Introduction to Biodiesel:An Overview for Dealers & Drivers

Presented by: Akash Mandal

Student

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Topics for Today:

• Introduction to Biodiesel• Top 10 Reasons Smart Customers Are Using Biodiesel• ASTM Specifications & Biodiesel Fuel Quality• Legislative Updates Impacting Biodiesel Demand• OEM Acceptance & Positions of Support for Biodiesel• Biodiesel Resources & Future Training Opportunities• Q & A

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What is Biodiesel?

A renewable fuel commercially refined from a diverse array of fats and oils by-products & used in normal diesel engines

Biodiesel Defined

• Biodiesel, n. -- a fuel comprised of mono-alkyl esters of long chain fatty acids derived from vegetable oils or animal fats, meeting ASTM D 6751, designated B100.

• Biodiesel Blend, n. -- a blend of biodiesel fuel with petroleum-based diesel fuel designated BXX, where XX is the volume percent of biodiesel.

Biodiesel Raw Materials

Oil or Fat AlcoholSoybean MethanolCorn EthanolCanolaCottonseed CatalystSunflower Sodium hydroxideBeef tallow Potassium hydroxidePork lardUsed cooking oils

Future Feedstocks

Low Ricin Castor

Halophytes

Algae

Jatropha

Photo by: Joel RosePennycress Brown Grease

Biodiesel Reaction

100 Lbs.Vegetable

Oilor

Animal Fat

+

10 Lbs.Alcohol

100 Lbs.Biodiesel

+

10 Lbs.Glycerine

In the presence of a catalyst

Reacting: Yields:

Produces mono-alkyl esters – chemically similar to diesel fuel

U.S. Biodiesel Production by Calendar Year

2005 2006 2007 2008 2009 2010 2011

Volume in Gallons

112 Million

250Million

450Million

700 Million

545 Million

315 Millio

n

1.1 Billio

n

Economic DownturnRFS2 UncertaintyLapse of Biodiesel

Tax Credit

Economic DownturnRFS2 UncertaintyLapse of Biodiesel

Tax Credit

RFS-2 ImplementedBiodiesel Tax Credit Extended

Biodiesel: An “Advanced Biofuel” Available Now

205 EPA-Registered

plants nationwide with over 3.08 Billion

GPY Capacity

Biodiesel Infrastructure

• Biodiesel and biodiesel blends are now available nationwide from more than:– 575 Distributors– 850 Retailers– 450 Truck Stops– At least 1,875 Public Locations

• Visit the new NBB website at: www.biodiesel.org/using-biodiesel/finding-biodiesel/retail-locations to view biodiesel retailers near you, by state, or along a route

Biodiesel in Pipelines

• B5 and lower blends are being transported on existing US pipelines that do not carry jet fuel. Volumes relatively small.

• B5 and lower blends are being transported in Europe on lines that carry jet fuel– B100 level in jet fuel must be maintained <5 ppm

• Large project being executed to provide allowance of 100 ppm biodiesel in jet fuel

• This would enable biodiesel pipeline shipment on all U.S. pipelines— even those with jet fuel

Why Biodiesel?

Top 10 Reasons Why Smart Customers Are Using Biodiesel

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#1 – America’s Advanced Biofuel

• Biodiesel is America’s first domestically produced, commercially available Advanced Biofuel and meets EPA requirements for inclusion and use under the new Renewable Fuels Standard (RFS-2).

• RFS-2 mandates 36 billion gallons of renewable fuel be used by obligated parties (i.e. refiners) by 2022– 1 billion gallons biomass based diesel, – 4 billion gallons un-differentiated advanced biofuel

• 2011 Volume Requirement = 800 Million Gallons• 2012 = 1 Billion Gallons• 2013 = 1.28 Billion Gallons

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RFS-2 Advanced Biofuel

• EPA Definition 40 CFR 80.1401 - Advanced Biofuel means renewable fuel, other than ethanol derived from cornstarch, that has lifecycle greenhouse gas emissions that are at least 50 percent less than baseline lifecycle greenhouse gas emissions.

• Feedstock pathway MUST be EPA approved

• Biodiesel is the ONLY U.S. domestic fuel available in commercial quantities that has been approved by the U.S. EPA as an “Advanced Biofuel”

• Advanced Biofuel: Lifecycle GHG Emissions Must Be At Least 50% Less Than Diesel Fuel - EPA Approved Pathways:

• Vegetable Oils derived from Soybeans, Canola and Camelina;

• Waste Oils / Yellow Grease; • Animal fats; • DDG Corn Oil derived from the ethanol production process; • Algae, and • Secondary annual crops planted on existing cropland

RFS-2 Approved Biodiesel Pathways

#2 – Lower Emissions

• U.S. biodiesel reduces lifecycle carbon emissions by 57% – 86% compared to petrodiesel, qualifying it as an Advanced Biofuel under RFS-2 and making it the best carbon reduction tool of any liquid fuel commercially available.– Biodiesel from Waste Oils, Waste Grease and Animal Fats

= 86% reduction in GHG Emissions

– Biodiesel from Soy based oils = 57% reduction in GHG Emissions

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#3 – High Energy Balance

• Biodiesel has the highest energy balance (5.54 : 1) of any commercially available fuel, returning 5.54 units of renewable energy for every 1 unit of fossil energy needed to produce it.

• Compression Ignition Platform (i.e. diesel engine system) is 30-40% More Fuel Efficient Than Spark Ignition (i.e. gasoline, CNG, propane)

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#4 – Sustainability

• Biodiesel is produced from a variety of renewable resources, such as plant oils, animal fats, recycled grease, and even algae, making it one of the most sustainable fuels on the planet.

• With biodiesel, you don’t sacrifice food for fuel. Oils and fats for biodiesel are a minor by-product of producing food for humans and animals.– Soybeans are 80% protein, 20% oil– No one grows livestock for its fat content– No one cooks more fried food to get used oil for biodiesel

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#5 – Energy Security• Biodiesel production reduces our

dependence on foreign oil from unstable parts of the world, while expanding and diversifying our domestic refinery capacity.

• Biodiesel is the most economical option for turning oils and fats into usable fuel diesel applications:– Low capital cost for facilities– Low processing costs

• 80% of product cost is from oil/fat

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#6 – Better For Your Health

• Biodiesel is:– Biodegradable– Nontoxic:

• LD50 =17.4 g/Kg - less toxic than table salt• Skin irritation less than that of 4% soap and water

solution– Safer to handle: Flash point above 200 Degrees F,

Non-Reactive, Non-Corrosive

• Compared to petrodiesel, biodiesel reduces black smoke (particulates), Carbon Monoxide, and harmful unburned hydrocarbons that cause smog.

#7 – Economic Benefits

• Biodiesel helps our U.S. economy and improves our balance of trade.

• Using biodiesel creates added outlets for farm based products and high paid manufacturing jobs in rural parts of our country.

• The 1.1 billion gallons of biodiesel produced in the U.S. in 2011 also supported over 39,000 U.S. jobs.

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#8 – Ease of Use & Performance

• Using Biodiesel is easy!• B20 and lower blends are a drop-in replacement for diesel

fuel; no vehicle modifications needed• Can be used in any diesel engine / vehicle according to

OEM’s recommendations– www.biodiesel.org/using-biodiesel/oem-information/oem-

statement-summary-chart for OEM positions

• No trade-offs in terms of engine performance, fuel economy, horsepower, torque – essentially the same as diesel

• Dispensed through existing fueling stations22

# 9 – ASTM Specifications & Technical Credibility

• Biodiesel production is guided by stringent ASTM fuel specifications, developed through years of testing.

• The biodiesel industry works closely with OEMs and Petroleum companies to identify needed technical information

• Continued investment to answer technical questions that arise is something that sets the biodiesel industry apart from other fuels

• The ASTM D6751 specifications continue to improve and evolve over time– Especially as petrodiesel and engines change

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Biodiesel Standards:

ASTM D6751 is the approved standard for B100 for blending up to B20, in effect since 2001– Performance-based standard: Feedstock and Process Neutral

D975 – Covers petrodiesel and blends up to 5% biodiesel maximum for on/off road engines; B5 is now fungible with diesel fuel

D396 – Covers heating oil and blends up to 5% biodiesel; B5 is now fungible with petro-based heating oil

D7467 – Covers blends containing 6% to 20% biodiesel for on/off road engines – Designed so that if B100 meets D6751 and petro diesel meets

D975, then B6 to B20 blends will meet their specifications– Important quality control is at B100 level

Additional Fuel Quality Controls

• States’ Adoption of ASTM D6751 into law2011: 48 states (AK, NJ remain)

• Active Enforcement2011: – 36 states have authority to

regulate fuel quality– 20 states do proactive testing

#10 – BQ-9000 & Fuel Quality

• The biodiesel industry has an excellent fuel quality program called BQ-9000 (www.bq-9000.org).

• Helps ensure that only the highest quality biodiesel meeting ASTM specifications gets put into your fuel tanks.

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•Biodiesel Industry’s equivalent to an ISO 9000 program for biodiesel production & distribution companies as well as testing labs

•BQ-9000 works hand-in-hand with the ASTM specifications for biodiesel

•Quality Control System covers biodiesel manufacturing, sampling, testing, blending, storage, shipping, distribution

•ASTM Grade Fuel, BQ-9000 Companies

BQ-9000 Program

• NBB implemented BQ-9000 as a means to help instill confidence in biodiesel with users and equipment companies

• There are now three BQ-9000 designations:– Producer (make it to spec)– Marketer (buy spec, keep it in spec, blend it right)– Certified Laboratories (test it to ensure it is in

spec)• Many OEMs are now either requiring or strongly

encouraging BQ-9000

The latest numbers show that 81% of biodiesel produced is by BQ-9000 accredited companies.

• 44 Producers• 28 Marketer Terminals• 7 Laboratories

BQ Current Status

Legislative Updates Impacting

Biodiesel Demand & OEM Support

Volume Standards as Set Forth in EPA’s RFS-2

(

+Non -CellulosicNon -Cellulosic AdvancedAdvanced =

Total Total Renewable Renewable

FuelFuel

Advanced BiomassAdvanced BiomassBased DieselBased Diesel

Total AdvancedTotal Advanced+CellulosicCellulosic AdvancedAdvanced

Conventional Conventional Renewable Renewable

FuelsFuels

Total Total AdvancedAdvanced+ =

Legislative Incentives for Biodiesel

Other Federal Legislative Incentives for Biodiesel that are Important to OEMs:

• EPACT Credits – (Energy Policy Act)– Incentive for Fleets for B20+ Use; most economical option

for EPACT compliance• CAFÉ Credits – (Corporate Avg. Fuel Economy)

– Incentive for Automakers for B20+ approval

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State Mandated & Incentivized Markets

State Mandates• In Effect:

• Minnesota (B5), rising to B10 in May 2013; rising to B20 in May 2015 - 40 MGPY

• Washington (B2), 12 MGPY• Oregon (B5), 14 MGPY• Pennsylvania (B2), 26

MGPY• Misc. Fleets, 15 MGPY• Total: 107 MGPY• Next to Implement:• Massachusetts, Louisiana,

Connecticut, Vermont, New Mexico (July 2012)

• B2 requirements: 34 MGPY

Consumption Incentives• Illinois/Iowa/New York sales tax

exemption: 70-120 MGPY

Total mandated/incentivized volume: 180-230 MGPY in 2012

• 430-490 MGPY in 2015

Illinois Tax Incentive

• All U.S. fuels are taxed by the federal government• Most states also have an additional state tax

– Both are flat taxes, cents per gallon

• Illinois also has a state sales tax on fuel– 6.25% of sales price, not a flat tax

• Sales tax removed on entire gallon if at least 10% biodiesel is incorporated

• Incentive in place since 2003, just extended until 2018• With removal of sales tax, B11 is cheaper than diesel• IL Dept. of Revenue projects half of diesel market is

B11 35

OEM Supportfor Biodiesel

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OEM Warranty Statements

• All major OEMs selling diesel equipment in the U.S. support at least B5 and lower blends, provided they are made with biodiesel meeting ASTM D 6751 – Most OEMs are also recommending use of a BQ-9000 supplier

• 10 new OEM statements of B20 support so far in 2012, with more expected soon!

• Now 77% of U.S. manufacturers (30 brands) support B20 or higher blends in at least some of their equipment;

• More than 95% of the medium- and heavy-duty truck markets now support B20

• For a complete listing of OEM position statements on biodiesel, as well as the current U.S. Diesel Vehicles List, visit: www.biodiesel.org/using-biodiesel/oem-information

OEMs Supporting B20+

OEMs Supporting B20+

• New OEM B20 Support Statements in 2012:

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OEM Support SummaryOEMs Supporting B100 OEMs Supporting B20 OEMs Supporting B5

Case IH Arctic Cat Audi *Deutz AG Buhler BMWFairbanks Morse Caterpillar MazdaNew Holland Chrysler / Ram (in Ram for fleets) Mercedes Benz

Cummins MitsubishiDaimler Trucks - Including: PACCAR - Including: - Detroit Diesel (upon request)

- Kenworth

- Freightliner / FCC - Peterbilt - Thomas Built Buses UD Trucks * - Western Star Volkswagen *FerrisFord (2011+ models)General Motors / Chevy (2011+ models)HDT USA MotorcyclesHino Trucks (2011+ models)International / NavistarIsuzu Commercial Trucks (2011+ models)John DeereKubotaMackPerkinsTomcar

Red type = New in 2012 Toro * = Currently completing B20 researchVolvo TrucksYanmar

New in 2012: Volvo Trucks & Mack Support B20

Volvo & Mack B20 warranty statements:• “Use of biodiesel up to a maximum of 20% (B20) in and of itself,

will not affect the manufacturer's mechanical warranty as to engine and emissions system related components, provided the bio fuel used in the blend conforms to ASTM D6751, B1 to B5 blends conform to ASTM D975, and B6 to B20 blends conform to ASTM D7467.

• Engine and aftertreatment emissions system component warranties are valid providing the B20 blend meets the respective ASTM standard. Customers will need to utilize oil sampling to establish appropriate drain interval(s) for their specific application(s).”

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New in 2012: Daimler Trucks NA

• All DTNA truck models equipped with Cummins engines are approved for use with B20 biodiesel blends.

• DTNA truck models equipped with Detroit Diesel engines are currently approved for B5, however B20 is allowed upon request. For those customers wishing to use B20 in Detroit Diesel engines, please contactjason.martin@daimler.com.

Ford approves B20 in all its

2011 MY and beyond

Class 2 - 5 Super Duty &

Class 6,7 Medium Duty

Trucks

B20 Approved

2010 and prior models approved for use with B5 under warranty.

B20 Approved for Fleets

• Chrysler currently supports the use of B20 in the 6.7L Ram 2500/3500 pickup for government, military and commercial fleets

• Chrysler plans to extend full B20 support for all their diesel vehicles equipped with Cummins engines by January 2013

• New diesel Jeep Grand Cherokee coming in 2013 (biodiesel blend TBA)

All 2011 MY and beyond GM Heavy Duty Products are approved for

B20: Chevrolet Silverado

GMC Sierra

Chevrolet Express

GMC Savana

B20 Approved

New Chevy Cruze diesel passenger car coming in 2013

B20 Approved

• Biodiesel blend approval TBA

• We are working with GM to confirm B20 support for this vehicle upon launch

Current B5 Positions

Approve B5:– Audi ** – BMW– Mazda– Mercedes– Mitsubishi **– PACCAR:

– Peterbilt/Kenworth – UD Trucks **– Volkswagen **

** Actively researching B20

• ASTM specifications (ASTM D7467) are in place and being enforced for B6-B20 blends, providing OEMs and consumers with greater production controls and quality assurance

• BQ-9000 biodiesel quality program is robust and growing, currently accounting for more than 81% of biodiesel in marketplace with goal of 100%

• The Renewable Fuels Standard (RFS-2) calls for significantly increased volumes of biodiesel to be used in U.S.

• State Mandates and Incentives are driving consumers toward use of higher biodiesel blends

• CAFÉ Credits – Incentive for Automakers for B20+ approval• Consumers and Fleets want the option to use B20 blends to reduce

their environmental impacts with optimal vehicle performance• Differentiates your organization with a “green” competitive

advantage

Why Support B20?

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Biodiesel Performance,Use & Maintenance

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Using Biodiesel:

Biodiesel Use and Handling Guidelines:• Ensure the biodiesel meets the ASTM specification for pure biodiesel

(ASTM D 6751) before blending with petro diesel. • Purchase biodiesel and biodiesel blends from companies that have

been registered under the BQ-9000 fuel quality program when possible.

• Ensure your biodiesel blend supplier provides a homogenous product.

• Avoid long term storage of B20 and higher blends to prevent degradation. Biodiesel should be used within six months.

• Prior to transitioning to B20, it is recommended that tanks be cleaned and free from sediment and water. Check for water and drain regularly if needed. Monitor for microbial growth and treat with biocides as recommended by the biocide manufacturer.

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Using Biodiesel:

• Biodiesel and biodiesel blends have excellent cleaning properties. Fuel filters on the vehicles and in the delivery system may need to be changed more frequently upon initial B20 use; after that, system runs cleaner with no issues.

• Be aware of the biodiesel blend’s cold weather properties and take appropriate precautions. When operating in winter climates, use winter blended diesel fuel. Make sure the biodiesel blend cloud point is adequate for the geographical region and time of year the fuel will be used.– New biodiesel grade #1-B ASTM specifications now available for winter-blend

biodiesel fuel

• Perform regularly scheduled maintenance as dictated by the engine operation and maintenance manual.

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Cold weather can cloud and even gel any diesel fuel, including biodiesel.

Users of a B20 with #2 diesel will usually experience an increase of the cold flow properties (cold filter plugging point, cloud point, pour point) approximately 2 to 10° Fahrenheit.

Similar precautions employed for petroleum diesel are needed for fueling with 20 percent blends.

• blending with #1 diesel / #1 biodiesel• using fuel heaters and parking indoors• and using a cold-flow improvement additive

Cold Weather Performance

B20 has been used successfully in climates below -20ºF

B20 vs. Diesel: In the shop

• With in-spec B20 and lower, the issues you can expect to see in your shop are the same as you will see with petrodiesel

• Except:– Expect to see fewer lubricity related issues– Expect to see fewer problems with after-treatment– Filter related issues may be related to cleaning effect upon

first use, or are likely normal diesel issues or out of spec or imposter biodiesel

– Less black smoke from exhaust!

ASE Certified Training

• To see our curriculum of ASE-Certified continuing education courses on Biodiesel for Diesel Service Technicians, visit www.BiodieselAutomotive.org

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Biodiesel Training Webinar Opportunities

August:• Thurs. 8/9: Introduction to Biodiesel – An Overview for Dealers & Users• Mon. 8/13: Key Biodiesel Industry Updates for Medium/Heavy Duty Truck

Dealers & Drivers • Wed. 8/29: Biodiesel Selling Points & Service Advisories for Dealers

September: • Wed. 9/12: Key Biodiesel Industry Updates for Light Duty Vehicle Dealers &

Drivers• Tues. 9/25: Voice of the Customer – Fleet Experience with Biodiesel

Register Now at www.biodiesel.org/register or contact Jennifer_Weaver@me.com to schedule a customized training session

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Biodiesel Resources

www.biodiesel.org•Biodiesel Training Toolkit

•News Releases & Information Resources

•Technical Library, Spec Sheets & Videos

•OEM Warranty Positions on Biodiesel

• U.S. Diesel Vehicle List

www.nbb.org •Official site of National Biodiesel Board

www.BQ-9000.org •Listing of BQ-9000 Certified Companies

www.allthingsbiodiesel.com•Biodiesel merchandise, literature, pump labels and more!

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2012 Biodiesel Training Toolkit – Online version

Training & Promo Materials

Biodiesel Training Toolkit flash drives are available upon request for your dealership staff and/or interested customers.

Biodiesel Air Fresheners have been a big hit among OEM Dealers and customers. They feature a QR code that can be scanned to tell you which biodiesel blend your OEM supports.

To order, contact Jennifer_Weaver@me.com

Thank You!Questions…?

Email : delhicash@gmail.com

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