In Business, Creating Sustainable Enterprises & Communities

OPERATING A COMMERCIAL BIODIESEL REFINERY

In Business, March-April, 2006, Vol. 28, No. 2, p. 17

Seattle Biodiesel works with local farmers to produce feedstock oils at its facility Yielding 5 million gallons of quality fuel a year.

Zanetha Matisse

ONE of the nation's leading commercial bio-diesel refiners, Seattle Biodiesel is “bioneering” locally-grown fuel and technology for cleaner air and energy independence. We are the first company in the Pacific Northwest to open and operate a refinery producing fuel that meets or exceeds ASTM D-6751 specifications. Seattle Biodiesel is developing proprietary technology solutions for sustainable energy. By offering innovative and competitively priced high-quality fuel through our large-scale biodiesel processing plant, we are leading a biofuel revolution.
Made from abundant and renewable virgin seed oil, our biodiesel supports regional economies by keeping energy production dollars circulating in our own communities, from farmer to fuel pump, without sending dollars out of the region and out of the country. We are committed to enhancing local energy economies, the environment, and human health by continually improving the future of all biofuels. We sell our products exclusively to wholesale distributors.
We work with farmers to produce premier alternative fuels crafted from the finest possible oilseeds stock. And we operate a commercial-scale (five million gallons a year) refinery. Seattle Biodiesel is a wholly owned subsidiary of Seattle BioFuels, a leader in biodiesel systems development. Our ultimate goal is to produce a gallon of biodiesel cheaper than a gallon of petroleum diesel.
COMPANY HISTORY
Seattle Biodiesel was founded in late 2003 by John Plaza who is president. Saybr Contractors, the leading petroleum facility contractor in the Northwest, entered into a joint venture with Seattle Biodiesel to construct the region's first commercial biodiesel refinery in 2004, and in early 2005, the refinery opened for business. Seattle BioFuels operates the Seattle refinery as a wholly owned subsidiary under the name Seattle Biodiesel, LLC. Seattle Biodiesel sells directly to leading fuel distributors including Pacific Northwest Energy Company (SC Oils), Associated Petroleum Products, Pettit Oil and SeaPort Petroleum. We will continue to develop and market our core processing technology innovation and pioneer inventions across the biofuel value chain. Seattle Biodiesel is currently engaged in two pilot projects with Northwest farmers to develop oilseed crushing and refining capacity in Eastern Washington. The company now has 22 employees.
Prior to founding the company, Plaza was a commercial airline pilot for over 20 years, most recently with Northwest Airlines. He became interested in alternative fuels in the late 1990s and explored many different technologies. Convinced that biodiesel was the best opportunity, John founded Seattle Biodiesel in late 2003 as a means to produce clean, renewable fuel. An active member of the National Biodiesel Board, John is a recognized national expert on biodiesel and is a frequent contributor to working groups both regionally and nationally.
Martin Tobias is the CEO and Chairman of Seattle Biodiesel and a Venture Partner at Ignition Partners. Tobias joined Seattle Biodiesel to drive strategic direction in May 2005, after investing in the company in late 2004 following a multiyear search for the right alternative energy investment. Seattle Biodiesel is a personal investment for Tobias who has been with Ignition Partners since 2002 working with the infrastructure software and networking team. He has invested in over two dozen start-ups and currently serves on the boards of Cloudmark and IP Fabrics.
Bill Dommermuth serves as Plant Manager for the Seattle Biodiesel facility - offering 33 years of plant management experience with various leaders in the chemical processing industry including Degussa Construction Chemicals, Reichhold Chemicals, Inc, USS Chemicals and Owens Corning Fiberglas. He is skilled in all aspects of process manufacturing management, including budgeting, capacity planning, ISO 9000, SPC, TQM implementations, team building, cost control, quality control, contract negotiations as well as multiplant management. He studied Chemical Engineering at Purdue University and University of Pittsburgh.

THE ADVISORY BOARD
Mark Tegen is General Manager of Pacific Functional Fluids, a full service petroleum and chemical compounder, blender, packager, and marketer. Tegen is a trained petrochemist, and a recognized regional leader in marketing and innovating various petroleum and chemical products.
Wes Berry is a chemical process manufacturing consultant and partner in Process Technology Associates. He has consulted on a wide variety of biodiesel ventures prior to joining Seattle Biodiesel including Ocean Air Environmental, among many others. A biodiesel pioneer, Berry designed and operated the first commercial biodiesel production facility in the U.S. in Lakeland, Florida.
Mickey McAloon and Karen Say of Saybr Contractors, a leading developer of petroleum, alternative fuel and utility facilities, as well as specialized environmental services. Saybr Contractors built the Seattle Biodiesel refinery.
BIODIESEL PRODUCTS ... AND MORE
Seattle Biodiesel produces unblended B100 refined from a variety of oils - canola grown in Washington State, soy and other crops. We work directly with regional farmers to develop the finest virgin feedstock oils. Seattle Biodiesel has become the fuel of choice for public and private fleets in the Northwest, including the city of Seattle school buses.
“This is a great business,” says Plaza, “and we're in a good position to be leaders in the market. Our sales gradually keep increasing, and we're able to sell all that we produce.” Last year, Washington state passed legislation requiring a minimum of two percent biodiesel in all diesel fuel sold in the state. The law also provided benefits of tax credits to biodiesel makers. Plaza is also evaluating other sites for expansion “where our model fits in best.”
Made from renewable vegetable oils, the B100 biodiesel is a nontoxic, biodegradable and safe fuel that works in any conventional diesel engine. The fuel improves air quality by reducing harmful pollutants.
The company also produces and sells crude glycerol (also called glycerin), a by-product of the refining process. We sell in totes of 275 gallons. Also produced is virgin vegetable oil.

Zanetha Matisse is Administrator at Seattle BioFuels, Inc. located at 104 Pike Street in Seattle. She can be contacted via e-mail at zanetha@seattlebiodiesel.com.