Garden State Biodiesel Inc.

• Distilate– High Sulfer Low Sulfer– #2 Dyed High Sulfer #2 Dyed Low Sulfer– Off Road diesel On Road Diesel– Heating oil Low Sulfer Clear

» Ultra Low sulfer Diesel

• Dyed - Untaxed Undyed - Taxed

Diesel

• Biodiesel – General Definitions, Blends & Production Processes

• Biodiesel Markets, Demand, and Distribution• Biodiesel Performance Parameters• Why Biodiesel is Used• The “Business Case” for Biodiesel• ASTM D 6751 Specification• Lubricity Aspects & ULSD Rule of 2006• Cold Flow

Biodiesel 101

What is Biodiesel?

• An alternative fuel that can be used in neat (pure) form, or blended with petroleum #2 oil for use in diesel engines, on & off road, home heating oil.

• Biodiesel is a domestic, renewable fuel for diesel engines or heating oil derived from natural oils such as soybean oil.

• Biodiesel can be used in any concentration with petroleum-based diesel fuel

• existing diesel engines or heating systems with little or no modification.

General Definitions

• Biodiesel is not raw vegetable oil.• Biodiesel must be produced by a chemical

process that removes glycerin from the oil.• Biodiesel blend, a blend of biodiesel fuel

meeting ASTM D 6751.06a with petroleum-based diesel fuel designated BXX, where XX is the volume percent of biodiesel.

General Definitions

The primary factors driving Biodiesel include: Energy Independence

Energy Policy Act of 1992 (EPACT)Biodiesel Mixture Credit – Through 2008

USDA Commodity Credit Corporation Incentive – Through 2006Heating Oil markets

Renewable Fuel Standards Enhanced Lubricity & Conductivity Improver

Premium Diesel Market Grows as Consumers Demand More From the Fuel They Use2006 Ultra Low Sulfur Diesel Issues

Environmental BenefitsCO2 Reductions

Less Toxic and More BiodegradableEmissions Reductions

Biodiesel Market Potential1.65 Billion Gallons in Mid-Atlantic Region

High Petroleum Transportation and Heating Oil Fuel Costs

Project Drivers

• The first and only alternative fuel to have a complete evaluation of emission results and potential health effects.

• The most stringent emissions testing protocols ever.

Environmental Benefits

Biodiesel Toxicity and Safety

• Only alternative fuel to have complete Tier I and Tier II testing.

• Toxicity is 1/10 that of table salt.

• Dermal irritation less than 4% soap & water.

• Aquatic toxicity >1000mg/l (“Insignificant”)

• ~85% biodegradation in 28 days.

Emission Testing Results

Environmental Benefits

• Can be used in any diesel engine or heating system

• Blending ratio’s from 2 to 100%

• Improves fuel lubricity

• Significantly improves air quality, is biodegradable and is less toxic than table salt

• NJDEP Web Site

• Reduce Diesel Emission

• Health Effects

• Reducing soot by 20%

• 400 premature deaths can be avoided

StopTheSoot.org.

Industry Overview

• The fastest growing renewable fuel in US

• Growth rate in excess of 100%

• Environmentally friendly

• Industry in infancy compared to ethanol

• Current industry cannot meet demands

Biodiesel Industry

• The U.S. biodiesel industry has grown at a rate averaging more than 100% for the past five years.

Biodiesel Industry

Biodiesel Industry

Biodiesel Industry

Biodiesel Industry

Potential Regional Biodiesel Usage

Feedstock for Biodiesel

• Virgin Vegetable Oil – (Soybean, Canola, Corn, Sunflower, etc)

• Waste Vegetable Oil – (Yellow Grease collected from restaurants)

• Animal Fats – (Beef Tallow, Poultry Fat, Pork Fat, etc.)

• 21.5 million bushels soybean

• NJ 3.1 million bushels per year

• Perdue-36.3 million bushels per year - 50.8 million gallons

• Darling International-100 million lbs./year of Poultry Fat & Yellow Grease – 13.3 million gallons

Feedstock for Biodiesel

Biodiesel Markets

• Biodiesel Wholesale Marketers

• Wholesale Distributors– primarily through fueling stations to transport

trucks and other retail consumers.– Includes oil companies, station owners,

marinas, and railroad operators

Biodiesel Markets

• Retail Markets:– Government/Public Sector

• Federal, State and Local Government Agencies

• Municipalities

• Military Institutions

• Agriculture

• School Districts

– Heating Oil

Management Systems

• Biodiesel Quality Standard, BQ-9000• ASQ Environment Standard, ISO 14001• ASQ Health & Safety Standard, OHSAS 18001

• Standards are expected to become critical performance measure in the Biodiesel, OSHA, EPA & DOT industries in the upcoming years