Research Project Summary Information
Biodiesel for Electrical Generation(ST10557-1)
Biodiesel Industries, Inc.
Biodiesel Industries, a California-based company, hoped to develop a market to sell locally produced biodiesel to the electrical generation market, beginning with B5 (5% biodiesel and 95% diesel). Biodiesel Industries, though new to New York State, has commercial operations elsewhere in the United States. The B5 blend is not common in the traditionally conservative heat and power markets.
Key project objectives included hiring a sales and marketing expert, developing a marketing program and business plan, resolving regulatory issues, holding customer meetings, and growing their customer base.
As the use of biodiesel in electrical generation grows, the most apparent indicator of the future success of the project will be the amount of electricity produced from biodiesel blend – 12.5 million gallons/year of biodiesel would be needed to achieve a B5 blend level of biodiesel in New York State’s diesel electric generators. Mitigation of air pollution will be another direct measure of success. Biodiesel diminishes both SO2 and CO emissions. This project also could lead to significantly reduced illegal dumping of waste cooking oil into the sewer system, currently estimated at 64 million pounds/year.
Biodiesel Industries prepared a marketing and business plan, and developed marketing materials for use of biodiesel blends in backup generators. The effort was dubbed the “BioGenSet” project. In support of BioGenSet, brochures were printed, a website was created, and promotional memory storage devices were distributed. Hundreds of potential participants were contacted regarding the use of biodiesel blends in backup generators. A workshop was held, speaking engagements were performed at other workshops, meetings were held with promising strategic contacts, door to door cold calls were performed, and information was distributed in other ways. Contracts were secured for 13 participating locations (more than the five targeted at program onset). Though early in development, BioGenset was deemed a promising and sustainable outlet for biodiesel.
In addition, to address the potential for increased biodiesel production in New York State, Biodiesel Industries completed a feasibility study, financing plan and construction plan, and outlined regulatory issues associated with biodiesel manufacturing. Biodiesel Industries feels the limited availability of feedstock remains the largest barrier to biodiesel production, and hopes to establish a cooking oil collection program as a part of their feedstock development strategy. Longer term strategies for feedstock development include crops such as castor and algae.
Biodiesel Industries, Inc.
426 Donze Ave
Santa Barbara, CA 93101
NYSERDA Contact Information
R&D - Environment & Energy Res