|
1. What is Biodiesel 2.
Biodiesel Impact 3. Biodiesel Usage
4. Emissions 5.
Environmental & Safety Information 6. Fuel
Displacement 7. Performance
8. Production 9.
Questions 10. Specification for Biodiesel
(B100) 11. Sample Material Safety Data
Sheet 12. Low Blend -- Frequently Asked
Questions 13. Biodiesel 2000
Backgrounder 14. Health
Effects 15. National Economic Impacts from Increased
Biodiesel Usage
What is Biodiesel :
Biodiesel is the name for a variety of ester-based
oxygenated fuels made from vegetable oils or animal fats. The
concept of using vegetable oil as a fuel dates back to 1895 when Dr.
Rudolf Diesel developed the first diesel engine to run on vegetable oil.
Diesel demonstrated his engine at the World Exhibition in Paris in 1900
using peanut oil as fuel.
Properties of
Biodiesel :
Today’s diesel engines
require a clean-burning, stable fuel that performs well under a variety of
operating conditions. Biodiesel is the only alternative fuel that can be
used directly in any existing, unmodified diesel engine. Because it has
similar properties to petroleum diesel fuel, biodiesel can be blended in
any ratio with petroleum diesel fuel. Many federal and state fleet
vehicles in USA are already using biodiesel blends in their existing
diesel engines.
The low emissions of
biodiesel make it an ideal fuel for use in marine areas, national parks
and forests, and heavily polluted cities. Biodiesel has many advantages as
a transport fuel. For example, biodiesel can be produced from domestically
grown oilseed plants such as canola. Producing biodiesel from domestic
crops reduces the Australia's dependence on foreign petroleum, increases
agricultural revenue, and creates jobs.
Key Advantages of
Biodiesel:
1. Biodiesel is the only
alternative fuel in the US to complete EPA Tier I Health Effects Testing
under section 211(b) of the Clean Air Act, which provide the most thorough
inventory of environmental and human health effects attributes that
current technology will allow.
2. Biodiesel is the only
alternative fuel that runs in any conventional, unmodified diesel engine.
It can be stored anywhere that petroleum diesel fuel is
stored.
3. Biodiesel can be used
alone or mixed in any ratio with petroleum diesel fuel. The most common
blend is a mix of 20% biodiesel with 80% petroleum diesel, or
"B20."
4. The lifecycle production
and use of biodiesel produces approximately 80% less carbon dioxide
emissions, and almost 100% less sulphur dioxide. Combustion of biodiesel
alone provides over a 90% reduction in total unburned hydrocarbons, and a
75-90% reduction in aromatic hydrocarbons. Biodiesel further provides
significant reductions in particulates and carbon monoxide than petroleum
diesel fuel. Biodiesel provides a slight increase or decrease in nitrogen
oxides depending on engine family and testing procedures. Based on Ames
Mutagenicity tests, biodiesel provides a 90% reduction in cancer
risks.
5. Biodiesel is 11% oxygen
by weight and contains no sulphur. The use of biodiesel can extend the
life of diesel engines because it is more lubricating than petroleum
diesel fuel, while fuel consumption, auto ignition, power output, and
engine torque are relatively unaffected by
biodiesel.
6. Biodiesel is safe to
handle and transport because it is as biodegradable as sugar, 10 times
less toxic than table salt, and has a high flashpoint of about 125°C
compared to petroleum diesel fuel, which has a flash point of
55°C.
7. Biodiesel can be made
from domestically produced, renewable oilseed crops such as soybeans,
canola, cotton seed and mustard seed.
8. Biodiesel is a proven
fuel with over 30 million successful US road miles, and over 20 years of
use in Europe.
9. When burned in a diesel
engine, biodiesel replaces the exhaust odor of petroleum diesel with the
pleasant smell of popcorn or french fries.
10. The Congressional Budget
Office, and Department of Defense, US Department of Agriculture, and
others have determined that biodiesel is the low cost alternative fuel
option for fleets to meet requirements of the Energy Policy
Act.
Biodiesel Impact :
An important factor that is
not usually considered when calculating the costs and benefits of
industrial feedstock materials is the macroeconomic effect associated with
domestically produced, renewable energy sources. Economic benefits of a
biodiesel industry in the US would include value added to the feedstock
(oilseeds or animal fats), an increased number of manufacturing jobs, an
increased tax base from plant operations and income taxes, investments in
plant and equipment, improvement of our trade balance, and reductions in
health care costs due to improved air quality and greenhouse gas
mitigation.
Biodiesel has positive
impacts on the state economy. An Iowa State University
study concluded that three economic benefits would accrue to state from
biodiesel. First, biodiesel expands demand for soybean oil, causing
processors to pay more for soybeans, In addition, soybean farmers near the
biodiesel plant would receive slightly higher prices for soybeans; and
third, the presence of a facility that creates energy from soybeans would
add value to the state's industrial and income base.
Dr. Hayes concluded that,
"If the state of Iowa were to mandate the use of a 20 percent biodiesel
blend in its state vehicle fleet where feasible, the total additional cost
of this policy would range from $400,000 to $500,000. If it could be shown
that this policy would result in a new five million gallon biodiesel plant
in the state, then the policy would create more new tax revenues than it
would cost and would clearly be in the best interest of the
state."
Biodiesel has positive implications for production
agriculture. A 1996 economic study published by the USDA Office of
Energy predicted that a modest, sustained annual market for biodiesel of
100 million gallons in the US would contribute approximately seven cents
to the price of each bushel of soybeans produced in the US. Based on last
years harvested crop, the increase could have resulted in more than $168
million directly to the use of biodiesel.
Biodiesel has a
positive impact on the US balance of trade. A 1998 biodiesel lifecycle
study jointly sponsored by the US Department of Energy and the US
Department of Agriculture concluded that increased use of biodiesel and
biodiesel blended fuels such as B20 would substantially benefit our
economy. The report concluded that national spending to import petroleum
sends significant amounts of dollars out of our domestic economy every
year. Biodiesel offers the potential to shift this spending from foreign
imports to domestically produced energy. The report notes: "With its
ability to be used directly in existing diesel engines, biodiesel offers
the immediate potential to reduce our demand for petroleum in the
transportation sector."
Biodiesel contributes jobs
to the local economy.
Economic work conducted at
the University of Missouri estimated the benefits of producing biodiesel
in a metropolitan region. This study concluded that 100 million gallons of
biodiesel production could generate an estimated $8.34 million increase in
personal income and over 6,000 additional temporary or permanent jobs for
the metropolitan region.
Biodiesel Usage :
Basic Terminology:
Biodiesel is the pure, or 100 percent, biodiesel
fuel.
It is referred to as B100 or
"neat" fuel.
A biodiesel blend is
pure biodiesel blended with petrodiesel. Biodiesel blends are referred to
as Bxx. The xx indicates the amount of biodiesel the blend (i.e., a B20
blend is 20 percent biodiesel and 80 percent
petrodiesel).
Ensure the neat biodiesel
fuel meets the biodiesel specification for pure biodiesel before blending
with petrodiesel.
The specification for
biodiesel is designed to ensure that consumers will not experience
operational problems from the fuel’s use. Make sure that biodiesel meets
this specification and that the fuel supplier will warrant this fact.
Quality fuel will provide the consumer with improved air quality and
enhanced operability. Poor quality fuel will create operability problems
and increased maintenance activity. Purchase only qualified fuel from a
reputable source.
Check fuel filters on the
vehicles and in the delivery system frequently upon initial biodiesel use
and change them as necessary.
Biodiesel and biodiesel
blends have excellent solvent properties. In some cases the use of
petrodiesel, especially #2 petrodiesel (has not been observed with #1),
leaves a deposit in the bottom of fueling lines, tanks, and delivery
systems over time. The use of biodiesel can dissolve this sediment and
result in the need to change filters more frequently when first using
biodiesel until the whole system has been cleaned of the deposits left by
the petrodiesel. This same phenomenon has been observed when switching
from #2 to #1 petrodiesel.
Be aware of biodiesel's freezing
properties and take precautions as with #2 petrodiesel use in cold
weather. A 20 percent blend of biodiesel with petrodiesel raises
the freezing properties approximately 3° to 5° F (pour point, cloud point,
cold filter plugging point). In most cases, this has not been an issue.
Twenty percent biodiesel blends have been used in the upper Wisconsin area
and in Iowa during -25° F weather with no problems. Solutions to biodiesel
winter operability problems are the same solutions used with conventional
#2 petrodiesel (use a pour point depressant, blend with #1diesel, use
engine block or fuel filter heaters on the engine, store the vehicles near
or in a building, etc.). Neat biodiesel will begin to freeze at about 25°
F and, if used or stored on site, will need to be kept in an area that
will not get below that temperature. Most underground tanks are around 50°
F and are not a problem.
Wipe painted surfaces
immediately when using biodiesel.
As mentioned earlier,
biodiesel is a good solvent. Biodiesel can, if left on a painted surface
long enough, dissolve certain types of paints. Therefore it is recommended
to wipe any biodiesel or biodiesel blend spills from painted surfaces
immediately.
Store biodiesel or biodiesel blend soaked rags in a
safety can to avoid spontaneous combustion. Biodiesel soaked
rags should be stored in a safety can or dried individually to avoid the
potential for spontaneous combustion. Biodiesel is made from vegetable
oils and animal fats which can oxidize and degrade over time. The
oxidizing process can produce heat. In certain environments, for example,
a pile of oil soaked rags can become concentrated enough to result in a
spontaneous fire. (Note: Paul has a hole in seat of his van to testify to
this!!!)
Use the biodiesel within one year. All fuels,
including #2 and #1 petrodiesel, have a shelf life. This is also true with
biodiesel and biodiesel blends. Industry experts recommend that biodiesel
be used within one year to ensure that the quality of the fuel is
maintained. Storage time does not impact biodiesel distribution given
biodiesel’s production logistics. Biodiesel is generally not stored for
long periods of time. Production levels and rates are established to meet
demand (similar to "just in time" inventory methods). This is an advantage
enjoyed by renewable fuels, like biodiesel, that cannot be shared by its
fossil fuel counterparts.
The Biodiesel Association of
Australia is available to answer additional questions regarding the
transition to biodiesel fuel use. Please do not hesitate to call and ask
your questions.
Emissions
:
Biodiesel is the first and
only alternative fuel to have a complete evaluation of emission results
and potential health
effects submitted to the U.S. Environmental
Protection Agency (EPA) under the Clean Air Act Section 211(b). These
programs include the most stringent emissions testing protocols ever
required by EPA for certification of fuels or fuel additives in the US.
The data gathered through these tests complete the most thorough inventory
of the environmental and human health effects attributes that current
technology will allow. A survey of the results is provided in the table
below.
|
BIODIESEL EMISSIONS
COMPARED TO CONVENTIONAL DIESEL |
|
Emission
Type |
B100 |
B20 |
|
Regulated |
|
|
|
Total Unburned
Hydrocarbons |
-93% |
-30% |
|
Carbon
Monoxide |
-50% |
-20% |
|
Particulate
Matter |
-30% |
-22% |
|
NOx |
+13% |
+2% |
|
|
|
|
|
Non-Regulated |
|
|
|
|
|
|
|
Sulfates |
-100% |
-20%* |
|
PAH (Polycyclic
Aromatic Hydrocarbons)** |
-80% |
-13% |
|
nPAH (nitrated
PAH’s)** |
-90% |
-50%*** |
|
Ozone potential of
speciated HC |
-50% |
-10% |
|
* Estimated from B100
result |
|
|
|
** Average reduction
across all compounds measured |
|
|
|
*** 2-nitroflourine
results were within test method variability |
|
|
. The ozone forming
potential of the speciated hydrocarbon emissions was nearly 50 percent
less than that measured for diesel fuel.
Sulphur
. The use of biodiesel in an
unmodified Cummins N14 diesel engine resulted in substantial reductions of
unburned hydrocarbons, carbon monoxide, and particulate matter. Emissions
of nitrogen oxides were slightly increased.
Carbon
Monoxide --
The exhaust
emissions of carbon monoxide (a poisonous gas) from biodiesel
were 50 percent lower than carbon monoxide emissions from
diesel.
Particulate Matter -- Breathing particulate has been
shown to be a human health hazard. The exhaust emissions of particulate
matter from biodiesel were 30 percent lower than overall particulate
matter emissions from diesel.
Hydrocarbons -- The exhaust emissions of
total hydrocarbons (a contributing factor in the localized formation of
smog and ozone) were 93 percent lower for biodiesel than diesel
fuel.
Nitrogen Oxides -- NOx emissions from biodiesel
increase or decrease depending on the engine family and testing
procedures. NOx emissions (a contributing factor in the localized
formation of smog and ozone) from pure (100%) biodiesel increased in this
test by 13 percent. However, biodiesel’s lack of sulphur allows the use of
NOx control technologies that cannot be used with conventional diesel. So,
biodiesel NOx emissions can be effectively managed and efficiently
eliminated as a concern of the fuel’s use.
Biodiesel
reduces the health risks associated with
associated
with petroleum
diesel. Biodiesel emissions showed
decreased levels of PAH and nitrited PAH compounds which have been
identified as potential cancer causing compounds. In the recent testing,
PAH compounds were reduced by 75 to 85 percent, with the exception of
benzo(a)anthracene, which was reduced by roughly 50 percent. Targeted nPAH
compounds were also reduced dramatically with biodiesel fuel, with
2-nitrofluorene and 1-nitropyrene reduced by 90 percent, and the rest of
the nPAH compounds reduced to only trace levels.
Environmental & Safety
Information :
|
Acute Oral
Toxicity/Rates |
Biodiesel is nontoxic.
The acute oral LD50 (lethal dose) is greater than 17.4 g/Kg body
weight. By comparison, table salt (NaCL) is nearly 10 times more
toxic. |
|
Skin Irritation
-Humans |
A 24-hr. human patch
test indicated that undiluted biodiesel produced very mild
irritation. The irritation was less than the result produced by a 4
percent soap and water solution. |
|
Aquatic
Toxicity |
A 96-hr. lethal
concentration for bluegill of biodiesel grade methyl esters was
greater than 1000 mg/L. Lethal concentrations at these levels are
generally deemed "insignificant" according to NIOSH (National
Institute for Occupational Safety and Health) guidelines in its
Registry of the Toxic Effects of Chemical
Substances. |
|
Biodegradability |
Biodiesel degrades
about four times faster than petroleum diesel. Within 28 days, pure
biodiesel degrades 85 to 88 percent in water. Dextrose (a test sugar
used as the positive control when testing biodegradability) degraded
at the same rate. Blending biodiesel with diesel fuel accelerates
its biodegradability. For example, blends of 20 percent biodiesel
and 80 percent diesel fuel degrade twice as fast as #2 diesel
alone. |
|
Flash
Point |
The flash point of a
fuel is defined as the temperature at which it will ignite when
exposed to a spark or flame. Biodiesel’s flash point is over 125°
Celsius, well above petroleum based diesel fuel’s flash point of
around 58° Celsius. Testing has shown the flash point of biodiesel
blends increases as the percentage of biodiesel increases.
Therefore, biodiesel and blends of biodiesel with petroleum diesel
are safer to store, handle, and use than conventional diesel
fuel. |
|
Fuel
Displacement :
Vehicles that operate on 20
percent blends of biodiesel blended with 80 percent conventional diesel
(B20) will, on average, displace more than twice as much petroleum as
conventional light-duty passenger
vehicles already covered under the Energy Policy Act (EPACT).
Diesel engines used by
medium and
heavy duty government fleets consume significantly
greater quantities of fuel than the light duty passenger vehicles that
comprise the majority of the current EPACT fleets. The diesel engine
vehicle portion of these fleets will be the primary market for B20.
The chart below illustrates
the displacement potential of B20. All of the figures on vehicle miles
traveled, miles per gallon, and total fuel usage are provided by the US
Department of Energy’s Energy Information Administration publication:
Alternatives to Traditional Transportation
Fuels .
|
Vehicle/Fleet
Type |
VMT |
MPG |
Total Fuel
Use |
Percent (%) Petroleum
Displaced by Alt. Fuel |
Total Gallons
Petroleum Displaced by Alt. Fuel |
|
Light-Duty Passenger
Vehicle (E85) |
8000 |
24 |
334 Gal. |
85% |
283 Gal. |
|
Light-Duty Truck
(B20) |
16400 |
16 |
1025 Gal. |
20% |
205 Gal. |
|
Medium-Duty Truck
(B20) |
16400 |
8 |
2050 Gal. |
20% |
410 Gal. |
|
Heavy-Duty Truck
(B20) |
16400 |
6 |
2734 Gal. |
20% |
547 Gal. |
|
School Bus
(B20) |
8000 |
8 |
1000 Gal. |
20% |
200 Gal. |
|
Transit Bus
(B20) |
33200 |
4 |
8300 Gal. |
20% |
1660 Gal. |
VMT = Vehicle Miles Traveled
MPG = Miles Per Gallon
B iodiesel offers similar
power to diesel fuel. One of the major
advantages of biodiesel is the fact that it can be used in existing
engines and fuel injection equipment with little impact to operating
performance. Biodiesel has a higher cetane number than U.S. diesel fuel.
In over 15 million miles of in-field demonstrations biodiesel showed
similar fuel consumption, horsepower, torque, and haulage rates as
conventional diesel fuel.
Biodiesel provides significant
lubricity improvement over petroleum diesel fuel. Lubricity results of
biodiesel and petroleum diesel using industry test methods indicate that
there is a marked improvement in lubricity when biodiesel is added to
conventional diesel fuel. Even biodiesel levels below 1 percent can
provide up to a 30 percent increase in lubricity.
Compatibility of biodiesel
with engine components. In general, biodiesel will
soften and degrade certain types of elastomers and natural rubber
compounds over time. Using high percent blends can impact fuel system
components (primarily fuel hoses and fuel pump seals), that contain
elastomer compounds incompatible with biodiesel. Manufacturers recommend
that natural or butyl rubbers not be allowed to come in contact with pure
biodiesel. Biodiesel will lead to degradation of these materials over
time, although the effect is lessened with biodiesel blends. If a fuel
system does contain these materials and user’s wish to fuel with pure
biodiesel, replacement with compatible elastomers is recommended. The
recent switch to low sulphur diesel fuel has caused many OEMs to switch to
components suitable for use with biodiesel, but users should contact their
OEM for specific information.
Biodiesel in cold
weather.
Cold weather can cloud and even gel any diesel fuel, including biodiesel.
Users of a 20 percent biodiesel blend will experience a decrease of the
cold flow properties (cold filter plugging point, cloud point, pour point)
of approximately 3 to 5° Fahrenheit. Precautions beyond those already
employed for petroleum diesel are not needed for fueling with 20 percent
blends. However, neat (100 percent) biodiesel will gell faster than
petrodiesel in cold weather operations. Solutions for winter operability
with biodiesel are much the same as that for low-sulphur #2 diesel (i.e.,
blending with #1 diesel, utilization of fuel heaters, and storage of the
vehicle in or near a building).
Production :
·
Base catalyzed
transesterification of the oil with alcohol.
·
Direct acid catalyzed
esterification of the oil with methanol.
·
Conversion of the oil to
fatty acids, and then to Alkyl esters with acid catalysis.
·
Low temperature (150 F) and
pressure (20 psi) processing.
·
High conversion (98%) with
minimal side reactions and reaction time.
·
Direct conversion to methyl
ester with no intermediate steps.
·
Exotic materials of
construction are not necessary.
Questions :
Who can answer my questions
about biodiesel?
Sample
Material
Safety
Data Sheet :
2.
COMPOSITION/INFORMATION ON INGREDIENTS This product contains no
hazardous materials.
6. ACCIDENTAL RELEASE
MEASURES SPILL CLEAN-UP PROCEDURES
OSHA STATUS: This product
is not hazardous under the criteria of the Federal OSHA Hazard
Communication Standard 29 CFR 1910.1200. However, thermal processing and
decomposition fumes from this product may be hazardous as noted in
Sections 2 and 3.
TSCA STATUS: This product
is listed on TSCA.
CERCLA (Comprehensive
Response Compensation and Liability Act): NOT
reportable.
SARA TITLE III (Superfund
Amendments and Reauthorisation Act): Section 312 Extremely Hazardous
Substances: None Section 311/312 Hazard Categories: Non-hazardous
under Section 311/312 Section 313 Toxic
Chemicals: None
RCRA STATUS: If discarded in its purchased
form, this product would not be a hazardous waste either by listing or by
characteristic. However, under RCRA, it is the responsibility of the
product user to determine at the time of disposal, whether a material
containing the product or derived from the product should be classified as
a hazardous waste, (40 CFR 261.20-24)
CALIFORNIA PROPOSITION
65: The following statement is made in order to comply with the
California Safe Drinking Water and Toxic Enforcement Act of 1986. This
product contains no chemicals known to the state of California to cause
cancer.
14. OTHER
INFORMATION
This information relates only to the specific
material designated and may not be valid for such material used in
combination with any other materials or in any other process. Such
information is to the best of the company’s knowledge and believed
accurate and reliable as of the date indicated. However, no
representation, warranty or guarantee of any kind, express or implied, is
made as to its accuracy, reliability or completeness and we assume no
responsibility for any loss, damage or expense, direct or consequential,
arising out of use. It is the user’s responsibility to satisfy himself as
to the suitableness and completeness of such information for his own
particular use.
Biodiesel 2000 :
Indicators that the
Biodiesel Industry is Growing and Poised to be a Significant Contributor
to the U.S. Alternative Fuels Market
Recent achievement of three
major long-term objectives. Because of the following 3
long-term achievements, biodiesel has become one of the fastest (if not
the fastest) growing alternative fuels in the
country.
1.
Health
Effects: In
May 2000, biodiesel became the only alternative fuel in the country to
have successfully completed the EPA’s Tier I and Tier II Health
Effects testing under Section 211(b) of the Clean Air Act. The Tier I
testing conclusively demonstrated biodiesel’s significant reductions in
most currently regulated emissions as well as most unregulated
emissions—especially those associated with cancer and lung disease. Tier
II testing demonstrated biodiesel’s non-toxic effect on health.
1.
EPACT: Effective November 1998,
B20, a blend of 20% biodiesel and 80% petroleum diesel, was approved by
Congress as an EPAct (Energy Policy Act of 1992) compliance strategy. The
legislation allowed EPAct fleets to meet their alternative fuel vehicle
purchase requirements simply by buying 450 gallons of pure biodiesel and
burning it in new or existing diesel vehicles in at least a 20% blend with
diesel fuel. The Congressional Budget Office and the Department of Defence
have confirmed that the biodiesel option is the lowest cost alternative
fuel option for meeting the Federal Government’s EPACT compliance
requirements.
1.
ASTM: In December 1998, the
American Society of Testing and Materials (ASTM) issued a provisional
specification (PS 121) for biodiesel fuel. ASTM is the premier
standard-setting organization for fuels and additives in the U.S. The
EPA has adopted the ASTM standard and state divisions of weights and
measures currently are considering its adoption. This development was
crucial in standardizing fuel quality for biodiesel in the U.S. market.
Current Industry Progress
and Initiatives:
Biodiesel Use Is Increasing
Significantly. In March 1999, three
major fleets were known to be using B20 for EPAct compliance. By
October 1999, that number had increased to over 25 and includes such
fleets as the Ohio Department of Transportation, U.S. Postal Service,
General Services Administration, Alabama Power and the U.S. Department of
Agriculture. That is more than a 700% increase in biodiesel users in
six months. New fleets are committing every day .
Low Blend Premium Diesel
Development: Since 1997, seven
companies have released premium additive packages containing biodiesel in
which biodiesel is a major marketing aspect of the product. In the summer
of 1999, Koch—the second largest privately owned company in the US behind
Cargill-launched a new premium diesel fuel product, US SoyField Diesel,
which is now in more than 20 terminals in the Midwest and
expanding. Also in 1999, Country Energy (the Farmland/Cenex petroleum
joint venture) launched SoyMaster, its proprietary premium diesel
containing biodiesel, in four terminals in the Midwest. These petroleum
companies, and others are evaluating the expansion of their product lines
to include B20 and market the alternative fuel to their network of
customers through their terminal and distributor
systems.
Biodiesel Supplier Base is
Increasing:
In 1996 there were two companies who were registered biodiesel
suppliers. In 1999 there are 13 companies who have invested millions
of private dollars into the development of the biodiesel manufacturing
plants and industry development activities. In fact, a new, less expensive
continuous biodiesel process was patented last summer with plans to build
several additional plants around the country. The number of inquiries
received by NBB staff and consultants for biodiesel manufacturing plants
has skyrocketed over the last 12 months .
Political and Public Support
is Increasing Significantly: Over the last 12 months,
there has been a significant amount of increased political support for
biodiesel. Biodiesel has been hampered compared to other alternative
fuels, because public policies were not in place to allow the
quantification of the significant energy security, agricultural, and
environmental benefits of the fuel. Biodiesel is now being included in
major state and nation-wide legislative efforts, which are providing a
mechanism to quantify the benefits of the fuel and are making it a
cost-competitive option for achieving many of the nation and state-wide
goals. Major biodiesel initiatives have recently passed in Arizona,
Ohio, New Jersey, Delaware, and Iowa. Bipartisan federal Legislation
was introduced in May 2000 by Senator’s Daschle and Lugar which would
require a percentage of biodiesel in all low-sulphur diesel fuel as a
renewable lubricity additive. And environmentalists have finally
begun to recognize the environmental benefits of the fuel- biodiesel was
used to power Earth Day 2000.
Presidential Executive
Orders: On
August 12, 1999, President Clinton signed Executive Order 13134,
Developing and Promoting Biobased Products and Bioenergy, which calls for
the expanded use of bio-based fuels such as biodiesel. Furthermore,
on September 14, 1998, the President signed Executive Order 13101,
Greening the Government Through Waste Prevention, Recycling, and Federal
Acquisition, which gives preference to bio-based products for federal
government procurement. Finally, on April 22, the president signed
Executive Order 13149 which increases the governments targets for
displacing petroleum.
Military: The National Biodiesel
Board just entered into a Cooperative Research and Development Agreement
(CRADA) with the Tank, Automotive and Armament Command (TAACOM) of the
U.S. Army to assist them in their effort to incorporate biodiesel into the
procurement provisions for the military.
The Defense Logistics Agency
(DLA) is streamlining the biodiesel procurement process for both the
military and individual federal agencies.
The Department of Defense
has issued guidance to all branches of the military for biodiesel use that
is favorable to the purchase of the fuel.
Biodiesel blends have been
included in the 21st Century Truck Initiative, being
spearheaded by TACOM and the National Automotive Center as a leading
alternative fuel for heavy-duty trucks because other alternatives to
fossil fuels are not able to deliver the power and performance demanded by
the heavy-duty sector.
OEMs: Ford and Chrysler have
begun biodiesel research initiatives, with Ford’s efforts being the most
advanced. Ford is conducting independent compatibility testing in
anticipation of providing diesel engines certified to operate on
biodiesel. Chrysler has included biodiesel in its compatibility
specifications. Most major diesel engine manufacturers have affirmed that
use of B20 in their equipment will not void their warranty and are
actively working with industry on research and development activities.
Moreover, the Fuel Injection Equipment manufacturers have issued letters
recognizing biodiesel’s significant role as a renewable lubricity
additive.
Future Market Dynamics Show
Promise :
Increasing pressure is being put on the petroleum industry to reduce sulphur levels and increase cetane number in diesel fuel. EPA and
other air quality groups continue to increase pressure to reduce the
amount of compounds in diesel exhaust which have the potential to cause
cancer and lung disease. Furthermore, global warming and green house
gases will continue to gain attention. Biodiesel provides benefits in
all these areas, which will further increase the fuel’s economic
competitiveness. Moreover, biodiesel offers fleet managers an
immediate and “seamless” ability to transform their entire diesel fleet
into a cleaner burning alternative fuel fleet, without any capital
investment.
Health
Effects
Testing
HISTORY :
In June 2000,
representatives of the U.S. Congress announced that biodiesel had become
the first and only alternative fuel to have successfully completed the
Tier I and Tier II Health Effects testing requirements of the Clean Air
Act Amendments of 1990. The soybean industry invested more than two
million dollars and four years into the health effects testing program
with the goal of setting biodiesel apart from other alternative fuels and
increasing consumer confidence in biodiesel.
:
The first tier of health
effects testing was conducted by Southwest Research Institute and involved
a detailed analysis of biodiesel emissions. Tier II was conducted by
Lovelace Respiratory Research Institute, where a 90-day sub-chronic
inhalation study of biodiesel exhaust with specific health assessments was
completed.
RESULTS :
Results of the health
effects testing concluded that biodiesel is non-toxic and biodegradable,
posing no threat to human health. Also among the findings of
biodiesel emissions compared to petroleum diesel
emissions:
·
The overall ozone (smog)
forming potential of exhaust emissions from biodiesel is 50%
less.
·
The exhaust emissions of
carbon monoxide (a poisonous gas and a contributing factor in the
localized formation of smog and ozone) from biodiesel are 50%
lower.
·
The exhaust emissions of
particulate matter (recognized as a contributing factor in the respiratory
disease) from biodiesel are 30% lower.
·
The exhaust emissions of
sulphur oxides and sulphates (major components of acid rain) from
biodiesel are complete eliminated
·
The exhaust emissions of
hydrocarbons (a contributing factor in the localized formation of smog and
ozone) are 95% lower.
·
The exhaust emissions for
aromatic compounds known as PAH and NPAH compounds (suspected of causing
cancer) are substantially reduced for biodiesel compared to diesel.
Most PAH compounds were reduced by 75% to 85%. All NPAH compounds
were reduced by at least 90%.
SIGNIFICANCE :
The health effects testing
results provide conclusive scientific evidence using the most
sophisticated technology available to validate the existing body of
testing data. The comprehensive body of biodiesel data serves to
demonstrate the significant benefits of biodiesel to the environment and
to public health. This will lead to increase consumer confidence and
increased use of biodiesel. Since the majority of biodiesel is made
from soybean oil, a promising new market is materializing for
soybeans.
National Impacts from Increased
Biodiesel Usage :
A 1998 biodiesel lifeyclcle
study jointly sponsored by the U.S. Department of Energy and the U.S.
Department of Agriculture concluded that increased use of biodiesel would
benefit our national economy. Increased biodiesel production would
also result in significant economic benefits to state economies as well as
agricultural producers.
According to economic
modeling conducted by the Food and Agricultural Policy Research Institute,
(FAPRI), 70 million gallons of annual demand for biodiesel could add $0.10
to $0.18 per bushel to the price of soybeans.
An analysis conducted by the
USDA Economic Economic Research Service estimates that 100 million gallons
of biodiesel demand would increase soybean oil prices by
14%.
USDA forecasts that ending
stocks of soybean oil in 2000-01 will be 1.85 billion pounds.
Soybean meal demand is forecasted to increase more than soybean oil
demand.
Oilseed industry experts
estimate an additional four billion gallons of biodiesel feedstock supply
could be available through expanded soybean acreage, increased utilization
of oilseed crops and higher oil soybeans.
Under current economic
conditions, increased in soybean prices will result in decreased federal
outlays under the soybean marketing loan program.
The utilization of biodiesel
could have immediate impacts on the economy that would increase increased
farm income, increased economic activity and corresponding increases to
the local tax base, utilization of surplus soybean oil, and decreased
federal outlays under the soybean marketing loan program. However,
the biodiesel industry is currently not eligible for policy incentives
enjoyed by other segments of the fuels market that would increase
biodiesel sales and further market development.
·
Until the early 1970's, the
US was self sufficient in crude oil production. However, imports of
crude have been increasing at an accelerating rate due to decreasing
domestic production and increasing energy needs. Petroleum imports
now account for more than half of our total usage, and make up the single
largest component of our trade deficit.
·
A 2000 GAO report documented
specific petroleum tax incentives that range from about $330 million for
the expensing of tertiary injectants (1980-2000) to about $82 billion for
certain cost depletion deductions (1968-2000).
The same GAO report
indicated that ethanol fuel tax incentives ranged from $198 million for
alcohol fuel tax credits (1980-2000) to about $11 billion for the excise
tax exemption for alcohol fuels (1979-2000).
Although the tax incentives
provided to the ethanol industry are a fraction of those provided to the
petroleum industry, ethanol's favourable tax treatment has been critical
in the development of ethanol into a two billion gallon per year
industry. To date, the biodiesel industry has never received any
favorable tax or subsidy treatment, and is at a significant disadvantage
relative to petroleum. In fact, the US Congress is currently
considering legislation that would provide further incentives to
domestically produced petroleum, but would not apply to domestically
produced biodiesel. Inclusion of biodiesel into a comprehensive
energy policy that promotes domestically produced renewable fuels could
have a significant impact on the development of the biodiesel market, at a
relatively low cost to US consumers or taxpayers.
Policy options such as a
national renewable standard for diesel fuel would provide significant
benefits to the economy. In May 2000, EPA proposed a limit on
sulphur of 15 ppm maximum for on-highway diesel fuel by 2007. This
is a reduction of over 95% from the current limit of 500 ppm.
Removing the sulphur from diesel fuel will reduce fuel lubricity, harming
engine life. Biodiesel improves lubricity at very low
percentages. Biodiesel could be included as a low level blending
component in diesel fuel as a means to improve fuel lubricity while
meeting other policy objectives. The Energy Information
Administration reports that the total US distillate market in 1998 was
over 55 billion gallons and 'on-highway' represented the largest component
of this use at over 30 billion gallons.
Inclusion of biodiesel in
on-road diesel fuel at a level of 1% for lubricity purposes would result
in the following:
·
300 million gallons of
biodiesel demand.
·
Utilization of the oil from
more than 214 million bushels of soybeans (over 2.2 billion pounds of
soybean oil).
·
Add a minimum of 30¢
to the value of a bushel of soybeans, based on economic analyses conducted
by USDA-ERS and FAPRI.
·
Add more than $800 million
to gross farm income and decrease federal outlays under the soybean
marketing loan program in similar amounts.
·
Potentially reduce fleet
operating costs through increased equipment life.
The biodiesel industry is
currently reviewing policy options such as tax incentives, relief of EPACT
credit restrictions, as well as the inclusion of biodiesel in the national
diesel fuel pool that would further the development of the biodiesel
market, level the playing field in the alternative fuels marketplace, and
lead to national economic benefits.
Economic activity from an
activity from an industry can be categorized into direct, indirect, and
induced impacts. Direct impacts are those changes in output or
income that can be directly attributed to the industry. Secondary
impacts (indirect and induced) result from subsequent rounds of spending
and re-spending by consumers and businesses. The National Biodiesel
Board will conduct a macroeconomic study in spring 2001 to quantify direct
and secondary economic impacts, employment, balance of trade, and
increased level of economic activity and corresponding state and local tax
revenue that result from increased biodiesel
usage.
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