Biodiesel is coming; the question now is what crops will supply the base for the growing demand of the environmentally friendly fuel.

A canola production meeting in Friona brought mixed reactions as producers learned more about growing the crop and its potential market, said Calvin Hildebrand, with Four Peaks Energy Group based in Santa Fe, New Mexico. Monty Vandiver, Texas Cooperative Extension integrated pest management agent in Parmer County, said the meeting included information from fuel distributors, the plant builder and producers.

"The best source for biodiesel is a crop adapted to the local conditions that also has an economical outlet for the byproduct," Vandiver said. "Also, there must be a market for the energy produced."

The market, Hildebrand said, will be a series of biodiesel plants in Texas and New Mexico that will use canola and sunflower oil, as well as other oil-based crops.

"We're hoping we can implement a mechanical seed process that will draw out more oil and leave the necessary oil and give us a better quality meal for the livestock operations," he said.

"What we want to do is create regional biodiesel plants that will operate within a 50-mile radius and the local farming community will provide the major portion of the cottonseed, canola and sunflowers," Hildebrand said.

This will reduce both the cost of the raw oil and the farmers' fuel costs, he said. The cyclical nature of the industry would allow a savings on transportation costs and make possible competition with larger suppliers.

"And we'll be able to keep the money in the county," Hildebrand said.

The first plant will be in Friona, and in the first 18 months, soybean oil will probably be brought in from Kansas until local farmers can decide if they want to grow canola or expand their cotton or sunflower production, he said.
Biodiesel production is expected to start in July or August and require about eight full-time employees, Hildebrand said. The plant will be operated as Parmer County Bio-Diesel Management LLC.

The plant needs a guarantee of enough raw materials to work with, Vandiver said. Sunflowers, cottonseed, canola, soybean and sesame all could all be crushed there.

"Canola is very drought tolerant and would fit our area well," he said.

"I think the producers are thinking they might plant a little now to get a feel for it, but will time any larger scale production with the plant coming online."

For farmers, changing crops is a major decision, Hildebrand said. Many producers were interested to hear Dr. Brent Bean, Extension agronomist, discuss canola production issues, he said.

Bean said this year's canola variety trials were not planted until later than they should have been because they were following a corn crop, and then the trial froze out. It is recommended canola be planted at least six weeks before the first killing freeze.

But Bean said the fact that it survives in Canada should be an indication it can survive winters in Texas, if planted on time.

Canola is expected to yield about 1,000 pounds per acre up to 3,500 pounds per acre, depending on whether it is irrigated or not, Bean said.

The key is finding varieties that reduce the shattering problem the crop has exhibited in the past, he said. Canola is planted similarly to wheat, but the head is more prone to losing seed. It can be grazed, but probably not as long or as intensely as wheat.

"There's very little research so far on the ability of this crop to be used for both grazing and oil seed production," Bean said. "If canola begins to be planted here with significant acreage, that's something we'll have to learn to manage."

Canola's growing season also allows it to play an important role in keeping a biodiesel plant going year-round. Canola does produce a high quality oil that the biodiesel industry is looking for, he said.

Hildebrand said some farmers expressed an interest in trying hybrid sunflowers – also a good biodiesel oil crop.
"We could also pick up some soybean or cottonseed oil," he said. "What we want to do is cooperate with the farmers and their cooperatives."
Each plant will produce about 40,000 gallons of 100 percent biodiesel per day, or 14 million gallons per year, he said.
"The market we're looking at is right back with the farmers in the region," Hildebrand said. "We're hoping we can sell the biodiesel blended with distillate for a few cents, up to a nickel less, than regular diesel."

A new state law requiring, beginning in June, only ultra-low sulfur diesel be sold may spur biodiesel use, he said. Sulfur was the upper cylinder lubricant in diesel. Without it, diesel will require an additive.

Because refineries are having to be retrofitted for the additive inclusion, diesel could be up to 12-16 cents more expensive, Hildebrand said.

"We're looking at a substantial rise in the cost of fuel," he said. "If we can blend biodiesel, we can cut the cost of fuel, and biodiesel has excellent lubricity, so no need to add lubricant."

Some concerns of those planning to use diesel blends with up to 20 percent biodiesel are the need for extra anti-gelling agent for the winter and also, older engines may have problems if the fuel filter isn't changed regularly.
"Biodiesel is a solvent and will clean out extra dirt and gunk that's built up in the fuel system over time," Hildebrand said. "A farmer will need to have a bunch of fuel filters around for the first little while.

And any fuel lines made out of rubber or neoprene need to be replaced with steel or Teflon."

The fuel is expected to be available through co-ops and possibly retail outlets serviced by Kendrick Oil, he said.

by Kay Ledbetter