Trailer Mounted 3 Ton per day press
Summer 2006



First Road Fuel
Spring 2006
B I O F U E L S

Replacement of liquid petroleum fuels can be accomplished using agricultural commodities and waste products to produce ethanol, biodiesel and methane gas. Nebraska Renewable Energy Systems works to not only produce these materials in an efficient and effective manner, but uses only renewable energy in the process. This is most effectively done at farm scale and below, further fostering our belief in the viability of the decentralized model for production of energy where it is being produced, on the farm.

Biodiesel Production

Nebraska Renewable Energy Systems is the first licensed producer of biodiesel in the State of Nebraska and is in the forefront of commercial developments in the state. We have produced the first licensed biodiesel in the state using canola, soy (RBD and crude), sunflower, brown mustard, linseed, Waste vegetable oil, beef tallow and pork lard (animal fats grown on the energy farm). Both methyl ester and ethyl ester versions of these fuels were also produced. While on the surface a tremendous feat, it clearly shows the acute need for rapid development in this area in Nebraska. For information regarding producer licensing, review Biodiesel Producer Standards promulgated by the Nebraska Motor Fuels Department.

While Nebraska Renewable Energy Systems will continue to provide technical support and guidance for commercial undertakings in the state, we are convinced that the most effective model for biodiesel production remains with those that utilize agricultural raw materials, maximize local synergies and are focused on regional markets (farm/community scale). The beauty of the biodiesel model at this scale is that it represents the epitome of adding value to ag products at the producer level. The separation of the oil from the meal of the oilseed alone represents a doubling of the value of every pound of oil produced. Further refinement and conversion to biodiesel adds value up to five times the cost of production of the oil in the oilseed raw material.

While Nebraska Renewable Energy Systems is focused on the self-reliance aspects of renewable energy production, we also realize there is a difference between a hobby and a viable economic option. The former is a money pit while the latter cash flows itself or better. For those who like the sharpened pencil, try this. Soybean Oil (where you obtain one gallon per bushel) squeezed on the farm results in a cost of about $0.10/lb from the 60lb-$6.00 bushel.

After finding a value-added home for the remaining 52lbs of meal, processing biodiesel from crude soybean at $0.76/gal for oil and you have $1.46/gallon fuel after processing expense. With a dollar/gallon federal tax credit, a gallon of renewable biodiesel costs $0.50/gallon before taxes. Why aren't we doing this?

Nebraska Renewable Energy Systems is committed to supporting those who are serious about producing fuel using the local model and is currently consulting to groups across the nation who see the value in this model. However, our focus will always be on the great state of Nebraska. Further regulatory information and links are available through the biofuels page of the Nebraska Renewable Energy Association, www.Nebraskarea.org.

To learn about growing crops for better biodiesel, download our pdf.

Ethanol

The growth of commercial scale ethanol in Nebraska is growing by leaps and bounds after a long stretch of watching growth in surrounding states. Depite the prolific quantities of ethanol produced in the state, this material is not available to the general public. While large scale ethanol production is required before significant replacement of petroleum fuels can occur, the full value of ethanol production can only be realized when the feedstock producer processes this material for themselves. A $2.00 bushel of corn will produce 2.5 gallons of ethanol per bushel. On the farm, each gallon of ethanol produced should not exceed $1.50/gallon with a $0.51/gallon tax credit, this is $1/gallon fuel. Why aren't we doing this.

190 proof alcohol will perform admirably in properly equipped engines. The need for 200 proof alcohol serves only biodiesel production and mixing with petroleum unleaded. A benefit of current technology is that the ability to produce 200 proof alcohol economically has been greatly enhanced with reduced cost associated with the mass production of the required zeolite resin used as a molecular sieve.

Nebraska Renewable Energy Systems has experience with commercial ethanol production and is building farm scale ethanol capacity. We support fuel formulations like EM-95 that includes no petroleum 'reformulation'. Ethanol should be produced where the raw materials are grown. Because of the nature of the fermentation process and the need for BATF registration and denaturing, ethanol production on the farm is not for the faint of heart. We are currently working with several farm scale ethanol operations that have their roots in the 1970's. Stay in touch for updates or feel free to contact us.

Biomass

A buzz word to say the least, biomass is a very broad term used to describe new carbon based energy sources. While typically associated with cellulose, biomass includes products and material of biological (carbon-based) origin, which is quite broad. Examples of biomass derived energy includes ethanol, biodiesel, methane and wood heating. It is not associated with wind, solar, and geothermal energy systems.

Biomass energy is, however, derived from the sun but is stored in various forms by biological processes. Commonly known storage devices for biomass energy includes vegetable oils, starches, cellulose, proteins, fats, etc. Nature is amazing how it is able to store this energy at room temperature, without pressure, using only enzymatic pathways. Man cannot even use such methods to release the energy, not to mention, storing it.

Biomass encompasses much of what we have outlined in biofuels already, but also presents other opportunities to recapture the energy stored in new carbon. One of these methods is called gasification. This process uses combustion with an oxygen deficient atmosphere to reduce the new carbon (old carbon coal was used historically) components into the basic building block of organic chemistry called syngas. This syngas, comprised of H2 and CO2 can then be recombined as needed to form any liquid fuel desired. The Germans used this very effectively to make liquid fuels from coal in two world wars.

NRES feels that gasification of new carbon 'wastes' have a natural fit on the energy farm and we will be embarking on a research pilot to this end in late 2007. Contact us if you are considering such a project.