Biodiesel:

Americas Advanced Biofuel, Here and Now

Jennifer Weaver OEM Outreach and Education Program Manager National Biodiesel Board Jefferson City, MO / Saline, MI 1-800-841-5849 / 734-904-3822 Jennifer_Weaver@me.com

Objective and Topics for Today

Upon completion of this session, you will better understand what biodiesel is, which biodiesel blends your OEM(s) support, and how biodiesel can be promoted and used successfully in the diesel vehicles you sell and service.
Brief Introduction to Biodiesel Top Five Reasons Smart Customers Are Using Biodiesel ASTM Fuel Specifications and Fuel Quality Legislative Updates Impacting Demand OEM Acceptance and Positions of Support Biodiesel Use and Handling Guidelines Information Resources / Q and A
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What is Biodiesel?

A renewable fuel commercially refined from a diverse array of fats and oil by-products and used in normal diesel engines.

Biodiesel Defined
Biodiesel, n. -- a fuel comprised of mono-alkyl esters of long chain fatty acids derived from vegetable oils or animal fats, meeting ASTM D 6751, designated B100. Biodiesel Blend, n. -- a blend of biodiesel fuel with petroleum-based diesel fuel designated BXX, where XX is the volume percent of biodiesel.
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Biodiesel Raw Materials

Oil or Fat Alcohol Soybean Methanol Corn Ethanol Canola Cottonseed Catalyst Sunflower Sodium hydroxide Beef tallow Potassium hydroxide Pork lard Used cooking oils

Future Feedstocks

Algae Jatropha

Halophytes

Pennycress

Brown Grease
Photo by: Joel Rose

Low Ricin Castor

Biodiesel Reaction
Reacting:
In the Presence of a Catalyst Yields:

100 Lbs. Vegetable Oil or Animal Fat + 10 Lbs. Alcohol

100 Lbs. Biodiesel + 10 Lbs. Glycerine

Produces mono-alkyl esters chemically similar to diesel fuel

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U.S. Biodiesel Production by Calendar Year

Volume in Gallons
1,200,000,000

RFS-2 Implemented; Biodiesel Tax Credit in 2011

1,000,000,000

800,000,000

Economic Downturn RFS2 Uncertainty Lapse of Biodiesel Tax Credit

Volume
Year

600,000,000

400,000,000

200,000,000

0 2005 2006 2007 2008 2009 2010 2011 2012

* Estimated

Biodiesel: An Advanced Biofuel Available Now

205 EPARegistered plants nationwide with over 3.08 Billion GPY Capacity

 Biodiesel and biodiesel blends are now available nationwide from more than: 593 Distributors 842 Retailers 462 Truck Stops At least 1,897 Public Locations
Visit the NBB website at: www.biodiesel.org/usingbiodiesel/finding-biodiesel/retail-locations to view biodiesel retailers near you, by state, or along a route New NBB Mobile App identifies locations en-route
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Biodiesel Infrastructure

 B5 and lower blends are being transported on existing U.S. pipelines that do not carry jet fuel. Volume is relatively small, but current research could allow more.
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Top Five Reasons Why Smart Customers Are Using Biodiesel

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#1

Its Here and Now

Biodiesel is Americas first domestically produced, commercially available Advanced Biofuel and meets EPA requirements for inclusion and use under the new Renewable Fuels Standard (RFS-2). RFS-2 mandates 36 billion gallons of renewable fuel be used by obligated parties (i.e. refiners) by 2022
Biomass-Based Diesel 2011 2012 2013 Volume Requirement 800 Million Gallons 1 Billion Gallons 1.28 Billion Gallons

#1 - RFS-2 Advanced Biofuel

EPA Definition 40 CFR 80.1401 - Advanced Biofuel means renewable fuel, other than ethanol derived from cornstarch, that has lifecycle greenhouse gas emissions that are at least 50 percent less than baseline lifecycle greenhouse gas emissions (i.e., diesel fuel)

EPA Approved Pathways:

Vegetable oils from soybeans, canola, and camelina Waste oils/yellow grease Animal fats DDG corn oil derived from the ethanol production process Algae Secondary annual crops planted on existing cropland

#2 Biodiesel Is Cleaner
U.S. biodiesel reduces lifecycle carbon emissions by more than 50 percent compared to petro diesel Best carbon reduction tool of any liquid fuel commercially available

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#2 Biodiesel is Cleaner
Other tailpipe emissions are also reduced by running on biodiesel, especially in pre-2010 diesel engines without aftertreatment systems NOx issue eliminated in todays new technology diesel engines

Emission Type
Total Unburned Hydrocarbons Carbon Monoxide Particulate Matter Oxides of Nitrogen (NOX)

B20
-20% -12% -12% +/-2%
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B2
-2.2% -1.3% -1.3% +/-.2%

#3 Sustainability

Not sacrificing food for fuel Biodiesel is produced from a variety of renewable resources and by-products of producing food for humans and animals From the soybeans used to produce biodiesel, 81% of the soybeans yield is protein that enters the market for either human consumption or animal feed.

#4 Energy Security and Economy

Reduces our dependence on foreign oil Expands and diversifies our domestic refinery capacity Most economical option for turning oils and fats into usable fuel diesel applications Creates added outlets for farm-based products Creates U.S. manufacturing jobs

#4 Energy Security and Economy

The 1+ billion gallons of biodiesel produced in 2012 supported more than 64,000 jobs across the U.S. and contributed over $6.08 billion to the GDP The 4.6 billion gallons of biodiesel produced in the U.S. since 2005 have:
Displaced 4.6 billion gallons of diesel fuel Decreased lifecycle GHG emissions by 56.2 billion pounds Equivalent to removing 4.96 million passenger vehicles from Americas roadways

Myth: 5 Percent of the Diesel Market Is Not Significant

REALITY 5 percent displacement would have significant impacts.
5 year average of on-highway diesel fuel demand in the U.S. is 37.8 billion gallons Replacing 5 percent with biodiesel = 1.88 billion gallons of biodiesel
In 2011, the United States imported nearly 1.7 billion gallons of ULSD from other countries. Through October 2012, the United States had imported over 970.5 million gallons of ULSD, with year-end projections totaling over 1.1 billion gallons.
Source: Energy Information Administration
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MD0IM_NUS-Z00_1&f=M

U.S. BIODIESEL INDUSTRY VISION:

Replace 5 percent of petroleum diesel use with Biodiesel by 2015

#5 Ease of Use and Performance

Using Biodiesel Blends is Easy! Up to B20:
Biodiesel blends can be used in any diesel engine/vehicle B5 B20 use covered under OEM warranty Drop-in replacement for diesel fuel No vehicle modifications needed Similar, seamless performance compared to diesel Dispensed through existing fueling stations Comparable fuel prices to diesel Low overall cost of ownership High biodiesel energy balance 5.54 : 1 (B100) 30-40 percent fuel efficiency gains with diesel engine

#5 Ease of Use and Performance

Biodiesel Delivers Important Diesel Properties:
Auto-ignition = Cetane Number over 50 BTU Content = Similar to #1, less than #2 Viscosity = Values in diesel fuel range (1.9 to 6.0) Cloud Point = Current biodiesel higher than #2 Lubricity = Naturally high in lubricity Sulfur = Naturally less than 15 ppm Cleanliness = ASTM specs same as petrodiesel

Stability = Spec set for six-month minimum shelf life

Emissions = Significantly less for PM, HC, CO

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ASTM Specifications and Biodiesel Fuel Quality

Biodiesel Standards:
ASTM D6751 is the approved standard for B100 for blending up to B20, in effect since 2001 Performance-based standard: feedstock and process neutral D975 Covers petrodiesel and blends up to five percent biodiesel maximum for on/off road engines; B5 is now fungible with diesel fuel D396 Covers heating oil and blends up to five percent biodiesel; B5 is now fungible with petro-based heating oil D7467 Covers blends containing six to twenty percent biodiesel (B6-B20) for on/off road engines Designed so that if B100 meets D6751 and petro diesel meets D975, then B6 to B20 blends will meet their specifications Important quality control is at B100 level

Additional Fuel Quality Controls

States that have adopted ASTM D6751 2007: 27 2012: 48 (AK and NJ remain) States with proactive enforcement 2007: 7 2012: 23
Fuel Quality
Proactive Testing

Proactive Testing No Proactive Testing

BQ-9000 and Fuel Quality

The biodiesel industry has an excellent fuelquality program called BQ-9000 (www.bq9000.org) Helps ensure that only the highest-quality biodiesel meeting ASTM specifications gets put into your fuel tanks ASTM Grade Fuel, BQ-9000 Companies

BQQuality Current Status BQ-9000 and Fuel

81+ percent of biodiesel produced is by BQ9000 accredited companies.

47 Producers 29 Marketers 7 Laboratories

90% 80% 70% 60% 50% 47%

Percentage of BQ9000 Biodiesel

79% 66% 58% 65% 63% 81%

40%
30% 20% 10% 0% FY05 FY06 FY07 FY08 FY09 FY10 FY11

Legislative Updates Impacting Biodiesel Demand and OEM Support

Renewable Fuels Standard (RFS-2)

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Federal Legislative Incentives for Biodiesel

Other federal legislative incentives that are important to OEMs and fleets: Biodiesel Tax Incentive
$1.00 per gallon blenders tax credit Retroactively reinstated for 2012-2013

EPACT Credits
Incentive for fleets for B20+ use; most economical option for EPACT compliance

CAF Credits
Incentive for automakers for B20+ approval; set to expire after model year 2015

State-Mandated and Incentivized Markets

State Mandates In Effect: Minnesota (B5), rising to B10 in May 2013; rising to B20 in May 2015 Washington (B2) Oregon (B5) Pennsylvania (B2) Misc. Fleets Total: ~ 107 MGPY Next to Implement: Massachusetts, Louisiana, Connecticut, Vermont, New Mexico B2 requirements: ~ 34 MGPY
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Consumption Incentives Illinois/Iowa/New York sales tax exemption: ~70-120 MGPY Total mandated / incentivized volume: 180-230 MGPY in 2012 430-490 MGPY in 2015

Illinois Tax Incentive

All U.S. fuels are taxed by the federal government Most states also have an additional state tax Both are flat taxes, cents per gallon Illinois also has a state sales tax on fuel 6.25 percent of sales price, not a flat tax Sales tax removed on entire gallon if at least 10 percent biodiesel is incorporated Incentive in place since 2003, just extended until 2018 With removal of sales tax, B11 is cheaper than diesel Illinois Department of Revenue projects half of diesel market is B11

Biodiesel Use and OEM Acceptance

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OEM Warranty Statements

All major OEMs selling diesel equipment in the U.S. support at least B5 and lower blends, provided they are made with biodiesel meeting ASTM D 6751 Most OEMs are also recommending use of a BQ-9000 supplier 10 new OEM statements of B20 support in 2012, more on the way

79 percent of U.S. manufacturers (30 brands) support B20 or higher blends in at least some of their equipment;
90 percent of the medium- and heavy-duty truck markets support B20

For a complete listing of OEM position statements on biodiesel, as well as the current U.S. Diesel Vehicles List, visit: www.biodiesel.org/using-biodiesel/oem-information
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OEMs Supporting B20+

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OEMs Supporting B20+

New OEM B20 Support Statements in 2012

New in 2012: Volvo and Mack B20 Warranty Statements (Typical of many manufacturers)
Use of biodiesel up to a maximum of 20 percent (B20) in and of itself, will not affect the manufacturer's mechanical warranty as to engine and emissions system related components, provided the bio fuel used in the blend conforms to ASTM D6751, B1 to B5 blends conform to ASTM D975, and B6 to B20 blends conform to ASTM D7467. Engine and aftertreatment emissions system component warranties are valid providing the B20 blend meets the respective ASTM standard. Customers will need to utilize oil sampling to establish appropriate drain interval(s) for their specific application(s).

New in 2012: Daimler Trucks NA

All DTNA truck models equipped with Cummins engines are approved for use with B20 biodiesel blends

DTNA truck models equipped with Detroit Diesel engines are currently approved for B5, and B20 is allowed upon request
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New in 2011: B20

Isuzu Commercial Truck approves B20 for all of its 2011+ MY diesel engines, including N-Series truck models and new Isuzu Reach commercial van

Isuzu holds 75 percent of the market share of U.S. low cab-forward medium-duty market First Asian manufacturer to announce B20 support in U.S.

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New in 2011: B20

Hino Trucks approves B20 for its complete product line of 2011+ MY class 4 and 5 cab-over and class 6 and 7 conventional trucks B20 is also approved for Hinos new 2012 diesel-electric hybrid

Hino Trucks is the worlds third largest manufacturer of light- and medium-duty trucks, and is now the fastest growing truck manufacturer in the U.S.

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B20 Approved
Ford approves B20 in all its 2011 MY and beyond

Class 2 - 5 Super Duty &

Class 6,7 Medium Duty Trucks
2010 and prior models approved for use with B5 under warranty.

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B20 Approved
Chrysler currently supports the use of B20 in the 6.7L Ram 2500/3500 pickup for government, military, and commercial fleets Chrysler extending full B20 support for all their diesel vehicles equipped with Cummins engines as of January 2013 New diesel Jeep Grand Cherokee coming in 2013
(biodiesel blend TBA)

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All 2011 MY and beyond GM Heavy Duty Products approved for B20
Chevrolet Silverado

GMC Sierra
Chevrolet Express GMC Savana
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Current B5 Positions
Approve B5:
Audi ** BMW Mazda Mercedes ** Mitsubishi ** PACCAR: Peterbilt / Kenworth ** Volkswagen **
** Actively researching B20

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Biodiesel Performance, Use, and Maintenance

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Using Biodiesel
Biodiesel Use and Handling Guidelines
Perform regularly scheduled maintenance per OEM Use only fuel that meets ASTM D6751 / D7467 specifications Purchase from BQ-9000-certified suppliers when possible Ensure fuel supplier conducts proper fuel blending Biodiesel blends should be used within six months Storage tanks should be free from sediment and water, and cleaning is advisable Cleaning properties of biodiesel may call for fuel filter change upon first switching to biodiesel Be aware of cold weather properties and take appropriate action

Cold-Weather Performance
B20 has been used successfully in climates below -20F
Cold weather can cloud and even gel any diesel fuel, including biodiesel.

Users of a B20 with #2 diesel will usually experience an increase of the cold-flow properties (cold filter plugging point, cloud point, pour point) at approximately 2 to 10 Fahrenheit. Similar precautions employed for petroleum diesel are needed for fueling with 20 percent blends. Blending with #1 diesel / #1 biodiesel Using fuel heaters and parking indoors Using a cold-flow improvement additive

B20 Versus Diesel: In the Shop

With in-spec B20 and lower, the issues you can expect to see in your shop are the same as you will see with petro diesel Except: Expect to see fewer lubricity-related issues Filter-related issues may be related to cleaning effect upon first use, or are likely normal diesel issues, imposter biodiesel or raw vegetable oil Less black smoke from exhaust! NBB offers ASE-Certified Diesel Technician training to help distinguish and diagnose fuel issues

Why Are OEMs Supporting B20?

Vehicle performance and emissions benefits ASTM specifications BQ-9000 biodiesel quality Renewable Fuels Standard (RFS-2) State Mandates and Incentives EPACT Credits Green competitive advantage Consumers and fleets want the option

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Voice of the Customer

NBB OEM Survey Data, 2012 Q: To what extent do you believe that support for biodiesel by an engine and/or vehicle manufacturer (OEM) is an important consideration in your decision to purchase that OEMs products? A: Definitely influences 55 percent If it matters to your Most likely influences 16 percent customers, then it May influence 20 percent matters to you! Not a factor 9 percent

OEM support for biodiesel is a factor in a customers purchase decision (of an OEMs product) for 91 percent of respondents.
Surveyed 4,196 Biodiesel Alliance and Backers members in North America, AugSep 2012