Collaboration, Commitment and Effort Evident in Biodiesel Industry’s Resiliency

As we attended more sessions at the National Biodiesel Conference on Tuesday and Wednesday, it was apparent that this is a resilient industry that’s committed to doing whatever it takes to meet customer requirements and expand the market for biodiesel.  Many of us were surprised at the amount of effort that has gone into developing, protecting and growing this market.

With more than 30 information sessions offered, we definitely increased our knowledge about biodiesel, before heading back to Minnesota. The sessions covered topics related to markets, technical issues, policy and regulations, original equipment manufacturers and sustainability. We all have a new appreciation for the complexity of the industry and also for the amount of collaboration and cooperation that has gone on and continues in order to further develop the industry.

On Tuesday, we heard from all links in the petroleum supply chain as a panel discussed how they will meet the increased demand for biodiesel created by the Renewable Fuel Standard 2. We learned that the petroleum industry is willing to invest in the infrastructure needed to supply biodiesel to the nation. Companies are spending $2.5 to $3 million per terminal to add the infrastructure necessary to handle biodiesel. It was also interesting to learn that biodiesel is already being moved successfully through pipelines.

“Even though the industry has had a lot of setbacks, a lot of people are working together. Even the petroleum people are investing in biodiesel infrastructure,” noted Jim Willers, chairman of the Minnesota Soybean Research and Promotion Council.  “The biodiesel coalition is growing and we’ll be a much more viable industry in the future because of it.”

Biodiesel’s Positive Energy Balance Climbs

Ed Hegland, a Minnesota soybean grower and chairman of NBB, says collaboration is what drives the continuous improvement in biodiesel’s energy balance, which has climbed from 3.2 to 1 to an incredible 4.5 to 1.  “While petroleum becomes more energy intensive to make by the day, biodiesel becomes more efficient. We can thank our biodiesel producers, plant scientists and farmers for that,” Hegland said. “Like most farmers I am able to grow more with less thanks to the leaps American agriculture has taken in its technology and efficiency.  I expect to increase my soybean yields by 3-5 bushel per acre this year.  Think what that could mean on 75 million acres nationwide. That would be 375 million additional bushels on the same acreage, enough to produce an extra 562 million gallons of biodiesel on that land.”

There is strong support for biodiesel because it has the best energy balance and the best greenhouse gas reduction of any fuel that is currently in the commercial marketplace, and is the only advanced biofuel that has reached commercialization in the U.S.

Awareness of biodiesel is growing and opinions are widely positive. Among voters, 86 percent are aware of biodiesel and 80 percent of consumers surveyed say they are very or somewhat likely to use biodiesel.

Enterprise Announce Fleet Conversion to Biodiesel

At the National Biodiesel Conference, Enterprise Holdings announced plans for its entire fleet of more than 600 Alamo Rent A Car, Enterprise Rent-A-Car and National Car Rental airport shuttle buses across more than 50 North American markets to begin using at least 5 percent biodiesel (B5). Further, the company will immediately convert buses in nine markets to 20 percent biodiesel (B20) as a first step toward the company’s goal of converting its entire bus fleet to B20 over the next five years.

It expects to complete the conversion to all B5 by spring of this year, with at least 50 percent converted to B20 by the end of next year. Buses in nine markets are immediately being converted to run on B20.

“This investment in biodiesel follows our commitment to our customers and our business to use our fleet to help grow the clean fuel market. By embracing alternative fuels and engine technologies, they have a greater opportunity to become commercially viable,” said Lee Broughton, director of corporate identity and sustainability for Enterprise Holdings. “Biodiesel’s benefits to the environment support our commitment to environmental stewardship, as well as our sustainable approach to managing our business for long-term success.”

Enterprise Holdings also provides strong support for renewable fuels research. In 2007, the company’s owners, the Taylor family, made a $25 million grant to the Donald Danforth Plant Science Center in St. Louis to create the Enterprise Rent-A-Car Institute for Renewable Fuels. Led by renowned plant researcher Dr. Richard Sayre, top scientists work at the Institute to develop alternatives to finite fossil fuels by finding new ways to create fuel from renewable, reliable plant sources.

Brian Greenslit, domestic marketing chair from Franklin, Minn. is excited about the growth in fleets using biodiesel. “The widespread use of biodiesel in fleets, particulary in municipalities, both on and off road is very promising,” he said. Acceptance is high and fleet managers are reporting almost no issues whatsoever.”

General Motors Announces B20 Models for 2011

General Motors told biodiesel supporters at the National Biodiesel Conference that the company’s 2011 model year Duramax 6.6L turbo diesel engines will be fully compatible with a 20 percent blend of biodiesel (B20). The company made the announcement, which covers all 2011 GM heavy-duty products including Chevrolet Silverado, GMC Sierra, Chevrolet Express, and GMC Savana, after extensive evaluation of B20.

GM joins Ford and Chrysler in formalizing its support for B20, providing a big boost to the biodiesel industry. These three companies produce more than 80 percent of the diesel light vehicles sold in North America.

“It’s a huge win for the biodiesel industry to have GM’s support for B20,” said Steve Howell, technical director for the National Biodiesel Board (NBB). “Over the past seven years, a tremendous amount of cooperative effort has taken place between the biodiesel industry and the auto and equipment manufacturers to secure broader support for B20 blends in their vehicles. From the development of stringent new ASTM specifications for blends up to B20, to intensified fuel quality enforcement efforts and emphasis on the BQ-9000 program, to sophisticated testing with new particulate and NOx aftertreatment technology – this has truly been a substantial team effort, and it’s finally paying off.

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The NBB and the National Renewable Energy Laboratory spent more than $10 million testing B20 during the last five years to ensure the fuel’s compatibility in new diesel engines and after-treatment technology. Most of the NBB funding for the testing was provided by U.S. soybean farmers through the soybean checkoff-program.

Peter Johnson a soybean grower and director from Lake Lillian, Minn. said, “It’s neat how Ford, Dodge and Chevy are getting so innovative and participating in biodiesel areas. They are seeing a demand there and they want to be a player.”