Transcript Yellowstone National Park Case Study on Evaluates

Biofuels Montana Update- Havre
Biofuels Summit: Biodiesel
Chester MT, 3/07
Camelina
Department of Environmental Quality
Energy & Pollution Prevention Bureau
October 21, 2010
Howard Haines
Montana Bioenergy Program
Manager 406 841 5252
[email protected]
Ringling MT 8/93
OVERVIEW
•
•
•
•
•
Update on Ethanol
How much does Biodiesel cost
Benefits, Challenges of Biodiesel
Biodiesel Use & examples
Local resources – what is next
Ethanol Use (all retail may or may not)
State FY
MGY blend
MGY ethanol
2004
17
2.4
2005
30
3.1
2006
30
3.0
2007
12.6
3.1
2008
40.669 non-EtOH gas 491.90
2009
170.679084 non-EtOH gas 315.175
2010
174.592936 all other non-EtOH gas
311.196848
RFS l
•2022: 110 MGY starch, 25 MGY cellulosic
Proposed Ethanol Plants (Mont)
Permitted
0
MGY
125
Feedstocks
Wheat, corn, barley
(expired Jul ’10, only 1 on MDT list)
Recently studied
1
?
Wheat, barley
Total planned 125 MGY
(383 MGY in July 2008)
Operating/planned cellulosic pilot plants
0
(Aug 2008 had 1 in Butte, @ 150k/year capacity)
Cost: Oilseed Value Chain
Biodiesel is the low value product
Livestock Feed
Oilseeds Crusher
Edible
Meal
OIL
(culinary)
Oils
Bio-Lubricants,
cosmetics,
pharmaceuticals
Composite
Materials
Pollution Control
Adhesives
Biodiesel
Fertilizers,
soil
amendments
Cost of Biodiesel
Current federal excise tax credit WAS
$1.00/gallon for biodiesel from virgin oil
•Biodiesel should be $1.80-$3.50/gallon (without
road tax). Actual price is set by the market.
•Biodiesel is less than diesel in some areas
(Portland Ore, June 2010).
Challenges for Biodiesel
Price & Availability
•Cost is feedstock sensitive (75-80%).
•Beginning 2008, production cost was
generally estimated to be about $0.55/gallon
(small plant) to $0.30/gallon (large plant).
•Production cost = 7.6 x [oil price, $/lb]
+$0.50 per gallon. example, canola oil @
$0.28/lb gives $2.63/gal before tax
Challenges for Biodiesel
Extraction/
process
efficiency
Seed, $/lb
70% oil
removal,
crush eff.
0.15
20%
removal,
crush eff.
0.15
% oil
30%
30%
Oil/$/lb
$0.714
$2.5
Oil-per gallon,
for processing
$5.43
$19.00
Cost for Biodiesel
“It Depends” compared to Petroleum Diesel
•Biodiesel cost is feedstock sensitive (75-80%).
•Production cost is generally estimated to be
about $0.95/gallon (small plant) to $0.55/gallon
(large plant) increase in methanol.
•Production cost = 7.6 lbs/gal x [oil price, $/lb]
+$0.55 per gallon. example, canola oil @
$5.43/gal gives $5.98/gal before tax
Cost for Biodiesel
•Oilseed Crushers/processors need to sell the
other 60-to-70 percent by weight as meal at a profit
(just like soy).
Challenges for Biodiesel
Extraction/ process efficiency
70% oil removal
Seed, $/lb
% oil
Oil/$/lb (34# oil/100#seed)
Oil-per gallon, to process
0.21
40%
$0.75
$5.70 (5.43 oil 5.99 BD)
60% meal @ $0.095/lb
$6.84/cwt
(240/tn-$60 truck~190/ton)
Price oil/gal-meal credit
$4.79 ($3.25/gal BD $3.50/gal
BD, 98% recov)
Biodiesel Use (variable, depends on cost)
State FY
MGY blend Gal B-100
2004
0.345
70,000
2005
0.347
71,000
2006
0.348
71,149
2007 (thru Nov)
nya
336,180**
2008
946,328
2009
802,759 (t 245.243 mgy)
2010
758,560 (ttl 207.931 mgy)
RFS – 1
•2022:
74 MGY
(1.8 million acres/year)
Proposed Biodiesel Plants
Permitted
1
(Mont)
MGY
0.1
Feedstocks
0.029
camelina, canola,
Juncea, safflower,
sunflower, algae, other
Canola, safflower,
camelina
Listed
5 by MDT
(39 in 2008)
Total planned
0
(for ref 238.089 MGY in 2008)
Operating (FY 2010)
4
1
0.015
0.100
Used fry oil
Canola, camelina, other
* represented by engineering firms, contacting DEQ
Fleet Example: Yellowstone NP
•“Mission” market
•Reduces carbon footprint
•Helps meet executive/policy mandates
•Reduced odor & visibility issues (visitor
complaints)
•Blends in any proportion
MDT Evaluation of Biodiesel
November 2004 (field evaluation Dec 2003-June 2004)
•Used “B20” with positive
experience
•Findings:
•No motor fuel tax implications
•Lubricity markedly improved w B20
•No new fuel related problems
•Cost and availability
Havre SD Evaluation of Biodiesel
• School year 2008-2009
•No engine issues
•Some additional time for blending
•Improved fuel economy
Regulatory Mission
•Underground mines (particulates)
•Off-road equipment in areas of poor air
quality (lubricity)
Cold Flow
•Not an issue if properly managed
•Specific compounds in diesel fuel and biodiesel
crystallize at low temperatures.
•Crystals agglomerate to form large masses.
•This can cause filter plugging and eventually the fuel will
become a solid mass.
•Soy biodiesel gels at 0°C. #2 diesel fuel gels at -10 to 12 °C. Biodiesel from saturated feedstocks can gel as
high as 12-14°C.
Filter, filter, filter,…
Oil
Filter
Filter
Biodiesel plant
Filter
Filter
Filter
Fleet Conversion:
materials compatibility
New Feedstocks for
Biodiesel
•Algae
•Starch & cellulosic
biomass, DOE-$3
million
Biodiesel is Food and Fuel:
18 million acres~5.5 m-acre/year planted
1.8~2 m-ac/yr in rotation
FOR MORE INFORMATION
• Oil & Production costs: Joel Schumacher, MSU
Bozeman Extension, (406) 994-6637,
[email protected]
• Biodiesel Tech Course. Jon Van Gerpen, 208 8857891, [email protected]
• Safflower, Sunflower, Flax: Jerry Bergman,
[email protected] 406 433 2208
• Canola, Camelina: Alice Pilgeram,
[email protected], 406 994 1986
• Taxes: Vanessa Olsen, MDT, [email protected], 406
444 7276
• Used Fry Oil: (Joe Blaine) 406 444 9879
FOR MORE INFORMATION
www.deq.mt.gov, select “bioenergy/biodiesel”
www.biodieseleducation.org
www.biodiesel.org
http://dli.mt.gov/WIRED/
Energy & Pollution Prevention 406 841-5200 [email protected]
Summary:
•Price & Availability
•Problems with biodiesel usually come from
“off-specification” fuel.
•Fuel quality is important to prevent the most
common operational issue with biodiesel: filter
plugging.
•Biodiesel does not void warranties.
•Biodiesel doesn’t require anything special –
just do those things you should have been
doing all along!
The End. Thanks for
Listening, Questions?
The End. Thanks for
Listening, Questions?