Biodiesel Benefits, Issues, & Opportunities

1. BiodieselBenefits, Issues, & Opportunities Presentation to the Special Libraries Association Seattle, WA June 17, 2008 Richard Nelson Kansas State University & National Biodiesel Board rnelson@ksu.edu

2. Biodiesel Defined Biodiesel, n. -- a fuel comprised of mono-alkyl esters of long chain fatty acids derived from vegetable oils or animal fats, designated B100, and meeting the requirements of ASTM D 6751. Official IRS and EPA definition – goes to fuel quality.

3. General Concepts • Biodiesel is a domestic, renewable fuel for diesel engines derived from fats and oils such as soybeans and animal fats. • Biodiesel can be easily used in existing diesel engines with little or no modification. • Biodiesel is not raw vegetable 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.

4. Each biodiesel feedstock varies by its free fatty acid content and the different proportions of fatty acids found in each feedstock influence some biodiesel fuel properties Degree of saturation Cold flow properties Cetane number Biodiesel Feedstocks

6. Transesterfication Glycerin Refining Vegetable Oil / Animal Fat/Waste Grease Crude Biodiesel Methanol + Catalyst Refining Biodiesel Crude Glycerin Methanol Recovery Glycerin

8. Biodiesel Attributes • Integrates into existing petroleum infrastructure; “pour and go” • High Cetane (>50 vs 42) • High Lubricity • 2% blend biodiesel increases lubricity by up to 65% • BTU Content (128,000 BTU/gal vs 139,000) • Cold Flow (3-10o F > for soy-based B20) • Flash Point (a minimum 260oF vs 150oF) • Virtually Zero Sulfur • Meets 2006 ULSD rule

9. Biodiesel lowers emissions

10. Biodiesel Fuel Markets • EPACT • REGULATED FLEETS • Federal • State • Selected Utilities • MARINE • Recreational • Tour Boats • Environmentally • Sensitive Areas Home Heating • PREMIUM DIESEL • Lubricity Enhancement • Conductivity Improver • ULSD Sulfur Free Blend Stock

11. US Biodiesel Demand 450 250 Biodiesel Tax Incentive Changes to EPACT Bioenergy Program 75 MGY 5 MGY

12. One Driver: World Transport Vehicle Trends – DieselDirect Impact on Biofuels Production and Demand ! • Global share of diesel market has increase 40% in the last 5 years • Conditions for further expansion of diesel look right: • Global focus on CO2 & Energy Security • High energy prices (diesel ~33% more efficient versus gasoline) • Diesel technology has come of age (not dirty diesels anymore) Where are the oilseed feedstocks going to come from to “fuel” this increase?

13. Fascination with Biofuels – Govt. Mandates • US – Renewable Fuels Standard; 35 billion gallons (133 billion liters) by 2022 (20% of projected total consumption) • EU – 5.75% by 2010; 10% by 2020; 25% by 2030 • China – 5% biodiesel • China has said it aims to use 200,000 tons of biodiesel by 2010 and 2 million tons (2,057 billion liters) by 2020. Why? Energy Security & “Peak Oil” & Climate Change How will these intersect with market forces, where exactly will the feedstocks come from, and at what price?

14. New Renewable Fuel Standard Requirements • Energy Independence and Security Act of 2007 • Not just 10% ethanol in conventional gasoline

15. Biofuels Resources – Land Use • Limited “Crop” Acreage • Limited increase in land space and product yields • Sustainability Concerns • Improved yields, less inputs, grow on marginal lands (?) • Increasing demand/production will put pressure on food and water supplies, prices, and sustainability American Grassland – excellent carbon sink

16. American ‘Dust Bowl’ – 1930s 3 Story Building

18. Food & Fuel & Feed Oil & Agriculture just like Diamonds or Coffee are commodity markets supply and demand effect pricing in a given market, the lowest cost producer will always win Many factors affect the markets – Currency • Policy Trading • Technology Interest rates • Consumers Trends• Emerging markets There will be continued growth in renewable fuels

19. Some Perspective – Petroleum & Agriculture • The oilseed and fat market is only a small fraction of the oil industry • IF ALL DOMESTIC FEEDSTOCKS WERE CONVERTED TO FUEL, ONLY 8% OF DIESEL COULD BE REPLACED • IF ALL GLOBAL FEEDSTOCKS WERE CONVERTED TO DIESEL, ONLY 10 % OF DISTILLATE COULD BE SUBSTITUTED • However, the entire world would go hungry

22. Biodiesel and Diesel Particulate Matter/Elemental Carbon Emissions MSHA compliance samples, EC Standard D2 100% Biodiesel 500 400 300 200 100 0 MSHA Target for UG Mines (123 EC) Elemental Carbon, EC, µg/m3 2002 2003 2004 2005 2006

23. Concerns of Fleet Managers about Biodiesel Fuel Quality • Engine Warranties • Performance in Cold Weather • Storage and Handling • Fuel Contamination • Filter Plugging • Degradation of Engine Parts • Fuel Stability • Price • Others?

24. ASTM D 6751-07b Specifications (Full)

25. Supply Chain Management • Preserve the quality of the finished fuel • Hand-offs can cause the “biodiesel ball to be fumbled”

26. Accredited Producer Focus A system for monitoring the production of biodiesel to the ASTM D 6751 specification. Sampling Testing Storage Retain Samples Shipping Certified Marketer Focus A system for the handling and distribution of biodiesel that maintains the fuel properties at the ASTM D 6751 specification. Sampling Testing Storage Retain Samples Blending Shipping

27. Actual biodiesel COA from a distributor to the final end-user If only I’d checked the COA for ASTM!

28. OEMs Positions on Biodiesel Engine Warrantees: • Parts and Workmanship • OEM’s Don’t Make Fuel • OEM’s Don’t Warrantee Fuel • As with diesel--problems caused by the fuel are the responsibility of the fuel supplier OEMs want to see additional experience in the field

30. Educational Resources www.biodiesel.org