Transcript Small-Scale Biodiesel Production Energy Overview • Where does our energy come from? – 85% from fossil fuels • coal, crude oil products, natural gas – 7%

Small-Scale
Biodiesel
Production
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Energy Overview
• Where does our energy come from?
– 85% from fossil fuels
• coal, crude oil products, natural gas
– 7% renewable fuels
• hydro power, wind, solar, biomass, biofuels
– 8% nuclear
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Energy Use
• What do we use energy for?
– Heating & Cooling
– Lights, appliances, cooking, household uses
– Manufacturing
– Transportation
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Transportation Fuels
• Two fuels dominate the transportation
fuel market:
– Diesel
• Biodiesel can be used to supplement or replace
diesel fuel
– Gasoline
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Diesel Fuel Facts
• Diesel Fuel Facts
– Widely available
– Diesel engines are common
– Refining and transportation infrastructure is well
developed
– Consumers know about diesel
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Diesel Fuel
• Recent Developments
– New diesel fuel standards (low sulfur diesel)
• New diesel burns cleaner (good)
• Lubricity is reduced (bad)
– Retail diesel prices have increased
• Why?
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Demand has been growing
Refining capacity is strained
Transportation capacity is strained
Higher fuel quality standards
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March-08
March-07
March-06
March-05
March-04
March-03
March-02
March-01
March-00
March-99
March-98
March-97
March-96
March-95
March-94
$ per Gallon
Diesel Fuel
U.S. Retail Diesel Prices
$6.00
$5.00
$4.00
$3.00
$2.00
$1.00
$0.00
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Mar-08
Mar-07
Mar-06
Mar-05
Mar-04
Mar-03
Mar-02
Mar-01
Mar-00
Mar-99
Mar-98
Mar-97
Mar-96
Mar-95
Mar-94
Millions of Gallons per Month
Diesel Fuel
Distillate Fuel Consumption
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
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Biodiesel Facts
• What is biodiesel?
– Fuel created from vegetable oil or animal fat
• Small-scale producers generally use vegetable oil
– Can be used in traditional diesel engines
– Biodiesel can be blended with diesel fuel
– Biodiesel be produced in small or large quantities
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Biodiesel Facts
• Lower energy content than Diesel
– Biodiesel:
118,296 BTUs per gallon
– No. 2 Diesel: 129,500 BTUs per gallon
• Source: National Biodiesel Board
• Energy Lifecycle
– 3.2 units of energy are produced for each energy unit
used
• Source: NREL
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Biodiesel Facts
• What type of oil is most biodiesel made from?
– Soybean oil in the USA
– Rapeseed oil in Europe
• Is biodiesel the same as vegetable oil?
– No!
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Biodiesel
• Will biodiesel damage my engine?
– No…if the biodiesel meets the standards of ASTM
6751
– One exception:
• Biodiesel can damage certain natural rubber engine
components over time
– Older engines may require the replacement of fuel lines and
some gaskets
– These components are unlikely to fail immediately but may
fail with increased biodiesel use
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Million Gallons
Biodiesel
US Biodiesel Production
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Biodiesel Price
Biodiesel Price
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Rocky Mountain B100 Price
Rocky Mountain B20 Price
Rocky Mountain Diesel Price
• Data from Clean Cities Alternative Fuel Price Report (DOE)
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SVO and WVO
• Straight Vegetable Oil is not biodiesel
– This includes Waste Vegetable Oil
• Diesel engines can be modified to run on
vegetable oil
– Some users who have modified engines have
reported long term problems using SVO
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SVO and WVO
• Main Problems:
– These fuels are too thick.
• The must be thinned to function in a diesel engine
– How? By heating or a by chemical reaction (the chemical
reaction is the biodiesel production)
• Problem is worse the lower the temperature
• Modified engines still typically use SVO in conjunction
with diesel for start up and shut down
– No government incentives for SVO and WVO
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Oilseeds and
Oilseed Processing
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Types of Oilseeds
• Major U.S. Oilseed Crops
– Soybean
– Cottonseed
– Sunflower
– Canola/Rapeseed
– Flaxseed
– Safflower
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Types of Oilseeds
• Other oil producing crops
– Corn
– Peanut
– Camelina
– Palm
– Olive
– Coconut
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Oilseed Crops:
2007 Yields
Crop
Soybeans
Canola
Flaxseed
Safflower
Sunflower
Mustard
Ave. Yield
41.7 bu/acre
1,250 lbs/acre
16.9 bu/acre
1,215 lbs/acre
1,436 lbs/acre
603 lbs/acre
Ave. Oil Content
≈ 22%
≈ 40%
≈ 38%
≈ 35%
≈ 42%
≈ 36%
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Oilseed
Processing
• The Oilseed Processing Industry:
– Separates the “whole seed” into 2 or more
products
– The difference between the cost of the seed and
the value of the products created is the “crushing
margin”
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Processing Technology
• Two General Methods
– Solvent Extraction
• Standard technology for facilities with daily capacities
of greater than 300 tons per day
• Commonly used in conjunction with some form of
mechanical extraction
– Mechanical Extraction
• Typically used for facilities with daily capacities of less
than 150 tons per day
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Solvent Extraction
• Nearly all commercial soybean processors use
solvent extraction technology
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Solvent Extraction
• The basic process:
– Seed Preparation
• Removal of foreign objects
• Removal of seed hulls or shells for some seeds
– Pre-Pressing
• Seed is crushed through a mechanical press
– Pre-Pressing removes some oil from high oil content seeds
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Solvent Extraction
• The basic process:
– Solvent Application
• Solvent is applied to the pre-pressed material
• The solvent bonds to the oil in the material
– Solvent & oil mixture is removed from the meal
– The oil is then separated from the solvent which is
reused in the process
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Solvent Extraction
• Benefits:
– Solvent Extraction is capable of recovering of 99%
of the oil contained in the seed
– Lowest cost per ton for commercial processing
• Challenges:
– Large capital investment
– Not feasible for small-scale processing
– Environmental concerns
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Mechanical Extraction
• The basic process:
– Seed Preparation
• Removal of foreign objects
• Removal of seed hulls or shells for some seeds
– Extraction
• Seed is processed by a mechanical press
– Removing 65-80% of oil contained in the seed
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Mechanical Extraction
• Required Equipment
– Mechanical Press
– Power source for the press
– Seed Bins
– Meal Bins
– Oil Tanks
– Pumps, Filters, Plumbing
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Example
• On-Farm Example:
– If you plant 100 acres of canola,
– with an average yield of 1,100 lbs per acre,
– your production is approximately 55 tons
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Example
• The 55 tons of seed will yield approximately:
– 4,200 gallons of oil
– 36 tons of meal
* Assuming: The seed has 38% oil content and press recovers 75% of
the oil content in the seed.
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Example
• On-Farm Example:
– If you plant 100 acres of safflower,
– with an average yield of 800 lbs per acre,
– your production is approximately 40 tons
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Example
• The 40 tons of seed will yield approximately:
– 2,800 gallons of oil
– 27 tons of meal
* Assuming: The seed has 35% oil content and press recovers 75% of
the oil content in the seed.
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Biodiesel Production
Technology
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Biodiesel Process
• Basic Overview
– Inputs: Oil, Alcohol & Catalyst
– Outputs: Biodiesel & Crude Glycerin
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Biodiesel Process
• Sample Recipe
– Oil
– Alcohol
– Catalyst
100 Parts
10 to 20 Parts
0.5 to 3 Parts
* Manufacturers often provide a “basic” recipe to use as
a starting point.
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Biodiesel Process
• Outputs
– Biodiesel
100 Parts
– Crude Glycerin
10-20 Parts
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Biodiesel Process
• Pre-Reaction Equipment
– Oil Storage Tank
– Alcohol Storage Tank
– Catalyst Storage
– Biodiesel “Reactor”
– Pumps, Filters, Plumbing
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Biodiesel Process
• Post-Reaction Equipment
– Settling tanks and/or Separating Equipment
– Washing Equipment
– Drying Equipment
– Biodiesel Storage Tank
– Glycerin Storage Tank
– Pumps, Filters, Plumbing
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Biodiesel Process
• Biodiesel Equipment
– Micro Scale Processors
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100 gallons or less per batch
Numerous Manufacturers
Some sold as “kits”
Others sold as “ready to use”
Accessories included in the package varies
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Biodiesel Process
• Micro Scale Biodiesel Processor
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Biodiesel Process
• Biodiesel Equipment
– Small-Scale Processors
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75 to 300 gallons per batch
Fewer Manufacturers
Usually not sold as “kits”
Typically higher quality materials
Accessories included in the package varies
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Biodiesel Process
• Small-Scale Biodiesel Processor
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Biodiesel Process
• Processing 4,200 Gallons
– 40 gallon processor:
– 60 gallon processor:
– 100 gallon processor:
105 batches
70 batches
42 batches
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Final Products
• Biodiesel
– On-Farm Use
• Blended Fuels
• Fuel Quality Important
• Vehicle Modifications
– May need to replace natural rubber fuel lines and gaskets
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Final Products
• Crude Glycerin
– No Ready Market for Crude Glycerin
– Quantity produced is 10% to 20% of biodiesel
production
– Contains Methanol & Catalyst
– Possible Uses:
• Compost
• Fuel Oil
• Refine to Pharmaceutical Grade Glycerin
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Government
Involvement:
Regulations, Incentives
& Policies
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Federal Policy
• What agency is responsible for biofuel policy?
– A) Energy
– B) Agriculture
– C) Commerce
– D) Environmental Protection
– E) Transportation
– Answer: All of the above
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Biofuels Policy
• Current federal policy for biofuels:
– Most of the biofuels policy is:
• Farm Energy
• Energy Policy
– Other agency are involved:
•
•
•
•
U.S. Dept. of Transportation
Environmental Protection Agency
Internal Revenue Service
Department of Labor
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Key Federal Policies
• Biodiesel Incentives
– Biodiesel Blenders Tax Credit
• $1.00 per gallon for virgin oils
• $0.50 per gallon for recycled oils
– Small Producer Tax Credit
• $0.10 per gallon of Ethanol or Biodiesel
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State Programs
& Regulations
• Each state has different regulations and
incentives for biodiesel.
– Check with your state officials for details
• You may need to check with Departments of
Agriculture, Commerce, Environmental Protection,
Transportation, and/or other departments
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Other Regulations
• Fire Safety Issues
– Methanol storage is subject to regulations of local
fire marshals. Contact your local fire marshal
• Building Code Issues
– Production and storage of biodiesel, methanol and
glycerin may violate building codes.
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Questions
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Economics of
Biodiesel Production
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Oilseed Processing
• Oilseed Processing Assumptions
– Seed Cost
– Oil Content
– Recovery Rate
$0.151 per pound
40%
72%
• Consistent with an average mechanical crush
– Labor Cost
– Meal Revenue
$10/hour
$120 per ton
• Net of transportation costs
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Oilseed Processing
• Assume 10 ton per day press
– Installed Cost of $11,485
– Financed for 10 years at 6%
Labor Cost
$3,289
Other Costs
$3,704
Total Cost
$6,993
Processing Cost per Ton
47%
53%
$51
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Oilseed Processing
Seed
Crushing
Meal
Oil
274,110 lbs. @ $0.151 per lbs.
137 tons @ $51 per ton
92.7 tons @ $120 per ton
10,000 gallons
Seed Cost
$41,391
Crushing Cost
$ 6,993
Total Cost
$48,384
Meal Revenue
$11,124
Net Cost
$37,260
Net Cost Per Gallon of Vegetable Oil $3.73
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Biodiesel Production
• Biodiesel Assumptions
– Based on 10,000 gallon per year
– With a 80-gallon batch processor
– Assumes 0% methanol recovery
– Labor at $10 per hour
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Biodiesel Production
Cost/Unit
$/gallon
Oil
$3.73/gallon
$3.73
Methanol
$2.32/gallon
$0.44
Catalyst
$1.85/lbs.
$0.07
Labor
$10/hour
$0.37
Capital Costs
10 years @ 6%$0.14
Fuel Quality Testing
$0.10
1 ASTM/Year & $5 test/batch
All Other Operating Costs
$0.01
Total
$4.86
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Biodiesel Production
Producer
Production Cost
Producer Profit
Small Producer Tax Credit
State Production Incentive
Transportation
Price to Distributor
$ 4.86
$ 0.00
$-0.10
$-0.10
$ 0.00
$ 4.66
Distributor/Blender
Purchase Price
Blender’s Credit
Federal Fuel Tax
State Fuel Tax
Distributor Profit
Price to Retailer
$ 4.66
$-1.00
$ 0.25
$ 0.28
$ 0.00
$ 4.19
Retailer (on farm use avoids retail sales)
Purchase Price
Retailer Mark-up
Retail Price (B100)
$ 4.19
$ 0.00
$ 4.19
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Sensitivity Analysis
Price Change
Biodiesel Change
Seed Cost
$0.01/lbs.
$0.27/gallon
Meal Revenue
$10/ton
$0.09/gallon
Crushing Cost**
$10/ton
$0.14/gallon
Labor Cost*
$1/hour
$0.07/gallon
*Biodiesel Labor only
**Labor cost change of $1/hour for oilseed processing: $0.03/gallon
Methanol Cost
$0.50/gallon
$0.10/gallon
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Questions?
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