Archive for Biodiesel

Flying too Close to the PetroSun

Algae is the most promising source to produce oil in the quantities needed to displace any significant amount of petroleum. Can is Petrosun (Pink Sheets: PSUD) the company to fulfill this promise? I doubt it; follow the link to find out why.

Comments off

Two Renewable Energy Penny Stocks

I asked my readers at Alternative Energy Stocks what companies they wanted to know more about, and the two most requested were a transmission and wind company (CPTC.OB), and a company looking to make oil for biodiesel from algae (PSUD.PK)

Click through the links to read the results of my research.

Comments off

E85, but no Biodiesel

I was low on biodiesel for my Jeep while down in Denver ex-urb Parker last month, and know I wouldn’t find biodiesel there… so I only got a few gallons. But I was surprised to see this sign:

oct07-001.jpg

E85, but no biodiesel. That’s Parker for you. And I was just talking about an ethanol glut!

Comments off

Waste Oil Recycling Facility Blocked by NIMBYS in Industrial Area

UPDATE: Thanks for all your help! The zoning comission upheld Co Bioenergy’s recycling permit, allowing them to get back to the business of taking used oil and trap grease and turing it into something useful again.

—-

A local biodiesel company is in danger of losing its permit to recycle used vegetable oil in an industrial area of north Denver. Please send the following requests to anyone you know who might be willing to help out with an email of by showing up to the meeting tomorrow morning.

Doing any of the following will help!

  • Send an email to Janice Tilden, janice.tilden@ci.denver.co.us, stating your support for BioEnergy of Colorado’s oil recycling efforts in the Elyria nighborhood. Here is a draft letter (make sure to include your address and contact information.)
  • Call Ms. Tilden at (720) 913-3050 and express your support for Bioenergy of Colorado
  • Show up to the hearing to support Bioenergy.
  • When: Tuesday, October 2nd at 11AM.
    Where: Web Municipal Office Building
    201 West Colfax Ave. Room 2.H.14
    2nd Floor ­ ask for the Board of Adjustment Hearing Room
    Who: BioEnergy of Colorado, LLC 4875 National Western Dr. (303) 887-6997
    Opponent: Elyria Neighborhood Assoc., Tom Anthony, President

  • Pass on the word to others you know who can do any of the above.
  • More information from BioEnergy of Colorado:

    In February of this year, the neighborhood assoc prevailed at the 1st BOA hearing where the board ruled that the Zoning Administrator erred when, in October 2006, he issued BioEnergy a conditional-use-permit to make biodiesel. Of particular interest though, they also ruled that we could continue to operate until our permit expires on October 20th, 2007 (about 3 weeks from now).
    As a back-up plan to achieve some utilization of the assets already in place, we decided to shift our business model. We applied for a use-permit to recycle used vegetable oil at this facility. In anticipation of this new application, we sought the help of the Denver Fire Department and they signed a letter of support on our behalf. We submitted the permit documentation for a ‘Recycling Facility’ about 2 months ago and we were awarded an ‘unconditional-use-permit’ which means that this activity is allowed in this zone district. No need for public hearings or special meetings with the Board of Adjustment.
    Much to our amazement, the neighborhood association, once again, appealed this decision, saying that the zoning administrator erred. Their reason will astound you. In the technical paper work that we provided the Denver Fire Department, the term ‘esterification’ (not transesterferication) was included. Esterification is the chemical reaction that occurs in the recycling process.
    Here’s the Neighborhood Association Statement;
    The Zoning Code forbids a use not specifically authorized. The applicant’s filing documents stating “the waste oil recycling process is technically known as an ‘esterification process’.” “Esterification Facility” is not authorized as a use in the Zoning Code and therefore the administrator erred.
    Denver’s Board of Adjustment decided to take this appeal and we need your support by attending this hearing in big numbers. The neighborhood association’s tact has been to attack us, our business practices, and even us personally. This is not a hearing about BioEnergy of Colorado; it is a hearing whether a recycling facility can be located in an I-2 Zone district. The next hearing could and probably will be about your expansion plans in the area.
    What’s at risk: The most valuable resource, time, that we all have spent to pave the way toward a greater use of biofuels. The many million$ invested in technology, capital equipment, infrastructure and marketing trying to get the word out about our great businesses. The local market is at stake. The Denver Biodiesel Coop can buy fuel from out of state from someone who bought it, from someone else who made it, and pay all the foreign markups and transportation costs. Or, they can buy it directly from a local supplier….a neighbor …and, much more.

    Contact:
    Tom Foley
    BioEnergy of Colorado, LLC
    Cell (303) 887-6997
    TommyFoley AT Comcast DOT net

    Comments off

    Why the future of Big Biodiesel my not be so Bright

    I’ve been out of town a couple days, but the article I left to be published on AltEnergyStocks while I was gone is causing some controversy… I look at
    what might happen to the biodiesel industry if Big Oil starts to use animal fats and oils in their refineries. At least one reader didn’t like what I saw.  You may not like it, either, but you can read it here.

    Comments off

    Biodiesel pure-play

    I’ve written an article for Alternative Energy Stocks on Blue Sun Biodiesel’s expected merger with M~Wave.  The article begins:

    On January 29th, M~Wave [NASDAQ:MWAV] and private vertically integrated Biodiesel distributor Blue Sun Biodiesel announced a merger between the two, with Blue Sun becoming a division of M~Wave, and the merged company being renamed Blue Sun Holdings. Managerial control will also pass to “certain directors and the officers of SunFuels.”

    If this merger goes through as planned in the second quarter of 2007, US investors will have their first opportunity to invest in a stock focused on a biofuel which is much less controversial among environmentalists than corn-based ethanol. Estimates of the well-to-wheels Energy Return on Energy Invested (EREoI) for biodiesel range from about 1.93and up, depending on the feedstock, although few numbers are available. The most commonly quoted EREoI for biodiesel is 3 or 3.2, but I’ve never found a reputable reference for that, and it will clearly vary widely depending on the oil feedstock, with waste oil being “best.”

     Click here to read the whole article.

    Comments (2)

    Blue Sun Biodiesel

    Many of you know of Blue Sun Biodiesel from one of my more popular posts Why I Bought a Jeep where I talk about my decision to buy a Jeep Liberty diesel (which I run on biodiesel) as a cost effective alternative to a hybrid SUV.   That article was first published in the Colorado Renewable Energy Society blog, which led Blue Sun cofounder John Long to contact me, I ended up doing due diligence for a client for a private placement with them.  Blue Sun Biodiesel

    I liked Blue Sun’s business model and management, but had reservations about the price they were asking… evidence for good management, because if they had been offering a price I liked, they probably weren’t asking enough… I’m very cautious when valuing private equity; there’s a lot that can go wrong and no exit if it does.  My client decided to make a substantial investment despite my reservations.  Events have now proven him correct. 

    On January 29, Blue Sun announced that they were merging with M-Wave in a move which essentially gives them a back door to a Nasdaq stock market listingSarbanes-Oxley, by making conventional routes to going public much more difficult, has made this route much more popular in recent years.   Blue Sun shareholders will own 87.5% of the merged company and gain access to a much broader pool of equity to fuel their expansion plans.  As the quality leader in biodiesel, they are one of the few stand alone companies that have a chance against agricultural giants such as ADM and Bunge. 

    Blue Suns’s other advantage over the giants is thier emphasis on quality.  As Texas producers know, it’s very important to have biodiesel of consistent quality, and Blue Sun sets the gold standard.  Unlike most biodiesels, Blue Sun’s actually reduces NOx emissions (along with particulates, VOCs, etc., and increased lubricity, which reduces maintenance costs like other biodiesels), as well as having a lower cloud point, due to their proprietary additives and use of higher quality oil as feedstock.

    As a side note, there was a rumor going around the Colorado Cleantech Initiative last Tuesday night that this was the biggest private equity deal in Colorado history.   Jeff Probst, Blue Sun president was there, but he didn’t know for sure how the deal stacked up to previous deals.

    Comments off

    Older Posts »
    Follow

    Get every new post delivered to your Inbox.

    Join 151 other followers