Browse > Home / Producer News / AZ Biodiesel increases capacity to 2.19 Mgy as waste biodiesel demand soars on price differential

AZ Biodiesel increases capacity to 2.19 Mgy as waste biodiesel demand soars on price differential

July 10, 2008

In Arizona, AZ Biodiesel will expand its production capacity from 10,000 gallons per year to 2.19 Mgy and relocate to Gilbert, as demand increase for its waste grease-based biodiesel that will retail at $3.99 per gallon, or nearly 20 percent less than the cost of conventional diesel. The company collects from 700 restaurants, hotels and other grease-producing facilities in Arizona.

AZ Biodiesel and Arizona background

Last April, the Chandler Planning & Zoning Commission has shut down the state’s largest commercial-scale biodiesel plant, AZ Biodiesel, for code and safety violations. The company, which collects waste vegetable oil from 143 locations in Arizona, said it was caught unawares by the shutdown and was given no prior notice of safety or code concerns. Local resident complaints may have led to the withdrawal of the company’s use permits.

Amereco and AZ Biodiesel had been expanding their efforts to produce biodiesel from waste vegetable oils and grease. Amereco is paying up to 20 cents per pound for grease and has production capacity of up to 15 Mgy for their Phoenix-based facility.

AZ Biodiesel had established its own collection company for grease, and said in April that it would produce 5 Mgy from collections at 300 restaurants, averaging 75 gallons per restaurant per month.

Arizona has been a leader in efforts surrounding the development of algae, among other unconventional biodiesel feedstocks. PetroSun BioFuels Refining has signed a joint venture to develop and operate a 30 Mgy algae biodiesel facility in Coolidge.

PetroSun has announced its intention to establish 1,000 algae cultivation pods that will produce up to 2.56 billion gallons of algal oil per year. The announcement highlighted the potential of algae to supply a large percentage of domestic fuel consumption needs within a compact space, even with early-stage yields. PetroSun indicated it would pursue joint ventures with Mexican companies to establish its pods in Sonora state, which is located along the US border south of Arizona.

Also in Arizona, the state House majority leader introduced a bill to provide grant covering 40 percent of the $50,000-$100,000 cost of converting gas stations to ethanol. Meanwhile, the executive director of the Valley of the Sun Clean Cities Coalition, said that 150,000 Arizona cars are capable of running on E-85, 230,855 on biodiesel. There are 13 E-85 stations and nine biodiesel stations in Arizona.

  • 65 percent price differential between ethanol and gasoline in Brazil powers huge market share shift, says Unica
    • In Brazil, the Union of Sugarcane Industries (Unica) said that nine Brazilian states had recorded 100 percent increases in ethanol fuel consumption in the first five months of 2008 compared to the sam...
  • AZ Biodiesel aims for 500 percent increase in waste oil biodiesel capacity
    • In Arizona, AZ BioDiesel announced that it will relocate to Gilbert, from Chandler, in a move to expand production capacity of its waste oil-based biodiesel. The company produces 365,000 gallons per y...
  • Summary of pending US energy and agricultural legislation published
    • Biodiesel Magazine published a summary of pending energy and agricultural legislation in the United States this fall relating to biodiesel. The summary includes a look at the Differential Export Tax (...
  • US biodiesel production plunges to 22 percent of capacity; feedstock costs, low demand are culprits
    • The National Biodiesel Board reports that US biodiesel producers are operating at 22 percent of their 1.85 billion gallon capacity, due to high feedstock prices and low demand from petroleum marketers...
  • Green Global expands Buffalo-area waste oil biodiesel capacity
    • In New York, Green Global has expanded capacity with a $600,000 investment based on support from the Niagara County development board. The waste oil biodiesel producer is co-collecting waste vegetable...
  • Charlie and the Biodiesel Factory: UK company makes biodiesel from chocolate at 60 percent lower than global soybean oil price
    • In the UK, Ecotec is creating biodiesel from chocolate factory waste production. Ecotec management said that a pound of chocolate contains enough oil to power a car for 1.5 miles. The biodiesel pro...

    Written by Jim Lane · Filed Under Producer News 

    Comments

    Got something to say?

    You must be logged in to post a comment.