BIODIESEL – HOW DO WE PROCEED?

AP Innovations STUTTGART, AR, June 5, 2008 --/WORLD-WIRE/-- As APInnovations enters its ninth year, its biodiesel division is witnessing the rebound of alternative fuels. As the price of petroleum reaches new highs, consumers are feeling the effects and they are calling for change. While Congress debates subsidies, the price of feedstock has skyrocketed and the U.S. remains dependant on foreign oil. Biodiesel is once again at center stage.

“The demand for biodiesel is strong and shows no sign of weakening” says Steve Danforth, who with partner, Mike Shook, owns APInnovations of Stuttgart, Arkansas. Just like Brazil, the U.S. will use all we can make.” But, as Danforth notes, “producing biodiesel profitably still presents challenges.” Shook notes that the industry must be facilitated by the local, state, and federal governments “until it takes root” or the dependency on foreign oil will only get worse. The Energy Independence and Security Act of 2007 increased the volume of renewable fuels that must be sold annually in the U.S. to 36 billion gallons by 2022. Minimum usage requirements begin in 2009 and reaches one 1 billion gallons by 2012. All of these factors seem to be attracting investors, entrepreneurs and lenders to again begin looking seriously at alternatives.

So, where should a buyer begin? “Building a biodiesel plant is a major business decision involving significant financial investment and risk”, says Shook. “This isn’t a place for the unprepared. If you don’t have the expertise, hire someone who does. Make an experienced team your first priority”, says Shook. Buyers need clear direction in assessing their site, selecting feedstock and technology, determining feasibility, and securing financing.

Shook and Danforth both agree that the popularity of alternative fuels has caused many new “providers” to appear on the scene. Many of these companies are brand-new. “Their technology may look good and their price may appear attractive, but diligent customers often find that they have never built a plant”, says Danforth.

Shook notes that anyone considering biodiesel technology should ask potential providers the following questions:

1. How many plants has the company actually built and are there some you can tour?
2. Does the company design, build and install, or do they just sell?
3. Can the company you are buying from be bonded for the project?
4. Can the company provide the “balance of plant” or do they just sell processors?

“Many companies that sell plants have never built one themselves”, says Shook. “When you deal with APInnovations, you are talking to us from the beginning to the end. We don’t sell it and then hire someone else to build it. We have designed, built, installed, and commissioned many plants and we are bondable, so the customer’s investment can be protected,” Shook notes.

Danforth and Shook are engineers with 50 years of combined experience in oil processing. Biodiesel production is one division of APInnovations’ business. They have clients on six continents and are recognized experts in the industry.

APInnovations, Inc., 1000 South Main Street, Stuttgart, AR 72160. (870.673.3030) www.apinnovations.com

Source: Environment Network News (www.ens-newswire.com)

Copyright © 2008, World-Wire. All rights reserved.
Issuers of news releases and not World-Wire are solely responsible for the accuracy of the content. World-Wire is a resource provided by Environment News Service