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Sustainable Biofuels in Transport Biodiesel – a fuel for the future

Sustainable Biofuels in Transport Biodiesel – a fuel for the future. Andrew Monaghan, Commercial Director – UK Renewable Fuels Ltd. Introduction MerseyTravel biodiesel bus initiative ReFuel – about us Biodiesel – what it is how it’s made how it compares

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Sustainable Biofuels in Transport Biodiesel – a fuel for the future

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  1. Sustainable Biofuels in Transport Biodiesel – a fuel for the future Andrew Monaghan, Commercial Director – UK Renewable Fuels Ltd

  2. Introduction MerseyTravel biodiesel bus initiative ReFuel – about us Biodiesel – what it is how it’s made how it compares Environmental benefits Economic benefits: Transport / CHP Case Study: bio versus diesel – a 6 month trial Looking ahead: why biodiesel?

  3. The Merseytravel Biodiesel bus initiative The proposal: • A partnership with Stagecoach bus company • Trial for 1 year with 6 single-decker buses • 100% biodiesel supplied by ReFuel • Scheduled to commence end May/June • Biodiesel made from 100% waste vegetable oil • Trial will monitor performance

  4. ReFuel Energy • Merseyside-based biodiesel manufacturer • Produce entirely from WVO (Waste Vegetable Oil) • Capacity several million litres per year • Nationwide customer base • All fuel tested and certified to EN14214

  5. What is biodiesel? • A form of diesel processed from non-mineral oil • Made by TRANSESTERIFICATION process • Proven technology • Burns more cleanly than fossil diesel • Renewable and sustainable • Biodegradable • Non-toxic • Non-carcinogenic

  6. TRANSESTERIFICATION

  7. Where is it used? • Forecourt diesel typically contains 5% biodiesel! • Commercial transport fleets with own fuel storage • (Blends up to 100% biodiesel, typically 30%) • ‘Recycling partnerships’ (eg food processing) • Commercial Heating & Power (CHP) • (Offices, factories and processes)

  8. Biodiesel: Combined Heat & Power (CHP) • Government obligation for renewable • energy sourcing (OFGEN) • Issue ROCs (Renewable Obligation Certificates) • Catalyst must be bio-ethanol! • typical 10,000 MWh generator for CHP* • gives (currently) 20,000 ROCS • Value approx. £900,000 • Can make net cost approx. 50% cost of fossil diesel! (*actual will vary depending on efficiency of generator)

  9. Benefits of WVO-based biodiesel • Recycles a waste material • Avoids need for disposal • Does not compete with land for food use • Lower lifetime carbon than virgin oils • Reduces dependence on non-renewable • fossil fuels

  10. Sourcing WVO • Collection agents • Direct from (large) producers • i.e Food processing • ‘Tolling’ (re-supply to producer as biodiesel)

  11. The Environmental savings (versus fossil diesel) • 78% less lifecycle CO2 * • 50% less carbon monoxide • zero sulphur dioxide (acid rain) • 20% less particulate emissions (tailpipe) • biodegradable • non toxic • (*Govt figs – WVO assumed even greater!)

  12. The Cost savings (versus fossil diesel) • Government support with RTFC’s & 20% duty • relief (from April 2010 on WVO biodiesel only) • TYPICAL saving 10p / litre excl. VAT (B100) • Average HGV vehicle: 48,000 litres p.a ! • Some additional servicing costs (25 – 50%)

  13. Case Study: Fleet operator – May/Sept 2009 • B50 (50% biodiesel) • 2 HGV’s over 6 months • Control: same vehicles/drivers/routes on • fossil diesel in first 3 months • total 35,000 km on each of bio / fossil • Mpg (average): • Biodiesel 8.75 mpg • Fossil 8.8 mpg • Fuel cost: B50 bio blend 4.7p/litre lower Illustration only: not trial company

  14. Case Study: Cost/Carbon savings PER VEHICLE PER YEAR • 85,000 miles p.a per vehicle • 9660 gallons fuel • CO2 diesel 115 tonnes • biodiesel B50 65 tonnes • Saving: 50 tonnes p.a per vehicle! • Cost saving: £2197 per vehicle* • This customer ran a fleet of 96 vehicles!!! Illustration only: not trial company (*excludes additional servicing costs: varies by engine manufacturer, typical £800

  15. Back to the biodiesel bus trial…… • 6 buses on 2 routes • Est. 140,000 litres over 12 month trial • Carbon saving: 340 tonnes p.a (est) • Cost saving £14,500 p.a (est) • Trial starts next month….

  16. Conclusion • Biodiesel offers significant carbon savings • … and cost savings too • Biodiesel from WVO is more beneficial than using virgin oils • UK obligation to reduce dependence on non-renewable fuels • Rebate mechanism uses duty, RTFC’s (transport) and ROC’s (CHP) • WVO biodiesel is sustainable, renewable and e-friendly • Local transport using sustainable fuels saves carbon • …..and sets a great example

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