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for ethanol, and subsequent analysis indicated that the ideal site loca- tions were near water transportation and closer to end-user markets. I believe industry development from that date to this indicate that we were not the only people to figure that out. MM - what are the advantages of


bio fuels? Different biofuels have different


advantages, for example ethanol and biodiesel represent some similar and some different advantages over their pure petroleum alternatives. Speaking only about biodiesel fuel, the product has a higher lubricity than its low sulfur petroleum cousin. It also has a better emissions profile, and of course there is always the discussion about reducing reliance on foreign petroleum. Biodiesel has the added advantage, that given a properly modified engine, it can be used as a pure product rather than a blend. Current blends actually run between 2% and 5% biodiesel fuel. MM - what were the initial pro-


duction volumes projections? The nameplate capacity is 45 mil-


lion gallons per year. That is based on running a particular feedstock called Refined, Bleached and De-


odorized soy bean oil. The plant was designed to run virtually any feedstock (unlike most of the plants built up to that time). The more fatty acids in the feed stock the lower the capacity of the plant, as a basic rule of thumb. MM - what are the actual produc-


tion volumes? I can’t answer that question. I


have no idea what feedstock they are running, but I do know that they have been running at capac- ity—which could be anywhere from 40-48 million gpy depending on the feedstock. MM - what is the principal source


of raw material? The plant manager and procure-


ment specialists make the decision on feedstock based on the spot price of the alternatives in the context of the processing time and cost that pertain to the particular feedstock. For example, beef tallow can make a very effective fuel, and can usually be had for less per gal- lon than soy bean oil, but it requires more processing time and produces more by-product—both of which ef- fect the final decision. MM - where is the customer base? Most of the production was used


East of the Mississippi, although significant amounts were shipped to Canada and Europe. The custom- ers are primarily fuel blenders (fuel terminals)operated by the major oil companies. MM - does any product go into


the marine sector and if so how much? As of my departure, no. This is


due primarily to the small number of vessels burning low-sulfur MGO; I suspect that will be changing, but as long as there $1 gallon blenders credit for domestic use, the supply will go in that direction. MM - how do you see bio com-


pared to LNG going forward? Both natural gas (in all its forms)


and the recent petroleum finds in North America will likely dampen the growth of the Biodiesel mar- ket, but when all is balanced, pure biodiesel remains a renewable fuel. Beyond that, natural gas has much to commend itself in terms of emis- sions and cost over liquid fuels. The flip side of that is that liquid fuels are easy to transport and store with a much higher flash point that influ- ences many safety decisions.


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