1. Biodiesel Research Funded by State Energy Office Ghasem Shahbazi, Director Biological Engineering Program NC A&T State University

2. Objectives and Tasks Develop an Integrated Bio-refinery to convert crude glycerol to ethanol Tasks: 1.Purchase and install equipment 2.Conduct experiments to Convert glycerol to ethanol

3. Organize a farmer biodiesel Cooperative Tasks: Assess distribution of oil seed production in NC Prepare and conduce a farmer biodiesel survey Set up a pilot biodiesel production facility to demonstrate the process and potential of biodiesel fuel in NC Develop a business plan for a farmer biodiesel cooperative

4. Oil Seed Production in NC 43.52 Million Bushels in 2006

5. Conducting Biodiesel Survey Attended annual meeting of Operation Spring Plant (OSP) farmer’s cooperative, January 9-10, 09, held in Raleigh, NC Discussed the biodiesel project with 40 farmers attending the meeting, Distributed a biodiesel survey form to 40 participating farmers Received 13 completed responses and analyzed the responses

6. Analysis of farmer’s biodiesel survey Participants: 3 Female and 10 male responded Age group: 36-60 years old Years in farming: 3-32 Farm size: 10-35 acres, two had 400 acres 90% of the farmers believed that producing their own fuel is the best way to offset the high fuel prices

7. Analysis of farmer’s biodiesel survey, continued… 90% of the respondents would be willing to grow a different crop if it could help them to take care of their fuel needs Only three large farmers had livestock that could benefit from the seed-meal by-product Majority of the farmers did not know about NC’s energy policies or tax incentives 80% of the farmers would be willing to join a biodiesel cooperative and/or produce their own biodiesel

8. Conclusions from the biodiesel survey responses Lack of accurate knowledge about biodiesel is apparent 80% of the respondents would consider producing their own biodiesel or join a farmer’s biodiesel coop Majority of the farmers are eager to learn about biofuels Given different levels of farmer’s familiarity with biofuel, answers by individual farmers appears to be consistent

9. First Strategic Planning Meeting Held the first strategic planning meeting on February 17 th to outline the development of a business plan Participants included: –Owners of a start-up biodiesel production plant –Suppliers of the oil seed and yellow grease –A&T professor from the Economics Department –A&T professor from the Agricultural Economics Department –A private consultant, Ascendant Partners, Inc

15. Red Birch Energy, Bassett, Virginia

16. Farmer Coop Current capacity of RBE is 2,200 GPD or 750,000 GPY A 20-member farmer Coop grows 1400 AC of canola for RBE They will need to plant 5000 AC of canola to operate the plant 3 shifts/day which will produce 2.25 million GPY

17. Economic Feasibility of Biodiesel At the rate of 1 Million GPY biodiesel fuel production from canola oil is economically feasible With 6 years of payback period, biodiesel production is a profitable venture Canola can be grown as winter crop in NC, in rotation with corn and soybean

18. Vision for Farmer’s Biodiesel Coops