Virginia Embraces the Business of Biodiesel
Richmond, November 27
Concerns about global warming and America’s dependence on foreign oil have caused Virginia cities, businesses and individual drivers to look for alternatives to petroleum when filling their tanks. Alternatives, like biofuels made from organic material, are becoming popular in the state. Because more commercial and municipal fleets are using biofuels, companies are springing up in Virginia to meet that demand.
According to a recent report by the National Biodiesel Board, 165 companies are actively producing biodiesel across the country, with an annual capacity of 1.85 billion gallons. Virginia has four plants with annual production capacities that total 22 million gallons, and two more expected within the next nine months. This is just a drop in the 20 million barrels of petroleum used by the U.S. each day.
Across the country, 80 companies report their plants are under construction and scheduled to be completed within the next 18 months. This means that potentially the capacity of the biodiesel industry in America will reach 3.2 billion gallons by February 2009.
Chesapeake will have the country’s largest biodiesel plant with a production capacity of 320 million gallons. Scheduled to be completed in about nine months, the plant is expected to cost $532 million. Smiling Earth, a California-based company received approval from the Chesapeake City Council in October. The plant will be located on the south branch of the Elizabeth River on a 44-acre industrial plot. The seeds of a Central American plant called jatropha will be the feedstock for Smiling Earth’s biodiesel.
Smiling Earth’s size will make it the Anheuser- Busch of biodiesel, but Virginia also has micro-breweries producing this fuel. One such company, RECO Bio-industries, has been producing biodiesel in Richmond since January 2007; its plant is located in Shockoe Bottom. The biodiesel research laboratory and plant are in a former steel factory reclaimed by RECO.
Rob Caudle works in the RECO lab and plant. “We use what most people would call a primitive way of doing it. I call this our ‘hippie garage rig on steroids.’”
The plant has a capacity of 8,000 gallons per batch, with an ability to produce 10 million gallons a year. Every piece of equipment was reclaimed from a previous life. The main tank was used in food production, and another was from a brewery.
As production has increased, so has demand. Arlington County began using biodiesel in its school buses three years ago. The Greater Richmond Transit Co. began using biodiesel in July 2006.
The Charlottesville City Council has mandated that its municipality take further steps to decrease its environmental impact. The city has a fleet of 675 vehicles, about half of which are diesel-powered.
“In April 2006. we decided that we would like to do a pilot program,” said city fleet manager Jim McClung. “Our goal is to have everything burning biodiesel by January of ’08.”
All of Charlottesville’s diesel school buses are now powered with 20 percent biodiesel, known as B20, reducing the harmful emissions to which school children are exposed.
Watchcard Industries is a commercial fuel network that builds unattended fuel stations that are accessed by account cards. Commercial drivers have access to pumps in Charlottesville that contain B20. In Richmond, the pumps have 5 percent biodiesel (B5).
“The reason we are marketing (the B5) is because most of the engine manufactures have required that to be the maximum amount used,” said James Offie, a spokesperson for Watchcard Industries. “We would like to have (a higher) ratio as we do in Charlottesville, but we try to proceed a little cautiously. We don’t want to cause our customers to have problems with their warranties.”
One problem with biodiesel is that it is a powerful solvent. Solvents can breakdown the rubber seals and fuel lines that are in some vehicles. The warranties of vehicles without synthetic rubbers could be voided if owners use the wrong ratio of biodiesel.
Some benefits of biodiesel use include its reduction of harmful emissions, and its increase in engine lubricity. Biodiesel is also nontoxic and biodegradable. The biggest attractions are that this fuel is renewable, carbon-neutral, and domestic.
According to the U.S. Department of Energy, America uses 20 million barrels of oil a day and imports more than 55 percent of it. Figures of this huge demand often lead to debates about the viability of biofuels. Opponents say that biodiesel will never be able to meet the demand. Still other opponents argue that acreage dedicated to raising crops for biofuels will displace crops for food production. Cold weather gelling of biodiesel keeps many skeptics from embracing the technology as well.
RECO’s Caudle revealed some of the hard facts about producing biodiesel in today’s market. “Your total cost of making a gallon of biodiesel is $3.55 if you’re making it out of soybean oil. At $3.55 a gallon, you look at the market price of $3.35 a gallon. So, if you make biodiesel, you’re going to lose 20 cents a gallon with soybean oil.” RECO now uses poultry fat for its production.
With large plants like the one expected in Chesapeake, which will produce huge amounts of biodiesel, it may become harder for small producers like RECO to make a profit.
New research about waste oil, winter seed crops and even algae for alternative sources is coming to light. It is hard to predict what the future of biofuels will bring. No matter what direction it takes, it is clear that Virginia cities and businesses are willing to adapt when it comes to alternative fuels.
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