stall biomass-based diesel at 1.28 billion gallons and reduce the ethanol RVO, in addition to the lapse of an important $1-per-gallon biodiesel tax credit, are on every-one’s minds in the biofuel sectors, Vondra says he’s convinced the project is viable even without a tax credit.

“We generally see a lot of business advan-tages when a biodiesel plant is vertically inte-

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BIODIESEL MAGAZINE MAY | JUNE 201430

grated into an existing feedstock-producing plant,” says Raj Mosali, president of Jatro-diesel. In a traditional process, acid esterifica-tion is employed to convert FFA to biodiesel, and base transesterification using a catalyst such as sodium methylate converts triglycer-ides into biodiesel. “In the Super process, we eliminated the use of catalyst—acid or base, or an enzyme—altogether,” Mosali says. “In a nutshell, we send a mixture of methanol and oil and out comes the biodiesel and glycerin. The advantages are savings in catalyst costs, simplicity of the process, true multifeedstock capability, up to 100 percent FFA capability and high-quality glycerin.”

While the Super process requires more energy than traditional approaches, Mosali says if you do a normalized comparison be-tween traditional and Super, between 12 and 18 percent savings overall are achieved, con-sidering utilities, chemicals, operational ex-penses and more. “And if you consider soft costs such as training the operators, the sav-ings are higher,” he says.

The Illinois Department of Commerce and Economic Opportunity New Generation Biofuels Production Program is providing funding and development assistance for the ethanol plant’s new subsidiary, Patriot Fuels, Biodiesel LLC. The estimated cost, according to Vondra, is more than $10 million.

CPT’s MarketFlexAnother option available to ethanol pro-

ducers is Cereal Process Technologies LLC’s MarketFlex, a capital-intense system of dry fractionation that separates the corn upfront to get higher quality oil, and much more of it, along with a traditional biodiesel process. “I think it’s strictly a matter of how much money they want to make,” says Pete Moss, president of CPT, on why ethanol producers might choose this route. “A lot of the emphasis in the past has been on the value of ethanol, but now the focus is edging more toward oil.”

Moss says while many backend extrac-tion technologies yield half a pound of oil per bushel (OPB), dry fracking could yield up to 1.4 pounds OPB on the frontend, plus an ad-ditional quarter pound on the back. More oil could simply equate to more profit and bet-ter economies of scale, allowing a larger bio-diesel production facility on-site. He says the spread between higher value edible corn oil and DCO has narrowed significantly. DCO is approximately 33 cents per pound with up to

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SOURCE: CEREAL PROCESS TECHNOLOGIES LLC

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MAY | JUNE 2014 BIODIESEL MAGAZINE 31

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15 percent FFA while crude corn oil with less than 4 percent FFA sells for about 42 cents. Moss says he is working to develop a pathway with the U.S. EPA so biodiesel produced from oil from dry fracking can generate valuable D4 RINs. “You had what used to be a much low-er value inedible oil that can generate a more valuable RIN, versus a higher value edible oil that would not generate a RIN,” Moss says. “Now the spreads have narrowed so the dif-ferential between those two feedstocks is quite a bit closer than what it used to be. And a key factor is getting the new pathway to be able to generate the D4 RIN.”

For a 100 MMgy ethanol plant process-ing 36 million bushels a year, the estimated capital costs, according to Moss, are $28 mil-lion for fractionation, $10 million for solvent extraction, and $15 million for a 10 MMgy biodiesel facility, totaling $53 million. A same-sized plant just selling DCO would generate $37 million in earnings before interest, taxes, depreciation and amortization (EBITDA), whereas a plant with fractionation plus solvent extraction and biodiesel production EBITDA would be $65 million, according to Moss, meaning an annual improvement $28 million.

Author: Ron Kotrba

Editor, Biodiesel Magazine218-745-8347

[email protected]

CO-LOCATION

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BIODIESEL MAGAZINE MAY | JUNE 201432

The question of what oil pretreatment meth-od is the best is an ongoing conversation among biodiesel producers and engineers. Most low-grade feed oils contain high levels of free fatty acids (FFA), which can cause soap formation in traditional biodiesel processes. Several different pretreatment methods are used commercially to assimi-late or remove FFA: acid esterifi cation, vacuum steam stripping,

caustic washing and glycerolysis; we consider enzymatics to be at the precommercial stage. The most prevalent pretreatment meth-od has traditionally been acid esterifi cation, since it can be done at relatively low process temperatures. The goal of acid esterifi ca-tion is the direct conversion of FFA into methyl esters (biodiesel) using sulfuric acid as a catalyst, with an excess of methanol. Dur-ing acid esterifi cation, each mole of fatty acid converted to methyl esters produces one mole of water. The resulting wet methanol

PRETREATMENT

The Chemical Kinetics of GlycerolysisGlycerolysis on high-FFA, low-grade feedstock at varying temperatures will result in the same end product, but higher heat will triple throughput BY ERIK ANDERSON

CONTRIBUTION

LAB ANALYSIS: Chris Sorensen with Superior Process Technologies performed lab work and data analysis comparing glycerolysis at various operational temperatures. Multiple laboratory batch-wise glycerolysis reactions were performed on brown grease at 350 F and 460 F, representing steam-heated and thermal-oil-heated systems. PHOTO: SUPERIOR PROCESS TECHNOLOGIES LLC

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).

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MAY | JUNE 2014 BIODIESEL MAGAZINE 33

must then be decanted, neu-tralized and dried via fractional distillation with high refl ux rates, before it can be reused. Methanol drying columns can cost millions of dollars and are the biggest users of plant en-ergy. By not having to dry wet methanol after acid esterifi ca-tion, biodiesel plants can cut their thermal energy consump-tion in half.

Alternatively, glycerolysis reduces the amount of FFA in low-grade oils without use of acid or methanol, and enables them to be converted into fi nal product, rather than removing them and reducing product yield. The resulting glycerides formed during glycerolysis are then converted directly to bio-diesel via base-catalyzed trans-esterifi cation. Also, glycerolysis is done at high enough tem-peratures to completely dry the feed oil before the transesteri-fi cation process, thus avoiding the formation of excess soaps and the decanting problems that can result.

Over the past decade, glyc-erolysis has continued to grow in popularity among those com-panies successful in the indus-try. For example, recent articles in several industry periodicals have noted that some biodiesel producers have been using glyc-erolysis successfully for several years (e.g., Renewable Energy Group’s Seneca, Ill., plant).

The rate of the glycerolysis reaction is determined by two variables: the initial concentra-tion of FFA and temperature. Many biodiesel plants run their processes using steam heating systems, and are limited to operating temperatures of 350 degrees Fahrenheit or less. Although glycerolysis can be run at these lower

temperatures, reaction kinetics are vastly improved when run at temperatures at or above 450 F. However, operating temperatures approaching 500 F are not recommended due to possible glycerin decomposition, forming acrolein.

ALTERNATIVE APPROACH: Glycerolysis involves recycling glycerin to the front of the biodiesel process, where it is reacted with free fatty acids to make fatty acid methyl esters. It is one alternative to acid esterifi cation. PHOTO: SUPERIOR PROCESS TECHNOLOGIES LLC

Figure 1 – Comparing Glycerolysis Rates of Reaction: %FFA vs. Time at 350 F and 460 F

PRETREATMENT

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

1:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00Reaction Time (hrs)

% FFA A -- 460600 F vs 350500 F Initial FFAA-AA-50%, ~43% post glycerin charge

460F

350F

.

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Some biodiesel producers may not be familiar or comfortable with high-temper-ature processes, and therefore tend to shy away from the use of thermal oil heating systems needed for glycerolysis operat-ing temperatures. This concern over the use of hot oil systems is due to a lack of industrial experience, particularly with oleochemicals.

Another benefi t from glycerolysis is its simplicity. The only reagent needed for successful glycerolysis is glycerin, the byproduct of transesterifi cation. In plants using glycerolysis, the glycerin produced during transesterifi cation can be recycled back into the process, and the excess glyc-erin can be refi ned for sale as a valuable byproduct.

Research at Superior Process Tech-nologies was done to compare glyceroly-sis at various operational temperatures. Multiple laboratory batch-wise glyceroly-sis reactions were performed on brown grease at 350 F and 460 F, representing steam-heated and thermal-oil-heated sys-tems. The lab work and data analysis was performed by Chris Sorensen with SPT. Samples were taken over the course of the reaction and run on a Gas Chromato-graph-Flame Ionization Detector to de-termine compositional makeup versus re-action time. The initial brown grease was determined to have an acid number of 100 (with 50 percent FFA) via wet chem-istry titration prior to glycerolysis. Each batch was brought up to their respective temperatures under inert conditions using a nitrogen purge before charging glycerin. Eight batches were run in total at varying temperatures and FFA concentrations. By graphing the average acid numbers versus time of each reaction, the difference in the rate of FFA reduction can be seen in Figure 1.

At 460 F, the FFA concentration is lowered rapidly in the fi rst hour, and well below 1 percent FFA within several hours. In comparison, the reaction at 350

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Page 35: May/June 2014 Biodiesel Magazine

PRETREATMENT

F did lower the FFA below 2 percent, but required nine hours of reaction time. Clearly, the main cause for the observed slower reaction rate is the lower reaction temperature.

Another contributing factor that may affect reaction kinetics is the system’s abil-ity to purge water out at 350 F compared to 460 F. Kirk Cobb, senior process engi-neer at SPT, points out that any residual mole fraction of water remaining in the reaction liquid may restrict the chemical kinetics at the end of the reaction. It was noted in the lab data that the 350 F batch-es could never quite reduce the remaining FFA below 1 percent, as the higher tem-perature batches were able to do. Any re-maining water shifts the steady-state equi-librium slightly towards the reactants’ side of the equation, slowing the reaction. One solution to the problem of any remaining traces of water is to place the system un-der vacuum. At negative pressures, the wa-ter will be more effectively driven out, and an increase in the system kinetics can be achieved. The drawback to this approach is that there is a fi ne line between remov-ing water and removing free glycerin, even at 350 F. Also, if vacuum leaks were to oc-cur at glycerolysis temperatures, any air in the system can cause oxidation of the oil. An alternative is to run the reactions at atmospheric pressure, but use nitrogen to purge any water vapor. In large-scale, con-tinuous glycerolysis operations, a combi-nation of heat and nitrogen purging can be used with great success.

Combining glycerin with oils contain-ing FFA, while heating, appears to result

in three primary reactions shown in Fig-ure 2.

The reaction of FFA and glycerin to form monoglycerides and water is initially the primary reaction (R1) during glycer-olysis; this reaction is responsible for the majority of FFA reduction. A secondary reaction (R2) between glycerin and triglyc-erides forms mono- and diglycerides; one mole of triglyceride will react with one mole of free glycerin to form one mole each of mono- and diglyceride. A third reaction (R3) is the combination of FFA

with monoglycerides to form diglycerides and water; this reaction may become dom-inant later in the system as monoglyceride concentrations increase, and free glycerin concentration diminishes with time.

The oil composition for FFA, free glycerin, monoglycerides, diglycerides and triglycerides was determined using GC-FID. This data was analyzed to determine the rate constant, K, for each of these three competing reactions, as shown in Figure 3.

The “rate constant” is a number that quantifi es the speed of the reaction and is dependent only on temperature. The larger the K value, the faster that reaction. The actual laboratory data was modeled

R1: Fatty Acid + Glycerin ----> Monoglyceride + Water

R2: Triglyceride + Glycerin ----> Diglyceride + Monoglyceride

R3: Fatty Acid + Monoglyceride ----> Diglyceride + WaterFigure 2 – The three primary reactions modeled for glycerolysis

Figure 3 – “K” values for competing Glycerolysis Reactions at 350 and 460 F

350ºF 460ºF

K1 = 0.291 K1 = 1.566

K2 = 0.163 K2 = 0.220

K3 = 0.333 K3 = 1.475

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BIODIESEL MAGAZINE MAY | JUNE 201436

mathematically to determine the K values shown in Figure 3. Al-though the K value in each case is only a function of temperature, the total rate of reaction for each of these reactions is also de-pendent on the concentration of the reactants. Early in the batch reaction when FFA and free glycerin are relatively high, the R1 and R2 reactions will dominate; but as monoglyceride concentra-tions increase over time, the R3 reaction may begin to dominate the fi nal consumption of FFA. All three of these reactions occur during high-temperature glycerolysis at different rates, and reach different states of equilibrium. Figure 3 shows how the K values for glycerolysis at 350 F were signifi cantly lower than the K values at 460 F.

One point of interest in Figure 3 is that, at 460 F, the rate constant of Reaction R3 (K=1.47) is almost as high as Reaction R1 (K=1.56). A possible explanation for the similar reaction rates observed is that monoglycerides, like free glycerin, have readily available alcohol groups that can react with FFA, with minimal steric hindrance. The results suggest that FFA does not discern much of a difference between bonding with glycerin or mono-glycerides.

The K values for each of the reactions were determined us-ing the compositional data at 350 F (Figure 4) and 460 F (Figure 5). Glycerolysis at 460 F reaches an equilibrium state within one to two hours, while the reaction at 350 F (steam temperatures) continues well beyond fi ve hours. At 350 F, the composition of the oil follows the same trends as glycerolysis at 460 F, just at a slower rate. After a long enough timeline, both batch reactions might eventually produce the same results. The benefi t of the higher-temperature glycerolysis becomes apparent when design-ing a full-scale biodiesel plant. In order to be able to transfer this process data from a batch system to a large-scale continuous system, understanding and accounting for the different reaction kinetics is essential. By increasing the rate of the reaction at the higher operating temperature, biodiesel manufacturers would be able to convert larger volumes of high-FFA oils to biodiesel at less expense.

Whether glycerolysis is performed at 350 or 460 F, the end products are essentially the same. Both contain high mole frac-tions of mono- and diglycerides along with lowered levels of FFA, and some remaining triglycerides and free glycerin. Glyc-

PRETREATMENT

SCALE-UP LESSON: Superior Process Technologies' analysis of glycerolysis at varying temperatures shows that the benefi ts of higher-temperature processing becomes apparent when designing a full-scale plant. PHOTO: SUPERIOR PROCESS TECHNOLOGIES LLC

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MAY | JUNE 2014 BIODIESEL MAGAZINE 37

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erolysis at the high temperature has the added benefi t of lower-ing FFA concentrations signifi cantly faster. When scaled up to a continuous system, running glycerolysis at 460 F instead of 350 F will result in at least three times the amount of throughput, while producing an almost completely dry product. The end result is dry, glyceride-rich oil with FFA content below 1 percent. This study was conducted using very low-grade brown grease in order to be conservative on promoting the advantages of glycerolysis. In reality, this process works equally well when using a source of oil like yellow grease, with FFA levels ranging from 5 to 15 percent, although any level of FFA can be glycerized successfully.

The “chemical kinetics” results of this laboratory batch study have been successfully used to scale up the glycerolysis process to a continuous, industrial design. Readers of this article, who are interested in taking advantage of the glycerolysis process for biodiesel feed oil pretreatment, are encouraged to contact us.

Author: Erik AndersonLaboratory Manager, Superior Process Technologies

612-378-0800 [email protected]

PRETREATMENT

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1:00 2:00 3:00 4:00 5:00Reaction Time (hrs)

Oil Composition vs.Time e -- at 35050o0o F

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Oil Composition vs.Time e -- at 46060o0o F

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Figure 4 – Glycerolysis system components vs. time, at 350 F

Figure 5 - Glycerolysis system components vs. time, at 460 F

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