Goodwill Industries of North Central Pa

Biodiesel: A Review of Potential Mission, Environmental, and Fiscal Impacts of an Alternative

Applied Research Project Written Paper in Partial Fulfillment of Course Requirements of

Table of Contents

I.          Project Overview
                        Executive Summary
                        Project Background
II.         Problem Statement

IV. Impact of Biodiesel Production and Usage

Research Overview
            Mission Services
            Environmental Impact
                        Other Alternative Fuels & the Environment
            Local Market Research
Safety Concerns
V.        A Pilot Program: Goodwill Producing Biodiesel
                        Project Overview
                        Fiscal Considerations & Investment
                        Biodiesel Production Process
                        The First Batch
VI.      Conclusion
Considerations for Biodiesel Programs
Recommendations for Future Consideration

Executive Summary
Goodwill Industries spends a significant amount of money on transportation needs for retail, salvage, and industrial service programs that help fund our mission services. This project explored the potential of creating the basics for an exportable biodiesel model to enable Goodwill Industries to utilize alternative fuel in its own operations and potentially create an additional revenue stream to support its community programs through a new business enterprise.
While Goodwill’s recycling expertise and reputation in the community for operating socially and environmentally-responsible businesses lends itself the capacity to garner the needed community support and potential partnerships to establish a model for manufacturing and utilizing alternative fuels, our research indicated that while a model may work at local Goodwill agencies, the fiscal and mission viability of such models are largely dependent on the local markets and the individual agency’s commitment to the “Green Movement.” Considerations include local access and potential cost of raw materials, capital expenses for start-up equipment and facilities, and the potential that biodiesel, while environmentally sound, may not save Goodwill money. Overall the team concluded that biodiesel is a potential program for Goodwill agencies interested in “Going Green” but would likely incur significant start-up costs, may not provide adequate return-on-investment (ROI) to save the agencies money, and have limited transitional employment and job training applicability.

Project Background

            With the tremendous amount of financial resources used to support transportation for our earned-income donations program, retail programs and industrial contracts work, along with the recent community focus on “Going Green,” it appeared incumbent on Goodwill to explore the potential of utilizing alternative fuels. This team project focused on exploring the potential for in-house production and utilization of biodiesel, an alternative fuel.
Biodiesel has garnered a significant amount of attention nationally and internationally, particularly with the increased awareness of environmental issues such as global warming, air pollution and the advent of the “Green” movement by governments, businesses, and community organizations. Because biodiesel is made from a chemical reaction of alcohol and vegetable or animal oils, fats, or greases, these oils are kept out of the environment through reuse into production of this alternative fuel. Therefore, utilization of biodiesel as an alternative fuel promotes renewable resources and decreases our dependency on foreign oil, which has been costly to the United States and its citizens and businesses. Moreover, biodiesel is relatively easy to produce and use, and is nontoxic and biodegradable, all of which will be discussed in further detail in this paper.
Our Capstone Project explored the philosophical, business, and technical aspects of developing recommendations for a biodiesel model for Goodwill Industries.
The project analyzed the potential social, mission, financial, and environmental implications of developing a comprehensive biodiesel program, as well as examined safety and operations considerations, long-term environmental concerns, and general liabilities. A pilot program currently being undertaken in Pennsylvania was reviewed to help determine the feasibility of local Goodwill agencies producing their own biodiesel. In addition, recommendations for future considerations are included to help determine potential next steps the Goodwill movement may take in further exploring this field.

II. Problem Statement

Goodwill Industries is experiencing continual increases in fuel and heating costs. Along with this ever-increasing expense is the damage done to our environment by diesel emissions from our fleets. A possible solution is an alternative fuel, such as biodiesel. This project examined the potential production and use of biodiesel in Goodwill, as well as the implications such a project would have to the community members we serve, society at large, and the environment.

III. Project Objectives

Our project focused on exploring the production and use of biodiesel for our in-house operations, as well as considering it as a potential new business venture. Three main objectives were explored and will be addressed in our Capstone Project:

Our research, fiscal and operational analysis, and the review of the potential impact on our local Goodwill agencies were conducted with these main objectives in mind.
The first objective, which supports the “Green” movement to which Goodwill Industries has committed, was deemed a likely outcome of any biodiesel program in which Goodwill participates based on our research and analysis. Our research indicated that biodiesel is better for the environment and helps curb the growing green house effect which jeopardizes the biosphere. The use of biodiesel has also been shown to save renewable resources and help discourage illegal dumping of cooking oils. By engaging in such practices, it is apparent that the Goodwill movement would grow its reputation in the community as an innovator in social and environmentally responsible business practices.
The other two objectives to which a potential biodiesel production and usage project would likely want to speak, however, seem less promising given our research and analysis. The cost savings initially anticipated from producing and using biodiesel in our operations and earned-income enterprises were determined to be heavily dependent on local markets, making the viability largely contingent on geographic location and capital investment potential. The differing regional trends in the market across the country renders the potential for reinvesting cost savings into workforce development and providing expanded program services with this additional funding incongruent at best. While some Goodwill agencies may very well realize significant cost savings, given the dependency on local markets, not all of the objectives could be met at each Goodwill considering implementing a biodiesel program.

IV. Impact of Biodiesel Production and Usage on Goodwill Agencies

Research Overview

The research was conducted by the team as a whole, with market-specific data gathered by team members in their regional area, a method that had proved an asset since the field appears largely dependent on local markets. Our research and development of recommendations relied on three main components:

Other areas that were of interest to the team but could not be fully explored because of project limitations, such as public policy and marketing aspects of a biodiesel program, are included in our recommendations for the future.

Mission Services

Given the mission-oriented focus of Goodwill Industries and the community’s assumed expectation that additional resources be directed to our service programs, the team prioritized analyzing the potential impact of biodiesel production and usage on our transitional employment and job training programs. Based on our review of the pilot program, organizational capacity to engage in biodiesel production, and the staffing needed for such programs, the team concluded that the potential for job training and transitional employment in the field of biodiesel would be limited. The main impact that biodiesel could have on our program services would likely be in the fiscal savings realized, which could be redirected to our services.
The team determined that the potential return on investment (ROI) realized from producing and utilizing biodiesel in-house could support Goodwill’s mission. Specifically, an area that could benefit would be the transportation system that supports retail sales and donations, salvage, industrial operations and contracts, and other business services. By taking measures to reduce mileage and increase efficiencies in these areas, significant savings could potentially be realized and thus redirected to mission services. The team considered the overall mission of Goodwill and determined that it includes several key components, including the following:

Biodiesel programs could help support the mission on all of these fronts by providing more funding to Goodwill’s workforce development services, providing additional recycling and reuse services to the community through the collection and reuse of waste grease, and the development of partnerships with local businesses for the program.
The reinvestment of potential savings realized through a biodiesel program could be dedicated to creating additional job training and other services to those in need. While hands-on job training in the area of biodiesel production and distribution would likely not occur due to the limited number of positions needed and safety concerns associated with such a project, the funding could be directed to already established programs at local Goodwill organizations. Since the fiscal savings is largely dependent on the local market in each region, the team was unable to determine the potential savings associated with biodiesel. In fact, in some regions, the project might cost the agency money above anticipated expenses. This is largely why the team recommends each Goodwill interested in using biodiesel commit due diligence and research their local market resources and costs before embarking on such a program. More detail in this area is provided in our recommendations.
While the cost savings and potential additional funding for mission services depends on local markets, the environmental impact of using biodiesel is clear. Environmentally speaking, the use of biodiesel meets our mission of serving the community-at-large and will assist in growing our ability to partner with local businesses and community-based organizations. Since an emerging priority and focal point in society is on the environment and the creation of earth-friendly, economically-sound and sustainable ways of operating and living, this aspect of the project may appeal to local Goodwill agencies. Many organizations within the Goodwill Movement are taking the initiative to explore and, where deemed sound, engage in “green” business and operational practices. In the spirit of a broader mission reach, Goodwill would serve as a key leader in developing cutting edge, fiscally sound and sustainable business practices while demonstrating environmental stewardship.
Business practices that are ecologically sound can also be economically sound over the long term, and can prove profitable financially as well as in the broader context of job creation, business partnerships and expanded economic development (Hirshberg, 2008). The current business environment is shifting to one in which the environmental cost is gaining momentum in being counted as a real cost of doing business; companies are successfully applying a strategy of going beyond minimal environmental compliance to gain a competitive edge; and report cards, such as the carbon footprint of a company, are being made public (Esty & Winston, 2008; Hirshberg, 2008; Lash & Washington, 2007; Llewellyn & Hendrix & Golden, 2008).
The production and/or use of biodiesel fuel is one piece of the platform through which Goodwill can demonstrate environmentally sound practices and gain credibility with the community and local business—leading to the potential of developing both mutually beneficial joint business strategies and becoming a preferred source of candidates for employment. All of these outcomes support an emerging and economically driven foundation on which to build opportunities to assist individuals in reaching their fullest potential through the power of work.
A positive impact on Mission Services can occur in some or all of the following categories:

Environmental Impact

Although safety issues are a concern, the environmental benefits of biodiesel use and production are tremendous. The benefits of recycling waste vegetable oil are obvious, not only because the oil reused and converted into renewable fuels, but biodiesel from waste grease also helps keep water sources clean since many restaurants engage in illegal dumping of their used
oil. Grease recycling businesses are the trend in many areas of the country and have emerged in major cities across the United States. Grease recycling could be a business option to explore for Goodwill with the capital expense of buying multiple transport trucks and a heated grease recycling system with multiple 55 gallon or larger drums, which could be considered a starter kit according to Biodiesel Magazine.
Another environmental benefit is that biodiesel degrades much faster than petroleum diesel, approximately four times faster according to the National Biodiesel Board (NBB). The NBB reports that pure biodiesel degrades 85% to 88% within 28 days. The National Institute for Occupational Safety and Health (NIOSH), in its Registry of the Toxic Effects of Chemical Substances, included the following information pertaining to aquatic toxicity: “A 96-hr lethal concentration for bluegill of biodiesel grade methyl esters was greater than 1000 mg/L. Lethal concentrations at these levels are generally deemed insignificant.” ( McCormick & Allenman, 2003.)
Another environmental aspect to consider is in regards to emissions. Diesel engines in the United States are regulated by the Environmental Protection Agency (EPA), which reports that diesel engines are large contributors of total nitrogen oxides (NOx) and total particulate matter (PM) to the atmosphere. ( McCormick & Allenman, 2003.)
The EPA completed a review of published B20 (a blend of 20% biodiesel relative to average conventional diesel fuel) emissions data for heavy-duty engines. It shows that PM levels decrease by 10.1%, Carbon Monoxide (CO) levels decrease by 11%, and Total HydroCarbons decreases by 21.1%. However, the same test shows that the total NOx output increases by 2%. The increase of NOx emissions from biodiesel is of enough concern that the National Renewable Energy Laboratory has sponsored research to find biodiesel formulations that do not increase this emission. (Radich, Anthony. n.d.)
Adding cetane enhancers can reduce NOx emissions from biodiesel, and NOx emissions could possibly be reduced by blending with kerosene or Fischer-Tropsch diesel, a gas-to-liquid process that can produce a high quality diesel fuel from natural gas, coal, and biomass resources. Kerosene blended with 40% biodiesel and Fischer-Tropsch diesel blended with 54% biodiesel has an estimated emission of NOx no higher than those of petroleum diesel. Further air quality modeling is needed to determine whether the use of biodiesel without additives to prevent increases in NOx emissions will increase or decrease ground level ozone precursors.
Most biodiesel emission studies have been carried out using existing heavy-duty highway engines. The effects of biodiesel on emissions from heavy diesel engines meeting the EPA’s stringent emission standards have not been determined, and the EPA has concluded that the results of biodiesel tests in heavy-duty vehicles cannot be generalized to light-duty vehicles.
Another benefit to the environment that biodiesel brings is that it uses “yellow grease,” or waste frying oils from restaurants, in its production. While yellow grease is much less expensive than soy, vegetable, or palm oils, however, its supply is limited and it has other uses than just biodiesel. (Interview with Renewable Energy Group.) For example, it is used as an animal feed additive and in the production of soaps and detergents. From 1993 through 1998, the average supply of yellow grease in the United States was 2.63 billion pounds; enough to make 344 million gallons of biodiesel. (McCormick & Alleman, 2003)

Other Alternative Fuels & The Environment
There are other renewable fuel sources in lieu of biodiesel Goodwill could consider using to immediately lessen its environmental footprint and reduce long-term costs to the organization. Ethanol is one of those renewable fuels as it is highly biodegradable and to date has positively impacted our economy, our job markets, our environment and our dependence on foreign oil. However, long-term as it is currently produced, ethanol does not offer the immediate or long-term gain of biodiesel fuel.
The biggest draw to ethanol is that all automobiles can operate efficiently and without problems using standard E10, a blend of 10% ethanol and 90% unleaded gasoline. No engine modifications are necessary. Ethanol not only costs about 10 cents less per gallon in some areas (ethanol.org. April, 2008. New Fuel Price Data Shows Ethanol’s Cost Savings for Consumers.) but it renders regular gasoline cleaner, and less harmful to the environment by reducing overall toxic emissions such as carbon monoxide, particulate matter, oxides of nitrogen, and other ozone-forming pollutants. Carbon monoxide emissions from vehicles using E10 or higher grader are reduced 10%-20%. (ethanol.org. April, 2008. New Fuel Price Data Shows Ethanol’s Cost Savings for Consumers.) Using higher grades of ethanol-blended fuel, such as E85 (85% ethanol, 15% unleaded gasoline) is where we will see the most profound environmental and economic impacts on our society. However, most vehicles produced today are unable to run on E85 and manufacturing is years out.
Ethanol use and manufacture may also stimulate the American economy as it creates jobs and crop requirements for farmers. According to a 2002 study, “Ethanol and the Local Community” by AUS Consultants and SJH & Company, ethanol production will generate an additional $19.6 million in household income annually and create nearly 700 permanent jobs near an ethanol plant. (Urbanchuk, J., June, 2007) While the economic impact may be positive, consideration also needs to be given to the fact that ethanol production requires large corn crops. Conventional agriculture relies on fertilizer and pesticides derived from fossil fuels. Diesel fuel powers farming machinery, while coal and natural gas are burned in high quantities to produce it. This results in higher emissions of nitrous oxide. This research shows that the use of ethanol in vehicles reduces air toxins, but producing it creates more greenhouse-gas emissions and energy consumption than it saves us.
Ethanol’s sophisticated cousin cellulosic ethanol boasts its own repertoire of talent, including neutral carbon release and maximized energy profile. In fact, cellulosic ethanol releases greenhouse emissions 80 percent below that of gasoline to almost completely carbon-neutral emissions. Its production method also produces more energy than it consumes. Unfortunately, the exact method for producing cellulosic ethanol remains in process as it requires a specific infrastructure and large masses of land for growing switchgrass, its major ingredient. For now, cellulosic ethanol remains a distant promise but if it can be produced – it promises to offer our environment the greatest benefit.
Another immediate gain for the argument of ethanol use and manufacture is that U.S.-produced, renewable ethanol displaces the crude oil we import. According to information listed on ethanol.org – producing six billion gallons of ethanol annually would reduce our need for foreign gasoline by one-third – keeping money in our own pockets (ethanal.org). So an added benefit of large-scale ethanol production can decrease our trade deficit as well as cut our gasoline consumption.
The seeming benefits to the U.S. economy and environment for using ethanol raise a case for consideration and consumption. The negative impact it breeds for the environment due to its manufacturing process however is cause for concern. While using higher grades of ethanol would produce an immediate environmental gain in air quality, it would require vehicle modifications at a minimum and more likely, new truck fleets. Biodiesel fuel still offers the most promise for jobs and environmental stewardship to Goodwill.

Local Market Research: The Bay Area

Research indicated that location is a determining factor in biodiesel production and use. Interviews with biofuel producers, distributors, community-based agencies, and equipment manufacturers were conducted in the San Francisco Bay Area and used a standardized questionnaire in open-ended or short-answer format (see Appendix 1). The research showed overall that the San Francisco Bay Area is fairly saturated in terms of waste grease biodiesel production and usage. While this provided a rich resource for research, it also indicated some of the pitfalls in a saturated market.
While the biodiesel production market is thriving in the Bay Area due to a commitment on the part of companies in the area to “go green” and become more environmentally responsible, the majority of those interviewed did not encourage a community-based model by an agency whose mission was not focused solely on biodiesel production. An exception was Greenline Industries, a biodiesel equipment sales company, whose representative mentioned it was still possible and even advisable to get involved in producing biodiesel at Goodwill agencies. The interviewee advised that a business model could not be based on restaurant grease, however, as it was not sustainable. Those that advised against it were most concerned with the difficulties in creating uniform biodiesel with small-scale models and meeting ASTM standards, as well as citing competition in the area as a major deterrent.
            Information gained through the interview process showed the local community seemed in relative agreement that producing biodiesel from waste grease is the best option. However, there was some disagreement about the type of waste grease preferred. Greenline Industries mentioned basing a business plan on restaurant waste grease was unsustainable and animal fats needed to be an integral part of the equation. People’s Fuel, a not-for-profit cooperative, and Blue Skies Biofuel, a collector of waste grease and producer of biodiesel, cited concerns about the animal rendering plants and alleged criminal activity associated with a number of plants. Along with additional concerns about the manner in which animals were treated in the mainstream meat industry, ethical concerns seemed prominent for community-based organizations in using animal fats.
            Research showed there is some disagreement about the types of waste fats to use in creating biodiesel from economic and ethical standpoints. Those interviewed stressed the importance of leveraging local resources to create a sustainable biodiesel program. The interviewees mentioned that the materials should be acquired within a 100-mile radius of the potential plant to ensure that the model provides for an economically sound approach to biodiesel. Outside of this radius, costs for transportation of the waste grease or biodiesel would prove too cost prohibitive. Moreover, from a community perspective, it is preferable to utilize the resources within the community to help grow and support local infrastructure and economies.
            Overall, the interviews and research conducted specific to the San Francisco Bay Area indicated that a biodiesel production model would likely meet a number of obstacles, including but not limited to strong competition, safety and material handling concerns, and limited raw materials, particularly considered the saturation of the market. If a local agency was focused more on “going green” and creating sustainable energy sources rather than realizing a significant cost savings, however, the program could be viable. The local research indicated that it might be easier for a local Goodwill to purchase biodiesel already produced from waste grease from a local cooperative or business. This method would provide the same environmental benefits without the safety, operations, market, and fiscal challenges.

Safety Concerns

            Safety was one of the leading concerns that appeared in our research, as well as the pilot program in Pennsylvania. The process of making biodiesel has a number of safety implications and therefore, as one of our first priorities, we recommend that Goodwill agencies fully examine the safety of biodiesel if considering production and use.
Biodiesel itself is considered much safer than petroleum-based diesel fuel (National Biodiesel Board, n.d.). Under the criteria listed in OSHA Standard 29 CFR 1910.1200, the fuel is considered non-hazardous and non-toxic (Occupational Safety & Health Administration, n.d.). There are chemicals involved in the manufacturing process that are toxic, highly flammable, and caustic, however, as methanol and sodium hydroxide both are dangerous chemicals and should be handled very carefully according to OSHA.
Methanol is listed in Appendix C – Materials Regulated by OSHA as Toxic and Hazardous Substances (29 CFR 1910). Because methanol is altered during the biodiesel production process, manufactures are then classified as “chemical manufacturers.” This classification causes the manufacture to meet standards mandated under OSHA’s Hazard Communication Standard (HCS). To clarify, the HCS states, “Under the HCS, an employer that manufactures, processes, formulates, or repackages a hazardous chemical is considered a chemical manufacturer” (Occupational Safety & Health Administration, n.d.). Due to methanol’s classification, safety departments of current or potential biodiesel producing Goodwills will be required to have extensive knowledge of OSHA Standards 29 CFR 1910, 29 CRF 1910.119, 29 CFR 1910.1200, and 29 CRF 1910 Subpart Z.
            Biodiesel has a relatively low flash point, typically in the 200° F + range (93° C). Flash point is defined as “the lowest temperature at which the vapor above a combustible liquid can be made to ignite in air” (National Biodiesel Board, n.d.)(lower flash point – easier to ignite). Although biodiesel’s flash point is low, fires at biodiesel plants in 2006 and 2007 show the extreme dangers of methanol both inside and outside of facilities. American Biofuels in Bakersfield, CA, burned in April 2006 (Fire Destroys American Biofuels, April 2006), and Blue Sky Biodiesel in New Plymouth, ID, followed in July of the same year (Plant Fire Proves Deadly, August 2006). Both were methanol related fires and the facilities were destroyed. The American Biofuels fire started outside the facility and it was reportedly due to static electricity – no injuries were reported. The Blue Sky Biodiesel fire started due to a spark and resulted in one death. In 2007, Farmers and Truckers Biodiesel LLC (Augusta, GA), Foothills Bio-Energies LLC (Lenoir, NC), and Better Biodiesel, Inc. (Spanish Fork, UT) all burned due to methanol explosions (Schill, 2007).
            Storage recommendations for biodiesel established by the NBB include storage in a clean, dry, dark environment. The NBB recommends storage containers be composed of “aluminum, steel, fluorinated polyethylene, fluorinated polypropylene, and Teflon” (National Biodiesel Board, n.d.). Shelf life of biodiesel varies from six months to one year, but the NBB does suggest that retesting occur after six months to ensure the quality meets ASTM Standard (D-6751) (National Biodiesel Board, n.d.. p. 2).
The Methanol Institute recommends that methanol is contained in a closed system and exposure to the atmosphere should be avoided. Vapors pose an explosion risk if exposed to spark or flame, and exposure to intense heat for a prolonged period or fire can cause containers to explode. Also, it should be noted that in bright light conditions, methanol flames are almost invisible (Methanol Institute, n.d., p. 1). Due to these factors, proper ventilation is a must. The Methanex Corporation recommends the following factors, “dead air spaces, temperature, convection currents and wind direction (if outside)” (Methanex Corporation, n.d., p. 25).   The company also recommends spark-proof fans when using mechanical ventilation. Per Methanex, “Inhalation of methanol vapours is the most frequent type of exposure” (Methanex Corporation, n.d. p. 26).
Other areas of concern for both biodiesel and methanol include spillage containment and cleanup, skin exposure, eye exposure, proper disposal of unused or contaminated fuels, and spill prevention. The Methanex Corporation has an excellent prevention and containment plan in place which meets all EPA Emergency Response Program guidelines (Methanex Corporation, n.d., p. 30).
            Although not as dangerous as methanol and biodiesel in terms of fire or explosion, sodium hydroxide (lye) usage and storage does include its own safety standards and requirements. There is no Flash Point for lye so risk of fire is extremely unlikely (Certified Lye, n.d., p. 2).
            Lye is caustic and hygroscopic. The chemical will cause eye, skin, and digestive and respiratory tract burns if ingested or inhaled. Exposure injuries to the eye can include blindness, chemical conjunctivitis and corneal damage. Skin exposure can result in burns/ulcers penetrating several skin layers. Employees should wash exposed areas thoroughly. Inhalation can lead to such severe injuries as chemical pneumonitis, respiratory tract burns, and even coma. Ingestion of lye causes gastrointestinal tract burns, and can cause perforations of the digestive tract. Symptoms include severe pain, nausea, vomiting, diarrhea, and shock (Certified Lye, n.d., p. 1).
            Proper storage and handling will also reduce the risk of accident or injury. Lye should be stored in a closed container in a cool, dry, well-ventilated area. The MSDS also recommends that lye not be exposed to metals (aluminum, tin, zinc) or acids. Incompatible materials also include water, nitromethane, leather, flammable liquids, organic halogens, and wool. Containers should be kept closed. Careful handling will reduce the risk of dusting. Proper ventilation including an exhaust system will maintain the acceptable airborne concentrations at or below the permissible exposure level (Certified Lye, n.d., p. 2).
            Glycerin is a byproduct of the manufacturing process and is a relatively safe chemical. The flash point for glycerin is high (320° F/160° C) and the substance contains no hazardous materials. There are health related injuries that can occur if overexposed to glycerin which include respiratory tract, eye, and skin irritation, particularly for persons with pre-existing skin conditions (Biodiesel Industries, Inc., n.d., p. 1).
            There is the possibility of violent reactions if glycerin comes in contact with acetic anhydride, calcium oxychloride, chromium oxides, and alkali metal hydride. Storage areas should be away from those materials, and in closed containers. The area should be cool, dry, and well ventilated (Biodiesel Industries, Inc., n.d., p. 2, 3).
            The Material and Safety Data Sheets (MSDS) of biodiesel, methanol, lye, and glycerin requires specific use personal protective equipment (PPE) for each chemical. This includes but is not limited to respiratory protection, chemical resistant safety glasses/goggles with side shield, chemical resistant gloves, protective clothing, and practice good personal hygiene. With increased exposure, the employee would also need appropriate footwear, face shields, fire-resistant clothing or chemical suits.

V. A Pilot Program: Goodwill Producing Biodiesel
Project Overview
Goodwill Industries of North Central Pennsylvania, Inc, decided to conduct a pilot program in the production and usage of biodiesel from restaurant waste grease. The agency conducted their due diligence and research about their local market, fiscal feasibility, and agency impact. This Goodwill recognized that rural areas of the country, where minimal grease recycling companies exist, could support recycling efforts in the field of biodiesel. In addition to collecting and selling the restaurant grease, also known as “yellow” grease, for renewable energy sources, many large cosmetic companies buy used vegetable oil for use in soaps and cosmetics. “Yellow grease” is also in demand as a pet food additive. Their research indicated that their Goodwill agency could be a potential recycling of waste grease with immediate interest by their community. With local market need and few competitors, Goodwill Industries of North Central Pennsylvania, Inc, decided to conduct a pilot program in the production and usage of biodiesel from restaurant waste grease. The objectives of this pilot program are both to realize transportation cost savings as well as help protect the environment by using recycled grease from restaurants.
Fiscal Considerations & Investment
Aside from market demands, another factor to consider is costs analysis. The percentage of biodiesel to use plays into this analysis and careful consideration to this factor needs to be given since there are a number of opinions on how much biodiesel should be used in relationship to diesel fuel. Biodiesel naming refers to the percentage of biodiesel to diesel used. For instance, B5 contains 5 percent biodiesel and 95 percent diesel fuel, whereas B50 is 50 percent biodiesel and 50 percent diesel fuel. Some data suggests that anything more than B50 is too high and should not be run. Other data suggests that B100 is acceptable and, in fact, beneficial. What is not disputed in the data is that prospective biodiesel users must start with a low mixture such as B5 and slowly ramp up to the desired mix. The biodiesel will assuredly clean any carbon deposits out of the fuel tank, lines, and diesel engine. These deposits will end up in the filters.
The filters will need to be checked and changed often until the unit is sufficiently cleaned by the biodiesel. This will be an added expense but will be well worth it in the end.
There are many hidden costs in the process. The equipment and materials costs below are from the Goodwill Industries of Northeast Pennsylvania, Inc. as determined by their initial startup of biodiesel production. The first list is capital investment, and the second is process-related costs: See page 26.
Listed out below are costs for consideration, as line items. While some variables will exist for all autonomous Goodwill organizations, such as overhead costs per square foot, these costs represent current market value with the opportunity for standard market inflation in the future.
EQUIPMENT
Capital Costs
Fuel Meister Processor                         $4,000.00 (Retail)
Plastic Drums                                        $7.00 each
Steel Drums                                          $15.00 each
Drum Dolly                                           $275.00 each
Industrial Hand Pumps                          $75.00 each
Overhead (variable per Goodwill)         $XX per Sq. Foot

CHEMICALS and MISCELLANEOUS
Process Related Costs
Methane                                               $258.00 for 55 gallons
($37.00 per 40-gallon batch)
Lye                                                       $42.00 50 lbs
($2.50 per 40-gallon batch)
            Labor                                       $10.00 per hour
($40.00 per 40-gallon batch)

Additives $5.75 per 100 gallons of biodiesel
Testing $35.00 per batch (consider self-testing)

As mentioned, the Goodwill Industries of North Central Pennsylvania, Inc., in Falls Creek, Pennsylvania is in the initial stages of a biodiesel production pilot program. The agency has purchased a small processing unit at a retail cost of $4,000. The purchase was made from a local farmer for $1,750. The unit was manufactured by Biodiesel Solutions. Information for Biodiesel Solutions can be found at the website www.biodieselsolutions.com. The unit is very compact and can process up to 40 gallons of biodiesel in a 24-hour period.
Goodwill Industries of North Central Pennsylvania currently uses approximately 1,000 gallons of diesel fuel each month. The starting goal for this agency is to produce approximately 500 gallons of biodiesel per month. This will allow the use of B50 (50% Biodiesel and 50% diesel fuel) in their fleet. This would require the acquisition of 10 barrels of used grease each month and run the batch processor approximately 13 times per month. This Goodwill has estimated the costs of producing biodiesel in small batches to be approximately $2.50 per gallon. At the current diesel fuel price of $4.50 per gallon, this will save approximately $2.00 per gallon. With 500 gallons produced, the net savings would average $1000 per month at the current price of diesel fuel. Although somewhat small, it represents 15% of the total fuel costs incurred by the agency.
Biodiesel Production Process
During the exploration phase, Goodwill Industries of North Central Pennsylvania found that there are numerous ways to produce biodiesel. This agency chose to use the process that uses biodegradable oils such as soybean, sunflower, or peanut. After obtaining this crop based renewable oil, it is then heated and mixed with methanol and lye (sodium methoxide). The end result of this process is biodiesel, with a byproduct being glycerin.
Research showed that there is little competition for used cooking oil in rural Pennsylvania. Researchers found that many restaurants in the area dispose of their used grease in a number of ways, including paying to have the grease removed by a septic tank pumping company which eventually results in landfill disposal, giving the grease to local entrepreneurs who are producing biodiesel for personal use, and washing it down sanitary sewer drains. This disposal method is illegal in most areas, but the research showed that this is the “method of choice” for some restaurants.
To help reduce costs, the Goodwill Industries of North Central Pennsylvania discussed collecting waste grease from 5 restaurants that are on current truck routes. The agency was able to obtain commitments from 10 of these businesses, which enabled the agency to acquire used grease for free. The only stipulation was that the agency is responsible for picking up the used grease. Goodwill Industries of North Central Pennsylvania realizes this is no guarantee of future supply, but is encouraged by the response from such a small number of inquiries. In larger markets research has shown that used grease is sold for $.10 per pound to $.30 per pound. This works out to $.80 to $2.40 per gallon. This used grease may then be purchased by the gallon for use in biodiesel production. This option reduces the savings, but the agency has deemed it a viable option.
The process to produce biodiesel from used cooking grease is relatively simple when viewed on a process map. The process is as illustrated on page 29.

The First Batch
Although seemingly a simple procedure, Goodwill Industries of North Central Pennsylvania found the process unexpectedly difficult. One problem that was discovered early in the process involved the temperature of the oil. It was found that the oil temperature decreases considerably (will not remain at 120°F) once it is pumped into the mixing vessel. The agency recruited the help of the Penn State University (PSU) Chemistry Department. The chemists advised staff to heat the oil to a temperature range of 135°F to 140°F. The additional heat helped the reaction take place at the recommended temperature of 120°F.
It was also discovered that lye and methanol do not readily mix. The reaction can be aided by heating the mixture slightly. Staff submerged one gallon of methanol in a hot water bath for several minutes. This resulted in the lye quickly dissolving into the methanol. The resulting sodium methoxide was then mixed with the heated grease to create biodiesel. These additional steps did lengthen the process and staff found it quite messy. After discussing the process with the PSU professors and the staff at Biodiesel Solutions, the agency found that sodium methoxide can be purchased premixed at a set percentage of lye to methanol. This information changed the mixing of the final product and resulted in an easier and less expensive process.
Some technical expertise is needed to process biodiesel. The process is also timely at first. Staff at the Pennsylvania Goodwill can now set up and have the processor operational in about one hour. Once processing is complete it takes an additional two to three hours to pump out the glycerin and wash water and then pump the fuel into barrels. The final part is to clean the equipment between each batch. In total there will be four to five labor hours spent producing 40 gallons of fuel.
Additional labor costs are not expected in the collection of grease from restaurants. The agency will pick up from establishments on current truck routes. Time spent at each restaurant is estimated at five minutes or less to stop and load the barrel of grease using a barrel dolly and a truck with a lift gate.
As of April 29, 2008, Goodwill Industries of North Central Pennsylvania has produced one 10-gallon batch of biodiesel. This small success was the culmination of three weeks of failed attempts. After struggling to successfully produce biodiesel, the agency invited professors from the PSU Chemistry Department to assist with the process. After finishing the batch run, a small sample was sent to the PSU Chemistry Department. The results are documented in Appendix 2.

VI. Conclusion
Considerations for Biodiesel Programs
Goodwill Industries has an opportunity to leverage its proactive role in the recycling and reuse community by incorporating alternative fuel resources and practices into its business model. Biodiesel has the potential not only to transform our business practices, but have substantial positive impact on the communities we serve and environment. The production and use of biodiesel by Goodwill agencies speaks to the movement’s socially responsible business model and would meet its new strategic goal of becoming a “Green” organization. There are also cost savings that may allow Goodwill to expand our work in the community, although research and analysis in this area indicates that savings are largely driven by local markets and may not be realized by all agencies implementing a biodiesel program.
Our research strongly indicates that the decision about whether or not to design and implement a biodiesel program should be left to each independent Goodwill Industries agency. We highly recommend that Goodwill agencies interested in biodiesel thoroughly explore the following:

Recommendations for Future Consideration
Our project focused somewhat exclusively on looking at the fiscal, operational, mission, and environmental aspects of biodiesel production and use. Other arenas of exploration were also identified during our project, but were not included in our current scope because of the project limitations and to help ensure that we could more fully explore these aspects of the project. In addition to our recommendations on the due diligence we suggest each local Goodwill conduct in determining the feasibility of a biodiesel program in their locale, the team also recommends that Goodwill Industries International, along with local Goodwill agencies and regional associations of Goodwill, consider the following:

Biodiesel Magazine (April, 2006). Fire Destroys American Biofuels Facility in

            Bakersfield, Calif.

            Retrieved May 20, 2008, from http://www.biodieselmagazine.com/

Biodiesel Magazine (August, 2006). Plant Fire Proves Deadly in Idaho.

Retrieved May 20, 2008, from http://www.biodieselmagazine.com/

Biodiesel Magazine (October, 2007). BiodieselPlants Bounce Back.

Retrieved May 20, 2008, from http://www.biodieselmagazine.com/

Certified Lye (n.d. p. 1). Material Safety Data Sheet, Sodium hydroxide, solid.

Certified Lye (n.d. p. 2). Material Safety Data Sheet, Sodium hydroxide, solid.

Esty, D.C., & Winston, A.S. (2006). Green to gold: how smart companies use environmental strategy to innovate, create value, and build competitive advantage. New Haven: Yale University Press.

Fox, Kim. Director of Environmental Business for Goodwill Industries of San Francisco, San Mateo, and Marin Counties. Interview March, 2006.

Hirshberg, G. (2008). Stirring it up: how to make money and save the world. New York: Hyperion.

Lash, J., & Wellington, F. (2007). Competitive advantage on a warming planet. In Harvard business review on green business strategy (pp. 125-148). Boston: Harvard Business School Publishing Corporation.

Llewellyn, A.B., & Hendrix, J.P., & Golden, K.C. (2008). Green jobs: a guide to eco- friendly employment. Avon: Adams Media.

Montenegro, Maywa (2006). The Big Three. Retrieved from Grist Environmental News and Commentary at http:// www.Grist.org.

Methanex Corporation (n.d., p. 25). Technical Information & Safe Handling

Guide for Methanol.

Methanex Corporation (n.d., p. 26). Technical Information & Safe Handling

Guide for Methanol.

Methanex Corporation (n.d., p. 30). Technical Information & Safe Handling

Guide for Methanol.

CFR, Flammable and Combustible Liquids.-1910.106. Retrieved April 21, 2008, from http://www.osha.gov/pls/oshaweb/owadisp.show_document?p_table=STANDARDS&p_id=9752
Occupational Safety & Health Administration (n.d). Regulations (Standards-29

Schill, S.R. (October, 2007). BiodieselPlants Bounce Back. Biodiesel Magazine.

Urbanchuk, J. (n.d.). Contribution of Ethanol Industry to the Economy of the United States. LECG.

Appendix 7

Quality Assurance Biodiesel Standard

Quality Assurance Biodiesel Standard (ASTM D6751-07b)
	AS DETERMINED BY PENN STATE UNIVERSITY CHEMISTRY DEPARTMENT	Tests Included	ASTM
	Biodiesel Fuel Quality Assurance Standard A complete set of tests designed to evaluate Biodiesel fuel for use. (Conforms to ASTM D6751-07b)	Viscosity @ 40 ° C	D445 Passed
		Total Acid Number	D664 Failed
		Free and Total Glycerin	D6584 Passed
		Distillation Temperature	D1160 Passed
		Cetane Number	D613 Passed
		Cloud Point	D2500 Passed
		Flash Point, Pensky Martens	D93 Passed
		Sulfur by UVF	D5453 Passed
		Phosphorous	D4951 Passed
		Sodium, Potassium	EN14538 Passed
		Calcium, Magnesium	EN14538 Passed
		Bottoms Sediment & Water	D2709 Failed
		Sulfated Ash	D874 Passed
		Carbon Residue	D4530 Passed
		Copper Strip Corrosion Rating	D130 Passed
		Oxidation Stability-Rancimat	EN14112 Passed
		Methanol Content	EN14110 Passed

Biodiesel Test Descriptions
As biodiesel expands to be a viable alternative fuel to traditional petroleum based fuels, many forward-looking companies are starting to produce and distribute it. Quality and consistency of the finished product is of major concern because of the variety of production techniques and feedstocks. Here is a selection of key tests involved:
Free & Total Glycerin
Perhaps the most important test for biodiesel is the measure of glycerin content. The key reaction in biodiesel production, transesterification, involves converting oils and fats to fatty acid methyl esters (FAME). Glycerin is the major byproduct and is higher in density and more polar than the FAME. Glycerin may be present in free form, and bonded, (mono, di and triglycerides). Measurement of both is necessary to determine how the conversion reaction proceeded.
For producers: high glycerin content indicates the reaction has not proceeded to completion, or your driver and /or catalyst is weak (wrong concentrations).
For Distributors/End users: high glycerin may separate out in storage, plugging pumps and filters. It can also contribute to dirty injectors, thus causing poor combustion conditions.
Phosphorus, Potassium, Sodium, Calcium, Magnesium by Spectrometric Analysis: Technique for detecting and quantifying metallic elements in a fuel resulting from, contamination, soap formation or additives. The fuel sample is energized to make elements emit or absorb a quantifiable amount of energy, which indicates the element's concentration in the fuel.
For Distributors/End users: Phosphorus can poison catalytic converters, rendering them ineffective. It can also create hard deposits on piston crowns, valves and injectors, affecting the engine performance and reliability. Sodium and Potassium may form abrasive solids or metallic soaps which may cause abrasion and filter plugging. Calcium and Magnesium metals clog particulate traps which will be used with ULSD.
Cloud and Pour Point
Defined as the lowest temperature at which wax crystals begin to form in the fuel. Pour point is the temperature at which the fuel ceases to flow.
For Producers/Blenders: B100 has a cloud and pour point of 32F and 25F respectively. High values may indicate additives are not present to lower the cloud and pour, or not present in the desirable concentrations. Alternatively, the blending with #1 or #2 diesels needs to be increased.
Cold Soak Filtration Analysis
The time in seconds it takes for cold soaked biodiesel to pass through two 0.8 micron filters and the amount of particulate matter expressed in mg/l collected on the filter.
For Producers/Blenders: Poor filtration can be related to choice of feedstock, as well as incomplete glycerin removal during processing. It may also indicate the B100 product was subjected to low temperatures (below pour point). It is not sufficient to warm to ambient- product must be heated to 100F to liquefy all molecules present.
For Distributors/End users: High filtration times indicate the potential for fuel filter plugging. In freezing climates, consider heat trace on storage tanks, blend and piping equipment. End users may look to install heated filter housings.
Viscosity
The resistance of a fluid to flow. Fuels must have suitable flow characteristics to insure that an adequate supply reaches injectors, at different operating temperatures.
For Producers/Blenders: Verify that the transesterification reaction has proceeded properly. The glycerin content may be elevated and flash point high. Reprocess the batch.
For Distributors/End users: High viscosity can cause fuel flow problems, and lead to stall out, or fuel pump failure.
Total Acid Number
A titration method designed to indicate the relative acidity in a feedstock. It is a particularly good indicator of the level of free fatty acids (FFA) present in biodiesel, as well as the presence of process acids and degradation by products.
For Producers/Blenders: High Acid values on your feedstock indicates unrefined or poorly refined product. Typical problems would be poor process control, such as methanol carryover, when converting the oils and fats to FAME fuel.
For Distributors/End users: High Acid number fuel can have a strong solvency effect on rubber seals and hoses in the engine, thereby causing premature failure. It may also leave deposits, which can clog the fuel filter or drop fuel pressure.

Flash Point
The flash point is defined as the lowest temperature at which the vapor of a combustible liquid can be made to ignite momentarily in air. The flash point of a fuel infers to the ignitability of the fuel.
For Producers/Blenders: A low flash point can indicate residual methanol remaining from the conversion process. A high flash point can mean the reaction has not proceeded to completion.
For Distributors/End users: A low flashpoint in biodiesel can result in premature ignition, causing irregular timing, excessive fuel blow by into the crankcase oil, and excessive emissions. A high flash point can lead to poor ignition, resulting in inconsistent firing, and variable engine performance. It can also indicate potential clogging of fuel lines, filters and injector clogging in cold climates.
Water & Sediment
Though water is always present in fuel, it is important to control its content. Bottoms sediment and water is where the biodiesel is centrifuged vigorously to separate out free water and any trace sediment present in the fuel. Water can be detected visually if gross contamination is present (cloudy appearance). The Karl Fischer method is used for moisture contamination down to levels of 10 ppm (.001%). BTS recommends the Karl Fischer method.
For Producers/Blenders: Excessive water may indicate water wash/removal process is not performed correctly.
For Distributors/End users: Improper storage may be the reason, and poor ignition, filter clogging, fuel pump problems can be the result. If sediment is present, replace the fuel filter cartridges.
Sulfur
A common contaminant in fuel. Sulfur in fuel leads to sulfur oxides being produced as exhaust gases, which can harm the environment, and as acids in the engine crankcase, which will attack the lubricant. Biodiesel will have little to no sulfur present, making it a great emissions reduction fuel. Some sulfur is desirable in refined petroleum based diesel as it provides lubricity for the fuel pump. Biodiesel fulfills that function with the free fatty acids present.
For Producers: If sulfur is present, check the source of the feedstock to make sure it is not hydrocarbon based.
For Distributors/End users: High sulfur leads to emissions problems.
Distillation
A method for determining the full range of volatility characteristics of a hydrocarbon liquid by progressively boiling off a sample under controlled heating. Different methods are available for distillation: atmospheric, vacuum, and simulated.
Biodiesel is fundamentally different than petroleum based diesel, and it is especially evident with distillation. Biodiesel has a fairly homogenous consistency of straight chain hydrocarbons, all with 16 to 18 carbons. Consequently it exhibits a boiling point rather than a distillation curve.
For Producers: High distillation values may indicate the conversion reaction has not gone to completion, (flash point may also be high). Low values indicate methanol carryover.
For Users: High distillation values lead to poor starting, especially in cold weather; low values can lead to poor timing and seal material failure