Advanced BioFuels USA

by Ron Kotrba (Biodiesel Magazine)  From a company whose software facilitates small feedstock generators landing big contracts to a comprehensive report on biomass-based diesel, and a tax specialist with new solutions, the industry knowledge in this spotlight edition runs deep. 

Global Fuel Recovery
Come January, International Maritime Organization regulations require oceangoing vessels to use bunker fuel with 86 percent less sulfur, moving from 3.5 to 0.5 percent. The new IMO 2020 requirement is expected to increase diesel demand by 1.2 million barrels per day, says Michael Smith, co-founder of Global Fuel Recovery. It will also push used motor oil prices down, forcing many reclaimers to raise their prices. Smith has been in the reclamation business for more than 20 years and, fortunately for generators and buyers, his three-year-old startup is ready and well-positioned for this market shift. With strategic partner Modern Fuels, GFR is managing feedstock for a 17 MMgy used oil refinery in Houston to re-refine used motor and high-sulfur bunker oils into IMO 2020 fuel by mid-next year.

Through its cloud-based, outward-facing software developed by business partner and co-founder Barry Lile, GFR is an asset-light company giving small- and medium-sized collection companies the ability to link together and obtain national contracts for used motor oil, yellow grease, off-spec biodiesel, crude glycerin and more. “Most software that companies use faces them, but ours faces the customer and their needs,” Smith says. “It covers everything—billing, transportation, regulatory compliance, how much oil is taken out and where, and how much is paid. It tracks the transaction the whole way.”

GFR is bringing technology to bear on an old problem. “The way many collection companies are doing things is super antiquated,” Smith says. “Our customers go into our software, set up their account, and we match them with the right aggregator. Everything’s right there. It’s all automated.” GFR’s software eliminates selling, general and administrative (SG&A) costs. 

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Special Report
In August, three industry veterans—Joe Jobe, former CEO of the National Biodiesel Board and founder of Rock House Advisors; Manning Feraci, former NBB vice president of federal affairs and founder of Playmaker Strategies; and Larry Schafer, former NBB consultant and principal at Playmaker Strategies—released their comprehensive policy and market report, “Biodiesel and Renewable Diesel Policy, Regulatory and Market Perspectives.” The report is the result of the trio’s 60 years of combined experience in the field, much of which was earned as a team helping steer and develop legislation and regulations that, more than a decade later, remain the industry’s cornerstone policies.

“The report is comprehensive by design,” Feraci says.

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Avalara
Federal excise taxes on fuels may not change very often, but in more than 12,000 state, county, city and local special jurisdictions, excise taxes are in constant flux. For a company to operate as a fuel wholesaler or distributor across multiple jurisdictions without a tax partner such as Avalara by its side could cost precious time, resources and money. How does Avalara stay on top of all the changes in excise taxes across so many jurisdictions? “We have an army of people,” says John Beaty, general manager for Avalara’s excise business unit. This army of tax specialists is deployed throughout North America. “We added Mexico this year,” Beaty says.  READ MORE