Bio Products Opportunity

Original post by mysustainablefuture

Original post by Nathan

Original post by Nathan

Special interests have successfully lobbied the U.S. Department of Treasury to exploit a loophole in a renewable diesel tax credit law for their own benefit.

“Certain powerful oil companies have managed to get the government to expand the definition of a separate provision that was added into the biodiesel tax credit law late in the legislative process,” said Joe Jobe, CEO of the National Biodiesel Board (NBB). “It’s our belief that this credit was developed to help a specific emerging technology, and not to further subsidize existing petroleum refineries.”

The provision in question allows fuel made from a specific process called thermal de-polymerization (TDP) to qualify for the same dollar-per-gallon incentive that was created for biodiesel produced from agricultural resources. The TDP process is a new technology to turn hazardous wastes, plastics, and food wastes like poultry offal and carcasses into a boiler fuel. Congress never had a chance to debate the provision, but it passed, along with the biodiesel tax incentive extension, in the 2005 Energy Policy Act.

Now the Internal Revenue Service (IRS) has ruled in the oil companies’ favor to expand the TDP definition to include the conventional petroleum refining process. Those companies want to add raw vegetable oils and fats at their existing oil refineries and qualify for the credit.

“This is bad energy policy, bad agricultural policy and bad fiscal policy,” Jobe said. “If Congress lets this stand, our government will be handing over U.S. taxpayer money to some of the richest companies in the world, and it will not provide many of the benefits that the biodiesel tax incentive has given back to America.” 
In early April, the U.S. Department of Treasury gave its approval to oil company
requests to expand the definition of “renewable diesel” so that the oil industry can
benefit from the $1-per-gallon tax credit. NBB is communicating to Congress and
media regarding the negative impact of this decision.

“I believe the Treasury Department got this ruling wrong. This was not our intent
when the tax credit was written. We are going to explore available legislative
options to fix this problem.”
- Rep. Kenny Hulshof (R-MO)

In addition, Senator Maria Cantwell (D-WA) said April 19 that she and other members
of Congress will work to overturn Internal Revenue Service Notice. Read the BNA
story here, http://nbb.grassroots.com/DCCapRpt/BNA_CantwellArticle/.
Also, please ask Members of Congress to co-sponsor the House and Senate bills to extend
the biodiesel tax credit. Representatives Earl Pomeroy (D-ND) and Kenny Hulshof
(R-MO), introduced the Renewable Fuels and Energy Independence Promotion Act (H.R.
196) as their first legislation in the 110th Congress, which convened on January 4.
It now has 12 co-sponsors. The legislation would make permanent the federal excise
“blender” tax credit for biodiesel and the Small Agri-Biodiesel Producer Credit.

In March, Senators Blanche Lincoln (D-AR) and Norm Coleman (R-MN) introduced S. 872 to extend the biodiesel tax incentive to 2017. See an updated list of co-sponsors here, http://thomas.loc.gov/.

Original post by zhamm

Senators Blanche Lincoln (D-AR) and Norm Coleman (R-MN) introduced
legislation on March 14 to extend the federal excise tax credit and income tax
credit for biodiesel to 2017. If adopted, the legislation would continue the era of
growth in the biodiesel industry that similar Lincoln-sponsored legislation launched
when it became law in 2004. The legislation can serve as a legislative vehicle that
could be conferenced with the Renewable Fuels and Energy Independence Promotion Act
(H.R. 196) that Representatives Earl Pomeroy (D-ND) and Kenny Hulshof (R-MO)
introduced on January 4. The House legislation would make permanent the federal
excise blender tax credit for biodiesel and the Small Agri-Biodiesel Producer
Credit. Contact your Member to request that they support these important bills. See
an updated list of co-sponsors to H.R. 196 here, http://thomas.loc.gov/.

Original post by zhamm

I’m not so sure.  Everywhere I turn, I hear about local, state, or federal government impeding the growth of the biodiesel industry.  In my previous article, I spell out one of the common myths and misconceptions about biodiesel, but I’m beginning to wonder if it’s more than that.

In a nutshell, it’s probably just the fear of change.  We’re used to petroleum.  In the late 1890’s, when gasoline as a fuel was new and the majority of the few automobiles that existed were actually steam or electric, people feared gasoline as a dangerous explosive that would detonate spontaneously.  People had to be reassured that gasoline was safe.

Rudolf Diesel had a solution, burn peanut oil in his new engine.  It was much safer than gasoline, was renewable, and smelled better when it burned. The diesel engine had better reliability and fewer parts.  But, the petroleum industry refineries had cheap fuel, and a really sulfurous (and othrewise useless) fuel oil byproduct that could be burned in Diesel’s engine with little to no modification.  Thus, the petroleum industry had yet another avenue for their products, and the renewable fuel industry was killed before it was ever even born.

It seems to me we’re in a slightly different, but still very reminiscent place today.  Petroleum is becoming scarce, and renewable fuels, still the same after all these years, are ready to step in.  Yet I keep reading about (and experiencing first hand) proposed biodiesel plants being blocked by fire marshals, planning and zoning commissions, historical societies,  and even mayors.   Why?

Most small to medium sized biodiesel plants are not funded by large conglomerates such as ADM or Cargill.  They are being built by entrepreneurs such as TBI which in most cases wish to reuse existing facilities such as chemical plants, textile plants, dairies, warehouses, or fuel depots and revitalize the local economy while doing so.  What’s so bad about that?

Biodiesel as a product is extremely safe, and the process to produce it is considered safe as well if properly planned and effectively managed.  Most processes are self-contained, fumeless, and pose very few hazards in the way of environmental impact.  This isn’t fiction. There are already hundreds of biodiesel plants in many parts of the world that are located in urban, industrial locations without problem.  Europe is a great example.

So, does our government really want biodiesel?  I don’t know.  They say they do, but their actions don’t really convey the same message.   “It’s much too dangerous to build a biodiesel plant near residential or commercial locations”, “We don’t want to smell your refinery belching out putrid smoke all hours of the day”, “You’re going to have to have double or even triple containment around your tanks” (for class IIIB liquids, no less), “You have to install a sprinkler system in your plant” (for an oil fire, no less), “You are classified as a low level hazardous waste facility” (my favorite).  

Nonsense.  It’s just change.  And, it’s good change.  (Standing on soap box, waving the American flag)  It helps the local economy, it is renewable, it’s safe to store and use, it’s more ecologically friendly, it’s more physiologically friendly, and it reduces our dependency on foreign oil.  How can all that be bad? 

Want to help?  Ask your local city councilman, state representative, or congressman what he or she is doing to help promote biodiesel in your area.   Get them thinking about renewable fuels and instead of just talking about it, doing something about it.  Make them hear you, a phone call or a letter a day for three days ought to do it.  Tell them you want to see biodiesel and ethanol pumps in your neighborhood.

Original post by zhamm

I keep reading and hearing about how Biodiesel is such a dangerous product because it’s a fuel, and because it requires such dangerous chemicals used to make it. This seems to be to be a clear case of FUD (fear, uncertainty, and doubt), and spread by people who are knee-jerking or simply just spreading mis-information because they won’t take the time to actually do their own homework.

So, just to spell it out in black and white, I’ll explain a little about the production process and chemicals used in making biodiesel. Biodiesel is made from essentially three ingredients:

• Vegetable Oil or Animal Fats
• A simple alcohol such as Methanol or Ethanol
• A catalyst, such as Sodium Hydroxide or Potassium Hydroxide

1. Vegetable Oil - While flammable, it has a flash point of around 400 degrees Farenheit. You can’t light it with a match. It’s used in almost every restaurant and fryer line in the world, not to mention being used for pharmaceutical, cosmetic, industrial, or electrical uses; and is stored, shipped, and used in large quantities (thousands of gallons) worldwide on a daily basis.
2. Methanol/Ethanol - Again, flammable, much more so than vegetable oil but not as much as gasoline, and is used in many business on a daily basis, and stored and used in large quantities. As a general rule, most medium size biodiesel plants store and use less alcohol on a monthly basis than the amount of gasoline stored on any one day at a typical gas station.
3. Potassium Hydroxide (KOH) - A caustic chemical, it is used to “force” the reaction for biodiesel to strip the triglycerides in the oil to simple mono-alkyl esters (commonly called biodiesel). KOH is commonly used in making alkaline batteries, and it’s used commercially to wash fruits and vegetables, thicken ice cream, soften olives, and to make foods such as hominy and cocoa.

When these chemicals are combined, the resultant mixture forms a fairly stable liquid that is mixed and ultimately separates into biodiesel and glycerol. For more information, see the TBI website or Wikipedia (”http://en.wikipedia.org/wiki/Biodiesel“).

 
In short, these “dangerous” chemicals are used EVERYDAY, EVERYWHERE in modern commercial industry. Yet somehow, because biodiesel is new and has little regulation around it, it scares people into creating artificial issues with it that are unfounded and totally unnecessary.

Original post by zhamm

Original post by zhamm

US Congressmen Kenny Hulshof (R-MO) and Earl Pomeroy (D-ND) have introduced the Renewable Fuels and Energy Independence Promotion Act (H.R. 5650), which would make the federal excise tax credit for ethanol and biodiesel permanent.

The bill removes sunset provisions for ethanol and biodiesel incentives that accompanied the Volumetric Ethanol Excise Tax Credit (VEETC), which took effect Jan. 1, 2005. Currently, the incentives will expire in 2008.

The incentive is a volumetric-based tax credit aimed at helping lower the cost of ethanol and biodiesel to consumers who pay road taxes, such as truckers, and in tax exempt markets, such as school districts.

Since taking effect, the incentive has been the primary stimulant for a dramatic increase in new biodiesel plants—there are currently 65 operational plants, with 50 more under construction.

Renewable fuels are a critical component to our nation becoming more energy independent. By making the tax credits for biodiesel and ethanol permanent, we are providing the stability these emerging industries need to grow.

—Rep. Pomeroy

Several bills have been introduced in the Senate to extend these tax credits, including S. 2401 by Sen. Chuck Grassley (R-IA), Chairman of the Senate Finance Committee.

Original post by zhamm

We are thrilled to announce the availability of biodiesel station pricing for selected locations! This information will be provided on the website and WAP users (cell phones with Internet access) but is not available with text messaging.

Most of the retail locations do not have a convenient way for us to report daily price changes, but a few do, so we spent last week working on an important enhancement to deliver price data for each station that reports daily pricing.

Further, if you frequent one of the stations on our list (for which we can′t automate pricing), then feel free to update us about the station′s current price by sending us an email (info@nearbio.com). Frequent updaters will earn some neat items from the NearBio.com store!

As petroleum-based fuel prices are expected to rise dramatically this summer, we are pleased to begin suppling prices as it will demonstrate the cost-effectivity of biodiesel. We hope to get more online soon.

Cheers!

Team NearBio

Original post by Nearbio Team

Did anyone check out the MTV “Pimp My Ride” episode on Earth Day? Gov. Schwarzenegger’s appearance was actually somewhat entertaining, and the car they rebuilt was a mind-boggling tour de force. It is also good to know that Arnie has converted two of his four Hummers to diesel, so he can run biodiesel in them.

Now, here’s the question. California is the only state in the nation where paperwork must be filled out by someone wanting to purchase a biodiesel blend greater than ᧜. The first time you purchase the fuel, you will be asked to provide the make and model of your car, contact information and legalities. This is because in 2004 the CA Division of Measurement Standards prohibited the sale of fuel containing greater than 20% biodiesel to the public. The only way to SELL greater than ᧜ is to get a waiver from the DMS and file quarterly reports on vehicle types, fuel used, etc. Hence the need for “user groups″ and COOP memberships to coordinate these logistics.

It seems to be a paradox for Gov. Schwarzenegger to be explictly promoting biodiesel while he doesn’t appear to have done anything to solve the above problem.

The NearBio team is curious if anyone has any additional insight or late-breaking news as to these regulations changing. One would think change should be imminent, but unfortunately it may not be the case. Updates appreciated… Thanks!

Original post by Nearbio Team

Greetings! Many users have suggested that the NearBio team create a blog. During our daily maintenance of the country’s most comprehensive and accurate biodiesel location database (also cell phone accessible and GPS-aware), we learn very interesting tidbits “on the road” to reducing foreign oil dependence and cleaning up the air.

As a result of our scouring the daily news articles, which we read voraciously, we also keep up on some of the political issues associated with alternative fuels (not just biodiesel). Some common themes that keep “cropping” up are the “fuel vs. food” debate as well as the newly emerging NO2 issue regarding canola oil from SRI. These will be discussed shortly, in upcoming blog entries, subsequent to our fact-finding being completed.

We also have found some very interesting statistics regarding vehicle use in various markets. We have spent quite some time gathering this data and thing it important for the biodiesel community to be aware of such data. For example, did you know that Texas has the highest number of diesel automobiles? Hence, the demand for biodiesel retail fueling locations should be quite strong in Texas. (California is second in diesel autos).

In closing, we are big fans of biodiesel, but still very objective in our analysis and conclusions. That being said, biodiesel is not a perfect alternative fuel, nor is any fuel source perfect, simply because of the laws of physics and the conservation of energy. However, biodiesel is a very good alternative fuel with many, many benefits for “greening up” the environment and reducing dependence on foreign oil and improving diesel engine life through increased lubricity.

We will do our best to keep our upcoming posts as informative and entertaining as possible :).

-Team NearBio

Original post by Nearbio Team

BP and ʩ oils have agreed to form a joint biodiesel venture. Over the next five years the 50/50 joint venture D1-BP Fuel Crops plans to invest around $160m (€119m) on planting over 1m hectares of the oilseed bearing plant, BP said, according to a report on ICIS news.

(Disclosure: I work for ICIS, About ICIS)
D1 oils says in its most recent annual report that it has rights to 110 000 hectares of jatropha and that in five to seven years the firm could be netting 1.7 tonne oil/hectare

Original post by Simon Robinson

I thought I would share this letter from the San Francisco Biodiesel Taskforce to gas stations in San Francisco encouraging them to consider selling biodiesel at the pump.

Go San Francisco, Go!

June 6, 2007

Gas Station Owner
San Francisco, California

RE: Biodiesel: Environmentally Friendly, Renewable Diesel Fuel – Available Today

Dear Sir or Madam,

We would like to bring to your attention the exciting opportunity provided by America’s fastest growing alternative fuel, biodiesel. The City of San Francisco has adopted a policy to promote the use of biodiesel throughout the City and is considering adopting financial incentives to encourage existing gas stations to provide biodiesel at the pump. The City would greatly appreciate your consideration of offering biodiesel for sale at your San Francisco filling station.

Biodiesel is a safe, nontoxic and biodegradable substitute for petroleum diesel that is made from renewable vegetable oils, recycled cooking greases or animal fats. Biodiesel is designated under federal law as an ‘alternative fuel’ and is registered with the US Environmental Protection Agency (EPA) as a fuel and fuel additive. It can be blended with traditional petroleum diesel in any ratio, can be used in any diesel engine without need for mechanical alterations and is compatible with the existing petroleum diesel distribution and dispensing infrastructure.

The US Department of Energy (DOE) has recognized biodiesel as the fastest growing alternative fuel. The biodiesel market is expected to grow from a couple hundred million gallons per year today to over one billion gallons per year by 2010. The DOE’s National Renewable Energy Laboratory (NREL), US EPA and Department of Transportation (DOT) have all embraced biodiesel as a means of reducing diesel engine emissions, lowering our dependence on imported petroleum fuel, and boosting the agricultural sector for our country.

Biodiesel is currently cost competitive with petroleum diesel. The City’s Biodiesel Access Taskforce is ready to help, free-of-charge, all interested station owners explore the potential of dispensing biodiesel at their stations. For more information, please contact Monica Fish, the Taskforce’s secretary at (415) 355-3709 or Monica.Fish@sfgov.org.

You can find more information on biodiesel at http://www.biodiesel.org/ and you can find more information on the SF Biodiesel Taskforce at http://www.sfenvironment.com/aboutus/innovative/biodiesel.

Thank you for your consideration. We look forward to hearing from you.

Sincerely,

Eric M. Bowen
Chair, San Francisco Biodiesel Access Taskforce

Original post by Eric Bowen

The Refinery of in Escombreras, which is owned by Repsol YPF, began yesterday to distribute to its logistics net and registering stations on watch, through the Logistic Hidrocarburos Company (CLH), his first diesel oil mixture with biodiesel, according to a translation from BioDieselSpain.com.

Original post by Simon Robinson