energy.agwired.com

The National Biodiesel Board is taking exception with a report that seems to equate unsustainable practices to produce biodiesel in some parts of the world with what American biodiesel producers are doing

In a statement from Manning Feraci, Vice President of Federal Affairs at the NBB, the group takes aim at the report titled, “Biofuel Plantations on Forested Lands: Double Jeopardy for Biodiversity and Climate” :

“The U.S. biodiesel industry does not support or condone practices that cause the destruction of sensitive ecosystems such as rainforests in Southeast Asia. In fact, credible science has repeatedly shown that the vegetable oils and animal fats produced in the U.S. and used for biodiesel production are sustainable and significantly reduce greenhouse gas emissions when compared to fossil fuels. This information was unfortunately not acknowledged in this study.

NBB officials say that biodiesel, produced from sustainable U.S. feedstocks, can be a key part of America’s strategy to reduce its dependence on foreign oil. They fault the researchers for trying to use inexact science and incomplete data to possibly to try affect America’s commitment to biofuels.

The Minnesota Department of Agriculture has extended its deadline to apply for grants to help the state’s biodiesel industry.

This press release from the department says the new deadline is Friday, December 12, 2008:

A total of $300,000 in funds is available to the owners of facilities that supply petroleum products to customers who sell, use, or transport fuel in the state of Minnesota. The facilities should be located on or near a petroleum terminal and have an infrastructure that can be designed to blend cold weather biodiesel with conventional diesel fuels. Cold weather biodiesel is a high-quality biodiesel blend that can be used successfully year-round, even in the coldest climates.

Grant funds may be used to offset the cost of necessary infrastructure equipment including but not limited to tank, pipe, valves, meters, pumps, and heating equipment plus the cost of engineering, fabrication, and installation.

Officials admit that they received no applications by the Nov. 28th, 2008 deadline… the day after Thanksgiving… but many had expressed an interest and said they just needed more time to do their applications.

More information is available at the Minnesota Department of Agriculture web site: www.mda.state.mn.us. Click on Grants, Loans & Financing.

The construction industry might be struggling a bit these days, but biodiesel plants are still being built… with some help from federal and state programs that are backing the capital to get these startups going.

As an example, a Missouri-based biodiesel maker has received some help to get their proposed biodiesel plant and soybean crushing facility off the ground. This story from Biodiesel Magazine has details:

Moberly, Mo.-based Producers’ Choice Soy Energy LLC has received a $9.5 million construction loan from Advantage Capital Partners, a venture capital and small business finance firm. The loan was made possible through state and federal tax programs, including the Missouri New Markets Development program, that are designed to stimulate growth in underserved communities.

The funding will be used to support the construction and operational needs of a soybean processing plant and 5 MMgy biodiesel production facility. The soybean crush will process up to 250 tons of soybeans per day for use in biodiesel processing. In addition, 65,000 tons of extruded soybean meal will be produced annually.

The plant is scheduled to be finished this coming February.

Rising oil prices were a boon to biodiesel producers this summer, as near-$150/barrel prices for crude oil made it more and more profitable to produce biodiesel from a variety of feedstocks. However, with that same barrel of oil now costing less than $50, margins have tightened up for makers of the green fuel.

This story in the Tampa (FL) Tribune highlights how biodiesel producers have had to get more innovative to keep bottom lines in the black:

[Last summer], producers said they were limited only by how much $3-a-gallon chicken fat they could truck into the plant.

“If you could sell B20 for a nickel or 3 cents less than petroleum diesel, you could probably sell all you could make,” McCormick said. “They haven’t been able to do that.”

Industry leaders say the $1-a-gallon federal credit they’re getting is helping for now, and the 500 million gallon mandate for biodiesel that kicks in next year will give the market a floor. But they also realize they need to make a profit to stay viable.

I’m sure some of you are reading this and saying, “See, it’s not working!” But keep in mind, it’s those 500 million gallons of petroleum diesel that biodiesel will replace next year… and more in subsequent years… that will help keep the price of petroleum down. As biodiesel refining technologies… helped by those subsidies and mandates… are made more efficient, it will cost less and less to produce biodiesel, making it less reliant on any tax dollars for support. Less expensive, more sustainable feedstocks will replace the more expensive, less sustainable ones. Survey after survey show Americans want to support domestically-produced alternative energies. Right now, the industry just needs a little leg up. Isn’t it better to help out these guys making the green fuel, than to subsidize million-dollar retreats for bankers who can’t balance their balance sheets or give money to carmakers who make cars people don’t want to buy? And if we save the planet in the process, all the better.