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The end is near for greasers

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BIOFUELS: Some restaurants try dishing up home-cooked energy (Wednesday, June 
11, 2008)

Used vegetable oil from restaurant deep fryers has long been waste that 
restaurants paid to have trucked away. But times are changing.

Skyrocketing fuel costs have allowed some restaurant owners to avoid disposal 
costs by giving the waste oil to car enthusiasts who have found ways to run it 
through their engines. And some "grease bandits" have even been known to tap 
restaurant grease vats and siphon off the valuable stuff.

And soon, restaurant owners may have a new option. Enter Vegawatt -- a diesel 
engine that burns used cooking oil to generate electricity and preheat water 
for cooking and cleaning.

Now being site-tested by Boston-based Owl Power Co., the system is designed to 
give restaurant owners the benefits from their used fuel that might otherwise 
go to motorists.

"Right now, the biodiesel folks and the grease car folks are getting that oil 
for free, and restaurants are actually giving that away, and it has a lot more 
value than they realize," said Chad Joshi, Owl Power's chief executive. 

Joshi estimates that with a Vegawatt unit, a typical burger joint or doughnut 
store can save 20 cents in disposal costs per gallon of used oil, while 
generating electricity worth $2.20 and, by using the engine's waste heat to 
pre-warm water used in the restaurant, avoid 60 cents in natural gas costs.

Many restaurants store waste oil in 55-gallon drums or other large containers 
for disposal, and Owl Power's unit would replace that, Joshi said.

Currently seeking beta testers in the Boston area, the company plans to start 
leasing the units in the fall for about $400 per month, Joshi said. Energy 
savings at the target facilities would be $700 to $850 per month, depending on 
how much fry oil the restaurant uses.

Supersized potential?

The company is talking with big names, including McDonald's and Chili's Grill 
and Bar, as well as independent Chinese restaurants and other shops, and is 
targeting "any chain that you could name," Joshi said. 

"There are over a million restaurants in the U.S., and about 25 percent would 
be candidates for having one or more of our units," he said. Chili's 
representatives did not return a call requesting comment.

Veggie oil disposal companies typically model their businesses on converting 
used oil to biodiesel, according to Joshi. Since those companies have 
significant infrastructure costs to collect and transport the fuel, he thinks 
Owl Power has a competitive advantage, even if the price of diesel goes high 
enough that disposal companies would be willing to pay restaurants for the 
waste oil. 

For eateries eager to flaunt their "green" credentials, reusing fry oil on-site 
could be as tempting as a to-go bag of doughnut holes. Of course, since 
disposers also make fuel from the grease, the eco-credentials of the two 
processes would be roughly comparable. But generating electricity from fryer 
power has a ring of eco-cachet that could prove irresistible in today's 
marketing climate.

Joshi said Owl Power is privately held by himself and company President James 
Peret and will be looking for new funding and partners over the next year to 
expand nationwide.

If the business takes off, it could spell bad news for "greasers," the auto 
hobbyists who modify diesel engines to accept vegetable oil. Running a car on 
the stuff requires tricky switching between a starter fuel like biodiesel and 
the fry grease, but a slew of Web sites and user groups exist to help novices 
figure out how to convert their cars and where to find friendly restaurateurs 
who can help them power up.

Converting a car to run on veggie oil is illegal, violating emissions rules in 
the Clear Air Act. "Vegetable oil has not been registered as a motor oil diesel 
fuel," said an EPA spokeswoman, so selling the stuff is also an offense, though 
giving it away does not appear to be regulated at the federal level. 

Rather than get involved in the shady world of grease theft and back alley car 
conversions, restaurant owners may well take to the idea of using their own, 
home-cooked energy.

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