GreenHunter BioFuels, Inc.
GreenHUNTER BIOFUELS ASSET DESCRIPTION REPORT
To view the recently released asset description report compiled d by Imperial Capital, please click here.
Biodiesel Processing
GreenHunter acquired Channel Refining Corporation in the first quarter of 2007. The Channel Refining plant sits on a 20-acre parcel of land located along the Houston Ship Channel with a first-in-class transportation infrastructure that includes on-site access to barge, rail and truck shipping.
To view construction images, please click here.
Methanol Production
The GreenHunter facility will recover and reuse all excess methanol used in the combination process. The GreenHunter BioFuels, Inc. facility located in Houston, Texas has a methanol distillation system/department that is five times larger than required to meet the direct needs of the 105 million gallon-per year biodiesel production capacity. As a result, GreenHunter BioFuels, Inc. has the ability and opportunity to source off-spec methanol from third-party sources, distill it and sell it as a secondary business.
Glycerin
The byproduct of biodiesel or methyl ester production is glycerin. Glycerin is used as an ingredient in a wide range of products and applications, including pharmaceutical and personal care products, foods and beverages, animal feed and plastics. Glycerin can be sold in an unrefined form, in a partially processed form, or in a refined form. The GreenHunter process will not refine glycerin, but it will add value to the crude glycerin it produces by neutralizing the glycerin. Neutralizing glycerin makes it more fluid and pourable at cold temperatures. While dry, un-neutralized, crude glycerin will solidify in the range of 80 to 120 degrees F; dry, neutralized glycerin will remain liquid and pourable down to a range of 10 to 20 degrees F.
Permits and Approvals
The facility is a fully approved and permitted plant by the following and authorized regulatory agencies:
- Texas Natural Resource & Conservation Commission, Permit No. 83596
- Texas General Land Office, Permit No. 20182
- United States Environmental Protection Agency, ID No. TXR00000349
- United States Coast Guard
- United States Drug Enforcement Agency, Permit No. 2061
- United States Army Corps of Engineers
- United States Department of Energy
- United States Department of Homeland Security
Biodiesel Basics
Biodiesel is a clean-burning, non-toxic and biodegradable renewable fuel that is an alternative to petroleum diesel. Biodiesel is primarily used in blends with petroleum diesel as a fuel for trucks and automobiles, but can also be used as heating oil and in a variety of other applications, including marine transportation, electrical generation, farming equipment and mining operations.
Biodiesel contains no petroleum and is a renewable fuel because it can be made from a variety of renewable raw materials, or “feedstocks,” including vegetable oils, animal fats and recycled cooking oils. Biodiesel performs comparably to petroleum diesel in terms of fuel economy, horsepower and torque and offers many benefits over petroleum diesel. The use of biodiesel reduces greenhouse gas emissions (both tailpipe emissions and emissions on a total lifecycle basis, including emissions created in the production of biodiesel), as well as other emissions such as particulate matter, carbon monoxide and unburned hydrocarbons. Biodiesel is more biodegradable than petroleum diesel and is also safer to transport due to the higher temperature at which biodiesel ignites, known as its flashpoint. The production of biodiesel may generate emissions credits, which can be traded on various exchanges, both nationally and internationally.
Biodiesel can be used in its pure form as a direct substitute for diesel fuel or can be mixed at any level with petroleum diesel to create a biodiesel blend. This distinguishes biodiesel from ethanol, which can be blended with gasoline at higher levels only for use in specially modified engines and therefore is not generally used as a direct substitute for gasoline. A blended biodiesel fuel may offer improvements over low-sulphur, unblended petroleum diesel because its increased lubricity has the ability to extend engine life and reduce maintenance costs. In addition, biodiesel has a significantly higher cetane rating, which is a measurement of diesel ignition performance, than petroleum diesel. As a result, biodiesel can improve the ignition performance of diesel engines when it is used in blended or pure form.
Biodiesel blends at various concentrations and can be used in diesel engines without modification. Biodiesel blends vary according to geographic region and climate, but the most commonly used blends generally range from a blend of 2 percent biodiesel and 98 percent petroleum diesel, or “B2”, up to a blend of 20 percent biodiesel and 80 percent petroleum diesel, or “B20”. We believe that worldwide usage of biodiesel will significantly increase in accordance with government instituted renewable fuels standards and blending mandates, as well as a general increase in the use of diesel.
Market Acceptance of Biodiesel
According to the National Biodiesel Board:
Domestic:
- 600 major fleets use biodiesel commercially.
- More than 850 retail filling stations offer biodiesel to the public.
- Our federal government has mandated the use of 4 billion gallons of renewable fuel in 2006, growing to 7.5 billion gallons in 2012.
- Currently there are 171 plants either producing biodiesel or being planned.
International:
- Asia Pacific will overtake North America by 2010.
- As economies mature, demand typically shifts from industrial use to transportation sectors.
- U.S. is gasoline focused regarding fuels whereas Asia is diesel-focused (gas oil).
- Biodiesel will have far greater impact on road diesel balances than ethanol will have on gasoline balances.