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Biofuels: North Carolina’s Growing Opportunity
Bob Leker
NC Budget Association
7/13/06
State Energy Office Advancing energy efficiency in industrial,
utility, transportation, government, and residential sectors.
Developing the state’s abundant renewable energy resources.
Accelerating use of alternative fuels and vehicles.
Responding to energy emergencies.
World Oil – In PerspectiveYou
YourChildren
YourGrand
Children
YourGrand
Parents
US Petroleum Production vs. Imports
New Oil?
Where The Oil Is
Katrina and Rita
29% of Refinery Capacity Brought Down 66% of Gulf oil production shut-in 54% of Gulf natural gas production out 16 Natural Gas processing plants down Impacts spilled over to national economy NC vulnerable: reliant on two pipelines
with little storage
Ozone Nonattainment Areas
Sea Level Rise –Climate Change
Ben Poulter, D
uke University; Sam
Pearsall, The Nature
Conservancy
Alternative Fuels in NC
Ethanol: 5,400 state vehicles/E-85 E-10 useable by anyone/MTBE Ban spurs
use Biodiesel: Soybean/Canola or Waste Oil 20% biodiesel blend can be used by
everyone State must cut petroleum use by 20% by
2010
Biofuels Potential
Ethanol Production Capacity
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Ethanol Production Capacity Capacity Under Construction
Renewable Fuels Association Industry Statistics http://www.ethanolrfa.org
Capacity under construction
equals 33% of existing capacity
Biodiesel
NC uses more than 1 billion gallons of diesel fuel annually
5% blend of biodiesel = 29 million bushels of soybeans
1 million acres soybeans»or 300,000 acres of rapeseed»or a combination of; waste vegetable oil, rendered
animal fats, and refined vegetable oil
NC BioethanolSwitchgrass (SG) example:
$270-540/acre/year product revenue Ethanol yield/ton of SG= 100-180 gallons Average 1120 gal/acre
(8tns/acre@140gal/tn) 40 million gal refinery (needs 40,000 acres)
»33 jobs averaging $36,000/year Corn would require 4X the acreage!!!
NC Tax Credits
35% for Renewable Energy Applications Up to $2.5 million/application for
industrial and commercial projects Up to $10,500 for consumers Can be stacked on federal credits 25% credit for alt. fuel manufacturing
plants 15% credit for alt. fuel infrastructure
Future Vision for North Carolina
Site biodiesel and ethanol plants in the state using soybeans and corn
Develop alternative crops: canola and barley Site cellulose-to-ethanol pilot plant in North
Carolina using NC biomass crops Research the use of algae for biodiesel
production Expand access by public to biodiesel/ethanol Expand biofuel/ethanol use by fleets
NC Legislation – S2051 “Energy Independence in NC”
Achieve a 20% reduction in petroleum product usage by state agencies by 2010
Individual tax credits for alt fuel or hybrid vehicles - $500
Develop a Biofuels strategic plan for NC by Feb 2007
North Carolina Innovators
Motor Fleet Management Department of Transportation Clean Cities Coalitions Local Governments & other biofuels
users Service Stations
Biodiesel Billboards A $19,000 grant from the NC Soybean Producers Association provides funds for billboards across NC to inform drivers about soy biodiesel.
The NC Outdoor Advertising Association is providing an in-kind contribution of $37,500 by donating space for billboard postings.
Over 40 billboards from Wilmington to WNC
Motor Fleet Management- Biofuels Plans
Motor Fleet Management: the “ rental car’ agency for the State
MFM has ordered 877 E85 capable FFV for 2006, bringing FFV fleet total over 5,400 out of 8,400 (2/3) passenger vehicles
Plans to expand E85 availability by serving as an ‘anchor fleet’ concentrating FFVs in locations across the state to encourage more service stations to offer E10 & E85
Supports current E85 availability through http://www.ncmotorfleet.com/
NC Department of Administration
• Motor Fleet Management used
242,000 gallons of E85 in 2005 from 2 E85 stations
in Raleigh,
•Initiated a state purchasing contract for
E10 that is available now is ALL 100 counties,
•over 530,000 gallons of E10 used in 2005
E10 can operate in ANY gasoline engine, E85 requires a FFV
NC Department of Transportation
•Used 2 M gallons of B20 in 22 locations in 2005
•Sponsored studies at NC State on B20 & diesel emissions on-road and off road vehicles and equipment
• funding for 3 year $1.6 Clean Fuel Advanced Technology grant project in 23 NC counties for biofuel pumps & Tanks
NC Dept. of Transportation
DOT plans to expand B20 to over 100 fuel sites by 2010
Who Uses Biodiesel in NC?NC-Department of Transportation (DOT)Camp Lejuene Marine Corps BaseRDU International AirportThe NC ZooDehaven’s Transfer and StoragePitt County Memorial HospitalChatham and Durham Public SchoolsUNC-CH, Duke, and NC State UniversitiesTowns of Chapel Hill, Carrboro, Cary, and GarnerCities of Greensboro, Wilmington, Monroe, and Raleigh Guilford, Forsyth, and Wake Counties
Retail Stations ( B20) Durham
Shelby
Asheville ( B99)
Statesville
Salisbury
Charlotte
Retail Stations- Ethanol
E10 - 23 Crown Stations in
Raleigh ( United Energy ) E10- 12 Hotspot gas stations. Most are
in Asheville Area/WNC
E10 & E85 in Shelby, Charlotte
and Statesville (Thomas
Petroleum)
Contact Ray Thomas : 800-262-
5453
Homer’s Truck Stop- Statesville
North Carolina’s 1st truck stop with B20, E85, and E10
Has 6 B20 pumps, 6 diesel pumps
Statesville NC ( Exit 146 on I- 40)
Clean Cities Coalitions
US DOE initiative to build public/private partnerships to accelerate the use of alternative fuels, idle reduction technologies and conservation
Developed in response to 1992 Energy Policy Act 88 US coalitions ; 3 in NC :
Triangle & Charlotte officially designated; Asheville working on it
Biodiesel Success Story: Gaston County Schools
Currently producing B100 from GSC’s waste grease & used cooking oil
Making 175 gallons at a time- produced 8,000 gallons so far using existing labor. Estimating $30,000 savings at current diesel prices
Within 3 months plan on producing 800-1000 gal batches expanding biodiesel production to 60,000 gals with ultimate goal of 250,000 annually
Grady Truett- GCS Transportation Director 704-866-6118
NC Zoo - Asheboro Produces its own biodiesel from
used vegetable oil from the Zoo's five restaurants.
estimates that the fuel produced will provide about 40% of its biodiesel need.
Once the processor is working well, the Zoo will seek other sources of used vegetable oil in order to meet all of its biodiesel need and move toward using B100 instead of B20.
NC Biodiesel: varying markets and production plans
Developing markets: Low blends B2-B5 ~ farmers ( NC Soybean Assoc/Grain Growers
Coop) B20 ~ state local govt, schools, private fleets, retail pumps (Clean
Cities, SEO) B100 ~ co-ops, biodiesel enthusiasts ( Piedmont Biofuels, Blue
Ridge Biofuels)
What’s next: Untapped market - home heating oil Expanded distribution points- currently only 2 major suppliers,
limited bulk storage Expanded awareness and access- more stations selling B20 &
more fleets and individuals to support them In state biodiesel production
Stay informed! Follow NC Clean Transportation news at
http://www.ncsc.ncsu.edu/resources_by_sector/clean_transportation.cfm
Subscribe to free Biodiesel Bulletin and become a Biodiesel Backer at www.biodiesel.org
Subscribe to free National Ethanol Vehicle Coalition FYI newsletter at http://www.e85fuel.com/indes.html
For More Information
State Energy Office1830A Tillery PlaceRaleigh, NC 27604919-733-2230800-662-7131 (NC only)Website - [email protected]
Contributors/Acknowledgements
Rocky Mountain Institute Florida Solar Energy Center NC Solar Center at NC State University U.S. DOE NC A&T’s Center for Energy Research
and Technology ASU Energy Center