Biodiesel company comes fullCircle'

CARDIFF -- In the war for the next American fuel source, Peter Schuh is a foot soldier looking to become a general. Tired of his job designing Web sites, he searched for a way to fight in the battle for American energy efficiency.What he found were biofuels. So last year, the 33-year-old Cardiff resident tossed aside Web site creation to design biodiesel- and ethanol-making machines. His products could have everyone from the biggest companies to the smallest families running their vehicles on fuel they produce at home.
"It's people creating their own independence from oil companies (and) foreign oil dependence," he said. "You won't have the same (energy) struggles when you deal with farmers growing corn in Michigan" as Americans face with foreign oil.
That, Schuh said, was what drove him to create Circle Biodiesel and Ethanol Corp. in Cardiff. His company designs and produces machines for companies and people to make their own biodegradable fuels, like biodiesel and ethanol. Schuh got the idea for Circle Biodiesel from a Berkeley street fair two years ago. When his father and company senior vice president, Allen Schuh, told him about biofuels and the fair, Peter had plenty of doubts."I was trying to punch holes in the whole idea and I couldn't," Peter said. "I haven't been able to shake this since."Circle Biodiesel is on the front lines of an industry that has exploded from 500,000 gallons sold six years ago to 75 million in 2005, according to the National Biodiesel Board. Biodiesel is a form of diesel fuel that is produced from common vegetable oil. Ethanol is a gasoline substitute made from corn or other natural substances, such as grass or even orange peels.The company's machines heat mixtures composed mostly of vegetable oil and methanol in large quantities for hours until the mixture is part biodiesel and part glycerine. Then the machine extracts the glycerine and other nonbiodiesel elements and leaves just the fuel. His machines do the same with a sugar, water and yeast compound to extract ethanol.Biodiesel used alone is reported to cut carbon dioxide emissions from vehicles by almost 80 percent compared to using fossil fuels, such as crude oil, according to a 1998 study by the U.S. Department of Energy and the U.S. Department of Agriculture. The two gases have increased during the last 50 years due to burning fossil fuels and caused, what many believe to be, a global warming "greenhouse" effect.Sales of biofuels look only to increase. In 2004, California mandated that ethanol be used to create its cleaner, more environmentally friendly gasoline. Since then, other states have made similar regulations.Escondido's Plavan Petroleum has been selling biodiesel for four years and received certification last year to make biodiesel. Andy Christman, Plavan's biodiesel manager, said gas and diesel prices staying above $3 per gallon has only made it easier to sell potential customers on a fuel that could be as low as $2 per gallon."It's a different sales pitch when you say you can save them some money," Christman said.Operating out of his house, Schuh said his phone is ringing constantly from companies and people eager to start supplying their own fuel. He wants to find a facility to produce his equipment, which could range from a $2,000 personal ethanol still that makes 20 gallons per week to a biodiesel machine that makes 2 million gallons per year."Making ethanol at home is possible," said Rob Schlichting, spokesman for the California Energy Commission. "It's basically moonshine."That is the part of the industry Schuh wants to avoid. While it is legal to make ethanol, a form of alcohol, for your vehicle, it isn't legal to make it for your Saturday night party. Since ethanol production needs only sugar, water and yeast, it would be very easy for a well-meaning ethanol-maker to become a well-inebriated alcohol user.Schuh said he plans to focus on larger, corporate biofuels producers instead of personal use stills to avoid producing a social problem or creating a fire hazard."I don't want a guy who doesn't know what he is doing hurting himself," he said. "These are flammable materials."Eventually, Schuh wants Circle Biodiesel to supply fuel-makers across the globe. Although his products and product materials are made in the United States, Schuh wants to market as far as Australia.For him, creating self-sufficient fuel-makers is a battle he enjoys every day."I sleep well at night pushing this product," he said.Contact staff writer Patrick Wright at (760) 739-6675 or pwright@nctimes.com.
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