By HEATHER BAUGHMAN
baughman@crescent-news.com
America is going green -- with the help of two local biodiesel plants. Of the state's three biodiesel plants that are currently in operation, two are located in Defiance County. And representatives from both have high hopes for the coming year.
American Ag Fuels LLC, which starting producing biodiesel in July 2005, is in the process of more than doubling its production capacity, while PEC Biofuels in Hicksville, which starting producing the alternative fuel last June, is ready for its first full calendar year of production.
Biodiesel, the "green" environmentally friendly fuel, is available in all 50 states and is currently being produced at 105 plants across the United States. As of Jan. 1, the National Biodiesel Board reported that another 77 plants were under construction (three in Ohio, which are expected to be completed later this month), and eight were undergoing expansion including American Ag Fuels.
With spring approaching, PEC Biofuels owner Robert Perkins said, "We're really looking forward to a very good year."
Despite a structure fire in the fall, which Perkins said "slowed things down a bit... orders are starting to pick up."
The plant, which has the ability to produce 7.5 million gallons annually, generated around 600,000 gallons last year. "Just starting out, I think that was really good," Perkins said. This year he expects to produce anywhere between 2.5 and five million gallons.
In Defiance, American Ag Fuels chief executive officer Steve Lankenau said a second line is in the works at the plant, located off Greenler Street, which he said is expected to be up and running by late spring or early summer. Currently, the plant can produce 1.5 million gallons of B100 (or 100 percent biodiesel fuel) annually. The second line will boost production to eight million gallons a year, Lankenau said.
Growth for the company has been a long process, explained Lankenau, who said American Ag Fuels became incorporated in June 2004. A few months later, setup began at the plant with the production of the biofuel beginning in July 2005.
But the wait and effort that went into the plant were worthwhile. "Business has been very good," Lankenau said. "The biggest indicator is the fact that we're expanding."
One of the reasons Lankenau said American Ag Fuels is so prosperous is because "of our attention to quality. (Biodiesel) is a relatively new product in the market so quality is just an absolute essential."
Because of Lankenau's attention to quality and detail, he said American Ag Fuels is concentrating its efforts solely on making biodiesel. "We very much want to focus on making a single product," Lankenau explained, noting that the company purchases raw soybean oil for processing, as opposed to crushing the beans themselves.
Of the fuel that is produced in Defiance, Lankenau said, "75 percent of the product stays within 75 miles of northwest Ohio," with customers ranging from local school districts to the Ohio Department of Transportation and farmers.
"The farmers understand the full circle," Lankenau said. By using biodiesel, "they know that what they do is being supported, so many use this fuel to do their business."
Perkins said he is definitely seeing an increase in the use of biodiesel. "I think that's a given," he said, "even if it's not price competitive."
Currently, most biodiesel fuel available at the pumps is B20, or 20 percent biodiesel and 80 percent diesel. Lankenau broke that down to bushels and gallons. He explained that it takes nearly 143 bushels of soybeans to make 1,000 gallons of B20.
For those with diesel vehicles, Lankenau said he understands that making the change to biodiesel may take time. "That's okay," he said. "Take your time and get used to it."
As people become more comfortable with using this renewable fuel, Lankenau said the benefits will become more evident. "Look at the big picture," he said. By choosing biofuel, consumers are "less dependent on foreign oil, they are supporting the farm economy, and environmentally it is hands-down better."
With completion of a second biodiesel processing line at American Ag Fuels nearly complete, Lankenau said the company is looking to expand in other directions as well.
Perkins said the future of PEC Biofuels may include alternative feed stocks. Currently, the plant solely uses soybean oil to make biodiesel, however, Perkins said the company may experiment with other products such as animal fats and cotton seed, "which may allow us to make (biodiesel) for a lower price."