Biodiesel 101: Industry

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Biodiesel 101Industry Technical Overview

• Presented by the National Biodiesel Board
• September 2009

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Topics Covered

• Biodiesel Industry Overview
• Biodiesel Attributes and Benefits
• ASTM Biodiesel Fuel Specifications
• BQ-9000 Program, Fuel Quality Pump Labeling
• Biodiesel Use Handling
• Biodiesel for Automotive Technicians
• OEM Support for Biodiesel Blends
• Information Resources

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Biodiesel Industry Overview,Attributes Benefits
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What is Biodiesel?

• biodiesel, n. -- a fuel comprised of mono-alkyl
  esters of long chain fatty acids derived from
  vegetable oils or animal fats, designated B100.
• biodiesel blend, n. -- a blend of biodiesel fuel
  with petroleum-based diesel fuel designated BXX,
  where XX is the volume percent of biodiesel.

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FACT Making Biodiesel

• (Catalyst)
• 100 pounds 10 pounds 10 pounds
  100 pounds
• Triglyceride Alcohol Glycerine
  Mono-Alkyl Esters
• (Soy Oil) (Methanol)
  (Biodiesel)
• Biodiesel is produced through a process called
  Transesterification
• Raw Oils and Fats are NOT Biodiesel!
• Other Renewable Products are NOT Biodiesel
• Must be long chain mono alkyl esters of fats/oils
• Must meet ASTM D 6751 - Biodiesel (B100) spec
  in place since 2001, with new updates in Oct.
  2008

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Written Definition

• Eliminates
• Coal Slurries
• Raw Vegetable Oils and Fats
• Non-Esterified Oils
• Hydro-treated Oils and Fats
• Proprietary Vegetable Oil / Ethanol blends
• Blends With Diesel
• Needed to secure auto, engine, and fuel injection
  equipment mfr. acceptance

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Traditional Biodiesel Raw Materials

• Oil or Fat Alcohol
• Soybean Methanol
• Corn Ethanol
• Canola
• Cottonseed Catalyst
• Sunflower Sodium hydroxide
• Beef tallow Potassium hydroxide
• Pork lard
• Used cooking oils

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Potential New Sources
Brown Grease Etc.
National Biodiesel Board
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Sustainable Biodiesel

• U.S. biodiesel industry is committed to
  sustainable biodiesel production and opposes the
  use of non-sustainable agriculture practices
  worldwide
• Biodiesel is produced from a wide variety of
  renewable resources in the U.S., including
  non-food sources such as recycled restaurant
  grease and surplus animal fat
• Soybean oil based biodiesel uses only a fraction
  of the oil, leaving 80 of each bean for food
  feed
• When soybean oil demand goes up for use in
  biodiesel, price for soybean meal for food comes
  down
• Visit www.biodieselsustainability.com for more
  information

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US Biodiesel Production
700 Million Gallons
National Biodiesel Board
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Current Production Capacity 2.69 billion
gallons per year. BQ-9000 Producers Represent 70
- 80 of biodiesel production volume in U.S.
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Additional Production Capacity Under Construction
427.8 million gallons / yr.
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Biodiesel Infrastructure

• Biodiesel and biodiesel blends are now available
  nationwide from more than
• 1,600 Distributors and
• 1,300 Retailers

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Buying Biodiesel

• Visit the NBB website at www.biodiesel.org/buyin
  gbiodiesel/ or www.biotrucker.com to view
  biodiesel retailers near you, by state, or along
  a route
• NBB website also contains the complete listings
  of all NBB member producers, distributors, and
  BQ-9000 certified companies

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Why Biodiesel?
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Diesel Industry Research

• JD Power Associates predicts that Diesels
  share of Light Vehicle Sales will increase from
• USA Car Rise from 3.8 in 2008 to 10.0 by 2015
• USA Truck Rise from 12.2 in 2008 to 21.7 by
  2015

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Consumer Research (September 2009)

• New Public Opinion Research by Moore Information
  revealed
• 80 of respondents stated they were Very Likely
  or Somewhat Likely to use biodiesel in their
  vehicle if they were able
• 73 said they would consider purchasing a diesel
  passenger car if it could use biodiesel and if
  biodiesel was a recommended or approved fuel by
  the engine manufacturer
• 67 would support the extension of the Biodiesel
  Tax Incentive
• 75 would support a biodiesel requirement in the
  Renewable Fuels Standard (RFS-2)

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Biodiesel Performance

• Biodiesel blends can be used in any diesel engine
  without modification
• High Cetane (avg. over 50)
• Performance essentially the same as diesel in
  horse-power, torque, towing capability and fuel
  economy
• High Lubricity, even in blends as low as 1-2
• Ultra Low Sulfur avg2 ppm
• Reduces HC, PM, CO in existing diesel engines

B5 is the official fuel of the 2009 Volkswagen
Jetta TDI Cup Racing Series.
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Benefits of Biodiesel

• Environment
• Decreases greenhouse gas emissions
• 78 Lifecycle Carbon Reduction
• 4.56 1 Positive Energy Balance
• According to results from new study by University
  of Idaho and U.S. Department of Agriculture
• Compression Ignition Platform (i.e. diesel)
  30-40 more efficient than Spark Ignition (i.e.
  gasoline, CNG, propane)
• In 2008 alone, biodiesels contribution to
  reducing greenhouse gas emissions was equal to
  removing 980,000 passenger vehicles from
  Americas roadways

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Benefits of Biodiesel

• Energy Security
• Renewable, domestic resource
• New fuel, new refining capacity
• Reduces dependence on foreign oil
• Biodiesel produced in the U.S. in 2008 displaced
  38.1 million barrels of crude oil
• U.S. Industry Goal 5 on-road displacement by
  2015 1.85 BGY (met in various blend levels)
• On road diesel 38 BGY
• 5 ¼ of diesel equivalent refined from Persian
  Gulf Crude or about the amount imported from Iraq

National Biodiesel Board
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Benefits of Biodiesel

• Green Jobs/Economic Growth
• Creates jobs and stimulates rural and urban
  economies
• In 2008 the U.S. biodiesel industry supported
  51,893 jobs in all sectors of the economy
• Added 4.287 billion to the nations Gross
  Domestic Product
• Generated 866.2 million in tax revenue for
  federal, state and local governments

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Legislative Incentives for Biodiesel

• Federal Excise Tax Credits
• Incentive for Biodiesel Producers / Blenders
• 1.00 per gallon credit against excise tax on
  first use vegetable and animal oils
• EPACT Credits
• Incentive for Fleets for B20 Use Least cost
  option
• CAFÉ Credits
• Incentive for Automakers for B20 approval
• Federal Clean Diesel Tax Credits
• Incentive for Consumers - 250 - 3400

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Renewable Fuels Standard (RFS-2) Energy
Independence and Security Act as Enacted
Federal Legislation Volume Requirements
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State Biodiesel Legislation

• 42 states have now legislatively adopted the ASTM
  D6751 specifications for biodiesel 
• 7 states have passed biodiesel mandates 
• Two are currently in effect (MN WA)
• Five will be in effect as of July 1, 2010
  (LA, MA, NM, OR, PA).   

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American Society of Testing Materials (ASTM)
Biodiesel Specifications and Fuel Quality
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ASTM Status

• ASTM D6751 is the approved standard for B100 for
  blending up to B20, in effect since 2001
• Performance-based standard Feedstock and Process
  Neutral
• ASTM has approved D6751 for B100 use only for up
  to B20 in the final blend
• Higher blends upon consultation with the OEM
• European EN14214 specs are for neat B100 use
• Not feedstock neutral, based on rapeseed only
• This is why D6751 has different limits for some
  properties compared to the European Specs
• i.e. D6751 stability is 3 hours, EN14214 is 6
  hours

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New and Updated Biodiesel Standards

• After more than 6 years of research and
  development, 4 major biodiesel specification
  ballots were issued, voted on, passed, and
  released by ASTM for public use as of October
  2008
• Changes to B100 Blends Stock, ASTM D6751
• Add up to 5 biodiesel in Petrodiesel, D975
• Add up to 5 biodiesel in Heating Oil, D396
• New standard for on/off road blends B6 to B20,
  D7467

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ASTM Status

• D975 (on/off road diesel) and D396 (heating oil)
  both allow up to 5 biodiesel
• Performance based for engines
• No changes to properties of D975 and D396
• B100 must meet D6751 prior to blending
• B5 is now fungible with diesel fuel, just like
  other components that can be used to make D975
  fuel
• No pump labels are required for B5 and lower
  blends, its just normal diesel
• Voluntary labels are OK

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ASTM Status

• D7467 B6 to B20 for on/off road diesel engines
• Not applicable for heating oil
• Designed so that if B100 meets D6751 and
  petrodiesel meets D975, B6 to B20 blends will
  meet their specifications
• Important quality control is at B100 level

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Impact of Blended Specs

• More large fleets are using B20
• More than 50 of U.S. OEMs now support B20 or
  higher blends in at least some of their
  equipment several more are preparing to extend
  full B20 support to their customers
• Biodiesel blends are the only non-petroleum
  diesel substitute to have officially sanctioned
  ASTM specifications
• Quality is further improved, fuel specs can be
  enforced by regulatory bodies (supported by NBB)
• Biodiesel companies have made process changes in
  order to meet D6751

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Why Support B20?

• Consumers and Fleets want the option to use B20
  blends to reduce their environmental impacts with
  optimal vehicle performance
• Stringent ASTM specifications (ASTM D7467) are
  now in place and being enforced for B6-B20
  blends, providing OEMs and consumers with greater
  production controls and quality assurance
• Multiple recent studies by NREL, SAE and others
  indicate no adverse impacts on engine
  performance, parts wear or emissions with use of
  B20 in new engine technologies
• EPACT Credits Incentive for Fleets for B20
  Use Least cost option for EPACT compliance
• CAFÉ Credits Incentive for Automakers for B20
  approval
• State Mandates and Incentives are driving
  consumers toward use of higher biodiesel blends
• The Renewable Fuels Standard (RFS-2) should also
  encourage the sale and use of B20 blends
• Differentiate your company with a green
  competitive advantage

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Signs of QualityBQ-9000 Quality Program and New
Biodiesel Pump Labeling Requirements
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Biodiesel Pump Labeling

• Section 205 of the Energy Independence and
  Security Act of 2007 (EISA) requires the Federal
  Trade Commission (FTC) to enact and distribute
  labeling requirements for biodiesel and
  biomass-based diesel pumps.
• The labeling requirements became effective on
  December 16, 2008.
• NBB has created labels consistent with this
  ruling, which can be found and ordered at
  store.allthingsbiodiesel.com

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Biodiesel Pump Labeling

• No Label Required
• Fuel blends containing no more than five percent
  biodiesel and no more than 5 percent
  biomass-based diesel and that meet ASTM D975.
• Labels Required
• Fuel blends containing more than five but no more
  than 20 percent biodiesel or biomass-based
  diesel.
• Fuel blends containing more than 20 percent
  biodiesel or biomass-based diesel.
• Separate Labels for Biodiesel (Blue Labels) and
• Biomass-Based Diesel (Orange Labels)

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BQ-9000 Program

• Biodiesel Industrys equivalent to an ISO 9000
  program for biodiesel production distribution
  companies as well as testing labs
• BQ-9000 works hand-in-hand with the ASTM
  specifications for biodiesel
• Quality Control System covers biodiesel
  manufacturing, sampling, testing, blending,
  storage, shipping, distribution
• ASTM Grade Fuel, BQ-9000 Companies

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BQ-9000 Status

• Since 2005, there has been a substantial increase
  in interest in the NBBs BQ-9000 Quality Program
• There are now three BQ-9000 designations
• Producer (make it to spec)
• Marketer (buy spec, keep it in spec, blend it
  right)
• Certified Laboratories (test it to ensure it is
  in spec)
• We now have 53 total companies BQ-9000 certified
  (33 producers, 20 marketers)
• 70-80 of the biodiesel volume in the U.S. is now
  made by BQ-9000 producers, and more
  certifications are in process
• Many OEMs are now either requiring or strongly
  encouraging BQ-9000

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Biodiesel Use Handling
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Biodiesel Use Handling

• Refer to the Biodiesel Use Handling Guidelines
  available on the Biodiesel Training Toolkit and
  at http//www.nrel.gov/vehiclesandfuels/pdfs/4367
  2.pdf

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Guidelines for Biodiesel Use

• Ensure the biodiesel meets the ASTM specification
  for pure biodiesel (ASTM D 6751) before blending
  with petrodiesel.
• Purchase biodiesel and biodiesel blends from
  companies that have been registered under the
  BQ-9000 fuel quality program.
• Ensure your biodiesel blend supplier provides a
  homogenous product.
• Avoid long term storage of B20 and higher blends
  to prevent degradation. Biodiesel should be used
  within six months.
• Prior to transitioning to B20, it is recommended
  that tanks be cleaned and free from sediment and
  water. Check for water and drain regularly if
  needed. Monitor for microbial growth and treat
  with biocides as recommended by the biocide
  manufacturer.

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Guidelines for Biodiesel Use

• Biodiesel and biodiesel blends have excellent
  cleaning properties. Fuel filters on the vehicles
  and in the delivery system may need to be changed
  more frequently upon initial B20 use after that,
  system runs cleaner with no issues.
• Be aware of the biodiesel blends cold weather
  properties and take appropriate precautions. When
  operating in winter climates, use winter blended
  diesel fuel. Make sure the biodiesel blend cloud
  point is adequate for the geographical region and
  time of year the fuel will be used.
• Perform regularly scheduled maintenance as
  dictated by the engine operation and maintenance
  manual.

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Biodiesel Cold Flow

• Cold flow properties of petrodiesel fuel vary
  widely
• One MUST be aware of the cold flow properties of
  both the biodiesel AND the petrodiesel
• With blends of 20 and below, petrodiesel is
  dominant
• Once prepared, blends of B5 or less do not appear
  to be appreciably different from the base
  petrodiesel

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Biodiesel for Automotive and Diesel Technicians
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Diesel Technicians Training

• New Automotive Technicians Online Training
  Program provided by NBB
• Visit http//www.biodiesel.org/hotline/ for more
  information or to register for an upcoming
  training session

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Online Training Program
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Education and Outreach to Diesel Technicians
The training seminars we provide answer these
questions

• Understand why your customers want biodiesel
• Answer general questions about biodiesel that
  your customers may ask you
• Understand the importance of fuel quality and the
  BQ-9000 program
• Be able to discern issues between normal diesel
  problems and poor quality biodiesel imposters or
  out-of-spec biodiesel when they hit your shop

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Training Also Covers Vehicle Fleet Maintenance
on Biodiesel Blends

• Fuel Quality and Parameters
• Fuel Filtration system and OEM Maintenance
• Lubricity
• Exhaust Aftertreatment operation maintenance
• Additional Emissions Controls
• Engine oil lubrication system and maintenance
• Non-Fuel Related maintenance reminders

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How Does Biodiesel Affect Emissions
Aftertreatment ?

• Fuel System
• Concern over deposits and corrosion addressed by
  ASTM specifications
• Engine Emissions
• Lower HC and Particulate Matter
• NOx emissions depend on duty cycle
• Aftertreatment hardware / durability
• Easier DPF regeneration
• Studies at NREL / ORNL show no adverse effects on
  hardware durability, engine performance or
  emissions

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B20 vs. Diesel In the shop

• With in spec B20 and lower, the issues you can
  expect to see in your shop are the same as you
  will see with petrodiesel
• Except
• Expect to see less lubricity related issues
• Expect to see less problems with after-treatment
• Filter related issues are likely normal diesel
  issues or out of spec or imposter biodiesel
• Less black smoke from exhaust!

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OEM Support for Biodiesel Blends
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OEM Warranty Statements and Biodiesel

• All major U.S. OEMs support at least B5 and lower
  blends, provided they are made with biodiesel
  meeting ASTM D 6751
• More than 50 of U.S. manufacturers support B20
  or higher blends in at least some of their
  equipment
• Several more are completing testing and
  progressing toward support for B20 now that new
  ASTM standards for B6-B20 blends have been
  published (ASTM D7467)
• Most are also recommending use of a BQ-9000
  supplier

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OEM Biodiesel Blend Approvals

• Expected to enter the U.S. diesel market (2010),
  blend TBA
• Acura, Honda, Hyundai, Mahindra, Mini Cooper,
  Nissan, Smart Car, Subaru, Toyota
• Approve B5
• Audi, BMW, Detroit Diesel, Freightliner, Isuzu,
  Kubota, Mack, Mercedes, Volkswagen, Volvo

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OEM Biodiesel Blend Approvals

• Approve B20 or higher on at least some models
• Arctic Cat, Buhler, Case Construction Equipment,
  Case IH, Caterpillar, Cummins, Chrysler
  (Dodge Ram Sprinter - Fleets Only), Ford (for
  2011 F-Series trucks), General Motors (SEO for
  fleets only), Hayes Diversified Technologies,
  John Deere, Navistar/International, Perkins,
  Toro, Yanmar
• Approve B100
• Case IH (approx. 50 of models), Fairbanks Morse,
  New Holland, Tomcar

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For the Latest OEM Updates

• Visit http//www.biodiesel.org/resources/oems
• for a complete listing of OEM position
  statements on biodiesel, as well as the current
  U.S. Diesel Vehicles List

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NBB Resources

• www.biodiesel.org
• News Releases Information Resources
• Technical Library, Spec Sheets Videos
• OEM Warranty Positions on Biodiesel
• U.S. Diesel Vehicle List
• www.BQ-9000.org
• Listing of BQ-9000 Certified Companies
• www.biotrucker.com
• Listing of BioTrucker retail sites
• www.allthingsbiodiesel.com
• Biodiesel merchandise, literature, pump labels
  and more!

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Thank You!

• For more information or future training
  opportunities, contact
• Jennifer Weaver
• OEM Outreach Education Program Specialist
• For the National Biodiesel Board
• Email Jennifer_Weaver_at_me.com
• Or Call NBB at 1-800-841-5849