I got a reply from the US DOE yesterday saying they found no merit in my 
preliminary grant application. I'm a little disappointed, but thought there 
might still be something of value here. If you have the time, let me know 
what you think

Tom Leue
Homestead Inc.

Biomass Research and Development for the Production of Fuels, Power, Chemicals
and other Economical and Sustainable Products
Solicitation 1435-01-02-RP-86382
Pre-Application Submitted 5/14/02
Submitted to   [EMAIL PROTECTED]

Proposal for a Biodiesel Development Center

Submitted by:   Thomas S. Leue, President, Homestead Inc.
1664 Cape St., Williamsburg, MA 01096
413 628-4533, Fax 413 628-3973
[EMAIL PROTECTED]

Introduction
Biodiesel fuel has been shown to be a superior diesel fuel in terms of 
environmental impact, balance of trade, global warming, toxicity, emissions,  
engine longevity, etc. However, it has not been generally available to the 
public due to the limited number of producers and their geographic locations. 
Biodiesel fuel has a potential to supply approximately 6.6% of national 
diesel fuel needs, according to the National Biodiesel Board (NBB). To date, 
the NBB has concentrated on production of biodiesel made from virgin soybean 
oil, and all testing has been limited to that product. This proposal will 
lead to the development of an urban biodiesel production facility in Albany, 
New York that will demonstrate the commercial potential of a fuel production 
business based on locally available yellow grease and other vegetable oil 
sources, along with providing the educational resources needed for others to 
duplicate this facility model in many other urban areas throughout the US.

Technical Narrative
The production of biodiesel has been developed using numerous technologies 
over the past twenty years or longer. The technical know how is largely in 
the public domain, but has not led to widespread production throughout the 
US. For instance, this researcher maintains the only commercial scale 
production facility within a 500 mile radius, located in Western 
Massachusetts. The biodiesel biorefinery operated by Homestead Inc. is a 
pilot scale, batch type production facility. Although each batch produced is 
small, currently 20 gallons net per batch and soon to go to 100 gallons net 
per batch, the large number of batches produced, over 300 to date, has 
developed an in-depth understanding of the collection and processing systems 
needed and the variability inherent in processing used vegetable oil. Over 
four years of development and operating experience has developed the basic 
requirements for a larger processing facility to be developed under this 
proposal.

The development of another mid-sized biodiesel production facility by itself 
will not significantly change the rate of utilization of this alternative 
fuel. For example, New York State is currently using over 250,000 gallons 
biodiesel per year, a large part of our initial annual production of up to 
1,000,000 gallons per year. The essence of this proposal is to operate a 
commercially viable biorefinery based on locally available yellow grease; to 
promote the use and availability to the public of biodiesel fuel in both B-20 
and B-100 formulations; to document the technical operations and project 
economics of biodiesel production for use in other startup ventures; to make 
the facility accessible to the public for tours and formal training sessions 
so as to promote the introduction of the technology throughout the urban 
centers of the US; to undertake necessary testing of yellow grease-based 
biodiesel as required by 40 CFR 79 that has not been accomplished to date; 
and to remove the current obstacles that hinder the more widespread 
development of production facilities in other urban centers.

The initial plan would include some advanced energy management operations. 
For example, all normal energy inputs required for operation would be 
site-produced from either on-site biofueled diesel electrical generation, 
biodiesel operated transportation, or from direct utilization of byproducts 
as an energy source for thermal process heat. The facility would be the first 
post-petroleum production facility of its kind, having no provisions for the 
on-site use of fossil fuels. 

After the initial startup and operation goals are met, the Biodiesel 
Development Center would undertake research that has not been extensively 
explored by others to date. For example, greasetrap waste represents a large 
problem throughout the US, both in terms of the burden for maintenance and 
operation of numerous public and private facilities, and also in 
environmentally acceptable disposal options in many locations. The Biodiesel 
Development Center would undertake basic investigations as to cost effective 
methods of recapturing and utilizing this abundant resource for additional 
biofuel production.

Statement of Work
The proposed tasks are as follows:
A. Assembly of a development team, consisting of
a) Technical Director
b) Financial Officer
c) Engineering team
d) Marketing specialists
e) Education consultant from the State University of New York at Albany
B.  Design  of a 250,000 gallon per year initial production facility to be 
located in Albany, New York. Current site selection investigations indicate a 
favorable location in the urban Empire Zone where suitable zoning and 
resources are available.
C.  Construction and operation of the biorefinery.
D. Documentation of system economics and technical operations.
E. Testing of product biodiesel under ASTM certifications.
F. Testing of product biodiesel under 40 CFR 79 Tier 1 requirements.
G.  Development and promotion of a national training program for small scale 
biodiesel refinery businesses.
H.  Promotion to the public of the advantages of biodiesel based 
transportation.

Resources By Task
All aspects of the Biodiesel Development Center will be operated with a team 
approach. A technical development team will plan and design the basic 
facility. The operation and documentation will be conducted with an Operator 
and a Manager. The education and outreach program will be operated by an 
education specialist, assisted by representatives of the other two groups. 
The production facility will operate as a for-profit business, while the 
educational programs will operate under a non-profit organization.

Financial matching funds have been proffered by several private funding 
organizations, seeking a rate of return. Such private funding will be reduced 
as appropriate with the possible assistance of New York State Energy Research 
and Development Authority.

Personnel Resumes
Thomas S. Leue, B.A., R.S., President of Homestead Inc., located in Ashfield, 
MA. Homestead Inc. is an energy research and conservation company in 
existence since 1979. Past projects include hydroelectric development and 
cogeneration projects funded in part by the Massachusetts Energy Office, a 
successful solar-based municipal sewage treatment plant for Ashfield, and the 
current biodiesel refinery pilot project. Further information on current 
operations can be viewed at www.Yellowbiodiesel.com.

M. Chandra Sekhar, President of Shukra Internationals Inc., located at 
29-2350, Grand Ravine Dr., Oakville, ON. L6H 6E2, Canada, is an electrical 
engineer. He has diversified work experience as staff engineer in 
telecommunications industry, Quality Assurance analyst in software industry, 
industrial trainer as well as teaching professor at university level. He has 
been working in the financial world for the past ten years developing trading 
methods and systems for commodity & equity markets. He has been involved in 
alternative energy industry for the past three years and currently is working 
in association with Homestead Inc., to establish a biodiesel refinery in New 
York State.

Biofuels at Journey to Forever
http://journeytoforever.org/biofuel.html
Biofuel at WebConX
http://www.webconx.com/2000/biofuel/biofuel.htm
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