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Still interested? What will setting up a new bio-diesel plant entail?Questions and Answers


The Bio-power network
Our vision for a Trade Association of local producers of renewable organic fuels
A vision that is now an operational reality!

The emerging bio-fuel and bio-energy industry offers a great opportunity to many people who are themselves committed to the care of the environment and the security of the future of the planet in terms of enabling future generations to survive and live healthy lives. It is unusual for there to be an opening in which people can engage in a profitable and worthwhile business, that can meet the local needs for bio-fuels from materials created by and collected from the local community. This is an excellent way to bring personal economic benefit, and also to bring both environmental and economic benefit to the local community, by the efficient capture of local waste which is then processed to become a highly sought after commodity. It is important that this new sector of business is not totally commandeered and controlled by large multi-national businesses. This is an area where local knowledge and the development of local contacts is likely to achieve the most effective and efficient capture of feedstock. It is also likely that as the price of mineral oils increase, so it will become economically viable for local farmers to grow energy crops specifically for use as bio-fuels.

This provides a great opportunity for many small new businesses making our bio-power fuels from waste vegetable oil collected in their local area. Many restaurants, pubs and chip shops presently have great difficulty disposing properly of their waste fat. Waste management companies used to collect it and then sell it as an additive to animal food, but this practice is now banned by EEC legislation. In many areas there is now no organised means for the collection and disposal of this material. Inevitably it then becomes a waste disposal problem, causing many operators to dispose of their used fat by pouring done the sewers or by freezing it and putting it out with the dustbin rubbish. This results in the blockage of drains and the slow bio-degradation of the material in landfill that creates methane gas - a far worse greenhouse gas than carbon dioxide.

It is our view that there is a need to change the way that the production of fuel is controlled by a very small number of large and powerful companies like Shell, BP, and Texaco. It is their strangle hold on the industry that has prevented the development of non-petrochemical fuels. Our aim is to facilitate the development of a network of many small independent local companies, each collecting the fat resources from their local area and converting them into fuels to meet local need.

To be successful in our aim to promote the greater use of non-polluting and renewable organic fuels it is very important that all producers work together in a spirit of non-competitive co-operation. We need to be sure that we all sell a comparable and standardised product, and also that we all maintain consistent trading standards. It is also a great benefit if we can help each other by sharing resources, advertising, technical matters, designs, experiences, purchasing of materials and equipment.

It is for this reason that the vision of a bio-power network was formed. Each member company would be licensed to trade as 'bio-power (local name)' for example Bio-power (Tunbridge Wells) and Bio-power (North Manchester). Each company would be affiliated to a network which itself is a 'not-for-profit' company jointly owned by it's members. This network hub is called 'Bio-power UK ltd'. Each affiliated company nominates one person to represent them as a member of Bio-power UK ltd, and that person is able to attend and partake in all formal meetings open to the membership of Bio-power UK ltd, at which decisions are made. The executive directors of bio-power (UK) are elected by the membership at the AGM, with the expectation that they will be responsible for the implementation of the decisions of the members. The actual registered company name of each Local Agent can be any existing company or it can be a new company, often with the word 'fat' in the name like 'fatfellas Ltd.' or ''fat factory Ltd.' The Local Agents may have any name they like as a limited company including a name they may already trade as. Local agents must not register a company name with the words 'bio-power' in the name, or any description that would appear to be similar to 'bio-power'.

Membership is open to commercial producers of organically derived renewable fuels, who share the same stated aims, and maintain the standard of product and service required. The association is self regulating, and self serving. Trading members are able to apply for a license to use the name 'Bio-power' and their address and contact details are then recorded on the published register so members of the public can locate them and be assured of a consistent quality of service.

The primary aim of Bio-power is to provide real alternatives to the use of fossil fuels.  In addition to the Charter, the aims of the Bio-power association are as follows....

Bio-power UK Ltd will, through its elected Management Committee and under the direction of its members, decide upon matters such as

Each local company can decide for itself how many people will be employed and the scale of operation, but membership fees would relate to the quantity of fuel manufactured, metered and taxed.

There may be advantages if each operator maintained a turnover just below that at which VAT would become chargeable on the product. If any operator broke into the VAT threshold then the directors may set up other more locally based companies. The advantage of this would be to maintain a competitive price to non-VAT registered customers - in other words to the very public whom we wish to encourage in to the use renewable fuels.

There are probably other ways of achieving a similar form of network, for example a normal business franchise. But this also has the disadvantage that all local franchisees would have to be VAT registered, and also a substantial fee would be charged to each local company to maintain the license. We see a franchise and a top down structure, drawing funds to a central business. A voluntary affiliation to a profit sharing network seems the simplest and easiest solution. Membership of the network would incur no greater liability than membership of any other trade or public interest association.

If you are interested in joining us as a participating member of this network then please contact us directly. You do not have to be already making bio-fuels or experienced in the chemistry used. This is a field in which some basic business knowledge is helpful, and the ability to get on with people who share an interest in cars, engines, alternative fuels or the environment. We run a programme of Introductory Seminars for those who are considering working with us as part of the bio-power community. Details of the programme are sent out to the bio-power mailing list every month. Send us an e-mail to be included on the bio-power mailing list, giving your name, full postal address, telephone number and a brief description of your background, experience and reason for interest in making bio-fuels. Details of the programme of events is published on the web at www.bio-power.co.uk/seminars. It is necessary to book for places on our program of events, and the booking form can be downloaded from the seminars web page.

John Nicholson.  November 2001, October 2002, July 2007

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