California Biodiesel & Renewable Diesel Conference

Pacific Biomass Conference logo 

Presented by the California Biodiesel Alliance and Biodiesel Magazine

 

Co-located with the Pacific West Biomass Conference and Trade Show

San Francisco Marriott Marquis

January 16, 2012

 

Details posted on our Home page as they become available.

 

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California Biodiesel Alliance News

California's Biodiesel Industry Trade Association  

September 2011 

In This Issue
CBA AND NBB MEET WITH ARB TO DISCUSS NOX AND LCFS
CBA WELCOMES NEW MEMBERS
CALIFORNIA POLICY ISSUE UPDATES
WHO'S WHO IN CALIFORNIA BIODIESEL: Russell Teall, BIODICO

Greetings!,

 

This month we are very proud to welcome new member companies Peoples Fuel, Whole Energy, and Promethean Biofuels, which brings Promethean Chairman and Managing Principal, Todd Hill, to CBA's board of directors.  

 

We look forward to CBA's fast growing membership having the opportunity to convene at our first annual Biodiesel and Renewable Diesel Conference this January 16th in San Francisco (check our Home page for details).

 

This month's section on California policy updates is packed with important information as is the Who's Who article on Russ Teall, which details the history and technology behind the development of his company's latest production plant, due to come online in the next 6 months.

 

   

To view back issues of this newsletter and CBA Email Alerts click on the "View CBA Email Newsletter Archive" button on our Home page.  

 

CBA AND NBB MEET WITH ARB TO DISCUSS NOX AND LCFS

Vials of Biodiesel  

 

As part of our industry's ongoing engagement with the California Air Resources Board (ARB) on the development of biodiesel emissions regulations, Eric Bowen and NBB's Director of State Governmental Affairs, Shelby Neal, met with ARB's Deputy Executive Officer, Bob Fletcher, and key ARB staff in August.     

 

The biodiesel industry's interpretation of NOx data and recommendations on California emissions regulations were presented at the meeting. There was also discussion of the potential for biodiesel to contribute to the carbon reduction goals of the Low Carbon Fuel Standard. ARB is continuing to update their guidance document on this subject, which CBA believes may come out in the near future. 

 

 

    CBA WELCOMES NEW MEMBERS

         

 

Peoples Fuel

  

Peoples Fuel is a San Francisco-based worker owned cooperative dedicated to providing sustainably sourced and locally produced ASTM certified biodiesel.

 

 

Whole Energy 

 Whole Energy provides biodiesel and alternative fuels to a growing list of satisfied customers and partners on the Pacific Coast.


Promethean Biofuels  

 

Promethean Biofuels is a cooperative organization that collects used vegetable oils, grease, and industrial food wastes to make renewable fuel, feed, and fertilizer products.

 

    

 

______  JOIN CBA AS AN INDIVIDUAL OR A SMALL BUSINESS  _____   

 

If you are reading this and are not yet a member, please join us.  CBA is now offering membership levels of $100 for individuals and $500 for small businesses with an easy online payment option. Membership benefits include:   

  • CBA's Email Newsletter with important industry updates and features about Who's Who in biodiesel in California.
  • CBA's Email Action Alerts that let you know when your help can really make a difference.
  • Your company's logo and link on our Members webpage.
  • Discounts on CBA events.  

_______   SIGN UP FOR EMAIL ALERTS  _____   

 

Anyone can sign up to get CBA's special Alert emails, which we send out when we need biodiesel stakeholders and enthusiasts to take action on important issues facing our industry. Just scroll down to the bottom of our Home page and add your email address.  

 

_______   VIEW PAST NEWSLETTERS AND EMAIL ALERTS  _____   

 

Just click on the "View CBA Email Newsletter Archive" button on our Home page.


CALIFORNIA POLICY ISSUE UPDATES

 

CALIFORNIA ENERGY COMMISSION (CEC) FUNDING

 

CEC's current funding cycle for 2010-2011 provides for $3.14 million for bulk terminal storage and blending facilities and $3.9 million for biofuels production and feasibility. The solicitation for the production funding opportunity is expected to be posted on the CEC website in September with the infrastructure solicitation to follow soon thereafter. The likely deadlines will be 45 days, so interested parties are advised to begin developing any proposal(s) before the solicitations are released based on the description detailed in CEC's 2010-2011 Investment Plan and to sign up for the ListServer in the blue box on the right side of the page at http://www.energy.ca.gov/transportation.

  

CEC's 2011-2012 Investment Plan was adopted at a September 7th business meeting. It provides $8 million for advanced diesel substitute production. The following is an excerpt from the plan: "The Energy Commission is awaiting the results of the previous fiscal years' projects before allocating additional funds to diesel substitutes infrastructure. The Energy Commission will also assess the relative need of renewable diesel for upstream fueling infrastructure." 

 

INTEGRATED ENERGY POLICY REPORT (IEPR)

 

CEC is required by Senate Bill 1389 to prepare an IEPR every two years and an update every other year that assess energy trends and issues and makes related policy recommendations. CBA will be submitting written comments in response to CEC's Transportation Energy Forecasts and Analyses for the 2011 Integrated Energy Policy Report, Draft Staff Report, by the end of the month. If you would like to send your comments for incorporation into the CBA letter, please email them to celiadubose@gmail.com by September 26th.

    

LOW CARBON FUEL STANDARD (LCFS)

 

Report on the September 14th LCFS Land Use Change Workshop:

 

California Air Resources Board (ARB) staff recently released new information regarding indirect land use change (ILUC) modeling for soy biodiesel as well as corn ethanol and sugar cane ethanol.

 

ARB released for public comment new versions of the GTAP model, work the agency contracted with Dr. Wally Tyner at Purdue University to complete.  The new GTAP model changes appear to reduce the ILUC penalties for soy biodiesel substantially.  However, ARB staff were clear during the public workshop that they intend to consider making their own changes to the model, including using different "elasticities" than were recommended by Dr. Tyner.  If such changes were made, they would have substantial impacts on the final results.  Since ARB is considering changing certain elasticities, staff did not propose a final number for regulatory purposes.  As such, it is unclear where the agency stands on ILUC for soy biodiesel.

 

ARB also released for public comment new "emission factors."  Emission factors is a term used to describe the carbon intensity of soils, forests, pastures, and other lands around the world that might be subject to land use changes.  While a comprehensive analysis of this work has not yet been completed by the biodiesel industry, it is believed that most figures are higher than those supported by the United Nations Intergovernmental Panel on Climate Change (IPCC).  To complete the project, ARB contracted with Professor Holly Gibbs from the University of Wisconsin and Dr. Richard Plevin from UC Berkeley.  Most of their work relied upon satellite imagery from various sources to help determine the carbon intensity of the world's soils, forests, and pasture lands. The National Biodiesel Board plans to submit comments on both of these issues before the October 5th deadline.  

 

Report on the LCFS Advisory Committee Meeting on August 25th & 26th:

 

CBA board members Russ Teall and Eric Bowen participated in this 2-day meeting, which included a lively debate between petroleum industry and advanced biofuel representatives on the availability of low carbon fuels to help California met LCFS goals. As part of that proceeding, Environmental Entrepreneurs (E2) presented its Advanced Biofuel Market Report, which discusses the ability of advanced biodfuels to meet those carbon intensity reduction goals. Eric Bowen was a contributing author of the E2 report.

 

UST REGULATIONS

 

California State Water Resources Control Board staffer Laura Fisher has recommended to Water Board management that new regulations for biodiesel stored in USTs be put in place immediately, well in advance of the expiration of the current regulations in June of 2012.


The intention is to replace the current variance process with a requirement that supplemental compatibility information from equipment manufacturers be submitted to local CUPAs along with the UL listing (for petroleum diesel) for UST equipment storing biodiesel.  She has expressed that she will work with NBB and CBA to ensure a smooth yet effective transition.  By the end of the year, it seems likely we could see either a public notice regarding the variance and or proposed regulations. 

 

EMISSIONS

See lead newsletter article above.

 

WHO'S WHO IN CALIFORNIA BIODIESEL  

 

   Russ Teall

   

Russell Teall  

President and Founder, BIODICO (formerly Biodiesel Industries)

 

After reading an article about Brian Peterson's biodiesel-powered boat trip around the world, attorney and environmentalist Russ Teall called the 800-number listed in the article for the newly formed National Biodiesel Board (NBB). It was 1993, and Russ wanted to find out exactly what this mystery fuel was. When NBB staff asked Russ, then President of the National Boat Owners Association, what boat owners would think about biodiesel, he recommended that they send someone down to his area, the Florida Keys, to talk with boaters and that they do a study. Two months later they called and asked him to do the study, which he did with many engines, under many conditions, and with many different kinds of boats from commercial craft to private yachts.

 

The results were irrefutable. Convinced that biodiesel was viable and superior to petroleum diesel, Russ began consulting with biodiesel companies. But Russ had a vision, and by 1995 he had formed his first biodiesel R&D company with a focus on modular production plants and something he identified early on as a key element of stability - multiple feedstocks grown sustainably without impacting food production. Since then, Russ has also been around the world with biodesel. He has developed production facilities in California, Colorado, Nevada, Texas and Australia using his own patented innovations and has conducted feedstock and production feasibility studies and cooperative research for clients in the US, India, Bolivia, Haiti, Paraguay, Mexico, Malaysia, the Philippines, Thailand, Ghana and China.

 

When Russ started out in the business, the only biodiesel production plants available for purchase were European and very expensive, so he was forced to design and build his first plant on his own. This demo unit, built in Las Vegas on Chevron property in 1998, was later expanded into a commercial plant. During these early years, Russ was fortunate to participate in the development of the ASTM provisional standard for biodiesel and the relationship of the standards to production practices, important early lessons in the critical need for timely on-site laboratory testing for fuel quality.

 

Russ had identified the Navy, the largest user of diesel fuel in the world, as his target customer and soon had the very good fortune to meet Dr. Mike Sullivan, the Head of Technology Transfer for the western US at the Federal Laboratory Consortium for Technology Transfer (FLC) at a Small Business Innovation Research (SBIR) conference in 1999. Dr. Sullivan was based in Port Hueneme, California, a short distance from Santa Barbara where Russ' family had lived previously and where his daughter, serendipitously, had decided she wanted to go to high school instead of the Florida Keys.

 

Because, as Russ describes, the Navy wasn't always as green as it is now, it took 2 1/2 years to get approval for the public private partnership arrangement known as a CRADA (Cooperative Research and Development Agreement). In 2002, the CRADA launched the project at the Naval Base at Port Hueneme with the goal of designing, developing, and implementing modular and portable biodiesel production systems capable of processing the widest possible variety of feedstocks.

 

Three years ago, when aerospace and defense leader Aerojet wanted to get involved with biofuels, they called Russ. Aerojet's addition to the CRADA allowed for the development and demonstration of ARIES (Automated Remote Real-Time Integrated Energy System) and the development of the next generation of processing capabilities. Russ immediately put Aerojet's systems control capabilities to work, first figuring out how to do the GC test (measures the level of free glycerin plus any unreacted oil or fats) in real time to avoid the problem of testers allowing the reaction to go on longer than necessary (45 minutes). New advanced sensors were able to double and triple the capacity of the plant without an increase in cost. And because 90% of transesterification happens in the first 10 minutes, ARIES was developed to allow operators to see the inflection point, add more reactant and, based on a library of data built up over 10 years, proceed using automation.  

 

Today the human-machine interface allows central command monitoring of hundreds of scalable locations with operators able to see all the key chemical and process parameters in real time. This has resulted in greater yields, quality, and personnel safety.

 

"The Navy loves ARIES," Russ says, "because the Navy wants to be omnivorous wherever they are, especially in a deployment situation with no infrastructure." He pointed out that this leads to an ideal system for local civilians living in areas with no electricity grid and is one important way to win local hearts and minds toward the goal creating the "best" wars (ones we don't have to fight). The ability of ARIES' Integrated Energy Systems to not only vertically integrated feedstock production but also to generate excess power for local communities holds great promise, especially for developing countries where Russ has done extensive work with biodiesel since 1997. After many years of genetic improvements and innovations, the latest of which includes looking at various hybrids with other plants so it can be harvested with machines, Russ' company BIODICO now maintains Jatropha curcas nurseries and orchard development programs in many countries.

 

Russ reports that BIODICO's Port Hueneme plant upgrade to 10 million gallons per year using the advanced ARIES system has all permits and approvals and is now under construction. Having done this 4 times before, he is confident that with 3 shifts working 24 hours a day, the plant will be online within 6 months. BIODICO's long-standing work with yellow grease and algae continues, thanks to a recent grant from the California Energy Commission. Under California's Low Carbon Fuel Standard (LCFS) the assumption for biodiesel is that all inputs are from fossil fuels. Russ is working to establish an even better CI (carbon index) score for the company's fuel through the use of an advanced algalculture process. This process takes the crude glycerine by-product and anaerobically digests it to produce methane and CO2, which drive micro turbines used to power the plant. The exhaust from the turbines is percolated through algae ponds, where the CO2 is absorbed.

 

Having served as Vice-Chairman of the NBB and Chairman of NBB's Legislative/Regulatory Committee, Russ currently sits on advisory panels for California's LCFS and the Office of the Chief Scientist of the CIA. As Vice-Chairman of the California Biodiesel Alliance since its inception in 2006, Russ has played a very important role in protecting and advancing the biodiesel industry in California.

 

Now California's biodiesel community has Russ to thank for what we expect will be a watershed moment for our industry, our first annual conference. His brainchild will come to fruition in San Francisco this January 16th as part of the Pacific West Biomass Conference. In his role as moderator, Russ brings an inestimable amount of knowledge and experience as one of California's most successful biodiesel pioneers whose career in the industry showcases a potent blend of business acumen and commitment to sustainability.      

 

 


Thank you for your time and efforts on behalf of biodiesel in California. We look forward to working with you!

 

 

Sincerely,

Celia DuBose for
Eric Bowen, Chairman
California Biodiesel Alliance