POTENTIAL FOR BIODIESEL AS A COMMERCIAL ENTERPRISE IN CENTRAL FLORIDA

The State of Florida has joined the Green Revolution and Governor Charlie Christ is supporting all proper efforts in order to help global warming and new bioenergy resources.   It is now a matter of National Security so we don't have to depend on foreign oil, but it is also a matter of responsibility with our environment.

The State of Florida department of Agriculture is also quite active in supporting an infrastructure to develop a biodiesel industry with sufficient feedstocks, financing, processing equipment and public policies, specially in 2009, thanks to new technologies, the production of Biofuels no longer competes with the food lines.  Simply said, Ethanol and Biodiesel can now be produced utilizing harmful waste.   For example, Ethanol can be produced from a wide variety of organic waste and Biodiesel from waste vegetable oil, in fact one gallon of used cook oil dumped into the water system damages 1000 gallons of our precious drinking water.
 
A BIODIESEL INDUSTRY in Central Florida, could improve the economy at large, including rural economies, creates new quality jobs, specially at this time of economic crisis and uncertainty, helps protect national security and decrease greenhouse gas emissions.  Also, in Florida, Jatropha, among other crops are most applicable to production and conversion, along with waste g rease from the food service or processing industry.

At this time, no commercial biodiesel manufacturing facilities exist in Central Florida, consumption of diesel fuel is about 300,000 gallons/year and there are no known public outlets for biodiesel. The neighboring state of Georgia is currently leading all efforts to become the main Biodiesel manufacturer in the South East, however, Florida is in a prime location to produce this type of biofuel for local markets and even the South Eastern United States. 

Bolivar Biofuels, an Orlando based biofuels company, provides the following data on cost structure and current business enterprises that are helping to establish a commercial infrastructure for the biodiesel industry:

The major economic factor to co nsider for input costs of biodiesel production is the feedstock, which is about 80 percent of the total operating cost. It takes around 7.5 pounds of fat or oil to produce a gallon of biodiesel. If a feedstock (jatropha or Ricinus) is 13 cents per pound, the feedstock cost could be nearly $0.98 per gallon. Other important costs including plant overhead, labor and methanol, which must be added to the feedstock as part of the transesterirification process.  Waste grease is in the range of 5 to 10 cents/pound and would be the most economical for initiating a biodiesel commercial plant.   At this time, Bolivar Biofuels has its own technology which makes each plant completely auto-sufficient, with no harmful leftovers to the eco-system.

Research and industry efforts in Florida and several Latin American Countries including Colombia, supported by state and federal guidelines, and renewable energy programs, are developing new strategies and technologies to overcome barriers to production. One focus is a imed at producing higher value coproducts and establishing optimized business models.  Attention will be focused on more efficient uses of the seed meal, the crop fiber, and glycerin — a lower value by-product of biodiesel production that accounts for 20 percent of=2 0the total oil extracted from the seeds. Biolubricants and other biobased products are also the focus of development and marketing.

CURRENT BUSINESS LAUNCHES

Bolivar Biofuels, development and construction of 8 new plants are underway in Colombia, S.A, Dominican Republic, Costa Rica and in Laramie, Wyoming.   Also, in Central Florida a group of entrepreneurs and Jatropha growers in Central Florida have formed a company called Xenerga, Inc, to utilize this non-food plant as its main feedstock.  They have actually began construction of a Biodiesel plant in Indiana.   Bolivar Biofuels, is working on a business model based on purchase of used cooking oil for processing into biodiesel and biolubricants.   A feasibility study and business plan has been developed and the group is evaluating options to finance their projects.   They are also working on a plan to process yellow grease — spent vegetable and animal cooking oils, as well as Jatropha — into biodiesel in the Osceola County area. 

STATE RESOURCES AND GOALS

Despite the State of Florida's efforts to become one of the nation’s leaders in developing energy efficiency and renewable resources. The Florida Department of Agriculture has identified major limitations in the production process, particularly in Ethanol manufacturing due in essence to the large amounts of water required by Ethanol plants, a precious natural resource limited in the State.   Bolivar Biofuels reportedly, has new technologies available in order to surpass this limitation. 

Florida's tax credit and low-interest loan programs for all types of renewable resource projects is a plus. The State of Florida and some Counties presently buys B-20 (20 percent biodiesel blend) for some of their v ehicles fleet usage. The Governor has new initiatives on sustainability and global warming that support renewable energy generation and usage.
Political Leaders and Community advocates are presently leading a drive to develop a renewable energy action plan for the following decades (some of which will require legislation) that includes the following goals:

1) Requiring a 2 percent blend of biodiesel (B-2) in all diesel sold in Florida by the year 2010, growing to 5 percent (B-5) by 2010 and 20 percent (B-20) by 2025; 2) A goal of 15 million gallons of biodiesel produced from Florida crops; 3) Develop public support for extending the 50 percent property tax exemption for ethanol production facilities through 2016 and expand the exemption to include biodiesel facilities and biomass generation; and, 4) Develop public support for a new law that provides for a government approved volu ntary labeling program to identify "lower CO2" fuels at pump stations.

Oil seed extraction methods vary depending on the type of commodity being processed and the desired end product.  There are only two known plants in Florida which would be using a cold press or other extraction method that does not rely on solvents. The resultant extraction is less (80 percent or so), but wider options are available for the end products and there is less plant cost related to handling of solvents and environmental concerns.

According to experts at Bolivar Biofuels the potential for biodiesel entrepreneuring in Florida:
"The primary obstacles or challenges to biofuels in Florida include a lack of knowdlege by the public at large, mis-information on Biofuel production promoted by OPEC and some of its affiliates (for obvious reasons), infrastructure, processing and manufacturing that relies on incentives that create market pull and provide price justification to cover costs of production; challenges in siting and permitting; and no standard legal framework or templates for growers to use in structuring ownership and financing.

"Putting these projects together takes significant management, investment and coordination, along with technical expertise; diligent research into technologies and equipment applicable to specific projects; significant up front commitment to see the project through permitting, siting and financing — which can take years; and different forms of grower organizations — The needs and availability of feedstock in Florida is quite different from those in the Midwest and the traditional Ethanol and Biodiesel producing States, such as North Dakota, Iowa and Minnesota among others.