Buffalo Biodiesel Announces Strong Outlook and Expanded Operations Following Positive Progress with New York State DEC

October 22, 2025

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(Buffalo Biodiesel/Open PR) Buffalo Biodiesel Inc., a leading recycler of used cooking oil (UCO) and a pioneer in renewable feedstock production, recently announced that it has successfully resolved recent permitting matters with the New York State Department of Environmental Conservation (DEC) and is moving forward with a clear path toward continued growth and expansion.

Following constructive discussions with the DEC, Buffalo Biodiesel has received confirmation to continue operating its Tonawanda facility while it completes a series of state-of-the-art environmental and engineering upgrades. The company has committed over $1 million in capital improvements that will modernize processing systems, enhance environmental safeguards, and further solidify its position as one of the region's most innovative circular-economy businesses.

"We appreciate the DEC's collaborative approach and the opportunity to demonstrate our commitment to full environmental compliance and continuous improvement," said Sumit Majumdar, President and CEO of Buffalo Biodiesel. "This process has strengthened our company, clarified regulatory expectations, and positioned us for sustained growth. Buffalo Biodiesel was built in Western New York, and we're proud to keep our operations-and our jobs-right here. We're not just back on track; we're accelerating into the future of renewable energy."

Over the past decade, Buffalo Biodiesel has developed one of the largest used-oil recycling networks in the Northeastern United States, serving more than 25,000 restaurants across 15 states. The company collects, compensates restaurants as suppliers, and processes millions of gallons of used cooking oil annually, diverting waste from landfills and sewers, and transforming it into renewable biodiesel and other sustainable energy inputs.

The company's current investment program includes new processing and storage infrastructure, improved monitoring technology, and expanded theft-prevention systems designed to protect restaurants and business partners. Buffalo Biodiesel expects these upgrades to increase processing capacity, reduce turnaround times, and create additional skilled jobs in the Tonawanda, NY area.

"The lesson from this experience is simple: constructive conversations creates progress," Majumdar added. "We believe New York can be a national leader in renewable-fuel production and sustainable-waste management, and Buffalo Biodiesel is proud to help drive that vision forward."

About Buffalo Biodiesel Inc.

Founded in 2005, Buffalo Biodiesel Inc. is a vertically integrated used-cooking-oil recycler and renewable-feedstock supplier headquartered in Buffalo, New York. The company provides comprehensive UCO collection, logistics, and processing services for restaurants, institutions, and food manufacturers. Buffalo Biodiesel's operations support the production of cleaner fuels, contribute to local economic development, and play a vital role in reducing carbon emissions.

For more information, visit www.BuffaloBiodiesel.com READ MORE

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When waste-oil meets regulation: How Buffalo Biodiesel is turning a permit hurdle into a growth story (Biz Talk Today)
Buffalo Biodiesel Announces $300 Million Growth Partnership with Verite Capital Partners; Don Jones to Become Minority Owner and Chairman (Buffalo Biodiesel/PR Newswire)
Buffalo Biodiesel claims progress on permit -- The recycler of used cooking oil says is has resolved permit issues with the New York State Department of Environmental Conservation (Waste Today)

Excerpt from Biz Talk Today: But in 2025, the company encountered a serious regulatory head-wind: A directive from the New York State Department of Environmental Conservation (DEC) warning that without updated permitting it risked shutting down Buffalo Biodiesel’s processing plant.

What followed, however, is not a tale of failure or exit – but of resolution, reinvestment and renewal. In turning to compliance, engineering upgrades and long-term strategic vision, Buffalo Biodiesel is positioning itself not merely to survive, but to thrive.

Company background & business model

Buffalo Biodiesel is headquartered in downtown Buffalo, N.Y., and serves a network of thousands of restaurants across multiple states. According to its website, the company uses digital monitoring (“Radar System”) to manage collection vats, and tracks gallons recycled and pounds of CO₂ avoidance.

The business: Restaurants place used cooking oil into vats; Buffalo Biodiesel collects and pays the restaurants for it, aggregates it, and either processes it or supplies it to refiners. This dual identity — waste-management service and renewable-feedstock supplier — positions BBD at the heart of the circular economy.

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In the summer of 2025 the DEC delivered formal notice to Buffalo Biodiesel: the company lacked the proper Solid Waste Management Facility (SWMF) permit for its Tonawanda site under 6 NYCRR Part 360 (or equivalent designation) and had roughly a month to fix the issue or face shutdown.

What makes this especially noteworthy: although UCO is a liquid and historically treated differently, the DEC’s interpretation shifted to treat it under “solid waste” rules for aggregation/processing for the purpose of Part 360.

For BBD, the situation was urgent: not only did the regulatory clock count down, but the company’s entire upstream network of restaurant suppliers and downstream reuse/refinery contracts stood to be disrupted.

As Majumdar put it:

“We’re not a polluter. We don’t even have a smokestack … What happened was we were operating by registration, and they changed the regulations for the DEC in 2017, I believe.”

The remake in action

Here’s how Buffalo BioDiesel turned that external pressure into a roadmap for renewal:

Immediate engagement with engineering/consulting firms: BBD brought in full‐time engineers, sound/traffic studies and permit-application experts to ensure compliance.
Securing interim scope to stay in operation: Rather than shutting its vats and collection network, the company negotiated with the DEC to continue operating while finishing the permit package and implementing upgrades. This avoided disruption to its customers, workforce and regional supply chain.
Facility upgrades and investment: In public statements, BBD committed to significant capital expenditure at the Tonawanda site (engineering, upgrades, compliance). These investments will not only bring the operation into regulatory alignment, but strengthen its processing and monitoring capabilities for the future.
Marketing the “local stay” message: Rather than relocating or shrinking, BBD emphasized that it was choosing to retain operations in New York and maintain its regional network. That message resonates positively with the local economy and green-job advocates.

Why this matters: regional, environmental & economic significance

Buffalo Biodiesel’s rebound has implications beyond a single facility. READ MORE

Excerpt from Biz Talk Today: In the unglamorous alley behind a fast‑food outlet lies a secret commodity: used cooking oil (UCO). Once considered a disposal burden, UCO has graduated into a strategic feedstock for biodiesel, renewable diesel, sustainable aviation fuel, and specialty chemicals. The transformation of “waste” into value, however, masks a delicate balance of slim margins, tightening regulation, logistical complexity—and persistent criminal risk.

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As one industry commentator put it, “UCO with clear traceability and reliability of origin, such as UCO from restaurants, tends to command a premium among buyers.” This premium signals how critical provenance and quality have become to the value chain.

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But such rule‑of‑thumb numbers obscure the real challenges of handling storage, pretreatment, testing, transportation, and route operations.

At the processing end, refiners and biofuel producers demand UCO that meets tight specifications: low moisture, minimal contamination, acceptable free fatty acid content, and proven chain‑of‑custody. Poor feedstock quality can drive cleaning and pretreatment costs up by 15–20 % or more.

...

But this business is not just a matter of operations and contracts—crime and fraud loom large. Because UCO is liquid, transportable, and relatively high value, it has become a target for theft and illicit diversion. In one multi‑state report, 96 thefts were recorded over a one‑week span, with vats emptied by suction or pumps. In a high‑profile case in Fort Lauderdale, two women were videotaped siphoning used oil from restaurant tanks, allegedly for resale to biofuel firms.

...

Former prosecutors and local officials argue that many thefts are not treated as serious crime, limiting deterrence. In one jurisdiction, prosecutors are pushing for racketeering charges (RICO) to address systemic organized theft rather than mere misdemeanor larceny. The logic: if theft of UCO becomes sufficiently organized to have upstream direction, it may warrant elevated legal scrutiny.

Fraud is another danger. Because biodiesel or renewable fuel credits can be earned on properly documented UCO feedstock, some actors have attempted to pass off virgin palm oil or other lower‑cost lipids as used cooking oil. In 2024, the U.S. Environmental Protection Agency launched audits of renewable fuel producers, investigating whether some companies inflated or mischaracterized their UCO supply chains. “EPA has conducted audits of renewable fuel producers since July 2023 which includes … an evaluation of the locations that used cooking oil used in renewable fuel production was collected,” a spokesperson said. In response, Malaysia has moved to tighten export rules and distinguish sludge palm oil from true UCO to protect its reputation as a credible exporter.

Because of these risks, modern participants in the UCO space are deploying increasingly sophisticated countermeasures. Real-time monitoring of collection vats, level sensing telemetry, security cameras, alarm systems, and tighter contractual clauses have become de rigueur to preserve integrity. Firms also invest in supply chain traceability, documentation audits, and “cold chain” style custody control to limit opportunities for diversion or mislabeling. READ MORE

Buffalo Biodiesel/PR Newswire:

Buffalo Biodiesel Inc. ("BBD"), a leading used-cooking-oil recycler and renewable green energy fuel producer headquartered in Buffalo, New York, today announced a transformational capital and growth partnership with Verite Capital Partners ("VCP"). The agreement secures a planned $300 million funding program that will accelerate BBD's expansion from a 15-state footprint to 25 states across the entire eastern United States, from Montreal to Miami.

Under the terms of the agreement:

Don Jones, founder and managing partner of Verite Capital, upon full completion of the funding, will become a minority owner of Buffalo Biodiesel and will assume the role of Chairman of the Board.
The funding will support BBD's construction of two new state-of-the-art renewable natural gas (RNG) plants — one located in the Northeast and another in the Southeast (Mississippi).
At full funding, BBD expects to add 600+ new employees, as it scales its operations and processing infrastructure.
The funding rollout will occur in three stages, enabling organic growth from 15 states to 25 states — covering "all states east of the Mississippi" — once the rollout is fully executed.
BBD's geographic footprint will extend from Montreal to Miami, reinforcing its east-coast and international reach.

"This partnership marks a pivotal moment not just for our company, but for the region's clean-energy future," said Sumit Majumdar, President & CEO of Buffalo Biodiesel. "With Verite's backing, we can double down on our mission: collecting used cooking oil from tens of thousands of restaurants, converting organic waste into renewable natural gas, and expanding sustainably from Montreal down to Miami. The two new plants and the hundreds of new jobs they bring will deliver real economic impact across underserved markets."

Don Jones added, "We at Verite Capital believe in business with purpose. Becoming a partner and Chairman of Buffalo Biodiesel allows us to invest in a growth company that aligns with our values — equity, community and clean energy. Together, we'll expand operations east of the Mississippi, build meaningful jobs and bring RNG production to new markets. We're honored to join this journey and help accelerate sustainable fuel solutions while empowering communities."

Buffalo Biodiesel currently serves over 28,000 restaurant supplier locations across 15 states and has established one of the largest used-cooking-oil networks in the Northeastern U.S. The new funding and strategic partnership will enable the company to strengthen its logistics, processing and monitoring systems, launch the two new RNG facilities and scale operations systematically into the Southeast corridor.

About Buffalo Biodiesel Inc.

Founded in 2005, Buffalo Biodiesel is a vertically integrated recycling and renewable-feedstock company that collects used cooking oil (UCO) and processes it into biodiesel, renewable diesel and RNG feedstocks. The company is headquartered in Buffalo, NY and serves restaurants, institutions and food manufacturers across the eastern United States. For more information, visit www.BuffaloBiodiesel.com.

About Verite Capital Partners

Verite Capital Partners is a private investment and advisory firm founded by Don Jones. The firm focuses on scaling small and mid-market companies, often in underserved domestic markets and high-growth segments. Verite brings deep expertise in strategic finance, private equity and operational leadership to its portfolio companies. For more information, visit www.VeriteCapitalPartners.com. READ MORE