Life Cycle Assessment of Canola Biodiesel in New Zealandfolk.uio.no/roberan/docs/NZCEE2008-LCAofCanolaBiodiesel.pdf · Life Cycle Assessment and Landcare Research and Costing of Canola

Life Cycle Assessment of Canola Biodiesel

in New Zealand

Prepared by:

Robbie Andrew Vicky Forgie

May 2008

Life Cycle Assessment and Landcare Research and Costing of Canola Biodiesel in NZ New Zealand Centre for Ecological Economics

Contents Introduction...................................................................................................................................1

Goal and scope of study........................................................................................................1 Functional unit ......................................................................................................................1 Data quality requirements .....................................................................................................1 Allocation procedures ...........................................................................................................1 Study limitations ...................................................................................................................2

Background...................................................................................................................................4 Production process ....................................................................................................................4

Crop growing and harvest.....................................................................................................4 Oil extraction ........................................................................................................................4 Transesterification.................................................................................................................5

New Zealand life cycle inventory analysis ...................................................................................8 LCA boundary ..........................................................................................................................8 Growing ....................................................................................................................................8 Processing ...............................................................................................................................10

Capital and operating costs .................................................................................................10 Oil extraction ......................................................................................................................10 Transesterification...............................................................................................................10

Potential impacts of alternative production systems...................................................................12 Sustainability impacts .............................................................................................................12 Ethanol ....................................................................................................................................12 Hexane extraction ...................................................................................................................13

Results and discussion ................................................................................................................14 Interpretation...........................................................................................................................16 Sensitivity analysis..................................................................................................................17

Base case.............................................................................................................................17 Canola seed price increase by 20%.....................................................................................18 Canola meal price increase by 20%....................................................................................18 Canola meal price decrease by 20% ...................................................................................18 Glycerin price increase by 20% ..........................................................................................19 Glycerin price decrease by 20% .........................................................................................19

References...................................................................................................................................20 Appendix 1 : Overview of LCA Method from Beer et al. 2007................................................25 Appendix 2 : Transport Energy Consumption............................................................................26 Appendix 3 : Electricity..............................................................................................................27 Appendix 4 : Methanol ...............................................................................................................28 Appendix 5 : Urea.......................................................................................................................29 Appendix 6 : Common Factors ...................................................................................................30



1

Introduction Landcare Research has been contracted under Bioenergy Options for New Zealand Contract ID C04X0601 Proposal No. PROJ-12011_ORI-FRI to carry out life cycle assessments (LCAs) to explore potential options for producing bioenergy in New Zealand.

Goal and scope of study

The purpose of the study is to provide input into the strategic direction New Zealand takes with regard to:

1) dependence on imported energy (energy security, balance of trade)

2) dependence on non-renewable energy resources (energy security)

3) emissions of greenhouse gases (environment)

The goal of the study was to determine the energy inputs, greenhouse gas emissions, and costs for conversion of canola to biodiesel. Energy inputs are disaggregated into total primary, fossil-fuel based (non-renewables), and imported. Associated environmental impacts are discussed but not quantified.

The intended audiences are local and central government policy-makers and business interests. These parties will need information to assess the best policy or business investment for New Zealand.

Functional unit

Because different liquid fuels have different energetic values, it is important not to use measures of mass or volume when making comparisons. The valued characteristic of liquid fuels is their ability to provide energy to a vehicle. For this reason the functional unit for this study is 1 GJ of energy.

LCA is a holistic approach that helps achieve sustainability standards by accurate life-cycle measurements of, for this report, the energy requirements and greenhouse gas impacts of a given biofuel. It helps provide transparency from field to tank.

Data quality requirements

The LCA and LCC is based on the ‘average’ system of production for the defined system boundary. The system boundary determines what to include and what to exclude. For example, with straw, if the system boundary is drawn to include soil, reincorporated straw remains within the system and is not treated as a co-product. If soil is outside the system boundary then all straw constitutes a co-product regardless of whether it is baled or reincorporated (Clift et al., 1995).

This report presents a LCA and LCC based on manufacturing operations that are feasible in New Zealand. Where the production process currently takes place in New Zealand, relevant New Zealand based data have been sourced if possible. Where New Zealand specific data are not available overseas data have been adapted.

Allocation procedures

In LCA, environmental impacts and benefits are calculated for economic goods. These goods are generally produced by a number of manufacturers that use a range of production systems. In many cases there is joint production where two or more products are outputs from the process. In economic costing, and LCA, an approach is needed to proportion the environmental impacts of the production system to the economic goods. The choice of


2

method used for accounting for co-products can have a substantial impact on the results. There are two main approaches: allocation and system extension.

Allocation is based on allocating the burdens arising from the overall production between co-products in some appropriate ratio. When a production process contributes to several products, the total system environmental load has to be shared between these by allocation. This is usually economic value, mass or other attributes of the system (for example, protein content). The choice of allocation method may impact on the outcome (Bernesson, 2004) . Allocation LCA measures the average impact of production.

System extension LCA measures the consequence of a product or process substitution by extending the system boundary to include the use of a product. If the product is no longer available for that use, what are the impacts of producing a substitute product? System expansion is performed to maintain comparability of product systems in terms of product outputs. This is done by separating the unit process into two or more subprocesses and collecting the input and output data related to these subprocesses. The product system is expanded to include the additional functions related to the co-products. If production output is reduced in one area (for example, kiwifruit going to stockfood is redirected to biogas production) the net impact is measured by adding an equivalent production in the other systems (replacement stockfood production). System extension LCAs attempts to measure the marginal impacts of production.

This study has used economic allocation as the method for analysis, as required by Scion.

Study limitations

While there are many advantages to using LCA and LCC to provide a holistic comparison of bioenergy forms considering the whole production chain, there are also limitations. Results should be interpreted cognisant of the following limitations (following Zah et al., 2007):

- The focus of the life cycle assessment (LCA) has been material and energy flows relating to GHG production, fossil fuel use and economic costs. Other environmental and economic impacts will also result. These would be quantified by the impact assessment stage of an LCA, which has not been included in this report.

- The assessment approach calculated only the primary environmental impacts of the process chain, e.g., energy consumption and pollutant emission during the cultivation of energy canola. Secondary effects were not covered. For instance, if the demand for canola results in the conversion of forest land or wetlands, the environmental impact of this has not been included.

- Economic allocation is based on current prices. The price of goods depends on market dynamics and will change over time.

- The process chains investigated represent only a subset of all production processes; many more production paths are conceivable. The paths chosen, however, are considered especially relevant for the current situation in New Zealand.

- The most recently available existing New Zealand data have been used where possible. Where these data are not available overseas data have been used.

- Future and alternative process chains have been discussed and some have been explored in the scenario analysis section.

- Results may not apply to individual plants, because the environmental impacts in individual cases may differ greatly from the average situation.


3

- The study does not address the future consequences of a shift to renewable fuels. For example, if some agricultural land is diverted to biofuel production then the remaining agricultural land might have to be more intensively farmed. As another example, people might realize that some biofuel production is linked to alarming social and environmental practices, and stop buying biofuel blends.


4

Background Canola is a brassica crop that produces seeds with an approximate oil content from about 40–46% at 8% moisture content. It is a variant of rapeseed, bred to have lower levels of glucosinolates, which are goitrogenic in animals and humans. Canola has previously been grown in New Zealand to produce cooking oil, and rapeseed has been grown as a fodder crop for stock. In 2007, New Zealand imported 13.4 million litres of canola oil at an average cost of $1.26/litre (Statistics New Zealand, 2008).

After the oil has been extracted the most valuable by-product is a protein-rich canola meal, which can be sold for stockfood to dairy and beef farming operations.

Production process When biodiesel is produced from canola the main co-products are meal and glycerol. The meal is usually used for animal feeding, and the glycerol can be used as a raw material in many industrial processes.

Crop growing and harvest

Canola is normally grown on a 3–5-year rotation with other cereal crops, with a single canola rotation lasting about six months. Canola seeds germinate readily, so the crop is often followed by a cereal crop so that a broadleaf herbicide can be used to kill any canola seedlings (Berglund et al., 2007). Additionally, a canola rotation helps break disease cycles associated with cereal crops (Beer et al., 2007). In dry conditions it is usually irrigated to avoid moisture stress and improve yields. It can be grown as a no-till crop or using conventional cropping techniques. Canola requires more sulphur than wheat and responds very well to nitrogen fertiliser. The Australia Oilseeds Federation (2001) gives a general rule of 30 kgN/ha, 8 kgP/ha, and 10 kgS/ha, all per tonne per hectare of desired yield (e.g., to achieve 3 t/ha of seed, 90 kgN/ha would be required). While North American and Australian canola crops yield an average of about 1.5 t/ha (Beer et al., 2007; NASS, 2008), yields up to 4 t/ha are possible depending on variety, soil, climate, sowing time, and crop management (Martin, 2006).

Harvesting canola seed requires swathing, whereby the crop is cut at about 30 cm height and the seeds are left to dry and ripen in sunlight for 10–14 days. The crop is then windrowed and combine-harvested to separate the seeds from the crop residue. In cooler climates the seed must be dried using fans and/or heaters.

Oil extraction

Seeds are cleaned to remove any remaining extraneous plant material and debris, and are then de-hulled, comminuted, and heat-treated. The oil in canola seeds is most commonly extracted either mechanically in an oil press or chemically with a solvent. Normally 65–80% of the oil can be extracted in an oil press (Bernesson, 2004). Mechanical pressing produces oil and a meal that is 12–14% oil. The meal can be further processed using the solvent hexane (Janulis, 2004).

Solvent extraction can be used without pressing but is only usually used in large plants (Bernesson, 2004) and removes approximately 98% of the oil (Norén, 1990; Kaltschmitt and Reinhardt, 1997 cited in Bernesson 2004). Solvent extraction does result in a higher concentration of phospholipids in the extracted oil, requiring energy-intensive degumming before the oil can be further processed (Janulis, 2004).


5

The market value of canola meal can provide a significant credit to the economics of biodiesel manufacture from canola (Toohey et al., 2003).

Transesterification

The main constituents of all vegetable oils and animal fats are triglycerides, in which three fatty-acid chains are linked to glycerol. Transesterification is a process whereby an alkoxy group in an ester compound (e.g., glycerol in triglyceride) is replaced by another alcohol. In biodiesel manufacture, the glycerol group in triglyceride is typically replaced with methanol or ethanol to form methyl or ethyl monoesters respectively. Because the proportions of each type of fatty acid are particular to the oil type, alkyl esters produced by transesterification of canola oil are termed canola alkyl esters.

According to Beer et al. (Beer et al., 2007, pp. 5–6) methanol is generally used in preference to other alcohols for the following reasons: 1) reactions require lower temperatures; 2) methanol is cheaper than ethanol; and 3) European standards only allow for the use of methanol as the reacting alcohol; as most of the technology comes from Europe, the installation of European plants tends to perpetuate the use of methanol. In addition, excess ethanol is more difficult to recover at the end of the transesterification process (Van Gerpen et al., 2004), resulting in increased costs. When methanol is used the biodiesels are generically known as fatty-acid methyl esters (FAME).

The stoichiometric requirement of methanol for transesterification of triglycerides is 3 mol per mol of triglyceride, yielding 3 mol of methyl esters and 1 mol of glycerol. Based on an average molecular weight of canola fatty acids (AOF, 2005; Downey, 2006; DeClercq, 2007), these ratios are converted to weights and volumes, and listed in Table 1. The table shows that the requirement for methanol is about 11% of the weight of the triglyceride (oil) input.

Table 1: Stoichiometric proportions and approximate volume ratios for transesterification of triglycerides with methanol

Compound mol g by weight ml (at 50°C) by volume

Triglycerides (oil) 1 880 1 989 1

in

Methanol 3 96 0.109 122 0.123

Methyl esters (biodiesel) 3 884 1.005 1070 1.082

ou

t

Glycerol 1 92 0.105 74 0.075

In practice, however, higher molar ratios of methanol are required to ensure the complete conversion of triglycerides to methyl esters and to reduce reaction time (Jeong et al., 2004). The most commonly used ratio of alcohol to triglycerides is 6:1, although Jeong et al. (2004) have demonstrated that the optimum is closer to 10:1. Importantly, most of the alcohol beyond the stoichiometric requirement can be recovered by distillation once transesterification is complete. Recent research has shown that the further reduction of moisture levels in the seeds further significantly reduces the methanol required (USDA, 2005).

Due to physical and political nature of world natural gas supply, the price of methanol has been highly volatile since 2006 (see Figure 1).


6

$0

$100

$200

$300

$400

$500

$600

$700

$800

Sep-0

2

Jan-

03

May

-03

Sep-0

3

Jan-

04

May

-04

Sep-0

4

Jan-

05

May

-05

Sep-0

5

Jan-

06

May

-06

Sep-0

6

Jan-

07

May

-07

Sep-0

7

Jan-

08

Met

han

ex A

sian

Po

sted

Co

ntr

act

Pri

ce (

$US

/to

nn

e)

Figure 1: Asia-Pacific price of methanol (source: www.methanex.com)

The transesterification reaction progresses much more quickly in the presence of a catalyst and heat. In biodiesel production, base catalysts e.g., sodium hydroxide (NaOH), or potassium hydroxide (KOH) are usually used because of their low cost, low-temperature reaction, and high conversion yields. Laboratory experiments by Jeong et al. (2004) indicate an optimum ratio of KOH to oil of 1% by weight, and an optimum temperature of 60°C. The temperature must not exceed the boiling point of the alcohol used (64.7°C for methanol (Linstrom and Mallard, 2005)).

The product of transesterification in the presence of a base catalyst and excess methanol is a mixture of methyl esters, methanol, glycerol, residual free fatty acids (FFAs), and salts of the catalyst base. Methanol is removed by distillation and reused, and the remaining by-products are often separated from the methyl esters by draining. The methyl esters are normally washed in water to remove remaining contaminants (usually salts, soaps, and FFAs), with up to three washes each using about 0.3 litres of water per litre of biodiesel (Demirbas, 2002), although non-water washing methods are available based on magnesium silicate (AnzacFuelTech, 2008).

Glycerol is typically produced at a ratio of 1:10 with biodiesel and can be a key co-product providing a cost offset for production. Biodiesel production has resulted in a significant increase in the world supply of glycerol, and this has caused a slump in its price. However, additional supplies have resulted in new uses being found for the product, including replacing petroleum-based feedstocks (Taylor, 2008). In American and European markets especially, use of non-fossil-derived glycerol gives a ‘green’ advantage to products. About 80% of unrefined glycerol from European biodiesel production is exported to India and China for refinement into glycerol (Chan, 2008). Unrefined glycerol also has value as a feed supplement for livestock, with an energy content similar to that of corn grain (USDA, 2007).

Hale and Twomey (2006) suggest a glycerol credit of 13c/litre. However, this assumes that the glycerol by-product is refined to pure glycerol, which requires further energy and active ingredient inputs. Additionally, the price of glycerol has been significantly affected by


7

increased supply from biodiesel plants, especially in Europe, and some plants overseas have had to pay for disposal of glycerol (a negative price) (Yazdani and Gonzalez, 2007). Recently, however, the price has been improving because of the emergence of new markets for glycerol including use in plastics manufacturing (Oregon State University, 2007) and conversion to ethanol (Yazdani and Gonzalez, 2007). These new uses are still under development, and the price of glycerol has not yet settled.

The production of biodiesel from canola can be carried out on many different system scales. In large-scale systems, process heat can be both produced and used more efficiently, while processing technologies for canola also have higher extraction efficiencies (Bernesson et al., 2004). However, the transport of raw materials to the processing plant and the transport of residual products back to the farms can offset these benefits.


8

New Zealand life cycle inventory analysis Canola biodiesel is currently produced by at least two companies in New Zealand. The two companies with public profiles are Biodiesel New Zealand (a division of Solid Energy) in Christchurch, and KiwiFuels, whose head office is in Rangiora. The companies have growing contracts with farmers to supply canola for processing into biodiesel. Biodiesel New Zealand also produces biodiesel from used cooking oil, but this has been excluded from the LCA.

LCA boundary

Figure 2: System boundary of the Canola Biodiesel LCA (T = transport)

Growing The area most suited to growing canola in New Zealand is the Canterbury Plains in the South Island. This LCA assumes crops are grown an average distance of 50 km from the processing plant. As Bernesson et al. (2004) showed there is no real benefit in large-scale production, it has been assumed the New Zealand operations will consist of small-scale plants located closer to crop growing and animals to feed the meal to.

Canola can form part of a normal crop rotation with maize, wheat and barley. While Kiwifuels intend to buy straw from farmers (Kiwifuels, 2007), for the New Zealand LCA it has been assumed straw is not removed from the paddock but returns nutrients back to the soil. The canola crop returns more nitrogen to the soil than other crops in the rotation thereby reducing the required application of nitrogen before the following crop. Table 2 shows the difference between the nitrogen returned to soil when canola rather than wheat is grown.

Growing Biodiesel

Meal By-products

Catalyst Alcohol

Farm Fertiliser Co

T

T

T

T

T

T

Extraction Transesterification Use

Fertiliser


9

Table 2: Soil nutrients remaining after harvest

Dry matter

kg/ha

Nitrogen

kg/ha

Sulphur

kg/ha

Phosphorous kg/ha Boron kg/ha

Harvest straw canola 10750 59.1 28 15 0.3

Harvest straw wheat 7400 36.3 N/A N/A N/A

Source: Average 1998 and 1999 years from Columbia Basin Agricultural Research Center for a 3.6–3.7 t/ha seed harvest. Nitrogen in wheat straw is 0.49% for a yield of 7000 kg/ha (Hobbs et al., 1998). N/A = not available.

Recommended levels of fertiliser inputs for growing canola are provided by the Australia Oilseeds Federation (AOF, 2001) per tonne/ha of required yield, as shown in Table 3. The figure given for nitrogen agrees closely with the figure of 26 kg given by Franzen and Lukach (2007). The New Zealand LCA study has assumed a yield of 3.5 tonnes of seed per hectare and that nitrogen requirements are met by urea.

Table 3: Recommended fertiliser application rates

N P S

Per tonne/ha seed yield 30 kg/ha 8 kg/ha 10 kg/ha

Source: Australia Oilseeds Federation (AOF, 2001)

Diesel use on the farm has been estimated using an assumed crop management regime detailed in Table 4. The ploughing phase is replaced with a spraying pass if no-till cultivation is used.

Table 4: Typical diesel consumption rates for agricultural operations

Diesel consumption

(l/ha)

Ploughing 18

Drilling 10

Insecticide application 3

Fertiliser and fungicide 3

Swathing and windrowing 15

Combine harvesting 15

Business use 21

Source: Barber (2003); Kerry Plowen, 2008, pers. comm.

According to MAF (2007), the average Canterbury arable cropping enterprise was expected to spend $156 on overheads per hectare in the 2007/08 season. These overheads include communications, accountancy, legal advice, rates, and insurance. According to the authors’ own calculations using input–output analysis and the average expected 2007/08 expenditure on overheads given by MAF (2007), weighted average energy and greenhouse gases embodied in overheads are 0.65 MJ/$ and 0.07 kgCO2-e/$, respectively.

Because canola is a six-month crop, other farm costs and standard operations that are not directly functions of canola cropping have been included at half the annual average rate per hectare based on data from MAF monitoring farms (MAF, 2007).

The sale price of canola seed has increased significantly in the last two years, from $350/tonne to $650/tonne (Steeman, 2008), probably in response to increased fertiliser and transport costs.


10

Processing

Capital and operating costs

The cost of plant construction, operation, and maintenance must be included in the life-cycle inventory. This is particularly important for comparison purposes since petroleum-based diesel is produced almost entirely at one site and the costs are spread over a very large output.

Hale and Twomey (2006) collated plant construction costs for nine biodiesel plants in New Zealand and Australia and found evidence of economies of scale. Recently reported cost estimates for the new tallow-to-biodiesel plant at Waharoa ($40m plant with a capacity of 60 Ml/yr) (Biodiesel Oils NZ, 2007), have been added. The figures converted to cents per litre over an assumed ten-year lifespan, have a best-fit curve (Figure 3) with the following formula1:

Capital costs (c/l) = 49.4×capacity(Ml/yr)-0.5408 (r2=0.94).

0

2

4

6

8

10

12

0 20 40 60 80 100 120 140

Production capacity (millions of litres per annum)

Cap

ital

co

sts

(c/l

)

Figure 3: Annual costs of biodiesel plant construction, based on ten-year plant life. Source: Calculated

from information provided in Hale & Twomey (2006) and Biodiesel Oils New Zealand (2007)

Oil extraction

The Biodiesel New Zealand plant in Christchurch currently uses batch cold pressing to extract oil, but will be moving to continuous cold pressing once their new plant is operating (Paul Quinn, pers. comm.). Canola meal is a useful stockfood because it is a source of valuable nutritional compounds such as proteins, lipids, carbohydrates, vitamins and minerals (GrainFoods CRC, 2007). The current price for canola meal as stockfood in Canterbury – $700/tonne – is high because of drought conditions and very high dairy returns (James and Son, 17 April 2008, pers. comm.). High dairy returns are likely to sustain a high meal price for the next few years.

Transesterification

We have assumed the use of methanol and 85% potassium hydroxide as reacting alcohol and catalyst, respectively. Assuming sulphuric acid is used to separate by-products, potassium

1 The single plant below 20 Ml/yr has a large influence on the best-fit curve and the variance explained by the model.


11

sulphate will be produced and sold to a fertiliser manufacturer. Glycerin (90% glycerol) is sold to dairy and beef farmers. These conditions reflect the current situation at Biodiesel NZ’s plant in Christchurch (Paul Quinn, pers. comm.). Residual soaps and free fatty acids (FFAs) are assumed to be disposed of through the council sewerage system.


12

Potential impacts of alternative production systems

Sustainability impacts Bio-diesel produced from canola has the potential to reduce the CO2-emissions that contribute to global warming and is also a renewable feedstock. The sustainability of biodiesel production from canola is dependent on its impact on other food production, the economic viability of production, the energy balance, and environmental impacts.

Biodiesel produced from growing canola has the potential to reduce food supplies as it competes for land with crops such as wheat. Crops have traditionally been rotated to maintain soil fertility and reduce susceptibility to disease and pests. In New Zealand 50% of maize, wheat and barley crops are currently grown as supplementary feed for dairy cows and beef stock (Radio New Zealand National, 9 April 2008).

Economic viability is dependent on the choice of production systems and plant scale. In Sweden small-scale systems have been of interest because of the simple and less expensive process technologies involved and the possibility of increasing rural employment (Bernesson et al., 2004). Furthermore, the transport of raw materials and residual products is substantially decreased.

The potential environmental impacts from growing canola are no different from growing other types of arable crops. The main impacts include wind erosion and loss of soil fertility. No-till cultivation reduces loss of soil from wind erosion, and returning the straw to the soil increases the nutrient content and avoids loss of organic matter. Research in Sweden showed rape seed crops did not have a detrimental effect on the organic matter content in the soil (Mattsson et al., 2000).

Ethanol While it is possible to use ethanol in place of methanol in the transesterification of canola oil, methanol is more commonly used. It takes 27 MJ/l to distil ethanol from 3.3% v/v (close to Fonterra’s ethanol concentration following whey fermentation (Gibson, 2006)) to 95% (Cussins, 2005), which converts to 34 MJ/kg (density 0.789 kg/l). Distillation is currently fuelled by steam created using natural gas (Gibson, 2006). The average price of New Zealand exported ethanol was $0.47/l (FOB) in 2004 (SNZ, 2008), while the current price on the US market is about $0.82/l. About 1.4 times as much ethanol is required as methanol, by weight (own calculations), because of ethanol’s higher molecular weight (3 mol are still required for each mol of triglyceride).

Because ethanol is now linked to energy markets through production of biofuels, its price has become highly volatile (see Figure 4).

New Zealand exports 60% of the ethanol produced. Economic allocation would assign negligible energy and greenhouse gas emissions from farming operations to ethanol production due to the large discrepancy in economic value. In 2004 dairy exports returned over $8b while ethanol exports were only $3m.


13

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

0.90

1.00

Jan

-82

Jan

-84

Jan

-86

Jan

-88

Jan

-90

Jan

-92

Jan

-94

Jan

-96

Jan

-98

Jan

-00

Jan

-02

Jan

-04

Jan

-06

Jan

-08

Eth

anol

pri

ce ($

US

/litr

e)

Figure 4: Nebraska price of ethanol, 1982–2008 (Source: Nebraska Energy Office (2008)

Hexane extraction Greater quantities of oil can be extracted from canola seed if solvent extraction rather than cold pressing is used. Cold pressing leaves 12–14% of the oil in the meal, whereas solvent extraction reduces this to 0.1–0.8% (Janulis, 2004). Solvent extraction results in more than twice the amount of phospholipids in the oil compared with oil extracted by cold press, which means additional energy is required to degum the oil before transesterification (Janulis, 2004).

Although hexane, a colourless, flammable liquid derived from petroleum, is the most commonly used organic solvent, it is an air pollutant and in the US its emission is regulated by the Environmental Protection Agency. New methods are being developed to eliminate hexane from the process of oil extraction (e.g., Core, 2005).


14

Results and discussion Table 5 shows the final results of the LCA and LCC broken down by each significant input.

Table 5: LCA and LCC

Amount Unit Description Allo-

cation Cost ($NZ)

Primary MJ

Fossil MJ

Imported MJ

kg CO2-e Note

Seed growing

Inputs

0.11 kg Seed $1.6 1 0 0 0 (a)

2 kg Nitrogen fertiliser (N) $2.8 125 125 73 17 (b)

0 kg Potassium fertiliser (K) $0.1 1 1 1 0 (c)

1 kg Phosphorous fertiliser (P) $1.8 9 9 9 1 (d)

1 kg Sulphur fertiliser (S) $0.4 4 4 4 0 (e)

3 kg Agricultural Lime (CaCO3) $0.1 2 2 2 1 (f)

0.022 kg a.i. Herbicides $1.5 10 10 10 1 (g)

0.003 kg a.i. Insecticides $0.2 1 1 1 0 (h)

0.014 kg a.i. Fungicides $1.0 3 3 3 0 (i)

0.022 ha Land (j)

76 MJ Irrigation electricity (consumer) $3.4 151 57 10 9 (k)

15 MJ Diesel (Ploughing) $0.6 18 18 17 1.2 (l)

8 MJ Diesel (Drilling) $0.3 10 10 9 0.7 (m)

2 MJ Diesel (Insecticide application) $0.1 3 3 3 0.2 (n)

2 MJ Diesel (Fertiliser and fungicide) $0.1 3 3 3 0.2 (o)

12 MJ Diesel (Swathing and windrowing) $0.5 15 15 14 1.0 (p)

12 MJ Diesel (combine harvesting) $0.5 15 15 14 1.0 (q)

9 MJ Diesel (business use) $0.3 10 10 10 0.7 (r)

2 $ Farm overheads $1.7 1 1 1 0.1 (s)

29 MJ Tractors and implements $1.9 29 29 29 2 (t)

1.4 $ Wages $1.4 (u)

Outputs

75 kg Dried canola seed (8% moisture) 100% $20.4 408 315 213 36

Canola straw 0% $0.0 0 0 0 0 (v)

Oil extraction

Inputs

50 km Seed transportation $2 5 5 5 0 (w)

75 kg Dried canola seed (8% moisture) $49 408 315 213 36 (x)

20 MJ Energy (electricity) $1 39 15 3 2 (y)

Outputs Total $51

25 kg Canola oil 51% $26 231 171 113 20

50 kg Meal 49% $25 221 163 108 19 (z)

Transesterification

Inputs

3 kg Methanol $2.0 120 120 0 3 (aa)

0 kg Potassium hydroxide $0.4 13 13 13 (ab)

72 MJ Electricity (transesterification) $2.7 144 54 10 8 (ac)

25 kg Canola oil $26.2 231 171 113 20 (ad)

25 litres Water for washing biodiesel (room temperature) $0.01 (ae)

1 kg Sulphuric acid $0.3 1 1 1 (af)


15

1 $ Capital $1.4 3 3 2 0 (ag)

3 $ Operating and maintenance $2.8 1 1 1 0 (ah)

1 $ Wages $0.6 (ai)

0 $ Rates $0.1 (aj)

0 $ Margin $0.1 (ak)

Outputs

1000 MJ Canola Methyl Ester 88% $32.3 449 318 123 27 (al)

0.9 kg Potassium salts 2% $0.6 15 11 4 1 (am)

2.9 kg Glycerin (90% Glycerol) 11% $4.0 106 75 29 6 (an)

0.4 kg FFAs and others 0% $0.0 0 0 0 0 (ao)

Totals 100% $37 513 364 140 31

Comparison

1000 MJ Fossil Diesel $39 1193 1193 1152 83 (ap)

Note

(a) 5 kg/ha from Mortimer and Elsayed (2006) and MAF Arable Management Recommendations (1987); $15/kg from KiwiFuels website; Energy and CO2 assume purchased seeds were produced using the technology indicated in this table

(b) 30 kgN/ha per t/ha yield (AOF, 2001) @ 3500kg/ha yield, 17.2 kgN/ha credit for canola straw returned to soil; urea at $690/tonne, Ballance South Island Prices List, retrieved 31 March 2008; 66 MJ/kgN urea (Appendix 5); 17.8 imported MJ/kgN urea (Appendix 5); 9.0 kgCO2-e/kgN urea (Appendix 5)

(c) 8 kg/ha average application for irrigated arable crops in Canterbury (Barber, 2003); $1240/kgK based on price of KCl from Ravensdown (2008); Energy and CO2 (see Appendices)

(d) 8 kgP/ha per t/ha yield (AOF, 2001) @ 3.5 t/ha yield; $2937/tonne estimated DAP and phosphate rock prices (Ballance, 2008); Energy and CO2, see Appendices

(e) 10 kgS/ha per t/ha yield (AOF, 2001) @ 3.5 t/ha yield; $580/tonne for Durasul Sulphur (95%) (Ballance, 2008); Energy and CO2 (see Appendices)

(f) 287 kg/ha/yr for six months (Barber, 2003); $40/tonne including delivery and spreading (AG Lime, 2008); 0.6 MJ/tonne, 0.43 kgCO2-e/tonne (Wells, 2001)

(g) Assumed glyphosate; 2.0 kg a.i./ha/yr from Barber (2003); Energy from Green (1987) and McLaughlin et al. (2000); 0.06 kgCO2/MJ from Barber (2003); cost estimated as active ingredient share of total for farm of $126/ha/half-year (MAF, 2007)

(h) 0.3 kg a.i./ha/yr from Barber (2003); 310 MJ/kg a.i. (Barber, 2003); cost estimated as active ingredient share of total for farm of $126/ha/half-year (MAF, 2007)

(i) 1.3 kg a.i./ha/yr from Barber (2003); 210 MJ/kg a.i. (Barber, 2003); cost estimated as active ingredient share of total for farm of $126/ha/half-year (MAF, 2007)

(j) Based on 3.5 t/ha yield (k) 1958 kWh/ha/yr electricity consumption for irrigation of arable cropping in Canterbury (Barber,

2003), six months usage; 4.5c/MJ average cost for agricultural users (MED, 2007); Fossil and imported energy and CO2, see Appendix 3

(l) 18 l/ha (Barber, 2003) (m) 10 l/ha (Barber, 2003) (n) 3 l/ha (Barber, 2003) (o) 3 l/ha (Barber, 2003) (p) 15 l/ha, assumed same as combine harvesting (q) 15 l/ha (Kerry Plowen, KP Contracting, 2008, pers. comm.) (r) 21 l/ha/yr (Barber, 2003), six months (s) $156/ha/yr (MAF, 2007), six months; 0.65 MJ/$ and 0.072 kgCO2-e/$ embodied in typical

farm overheads (own input-output calculations); assumed half of embodied energy is imported (transport energy)

(t) 2706 MJ/ha/yr (Barber, 2003); half-year crop; $130,000 total cost of vehicles (estimated); average 100 ha farm (estimated); 0.07kgCO2/MJ embodied in vehicles (Wells, 2001)

(u) $132/ha/yr (MAF, 2007)


16

(v) Straw left on soil (w) Average distance from farm to plant of 50km (estimated); $0.40/tonne-km medium-haul

(Kerry Plowen, KP Contracting, 2008, pers. comm.); 20.8 MJ/km for a full 26-tonne truck, 7.8 MJ/km empty (Appendix 2)

(x) $650/tonne (Steeman, 2008) (y) 792 MJ/tonne biodiesel (Janulis, 2004); $0.04/MJ average commercial rate (MED, 2007) (z) Sold to stockfeed merchant, ex-store price of canola meal $700/tonne (April 2008, James and

Son, pers. comm.), with approximately 50% mark up (estimated) canola meal sold by biodiesel plant at $500/tonne

(aa) 120 g methanol per kg biodiesel; $NZ572/tonne (www.methanex.com) plus 20% delivery (estimated); for energy and CO2 see Appendix 4

(ab) 1% w/w (Jeong et al., 2004); $1430/tonne (Orica, 2008); 43.3 MJ/kg (Mortimer and Elsayed, 2006)

(ac) 2901 MJ/tonne biodiesel (Mortimer and Elsayed, 2006); 3.8c/MJ average cost for manufacturing users (MED, 2007); Fossil and imported energy and CO2, see Appendices

(ad) 1.005 tonnes per tonne oil (Table 1); 98% conversion efficiency (Jeong et al., 2004) (ae) Three washes at 0.3l/l each (Demirbas, 2002); $0.45/m3 in Christchurch for commercial

operations (Nicky Delaware, 2008, pers. comm.) (af) 21 kg/tonne biodiesel (Mortimer and Elsayed, 2006); $950/1000l (Orica, 2008); 2.4 MJ/kg

(Mortimer and Elsayed, 2006) (ag) 4.89 c/l/yr, assuming a 20Ml/yr plant (based on Hale & Twomey, 2006); Estimates of concrete

and steel (ah) 9.82 c/l/yr, assuming a 20 Ml/yr plant (based on Hale & Twomey, 2006); Assume half of steel

replaced over lifetime of plant (ai) Assumed 1 manager ($120k), 1 engineer ($80k), six operations personnel ($40k) at a 20Ml

plant giving wage costs of $22 per thousand litres (aj) Based on capital value of $20m (CCC website, 2008; ECan website, 2008) (ak) Assumes 10% return on investment (al) GCV of CME 40.07 MJ/kg (Beer et al., 2007)

(am) Assume Potassium Sulphate at 80% of fertiliser manufacturer's price of $800/tonne (Ballance, 2008)

(an) Price assumes sold as unrefined glycerol for chemical use at $1.38/kg (Shaw, 2007; Taylor, 2008)

(ao) Assume no disposal charge (included in council rates) (ap) Average retail diesel price $1.47 for the week ended 18 April 2008 (MED, 2008)

Interpretation It takes 75 kg of dried canola seed with 8% moisture content to produce 1000 MJ of canola biodiesel. The main cost associated with such production is the expense of obtaining the seed: it typically costs farmers approximately $20 to supply 75 kg of seed with the biggest cost inputs for the grower nitrogen fertiliser, weed and pest control, and electricity for irrigation. The biodiesel plant pays $49 per 75 kg which is over double the growing cost to the farmer. This margin is necessary to encourage farmers to move to canola crops. Arable farmers were returning a gross margin of $965/ha for wheat and $708/ha for barley in 2005 (Burtt, 2006). At a return of $650/tonne and a cost of producing of $290/tonne, farmers will have a gross margin of $1258/ha if they yield 3.5 tonnes of seed per hectare. However, it is likely that some costs have been excluded from the farming component of this LCA.

Using the data we have sourced conversion of 75 kg of canola seed to 1000 MJ of energy and co-products will cost $37; of this, $32.30 is allocated to canola biodiesel, $0.58 to potassium salts, and $4.00 to glycerin.

Diesel fossil fuel retailed for $39 per 1000 MJ in April 2008 (Ministry of Economic Development, 2008). Under the proposed Emissions Trading Scheme, liquid fossil fuels producers in New Zealand will be obligated to purchase credits to cover the costs of their


17

emissions from 1 January 2009, though this is now being revisited. All else being equal, this will increase the cost of using fossil diesel and improve the canola biodiesel margin.

From an energy perspective there are benefits. The amount of primary energy required to grow 75 kg of seed is 408 MJ, which produces 25 kg of canola oil and 50 kg of meal. When the energy input into growing and pressing the canola seed is split on an economic allocation basis, the 25 kg of canola oil requires 231 MJ of energy to produce, and the meal 221 MJ of energy – the transesterification process requires an additional 282 MJ of energy. With credits from sales of potassium salts and glycerin, it therefore takes 449 MJ of energy to produce biodiesel with 1000 MJ of energy from canola seed. The equivalent amount of fossil diesel requires 1193 MJ of energy. Fossil fuel energy makes up 70% of the energy required to produce the canola, mostly from diesel, electricity, and the production of nitrogen fertiliser and methanol.

The production and combustion of 1 GJ of canola biodiesel results in emissions of about 27 kgCO2-e, which compares with fossil diesel at around 83 kgCO2-e.

Table 6: Energy return on investment for canola biodiesel

Energy In

(MJ)

Energy Out

(MJ)

Energy

Out/Energy

In

Canola biodiesel 449 1000 2.22

Fossil diesel 1193 1000 0.84

Because the energy return on investment for canola biodiesel is greater than 1 the system is viable from an energy perspective.

Sensitivity analysis The results presented in this report are for a single scenario of costs and production methods. However, some of these factors are highly volatile. The following sections show results for selected changes in some of the more volatile factors in the LCA and LCC. Each of these scenarios represents a change in a single variable. Apart from these scenarios, changes in diesel price have an obvious direct effect on the economic feasibility of biodiesel production.

Base case

Outputs Allo-

cation Cost ($NZ)

Primary MJ

Fossil MJ

Imported MJ

kg CO2-e

1000 MJ Canola Methyl Ester 88% $32.30 449 318 123 27 0.9 kg Potassium salts 2% $0.58 15 11 4 1 2.9 kg Glycerin (90% Glycerol) 11% $4.00 106 75 29 6 0.4 kg FFAs and others 0% $0.00 0 0 0 0

Totals 100% $37 513 364 140 31

Comparison 1000 MJ Fossil Diesel $39 1193 1193 1152 83


18

Canola seed price increase by 20%

The price of canola seed represents 70–80% of the biodiesel manufacturing costs and has already seen a steep increase in the last two years (Steeman, 2008). The following table shows the effects of a further (moderate) 20% increase in the price of canola seed. After by-product credits are included, the cost of production of canola biodiesel ($42/GJ) is no longer economically viable compared with fossil diesel ($39/GJ). Because of the increased costs, and constant by-product credits, the economic allocation to biodiesel of energy and CO2 also increases.

Outputs Allo-

cation Cost ($NZ)

Primary MJ

Fossil MJ

Imported MJ

kg CO2-e


Totals 100% $47 549 390 157 34


Canola meal price increase by 20%

The price of canola meal is also highly variable, with prices currently high in New Zealand because of drought and dairy farm conversions (James and Son, 2008, pers. comm.). If the price should increase a further 20%, this would substantially reduce the cost of production of canola biodiesel ($27/GJ), and also lead to a slight reduction in energy and CO2 allocated to the biodiesel.

Outputs Allo-

cation Cost ($NZ)

Primary MJ

Fossil MJ

Imported MJ

kg CO2-e


Totals 100% $32 469 331 118 27


Canola meal price decrease by 20%

The price of canola meal might also decrease, for example, if the drought ends and more hay is available as feed. In the case of a 20% decrease, the cost of production of biodiesel increases to $37/GJ, and energy and CO2 increase as well.


19

Outputs Allo-

cation Cost ($NZ)

Primary MJ

Fossil MJ

Imported MJ

kg CO2-e


Totals 100% $42 557 396 161 35


Glycerin price increase by 20%

The price of glycerin is also volatile. Glycerin produced by Biodiesel New Zealand is currently sold as a feed supplement to dairy and beef farms (Paul Quinn, 2008, pers. comm.). However, new markets for glycerol are establishing as supply increases and alternative uses are found. If the price of crude glycerin were to increase by 20%, the cost of production of canola biodiesel would decrease slightly (from $32/GJ to $31/GJ), as would energy and CO2.

Outputs Allo-

cation Cost ($NZ)

Primary MJ

Fossil MJ

Imported MJ

kg CO2-e


Totals 100% $37 513 364 140 31


Glycerin price decrease by 20%

Similarly, a decrease in the price of glycerin by 20% would result in slight increases in the cost of production of canola biodiesel and also increases in energy and CO2.

Outputs Allo-

cation Cost ($NZ)

Primary MJ

Fossil MJ

Imported MJ

kg CO2-e


Totals 100% $37 513 364 140 31



20

References AG Lime, 2008. Lime advertisement. Manawatu Standard.

AnzacFuelTech, 2008. Magnesol - dry washing biodiesel clean. http://www.anzacfueltech.com/biodiesel-magnesol-dry-washing.htm [April 2008].

AOF, 2001. Grower quality guide. Australia Oilseeds Federation, 39 p. http://www.australianoilseeds.com [April 2008].

AOF, 2005. Technical and quality standards. Australian Oilseeds Federation Incorporated, 56 p. http://www.australianoilseeds.com/ [April 2008].

Baas, P. and Latto, D., 2005. Heavy vehicle efficiency. Report prepared for the Energy Efficiency and Conservation Authority, TERNZ: Transport Engineering Research New Zealand Ltd, Auckland, NZ, 73 p.

Ballance Agri-Nutrients, 2008. South island price list: Effective from 18 February 2008. 12 p. www.ballance.co.nz [March 2008].

Barber, A., 2003. A case study of total energy & carbon indicators for New Zealand arable & outdoor vegetable production. AgriLINK New Zealand Ltd, 44 p.

Barber, A., Campbell, A., and Hennessy, W., 2007. Primary energy and net greenhouse gas emissions from biodiesel made from New Zealand tallow. AgriLINK New Zealand and CRL Energy, 41 p.

Beer, T., Grant, T., and Campbell, P., 2007. The greenhouse and air quality emissions of biodiesel blends in Australia. KS54C/1/F2.28, CSIRO report prepared for Caltex Pty Ltd. http://www.csiro.au/resources/pf13o.html [April 2008].

Berglund, D. R., McKay, K., and Knodel, J., 2007. Canola production. A-686, North Dakota State University. http://www.ag.ndsu.edu/pubs/plantsci/crops/a686w.htm [April 2008].

Bernesson, S., 2004. Farm-scale production of RME and ethanol for heavy diesel engines. PhD thesis. Acta Universitatis Agriculturae Suecia, Agraria.

Bernesson, S., Nilsson, D., and Dansson, P. A., 2004. A limited LCA comparing large- and small-scale production of rape methyl ester (RME) under Swedish conditions. Biomass and Bioenergy, 26:545–559.

Biodiesel Oils NZ, 2007. Biodiesel plant boost for Waikato, Media release 17 January 2007. http://www.biodieseloils.com/news.htm.

Burtt, E. S., 2006. Financial budget manual 2006. Lincoln University, Lincoln.

Caney, R. W., Reynolds, J. E., and Delmar-Morgan, M., 2004. Reed’s marine distance tables, Ninth edition. Adlard Coles Nautical, London, 223 p.

Chan, J., 2008. Asia refined glycerine values soften. ICIS News, 26 March 2008. www.icis.com [April 2008].


21

Clift, R., Cowell, S., and Doig, A., 1995. A case study of LCI by allocation and system extension: Straw. Presented at International Workshop on Life Cycle Assessment and Treatment of Solid Waste, Stockholm, 28–29 September 1995.

Core, J., 2005. New method simplifies biodiesel production. Agricultural Research, 53 (4):13.

Cussins, M., 2005. Ethanol distillation process calculations. In: J. Thiele (Editor), Estimate of the energy potential for fuel ethanol from putrescible waste in New Zealand. Waste Solutions Ltd, Christchurch, NZ.

DeClercq, D. R., 2007. Quality of western Canadian canola 2007. Canadian Grain Commission, 23 p. http://www.grainscanada.gc.ca/ [April 2008].

Demirbas, A., 2002. Biodiesel from vegetable oils via transesterification in supercritical methanol. Energy Conversion and Management, 43 (17):2349–2356.

Downey, 2006. Rapeseed to canola: Rags to riches. Presented at The National Agricultural Biotechnology Council’s Eighteenth Annual Meeting, Cornell University, NY, USA, 12–14 June 2006. http://www.nysaes.cornell.edu/ent/nabc/schedule.html [April 2008].

Franzen, D. W. and Lukach, J., 2007. Fertilizing canola and mustard. North Dakota State University, Fargo, North Dakota, USA, 8 p. http://www.ag.ndsu.edu/pubs/plantsci/soilfert/sf1122w.htm [April 2008].

GrainFoods CRC, 2007. Grain futures platform. http://www.grainfoodscrc.com.au/grains-future-platform.php [April 2008].

Green, M., 1987. Energy in pesticide manufacture, distribution and use. In: B. Stout and M. Mudahar (Editors), Energy in plant nutrition and pest control. Elsevier, Amsterdam, pp. 165–177.

Hale & Twomey Ltd, 2006. Enabling biofuels: Biofuels supply options. Report prepared for the Ministry of Transport, Wellington, 41 p. http://www.transport.govt.nz/ [March 2008].

Hobbs, P., Sayre, K., and Ortiz-Monasterio, J., 1998. Increasing wheat yields sustainably through agronomic means. NRG Paper 98-01. CIMMYT, Mexico, D.F.

IKP and PE, 2004. GaBi 4. Institut für Kunststoffprüfung und Kunststoffkunde and PE Europe GmbH, Echterdingen. www.gabi-software.com.

ISO, 1997. Environmental management – life cycle assessment: Principles and framework, ISO 14040.

Janulis, P., 2004. Reduction of energy consumption in biodiesel fuel life cycle. Renewable Energy, 29:861–871.

Jeong, G.-T., Park, D.-H., Kang, C.-H., Lee, W.-T., Sunwoo, C.-S., Yoon, C.-H., Choi, B.-C., Kim, H.-S., Kim, S.-W., and Lee, U.-T., 2004. Production of biodiesel fuel by transesterification of rapeseed oil. Applied Biochemistry and Biotechnology, 114 (1):747–758.


22

Kiwifuels, 2007. Rangiora show day 20 Oct 2007. http://www.kiwifuels.com/Kiwifuels-Restricted/exhibitions.htm [March 2008].

Linstrom, P. J. and Mallard, W. G. (Editors), 2005. NIST chemistry webbook. National Institute of Standards and Technology, Gaithersburg MD, USA. http://webbook.nist.gov [April 2008].

MAF, 1986. Arable management recommendations: Maximizing crop profitability 1986/87. Ministry of Agriculture and Fisheries, Christchurch, NZ.

MAF, 2007. Horticulture and arable monitoring report 2007. Ministry of Agriculture and Forestry, 160 p. www.maf.govt.nz [March 2008].

Martin, F., 2006. The performance of new TT canola varieties in national variety testing (NVT) WA. Presented at Agribusiness Crop Updates 2006: Oilseeds, Perth, Australia, 15–16 February 2006. http://www.agric.wa.gov.au/content/fcp/co/oilseeds2006.htm [April 2008].

Mattsson, B., Cederberg, C., and Blix, L., 2000. Agricultural land use in life cycle assessment (LCA): Case studies of three vegetable oil crops Journal of Cleaner Production, 8 (4):283–292.

McKinnon, A., Ge, Y., and Leuchars, D., 2003. Analysis of transport efficiency in the UK food supply chain: Full report of the 2002 key performance indicator survey. Heriot-Watt University, Edinburgh, UK, 38 p. www.sml.hw.ac.uk [April 2008].

McLaughlin, N., Hiba, A., Wall, G., and King, D., 2000. Comparison of energy inputs for inorganic fertilizer and manure based corn production. Canadian Agricultural Engineering, 42 (1).

MED, 2005–2007. Energy data file (various years). Ministry of Economic Development. www.med.govt.nz.

MED, 2007. New Zealand energy data file June 2007. Ministry of Economic Development, Wellington, 172 p. www.med.govt.nz/energy/info/ [July 2007].

MED, 2008. International and domestic petrol and diesel price comparisons. www.med.govt.nz [24 April 2008].

Methanex, 2006. Methanex factbook 2006. www.methanex.com [April 2008].

MfE, 2005. Energy efficient ways to improve the economic bottom line of your road transport business. 30 p. www.mfe.govt.nz [April 2008].

Ministry for the Environment, 2007. New Zealand’s greenhouse gas inventory 1990–2005. ISSN: 1117-4525, ME number: 811, Ministry for the Environment, Wellington, NZ, 158 p. www.mfe.govt.nz.

Ministry of Economic Development, 2007a. Energy greenhouse gas emissions 1990–2006. ISSN 1173-6771, Ministry of Economic Development, Wellington, 48 p. www.med.govt.nz.


23

Ministry of Economic Development, 2007b. New Zealand energy data file June 2007. Ministry of Economic Development, Wellington, 172 p. www.med.govt.nz/energy/info/ [July 2007].

Ministry of Economic Development, 2008. Weekly average components of diesel price. http://www.med.govt.nz/templates/MultipageDocumentPage____20159.aspx [30 April].

Mitsubishi Motors NZ, 2007. Shogun muscles up. Truck News, 51 (Spring 2007).

Mortimer, N. D. and Elsayed, M. A., 2006. North east biofuel supply chain carbon intensity assessment. Report prepared for Northeast Bio-fuels Ltd, North Energy Associates Ltd, 64 p. http://www.northeastbiofuels.com/ [March 2008].

NASS, 2008. Crop production, 11 March 2008. National Agricultural Statistics Service, 18 p. http://usda.mannlib.cornell.edu/MannUsda/homepage.do [April 2008].

Nebraska Energy Office, 2008. Ethanol and unleaded gasoline average rack prices. http://www.neo.ne.gov/statshtml/66.html [April 2008].

Oregon State University, 2007. Green polymer made from biodiesel and wine products. ScienceDaily, 14 June 2007. http://www.sciencedaily.com/releases/2007/06/070613135850.htm [April 2008].

R 'n' J Aerofoils, 1998. Road test: The figures don't lie... http://www.truckaerofoils.co.nz/road_test.html [April 2008].

Ravensdown, 2008. Price list effective 1 February 2008. http://www.ravensdown.co.nz/ [March 2008].

Saunders, C., Barber, A., and Taylor, G., 2006. Food miles: Comparative energy/emissions performance of New Zealand’s agriculture industry. Research Report No. 285, Lincoln University, Lincoln, NZ, 119 p. http://www.lincoln.ac.nz/story9430.html [May 2007].

Shaw, C., 2007. Glycerine (Europe) price report 3 October 2007. ICIS pricing.

Statistics New Zealand, 2008. Overseas trade (import & export) statistics.

Steeman, M., 2008. Canola-seed cost lifting biodiesel price. 8 January 2008. http://www.stuff.co.nz/stuff/4346969a3600.html [January 2008].

Taylor, J., 2008. Glyceringlut is over. ICIS Chemical Business (Weekly), 21 January 2008.

Toohey, D., Ananda, J., and Crase, L., 2003. Pre-feasibility study into biodiesel opportunity. Pratt Water Solutions. http://www.napswq.gov.au/publications/books/pratt-water/working-papers/biodiesel.html [April 2008].

USDA, 2005. Biodiesel production gets simplified with new method. ScienceDaily, 30 April 2005. http://www.sciencedaily.com/releases/2005/04/050421233819.htm [April 2008].

USDA, 2007. Fortifying feed with biodiesel co-products. ScienceDaily, 9 October 2007. http://www.sciencedaily.com/releases/2007/10/071006085450.htm [April 2008].


24

Van Gerpen, J., Shanks, B., Pruszko, R., Clements, D., and Knothe, G., 2004. Biodiesel production technology. http://www.nrel.gov/docs/fy04osti/36244.pdf [April 2008].

Yazdani, S. and Gonzalez, R., 2007. Anaerobic fermentation of glycerol: A path to economic viability for the biofuels industry. Current Opinion in Biotechnology, 18:213–219.

Zah, R., Böni, H., Gauch, M., and Hischier, R., 2007. Life cycle assessment of energy products: Environmental impact assessment of biofuels. Empa, 20 p.


25

Appendix 1: Overview of LCA Method from Beer et al. 2007

Life cycle assessment (LCA) is the process of evaluating the potential effects that a product, process, or service has on the environment over the entire period of its life cycle. The International Organisation for Standardisation (ISO, 1997) has defined an LCA as:

A technique for assessing the environmental aspects and potential impacts associated with a product by:

• compiling an inventory of relevant inputs and outputs of a product system

• evaluating the potential environmental impacts associated with those inputs and outputs

• interpreting the results of the inventory analysis and impact assessment phases in relation to the objectives of the study.

The technical framework for life cycle assessment consists of four components, each having a vital role in the assessment. They are interrelated throughout the entire assessment and in accordance with the current terminology of the ISO. The components are goal and scope definition, inventory analysis impact assessment, and interpretation.

Figure 5: The components of an LCA (Source: ISO (1997))


26

Appendix 2: Transport Energy Consumption There are no standard figures available in New Zealand for fuel efficiency of road freight transport. A recent report by TERNZ used 0.3 l/km for single unit trucks and 0.5 l/km for articulated vehicles (rigs), quoting figures obtained from industry (Baas and Latto, 2005). A report by the Ministry for the Environment used an average for the heavy vehicle fleet of 0.6 l/km (MfE, 2005). A 1998 demonstration of a truck aerofoil, carrying a refrigerated 20-tonne load the length of New Zealand showed an average fuel efficiency of 0.44 l/km (R 'n' J Aerofoils, 1998). Mitsubishi recently announced a new rig with a New Zealand fuel efficiency of 0.49 l/km carrying a 26-tonne payload (Mitsubishi Motors NZ, 2007). Given that these last two are claims of better than average fuel efficiency, it appears likely the average would be higher than 0.5 l/km. Fuel efficiency in Europe appears to be significantly greater, with data from GaBi (IKP and PE, 2004) – a life cycle assessment software – and a 2003 UK survey (McKinnon et al., 2003) both indicating 0.34 l/km for articulated trucks.

We have used a fuel consumption rate of 0.55 l/km for an articulated truck having a maximum payload of 26 tonnes, and 0.3 l/km for a single truck having a maximum payload of 10 tonnes. Following the method used by GaBi (IKP and PE, 2004), we have used a logarithmic relationship to relate fuel consumption to truck loading (see Figure 6), with minimum fuel consumption at 10% loading. These are presented as average figures, and will vary widely depending on terrain, maintenance, driving style, and speed.

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Load

litr

es/k

m

Articulated truck(26 tonne max payload)

Single unit truck(10 tonne max payload)

Figure 6: Fuel efficiency of trucks by truck size and actual payload (source: GaBi (IKP and PE, 2004)

and Baas and Latto (2005))


27

Appendix 3: Electricity Electricity supplied to the national grid is generated from a combination of fossil-based energy resources and non-fossil resources, and a combination of imported energy and domestic energy. The two forms of fossil energy used in electricity generation are coal and natural gas. Significant amounts of coal used for electricity generation are now imported, while all natural gas is extracted domestically. Table 7 gives the total, fossil, and imported primary energy inputs into (non-cogeneration) electricity generation in New Zealand between 2002 and 2006, and shows the fossil energy, imported energy, and greenhouse gas emissions per unit of consumer electricity. All these indicators are likely to change in the near future as the New Zealand Government’s policies on climate change take effect (amongst other effects).

Table 7: Electricity energy contents, 2002–2006 (excluding cogeneration)

Total

primary energy (PJ)

Fossil primary

(PJ)

Imported coal (PJ)

Consumed electricity

(PJ)

Primary energy in consumer electricity (MJ/MJ)

Fossil energy in consumer electricity (MJ/MJ)

Imported energy in consumer electricity (MJ/MJ)

GHG emissions (ktCO2-e)

Implied emission

factor (kgCO2-e/MJ)

2002 241 84 2.7 119 2.02 0.71 0.02 5673 0.048

2003 243 94 10.3 126 1.93 0.75 0.08 6904 0.055

2004 247 83 20.5 129 1.92 0.64 0.16 6573 0.051

2005 269 109 25.0 133 2.02 0.82 0.19 8728 0.066

2006 272 112 28.4 135 2.02 0.83 0.21 8659 0.064

Average 1.98 0.75 0.13 0.057

Source: Ministry of Economic Development (2007a; 2007b)


28

Appendix 4: Methanol Methanol is produced in New Zealand from natural gas at Methanex’s plant(s) in Taranaki. Based on gas consumption data from the Energy Data Files (MED, 2005–2007) and Methanex’s production data for New Zealand (Methanex, 2006), and including an allowance for upstream energy use by the gas industry and transmissions losses, the average energy embodied in methanol is approximately 40.1 MJ/kg, with only a small variation between years (less than 2%, regardless of production capacity). Using additional data from New Zealand’s Greenhouse Gas Inventory (Ministry for the Environment, 2007), the CO2 emissions embodied in methanol average 0.95 kgCO2-e/kg. This includes CO2 and CH4 emissions from Methanex’s plant(s), flaring by the gas industry, and (small) gas transmission losses. This figure can vary by up to 10% from year to year.


29

Appendix 5: Urea Embodied energy and CO2 emissions data used in previous studies have included only natural gas consumption at the plant and do not account for indirect energy use and CO2 emissions. Table 8 summarises the authors’ calculations of the direct and indirect contributions to urea at the point of delivery to farm (Peter Mourits, 2008, Ballance, pers. comm.; MED, 2005–2007; Ministry for the Environment, 2007; Caney et al., 2004; Saunders et al., 2006). These figures are valid for 2004–2006.

Table 8: Energy and CO2 embodied in urea delivered to New Zealand farms

Component MJ/kg urea Fossil MJ/kg

urea

Imported

MJ/kg urea

ktCO2-e/ kg

urea

Gas extraction and treatment1 0.85 0.85 0.48 0.12

Natural gas used by urea plant2 28.22 28.22 16.05 1.34

Electricity used by urea plant3 0.42 0.30 0.24 0.02

Methane emissions by urea plant4 0.00 0.00 0.00 0.01

Services indirect5 0.17 0.13 0.13 0.02

Transportation to farm6 0.43 0.43 0.43 0.03

International transport7 0.47 0.47 0.47 0.03

Total 30.55 30.39 17.80 1.56

Figures in Wells (2001) 30.00 1.38

Notes 1. The process of extracting and treating natural gas 2. Includes gas combusted for energy in the plant and all emissions after application on the farm 3. Estimated 4. Methane emissions from leaks and incomplete gas combustion 5. Energy and emissions embodied in services purchased by the urea plant 6. Estimated energy and emissions associated with urea transportation 7. Represents imports of urea from Saudi Arabia and Malaysia


30

Appendix 6: Common Factors Where information on fossil-energy components was unavailable, we have assumed all primary energy is derived from fossil sources to be conservative when comparing with the fossil alternative.

The primary energy content of fossil diesel is 1.193 MJ/MJ (Barber et al., 2007), which is assumed to have negligible non-fossil content. As diesel supply is 31% imported, and 5% of the New Zealand refinery’s input is local oil (both average of 2004-2006; MED, 2007), approximately 97% of diesel energy is imported. Fossil diesel has a gross calorific value (GCV) of 45.75 MJ/kg and 37.86 MJ/litre (MED, 2007).

Canola methyl ester has a gross calorific value (GCV) of 40.07 MJ/kg (Beer et al., 2007).

Global warming potentials (GWPs) used for methane (CH4) nitrous oxide (N2O) were 21 and 298, as required under the Kyoto Protocol.

Documents

Life Cycle Assessment of Canola Biodiesel in New Zealandfolk.uio.no/roberan/docs/NZCEE2008-LCAofCanolaBiodiesel.pdf · Life Cycle Assessment and Landcare Research and Costing of Canola