BiodieselBiodiesel Tim McLenegan Tim Whitacre Logan Kinde Ryan Gleim Jesse Ralston Eric Amendt Nick...

BiodieselBiodiesel

Tim McLeneganTim WhitacreLogan KindeRyan GleimJesse RalstonEric AmendtNick Layshot

November 12, 2004 AD

A Little HistoryA Little HistoryA Little HistoryA Little History

• Invented by Rudolph Diesel in 1892Invented by Rudolph Diesel in 1892

• Increased efficiency over Steam Increased efficiency over Steam Engines at 75%Engines at 75%

• Original Biodiesel engineOriginal Biodiesel engine

• Ran on Peanut OilRan on Peanut Oil

• 1920’s Diesels altered to accept 1920’s Diesels altered to accept fossil fuelsfossil fuels

How it worksHow it worksHow it worksHow it works

• Diesel Engines run on thicker fuelDiesel Engines run on thicker fuel

• Uses compression to ignite fuel and airUses compression to ignite fuel and air

• Non-renewable fossil fuel normally usedNon-renewable fossil fuel normally used

How It WorksHow It WorksHow It WorksHow It Works

• BiodieselBiodiesel– RenewableRenewable– Environmentally FriendlyEnvironmentally Friendly

•biodegradablebiodegradable

•fewer emissionsfewer emissions

– Reduce Dependency on Foreign OilReduce Dependency on Foreign Oil– Little to no engine modifications Little to no engine modifications

requiredrequired

How It WorksHow It WorksHow It WorksHow It Works

• Refined from plant oils or animal fatsRefined from plant oils or animal fats– crops such as soybean, rapeseed, canola, crops such as soybean, rapeseed, canola,

palm, cottonseed, sunflower, and peanut palm, cottonseed, sunflower, and peanut

• Unrefined oils may also be usedUnrefined oils may also be used– Ex. pure vegetable oilEx. pure vegetable oil– May require significant engine modificationsMay require significant engine modifications

• Most oil undergoes a series of chemical Most oil undergoes a series of chemical reactions to become fuel reactions to become fuel

It Runs On Soybean FuelIt Runs On Soybean FuelIt Runs On Soybean FuelIt Runs On Soybean Fuel

• Many different Fuels AvailableMany different Fuels Available

Affects on EnginesAffects on EnginesAffects on EnginesAffects on Engines

• increased engine lifeincreased engine life– acts as a solvent acts as a solvent – loosen deposits loosen deposits – contributes to an engine's lubricity contributes to an engine's lubricity

• safer safer – non-toxicnon-toxic– burns at a higher temperatureburns at a higher temperature

• Reduced emissionsReduced emissions• increase in NOx emissionsincrease in NOx emissions

EmissionsEmissionsEmissionsEmissions

Biodiesel EmissionsBiodiesel EmissionsBiodiesel EmissionsBiodiesel Emissions

• Biodiesel is only alternative fuel to have its Biodiesel is only alternative fuel to have its emissions results submitted to EPAemissions results submitted to EPA

• EPA did extensive research on biodieselEPA did extensive research on biodiesel– Tested with varying proportions of biodiesel and Tested with varying proportions of biodiesel and

petroleum dieselpetroleum diesel– Only tested heavy-duty highway engines (trucks, Only tested heavy-duty highway engines (trucks,

buses)buses)

• For all major pollutants, biodiesel is For all major pollutants, biodiesel is significantly cleaner than petrol. Dieselsignificantly cleaner than petrol. Diesel– NONOxx is an exception: saw increase in emissions is an exception: saw increase in emissions

Biodiesel EmissionsBiodiesel EmissionsBiodiesel EmissionsBiodiesel EmissionsEmission TypeEmission Type B100B100 B20B20

Total Unburned HydrocarbonsTotal Unburned Hydrocarbons ––67%67% ––20%20%

Carbon MonoxideCarbon Monoxide ––48%48% ––12%12%

Particulate MatterParticulate Matter ––47%47% ––1212

Nitrogen Oxides (NONitrogen Oxides (NOx)x) +10%+10% +2%+2%

SulfatesSulfates ––100%100% ––2020

PAH (Polycyclic Aromatic PAH (Polycyclic Aromatic Hydrocarbons)Hydrocarbons)

––80%80% ––13%13%

nPAH (nitrated PAHs)nPAH (nitrated PAHs) ––90%90% ––50%50%

Ozone potential of speciated HCOzone potential of speciated HC ––50%50% ––10%10%

Average emissions by heavy-duty highway engines

B100 = 100% biodieselB20 = 20% bio, 80% petroleum diesel

Reg

ulat

ed b

y E

PA


• For some engine/fuel combinations, NOFor some engine/fuel combinations, NOxx emissions actually decreasedemissions actually decreased– No consistent set of characteristics explain No consistent set of characteristics explain

why this was the casewhy this was the case

• Ways to reduce NOWays to reduce NOxx emissions emissions– For B20 fuels, use a petroleum diesel with For B20 fuels, use a petroleum diesel with

lower aromatic content can break evenlower aromatic content can break even– Treating diesel to get a higher cetane Treating diesel to get a higher cetane

number can decrease NOnumber can decrease NOxx emissions (but emissions (but raise cost of fuel)raise cost of fuel)

Real World ExamplesReal World ExamplesReal World ExamplesReal World Examples

Biodiesel Truck in Biodiesel Truck in YellowstoneYellowstoneBiodiesel Truck in Biodiesel Truck in YellowstoneYellowstone•Unaltered diesel pickup fueled by 100 percent rapeseed ethyl ester

•Truck driven over 92,600 miles without any major fuel related problems

•16.3 mpg average, or 1 mile per gallon less than diesel fuel

Source: http://www.nps.gov/renew/yellbio.htm

Biodiesel Truck in Biodiesel Truck in YellowstoneYellowstoneBiodiesel Truck in Biodiesel Truck in YellowstoneYellowstone

•Worried that french fry smell would attract bears

•Biodiesel is no more attractive to bears than diesel fuel

•Carbon monoxide (CO), total unburned hydrocarbons (HC), and oxides of nitrogen (NOX) were reduced by increasing the percentage of biodiesel

•Two winters showed that normal cold-weather diesel modifications were sufficient to enable use of biodiesel in cold weather

U.S. NavyU.S. NavyU.S. NavyU.S. Navy

•Process Navy’s used cooking oil into biodiesel

•Will use B20

•20% biodiesel 80% traditional diesel

•If successful, they will create small biodiesel facilities for use overseas

Source: http://www.biodiesel.org/pdf_files/backgrounder.PDF

Berkley Curbside Berkley Curbside RecyclingRecyclingBerkley Curbside Berkley Curbside RecyclingRecycling

•10 truck fleet

•33,000 pound diesel engine trucks

"All day, I smell french fries, which smell much better than diesel fumes."

"The trucks run smoothly and have more power.” -Dave Williamson, Recycling Operations Manager

Source: http://www.ecologycenter.org/recycling/biodiesel.html

Veggie VanVeggie VanVeggie VanVeggie Van

•Traveled 25,000 miles across the US during 1997 and 1998

•Powered on 100% biodiesel

•No modifications made to the diesel engine

Source: http://biodieselamerica.org/biosite/index.php?id=3,0,0,1,0,0

Residential Use (One Residential Use (One Example)Example)Residential Use (One Residential Use (One Example)Example)•1989 VW Jetta

•Uses biodiesel fuel made with recycled restaurant waste oil

•Made error that many new Biodiesel users make

•Need to change fuel filter twice in first 2000 miles

Biodiesel is a solvent and cleans out buildup in the engine

Biodiesel SourcesBiodiesel Sources

Raw Materials for Raw Materials for ProductionProductionRaw Materials for Raw Materials for ProductionProduction

• InputsInputs– Vegetable/Animal Fat Oil (Triglyceride)Vegetable/Animal Fat Oil (Triglyceride)– AlcoholAlcohol

• Methanol (used most often)Methanol (used most often)• EthanolEthanol

• CatalystCatalyst– Sodium Hydroxide (Lye)Sodium Hydroxide (Lye)– Potassium Hydroxide Potassium Hydroxide

• OutputsOutputs– BiodieselBiodiesel– GlycerolGlycerol

Note: 20% Alcohol can be extracted to be used Note: 20% Alcohol can be extracted to be used again again

Raw Materials (Triglyceride)Raw Materials (Triglyceride)Raw Materials (Triglyceride)Raw Materials (Triglyceride)

• Harvested Vegetable OilsHarvested Vegetable Oils– Rapeseed Oil (Canola)Rapeseed Oil (Canola)– Sunflower OilSunflower Oil– Palm OilPalm Oil– Soybean OilSoybean Oil– Corn OilCorn Oil

Raw Materials (Triglyceride)Raw Materials (Triglyceride)Cont.Cont.Raw Materials (Triglyceride)Raw Materials (Triglyceride)Cont.Cont.

• High-Oil Algae ResearchHigh-Oil Algae Research

• Used OilsUsed Oils– Fast Food OilsFast Food Oils– Restaurant OilsRestaurant Oils

• Animal FatsAnimal Fats

Rapeseed (Canola) OilRapeseed (Canola) OilRapeseed (Canola) OilRapeseed (Canola) Oil

• Well adapted to temperate regionsWell adapted to temperate regions– Cool temperatures promote growthCool temperatures promote growth– Can tolerate high temperaturesCan tolerate high temperatures

• Wide range of soilsWide range of soils

• Requires less fertilizer than soybeansRequires less fertilizer than soybeans

• Commonly produced in EuropeCommonly produced in Europe

Soybean OilSoybean OilSoybean OilSoybean Oil

• Most common source for Biodiesel in Most common source for Biodiesel in USAUSA

• High demand among US farmersHigh demand among US farmers– Increased production will lower costsIncreased production will lower costs– Decrease dependence on foreign energyDecrease dependence on foreign energy– High lubricity extends equipment lifeHigh lubricity extends equipment life

• Iowa, Indiana, and WisconsinIowa, Indiana, and Wisconsin

High-Oil AlgaeHigh-Oil AlgaeHigh-Oil AlgaeHigh-Oil Algae

• Current research suggests high yieldsCurrent research suggests high yields

• Extremely fast growth ratesExtremely fast growth rates

• Over 50% of biomass can be oilOver 50% of biomass can be oil

• Capable of producing enough Capable of producing enough Biodiesel to replaced petroleum used Biodiesel to replaced petroleum used for transportation in the United Statesfor transportation in the United States

http://www.unh.edu/p2/biodiesel/article_alge.html

Biodiesel ProductionBiodiesel ProductionBiodiesel ProductionBiodiesel Production

• The process of making biodieselThe process of making biodiesel

• Efficiencies of the processEfficiencies of the process

• By-productsBy-products

• Raw material costsRaw material costs

• Process costsProcess costs

• Price estimate at the pumpPrice estimate at the pump

TransesterificationTransesterificationTransesterificationTransesterification

• The most economical of three The most economical of three different ways to make biodiesel.different ways to make biodiesel.

• Separates out the glycerin in the Separates out the glycerin in the natural fat or oil.natural fat or oil.

• No waste products!!!No waste products!!!

The Biodiesel ProcessThe Biodiesel ProcessThe Biodiesel ProcessThe Biodiesel Process

Efficiency of the processEfficiency of the processEfficiency of the processEfficiency of the process

By-ProductsBy-ProductsBy-ProductsBy-Products

• GlycerinGlycerin– Can be refined further for use in soap Can be refined further for use in soap

productsproducts

• AlcoholAlcohol– Used again by the biodiesel processUsed again by the biodiesel process

• FertilizerFertilizer– Used by agricultureUsed by agriculture

Raw Material CostsRaw Material CostsRaw Material CostsRaw Material Costs

• Alcohol - $0.55 a gallon for MethanolAlcohol - $0.55 a gallon for Methanol

• Catalyst - $0.03 per gallon of biodieselCatalyst - $0.03 per gallon of biodiesel

• Feedstock for oilFeedstock for oil– Existing crops (Soybean, Rapeseed, etc.)Existing crops (Soybean, Rapeseed, etc.)

• $0.13 to $0.35 per pound$0.13 to $0.35 per pound

• 7.5 pounds per gallon of oil7.5 pounds per gallon of oil

• $0.97 to $2.63 per gallon of oil$0.97 to $2.63 per gallon of oil

– Algae - $0.33 per gallon of oilAlgae - $0.33 per gallon of oil

Process CostsProcess CostsProcess CostsProcess Costs

• What costs are there?What costs are there?– Capital costsCapital costs– Operating costsOperating costs

• Electricity, Steam, WaterElectricity, Steam, Water• MaintenanceMaintenance• InsuranceInsurance

– Sales and AdministrationSales and Administration

• Total processing costTotal processing cost– Anywhere from $0.30 to $1.00 per gallonAnywhere from $0.30 to $1.00 per gallon– Don’t forget by-products!!! ($0.20 to $0.50 Don’t forget by-products!!! ($0.20 to $0.50

per gallon)per gallon)

The Complete StoryThe Complete StoryThe Complete StoryThe Complete Story• Total Production Cost per gallonTotal Production Cost per gallon

– Before taxesBefore taxes• Low end with algae = $0.90Low end with algae = $0.90

• Low end with existing crops= $1.50Low end with existing crops= $1.50

• High end = $3.11High end = $3.11

– With taxesWith taxes• California has a 40.2 cent tax on gasCalifornia has a 40.2 cent tax on gas

• Possibly lower taxes on biodiesel?Possibly lower taxes on biodiesel?

• Note that this does not include profitNote that this does not include profit

Cost of InfrastructureCost of InfrastructureCost of InfrastructureCost of Infrastructure

• Algal pondsAlgal ponds– Construction - $80,000 per hectareConstruction - $80,000 per hectare

•SLO needs 3,185 hectares = $254.8 millionSLO needs 3,185 hectares = $254.8 million

•This is only 12 square miles of land!!!This is only 12 square miles of land!!!

– Maintenance - $12,000 per hectare per Maintenance - $12,000 per hectare per yearyear

• Processing plantsProcessing plants– $15 million for a 30 million gal/yr plant$15 million for a 30 million gal/yr plant– SLO would need 4 plants = $60 millionSLO would need 4 plants = $60 million

Sustainable TransportationSustainable TransportationSustainable TransportationSustainable Transportation

• Fuel use in USA per yearFuel use in USA per year– 60 billion gallons diesel60 billion gallons diesel– 120 billion gallons gasoline120 billion gallons gasoline

• Fuel efficienciesFuel efficiencies– Diesel is 40% more efficient than gasolineDiesel is 40% more efficient than gasoline– Biodiesel is 2% less efficient than dieselBiodiesel is 2% less efficient than diesel

• Conservative AssumptionConservative Assumption– Diesel is 35% more efficient than gasolineDiesel is 35% more efficient than gasoline

Sustainable TransportationSustainable TransportationSustainable TransportationSustainable Transportation

• Required Biodiesel for USARequired Biodiesel for USA– Replace Gas with dieselReplace Gas with diesel

•60 + 0.65(120) = 138 Billion Gallons Diesel / 60 + 0.65(120) = 138 Billion Gallons Diesel / yearyear

– Replace diesel with BiodieselReplace diesel with Biodiesel•138(1.02) = 140.8 Billion Gallons Biodiesel / 138(1.02) = 140.8 Billion Gallons Biodiesel /

yearyear

Sustainable Transportation inSustainable Transportation inSan Luis Obispo CountySan Luis Obispo CountySustainable Transportation inSustainable Transportation inSan Luis Obispo CountySan Luis Obispo County

• Required Biodiesel for SLORequired Biodiesel for SLO

= (Biodiesel for USA) * (pop SLO/pop USA)= (Biodiesel for USA) * (pop SLO/pop USA)

= 140.8 * (250,000 / 294,730,000)= 140.8 * (250,000 / 294,730,000)

≈ 120,000,000≈ 120,000,000 gallons biodieselyear

y = 1.3943x - 2675.8

0

20

40

60

80

100

120

140

160

180

200

1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050

Year

Mil

lio

n G

allo

ns

per

yea

r .

Projected Biodiesel Consumption in San Luis Obispo County

(Transportation)

Land Requirement:Land Requirement:San Luis Obispo CountySan Luis Obispo CountyLand Requirement:Land Requirement:San Luis Obispo CountySan Luis Obispo County• Consider Waste Oil ProducedConsider Waste Oil Produced

– USA (2000)USA (2000)• 2,905,982,575 gallons/year2,905,982,575 gallons/year

– San Luis Obispo (2000)San Luis Obispo (2000)

= (USA waste oil) * (250,000/294,730,000)= (USA waste oil) * (250,000/294,730,000)

= 2,464,876 = 2,464,876 gallons waste oilyear

Projected Waste Oil Production (San Luis Obispo County)

2.462.96

3.45

3.94

4.934.44

0.00

1.00

2.00

3.00

4.00

5.00

6.00

2000 2010 2020 2030 2040 2050 2060

Year

Mil

lio

n G

allo

ns

per

yea

r

Land Requirement:Land Requirement:San Luis Obispo CountySan Luis Obispo CountyLand Requirement:Land Requirement:San Luis Obispo CountySan Luis Obispo County

• Assumptions (using National Trend)Assumptions (using National Trend)– 20032003

•120 million gallons Biodiesel required / year120 million gallons Biodiesel required / year

•2.5 million gallons waste oil produced / year2.5 million gallons waste oil produced / year

•1:1 ratio between oil and Biodiesel1:1 ratio between oil and Biodiesel

– 20502050•182 million gallons Biodiesel required / year182 million gallons Biodiesel required / year




Cropgallons of

oil/acre per year

Corn (maize) 18Soybean 48Sunflowers 102Peanuts 113

Rapeseed (Canola) 127Oil palm 635Alge 15000

3,808

5,764

1,792

2,712

1,617

2,448

1,439

2,179

288436

12 18

0

1,000

2,000

3,000

4,000

5,000

6,000

Sq

uar

e M

iles

Soybean Sunflow ers Peanuts Rapeseed(Canola)

Oil palm Alge

Crop

Land Requirement (San Luis Obispo County)

2003 Required Land (square miles)


2002: 552 square miles of farm land 1026 square miles of grazing land


• Assumptions (using Population)Assumptions (using Population)– 20032003

•120 million gallons Biodiesel required / year120 million gallons Biodiesel required / year



– 20502050•250 million gallons Biodiesel required / year250 million gallons Biodiesel required / year



3,808

7,652

1,792

3,601

1,617

3,250

1,439

2,892

288

578

12 24

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Sq

uar

e M

iles

Soybean Sunflow ers Peanuts Rapeseed(Canola)

Oil palm Alge

Crop

Land Requirement (San Luis Obispo County)



2002: 552 square miles of farm land 1026 square miles of grazing land

Average Consumer sourcesAverage Consumer sourcesfor Biodieselfor Biodiesel

Average Consumer sourcesAverage Consumer sourcesfor Biodieselfor Biodiesel

– Gas StationsGas Stations– Fuel CompaniesFuel Companies

The Economic Impact The Economic Impact AnalysisAnalysisThe Economic Impact The Economic Impact AnalysisAnalysis

• Increase Local RevenueIncrease Local Revenue

• More JobsMore Jobs

• Cheaper FuelCheaper Fuel

Initial Cost Per PlantInitial Cost Per PlantInitial Cost Per PlantInitial Cost Per Plant

Investment PlanInvestment PlanInvestment PlanInvestment Plan

Return on InvestmentReturn on InvestmentReturn on InvestmentReturn on InvestmentReturn On Investment

-$100,000,000

$0

$100,000,000

$200,000,000

$300,000,000

$400,000,000

$500,000,000

$600,000,000

$700,000,000

Year

Gal

lon

s an

d M

on

ey

Total Cap Cost

Gallons a year

Total Profit

Red/Black

Impact on EmploymentImpact on EmploymentImpact on EmploymentImpact on Employment

Employment vs. Biodiesel Produced

y = 6.8685e0.9933x

0

100

200

300

400

500000 3000000 15000000 30000000

Gallons of Biodiesel Produced by Plant

To

tal E

mp

loy

me

nt

Economical Impact on San Economical Impact on San Luis Obispo CountyLuis Obispo CountyEconomical Impact on San Economical Impact on San Luis Obispo CountyLuis Obispo County

• 1500 New Jobs in San Luis Obispo 1500 New Jobs in San Luis Obispo CountyCounty

Biodiesel vs. PetroleumBiodiesel vs. PetroleumBiodiesel vs. PetroleumBiodiesel vs. Petroleum

• GasolineGasoline– Average Central Coast Pump Cost = $2.569 per Average Central Coast Pump Cost = $2.569 per

gallongallon

• DieselDiesel– Average Central Coast Pump Cost = $2.369 per Average Central Coast Pump Cost = $2.369 per

gallongallon

• BiodieselBiodiesel– Can be sold at the pump for Can be sold at the pump for under $2 per under $2 per

gallon!gallon!

What the Consumer SeesWhat the Consumer SeesWhat the Consumer SeesWhat the Consumer Sees

• Cleaner airCleaner air

• Lower fuel pricesLower fuel prices

• 1500 New Jobs introduced to San 1500 New Jobs introduced to San Luis Obispo CountyLuis Obispo County

• An independent fuel sourceAn independent fuel source

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