SAN ANTONIO, Tex. — A couple weeks after U.S. President George Bush’s pledge for increased investment in the biofuels market, leaders of the biodiesel industry met this week in San Antonio to address key issues facing the industry.

Refinery construction, a national biodiesel standard, and ongoing transportation challenges were all major issues discussed at the National Biodiesel Conference.

The biodiesel industry has exploded in recent years; Demand has grown from 75 million gallons sold in 2005 to an estimated 200 million gallons last year, say insiders. Also on the rise is biodiesel construction, with at least 65 plants currently under construction in the US alone.

Renewable Energy Group Director of Plant Sales and Construction Brad Albin kicked off the event by speaking to industry newcomers about the complexities of building a biodiesel plant. “Project managers of biodiesel plants have a lot to focus on during the construction phase, from air and wastewater permits … to standard building permits. Understanding all that must go in to the registration, permitting, and zoning process will help the project leader get started down the right path from the beginning,” said Albin.

Transportation continues to be a significant concern for biodiesel producers, particularly as the cost of fuel remains high and railcars difficult to come by.
Dave Elsenbast, vice-president of Procurement at REG addressed the need for a balanced supply chain.

“As production increases, feedstock demand increases, and the demand on limited transportation methods rises, producers need to take a serious look at the most cost effective delivery methods to move raw materials to their facility,” said Elsenbast. “Our expertise in transportation has allowed REG’s distribution network to develop using many different transportation methods for both inputs and outputs. In fact, our truck and rail agreements allow us to reach customers nationwide,” Elsenbast said.