It is never okay to quit.

July 29th, 2010

I know that those of us at the cooperative represent a collection of talented, dedicated, and intelligent individuals on the forefront of advancing our local community towards sustainable energy independence. Of course being talented, dedicated, and intelligent does not guarantee success every time, and the simple fact of the matter is that we are experiencing some growing pains.

There are a thousand outstanding projects, and due to the nature of our location, our breadth of services, and our open door policy there are at times a thousand threats to focus.

We are working on quality and quality control, inventory tracking, accurate product delivery, and installation of additional storage.

Our first team of interns has settled in, made temporary homes, and very soon will begin to move on to begin living their lives off project.

We continue to attract homebrewers to the plant, sharing ideas, swapping stories, and supplying fellow enthusiasts with a solution or piece of equipment.

There is still no credit, although the U.S. House Committee on Ways and Means recently released a draft version of the Domestic Manufacturing and Energy Job Act of 2010 includes an extension of the federal excise tax credit through 2011 as well as a retroactive reinstatement for all of 2010.  There will be some time before this draft can be tailored into law if ever it makes it that far.

 We are a long way from where  we will be six months from now. We are farther away from where we were six months ago. Two steps forward. One step backwards.

It’s okay to fail.

It’s never okay to quit.

Make it a better place!

Todd

Time for change.

July 8th, 2010

It has been 81 days since oil from the ruptured Deepwater Horizon began to stream into the Gulf of Mexico. In that time,  BP has skimmed or burned about 60 percent of the amount of oil it promised regulators it could remove in a single day.

Prior to the event, according to a Washington Post article,  BP had claimed a cleanup capacity of  just under 492,000 barrels per day. They have averaged over the course of this disaster under 900 barrels per day.

Many of us have spent the last few years trying to spread the word about global warming. Few of us imagined that an accident of this scale was not only a possibility, but an eventual certainty.

I have been fielding questions recently from the press and other interested parties, mostly interested in discovering if I believe this accident will incite the nation to the immediate adoption of an energy policy that truly promotes the adoption of biofuels.

I do not believe so, not because I believe that the general public will not want better solutions, or that the politics of energy are too complex and intertwined with the system of campaign financing to effect substantive change in this arena.

I do not believe so because we as a nation and member of the global community do not have a viable replacement for petroleum. We have solutions that will move us towards energy independence as it pertains to our importation of foreign oil. The latter is fundamentally different than supplanting our use of petroleum.

I believe, as I suspect the majority of us working in this sector do as well, that our use of petroleum will increase over the next decade. Currently approximately 250 million vehicles are active on the nations roads. Of that, 18 million 18-wheelers are responsible for almost 50% of our fuel utilization.

According to the Department of Energy, 94% of our commercial goods are transported in seagoing vessels, trains, and trucks that rely on diesel fuels for power. The technological and environmental issues facing the inhabitants of the afflicted regions are in part a result of failed oversight, and they also serve as harbingers exposing the fundamental flaw in our national approach to energy. The problem is not just the source of our energy, albeit foreign or domestic, but the type of energy itself.

Big oil may not ever warm to the notion that farmers, renderers and recyclers may inherit the mantle that is currently occupied by the deep oil rigs and land-based drilling that currently dominate the fluid energy industry, but that is what will be necessary to make biofuels and other energy alternatives viable in an appropriate timeframe.

This is the time.

Now is the time for us as a nation to come together and enact the policies and incentives necessary to accelerate and maximize the production of clean energy in its myriad forms.

Instead of looking for a single solution, as a nation we should strive to explore and implement every viable technology and let the marketplace decide which energy solutions are worthy for major adoption over time.

We used to talk about global warming and the threat of military conflict as the inevitable dire consequence of a dependency on foreign oil when a more imminent threat may simply be toxic crude washng up on your local beach, poisoned sea life that is toxic to eat, and millions of gallons of toxic dispersants injected into the oceans with competely unknown long term consequences.

What is happening in the Gulf of Mexico is tragic. It is time for us to come together as a nation and commit to change.

Make it a better place,

Todd

Oil spills, biodiesel calculators, and the CDFA.

May 31st, 2010

Like all of us I have spent the last few weeks observing the environmental horror that has befallen the Gulf Coast of Mexico. Nothing less than catastrophic ill can result from an oil spill of this magnitude. The environmental costs related to this accident will span generations and will alter commercial fishing and the local economy for the forseeable future. I am proud that the majority of biodiesel producers have operations that pose environmental risks several orders of magnitude lower than what we are seeing with events in Louisiana.

Clearly we need to develop clean, renewable, less perilous energy solutions.

We have been working very hard over the last few weeks.

We somehow finished a grant proposal, conducted a seemingly endless stream of intern interviews, cut man-ways for tanks, installed racking systems, and began a general reorganization of the plant. We made batches, fixed batches, and in one case gave up on a batch of fuel. We visited customer sights, delivered solutions, received a visit from an agent from the California Department of Forestry and Agriculture (CDFA) who inspected our facility towards fulfillment of the quarterly inspections required annually to maintain our rendering license .

I have been working on an update to a biodiesel recipe calculator. Feel free to take a look (click here for the Biodiesel Recipe Calculator) and email me your comments here. I hope to perform a major overhaul of this in the next month or two. If you have any suggestions for feature additions feel free to let us know.

Back to the Gulf Coast horror. We have been working on an animal friendly surfactant to assist with cleaning victims of the spill. The list of potential recipients includes turtles, seals, dolphins, pelicans, and a host of other creatures too numerous to enumerate.

HR 4213 is on the verge of passage, implementing amongst its other mandates the retroactive extension of the biodiesel excise tax credit. Many hope for passage by mid June. Reinstatement of the credit will not be not sufficient to drive major industry growth.

Make it a better place,

Todd

Steadily increasing.

May 2nd, 2010

The complexity of our design-build projects is steadily increasing. From constructing continuous flow methanol recovery units to welding 316L stainless steel manifolds for 4″ diameter pipe connections, we are asked to devise an ever-increasing array of solutions for a growing number of clients.

We also are awash in internal projects; the construction of an oil dryer; fabrication and installation of a new ion exchange column; the occasional major pump repair.

Although projects abound our first priority remains ramping up production. It is a work in progress, a process that requires patience and fortitude in equal measure. There are periods where progress seems at a standstill until a momentary breakthrough, sometimes a result of intellect but perhaps as often the consequence of simple dumb luck, leads to a process improvement or innovation.

We are in the process of collecting and reviewing our internship applicants for the Summer 2010 program. I must say that I am pretty anxious to start the final interview and acceptance process. Our interns have some very interesting and challenging assignments to look forward to here.

My hope is that over time Promethean can help develop some of the future leaders of clean, sustainable and renewable energy. I am sure making this hope a reality will also require some additional measure of patience and fortitude. I guess I better try to keep in mind that life is a journey and not a destination.

Make it a better place!

Todd

Accelerating Innovation

April 22nd, 2010

We may not have a large budget for R&D, but as an organization we are strongly committed to it.

The pursuit and development of intellectual capital are cornerstones to our long term sustainability. The development of new products, services, and solutions fuels our future.

This pursuit oftentimes ends in failure, but it also prepares us to face the rigors and growing pains any young and rapidly expanding organization faces in today’s economic climate. The focus is to learn and recover quickly from our failures, which requires a certain level of organizational maturity in our data collection and communication process that remains a work in progress for us here.

We are actively pursuing grants, refining our manufacturing process, evolving our systems, and preparing to operate at full speed. We still have several build projects for both internal use and external delivery, including constructing an oil dryer, outfitting a new ion exchange cannister (this will be beautiful!), and the fabrication of another of the specialty sight glasses dotting the plant that serve as harbingers of ester quality.

We also find ourselves engaged in a few of the garden variety plant modifications that  one finds necessary as one realizes that a sample port in the spot you thought would never need one is now a high priority.  Engineering reviews, oil wrangling, computer installations, vacuum pump repairs, and samples testing add to the abundant list of tasks completed, in process, or in queue.

Finally, we are in the midst of intern recruitment and selection.  Anna is really in charge of the recruitment part. We are excited at the level of response we have received, and I am convinced that this years selection will yield a force to be reckoned with during their summer on the glorious project that is Promethean Biofuels.

Make it a better place!

Todd

Exciting times.

March 20th, 2010

It’s been exciting times here at Promethean of late.

Lots of system testing, shipping a methanol recovery unit to some friends (who also happen to be customers), working on the computing infrastructure, and tending to a variety of issues both big and small that have a tendency to alter the landscape of each passing day, occupying it with tasks you never intended to take on to the sacrifice of the stuff you really intended to accomplish.

My focus in the next two weeks is on improving our technology and operations infrastructure here at the plant.

We were disappointed to find out this week that the Small Business Innovation Research grant we applied for was not funded. We had submitted a grant to develop a test next generation biodiesel film evaporatorfor  use on the farm. A solution like this would be something of a game changer in the small to mid-size farm environment. The grant included a component of market research to find some guidance for how much interest the farm comunity would have in this sort of solution.

USDA said nope. Denied. It was a small grant request, but as everyone who has applied for a grant knows a good amount of work is required to submit a complete and award-worthy proposal.

Well, if at first you don’t succeed….

Make it a better place!

Todd

A visit from the Dogpatch!

February 28th, 2010

Michele Swiggers and Robin Gold of San Francisco’s Dogpatch Biofuels came to visit the plant a few days ago.

These two started Dogpatch in San Francisco as a B100 filling station.

We get a lot of visitors to the plant nowadays, but I was particularly happy to see these two industry heroines. We spoke a bit about the consequences of the credit expiration, how are tanks have never been filled to capacity, the IRS, and their planned journey to the desert.

Dogpatch Biofuels is a dedicated biodiesel fueling stop, with an 8,000 gallon above ground tank and a retail pump. They also sell Eco-conscious beverages and snacks, as well as fuel additives.

If you have a chance to go out and support these two please do so. I know for my next visit to San Francisco a stop at their little corner of heaven will be a must.

Make it a better place,

Todd

Producers must re-register plants under RFS2

February 28th, 2010

Buried in the middle of the RFS 2 regulations published in February by the EPA are the new requirements for producer program registration. The rules as posted are only the proposed modification to 40 CFR 80, pending publication of the final regulations in the Federal Register, a legal requirement for final adoption.

If you are not already aware, even if your facility was registered under the first version of RFS, it must re-register prior to July 1, 2010 to participate under the auspices of the new program.

The new producer registration requirements are detailed in a densely packed section of the 120 page document.

Occupying roughly four (4) pages, the requirements include a description of the type of fuels produced at the facility (or possibly produced with little modification to the production process),  feedstock used in the production process, the co-products produced with each fuel type,  and the submission by a state licensed, third party, chemical engineer the results of a careful review of your facility process and capacity expectation.

These requirements come at a time when producers are particularly sensitive to issues surrounding cash flow and operating costs, and expenses like a third-party engineering review may seem ill-timed.

RFS 2 participation is important to us here at Promethean. It is a personal initiative for me and I am focused on preparing us to meet the July start date.

There still exists a subset of mysteries whose answers are yet to be revealed by the EPA regarding what the EPA will specifically require as an ultimate demonstration of conformance.

I hope clarity is imminent.

Make it a better place,

Todd

Another bill fails, but we cannot afford to.

February 15th, 2010

It’s the middle of February 2010.  The tax credit expired in January. The powers that lobby have been searching for a legislative mechanism to make it retroactively effective.

The media has begun to report that a now spend-shy Obama administration is entering year two with the agenda of looking less agressive when it comes to deficit-building.

Time also seems to be supporting a sort of congressional priority-awareness when it comes to jobs creation.

The most recent effort to reinstate the biodiesel tax credit was embedded in the Hiring Employees to Restore Employment Act, or the HIRE Act for short.  This piece of legislation when authored by Senators Baucus (D-Mont) and Grassley (R-Iowa) looked to be an excellent bipartisan shot at reinstating the biodiesel industry’s much desired credit. But last week it was announced that Senate Majority Leader Harry Reid (D-Nev) would move forward a version that removed the majority of tax credit inclusions, including the biodiesel tax credit. The reasons for this lack of support are currently the subject of intense speculation, but one possible reason put forward by Nicholas Zeman in his recent article for Biodiesel Magazine resonated with me.

Most biodiesel plants have been constructed to limit the number of employees required to operate them. A certain baseline is required to produce commercially and, after that, personnel requirements vary based on the level of plant atomation, oil collection and delivery receipt approach, testing requirements and equipment, continuous or batch operation, and access to capital. The latter means that no one can say if one job is generated per 1,000,000 gallons produced  or per $1,000,00 in revenue per year.  My personal experience indicates that neither is the case.

Mr. Zeman and his sources speculate that one possible reason is that the tax credit would do little to generate large numbers of new jobs at biodiesel plants, which have most likely been designed with efficiency and reduced need for labor. Of course, as I have said in prior posts in my opinion the credit does little to help the producer and serves primarily to support feedstock suppliers in the determination of a floor price for their product.

That said, it may serve to support farmers, and that may be an area Congress would be better served to consider, although farm jobs may not represent what is currently being considered as new jobs in the “green” energy sector.

It will take some time to introduce the credit extensions in another bill. It may be better if the credits are part of an entirely separate energy package.

What we all need to realize is that other countries are moving forward at lightning speed with their own biofuels programs. America has already given up its manufacturing dominance in many sectors. We cannot afford to let renewable energy be next.

We cannot afford to fail.

Make it a better place.

Todd

On biodiesel, feedstock, and production as a service.

February 8th, 2010

This week the National Biodiesel Boards annual conference will be held in Texas.

With last week’s release of the EPA’s final rules related to RFS 2, a biodiesel mandate will be in place this year.  I suppose a good deal of time will be spent discussing the mandate, the future of renewable identification numbers (RINS), and the current situation with the lapsed excise tax credit.

But whether or not a new mandate is in place or the excise tax credit returns, the core industry problem remains; feedstock.

The life blood of any biodiesel production plant is feedstock. Whatever the feedstock, be it virgin vegetable oil, yellow or brown grease, or animal tallow, in general it must be tracked and prepared for its future conversion to methyl esters.

Feedstock represents the majority of the cost of operation, and its secure and consistent acquisition is a daily challenge. Preparing the oil in a way that facilitates its consistent conversion requires the development and maturation of a carefully coordinated system of processes and practices that allow incoming oil to be collected, cataloged, tested, categorized, filtered, de-watered, neutralized, at times blended, and stored prior to processing.

Promethean is fortunate to have a relatively large facility space, but early  decisions made about our approach to storage has meant that the focus here is on high throughput.

It is easy to build excessive capacity in the biofuels arena and it is more important to conserve cash at startup than to spend it on potential future capacity. The issue here is that we have recently been approached by groups or organizations that want us to stretch the limits of our capacity. Although I am a proponent of service delivery based on just in time manufacture, in this industry issues related to transportation are relatively common, and it is best to have a cushion for problems that may arise from timing or the myriad other things that can interfere with the scheduled drop off of feedstock or pick up of finished product.

I am not conservative. I am a risk taker. The proof of the latter is my participation in this industry.

Feedstock prices in California remain high, and may remain so over the next few months.

At Promethean we view the production of biodiesel first and foremost as a service. This view means that we must constantly explore ways to add value to our customers as well as reduce the costs related to production. Focusing on manufacturing as a service has other consequents as well, some yet to be discovered.

As it stands, an increased level of vertical integration is required in our collection approach and infrastructure, since it is obvious that without the ability to obtain some percentage of the feedstock required for production we cannot sustain-ably render our services in the long term.

Problems are opportunities, and the feedstock problem for a plant of our scale is easily solved with hard work, a commitment to service, and time.

Make it a better place!

Todd