biodieselpp_BF13C1F16713B

7/27/2019 biodieselpp_BF13C1F16713B

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Small-Scale

BiodieselProduction


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Energy Overview

Where does our energy come from?

85% from fossil fuels

coal, crude oil products, natural gas

7% renewable fuels

hydro power, wind, solar, biomass, biofuels

8% nuclear
http://www.picture-newsletter.com/nuclear/cooling-tower-01.jpg


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Energy Use

What do we use energy for?

Heating & Cooling

Lights, appliances, cooking, household uses Manufacturing

Transportation


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Transportation Fuels

Two fuels dominate the transportation

fuel market:

Diesel Biodiesel can be used to supplement or replace

diesel fuel

Gasoline


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Diesel Fuel Facts

Diesel Fuel Facts

Widely available

Diesel engines are common

Refining and transportation infrastructure is well

developed

Consumers know about diesel


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Diesel Fuel

Recent Developments

New diesel fuel standards (low sulfur diesel)

New diesel burns cleaner (good)

Lubricity is reduced (bad) Retail diesel prices have increased

Why?

Demand has been growing

Refining capacity is strained

Transportation capacity is strained

Higher fuel quality standards


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Diesel Fuel

U.S. Retail Diesel Prices

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

March-94

March-95

March-96

March-97

March-98

March-99

March-00

March-01

March-02

March-03

March-04

March-05

March-06

March-07

March-08

$perGallo

n


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Diesel Fuel

Distillate Fuel Consumption

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Mar-94

Mar-95

Mar-96

Mar-97

Mar-98

Mar-99

Mar-00

Mar-01

Mar-02

Mar-03

Mar-04

Mar-05

Mar-06

Mar-07

Mar-08

Mil

lionsofGallonsperMonth


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Biodiesel Facts

What is biodiesel?

Fuel created from vegetable oil or animal fat

Small-scale producers generally use vegetable oil

Can be used in traditional diesel engines

Biodiesel can be blended with diesel fuel

Biodiesel be produced in small or large quantities


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Biodiesel Facts

Lower energy content than Diesel

Biodiesel: 118,296 BTUs per gallon

No. 2 Diesel: 129,500 BTUs per gallon

Source: National Biodiesel Board

Energy Lifecycle

3.2 units of energy are produced for each energy unit

used Source: NREL


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Biodiesel Facts

What type of oil is most biodiesel made from?

Soybean oil in the USA

Rapeseed oil in Europe

Is biodiesel the same as vegetable oil?

No!


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Biodiesel

Will biodiesel damage my engine? Noif the biodiesel meets the standards of ASTM

6751

One exception: Biodiesel can damage certain natural rubber engine

components over time

Older engines may require the replacement of fuel lines and

some gaskets

These components are unlikely to fail immediately but may

fail with increased biodiesel use


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Biodiesel

US Biodiesel Production

0

10

20

30

40

50

60

70

Jan-06

Mar

-06

May

-06

Jul-0

6

Sep-06

Nov-0

6

Jan-07

Mar

-07

May

-07

Jul-0

7

Sep-07

Nov-07

Jan-08

Mar

-08

May

-08

MillionGallons


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Biodiesel Price

Data from Clean Cities Alternative Fuel Price Report (DOE)

Biodiesel Price

0

0.5

1

1.5

22.5

3

3.5

4

4.5

5

M

ar-02

Jul-0

2

N

ov-02

M

ar-03

Jul-0

3

N

ov-03

M

ar-04

Jul-0

4

N

ov-04

M

ar-05

Jul-0

5

N

ov-05

M

ar-06

Jul-0

6

N

ov-06

M

ar-07

Jul-0

7

N

ov-07

M

ar-08

Rocky Mountain B100 Price Rocky Mountain B20 Price

Rocky Mountain Diesel Price


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SVO and WVO

Straight Vegetable Oil is not biodiesel

This includes Waste Vegetable Oil

Diesel engines can be modified to run on

vegetable oil

Some users who have modified engines have

reported long term problems using SVO


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SVO and WVO

Main Problems:

These fuels are too thick.

The must be thinned to function in a diesel engine

How? By heating or a by chemical reaction (the chemicalreaction is the biodiesel production)

Problem is worse the lower the temperature

Modified engines still typically use SVO in conjunction

with diesel for start up and shut down No government incentives for SVO and WVO


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Oilseeds and

Oilseed Processing


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Types of Oilseeds

Major U.S. Oilseed Crops

Soybean

Cottonseed Sunflower

Canola/Rapeseed

Flaxseed Safflower


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Types of Oilseeds

Other oil producing crops

Corn

Peanut Camelina

Palm

Olive

Coconut


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Oilseed Crops:

2007 Yields

Crop Ave. Yield Ave. Oil Content

Soybeans 41.7 bu/acre 22%

Canola 1,250 lbs/acre 40%Flaxseed 16.9 bu/acre 38%

Safflower 1,215 lbs/acre 35%

Sunflower 1,436 lbs/acre 42%

Mustard 603 lbs/acre 36%


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Oilseed

Processing

The Oilseed Processing Industry:

Separates the whole seed into 2 or more

products The difference between the cost of the seed and

the value of the products created is the crushing

margin


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Processing Technology

Two General Methods

Solvent Extraction

Standard technology for facilities with daily capacities

of greater than 300 tons per day Commonly used in conjunction with some form of

mechanical extraction

Mechanical Extraction

Typically used for facilities with daily capacities of less

than 150 tons per day


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Solvent Extraction

Nearly all commercial soybean processors use

solvent extraction technology


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Solvent Extraction

The basic process:

Seed Preparation

Removal of foreign objects

Removal of seed hulls or shells for some seeds

Pre-Pressing

Seed is crushed through a mechanical press

Pre-Pressing removes some oil from high oil content seeds


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Solvent Extraction

The basic process:

Solvent Application

Solvent is applied to the pre-pressed material The solvent bonds to the oil in the material

Solvent & oil mixture is removed from the meal

The oil is then separated from the solvent which is

reused in the process


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Solvent Extraction

Benefits:

Solvent Extraction is capable of recovering of 99%

of the oil contained in the seed

Lowest cost per ton for commercial processing

Challenges:

Large capital investment

Not feasible for small-scale processing

Environmental concerns


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The basic process:

Seed Preparation Removal of foreign objects

Removal of seed hulls or shells for some seeds

Extraction

Seed is processed by a mechanical press

Removing 65-80% of oil contained in the seed


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Required Equipment

Mechanical Press

Power source for the press

Seed Bins

Meal Bins

Oil Tanks Pumps, Filters, Plumbing


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Example

On-Farm Example:

If you plant 100 acres of canola,

with an average yield of 1,100 lbs per acre,

your production is approximately 55 tons


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Example

The 55 tons of seed will yield approximately:

4,200 gallons of oil

36 tons of meal

* Assuming: The seed has 38% oil content and press recovers 75% of

the oil content in the seed.


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Example

On-Farm Example:

If you plant 100 acres of safflower,

with an average yield of 800 lbs per acre,

your production is approximately 40 tons


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Example

The 40 tons of seed will yield approximately:

2,800 gallons of oil

27 tons of meal* Assuming: The seed has 35% oil content and press recovers 75% of

the oil content in the seed.


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Biodiesel Production

Technology


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Biodiesel Process

Basic Overview

Inputs: Oil, Alcohol & Catalyst

Outputs: Biodiesel & Crude Glycerin


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Biodiesel Process

Sample Recipe

Oil 100 Parts

Alcohol 10 to 20 Parts

Catalyst 0.5 to 3 Parts

* Manufacturers often provide a basic recipe to use as

a starting point.


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Biodiesel Process

Outputs

Biodiesel 100 Parts Crude Glycerin 10-20 Parts


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Biodiesel Process

Pre-Reaction Equipment

Oil Storage Tank

Alcohol Storage Tank

Catalyst Storage

Biodiesel Reactor

Pumps, Filters, Plumbing
http://www.biodieselgear.com/equipment/front-detail.htm


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Biodiesel Process

Post-Reaction Equipment

Settling tanks and/or Separating Equipment

Washing Equipment Drying Equipment

Biodiesel Storage Tank

Glycerin Storage Tank

Pumps, Filters, Plumbing


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Biodiesel Process

Biodiesel Equipment

Micro Scale Processors

100 gallons or less per batch Numerous Manufacturers

Some sold as kits

Others sold as ready to use

Accessories included in the package varies


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Biodiesel Process

Micro Scale Biodiesel Processor
http://www.biodieselgear.com/equipment/front-detail.htm


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Biodiesel Process

Biodiesel Equipment

Small-Scale Processors

75 to 300 gallons per batch Fewer Manufacturers

Usually not sold as kits

Typically higher quality materials

Accessories included in the package varies


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Biodiesel Process

Small-Scale Biodiesel Processor


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Biodiesel Process

Processing 4,200 Gallons

40 gallon processor: 105 batches 60 gallon processor: 70 batches

100 gallon processor: 42 batches


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Final Products

Biodiesel

On-Farm Use

Blended Fuels

Fuel Quality Important

Vehicle Modifications

May need to replace natural rubber fuel lines and gaskets


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Final Products

Crude Glycerin

No Ready Market for Crude Glycerin

Quantity produced is 10% to 20% of biodieselproduction

Contains Methanol & Catalyst

Possible Uses:

Compost

Fuel Oil

Refine to Pharmaceutical Grade Glycerin


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GovernmentInvolvement:

Regulations, Incentives

& Policies


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Federal Policy

What agency is responsible for biofuel policy?

A) Energy

B) Agriculture

C) Commerce

D) Environmental Protection

E) Transportation

Answer: All of the above


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Biofuels Policy

Current federal policy for biofuels:

Most of the biofuels policy is:

Farm Energy

Energy Policy

Other agency are involved:

U.S. Dept. of Transportation

Environmental Protection Agency

Internal Revenue Service

Department of Labor


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Key Federal Policies

Biodiesel Incentives

Biodiesel Blenders Tax Credit

$1.00 per gallon for virgin oils

$0.50 per gallon for recycled oils

Small Producer Tax Credit

$0.10 per gallon of Ethanol or Biodiesel

St t P


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State Programs

& Regulations

Each state has different regulations and

incentives for biodiesel.

Check with your state officials for details

You may need to check with Departments of

Agriculture, Commerce, Environmental Protection,

Transportation, and/or other departments


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Other Regulations

Fire Safety Issues

Methanol storage is subject to regulations of local

fire marshals. Contact your local fire marshal

Building Code Issues

Production and storage of biodiesel, methanol and

glycerin may violate building codes.


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Questions


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Economics of



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Oilseed Processing

Oilseed Processing Assumptions

Seed Cost $0.151 per pound

Oil Content 40%

Recovery Rate 72%

Consistent with an average mechanical crush

Labor Cost $10/hour

Meal Revenue $120 per ton

Net of transportation costs


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Oilseed Processing

Assume 10 ton per day press

Installed Cost of $11,485

Financed for 10 years at 6%

Labor Cost $3,289 47%

Other Costs $3,704 53%

Total Cost $6,993

Processing Cost per Ton $51

Oil d P i


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Oilseed Processing

Seed 274,110 lbs. @ $0.151 per lbs.

Crushing 137 tons @ $51 per ton

Meal 92.7 tons @ $120 per ton

Oil 10,000 gallons

Seed Cost $41,391

Crushing Cost $ 6,993

Total Cost $48,384

Meal Revenue $11,124

Net Cost $37,260

Net Cost Per Gallon of Vegetable Oil $3.73


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Biodiesel Assumptions

Based on 10,000 gallon per year

With a 80-gallon batch processor

Assumes 0% methanol recovery

Labor at $10 per hour


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Cost/Unit $/gallon

Oil $3.73/gallon $3.73

Methanol $2.32/gallon $0.44

Catalyst $1.85/lbs. $0.07

Labor $10/hour $0.37Capital Costs 10 years @ 6% $0.14

Fuel Quality Testing $0.10

1 ASTM/Year & $5 test/batch

All Other Operating Costs $0.01Total $4.86


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ProducerProduction Cost $ 4.86

Producer Profit $ 0.00

Small Producer Tax Credit $-0.10

State Production Incentive $-0.10

Transportation $ 0.00

Price to Distributor $ 4.66

Distributor/Blender

Purchase Price $ 4.66

Blenders Credit $-1.00

Federal Fuel Tax $ 0.25

State Fuel Tax $ 0.28

Distributor Profit $ 0.00

Price to Retailer $ 4.19

Retailer (on farm use avoids retail sales)

Purchase Price $ 4.19

Retailer Mark-up $ 0.00

Retail Price (B100) $ 4.19


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Sensitivity Analysis

Price Change Biodiesel Change

Seed Cost $0.01/lbs. $0.27/gallon

Meal Revenue $10/ton $0.09/gallonCrushing Cost** $10/ton $0.14/gallon

Labor Cost* $1/hour $0.07/gallon

*Biodiesel Labor only**Labor cost change of $1/hour for oilseed processing: $0.03/gallon

Methanol Cost $0.50/gallon $0.10/gallon


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