BiodieselBenefits, Issues, & Opportunities

Richard NelsonKansas State University &National Biodiesel Board

rnelson@ksu.edu

Presentation to the Special Libraries Association

Seattle, WA

June 17, 2008

Biodiesel Defined

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

Official IRS and EPA definition – goes to fuel quality.

General ConceptsBiodiesel is a domestic, renewable fuel for diesel engines derived from fats and oils such as soybeans and animal fats.

Biodiesel can be easily used in existing diesel engines with little or no modification.

Biodiesel is not raw vegetable oil!

0 50 100

B2

B5

B10

B20

B100

Biodiesel Petroleum diesel

Biodiesel blend, n. -- a blend of biodiesel fuel meeting ASTM D 6751 with petroleum-based diesel fuel designated BXX, where XX is the volume percent of biodiesel.

Biodiesel Feedstocks

Each biodiesel feedstock varies by its free fatty acid content and the different proportions of fatty acids found in each feedstock influence some biodiesel fuel properties

Degree of saturation

Cold flow properties

Cetane number

Methanol + Catalyst

Vegetable Oil / Animal

Fat/Waste Grease

Methanol Recovery

Crude BiodieselTransesterfication

Crude Glycerin

Glycerin Refining

Glycerin

Refining

Biodiesel

Biodiesel Attributes Integrates into existing petroleum

infrastructure; “pour and go” High Cetane (>50 vs 42)

High Lubricity– 2% blend biodiesel increases lubricity by up to

65% BTU Content (128,000 BTU/gal vs 139,000)

Cold Flow (3-10o F > for soy-based B20)

Flash Point (a minimum 260oF vs 150oF)

Virtually Zero Sulfur– Meets 2006 ULSD rule

Ultra-low Sulfur Diesel

0100200300400500600700800

0.0 1.0 2.0 3.0 4.0 5.0

Biodiesel Blend (%)

HF

RR

WS

D (

mic

ron

)

Biodiesel lowers emissions

Emission Type B100 B20 B2

Total Unburned Hydrocarbons -67% -20% -2.2%

Carbon Monoxide -48% -12% -1.3%

Particulate Matter -47% -12% -1.3%

Oxides of Nitrogen (NOX) +10% +/-2% +.2%

Biodiesel Fuel Markets

PREMIUM DIESEL•Lubricity Enhancement•Conductivity Improver•ULSD Sulfur Free Blend Stock

MARINE• Recreational• Tour Boats• Environmentally Sensitive Areas

EPACTREGULATED FLEETS• Federal • State• Selected Utilities

Home Heating

US Biodiesel Demand

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Changes to EPACT

Bioenergy Program

Biodiesel Tax Incentive

5 MGY

75 MGY

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450

One Driver: World Transport Vehicle Trends – Diesel

Direct Impact on Biofuels Production and Demand !

US Diesel Car Market

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Global share of diesel market has increase 40% in the last 5 years

Conditions for further expansion of diesel look right:• Global focus on CO2 & Energy

Security High energy prices (diesel

~33% more efficient versus gasoline)

Diesel technology has come of age (not dirty diesels anymore)

Where are the oilseed feedstocks going to come from to “fuel” this increase?

US Diesel LT Market

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Fascination with Biofuels – Govt. Mandates

US – Renewable Fuels Standard; 35 billion gallons (133 billion liters) by 2022 (20% of projected total consumption)

EU – 5.75% by 2010; 10% by 2020; 25% by 2030

China – 5% biodiesel

– China has said it aims to use 200,000 tons of biodiesel by 2010 and 2 million tons (2,057 billion liters) by 2020.

Why? Energy Security & “Peak Oil” & Climate Change

How will these intersect with market forces, where exactly will the feedstocks come from, and at what price?

New Renewable Fuel Standard Requirements• Energy Independence and Security Act of 2007• Not just 10% ethanol in conventional gasoline

2007 2022 Billion Gallon Billion Gallon Gasoline market 140 190 10% Ethanol 14 19 Ethanol Production 6 to 7 RFS Renewable Fuel 36 RFS Advanced Biofuel 21 RFS Cellulosic Biofuel 16 RFS Biomass-based Diesel 1 (in 2012) Biodiesel production 0.4

Biofuels Resources – Land Use Limited “Crop” Acreage

• Limited increase in land space and

product yields

• Sustainability Concerns

Improved yields, less inputs,

grow on marginal lands (?)

Increasing demand/production

will put pressure on food

and water supplies, prices,

and sustainability

American Grassland – excellent carbon sink

American ‘Dust Bowl’ – 1930s

3 Story Building

Food & Fuel & Feed Oil & Agriculture just like Diamonds or Coffee are

commodity markets• supply and demand effect pricing

• in a given market, the lowest cost producer will always win

Many factors affect the markets –

• Currency • Policy

• Trading • Technology

• Interest rates • Consumers

• Trends • Emerging markets

There will be continued growth in renewable fuels

Some Perspective – Petroleum & Agriculture

The oilseed and fat market is only a

small fraction of the oil industry

IF ALL DOMESTIC FEEDSTOCKS WERE

CONVERTED TO FUEL, ONLY 8% OF

DIESEL COULD BE REPLACED

IF ALL GLOBAL FEEDSTOCKS WERE

CONVERTED TO DIESEL, ONLY 10 % OF

DISTILLATE COULD BE SUBSTITUTED

– However, the entire world

would go hungry

National Biodiesel Feedstock Prices

$0.000

$0.100

$0.200

$0.300

$0.400

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$1.0001/

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Month-Year

$ pe

r po

und

RBD Soybean Oil

Canola

Inedible Tallow

Yellow Grease

Poultry Fat

Sunflower

Corn Oil (crude)

Price of #2 Diesel vs Biodiesel

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Month - Year

cents

per g

allon

#2 Diesel

Biodiesel

Price Difference

Biodiesel and Diesel Particulate Matter/Elemental Carbon Emissions

Ele

men

tal C

arb

on

, EC

, µ

g/m

3

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02002 2003 2004 2005 2006 2006

Standard D2 100% BiodieselMSHA compliance samples, EC

MSHA Target for UG Mines (123 EC)

Concerns of Fleet Managers about Biodiesel

Fuel Quality– Engine Warranties– Performance in Cold

Weather– Storage and Handling– Fuel Contamination– Filter Plugging– Degradation of Engine

Parts– Fuel Stability– Price– Others?

Free Glycerin ASTM D 6584 Max 0.020 % mass

Total Glycerin ASTM D 6584 Max 0.240 % mass

Flash Point (Methanol) ASTM D 93 Min 130 oC (Max 0.2 % vol)

Acid Number ASTM D 664 Max 0.50 mg KOH/g

Water & Sediment ASTM D 2709 Max 0.050 % vol

Visual Appearance ASTM D 4176 Max 2 Haze rating

Oxidative Stability EN 14112 Min 3.0 hr

Sulfur ASTM D 5453 Max 15 ppm

Cloud Point ASTM D 2500 Report oC

Kinematic Viscosity at 40 °C ASTM D 445 1.9 – 6.0 mm2/sec

Sulfated Ash ASTM D 874 Max 0.020 % mass

Copper Strip Corrosion ASTM D 130 Max No. 3

Cetane Number ASTM D 613 Min 47

Carbon Residue for 100% sample ASTM D 4530 Max 0.050 % mass

Distillation, 90% recovered ASTM D 1160 Max 360 °C

Phosphorous Content ASTM D 4951 Max 0.001 % mass

Relative density at 60 °F ASTM D 1298 Report

Na and K, combined EN 14538 Max 5.0 ppm

Ca and Mg, combined EN 14538 Max 5.0 ppm

ASTM D 6751-07b Specifications (Full)

Supply Chain Management

• Preserve the quality of the finished fuel• Hand-offs can cause the “biodiesel ball to be fumbled”

Accredited Producer Focus

A system for monitoring the production of biodiesel to the ASTM D 6751 specification.

• Sampling• Testing• Storage• Retain Samples• Shipping

Certified Marketer Focus

A system for the handling and distribution of biodiesel that maintains the fuel properties at the ASTM D 6751 specification.

• Sampling• Testing• Storage• Retain Samples• Blending• Shipping

Actual biodiesel COA from a distributor to the final end-user

If only I’d checked the COA for ASTM!

OEMs Positions on Biodiesel

Engine Warrantees:– Parts and

Workmanship– OEM’s Don’t Make

Fuel– OEM’s Don’t

Warrantee Fuel– As with diesel--

problems caused by the fuel are the responsibility of the fuel supplier

OEMs want to see additional experience in the field

Educational Resources

www.biodiesel.org