More News

New Generation Biofuels delivered its first batch of milky, emulsified biofuel this month to Delta Chemical Corp. in the Curtis Bay industrial area of Baltimore.

In sharp contrast to the black tea-like liquid that biodiesel users are familiar with, the alternative fuel is one of several products consumers have been sampling as petroleum and diesel substitutes.

But as interest in biofuels has picked up, job growth in the industry has lagged, as producers grapple with rising feed prices and financing struggles. At this rate, Maryland's Greener Jobs Initiative goal of creating 100,000 "green collar" jobs by 2015 probably won't include many in the biofuels industry.

New Generation, of Lake Mary, Fla., opened its first biofuel plant in Baltimore last week and is producing at the rate of 5 million gallons annually, with the capacity to make 50 million gallons a year. So far the company has needed only a few contract workers for production, said marketing manager Phil Wallis, but may add two permanent staff in the next year.

Instead of refining, the company emulsifies lipids such as soybean oil into a creamy fluid that is not yet approved for on-road vehicles. Clients include Catoctin Mountain Growers in Keymar, which grows plants for large retailers such as Wal-Mart, and a Boston hospital.

"We're keeping our eye out for someone else with an emulsion-based product like ours," Wallis said. "At this point, we're pretty unique."

First biodiesel plant is struggling

The state's first biodiesel plant, Maryland Biodiesel, opened in Berlin in 2006 and still produces feedstock-derived fuel. Its fortunes boomed, as feedstock was fairly inexpensive and conventional fuel prices soared. But now that feedstock costs have risen and gasoline and diesel prices have fallen, the company is selling its fuel at a loss.

"Feedstock prices have skyrocketed. We just can't compete," said Ginger Warren, who founded Maryland Biodiesel with her husband, James. "Everybody wants to do the right thing, but when it comes down to it, it's the prices."

The plant once produced about 400,000 gallons annually, but now is churning out half that amount.

National biodiesel production jumped from 75 million gallons in 2005 to nearly 700 million gallons in 2008, according to the National Biodiesel Board.

To break even after paying $1.70 for poultry fat and tacking on taxes and other costs, Maryland Biodiesel would have to sell pure biodiesel for at least $3.85 per gallon. For now, the fuel is sold at low, competitive prices to Worcester County, Ocean City hotels and agencies such as the Maryland State Highway Administration. The Warrens' other business, Cropper Oil & Gas, has kept them afloat.

"We just wanted to have an alternative fuel, something in Maryland that is made here," Warren said. "That's why we went on a small scale — we didn't want to go over our heads. … We just don't know what's going to happen in the next year."

Maryland Biodiesel's staff of four would be absorbed into Cropper Oil & Gas if the biodiesel venture continues to struggle, and Warren expects no new hires for the alternative fuel business anytime soon.

The plant is one of only a few biodiesel facilities in the state. Others include Greenlight Biofuels, which opened in 2007 near Salisbury, and Eagle Creek Biofuel Services, which opened eight months ago in Baltimore.

Plans for Baltimore plant move to Delaware

In Frederick County, Chesapeake Green Fuels has also struggled financially. The Adamstown company, which uses recycled restaurant grease to produce biodiesel, expected to open a plant in Baltimore this year but could not secure financing. Its owners had planned on hiring more than 25 employees through Maryland's Enterprise Zone program.

Instead, the Butz brothers, who produce on a small scale on their Windridge Farm in Adamstown, purchased a defunct biodiesel refinery in Delaware that had closed after one year. After retrofitting the building, the company expects to produce up to 5 million gallons annually, less than half of the planned production in Baltimore.

Financing is still tight for the Delaware operation, but Chesapeake Green Fuels is on track to open the plant in about four months, then hire roughly 20 workers — chemists, lab technicians and managers — in "good-paying jobs," said co-owner Robert Butz.

"Beyond job creation, the goal is we're going to give people a very viable choice that is better for the environment," Butz said. "And they're going to pay no more for our product."

Co-ops require little paid labor

At least two co-ops have formed in Maryland — Baltimore Biodiesel and Green Guild Biodiesel Co-op — to offer discounted biodiesel to members, but they rely heavily on volunteers instead of paid staff.

Members of the Green Guild co-op in Prince George's County, founded by Adam Schwartz and Andrea Calderon last summer, are launching a pump station in Riverdale this month.

"At this point, we're just getting the product out there and building the demand for it," Schwartz said. "Being a co-op, our strength is in numbers. At this point, we're still relying on volunteers to get through the workday."

The co-op's 27 members, whose numbers have been increasing steadily the past three months, pay $2.75 for a B85 soybean oil blend that is sold in containers at local farmers markets. After it opens its filling station, Green Guild plans to launch a production facility this summer and perhaps add a few part-time positions.

"But we're looking to hire as we get into phase 2 and 3 of our business plan," Schwartz said, "ideally, [with] at least one [employee] focusing on the productivity side of things and another on outreach and education."

Baltimore Biodiesel Co-op members pay $3.37 per gallon for B50 blend at Mill Valley General Store on Sisson Street in Baltimore. It will begin selling pure biodiesel this month, according to its Web site.

What is biofuel?

Biofuel: Any fuel made from a renewable source that is nontoxic, biodegradable and significantly reduces emissions.

Biodiesel: Biofuels made from fatty-based substances such as soybean and other vegetable oils or animal fats. A conversion process adds oxygen and removes glycerin from the oil.

Biodiesel blend: Pure biodiesel mixed with petrodiesel. Blends are labeled according to the percentage of pure biodiesel. For example, B40 would have 40 percent biodiesel and 60 percent petrodiesel.

Ethanol: Made from grain or corn, the same as found in liquor. It must be fermented, distilled and dehydrated.

Source: National Biodiesel Board