[Sustainable-biodiesel] Your feedback requested - warning, long response!
Jason Burroughs
jason at dieselgreenfuels.com
Tue Jan 15 02:55:01 EST 2008
Hi Emily,
A couple of key points to make with the sustainability discussion:
Europe is ahead of us on this. The EU is poised to ban unsustainable
palm oil.
Waste oil is probably the most sustainable feedstock available today.
The rendering industry should be encouraged, and be getting the same
subsidy as the virgin oil producers - period. Lobbying efforts should
push governmental support for biofuels in direct relation to their
sustainability. Just as the Renewable Fuel Standard credits on a sliding
scale (poorly, mind you), subsidies and "kudos" should go to sustainably
produced fuel of all types. The first step is to establish a working
group for the purpose of establishing sustainability. The first round
can be a simple energy return formula, with later tweaks to cover full
lifecycle emissions.
The NBB needs to support the grassroots community better. Companies like
mine (biodiesel distributor, renderer, etc) are out there giving blood
sweat and tears to an industry that appears to care little for us. There
needs to be a much more fleshed out 'small business' membership and a
seat at the table.
Personal anecdote: with input from a single informed citizen (me), my
city government changed their biodiesel bidding process to exclude
unsustainable palm - over 5 million gallons would have been imported
this year if I had not intervened. Once customers really understand the
issue, they WILL act responsibly.
Company anecdote: Texas' environmental regulator has effectively banned
the sale of blends of biodiesel over B20 in most of the state for
environmental reasons. They are cutting off their nose to spite their
face by implementing a heavy handed approach to NOx reduction. If we
comply, we go out of business. If we don't, we face huge fines and other
sanctions. The NBB needs to work harder to educate regulators in local
regions, possibly by establishing regional or state chapters with
responsible parties to engage these agencies in meaningful (ie without
lawyers) dialog.
My top 3 daily issues (had to put in 4):
-demand. There is simply not enough demand for biodiesel at a
distribution or retail level to support a real business in many markets.
-funding. It takes a lot of money for permits, rent, insurance, and
equipment. Adequate funding for the extended period of time it takes to
build a market is hard to come by without selling your soul. We spend
over $1000 per month on what we call "shop supplies" - random plumbing
parts, filters, small equipment, etc that we can't depreciate and will
probably last a year or two tops.
-talent. There are very few people that have the combination of talent,
ambition, business acumen, and experience to make a business like ours
work.
-time. Trying to hold down a 50 hour a week day job AND run a business,
while trying to have a family life (forget about a social life) can be
very draining. Ask my wife about my 3 week "honeymoon" that I spent all
but 5 days at the shop...
My top 3 big picture issues:
-the public does not understand biodiesel. Let's spend some of that big
soy money and put some commercials on TV and do some cross country
tours. Promote the nomads traveling the country on biofuels with
sponsorships.
-regulatory people do not understand biodiesel. Establish a rendering
standard that does not allow for selling into the feed market,
eliminating a ton of red tape for those of us exclusively in the
biofuels industry. Carry the federal rebate to B100, eliminating all B99
blends from the market (and all it's associated headaches).
-vehicle manufactures do not understand biodiesel. Put R&D folks from
major car manufacturers in a room and make them say why they
wouldn't warranty their vehicles when used with pure biodiesel. Push for
specialty dealers that are trained on biofuels.
[bonus personal anecdote: A customer called upset because their 2005
Jeep Liberty CRD had died on the highway, putting their life in
jeopardy. After her frantic call, I took the day off work to talk to the
dealer about what was going wrong and try to help. The dealer's mechanic
said "it smells like rancid oil and has fat globules in it. We need to
drain the tank and flush all the lines, for $1000". I went to the dealer
and found that the smell was good B100 from WVO feedstock, and the "fat
globules" were just the glue dots holding the paper filter together (we
took it apart with a saw to confirm). The dealer conceded, changed the
fuel filter, and the customer was on her way. The truth was, it had been
12,000 miles since her last fuel filter change, and Jeep recommends
every 10k for that vehicle.]
On a somewhat somber note, the reality is that there is not nearly
enough sustainably produce-able biodiesel in the world to meet the
global demand. We are in a catch-22, in the sense that while we want to
displace as much petroleum as possible, the technology to do so in an
environmentally friendly manner is simply not here yet. With 300 billion
gallons of diesel consumed anually worldwide, but only 30 billion
gallons total oilseed production, we are nowhere in the realm of being a
real force. With that in mind, all that we do today, in our world of 60
gallons per acre soybean oil, government subsidies, oilseed prices
tracking that of diesel, and current feedstocks almost entirely
dependent on massive amounts of petroleum products (fertilizer and
fuel), we are only setting the stage for the next generation of
biofuels. Biodiesel from algae, ethanol from waste, and other biofuels
will take our planet to another level of energy efficiency and
sustainability. For now, we need to keep it in perspective and recognize
that we are only bridging the gap between a half dozen generations of
mindless waste and a future of true renewable fuels. The "solutions" we
come up with now are almost petty in light of the tremendous limitations
of our current technology.
Here's one more thought...on the "what can we do better" question - I'd
like to see the Sustainable Biodiesel Alliance come together to the
point where companies like mine can join and be part of it. We heard the
announcement in San Antonio last year (I won't be able to make it to
Orlando this year), and have been chomping at the bit to know where we
fit in. We are part of the National Vegoil Board, a similar type of
industry association that has also done very little to get off the
ground. Although we attended last year's conference, we weren't invited
to this year's. I know it was not intentional, but I didn't get a single
email or follow up, even after attending the Co-op conference in
Colorado in July. If the organizational side of the SBS/SBA is relying
on folks like us to remember to check in, there will be lots of us who
are too busy until it's too late. A better job can be done of networking
and staying in touch with the grass roots companies and people across
the country, and working to bring us together. I know of no other
company in the entire state of Texas attending - not Houston, Dallas,
San Antonio, or Austin. Hopefully someone will be there to represent,
but the lesson is clear - reach out to former attendees by subscribing
them to newsletters, sending an occasional email, etc.
Thanks so much for the work that you all do on behalf of an admittedly
rag tag group of individualists scattered across a huge nation. We all
have our regional issues to deal with, and without forums to address
them, we will begin to lose traction and fall into disarray. It is only
through organization and structure that we can hope to have some impact
on this incredible monster of energy usage.
Jason Burroughs
DieselGreen Fuels
Visit our website <http://www.dieselgreenfuels.com>
512-391-0569
512-992-8677
emily at sustainable-biodiesel.org wrote:
>
> I have been asked to speak at the 2008 NBB Opening General Session, to
> contribute a perspective from smaller producers, the sustainability
> community, and alternative feedstocks. After a welcome from Joe Jobe
> and Ed Hegland, there will be a discussion among Ed, Gary Haer (REG),
> Graham Noyes (Imperium) and myself (SBS, Philadelphia Fry-o-Diesel,
> and The Energy Cooperative) about some of the issues facing the
> industry now.
>
> This discussion is a forum to acknowledge some of the challenges
> facing our industry, some of the highpoints and trends of 07, and talk
> about best practices, messaging, and policies that we can employ in
> 2008. This is also a meaningful opportunity to communicate the message
> of sustainability to a very broad audience.
>
> I view having a seat at this table as the result of our entire
> community’s tireless hours advocating for sustainability and making it
> happen on their home front. This is a great opportunity for our
> community, I want to do my best to represent it well. A big part of
> this means getting feedback from you. In the hopes of kick-starting a
> discussion here, I have listed out several questions - would you take
> a moment and reply to some or all of them?
>
> * What it is that you would like to communicate in this forum?
> What issues would you like to see brought to light?
> * Topics covered will likely include: Feedstock issues, Government
> policy, Environmental sustainability, Financial sustainability,
> Implications of Energy Bill mandate as related to fuel quality
> issues, New technologies, Food vs. fuel issues. Are there other
> issues you would like discussed?
> * Do you have a point of view or experience to share with respect
> to any one of these topics? Having real life anecdotes will be
> helpful in illustrating certain points.
> * What do you think about the state of the industry?
> * What could we do better?
> * What are your top three challenges on a daily basis?
> * What are your top three big-picture challenges?
>
> I strongly encourage you to respond on list so that we can start a
> constructive discussion here. However, I also welcome feedback
> directly at emily at sustainable-biodisel.org
> <mailto:emily at sustainable-biodisel.org>. The conference is only 3
> weeks away, so the sooner you can respond the better.
>
> Thank you for your thoughtful contributions, and I look forward to
> hearing from you.
>
> Sincerely,
>
> Emily Bockian Landsburg
>
> SBS Organizing Committee <http://www.sustainable-biodiesel.org/>
>
> Philadelphia Fry-o-Diesel <http://www.fryodiesel.com/>
>
> The Energy Cooperative <http://www.theenergy.coop/>
>
> ------------------------------------------------------------------------
>
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