Used cooking oil stolen — by biodiesel pirates

As more customers seek alternatives to petroleum-based fuels, biodiesel production has grown from the grassroots to become a multimillion dollar industry. A combination of government subsidies, tax incentives and high oil prices have increased demand for ethanol and biodiesel, which can also be made from animal fat.

The National Biodiesel Board reports that U.S. production of biodiesel reached 500 million gallons last year, up from just 75 million gallons in 2005.

To manufacture the renewable fuel legally, biodiesel producers must register with the U.S. Environmental Protection Agency. Biodiesel consumers must also pay the government taxes to help with road upkeep.

So far, members of the National Biodiesel Board haven't reported feedstock thefts, but that doesn't mean they aren't happening on a small scale, said Amber Thurlo Pearson, a spokeswoman for the industry's national trade association.

"We are of course opposed to the alleged selfish, personal-use theft of feedstock that could otherwise go to make product to benefit the U.S.," Pearson said.

San Francisco started its program, SFGreaseCycle, to cut down on the millions it spends each year to dislodge fats, oils and grease clogging the sewers, Ving said. The San Francisco Public Utilities Commission eventually hopes to power its fleet of buses, fire trucks and emergency vehicles with biodiesel made from local restaurants' old oil, she said.

Currently, drivers collect about 15,000 gallons of fat and oil each month from 350 restaurants, including Enrico's, a mainstay in the Italian-themed North Beach neighborhood.

When the program started six months ago, the city picked up the old oil for free, and sold it to select licensed biofuel makers for 30 cents a gallon. Now that restaurants are supplying them with cleaner waste oil, they can get up to $1.25 a gallon, Ving said.

Those numbers — and the city's sudden move into the market — have convinced Levenson he needs to invest in padlocks to safeguard his precious grease and the barrels that hold it. Several of those have disappeared, too.

"When you're hauling grease for free, you want to make sure there's something there to pick up. Otherwise, with these prices, it's not worth your while," he said. "That said, if I wasn't doing this company, I would probably be doing the same thing as everybody else, just going to restaurants and filling up directly."

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