Transcript Biodiesel Benefits, Issues, & Opportunities Presentation to the Special Libraries Association Seattle, WA June 17, 2008 Richard Nelson Kansas State University & National Biodiesel Board [email protected].

Biodiesel
Benefits, Issues, & Opportunities
Presentation to the Special Libraries Association
Seattle, WA
June 17, 2008
Richard Nelson
Kansas State University &
National Biodiesel Board
[email protected]
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 Concepts
Biodiesel is a domestic,
renewable fuel for
diesel engines derived
from fats and oils such as
soybeans and animal
fats.
Biodiesel
Petroleum diesel
B100
B20
B10
B5
Biodiesel can be easily
used in existing diesel
engines with little or no
modification.
Biodiesel is not
raw vegetable
oil!
B2
0
50
100
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
Vegetable Oil /
Animal Fat/Waste
Grease
Methanol +
Catalyst
Crude
Biodiesel
Transesterfication
Crude Glycerin
Methanol
Recovery
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)
Ultra-low Sulfur Diesel
Virtually Zero Sulfur
– Meets 2006 ULSD rule
HFRR WSD (micron)




800
700
600
500
400
300
200
100
0
0.0
1.0
2.0
3.0
Biodiesel Blend (%)
4.0
5.0
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
EPACT
REGULATED
FLEETS
• Federal
• State
• Selected Utilities
MARINE
• Recreational
• Tour Boats
• Environmentally
Sensitive Areas
Home Heating
PREMIUM DIESEL
•Lubricity Enhancement
•Conductivity Improver
•ULSD Sulfur Free Blend Stock
US Biodiesel Demand
450
450
Million Gallons per Year
400
350
250
300
250
200
Changes
to EPACT
150
Bioenergy
Program
100
5 MGY
Biodiesel
Tax
Incentive
75
MGY
50
0
1999
2000
2001
2002
2003
Year
2004
2005
2006
2007
One Driver: World Transport Vehicle Trends – Diesel
Direct Impact on Biofuels Production and Demand !
800
US Diesel Car Market
700
8
600
500
6
400
4
300
200
2
100
2017
2016
2015
2014
2012
2013
US Diesel LT Market
Volume (rhs)
Share (lhs)
2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
Diesel LT Sales ('000s)
Share (lhs)
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
20
18
16
14
12
10
8
6
4
2
0
2011
2010
2009
2008
2006
2007
2005
2004
2003
Volume (rhs)
 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
0
2002
0
% Total LT Sales
% Total Car Sales
10
900
Diesel Car Sales ('000s)
12
 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?
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
Gasoline market
10% Ethanol
Ethanol Production
RFS Renewable Fuel
RFS Advanced Biofuel
RFS Cellulosic Biofuel
RFS Biomass-based Diesel
Biodiesel production
2007
2022
Billion Gallon
Billion Gallon
140
14
6 to 7
190
19
36
21
16
1 (in 2012)
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
$1.000
$0.900
RBD Soybean Oil
$0.700
Canola
$0.600
Inedible Tallow
$0.500
Yellow Grease
$0.400
Poultry Fat
$0.300
Sunflower
Corn Oil (crude)
$0.200
$0.100
Month-Year
10/2007
7/2007
4/2007
1/2007
10/2006
7/2006
4/2006
1/2006
10/2005
7/2005
4/2005
1/2005
10/2004
7/2004
4/2004
$0.000
1/2004
$ per pound
$0.800
Ja
n-0
Ma 6
r- 0
Ma 6
y -0
6
Ju
l-0
Se 6
p- 0
No 6
v-0
Ja 6
n-0
Ma 7
r- 0
Ma 7
y -0
7
Ju
l-0
Se 7
p- 0
No 7
v-0
7
cents per gallon
Price of #2 Diesel vs Biodiesel
400
300
#2 Diesel
200
Biodiesel
100
Price Difference
0
Month - Year
Biodiesel and Diesel Particulate Matter/Elemental
Carbon Emissions
MSHA compliance samples, EC
Elemental Carbon, EC, µg/m3
Standard D2
100% Biodiesel
500
400
MSHA Target for
UG Mines (123 EC)
300
200
100
0 2002
2003
2004
2005
2006
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?
ASTM D 6751-07b Specifications (Full)
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
Supply Chain Management
• Preserve the quality of the finished fuel
• Hand-offs can cause the “biodiesel ball to be fumbled”
Accredited
Producer Focus
Certified Marketer
Focus
 A system for
monitoring the
production of
biodiesel to the ASTM D
6751 specification.
 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
Shipping
•
•
•
•
•
•
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