WHAT
IS BIODIESEL
![](https://webarchive.library.unt.edu/eot2008/20090117071058im_/http://www.hampeloil.com/images/Image5.gif)
Biodiesel
is the name for a variety of ester-based oxygenated fuels made from
soybean oil or other vegetable oils or animal fats. The
concept of using vegetable oil as a fuel dates back to 1895 when Dr.
Rudolf Diesel developed the first diesel engine to run on vegetable
oil. Diesel demonstrated his engine at the World Exhibition in Paris
in 1900 using peanut oil as fuel.
Properties of Biodiesel
Todays diesel engines
require a clean-burning, stable fuel that performs well under a variety
of operating conditions. Biodiesel is the only alternative fuel that
can be used directly in any existing, unmodified diesel engine. Because
it has similar properties to petroleum diesel fuel, biodiesel can be
blended in any ratio with petroleum diesel fuel. Many federal and state
fleet vehicles are already using biodiesel blends in their existing
diesel engines.
The low emissions
of biodiesel make it an ideal fuel for use in marine areas, national
parks and forests, and heavily polluted cities. Biodiesel has many advantages
as a transport fuel. For example, biodiesel can be produced from domestically
grown oilseed plants such as soybeans. Producing biodiesel from soybeans
and other domestic crops reduces the United States dependence on foreign
petroleum, increases agricultural revenue, and creates jobs.
Key Advantages of Biodiesel:
1.
Biodiesel is the only alternative fuel in the US to complete EPA
Tier I Health Effects Testing under section 211(b) of the Clean
Air Act, which provide the most thorough inventory of environmental
and human health effects attributes that current technology will
allow.
2.
Biodiesel is the only alternative fuel that runs in any conventional,
unmodified diesel engine. It can be stored anywhere that petroleum
diesel fuel is stored.
3.
Biodiesel can be used alone or mixed in any ratio with petroleum
diesel fuel. The most common blend is a mix of 20% biodiesel with
80% petroleum diesel, or "B20."
4.
The lifecycle production and use of biodiesel produces approximately
80% less carbon dioxide emissions, and almost 100% less sulfur dioxide.
Combustion of biodiesel alone provides over a 90% reduction in total
unburned hydrocarbons, and a 75-90% reduction in aromatic hydrocarbons.
Biodiesel further provides significant reductions in particulates
and carbon monoxide than petroleum diesel fuel. Biodiesel provides
a slight increase or decrease in nitrogen oxides depending on engine
family and testing procedures. Based on Ames Mutagenicity tests,
biodiesel provides a 90% reduction in cancer risks.
5.
Biodiesel is 11% oxygen by weight and contains no sulfur. The use
of biodiesel can extend the life of diesel engines because it is
more lubricating than petroleum diesel fuel, while fuel consumption,
auto ignition, power output, and engine torque are relatively unaffected
by biodiesel.
6.
Biodiesel is safe to handle and transport because it is as biodegradable
as sugar, 10 times less toxic than table salt, and has a high flashpoint
of about 300 F compared to petroleum diesel fuel, which has a flash
point of 125 F.
7.
Biodiesel can be made from domestically produced, renewable oilseed
crops such as soybeans.
8.
Biodiesel is a proven fuel with over 30 million successful US road
miles, and over 20 years of use in Europe.
9.
When burned in a diesel engine, biodiesel replaces the exhaust odor
of petroleum diesel with the pleasant smell of popcorn or french
fries.
10. The Congressional
Budget Office, and Department of Defense, US Department of Agriculture,
and others have determined that biodiesel is the low cost alternative
fuel option for fleets to meet requirements of the Energy Policy
Act.
BIODIESEL IMPACT
An
important factor that is not usually considered when calculating the
costs and benefits of industrial feedstock materials is the macroeconomic
effect associated with domestically produced, renewable energy sources.
Economic benefits of a biodiesel industry in the US would include value
added to the feedstock (oilseeds or animal fats), an increased number
of manufacturing jobs, an increased tax base from plant operations and
income taxes, investments in plant and equipment, improvement of our
trade balance, and reductions in health care costs due to improved air
quality and greenhouse gas mitigation.
Biodiesel has positive impacts
on the state economy. An
Iowa State University study concluded that three economic benefits would
accrue to state from biodiesel. First, biodiesel expands demand for
soybean oil, causing processors to pay more for soybeans, In addition,
soybean farmers near the biodiesel plant would receive slightly higher
prices for soybeans; and third, the presence of a facility that creates
energy from soybeans would add value to the state's industrial and income
base.
Dr.
Hayes concluded that, "If the state of Iowa were to mandate the
use of a 20 percent biodiesel blend in its state vehicle fleet where
feasible, the total additional cost of this policy would range from
$400,000 to $500,000. If it could be shown that this policy would result
in a new five million gallon biodiesel plant in the state, then the
policy would create more new tax revenues than it would cost and would
clearly be in the best interest of the state."
Biodiesel
has positive implications for production agriculture.
A 1996 economic study published by the USDA
Office of Energy predicted that a modest, sustained annual market for
biodiesel of 100 million gallons in the US would contribute approximately
seven cents to the price of each bushel of soybeans produced in the
US. Based on last years harvested crop, the increase could have resulted
in more than $168 million directly to the use of biodiesel.
Biodiesel has a positive impact
on the US balance of trade.A
1998 biodiesel lifecycle study jointly sponsored by the US Department
of Energy and the US Department of Agriculture concluded that increased
use of biodiesel and biodiesel blended fuels such as B20 would substantially
benefit our economy. The report concluded that national spending to
import petroleum sends significant amounts of dollars out of our domestic
economy every year. Biodiesel offers the potential to shift this spending
from foreign imports to domestically produced energy. The report notes:
"With its ability to be used directly in existing diesel engines,
biodiesel offers the immediate potential to reduce our demand for petroleum
in the transportation sector."
Biodiesel
contributes jobs to the local economy.
Economic
work conducted at the University of Missouri estimated the benefits
of producing biodiesel in a metropolitan region. This study concluded
that 100 million gallons of biodiesel production could generate an estimated
$8.34 million increase in personal income and over 6,000 additional
temporary or permanent jobs for the metropolitan region.
BIODIESEL
USAGE
Basic Terminology: Biodiesel is the pure, or
100 percent, biodiesel fuel.
It is referred to as B100 or "neat" fuel.
A biodiesel blend
is pure biodiesel blended with petrodiesel. Biodiesel blends are
referred to as Bxx. The xx indicates the amount of biodiesel the
blend (i.e., a B20 blend
is 20 percent biodiesel and
80 percent petrodiesel).
Ensure
the neat biodiesel fuel meets the NBB biodiesel specification for
pure biodiesel before blending with petrodiesel. The
specification for biodiesel is designed to ensure that consumers will
not experience operational problems from the fuels use. Make sure
that biodiesel meets this specification and that the fuel supplier
will warrant this fact. Quality fuel will provide the consumer with
improved air quality and enhanced operability. Poor quality fuel will
create operability problems and increased maintenance activity. Purchase
only qualified fuel from a reputable source.
Check
fuel filters on the vehicles and in the delivery system frequently
upon initial biodiesel use and change them as necessary. Biodiesel
and biodiesel blends have excellent solvent properties. In some cases
the use of petrodiesel, especially #2 petrodiesel (has not been observed
with #1), leaves a deposit in the bottom of fueling lines, tanks,
and delivery systems over time. The use of biodiesel can dissolve
this sediment and result in the need to change filters more frequently
when first using biodiesel until the whole system has been cleaned
of the deposits left by the petrodiesel. This same phenomenon has
been observed when switching from #2 to #1 petrodiesel.
Be aware of biodiesel's freezing properties
and take precautions as with #2 petrodiesel use in cold weather.
A 20 percent blend of biodiesel with petrodiesel
raises the freezing properties approximately 3° to 5° F (pour point,
cloud point, cold filter plugging point). In most cases, this has
not been an issue. Twenty percent biodiesel blends have been used
in the upper Wisconsin area and in Iowa during -25° F weather with
no problems. Solutions to biodiesel winter operability problems are
the same solutions used with conventional #2 petrodiesel (use a pour
point depressant, blend with #1diesel, use engine block or fuel filter
heaters on the engine, store the vehicles near or in a building, etc.).
Neat biodiesel will begin to freeze at about 25° F and, if used or
stored on site, will need to be kept in an area that will not get
below that temperature. Most underground tanks are around 50° F and
are not a problem.
Wipe
painted surfaces immediately when using biodiesel.As
mentioned earlier, biodiesel is a good solvent. Biodiesel can, if
left on a painted surface long enough, dissolve certain types of paints.
Therefore it is recommended to wipe any biodiesel or biodiesel blend
spills from painted surfaces immediately.
Store
biodiesel or biodiesel blend soaked rags in a safety can to avoid
spontaneous combustion.
Biodiesel soaked rags should be stored in a safety
can or dried individually to avoid the potential for spontaneous combustion.
Biodiesel is made from vegetable oils and animal fats which can oxidize
and degrade over time. The oxidizing process can produce heat. In
certain environments, for example, a pile of oil soaked rags can become
concentrated enough to result in a spontaneous fire.
Use
the biodiesel within one year.
All fuels, including #2 and #1 petrodiesel, have a
shelf life. This is also true with biodiesel and biodiesel blends.
Industry experts recommend that biodiesel be used within one year
to ensure that the quality of the fuel is maintained. Storage time
does not impact biodiesel distribution given biodiesels production
logistics. Biodiesel is generally not stored for long periods of time.
Production levels and rates are established to meet demand (similar
to "just in time" inventory methods). This is an advantage
enjoyed by renewable fuels, like biodiesel, that cannot be shared
by its fossil fuel counterparts.
The National Biodiesel Board is available to answer
additional questions regarding the transition to biodiesel fuel use.
Please
do not hesitate to call and ask your questions.
NBB can be reached at (800) 841-5849 or via e-mail at
biodiesel@sockets.net.
EMISSIONS
Biodiesel
is the first and only alternative fuel to have a complete evaluation
of emission results and potential health effects submitted to the U.S.
Environmental Protection Agency (EPA) under the Clean Air Act Section
211(b). These programs include the most stringent emissions testing
protocols ever required by EPA for certification of fuels or fuel additives
in the US. The data gathered through these tests complete the most thorough
inventory of the environmental and human health effects attributes that
current technology will allow. A survey of the results is provided in
the table below.
BIODIESEL
EMISSIONS COMPARED TO CONVENTIONAL DIESEL
|
Emission
Type
|
B100
|
B20
|
Regulated
|
|
|
Total
Unburned Hydrocarbons
|
-93%
|
-30%
|
Carbon
Monoxide
|
-50%
|
-20%
|
Particulate
Matter
|
-30%
|
-22%
|
NOx
|
+13%
|
+2%
|
|
|
|
Non-Regulated
|
|
|
|
|
|
Sulfates
|
-100%
|
-20%*
|
PAH
(Polycyclic Aromatic Hydrocarbons)**
|
-80%
|
-13%
|
nPAH
(nitrated PAHs)**
|
-90%
|
-50%***
|
Ozone
potential of speciated HC
|
-50%
|
-10%
|
*
Estimated from B100 result
|
|
|
**
Average reduction across all compounds measured
|
|
|
***
2-nitroflourine results were within test method variability
|
|
|
The
overall ozone (smog) forming potential of biodiesel is less than diesel
fuel. The ozone forming potential
of the speciated hydrocarbon emissions was nearly 50 percent less than
that measured for diesel fuel.
Sulfur
emissions are essentially eliminated with pure biodiesel.
The exhaust emissions of sulfur oxides and sulfates (major components
of acid rain) from biodiesel were essentially eliminated compared to
sulfur oxides and sulfates from diesel.
Criteria
pollutants are reduced with biodiesel use.
The use of biodiesel in an unmodified Cummins N14 diesel engine resulted
in substantial reductions of unburned hydrocarbons, carbon monoxide,
and particulate matter. Emissions of nitrogen oxides were slightly increased.
Carbon
Monoxide -- The exhaust emissions of carbon monoxide
(a poisonous gas) from biodiesel were 50 percent lower than carbon
monoxide emissions from diesel.
Particulate
Matter --
Breathing particulate has been shown to be a human health hazard.
The exhaust emissions of particulate matter from biodiesel were
30 percent lower than overall particulate matter emissions from
diesel.
Hydrocarbons
-- The exhaust emissions of total hydrocarbons (a contributing factor
in the localized formation of smog and ozone) were 93 percent lower
for biodiesel than diesel fuel.
Nitrogen
Oxides -- NOx
emissions from biodiesel increase or decrease depending on the engine
family and testing procedures. NOx emissions (a contributing factor
in the localized formation of smog and ozone) from pure (100%) biodiesel
increased in this test by 13 percent. However, biodiesels lack
of sulfur allows the use of NOx control technologies that cannot
be used with conventional diesel. So, biodiesel NOx emissions can
be effectively managed and efficiently eliminated as a concern of
the fuels use.
Biodiesel
reduces the health risks associated with petroleum diesel.
Biodiesel emissions showed decreased levels of PAH and nitrited PAH
compounds which have been identified as potential cancer causing compounds.
In the recent testing, PAH compounds were reduced by 75 to 85 percent,
with the exception of benzo(a)anthracene, which was reduced by roughly
50 percent. Targeted nPAH compounds were also reduced dramatically with
biodiesel fuel, with 2-nitrofluorene and 1-nitropyrene reduced by 90
percent, and the rest of the nPAH compounds reduced to only trace levels.
ENVIRONMENTAL
& SAFETY INFORMATION
Acute Oral
Toxicity/Rates
|
Biodiesel
is nontoxic. The acute oral LD50 (lethal dose) is greater than
17.4 g/Kg body weight. By comparison, table salt (NaCL) is nearly
10 times more toxic.
|
Skin Irritation
-Humans
|
A
24-hr. human patch test indicated that undiluted biodiesel produced
very mild irritation. The irritation was less than the result
produced by a
4
percent soap and water solution.
|
Aquatic Toxicity
|
A
96-hr. lethal concentration for bluegill of biodiesel grade methyl
esters was greater than 1000 mg/L. Lethal concentrations at these
levels are generally deemed "insignificant" according
to NIOSH (National Institute for Occupational Safety and Health)
guidelines in its Registry of the Toxic Effects of Chemical
Substances.
|
Biodegradability
|
Biodiesel
degrades about four times faster than petroleum diesel. Within
28 days, pure biodiesel degrades 85 to 88 percent in water. Dextrose
(a test sugar used as the positive control when testing biodegradability)
degraded at the same rate. Blending biodiesel with diesel fuel
accelerates its biodegradability. For example, blends of 20 percent
biodiesel and 80 percent diesel fuel degrade twice as fast as
#2 diesel alone.
|
Flash Point
|
The
flash point of a fuel is defined as the temperature at which it
will ignite when exposed to a spark or flame. Biodiesels flash
point is over 300° Fahrenheit, well above petroleum based diesel
fuels flash point of around 1 25°
Fahrenheit. Testing has shown
the flash point of biodiesel blends increases as the percentage
of biodiesel increases. Therefore, biodiesel and blends of biodiesel
with petroleum diesel are safer to store, handle, and use than
conventional diesel fuel. |
FUEL
DISPLACEMENT
Vehicles
that operate on 20 percent blends of biodiesel blended with 80 percent
conventional diesel (B20) will, on average, displace more than twice
as much petroleum as conventional light-duty passenger vehicles already
covered under the Energy Policy Act (EPACT).
Diesel engines
used by medium and heavy duty government fleets consume significantly
greater quantities of fuel than the light duty passenger vehicles that
comprise the majority of the current EPACT fleets. The diesel engine
vehicle portion of these fleets will be the primary market for B20.
The chart
below illustrates the displacement potential of B20. All of the figures
on vehicle miles traveled, miles per gallon, and total fuel usage are
provided by the US Department of Energys Energy Information Administration
publication: Alternatives to Traditional Transportation Fuels.
Vehicle/Fleet
Type
|
VMT
|
MPG
|
Total
Fuel Use
|
Percent
(%) Petroleum Displaced by Alt. Fuel
|
Total
Gallons Petroleum Displaced by Alt. Fuel
|
Light-Duty
Passenger Vehicle (E85)
|
8000
|
24
|
334
Gal.
|
85%
|
283
Gal.
|
Light-Duty
Truck (B20)
|
16400
|
16
|
1025
Gal.
|
20%
|
205
Gal.
|
Medium-Duty
Truck (B20)
|
16400
|
8
|
2050
Gal.
|
20%
|
410
Gal.
|
Heavy-Duty
Truck (B20)
|
16400
|
6
|
2734
Gal.
|
20%
|
547
Gal.
|
School
Bus (B20)
|
8000
|
8
|
1000
Gal.
|
20%
|
200
Gal.
|
Transit
Bus (B20)
|
33200
|
4
|
8300
Gal.
|
20%
|
1660
Gal.
|
VMT = Vehicle Miles Traveled MPG = Miles Per Gallon
As the chart
shows, the key to total displacement is not the percentage blend level
of the fuel, rather it is a function of the fuel blend level, fuel economy
of the vehicles and the annual use of that vehicle by the fleet.
On average,
B20 vehicles will displace more petroleum than existing light-duty EPACT
passenger vehicles operating on higher blend levels because medium and
heavy duty diesel engine vehicles consume substantially greater volumes
of fuel than light-duty passenger vehicles.
PERFORMANCE
Successful
alternative fuels fulfill environmental and energy security needs without
sacrificing operating performance. Operationally, biodiesel performs
very similar to low sulfur diesel in terms of power, torque, and fuel
without major modification of engines or infrastructure.
Biodiesel
offers similar power to diesel fuel.
One of the major advantages of biodiesel is the fact that it can be
used in existing engines and fuel injection equipment with little impact
to operating performance. Biodiesel has a higher cetane number than
U.S. diesel fuel. In over 15 million miles of in-field demonstrations
biodiesel showed similar fuel consumption, horsepower, torque, and haulage
rates as conventional diesel fuel.
Biodiesel
provides significant lubricity improvement over petroleum diesel fuel.
Lubricity results of biodiesel and petroleum diesel using industry test
methods indicate that there is a marked improvement in lubricity when
biodiesel is added to conventional diesel fuel. Even biodiesel levels
below 1 percent can provide up to a 30 percent increase in lubricity.
Compatibility
of biodiesel with engine components.
In general, biodiesel will soften and degrade certain types of elastomers
and natural rubber compounds over time. Using high percent blends can
impact fuel system components (primarily fuel hoses and fuel pump seals),
that contain elastomer compounds incompatible with biodiesel. Manufacturers
recommend that natural or butyl rubbers not be allowed to come in contact
with pure biodiesel. Biodiesel will lead to degradation of these materials
over time, although the effect is lessened with biodiesel blends. If
a fuel system does contain these materials and users wish to fuel with
pure biodiesel, replacement with compatible elastomers is recommended.
The recent switch to low sulfur diesel fuel has caused many OEMs to
switch to components suitable for use with biodiesel, but users should
contact their OEM for specific information.
Biodiesel
in cold weather.
Cold weather can cloud and even gel any diesel fuel, including biodiesel.
Users of a 20 percent biodiesel blend will experience a decrease of
the cold flow properties (cold filter plugging point, cloud point, pour
point) of approximately 3 to 5° Fahrenheit. Precautions beyond those
already employed for petroleum diesel are not needed for fueling with
20 percent blends. However, neat (100 percent) biodiesel will gell faster
than petrodiesel in cold weather operations. Solutions for winter operability
with biodiesel are much the same as that for low-sulfur #2 diesel (i.e.,
blending with #1 diesel, utilization of fuel heaters, and storage of
the vehicle in or near a building).
PRODUCTION
The production
of biodiesel, or alkyl esters, is well known. There are three basic
routes to ester production from oils and fats:
Base catalyzed transesterification
of the oil with alcohol.
Direct acid catalyzed esterification
of the oil with methanol.
Conversion of the oil to
fatty acids, and then to Alkyl esters with acid catalysis.
![](https://webarchive.library.unt.edu/eot2008/20090117071058im_/http://www.biodiesel.org/Image7.gif)
The majority
of the alkyl esters produced today are done with the base catalyzed
reaction because it is the most economic for several reasons:
Low temperature
(150 F) and pressure (20 psi) processing.
High conversion
(98%) with minimal side reactions and reaction time.
Direct
conversion to methyl ester with no intermediate steps.
Exotic
materials of construction are not necessary.
The general
process is depicted below. A fat or oil is reacted with an alcohol,
like methanol, in the presence of a catalyst to produce glycerine and
methyl esters or biodiesel. The methanol is charged in excess to assist
in quick conversion and recovered for reuse. The catalyst is usually
sodium or potassium hydroxide which has already been mixed with the
methanol.
QUESTIONS
What is Biodiesel?
Biodiesel is the name of a clean burning mono-alkyl
ester-based oxygenated fuel. Biodiesel contains no petroleum, but it
can be blended at any level with petroleum diesel to create a biodiesel
blend. It can be used in compression-ignition (diesel) engines with
no major modifications. Biodiesel is simple to use, biodegradable, nontoxic,
and essentially free of sulfur and aromatics. Biodiesel is renewable
and domestically produced from agricultural resources.
Is
biodiesel used as a pure fuel or is it blended with petroleum diesel?
Biodiesel can be used as a pure fuel or blended with
petroleum in any percentage. B20 (a blend of 20 percent by volume biodiesel
with 80 percent by volume petroleum diesel) has demonstrated significant
environmental benefits with a minimum increase in cost for fleet operations
and other consumers.
Is
it approved for use in the US?
Biodiesel
is registered as a fuel and fuel additive with the Environmental Protection
Agency (EPA) and meets clean diesel standards established by the California
Air Resources Board (CARB). Neat (100 percent) biodiesel has been designated
as an alternative fuel by the Department of Energy (DOE) and the US
Department of Transportation (DOT).
How
do biodiesel emissions compare to petroleum diesel?
The use of
biodiesel in a conventional diesel engine results in substantial reduction
of unburned hydrocarbons, carbon monoxide, and particulate matter compared
to emissions from diesel fuel. In addition, the exhaust emissions of
sulfur oxides and sulfates (major components of acid rain) from biodiesel
are essentially eliminated compared to diesel.
Of the major
exhaust pollutants, both unburned hydrocarbons and nitrogen oxides are
ozone or smog forming precursors. The use of biodiesel results in a
substantial reduction of unburned hydrocarbons. Emissions of nitrogen
oxides are either slightly reduced or slightly increased depending on
the duty cycle of the engine and testing methods used. Based on engine
testing, using the most stringent emissions testing protocols required
by EPA for certification of fuels or fuel additives in the US, the overall
ozone forming potential of the speciated hydrocarbon emissions from
biodiesel was nearly 50 percent less than that measured for diesel fuel.
Can
biodiesel help mitigate "global warming"?
A 1998 biodiesel lifecycle study, jointly sponsored
by the US Department of Energy and the US Department of Agriculture,
concluded biodiesel reduces net CO² emissions by 78 percent compared
to petroleum diesel. This is due to biodiesels closed carbon cycle.
The CO² released into the atmosphere when biodiesel is burned is recycled
by growing plants, which are later processed into fuel.
Is
biodiesel safer than petroleum diesel?
Scientific research confirms that biodiesel exhaust
has a less harmful impact on human health than petroleum diesel fuel.
Biodiesel emissions have decreased levels of polycyclic aromatic hydrocarbons
(PAH) and nitrited PAH compounds which have been identified as potential
cancer causing compounds. In recent testing, PAH compounds were reduced
by 75 to 85 percent, with the exception of benzo(a)anthracene, which
was reduced by roughly 50 percent. Targeted nPAH compounds were also
reduced dramatically with biodiesel fuel, with 2-nitrofluorene and 1-nitropyrene
reduced by 90 percent, and the rest of the nPAH compounds reduced to
only trace levels.
Does
biodiesel cost more than other alternative fuels?
When reviewing the high costs associated with other
alternative fuel systems, many fleet managers believe biodiesel is their
least-cost-per-compliance mile option. Use of biodiesel does not require
major engine modifications. That means operators keep their fleets,
their spare parts inventories, their refueling stations and their skilled
mechanics. The only thing that changes is air quality.
Do
I need special storage facilities?
In general, the standard storage and handling procedures
used for petroleum diesel can be used for biodiesel. The fuel should
be stored in a clean, dry, dark environment. Acceptable storage tank
materials include aluminum, steel, fluorinated polyethylene, fluorinated
polypropylene and teflon. Copper, brass, lead, tin, and zinc should
be avoided.
Can
I use biodiesel in my existing diesel engine?
Biodiesel can be operated in any diesel engine with
little or no modification to the engine or the fuel system. Biodiesel
has a solvent effect which may release deposits accumulated on tank
walls and pipes from previous diesel fuel storage. The release of deposits
may clog filters initially and precautions should be taken. Ensure that
only fuel meeting the biodiesel specification is used.
Where can I purchase biodiesel?
Biodiesel can be made available anywhere in the US.
The National Biodiesel Board (NBB) maintains a list
of registered fuel marketers.
Who
can answer my questions about biodiesel?
The NBB maintains the largest library of biodiesel
information in the US. Information can be requested by visiting the
biodiesel web site at www.biodiesel.org, by emailing the NBB at info@nbb.org,
or by calling NBBs toll free number (800) 841-5849.
SPECIFICATION
FOR BIODIESEL (B100)
as of May 1999
Biodiesel is defined as the
mono alkyl esters of long chain fatty acids derived from vegetable oils
or animal fats, for use in compression-ignition (diesel) engines. This
specification is for pure (100%) biodiesel prior to use or blending
with diesel fuel.#
Property
|
ASTM
Method
|
Limits
|
Units
|
Flash Point
|
D93
|
100.0
min.
|
Degrees
C
|
Water &
Sediment
|
D2709
|
0.050
max.
|
%
vol.
|
Kinematic
Viscosity, 40 C
|
D445
|
1.9
- 6.0
|
mm2/sec.
|
Sulfated Ash
|
D874
|
0.020
max.
|
%
mass
|
Sulfur
|
D2622
|
0.05
max.
|
%
mass
|
Copper Strip
Corrosion
|
D130
|
No.
3 max.
|
|
Cetane
|
D613
|
40
min.
|
|
Cloud Point
|
D2500
|
Report
to Customer
|
Degrees
C
|
Carbon Residue
100% sample
|
D4530**
|
0.050
max.
|
%
mass
|
Acid Number
|
D664
|
0.80
max.
|
mg
KOH/gm
|
Free Glycerin
|
GC***
|
0.020
max.
|
%
mass
|
Total Glycerin
|
GC***
|
0.240
max.
|
%
mass
|
* To meet special
operating conditions, modifications of individual limiting requirements
may be agreed upon between purchaser, seller, and manufacturers.
** The carbon residue shall be run on the 100% sample.
*** Austrian (Christina Planc) update of USDA test method - See NBB
for documentation.
# A considerable amount of experience exists in the US with a 20% blend
of biodiesel with 80% diesel fuel (B20). Although biodiesel (B100) can
be used, blends of over 20% biodiesel with diesel fuel should be evaluated
on a case by case basis until further experience is available.
SAMPLE
MATERIAL SAFETY DATA SHEET
1. CHEMICAL PRODUCT
General
Product Name: Biodiesel
Synonyms: Methyl Soyate, Rapeseed Methyl Ester (RME), Methyl Tallowate
Product Description: Methyl esters from lipid sources
CAS Number: 67784-80-9
2.
COMPOSITION/INFORMATION ON INGREDIENTS
This product contains no hazardous materials.
3. HAZARDS IDENTIFICATION
Potential Health Effects:
INHALATION:
Negligible unless heated to produce vapors. Vapors or finely misted
materials may irritate the mucous membranes and cause irritation, dizziness,
and nausea. Remove to fresh air.
EYE CONTACT:
May cause irritation. Irrigate eye with water for at least 15 to 20
minutes. Seek medical attention if symptoms persist.
SKIN CONTACT:
Prolonged or repeated contact is not likely to cause significant skin
irritation. Material is sometimes encountered at elevated temperatures.
Thermal burns are possible.
INGESTION:
No hazards anticipated from ingestion incidental to industrial exposure.
4. FIRST AID MEASURES
EYES:
Irrigate eyes with a heavy stream of water for at least 15 to 20 minutes.
SKIN:
Wash exposed areas of the body with soap and water.
INHALATION:
Remove from area of exposure, seek medical attention if symptoms persist.
INGESTION:
Give one or two glasses of water to drink. If gastro-intestinal symptoms
develop, consult medical personnel. (Never give anything by mouth to
an unconscious person.)
5. FIRE FIGHTING MEASURES
Flash Point
(Method Used): 100.0° C min (ASTM 93)
Flammability Limits: None known
EXTINGUISHING
MEDIA:
Dry chemical, foam, halon, CO2 , water spray (fog). Water stream may
splash the burning liquid and spread fire.
SPECIAL FIRE
FIGHTING PROCEDURES:
Use water spray to cool drums exposed to fire.
UNUSUAL FIRE
AND EXPLOSION HAZARDS:
Oil soaked rags can cause spontaneous combustion if not handled properly.
Before disposal, wash rags with soap and water and dry in well ventilated
area. Firefighters should use self-contained breathing apparatus to
avoid exposure to smoke and vapor.
6.
ACCIDENTAL RELEASE MEASURES SPILL CLEAN-UP PROCEDURES
Remove sources of ignition, contain spill to smallest
area possible. Stop leak if possible. Pick up small spills with absorbent
materials such as paper towels, "Oil Dry", sand or dirt. Recover
large spills for salvage or disposal. Wash hard surfaces with safety
solvent or detergent to remove remaining oil film. Greasy nature will
result in a slippery surface.
7. HANDLING AND STORAGE
Store
in closed containers between 50° F and 120° F.
Keep away from oxidizing agents, excessive heat, and ignition sources.
Store and use in well ventilated areas.
Do not store or use near heat, spark, or flame, store out of sun.
Do not puncture, drag, or slide this container.
Drum is not a pressure vessel; never use pressure to empty.
8. EXPOSURE CONTROL /PERSONAL PROTECTION
RESPIRATORY
PROTECTION:
If vapors or mists are generated, wear a NIOSH approved organic vapor/mist
respirator.
PROTECTIVE
CLOTHING:
Safety glasses, goggles, or face shield recommended to protect eyes
from mists or splashing. PVC coated gloves recommended to prevent skin
contact.
OTHER PROTECTIVE
MEASURES:
Employees
must practice good personal hygiene, washing exposed areas of skin several
times daily and laundering contaminated clothing before re-use.
9. PHYSICAL AND CHEMICAL PROPERTIES
Boiling Point, 760 mm Hg:>200°C
Volatiles, % by Volume: <2
Specific Gravity (H2 O=1): 0.88
Solubility in H2 O, % by Volume: insoluble
Vapor Pressure, mm Hg: <2
Evaporation Rate, Butyl Acetate=1: <1
Vapor Density, Air=1:>1
Appearance and Odor: pale yellow liquid, mild odor
10. STABILITY AND REACTIVITY
GENERAL:
This product is stable and hazardous polymerization
will not occur.
INCOMPATIBLE MATERIALS AND CONDITIONS TO AVOID:
Strong oxidizing agents
HAZARDOUS
DECOMPOSITION PRODUCTS:
Combustion produces carbon monoxide, carbon dioxide along with
thick smoke.
11. DISPOSAL CONSIDERATIONS
WASTE
DISPOSAL:
Waste may be disposed of by a licensed waste disposal company. Contaminated
absorbent material may be disposed of in an approved landfill. Follow
local, state and federal disposal regulations.
12.
TRANSPORT INFORMATION
UN HAZARD CLASS: N/A
NMFC (National Motor Freight Classification):
PROPER SHIPPING NAME: Fatty acid ester
IDENTIFICATION NUMBER: 144920
SHIPPING CLASSIFICATION: 65
13.
REGULATORY INFORMATION
OSHA STATUS:
This product is not hazardous under the criteria of the Federal OSHA
Hazard Communication Standard 29 CFR 1910.1200. However, thermal processing
and decomposition fumes from this product may be hazardous as noted
in Sections 2 and 3.
TSCA STATUS:
This product is listed on TSCA.
CERCLA (Comprehensive
Response Compensation and Liability Act):
NOT reportable.
SARA TITLE
III (Superfund Amendments and Reauthorization Act):
Section 312 Extremely Hazardous Substances:
None
Section 311/312 Hazard Categories:
Non-hazardous under Section 311/312
Section 313 Toxic Chemicals:
None
RCRA
STATUS:
If discarded in its purchased form, this product would not be a hazardous
waste either by listing or by characteristic. However, under RCRA, it
is the responsibility of the product user to determine at the time of
disposal, whether a material containing the product or derived from
the product should be classified as a hazardous waste, (40
CFR 261.20-24)
CALIFORNIA PROPOSITION 65:
The following statement is made in order to comply with the California
Safe Drinking Water and Toxic Enforcement Act of 1986. This product
contains no chemicals known to the state of California to cause cancer.
14.
OTHER INFORMATION
This information relates only to the specific material
designated and may not be valid for such material used in combination
with any other materials or in any other process. Such information is
to the best of the companys knowledge and believed accurate and reliable
as of the date indicated. However, no representation, warranty or guarantee
of any kind, express or implied, is made as to its accuracy, reliability
or completeness and we assume no responsibility for any loss, damage
or expense, direct or consequential, arising out of use. It is the users
responsibility to satisfy himself as to the suitableness and completeness
of such information for his own particular use.
Biodiesel;
A Blending Component for Enhanced Fuel Lubricity in Diesel Fuel
Frequently Asked Questions
What
is Biodiesel?
Biodiesel is
a cleaner burning fuel for diesel engines, which is produced from
renewable resources such as soybean oil.
Is
biodiesel a legal fuel?
Biodiesel is
legal for commerce in the United States.
Biodiesel has been registered with the U.S. Environmental
Protection Agency as a fuel and as a fuel additive and has complied with
all health effects testing required by 211(b) of the Clean Air Act
Amendments of 1990.
Have
other alternative fuels conducted health effects testing?
To date,
biodiesel is the only alternative fuel in the country to have
accomplished this 3-year, $2.2 million testing regimen.
Is
biodiesel exhaust less harmful than petroleum based diesel exhaust?
Biodiesel is
safer for people to breathe. Research
conducted in the United States showed biodiesel emissions have
significantly decreased levels of all target polycyclic aromatic
hydrocarbons (PAH) and nitrited PAH compounds, as compared to petroleum
diesel exhaust. PAH and
nPAH compounds have been identified as potential cancer causing
compounds. Results of the
subchronic inhalation testing showed no toxic results from biodiesel
exhaust emissions-even at the highest concentrations physically
possible to achieve. These
results conclusively demonstrate biodiesels health and environmental
benefits as a non-toxic, renewable fuel.
Can
I use biodiesel in my existing diesel engine?
Biodiesel can
be used as a pure product or blended at any percentage with petroleum
diesel.B
How
is biodiesel marketed today?
Beginning in
November 1998 with the passage of the federal EPACT amendments which
allowed biodiesel greater access to the alternative fuels market,
biodiesel has become one of the fastest (if not the fastest) growing
alternative fuel in the country. In
addition, to being marketed as an alternative fuel technology to meet
EPACT requirements, biodiesel has also seen widespread acceptance as a
fuel lubricity additive in diesel fuel.
Where
is biodiesel being used today as a fuel lubricity additive?
A total of seven companies have released premium
additive packages containing biodiesel, in which biodiesel is a major
marketing aspect of the products. In the summer of 1999, Koch - the
second largest privately owned company in the US behind Cargill -
launched a new premium diesel fuel product, US SoyField Diesel, which is
now in over 20 terminals in the midwest and expanding.
Also in 1999, Country Energy (the Farmland/Cenex petroleum joint
venture) launched SoyMaster, their proprietary premium diesel containing
biodiesel in four terminals in the Midwest.
Will
biodiesel play a role in EPA's recent proposed regulation that limits
sulfur content in diesel fuel?
In May,
2000, EPA proposed a reduction in the sulfur content of highway diesel
fuel of over 95% from its current level of 500 ppm Biodiesel has no
sulfur or aromatics and tests have documented it's ability to increase
fuel lubricity significantly when blended with petroleum diesel
fuel-even at very low levels.
The currently proposed ultra-low sulfur diesel fuel regulations,
designed to help protect human health, will require the addition of a
lubricity additive. Biodiesel
could be included as a low level blending component in diesel fuel as a
means to improve fuel lubricity while providing environmental, economic,
and energy security benefits to diesel users and the US public at the
same time.
How
much biodiesel would need to be added to provide sufficient fuel
lubricity in diesel fuel?
Testing
has confirmed that biodiesel can provide sufficient levels of fuel
lubricity, even at blend levels below 1%, in current on-road diesel
fuel. Testing is underway
to determine specific blend levels that would be required in ultra-low
sulfur diesel fuel (15 ppm).
If
biodiesel was used in all of the on-road diesel fuel in the US, would
the biodiesel industry be able to produce enough fuel to meet this
demand?
If 1%
biodiesel was blended with the national on-road diesel fuel pool, over
300 million gallons of biodiesel would be required.
There are presently 13 companies who have invested millions of
private dollars into the development of the biodiesel manufacturing
plants and are actively marketing biodiesel.
Based on existing dedicating biodiesel processing capacity and
long-term production agreements, over 200 million gallons of biodiesel
capacity currently exists. In
addition, many dedicated biodiesel processing facilities are capable of
doubling their production capacity within 18 months.
Are
there any warranty implications associated with the use of biodiesel as
a low level blending component in diesel fuel?
Biodiesel
enjoys the support of the Fuel Injection Equipment industry as an option
to solve the lubricity problem with petrodiesel.
Stanadyne Automotive Corp., the leading independent US
manufacturer of diesel fuel injection equipment, supports the inclusion
of low levels of biodiesel in diesel fuel for two reasons.
First, it would eliminate the inherent variability associated
with the use of other additives and whether sufficient additive was used
to make the fuel fully lubricious.
Second, Stanadyne considers biodiesel a fuel or a fuel component
not an additive. It is
possible to burn pure biodiesel in conventional diesel engines.
Thus, if more biodiesel is added than required to increase
lubricity, there will not be the adverse consequences that might be seen
if other lubricity additives are dosed at too high a level.
Are
there any adverse conditions that could arise if biodiesel were to be
overdosed?
No,
biodiesel can be used as a
pure product or blended at any percentage with petroleum diesel.
Fuel Injection Equipment manufacturers such as Stanadyne concur
that there would be no adverse effects if more than the suggested rate
was used.
What
is the industry doing to ensure biodiesel quality?
in December
1998, the American Society of Testing and Materials (ASTM) issued a
provisional specification (PS 121) for biodiesel fuel.
ASTM is the premier standard-setting organization for fuels and
additives in the U.S. The
EPA has adopted the ASTM standard and state divisions of weights and
measures currently are considering its adoption.
This development was crucial in standardizing fuel quality for
biodiesel in the U.S. market.
Can
the lubricity benefits be gained through other sources?
Yes,
replenishing the loss lubricity that will be apparent in future diesel
fuel can be accomplished with conventional lubricity additives either on
the market today or in the process of being formulated.
What
is the cost of biodiesel compared to other petroleum based lubricity
additives?
Economically,
these products are the same or less expensive than biodiesel.
Petroleum based additives, however, do not have the same
conservation, energy security, environmental, and economic benefits.
All of these factors need to be weighed fully.
If
300 million gallons of biodiesel were consumed next year, would there be
any environmental or economic impacts to the US?
A 1998
biodiesel lifecycle study jointly sponsored by the U. S. Department of
Energy and the U.S. Department of Agriculture concluded that increased
use of biodiesel would substantially benefit our national economy.
Inclusion of biodiesel, even at very low levels, would
immediately incorporate domestically produced fuels as an immediate
supplement to our nations current energy security programs at little
or no cost to the taxpayer. Increased
biodiesel production would result in significant economic benefits to
state economies as well as agricultural producers.
Increased use of biodiesel also results in significant
environmental benefits.
The
press has reported that for some alternative fuels it takes as much
energy to process the fuel as the fuel contains.
What is the energy balance of biodiesel?
For every
one unit of energy needed to produce biodiesel, 3.24 units of energy are
gained.
Is
biodiesel safe?
Tests
sponsored by the United States Department of Agriculture confirm that
biodiesel is less toxic than petroleum diesel and biodegrades as fast as
dextrose (a test sugar). In
addition, biodiesel has a flash point of over 300° F which makes it
safer to store and handle than petroleum diesel fuel.
Will
burning biodiesel put more or less CO2 into the atmosphere?
A US study
has found that biodiesel production and use, in comparison to petroleum
diesel,
produces 78.5% less CO2 emissions.
Carbon dioxide is taken up by the annual production of
crops such as soybeans and then released when vegetable oil based
biodiesel is combusted.
How
much will the sale of biodiesel affect the price paid to farmers for a
bushel of soybeans?
With
agricultural commodity prices at record low levels, and petroleum prices
approaching record highs, it is clear more can be done to utilize
domestic surpluses of renewable oils, such as soybean oil, while
enhancing our energy security. A
1998 economic study conducted by the USDA Economic Research Service
estimated that a sustained national market for 100 million gallons of
biodiesel annually could increase the value of the US soybean crop by
more than $250 million.
Biodiesel 2001
Indicators that the Biodiesel Industry is Growing and
Poised
to be a Significant Contributor to the U.S. Alternative Fuels Market
Recent achievement of three major long-term
objectives. Because
of the following 3 long-term achievements, biodiesel has become one of
the fastest (if not the fastest) growing alternative fuels in the
country.
- Health
Effects:
In May 2000, biodiesel became the only alternative fuel in
the country to have successfully completed the EPAs Tier I and
Tier II Health Effects testing under Section 211(b) of the Clean
Air Act. The Tier I
testing conclusively demonstrated biodiesels significant
reductions in most currently regulated emissions as well as most
unregulated emissionsespecially those associated with cancer and
lung disease. Tier II
testing demonstrated biodiesels non-toxic effect on health.
- EPACT:
Effective November 1998, B20, a blend of 20% biodiesel and
80% petroleum diesel, was approved by Congress as an EPAct (Energy
Policy Act of 1992) compliance strategy.
The legislation allowed EPAct fleets to meet their
alternative fuel vehicle purchase requirements simply by buying 450
gallons of pure biodiesel and burning it in new or existing diesel
vehicles in at least a 20% blend with diesel fuel.
The Congressional Budget Office and the Department of Defense
have confirmed that the biodiesel option is the lowest cost
alternative fuel option for meeting the federal governments EPAct
compliance requirements.
- ASTM:
In December 1998, the American Society of Testing and
Materials (ASTM) issued a provisional specification (PS 121) for
biodiesel fuel. ASTM is
the premier standard-setting organization for fuels and additives in
the U.S. The EPA has
adopted the ASTM standard and state divisions of weights and
measures currently are considering its adoption.
This development was crucial in standardizing fuel quality
for biodiesel in the U.S. market.
Current Industry Progress and Initiatives:
¨
Biodiesel Use Is Increasing Significantly. In
January of 1999, there were very few fleets buying and using biodiesel.
By January of 2001 there were well over 50 major fleets who had
implemented biodiesel programs across the country including federal
fleets such as US Postal Service, the US Air Force, the US Army, the US
Department of Energy, the US General Services Administration, state
fleets such as Ohio, Iowa, Virginia, Delaware, New Jersey, and major
public utility fleets such as Commonwealth Edison, Duke Energy, Alabama
Power and others.
¨
Ultra Low Sulfur Diesel. In
January of 2001, the EPA finalized a rule that will require that sulfur
levels in diesel fuel be reduced from 500 ppm to 15 ppm, a 97%
reduction, by 2006. The
EPA, the petroleum industry, and equipment manufacturers all recognized
during the rulemaking process that the refinery changes necessary to
meet this requirement will also dramatically reduce lubricity of the
fuel. Lubricity is the
characteristic in diesel fuel necessary to keep diesel fuel systems
properly lubricated. Fuel
that lacks lubricity can cause premature wear or malfunction.
Biodiesel is uniquely positioned to address ultra low-sulfur
diesel fuel because it has no sulfur and currently meets the 2006
standard. Moreover,
biodiesel offers superior lubricity even in very low blends.
For example, a 1% blend of biodiesel can improve lubricity by as
much as 65%.
¨
Low Blend Premium Diesel Development: Since
1997, eight companies have released premium additive packages containing
biodiesel as a lubricity additive.
These products have had commercial success and demonstrated
biodiesels effectiveness as a lubricity additive.
For example, Koch
Petroleumthe second largest privately owned company in the US behind
Cargill-launched US SoyField Diesel, and has expanded into over 20
terminals in 7 states.
¨
Political and Public Support is Increasing
Significantly: During the last 12 months, there has been a
significant amount of increased political support for biodiesel. Biodiesel has been hampered compared to other alternative
fuels because public policies supporting alternative fuels typically
focused on vehicles and infrastructure.
Because biodiesel is the only alternative fuel that is used in
conventional diesel engines, it could not participate in those programs. Biodiesel is now included in major state and nationwide
legislative efforts, which are providing a mechanism to quantify the
benefits of the fuel and make it a cost-competitive option for achieving
many national and statewide goals.
Favorable biodiesel legislation is currently being considered in
9 states, including measures in Minnesota, North Dakota, and South
Dakota to include 2% biodiesel in all diesel fuel sold in those states.
Additionally, the US Congress is considering major biodiesel
legislation to enhance national energy goals and to address the
technical issues in ultra low-sulfur diesel fuel.
¨
Military:
The National Biodiesel Board has entered into a Cooperative
Research and Development Agreement (CRADA) with the Tank, Automotive and
Armament Command (TACOM) of the U.S. Army to assist them in their effort
to incorporate biodiesel into the procurement provisions for the
military.
¨
All branches
of the military have now committed to using biodiesel.
¨
The Defense Logistics Agency (DLA) is streamlining the biodiesel
procurement process for both the military and individual federal
agencies.
¨
The Department of Defense has issued guidance to all branches of the
military for biodiesel use that is favorable to the purchase of the
fuel.
¨
Biodiesel blends have been included in the 21st Century Truck
Initiative, being spearheaded by TACOM and the National Automotive
Center as a leading alternative fuel for heavy-duty trucks because other
alternatives to fossil fuels are not able to deliver the power and
performance demanded by the heavy-duty sector.
¨
OEMs:
Most major diesel engine manufacturers have affirmed that use of
B20 in their equipment will not void their warranty and are actively
working with industry on research and development activities.
Moreover, the fuel injection equipment manufacturers have issued
letters recognizing biodiesels significant role as a renewable
lubricity additive. In
fact, Stanadyne Automotive, Inc., the largest fuel injection equipment
manufacturer in the US, submitted comments to the EPAs low sulfur
rulemaking process, which stated that biodiesel is a superior solution
to lubricity loss in low and ultra low-sulfur diesel fuel because it
eliminates the inherent variability of using additives.
The comments stated that: a)
lubricity testing has shown that up to 2% biodiesel is sufficient to
make any distillate fuel fully lubricious, and b) since biodiesel is a
fuel itself, there are no technical issues related to overdosing which
are present with conventional lubricity additives.
¨
Future Market Dynamics Show Promise: As
the EPA and fuel and equipment industry groups move to improve
performance and emissions of diesel technology, it is clear that diesel
will continue to be the preferred platform for heavy-duty applications
for the foreseeable future. Furthermore,
global warming and green house gases will continue to gain attention.
Because biodiesel is compatible and complimentary to these goals
and future technology, biodiesel is uniquely positioned to provide
benefits in all these areas, which will further increase the fuels
economic competitiveness. Biodiesel
offers fleet managers an immediate and seamless ability to
transform their diesel fleets into cleaner-burning alternative fuel
fleets, without requiring any capital investment.
HEALTH
EFFECTS TESTING
HISTORY
In June 2000, representatives of the U.S. Congress
announced that biodiesel had become the first and only alternative fuel
to have successfully completed the Tier I and Tier II Health Effects
testing requirements of the Clean Air Act Amendments of 1990. The
soybean industry invested more than two million dollars and four years
into the health effects testing program with the goal of setting
biodiesel apart from other alternative fuels and increasing consumer
confidence in biodiesel.
TESTING
The first tier of health effects testing was
conducted by Southwest Research Institute and involved a detailed
analysis of biodiesel emissions. Tier II was conducted by Lovelace
Respiratory Research Institute, where a 90-day sub-chronic inhalation
study of biodiesel exhaust with specific health assessments was
completed.
RESULTS
Results of the health effects testing concluded
that biodiesel is non-toxic and biodegradable, posing no threat to human
health. Also among the findings of biodiesel emissions compared to
petroleum diesel emissions:
-
The
overall ozone (smog) forming potential of exhaust emissions from
biodiesel is 50% less.
-
The
exhaust emissions of carbon monoxide (a poisonous gas and a
contributing factor in the localized formation of smog and ozone)
from biodiesel are 50% lower.
-
The
exhaust emissions of particulate matter (recognized as a
contributing factor in the respiratory disease) from biodiesel are
30% lower.
-
The
exhaust emissions of sulfur oxides and sulfates (major components of
acid rain) from biodiesel are complete eliminated.
-
The
exhaust emissions of hydrocarbons (a contributing factor in the
localized formation of smog and ozone) are 95% lower.
-
The
exhaust emissions for aromatic compounds known as PAH and NPAH
compounds (suspected of causing cancer) are substantially reduced
for biodiesel compared to diesel. Most PAH compounds were
reduced by 75% to 85%. All NPAH compounds were reduced by at
least 90%.
SIGNIFICANCE
The
health effects testing results provide conclusive scientific evidence
using the most sophisticated technology available to validate the
existing body of testing data. The comprehensive body of biodiesel
data serves to demonstrate the significant benefits of biodiesel to the
environment and to public health. This will lead to increase
consumer confidence and increased use of biodiesel. Since the
majority of biodiesel is made from soybean oil, a promising new market
is materializing for soybeans.
NATIONAL
ECONOMIC IMPACTS FROM INCREASED BIODIESEL USAGE
A
1998 biodiesel lifeyclcle study jointly sponsored by the U.S. Department
of Energy and the U.S. Department of Agriculture concluded that
increased use of biodiesel would benefit our national economy.
Increased biodiesel production would also result in significant economic
benefits to state economies as well as agricultural
producers.
·
According
to economic modeling conducted by the Food and Agricultural Policy
Research Institute, (FAPRI), 70 million gallons of annual demand for
biodiesel could add $0.10 to $0.18 per bushel to the price of soybeans.
·
An
analysis conducted by the USDA Economic Economic Research Service
estimates that 100 million gallons of biodiesel demand would increase
soybean oil prices by 14%.
·
USDA
forecasts that ending stocks of soybean oil in 2000-01 will be 1.85
billion pounds. Soybean meal demand is forecasted to increase more
than soybean oil demand.
·
Oilseed
industry experts estimate an additional four billion gallons of
biodiesel feedstock supply could be available through expanded soybean
acreage, increased utilization of oilseed crops and higher oil
soybeans.
·
Under
current economic conditions, increased in soybean prices will result in
decreased federal outlays under the soybean marketing loan
program.
The
utilization of biodiesel could have immediate impacts on the economy
that would increase increased farm income, increased economic activity
and corresponding increases to the local tax base, utilization of
surplus soybean oil, and decreased federal outlays under the soybean
marketing loan program. However, the biodiesel industry is
currently not eligible for policy incentives enjoyed by other segments
of the fuels market that would increase biodiesel sales and further
market development.
·
Until
the early 1970's, the US was self sufficient in crude oil
production. However, imports of crude have been increasing at an
accelerating rate due to decreasing domestic production and increasing
energy needs. Petroleum imports now account for more than half of
our total usage, and make up the single largest component of our trade
deficit.
·
A
2000 GAO report documented specific petroleum tax incentives that range
from about $330 million for the expensing of tertiary injectants
(1980-2000) to about $82 billion for certain cost depletion deductions
(1968-2000).
·
The
same GAO report indicated that ethanol fuel tax incentives ranged from
$198 million for alcohol fuel tax credits (1980-2000) to about $11
billion for the excise tax exemption for alcohol fuels (1979-2000).
Although
the tax incentives provided to the ethanol industry are a fraction of
those provided to the petroleum industry, ethanol's favorable tax
treatment has been critical in the development of ethanol into a two
billion gallon per year industry. To date, the biodiesel industry
has never received any favorable tax or subsidy treatment, and is at a
significant disadvantage relative to petroleum. In fact, the US
Congress is currently considering legislation that would provide further
incentives to domestically produced petroleum, but would not apply to
domestically produced biodiesel. Inclusion of biodiesel into a
comprehensive energy policy that promotes domestically produced
renewable fuels could have a significant impact on the development of
the biodiesel market, at a relatively low cost to US consumers or
taxpayers.
Policy
options such as a national renewable standard for diesel fuel would
provide significant benefits to the economy. In May 2000, EPA
proposed a limit on sulfur of 15 ppm maximum for on-highway diesel fuel
by 2007. This is a reduction of over 95% from the current limit of
500 ppm. Removing the sulfur from diesel fuel will reduce fuel
lubricity, harming engine life. Biodiesel improves lubricity at
very low percentages. Biodiesel could be included as a low level
blending component in diesel fuel as a means to improve fuel lubricity
while meeting other policy objectives. The Energy Information
Administration reports that the total US distillate market in 1998 was
over 55 billion gallons and 'on-highway' represented the largest
component of this use at over 30 billion gallons.
·
Inclusion
of biodiesel in on-road diesel fuel at a level of 1% for lubricity
purposes would result in the following:
-
300
million gallons of biodiesel demand.
-
Utilization
of the oil from more than 214 million bushels of soybeans (over 2.2
billion pounds of soybean oil).
-
Add
a minimum of 30¢
to
the value of a bushel of soybeans, based on economic analyses
conducted by USDA-ERS and FAPRI.
-
Add
more than $800 million to gross farm income and decrease federal
outlays under the soybean marketing loan program in similar amounts.
-
Potentially
reduce fleet operating costs through increased equipment life.
The
biodiesel industry is currently reviewing policy options such as tax
incentives, relief of EPACT credit restrictions, as well as the
inclusion of biodiesel in the national diesel fuel pool that would
further the development of the biodiesel market, level the playing field
in the alternative fuels marketplace, and lead to national economic
benefits.
Economic
activity from an activity from an industry can be categorized into
direct, indirect, and induced impacts. Direct impacts are those
changes in output or income that can be directly attributed to the
industry. Secondary impacts (indirect and induced) result from
subsequent rounds of spending and re-spending by consumers and
businesses. The National Biodiesel Board will conduct a
macroeconomic study in spring 2001 to quantify direct and secondary
economic impacts, employment, balance of trade, and increased level of
economic activity and corresponding state and local tax revenue that
result from increased biodiesel usage.