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  • What it means to be an advanced biofuel is defined in regulation by the USEPA in their final rule implementing the Energy Independence and Security Act, also known as the Renewable Fuel Standard. EPA says an Advanced biofuelmeans renewable fuel that has lifecycle greenhouse gas emission that are at least 50 percent less than the greenhouse gas emissions from average petroleum. Biodiesel is the only fuel meeting EPA’s definition that is currently produced in commercial quantities in the United States and already defined specifically by an ASTM specification that is accepted for use in diesel engines and space heating equipment.You can also find this definition in the Energy Independence and Security Act, which is the statute enacting EPA’s changes to the Renewable Fuels Standard.
  • Summing up the feedstocks that EPA approves for biomass-based diesel and advanced biofuel we have:
  • While I’ve shown that biodiesel is a very diverse product, soybean oil still gets a lot of attention as a biodiesel feedstock. Perhaps the biggest misconception about biodiesel is that it may decrease the availability of food or that more acres will need to be planted to produce soy biodiesel. Neither is true.Soybeans are grown primarily for their high-value protein meal as livestock feed. 80% of a soybean is protein meal and about 20% of the bean consists of oil. Some soybean oil finds its way into our food supply in the form of cooking oil, salad dressing, and that gooey stuff inside Twinkies. Historically, oil surplus exceeds demand for food uses, and that has been increasingly so in recent months. The U.S. biodiesel industry only uses a very small portion of the available oil. Again, this oil results from a demand for soy protein meal. By providing a value for the surplus oil, biodiesel can actually reduce the price paid for protein meal. The California Air Resources Board has modeled that using 1 billion gallons of soybean oil for biodiesel production would decrease the price of soy protein meal by 44% in the U.S. This would mean lower prices for livestock feed and high protein food produced from soybeans.
  • In addition to the USEPA and IRS, 47 states now refer to the ASTM specification for the legal definition of biodiesel, and an increasing number of states are actively enforcing the specification to ensure fuel quality and uninterrupted service for the customer.ASTM D 6751-09 B100ASTM D 7467-09 B6-20ASTM D 975 dieselASTM D 396 heating oil

Transcript

  • 1. U.S. Biodiesel Industry Update
    Global Biodiesel Congress
    September 22-23, 2010
    Sao Paulo, Brazil
  • 2. National Biodiesel Board
    Represents the biodiesel industry as the coordinating body for research and development in the US. 
    Founded in 1992 by soybean commodity groups.
    NBB’s membership is comprised of state, national, and international feedstock and feedstock processor organizations, biodiesel suppliers, fuel marketers and distributors, and technology providers.
    More than 280 members
    Headquartered in Jefferson City, MO
    Office also in Washington, DC
  • 3. Industry Update
  • 4. U.S. Biodiesel Plants
  • 5. US Biodiesel Demand
  • 6. 2010 Production, by month
  • 7. Raw Material Use, 2010
    7
  • 8. Federal Landscape
  • 9. Policy Remains Critical
    Federal Policy remains an effective catalyst for the biodiesel industry
    Biodiesel Blenders Tax Credit
    Renewable Fuel Standard (RFS2)
    9
    9
  • 10. Biodiesel Tax Credit
    Immediate Priority – Retroactive Extension of Biodiesel Tax Incentive
    Long-term Industry Goal — Multi-Year Extension
    Barriers
    PAYGO/Costs
    Process/Limited Legislative Calendar
    Policy Concerns/Opposition
  • 11. Renewable Fuel Standard(RFS-2)
    Energy Independence and Security Act of 2007 signed by the President on December 19, 2007
    Increased RFSto to 36 billion gallons by 2022. 
    Within the RFS, created a minimum use requirement for “biomass-based diesel” which is a technology neutral classification, and includes biodiesel
    Minimum usage requirements of 500 million gallons of biodiesel in 2009 up to 1 billion gallons in 2012.
  • 12. RFS-2 Requirements
  • 13. EPA Definitions40 CFR 80.1401
    Advanced Biofuelmeans renewable fuel, other than ethanol derived from cornstarch, has lifecycle greenhouse gas emissions that are at least 50 percent less than baseline lifecycle greenhouse gas emissions.
    Renewable Fuel (i) fuel that is produced from renewable biomass.
    Renewable Biomass
    (1)Planted crops and crop residue harvested from existing agricultural land cleared or cultivated prior to December 19, 2007 and that was nonforested and either actively managed or fallow on December 19, 2007.
    (3) Animal waste material and animal byproducts
    (6) Algae
    (7) Separated yard waste or food waste, including recycled cooking and trap grease…
  • 14. EPA Definition
    Renewable Biomass for Biodiesel:
    Soybean oil
    Corn oil from ethanol plants
    Animal fats
    Recycled grease
    Waste grease
    Algae
    Canola*
    * pending adoption of lifecycle analysis
  • 15. Legal Challenges
    Challenge 1 – API and NPRA (March 29th,, 2010)
    2009/10 Combined Biomass-Based Diesel Volume Requirements
    Overall Fairness of Implementing 2010 Volumes
    Challenge II - Clean Air Task Force (Friends of the Earth) (May 25th, 2010)
    Challenging the LCA Assessment Used by EPA
    Challenging the Aggregate Compliance Approach
    NBB has Joined EPA as an Intervener for Both Challenges
  • 16. Continued Effort
    Future Volume Obligations
    Future Discussions on LCA and ILUC
    Additional Feedstock Pathways
  • 17. Feedstock Sources
  • 18. Near Term Feedstock
    Palm Oil
    Animal Fats
    Yellow Grease
    Cottonseed Oil
    Soybean Oil
    Corn Oil from DGS
    BrassicaJuncea
    Canola Oil
    Camelina Oil
  • 19. What is on the Horizon?
  • 20. Low Ricin Castor
    Algae
    Jatropha
    Photo by: Joel Rose
    Longer Term Sources
    Gaining Attention
    Longer Shots
    Halophytes
    Brown Grease
    Pennycress
  • 21. Looking Forward
  • 22. Issues
    Food and Fuel Issues
    Market Opportunities with Bioheat
    National Infrastructure
    Consumer Confidence
  • 23. Co-products of Food Production
    Protein meal for livestock feed is the primary driver for soybean production
    Better utilization of the oil coproduct can reduce the price of the protein meal.
  • 24. Food Supply Security
    In 2008, 360 million gallons of biodiesel from soybeans co-produced enough soybean meal for the equivalent of 110 billion rations of protein for the hungry.
    In 2009, 247 million gallons of biodiesel from soybeans co-produced enough meal for the equivalent of 72 billion rations of protein.
  • 25. Oilheat Markets, Presents Opportunity
    In September 2009, the National Oilheat Research Alliance declared a new vision for the Oilheat industry.
    By July 2010, all heating oil will be blended with biodiesel to insure that at least 2% of the fuel is renewable.
    140,000,000 gallons.
    By 2030 all Oilheat will be ULSD with a 15% inclusion of biodiesel.
    By 2050 all Oilheat will be B100 biodiesel.
  • 26. National Distribution Capabilities
    Available through direct shipment from over 1,459 petroleum distributors nationwide
    Approximately 1,321 retail filling stations nationwide, 200 locations are semi-truck accessible
    Some 1200 terminals cover the U.S. landscape, 158 handle biodiesel nationwide, 73 automated for distribution
  • 27. Consumer Confidence (Fuel Quality and BQ-9000)
    • A voluntary quality system certification program for the North American biodiesel industry
    • 28. Applies internationally accepted quality management principles
    • 29. Incorporates fuel specifications
    • 30. Uses a series of audits to verify adherence to the company’s own quality management system
  • Who and What are Certified
    Three certifications possible for companies:
    BQ-9000 Producer
    BQ-9000 Marketer
    BQ-9000 Laboratory (March 31, 2009)
  • 31. BQ-9000 Status
    Over 70% of the biodiesel produced in 2009 was by a BQ-9000 accredited producer
    Currently have:
    40 BQ-9000 Producers
    19 BQ-9000 Marketers
    1 BQ-9000 Lab (Iowa Central)
    Large refiners (i.e. RFS2 obligated parties) are making
    BQ-9000 a pre-condition of purchase
    OEM’s are requiring BQ-9000 for warranty support
  • 32. 47 States Enforce ASTM Specification for Biodiesel
    Enforce
    D6751
    No Reference to D6751
    ASTM D 6751-09 B100 - ASTM D 7467-09 B6-20
  • 33. www.BQ9000.com
  • 34. U.S. Biodiesel Industry Update
    Global Biodiesel Congress
    September 22-23, 2010
    Sao Paulo, Brazil