Biodiesel Bulletin

The Biodiesel Bulletin
A Monthly Publication of the National Biodiesel Board

January 3, 2006
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In This Issue:

Temporary Waiver Granted for B2 Requirement in Minnesota
Two Weeks Left to Register for Biodiesel Conference
Biodiesel Projects Funded Through USDA, USB
First Biodiesel Plant a Reality for Indiana
World Energy Wins Platts Energy Distinction
Bonnie Raitt Raises Money for Biodiesel Outreach in Tennessee
Biodiesel On and Off the Clock: Willamette Valley Vineyards

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Temporary Waiver Granted for B2 Requirement in Minnesota

The Minnesota Biodiesel Council (MBC) December 23 requested that the
Department of Commerce grant a temporary variance on the state’s
biodiesel requirement.

The request came after some petroleum terminals in Minnesota reported
that they had discovered some of their biodiesel inventory contained
more total glycerin than permitted under the ASTM D6751 standard for pure
biodiesel.

“A 15-day variance will give terminals and other blenders the time
needed to test their biodiesel inventory and re-supply,” said Don Louwagie,
Chairman of MBC. “We feel very strongly that biodiesel that does not
meet the required standards, has no place in the marketplace. Biodiesel
producers and terminal operators must take immediate steps to control
quality so that biodiesel can move forward in Minnesota.

“Let me be clear that the issue is not statewide and there are many
Minnesota diesel users and fleets that are not experiencing problems,”
Louwagie said.
Biodiesel producers and distributors are urged to become accredited
producers or certified marketers through BQ-9000, the industry’s quality
assurance program.

A Diesel Helpline has been established through the University of
Minnesota Center for Diesel Research. Minnesota residents experiencing a
problem are urged to report it at 800-929-3437.

The National Biodiesel Board (NBB) supports the actions of the MBC and
both groups are working cooperatively with the Petroleum Marketers
Association of Minnesota, Minnesota petroleum producers, terminals and
distributors and diesel users to correct the problem and ensure that no
further quality issues arise.



Two Weeks Left to Register for Biodiesel Conference

Please note that there are less than two weeks remaining for
pre-registration for the [ National Biodiesel Conference & Expo. ] In its third
year, the 2006 San Diego conference promises to offer the most
comprehensive information and networking opportunities in the industry.

January 13 will mark the last day [ pre-registrations ] can be taken
through the National Biodiesel Board (NBB) offices, and will also mark
the last day for lower registration rates. After that, registration must
be done on-site for a higher fee in San Diego, Feb. 5-8.

General Sessions will feature some of the best-known experts in the
field, as well as one of biodiesel’s top public faces – Willie Nelson.
Like last year, the conference program is organized by educational tracks
– Technical, Fuel Distribution, Policy/Regulation, Markets, Users and –
new this year – Original Equipment Manufacturers (OEMs) to meet the
needs of all industry players. More than 40 sessions will cover everything
from fuel quality standards, federal and state legislation updates, and
European marketing strategies, to trends in BioHeat and opportunities
in agricultural uses of biodiesel. The exhibit floor has been expanded
recently with overwhelming exhibitor interest, totaling over 115
exhibits.

This year’s networking and social events include the popular Super Bowl
Party, a golf tournament and a Welcome Reception. Also remember to sign
up for valuable [ pre-conference training sessions ] which begin on
Saturday, Feb. 4.



Biodiesel Projects Funded Through USDA, USB

The United States Department of Agriculture (USDA) in December awarded
more than $18 million in Small Business Innovation Research (SBIR)
grants, which included funding for biodiesel projects. Among the grants are
five that specifically fund research into biodiesel.

The primary objectives of the SBIR program are to stimulate
technological innovations in the private sector and to strengthen the role of
small businesses in meeting federal research and development needs.

The SBIR grants that deal with renewable energy total more than $1.2
million, and the biodiesel projects are as follows [
http://www.csrees.usda.gov/funding/sbir/sbir_abstracts.html. ] :
. "Biosolids for Biodiesel," Emerald Ranches, Sunnyside, WA (canola)
. "A New Process for Biodiesel Production Based on Waste Cooking Oils
and Heterogeneous Catalysts," United Environment & Energy, LLC, Orchard
Park, NY
. "Improved Quality Soy-Oil Based Biodiesel Fuel," Bioplastic Polymers
& Composites, LLC, Midland, MI
. "Camelina sativa: A Multiuse Oil Crop for Biofuel, Omega-3 Cooking
Oil, and Protein/Oil Source for Animal Feed," Great Northern Growers
Cooperative, Sunburst, MT
. "High Yield, High Efficiency Bio-Refining," Advanced Materials and
Processes, San Marcos, TX

USB Funds QSSBs for Biodiesel
Fourteen qualified state soybean boards (QSSBs) and one region of five
QSSBs have been selected by a United Soybean Board (USB) Communications
Committee Working Group to receive USB funding. The QSSBs will be
funded for pre-approved soy biodiesel communications activities in their
states and region. They are Illinois, Indiana, Iowa, Kansas, Michigan,
Mid-Atlantic Region (Delaware, Maryland, New Jersey, Pennsylvania,
Virginia), Minnesota, Mississippi, Missouri, Nebraska, North Carolina, Ohio,
South Carolina, South Dakota and Tennessee. This program evolved from
the Biobased Products Initiative, which concluded last fiscal year. The
board made $500,000 available for biodiesel and biobased product
communications.




First Biodiesel Plant a Reality for Indiana



Evergreen Renewables LLC, a National Biodiesel Board member, announced
in December they soon will be operating the first biodiesel plant in
Indiana. Located at Wolf Lake Terminals in Hammond, the facility will
initially produce 5 million gallons of biodiesel per year made exclusively
from soybean oil.

The group aims to start producing biodiesel in the first quarter of
2006 and intends to expand production to 30 million gallons per year. The
facility will be constructed to produce biodiesel according to BQ-9000,
the leading industry quality standard for biodiesel producers.

Carl Lisek, Coordinator for South Shore Clean Cities, a U.S. Department
of Energy program, said the city of Hammond is already familiar with
this renewable fuel. The Hammond school bus fleet has successfully used
B20 since the 2001 school year. “While our nation’s thirst for oil puts
our economic, energy security and air quality at risk, we see this
facility as an alternative that works for improving our quality of life,”
Lisek said.

Brian Engel, a partner in Evergreen Renewables, and Edible Oil
Marketing (EOM) President, said the need for clean, renewable fuel made in the
United States has never been more apparent, nor has their business
opportunity. ‘‘The community of Hammond will be contributing to our
nation’s energy security and a cleaner environment,’’ he said. “The facility
site at Wolf Lake Terminals is optimally situated to source soybean oil
from a number of Indiana soybean processors and to supply the growing
demand for biodiesel to various wholesale rack fuel distributors in the
region.”

Evergreen Renewables LLC is a partnership between EOM, an independent
vegetable oil marketer, and Process Technology Associates LLC (PTA), a
chemical and process engineering firm, working in conjunction with Wolf
Lake Terminals, Inc., which currently owns and operates a fully
integrated liquid storage and distribution facility in Hammond.


World Energy Wins Platts Energy Distinction

World Energy, biodiesel supplier in Massachusetts, was recently awarded
a 2005 Platts Global Energy Downstream Business of the Year Award.

To award this National Biodiesel Board member this distinction, an
international panel of judges convened to choose 15 out of 200 global
companies that have demonstrated innovative energy initiatives. Composed of
the energy industry’s top corporate executives, leading academics, and
editors, the panel reported that, “World Energy has taken an
exceptional and pioneering role in moving a newcomer fuel from green pipe dream
to commercial reality.”

“This award is a testament to the astounding growth of renewable fuels
and the petroleum market’s mainstream adoption of greener energy
initiatives,” said Gene Gebolys, President and Founder of World Energy.
“Biodiesel shows tremendous promise to improve emissions, fuel performance,
and energy security.”

World Energy [ http://www.worldenergy.net ] has been a producer and
distributor of biodiesel for the past ten years. The company is a major supplier
of biodiesel to petroleum distributors throughout the U.S. as well as
all branches of the U.S. military and hundreds of federal, state, and
local fleets nationwide, helping them meet strict emissions guidelines.
Platts [ http://www.platts.com ] is a worldwide provider of energy
information.



Bonnie Raitt Raises Money for Biodiesel Outreach in Tennessee

Nine-time Grammy-winning musician and activist Bonnie Raitt, currently
touring the country on cleaner burning biodiesel, hosted a benefit
event for biodiesel education at her performance in Knoxville, Tenn., in
December.

Thanks to Raitt’s belief in biodiesel, and her generosity, the National
Biodiesel Board (NBB) was able to sell a special lot of tickets for
biodiesel supporters and Raitt fans. Most tickets included invitations to
a dessert reception with Raitt after the show. The proceeds raised will
benefit biodiesel education programs in Tennessee through the East
Tennessee Clean Fuels Coalition (ETCFC) and Tennessee Soybean Promotion
Board (TSPB).

“What a fantastic person! We have been extremely pleased working with
Bonnie and her team to raise awareness for biodiesel,” said Jonathan
Overly, executive director of the ETCFC. “Additionally, she took the time
to meet and greet with 30 of the ticket buyers after the concert. All
said and done, we've raised around $4,000 from the event.”

Raitt is using the blend of 20 percent biodiesel and 80 percent regular
diesel in two buses and two tractor trailer trucks. This is the second
tour in which the blues entertainer has used B20. Please visit
http://www.bonnieraitt.com or http://www.charityfolks.com to learn more about Bonnie Raitt’s
tour. More information on biodiesel initiatives in East Tennessee can
be found at http://www.etcfc.org.



Biodiesel On and Off the Clock: Willamette Valley Vineyards


Working at a winery may have more perks than just the tastings.
Willamette Valley Vineyards [ http://www.willamettevalleyvineyards.com ] in
Oregon not only uses biodiesel in all of its tractors on its 250 acre
operation, but its employees can keep burning the renewable fuel even
after 5:00 p.m.

The vineyard has been offering free biodiesel to its employees with
diesel personal vehicles. So far, about five employees have switched from
diesel fuel to biodiesel, or switched from gas to diesel vehicles, said
Shelby Zadow, Willamette Valley Vineyards Communications Coordinator.

“I used to drive an SUV and commute 120 miles a day. I don’t feel bad
about my commute anymore using biodiesel in my new car because I’m doing
so much better for the environment,” Zadow said. She credits Jim
Bernau, president and founder of the vineyards, for initiating biodiesel in
business – and personal – use. Employees who accept the biodiesel offer
of up to 50 gallons a month carry around promotional material on
biodiesel at all times, and answer any questions curious fellow drivers ask.

Willamette Valley also has four of its wholesale delivery vans running
on biodiesel as they travel the state. Fuel is acquired through their
onsite pump, as well as at SeQuential Biofuels’ cardlock stations.

“A lot of Oregon wineries are heading in this direction; they are
trying to be on the cutting edge when it comes to the environment,” said
Zadow.

This producer of Burgundian varietal wines was featured in the January
2006 Wine Spectator for this environmental initiative.

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Upcoming Events

National Biodiesel Conference
Feb. 5-8, 2006
San Diego
http://www.biodiesel.org/expo2006

Biofuels Market
Feb. 16-17, 2006
Brussels
http://www.biofuelsmarkets.com

Feb. 27-28
Biodiesel Finance & Investment Summit
New York, NY
http://www.infocastinc.com/biodiesel.html

Renewable Energy & Finance Investment Summit
March 8-10, 2006
Phoenix, Az.
http://www.frallc.com/private.asp#b319

OPIS Ethanol &Biodiesel Management
March 29-31
Chicago
http://www.opisnet.com

POWER-GEN Renewable Energy & Fuels Conference
April 10-12, 2006
Mandalay Bay Hotel, Las Vegas, Nv.
http://pgre06.events.pennnet.com/

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Contact Us
Amber Thurlo Pearson, Communications Coordinator
Email: apearson [at] biodiesel.org

Bev Thessen, Information Coordinator
Email: bthessen [at] biodiesel.org

This bulletin is also available in PDF format online at
http://www.biodiesel.org/news/bulletin/
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