Biodiesel Information

Thumbnail Sketch of Biodiesel

What is biodiesel?

Biodiesel is a clean burning alternative fuel produced from organic feed stocks such as animal fat or vegetable oil.  Pure biodiesel, denoted as “B100”, contains no petroleum, but can be blended with petroleum diesel to create a biodiesel blend.  These blends are denoted according to the percentage of biodiesel contained.  For example, B20 is 20% biodiesel.  In its pure form, biodiesel is biodegradable, nontoxic, and essentially free of sulfur and aromatics.

How is it made?

Biodiesel is made by separating fat or oil into two products, biodiesel and glycerin, through one of several processes.

The most common process uses alcohol and a catalyst to chemically separate the feedstock.

The newest process being explored is cavitation, which utilizes a cavitating pump to accomplish the separation by creating high pressure and temperature.  Advantages to this process are reported to be:

1. Faster process
2. Lower cost

Equipment vendor (Hielscher)

What are the keys to profitability?

1. Feedstock cost - composes 70 to 80% of selling price
2. Disposal of glycerin - cannot be dumped

Are there financial incentives?

There are federal tax credits available to Blenders and Agri-Producers of biodiesel.
There is a Texas state incentive for producers.
There may be carbon credits available under certain conditions.

What are the legal requirements to manufacture?

Biofuels continue to gain interest, but the permitting process in Texas is not well defined.  A summary is found below.

Where can I get help?

This center has worked with several clients to obtain the necessary permits to construct and operate a biodiesel plant.  Our services are free and confidential - to request our assistance, please go to the following link and complete the online client form.  There is no charge or obligation.  Online Registration

Summary of Requirements

1.                  NAICS classification number

2.                  TCEQ permits needed

a.       Air discharge

b.      Wastewater Permits

City sewer connection is permitted through city

Disposing personally through land application requires Land application permit

Discharge to drainage way that leaves property requires TPDES permit

c.   Petroleum Storage tank permits

d.      Storm water permit

                                                                           i.      General permit

                                                                         ii.      Construction permit 

3.                  Methanol permit - may be needed depending on the technology employed.

4.                  IRS form 637 for excise tax

5.                 EPA Forms

6.                 Texas Motor Fuels license form

7.                 ASTM lab must certify the bio-diesel in order to use it or sell it in Texas.

Engineering stamp

            Anyone that is already a Licensed PE can apply for their Texas license.

Texas Department of Agriculture Incentive Program

            This incentive program is designed to help Bio-Fuel producers.  A plant is eligible for participation for up to 10 years after it starts production.    20 cents per gallon will be paid to the producer  for up to 18 million gallons per year.

Requirements for eligibility in this program are as follows.

1.      Copy of IRS form 637 and an approval letter showing registration number.

2.      Confirmation of EPA registration under 40 CFR Part 79

3.      Alcohol, tobacco tax and Trade Bureau permit, if applicable

4.      Copy of all TQEC Plant permits, including Air discharge, Wastewater Discharge and Storage tanks permits

5.      Copy of Texas Motor Fuels License Issued by Comptroller of public accounts, if applicable

6.      Documentation from an independent CPA firm, Bank, or tax appraiser showing an approximate capital investment in the physical plant and a statement that the plant is a permanent fixture in the State of Texas 

Links

701 S Taylor,  Ste 118    Amarillo, TX  79101     e-mail    806-372-5151
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