Defining our (current) mission

[ Note: The previous posts in this narrative can be found by searching 'DBI history' ]

We concluded that DBI could be most effective by identifying local stakeholders currently working on biodiesel projects in the Valley (see sidebar), and discovering what issues still needed to be addressed to help them become successful. Also, by contacting the stakeholders in this open and informal way, we hoped to improve our understanding of the issues surrounding biofuels generally.

For example, we discovered early on that a problem with small-scale production of biodiesel is the question of fuel quality. The equipment necessary to do a full set of tests to a sample of fuel is prohibitively expensive for an individual homebrewer, and perhaps even a small coop. Sending batch samples to a commercial testing facility is possible, but also very expensive, and therefore not cost effective for the relatively small batches being produced.

We thought: If there was a way to engage a logical partner with resources and interest, for instance a local community college or university, then conceivably you would have a win-win scenario. The small producer gets accurate and comprehensive quality testing (perhaps for a nominal fee) and the college or university gets real-world material to examine and test. Maybe a angel-funded coop could purchase the testing equipment and turn the 'problem' into a service for homebrewers and other small producers.

Another idea: WVO-based biodiesel appears to be the 'low hanging fruit' in the biofuels world. There is, however, an existing infrastructure to collect and process the large quantities of fryer oil from fast-food chains. This oil is used for pet food, cosmetics, and other products. This so-called 'yellow grease' is a commodity that is traded like any other. But how much of the stuff is there in the Valley? Seems like a good thing to know, especially for a nascent local biodiesel community. Perhaps we could engage some grad students in gathering some of the market data we needed to analyze the potential WVO-based biodiesel production.

Or more directly applicable to homebrewing: one of the first things Brad and I talked about was the need to 'get out of the garage'. Processing small batches of biodiesel is a pretty innocuous affair. Methanol and KOH are not trivial substances, but neither are DRANO and the dozens of other common household chemicals most everyone has in their homes and garages.

The more pressing point was the quantity of chemicals (and processing sidestreams) for producing the amount of biodiesel necessary to become fuel self-sufficient. Identifying possible locations (properly zoned and permitted) for biodiesel processing and chemical storage, handling sidestreams of wash water and glycerol properly: these were issues that we felt both should and could be addressed while preserving the DIY ethic and enthusiasm of the homebrewer community.

A danger that we have talked about is one of exposure: perhaps by going public in this way we would draw attention to activities that had been 'flying under the radar'. But, at least from our perspective, there were a couple compelling reasons to press forward. 1) The 'right' thing to do is be a good neighbor. That includes complying with applicable rules, and if there is room for improvement to the rules, to petition for change. 2) By complying with the rules, we gain a legitimacy in the community to affect change at a larger, more substantial level. One of our primary goals with this project is promote a local biofuels infrastructure that includes commercial, coop and homebrewers. The only way to be included at the table is to show up.

Open Source Biodiesel

The other problem with the straight proprietary commercial startup for us was a matter of choices. We wanted to do something that would assist in the development of a biofuels infrastructure in the Valley. A successful coop was already in place, which I had joined, and it seemed unnecessary and certainly divisive to duplicate that established effort. A straight commercial venture was underway as well, in fact there were a couple. None of them as yet were selling fuel to the general public, but Brad and I had a similar response regarding this as well.

We want to foster an open environment to help enable the biofuels stakeholders in the Valley to work together for their mutual success, and we believe there is a lot of common ground. Our goal is to have biofuels widely available in the Valley, and that broad mission gives us a lot of latitude when discussing these issues. There is no particular 'turf' we are trying to protect.

Our operating procedure is straight out of the Open Source software playbook: put something together and throw it out there, even if it isn't perfect, and see what kind of response we get. Like-minded folks can join in and participate at whatever level they feel comfortable, and by being open with everyone we hope to establish credibility with all the stakeholders working in this space: coop, commercial, educational, policy makers, what have you.

The Brother-in-law Test

Brad was very interested in hearing about my progress with homebrewing, and we discussed the possible reasons why biodiesel and biofuels generally weren't widely available here in the Valley. Lyle has an entire chapter in his book about the 'lure of the producer', how there is a predictable arc of discovery, enthusiasm, development and then the desire to commercialize. Some of our initial discussions were centered on a traditional start-up model, the idea of raising money to make and sell biodiesel and subsequently get rich. Why not?

So I made an appointment to talk to my brother-in-law, Luke, who founded a technology company here in Scottsdale, My Computer Works. One morning in December I made my way over to his offices, and once we settled into our chairs he asked me a question: how do you plan to make money? It's a legitimate question. He grabbed his laptop and we started putting together a pro forma profit/loss spreadsheet. It quickly became clear, based on our number WAGs, that feedstock costs were the key component in any discussion about biodiesel profitability. WVO is certainly the most attractive feedstock from that perspective.

But crunching some numbers and doing some hard thinking made me realize something else. There are tangible benefits from fostering and encouraging a local biofuels infrastructure, even if the immediate commercial opportunities are unclear. Brad's initial interest in my 'biodiesel project' was from a policy and legal perspective. Perhaps that was where the most immediate impact could be generated.

Infecting others

It was also about this time that I stated buying fuel from Western States Petroleum. They sell virgin soy-based biodiesel, made in IOWA and shipped in via rail (at about $.20/gal) and then blended at B99 (99% biodiesel and 1% petrol diesel) to take advantage of a federal $.01 per % blending credit.

WSP is the only Phoenix commercial vendor that I know about that sells biodiesel in the Valley. 3.5 million people and 1, yes ONE, biodiesel pump. (By the way, there are currently NO E85 ethanol pumps, but that's another issue.)

Something is wrong with this picture.

Most Saturday mornings I hang out with my buddy Brad and we talk about family, politics, the meaning of life... all the usual stuff. One Saturday I brought up a new topic: biodiesel. I ranted: how could it be that something so great was effectively unavailable in Phoenix? Tucson has several biodiesel pumps, Winslow has one, even Oracle, a wide-spot in the road on AZ77, has a biodiesel pump.

Brad is a smart guy. He drives a Prius. He wanted to know 'why' too.

[edited 2/1/08: WSP now has a e85 pump! ]

Getting the bug

After I obtained girl Mark's book I started making test batches of biodiesel. Now producing a liter or two of biodiesel from Safeway-bought canola oil is one thing, but producing WVO-based biodiesel presented some new challenges. First, I had to find some WVO...

My wife, Dorothy Johnson, co-owns a poster and framing shop in Scottsdale called posters mostly. A few doors down is an Italian deli called Guido's. Hey, I thought, Guido's sells broasted chicken! Since Dorothy and Joe have been business neighbors for over 25 years, I figured I had a reasonable chance of scoring some used fryer oil.

Fortunately for me Joe uses relatively little oil every week, so he didn't have a need for a dumpster-style collection container. He simply returned the used oil to the 5 gal plastic carboys and disposed of them. I explained what I was attempting, offered to take the carboys, and he was more than happy to let me have them.

In the meantime I was assembling parts from Ace Hardware, Lowe's, and various Internet vendors into what I hoped was a reasonable facsimile of a biodiesel processor. About this time I also made contact with Dynamite Biofuels and met Gene and Jay. For our first meeting I brought a 10 gallon WVO icebreaker with me, (2) 5 gallon carboys filled with WVO, my donation to the cause. We spent the next several hours talking about their setup and biofuels generally.

It's all Lyle's fault...

How did this all get started? How did an IP lawyer and a corporate pilot decide to get involved in the strange and wonderful world of biofuels?

It all started with a book...

About 5 months ago I was wandering through my local public library near my home in Phoenix, when I came across a brightly colored yellow and green book while browsing the shelves. I had purchased a 3/4 ton diesel truck the previous November with the intention of doing a lot of road trips and camping during the 2007 mountain bike race season. It had been in the back of my mind to investigate running biodiesel in the truck, since a riding buddy had been using it in his truck.

So, browsing casually, I saw this bright yellow cover and pulled the book from the shelf, checked it out and took it home. As I read I found myself captivated by the story and the personalities. There was a feeling of getting a sneak-peak into a phenomena ready to burst into public notice, of something incredibly important and immensely fun.

The book, Biodiesel Power: The Passion, the People, and the Politics of the Next Renewable Fuel by Lyle Estill is a wonderful introduction to the world of biodiesel, and provided the motivation to search the Internet for a more hands-on experience. One of the personalities featured prominently in the book is Maria 'Mark' Alovert (girl Mark). Her website Local B100 includes a link to her how-to book Homebrew Biodiesel Guide.

The Local B100 website includes a rationale for locally produced biofuels, which is the basis of many of our ideas of what we would like to see happen in Phoenix.