Country and Western songster Willie Nelson had a lot to do with Carlos Guzman and Larry Walter venturing into the biodiesel industry. His biodiesel venture in Texas now markets biodiesel under the BioWillie brand.
Walter, 59, a retired Army sergeant, said he encouraged Guzman to create a business and then decided to depart from his job as a computer specialist to help Guzman form Global Alternative Fuels (GAF).
The North American Development Bank lately approved a $20 million loan to help finance completion and growth of the biodiesel plant at the former Southwestern Irrigated Cotton Growers Association cotton-processing and cotton-storage plant.
The loan, which still has to be finalised, is the biggest given by the bank to a private company and the first alternative fuels endeavour funded by the bank.
The company is estimated to start producing biodiesel in September from used vegetable oil (or grease) collected from El Paso restaurants plus vegetable oil and animal fat shipped from other places. Eventually, it will also use oil from the beans of the Jatropha plants the company is growing in Mexico. The company plans to initially generate 5 million gallons, or more than 119,000 barrels, of biodiesel a year. Its goal is to deliver 100 million gallons a year by 2012.
Last year, 500 million gallons of biodiesel were produced in the United States, displacing 20 million barrels of oil imports. The United States has 171 biodiesel plants in operation, and 57 under construction at the start of this year. Global Alternative Fuels has a contract to sell its biodiesel to Western Refining in El Paso to be mixed with ordinary diesel.
Guzman said El Paso has an estimated 1.2 million gallons of grease available annually from area restaurants. So, besides shipping in used vegetable oil and animal fat from out of town, the company is looking to Juarez for more grease, where the company is part of a co-op growing Jatropha plants on 500 acres. Beans from the plants contain oil, which can’t be used for cooking because it’s poisonous, but are used in other parts of the world to make biodiesel.
Grease or other vegetable oils are put through a biodiesel processor at the GAF plant and chemicals help break down the grease. No water is used in the process. The skyrocketing price of petroleum diesel, which was selling for an average $4.64 per gallon in El Paso last week, is helping the biodiesel business, which also is boosted by government price subsidies.
For more information: www.globalalternativefuels.com; www.biodiesel.org