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Researchers at Mississippi State University are looking at ways to turn the millions of pounds of shrimp parts not used for food into biodiesel.

This story from Biodiesel Magazine says the project is being funded by the Mississippi-Alabama Sea Grant Consortium (MASGC), part of a federal/state partnership that matches National Oceanic and Atmospheric Administration experts and resources with state academic institutions:

The goal of the research project is to find a higher value for the millions of tons of shrimp and other seafood waste that gets processed each year near in the Gulf Coast areas of Mississippi, Alabama and Louisiana, according to Todd French, an assistant microbiologist at MSU who is a lead on the project.

Seafood-based biodiesel production would be a boon for existing shrimp processors looking to eliminate some of their disposal costs, which have been estimated at about $145,000 per producer. As a building block for fuel, the waste also would bring additional income streams from the products it’s used to create.

Mississippi State has been a very hot place for biodiesel recently. As you might remember from my post on June 16th, the school is also working on turning wastewater sludge into biodiesel (in fact some of the same researchers are working on the shrimp-to-biodiesel project). In addition, back in May, we told you about how Mississippi State was the winner of Challenge X… a four-year engineering competition with 17 university teams from across North America developing General Motors vehicles using alternative energies. That winning vehicle ran on biodiesel.

A new feedstock for the growing biodiesel industry could be a cash cow for the western states where it will be growing.

Camelina is an oilseed that is growing in popularity in the more arid regions of the western United States. In fact, the profit potential is believed to be so great that the State of Colorado’s Agricultural Value-Added Development Board has just issued a $41,059 Advancing Colorado’s Renewable Energy (ACRE) Program grant, which provides funding to promote energy-related projects beneficial to Colorado’s agriculture industry.

This story from the Wall Street Journal’s Market Watch says the state money will be joined by nearly $13,000 from Blue Sun Biodiesel to aid in the research efforts:

Blue Sun is using the grant to develop camelina production practices by conducting water use efficiency trials, fertility experiments, date of planting studies and observing on-farm production. The culmination of the grant will result in a spring camelina production guide.

“Camelina is part of the next step for biodiesel,” said Sean Lafferty, VP of Technology at Blue Sun Biodiesel. “It is a non-food crop, and it can be grown on land unsuitable for most other crops. Camelina is a good rotation crop as well and it can survive low and variable rainfall conditions, reducing risk for the farmer.”

Camelina is a non-food oilseed that is estimated could bring $80 million to Colorado’s economy.

While the EPA delay of issuing a decision on Texas’ request for a waiver from the Renewable Fuel Standard (see Cindy’s story from earlier today) is seen as good news for the ethanol industry, it is also being praised by its biodiesel brethren.

National Biodiesel Board Chief Executive Officer Joe Jobe issued this statement on the decision:

“In considering the Renewable Fuels Standard (RFS) waiver request by Gov. Perry, it is important to note that all renewable fuels qualify for the current RFS. In fact, if the RFS is waived or cut in half in 2008, then the growth of all biofuels, including ‘advanced biofuels’ such as biodiesel, will be severely hindered.

“Beyond the environmental and energy security benefits provided by biofuels, the opportunity for green jobs and the continued economic development of biodiesel refineries in Texas must be taken into account by the EPA when evaluating whether to waive the RFS. Unfortunately, the goal of bringing biofuels, jobs and energy independence to Texas and the nation, which Gov. Perry praised just last month, will not be realized if the RFS is waived.

Jobe also pointed out that Perry has recently praised biodiesel for “providing a necessary alternative to fossil fuels without negatively impacting our food supply.” Jobe says that was the right thing then… and it’s still the right thing now.