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|  | 2nd Annual National Biodiesel Conference a Showcase of Success |  |
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The 2nd Annual National Biodiesel Conference and Expo welcomed over 1000 guests to Ft. Lauderdale Jan. 31-Feb. 2, to seminars and biodiesel networking. The conference also featured a full trade show, which had doubled in size from the 2004 conference, to give attendees the opportunity to learn about the latest products, services and advances in the field.
Conference sessions and activities, held at the Broward County Convention Center and Marina Marriott, focused on new, cleaner diesel technology mandated by the Environmental Protection Agency (EPA), but the conference also included a variety of technical, marketing, regulatory and user topics of interest to the likes of distributors, marketers, consumers, technology providers and feedstock managers. Feasibility and investment, oil company acceptance, cold flow, state and federal legislation, and an all-star user panel were just a small sampling of conference topics.
Special conference events included:
Representatives from the IRS on hand presented new forms pertaining to the tax credit, explained how the program will work and answered questions. An appearance by Pete Bethune, former oil exploration engineer, who will lead the EarthRace expedition. The biodiesel powered wave piercing vessel intends to set a new record circumnavigating the globe. A Ride-and-Drive of the much anticipated DaimlerChrysler Jeep Liberty CRD (diesel). Every new CRD off the production line will have a B5 (five percent biodiesel) factory fill. The University of Idaho hosted a workshop for school districts interested in using biodiesel in school buses to reduce kids’ exposure to fumes. NBB hosted a free workshop for local boaters with the support of the South Florida Regional Planning Council, Coastal Fuels Marketing and the Gold Coast Clean Cities Coalition. This demonstrated increased availability of biodiesel in South Florida, as well as the marine benefits of the fuel.
Generous sponsorships made the conference larger and more inviting to attendees, from (as of January 28) The Department of Energy, National Renewable Energy Laboratory; West Central and Renewable Energy Group; World Energy Alternatives; GATX Rail; IFQC Biofuels; John Deere; U.S. Department of Agriculture (USDA) Agricultural Research Service; USDA Biodiesel Fuel Education Program; Ag Energy Work Group; Ag Environmental; BiofuelsMarketplace.com; Dallas Group; Fitzsimmons; M&W Contractors, Inc.; MARC-IV Consulting, Inc. and Schaeffer Manufacturing Co.
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| | John Deere’s Diesel Propelled Products to be Fueled with B2 | |
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John Deere announced Feb. 1 that it plans to use B2, a blend of two percent biodiesel fuel, as the preferred factory-fill in all its diesel propelled machines made in the United States. John Deere representatives shared the announcement with more than 1,000 biodiesel enthusiasts from across the country gathered for the 2005 National Biodiesel Conference & Expo.
“This a big step forward in confirming our commitment for the use of biodiesel fuel,” says Don Borgman, manager market planning and customer integration, John Deere Ag Marketing Center. “Our manufacturing plants in the U.S. will use B2 biodiesel for fueling tractors, combines, self-propelled sprayers, and other diesel powered machines.”
“Working with the National Biodiesel Board (NBB), we are promoting the use of B2 fuel because it is readily available and meets the high quality fuel standards that we have set for our engines, and it is a positive step toward adoption of renewable fuels,” says Borgman. “If B2 were used in all diesel engines in the U.S., the United States could displace the equivalent of about 1 billion gallons of foreign oil per year. That could, in turn, translate to some very significant increases in the demand for crops from which biodiesel is made, like soybeans and other natural fats and oils grown right here in the United States.”
John Deere plans to transition the B2 biodiesel fuel into its U.S. plants before the end of 2005. The John Deere tractor assembly plant, Waterloo Works, in Waterloo, IA and its combine manufacturing plant, Harvester Works, in East Moline, IL will be the first to begin using the B2 fuel with implementation by March 1, 2005. John Deere also plans to publicize its fuel specs and actively encourage its customers to continue to use the B2 formula in their own operations as well.
“John Deere is an international leader in agriculture and technology. For John Deere to embrace biodiesel in this way is a powerful step that will help raise awareness and increase use of biodiesel,” said Joe Jobe, executive director of NBB. “This decision is a demonstration of John Deere’s commitment to improving America’s energy situation, environmental impact, and economic growth through renewable agricultural fuels like biodiesel.”
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| | Biodiesel Awards Recognize Neil Young, Industry Leaders | |
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The second annual “Eye on Biodiesel” awards ceremony honored those who significantly advanced the board’s mission of public education and industry growth in the last year, at the 2005 Biodiesel Conference & Expo.
The award categories and winners are: Innovation – DaimlerChrysler. DaimlerChrysler has taken the important initiative of fueling its new diesel Jeep Liberty (CRD) with a B5 biodiesel blend at the Jeep factory. filling them up with the blended fuel at the factory. DaimlerChrysler is the first automaker to factory fill with a biodiesel blend.
Impact – American Soybean Association (ASA). The ASA is a membership-driven, grassroots policy organization that represents U.S. soybean farmers, and a top priority is educating and training producers to represent U.S. agriculture in Washington, D.C. and around the world, about biodiesel. ASA was instrumental in leading the campaign to pass the biodiesel tax incentive.
Inspiration – Joe Biluck, Jr. The Director of Operations and Technology at New Jersey’s Medford School District recognized the benefits of biodiesel seven years ago, when he led Medford to become the first school district to use biodiesel. Since then, he has used B20 in his fleet of 65 buses and trucks. Biluck spends his personal time educating other fleet managers about biodiesel and champions the fuel to all.
Industry Partnership – Clean Cities. The Department of Energy's (DOE) National Clean Cities Program has taken the word of biodiesel to energy decision-makers and promoted it in its network of over 80 volunteer coalitions. It is unlike any other government program in its ability to disseminate biodiesel information in local communities, increasing biodiesel use and generating publicity for the fuel. The highly driven Clean Cities staff and coordinators develop public/private partnerships to promote alternative fuels and vehicles, including biodiesel, with an overriding goal of reducing petroleum consumption in the U.S. Shelley Launey, who has provided strong leadership for the organization for almost five years, accepted the award.
Influencer – Neil Young. The legendary singer/songwriter has shown outspoken support for biodiesel and the family farm, articulately sharing his knowledge of the benefits of biodiesel with millions of Americans. Young used biodiesel during his Greenville tour and was instrumental in Farm Aid using the fuel in 2004, where he and Willie Nelson told thousands in attendance that “It's clean, it's American grown fuel, it doesn't damage anything. This is so obvious.” Young accepted the award by videotape. Last year’s Influencer award winner, actress Daryl Hannah, announced this year’s winner and introduced the video in person at the conference.
NBB also presented Rep. Marcy Kaptur (D-OH), with the National Energy Leadership Award for her commitment to renewable energy and domestic energy security. Rep. Kaptur played a key role in opening doors that have led to the increased use of biodiesel, including her support of DaimlerChrysler’s decision to factory fill every new 2005 Jeep® Liberty Common Rail Diesel (CRD) B5.
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| | Washington Update | |
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The 109th Congress Begins
Last week the 109th Congress began with swearing in of new members, the passage of organization resolution and new committee assignments. The new Congress will feature many high profile issues such as Social Security reform, budget battles, and foreign policy issues, but one other issue that will be front and center will be the formation of a new energy bill. This energy bill will feature a renewable fuels standard (RFS) and likely a tax title where the biodiesel industry may look to see the extension of the biodiesel tax incentive beyond 2006. The Congress will also likely set forward a new transportation bill, and other legislation that will boost the usage of biodiesel in the marketplace. It is expected that early this year hearings will begin to look forward to reauthorizing the farm bill. The farm bill includes many key biodiesel provisions in the energy title including the CCC Bioenergy Program, and the Biodiesel Education program.
Renewable Fuel Standard Quickly Becoming Congressional Topic
Of significant note is also the Renewable Fuel Standard (RFS) legislation, which would most likely be introduced in an energy bill. It has been drawn a lot of attention and discussion on Capitol Hill already in this session. The RFS would refer mostly to ethanol.
NBB, ASA Discuss Biodiesel Tax Incentive Regulations With Treasury, IRS
On January 13, American Soybean Association (ASA) Washington staff participated in a meeting with John Parcell from the U.S. Treasury Department's Office of Tax Policy and Frank Boland and Susan Athey from the Internal Revenue Service (IRS) Chief Counsel regarding regulations for the biodiesel tax incentive. One issue attracting much attention is the treatment of the activity, or transactions, taking place between the biodiesel producer and the ultimate blender (i.e., "intermediaries"). Another issue that has been on the top of the list is the treatment of home heating, feedstocks, B100, and kerosene. At the meeting, the Treasury indicated it wants the biodiesel industry to submit specific written comments by February 14. NBB will be developing comments and encourages all biodiesel stakeholders to submit comments as well. The ASA and National Biodiesel Board (NBB) will continue to work with Treasury and the IRS to make sure the regulations for the biodiesel tax incentive run smoothly.
NBB has released an industry Issue Brief on the tax credit. This document is aimed at clarifying several basic issues related to the tax credit. Click here to view document.
Biodiesel Producers Included in Bill To Expand Ethanol Tax Credit
With the beginning of the 109th Congress, Representative Steve King (R-IA) introduced legislation expanding the small ethanol producer tax credit to biodiesel producers. The bill would give more small ethanol producers in the US a tax credit and expand the tax credit to biodiesel producers. "Extending the tax credit to biodiesel producers boosts biodiesel production," King said. "This advances our rural economies and our nation's energy security." ASA's Washington office reports that this is an important piece of legislation that underscores the need for biodiesel expansion nationally, while complementing the federal biodiesel tax incentive passed just a couple months ago.
Preferred Procurement for Biobased Products Rule Finalized
NBB Applauds Finalization of Preferred Procurement for Biobased Products, and ASA applauds the United States Department of Agriculture (USDA) for publication of a final rule to implement a program of preferred procurement of biobased products by federal agencies. This final rule establishes provisions for the Federal Biobased Products Preferred Procurement Program, which requires all federal agencies to preferentially purchase biobased products, like biodiesel, that have been designated by USDA as eligible under this program.
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| | 2005 Biodiesel Technical Workshop Summary | |
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The 2005 Biodiesel Technical Workshop drew over 70 experts on biodiesel and vehicles, such as scientists and engineers, to Chicago January 12-13 to discuss the growth of the biodiesel industry. Developments at this National Biodiesel Board (NBB), National Renewable Energy Laboratory (NREL), United Soybean Board (USB) and United States Dept. of Agriculture (USDA) annual meeting centered on feedstocks and production technology, handling, emissions, engine compatibility & testing, field experience, American Society of Testing and Materials (ASTM) specifications & test methods, biodiesel and biodiesel blend stability, and industry research priorities.
Joe Jobe, executive director of NBB, provided a kick-off industry brief. Speakers and topics included Bob McCormick, U.S. Dept. of Energy NREL, advances in research; Steve Howell, MARC-IV Consulting, technical overview; Don Erbach, USDA Agricultural Research Service (ARS); Mike Haas and Tom Foglia, USDA ARS Eastern Regional Research Center (ERRC), production from oil-bearing materials and production costs; Paul Nazzaro, Alternative Fuel Solutions, bioheat; Steve Blashka, Lubrizol, diesel lubricity; Paul Hinkle, ASI Engineering, Cold Flow Consortium update; David Forester, Power Service Products, additives; Melissa Hess, USDA ARS ERRC, antioxidants to reduce NOx; A.S. Cheng, San Francisco State University; Greg Rideout, Environment Canada, emissions; Rodica Baranescu, Int’l Truck & Engine Corp., future emissions standards; Harold Martin, Fleetguard, thermal stability and filtration; Dan Humburg, South Dakota State University, state departments of transportation; Al Kuehn, ASG Renaissance, B20 Fleet Evaluation Team; Robb Barnitt, NREL, NREL fleet; Rod Lawrence, Magellan Midstream Partners, B100 and B20 fuel surveys; Stuart Porter, Suncor Energy Products, simulated distillation; Leo Stavinoha, Stavinoha Enterprises, stability and analytical method; Howard Fang, Cummins; Joerg Ullman, Bosch; and ultra low sulfur diesel.
A few specific highlights included studies showing exhaust emissions that were cut by up to 25 percent, and new studies that will be done on fish oil from Canada entities.
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| | World Energy and Dow Chemical Sign Biodiesel Production Agreement | |
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World Energy and Dow Haltermann Custom Processing (DHCP) have joined into a production agreement that should enhance World Energy’s Biodiesel production and distribution capabilities and DHCP’s - a Dow business unit comprised of operations within The Dow Chemical Co. and Johann Haltermann, Ltd. -… DHCP will produce biodiesel at its Houston location exclusively for World Energy in North America, sourcing the raw materials and production to World Energy’s specifications.
“We are very enthusiastic about our collaboration with Dow,” said Gene Gebolys, founder and president of World Energy. “Dow’s global reputation for manufacturing excellence coupled with our rigorous attention to high-quality biodiesel production results in a win for both companies, as well as for consumers and the environment,” he said.
“Manufacturing Biodiesel for World Energy is yet another example of how Dow is using its capabilities to reduce greenhouse gas emissions and improve energy efficiency through a variety of means, including the advancement of alternative forms of energy, ranging from fuel cell technology to renewable feedstocks,” said Simon Upfill-Brown, general manager of Dow Haltermann Custom Processing. “We are, therefore, pleased to leverage the operations expertise of our custom processing division to provide World Energ with the world-class production necessary to enable the continued growth of the biodiesel market,” he said.
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| | Governors Support Growth of States’ Biodiesel Industries, Renewable Fuels Use | |
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On January 5, New York Governor George Pataki pledged support of renewable fuels, including biodiesel, in his State of the State address given to state legislators. “Last year, I announced that we were going to make New York State a leader in promoting renewable biofuels,” he said. “At Clarkson University, they’re already building refineries to make biodiesel from agricultural products.”
"I support full funding for the biodiesel and ethanol incentive funds, which will help position Missouri as a national leader in the fast-growing renewable fuels industry," said Missouri Governor Matt Blunt in his State of the State address January 26. "This action will create new jobs in rural Missouri and lead to improved air quality for every Missourian."
The National Biodiesel Board (NBB) praises Pataki and Blunt for showing their support for cleaner air for their states, support to soybean and corn farmers in New York and Missouri, and greater dependence from foreign oil.
Governor Pataki went on to say, “In order to assist this growing industry and farmers across New York State, I will sign an Executive Order requiring our state agencies to begin phasing in the use of biofuels to heat our state buildings and power our trucks,” he said.
The renewable initiatives proposed by Governor Pataki are consistent with the objectives of New York State's Renewable Portfolio Standard which sets a target of 25 percent renewable energy by 2012, according to industry officials. Members of the governor's staff are working on the details of the executive order and hope to begin initial implementation within a period of months.
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| | ALCOA Switches 550 Vehicles to Biodiesel | |
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The world's largest aluminum-can recycling facility is now a leader in biodiesel consumption in East Tennessee.
On November 1st, the Alcoa, Tenn., branch of the Aluminum Company of America (ALCOA) switched 550 of its diesel-powered commercial vehicles and industrial equipment to the alternative fuel biodiesel as a B20 blend (20 percent biodiesel and 80 percent petroleum diesel).
A team of five ALCOA employees spent over six months identifying B20 as its alternative fuel blend of choice. “The first things that we had to review were the availability of the fuels and the potential to use the fuel in the vehicles we had, and also to determine whether or not there would be warranty issues,” Craig West, one of the project planners, said. Currently, the only three vehicles that are not running on biodiesel are three locomotives scheduled for upgrade.
West cited employee well-being as a major motivation for the project. “We have a lot of vehicles and machinery operating inside the plants. We want that air to be as clean as possible.” Biodiesel use as a B20 blend reduces basically all major pollutants by about 10-20%. The larger reductions are seen in sulfur compounds, particulates, air toxics, and cancer-causing compounds.
West said that economically, the switch has been an invisible one for the company. Where expenditures are concerned, he said that the company is breaking even.
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| | Upcoming Events | |
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- Clean Heavy-Duty Vehicles Conference 2005: Linking Energy Efficiency, Emissions and National Security
February 22-24, 2005
La Quinta Resort & Club, La Quinta, CA
www.calstart.org
- Power Gen Renewable Energy
March 1-3
Las Vegas, Nevada
http://pgre05.events.pennnet.com
- 6th Annual Environmentally Preferable and Recycled Products Trade Show
April 6-7
Ontario Convention Center
Ontario, California
www.ciwmb.ca.gov/BuyRecycled/Events/TradeShow/
- 27th Symposium on Biotechnology for Fuels and Chemicals
May 1-4, 2005, (Call for papers due Nov 30)
Denver, CO
www.eere.energy.gov/biomass/biotech_symposium
- Solar Energy International Biodiesel Workshop
June 27-July 1
Boulder, CO
www.solarenergy.org/workshops/workshop.php?id=18
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