When Dan and Tracy Kaderabek first ventured into biofuels, they started on a very small scale.

“It really was for our personal use,” says Tracy Kaderabek, co-owner of Manitowoc-based Bio-Blend Fuels. “It started when diesel was selling for about $4 a gallon, and we were looking for an alternative fuel for our tractor and boat, as well as all the other diesel-operated engines we owned. We were looking for a means to still have a good time with rising fuel prices.”

While most people associate the term “biofuels” with corn and ethanol, the Kaderabeks focused on a completely different commodity to fuel their business: beef tallow, bacon grease and vegetable oils.
“Ethanol is for use in a gas engine,” says Kaderabek. “The blended fuel that we make is used in diesel engines and no special modifications are required to use it.”

The only difference? It has a bit of an unusual aroma.

“It smells a little bit like a brat fry or like cooking hamburgers,” says Kaderabek. “It’s not unpleasant.”

Making the leap from small-scale, mom-and-pop production was complicated and completed without any government assistance, rebates or tax credits.

“When we decided to turn the corner from making the fuel for our use to making fuel as a business, it did require a lot of work,” she says. “Not only did we have to register as a business, but we had to register with the EPA as a fuel producer. There are about 100 different EPA regulations that we have to follow; we have the fuel tested, for example.”

According to the Bio-Blend Fuels web site, biodiesel is a vegetable oil-based fuel that runs in diesel engines — cars, buses, trucks, construction equipment, boats, generators and oil home heating units. It’s usually made from soy or canola oil, and can also be made from recycled fryer oil, such as that found in fast food restaurants. Bio-Blend Fuels purchases its feed stock on the commodity level, so they keep a careful watch on the commodity boards.

“At the quantities we need, we can’t just go to a local restaurant or two to get their oil,” says Kaderabek.

Bio-Blend Fuels began producing its blended B100 commercial fuel product about a month ago in a three-acre production facility in Manitowoc. At full capacity, the facility will produce 2,600,000 gallons of B100 annually, making it the largest production facility in Wisconsin.

In addition to finding a viable use for a waste product, Bio-Blends Fuel’s web site notes that there are a number of environmental benefits to using its fuel. Biodiesel reduces air toxins by up to 90 percent and does not contribute to sulfur dioxide emissions while having the highest energy balance of any fuel. For every unit of fossil energy needed to produce biodiesel, 3.2 units of energy are gained. Biodiesel also has significantly improved lubricity, which can decrease maintenance costs and reduce engine wear.

Currently Bio-Blend Fuels is focusing on the state of Wisconsin as its target market, though in a variety of different ways. The company’s fuel is currently for sale at its filling station in Manitowoc, but the company also offers a self-contained blending station for dispensing fuel at other locations, such as for a commercial fleet, marine or RV location.

“This allows for it to be dispensed at any retail outlet,” says Kaderabek. “We can deliver fuel in quantities of 6,000 gallons per load.”

As for the cost of blended fuel, Bio-Blends fuel is comparable with traditional diesel though the company tries to price its fuel at a price point a little below diesel.

“Right now, that’s not too difficult to do,” says Kaderabek.

Bio-Blends Fuel is already taking the next step, and is working on the R&D for fledging technologies, like creating fuel from algae oil.
“We want to know if it’s viable to scoop up a barge of algae from the Bay of Green Bay, for example, extract that algae oil and make it into fuel,” she says.