1. Purpose Soy Beans in Biofuels
Provide An Overview Of The Current Soybean Oil and Biodiesel Markets
Advantages and Disadvantages in using soybeans in the production of biofuels

2. History
The concept of using vegetal oil as an engine fuel likely dates when Rudolf Diesel ( ) developed the first engine to run on peanut oil, as he demonstrated at the World Exhibition in Paris in Unfortunately, R. Diesel died 1913 before his vision of a vegetable oil powered engine was fully realized.
"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 the petroleum and coal tar products of the present time" Rudolf Diesel, 1912

3. What is Biodiesel fuel?
Biodiesel is a fuel that is made from soy beans, or waste vegetable oil (cooking oil). It can be used in place of petroleum diesel fuel for vehicles or heating oil for buildings. Unlike petroleum diesel, biodiesel is a renewable resource, and it creates less pollution than petroleum diesel. It can be used alone or in combination with petroleum diesel, or with heating oil. Generally, no expensive modifications to the engines are required. This makes it easier to integrate biodiesel into current systems than other alternative energy sources, which often require new equipment.

4. How is Biodiesel made?
Biodiesel fuel is made from oils or fats, which are both hydrocarbons, most commonly soybean oil. These hydrocarbons are filtered, then mixed with an alcohol, which is usually methanol, and a catalyst (sodium or potassium hydroxide). The major products of this reaction are the biodiesel fuel, which is an ester, and glycerol, which has commercial uses, such as in cosmetics.

5. How is Biodiesel labeled?
Biodiesel is designated by the letter B and a number representing the percent of the fuel that is biodiesel. The rest of the fuel is petroleum diesel. For example, a mixture of 20% biodiesel and 80% petroleum diesel would be labeled B20. This ratio of biodiesel to petroleum diesel is commonly used.

6. BQ-9000 Quality Program MANUFACTURING PROCESSES OIL FEEDSTOCK
BULK STORAGE
FROM SUPPLIER
BIODIESEL
BULK STORAGE
MANUFACTURING
PROCESSES
BIODIESEL
TO CUSTOMER

7. How Is Biodiesel Made? Biodiesel Vegetable Oils Animal Fats Methyl
Catalyst
Methanol
Vegetable Oils
Animal Fats
ASTM D6751
Methyl
Ester
Biodiesel
Reactor
Recovered
Methanol
Waste
Stream
Crude
Glycerin

8. Production is flat, expect < 2% increase thru '07/'08 Crush output, ~ 53% of Production, is also expected to remain flat thru '07/'08

9. The "Oil Can" capacity is fixed and demand is near 100%. Only 3% of 2
The "Oil Can" capacity is fixed and demand is near 100%* Only 3% of 2.4 Billion gpy oil available for industrial use Very stiff competition from food industry Crush capacity limited by volume & soy meal markets
* Includes oilseed crops, tallow, lard, & poultry fats

10. Top Twelve Soybean Producing States 2004 State Acres Planted (x1000)
Production (Million Bushels)
Yield
(Bushels/Acre)
Iowa
10,100
497
49.0
Illinois
9,500
500
50.5
Minnesota
6,900
236
33.5
Indiana
5,400
287
52.0
Missouri
5,000
223
45.0
Nebraska
4,700
221
46.5
Ohio
4,500
208
47.0
South Dakota
3,900
140
34.0
Arkansas
3,030
124
40.0
North Dakota
3,000 82
26.5
Kansas
2,900
111
41.0
Michigan
2,000 75
38.0

12. U.S. Soybean Oil Use for 2004 Baking and Frying Fats 7,900 Million lbs
(44.9%)
Salad or Cooking Oil
7,730 Million lbs
(43.9%)
Margarine
1,210 Million lbs
(6.9%)
Industrial Products
(Includes Biodiesel Feedstock)
628 Million lbs
(3.6%)
Other Edible Products
135 Million lbs
(< 1%)

13. NBB predicts modest BD sales growth for '06 to 130 Mgal However, '05 BD production (75 Mgal) exceeded domestic industrial soy oil supply (72 Mgal)

14. U.S. Soybean Crush (Projected)
Biodiesel capacity is estimated to be 377 Mgal in '06, 1009 Mgal capacity in '07, and a projected 1716 Mgal capacity in '07/'08. The majority of this BD capacity increase is based on soybean oil as the primary feedstock. Forecasts for domestic oil available for industrial use are flat at < 80 Mgal/yr through '07/'08.
U.S. Soybean Crush (Projected)
2004
1,650 Million Bushels
(99,000 Million lbs)
2005
1,720 Million Bushels
(103,200 Million lbs)
2006
1,730 Million Bushels
(103,800 Million lbs)

18. Why Should We Use Biodiesel?
Reduces Greenhouse Gases – 78% less CO2 Emissions
Highest Lifecyle Energy Balance – 3.2:1
Reduces Harmful Exhaust Compounds & Particulates
Nontoxic and Biodegradable
Restores Lubricity & Cleaner Burning
Reduces Dependence on Foreign Oil
Renewable Fuel – Feedstocks Grown in Arkansas
Price Comparable to Petroleum Diesel
Adaptable to Existing Infrastructure

19. What are the advantages of Biodiesel fuel?
Biodiesel fuel is a renewable energy source that can be made from soy beans grown for fuel, or from cooking oils recycled from restaurants. This means it is a renewable resource unlike petroleum-based diesel.
There is an excess production of soybeans in the United States, therefore biodiesel is an economic way to utilize this surplus.
Biodiesel is less polluting than petroleum diesel. Compared to petroleum diesel, biodiesel produces less soot (particulate matter), carbon monoxide, unburned hydrocarbons, and sulfur dioxide.

20. Advantages (continued)
The absence of sulfur in 100% biodiesel should extend the life of catalytic converters.
Biodiesel fuel can also be used in combination with heating oil to heat residential and industrial buildings. This can reduce dependence on non-renewable and increasingly expensive heating oil.
Biodiesel fuel can generally be used in existing oil heating systems and diesel engines without modification, and it can be distributed through existing diesel fuel pumps. This is an advantage over other alternative fuels, which can be expensive to use initially due to high cost of equipment modifications or new purchases. Biodiesel provides almost the same energy per gallon as petroleum diesel.
The lubricating effects of the biodiesel may extend the lifetime of engines.

21. What are the disadvantages of Biodiesel fuel?
Biodiesel is currently about one and a half times more expensive than petroleum diesel fuel. Part of this cost is because the most common source of oil is the soybean, which only is only 20% oil. However, the costs of biodiesel can be reduced by making biodiesel from recycled cooking oils rather than from new soy beans, or by making it from plant matter with higher oil content.
It takes energy to produce biodiesel fuel from soy crops, including the energy of sowing, fertilizing and harvesting.
Biodiesel fuel can damage rubber hoses in some engines, particularly in cars built before You should check with the manufacturer before using biodiesel to see if you need to replace any hoses or rubber seals.

22. Disadvantages (continued)
Biodiesel cleans the dirt from the engine. This dirt then collects in the fuel filter, which can clog it. Clogging occurs most often when biodiesel is first used after a period of operation with petroleum diesel, so filters should be changed after the first several hours of biodiesel use.
Biodiesel is not distributed as widely as traditional, petroleum diesel, but distribution infrastructure is improving.
Soybean oil-based biodiesel will start to crystallize at around 0 degrees C.

23. Biodiesel Production NBB Predicts Significant Capacity Growth Through 2008 (over 450% increase). Production Capacity Using (or Projecting) Soybean Oil as Primary Feedstock: 965 Mgal Production Capacity Using (or Projecting) Multi-Feedstock Capability: 552 Mgal Soy Oil Demand Approaching 1 Billion Gallons per Year While Soy Oil Supply Potentially Limited to Less than 100 Mgpy Due to Crush Capacity and Meal Outlets* * Some Crush Plants also produce biodiesel

24. Soybean Meal Use (78,600 Mlbs Produced, 15% Exported)
U.S. Soybean Meal Use By Livestock 2004
Poultry
33,800 Million lbs
(50.6%)
Swine
17,400 Million lbs
(26%)
Beef
7,600 Million lbs
(11.4%)
Dairy
4,000 Million lbs
(6%)
Pet Food
2,200 Million lbs
(3.3%)
Other
1,800 Million lbs
(2.7%)

25. Soybean Production Trends USDA Predicts Slight Growth (<1%) in Poultry and Swine Domestic Markets Through USB Predicts Decrease in Soybean Meal Exports Due to Increase in S.A. Exports A Significant Number of Major Crush Facilities Have Entered the Biodiesel Business Soybean Oil Prices are Predicted to Climb Steadily due to Stiff Competition Between Biodiesel and Food Industries

26. Soybean Oil Prices (Crude Degummed – Gulf Coast)
2003
2004
2005
2006

27. Sources United Stated Department of Agriculture United Soybean Board National Biodiesel Board National Oilseed Producer's Association Chicago Board of Trade Iowa State University Extension Office University of Illinois at Urbana-Champaign Jacobsen Report