BTC PTEC Biodiesel Workshop

August 7 – 8, 2006

Session 1

Agenda for first session

• Introductions• Introduction to Biodiesel

– What is biodiesel?– Why produce and use biodiesel?– History of biodiesel– Current Situation– Future of biodiesel

• Production and distribution statistics• Lifecycle costs• Problems with biodiesel

What is biodiesel?

• Vegetable oils– Problems with high viscosity resulting in poor

atomization and engine deposits– Most common solution is esterification of the

vegetable oil

• Biodiesel is the alkyl monoester of fatty acids obtained from the processing of vegetable oils or animal fats

How to make biodiesel?

• Take the seeds from soybeans

• Crush the seeds to get the vegetable oil

• React the warmed oil with alcohol and lye

• Separate the layers of biodiesel and glycerine

• Wash the biodiesel

Large scale production

Why produce and use biodiesel?

• Renewable, biodegradable, nontoxic comparable fuel• Can be used with no engine modifications• Can be blended with petroleum based diesel in any proportion• Net energy production (3.2 BTU out/1.0 in)• Reduce dependence upon foreign oil• Can be produced locally (20+ different feedstocks) and will stimulate

economic development• Overall less air polluting than petroleum based diesel• Net reduction in greenhouse gases (78%) relative to petroleum derived

diesel fuel• Addition of biodiesel (1 – 2%) to diesel fuel improves its lubricity and

detergency• Legislative mandates and incentives

– WA law mandating 2% biodiesel in regular diesel to be implemented when production capacity (20 million gallons/yr) is reached

• It may become cheaper than diesel fuel

Oil Imports

Balance of trade

Diesel fuel prices

Biodiesel use

• Can use as B100, pure biodiesel

• More commonly used as B20, 20% biodiesel in diesel

• Some states have mandated B02, 2% of biodiesel in diesel

Energy budget

• Gasoline budget is 0.81 energy in product/energy required to obtain, produce and market

• Petroleum diesel budget is 0.8 – 0.85

• Ethanol budget is 1.3 – 1.6

• B100 budget is 3.2

Emission reductions in using B20 biodiesel

Pollutant % change relative to diesel

Nitrogen oxides + 2 to +13

Particulate Matter -10 to -52

Hydrocarbons -21 to -83%

Carbon monoxide -11 to -38%

Green House gases - 15

History of biodiesel

• 1853 transesterification of vegetable oil (Duffy & Patrick)

• 1898 Rudolph Diesel demonstration of his compression ignition engine at World’s Fair

History of Biodiesel• 1920 diesel engines modified to run on cheaper petroleum based diesel fuel• 1991 first industrial scale biodiesel plant built in Austria• 1991 Midwest Biofuels plant started in Kansas City• 1992 US Energy Policy Act passed • 1996 Ag Process Incorporated 5 million gallons/year plant started in

Sargent’s Bluff, Iowa• 1998 21 countries had industrial production biodiesel plants• 1998 EPA Tier I Health Effects approval for biodiesel as an alternative fuel• 2001 ASTM D6751 biodiesel fuel standard issued• 2003 NBB estimates about 80% biodiesel use in US is as B20 in

government fleets• Currently 200 fleets run on biodiesel (US Postal Service and military,

agricultural concerns, school districts, etc.)• 120 plants in Europe producing 6.1 million metric tons of biodiesel a year

(about 2300 million gallons per year)• 1000 stations provide biodiesel to customers in Germany

Current situation with biodiesel• In Canada 11.4% and in the US 7% of diesel used is biodiesel • Malaysia and Indonesia set aside 40% of palm oil crop for biodiesel• US Defense Advanced Research Projects Agency is seeking proposals for

making biodiesel as an alternative to jet fuel• US House proposes to make biodiesel federal excise tax credit permanent• Engine Manufacturer’s Association releases specs for B20• BP provides $500 million for a biofuels research center• Lousiana passes a 2% renewable fuels standard• Scania (Swedish manufacturer of heavy duty trucks and buses) now

guarantees operating reliability for B100 for all of its trucks with engines featuring unit injectors

• 52 biodiesel plants operate in the US (350 million gallons/year)• Two biodiesel plants in Washington State are in the planning stage

(Imperium Renewables 100 million gallons/year plant in Greys Harbor and Chemical Consortium Holdings 60 million gallons/year plant in Walla Walla)

• French biodiesel company Diester contracts another Esterflip-H heterogeneous catalyst biodiesel plant (France and Nebraska)

Esterflip H Continuous Biodiesel plant

French Esterlip-H Process

Future of Biodiesel

• 2006 China/Malaysian partnership to construct a 36 million gallons/year palm oil feedstock biodiesel plant in China

• 2007 planned 54 million gallons/year soybean feedstock Archer Daniels Midland Company biodiesel plant to open in Brazil

• 2007 target for all of Denver’s city diesel power vehicles to be on B20

• 2009 Washington State goal for minimum of 20% biodiesel in state owned diesel vehicles

• 2010 Indonesia’s target for 10% biodiesel• 2010 US auto target to be 2 million/year production of alternative

cars and trucks• 2020 target for a 25% renewable fuels standard for Iowa• 2030 India target of 18 billion gallons per year biodiesel to provide

50% of current oil production• 2030 Iowa target for 60 billion gallons per year Renewable Fuels

Standard

States with current or pending Renewable Energy Standards

Planned 100 million gallons/year Imperium biodiesel plant in Grey’s Harbor

Total EU25 Biodiesel Production (1000 metric tons)

Comparison to ethanol (US)

• Ethanol– 2.5% of gasoline pool– From 1.4 billion bushels of corn– Which is 12% of corn crop

• Biodiesel– 0.2% of diesel pool– From 75 million gallons biodiesel produced per year– Produced from 0.5 – 1 billion pounds of vegetable oil available

for biodiesel– Which is about 5% of the total 19 billion pounds of soybean oil

produced– From 3 billion bushels of soybeans

Yearly potential (Peterson, 2002)

• There are 363 million acres of US cropland harvested per year

• If these were planted in rapeseed with a production rate of 1 ton of crops for 100 gallon of oil and 1200 pounds of meal per acre, there would be a total of 36 billion gallons of oil or almost 2 times the amount of on-highway diesel fuel consumed in 2002 (or about the amount now used annually)

• The use of all idle land and excess production would satisfy about 30% of the demand for on-highway diesel fuel

• The use of the whole world’s vegetable oil production would satisfy about 80% of the US demand for on-highway diesel fuel

Yearly potential (Van Gerpen, 2006)

• The US production of vegetable oil and animal fats is about 35 billion pounds per year

• Converting this into biodiesel, assuming 100% efficiency, would yield about the same weight of biodiesel or 4.6 million gallons/year

• This is about 14% of the annual amount of on highway diesel used annually in the US

Washington’s vegetable oil crops

• 20,000 acres (canola and mustard oil)

• Enough to make 1 – 2 million gallons of oil

• Seed crushing plant would cost $8 - $12 million

• Closest seed crushers are in Montana and Alberta

Washington State Producers

• Current– Seattle Biodiesel ( 5 million gallons/yr)

• Projected– Baker Commodities (Tacoma, 10 mgy, 2007)– Washington Biodiesel (Warden, 35 mgy,

2007)– Imperium Renewables (Aberdeen, 100 mgy,

2007)

Biodiesel costs

Item 2002 $/gal 2006 $/gal 2010 $/gal

Soybean oil $1.90 $1.91/gal $1.94

Production cost $2.58 $2.47 $2.57

Relative costs

feedstock, 75

chemicals, 12

energy, 1

labor, 3

overhead, 2

depreciation, 7

Click anywhere on the map below to find biodiesel distributors in the United States

                                                           

                         Show All Distributors Nationwide (long list/large page)

Biodiesel distributors

Washington distributors

• Seattle: Seattle Biodiesel, Seaport Petroleum, Ranier Petroleum Corp., Laurelhurst Oil, Genesee Fuel and Heating, Dr. Dan’s Alternative Fuelworks

• Tacoma: PNEC, Pacific Fluids, Associated Petroleum Products

• Mt. Vernon: Whole Energy• Others: Richland, Kent, Vancouver, Olympia,

East Sound, Friday Harbor, Port Townsend (8)

Bellingham fuel stations

• Sammy’s Place (State Street)

• Whole Energy Fuels (Fairhaven)

• Yorky’s Market (Bennet Road)

• Others located in: Mt. Vernon, Custer, Deming, Vashon, Orcas Island

Biodiesel prices (5/06)

• B100 – Olympia area (Acme Energy Services)

$2.99/gal

• Diesel – Olympia area $3.02

Government support

• Tax incentives– $1/gallon for vegetable oil– Excise tax credit for blender (0.5 - 1 penny/% - gal biodiesel in

blend) (to 2008)• USDA Bioenergy program to stimulate use of crop

surpluses for energy needs through the Commodity Credit Corporation payments of $1.45/gallon for soybean oil biodiesel

• USDA Biodiesel Fuel Education program• 2% biodiesel blends required by law (Minnesota,

Washington states)• State provided low interest loans for farmers, oil seed

crushers

Life Cycle Cost Comparison(DOE study)

Diesel CNG LNG B20 EtOH LPG Hybrid

Fuel cost per mile $ 0.31 $ 0.42 $ 0.25 $ 0.34 $ 0.61 $ 0.60 $ 0.27

Operating cost per mile

$ 0.73 $ 0.97 $ 0.79 $ 0.77 $ 1.17 $ 1.09 $ 0.70

Energy content of fuel (BTU/sales unit)

128,400 93,000 75,820 126,139 81,445 84,500 128,400

Fleet emissions reduced (tons PM/year)

. 0.09 0.09 0.20 0.00 0.17 0.21

Problems with biodiesel

• Some engine problems due to filter plugging during cold weather operation – recourse with the fuel provider

• B100 can dilute engine oil and cause sludge formation• B100 softens and degrade certain elastomers• Storage – less stable than diesel, biodiesel should be

used within 6 months of production• Energy content – B100 has 6 – 9% lower power output

than petroleum based diesel (118,000 BTU/gallon relative to 130,000 BTU/gallon)

• Cost and supply

Quotes

• The industry is still in its infancy, where ethanol was in 1982 (Joe Jobe, NBB 4/26/2006)

Little known biodiesel facts

• August 10th is International Biodiesel Day

Biodiesel references• Estill, Lyle, Biodiesel Power, New Society Publishers, Gabriola

Island, B.C., Canada; 2005.• Knothe, G.; J. Krahl; J. Van Gerpen, The Biodiesel Handbook,

AOCS Press, Champaign, Kentucky; 2005.• Pahl, Greg, Biodiesel – Growing a New Energy Economy, Chelsea

Green Publishing, White River Junction, Vermont; 2005.• Tickell, Josh, Biodiesel America, Yorkshire Press, Ashland, Ohio;

2006.• Tickell, Josh, From the Fryer to the Fuel Tank, Bookmasters,

Ashland, Ohio; 2003• Von Gerpen, Jon; G. Knothe, L.D. Clements; R. Pruszko; U of I

Biodiesel Technology Workshop, March 2006; Moscow, ID.• Von Gerpen, Jon; R. Pruszko;, L.D. Clements; B. Shanks; G.

Knothe; Building a Successful Biodiesel Business, HKR Communications and Marketing, 2005.

Information websites

• History– Yokayo Biofuels

http://www.ybiofuels.org/bio_fuels/history_biofuels.html

– Wikipedia http://en.wikipedia.org/wiki/Biodiesel#Historical_Background

– Chelsea Green Publishing http://www.chelseagreen.com/images/biodieselchap8.pdf

Information websites

• Companies– Yokayo Biofuels (Ukian, CA)

http://www.ybiofuels.org/bio_fuels/history_biofuels.html– Pacific Biofuel Inc. (Santa Cruz, CA)

http://www.pacfuel.com/index.htm – PlanetFuels (UK) http://www.planetfuels.co.uk/index.php – Propelbiofuels (Seattle) http://www.propelbiofuels.com/site/ – Superior Process Technologies (Minneapolis)

http://www.superiorprocesstech.com/ – Earth Biofuels (Dallas) http://www.earthbiofuels.com/– Seattle Biodiesel http://www.seattlebiodiesel.com/ – Imperium Renewables http://imperiumrenewables.com/

– Journey to Forever http://journeytoforever.org/biodiesel_yield.html

Information web site• Some biodiesel associations and government sites

– USDA Biodiesel Education http://www.biodiesel.org/usda/ – National Biodiesel Board (multimedia, free downloadable videos) www.

biodiesel.org– National Renewable Energy Lab http://www.nrel.gov/ – DOE Energy Efficiency and Renewable Energy Alternative Fuels

http://www.eere.energy.gov/afdc/index.html – European Biodiesel Board http://www.ebb-eu.org/index.php – World Watch Institute– Green Car Congress – Dieselnet http://www.dieselnet.com/links/fuel_.html – IEA Bioenergy Task 39 Report on Biodiesel in North America (2004)

http://www.senternovem.nl/mmfiles/150062_tcm24-124384.pdf– Harvest Clean Energy

http://www.harvestcleanenergy.org/conference/HCE6/Armstrong.pdf – National Biodiesel Accreditation Program http://www.bq-9000.com/ – NW Biodiesel Network http://www.nwbiodiesel.org

Information websites

• Vehicle sites– B100 Fuel site http://www.b100fuel.com/ – Biotrucker.com http://www.biotrucker.com/– National Biodiesel Board vehicle guidelines

http://www.biodiesel.org/pdf_files/Biodiesel_Blends_Above%20_20_Final.pdf

Analytical laboratories

• Alberta Research Council http://www.arc.ab.ca/Index.aspx/ARC/2701

• Analytical Testing Services http://wetestit.com/Biodiesel%20101.htm

• Magellan Midstream Partners Laboratory Service http://www.magellanlp.com/lab.asp

• PerkinElmer http://las.perkinelmer.com/ApplicationsSummary/Applications/2H06_AS_Seminars.htm

Information websites

• Others– Willie Nelson’s Biodiesel

http://www.wnbiodiesel.com/technology.html – Biodiesel Blog http://biodieselblog.com/ – Peninsula Biodiesel Co-op

http://www.peninsulabiodiesel.org/ – Biodiesel America http://www.biodieselamerica.org/ – Biodiesel forum http://biodiesel.infopop.cc – Biodiesel Now forum http://www.biodieselnow.com – Biodiesel Magazine

http://www.biodieselmagazine.com/ – BioLyle Biodiesel Workshop http://biolyle.com/