Soy Beans in Biofuels

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Soy Beans in Biofuels

• Purpose
• Provide An Overview Of The Current Soybean Oil
  and Biodiesel Markets
• Advantages and Disadvantages in using soybeans
  in the production of biofuels

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History

• The concept of using vegetal oil as an engine
  fuel likely dates when Rudolf Diesel (1858-1913)
  developed the first engine to run on peanut oil,
  as he demonstrated at the World Exhibition in
  Paris in 1900. Unfortunately, R. Diesel died 1913
  before his vision of a vegetable oil powered
  engine was fully realized.
• "The use of vegetable oils for engine fuels may
  seem insignificant today. But such oils may
  become in the course of time as important as the
  petroleum and coal tar products of the present
  time"Rudolf Diesel, 1912

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What is Biodiesel fuel?

• Biodiesel is a fuel that is made from soy beans,
  or waste vegetable oil (cooking oil). It can be
  used in place of petroleum diesel fuel for
  vehicles or heating oil for buildings. Unlike
  petroleum diesel, biodiesel is a renewable
  resource, and it creates less pollution than
  petroleum diesel. It can be used alone or in
  combination with petroleum diesel, or with
  heating oil. Generally, no expensive
  modifications to the engines are required. This
  makes it easier to integrate biodiesel into
  current systems than other alternative energy
  sources, which often require new equipment.

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How is Biodiesel made?

• Biodiesel fuel is made from oils or fats, which
  are both hydrocarbons, most commonly soybean oil.
  These hydrocarbons are filtered, then mixed with
  an alcohol, which is usually methanol, and a
  catalyst (sodium or potassium hydroxide). The
  major products of this reaction are the biodiesel
  fuel, which is an ester, and glycerol, which has
  commercial uses, such as in cosmetics.

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How is Biodiesel labeled?

• Biodiesel is designated by the letter B and a
  number representing the percent of the fuel that
  is biodiesel. The rest of the fuel is petroleum
  diesel. For example, a mixture of 20 biodiesel
  and 80 petroleum diesel would be labeled B20.
  This ratio of biodiesel to petroleum diesel is
  commonly used.

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BQ-9000 Quality Program
OIL
FEEDSTOCK BULK STORAGE
FROM SUPPLIER
BIODIESEL BULK STORAGE
MANUFACTURING PROCESSES
BIODIESEL
TO CUSTOMER
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How Is Biodiesel Made?
Catalyst
Methanol
Vegetable Oils Animal Fats
ASTM D6751
Methyl Ester
Biodiesel
Reactor
Waste Stream
Crude Glycerin
Recovered Methanol
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Production is flat, expect lt 2 increase thru
'07/'08Crush output, 53 of Production, is
also expected to remain flat thru '07/'08
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The "Oil Can" capacity is fixed and demand is
near 100 Only 3 of 2.4
Billion gpy oil available for industrial useVery
stiff competition from food industryCrush
capacity limited by volume soy meal markets
Includes oilseed crops, tallow, lard,
poultry fats
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Top Twelve Soybean Producing States 2004 Top Twelve Soybean Producing States 2004 Top Twelve Soybean Producing States 2004 Top Twelve Soybean Producing States 2004
State Acres Planted (x1000) Production (Million Bushels) Yield (Bushels/Acre)
Iowa 10,100 497 49.0
Illinois 9,500 500 50.5
Minnesota 6,900 236 33.5
Indiana 5,400 287 52.0
Missouri 5,000 223 45.0
Nebraska 4,700 221 46.5
Ohio 4,500 208 47.0
South Dakota 3,900 140 34.0
Arkansas 3,030 124 40.0
North Dakota 3,000 82 26.5
Kansas 2,900 111 41.0
Michigan 2,000 75 38.0
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U.S. Soybean Oil Use for 2004 U.S. Soybean Oil Use for 2004
Baking and Frying Fats 7,900 Million lbs (44.9)
Salad or Cooking Oil 7,730 Million lbs (43.9)
Margarine 1,210 Million lbs (6.9)
Industrial Products (Includes Biodiesel Feedstock) 628 Million lbs (3.6)
Other Edible Products 135 Million lbs (lt 1)
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NBB predicts modest BD sales growth for '06 to
130 MgalHowever, '05 BD production (75 Mgal)
exceeded domestic industrial soy oil supply (72
Mgal)
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Biodiesel capacity is estimated to be 377 Mgal in
'06,1009 Mgal capacity in '07, and a projected
1716 Mgal capacity in '07/'08.The majority of
this BD capacity increase is based on soybean oil
as the primary feedstock. Forecasts for
domestic oil available for industrial use are
flat at lt 80 Mgal/yr through '07/'08.
U.S. Soybean Crush (Projected) U.S. Soybean Crush (Projected)
2004 1,650 Million Bushels (99,000 Million lbs)
2005 1,720 Million Bushels (103,200 Million lbs)
2006 1,730 Million Bushels (103,800 Million lbs)
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Why Should We Use Biodiesel?

• Reduces Greenhouse Gases 78 less CO2 Emissions
• Highest Lifecyle Energy Balance 3.21
• Reduces Harmful Exhaust Compounds Particulates
• Nontoxic and Biodegradable
• Restores Lubricity Cleaner Burning
• Reduces Dependence on Foreign Oil
• Renewable Fuel Feedstocks Grown in Arkansas
• Price Comparable to Petroleum Diesel
• Adaptable to Existing Infrastructure

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What are the advantages of Biodiesel fuel?

• Biodiesel fuel is a renewable energy source that
  can be made from soy beans grown for fuel, or
  from cooking oils recycled from restaurants. This
  means it is a renewable resource unlike
  petroleum-based diesel.
• There is an excess production of soybeans in the
  United States, therefore biodiesel is an economic
  way to utilize this surplus.
• Biodiesel is less polluting than petroleum
  diesel. Compared to petroleum diesel, biodiesel
  produces less soot (particulate matter), carbon
  monoxide, unburned hydrocarbons, and sulfur
  dioxide.

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Advantages (continued)

• The absence of sulfur in 100 biodiesel should
  extend the life of catalytic converters.
• Biodiesel fuel can also be used in combination
  with heating oil to heat residential and
  industrial buildings. This can reduce dependence
  on non-renewable and increasingly expensive
  heating oil.
• Biodiesel fuel can generally be used in existing
  oil heating systems and diesel engines without
  modification, and it can be distributed through
  existing diesel fuel pumps. This is an advantage
  over other alternative fuels, which can be
  expensive to use initially due to high cost of
  equipment modifications or new purchases.
  Biodiesel provides almost the same energy per
  gallon as petroleum diesel.
• The lubricating effects of the biodiesel may
  extend the lifetime of engines.

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What are the disadvantages of Biodiesel fuel?

• Biodiesel is currently about one and a half times
  more expensive than petroleum diesel fuel. Part
  of this cost is because the most common source of
  oil is the soybean, which only is only 20 oil.
  However, the costs of biodiesel can be reduced by
  making biodiesel from recycled cooking oils
  rather than from new soy beans, or by making it
  from plant matter with higher oil content.
• It takes energy to produce biodiesel fuel from
  soy crops, including the energy of sowing,
  fertilizing and harvesting.
• Biodiesel fuel can damage rubber hoses in some
  engines, particularly in cars built before 1994.
  You should check with the manufacturer before
  using biodiesel to see if you need to replace any
  hoses or rubber seals.

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Disadvantages (continued)

• Biodiesel cleans the dirt from the engine. This
  dirt then collects in the fuel filter, which can
  clog it. Clogging occurs most often when
  biodiesel is first used after a period of
  operation with petroleum diesel, so filters
  should be changed after the first several hours
  of biodiesel use.
• Biodiesel is not distributed as widely as
  traditional, petroleum diesel, but distribution
  infrastructure is improving.
• Soybean oil-based biodiesel will start to
  crystallize at around 0 degrees C.

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Biodiesel ProductionNBB Predicts Significant
Capacity Growth Through 2008 (over 450
increase).Production Capacity Using (or
Projecting) Soybean Oil as Primary Feedstock
965 MgalProduction Capacity Using (or
Projecting) Multi-Feedstock Capability 552
MgalSoy Oil Demand Approaching 1 Billion
Gallons per Year While Soy Oil Supply Potentially
Limited to Less than 100 Mgpy Due to Crush
Capacity and Meal Outlets Some Crush Plants
also produce biodiesel
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Soybean Meal Use(78,600 Mlbs Produced, 15
Exported)
U.S. Soybean Meal Use By Livestock 2004 U.S. Soybean Meal Use By Livestock 2004
Poultry 33,800 Million lbs (50.6)
Swine 17,400 Million lbs (26)
Beef 7,600 Million lbs (11.4)
Dairy 4,000 Million lbs (6)
Pet Food 2,200 Million lbs (3.3)
Other 1,800 Million lbs (2.7)
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Soybean Production TrendsUSDA Predicts Slight
Growth (lt1) in Poultry and Swine Domestic
Markets Through 2008.USB Predicts Decrease in
Soybean Meal Exports Due to Increase in S.A.
ExportsA Significant Number of Major Crush
Facilities Have Entered the Biodiesel
BusinessSoybean Oil Prices are Predicted to
Climb Steadily due to Stiff Competition Between
Biodiesel and Food Industries
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Soybean Oil Prices(Crude Degummed Gulf Coast)
2003
2006
2005
2004
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SourcesUnited Stated Department of
AgricultureUnited Soybean BoardNational
Biodiesel BoardNational Oilseed Producer's
AssociationChicago Board of TradeIowa State
University Extension OfficeUniversity of
Illinois at Urbana-ChampaignJacobsen Report