BTC PTEC Biodiesel Workshop

1
BTC PTEC Biodiesel Workshop
2
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

3
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

4
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

5
Large scale production
6
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

7
Oil Imports
8
Balance of trade
9
Diesel fuel prices
10
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

11
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

12
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
13
History of biodiesel

• 1853 transesterification of vegetable oil (Duffy
  Patrick)
• 1898 Rudolph Diesel demonstration of his
  compression ignition engine at Worlds Fair

14
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 Sargents 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

15
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 Manufacturers 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)

16
Esterflip H Continuous Biodiesel plant
17
French Esterlip-H Process
18
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 Denvers city diesel power
  vehicles to be on B20
• 2009 Washington State goal for minimum of 20
  biodiesel in state owned diesel vehicles
• 2010 Indonesias 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

19
States with current or pending Renewable Energy
Standards
20
Planned 100 million gallons/year Imperium
biodiesel plant in Greys Harbor
21
(No Transcript)
22
Total EU25 Biodiesel Production (1000 metric tons)
23
(No Transcript)
24
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

25
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 worlds vegetable oil
  production would satisfy about 80 of the US
  demand for on-highway diesel fuel

26
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

27
Washingtons 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

28
(No Transcript)
29
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)

30
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
31
(No Transcript)
32
Biodiesel distributors
Click anywhere on the map below to find biodiesel
distributors in the United States
                                                                                   
Show All Distributors Nationwide (long list/large page)
33
Washington distributors

• Seattle Seattle Biodiesel, Seaport Petroleum,
  Ranier Petroleum Corp., Laurelhurst Oil, Genesee
  Fuel and Heating, Dr. Dans 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)

34
Bellingham fuel stations

• Sammys Place (State Street)
• Whole Energy Fuels (Fairhaven)
• Yorkys Market (Bennet Road)
• Others located in Mt. Vernon, Custer, Deming,
  Vashon, Orcas Island

35
Biodiesel prices (5/06)

• B100
• Olympia area (Acme Energy Services) 2.99/gal
• Diesel
• Olympia area 3.02

36
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

37
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
38
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

39
Quotes

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

40
Little known biodiesel facts

• August 10th is International Biodiesel Day

41
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.

42
Information websites

• History
• Yokayo Biofuels http//www.ybiofuels.org/bio_fuels
  /history_biofuels.html
• Wikipedia http//en.wikipedia.org/wiki/BiodieselH
  istorical_Background
• Chelsea Green Publishing http//www.chelseagreen.c
  om/images/biodieselchap8.pdf

43
Information websites

• Companies
• Yokayo Biofuels (Ukian, CA) http//www.ybiofuels.o
  rg/bio_fuels/history_biofuels.html
• Pacific Biofuel Inc. (Santa Cruz, CA)
  http//www.pacfuel.com/index.htm
• PlanetFuels (UK) http//www.planetfuels.co.uk/inde
  x.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/bio
  diesel_yield.html

44
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/ind
  ex.php
• World Watch Institute
• Green Car Congress
• Dieselnet http//www.dieselnet.com/links/fuel_.h
  tml
• IEA Bioenergy Task 39 Report on Biodiesel in
  North America (2004) http//www.senternovem.nl/mmf
  iles/150062_tcm24-124384.pdf
• Harvest Clean Energy http//www.harvestcleanenerg
  y.org/conference/HCE6/Armstrong.pdf
• National Biodiesel Accreditation Program
  http//www.bq-9000.com/
• NW Biodiesel Network http//www.nwbiodiesel.org

45
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_Blend
  s_Above20_20_Final.pdf

46
Analytical laboratories

• Alberta Research Council http//www.arc.ab.ca/Inde
  x.aspx/ARC/2701
• Analytical Testing Services http//wetestit.com/Bi
  odiesel20101.htm
• Magellan Midstream Partners Laboratory Service
  http//www.magellanlp.com/lab.asp
• PerkinElmer http//las.perkinelmer.com/Application
  sSummary/Applications/2H06_AS_Seminars.htm

47
Information websites

• Others
• Willie Nelsons Biodiesel http//www.wnbiodiesel.c
  om/technology.html
• Biodiesel Blog http//biodieselblog.com/
• Peninsula Biodiesel Co-op http//www.peninsulabiod
  iesel.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.co
  m/
• BioLyle Biodiesel Workshop http//biolyle.com/