Biofuels

1. Biofuels Kenneth R. Szulczyk February 15, 2005

2. Main Benefit of Biofuel • Mitigates the use of fossil fuels and the release of new GHG into the atmosphere • Recycles carbon dioxide from the atmosphere [6]

3. Recycling Carbon Dioxide

4. Other Benefits • Increase prices and income for the agricultural sector [6] • Contribute to energy security, which reduces the reliance on the Middle East for petroleum [6] • Help protect a country from crude oil price volatility [8] • Would allow the U.S. to decrease its military presence in the Middle East [5] • Reduce harmful emissions like sulfur dioxide emissions [6]

5. Main Biofuels • Substitutes for gasoline • Methanol aka grain alcohol • Ethanol • Substitute for diesel • Biodiesel

6. Why this mix? • All fuels can be created from the agricultural sector • All fuels are substitutes for fossil fuels used in transportation • Biodiesel uses methanol or ethanol as an input. • Gasoline and diesel are simultaneously produced from crude oil

7. Crude oil production • Both gasoline and diesel are produced simultaneously from fossil fuels. Source:American Petroleum Institute (www.api.org).

8. Methanol • Production • Convert methane gas into methanol • Sources of methane • Natural gas (90% methane) • Anaerobic decomposition • Landfills • Animals • Manure • Kitchen wastes and soil sludge [10] • Other sources • Dry wood feed stocks [11]

9. Methanol Continued • Agricultural sector is a significant emitter of methane gas • Methane has a GWP of 21 • 1 kg of methane is equivalent to 21 kg of CO2 in trapping heat in the atmosphere (McCarl’s lecture on climatic change)

10. Methanol Vehicle Emissions • Emission are for a light duty vehicle • Emissions depend on vehicle and engine specifications • Does not include emissions for growing and manufacturing of fuel

11. Economic Price • Gasoline • 124,800 BTU per gallon [11] • $1.909 per gallon (Feb. 13, 2005 EIA) • Methanol • 64,500 BTU per gallon [11] • 51.7% as “efficient” • Price has to be $0.987 = 1.909*0.517 • Can blend gasoline and methanol

12. Producing Methanol • No cost analysis is provided • May be expensive to collect methane • Collect manure and waste • Could collect emissions from animals if in a structure like a barn • Could have large capital costs. • Methanex • Produces methanol from natural gas • Wholesale price is $0.95 per gallon

13. Methanol • Note: • Methane does not have to be converted into methanol • Methane can power electric generators [10] • Joetsu City, Japan [10] • 170 kL/day of septic tank sludge [10] • 70 kL/day of night soil [10] • 8 tons/day of kitchen waste [10] • Generates 600-1100 KWH per day [10] • Depends which time of year [10]

14. Problems with Methanol • A car will have to be fitted with a new fuel system to run M100 • Most cars can operate up to M15 with no problems • Cars may need bigger fuel tanks • Larger fuel tanks with contents will decrease MPG.

15. Making Ethanol • Two methods • Fermentation of sugars and starches • USA – Corn • Brazil – Sugar cane • 18.5 to 19.8 gallons per ton for sugar cane for regular fermentation [8] • Lignocellulosic biomass [9] • Theoretical • Uses low grade biomass • 75 gallons of ethanol per ton of biomass [9] • Bermudagrass, tall Fescue, Switchgrass, etc [9]

16. Ethanol Vehicle Emissions • E10 can cause -0.5% decrease for pre-1986 vehicles and +5% • increase for post-1986 vehicles [7] • Emission are for a light duty vehicle • Emissions depend on vehicle and engine specifications • Does not include emissions for growing and manufacturing of fuel

17. Economic Price • Gasoline • 124,800 BTU per gallon [11] • $1.909 per gallon (Feb. 13, 2005 EIA) • Ethanol • 76,500 BTU per gallon [11] • 61.3% as “efficient” • Price has to be $1.170 = $1.909*0.613 • Can blend gasoline and ethanol.

18. Production costs Lignocellulosic biomass

19. Production costs continued • Theoretical-Lignocellulosic biomass • No facility has been constructed yet • Does not include • Cost of biomass • 666,667 tons of biomass • 75 gallons per ton [9] • Transportation of biomass to facility • 39,216 truckloads to deliver biomass • Truck capacity is 17 dry tons [9]

20. Brazil-Ethanol Production • Brazil produces 3.52 billion gallons of ethanol [3] • 685 distilleries [8] • Produced from sugar cane • Labor intensive industry [8] • Sugar cane yields 75 tons per hectare [8] • 70-75 liters of Ethanol is produced per ton [8] • U.S. produces about 1.5 billion gallons [12]

21. Brazil continued • Economics • Annexed distillery • A mill produces both sugar and ethanol and can easily switch between both products[8] • Output mix is determined by sugar world price [8] • Possible Inefficiency • Brazil has not substituted biodiesel for diesel [8] • May have to export some gasoline [8]

22. Problems with Ethanol • E10 and E20 have a higher Reid vapor pressure, so the fuels evaporate faster than E0 [7]. • Ethanol and gasoline blends can cause a 100% to 200% increase in formaldehyde emissions. • Emissions up to 700% have been recorded[7]. • Ethanol enriched gasoline can separate out in the presence of water [7] • Enhances the corrosion of metals [7] • Can degrade various metals, rubbers, and plastics in cars, gas station storage tanks, and pumps [7].

23. Problems Continued • Has lower interfacial tension, so it can permeate through smaller pores and cracks [7] • Fuel can leak through the gas lines, seals, etc. and into the ground [7] • Can dissolve hazardous components of gasoline like benzene, toluene, xylenes, etc [7]. • Can contaminate the water supply [7] • Similar to Methyl tertiary butyl ether (MTBE)

24. Making Biodiesel • Can be made from any vegetable oil • Soybean oil • 75% of the U.S. oil production [1] • 1,939.6 million gallons [1] • Corn oil • Second most produced oil in the U.S. [1] • 269.6 million gallons [1] • Animal fats from tallow or lard [1] • Yellow grease - cheap source from restaurants [1] • 341.9 million gallons [1]

25. Biodiesel Vehicle Emissions *Depends on engine. Some engines can actually reduce NOX emissions for biodiesel [2]

26. Emissions continued • Emissions depend on engine • Some engines can have lower NOX emissions for biodiesel. • 2 stroke • Tend to be worse [2] • 4 stroke • Tend to have better emissions [2] • B100 causes 28.2 higher NOX emissions for Navistar HEUI engine [2]

27. Making Biodiesel Continued • Uses methanol or ethanol as an input • Also produces glycerol as a byproduct • Glycerol is used in pharmaceuticals, cosmetics, paints, toothpaste, and other commercial uses [1] • Glycerol is valued at $7.50 per gallon [2]

28. Economic Price • Diesel #2 • 131,295 BTU per gallon [2] • $1.983 per gallon (Feb. 13, 2005 EIA) • Biodiesel • 118,166 BTU per gallon [2] • 90% as “efficient” • Price has to be $1.785 = $1.983*0.9 • Note: • Studies indicate about 5-6% decrease in MPG [2] • Can blend diesel and biodiesel

29. Biodiesel Production Costs

30. Economically Efficient • Soymor is a company that is planning to build a 30 million gallon per year facility • Price of biodiesel has to be $0.62 per gallon • Have to be careful • A large industry can influence the price of methanol, ethanol, glycerol and vegetable oils.

31. Problems and Benefits • Biodiesel may cause engine problems, because it may eat and degrade various seals that lead to injector and fuel pump failures [2] • Has a higher cloud point around 00 C [2] • Cloud point-when fuel filter clogs • Much higher for saturated fats [2] • Most engine manufacturers have not extended warranties for using biodiesel [2] • Fuel oxidation – lower storage life [2] • Oxidation leads to hydroperoxides, which can form insoluble gums [2] • Improves engine lubrication, extending engine life [2] • Soygold • Ag Environmental Products LLC

32. Future • Use bio-engineering to genetically altered crops [1] • Increase oil yield in plants • Currently soybeans have 18.5% of its yield in oil [1] • Grow other crops • Rapeseed Oil • Used to make biodiesel in Europe • Poisonous plant • Trivial-which popular cooking oil is derived from the oils of this genetically altered rapeseed plant?

33. References • Duffield, James, Hosein Shapouri, Michael Graboski, Robert McCormick, and Richard Wilson, Biodiesel development: New markets for conventional and genetically modified agricultural products, ERS publication, September 1998. • Graboski, Michael S. and Robert L. McCormick, Combustion of fat and vegetable oil derived fuels in diesel engines, Prog. Energy Combustion Science, Volume 24, 1998, pp. 125-164. • Gutierres, Marcelo, Brazil Triples Alcohol Exports. Blame It on the US, Brazzil Magazine, Thursday, 13 January 2005, http://brazzilmag.com/content/view/1130/1/ • International Energy Agency, Automotive Fuels for the Future-The Search for Alternatives, OECD, 2000 • Lugar, Richard G. and R. James Woolsey, The new petroleum, Foreign affairs, Volume 78 No 1, 1999, 88-102. • McCarl, Bruce A., Dhazn Gillig, Heng-Chi Lee, Mahmoud El-Halwagi, Xiaoyun Qin, and Gerald C. Cornforth, Chapter 19, Potential for Biofuel-based Greenhouse Gas Emission Mitigation: Rationale and Potential • Nevin, Robert K., Ethanol in gasoline: environmental impacts and sustainability review article, Renewable and Sustainable Energy Reviews, Article in Press. • Rask, Kevin, The Social Costs of Ethanol Production in Brazil: 1978-1987, Economic Development and Cultural Change, Volume 43 number 3, April 1995, pp. 627-649. • Tembo, Gelson, Francis M. Epplin, and Raymond L. Huhnke, Integrative Investment Appraisal of a Lignocellulosic Biomass-to-Ethanol Industry, Journal of Agricultural and Resource Economics, Volume 28 number 3, December 2003, pp. 611-633. • Yoneyama, Y. and K. Takemo, Co-digestion of domestic kitchen waste and night soil sludge in a full-scale sludge treatment plant, Water Science and Technology, Volume 45 Number 10, 2002, pp. 218-286. • Zerbe, John I., Liquid fuels from wood-ethanol, methanol, diesel. World Resource Review, Volume 3 number 4, (year published ?) pp. 406-414. • Rask, Kevin N., Clean air and renewable fuels: the market for fuel ethanol in the US from 1984 to 1993, Energy Economics, 1998, 20, 325-345.