BIODIESEL BREWMEISTERS GROWING NUMBER OF PEOPLE MAKING FUEL OUT OF MIX OF CHEMICALS AND VEGETABLES.

Byline: JULIA M. SCOTT Staff Writer

SUN VALLEY -- Maurice Vanegas doesn't use banana peels and trash to make fuel like Michael J. Fox did in ``Back to the Future,'' but his recipe isn't far off.

The operator of a fleet of buses uses a mixture of soybean and vegetable oil to make biodiesel, which can be used to power diesel vehicles but does not contain petroleum.

``Every gallon I can make is one less gallon that we have to get from unfriendly countries,'' said Vanegas, 37, owner of Transit Systems Unlimited.

By manufacturing the transparent, lemon-color fluid himself, Vanegas has tapped into a blossoming industry.

Biodiesel is the nation's fastest-growing alternative fuel in the country, according to the National Biodiesel Board, a trade association based in Missouri.

In 2005, the industry produced 75 million gallons, three times more than in 2004, spokeswoman Jenna Higgins said. It's on track to make 150 million to 200 million gallons this year.

The fuel was created by Midwestern farmers looking to market their surplus soybean oil.

``When you take a whole soybean and crush it, you get two things -- soybean meal and soybean oil,'' Higgins said. ``There's a lot more demand for the meal than the oil.''

But the fuel didn't take off until 2004, when Congress passed a law offering a $1-a-gallon tax credit for biodiesel made from agricultural resources. The law has been extended until 2008, and the industry is pushing for permanent credits.

For many consumers, biodiesel is a little-known substance that triggers images of tree-hugging environmentalists. Perhaps that's because sales of diesel vehicles -- all of which can run on biodiesel -- account for just 3.5 percent of all auto purchases, according to J.D. Power and Associates.

Diesel cars are hard to come by in California because of the state's tough emissions standards.

A mixture of biodiesel and regular diesel lowers certain emissions, according to a study by the U.S. Environmental Protection Agency.

B20 -- composed of 20 percent biodiesel and 80 percent diesel -- cuts smog by 10 percent, carbon monoxide by 11 percent and hydrocarbons by 21 percent, according to an EPA report. Nitrogen oxides increase by 2 percent.

Roughly 850 to 1,000 gas stations nationwide sell biodiesel, including about a dozen in Southern California, according to the National Biodiesel Board. Motorists can locate a station by calling [phone].

Vanegas started manufacturing biodiesel because the nearest supplier was a two-hour drive from his Sun Valley businesses.

A few weeks ago, the entrepreneur started mixing chemicals in the back of an old bus fitted with plywood tables -- a venue he calls his ``laboratory.''

Vanegas dissolved chunks of caustic lye in water, then mixed in methanol and soybean oil. He let the liquids settle overnight in a bottle on his back porch, then checked the solution every morning. A thick chocolate sludge meant the chemicals were unbalanced.

Finally, he found a transparent, lemon-color layer of biodiesel floating on top of an amber fluid, a by-product called glycerin.

``I couldn't believe how easy it was,'' Vanegas said.

With a working recipe in hand, Vanegas set up large vats to make 400 gallons at a time. In the past 10 weeks, his fleet has consumed 12,000 gallons.

Making biodiesel at home is risky, experts warn.

``It can be very dangerous because to make it you ... use some chemicals, some liquids that are dangerous,'' said Tom Bryan, editor of Biodiesel magazine. ``It can cause fires. People have been burned.''

For Vanegas, who has a degree in structural engineering and wears protective gear in his bus lab, the benefits outweigh the risks. Making biodiesel costs him $3.10 a gallon and federal tax credits lower the tab to about $2.15 a gallon, he said.

Diesel was selling for an average of $2.83 a gallon in California, according to Energy Information Administration.

Lately, Vanegas has had to slow down his chemistry experiments. Each time he makes a gallon of biodiesel, he also produces a cup and a half of amber glycerin, which is used in cosmetics and candles.

But Vanegas can't find anybody who wants to buy the glycerin, and gallons of the stuff are piling up on his lot.

``It's kind of stopping us from producing more biodiesel,'' he said.

julia.scott(at)dailynews.com

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Photo:

(color) Local entrepreneur Maurice Vanegas looks at a sample of vegetable oil that is used in the manufacturing process for biodiesel. Vanegas is switching his 50-vehicle fleet to run on biodiesel, which he makes on site.

Hans Gutknecht/Staff Photographer

Box:

Biodiesel facts and myths

SOURCE: National Biodiesel Board

Gregg Miller/Staff Artist