Biodiesel:A Healthy And Flexible Alternative to Petroleum Diesel

Biodiesel: A General DefinitionBiodiesel is not raw vegetable oil. It is produced by a chemical process that removes glycerin from the oil.

Biodiesel is a domestic, renewable fuel for diesel engines derived from natural oils such as soybean oil or recycled cooking oil that meets the specifications of ASTM D 6751.

Biodiesel is registered with the U.S. EPA as a legal fuel and has completed rigorous Tier I and Tier II Health Effects Testing.

Biodiesel can be used in any concentration with petroleum-based diesel fuel in existing diesel engines with little or no modification.

Biodiesel Production100 lbs. of soybean oil+10 lbs. methanol=100 lbs. soy biodiesel (B100)+10 lbs. of glycerin

Describing Biodiesel BlendsB100 = 100% Biodiesel

B20 = 80% Petroleum Diesel / 20% Biodiesel1500 gallons B100 + 6000 gallons petroleum = B20 Transport Load

B5 95% Petroleum Diesel / 5% Biodiesel

Biodiesel is a simple and effective alternative to Petroleum DieselReduces harmful emissions

Runs in diesel engines withno modifications.

Uses existing fueling infrastructure.

Meets Federal StandardsReduces petroleum dependence.

How Does Biodiesel Perform Compared to Petroleum Diesel Fuel?High Cetane (>50 vs. 42)

Comparable BTU content (120,000 BTU/gal vs. 126,000)

High lubricity (> 6000g vs 3100g SLBOCLE)

Readily mixes with diesel

Flashpoint exceeds 300 F

OEM Warranty

OEM Warranty (cont.)

What Is Driving the Switch to Biodiesel?

Why Biofuels Matter - The Distillate Gap

GAP

Source: Transportation Energy Data Book: Edition 19, DOE/ORNL-6958, September 1999, and EIA Annual Energy Outlook 2000, DOE/EIA-0383(2000), December 1999

Millions of Barrels per Day

Domestic Oil Production

Heavy Trucks

Automobiles

Light Trucks

Energy Security

Passenger Vehicles

The U.S. situation is a harbinger of future world trends. Domestic oil production is declining gradually. Petroleum use is steadily rising. Two-thirds of the petroleum consumed in the U.S. is for transportation. Until recently, vehicle fuel efficiencies have shown steady improvement since the 1970s, but increases in population and per capita miles driven have more than offset these gains. In fact, the number of U.S. light vehicles is projected to increase from 183 million today to 230 million in 2020. We now consume more oil just for transportation than we produce and, as the chart shows, the gap is expected to get bigger over the next 30 years.

Diesel Exhaust and HealthDiesel Exhaust contains fine matter called Particulate Matter (PM) and other air toxics that negatively impact health

Children in and around school buses can be exposed to particulate concentrations that are 5 to 15 times higher than background levels

Exposure to PM is associated with aggravated conditions of asthma and bronchitis in developing lungs.

EPA has identified diesel exhaust as a probable human carcinogen.

Public Reaction

What to do with what we have?

Diesel Power is THE prime mover for school buses.

Public Health Risk ReductionLovelace Research Institute 211(b) test resultsNO pronounced toxicity at any level (B100)NO mortality or clinical abnormalityNO neurotoxic or internal pathologic responseNO adverse effect on fertility and reproductive systemsCorroboration of Tier I findings concerning decreased mutagenicity activity in living organisms

0 2 4 6 8 10 Tier I Health Effects Data supplied by SWRI, 1997-8

Emissions Reductions B20 emissions reductions compared to petroleum diesel:Carbon monoxide -20%Unburned hydrocarbons-30%Particulate matter -22%Sulfates-20%NPAH-50%Mutagenicity-20%

US EPA 2006 ULSD RuleHow sulfur is removed from diesel fuel impacts its lubricity (hydrotreating)

Hydrotreating required to achieve the EPA mandated 15 ppm level for sulfur in on-road diesel fuel will cause a further reduction in the lubricity of the fuel (sulfur is known to poison the after-treatment devices required in 2007)

B100 is a sulfur-free fuel

Results of extensive testing (Stanadyne Automotive Corp.) have shown that low-levels of biodiesel (1-2%) provide the needed lubricity for use with ULSD

Fuel Injection Equipment manufacturers have an adopted limit of 460 micron wear scar diameter (WSD) lower WSD better

Enhanced Lubricity B2 has approx. 60% more lubricity than #2 Diesel

Chart3

571450

547450

485450

373450

374450

366450

346

374

380

374

Ultra-low Sulfur Diesel

Biodiesel Blend (%)

HFRR WSD (micron)

Ultra-low Sulfur Diesel

Sheet1

#2 Low Sulfur Diesel0450

04291450

23652450

53723450

4450

5450

#1 Low Sulfur Diesel

0692

2369

5376

Canadian #2 Winter Diesel

0571

2368

5356

Ultra-low Sulfur Diesel

0571

0.25547

0.50485

0.75373

1.00374

1.25366

1.50346

1.75374

2.00380

5.00374

JP-8

0726

2382

5373

Sheet2

Lubricity testing of various Biodiesel treat rates

in a variety of diesel fuels using an HFRR. (3/8-26/2001)

Sheet2

429450

365450

372450

450

450

450

#2 Low Sulfur Diesel

Biodiesel Blend (%)

HFRR WSD (micron

#2 Low Sulfur Diesel

Sheet3

692450

369450

376450

450

450

450

#1 Low Sulfur Diesel

Biodiesel Blend (%)

HFRR WSD (micron)

#1 Low Sulfur Diesel

571450

368450

356450

450

450

450

Canadian #2 Winter Diesel

Biodiesel Blend (%)

HFRR WSD (micron)

Canadian #2 Winter Diesel

571450

547450

485450

373450

374450

366450

346

374

380

374

Ultra-low Sulfur Diesel

Biodiesel Blend (%)

HFRR WSD (micron)

Ultra-low Sulfur Diesel

726450

382450

373450

450

450

450

JP-8

Biodiesel Blend (%)

HFRR WSD (micron)

JP-8

Federal Biodiesel Tax CreditThe new law took effect Jan. 1, 2005.

Creates a tax credit for biodiesel$1 per gallon tax credit for each gallon of pure biodiesel made from virgin oils derived from agricultural products and animal fats$.50 per gallon tax credit for each gallon of pure biodiesel made from other oils

All taxable gallons allow the credit to be claimed in both taxable and tax-exempt marketsTax-exempt fleet fuel programsOff-road diesel markets (dyed diesel)Heating oil, Boiler Fuel, Power Generation

Streamlines the use of biodiesel at the terminal rackThe tax structure and credit will encourage petroleum blenders to blend biodiesel as far upstream as possible, which under the RFS or Minnesotas 2% volume requirement will allow more biodiesel to be used in the marketplace

Who is using biodiesel?

WWW.WORLDENERGY.NET Southern U.S.410 Pierce StreetHouston, TX 77002

Tel 832-615-7390martinb@worldenergy.net