Doug,

I forwarded your message to Dan Dolata, previously a university chem prof
and lead chemist on our project. The two of you may be able to bat the ball
around a bit.

Am a bit surprised to see www.HempCar.org make California press, as they
haven't even left DC yet. Could you relay the context and the origin of the
piece so they might map some of the responses they are receiving?

The energy piece on their site, written by Lynn Osburn, was written circa
1988. At that time little contemporary work had been conducted or renewed on
transesterification. I believe it was inserted in part due to its economy of
scale perspective.

> So, the goal is to allow farmers to make biodiesel for their own needs
...that
> is neat.  But, if this catches on 20 years from now, won't it eventually
go the
> way of mass production with huge processing facilities (like
> gasoline)...obviating the need for and the practicality of the little
farm-based
> facilities ?

With some certainty, but not at all entirely. Some of the manufacture is
destined in this direction. However, once all the waste oil feedstocks from
restaurants, food processing plants, grease traps, etc. are exhausted, there
will remain nothing but oilseed crops and virgin oils processed from them.
These feedstocks come from but one source - farms.

Most people don't consider the fact that oil is more or less a byproduct of
feedmeal production. It has high value and there is great demand. However,
the primary product must be dispersed as well, the primary consumer being
the livestock industry.

At present, most livestock producers are purchasing their feed under the
mega-corp scenario you mention, from Cargill, ADM or larger Coops like
Landmark (Land 'o Lakes). The oilseed is transported to central plants,
processed, and the "value added" products trucked right back out to where
they originated from. This not only wastes human time, fuel and revenues,
but adds to final costs of intermediate and end consumers.

The construction of micro-mills involves little cost in comparison to the
larger, solvent extraction mills and results in a quick payback. The savings
and profits stay central to the facility, rather than being exported half a
state or country away.

As well, farmers need to fuel equipment and furnaces, and might as well be
first in line to buy at cost, rather than paying $1.25 - $1.35 (US) a gallon
for "untaxed" fossil. As farmers are looking for anything that will increase
dollar yields per bushel, there is every reason to believe that they would
opt en masse for a scenario that would for most reduce grain transport costs
(time, fuel & capital machinery), reduce feed meal costs and reduce fuel
costs.

Not mentioned are the manufacturing fuel feedstocks that already exist on
most farms; natural gas and biomass for boilers and gensets, as well as
potential for ethanol use and the manufacture of ethyl esters, rather than
methyl esters.

As for growth into the road taxable fuel sector, this endeavor would still
need to fall under the umbrella of a mega-corp or mega-coop, as state and
federal fuel regs make individual efforts cost prohibitive. Under a
mega-coop umbrella, there would be but one bonded licensee, yet each plant
could dispense road taxable fuel at will as a "subsidiary" of the umbrella
coop.

The real gremlin in the wings is the overproduction of feedmeal. At some
point in time biodiesel manufacture will create this glut, forcing a drop in
grain prices, in turn wiping out much of the previous gains. If biodiesel
manufacture is placed in the hands of the mega corps, this will become a
near certainty and the small farm community will finally be pressed into
extinction.

The primary recourse to this scenario will be the self regulation of
feedmeals by farmers to control inventories. Some oilseeds produce high oil
yields and poor feedmeals relative to nutritional content. These crops
should be destined for solvent extraction for maximum efficiency, with their
respective "feed" meals destined for biomass steam and electricity
production.

Other oilseeds produce high oil and low feedmeal ratios. One such crop is
seed hemp (sorry, it has to be said). If one really wants to look down the
pike, there are trees such as pecan which yield three times more oil per
acre than soybean (~120 gallons/~45 gallons). Not only does the concept of
carbon sequestering receive advancement when cultivating "orchards," but
other product availabilities are broadened, such as "scarce" hardwoods,
pellet fuels, etc.

In a nutshell :-), Doug, this project needs a few good professional men and
women with the desire to step out of the corporate mindset - that and an
enthusiastic bank.

Food for thought.

Todd Swearingen
Appal Energy
[EMAIL PROTECTED]



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