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Biodiesel – General Definitions

Biodiesel – General Definitions. Biodiesel is a domestic, renewable fuel for diesel engines derived from fats and oils such as soybeans and animal fats. Biodiesel can be used in any concentration with petroleum-based diesel fuel in existing diesel engines with little or no modification.

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Biodiesel – General Definitions

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  1. Biodiesel – General Definitions • Biodiesel is a domestic, renewable fuel for diesel engines derived from fats and oils such as soybeans and animal fats. • Biodiesel can be used in any concentration with petroleum-based diesel fuel in existing diesel engines with little or no modification. • Biodiesel is not raw vegetable oil! • Biodiesel must be produced by a chemical process that removes glycerin from the oil. Biodiesel blend, n. -- a blend of biodiesel fuel meeting ASTM D 6751 with petroleum-based diesel fuel designated BXX, where XX is the volume percent of biodiesel.

  2. Petroleum (Liquid Fuel) Picture • We currently import over 50% of our petroleum needs - 70% by 2025. • Once roughly half the oil has been extracted, it becomes harder – and more expensive – to get at the remainder. • The key date is not when the oil runs out, but when production peaks, meaning supplies decline. The peak may come by about 2020. Proved Oil Reserves 2003

  3. Biodiesel Properties & Attributes • B100 - Energy content of #1, 8% less than #2 • High Cetane (avg. over 50) • Sulfur free • Cold flow - B2 the same as #2 petroleum diesel • Energy Balance (3.24 to 1) • Biodegradable and Non-Toxic

  4. Emissions Reductions with Biodiesel Blends Emission Type B100 B20 B2 Total Unburned Hydrocarbons -67% -20% -2.2% Carbon Monoxide -48% -12% -1.3% Particulate Matter -47% -12% -1.3% Oxides of Nitrogen (NOX) +10% + 2%*** +0.2% “When considering the combined benefit of all these reductions, the small increase in nitrogen oxides (NOx) should not overshadow the net environmental gain with biodiesel use in North Carolina. Biodiesel is a viable part of the overall effort to improve our air quality.” B. Keith Overcash, PE, NC DE&NR, DAQ

  5. Biodiesel Production 100 lbs. of fat or oil + 10 lbs. methanol • catalyst  100 lbs. biodiesel (B100) + 10 lbs. of glycerin Soybeans (90-95% of current market), Waste Greases, Edible & Inedible Tallow, Cottonseed, Sunflower, Canola/Rapeseed B100 Fuel Survey Results

  6. Distribution Outlets, June 2005

  7. ASTM D 6751– Biodiesel Fuel Specification • Fuel quality is of the utmost concern and importance to the biodiesel industry. • ASTM D 6751 is the specification for biodiesel fuels irrespective of the feedstock source and/or processing method. • Standard ensures safe operationin a compression ignition engine.

  8. Many Engine Manufacturers Support Biodiesel Blends: John Deere Caterpillar Cummins Detroit Diesel International Testimonials for each of these companies available on the NBB website - www.biodiesel.org B100 Must Meet ASTM D6751 !!! Most OEM HQ’s have B20 experience: Won’t void warranty, but remember OEM’s don’t make fuel and therefore they won’t warranty fuel. Problems caused by the fuel are the responsibility of the fuel supplier. Biodiesel & Original Equipment Manufacturers (OEMs)

  9. Federal Biodiesel Tax Incentive American Jobs Creation Act 2004 (Biodiesel Tax Exemption) • Federal Excise Tax Credit through 12/31/2011 • 1¢ per percent of “agri-biodiesel” blended into diesel fuel • Applies to first-use vegetable oils and animal fats • ½ ¢ per percent of other biodiesel blended into diesel fuel • Credit taken at the blender level

  10. Biodiesel: Looking Forward • Current Potential: 1.7 Billion gal/year • 5.5% of national on-hwy. Demand • Near-Term Potential: (2015): 3.5 Billion • 6.8% of national on-hwy. demand in 2015 • Long-Term Potential: (2030): 10 Billion

  11. Educational Resources for Biodiesel • BEN: “Biodiesel Education Network” • Web-based resource specifically for petroleum marketers • Partnership between NBB/PMAA www.pmaa.org www.biodiesel.org

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