November 2004 Newsletter

Biodiesel Production Feasibility Studied

Friday, August 20, 2004
By Sheryl Herres, Freelance Writer

There seems to be no shortage of groups working on biolubricants and biodiesel from oil seed sources. Two groups in eastern Oregon and Washington are currently engaged in some serious investigations.

Columbia County Commissioner Dwight Robanske said his Eastern Washington county received a state grant of $25,000 and a federal USDA grant for $50,000 to investigate the feasibility of biodiesel production from oil seed used as an alternative crop put into crop rotation.

"The study also encompasses preparation of a business plan and a look at project funding if the feasibility looks good," said Robanske, who also sits on the Blue Mountain Resource and Conservation Development Council and is a member of the Columbia County Farm Bureau and the Economic Development Council.

"We'll look at whether it is best to form a regional co-op or private company, or a combination with government loan, or what. We are looking to stimulate job development in Columbia County," Robanske said.

Dale Case is one of 12 Eastern Oregon growers who formed Columbia Crush, an LLC that also obtained a grant for a feasibility study and preparation of a business plan, but the increased price of fuel changed that somewhat. The study was completed in the fall of 2003. They found:

• The need to have a subsidy or higher price to get biodiesel competitive with petroleum diesel.

• The need to investigate other uses for oil that may have higher value than diesel.

• The need to have a good market for the meal byproduct.

• The ability to eliminate transportation costs of hauling canola to Canada for crushing.

• The ability to vertically integrate to own the next phase – crushing.

"We would crush oil and sell it to the highest bidder," said Case. "If we can sell the meal and oil at good prices, we could improve the take-home income on the farm. It's another reason to use canola as a broadleaf alternative crop because it wouldn't lose money."

At this point, Columbia Crush is looking for the best way to do that. The group is pursuing additional grant money to study the design process, and the members are looking for a location.

Robanske said the Columbia County group has talked with people as far north as Moses Lake and as far south as Pendleton.

Case said Columbia Crush discussed forming a co-op with Columbia County, but that Columbia County didn't have enough of a plan at the time to cause Columbia Crush to abandon its ideas.

"As they continue, though, we may talk again," said Case. "We are not trying to compete with them."

While these groups look to the more-immediate future, researchers have a more long-range view. Steve Petri, superintendent of Columbia Basin Agricultural Research Center of Oregon State University, said, "We must look beyond growing diesel. It is just one bioproduct option."

Petri said he hopes the systems developed will be part of a larger system enhancing rural employment.

"We are very excited because the bioproduct concept is a key ingredient in the College of Agricultural Science's strategic plan and Sun Grant and other initiatives," he said.