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August 19, 2008
Biofuel association forms to push industry forward
New Mexico Business Weekly - by Kevin Robinson-Avila NMBW Staff

Biofuel production in New Mexico and the Southwest could get a major boost from the newly formed Southwestern Biofuels Association.

The organization, which planned a public launch event at the legislative session in Santa Fe on Aug. 15, includes industry, government officials, and scientists from the national labs, said Vaughn Gangwish, the group’s executive director.

“We need a unified voice in the Southwest to advance our interests,” Gangwish, an attorney, said. “The association can bring together all the major stakeholders to create favorable policies and programs at the state and federal levels to push the biofuels industry forward.”

The association grew out of the first state biofuels summit, held in Albuquerque last March. About 100 scientists, businesspeople and government officials participated, and all agreed that an association was critical to build the industry, said Lenny Martínez, policy advisor for rural economic development under Gov. Bill Richardson.

“The Governor’s Office absolutely supports this, and so does our congressional delegation,” said Martínez, a member of the association’s board of directors. “We need to stand up and take a leadership role to provide impetus for biofuels development.”

Biofuels are an important part of New Mexico’s efforts to promote clean energy. The state government approved a law last year that requires all diesel sold in New Mexico to contain at least 5 percent biodiesel by 2012.

Biodiesel exhaust is safer for human health than pure diesel because it emits fewer pollutants, Martínez said. In addition, the plants grown to create biodiesel reabsorb the carbon dioxide released when biodiesel fuels are burned. That results in nearly 68 percent fewer lifecycle greenhouse gas emissions than pure diesel, according to the Environmental Protection Agency.

Unlike ethanol — which is usually made from corn — biodiesel is made with a variety of vegetable oils, animal fats and recycled cooking grease. Production more than doubled in the U.S. last year to 225 million gallons, and it’s expected to exceed 300 million gallons this year, the association says.

Most production is based in Iowa and Texas, but the association believes New Mexico and the Southwest can become major producers of alternative biodiesel crops that grow well in hot, arid climates. Algae and camelina — an oilseed distantly related to canola — are particularly promising because of their high yields per acre and their low water and nutrient requirements. The state and other research institutions have backed a number of studies on growing those crops for biodiesel, Martínez said.

The association will seek favorable state and federal policies to promote biofuel production, including funding for research, tax breaks, and education and outreach efforts, said Jeff Trucksess, executive vice president of Texas-based Green Earth Fuels and a member of the association’s board. Green Earth produces biodiesel in Houston, but the company wants to develop camelina as a primary feedstock for its operations.

“States can play a large role by creating awareness about the positive attributes of biofuels and the economic development potential of growing crops for feedstock,” Trucksess said. “We can easily see from one to three million acres of biofuel feedstock under production in the Southwest and some northwestern states.”

Ross Garrity, president and CEO of Dallas-based American Renewable Fuels Inc., said the association can help identify and build needed infrastructure.

Garrity’s company, a subsidiary of Renewable Fuels Limited in Australia, plans to construct a biodiesel plant in Clovis to produce 75 million gallons per year from animal fat.

“We need facilities to blend biofuels with diesel,” said Garrity, also an association board member. “We need transportation corridors and distribution facilities to pump biodiesel. All that will take a lot of planning and investment. The association will play a critical role because this is a nascent industry that will depend on close collaboration between commerce and government to move forward.”

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