U.S. Biodiesel Industry Update Global Biodiesel Congress September 22-23, 2010 Sao Paulo, Brazil
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
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.
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…
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
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
Continued Effort Future Volume Obligations Future Discussions on LCA and ILUC Additional Feedstock Pathways
Issues Food and Fuel Issues Market Opportunities with Bioheat National Infrastructure Consumer Confidence
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.
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.
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.
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
Consumer Confidence (Fuel Quality and BQ-9000)
A voluntary quality system certification program for the North American biodiesel industry
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)
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
47 States Enforce ASTM Specification for Biodiesel Enforce D6751 No Reference to D6751 ASTM D 6751-09 B100 - ASTM D 7467-09 B6-20