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Commonly Asked Questions

What is biodiesel?

Is it used as a pure fuel or blended withpetroleum diesel?

How do biodiesel emissions compare topetroleum diesel?

Does biodiesel cost more than otheralternative fuels?

Will I need special storage facilities?

Can I use biodiesel in my existing engines?

Where can I purchase biodiesel?

Do additives work for biodiesel andbiodiesel blends in the winter?

Does biodiesel need stability additives?

Will microbes be more relevant in biodieselblends?

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Introducing:

A proud member of:

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are our business

MarketingPackaging

BlendingWarehousingService

FlakingLogistics

AnalysisBulk StorageKosher Certified

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1946: Peter Cremer started as a grain trading company

1970: Launched into Fats, Oils, Oleochemical business as an extension

of feedstuffs business.

1991: Acquired oleochemical manufacturing capability, PrignitzerChemical, Germany: Base manufacturing continued investment &integration into oleochemical business.

1998: Expansion into Southeast Asia with a marketing arrangementwith a major Southeast Asian producer.

1999: Continued investment in North America with the launch of PeterCremer North America: 2005 we have 110 employees in Cincinnati

History & Highlights

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Biodiesel: What is it?

A clean burning, oxygenated diesel fuel madefrom vegetable oils or animal fats that is capable ofreplacing part or all of your diesel needs!

Biodiesel: How is it made?

By reacting alcohol with natural fats, oils orgreases through a conventional chemical processknown as transesterification!

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Raw MaterialsNatural Fats & OilsSoybeanRapeseedCottonseed

Tallow / PoultryYellow Grease

+ AlcoholMethanolEthanol

+ CatalystSodium hydroxidePotassium hydroxideSodium Methoxide

End Products

Methyl Ester (a.k.a. biodiesel)Glycerine

=

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Property ASTM Method Limits Units

Flash Point D93 130.0 min. Degrees C

Water & Sediment D2709 0.050 max. % vol.

Kinematic Viscosity, 40 C D445 1.9 - 6.0 mm2/sec.

Sulfated Ash D874 0.020 max. % mass

Sulfur D5453 0.05 max. % massCopper Strip Corrosion D130 No. 3 max.

Cetane D613 47 min.

Cloud Point D2500 Report to Customer Degrees C

Carbon Residue100% sample

D4530** 0.050 max. % mass

Acid Number D664 0.80 max. mg KOH/gm

Free Glycerin D6584 0.020 max. % massTotal Glycerin D6584 0.240 max. % massPhosphorous Content D4951 0.001 max. % mass

Distillation temperature,Atmospheric equivalentTemperature, 90% recovered

D1160 360 max. Degrees C

NEXSOL BD-0100 BIODIESELASTM D 6751 (B100)

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Biodiesel: How is it used?

As pure (100%) = B100

As a blend with petroleum diesel (20%) = B20

In low levels (1% - 5%) = B1 B5

Any blend concentration requested = B1 B99

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Biodiesel: Who uses it?

Department of DefenseDepartment of EnergyNational Forest ServiceU.S. Postal ServiceNumerous municipalitiesNumerous UtilitiesState DOTsOver 200 fleets nationally!

City of Cincinnati, B30

http://www.usa-fepp.org/truck_bucket2.jpghttp://www.nsinitiative.com/graphics/winter_2002_newsletter/Metro%20Bus%20Service.jpghttp://www.army-technology.com/contractor_images/vista/tank.jpghttp://www.esc7.net/esc7/school_bus.gif

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Biodiesel: What are the benefits?

EnergyDomestically producedReduces dependence upon foreign oilHighest energy balance of any fuel

EconomyCreates manufacturing & agricultural jobsExpands agricultural markets

Environment

Reduces EPA targeted emissionsReduces sulfur emissionsReduces carcinogenic emissionsBiodegrades as fast as sugar & less toxic than salt

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Biodiesel: 5 Key AdvantagesAccording to the Department of Energy

Easy to UseDrop in Solution

Flexible

EPAct Credits

Reliable Engine Performance

Cleaner and Renewable

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Biodiesel Demand

0

5,000,000

10,000,000

15,000,000

20,000,00025,000,000

30,000,000

35,000,000

40,000,000

Gallons

1999 2000 2001 2002 2003 2004 2005

Est

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Cleaner and Renewable

Biodiesel: BenefitsAccording to the Department of Energy

B100 B20

Carbon Monoxide -48 -12

Sulfur Dioxide -100% -20%

Particulate Matter -47 -12

Unburned Hydrocarbons -67 -20

For every 1 unit of energy needed for production

3.2 units energy are gained.

Produced from a renewable agricultural product

Source EPA www.epa.gov/otaq/models/biodsl.htm

http://www.epa.gov/otaq/models/biodsl.htmhttp://www.epa.gov/otaq/models/biodsl.htm

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Biodiesel: Key Benefits

Significantly reduces tailpipe emissions

Reduced dependency on foreign oil

Significantly reduces carcinogenic pollutants

B20 significantly reduces visible emissions

At B2 increases lubricity by up to 60%

The economical option for EPAct

http://www.epa.gov/otaq/models/biodsl.htmhttp://www.epa.gov/otaq/models/biodsl.htmhttp://www.epa.gov/otaq/models/biodsl.htmhttp://www.epa.gov/otaq/models/biodsl.htmhttp://www.epa.gov/otaq/models/biodsl.htmhttp://www.epa.gov/otaq/models/biodsl.htmhttp://www.epa.gov/otaq/models/biodsl.htmhttp://www.epa.gov/otaq/models/biodsl.htm

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Legislative Drivers

Excise tax credit (Code Section 6426) Passed within (JOBS) Act, Jumpstart Our Business

Strength

One penny per percentage of biodiesel per gallon for

agri-biodiesel made from virgin vegetable oils andanimal fats, and penny per percentage of biodieselmade from other feedstocks.

The benefits are available to fuel blenders/distributors.

Watch for activity within the state you operate www.biodiesel.org (tax incentive sections for updates)

http://www.epa.gov/otaq/models/biodsl.htmhttp://www.epa.gov/otaq/models/biodsl.htmhttp://www.epa.gov/otaq/models/biodsl.htmhttp://www.epa.gov/otaq/models/biodsl.htmhttp://www.epa.gov/otaq/models/biodsl.htmhttp://www.epa.gov/otaq/models/biodsl.htmhttp://www.epa.gov/otaq/models/biodsl.htmhttp://www.epa.gov/otaq/models/biodsl.htmhttp://www.epa.gov/otaq/models/biodsl.htmhttp://www.epa.gov/otaq/models/biodsl.htmhttp://www.epa.gov/otaq/models/biodsl.htmhttp://www.epa.gov/otaq/models/biodsl.htmhttp://www.epa.gov/otaq/models/biodsl.htmhttp://www.epa.gov/otaq/models/biodsl.htmhttp://www.epa.gov/otaq/models/biodsl.htmhttp://www.epa.gov/otaq/models/biodsl.htmhttp://www.epa.gov/otaq/models/biodsl.htmhttp://www.epa.gov/otaq/models/biodsl.htmhttp://www.epa.gov/otaq/models/biodsl.htmhttp://www.biodiesel.org/http://www.biodiesel.org/

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Biodiesel: Costing

*Based on December, 2002 DOE Estimates.

Biodiesel blends cost per gallon at a 20% blend:

20% biodiesel @ $1.95/gal ($2.95 - $1.00 / galBlenders credit)

+ 80% #2 diesel @ $2.30/gal

= Decrease cost 20% blend = $0.07/gal

B20 can now be sold at parity or a discount to #2diesel.

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Introducing

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Biodiesel:

NEXSOL is a our BQ-9000 brand that is exclusivelyproduced and marketed by Peter Cremer NorthAmerica

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Biodiesel: Peter Cremer North America?

56 year old, billion dollar company

Global distribution and logistics network

Oleochemical (Methyl Ester) expertise

First BQ-9000 Certified Producer for the industry

Registered with the EPA as a biodiesel producer,marketer, distributor and blender

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What is BQ-9000 BQ-9000 is a set of quality management system

requirements for the Biodiesel Industry.

Incorporates elements from ISO 9001.

Applies to producers and marketers Specific process requirements to ensure biodieselmeets ASTM D 6751

Created & Peer reviewed by industry stakeholders.

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BQ 9000: Key BenefitsExtension of PCNAs existing ISO Quality System

Insure all Nexsol Biodiesel production meets ASTM D-6751 specifications

OEMs demanding quality now have it

Reduce barriers to try Biodiesel

Differentiate through Quality

Help Biodiesel gain mainstream acceptance

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Biodiesel: Currently40 MM gallon market ProjectedTo Grow to 1.0 MMM gallons (Diesel Market 55 MMM gals)

How will it grow:

$1.00 / gallon federal excise tax credit on soy based Biodiesel

$0.50 / gallon federal excise tax credit on RVO Biodiesel

CCC Program through 2006

RFS, Renewable fuel standard in proposed Energy Bill

Energy Bill was signed August 8th 2006, RFS & blenders creditthrough 2008.

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Storage Tank Challenges

Distribution chain storage tanks create a challenging maintenanceprocess

Improper placement of water draw off

Lack of attention to water evaluation, electronically or physically

sticking tank with water paste Sticking before and after each fuel delivery

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Maintaining Your Fuel Quality

Begin by specifying ASTM designed fuels, 6751 and 975

Reference cold weather performance and other special needs prior

to ordering Be proactive with general housekeeping practices

Maintain optimum storage conditions

Execute a quarterly fuel analysis program to ensure a good preventdefense

http://www.datanetengineering.com/Media/image2fuelsystem.jpg

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Cold Weather Performance

Wax, water and fuel contaminants in a vehicle fuel system is apotential source for operational snafus

A fuels CFPP, cloud point and pour point requires your attention as

well your storage tank Focus on the absolute bottom-line operability level Blends of Biodiesel (>20%) will impact cold weather operability in

direct relationship to the independent base analysis of your dieselfuel

http://www.cedesign.com/cefx/gallery/cold.jpg

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Cold Flow Improvers

Used seasonally to providecold weather protection

Alters wax crystal growth

Dosage level varies on wax

content and temperature Tests used to monitor cold flow

are pour, cloud, cold filterplugging point and lowtemperature filterability test

Must be added to fuel beforefuel reaches cloud pointtemperature to be effective

Dont over additized, more is

not better..

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Splash Blending

Biodiesel is slightly heavier than petroleumdiesel with a gravity value of 0.88 versus 0.85,ideally, the biodiesel should be introduced

second to the generic diesel fuel and should beagitated or recirculated in the storage tank

Storage and use of pure biodiesel should be attemperatures above 55F

Blends will not separate in the presence of waterhowever execute proactive tank management

Terminal options have been developed

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Biodiesel: Additional Questions

2005 Existing Capacity: 150 MM gallonsNew 2006 Capacity: 100 MM gallonsOhio: PCNA 30 MM gallons, others planning to build 2006Where B100 distribution: Western Reserve Farm Co-op Jefferson, OH Town & Country Co-op Ashland, OH Blanchard Valley Findlay, OH McWherter Petroleum Delaware, OH 15 other distributors in Ohio

Pricing Prediction: ~$1.00 / gallon over #2 - $1.00 blenders credit =parity to dieselLong term Biodiesel will be an extension of the diesel fuel supply = 2% 55

billion gallon market, 1.0 billion gallon market

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NBB Technical Library

National Biodiesel Board

www.biodiesel.org

1-800-841-5849Write Ask Ben

Educational Videos Available

Informational Resources

Technical Resources

On-line database

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Thank You

Questions??Call us at 877-901-7262 or visit us on the web:

www.petercremerna.com

http://www.petercremerna.com/http://www.petercremerna.com/