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Renewable Diesel

An emerging market for fats, oils, and

greases

Render

Biodiesel Industry on the Right Track

U.S. Renewable Fuel Standards Finalized

The International Magazine of Rendering February 2012

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Departments

Features10 Renewable Diesel An emerging market for fats, oils, and greases.

14 Biodiesel Industry On the right track.

21 Recognizing the True Value Of animal by-products.

4 View from Washington Congress is again the land of lost opportunity.

8 Newsline USDAclosingoffices, EPA releases first GHG data.

16 Biofuels Bulletin U.S. renewable fuel standards finalized for 2012.

20 From the Association Over the river and through the woods.

22 International Report Future possibilities for renderers worldwide.

24 ACREC Solutions Gimme your research needs...please.

26 Labor and the Law Court lowers burden of proof for OSHA citations.

28 Mark Your Calendar 30 People, Places, and... 32 Classifieds

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Editor and Publisher Tina Caparella

Associate Editor Lisa Baran

Magazine Production Sierra Publishing

Contact the National Renderers Association at 801 N. Fairfax St., Ste. 205, Alexandria, VA 22314 (703) 683-0155 Fax (703) 683-2626, [email protected] www.nationalrenderers.org

Render (ISSN 0090-8932) is published bimonthly under the auspices of the National Renderers Association by Sierra Publishing, 2820 Birch Avenue, Camino, CA 95709 as a public service to the North American and global rendering industry. It is intended to provide a vehicle for exchange of ideas and information pertaining to the rendering and the associated industries. Render is distributed free of charge to qualified individuals upon written request. Publisher reserves the right to determine qualification. Periodical postage paid for at Camino, CA, and additional mailing offices.

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Contents February 2012 Volume 41, Number 1

On the CoverRendered fats and greases are playing a leading role in a new renewable diesel fuel. p. 10Photo courtesy Tyson Foods, Inc.

ENDERRENDERRThe National Magazine of Rendering The International Magazine of Rendering

www.rendermagazine.com Render February 2012 3

Rendertorial Leave it to a small group of South Dakotan beef lovers to get national exposure on the longest running syndicated game show by offering beef as a prize. That’s what Bob Montross, beef producer, farmer, and one of the eight volunteer Beef Bucks, Inc., directors, recently accomplished. What took two years of persuasive phone calls and e-mails resulted in a Beef Bucks gift tag on the colorful wheel that contestants spin for cash and prizes on the popular program, Wheel of Fortune. The first episode featuring the $1,000 beef prize aired January 9 and it was quickly won by one of the three contestants, although overshadowed by the new car she also won in the same round. Beef Bucks committed to providing three $1,000 gift cards to the game show as a way to promote beef to millions of people in the United States. Formed in 1997, the non-profit organization is based in the small town of De Smet, SD, and promotes the beef industry by selling pre-paid checks and gift cards in various dollar amounts that can be used to purchase beef at grocery stores, restaurants, and retailers across the nation. Beef Bucks has sold more than $1 million worth of beef-only checks and reloadable debit cards that have been used in more than 40 states. Backed by two financial institutions, the unique group is run out of the home of Montross and his wife, Nancy, who are often called “Ambassadors of Beef.” The couple and Beef Bucks also promote their industry by educating consumers on beef nutrition and cooking. Since the bucks are sold on a dollar-for-dollar exchange, the program and many other projects the organization is involved with including scholarship presentations are financially supported by the sale of a beef recipe collection and sponsors of an annual golf tournament. Montross said everyone was pretty excited when they received the call last summer from Wheel of Fortune that Beef Bucks had been selected as one of the gift tags contestants can win. “We knew then that we had made the big time,” he gushed. R


Congress is Again the Land of Lost Opportunities

View from Washington By Steve Kopperud, Policy Directions, Inc.

The reason the rest of the session is a crap shoot is because 2012 is an election year – big “E”, big “Y”.

As I write this in early 2012, there are only two real givens when it comes to the second session of the 112th Congress. First, all federal tax credits related to corn-based ethanol – the blender’s tax credit and the import tariff – have expired, not through enlightened congressional action, but because Congress did nothing with any of the biofuels tax supports. Second, when it comes to most major issues confronting Congress, the 535 members don’t seem to be able to find their backsides with both hands and a flashlight. The reason the rest of the session is a crap shoot is because 2012 is an election year – big “E”, big “Y” – and not only do we get to elect the entire House of Representatives, but a third of the Senate and the president. If fear of voter backlash is the hallmark of an “off year,” then fear, timidity, and a jettisoned fight-or-flight instinct are the traits of the electioneering incumbent, whether congressional or presidential. Having failed miserably with the whole “super committee” deficit/budget reduction thing, Congress nevertheless punted like a pro most of its responsibilities – and chances to show responsibility – into 2012. The lost opportunities included the payroll tax reduction battle along with most federal spending, debt limit, and tax reform issues, and President Barack Obama announced at Christmas he’d wait for some time in early January before sending up his formal request to increase the federal debt ceiling, along with what’s bound to be a very politicized fiscal year 2013 budget recommendation. Congress must now catch up with what it should/could have done last year. This means all of those football issues are now tacked on to the agenda of what must be handled before the November 2012 elections. Here are some issues renderers care about and how they’re expected to consume Congress’ time and energy for the next several months.

Biofuels Tax Credits Once again the $1 per gallon blender’s tax credit for biodiesel and renewable diesel, as well as the 50 cents per gallon alternative fuel tax mixture tax credit, have expired along with the ethanol supports and about 1,000 other tax credits, including the research/development credit for small business and child care credits. This is likely to be a replay of 2009, when the credits expired on December 31 of that year, and Congress didn’t get around to reinstating them until mid-2010, having to make them retroactive to January 1. There’s an agreement of sorts circulating on Capitol Hill, a plan to reinstate the tax credits as part of broader federal tax reform, but because the underlying package couldn’t generate the excitement necessary to get it to the president’s desk, that agreement will be vetted along with other shifts in the federal tax code. There are also those who believe any federal support for any alternative fuel should be part of whatever solution Congress comes up with to the challenge of crafting a federal energy policy. The biodiesel industry is pushing to reinvent the biodiesel supports, turning the blender’s credit for fuel refiners

into a biodiesel producer’s credit, with a four-year extension. The attacks on ethanol are not directed at biodiesel; while ethanol is now considered a mature industry with no need for federal supports, biodiesel is seen as an infant alternative fuel needing federal support to make it competitive with advanced biofuels.

Ethanol “Demand” Spending With the disappearance of federal tax incentives for corn-based ethanol blending and an end to the import tariff, the ethanol industry is turning its attention to two priority issues. First, federal support of so-called “demand” spending, including federal loan guarantees for pipeline construction, flex-fuel pump installations – the U.S. Department of Agriculture (USDA) is using current program money to build these pumps across the country – and federal mandates on construction of flex-fuel cars and light trucks. The second is protection of the Renewable Fuel Standard (RFS2) as it’s currently written. Growth Energy, a major association of ethanol companies, says its focus is on 15 percent fuel/ethanol blends, flex-fuel pumps, and flex-fuel cars, all designed to increase demand for primarily corn-based ethanol. Further, Growth Energy and the Renewable Fuels Association (RFA) say they will continue to push the Environmental Protection Agency (EPA) on the Growth Energy E15 petition – there are House and Senate bills designed to block any EPA action to increase the blend rate above the current 10 percent – and both are also working to protect the RFS2 driving through federal mandate a good chunk of domestic ethanol demand. Livestock and poultry groups want ag committee hearings on the impact of the RFS2 on the economy and food production. “We expect the RFS2 to be a target as long as the RFS2 is in place,” RFA said just before Christmas, but the group is now trying to reinvent parts of the standard through rulemakings. Cleverly, the ethanol groups are trying to cash in on a section of the RFS2 designed to provide unique incentives for what are called advanced biofuels – effectively any feedstock not corn and not used to make ethanol – by pushing to have corn-based ethanol redefined as an advanced biofuel. This move would increase the standard’s blend mandate for corn ethanol to 21 billion gallons by 2022. However, the original law creating the RFS2 in 2007 specifically bans corn ethanol from benefiting from advanced biofuels incentives, and as of now, EPA sees other biofuels – including biodiesel – as the advanced biofuels that will meet the 2022 blend mandate.


Energy This issue will either move as a stripped-down package of alternative energy incentives to businesses, along with retrofitting old buildings, and so forth, or become a catch-all for a number of parochial energy concerns, but could also pull in related alternative fuel tax issues. While Congress continues to wrestle with fashioning a comprehensive federal energy policy – which both parties, going into the election, contend is a “front-burner issue” – the need to find an alternative to failed cap and trade/greenhouse gas legislation remains paramount. There needs to be a package into which such things as alternative energy incentives, research into biofuels, etc., can be tucked, say some in Congress, and this means expired tax incentives for biofuels – particularly biodiesel – and a possible rewrite of portions of the federal RFS2, the federal mandate on how much ethanol must be blended with gasoline on an annual basis, accused by production agriculture as market-distorting. The Senate is looking to Senator Jeff Bingaman (D-NM), chair of the Energy and Natural Resources Committee, to fashion an energy package that will garner the 60 votes necessary to get chamber approval. The House will likely follow the Senate on overall energy policy, but Representative Bob Goodlatte (R-VA) has introduced two bills. The first would reduce the RFS2 mandate on corn-based ethanol based on USDA’s stocks-to-use ratio, and the second would kill the standard altogether.

Tax Reform Over 1,000 federal tax credits for everything from small business research and development to child care to biodiesel lapsed at midnight on December 31, 2011, setting up another tug-of-war in getting some of them modified and all of them reauthorized. President George W. Bush’s tax cuts will also expire absent congressional action, and both the Senate Finance Committee and the House Ways and Means Committee conducted serious discussions during the super committee’s unsuccessful deliberations on tax reform as part of

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deficit reduction and budget control. Both committees are expected to float a comprehensive tax reform package early this year that will seek to close some corporate loopholes and deductions as offsets to pay for other reform measures. Heavy debate will focus on reducing overall U.S. corporate tax and capital gains rates, now the second highest in the world and likely to capture that number one spot as Japan reworks its corporate tax rates. Reworking corporate tax rates is seen as a means to entice companies to bring off-shore investment and savings back to the United States. Restructuring of personal income rates as part of the debate over the Bush tax cuts is also expected.

Input Costs/Availability Overarching several issues confronting agriculture is the cost and availability of everything from corn, soybeans, and other crop ingredients to inputs, including fertilizer and feed ingredients. Much of the concern is being driven by global factors, e.g., what will be the impact of a prolonged South American drought on U.S. corn exports? What will Iran do or not do in the Straits of Hormuz, and how does Venezuela play in the evolving drama of dictators who control oil production? What does Russian agriculture production look to be, particularly in the Black Sea region, and what will its import/export policies look like? What will China do in 2012, and will it continue to be the United States’ near-largest customer for corn and soybeans? What’s Europe’s macroeconomic/currency future? What will the U.S. government do to rein in institutional investment that most claim distorts the ability of true risk hedgers to use futures markets? Some of this will be addressed in the farm bill, some in energy policy development, and some in tax and awaited Dodd-Frank/Commodity Futures Trading Commission rulemakings.

Farm Bill Production agriculture is focused like a laser beam on how to rewrite federal farm program income supports in a time of high on-farm income and restricted federal spending. However, given the difficulty in moving comprehensive and expensive farm legislation in an election year already has some national groups, including the National Cattlemen’s Beef Association, predicting the farm bill will not be completed until 2013, though drafts will circulate throughout this year and one or both committees may actually approve final versions. This is a risk because holding together what are always delicately balanced agreements resulting from farm bill negotiations through an election year and into a new Congress is a major gamble. The chief priority for most farmers and ranchers – who have generally agreed the days of federal check-writing are over – is preserving federally subsidized crop insurance and risk management programs, with several grain/oilseed/cotton/rice/sugar/dairy groups having reinvented their federal payment programs as income insurance protection programs. The American Farm Bureau Federation, which issued several warnings on various crop groups’ new ideas through deliberations by the super committee on deficit reduction, will

revisit all of its farm program recommendations, affirming or rewriting over the next few months what most have called support for the status quo, albeit with lower spending. A bill fashioned by Senator Debbie Stabenow (D-MI), chair of the Senate Agriculture Committee, and Representative Frank Lucas (R-OK), chair of the House ag panel, but never submitted to the deficit reduction super committee, may provide ideas for a new farm bill, but will not be the foundation for the comprehensive bill. Congress will also need to decide how it will handle export promotion programs, including the Market Access Program. Industry has successfully protected these programs in the last few appropriations battles, but the farm bill rewrite means all programs are possible candidates for reinvention as a means of cutting their costs and contributing to deficit reduction.

Trade The World Trade Organization (WTO) formally nixed the U.S. country-of-origin labeling regulations, so 2012 will bring the administration decision on whether to appeal that ruling or not. With Congress having finally ratified the free trade agreements with Panama, Colombia, and Korea, attention now turns to the Trans-Pacific Partnership, with the immediate focus on bringing Japan, and perhaps Canada, into the negotiations. The participation of these two nations, along with Australia and New Zealand, increases the importance of these discussions for the U.S. livestock sector. Also on deck is congressional ratification of permanent normal trade relations for Russia now that that nation has been accepted into the WTO. This will be a heated debate based on Russian embargoes on poultry and other U.S. exports over the last couple of years. Also being watched closely is how Europe will continue to deal with agriculture and food products derived through biotechnology. The European Parliament continues to insist it must have parochial policies on products of biotechnology, including plant varieties and cloned livestock, their offspring, and the sale of semen and embryos into the European Union (EU). This effort failed over the last two years, but will ramp up. The world’s five largest livestock producing nations – the United States, Canada, Brazil, Argentina, and Australia – sent a warning letter to the EU last year on any precipitous action on cloning or the offspring thereof.

Animal Rights The loudest battle, but one which will most likely be won by broad animal agriculture, will be over the agreement between the United Egg Producers (UEP) and the Humane Society of the United States (HSUS) on “enriched” environments for caged layers. Never before has a U.S. producer group asked for federal regulation of its on-farm production practices, and the precedent-setting nature of the action pits UEP against all livestock and poultry production, including a number of input organizations. UEP says it cut the deal with HSUS to get out from under state referenda financed by the animal rights group, and to bring consistency back to state laws governing egg layer housing. HSUS will also likely continue to pursue federal legislation to make horse slaughter illegal in the United

Washington Continuedfrompage5

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USDA Closing Offices, EPA Releases First GHG Data

Newsline By Tina Caparella

“They wiped out the entire Midwest.”Andrew Lorenz

FSIS Deputy District Manager

In an effort to “meet the evolving needs of the 21st century agricultural economy,” the U.S. Department of Agriculture (USDA) has released a plan that will streamline operations and cut costs. Part of the department’s strategy is to close 259 offices, facilities, and laboratories across the country as well as seven foreign offices. The Blueprint for Stronger Service is based on a department-wide review of operations conducted as part of the Obama administration’s Campaign to Cut Waste to make government work better and more efficiently. When fully implemented, these actions along with other recommended changes such as reducing travel and consolidating service expenses will save about $150 million annually in the agency’s $145 billion budget. The following actions to close or consolidate facility, office, and lab operations will impact USDA headquarters in Washington, DC, and operations in 46 states, one U.S. territory, and seven overseas locations. • Farm Service Agency: consolidate 131 county offices in 32 states; more than 2,100 offices remain throughout the United States. • Foreign Agricultural Service: close two overseas offices; more than 95 offices remain throughout the world. • Animal and Plant Health Inspection Service (APHIS): close 15 offices in 11 states and five offices in five foreign countries; more than 560 offices remain throughout the United States and 55 remain throughout the world. • Rural Development: close 43 area and sub-offices in 17 states and U.S. territories; approximately 450 offices remain throughout the United States. • Natural Resources Conservation Service: close 24 soil survey offices in 21 states; more than 2,800 offices remain throughout the country. • Food Safety and Inspection Service (FSIS): close five district offices in five states; 10 district offices remain throughout the United States. • Agricultural Research Service: close 12 programs at 10 locations; more than 240 programs remain throughout the country. • Food, Nutrition, and Consumer Services: close 31 field offices in 28 states; 32 offices will remain throughout the United States. After an initial look at the proposed closures, Tom Cook, president, National Renderers Association, didn’t see any that could affect renderers, but other industry groups and those impacted by the closures voiced concern and shock. While Colin Woodall, vice president for Government Affairs at the National Cattlemen’s Beef Association, told the Associated Press (AP) he commended the USDA for trying to save taxpayer money, he expressed concern about food safety, probably in reference to the loss of five FSIS district offices and 15 APHIS offices. Andrew Lorenz, deputy district manager for the FSIS in Minneapolis, MN, was surprised when he learned his

office would be closed along with those in Madison, WI, and Lawrence, KS. “They wiped out the entire Midwest,” Lorenz is quoted in the same AP article. His office handles all federal inspections of meat, poultry, and egg products in Minnesota, Montana, the Dakotas, and Wyoming.

EPA Releases First GHG Data For the first time, comprehensive greenhouse gas (GHG) data reported directly from large facilities and suppliers across the United States are now easily accessible through the Environmental Protection Agency’s (EPA’s) GHG Reporting Program. The 2010 GHG data released in January includes public information from facilities in nine industry groups that directly emit large quantities of GHGs, as well as suppliers of certain fossil fuels. EPA’s online data publication tool allows users to view and sort GHG data for calendar year 2010 from over 6,700 facilities in a variety of ways including by facility, location, industrial sector, and the type of GHG emitted. Data for direct emitters show that in 2010 power plants were the largest stationary sources of direct emissions with 2,324 million metric tons of carbon dioxide equivalent (mmt/CO2e), followed by petroleum refineries with emissions of 183 mmt/CO2e. Carbon dioxide accounted for the largest share of direct GHG emissions with 95 percent, followed by methane with four percent, and nitrous oxide and fluorinated gases accounting for the remaining one percent. In addition, 100 facilities each reported emissions over seven mmt/CO2e, including 96 power plants, two iron and steel mills, and two refineries. A quick glance at just the 1,900 “other industry, government, and commercial” sector companies in the reporting data show quite an array of businesses, from food and beverage processors, medical centers, and airline maintenance operations, to dairies, ethanol manufacturers, airports, and universities. Several independent rendering plants are also listed in the reporting data. Mandated by the fiscal year 2008 Consolidated Appropriations Act, EPA launched the GHG Reporting Program in October 2009, requiring the reporting of GHG data from large emission sources across a range of industry sectors, as well as suppliers of products that would emit GHGs if released or combusted. Most reporting entities submitted data for calendar year 2010. However, an additional 12 source categories will begin reporting their 2011 GHG data in 2012. The GHG Reporting Program data can be accessed at http://epa.gov/climatechange/emissions/ghgdata. R


States, stricter regulation of transport of animals to slaughter, including horses, as well as forcing all meat processors to kill all nonambulatory livestock – no matter the species or the reason – so that they do not enter the food supply. The world’s largest animal rights group may try and reinvigorate legislation it’s pushed for the last two Congresses restricting federal food purchases – including school lunch/breakfast programs; women, infants, and children assistance; and Department of Defense – so that only farmers practicing HSUS’ definition of animal welfare could be federal suppliers. An assault on the use of primates in biomedical research is expected, as well as HSUS support of a proposed ban on antibiotic use on farms.

Immigration Reform Both sides of the aisle on both sides of the hill dread the notion of trying to rewrite federal immigration laws during an election year to deal with what’s estimated to be about 12 million illegal immigrants residing in the United States. The extremes range from those who would round up all illegal residents and ship them back to their country of birth no matter the impact on the U.S. economy, to those who create a “path to citizenship” or an amnesty program for illegals so that industries that rely upon immigrant labor, including agriculture, will not suffer economically. Also on the table are proposals to rewrite the temporary worker visa rules to make it easier for illegals to obtain permission to remain in the United States, as well as a dedication by Senate Democrats to provide citizenship to the children of illegals born in this country as long as they enroll in college or join the military. This effort will start in the Senate, led by Senators from California, Florida, Texas, and Arizona, but at the onset, there is no agreement among those elected officials on where to start and where they’d like to finish. This is also an issue the White House would like to dodge, but given the growing importance of the Hispanic vote in national elections, the Obama administration may not have that luxury. R

Washington Continuedfrompage6

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Renewable Diesel

By Andrew RojeskiVice President, Renewable Energy, Tyson Foods, Inc.Management Committee Member, Dynamic Fuels, LLC

Just a few years ago, few people would have envisioned fat trimmings from a meat processing plant or fryer grease from a restaurant being used to make a renewable diesel and jet fuel. But that’s what is quickly happening today thanks to a few companies, including Dynamic Fuels, LLC. Formed in 2007, Dynamic Fuels is an equal joint venture between Tyson Foods, Inc., of Springdale, AR, a leading producer of chicken, beef, and pork, and Syntroleum Corporation of Tulsa, OK, a technology company. The goal of the venture is to add value to non-food grade fats, oils, and greases by converting them into advanced renewable fuels. Dynamic Fuels broke ground on a renewable diesel plant in Geismar, LA, in late 2008 and began operations in November 2010. Unlike the ethanol and biodiesel industries that predominantly use food grade ingredients such as corn and soybean oil to produce fuel, Dynamic Fuels uses non-food grade fats, oils, and greases. In addition, renewable diesel offers performance and environmental advantages over traditional fuels and is a sustainable alternative to fossil fuels. The Louisiana location was chosen by Dynamic Fuels for several reasons. Geismar, which is situated between Baton Rouge and New Orleans, offers the needed infrastructure such as access to ports, along with an ample workforce. The state of Louisiana also offered attractive financing options that were friendly to businesses and job creation. The facility was built and designed to produce up to 75 million gallons of fuel per year. It currently employs 50 people and approximately 30 contractors. Since completing start-up, the plant has produced and supplied biofuel to some highly-visible customers, including commercial airlines and the U.S. military.

What is Renewable Diesel? Renewable, synthetic diesel fuel is not the same as biodiesel. It is a “drop-in” biofuel that is a chemical copy of the petroleum-based version allowing it to be used in the same engines and distribution systems as fossil fuel. The fact this fuel can drop into existing distribution systems – storage tanks, pipelines, and the like – is significant since the cost of a new infrastructure would severely restrict its uses. At Dynamic Fuels, once the feedstock reaches the plant, it goes through a pre-treatment system, then into a chemical process called hydro-treating. Afterward, a proprietary process rearranges the shape of the molecule based on the customer’s application. Ultimately the fuel is distilled into three different products: renewable diesel, naphtha (a blending stock), and liquid petroleum gas.

An emerging market for fats, oils, and greases



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Compounds such as sulfur and nitrogen are removed during the refining process. What remains is a renewable fuel that burns efficiently and cleanly. Dynamic Fuels’ renewable diesel is very low in the three major categories of emissions – nitrogen oxides, sulfur (almost zero), and aromatics (zero). The renewable diesel and jet fuel produced by Dynamic Fuels offers substantial performance and environmental advantages over petroleum-based fuels, such as higher energy content, better cold flow properties enabling it to function effectively in cold weather, and reduced carbon dioxide (CO2) emissions. The renewable diesel fuel can be used in all climates and is suitable for arctic and jet fuel applications. For example, fuels used in aircraft are subjected to temperature extremes exceeding 50 degrees Fahrenheit below zero at high elevations. The diesel is synthetic since it is made from sources other than petroleum. The Dynamic Fuels production process yields the same molecule produced in traditional petroleum diesel processing. However, the difference is that synthetic fuel does not contain the impurities that give petroleum diesel its characteristic odor and color.

Feedstock Flexibility The Dynamic Fuels plant is designed to have the flexibility to convert a variety of bio-feedstocks into fuel. Animal fat, vegetable oil, used cooking oil, and grease are all possible sources. Hydrogen is the other ingredient needed to produce the fuel. As one of the nation’s leading producers of chicken, beef, and pork, Tyson Foods has access to ample supplies of feedstock that can potentially be used in the Dynamic Fuels plant. In addition, Tyson Foods has the resources to help coordinate the procurement of other feedstocks and is always looking to identify high quality, low cost options. Since start up, Dynamic Fuels has predominantly used yellow grease and tallow, but is also pursuing the use of other next generation feedstocks such as algae oil.

Customer Base Growing Renewable diesel producers are working to develop a broad base of customers for its product. For example, the fuel can be used by conventional diesel producers as a premium blending fuel to help petroleum diesel meet government standards. The fuel may also particularly appeal to the operators of fleet vehicles and city buses who are seeking ways to reduce emissions in cities subject to large amounts of pollution. Other markets include the military and commercial airlines that have expressed interest in ultra-clean renewable jet fuel. Of course, there is a smaller but growing market in the “green” movement – people and businesses who want to use sustainable fuels and reduce emissions. Renewable jet fuel has recently been successfully used in regularly scheduled commercial airline flights in Europe and the United States. In June 2011, KLM Royal Dutch Airlines became the first airline in the world to operate a commercial flight on biokerosene, which included renewable jet fuel supplied by Dynamic Fuels. KLM used a blend of 50 percent conventional jet fuel and 50 percent renewable jet fuel in

Rendered fats, oils, and greases are transformed into a clean renewable diesel fuel.


While Dynamic Fuels is finding renewable diesel success in the United States, Neste Oil has found its place as the world’s leading supplier of renewable diesel with four plants scattered throughout the world – two in Finland, one in Singapore, and one in the Netherlands – for a combined annual capacity of two million metric tons (approximately 544 billion gallons). Driven by renewable energy legislation both in the European Union and individual countries, Neste Oil’s two plants in Finland came online in 2007 and 2009, the Singapore plant was completed at the end of 2010, and the refinery in Rotterdam, the Netherlands, started up in September 2011 (see “Biofuels Bulletin” on page 16). Neste Oil’s refineries are designed to have the flexibility to convert a variety of bio-feedstocks such as animal fat, vegetable oil, used cooking oil, and grease into fuel. During

the first seven months of 2011, the company’s renewable diesel plant in Singapore primarily used tallow imported from Australia before switching to lower cost palm oil. An incentive for renewable diesel producers to use tallow if selling the biofuel on the European market is that, according to the Renewable Energy Directive, biofuels produced using processed animal fats and/or used cooking oil count double towards greenhouse gas emissions savings mandates. Neste Oil has also recently entered the aviation fuels market. In mid-July 2011, Lufthansa launched a six-month biofuel trial on four daily flights between Hamburg and Frankfurt, Germany. An Airbus A321 ran one engine on a mix of 50 percent regular jet fuel and 50 percent biosynthetic kerosene produced by Neste Oil and derived from biomass consisting of animal fats and jatropha and camelina oils.

Renewable Diesel’s European Player


Renewable Diesel Continuedfrompage11

both engines of a Boeing 737-800 aircraft that carried 171 passengers from Amsterdam, the Netherlands, to Paris, France. KLM also scheduled more than 200 commercial flights between the two cities in September 2011 using the same fuel. This demonstrated the performance and environmental advantages of renewable jet fuel. In the United States, Alaska Airlines became the first airline in the country to use biofuel on commercial flights, which was sold by Dynamic Fuels. The flights took place in November 2011 and involved a Boeing 737 flying from Seattle, WA, to Washington, DC, and a Bombardier Q400 traveling from Seattle to Portland, OR, operated by sister carrier Horizon Air. These flights were selected to demonstrate the use of biofuel on a transcontinental route as well as a short route. The trips were the first of 75 regularly scheduled flights Alaska Airlines and Horizon Air made using the biofuel blend as part of an effort to raise awareness of alternative commercial aviation fuel. In December 2011, the U.S. Defense Logistics Agency signed a contract to purchase 450,000 gallons of advanced drop-in biofuel, the single largest purchase of biofuel in government history. According to government officials, the fuel will be used in the U.S. Navy’s demonstration of a Green Strike Group in the summer of 2012 during the Rim of the Pacific Exercise, the world’s largest international maritime exercise. The fuel for the Navy will be manufactured at Dynamic Fuels’ Geismar plant using U.S. sourced yellow grease as

well as algae oil as feedstock. The fuel will be delivered to the U.S. Navy in May 2012. Dynamic Fuels has previously provided the U.S. military with fuel for testing and this contract demonstrates that the company is building momentum for the sale and use of its renewable diesel, and confirms the Navy recognizes the performance and environmental advantages of the renewable fuel.

Looking Forward Renewable diesel producers will continue to explore ways to add value to the feedstocks it procures and cultivate relationships with customers who value the performance and environmental advantages provided by the producer’s fuels. For biofuels to be more cost competitive, companies like Dynamic Fuels must be able to continue to scale the technology by producing larger volumes. This will require cultivating premium markets, identifying new applications, and developing long-term customer relationships. No one said U.S. efforts to increase the production of alternative fuels would be easy. However, the creation of alternative fuels businesses like Dynamic Fuels is proof that progress is being made and that commercial-scale renewable diesel production is becoming a reality. As one recent former U.S. president put it, “Reality challenges and rewards. I believe our best days are yet to come.” R

To see video of Dynamic Fuels’ renewable diesel plant, visitwww.youtube.com/watch?v=zsI1dov9Xbw.

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Biodiesel production in the United States increased significantly in 2011 and the industry is on track to meet its renewable volume obligations for 2012 and beyond. Last year began with all of the elements in place for a healthy industry: the Renewable Fuel Standard, or RFS2, biomass-based diesel and advanced biofuel requirement; a reinstated tax policy complemented by state biodiesel policies; and strong industry partnerships. According to the Environmental Protection Agency (EPA), as of November 30, 2011, the U.S. biodiesel industry had produced more than 947 million gallons for the year; a more than 630 million gallon increase over 2010. While the RFS2 is the most significant driver for increased biodiesel sales in 2011, the reinstatement of the federal blender’s tax credit also aided in infrastructure investment during the last year. Biodiesel economics were favorable for discretionary blending throughout 2011 with blenders enjoying the benefit of strong renewable identification number (RIN) prices.

Sound, Stable Federal Policy Will Grow the Biodiesel Industry The RFS2 calls for a one billion gallon renewable volume obligation (RVO) for biomass-based diesel in 2012. In addition, biodiesel may play an important role in meeting the advanced biofuel RVO. Other advanced biofuels include sugar cane ethanol, renewable diesel, cellulosic ethanol, and cellulosic diesel. Today, biodiesel is the only advanced biofuel produced in the United States in significant commercial quantities. On December 27, 2011, the EPA confirmed the 2012 biomass-based diesel RVO would be set at the anticipated one billion gallons. The agency delayed its 2013 volume requirements announcement, however, the industry anticipates it will remain at the 1.28 billion gallon level previously announced. “The biodiesel industry has been working aggressively to ensure that the administration fully understands the economic, environmental, and national security benefits of growing the biomass-based diesel pool, and will continue to do so in the

future to ensure that this critical policy remains strong,” said Anne Steckel, vice president of Government Affairs for the National Biodiesel Board. The federal biodiesel blender’s tax credit has been very effective at offsetting the cost of compliance for the RFS2. The tax credit for 2012 was not renewed before Congress adjourned for the year effectively creating a tax credit lapse. In 2012, the industry and its supplier partners will continue to push for the reinstatement and retroactivity of the tax credit while determining an appropriate legislative pathway to create an enhanced producer’s credit program that will support biodiesel production and blending infrastructure. “While there is support for the biodiesel tax incentive program from a broad base of both Democrats and Republicans in both the Senate and House, it is imperative that our biodiesel

industry partners continue to rally for this program,” said Scott Hedderich, director of Corporate Affairs for Renewable Energy Group. “State soybean associations as well as the American Soybean Association and the U.S. Canola Association have been extremely strong allies in recent federal legislative efforts even though they only represent roughly 50 percent of the feedstock market for the biodiesel industry. A strong coalition across a number of sectors in the chain is the best way to achieve a positive long-term tax policy.”

Feedstock Markets The U.S. feedstock matrix for biomass-based diesel is quite diverse and is representative of a strong U.S. oilseed, ethanol, and livestock industry. Compared to its early roots of canola and soybean oil usage, the list of commercial feedstocks used today to make biodiesel is incredibly diverse: beef tallow, pork fat, poultry fat, used cooking oil, and inedible corn oil. Several industry participants have invested in multi-feedstock pretreatment and production technology to utilize a wide variety of raw materials adding significant value to historically under-valued feedstocks. As a result, it appears

Biodiesel Industry on the Right Track

By Dave ElsenbastVice President, Supply Chain, Renewable Energy Group

2011 Illinois Yellow Grease Price vs. 5 Year Average

Continuedonpage25

12-01-17-RZ-oafi-HF_AZ_TKV_7_10inch_RZ_Pfade.indd 1 17.01.12 10:36


U.S. Renewable Fuel Standards Finalized for 2012

Biofuels Bulletin By Tina Caparella

The U.S. Environmental Protection Agency (EPA) has finalized the 2012 percentage standards for four fuel categories that are part of the agency’s Renewable Fuel Standard (RFS2) program. EPA continues to support greater use of renewable fuels within the transportation sector every year through the RFS2 program, which encourages innovation, strengthens American energy security, and decreases greenhouse gas pollution. The Energy Independence and Security Act of 2007 (EISA) established the RFS2 program and the annual renewable fuel volume targets, which steadily increase to an overall level of 36 billion gallons in 2022. To achieve these volumes, EPA calculates a percentage-based standard for the following year. Based on the standard, each refiner and importer determines the minimum volume of renewable fuel that it must ensure is used in its transportation fuel. The final 2012 overall volumes and standards are: • biomass-based diesel, one billion gallons (0.91 percent); • advanced biofuels, two billion gallons (1.21 percent); • cellulosic biofuels, 8.65 million gallons (0.006 percent); • total renewable fuels, 15.2 billion gallons (9.23 percent). In the spring of 2011, EPA had proposed a volume requirement of 1.28 billion gallons for biomass-based diesel for 2013. EISA specifies a one billion gallon minimum volume requirement for that category for 2013 and beyond, but enables EPA to increase the volume requirement after consideration of a variety of environmental, market, and energy-related factors. EPA is continuing to evaluate the many comments from stakeholders on the proposed biomass-based diesel volume for 2013 and will take final action sometime this year. Overall, EPA’s RFS2 program encourages greater use of renewable fuels, including advanced biofuels. For 2012, the program is implementing EISA’s requirement to blend more than 1.25 billion gallons of renewable fuels over the amount mandated for 2011. The National Biodiesel Board (NBB) expressed support for EPA’s 2012 renewable fuel requirements and called on the Obama administration to act quickly in completing a 2013 requirement that maintains the agency’s recommended volume increases for biomass-based diesel. U.S. biodiesel production had reached an all-time annual high of 908 million gallons through the end of November 2011, according to annual figures compiled by EPA. The previous annual record for biodiesel production was 690 million gallons in 2008. “This industry has shown without a doubt that it can meet and exceed the goals of this program in a sustainable way, with a diverse mix of feedstocks,” said Anne Steckel, vice president

of federal affairs at NBB. “Our industry has plants in nearly every state in the country that are hiring new employees and ramping up production, in part because of the demand that this policy creates.” According to the NBB, a recent economic study on biodiesel found that domestic production of 800 million gallons supports more than 31,225 jobs, generates income of nearly $1.7 billion to be circulated throughout the economy, and creates more than $3 billion

in gross domestic product (GDP). At 1.28 billion gallons of production – the EPA’s initial proposal for 2013 – the industry would support 50,725 jobs, generate $2.7 billion in income, and create nearly $5 billion in GDP. Biodiesel makes up the vast majority of the biomass-based diesel program under the RFS2, about 95 percent of the volume in 2011. Because it also qualifies as an advanced biofuel under the program – with greenhouse gas emission reductions of 57 percent to 86 percent – biodiesel is also eligible to help meet the standard’s general advanced biofuels requirements.

Clemson Biodiesel Program Named Project of the Year The biodiesel program at Clemson University has been named the Energy Project of the Year by the Association of South Carolina Energy Managers. The biodiesel initiative was started with the goal to convert diesel-powered vehicles to use more biodiesel made from used cooking oil collected at dining halls and local businesses. The vehicles and equipment in the university’s landscaping and utility services use 20 percent biodiesel now. The plan is to increase that to 100 percent. At Clemson, the used cooking oil is taken to the BioEnergy Lab in McAdams Hall, where students work with instructors and staff to convert the raw material into the alternative fuel. This work is done in a facility that is powered 100 percent by renewable energy. “With innovative research on emerging alternative fuel sources and the continuing support of the Clemson facilities staff, our percentage of renewable fuel consumed will continue to increase, improving Clemson’s environment and establishing Clemson University as a leader in renewable fuels research and implementation,” said David Thornton, research associate for the biosystems engineering program. The biodiesel fuel is distributed from a 1,000 gallon tank at the university lumber yard. The program has the potential to save $8,000 to $9,000 a year and keeps 70,000 pounds of carbon from reaching the atmosphere. The biodiesel program is part of a larger sustainability initiative at Clemson.


Continuedonpage18

Dynamic Fuels to Supply Renewable Fuel to U.S. Navy Dynamic Fuels, LLC – a joint venture between Tyson Foods, Inc., and Syntroleum Corporation – has been awarded a contract to supply the U.S. Navy with 450,000 gallons of renewable diesel made from used cooking oil. Solazyme, Inc., a renewable oil and bioproducts company, will help Dynamic Fuels fulfill the contract, which the Navy and the U.S. Department of Agriculture report is the single largest purchase of biofuel in government history. As part of his energy security goals outlined in March 2011, President Barack Obama directed the Departments of Agriculture, Energy, and Navy to work together to advance a domestic industry capable of producing “drop-in” biofuel substitutes for diesel and jet fuel. The U.S. Navy fleet uses more than 1.26 billion gallons of fuel each year. The contract involves Dynamic Fuels supplying the Navy with 100,000 gallons of jet fuel (hydro-treated renewable JP-5, or HRJ-5) and 350,000 gallons of marine distillate fuel (hydro-treated renewable F-76, or HRD-76). The renewable fuel will be used in the U.S. Navy’s demonstration of a Green Strike Group in the summer of 2012 during the Rim of the Pacific Exercise, the world’s largest international maritime exercise. The renewable diesel will be manufactured at Dynamic Fuel’s Geismar, LA, plant using U.S.-sourced yellow grease (used cooking oil) as well as Solazyme’s tailored algal oil as feedstocks. The biofuel will be delivered to the U.S. Navy in

May 2012 and be mixed with aviation gas or marine diesel fuel for use in the demonstration. In preparation for this demonstration, the Navy recently completed testing of all aircraft, including the F/A-18, all six Blue Angels, and the V-22 Osprey, and has successfully tested the RCB-X (Riverine Command Boat), training patrol craft, self-defense test ship, and conducted full-scale gas turbine engine testing using renewable diesel produced by Dynamic Fuels. The Defense Logistics Agency will pay half the price for the Green Strike Group biofuel than it paid for biofuel for testing in 2009. Increased demand will likely continue this trend toward more cost-effective biofuel.

Canada Invests in Biodiesel Canada strengthened its position as a clean energy superpower with a Government of Canada investment of up to $31.1 million, over six years, in Kyoto Fuels Corporation that will support the production of biodiesel, sustain job creation, and help stimulate the economy. The investment was made through the ecoENERGY for Biofuels program. Kyoto Fuels Corporation, located in Lethbridge, AB, will produce up to 66 million liters (17.4 million gallons) of biodiesel a year. The project consists of converting vegetable oil, used cooking oil, or animal fats into biodiesel. The company intends to sell the product to diesel producers in Western Canada and the northwestern United States.


Biofuels Continuedfrompage17

The Government of Canada is investing up to $1.5 billion through the ecoENERGY for Biofuels programs over nine years and recognizes that the increased use of biofuels contributes to reducing Canada’s greenhouse gas emissions as well as creating clean energy jobs. Regulations in Canada now require a five percent renewable fuel content based on the national gasoline pool and a two percent requirement for renewable content in diesel fuel and heating oil.

Food Waste to be Processed into Biogas BDI – BioEnergy International AG has been commissioned to build a multi-feedstock biogas plant in northern France to process industrial food waste into biofuel. The unnamed company annually collects and separates about 65,000 metric tons of waste from food production and retailing, restaurants, and the agricultural industry. Construction of the plant has already begun and once completed will produce almost 4.2 million cubic meters of biogas resulting in 2.1 megawatts of electricity per year, enough to supply about 4,000 European households. The facility has been designed so that the capacity can be easily doubled in the future. To handle contaminants in the raw material such as packaging materials, metals, or glass, a new separation concept from BDI is being used at this biogas plant that has been succes-sfully used at other plants built by the Austrian company.

Illinois Extends Biodiesel Tax Incentive Members of the Illinois House and Senate have extended the state’s biodiesel blending program an additional five years. Senate Bill 397 extends the sunset date for the biodiesel state sales tax incentives to December 31, 2018, from December 31, 2013. With the extension, any biodiesel blend of more than 10 percent continues to be eligible for fuel tax exemption. “Since Illinois’ inception of the B11 [11 percent biodiesel] blending credits in 2004, more biodiesel has been blended in Illinois annually than in any other state,” said Daniel J. Oh, president and chief executive officer at Renewable Energy Group (REG), citing data from a recent Illinois biodiesel economic impact study by CardnoENTRIX. “By extending the biodiesel tax abatement for B11 and higher blends through 2018, the Illinois legislature showcases its commitment to more than 1,500 green collar jobs in the state.” REG produces biodiesel at two Illinois facilities as well as markets the alternative fuel at several Chicago-area terminal locations. Since the sales tax exemption went into effect, annual biodiesel production capacity in the state has increased from 20 million gallons to a record 188 million gallons in 2010. Production in 2011 is slated to surpass the 2010 record. Illinois’ biodiesel industry generated $1.5 billion of household income, and was responsible for more than $2.6 billion of the state’s gross domestic product between 2004 and 2010.

Lufthansa Makes Transatlantic Flight with Biofuel After a six-month practical trial involving biosynthetic fuel that began in mid-July 2011, Lufthansa has announced positive results. In all, 1,187 biofuel flights were operated between Hamburg and Frankfurt, Germany, consuming 1,556 metric tons of biokerosene produced by Finnish company Neste Oil and derived from biomass consisting of animal fats and jatropha and camelina oils. According to initial calculations, carbon dioxide (CO2) emissions were reduced by 1,471 metric tons. The highlight of the biofuel trial was a transatlantic flight to the United States in mid-January. A Boeing 747-400 carrying about 40 metric tons of a biosynthetic fuel mix flew from Frankfurt to Washington, DC. This flight alone reduced CO2 emissions by 38 metric tons, equivalent to the emissions of six scheduled flights between Frankfurt and Berlin, Germany. “As a next step, we will focus on the suitability, availability, sustainability, and certification of raw materials,” stressed Lufthansa project manager Joachim Buse. “But first we must tap into this market. However, Lufthansa will only continue the practical trial if we are able to secure the volume of sustainable, certified raw materials required in order to maintain routine operations.”

Neste Oil Celebrates Opening of Renewable Diesel Refinery Neste Oil celebrated the grand opening of its renewable diesel refinery in late December 2011 in the Port of Rotterdam, the Netherlands, with some 150 guests. Start-up of Neste Oil’s Rotterdam refinery took place in September 2011 producing its NExBTL renewable diesel. The plant was completed on-schedule, on-budget, and employs about 150 people. “This refinery represents a huge investment in our economy and provides a boost to sustainable growth,” said Dutch Deputy Prime Minister and Minister for Economic Affairs, Agriculture, and Innovation Maxime Verhagen. “It will help the Netherlands realize its ambitions as a leader of the bio-based economy and a major biomass hub in Europe.” The Rotterdam refinery has an annual production capacity of 800,000 metric tons, or one billion liters (2.6 billion gallons) of renewable diesel and cost around 670 million euros to build. The facility is capable of using a variety of feedstocks such as vegetable oils, by-products of vegetable oil refining (e.g., stearin), as well as waste oils and fats that all meet the stringent sustainability criteria included in the European Union Renewable Energy Directive. The Rotterdam refinery is also capable of utilizing future feedstocks like algae oil. Neste Oil has a similar-sized facility in Singapore that came online in September 2010 and operates two renewable diesel plants at the Porvoo refinery in Finland with a combined capacity of 380,000 metric tons per year. With the start-up of the Rotterdam facility, the production capacity of Neste Oil’s renewable diesel refineries totals approximately two million metric tons annually. The main target markets for its NExBTL are in Europe and North America.


Scheduled Biodiesel Increase Suspended in Australia Australia’s New South Wales (NSW) Government is suspending the January 1, 2012, scheduled increase of the biodiesel mandate due to insufficient local production to meet or exceed the current mandate. The Biofuels Act 2007 requires primary petroleum wholesalers to ensure biodiesel makes up a minimum two percent of the total volume of NSW sales. The legislation was amended in October 2009 to increase that amount to five percent on January 1, 2012. “In the last two years, there has been little investment in the production of biodiesel locally,” said Minister for Resources and Energy Chris Hartcher. “For a five percent mandate to be met, NSW would require approximately 200 million liters (52.8 million gallons) of biodiesel per year. The only current commercial biodiesel producer in NSW is producing 12 million liters per year. The shortfall would have to be imported, which would fail to encourage investment in the local production of biodiesel.” The NSW Government will consider increasing the biodiesel mandate once there is sufficient local production to meet the five percent volume.

Webster Resigns from Solazyme After joining Solazyme, Inc., in mid-September 2011 as the chief operating officer for the renewable oil and bioproducts company, Jeff Webster resigned at the end of December for health and personal reasons. Based in San Francisco, CA, the company has not named a replacement. Prior to joining Solazyme, Webster served as group vice president and general manager of Tyson Foods’ Renewable Products business. R

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Over the River and Through the Woods

From the Association By Tom Cook, President, National Renderers Association

Living in the Washington, DC, area with a job that requires working with elected and government officials sometimes causes one to be accused of being guilty by association. I went to a family gathering during the Christmas holidays in north central Kansas. It was with my wife’s family which, when all together, are a lot of people. Her brothers, sisters, in-laws, and nieces and nephews and their families represent a pretty good cross section of middle-America, although I would guess most of them are on the conservative side. Well, when the relatives from the east come to visit, we get the third degree. What is going on in Washington? Can’t you do something about the mess back there? “If things don’t shape up, we’ll throw all the bums out,” they tell me. Yet family members seem pretty pleased with their own representatives in Congress and feel if all the other Congress members were more like them, all would be fine. I won’t even get into what they think of the Occupy Wall Street crowd. I do my best to explain some things, but in many cases, I don’t even try. The family doesn’t like the gridlock in Washington, but if it stops something they are against, it’s okay. They are united in their belief that there are too many regulations. They don’t mind some they would classify as legitimate, but too many regulations don’t make any sense and cost too much to comply with. They describe these regulations as boneheaded and misguided. Did I mention that several family members are small business owners? So they speak with some experience. Many of them are doing okay financially. A niece and her husband own the local furniture store and funeral home, a situation not uncommon in small Midwestern towns. They say business is real good at the furniture store, which is reflective of the good prices farmers are experiencing with their livestock and grain. They are coming to town and buying the higher-end merchandise. But the local grain elevator is closing down and a brother-in-law is wondering if he will still have a job. A sister-in-law owns a variety store and although business has been pretty

good, it has been better. Her clientele reflects more of a cross-section of the community and is probably a better indicator of how things really are economically in rural America. With a large family gathering, you see a big variation of how they are doing. One indicator of how everyone is fairing financially is to look at the cars parked out front. Most of them were American-made, ranging from luxury cars to 20-year-old clunkers. Another observation is that their lives do not revolve around politics in Washington. Sure, they’re interested but they don’t dwell on it. It wasn’t too long after this discussion that we were talking about hunting, weather, family, hunting, local businesses, small-town gossip, hunting, sports, funerals, and barbeque recipes. Did I mention we talked about hunting? It is always refreshing to leave the Washington, DC, area to visit family, friends, and National Renderers Association members outside of the beltway because if you are not careful, living here can get you caught up in the hubbub. I often remind newcomers to the Washington scene that working for an association, it is our responsibility to “represent our members to Washington and not to represent Washington to our members.” The year 2012 will be stalemated between the two political parties mostly because it is an election year so I don’t believe much will get done. If any action should make one party look better that the other, it probably won’t happen. But I still abide by the famous quote of Winston Churchill: “It has been said that Democracy is the worst form of government except all those other forms that have been tried from time to time.” R

The family is united in their belief that there are too many regulations.


According to Niels Leth Nielsen, president of the European Fat Processors and Renderers Association (EFPRA), there is every reason to be positive going into the new year. “We’ve made great strides in 2011 on many fronts, working closely with feed chain partners, regulators, and legislators on issues as diverse as the animal by-products regulation and the Renewable Energy Directive,” Nielsen commented. The new animal by-products (ABP) regulation came into force in March 2011, affecting every renderer and fat processor in Europe. Ensuring that the new rules are interpreted and implemented correctly has required dedication by EFPRA staff and effective c o m m u n i c a t i o n w i t h regulators and frontline businesses in every European Union (EU) member state. EFPRA’s efforts to improve the closeness of working relationships with the European Commission have been effective. Through continued liaison with the commission, the industry’s concerns were noted and many suggestions adopted. Renderers in Europe are pleased that the redrafted ABP regulation is now a workable framework where safety is paramount and within which the industry can continue to develop the facilities, services, and technologies necessary to better serve consumers. European headlines last year were dominated by the commission proposal to reintroduce processed animal proteins (PAPs) to selected livestock feed, and they will be again in 2012. From the outset, EFPRA has stuck to one primary objective: to focus on the science that now underpins the understanding of the environmental and economic. The commission’s ongoing commitment to change, despite the concerns expressed by some member states, clearly underlines the view of Koen Van Dyck, head of unit, European Commission Directorate-General for Health and Consumers, that the value of these proteins should not be lost as a result of perceived risk – risk which, according to the best available science, is negligible. Europe’s rendering industry is mindful of the concerns of consumers and of the food businesses that depend directly upon their purchasing power. However, EFPRA’s own anecdotal research suggests that there is a significant and unrepresented body of consumers who want supermarket shelves stocked with safe, value-for-money poultry and pork reared in Europe using European resources – including PAPs. The PAP debate forced EFPRA to review its own communications role in 2011. Historically, the association has focused on enabling members, member states, and food

chain partners to share knowledge. Last year saw EFPRA take on a new role providing basic facts, science, and economic and environmental information about PAPs to a consumer audience. Traffic to the www.papinfo.eu Web site confirms that it’s been very well received and the industry takes pride in the straightforward, accurate, and objective information contained on its pages. The role of EFPRA’s members extends beyond the feed chain as work with the Renewable Energy Directive (RED)

shows. The association’s leadership is increasingly confident that regulators in Brussels, Belgium, understand what the industry has to offer, firstly as a processor of residue materials and then in the production of renewable products in the form of biofuels. “It is absolutely essential that in 2012 the RED reflects the true value of our processes and products,” Nielsen noted. “Without that recognition we face a future starved of the investment necessary to meet the demands of both regulators and the food industry we serve with regard to production of sustainable biofuels.” And while one eye is kept firmly fixed on Europe, EFPRA’s goals for 2012 require

a look further afield too. The association’s commitment to the World Renderers Organization underlines a core belief that best practice and technological advances will result from working together beyond the boundaries of language and geography. EFPRA’s work is and has always been underpinned by research. To that end, the group will continue to assist the Fats and Protein Research Foundation in 2012 to bring about the advances in knowledge and technology that have been touched on already. “As with so many sectors, our greatest long-term challenge and opportunity lies in sustainability,” Nielsen stated. “In the coming year we must continue to tread that path with care, focusing the minds of those who influence our industry on the impact of their actions. We must be mindful, for example, that as a result of regulation, European animal proteins are attracting higher prices elsewhere in the world, while Europe imports alternatives such as soya from South America at great environmental cost. “There is much work to be done, but I believe that 2012 can be the year in which we begin to recognize the true value of animal by-products,” he continued. “We [EFPRA] will certainly be working hard to ensure that’s the case.” R

Recognizing the True Value of Animal By-products

Valuable animal proteins are safe for feed use

Draft legislation published by the European Commission confirms the safety, feed value and

environmental importance of processed animal protein, according to EFPRA, the body which

represents European animal by-product processors.

“We are pleased that after thorough examination of safety and value of processed animal

protein, the EU Commission has moved to amend the regulations,” says Niels Leth Nielsen,

EFPRA President. “Assuming that the new legislation is approved by member states later this

year – which we hope it will be – this valuable feed ingredient could be back in selected rations

within a year.

“The legislation will restrict the use of processed animal protein to feed for omnivores and

carnivores including pigs, poultry and farmed fish. The ban on feeding animal proteins to

ruminants remains in place.

“The ban on intra-species recycling also remains. This draft regulation requires that animal by-

products destined for feed use are handled and processed separately to prevent any potential

cross-contamination, ensuring that feed for cattle and other ruminants remain free of processed

animal protein.

“Sustainability has been a concern for the duration of the post-BSE feed ban,” explains Mr

Nielsen. “Animal feeds have used soya and other imported vegetable proteins, or harvested fish

meal, all of which carry significant environmental costs.

“European pig and poultry producers and fish farmers would then be able to use processed

animal protein in feed if they wish,” Mr Nielsen points out. “It is still vitally important that we have

access to export markets for processed animal protein made from high quality European animal

by-products, putting European producers on a level playing field with their non-European

counterparts.”

-ends-

3rd May 2011

Press Information

“There is much work to be done, but I believe that 2012 can be the year in which we begin to recognize the true

value of animal by-products.” Niels Leth Nielsen

EFPRA President


Future Possibilities for Renderers Worldwide

International Report By Fernando Mendizabal FernandezRengra - Rendimientos Grasos, Mexico

There is always a background knowledge that shapes our thoughts and directs our actions. The intention of this article is to provoke action, first in revisiting the fundamental background knowledge you have as renderers and second, to question what is requiring our attention today to enable the existence of a new future for the rendering industry. At some moment of the development of an industry it is convenient to situate it in the context of the sigmoid curve and to reflect upon the stage where it is in the curve (Chart 1). The secret to constant growth is to start a new sigmoid curve before the first one peters out. The right place to start that second curve is at point A where there is time as well as the resources and energy (Chart 2). While we explore and reflect upon this, it might be useful to think about the fundamental grounding of the specific knowledge the rendering industry holds and the new opportunities the industry might be losing if it does not prepare well enough in advance to cope with a new global situation that is grounded on a highly valued knowledge. I would like to share with you the concern of reflecting on different scenarios that represent new possibilities for redesigning the meaning of the rendering industry worldwide. All the reflections here have the purpose to sow the seed for rethinking rendering, and while none of them are for immediate application, they might be helpful on beginning to explore new possibilities. With this purpose we approach to assess the global rendering performance since its conception as an industry and we bring forth some questions that the global players might find useful to design a new future based on science and technology. Let’s begin with the Roman Empire where the idea of recycling and converting animal by-products into usable products was born. In those days, it was necessary to find a way to clean the body, thus the production of soap was invented. This was recognized as a radical innovation and brought forth the implicit necessity for raw materials such as tallow. That fact began the rendering industry and shaped a new marketplace. Since then, uses of rendered products have gone through cycles. One such cycle took place before electricity was discovered with the invention of the candle using tallow as a raw material that brought forth a huge demand for rendered products and served as a platform of development for renderers. It is interesting to note that none of the drivers for growing the rendering industry have been grounded in inventions by renderers so a question arises here: How many patents have renderers issued in the last 100 years? Renderers have found opportunities in the past without being the actors of the invention of those opportunities. As soon as opportunities arose, renderers have acted and gained participation in those new markets that is assessed as more reactive than proactive. The same history has repeated lately

with biodiesel and biogas, the new drivers for development of the rendering industry. I wonder what would be the next invention that will have the capacity to develop the rendering industry and how can renderers situate themselves as the inventors. Or on the other side of the table, what can be invented that will have the possibility to affect the rendering industry’s future, just as beeswax took over the market from renderers when candles were manufactured with tallow? Are renderers working together on a global basis to communicate new ideas? One huge opportunity renderers have today is the existence of the World Renderers Organization (WRO). It was founded with the mission of representing the rendering industry worldwide in interactions with any organization that requires global representation. If we open the realm of possibilities of WRO and include a global coordination of technological developments inviting the best scientifics of each country with the purpose to build new drivers of development for the industry and to neutralize threats brought forth from new inventions of other industries, then renderers will become actors of their future. Every country has incentives for technological developments and if renderers apply those resources worldwide, then local work on global purposes can be achieved. Here are some questions that I would like to leave open for you to reflect upon. For WRO, how much money are renderers investing in research on a global basis as a percentage of their income? As a single renderer, what is your percentage of investment on research? Also for WRO, how is the global rendering industry performing in this context versus other industries that have

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Chart 1. Sigmoid Curve

Chart 2. Point of New Curve


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been successful in bringing forth new tech-based products? When we look at the development of computers and communications, what have these developments meant for the rendering industry on a global, country, or regional context? Are we exploiting any competitive advantage around it? When we look at the opportunity to read genetic code from every live being, what does it mean for renderers and their future? Will tailor-made clones diminish by-products? Can we build a competitive advantage for renderers around genetic codes? When we think about the space of possibilities to design on a nano-particles level, is that a space where renderers have an opportunity to build a new future? What can be designed with our raw materials, processes, or finished products applications at that level? What other values from animal by-products are obtained by other industries and why are renderers not able to obtain them? What strategic knowledge are we lacking? How much do renderers know about enzymes and bacteria as drivers of a new rendering industry? What needs to change to avoid the production of meals and to have the availability of the amino acids and minerals instead of the mix of proteins and minerals they conform? What should be the new role of renderers on a global, country, or regional basis? What relationship should we have with universities and academics? What could be the next high-tech rendering mission? How can WRO serve as a platform for the coordination of these efforts worldwide? And how can renderers around the world participate in this development of opportunities? There is a lot to know about new technologies and the industry’s actual situation with regard to them before we are able to begin sketching efforts on a specific plan of action. All technological developments will require direction, time, and funding so all the concerns mentioned here demand a parallel line of work for renderers. In many cases, the need for discovering and accepting this reality and obligation will take some

time, while in other cases research efforts in Europe and the United States are already being done on how to obtain more benefits from rendered products. What is not present today, however, is a global effort to bring forth new drivers of future development on high-tech new markets for renderers. I hope this article has triggered curiosity and interest in this challenge. Further on, if any of these ideas and opportunities for reflection trigger new conversations with yourself, your team,

your regional colleagues, and finally with other renderers worldwide, then the conversation will move into action that eventually will bring forth positive outcomes. Finally, it is important to recognize that we are living a present that is challenging us to exploit all the realms of technology to remain, as an industry, aware of the new markets and be enabled to design our future. Are you interested? And will you participate? R


Gimme Your Research Needs…Please

ACREC Solutions By Annel K. Greene, PhD, Center DirectorClemson University Animal Co-Products Research and Education Center

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In October 2011, the Clemson University Animal Co-Products Research and Education Center (ACREC) and the Fats and Proteins Research Foundation (FPRF) embarked on a renewed working relationship to find research solutions for the rendering industry. The first step in all research endeavors between a university and industry is identification of the most critical areas of need. Afterwards, researchers across the entire campus are asked to consider the research problems and devise ways to study and resolve the issues. At Clemson University ACREC, a request for pre-proposals is prepared listing the highest priority research need areas. This list is sent to researchers who then develop pre-proposals describing potential projects. During the ACREC Research Committee meetings, the researchers discuss the proposed project one-on-one with FPRF members to ensure the project goals fit with the industry’s needs and the proposed procedures would provide the answers needed. Those projects that are deemed by FPRF members to have merit for the industry are fine-tuned during the ACREC Research Committee discussions. This interaction between FPRF members and the researchers is designed to bring a better understanding of the industry’s needs to the researchers in context of rendering’s unique aspects. This opportunity not only allows the researchers to further understand rendering but also gives FPRF members a better understanding of research capabilities and limitations. Sometimes the proposed project idea is not on target for the industry but will spark an idea that leads to other work to resolve issues of need for the rendering industry. After the discussions, the chosen projects are revised, as needed, per FPRF directions. In order to develop the best research for the rendering industry, it is important to identify the most critical areas of need. In discussions with industry representatives, three areas of critical research need that have been identified thus far are (1) validating pathogenic bacterial death during rendering processes, (2) products that can be applied to protein meals for continued antibacterial protection, and (3) solutions to the polyacrylamide problem in dissolved air flotation sludge. Validating destruction of pathogens will not only contribute to the pool of knowledge about the safety of rendered products, but this information is also vital for upcoming regulatory discussions. Work has already been underway in this area at Clemson University ACREC but continuing research needs to be conducted to obtain the next pieces of validation data. Antimicrobial products are needed to provide protection against microbial recontamination of finished animal protein meals. There are commercially available antimicrobial products currently on the market but the choices are limited. If additional antimicrobial products can be identified, then renderers will have more choices for protecting finished meals.

Polyacrylamide is used in the treatment of wastewater to facilitate removal of solids. However, when these treated solids are presented in the rendering environment, this same polyacrylamide causes significant difficulties for processing. Polyacrylamide emulsions do not readily breakdown and the nature of the polyacrylamide can cause coating difficulties in rendering processing equipment. Currently, ACREC researchers are working on alternative methods of wastewater treatment to eliminate polyacrylamide. In the meantime though, considerable wastewater sludge containing polyacrylamide remains a problem for the industry. This is one of the more difficult research dilemmas and new, innovative solutions will be needed to resolve this issue. What other high priority research needs should be investigated for the rendering industry? There may be needs across the entire industry, or unique needs related to a particular segment such as specific types of rendering or based on the species rendered. Or perhaps there may be needs based on the unique nature of dead stock versus offal processing. With an up-to-date list of the industry’s specific research needs, researchers can develop the most meaningful and effective studies to assist renderers. However, the researchers need the industry’s assistance in developing a list of critical research needs. What are day-to-day problems that you and your company encounter? Is there a difficult step in the operation that could be made less troublesome if it were re-engineered? Is there any particular parameter that needs to be measured to ensure compliance with regulations? Or is there any research need that will improve safety for workers? Once a list is established, it will be prioritized by FPRF members on the ACREC Research Committee based on practicality and whether the problem is widespread within the industry. Those research topic areas that are deemed to have merit will be further considered. In collaboration with Clemson University, the problem area and need will then be


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assessed on whether it can be resolved through research. Researchers from across a wide array of disciplines will be asked to consider the best way to approach the research dilemma with the goal of finding solutions for the rendering industry. But it all begins with the industry giving researchers a list of high priority research needs. If you have a research area you would like ACREC to consider in the request for pre-proposals, please e-mail your topic by February 20, 2012, to Dr. Annel K. Greene at [email protected] or Dr. David Meeker at [email protected]. These challenges will then be sent to ACREC researchers to see if solutions can be devised for the rendering industry. R

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there will be strong growth of emerging feedstocks like inedible corn oil to help the industry effectively and efficiently meet the increased biomass-based diesel targets in 2012 and 2013.

Market Outlook Together, the RFS2, a federal tax incentive program, and state biodiesel blending policies could spur the development of biodiesel blending

infrastructure. Additional investment in terminal locations, pipeline movements, and blending facilities may position the biodiesel industry as a sustainable part of the nation’s RFS2 goals. All of this sends supportive signals to feedstock markets to keep expanding oil and fat feedstock supplies. Together, the entire supply chain can meet the national goals of reducing greenhouse gas emissions, supporting agriculture, and reducing America’s dependence on imported petroleum. R

Biodiesel Continuedfrompage14


Court Lowers Burden of Proof for OSHA Citations

Labor and the Law By Mark A. Lies II and Meagan Newman

The secretary of labor only needs to allege and prove that the specific

employer’s actions were “imprudent” and the violation will stand.

Editor’s Note – Mark A. Lies II is a labor and employment lawattorneyandpartnerwith theChicago, IL, lawfirmofSeyfarthShaw,LLP.Hespecializesinoccupationalsafetyandhealth law and related personal injury and employment law litigation. Meagan Newman is a senior associate with Seyfarth Shaw specializing in occupational safety and health and environmentallaw.Legaltopicsprovidegeneralinformation,notspecificlegaladvice.Individualcircumstancesmaylimitormodifythisinformation.

Shortly before the new year, the U.S. Court of Appeals for the Tenth Circuit rendered an opinion that not only altered the Occupational Safety and Health Administration’s (OSHA’s) burden of proof for its citations, but effectively reduced that burden to little more than a semantic impediment. In Compass Environmental, Inc., v. Occupational Safety and Health Commission; Department of Labor (Dec. 19, 2011), the court declared that OSHA, or the secretary of labor need not establish the elements of the long established four-part Atlantic Battery test to prove a violation but instead must only prove that a “reasonably prudent employer” would have anticipated the hazard at issue and done more to prevent it. Further, the court found this burden met where the secretary of labor had simply asserted that the employer at issue failed to act as a reasonably prudent employer without offering any evidence regarding whether a reasonably prudent employer in the same industry would have even recognized the hazard and, if so, what protective measures, if any, would have been taken. In effect, the employer’s liability is viewed in a vacuum with no reference to some recognized norms of safety recognition in the employer’s industry. According to the court, the secretary of labor only needs to allege and prove that the specific employer’s actions were “imprudent” and the violation will stand. This decision not only represents a dramatic change with respect to the proof necessary to sustain an OSHA violation, it also challenges traditional notions of due process and fairness in giving an employer notice of what conduct is permissible or prohibited so that it can act accordingly to be compliant.

The Atlantic Battery Test In Secretaryv.AtlanticBatteryCo. (1994), and several other cases that followed, the Occupational Safety and Health Review Commission set forth a four-part test for establishing violations of OSHA standards. Under this test, to establish a violation of an occupational safety or health standard, the secretary of labor must prove “(a) the applicability of the cited standard, (b) the employer’s noncompliance with the standard’s terms, (c) employee access to the violative conditions, and (d) the employer’s actual or constructive knowledge of the violation” (i.e., the employer either knew, or with the exercise of reasonable diligence could have known,

of the violative conditions). In Compass Environmental, rather than applying the Atlantic Battery test, the review commission applied a training-specific test and focused on the issue of whether a “reasonably prudent employer” would have anticipated the exposure at issue and provided the exposed employee with training on this hazard. The Tenth Circuit affirmed the commission’s decision, stating that the Atlantic Battery test was inapt and that the secretary of labor need only establish that a reasonably prudent employer would have taken more action. While this is not the first time the commission has applied this reasonably prudent employer test for a training violation, it appears that it is the first time a reviewing federal court of appeals has sanctioned its application in the absence of proof that the Atlantic Battery test factors have been established. While the Tenth Circuit’s decision is significant for this change in the burden of proof, it is also significant in that the court found that the secretary of labor met her burden without actually introducing any evidence of what a reasonably prudent employer in the employer’s industry would have done in the same or similar circumstances as those encountered by Compass Environmental.

Bad Facts Make Bad Law in Compass Environmental In 2006, Compass Environmental began construction on an underground slurry wall at a surface mine in Colorado. A two person excavator crew, consisting of the excavator operator and a trench hand, were tasked with digging a trench for the slurry wall. The trench hand was required to walk alongside the excavator and periodically grease the excavator with a grease line, a rubber and metal hose with a dispensing nozzle, which was attached to the excavator. He also checked the trench depth and watched for problems the operator could not see. During the first week of the project the company conducted a hazard assessment, prepared a job safety analysis, and provided training to employees regarding possible hazards. The trench hand was a new employee who had only joined the team a week into the project. The job safety analysis for the excavation stated that the operator and trench hand were to maintain a clearance of 20 feet between the excavator and overhead power lines. Because the trench hand joined the project after the initial training, he was given individual training; however, the record did not show that he received any instructions regarding the overhead power line. On March 18, 2006, the excavator operator – who had clearly been trained to maintain a safe distance from the power lines


– moved the excavator close enough to the power line for an electric current to pass from the line through to the trench hand standing by, resulting in the trench hand’s death. OSHA investigated the incident and issued a two-item serious citation for failing to adequately train the operator and trench hand and for failing to maintain proper clearance of the power line. While the citations were first vacated as to both the operator and trench hand after a hearing before an administrative law judge, OSHA only appealed the vacation of the citation that related to the training of the trench hand. The review commission reversed the judge’s decision as to the trench hand’s training and affirmed that citation. While there is no doubt that the events of that 2006 day were tragic, there is also no doubt that the employer conducted a hazard assessment, identified the possible hazard posed by overhead power lines, and trained employees with respect to this hazard. While the trench hand may not have received this training, the excavator operator whose actions led directly to this accident did receive that training (OSHA did not appeal the vacation of the training citation as to the operator). Even though the operator was fully trained and he caused the excavator to contact the electrical line, OSHA maintained there was still a training violation as to the trench hand who was never expected to perform work in proximity to the elevated electrical line since he worked at ground level. It is on this point that the court’s abandonment of the Atlantic Battery test and application of the “reasonably prudent employer” test leads to fundamental unfairness. Because the secretary of labor was not put to her burden to show that the cited training standard applied to the trench hand, as he did not operate the excavator, or that he had “access” to the hazard as would have been required under Atlantic Battery (since he worked at ground level and did not control the excavator), the employer’s ability to defend itself was materially impaired. Moreover, even though the secretary of labor conceded that she had the burden of at least showing that a “reasonably prudent employer in the industry” would have anticipated the sort of

electrical hazard that the trench hand encountered in this case and provided the trench hand with more training, the secretary of labor failed to introduce any evidence to satisfy this burden with any evidence from any witnesses. To the contrary, the proof offered in this case indisputably showed that the excavator operator defied his training and years of experience. While it may be a natural instinct to hold someone responsible when there is a fatality, the mere occurrence of a fatality does not establish a violation since it is critical to evaluate the employer’s conduct up to the time of the accident, using established and recognized legal criteria, to determine if there was any violation. In affirming the review commission’s decision in Compass Environmental, the court has negatively impacted employers’ legal defenses to citations.

Recommendations Employers can protect themselves by establishing an effective safety program that: • requires that a thorough hazard

assessment for each worksite is performed; • includes programs and procedures addressing the possible hazards of the workplace and ensures that training is provided to all employees that may encounter those hazards; • communicates the importance of safety to employees and supervisors both in writing and in action; • ensures that employees and supervisors are properly trained (including addressing potential language barriers or literacy issues involving employees), and have the necessary equipment and properly use it; • incorporates regular s i te inspections and work observations and corrects noted deficiencies in a timely manner; • alters training and personal protective equipment requirements wherever site inspections and assessments identify new possible hazards; • contains an effective and progres-sive disciplinary system that is routinely and consistently followed; and • documents these elements. R

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Mark Your Calendar

FebruaryNational Meat Association 66th Annual ConventionFebruary 14-18, Tucson, AZ • http://nmaonline.org

American Meat Institute Annual Meat ConferenceFebruary 19-21, Orlando, FL • www.meatconference.com

Pacific Coast Renderers Association 80th Annual ConventionFebruary 24-25, Carmel Valley, CAE-mail Jeanette Caito at [email protected]

Aquaculture America 2012February 29-March 2, Las Vegas, NV • www.was.org

MarchCanadian Cattlemen’s Association Annual General MeetingMarch 5-9, Ottawa, ON, Canada • www.cattle.ca

World Biofuels MarketsMarch 13-15, Rotterdam, the Netherlandswww.worldbiofuelsmarkets.com

National Grain and Feed Association 116th Annual ConventionMarch 18-20, Charleston, SC • www.ngfa.org

National Institute for Animal Agriculture Annual ConferenceMarch 26-29, Denver, CO • www.animalagriculture.org

14th Annual International Aboveground Storage Tank Conference and Trade ShowMarch 28-30, Orlando, FL • www.nistm.org

AprilPetfood Forum 2012April 2-4, Schaumburg, ILwww.petfoodindustry.com

National Renderers Association Spring MeetingApril 23-26, Las Vegas, NVhttp://nationalrenderers.org

American Oil Chemists’ Society 103rd Annual MeetingApril 29-May 2, Long Beach, CA http://annualmeeting.aocs.org

MayAustralasian Aquaculture 2012May 1-4, Melbourne, Australiawww.was.org

4th International Symposium on Managing Animal Mortalities, Products, By-Products, and Associated Health RiskMay 21-24, Dearborn, MIhttp://umaine.edu/byproducts-symposium

JuneEuropean Fat Processors and Renderers Association CongressJune 6-9, Dubrovnik, Croatiahttp://efpradubrovnik2012.com

Logontohttp://rendermagazine.com foracompleteupdatedlistingofindustrymeetings.

Have an interesting article idea, or

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included in a future issue of Render?

Then contact Render at editors@

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New Hours of Service Rules for Commercial Drivers Issued The U.S. Federal Motor Carrier Safety Administration (FMCSA) has released a revised hours of service (HOS) rule for commercial vehicle drivers. The final rule was published in the Federal Register on December 27, 2011, and has been slightly modified from the December 29, 2010, Notice of Proposed Rulemaking. FMCSA’s new HOS final rule revises the 34 hour restart provision. Following a maximum work week of 60 hours in seven days or 70 hours in eight days, a driver must have 34 consecutive hours off-duty. Effective July 1, 2013, the revision requires that the 34 hour restart period include two 1 a.m. to 5 a.m. periods based on FMCSA’s assertion that nighttime rest is more restorative than daytime rest. The final rule is an improvement over the original proposal, which required two 12 a.m. to 6 a.m. periods, but may require as little as 34 hours or as much as 48 hours off-duty depending upon when the driving week ends. Effective February 27, 2012, the new rule specifies that driving (or allowing a driver to drive) three or more hours beyond the driving-time limit may be considered an egregious violation and subject to maximum civil penalties of $11,000 per offense for the trucking company and up to $2,750 for each offense for the driver. R


People, Places, and...

Haarslev Acquires New Zealand Company, Will Build Russian Plant In early December, Haarslev Industries acquired all shares in the New Zealand-based company Flo-Dry Engineering, Ltd. Haarslev is headquartered in Sonderso, Denmark. Since 1983, Flo-Dry has specialized in supplying low temperature rendering systems, municipal sludge drying systems, gel bone processing systems, as well as a system to produce biodiesel from animal fats. Since many rendering installations in New Zealand and Australia use Haarslev indirect heated rendering systems, the acquisition will give present users in those countries local access to service and the latest technologies developed by Haarslev in recent years. Flo-Dry will gain access to markets in Europe, Russia, North and South America, Asia, and the Middle East where Haarslev Industries is already established. The product portfolios and the working procedures of Haarslev and Flo-Dry supplement each other in a way that enables the companies to share expertise in different fields and jointly develop products, resulting in the widest product and process range. Furthermore, the combined sales offices and agent network will provide global coverage for the two companies both within the rendering and fish meal industries as well as the environmental sector, where drying of municipal and industrial sludge is a major part of the business. Flo-Dry Engineering will now operate as Haarslev Industries, Ltd., offering the group’s full product program. “The product portfolios of the two companies are complementary to a large extent,” said Tissa Fernando of Flo-Dry. “Together with Haarslev Industries, we will have the size, innovative capacity, and global presence needed to succeed in our competitive industry.” “Flo-Dry customers will benefit from the process technologies and strong manufacturing capabilities of Haarslev Industries,” commented Claus Østergaard, president and chief executive officer of Haarslev Industries. “Having our own office in New Zealand and Australia enables us to offer local support and service to our valuable customers in this region.” Nearly halfway across the world, German rendering company Saria has placed an order with Haarslev Industries for a large rendering plant in Russia. The Saria Group is headquartered in Selm, Germany. “The strong presence with a local branch office as well as the company’s long experience on the growing Russian market were important factors when choosing Haarslev Industries as supplier and partner for this project,” said Liudvikas Morkunas, representative of Saria. “The order is very important for Haarslev Industries, as it confirms the company’s position as the most important process supplier to the Russian market,” commented Sales Director Henning Haugaard. “It also strengthens the long-term relationship between Haarslev Industries and Saria.” The plant will be built at the new Saria facility in Elabuga in the Russian Republic of Tatarstan, about 620 miles (1,000 kilometers) east of Moscow, and will consist of four continuous rendering lines: two lines for meat, each with an input capacity of 35,000 metric tons per year; a line for feathers with a capacity of 20,000 metric tons per year; and a line for blood with a capacity of 25,000 metric tons per year. Further, Haarslev Industries will supply thermal oxidizers for the treatment of vapor and air and steam boilers, and will be responsible for the total installation. Plant start-up is scheduled for the fourth quarter of 2012.

AOCS Leadership Changes Patrick Donnelly hasbeen named chief executive officer of the American Oil Chemists’ Society (AOCS). He takes the reins from Jean Wills Hinton, who joined the society in 1988 and served as head of AOCS for 10 years before stepping down in January to pursue other goals. Donnelly brings over 20 years of senior level experience in leading private and nonprofit organizations and initiatives. Most recently, he was a senior policy advisor and practice group chair at Crowell and Moring, LLP, an international law firm with headquarters in Washington, DC. Notably, Donnelly was the first non-attorney in the firm’s 32-year history to be named chair of a practice group. As leader of the public policy practice, he provided strategic business, regulatory, and policy counsel to a roster of top-tier clients. Prior to joining Crowell and Moring, Donnelly was executive vice president and chief operating officer of CropLife America, a Washington, DC-based trade association that represents U.S. agrochemical manufacturers. In addition, he has served as global leader of government and public affairs for Dow AgroSciences, LLC, and as director of federal government relations for Ciba and Novartis. Donnelly holds a master of science and PhD in reproductive physiology from West Virginia University. “I look forward to working to enhance the profile, global reach, and value of AOCS to our members and constituents, while ensuring that we continue to be the premier scientific authority in the field of oil chemistry,” stated Donnelly.


U.S. Poultry Updates Logo and Web Site The U.S. Poultry and Egg Association recently updated its logo to “USPOULTRY”. For a number of years, the poultry industry has shortened the association’s name for ease of use so the group decided to embrace the shortened name with the introduction of the new logo. The logo design includes USPOULTRY in all capital letters and an “egg and feather” combination in replacement of the “O” in the logo, as well as U.S. Poultry and Egg Association in smaller type under the logo design. In addition, USPOULTRY has updated its Web site to reflect the new logo change. The Web site is now www.uspoultry.org and incorporates the new logo design element and color scheme. Founded in 1947 and based in Tucker, GA, the U.S. Poultry and Egg Association focuses on serving member companies through research funding, education, communication, and technical assistance.

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Renderer Acquires Pilgrim’s Facility

A m e r i c a n Proteins, Inc., completed its acquisition of a rendering facility

located in Ball Ground, GA, from Pilgrim’s Pride Corporation in late November 2011. The company currently plans to operate the factory at a reduced volume producing a premium grade feed ingredient for the pet food industry. Headquartered in Cumming, GA, American Proteins now has four plants in Georgia and one in Alabama.

Canada Invests in SRM Technology Canada’s meat processing sector will remain competitive by adopting innovative technologies thanks to an investment of over $400,000 in equipment being developed by Industries Riopel of Vallée-Jonction, QB, that will reduce the volume of specified risk material (SRM) being disposed of, while at the same time ensuring compliance with Canada’s regulatory requirements. The investment under the Slaughter Waste Innovation Program (SWIP) will support two separate research and development projects at Industries Riopel to maximize the removal of SRM and high-risk tissues from carcasses processed by Canadian abattoirs. The new SRM handling equipment being developed will reduce waste materials and disposal costs, cutting back on the volume of SRM sent to landfills and also reduce greenhouse gas emissions associated with their transportation. Part of Canada’s Economic Action Plan, SWIP is making available up to $40 million to support the study, development, and adoption of innovative technologies or processes that help reduce processing costs or generate profits through the use or elimination of SRM.

National Beef Sells Ownership Leucadia National Corporation has acquired a controlling interest in Kansas City, MO-based National Beef Packing Company, LLC, under which Leucadia now owns approximately 79 percent of the outstanding ownership interests in National Beef. The operations and management structure of National Beef will remain unchanged, including Tim M. Klein continuing in the roles of president and chief executive officer. “I look forward to Leucadia joining our ownership group and bringing its unique perspective to our industry,” Klein commented. “The addition of Leucadia will widen the scope of opportunities available to us and will further strengthen our ability to expand our business and solidify our position as the premier global beef processor.” Leucadia is a diversified holding company engaged in a variety of businesses. National Beef Packing Company, LLC, has operations in Liberal, Dodge City, and Kansas City, KS; Brawley, CA; Hummels Wharf, PA; Moultrie, GA; and St. Joseph, MO. With about 9,100 employees, National Beef processes and markets fresh beef, case-ready beef, beef by-products, and wet-blue leather for domestic and international markets. The company generated sales of $6.8 billion in fiscal year 2011.

Travis Adds to Engineering Staff Travis Body and Trailer, Inc., has named Brian Odle as its new production engineer. He will oversee the company’s trailer production operations in Houston, TX. Odle grew up in Southern Illinois. After high school, he served approximately four years in the Naval Mobile Construction Battalion 3 as a steel worker. In 2002, Odle graduated with a bachelor’s degree in industrial engineering from Southern Illinois University and moved to Texas the following year where he started his career in engineering.


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EQUIPMENT/SERVICE

AdvertisersAmeri-Pac, Inc. ..................................... 23Anco-Eaglin, Inc. .................................... 7Baker Commodities, Inc. ......... Back coverC.A. Picard, Inc. ...................................... 9Centrifuge Chicago Corporation .......... 25Dupps .................................................13/ Inside back coverDura-Cast Products, Inc. ........................ 5Flottweg Separation Technology ......... 17Haarslev, Inc. .......................................... 1Harburg-Freudenberger Maschinenbau GmbH ...................... 15

ClassifiedsEMPLOYMENT

Haarslev Industries is currently looking to fill two engineering positions for technical equipment sales to the North American market. The positions require a degree or equivalent experience in Mechanical or Chemical

Engineering and extensive travel. Haarslev Industries is the world market leader in design, manufacture, and installation of equipment for handling and processing animal by-products.

Our headquarters for the North American market is located in Kansas City, Missouri, and we offer competitive salaries and excellent benefits in a relaxed

environment with great opportunities for personal and professional growth. If you are interested in this employment opportunity, please e-mail your

resume to [email protected]. We look forward to hearing from you. Haarslev, Inc., 9700 NW Conant Avenue, Kansas City, MO 64153

High Performance Systems Corp. ........ 27Industrial Steam .................................... 3Kemin Industries ............ Inside front coverLantec Products, Inc. ............................. 3Michigan State University .................... 12Moeller Plastics ................................... 20Onken, Inc. ........................................... 28Par-Kan Company ................................ 19Redwood Metal Works ...................19/29Walinga Engineered Transportation Equipment ............... 25Worcester Industrial Products ............. 29

American Fats and Oils Association . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.americanfatsandoilsassociation.comAmerican Feed Industry Association . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .www.afia.orgAmerican Meat Institute . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.meatami.comAnimal and Plant Health Inspection Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.aphis.usda.govAnimal Agriculture Alliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .www.animalagalliance.orgAnimal Protein Producers Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.nationalrenderers.org/biosecurity-appiAssociation of American Feed Control Officials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.aafco.orgAustralian Renderers Association . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.ausrenderers.com.auCanadian Renewable Fuels Association . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.greenfuels.orgEuropean Fat Processors and Renderers Association . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.efpra.euFats and Proteins Research Foundation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.fprf.orgFood and Drug Administration (FDA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.fda.govFDA Center for Veterinary Medicine . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .www.fda.gov/animalveterinaryNational Biodiesel Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.biodiesel.orgNational Cattlemen’s Beef Association . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.beefusa.orgNational Grain and Feed Association . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.ngfa.orgNational Pork Producers Council . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .www.nppc.orgNational Renderers Association . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .www.nationalrenderers.orgNational Renewable Energy Laboratory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.nrel.govOccupational Safety and Health Administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.osha.govPet Food Institute . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.petfoodinstitute.orgProcessed Animal Proteins . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.papinfo.euU.S. Animal Health Association . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.usaha.orgU.S. Department of Agriculture (USDA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.usda.govUSDA Food Safety and Inspection Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.fsis.usda.govUSDA Foreign Agricultural Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .www.fas.usda.govU.S. Poultry and Egg Association . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .www.poultryegg.orgUnited Kingdom Renderers Association . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.ukra.co.ukWorld Renderers Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .www.worldrenderers.org

Industry Web Sites

Larry Tully, Field Service Manager, (center)and the Field Service Team.

“We’re committed tothe customer, everyhour of every day.”

Won’t Let You Down

Phone: 937-855-6555

Fax: 937-855-6554

Email: [email protected]

www.dupps.com

The Dupps family includes all the dedicated

and hard working employees whose efforts,

loyalty and pride have made our company

the best in the business. Compare our level

of knowledge, experience and service with

any of our competitors. When you do,

we’re sure you’ll agree that Dupps is your

logical choice.

“For us, the bottom line is to be there when our

customers need us. They operate Dupps equipment

because it offers top performance and reliability; and it’s

our job to keep it that way . . . any time, day or night.

“For the Field Service team, the most important thing is

to get the customer’s system up and running properly as

quickly as possible. Every minute of downtime costs

money, so it’s our policy to have a service representative

ready to work at a customer’s plant in 24 hours or less.

That’s why we maintain the largest service department in

the business, with the right tools and parts to do the job.

“Another important advantage we offer is experience.

Every representative knows Dupps equipment inside and

out, so we do the job right as well as quickly. Experience

pays off in other ways too — we can help make sure

equipment is properly maintained so it operates at peak

performance, and to avoid expensive repairs down the road.

“Our motto is ‘Dupps won’t let you down’; for our

team that means we’re committed to the customer, every

hour of every day.”

Dupps Field Service (left to right):Jeff Morris, Shane Tinch, Ron Snelling,Larry Tully, Corey Merema,Dave Lewellyn and Okey Buell

A word from your friends atDupps Field Service

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