Partnership to build first industrial-scale biodiesel plant leveraging solid catalyst

Benefuel, Inc., a new-generation biodiesel refining and distribution company, announced today that it will build the world’s first industrial-scale biodiesel refinery leveraging a novel solid catalyst that converts low-grade fats and vegetable oils into biodiesel. The plant, planned to be located in Seymour (Indiana), eliminates the need for water in the refining process and produces a market-ready glycerin by-product.

Benefuel will partner with Seymour Biofuels LLC, based in Indiana, to construct a 10-million gallon (37.8 million liter) biodiesel plant that uses Benefuel’s solid, acid catalyst. The catalyst, developed in collaboration with chemical engineers from India’s National Chemical Laboratory, can turn virtually any vegetable oil or high free fatty acid (FFA) animal fat directly into biodiesel without the need for costly pre-processing.

Biodiesel refiners have been looking for a breakthrough that reduces feedstock costs, addresses waste glycerin disposal, eliminates caustics in the processing stream and reduces the environmental impact typically associated with producing biodiesel. The economic benefits of a solid catalyst refinery far exceed those of conventional refineries, dramatically increasing operating margins to create a major shift in how the world produces biodiesel. - Rob Tripp, CEO of Benefuel, Inc.

Traditional biodiesel 'catalysts' are better described as chemical 'reactants', rather than 'catalysts', because they are destroyed during the refining process. Sodium and potassium hydroxides – the most common substances used to transesterify oils and fats into methyl esters - are consumed during production and must be washed out of the biodiesel crude. In addition to being discarded after each batch, caustic reagents must be neutralized with acid before the biodiesel can be recovered and then contaminate the glycerin byproduct with waste salts, which dramatically degrades its commercial value, as well as add costs to the biodiesel process.

Benefuel’s dual metal catalyst (DMC) solves the problem of reactant waste and glycerin contamination. The solid catalyst is not consumed during transesterification, eliminating the need for fuel washing – and making Benefuel the first biodiesel company in the world that places no demand on limited water supplies. Typical biodiesel refineries can require up to five gallons of water per gallon of oil feedstock to wash out spent reactant. A Benefuel refinery requires no process water at all.

Due to the unique nature of the DMC, methyl esters produced in a Benefuel refinery can be immediately blended (without washing) with petrodiesel to make biodiesel blends or used directly as the best B100 in the market.

In addition to high-quality biodiesel, Benefuel’s proprietary refineries also produce a 98 to 99 percent pure, technical-grade glycerin that has a multiple number of uses:
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An operator choosing to use long-chain alcohols (octane) will be able to make biolubricant base oils – all within the same refinery – which can be blended with petroleum base oils to make biodegradable lubricants for the ever-growing lubricant market. The DMC effectively refines a wide range of oil feedstocks, including both vegetable oils and animal fats up to 100 percent free fatty acids (FFA).

The DMC changes the fundamentals of the biodiesel refining equation, enabling a continuous flow fuel-processing model that is not possible in traditional stirred tank reactors (STRs). STRs convert feedstocks to methyl esters in “batches,” requiring significant labor inputs and stop-and-go production. The continuous flow model streamlines the production process and allows for constant output.

Because of this, a Benefuel refinery does not require manual batch testing for quality assurance. Each Benefuel refinery is continuously monitored cutting labor costs and eliminating down time.

You couldn’t ask for a better location for this facility than right here in the heart of soy country. The flexibility and simplicity of the Benefuel refinery will allow us to process a much broader range of feedstock in a much more profitable and environmentally friendly way. The valuable glycerin commodity and use of local feedstock will make this plant a model for distributed fuel production. This brings our energy supply back home. - said James Galyen, a partner in Seymour Biofuels LLC.

Officials with both companies expect to begin production later in 2008.

Benefuel, Inc. is a new-generation biodiesel refining and distribution company whose streamlined production process allows for distributed and scalable biodiesel plants that leverage local resources, enable cost advantages for producers and distributors, and facilitate expansion of the biofuels market.

Seymour BioFuels LLC is a closely held renewable energy investment company. It has completed a feasibility study and plans to construct a new biodiesel facility in Seymour, Ind. Benefuel’s patented technology will allow Seymour BioFuels to use multiple feedstocks and produce a premium, environmentally friendly source of energy. The city of Seymour was selected as the site for the plant because of its access to rail and interstate, as well as its access to local agriculture to be used for feedstock. Seymour BioFuels plans to market its end product to local distributors, thereby eliminating costs associated with bringing in fuel from outside sources. Seymour BioFuels is in the process of securing funding to begin construction of the new plant.