1. BiodieselBiodiesel Tim McLenegan Tim Whitacre Logan Kinde Ryan Gleim Jesse Ralston Eric Amendt Nick Layshot November 12, 2004 AD

2. A Little History Invented by Rudolph Diesel in 1892 Invented by Rudolph Diesel in 1892 Increased efficiency over Steam Engines at 75% Increased efficiency over Steam Engines at 75% Original Biodiesel engine Original Biodiesel engine Ran on Peanut Oil Ran on Peanut Oil 1920’s Diesels altered to accept fossil fuels 1920’s Diesels altered to accept fossil fuels

3. How it works Diesel Engines run on thicker fuel Diesel Engines run on thicker fuel Uses compression to ignite fuel and air Uses compression to ignite fuel and air Non-renewable fossil fuel normally used Non-renewable fossil fuel normally used

4. How It Works Biodiesel Biodiesel –Renewable –Environmentally Friendly biodegradable biodegradable fewer emissions fewer emissions –Reduce Dependency on Foreign Oil –Little to no engine modifications required

5. How It Works Refined from plant oils or animal fats Refined from plant oils or animal fats –crops such as soybean, rapeseed, canola, palm, cottonseed, sunflower, and peanut Unrefined oils may also be used Unrefined oils may also be used –Ex. pure vegetable oil –May require significant engine modifications Most oil undergoes a series of chemical reactions to become fuel Most oil undergoes a series of chemical reactions to become fuel

6. It Runs On Soybean Fuel Many different Fuels Available Many different Fuels Available

7. Affects on Engines increased engine life increased engine life –acts as a solvent –loosen deposits –contributes to an engine's lubricity safer safer –non-toxic –burns at a higher temperature Reduced emissions Reduced emissions increase in NOx emissions increase in NOx emissions

8. EmissionsEmissions

9. Biodiesel Emissions Biodiesel is only alternative fuel to have its emissions results submitted to EPA Biodiesel is only alternative fuel to have its emissions results submitted to EPA EPA did extensive research on biodiesel EPA did extensive research on biodiesel –Tested with varying proportions of biodiesel and petroleum diesel –Only tested heavy-duty highway engines (trucks, buses) For all major pollutants, biodiesel is significantly cleaner than petrol. Diesel For all major pollutants, biodiesel is significantly cleaner than petrol. Diesel –NO x is an exception: saw increase in emissions

10. Biodiesel Emissions Emission Type B100B20 Total Unburned Hydrocarbons –67%–20% Carbon Monoxide –48%–12% Particulate Matter –47%–12 Nitrogen Oxides (NO x) +10%+2% Sulfates–100%–20 PAH (Polycyclic Aromatic Hydrocarbons) –80%–13% nPAH (nitrated PAHs) –90%–50% Ozone potential of speciated HC –50%–10% Average emissions by heavy-duty highway engines B100 = 100% biodiesel B20 = 20% bio, 80% petroleum diesel Regulated by EPA

11. Biodiesel Emissions

12. For some engine/fuel combinations, NO x emissions actually decreased For some engine/fuel combinations, NO x emissions actually decreased –No consistent set of characteristics explain why this was the case Ways to reduce NO x emissions Ways to reduce NO x emissions –For B20 fuels, use a petroleum diesel with lower aromatic content can break even –Treating diesel to get a higher cetane number can decrease NO x emissions (but raise cost of fuel)

13. Real World Examples

14. Biodiesel Truck in Yellowstone Unaltered diesel pickup fueled by 100 percent rapeseed ethyl ester Truck driven over 92,600 miles without any major fuel related problems 16.3 mpg average, or 1 mile per gallon less than diesel fuel Source: http://www.nps.gov/renew/yellbio.htm

15. Biodiesel Truck in Yellowstone Worried that french fry smell would attract bears Biodiesel is no more attractive to bears than diesel fuel Carbon monoxide (CO), total unburned hydrocarbons (HC), and oxides of nitrogen (NOX) were reduced by increasing the percentage of biodiesel Two winters showed that normal cold-weather diesel modifications were sufficient to enable use of biodiesel in cold weather

16. U.S. Navy Process Navy’s used cooking oil into biodiesel Will use B20 20% biodiesel 80% traditional diesel If successful, they will create small biodiesel facilities for use overseas Source: http://www.biodiesel.org/pdf_files/backgrounder.PDF

17. Berkley Curbside Recycling 10 truck fleet 33,000 pound diesel engine trucks "All day, I smell french fries, which smell much better than diesel fumes." "The trucks run smoothly and have more power.” -Dave Williamson, Recycling Operations Manager Source: http://www.ecologycenter.org/recycling/biodiesel.html

18. Veggie Van Traveled 25,000 miles across the US during 1997 and 1998 Powered on 100% biodiesel No modifications made to the diesel engine Source: http://biodieselamerica.org/biosite/index.php?id=3,0,0,1,0,0

19. Residential Use (One Example) 1989 VW Jetta Uses biodiesel fuel made with recycled restaurant waste oil Made error that many new Biodiesel users make Need to change fuel filter twice in first 2000 miles Biodiesel is a solvent and cleans out buildup in the engine

20. Biodiesel Sources

21. Raw Materials for Production Inputs Inputs –Vegetable/Animal Fat Oil (Triglyceride) –Alcohol Methanol (used most often) Methanol (used most often) Ethanol Ethanol Catalyst Catalyst –Sodium Hydroxide (Lye) –Potassium Hydroxide Outputs Outputs –Biodiesel –Glycerol Note: 20% Alcohol can be extracted to be used again

22. Raw Materials (Triglyceride) Harvested Vegetable Oils Harvested Vegetable Oils –Rapeseed Oil (Canola) –Sunflower Oil –Palm Oil –Soybean Oil –Corn Oil

23. Raw Materials (Triglyceride) Cont. High-Oil Algae Research High-Oil Algae Research Used Oils Used Oils –Fast Food Oils –Restaurant Oils Animal Fats Animal Fats

24. Rapeseed (Canola) Oil Well adapted to temperate regions Well adapted to temperate regions –Cool temperatures promote growth –Can tolerate high temperatures Wide range of soils Wide range of soils Requires less fertilizer than soybeans Requires less fertilizer than soybeans Commonly produced in Europe Commonly produced in Europe

25. Soybean Oil Most common source for Biodiesel in USA Most common source for Biodiesel in USA High demand among US farmers High demand among US farmers –Increased production will lower costs –Decrease dependence on foreign energy –High lubricity extends equipment life Iowa, Indiana, and Wisconsin Iowa, Indiana, and Wisconsin

26. High-Oil Algae Current research suggests high yields Current research suggests high yields Extremely fast growth rates Extremely fast growth rates Over 50% of biomass can be oil Over 50% of biomass can be oil Capable of producing enough Biodiesel to replaced petroleum used for transportation in the United States Capable of producing enough Biodiesel to replaced petroleum used for transportation in the United States http://www.unh.edu/p2/biodiesel/article_alge.html

27. Biodiesel Production The process of making biodiesel The process of making biodiesel Efficiencies of the process Efficiencies of the process By-products By-products Raw material costs Raw material costs Process costs Process costs Price estimate at the pump Price estimate at the pump

28. TransesterificationTransesterification The most economical of three different ways to make biodiesel. The most economical of three different ways to make biodiesel. Separates out the glycerin in the natural fat or oil. Separates out the glycerin in the natural fat or oil. No waste products!!! No waste products!!!

29. The Biodiesel Process

30. Efficiency of the process

31. By-ProductsBy-Products Glycerin Glycerin –Can be refined further for use in soap products Alcohol Alcohol –Used again by the biodiesel process Fertilizer Fertilizer –Used by agriculture

32. Raw Material Costs Alcohol - $0.55 a gallon for Methanol Alcohol - $0.55 a gallon for Methanol Catalyst - $0.03 per gallon of biodiesel Catalyst - $0.03 per gallon of biodiesel Feedstock for oil Feedstock for oil – Existing crops (Soybean, Rapeseed, etc.) $0.13 to $0.35 per pound $0.13 to $0.35 per pound 7.5 pounds per gallon of oil 7.5 pounds per gallon of oil $0.97 to $2.63 per gallon of oil $0.97 to $2.63 per gallon of oil – Algae - $0.33 per gallon of oil

33. Process Costs What costs are there? What costs are there? –Capital costs –Operating costs Electricity, Steam, Water Electricity, Steam, Water Maintenance Maintenance Insurance Insurance –Sales and Administration Total processing cost Total processing cost –Anywhere from $0.30 to $1.00 per gallon –Don’t forget by-products!!! ($0.20 to $0.50 per gallon)

35. The Complete Story Total Production Cost per gallon Total Production Cost per gallon – Before taxes Low end with algae = $0.90 Low end with algae = $0.90 Low end with existing crops= $1.50 Low end with existing crops= $1.50 High end = $3.11 High end = $3.11 – With taxes California has a 40.2 cent tax on gas California has a 40.2 cent tax on gas Possibly lower taxes on biodiesel? Possibly lower taxes on biodiesel? Note that this does not include profit Note that this does not include profit

36. Cost of Infrastructure Algal ponds Algal ponds –Construction - $80,000 per hectare SLO needs 3,185 hectares = $254.8 million SLO needs 3,185 hectares = $254.8 million This is only 12 square miles of land!!! This is only 12 square miles of land!!! –Maintenance - $12,000 per hectare per year Processing plants Processing plants –$15 million for a 30 million gal/yr plant –SLO would need 4 plants = $60 million

37. Sustainable Transportation Fuel use in USA per year Fuel use in USA per year –60 billion gallons diesel –120 billion gallons gasoline Fuel efficiencies Fuel efficiencies –Diesel is 40% more efficient than gasoline –Biodiesel is 2% less efficient than diesel Conservative Assumption Conservative Assumption –Diesel is 35% more efficient than gasoline

38. Sustainable Transportation Required Biodiesel for USA Required Biodiesel for USA –Replace Gas with diesel 60 + 0.65(120) = 138 Billion Gallons Diesel / year 60 + 0.65(120) = 138 Billion Gallons Diesel / year –Replace diesel with Biodiesel 138(1.02) = 140.8 Billion Gallons Biodiesel / year 138(1.02) = 140.8 Billion Gallons Biodiesel / year

39. Sustainable Transportation in San Luis Obispo County Required Biodiesel for SLO = (Biodiesel for USA) * (pop SLO/pop USA) = 140.8 * (250,000 / 294,730,000) ≈ 120,000,000 Required Biodiesel for SLO = (Biodiesel for USA) * (pop SLO/pop USA) = 140.8 * (250,000 / 294,730,000) ≈ 120,000,000

41. Projected Biodiesel Consumption in San Luis Obispo County (Transportation)

42. Land Requirement: San Luis Obispo County Consider Waste Oil Produced Consider Waste Oil Produced –USA (2000) 2,905,982,575 gallons/year 2,905,982,575 gallons/year –San Luis Obispo (2000) = (USA waste oil) * (250,000/294,730,000) = 2,464,876

44. Land Requirement: San Luis Obispo County Assumptions (using National Trend) Assumptions (using National Trend) –2003 120 million gallons Biodiesel required / year 120 million gallons Biodiesel required / year 2.5 million gallons waste oil produced / year 2.5 million gallons waste oil produced / year 1:1 ratio between oil and Biodiesel 1:1 ratio between oil and Biodiesel –2050 182 million gallons Biodiesel required / year 182 million gallons Biodiesel required / year 4.93 million gallons waste oil produced / year 4.93 million gallons waste oil produced / year 1:1 ratio between oil and Biodiesel 1:1 ratio between oil and Biodiesel

45. Land Requirement: San Luis Obispo County

47. Assumptions (using Population) Assumptions (using Population) –2003 120 million gallons Biodiesel required / year 120 million gallons Biodiesel required / year 2.5 million gallons waste oil produced / year 2.5 million gallons waste oil produced / year 1:1 ratio between oil and Biodiesel 1:1 ratio between oil and Biodiesel –2050 250 million gallons Biodiesel required / year 250 million gallons Biodiesel required / year 4.93 million gallons waste oil produced / year 4.93 million gallons waste oil produced / year 1:1 ratio between oil and Biodiesel 1:1 ratio between oil and Biodiesel

49. Average Consumer sources for Biodiesel –Gas Stations –Fuel Companies

50. The Economic Impact Analysis Increase Local Revenue Increase Local Revenue More Jobs More Jobs Cheaper Fuel Cheaper Fuel

51. Initial Cost Per Plant

52. Investment Plan

53. Return on Investment

54. Impact on Employment

55. Economical Impact on San Luis Obispo County 1500 New Jobs in San Luis Obispo County 1500 New Jobs in San Luis Obispo County

56. Biodiesel vs. Petroleum Gasoline Gasoline –Average Central Coast Pump Cost = $2.569 per gallon Diesel Diesel –Average Central Coast Pump Cost = $2.369 per gallon Biodiesel Biodiesel –Can be sold at the pump for under $2 per gallon!

57. What the Consumer Sees Cleaner air Cleaner air Lower fuel prices Lower fuel prices 1500 New Jobs introduced to San Luis Obispo County 1500 New Jobs introduced to San Luis Obispo County An independent fuel source An independent fuel source