Riksch BioFuels

Source: Energy Digital

Date :11/21/2007 10:04:25 AM

Can diesel be environmentally friendly?

Biodiesel is becoming a viable fuel source in the US, as Don Miksch, Vice President of Administration at Riksch BioFuels explains

Written by Ian Armitage and Produced by Lenny Antoine

In today’s economy, petroleum is our life-blood. It powers cars and heats homes. The planet is now so reliant on petroleum for its energy needs that a lack of it could put us back in the Stone Age. It took millions of years for the earth to make petroleum, but it is believed that it will now only take a few more for humans to deplete resources.

When we use the last of the supply what will we do? There are an infinite number of choices and everyone has an opinion.

Perhaps biofuel is the answer? We already have a petrochemical distribution infrastructure, we rely on diesel-powered trucks to transport almost everything and most consumer vehicles are designed to run off gasoline or diesel, which could be switched to biofuel blends with ease. Biofuels, considered as a means of increasing energy security by providing an alternative to fossil fuels, are used globally and the market for such products is expanding in Europe, Asia and the Americas.

Biodiesel is the most common biofuel. It is produced from oils or fats using transesterification and is a liquid similar in composition to mineral diesel. It can be used in any diesel engine when mixed with mineral diesel. In the USA, around 80 percent of commercial trucks and city buses run on diesel and, as a result, the promising US market for biodiesel is growing at a staggering rate.

Releasing potential

Using market-leading technology, Riksch BioFuels intends to produce a high-grade biodiesel fuel for consumption in the American Midwest, specifically Iowa, helping customers in the region increase energy security and tap into this potential. Riksch BioFuels has become regionally recognized as a leader in fuel production through quality products and absolute business integrity. “Utilizing Iowa’s vast resources of soybean and vegetable oils, we want to produce environmentally friendly fuel, helping to reduce pollutants and reduce the dependence we all have on fossil fuels,” explains Don Miksch, Riksch BioFuels’ Vice President of Administration. “Biodiesel is produced from renewable fats and oils such as soybean oil and works in any diesel engine with few or no modifications.” Dedicated to reducing pollutants, the company works closely with the local community and other partners to achieve this goal.

The founders of Riksch BioFuels LLC, who all have an agricultural background and a history of producing biodiesel on a small scale, recognized a need for a biodiesel production facility in Southeastern Iowa, forming the company on April 4, 2005. Biodiesel is a cleaner burning, better lubricating alternative fuel that has been extensively researched and used worldwide for decades. It can be mixed with petroleum diesel or it can be used by itself.

Don, himself a co-founder of Riksch BioFuels, was rooted in agriculture at a young age, spending the large part of his youth on his grandparent’s farm. Don is a 2001 graduate of St. Ambrose University, where he earned his BA in Accounting. Continuing his education, he earned his MBA through the St. Ambrose University School of Business and the H.L. McLaughlin Masters of Business Administration Program in 2002. After spending three years with the State of Iowa Auditor’s office as an Assistant and Staff Auditor, he began researching the feasibility of renewable energy sources such as wind energy and biodiesel. “My experience with biodiesel started in 2004 and since that time I have discovered that it is full of potential,” he adds.

New biofuels industry

With an $8 million biodiesel production plant, Riksch is part of the new biofuels industry being established in Iowa. According to the Iowa Soybean Association, the industry will invest more than $417 million to build production plants and more than $2 billion in labor and goods and services by 2010. This spending will add more than $3 billion to the Iowa economy by 2010, put an additional $1 billion of income into the pockets of Iowans and create 14,000 jobs.

So why is it proving so popular? Don believes he has an explanation: "Biodiesel is 100 percent biodegradable, which makes environmental restrictions significantly less than fossil fuel products," he says. “The use of biodiesel in a conventional diesel engine results in substantial reduction of unburned hydrocarbons, carbon monoxide, and particulate matter compared to emissions from diesel fuel. This makes the product extremely popular and the market is expected to boom in the coming years.”

Given its technological expertise, as well as strong environmental commitment, Riksch BioFuels is well placed to succeed in this expanding market. In little more than a year, the company’s growth has been fantastic – it has gone from having a concept to producing biodiesel in an $8 million facility. Although it has grown considerably, Riksch BioFuels has no plans to exceed its boundaries: “We feel that the company’s small structure is appropriate as it reduces liability on its owners – Neil Rich, his brother Darin and myself – but it has provided the right structure for us to succeed,” explains Don. “We never anticipated having a large ownership and never intended to float the company publicly.”

A bright, ?but challenging, future

Despite the success, Riksch BioFuels has to overcome a few hurdles, least of which is feedstock prices, as Don continues: “Feedstock prices have dictated our output and with the high stock costs we are only producing what there is demand for. We are using oil that potentially could be used for food and plastics, so it is a competitive market and that is making costs high.”

He adds: “Despite these difficulties, the market looks good; demand has steadily increased over the years. What has made this happen? Well, as education has risen about biodiesel so has the demand, while the price of crude oil is also forcing people to look at alternative fuel options like biodiesel.”

According to Don, the company is pleased at how it and the industry in Iowa have developed. Riksch BioFuels has become recognized as a leader in the field and Don is excited by the future: “We always want to be at the cutting-edge of technology and make sure we are making the best fuel we can,” he concludes. “We want to be an industry leader and I see Riksch Biofuel leading technology in the future.”