Eileen Beall eats a french-fry po-boy. New Orleans’ love of fried foods makes the city a gold mine for recycling fryer grease in biodiesel.

Alumni news is usually a succession of success stories. The following honors my silent colleagues who are suffering from the economic downturn, who are un- or underemployed, who attempted something big that flopped in a big way, or who simply decided they prefer car engines to corner offices. Kudos to the anthropology department for highlighting “the rest of us.”

In the fall of 2006, I co-founded the New Orleans Biofuel Initiative, LLC with a business partner. Our plan was to collect used fryer oil from local restaurants and make it into biodiesel to be used right here in New Orleans. Biodiesel, a fuel that can be made from restaurant grease, vegetable oils, and even chicken fat, is used around the world as an alternative to petroleum diesel. It is burned in mines in Montana to limit workers’ exposure to harmful diesel fumes and in several city bus fleets to reduce emissions and improve efficiency. During our first year, we raised $20,000 in funding; built a pilot biodiesel plant; conducted workshops; fueled a school bus; got lots of press, including a short feature on CNN; and made biodiesel for local distribution. With fuel prices at an all-time high, everyone was interested in alternative fuels and the future looked bright.

Then, in late 2007, the price of vegetable oil began to climb exponentially. Without a secure supply of affordable oil feedstock, biodiesel plants all over the world began to halt construction or shut down. Our own pilot plant had succeeded, but we needed to secure a large source of feedstock in order to scale up for profitability. I decided to dissolve the New Orleans Biofuel Initiative and formed Roxie Recycling, LLC to focus exclusively on the collection of used fryer oil. The price of recycled oil continued to grow considerably throughout 2008.

Every business operates on a set of assumptions that represent the risks involved. The guiding assumption of Roxie Recycling was that the price of vegetable oil would continue to hold steady, grow, or decrease by no more than 75% during the time it took my company to acquire enough market share to survive the inevitable downturn. In October 2008, the price of petroleum began to plummet; vegetable oil followed, falling below 75% in early 2009. I was collecting oil from about 30 restaurants at the time, which I then sold to small businesses and individuals for brewing their own biodiesel. Three major biodiesel plants in the region indefinitely put their construction on hold. I continued to sell oil over the next several months, but gradually even my “homebrew” clients stopped making biodiesel as it no longer made economic sense. With no one buying oil at a profitable price and restaurants still churning it out, I had too much oil and not enough cash.

I knew the tide would eventually turn, but I was in a crunch. Another oil collection company with family connections to several of New Orleans’ famous restaurants had started up just before the price crash and seemed to have the funds to ride it out. I made the decision to sell them my client list, liquidate my assets, and get out while I still had my shirt.

As the price of oil continues to ride its volatile rollercoaster this year, I alternate between kicking myself for leaving the industry and feeling relief that I got out when I did. As I write this on July 11, 2009, the price of oil has plummeted once again, and, for the moment, it looks as if I made the right choice. When it rises again — as it inevitably will — those in the biodiesel industry who survived the crash will come out of hibernation.

My own analysis of the future of biodiesel is cautiously optimistic. One of two scenarios would have to develop (and before fuel cell or electric technology replaces diesel vehicles) for biodiesel to ever become an energy giant. In one scenario, the price of petroleum could skyrocket long enough for biodiesel to become profitable on existing virgin feedstock oils like palm, corn, and soy. This scenario is less favorable because these crops compete with rainforest habitat and food supplies. The second scenario involves the development of alternate feedstock oils such as algae, which shows amazing promise on paper, but turns out to be difficult to implement.

As for myself, I have separated my livelihood from the tumultuous price of oil for the time being. I now work in ethanol sales. No, not fuel, but the notoriously recession-proof industry that thrives in New Orleans: I’m a bartender.