Biodiesel Fuel

The use of vegetable oils for engine fuels may seem insignificant today, but such oils may become in the course of time as important as petroleum and the coal tar products of the present time. Rudolph Diesel, 1912

Biodiesel sales are booming in Texas, the country's largest producer of biodiesel transportation fuel. Texas has a current production capacity of over 100 million gallons per year. As of 2008, Texas has more than 20 commercial biodiesel plants with additional plants under construction or being expanded, as well as over 50 retail biodiesel fueling sites. Austin has the highest number of biodiesel fueling stations of any city in the nation. See biodiesel fueling stations in Texas.

Biodiesel is a domestically produced alternative diesel fuel. It can be used in its pure form (B100) or blended at any ratio with petroleum diesel for economy and improved cold weather performance. Since B100 costs more than diesel, blends are common. Most biodiesel is sold as B20, a blend that is 80 percent conventional diesel. Large trucks, buses, boats and power generation equipment require diesel engines, and B20 fuel can be used in these engines without modification. B20 is easy and inexpensive for a fueling station to sell because it can be stored in diesel tanks and pumped with diesel equipment.

Biodiesel can also be used to generate electricity, which can be used on site or transmitted through the power grid, just like electricity derived from any other source. For a biodiesel overview, see the Biodiesel Overview in the Texas Comptroller's 2008 energy report.

Government incentives along with fluctuating oil prices, higher diesel fuel prices, energy security and environmental issues have made biodiesel production profitable, resulting in the rapid expansion of the industry. Biodiesel also furthers the rural farm economy by creating markets for crops such as soybeans and cottonseed. In 2004,there were 22 plants nationwide with a capacity to produce 157 million gallons of fuel. Today,there are 105 plants capable of producing 864 million gallons of biodiesel. The National Biodiesel Board (NBB) map below shows the locations of these plants (the blue circles indicate BQ-9000 accredited producers).

In May, 2008, the U.S. Congress passed the Food, Conservation, and Energy Act of 2008, the new farm bill that will accelerate the commercialization of advanced biofuels, including cellulosic ethanol, encourage the production of biomass crops, and expand the current Renewable Energy and Energy Efficiency Program. Section 9003 provides for grants covering up to 30% of the cost of developing and building demonstration-scale biorefineries for producing "advanced biofuels," which essentially includes all fuels that are not produced from corn kernel starch. It also allows for loan guarantees of up to $250 million for building commercial-scale biorefineries to produce advanced biofuels. For bill details, see this DOE article.

Biodiesel Infrastructure

Fleet managers interested in using alternative fuel vehicles (AFVs) need to carefully consider what it will take to install the proper fueling infrastructure to meet their needs. There are many things to consider when building alternative fueling infrastructure, such as codes and standards, the right fueling appliances, safety standards, and employee training. The U.S. Department of Energy web site, Biodiesel Infrastructure Development Resources, provides an overview of safety issues, equipment, and standards. Related links, contacts, success stories, and tips for getting started are also featured.

Biodiesel Feedstocks

Because the United States is the largest producer of soybeans in the world, most U.S. biodiesel is made from soybean oil or yellow grease, primarily recycled vegetable cooking oil from restaurants.

In Texas, the most common feedstocks are soybean, cottonseed, palm, and canola. Biodiesel can be made from other oils and fats as well, such as corn, mustard, coconut, peanut, olive, hemp, sesame, sunflower, and safflower oils, and oils produced from algae, fungi, bacteria, molds, and yeast.

Although Texas is the country's largest producer of biodiesel and its climate and soil conditions are well suited for growing crops that could eventually end up in biodiesel production, Texas biodiesel producers import much of the feedstocks used in their refineries. Texas is a minor producer of soybeans, they are the preferred feedstock for most Texas biodiesel producers. As the price of soybeans continues to increase, and local access to soybeans in Texas remains limited, Texas biodiesel producers are looking to alternative feedstocks such as other oilseed crops and used cooking oil. Since most soybean supplies are shipped to Texas from the Midwest, Texas biodiesel producers are trying to cut costs by using local feedstocks that do not have to be shipped for long distances.

In April 2006, the Biodiesel Coalition of Texas (BCOT) appeared before the Texas House Committee on Agriculture and Livestock to discuss the potential contributions of Texas agriculture to biodiesel feedstocks and to suggest ways that the legislature can encourage Texas biodiesel producers to use Texas agricultural products in their refineries. BCOT members advocate the development of native Texas crops such as cottonseed and sunflower seed oil. Canola, another Texas native plant, is also being considered as a possible biodiesel energy crop for the Panhandle and Northeast Texas.

Currently, Texas A&M University is working with Galveston Bay Biodiesel to develop and commercialize new biodiesel feedstock technologies as options to soybean and canola feedstocks.

It's hard not to get excited about algae's potential. Its basic requirements are few: carbon dioxide, sun, and water. Algae can flourish in non-arable land or in dirty water, and when it does flourish, its potential oil yield per acre is unmatched by any other terrestrial feedstock. Paul Dickerson, U.S. Department of Energy, EERE 2008

Algae grow rapidly and can have a high percentage of lipids, or oils which conventional petroleum refineries can convert into jet fuel or diesel fuel—a product known as “green diesel.” Algae organisms use energy from the sun to combine water with carbon dioxide (CO2) to create biomass. They can double their mass several times a day and produce at least 15 times more oil per acre than alternatives such as rapeseed, palms, soybeans, or jatropha. As the slime grows, it makes a kind of vegetable oil, similar to the oil produced from sunflower seeds or soybeans.

Because algae can grow under severe conditions — extremes of temperature, pH and salinity, algae-growing facilities can be built on arid coastal land unsuitable for conventional agriculture. Key technical challenges include identifying the strains with the highest oil content and growth rates and developing cost-effective growing and harvesting methods.

The hard part about algae production is growing the algae in a controlled way and harvesting it efficiently. Most companies pursuing algae as a source of biofuels are pumping nutrient-laden water through plastic tubes (called "bioreactors") that are exposed to sunlight.

NREL & Chevron Collaborate on Algae
The National Renewable Energy Laboratory (NREL) is a U.S. Department of Energy (DOE) research facility laboratory for biofuels research and development. NREL's genetic engineering work has produced algae with a high lipid content that can be used as a source of biodiesel fuel. In October 2007 NREL and Chevron announced that they have entered into a collaborative research and development agreement to produce biofuels from algae. Under the agreement, Chevron and NREL scientists will collaborate to identify and develop algae strains that can be economically harvested and processed into transportation fuels such as jet fuel. See the NREL press release. Shell is another oil company that is exploring the potential of algae. See the Shell press release.

Algae Crude Oil & Gasoline
Sapphire Energy announced in May 2008 that it has produced "green" gasoline from a synthetic crude oil made from algae. The algae yield a crude oil replacement that is literally green, and according to the company, the "green crude" meets fuel quality standards and is completely compatible with the existing petroleum infrastructure, from refinement through distribution to retail suppliers. Gasoline produced from the green crude achieved a 91 octane rating while meeting fuel quality standards. Sapphire Energy considers the achievement to be at the forefront of an entirely new industrial category, called "green crude production." See the Sapphire Energy press release and its companion Web site, Green Crude Production.

Green Star Announces Algae Breakthrough
In May 2008 , Green Star Products announced its development of a micronutrient formula to increase the growth rate of algae. According to the company, its new formula can increase the daily growth rate by 34% and can double the amount of algae produced in one growth cycle. See the Green Star Products press release.

Texas Algae

El Paso Algae Farm
Like all plants, algae require carbon dioxide, water with nutrients and sunlight for growth. El Paso, with almost unlimited year-round sunshine, is the ideal location for growing a clean, green algae. Valcent Products has commissioned the world's first commercial-scale bioreactor pilot project at its El Paso test facility. Valcent and Global Green Solutions are collaborating in a joint venture named Vertigro to extract non-polluting biodiesel fuel from algae. Vertigro's algae-growing process uses 10-foot-long water-filled plastic bags suspended in a greenhouse-like setting in the desert to grow the algae.

According to Vertigo, the bioreactor system can be deployed on non-arable land, requires very little water due to its closed circuit process, does not incur significant labor costs and does not employ fossil fuel burning equipment, unlike traditional food/biofuel crops such as soy and palm oil. Vertigro hopes to begin producing enough biodiesel to sell commercially by mid to late 2008. For an excellent, descriptive presentation of the growing of algae, see this Vertigro video.

Algae for Jet Fuel
South Texas will be home to a proposed research and development program to develop algae derived JP8 jet fuel. The project will be part of PetroSun’s initial commercial algae-to-biofuels facility in Rio Hondo, Texas. The algae farm is estimated to produce at least 4.4 million gallons of algal oil and 110 million pounds of biomass annually. See this Marketwire article, PetroSun Issues Algae-to-Biofuels Corporate Updates.

New Biodiesel Standard Allows Automaker Approval of 20% Blends June 2008
ASTM International, one of the largest standards development organizations in the world, has approved a new specification for diesel fuel blends containing 6%-20% biodiesel. According to the National Biodiesel Board (NBB), ASTM standards for the 20% biodiesel blends, or B20, are a crucial hurdle for the full acceptance of the use of such blends in diesel vehicles. With the new specification in place, automakers and engine manufacturers can test B20 in their diesel engines and know that consumers will be fueling their vehicle with a fuel of the same quality. While setting the new B20 standard, ASTM International also made changes to its specifications for B5 and for 100% biodiesel, or B100.

Updated Labeling Requirements for Diesel Fuels wtih Renewable Fuel Blends June 2008
The Energy Independence and Security Act of 2007 requires the Federal Trade Commission (FTC) to set labeling requirements that address the blending of biodiesel and other types of biomass-based diesel fuels into diesel fuel. Some companies are converting biomass such as animal fats directly into a liquid with the properties of diesel fuel, a product that blurs the lines between biodiesel and diesel fuel. At first, the FTC proposed to treat all renewable diesel fuels the same, but the NBB warned that not all biomass-based diesel fuels would necessarily meet the ASTM standards required by automakers for diesel fuels. On the other hand, biomass-based diesel fuels that meet ASTM standards could be used in much higher concentrations than biodiesel, which is usually limited to 20% biodiesel blends for standard diesel vehicles. Considering those comments, the FTC decided to set separate labeling requirements for biodiesel blends and biomass-based diesel fuel blends. See the final ruling.