New Grease Market

Yesterday I helped Van debug his grease delivery system. He’s a small hauler in the area that focuses on grease traps, and is expanding into yellow grease.

When I first met Van, his customers were begging him to pick up both yellow and brown grease at the same time. And to keep them happy, he did so.

But the environmentalist in him knew the yellow grease had a higher purpose, so he found us. Giving the yellow grease to Piedmont Biofuels was better for the planet than composting it.

And we have worked with Van on streamlining our grease collection over the years.

So for the longest time, he got the customer goodwill, and we got free grease in quantity.

Enter Carolina Biodiesel Industries. I introduced them to biodiesel, and when I was on their board, I introduced them to Van. Now they are in the game, with an amazing homemade rig that has a vast grease hauling vessel installed in its bed. I saw it one night at the college, and it is new, and impressive, and it can haul some volume.

Suddenly Van has two takers for his grease.

Enter Dean Brooks. He’s the dirt maker in Goldston with the micro hydro project that he wants to supplement with straight vegetable oil in his turbine. I’ve talked to Dean a lot. He wants to put up a reactor to make his own off road—which he uses a lot of—and he wants to do peak shaving with vegetable oil at his power plant. He’s willing to waive his tipping fees in exchange for yellow grease—which means cash to someone like Van.

Now Van has three prospective customers.

Enter Sustainable Living. Leif is designing and building the nicest reactor in the triangle as we speak. Double-Jacketed stainless conical that they had shipped in from somewhere. And he turned them onto Van. They committed to buying 500 gallons per month.

Let the bidding begin.

I’ve been telling Van that the value proposition for yellow grease in this region is on the cusp of change. And I think he’s been somewhat suspicious. He is right when he remarks that he is the only true business in the mix. Piedmont Biofuels is like a herd of cats, and Carolina Biodiesel is run by a non-profit. Dean Brooks is a true business, in fact he is big and successful, but waiving tipping fees is not a very high bid for yellow grease. After all, he has a business to run.

Today we delivered four hundred gallons to the zoo. Rachel and Tami had set up the publicity event, and we all headed that way to fill them up, and get photographed, etc. John Bonitz from Celebrity Dairy joined us.

After delivering our “PR quantity” of fuel, Rachel and I rode home on the back roads together.

I said, “The value proposition for used fryer oil in the triangle is changing.”

She said, “It has already changed.”

It kind of reminds me of the Elvis Costello song, where he sings about the second coming of Christ, “I really hope you’re coming ‘cause you really started something.”

Our last delivery of grease was free, but that’s because the bidding has not truly begun. It’s remarkable to me when I reflect on how we really started something…

Posted by Lyle at December 14, 2004 08:59 PM