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Alternative Transportation Fuels. Maria Tome, P.E. State of Hawaii Department of Business, Economic Development, and Tourism Strategic Industries Division. Overview. Hawaii's Transportation Fuel Demand Alternative Fuels Alternative Fueled Vehicles Incentives. Hawaii's Gasoline Use.
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Alternative Transportation Fuels Maria Tome, P.E. State of HawaiiDepartment of Business, Economic Development, and TourismStrategic Industries Division
Overview • Hawaii's Transportation Fuel Demand • Alternative Fuels • Alternative Fueled Vehicles • Incentives
Gasoline Demand per YearActual (1983-2003) and Projected (2004-2015)
Alternative Fuels • Alcohol Fuels • Ethanol • Methanol • Biodiesel • Electricity • Hydrogen • LPG • Natural Gas (CNG, LNG) • Others under development (P-series, diesohol)
Most Significant Alternative Fuels for Hawaii √ Alcohol Fuels • Ethanol • Methanol Biodiesel Hydrogen / Fuel Cell / Electricity LPG Natural Gas (CNG, LNG) Others under development (P-series, e-diesel) Blending to begin in 2006; flex-fuel vehicles in use √ Potentially significant; under development √ √ 30 years of local use but facing challenges If LNG available, this could change
Most Significant Alternative Fuels for Hawaii • Ethanol • LPG (Propane) • Biodiesel • Hydrogen / Fuel Cell / Electricity
Ethanol is also known as ethyl alcohol. It’s the alcohol in beer, wine, rum, vodka, etc. Ethanol was used to fuel some of the first automobiles. Fuel Ethanol
On the Mainland, independent gasoline stations were generally first to offer gasoline with up to 10% ethanol (E10; formerly known as gasohol). 1970s-1980s: Used as a gasoline extender 1980s: An octane booster (raises octane 2-3 points) 1990s: Used as an oxygenate for clean air(Adds oxygen & reduces emissions of carbon monoxide) Fuel Ethanol
Projected US Ethanol Demand BN GLN = billion gallons
Today, ethanol-blended gasoline is available in most states. All of Minnesota's gasoline contains 10% ethanol Minneapolis/Saint Paul, 1995 Statewide, 1997 California, New York, and Connecticut switched completely at the end of 2003 and are now using ethanol rather than MTBE. Fuel Ethanol
Hawaii’s Ethanol Potentialfrom Stillwater Report • Ethanol could be produced in Hawaii at a large scale (up to 90 million gallons per year) andat a competitive cost ($1.25 -$1.30 per gallon). • Waste biomass is better used for electricityproduction than for ethanol production, since Hawaii's electricity is relatively expensive. • Ethanol blending provides cost advantagesto blenders. • The production of ethanol and generation of power from sugarcane is recommended.
Biomass to Ethanol… or Electricity? EBITDA = Earnings Before Income Tax, Depreciation and Amortization
According to ASTM specification D4814, Hawaii gasoline may not have a RVP (Reid vapor pressure) greater than 11.5 pounds per square inch (psi). Gasoline testing report in 1989 showed that vapor pressures ranged from 9.7 to 11.4 psi. Adding ethanol to gasoline near the 11.5 psi limit would result in fuel that did not conform to specifications. To successfully blend ethanol in Hawaii, a suitable blendstock is needed. Bottom line: in Hawaii, refiner participation is necessary. Why no fuel ethanol in Hawaii?
13.0 12.5 Upper curve: If gasoline with an RVP of 11.5 psi has ethanol added to it, the blend will have a (too) high RVP. 12.0 RVP (psi) 11.5 11.0 Lower curve: If gasoline with an RVP of 10.3 psi has ethanol added to it, the blend will have an acceptable RVP. 10.5 10.0 0 2 4 6 8 10 12 RVP = Reid Vapor Pressure. Vol % Ethanol Vapor Pressure Hawaii’s gasoline (including ethanol blends) must have an RVP of 11.5 or less.
Considerations & Recommendationsfrom Stillwater Report • For each gallon of ethanol, local refiners will lose market share and be required to modify operations and construct facilities. • Such cost increases are offset… the price per gallon at the rack will not increase. • The evaluation of the production of Ethyl Tertiary Butyl Ether (ETBE) using locally produced ethanol and isobutylene from the local refineries is recommended.
Hawaii Gasoline to Contain 10% Ethanol Beginning in April of 2006, at least 85 out of every 100 gallons of gasoline sold in the State for use in motor vehicles shall contain 10% ethanol by volume. HRS §486J(10), HAR 15-35
Ethanol-based Alternative Fuel: E85 • Gasoline with ethanol is still gasoline. It's not an alternative fuel. • An increasing number of new vehicles can use E85 (15% gasoline, 85% ethanol), which is an alternative fuel.
Onroad Alternative Fuel and Hybrid Vehicles in the U.S., 2003 4 million on the road in the U.S.
Model Year Federal Fleets State Fleets Fuel Providers 1997 25% 10% 50% 1998 33% 15% 70% 1999 50% 25% 90% 2000 75% 50% 90% 2001+ 75% 75% 90% State, Federal, and Fuel Provider Fleets are Required to Purchase AFVs Energy Policy Act of 1992 (EPACT) alternative fueled vehicle (AFV) purchase requirements
Biodiesel • Produced locally (Maui & Oahu) from used cooking oil • Can also be produced from oilseed crops • For use in diesel engines
Biodiesel • Can be used pure or blended with regular diesel. • B100=100% biodiesel; • B20 = 20% biodiesel, 80% petro diesel; • B5 = 5% biodiesel, 95% petro diesel; • B2* = 2% biodiesel, 98% petro diesel; • Can be added to regular diesel to improve cetane rating and reduce engine wear. • Burns cleaner; produces less soot, smoke, and cancer-causing emissions than diesel; smells different. * Minnesota has a B2 mandate, triggered by 2 requirements:1) 8 million gallons of biodiesel production capacity; AND2) No earlier than June 30, 2005.
Biodiesel Emissions http://www.epa.gov/otaq/models/analysis/biodsl/p02001.pdf
Incentives • Federal ethanol credit: 51¢ per gallon provided to blender • Federal biodiesel credit: $.50 or $1.00 per gallon to producer • Federal small ethanol producer credit: 10¢/gallon to producer • Federal Commodity Credit Corp: credits for new production of ethanol and biodiesel (amounts vary; approx. $100 million nationwide) • State credit for ethanol facility: up to $4.5 million per facility • State highway taxes reduced for alternate fuels • State 4% retail excise tax exemption for gasoline with 10% ethanol • Electric vehicles with special license plates are allowed free parking at meters; HOV access • Counties provide highway tax reductions or exemptions for alternative fuels
Summary • Transportation Fuel Demand is Projected to Increase • Alternative Fuels and Vehicles are Available • Ethanol • LPG • Biodiesel • Hydrogen / Fuel Cell / Electricity • Incentives are Available
Internet Resources • Alternative Fuels Data Center (national) www.eere.energy.gov/afdc • Hawaii's Ethanol Program new-fuel.com • Biodiesel www.biodiesel.org • Hawaii State Energy Office www.hawaii.gov/dbedt/ert/