Joe Jobe, CEO

National Biodiesel Board

Kansas City, Missouri

September 9, 2008
“We’re producing 3 million barrels a day 

at $120 a barrel. You do the math.”

Hussain al-Nowais, a prominent UAE businessman.

here

& here

here
National Biodiesel Board 3

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

350,000,000

400,000,000

450,000,000

500,000,000

G

allo

n

s

1999 2000 2001 2002 2003 2004 2005 2006 2007
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National Biodiesel Board 4

◦ Actual 2007 production of 500 mgy

◦ Estimated 2008 production of 600 mgy

◦ 171 plants in 40 states. 
Plant Status

Construction (57)

Expansion (3)

No Window 
 5% on-road displacement by 2015 ≈

1.85bgy (met in various blend levels)

 5% ≈ amt of US diesel refined from Iraqi 

crude

 5% ≈ 1⁄4 of diesel equivalent refined from 

Persian Gulf Crude.

 5% ≈ a volume relevant to greenhouse gas 

reduction, energy security, and feedstock 

supply

◦ Finding realistic replacements are especially 

important for heavy duty. Many future options will 

be effective in reducing gasoline in light duty.
Energy Security – US spending well over $1B per day on foreign oil.

Exploding trade deficit with largest transfer of wealth in human 

history to nations hostile to America.

 Biodiesel adds to fuel supply, refinery capacity, green jobs 

Environment – biodiesel < viturally all regulated emissions

PM and NOx past drivers for diesel. Now HC, air toxics, 

renewability, and carbon... all things biodiesel addresses better than 

any current commercially available fuel.

Climate Change – biodiesel reduces lifecycle CO2 by 78%

Sustainability – highest energy balance of any fuel 3.5: 1

Performance – better on lubricity, cetane, oxygen, and sulfur; worse on 

stability, cold flow; same on horsepower, torque, fuel efficiency.
1. Enforcement of Standards

◦ Vigorous enforcement by government

◦ NCWM, State W&M, IRS, EPA, others

2. Education and Outreach

◦ Education of Petro industry & regulatory 

authorities

3. Encouragement

◦ BQ-9000
BQ-9000 program virtually all in spec

 Only one sample was out of spec for water, which was 

most likely sample contamination

Spec enforcement and BQ-9000 are WORKING!!! 

NREL Fuel Survey

90% of total biodiesel volume in spec

•Small companies still high percent out 

of spec but doesn’t represent much 

volume
National Biodiesel Board 10


 Grocery Manufacturers 

Association (Cal Dooly)

 $15m PR campaign 

with Glver Park Group

Stated Goal: revisit biofuels policies 

to contain rising food costs

Unstated goal: divert negative 

attention about record profits during 

record prices
Kraft Foods

-- $732 Million Quarterly (April-June) Profit

-- Raised prices overall by 7 percent

Sara Lee

-- $242 Million Quarterly Profit

-- Net sales increase of 10 percent

Record-Breaking Profit$

Food Companies’ Profits Soaring

Result of Food Price Increases
The Record (2nd Quarter 2008) : $11.68 Billion

Exxon’s Excellent 2007

-- Profit $40.6 billion

-- Every second of every day: $1,287 of profit

-- Exxon’s 2007 profits of $404 billion, exceed the

gross domestic product of 120 countries.

Chevron’s 2007

-- Annual profit of $18.7 billion in 2007

-- Fourth consecutive year that they made record profits

Record-Breaking Profit$

Historic Quarterly Profits

Matches Historic Oil Prices
 Biodiesel can be made from a wide variety of 

feedstocks including inedible and waste materials. 

More inedible feedstocks in devel.

 Soy currently predominant feedstock. 80% of 

soybean processed into meal for food & feed

 Sending economic signals to agriculture and plant 

science research. Soy could provide an additional 

2B gallons of oil by 2015 without adding a single 

acre and with less inputs
 According to United Nations 

Food and Agriculture Organization (FAO), of 

the land available for agricultural use, only 

3.7B acres of the 10.4B is in production, and 

of that only 1% is used for biofuels including 

ethanol.

 Agricultural policies which aim at keeping 

food and grain prices lower, hamper 

agricultural development efforts in 

developing countries and result in less food.
 According to DOE and USDA, the most significant 

cause of food price inflation is increased energy 

prices. Crude oil has risen by 300% in 4 years.

 In 1974, when fuel prices rose to their second 

highest mark, signficant food price inflation 

occurred. Biofuels were not around to blame. 

According to the Bureau of Labor statistics, adjusted 

for inflation, fuel prices are approx 30% higher 

today than they were in 1974, but grain prices are 

about half the price today compared to ‘74.

 According to Meryl Lynch strategist and others, 

without the 8B gallons of biofuels in 

the fuel supply, fuel prices would be 

as much as 15% higher making food 

prices even higher

 Support private equity investment in near 

term opportunities

 Advocate a development program focused 

on.....

◦ Algae

◦ Non-edible feedstocks

◦ Feedstocks that can be grown on under-utilized 

acreage

◦ Virtual acres of existing oilseeds
 Several production pathways being pursued

◦ Open Ponds

◦ Bioreactors

◦ Enzymatic Fermentation

 Very little biodiesel to date has been made 

from algal lipids 

◦ Several algae production companies have indicated that 

the biodiesel that has been produced will meet the ASTM 

D6751 specification.

◦ Oil quality appears to vary significantly between algae 

species. 

 Oil production potential estimates range from 

2,000 gallons per acre to the absurd.
 Near term

◦ Support of commercialization efforts through 

economic development tools (federal loan 

guarantees, etc.)

 R&D

◦ Improving production processes to lower 

production costs

◦ Algae harvesting & dewatering

◦ Oil separation technology 

◦ Strain identification for optimal oil production 

and fatty acid profiles

◦ Recommend re-establishment of a comprehensive 

federal algae program to address commercialization 
Questions?