HDRD Final Report Eng

s t H S f e s a
Stu d y o f Hy d r o g en ati o n D er i v ed R en ew ab l e D i esel as

a R en ew ab l e Fuel O p ti o n in North A m er i c a
Final R ep o r t
Natu ral R eso u r c es C an ad a
580 Booth Str eet
O ttaw a, O n tar i o K 1A 0E4
For additional information,
please contact:
Natalie Lambert
Project Manager, Energy
Telephone: 514 562-8651
Email: natalie.lambert@ecoressources.com
Marc h 3 0 , 2 0 1 2
E xp er ts i n en v i r o n m en t an d n atu r al r eso u r c e ec o n o m i c s
8 2 5 , R ao u l -Jo b i n , Qu eb ec (Qu eb ec ) C an ad a GIN 1S6
1 0 97, St-A l exan d r e, Su i te 2 0 1 , M o n tr eal (Qu eb ec ) C an ad a H2 Z IPS
w w w .ec o r esso u r c es.c o m i n fo @ec o r esso u r c es.c o m
Study o f Hydrogenation Derived Renewable Diesel as a Renewable Fuel Option in North America - Final Report
coRessources Consultants for Natural Resources Canada I
E x e c u t i v e S u m m a r y
As of 2011, 27 na t i ona l gov e r nm e nt s and 29 st a t e /pr ov i nc e gov e r nm e nt s ha v e i m ple m e nt e d poli c i e s t ha t
m a nda t e t he use of a m i ni m u m a m ou nt of r e ne wa ble a lt e r na t i v e s t o di esel, i nc lu di ng E u r ope, si x S outh
Am e r i c a n c ou nt r i e s, si x Asi a n c ou nt r i e s, Ca na da , t he Uni t e d S t ate s, Cost a Ric a and t he Dom i ni c a n
Re pu bli c .
On Ju ne 29, 2011, t he gov e r nm e nt of Ca na da r e gi st e r e d r e gu la t i ons a m e ndi ng t he Renewable Fuels
Regulations whi c h we r e t he n pu bli she d on Ju ly 20, 20111. The se a m e ndm e nt s st a t e d t ha t t he c om ing
int o for c e da t e of t he 2% r e qu i r e m e nt of r e ne wa ble c ont e nt in di e se l and he a t i ng oil wou ld be Ju ly 1st,
2011. Unde r t he Renewable Fuels Regulations, both e st e r -ba se d bi odi e se l and hy dr oge na t i on-de r i v e d
r e ne wa ble die se l (HDRD) a r e a dm i ssi ble as r e ne wa ble c ont e nt t ha t c an be used t o m e e t the
r e qu i r e m e nt s of t he Re gu la t i ons. Whi le bi odi e se l is t he m ost wi de ly a v a i la ble di e se l fu e l a lt e r na t i v e , t he r e
has been i nc r e a si ng i nt e r e st by t he r e gu la t e d pa r t i e s in usi ng HDRD t o m e e t t he r e qu i r e m e nt s, ev e n
t hou gh HDRD is c u r r e nt ly only pr odu c e d in E u r ope, S ou t he a st Asi a and t he Uni t e d S t a t e s23. The
pu r pose of t hi s st u dy is t o e v a lu a t e t he pot e nt i a l for HDRD pr odu c t i on and use in Canada .
Bi odi e se l and HDRD c a n be m a de fr om t he sa m e fe e dst oc ks and y e t t he i r c he m i c a l c om posi t i on and
phy si c a l pr ope r t i e s a r e qu i te di ffe r e nt . Thi s is du e t o t he di ffe r e nt pr oc e ssi ng pa t hwa y s t ha t are used for
t he i r pr odu c t i on. Fi gu r e I i llu st r a t e s t he di ffe r e nc e be t we e n bi odi e se l and HDRD pr odu c t i on pa t hwa y s
and by -pr odu c t s. Bi odi e se l is pr odu c e d v i a t r a nse st e r fi c a t i on wi t h gly c e r ol as a by -pr odu c t and HDRD is
pr odu c e d v i a hy dr opr oc e ssi ng wi t h pr opa ne , c a r bon m onox i de (CO) and c a r bon di ox i de (CO2) as by
pr odu c t s.
1Ca na da Ga ze t t e (2011 ). Regulations amending the renewable fuels regulations. Pu bli she d Ju ly 20, 2011.
2 c oRe ssou r c e s Consu lt a nt s (2010). National Renewable Diesel Initiative Infrastructure Project. Pr e pa r e d for Na t u r a l Re sou r c e s Ca na da ,
Ma y 2010.
3 La m be r t , N. (c oRe ssou r c e s Consu lt a nt s, 2012). An Update on Renewable Diesel Infrastructure in Canada. Fi na l r e por t su bm i t t e d Ma r c h
12, 2012, not y e t m a de pu bli c .
F e e d s t o c k s P r o c e s s P r o d u c t s
Transestri fic atio n
B IO D IE S E L
( F A M E
Pl a nt De r i v e d O i ls
N aO H
G L Y C E R O L
Ani mal Fats

Hydropr ocessi ng
R E N E WA B LE D IE SE L
(Hy d r o c ar b o n ^
P R O PA N E . C O . C O ^
coRessources Consultants for Natural Resources Canada
Figure I - Biodiesel and HDRD feedstocks, production pathways and products
S ou r c e : Hoe km a n, S. K., Ge r t le r , A., Br oc k, A., Robbi ns, C. (De se r t Re se a r c h Inst i t u t e ) a nd Na t a r a ja n, M. (Ma r a t hon
Pe t r ole u m Com pa ny ) (2010). Production and Properties o f Biodistillate Transportation Fuels. Pr e se nt a t i on a t t he AWMA
Int e r na t i ona l S pe c i a li t y Confe r e nc e : Le a pfr oggi ng Oppor t u ni t i e s for Ai r Qu a li t y Im pr ov e m e nt , Ma y 2010, Chi na .
HDRD c an be pr odu c e d fr om v i r t u a lly a ny t y pe of bi o-ba se d r e ne wa ble fe e dst oc k. The m ost c om m on
fe e dst oc ks a r e a ni m a l fa t s and v e ge t a ble oi ls, whi c h a r e m a de up m ost ly of t r i gly c e r i de s and are the
t y pe s of fe e dst oc ks t ha t a r e t r a di t i ona lly used for bi odi e se l pr odu c t i on. Howe v e r , HDRD c a n be pr odu c e d
fr om a wi de r r a nge of fe e dst oc ks t ha n bi odi e se l. The r e a r e t wo pr i nc ipa l r e a sons for t his: 1) t he de gr e e
of u nsa t u r a t i on of t he fe e dst oc k m ole c u le s is not a c onsi de r a t i on sinc e hy dr opr oc e ssi ng r e su lt s in
pa r a ffi ni c hy dr oc a r bons t ha t a r e fu lly sa t u r a t e d and a r e not su sc e pt i ble t o ox i da t i v e i nst a bi li t y in t he wa y
t ha t u nsa t u r a t e d m e t hy l e st e r s fou nd in bi odi e se l c an be 45; and 2) du r i ng hy dr opr oc e ssi ng t o pr odu c e
HDRD, fr e e fa t t y a c i ds (FFAs) a r e e a si ly c onv e r t e d t o pa r a ffi ns, whe r e a s in bi odie se l pr odu c t i on t he y can
r e a c t wi t h t he alkali c a t a ly st s t o pr odu c e soa ps. The r e for e FFA c ont e nt of t he fe e dst oc k is not a c onc e r n
for HDRD pr odu c t i on6.
HDRD c a n a lso be pr odu c e d fr om li gnoc e llu losi c fe e dst oc ks su c h as t hose de r i v e d fr om a gr ic u lt u r a l and
pulp and pa pe r r e sidu e s, bu t a ddi t i ona l pr oc e ssi ng m u st be c a r r i e d ou t pr i or t o hy dr ot r e a t m e nt . No
e x i st i ng HDRD pr odu c t i on fa c i li t i e s c u r r e nt ly u se li gnoc e llu losi c bi om a ss as a fe e dst oc k, howe v e r the r e is
si gni fi c a nt r e se a r c h c u r r e nt ly be i ng c ondu c t e d in or de r t o opt i m i ze t he use of t he se m or e di v e r se
fe e dst oc ks t ha t a lso do not c om pe t e wi t h food c r ops7.
4 It shou ld be not e d t ha t t r a nse st e r fi c a t i on c a n be followe d by a hy dr oge na t i on st e p t o sa t u r a t e t he dou ble bonds in bi odi e se l. Thi s a ddi t i ona l
pr oc e ssi ng st e p c a n be a dde d t o a llow for t he u se of a gr e a t e r di v e r si t y of fe e dst oc ks for bi odi e se l pr odu c t i on a nd t o i m pr ov e pr odu c t
st a bi li t y .
5 Hoe km a n, S. K., Ge r t le r , A. W., Br oc h, A., a nd Robbi ns, C. (2009). Biodistillate Transportation Fuels 1. Production and Properties. S AE
Int. J. Fu e ls Lu br ., 2(2):185.
6 Hoe km a n, S. K., Ge r t le r , A. W., Br oc h, A., a nd Robbi ns, C. (2009). Investigation of Biodistillates as Potential Blendstocks for
Transportation Fuels. De se r t Re se a r c h Inst it u t e , CRC Pr oje c t nu m be r AVFL-17, pu bli she d Ju ne 2009.
7 Holm gr e n, J., Gosli ng, C., Cou c h, K., Ka lne s, T., Ma r ke r , T., Mc Ca ll, M. And Ma r i na nge li , R. (UOP-Hone y we ll, 2007). Refining
Biofeedstock Innovations. Pe t r ole u m Te c hnology Qu a r t e r ly , Q3, 2007.
coRessources Consultants for Natural Resources Canada ill
The m ost c om m only used fe e dst oc ks for HDRD pr odu c t i on in E u r ope a r e pa lm oil, r a pe se e d oil, t a llow,
y e llow gr e a se , ja t r opha oil and c a m e li na oils. In S ou t he a st Asi a pa lm oil is use d e x c lu si v e ly and in t he
Uni t e d S t a t e s t a llow is c u r r e nt ly used e x c lu si v e ly , bu t soy m a y a lso be used. In Ca na da , e x i st i ng
bi odie se l fe e dst oc ks su c h as c a nola , soy, t a llow and y e llow gr e a se c ou ld be used for HDRD pr odu c t i on.
One of t he a dv a nt a ge s of t he HDRD pr odu c t i on pr oc e ss is t ha t i t m a ke s use of e x i st i ng r e fi ni ng
t e c hnology . Hy dr ot r e a t m e nt u ni t s a r e a lr e a dy used in c onv e nt i ona l r e fi ne r i e s in or de r t o de su lfu r i se
fr a c t i ona l di st illa t e s, inc lu di ng di e se l oil. As su c h, t hi s sa m e t e c hnology c an be a ppli e d t o the
hy dr ot r e a t m e nt of r e ne wa ble oi ls t o pr odu c e HDRD. Thi s c a n be done e i t he r by c o-pr oc e ssi ng the
r e ne wa ble fe e d wi t h t he c onv e nt i ona l di e se l oi l fe e d or by c onst r u c t i ng a st a nd-a lone hy dr ot r e a t m e nt u ni t
use d e x c lu si v e ly for pr odu c i ng HDRD. The a dv a nt a ge of c o-pr oc e ssi ng is t he la r ge sa v i ngs in c a pi t a l
c ost s, si nc e t he r e ne wa ble fe e d c an be pr oc e sse d in t he e x i st i ng hy dr ot r e a t e r . Howe v e r , i t r e qu i r e s
r e a c t or shu t down whe n swi t c hi ng be t we e n m ode s of ope r a t i on and i t t o m a ke ne c e ssa r y c ha nge s in t he
c a t a ly st bed and ope r a t i ng c ondi t i ons. In a ddi t ion, du e t o t he hi ghe r hy dr oge n r e qu i r e m e nt s and the
hi ghly e x ot he r m i c na t u r e of hy dr opr oc e ssi ng r e ne wa ble fe e ds, c o-fe e d ble nds a bov e 10%-15% c a n be
m or e c ha lle ngi ng, a lt hou gh r e gu la r c o-pr oc e ssi ng of fe e ds of up t o 30% ha v e been a c hi e v e d
su c c e ssfu lly 89 and e v e n hi ghe r ble nds c an be a c hi e v e d wi t h t he pr ope r ope r a t i ng c ondi t i ons.
The r e is an a ddi t i ona l c onc e r n r e la t e d t o c o-pr oc e ssi ng t ha t is spe c i fi c t o t he Uni t e d S t a t e s m a r ke t:
HDRD t ha t is pr odu c e d as a ble nd wi t h c onv e nt i ona l di e se l v i a c o-pr oc e ssi ng c a nnot be used t o ge ne r a t e
v a lu a ble D4 Re ne wa ble Ide nt i fi c a t i on Nu m be r (RIN) c r e di t s for Ty pe B bi om a ss-ba se d bi ofu e ls u nde r the
US Re ne wa ble Fu e ls S t a nda r d (RFS 2)10. For HDRD t o be e li gi ble for D4 RINs, i t m u st be pr oc e sse d
inde pe nde nt ly fr om a c onv e nt i ona l di e se l fe e d (as we ll as ot he r RFS 2 r e qu i r e m e nt s, su c h as t hose
r e la t e d t o e nv i r onm e nt a l pe r for m a nc e ).
S t a nd-a lone u ni t s for hy dr opr oc e ssi ng r e ne wa ble fe e dst oc ks ha v e t he a dv a nt a ge of being t a i lor -m a de
and opt i m i se d for HDRD pr odu c t i on. The y c a n be bu i lt as a dd-ons t o e x i st i ng r e fi ne r i e s in or de r t o m a ke
use of e x i st i ng hy dr oge n ge ne r a t i on c a pa c i t y and t o st r e a m li ne t he m a na ge m e nt of r e c y c le gases. The
HDRD c an a lso be ble nde d wi t h c onv e nt i ona l die se l a ft e r pr oc e ssi ng on-si t e a t t he r e fi ne r y befor e
di st r i bu t i on t o t he t e r m i na ls, or i t c an be ke pt se pa r a t e for di st r i bu t i on and sa le as a ne a t produ c t . The
ble nd pe r c e nt a ge c a n be de t e r m i ne d a t shor t not i c e a c c or di ng t o c ha ngi ng m a r ke t c ondi t i ons wi t hou t
c ha nge s t o ope r a t i ng c ondi t i ons.
Howe v e r , t he obv i ou s di sa dv a nt a ge of a st a nd-a lone pr odu c t i on fa c i li t y a r e t he high c a pi t a l c ost s for the
c onst r u c t i on of t he r e qu i r e d a ddi t i ona l i nfr a st r u c t u r e . In or de r for t he c onst r u c t i on of su c h a fa c i li t y t o be
e c onom i c , t he ope r a t or m u st t a ke a dv a nt a ge of e c onom i e s of sc a le by pr odu c i ng r e ne wa ble di e se l in
la r ge v olu m e s. Co-pr oc e ssi ng a llows t he r e fi ne r t o ble nd sm a ll v olu m e s of HDRD wi t h le ss c a pi t a l
i nv e st m e nt (m ost ly re la t e d t o t he r e c e i pt, st or a ge and ha ndli ng of t he fe e dst oc k).
8 E ge be r g, R., Mi c ha e lse n, N. a nd S ky u m , L. (Ha ldor Topsoe , da t e u nknown). Novel Hydrotreating Technology for Production of Green
Diesel.
9 Pe r sona l Com m u ni c a t i ons.
10 Co-pr oc e sse d HDRD is e li gi ble for D5 RINs in t he Ty pe A a dv a nc e d bi ofu e ls c a t e gor y , bu t t he se RINs a r e c u r r e nt ly t r a di ng a t a bou t ha lf
t he pr i c e of D4 RINs.
coRessources Consultants for Natural Resources Canada iv
The c hoi c e of pr odu c i ng HDRD v i a c o-pr oc e ssi ng or in a st a nd-a lone fa c i li t y will de pe nd gr e a t ly on loc al
c ondi t i ons. In t he Uni te d S t a t e s c ont e x t , howe v e r , c o-pr oc e ssi ng is u nli ke ly t o be t he m e t hod of c hoi c e in
the ne a r t o m e di u m t e r m due t o u nfa v ou r a ble RIN pr i c e s r e la t i v e t o HDRD pr odu c e d in a st a nd-a lone u ni t
u nde r t he RFS 2 re gu la t i ons.
Ta ble I pr ov i de s a c om pa r i son of som e of t he pr ope r t i e s of Ult r a Low S u lphu r Die sel (ULS D), bi odi e se l
and HDRD. The ox y ge n c ont e nt in ULS D and HDRD is zero, whe r e a s i t is a bou t 11 we i ght % for
bi odi e se l. Cor r e spondi ngly , t he c a r bon c ont e nt by we i ght of bi odi e se l is lowe r and c onse qu e nt ly , t he
e ne r gy c ont e nt by we i ght is lower. As c an be se e n in t he t a ble , t he e ne r gy c ont e nt of bi odi e se l is
a ppr ox i m a t e ly 39 MJ/kg, whi le i t is c lose r t o 43-44 MJ/kg for ULS D and HDRD. Howe v e r , HDRD is also
le ss de nse t ha n bi odi e se l, whi c h m e a ns t ha t t he e ne r gy c ont e nt by v olu m e is only sli ght ly hi ghe r t ha n
t ha t of bi odi e se l (-121,000-122,000 BTU/ga l or -32,000 BTU/li t r e ), whi c h is le ss t ha n t ha t of ULS D
(-130,000 BTU/ga l or -34,000 BTU/li t r e ). It c a n also be se e n in t he t a ble t ha t t he c e t a ne nu m be r of
HDRD is si gni fi c a nt ly hi ghe r t ha n t ha t of ULS D or biodi ese l.
Table I - Properties of ULSD, B IO D IE SE L and HDRD (renewable diesel)
Pr o p er ty N o . 2 Petr o l eu m
U LSD
B i o d i esel
(F A M E )
R en ew ab l e D i esel
C ar b o n , w t% 8 6.8 76.2 8 4 .9
Hy d r o g en , w t% 1 3 .2 1 2 .6 1 5 .1
O xy g en , w t% 0 .0 1 1 .2 0 .0
Sp ec i fi c Gr av i ty 0 .8 5 0 .8 8 0 .78
C etan e N o 4 0 -4 5 4 5 -5 5 70 -90
Tg c .'C 3 0 0 -3 3 0 3 3 0 -3 60 2 90 -3 0 0
Vi sc o si ty , m m 2/sec . @ 4 0 <C 2 -3 4 -5 3 -4
E n er g y C o n ten t (LHV)
M ass b asi s, M J/kg 4 3 3 9 4 4
M ass b asi s, B TU /l b . 1 8 , 5 0 0 1 6, 60 0 1 8 , 90 0
Vo l . b asi s, 1 0 0 0 B TU /g al 1 3 0 1 2 1 1 2 2
S ou r c e : Hoe km a n, S. K., Ge r t le r , A. W., Br oc h, A., a nd Robbi ns, C. (2009). Investigation o f Biodistillates as Potential
Blendstocks for Transportation Fuels. De se r t Re se a r c h Inst i t u t e , CRC Pr oje c t nu m be r AVFL-17, pu bli she d Ju ne 2009.
Cu r r e nt ly , t he r e a r e no fu e l st a nda r ds t ha t ha v e bee n de v e lope d u ni qu e ly for HDRD, ne a t or ble nde d.
HDRD is c om pr i se d of t he sa m e t y pe s of hy dr oc a r bons as c onv e nt i ona l di e se l and t he r e for e is su bje c t to
t he sa m e fu e l st a nda r ds as No. 2 di e se l or ULS D: CGS B 3.517 in Ca na da , AS TM D975 in t he Unit ed
S t a t e s and EN 590 in E u r ope 11. S i nc e HDRD is a fu e l t ha t is fu lly fu ngi ble wi t h ULS D, i nfr a st r u c t u r e
11 S ou r c e : Hoe km a n, S. K., Ge r t le r , A. W., Br oc h, A., a nd Robbi ns, C. (2009). Investigation of Biodistillates as Potential Blendstocks for
coRessources Consultants for Natural Resources Canada v
100%
U*J
B i o d i esel
1 4 7 1 1 5 6 4 6 3 5 2 7
So y b ean R ap eseed Pal m O i l Su n fl o w er Tal l o w Yel l o w Gr ease
r e qu i r e m e nt s for ble ndi ng HDRD wi t h ULS D a r e m i ni m a l and a r e m ost ly r e la t e d t o inv e nt or y
m a na ge m e nt 1213. No si gni fi c a nt v e hi c le e qu i pm e nt c om pa t i bi li t y i ssu e s ha v e bee n fou nd e i t he r 141516.
Fi gu r e II pr e se nt s t he gr e e nhou se ga s (GHG) e m i ssi ons be ne fi t s of bi odie se l and HDRD fr om di ffe r e nt
fe e dst oc ks, r e la t i v e t o fossi l di e se l (t he se a na ly se s di d not i nc lu de i ndi r e c t la nd u se c ha nge s). As c an be
se e n in t he fi gu r e , HDRD fr om t a llow has t he gr e a t e st GHG be ne fi t of all fe e dst oc k t y pe s. It shou ld be
note d t ha t t he r e a r e v e r y fe w st u di e s on t he GHG im pa c t s of HDRD r e la t i v e t o t he nu m be r of st u di e s
c a r r i e d ou t for bi odi e se l. As t he use of HDRD gr ows and m or e st u di e s a r e c a r r i e d out , a m or e a c c u r a t e
pi c t u r e of t he GHG be ne fi t s (or di s-be ne fi t s) a ssoc i a t e d wi t h t he use of HDRD r e la t i v e t o di e se l (or
bi odi e se l) wi ll de v e lop.
Figure II - GHG benefits for biodiesel and HDRD from different feedstocks, relative to diesel
Not e : The nu m be r s u nde r e a c h ba r i ndi c a t e t he nu m be r of st u di e s whose r e su lt s we r e a v e r a ge d t o pr odu c e t he da t a ba r.
S ou r c e : Hoe km a n, S. K., Br oc h, A., Robbi ns, C., Ce ni c e r os, E. (Coor di na t i ng Re se a r c h Cou nc i l - CRC, 2011). Inv e st i ga t i on
of Bi odi e se l Che m i st r y , Ca r bon Foot pr i nt a nd Re gi ona l Fu e l Qu a li t y . CRC Re por t No. AVFL-17a . Pu bli she d Fe br u a r y 2011.
Both t he Unit e d S t a t e s and Ca na da ha v e poli c i e s in pla c e t ha t su ppor t t he use of r e ne wa ble fu e ls. In
Ju ly 2011, t he gov e r nm e nt of Ca na da i m ple m e nt e d a por t i on of it s Renewable Fuels Regulations
r e qu i r i ng fu e l pr odu c e r s and i m por t e r s in Ca na da t o ble nd an a nnu a l a v e r a ge of 2% r e ne wa ble c ont e nt
Ma y 2010.
13 La m be r t , N. (c oRe ssou r c e s Consu lt a nt s, 2012). An Update on Renewable Diesel Infrastructure in Canada. Fi na l r e por t su bm i t t e d
Ma r c h 12, 2012, not y e t m a de pu bli c .
14 Ri le tt , J., Ga gnon, A., (Cli m a t e Cha nge Ce nt r a l, 2008). Renewable Diesel Characterization Study. Pu bli she d Au gu st 2008.
15 Cli m a t e Cha nge Ce nt r a l (2009). Alberta Renewable Diesel Demonstration. Pu bli she d Fe br u a r y 2009.
16 Ne st e Oi l (2009). Pilot test shows: Less C02 emissions with new diesel from renewable energy sources. Pr e ss r e le a se , pu bli she d Ju ne
9, 2009.
coRessources Consultants for Natural Resources Canada vi
into t he i r di e se l and he a t i ng oil fu e l pool. Thi s c or r e sponds t o a bou t 400 m i lli on lit r e s in 2012 (not
inc lu di ng Qu e be c , t he Te r r i t or i e s and t he At la nt i c Pr ov i nc e s17). Thi s inc r e a se s wi t h de m a nd to
a ppr ox i m a t e ly 900 m i lli on li t r e s in 20351819. Assu m i ng an a v e r a ge HDRD pr odu c t i on y i e ld of 80% by
m a ss (75% for wi nt e r HDRD, 85% for su m m e r HDRD)20, i t wou ld r e qu i r e a ppr ox i m a t e ly 390,000 t onne s
of fe e dst oc k in or de r t o pr odu c e 400 m i lli on li t r e s (312,000 t onne s) of HDRD. The pr odu c t i on y ie ld doe s
not v a r y si gni fi c a nt ly by fe e dst oc k t y pe 21. For t he pu r pose s of c om pa r i son, t ot a l pr odu c t i on of c a nola and
soy be a n oil in t he 2010/2011 c r op y e a r in Ca na da wa s 2.7 m i lli on t onne s and 270,000 tonne s,
r e spe c t i v e ly 22, and a bou t 400,000 t onne s of t a llow is pr odu c e d a nnu a lly 23.
E ac h Nov e m be r , t he Uni te d S t a t e s E nv i r onm e nt a l Pr ot e c t i on Age nc y (E PA) se t s t he st a nda r ds for t he
re qu i r e d v olu m e s of di ffe r e nt t y pe s of bi ofu e ls for t he followi ng ye ar, u nde r t he RFS2. In 2012, 4.5 bi llion
li t r e s of HDRD c ou ld be use d t o m e e t t he r e qu i r e m e nt s of t he a dv a nc e d bi ofu e ls c a t e gor y of the
RFS 224252627. Usi ng t he sa m e a v e r a ge HDRD pr odu c t i on y i e ld of 80%, 4.5 bi lli on li t r e s of HDRD would
r e qu i r e a ppr ox i m a t e ly 4.78 m i lli on t onne s of fe e dst oc k. E x i st ing and pla nne d HDRD pr odu c t i on in the
Uni t e d S t a t e s m a ke s use of t a llow as t he fe e dst oc k, a lt hou gh t he se pla nt s c ou ld also use soy be a n oi l as
a fe e dst oc k. In 2010, 815,000 t onne s of r e nde r e d t a llow and 8.6 m i lli on t onne s of soy be a n oi l we r e
pr odu c e d in t he US.
Ta ble s II and III be low su m m a r i ze e x i st i ng and pr opose d c a pa c i t y for pr odu c t i on of HDRD wor ldwi de in
both st a nd-a lone and c o-pr oc e ssi ng fa c i li t i e s. As c an be se e n in t he t a ble s, c u r r e nt globa l c a pa c i t y is a t
2.8 billion li t r e s pe r y e a r (2,525 ML/y r for st a nd-a lone fa c i li t i e s and 300 ML/y r for c o-pr oc e ssi ng), whi c h
will i nc r e a se t o 3.3 bi lli on li t r e s pe r y e a r whe n t he Va le r o/Da r li ng pla nt c om e s onli ne a t t he e nd of 2012.
The m a jor i t y of t hi s c a pa c i t y e x i st s ou t si de of North Am e r i c a . Inc lu di ng t he Va le r o/Da r li ng pla nt, by the
e nd of 2012 t ot a l Nort h Am e r i c a n c a pa c i t y will be 800 m i lli on li t r e s pe r year.
17 The Te r r i t or i e s a nd Ne wfou ndla nd a nd La br a dor a r e pe r m a ne nt ly e x e m pt e d fr om t he Re gu la t i ons. Qu e be c a nd t he r e m a i ni ng At la nt i c
pr ov i nc e s a r e t e m por a r i ly e x e m pt e d u nt i l De c e m be r 31, 2012.
18 For a fu ll e x pla na t i on of how pr e di c t e d de m a nd v olu m e s ha v e be e n c a lc u la t e d, se e S e c t i on 3.3.1 of: c oRe ssou r c e s Consu lt a nt s (2010).
Updating the cost-benefit analysis of the proposed 2% renewable fuels regulation.
19 Na t u r a l Re sou r c e s Ca na da (NRCa n, 2006) Canadas Energy Outlook: The Reference Case.
20 Pe r sona l c om m u ni c a t i ons.
22 Ca na di a n Oi lse e d Pr oc e ssor s Assoc i a t i on (COPA, 2012). CORA Monthly: December 2011/January 2012.
23 Asi a -Pa c i fi c E c onom i c Co-ope r a t i on (APE C, 2012). APEC Biofuels - Canada Biofuels Activities. We bsi t e c onsu lt e d Fe br u a r y 12, 2012.
ht t p://www.bi ofu e ls.a pe c .or a /m e c a na da .ht m l
24 In 2012, t he RFS 2 r e qu i r e m e nt for a dv a nc e d bi ofu e ls is 7.6 bi lli on li t r e s (2 bi lli on ga llons, se e not e 25). FIDRD ha s a n e ne r gy e qu i v a le nc e
v a lu e of 1.7 a s a c c or de d by t he E PA (se e not e 26) so only 4.5 bi lli on li t r e s of FIDRD wou ld be r e qu i r e d t o m e e t t he 7.6 bi lli on li tr e
r e qu i r e m e nt .
25 Uni t e d S t a t e s E nv i r onm e nt a l Pr ot e c t i on Age nc y (US E PA, 2011). Regulatory Announcement: EPA Finalizes 2012 Renewable Fuel
Standards. E PA-420-F-11-044, pu bli she d De c e m be r 2011.
26 Uni t e d S t a t e s E nv i r onm e nt a l Pr ot e c t i on Age nc y (US E PA, 2010). Regulation of Fuels and Fuel Additives: Changes to Renewable Fuel
Standard Program. [E PA-HQ-QAR-2005-0161; FRL-9112-3] Pu bli she d in t he Fe de r a l Re gi st e r , Vol. 75, No. 58, Ma r c h 26, 2010.
27 It shou ld be not e d t ha t Unde r RFS 2, e a c h of t he fou r ne w fu e l c a t e gor i e s m u st m e e t GFIG e m i ssi on r e du c t i on c r i t e r i a , r e la t i v e t o 2005
le v e ls for pe t r ole u m fu e ls: a m i ni m u m of 20% r e du c t i on for Ty pe R fu e ls in ge ne r a l, 50% r e du c t i on for Ty pe s A a nd B a nd 60% r e du c t i on
for Ty pe C.
coRessources Consultants for Natural Resources Canada vii
Table II - Summary existing and proposed commercial-scale HDRD stand-alone plants*
C o m p an y Lo c ati o n o f
fac i l i ty
Statu s Star t d ate C ap i tal
c o sts
(U SD )
Pr i n c i p al
feed sto c ks
used
C ap ac i ty
(M L/y r )
So u r c e
Ne st e Oil Por v oo,
Fi nla nd
Ope r a t i ona l 2007 $130
m i lli on
Pa lm oil
Ani m a l fa t s
Ra pe se e d oil
215
[1]
Fi nla nd
m i lli on
Pa lm oil
Ani m a l fa t s
Ra pe se e d oil
215
[1]
Ne st e Oil Tu a s,
S i nga por e
m i lli on
Pa lm oil 906
[2]
Ne st e Oil Rot t e r da m ,
Ne t he r la nds
Ope r a t i ona l 2010 $1 bi lli on Pa lm oil
Ani m a l fa t s
Ra pe se e d oil
906
[3]
Dy na m i c Fu e ls
(S y nt r ole u m
a nd Ty son
Foods joi nt
v e nt u r e )
Ge i sm a r ,
Lou i si a na
m i lli on
Ani m a l fa t s
S oy be a n oil
283
[4]
TO TA L E XISTIN G C A PA C ITY 2 , 5 2 5 M L/ yr
Va le r o a nd
Da r li ng joi nt
v e nt u r e
Nor c o,
Lou i si a na
Unde r
c onst r u c t i on
E st i m a t e d
st a r t da t e :
0 4 2012
$330
m i lli on
Ani m a l fa t s
S oy be a n oil
509
[5]
TO TA L E XISTIN G + F U TU R E C A PA C ITY (F IR M ) 3 , 0 3 4 M L/ yr
UPM bi ofu e ls La ppe e nr a nt a ,
Fi nla nd
Const r u c t i on
be gi ns
su m m e r
2012
E st i m a t e d
st a r t da t e :
2014
$200
m i lli on
Ta ll oil (pi ne ) 117
[6]
TO TA L E XISTIN G + F U TU R E C A PA C ITY (PO SSIB LE ) 3, 151 M L/y r
*Thi s is a li st of known pla nt s a nd is not e x ha u st i v e .
1S c hi ll, S. R. (2007). Heeding Hydrogenation. Bi odi e se l Ma ga zi ne , pu bli she d onli ne Ma r c h 15, 2007.
2Ne st Oil (2011). Neste Oil celebrates the grand opening o f its ISCC-certified renewable diesel plant in Singapore. Pr e ss
r e le a se , 8 Ma r c h 2011.
3Gr e e n Ca r Congr e ss (2008). Neste Oil to Build $1B NExBTL Renewable Diesel Plant in Rotterdam. Pu bli she d onli ne 13
Ju ne , 2008.
4S y nt r ole u m (2011). Syntroleum Announces Third Quarter Results and October Production Update. Pr e ss r e le a se , pu bli she d
Nov e m be r s, 2011.
5S t u c ke y , M. (2011). Valero begins construction o f $330 million renewable diesel plant in Norco. Pu bli she d in S t Cha r le s
He r a ld Gu i de , Oc t obe r 6, 2011.
6UPM(2012). UPM to build the worlds first biorefinery producing wood-based biodiesel. Pr e ssr e le a se , 1 Fe br u a r y , 2012.
coRessources Consultants for Natural Resources Canada viii
Table III - Existing and proposed commercial-scale HDRD co-processing facilities*
C o m p an y Lo c ati o n of
fac i l i ty
Statu s C o
p r o c essi n g
m ax%
Pr i n c i p al
feed sto c ks
used
C ap ac i ty
(M L/y r )
So u r c e
Conoc oPhi lli ps Cor k, Ir e la nd Ope r a t i ona l Unknown S oy be a n oil
Ani m a l fa t s
57
[1]
CE PS A Alge c i r a s,
S pa i n
Ope r a t i ona l 5% Ve ge t a ble
oil
90
[2]
Pr e e m
Pe t r ole u m
Gdt e bor g,
S we de n
Ope r a t i ona l 30% Ta ll oil 153
[2]
TO TA L E XISTIN G C O -PR O C E SSIN G C A PA C ITY 3 0 0 M L/y r
E ni (UOP
li c e nse )
Li v or no, It a ly Te c hnology
li c e nse d,
c onst r u c t i on
not y e t
be gu n
Unknown S oy be a n oil 368
[3]
Ga lp E ne r gi a S i ne s,
Por t u ga l
Te c hnology
li c e nse d,
c onst r u c t i on
not y e t
be gu n
Unknown S oy be a n oil 368
[3]
Undi sc lose d
r e fi ne r
Au st r a li a Unknown 5% Ani m a l fa t 25
[2]
Undi sc lose d
r e fi ne r
Ca li for ni a ,
US A
Unknown 10% Ta llow 23
[2]
Undi sc lose d
r e fi ne r
E u r ope Unknown 5% Ani m a l fa t 62
[2]
Undi sc lose d
r e fi ne r
Te x a s, US A Unknown 5% Ve ge t a ble
oi l
180
[2]
TO TA L E XISTIN G A N D PR O PO SE D C O -PR O C E SSIN G C A PA C ITY 1 , 3 2 6 M L/y r
1Conoc oPhi lli ps (2006). ConocoPhillips Begins Production o f Renewable Diesel Fuel at Whitegate Refinery in Cork, Ireland.
Pr e ss r e le a se , pu bli she d De c e m be r 19, 2006.
2Pe r sona l Com m u ni c a t i ons.
3Ar gonne Na t i ona l La bor a t or y (2008). Life-Cycle Assessment o f Energy and Greenhouse Gas Effects o f Soybean-Derived
Biodiesel and Renewable Fuels. Pu bli she d Ma r c h 12, 2008.
In t e r m s of t he Ca na di a n c ont e x t , ju st one Por v oo-si ze d pla nt (215 ML/y r ) wou ld be a ble t o a c c ou nt for
30% of Ca na da s r e qu i r e m e nt for r e ne wa ble a lt e r na t i v e s t o di e se l and he a t i ng oil fr om 2013 onwa r ds.
Addi ng a not he r pla nt of t he sa m e si ze wou ld a c c ou nt for 48% of t he pr oje c t e d r e qu i r e m e nt s in 2035. 215
ML/y r is c onsi de r e d a bou t t he m i ni m u m c a pa c i t y for whi c h a st a nd-a lone ne w HDRD pr odu c t i on fa c i li t y
coRessources Consultants for Natural Resources Canada ix
c ou ld be c onsi de r e d pr ofi t a ble 28. Alt e r na t i v e ly , a Rot t e r da m -si ze d pla nt (906 ML/y r ) wou ld pr ov i de 30%
m or e t ha n t he t ot a l Ca na di a n fe de r a l r e qu i r e m e nt s in t he shor t t erm , a llowi ng for pot e nt i a l e x por t s t o the
US, and in 2035 wou ld a c c ou nt for 100% of t he pr oje c t e d r e qu i r e m e nt s.
It wou ld m a ke se nse for a st a nd-a lone pla nt t o be loc a t e d c lose t o e x i st i ng r e fi ne r y i nfr a st r u c t u r e , for
i nst a nc e in E dm ont on or S ar nia .
Ta ble II a lso pr e se nt s t he c a pi t a l c ost s (in US D) e x pe nde d for e a c h of t he fa c i li t i e s. Ba se d on t he si x
e x i st i ng c om m e r c i a l pla nt s and t wo hy pot he t i c a l pla nt s ($36 - $42 m i lli on for a 500 bar r el pe r da y (bpd)
pla nt and $75 - $85 m i llion for a 2,500 bpd pla nt 29), t he u ni t c a pi t a l c ost is high for v e r y sm a ll and v e r y
la r ge pla nt s $45,000 - $85,000 pe r bpd c a pa c i t y ), bu t a ppr ox i m a t e ly t he sa m e for t he r e st ($30,000 -
$40,000 pe r bpd c a pa c i t y ). In c ont r a st , t he a v e r a ge c a pi t a l c ost s for a pe t r ole u m r e fi ne r y a r e $15,000 -
$20,000 pe r bpd c a pa c i t y 30. Ty pi c a l pe t r ole u m r e fi ne r i e s c a n ha v e c a pa c i t i e s in t he t e ns t o hu ndr e ds of
t hou sa nds of bpd. For a bi odi e se l pla nt t he c a pi t a l c ost s are $20,000 - $30,000 pe r bpd c a pa c i t y for pla nt
si ze s a r ou nd 2,000 bpd, whi c h is c onsi de r e d la r ge (i.e. a r ou nd 114 m i lli on li t r e s/y e a r )31.
Ope r a t i ng c ost s a t an HDRD pr odu c t i on fa c i li t y i nc lu de : r e ne wa ble fe e dst oc k, hy dr oge n, e ne r gy
inpu t /u t i li t y , wa t e r , c a t a ly st s, c he m i c a ls, m a na ge m e nt and e m ploy e e and a dm i ni st r a t i v e c ost s. Ope r a t i ng
c ost s are m u c h m or e di ffi c u lt t o pr e di c t, be c a u se fe e dst oc k, hy dr oge n and u t ili t y pric es, t he la r ge st
c om pone nt s of pr odu c t i on c ost s, c an v a r y wi de ly de pe ndi ng on local, na t i ona l and i nt e r na t i ona l m a r ke t
c ondi t i ons. Fe e dst oc k c ost s m a ke up a ppr ox i m a t e ly 80% of ope r a t i ng e x pe nse s and hy dr oge n and
u t i li t i e s m a ke up a ppr ox i m a t e ly 15%32. Gi v e n t he i m por t a nt role t ha t fe e dst oc k pla y s in de t e r m i ni ng
pr odu c t i on c ost s, c ha nge s in fe e dst oc k pr i c e s c an m a ke or br e a k t he pr ofi t a bi li t y of an HDRD ope r a t i on.
Thi s is a lso why i t is a dv a nt a ge ou s t o di v e r si fy fe e dst oc k su pply in or de r t o be a ble t o a da pt t o c ha ngi ng
fe e dst oc k pric es.
Fi gu r e III plot s US bi ofu e l fe e dst oc k pr i c e s fr om 1995 - 2010, as c om pa r e d wi t h r e gu la r No. 2 die sel
whole sa le pr i c e s33. As c a n be se e n, a si de fr om ba king and fr y i ng fa ts, r e ne wa ble fe e dst oc k pr i c e s had a
ge ne r a lly i nv e r se r e la t i onshi p r e la t i v e t o die se l oi l pr i c e s fr om 1995-2005. As of 2005, r e ne wa ble
fe e dst oc k pr i c e s bega n m or e or le ss t o follow oil pri c es, a lt hou gh t hi s t r e nd is not e x pe c t e d t o c ont i nu e
i nde fi ni t e ly (see Fi gu r e IV). Inst a lli ng or a da pt i ng r e fi ne r y infr a st r u c t u r e in or de r t o be a ble to
a c c om m oda t e t he pr odu c t i on or c o-fe e di ng of HDRD fr om a v a r i e t y of di ffe r e nt fe e dst oc ks c ou ld be seen
as a he dge for whe n oil pr i c e s are high r e la t i v e t o r e ne wa ble fe e dst oc k pri c es.
28 Pe r sona l c om m u ni c a t i ons. (Not e : du e t o t he pot e nt i a lly c om m e r c i a lly se nsi t i v e na t u r e of som e of t he i nfor m a t i on pr ov i de d in t hi s r e por t ,
som e i ndu st r y st a ke holde r s t ha t pr ov i de d i nfor m a t i on pr e fe r r e d t o r e m a i n a nony m ou s. In t he se c a se s, u nfor t u na t e ly t he i ndi v i du a l who
pr ov i de d t he i nfor m a t i on a nd/or t he c om pa ny t he y r e pr e se nt c a nnot be gi v e n.)
30 Uni t e d S t a t e s E ne r gy Infor m a t i on Adm i ni st r a t i on (E IA, 2006). Annual Energy Outlook 2006. DOE /E IA-0383, 57-58.
31 Uni t e d S t a t e s De pa r t m e nt of Agr i c u lt u r e (US DA) a nd Iowa S t a t e Uni v e r si t y (2012). Biodiesel Profitability. E x c e l m ode l, la st u pda t e d
Ja nu a r y 10, 2012.
33 It is i m por t a nt t o r e m e m be r t ha t t he e qu i v a le nt fossi l fe e dst oc k t o v e ge t a ble oi ls a nd r e nde r e d fa t s i s r e gu la r (not -
de su lfu r i se d) di e se l oil, not c r u de oil.
St
- c
f c -
coRessources Consultants for Natural Resources Canada x
/G
60
30
20
10
1995 2000 2005 2010
-soy oi l
a n o l i a oi l
t a l l o w
l a r d
ba ki ng a nd
Ty i ng fa t s
r e gu l a r
di e se l
Figure III - US biofuel feedstock and regular diesel prices
S ou r c e s: Uni t e d S t a t e s De pa r t m e nt of Agr i c u lt u r e (US DA, 2011). Oil Crops Yearbook2011. Upda t e d Ma r c h 2011.
Uni t e d S t a t e s E ne r gy Infor m a t i on Adm i ni st r a t i on (E IA, 2011). No.2 Distillate Prices by Sales Type. Re le a se da t e : Nov e m be r
1, 2011.
In 2011, Ne st e Oil e st i m a t e d t ha t pr odu c t i on c ost s for NE x BTL
13301039
; fe e dst oc k c ost s) are
a ppr ox i m a t e ly USD 220/t onne 34. In 2009, Ne st e Oil e st i m a t e d t ha t t he ne t c a sh m a r gi n for Ju ly 2008 -
Ju ne 2009 wa s a bou t USD 225/t onne 35. Fe e dst oc k pr i c e s do not ne c e ssa r i ly a ffe c t m a r gi ns be c a u se
HDRD is t y pi c a lly pr i c e d r e la t i v e t o bi odi e se l pri c es. The a v e r a ge pr e m i u m of NE x BTL r e la t i v e to
bi odie se l in 2007 wa s 17 US c e nt s/L for pr odu c t sold in E u r ope 36, in 2008-2009 i t wa s a bou t 21 US
c e nt s/L for pr odu c t sold in E u r ope 37 and in 2010 i t wa s a bou t 30 US c e nt s/L for pr odu c t sold in Ca na da 38.
As de m a nd for HDRD grows, pr odu c e r s c an c ha r ge a hi ghe r pr e m i u m .
It shou ld be note d t ha t in t he Uni t ed S ta t e s, HDRD pr i c e s are gov e r ne d pr i m a r i ly by t he RIN m a r ke t.
S i nc e HDRD ge ne r a t e s 1.7 RINs pe r ga llon whi le bi odi e se l only ge ne r a t e s 1.5 RINs (due t o e ne r gy
e qu i v a le nc e fa c t or s), i f bi odi e se l pr i c e s i nc r e a se , t he pr i c e di ffe r e nt i a l be t we e n HDRD and bi odi e se l will
a c t u a lly i nc r e a se r a t he r t ha n de c r e a se . Conv e r se ly , i f pr odu c t i on of bi odie se l a nd/or HDRD i nc r e a se s,
34 S ou r c e : Le hm u s, Ma t t i (Ne st e Oi l, 2011). Renewable Fuels - Driving Growth and Profitability. Pr e se nt a t i on a t Ne st e Oi l Ca pi t a l Ma r ke t s
Da y , 21 S e pt e m be r 2011.
35 S ou r c e : Honka m a a , J., 2009. Delivering Future Growth. Pr e se nt a t i on a t Ne st e Oi l Ca pi t a l Ma r ke t s Day , 29 S e pt e m be r , 2009.
36 Honka m a a , J. (Ne st e Oi l, 2007). Biodiesel. Pr e se nt a t i on a t Ne st e Oi l Ana ly st Da y , Nov e m be r 2, 2007.
37 Honka m a a , J. (Ne st e Oi l, 2009). Delivering Future Growth. Pr e se nt a t i on a t Ne st e Oi l Ca pi t a l Ma r ke t s Da y , S e pt e m be r 29, 2009.
38 The v a lu e of US 30 c e nt s/L wa s c a lc u la t e d a s CAD 35 c e nt s/L m i nu s a CAD 5 c e nt s/L t r a nspor t a t i on c ost (CAD wa s a t pa r i t y wi t h US D in
2010) fr om : c oRe ssou r c e s Consu lt a nt s (2010). Updating the cost-benefit analysis of the proposed 2% renewable fuels regulation.
C en ts per gallon
500 1
400
300
D iesel fu el (c ents p er gallon)
200
So y b ean oil pr ic e (c ents p er gallon)
100
Sp r ead b etw een d i esel pr ic e
an d so y b ean oil pr ic e
-100
-2OOJ2OH 2012 2013 2014 2015 2016 2017 2018 2019 2020
coRessources Consultants for Natural Resources Canada xi
i nc r e a si ng t he ov e r a ll su pply of Ty pe B fu e ls, D4 RIN pr i c e s wi ll de c r e a se and t he pr ic e di ffe r e nt i a l
be t we e n bi odi e se l and HDRD will a lso de c r e a se 39.
A r e c e nt 201240 st u dy by c oRe ssou r c e s fou nd t ha t in t he shor t -t e r m (i.e. a t c u r r e nt HDRD pr ic e s), 48%
of t he fe de r a l r e qu i r e m e nt for r e ne wa ble a lt e r na t i v e s t o di e se l and he a t i ng oi l a r e e x pe c t e d t o be m e t wit h
HDRD. For r e fi ne r s pr odu c i ng t he i r own HDRD, t he i nfr a st r u c t u r e , e ne r gy c ont e nt and c lou d poi nt
a ddi t i v e sa v i ngs are t he sa m e , bu t t he y are a ble t o sa v e on t he HDRD pr ic e pr e m i u m 41 r e la t i v e to
bi odi e se l, e i t he r in t he i r own u se or in sa le s t o ot he r c u st om e r s. Thi s a dv a nt a ge c a n c om pe nsa t e for t he
high c a pi t a l e x pe ndi t u r e s.
In t he long-t e r m , a r e fi ne r s i nt e r e st in ble ndi ng wi t h HDRD m a y not only be in or de r t o m e e t fe de r a l
re gu la t i ons. Whe n oil pr i c e s ri se, i t c a n be c om e m or e e c onom i c a l t o pr odu c e die se l fr om r e ne wa ble
fe e st oc ks t ha n fr om c r u de oil. Of c ou r se , t hi s a ssu m e s t ha t r e ne wa ble fe e dst oc k pr i c e s do not i nc r e a se
a t t he sa m e rate. Ac c or di ng t o pr oje c t i ons by t he US E IA and t he US DA, a v e r a ge r e gu la r di e se l pr ic e s
ar e e x pe c t e d t o re a c h pa r i t y wi t h a v e r a ge soy be a n oil pr i c e s in 2017, a ft e r whi c h di e se l pr i c e s are
e x pe c t e d t o c ont i nu e t o gr ow r e la t i v e t o soy be a n oil pr i c e s (see Fi gu r e IV)42.
Figure IV - Projected US soybean oil and regular diesel prices, 2011 - 20 2 0
S ou r c e : Mc Pha i l, L , We st c ot t , P. a nd Lu t m a n, H. (US DA, 2011). The Renewable Identification Number System and U.S.
Biofuel Mandates. Pu bli she d by t he US DA E c onom i c Re se a r c h S e r v i c e , Nov e m be r 2011. Or i gi na l da t a fr om E IA, 2011.
2010 Annual Energy Outlook a nd US DA, 2011. Agricultural Projections to 2020.
41 Cu r r e nt ly , HDRD is pr i c e d r e la t i v e t o bi odi e se l pr i c e s plu s a pr e m i u m for hi ghe r de nsi t y /e ne r gy c ont e nt , c e t a ne , c old flow pr ope r t i e s a nd
br a ndi ng v a lu e .
42 Mc Pha i l, L, We st c ot t , P. a nd Lu t m a n, H. (US DA, 2011). The Renewable Identification Number System and U.S. Biofuel Mandates.
Pu bli she d by t he US DA E c onom i c Re se a r c h S e r v i c e , Nov e m be r 2011. Or i gi na l da t a fr om EIA, 2011. 2010 Annual Energy Outlook and
US DA, 2011. Agricultural Projections to 2020.
coRessources Consultants for Natural Resources Canada /
Ta ble of Cont e nt s
1. IN TR O D U C TIO N ...................................................................................................................................................................................... 3
2. HISTO R IC A L B A C K GR O U N D .............................................................................................................................................................. 5
3. HD RD PR O D U C TIO N ............................................................................................................................................................................. 7
3.1 Fe e d s t o c k s ................................................................................................................................................................................................................7
3.2 Production pathw ays......................................................................................................................................................................................... 12
3.3 Capital and operating HDRD production c o s t s .................................................................................................................................. 21
3.3.1 Stand-alone plants....................................................................................................................................................................... 21
3.3.2 Co-processing............................................................................................................................................................................... 27
3.4 GHG IMPACTS OF HDRD PRODUCTION...................................................................................................................................................... 28
4. F U E L PR O PE R TIE S...............................................................................................................................................................................35
5. F U E L STA N D A R D S................................................................................................................................................................................37
6. IN F R A STR U C TU R E A N D E QU IPM E N T C O M PA TIB ILITY...........................................................................................................41
6.1 Infrastructure c o m pat i bi l i t y.........................................................................................................................................................................41
6.2 Equipment c o m pat i bi l i t y....................................................................................................................................................................................42
6.3 Refiner experiences with HDRD....................................................................................................................................................................43
7. HD RD M A R K E TS................................................................................................................................................................................... 44
7.1 Regulations, policies and i n c en ti ve s ......................................................................................................................................................... 44
7.1.1 International policies................................................................................................................................................................... 44
7.1.2 North American policies............................................................................................................................................................. 45
7.2 Potential HDRD markets in North A merica due to r e g u l a t i o n s ..................................................................................................49
7.3 Existing and potential HDRD production capacity in North A m eri ca....................................................................................... 51
7.4 HDRD PRICE S ............................................................................................................................................................................................................ 57
7.5 Feedstock av ai lab ili t y........................................................................................................................................................................................60
8. O THE R N E XT-GE N E R A TIO N R E N E WA B LE A LTE R N A TIVE S TO D IE SE L.............................................................................63
9. C O N C LU SIO N S A N D F U TU R E PE R SPE C TIVE S.......................................................................................................................... 65
coRessources Consultants for Natural Resources Canada
Li st of Ta ble s
Table I - Properties of ULSD, BIODIESEL and HDRD (renewable diesel) .................................................................................................i v
Table II - S ummary existing and proposed commercial- scale HDRD stand-alone plants* ..............................................................vii
Table III - Existing and proposed commercial-scale HDRD co- processing facilities* ..................................................................... vm
Table 1 - V egetable oil feedstocks used for biodiesel and HDRD production in North A m er i c a ................................................ 9
Table 2 - Comparison of biodiesel and renewable diesel production technologies.......................................................................... 12
Table 3 - Capital costs of commercial HDRD production facilities...........................................................................................................22
Table 4 - Estimated NEx BTL production margin for 2009 and 2010............................................................................................................27
Table 5 - Estimated NEx BTL production margin J uly 2008 - J une 2 0 0 9 .................................................................................................... 27
Table 6 - W ell-t o-tank energy intensity for NEx BTL and diesel ................................................................................................................. 29
Table 7 - Emission reduction factors for HDRD and biodiesel relative to ULSD...............................................................................34
Table 8 - Properties of ULSD, biodiesel and HDRD ( renewable diesel) ................................................................................................... 35
TA B LE 9 - C GSB , A STM AND C E N STANDARDS FOR N o . 2 DIESEL AND B 1 0 0 ......................................................................................................3 9
Table 10 - M andates in European countries for the use of renewable alternatives to d i e s e l ...................................................44
Table 11 - M andates in Asi an, Central and South A merican and Caribbean countries for the use of renewable
ALTERNATIVES TO D IE SE L............................................................................................................................................................................................. 4 5
Table 1 2 - S ome Federal and Provincial Renewable Fuels Regulations................................................................................................ 47
Table 13 - ecoENERGY incentive rates* for renewable alternatives to diesel ($/L)....................................................................... 48
Table 14 - Renewable Fuel V olume Requirements Under RFS2 (billion gallons) * ............................................................................ 50
Table 15 - Projected diesel and heating oil demand volumes and requirements for renewable alternatives to diesel
UNDER THE CANADIAN RE NEWABLE FUELS REGULATIONS ( M L ) * ................................................................................................................... 5 1
Table 16 - S ummary existing and proposed commercial-scale HDRD stand-alone plants* .......................................................... 53
Table 17 - Existing and proposed HDRD co- processing facilities* ............................................................................................................. 54
Table 18 - Refineries in Canada : Location, type and production capacities, 2 0 0 8 ...............................................................................56
Table 19 - S upply and disposition of canola oil and soybean oil in Canada........................................................................................... 61
Table 20 - Biofuel feedstock yi e lds............................................................................................................................................................................ 62
Li st of Fi gu r e s
Figure I - Biodiesel and HDRD feedstocks, production pathways and pr o d u c ts................................................................................... n
Figure II - GHG benefits for biodiesel and HDRD from different feedstocks, relative to di es el ................................................ v
Figure III - US biofuel feedstock and regular diesel prices..............................................................................................................................x
Figure IV - Projected US soybean oil and regular diesel prices, 2 0 1 1 - 2 0 2 0 ...................................................................................... xi
Figure 1 - Example of a t r i gl yc e r i d e ..............................................................................................................................................................................7
Figure 2 - Renewable fuel production by feedstock t y p e ............................................................................................................................... 11
Figure 3 - B iodiesel and HDRD feedstocks, production pathways and p r o d u c t s............................................................................... 12
Figure 4 - Biodiesel production via transesterfication of t riglycerides............................................................................................... 13
Figure 5 - HDO and decarboxylation of rapeseed o i l ........................................................................................................................................ 15
Figure 6 - C hanges in temperature and hydrogen consumption in a hydrotreater co- feeding with tall o i l ........................ 19
Figure 7 - I ntegration of a stand-alone HDRD plant at a petroleum r e f i n e r y....................................................................................21
Figure 8 - Capital costs as a function of capacity - small-, medium- and large- scale HDRD p l a n t s ...................................... 23
Figure 9 - U nit capital costs as a function of HDRD production c a p a c i t y.............................................................................................24
Figure 10 - Neste oil feedstock diversification strategy................................................................................................................................ 24
Figure 11 - P rice differential between European rapeseed oil and Malaysian palm oil (including freight to Europe). 25
Figure 12 - US biofuel feedstock and regular diesel prices..........................................................................................................................26
Figure 13 - P rice differential between US biofuel feedstocks and regular d i e s e l ..........................................................................26
Figure 14 - Carbon intensity of biodiesel and renewable diesel from soybean o i l ............................................................................ 30
Figure 15 - LCA of HDRD from soy using different co- product allocation m e t h o d s ......................................................................32
Figure 1 6 - G W P benefits for biodiesel and HDRD from different feedstocks, relative to diesel........................................... 33
Figure 17 - GWP benefit for HDRD and biodiesel from different f e e d s t o c k s ..................................................................................... 33
Figure 1 8 - N E xB TL prices relative to biodiesel prices, 2008 - 2 0 0 9 ......................................................................................................... 57
Figure 1 9 - N E xB TL value for use under biofuel mandates............................................................................................................................ 58
Figure 20 - P rojected US soybean oil and regular diesel prices, 2011 - 2 0 20..................................................................................... 59
coRessources Consultants for Natural Resources Canada 3
1. Int r odu c t i on
Re pu bli c .
In E u r ope, t he E u r ope a n Com m i ssi on Di r e c t or a t e Ge ne r a l for E ne r gy im ple m e nt e d t he Re ne wa ble
E ne r gy Di r e c t i v e , whi c h st i pu la t e s t ha t EU Me m be r S t a t e s m u st e nsu r e t ha t 10% of e ne r gy c onsu m pt i on
in t r a nspor t is fr om r e ne wa ble sou r c e s.
Unde r t he Re ne wa ble Fu e ls S t a nda r d, t he Uni t e d S t a t e s r e qu i r e s t ha t 3.8 billion li t r e s of bi om a ss-ba se d
di e se l (such as bi odi e se l and HDRD) be used in 2012 and t hi s v olu m e c an i nc r e a se a nnu a lly in fu t u r e
ru lings. Fou r st a t e s ha v e i nde pe nde nt ly i m ple m e nt e d m i ni m u m r e qu i r e m e nt s for r e ne wa ble a lt e r na t i v e s
to diesel.
On Ju ne 29, 2011, t he gov e r nm e nt of Ca na da r e gi st e r e d r e gu la t i ons a m e ndi ng t he Renewable Fuels
Regulations whi c h we r e t he n pu bli she d on Ju ly 20, 201143. The se a m e ndm e nt s st a t e d t ha t t he c om i ng
i nt o for c e da t e of t he 2% r e qu i r e m e nt of r e ne wa ble c ont e nt in di e se l and he a t ing oi l wou ld be Ju ly 1st,
2011. Unde r t he Renewable Fuels Regulations, both e st e r -ba se d bi odi e se l and hy dr oge na t i on-de r i v e d
r e ne wa ble die se l (HDRD) a r e a dm i ssi ble as r e ne wa ble c ont e nt t ha t c an be used t o m e e t the
r e qu i r e m e nt s of t he Re gu la t ions.
Alt hou gh biodi e se l has been and c ont i nu e s t o be la r ge ly t he fu e l of c hoi c e t o m e e t m a nda t e s for
r e ne wa ble a lt e r na t i v e s t o di esel, t he r e has been i nc r e a si ng i nt e r e st by t he r e gu la t e d pa r t i e s globa lly wi t h
r e ga r ds t o t he use of HDRD in or de r t o m e e t t he r e qu i r e m e nt s. Cu r r e nt ly , HDRD is only pr odu c e d in
E ur ope, S ou t he a st Asi a and t he Uni te d S t a t e s4445.
The pu r pose of t hi s st u dy is t o e v a lu a t e t he pot e nt i a l for HDRD pr odu c t i on and use in Ca na da . Mor e
spe c i fi c a lly , t he obje c t i v e s of t hi s st u dy are to:
Pr ov i de an ov e r v i e w of t he hi st or y of HDRD de v e lopm e nt and c u r r e nt and pr opose d
pr odu c t i on pla nt c a pa c i t y ;
De sc r i be t he HDRD pr odu c t i on pr oc e ss, its c a pi t a l and ope r a t i ng c ost s, GHG e m i ssi on
im pa c t s and t he fe e dst oc ks used;
43 Ca na da Ga ze t t e (2011). Regulations amending the renewable fuels regulations. Pu bli she d Ju ly 20, 2011.
Ma y 2010.
De sc r i be HDRD fu e l pr ope r t i e s and t he v a r i ou s i nt e r na t i ona l st a nda r ds t ha t t he y are su bje c t
to;
Di sc u ss t he c om pa t i bi li t y of HDRD wi t h e x i st i ng pe t r ole u m fu e ls infr a st r u c t u r e and v e hi c le s;
Asse ss t he pot e nt i a l m a r ke t pe ne t r a t i on of HDRD in Nor th Am e r i c a (e spe c i a lly Ca na da ) and
ot he r m a r ke t fa c t or s su c h as e x i st i ng and pr opose d su pply and de m a nd for HDRD,
r e ne wa ble fu e ls r e gu la t i ons and i nc e nt i v e s and fu e l pri c es;
De sc r i be fu t u r e de v e lopm e nt s for ot he r ne x t -ge ne r a t i on r e ne wa ble a lt e r na t i v e s t o die sel.
2. Hi st or i c a l ba c kgr ou nd
The v e r y fi r st e ngi ne s and m ot or v e hi c le s of t he la t e 19th and e a r ly 20th c e nt u r y we r e in fa c t de si gne d to
run on bi ofu e ls su c h as v e ge t a ble oi ls and c or n e t ha nol. Howe v e r , du r i ng t he sa m e pe r i od, oil
e x plor a t i on wa s gr owi ng r a pi dly and soon pe t r ole u m -ba se d t r a nspor t a t i on fu e ls ov e r t ook v e ge t a ble -
ba se d fu e ls du e t o t he i r c he a p c ost and a v a i la bi li t y . Alt hou gh bi ofu e ls c ont i nu e d t o be used in nic he
a ppli c a t i ons t hr ou ghou t t he 20th c e nt u r y , i t wa s not unti l t he 1970s, followi ng t he oil c r i si s and fossi l fu el
pr i c e spike s, t ha t t he r e wa s an i nc r e a se in se r i ou s r e se a r c h into bi ofu e l pr odu c t i on t e c hnologi e s. Ye t
c ont r a r y t o t he fi r st di e se l e ngi ne s de si gne d a t t he t u r n of t he c e nt u r y , m ode r n-da y di e se l e ngi ne s had
been m odi fi e d t o r un on le ss v i sc ou s pe t r ole u m di e se l and c ou ld no longe r r un on pu r e v e ge t a ble oil due
to its hi ghe r v i sc osi t y . The r e for e , r e se a r c he r s bega n t o i nv e st i ga t e wi t h ne w i nt e r e st a pr oc e ss of
t r a nse st e r fi c a t i on of v e ge t a ble oi l t o pr odu c e le ss v i sc ou s fa t t y ac i d m e t hy l e st e r s (a lso r e fe r r e d t o as
bi odi e se l). Thi s pr oc e ss wa s fi r st di sc ov e r e d in 1937 bu t bega n t o be a ppli e d in e a r ne st in t he 1980s in
r e sponse t o e nv i r onm e nt a l c onc e r ns, a gr ic u lt u r a l su r plu se s and e ne r gy se c u r i t y . By t he late 1990s and
e a r ly 2000s, in or de r t o a c hi e v e e m i ssi ons r e du c t i on obje c t i v e s and t o su ppor t rur al and a gr i c u lt u r a l
bu sine sse s, i nc e nt i v e s for biodi e se l pr odu c t i on we r e pu t in pla c e in a nu m be r of di ffe r e nt c ou nt r i e s
wor ldwi de , r e su lt i ng in a dr a m a t i c i nc r e a se in globa l bi odi e se l pr odu c t i on. In 2010, globa l biodi e se l
pr odu c t i on r e a c he d 19 bi llion li tr es, up 12% fr om 2009464748.
As de m a nd for bi ofu e ls gr ew, t he need for gr e a t e r pr odu c t i on e ffi c i e nc y and highe r qu a li t y of t he fi na l
pr odu c t r e su lt e d in a gr owi ng i nt e r e st in pr odu c i ng bi ofu e ls using e x i st i ng r e fi ne r y t e c hnologi e s and
i nfr a st r u c t u r e . In a ddi ti on, as biodie se l wa s being used in gr e a t e r v olu m e s and in highe r ble nd
c onc e nt r a t i ons, som e i ssu e s re la t e d t o v e hi c le ope r a bi li t y we r e obse r v e d, m ost not a bly a t low
t e m pe r a t u r e s and high ble nd c onc e nt r a t i ons. The m ost i m por t a nt i ssu e is wa x and se di m e nt for m a t i on
t ha t c an bloc k fu e l di spe nse r s and v e hi c le fi lt e r s. The r e a r e a nu m be r of di ffe r e nt r e a sons for t hi s wa x
and se di m e nt for m a t i on t ha t de pe nd on t he bi odie se l fe e dst oc k and t he pr odu c t i on pr oc e ss49. The se wi ll
be de sc r i be d in m or e de t a il in S e c t i ons 3 and 4.
The c om bi na t i on of t he se fa c t or s led t o t he de v e lopm e nt of pr oc e sse s for t he c onv e r si on of a ni m a l fats,
v e ge t a ble oi ls and bi om a ss i nt o pa r a ffi ni c hy dr oc a r bons t ha t c ou ld m a ke use of e x i st i ng py r oly si s,
hy dr ot r e a t m e nt and c r a c ki ng t e c hnologi e s t ha t a lr e a dy e x i st in pe t r ole u m r e fi ne r i e s. The se se c ond-
ge ne r a t i on pr oc e sse s pr odu c e fu e ls t ha t are m a de up of pa r a ffi ns, t he sa m e t y pe s of m ole c u le s fou nd in
c onv e nt i ona l di esel. The se fu e ls are known c olle c t i v e ly as r e ne wa ble di e se l or gr e e n die sel. Cu r r e nt ly ,
all r e ne wa ble di e se l c om m e r c i a lly pr odu c e d t oda y is done v i a hy dr ot r e a t m e nt pr oc e sse s and is known as
hy dr oge na t i on-de r i v e d r e ne wa ble di e se l (HDRD). Howe v e r , ot he r pr oc e sse s of c onv e r t i ng r e ne wa ble
46 History of Biodiesel. Pa c i fi c Bi odi e se l we bsi t e . Consu lt e d Ja nu a r y 4, 2012.
ht t p://www.bi odi e se l.c om /i nde x .php/bi odi e se l/hi st or v of bi odi e se l fu e l
47 S c hm i dt , C. W. (2007). Biodiesel : Cultivating Alternative Fuels. E nv i r on. He a lt h Pe r spe c t . 115(2): A86-A91.
48 RE N21. (2011). Renewables 2011- G l o b a l Status Report. Pu bli she d Au gu st 2011.
49 Cha ndle r , John Sr. (2011). Flowability: A Complex Issue. Bi odi e se l m a ga zi ne . Pu bli she d onli ne Ja nu a r y 12, 2011.
fe e dst oc ks t o r e ne wa ble di e se l v i a di ffe r e nt pa t hwa y s a r e a lso be i ng a c t i v e ly r e se a r c he d and wi ll li ke ly be
c om m e r c i a li se d in t he m e di u m t e r m 50.
The Ca nm e t E NE RGY la bs a t Na t u r a l Re sou r c e s Ca na da we r e in fa c t one of t he fi r st t o de v e lop
t e c hnologi e s for t he hy dr ot r e a t m e nt of r e ne wa ble fe e dst oc ks t o HDRD, wi t h som e of t he fi r st pa t e nt s for
t he i r S UPE RCE TANE HDRD pr odu c t i on t e c hnology da t i ng t o t he e a r ly 1990s. Com m e r c i a li za t i on of
HDRD pr odu c t i on t e c hnologi e s bega n in t he e a r ly t o m i d- 2000s wi t h Ne st e Oi ls NE x BTL and UOPs
E c ofi ni ng t e c hnologi e s. The fi r st c om m e r c i a l-sc a le HDRD c o-pr oc e ssi ng pla nt c a m e onli ne in 2006 in
Cork, Ir eland, a t Conoc oPhi lli ps Whi t e ga t e r e fi ne r y , pr odu c i ng 57 ML/y e a r HDRD. Thi s wa s followe d
shor t ly in 2007 by t he st a r t u p of a 215 ML/y r st a nd-a lone HDRD fa c i li t y in Por v oo, Fi nland, u nde r the
ope r a t i on of Ne st e Oil. A se c ond pla nt of t he sa m e c a pa c i t y wa s bu i lt by Ne st e in Por v oo in 2009. The
fi r st North Am e r i c a n fa c i li t y c a m e onli ne in 2010 in Ge i sm a r , Lou i si a na as a joi nt pa r t ne r shi p be tween
S y nt r ole u m and Ty son foods, wi t h a c a pa c i t y of 280 ML/y e a r . Ne st e t he n ope ne d t wo la r ge -sc a le HDRD
pr odu c t i on pla nt s wi t h a c a pa c i t y of 900 ML/y e a r each, fi r st in Rot t e r da m in 2010 and t he n in S i nga por e
in 2011. A se c ond la r ge (500 ML/y e a r ) Nor th Am e r i c a n pla nt is u nde r c onst r u c t i on in Norc o, Lou i si a na
as a joi nt v e nt u r e be t we e n Va le r o and Dar li ng, and shou ld be ope r a t i ona l by t he e nd of 2012. A nu m be r
of a ddi t i ona l st a nd-a lone and c o-pr oc e ssi ng pla nt s are a lso u nde r de v e lopm e nt .
A su m m a r y of e x i st i ng and pla nne d HDRD st a nd-a lone and c o-pr oc e ssi ng pla nt s are gi v e n in Ta ble s 15
and 16 in S e c t i on 7.
Int. J. Fu e ls Lu br., 2(2): 185.
1 6:0 Pal m i ti c ac i d
9c -1 8 :1 O l ei c ac i d
9c 1 2 c -1 8 :2 Li n o l ei c ac i d
o
0-
0 -
3. HDRD pr odu c t i on
In t hi s se c t i on, t he t y pe s of fe e dst oc ks t ha t c a n be used for HDRD pr odu c t i on a r e di sc u sse d and the
pa t hwa y s for t he pr odu c t i on of HDRD are e x pla i ne d.
3.1 F eed sto c ks
Vegetable oils and animal fats
HDRD c an be pr odu c e d fr om v i r t u a lly a ny t y pe of bi o-ba se d r e ne wa ble fe e dst oc k. The m ost c om m on
fe e dst oc ks a r e a ni m a l fa t s and v e ge t a ble oi ls, whi c h a r e m a de up m ost ly of t r i gly c e r i de s and are the
t y pe s of fe e dst oc ks t ha t are t r a di t i ona lly use d for bi odi e se l pr odu c t i on. Tr i gly c e r i de s are c he m ic a l
c om pou nds m a de up of a gly c e r ol ba c kbone and t hr e e fa t t y a c i ds (see an e x a m ple of a t r i gly c e r i de in
Fi gu r e 1). Fa t t y a c i ds a r e a li pha t i c (i.e. non-a r om a t i c , or not c ont a i ni ng a ny c a r bon r i ngs) c a r bon c ha i ns
c onne c t e d t o a c a r box y l (H0-C=0) grou p. Each of t he t hr e e fa t t y a c i ds c onne c t e d t o t he gly c e r ol group
on t he t r i gly c e r i de c a n ha v e a di ffe r e nt c ha i n le ngt h (i.e. nu m be r of c a r bon a t om s) and di ffe r e nt de gr e e s
of u nsa t u r a t i on (t he nu m be r of C=C dou ble bonds). For e x a m ple , as c an be se e n in Fi gu r e 1 below, ole i c
acid is an u nsa t u r a t e d fa t t y a c id be c a u se i t c ont a i ns one dou ble C=C bond. Li nole i c acid is also
u nsa t u r a t e d and c ont a i ns t wo dou ble C=C bonds. Pa lm i t i c acid, on t he ot he r hand, is fu lly sa t u r a t e d, as
t he r e are no dou ble C=C bonds in t he a li pha t i c c hai n.
Figure 1 - Example of a triglyceride
S ou r c e : E ge be r g, R., Mi c ha e lse n, N. a nd S ky u m , L. Novel Hydrotreating Technology for Production o f Green Diesel. Ha ldor
Topsoe .
The a li pha t i c c ha i n le ngt h and t he de gr e e of sa t u r a t i on of t he fa t t y a c i ds are i m por t a nt as t he y a r e the
pr i nc i pa l de t e r m i ni ng fa c t or s in t he phy si c a l pr ope r t i e s of t he fi na l bi odi e se l or HDRD pr odu c t , i nc lu di ng
c old flow pr ope r t i e s, flu i d de nsi t y and e ne r gy c ont e nt . The nom e nc la t u r e for fa t t y a c i ds inc lu de s a
nu m be r t o i ndi c a t e t he c ha i n le ngt h and t he nu m be r of dou ble bonds. For e x a m ple , in Fi gu r e 1, 16:0
pa lm i t i c acid has a ba c kbone c ha i n le ngth of 16 c a r bons and ze r o dou ble bonds. Di ffe r e nt fe e dst oc ks
will ha v e di ffe r e nt di st r i bu t i ons of fa t t y a c i ds wi t h v a r y i ng c ha i n le ngt hs and de gr e e of sa t u r a t i on. For
i nst a nc e , a nim a l fa t s ha v e m or e sa t u r a t e d fa t t y a c i ds t ha n v e ge t a ble oi ls51.
HDRD c a n be pr odu c e d fr om a wi de r r a nge of fe e dst oc ks t ha n bi odi e se l. The r e are t wo pr inc ipa l
r e a sons for this:
1) Tr i gly c e r i de s c an be c onv e r t e d t o bi odie se l v i a t r a nse st e r fi c a t i on or t o HDRD v i a hy dr opr oc e ssi ng
(e x pla i ne d in m or e de t a i l in S e c t i on 3.2). Tr a nse st e r fi c a t i on r e su lt s in ox y ge n-c ont a i ni ng m e t hy l
e st e r s wi t h v a r y i ng de gr e e s of u nsa t u r a t i on. The se pr odu c t s are su sc e pt i ble t o ox i da t i on, whi c h
m a ke s t he pr odu c t u nst a ble du r i ng pe r i ods of st or a ge and t r a nspor t a t i on. Hy dr opr oc e ssi ng of
t r i gy li c e r i de s t o pr odu c e HDRD r e su lt s in pa r a ffi ni c hy dr oc a r bons whi c h a r e by na t u r e fu lly
sa t u r a t e d and a r e t he r e for e not su sc e pt i ble t o ox i da t i v e i nst a bi li t y . As a r e su lt , a gr e a t e r r a nge of
fe e dst oc ks c an be used for HDRD pr odu c t i on r e la t i v e t o bi odie se l, si nc e t he de gr e e of sa t u r a t i on
of t he fe e dst oc k is not a c onsi de r a t i on5253.
2) Biofu e l fe e dst oc ks c an have si gni fi c a nt v a r i a t i ons in t he de gr e e of fr e e fa t t y a c id (FFA) c ont e nt .
FFAs are c a r box y li c a c i ds t ha t are not bonde d t o t he gly c e r ol ba c kbone of a t r i gly c e r i de . The y
c a n be de t r i m e nt a l t o t he bi odi e se l pr odu c t i on pr oc e ss be c a u se t he y r e a c t wi t h t he alkali c a t a ly st
(t y pi c a lly sodi u m hy dr ox i de ) t o for m soa ps, whi c h ha v e no v a lu e as a fuel. S om e fe e dst oc ks c an
c ont a i n up t o 15% FFAs by we i ght , so i f t he y a r e not c onv e r t e d t o a c om bu st i ble fuel, t hi s
r e pr e se nt s si gni fi c a nt loss. Du r i ng hy dr opr oc e ssi ng t o pr odu c e HDRD, howe v e r , FFAs are
e a si ly c onv e r t e d t o pa r a ffi ns and t he r e for e FFA c ont e nt of t he fe e dst oc k is not a c onc e r n for
HDRD pr odu c t i on54.
Ta ble 1 be low li st s t he v e ge t a ble oil sou r c e s used for bi odie se l and HDRD pr odu c t i on in Nor th Am e r i c a .
The m ost c om m only used sou r c e s are soy and c a nola . Fats and gr e a se s are a lso c om m only used,
i nc lu di ng wa st e a ni m a l fa t s fr om t he m e a t pr oc e ssi ng i ndu st r y (a lso known as t a llow) as we ll as wa st e
gr e a se s fr om t he food pr oc e ssi ng and r e st a u r a nt i ndu st r i e s (y e llow gr e a se and br own gr e a se ). Ta llow,
y e llow and brown gr e a se s are de si r a ble fe e dst oc ks be c a u se t he y a r e pr odu c e d fr om wa st e pr odu c t s and
t he r e for e are c he a pe r t ha n c u lt i v a t e d fe e dst oc ks su c h as c a nola and soy. Howe v e r , t he i r c he m i c a l
c om posi t i on c an v a r y wi de ly and t he y c an c ont a i n m a ny i m pu r it ie s. Thi s is le ss of an issu e for HDRD
pr odu c t i on for t he r e a sons di sc u sse d a bov e , y e t t he pr ope r t i e s of t he fe e dst oc k m u st ne v e r t he le ss be
t a ke n i nt o a c c ou nt whe n a dju st i ng pr e -t r e a t m e nt a nd hy dr opr oc e ssi ng ope r a t i ona l pa r a m e t e r s5556.
51 Robe r t 0. Du nn (2011). improving the Cold Flow Properties of Biodiesel by Fractionation. S oy be a n - Appli c a t i ons a nd Te c hnology .
Pu bli she d Apr i l 2011.
52 It shou ld be not e d t ha t t r a nse st e r fi c a t i on c a n be followe d by a hy dr oge na t i on st e p t o sa t u r a t e t he dou ble bonds in bi odi e se l. Thi s
a ddi t i ona l pr oc e ssi ng st e p c a n be a dde d t o a llow for t he u se of a gr e a t e r di v e r si t y of fe e dst oc ks for bi odi e se l pr odu c t i on a nd t o i m pr ov e
pr odu c t st a bi li t y .
Int. J. Fu e ls Lu br., 2(2): 185.
Transportation Fuels. De se r t Re se a r c h Inst it u t e , CRC Pr oje c t nu m be r AVFL-17, pu bli she d Ju ne 2009
The dom i na nt fe e dst oc k for bi odi e se l and r e ne wa ble di e se l pr odu c t i on in E u r ope is r a pe se e d oil (a c lose
re la t i v e of c a nola oil), soy be a n oil and t a llow in Nort h Am e r i c a and pa lm oil S ou t he a st Asi a . HDRD
pla nt s c u r r e nt ly in ope r a t i on t oda y m a ke use of palm , r a pe se e d/c a nola , ja t r opha and c a m e li na oi ls as
we ll t a llow and y e llow and br own gr e a se s.
Table 1 - V egetable oil feedstocks used for biodiesel and HDRD production in North America
N O R TH A M E R IC A
R ep o r ted
F eed sto c k
E d i b l e
A l g ae N o *
B eec h N o
C am el i n a Yes
C o m O i l Yes
C o tto n seed O i l Yes
Jatr o p h a N o
Lesqu er el l a N o
Li n seed Yes
R ap e Seed Yes
Saffl o w er Yes
So ap n u t O i l N o
So y b ean Yes
Sp r u c e N o
Su n fl o w er Oil Yes
Wal n u t Yes
*S om e a lga e , or por t i ons of a lga e , a r e e di ble .
Blendstocks for Transportation Fuels. S AE Int. J. Fu e ls Lu br ., 2(2):185.
The pr odu c t i on pa t hwa y s for t r a nse st e r fi c a t i on and for hy dr opr oc e ssi ng wi ll be di sc u sse d in m or e deta il
in S e c t i on 3.2.
Ta ble 1 a lso i ndi c a t e s whi c h fe e dst oc ks a r e e di ble for hu m a n c onsu m pt i on. As de m a nd for bi ofu e ls
grows, t he r e is c onc e r n t ha t globa l food su pply m a y su ffe r as a r e su lt of a gr i c u lt u r a l pr odu c e r s e i t he r
se lli ng t he i r food c r ops for fu e l pr odu c t i on r a t he r t ha n for hu m a n c onsu m pt i on, or c r op swi t c hi ng fr om a
food-c r op t o a non-food c r op in or de r t o sa t i sfy bi ofu e l de m a nd. The fa c t t ha t HDRD c an be pr odu c e d
fr om a wi de r r a nge of fe e dst oc ks is an a dv a nt a ge , si nc e fe e dst oc ks t ha t do not c om pe t e wi t h food c r ops
c a n be used, t hu s m i ni m i zi ng pu bli c opposi t i on. Indeed, in North Am e r i c a , t he Dy na m i c Fu e ls HDRD
pla nt and t he Va le r o/Da r li ng pla nt c u r r e nt ly u nde r c onst r u c t i on both m a ke use of t a llow, a m e a t
56 Holm gr e n, J., Gosli ng, C., Cou c h, K., Ka lne s, T., Ma r ke r , T., Mc Ca ll, M. And Ma r i na nge li , R. (UOP-Hone y we ll) (2007). Refining
Biofeedstock Innovations. Pe t r ole u m Te c hnology Qu a r t e r ly , Q3.
pr oc e ssi ng i ndu st r y wa st e produ c t , as t he i r pr i nc i pa l fe e dst oc k. Issu e s of fe e dst oc k a v a i la bi li t y wi ll be
di sc u sse d in S e c t i on 7.4.
Lignocellulosic feedstocks
HDRD c a n a lso be pr odu c e d fr om ot he r fe e dst oc ks t ha n t r i gly c e r i de s. Li gnoc e llu losi c fe e dst oc ks su c h as
t hose de r iv e d fr om a gr i c u lt u r a l and pulp and pa pe r r e si du e s c an also be used t o pr odu c e HDRD (as well
as r e ne wa ble gr e e n ga soli ne ), bu t a ddi t i ona l pr oc e ssi ng m u st be c a r r i e d ou t pr i or t o hy dr ot r e a t m e nt in
or de r t o br e a k down t he c e llu lose , he m i c e llu lose and li gni n fou nd in t he se fe e dst oc ks i nto sm a lle r
m ole c u le s. Thi s c an be done v i a py r oly si s or by t he r m a l or c a t a ly t i c de poly m e r i sa t i on t o pr odu c e bio-oil,
whi c h c an t he n be hy dr ot r e a t e d, or by ga si fi c a t i on t o pr odu c e sy nga s57, whi c h c an t he n be sy nt he si ze d
into la r ge r fu e l m ole c u le s. Bi om a ss c a n be c onv e r t e d t o bi o-oil e i t he r a t t he sa m e fa c i li t y as the
hy dr ot r e a m e nt pla nt or pr i or t o a r r i v i ng a t t he hy dr ot r e a t m e nt fa c i li t y (a t t he pu lp and pa pe r mill, for
e x a m ple ). No e x i st i ng HDRD pr odu c t i on fa c i li t i e s c u r r e nt ly use li ngoc e llu losi c bi om a ss or bi o-oi l as a
fe e dst oc k, howe v e r t he r e is si gni fi c a nt r e se a r c h c u r r e nt ly be i ng c ondu c t e d in or de r t o opt i m i ze t he use of
t he se m or e di v e r se fe e dst oc ks t ha t a lso do not c om pe t e wi t h food c r ops58.
The r e has a lso been i nv e st i ga t i on i nt o t he pr odu c t i on of r e ne wa ble di e se l fr om na t u r a l oi ls v i a flu id
c a t a ly t i c c r a c ki ng (FCC), whi c h is also a pr oc e ss t ha t c an c u r r e nt ly be fou nd in e x i st i ng pe t r ole u m
re fi ne r i e s.
Fi gu r e 2 be low pr ov i de s a sc he m a t i c of t he pr i nc i pa l pa t hwa y s for pr odu c i ng r e ne wa ble fu e ls fr om a
v a r i e t y of di ffe r e nt fe e dst oc ks. Ta ble 2 pr e se nt s t he a dv a nt a ge s and di sa dv a nt a ge s of di ffe r e nt bi odi e se l
and r e ne wa ble di e se l pr odu c t i on t e c hnologi e s. As c an be se e n in t he Ta ble , pr odu c t i on of r e ne wa ble
di e se l v i a hy dr ot r e a t m e nt r e m a i ns a fa v ou r a ble opt i on du e t he wi de r a v a i la bi li t y of fe e dst oc k opt i ons and
gr e a t e r pr odu c t qu a li t y r e la t i v e t o bi odie se l, y e t lowe r c a pi t a l i nv e st m e nt c ost s r e la t i v e t o ga si fi c a t i on +
Fi sc he r -Tr opsc h pr oc e sse s. In t he followi ng se c t i on, t he pa t hwa y s for t he pr odu c t i on of HDRD are
de sc r i be d in m or e det ail.
57 The c onv e r si on of bi om a ss t o pa r a ffi ni c r e ne wa ble fu e ls is known a s Fi sc he r -Tr opsc h ga s-t o-li qu i ds (GTL) t e c hnology .
58 Holm gr e n, J., Gosli ng, C., Cou c h, K., Ka lne s, T., Ma r ke r , T., Mc Ca ll, M. And Ma r i na nge li , R. (UOP-Hone y we ll, 2007). Refining
Biofeedstock Innovations. Pe t r ole u m Te c hnology Qu a r t e r ly , Q3, 2007.
CO.
F eed sto c ks Pr o d u c ts
Sugars Fermentation Deh y d r ati o n
Optional
Starches
petroleum
Acid or enzyme Green
hydrolysis gasoline
Direct
Ugnin, conversion
cellulose
and
hemicellulose Pyrolysis/thermal Bio -oil
depolymerisation
Hyd ro tr eati n g
Sy n g as
F i sc h er
Tr o p sc h
Alc o h o l sy nth esis
F C C
Natural
oils
Hy d r o tr eatin g
FAME or FAEE
Tr an sestr ific ati o n
Figure 2 - Renewable fuel production by feedstock type
Not e : Flu i di ze d c a t a ly t i c c r a c ki ng (FCC) of na t u r a l oi ls is t y pi c a lly u se d t o pr odu c e gr e e n ga soli ne a nd ole fi ns, not gr e e n
di e se l.
S ou r c e : Holm gr e n, J., Gosli ng, C., Cou c h, K., Ka lne s, T., Ma r ke r , T., Mc Ca ll, M. And Ma r i na nge li , R. (UOP-Hone y we ll,
2007). Refining Biofeedstock Innovations. Pe t r ole u m Te c hnology Qu a r t e r ly , Q3, 2007.
F e e d s t o c k s P r o c e s s P r o d u c t s
Tran sestri fic atio n
B IO D IE S E L
fF A M E ^
Pl a nt De r i v e d O i ls
N aO H
G L Y C E R O L
Ani mal Fats
Hydropr ocessi ng
(Hy d r o c ar b o n ^
P R O PA N E . C O . C O ^
Table 2 - Comparison of biodiesel and renewable diesel production technologies
Lar g e sc al e
p r o d u c ti o n
Pr o c ess Pr o d u c t F eed sto c ks:
A v ai l ab i l i ty an d
p r i c e
F av o u r ab l e
p r o d u c t
p r o p er ti es
C ap i tal
i n v estm en ts
- 1 9 9 5 E st r i fi c a t i on Bi odi e se l/FAME
_ _
+
2007 Hy dr ot r e a t i ng HDRD
+ +++ _
- 2 0 1 5 Ga si fi c a t i on
Fi sc he r -Tr opsc h
+ Re ne wa ble
di e se l
+++ +++
+ si gn i ndi c a t e s a dv a nt a ge , - si gn i ndi c a t e s di sa dv a nt a ge .
S ou r c e : Aa t ola , H., La r m i , M., S a r jov a a r a , T., Mi kkone n, S. (2008). Hydrotreated Vegetable Oil as a Renewable Diesel Fuel:
Trade-Off Between NOx Particulate Emission and Fuel Consumption o f a Heavy Duty Engine. S AE Int. J. E ngi ne s 1(1):1251-
1262.
3 .2 Pr o d u c ti o n p ath w ay s
Bi odi e se l and HDRD a r e m a de fr om t he sa m e fe e dst oc ks and y e t t he i r c he m i c a l c om posi t i on and
phy si c a l pr ope r t i e s a r e qu i te di ffe r e nt . Thi s is du e t o t he di ffe r e nt pr oc e ssi ng pa t hwa y s t ha t a r e used for
t he i r pr odu c t i on. Fi gu r e 3 i llu st r a t e s t he di ffe r e nc e be t we e n bi odi e se l and HDRD pr odu c t i on pa t hwa y s
a nd by -pr odu c t s. Biodi e se l is pr odu c e d v i a t r a nse st e r fi c a t i on wi t h gly c e r ol as a by -pr odu c t and HDRD is
pr odu c e d v i a hy dr opr oc e ssi ng wi t h pr opa ne , CO and CO2 as by -pr odu c t s.
Figure 3 - Biodiesel and HDRD feedstocks, production pathways and products
In t hi s se c t ion, t he bi odi e se l pr odu c t i on pr oc e ss is br i e fly di sc u sse d, followe d by a de sc r i pt i on t he m ost
c om m on pa t hwa y s used for HDRD pr odu c t i on and t he i r a dv a nt a ge s and di sa dv a nt a ge s. The c a pi t a l and
ope r a t i ng c ost s of ea c h of t he se pa t hwa y s are e x a m i ne d and t he i r e nv i r onm e nt a l i m pa c t s disc u sse d.
Ca t a ly st
Tr i gly c e r i de Me t ha nol (3) Gly c e r ol Me t hy l E st e r s
Transesterfication to biodiesel
The pr odu c t i on of bi odi e se l is c a r r i e d ou t v i a t r a nse st e r fi c a t i on (see Fi gu r e 4). In t hi s r e a c t i on, the
t r i gly c e r i de is r e a c t e d wi t h an a lc ohol (t y pi c a lly m e t ha nol) in t he pr e se nc e of a c a t a ly st (t y pi c a lly a base
su c h as Na OH) t o pr odu c e t hr e e fa t t y ac id m e t hy l e st e r s and t he si de -pr odu c t gly c e r i ne (or gly c e r ol).
Figure 4 - Biodiesel production via transesterfication of triglycerides
Im a ge sou r c e : By E 8 (E 8) (se lf-m a de u si ng Che m S ke t c hIO) [GFDL (www.gnu .or g/c opy le ft /fdl.ht m l) or CC-BY-3.0
(www.c r e a t i v e c om m ons.or g/li c e nse s/by /3.0)], v i a Wi ki m e di a Com m ons. Obt a i ne d Ja nu a r y 19, 2012 a t
ht t p://c om m ons.wi ki m e di a .or g/wi ki /Fi le %3ABi odi e se l_Re a c t i on2.gi f
The r e a r e som e di sa dv a nt a ge s t o t he pr odu c t i on of bi odi e se l in t hi s wa y . Fir stly, t he r e su lt i ng fu e l is
m a de up of e st e r s, not pa r a ffi ns. E st e r s c ont a i n ox y ge n and m a y c ont a i n u nsa t u r a t e d dou ble C=C bonds
in t he a li pha t i c c ha i n. Pa r a ffins, t he t y pe s of c he m i c a ls fou nd in c onv e nt i ona l ULS D, a r e fu lly sa t u r a t e d
hy dr oc a r bons t ha t c ont a i n no ox y ge n and no dou ble bonds. The hi ghe r ox y ge n c ont e nt in biodi e se l
c ont r i bu t e s t o it s lowe r he a t i ng v a lu e (lowe r e ne r gy c ont e nt ) r e la t i v e t o ULS D and its v a r y i ng de gr e e s of
u nsa t u r a t i on c a u se s pr odu c t i nst a bi li t y , as t he se dou ble bonds c an be ox i di ze d du r i ng e x t e nde d pe r i ods
of st or a ge
It is i m por t a nt t o not e t ha t t he fa t t y acid c ha i ns on t he t r i gly c e r i de a r e c onse r v e d in t he r e su lt i ng m e t hy l
e st e r s. The se are i de nt i fi e d as Ri , R2, and R3 in Figu r e 4. As a r e su lt , t he fa t t y a c i d m e t hy l e st e r s t ha t
r e su lt fr om t r a nse st e r fi c a t i on ha v e t he sa m e c ha i n le ngt hs and t he sa m e de gr e e of sa t u r a t i on as t he fa t t y
a c ids in t he or i gi na l t r i gly c e r i de . The r e for e , a fe e dst oc k wi t h a hi ghe r de gr e e of sa t u r a t e d fa t t y a c i ds in
t he t r i gly c e r i de wi ll ha v e a hi ghe r de gr e e of sa t u r a t e d m e t hy l e st e r s in t he fi na l produ c t . It is t he se
sa t u r a t e d m e t hy l e st e r s t ha t ha v e a hi ghe r m e lt i ng poi nt and c an for m wa x c r y st a ls in t he bi odi e se l li quid
a t t e m pe r a t u r e s t ha t a r e hi ghe r t ha n de si r a ble and c an c a u se st or a ge , dist r i bu t i on and ope r a bi li t y issu e s.
A nu m be r of st r a t e gi e s c an be i m ple m e nt e d t o c ont r ol t he se u nde si r a ble e ffe c t s, su c h as ble ndi ng wit h
ke r ose ne or t he a ddi t i on of a ddi t i v e s, bu t t he se solu t i ons are c ost ly and ope r a t i ona lly c ha lle ngi ng to
e nsu r e c onsi st e nt and pr e di c t a ble pr odu c t qu a li t y and c ha r a c t e r i st i c s59.
The r e a r e som e ot he r i ssu e s wi t h t r a nse st r i fi c a t i on. One is t he by -pr odu c t gly c e r i ne , whi c h is pr odu c e d
a t a bou t 8% v olu m e of t he pr odu c t 60. The c a r bons in t he gly c e r i ne a r e lost as t he y do not c ont r i bu t e to
the y i e ld of t he m or e e c onom i c a lly fa v ou r a ble bi odi e se l fuel. Ty pi c a lly t he gly c e r i ne t ha t r e su lt s fr om
t r a nse st r i fi c a t i on of v e ge t a ble oi ls and a nim a l fa t s is low-gr a de and m u st u nde r go c le a ni ng and fu r t he r
pr oc e ssi ng t o be a ble t o be sold as a v i a ble by -pr odu c t .
Hydrotreatment to HDRD
Pre-treatment
Most fe e dst oc ks r e qu i r e a pr e -t r e a t m e nt st e p t o pr e pa r e t he m for hy dr opr oc e ssi ng. De pe ndi ng on the
qu a li t y of t he fe e dst oc k, i t m a y c ont a i n v a r y i ng le v e ls of alkali m e t a ls, phospholi pi ds and m e t a lloli pi ds,
whi c h c an hi nde r t he e ffe c t i v e ne ss of t he hy dr opr oc e ssi ng c a t a ly st s. Hy dr oge na t i on of dou ble bonds in
the fa t t y a c i d c ha i ns m a y a lso be c a r r i e d ou t in t he pr e -t r e a t m e nt u ni t pr i or to hy dr ot r e a t m e nt 6162.
R eaction mechanism
The pr i nc i pa l obje c t i v e s of hy dr ot r e a t m e nt of t r i gly c e r i de s a r e t o r e m ov e ox y ge n and t o sa t u r a t e C=C
dou ble bonds t o pr odu c e pa r a ffi ni c n-a lka ne s in t he di e se l boili ng range . Hy dr oge n is re a c t e d wi t h the
t r i gy lc e r i de s u nde r high t e m pe r a t u r e and pr e ssu r e in t he pr e se nc e of c a t a ly st s t o hy dr oge na t e t he dou ble
bonds in t he fa t t y ac id c ha i ns in t he t r i gly c e r i de . Next , t he gly c e r ol ba c kbone is br oke n and t he ox y ge n
r e m ov e d, le a v i ng pa r a ffi ni c n-a lka ne s. The r e a r e t wo pr i nc i pa l pa t hwa y s by whi c h ox y ge n c an be
r e m ov e d fr om t he t r i gly c e r i de s: hy dr ode ox y ge na t i on (HDO) and de c a r box y la t i on (DCO). The se t wo
pa t hwa y s r e qu i r e di ffe r e nt i npu t s and pr odu c e di ffe r e nt pr odu c t s. The y are i llu st r a t e d in Fi gu r e 5 be low
u sing r a pe se e d oi l as an e x a m ple .
59 Na t u r a l Re sou r c e s Ca na da (2010). Re por t on t he Te c hni c a l Fe a si bi li t y of Int e gr a t i ng a n Annu a l Av e r a ge of 2% Re ne wa ble Di e se l in t he
Ca na di a n Di st i lla t e Pool by 2011. Pu bli she d Oc t obe r 2010.
60 Ma r ke r , T. L , Koka y e ff, P., Gosli ng, C. (UOP), Fa r a c i , G., a nd Pe r e go, C. (E ni ) (2007). Gr e e n Di e se l Pr odu c t i on Fr om Ve ge t a ble Oil.
Pr e se nt a t i on a t t he Am e r i c a n Inst i t u t e of Che m i c a l E ngi ne e r s c onfe r e nc e , S a lt La ke Ci t y , US A, Nov e m be r 2007.
61 Flolm gr e n, J., Gosli ng, C., Cou c h, K., Ka lne s, T., Ma r ke r , T., Mc Ca ll, M. And Ma r i na nge li , R. (UOP-Flone y we ll, 2007). Refining
Biofeedstock Innovations. Pe t r ole u m Te c hnology Qu a r t e r ly , 03, 2007.
62 E ge be r g, R., Mi c ha e lse n, N. a nd S ky u m , L. (Fla ldor Topsoe , da t e u nknown). Novel Hydrotreating Technology for Production of Green
Diesel.
HDO pa t hwa y pr odu c t s
H H
water water
oc ta dec a ne
H H h^ \ h
water water
oc t a dec a ne
HDO
h-'"0\ h
H' H
water
water
aocosa ne
Rapeseed o i l
o ^ = c ^ = o + h H
Re v e r se WGS
c a r bon di ox i de hy dr oge n c a r bon m onox i de
9c -ole i c a c id
H---H
hydrogen
13c -e r u c i c a c id +o=c +
Hh ch4 + H/ \ H
carbonmonoxide
hy dr ogen methane w&ter
Me t h a na t ion
H-- H
9c l2c -li nole i c a c id
hydrogen
+ 7 H, De c a r box y la t i on pa t hwa y pr odu c t s
De c ar b ox y la t i on
c a r bon di ox i de
hepta de ca ne
\ o^=c ^=o
pr opa ne c a r bon di ox i de
hep t a decane
c a r bon diox i de
he nic osane
Figure 5 - HDO and decarboxylation of rapeseed oil
S ou r c e : Ha ldor Topsoe (2010). Turning over a new leaf in renewable diesel hydrotreating.
ht t p://www.t opsoe .c om /bu si ne ss a r e a s/r e fi ni nq/Hv dr ot r e a t i nq/~/m e di a /PDF%20fi le s/Re fi ni nq/t opsoe npr a 2010 t u r ni ng ov e r a ne w le a f.a shx
As c a n be se e n in Fi gu r e 5, H D O of r a pe se e d oil r e qu i r e s an i npu t of 16 m ole s of hy dr oge n and pr odu c e s
one m ole of pr opa ne and si x m ole s of wa t e r in a ddi t i on t o t he HD R D hy dr oc a r bons. DCO, on t he ot he r
hand, r e qu i r e s only se v e n m ole s of hy dr oge n t o pr odu c e one m ole of pr opa ne and t hr e e m ole s of CO2.
Howe v e r , t he CO2 c an r e a c t fu r t he r wi t h hy dr oge n t o for m fi r st C O (r e v e r se wa t e r ga s shi ft (WGS )) and
t he n CH4 (m e t ha na t i on, se e Fi gu r e 5), r e qu i r i ng an a ddi t i ona l fou r m ole s of hy dr oge n for e a c h m ole of
CO2. As a r e su lt , D C O c a n r e qu i r e up t o 19 m ole s of hy dr oge n ov e r a ll, de pe ndi ng on t he e x t e nt of
r e v e r se WGS and m e t ha na t i on63.
HDO and DCO pr odu c e hy dr oc a r bons of di ffe r e nt m ole c u la r we i ght . HDO i nv olv e s br e a ki ng t he C-0
bonds in t he gly c e r ol gr ou p and hy dr oge na t i ng t he r e su lt i ng pr opy l and fa t t y acid c ha ins. Du r i ng DCO,
the CO2 gr ou p is se pa r a t e d c om ple t e ly fr om t he pr opy l gr ou p of t he gly c e r ol and t he a li pha t i c c ha i ns of
the fa t t y ac ids, whi c h a r e t he n hy dr oge na t e d. As a r e su lt , t he pa r a ffi ni c m ole c u le s t ha t r e su lt fr om HDO
c ont a i n one m or e c a r bon a t om t ha n t hose t ha t r e su lt fr om DCO, whi c h in pr a c t i c a l t e r m s c or r e sponds to
a 5% gr e a t e r liqu id pr odu c t y ie ld r e la t i v e t o DCO64. Howe v e r , t hi s doe s not r e su lt in a ny si gni fi c a nt
di ffe r e nc e s in fu e l pr ope r t ie s.
Finally, HDO only pr odu c e s pr opa ne and wa t e r as by -pr odu c t s. DCO pr odu c e s t he sa m e a m ou nt of
pr opa ne as t he HDO pa t hwa y , bu t i t a lso pr odu c e s CO2, CO and wa t e r in a m ou nt s t ha t de pe nd on the
e x t e nt of WGS and m e t ha na t i on. The r e for e DCO a lso has a hi ghe r pot e nt i a l for GHG e m i ssi ons.
As c a n be se e n fr om the pr e v i ou s e x a m ple , t he hy dr ot r e a t m e nt r e a c t i on pa t hwa y c an ha v e a si gni fi c a nt
i m pa c t on t he pr oc e ssi ng c ondi t i ons (not a bly H2 inpu t ) and on t he ou t pu t pr odu c t s. Ca t a ly st s c a n be
use d t o c ont r ol t he r e a c t i on pa t hwa y s t ha t a r e followe d. For e x a m ple , i t has been fou nd t ha t for t he
hy dr ot r e a t m e nt of soy be a n oil, ni c ke l-m oly bde nu m c a t a ly st s fa v ou r t he HDO r oute , whi le c oba lt -
m oly bde nu m c a t a ly st s fa v ou r t he DCO pa t hwa y 65.
It is i m por t a nt t o r e m e m be r t ha t in pr a c t i c e , both HDO and DCO will t a ke pla c e du r i ng hy dr ot r e a t m e nt
and c a nnot be c om ple t e ly c ont r olle d, bu t fi ndi ng t he r i ght ba la nc e using c a t a ly st s and r e a c t or c ondi t i ons
c an help m i ni m i ze hy dr oge n i npu t and CO2 ou t pu t and m a x i m i se li qu i d pr odu c t yield.
The c a t a ly st s used du r i ng t he hy dr opr oc e ssi ng ste p c an a lso ha v e an i m pa c t on t he pou r poi nt of t he fi na l
produ c t . For i nst a nc e , one st u dy has shown t ha t usi ng a si li c a -a lu m i na (S i 02-Ah03) su ppor t for a nic ke l-
m oly bde nu m c a t a ly st i nst e a d of a si li c a (S i 02) su ppor t whi le hy dr opr oc e ssi ng a ja t r opha , pa lm and
c a nola oil ble nd r e su lt s in a lowe r i ng of t he pou r poi nt of t he li qu i d pr odu c t fr om 200 t o -1OC66.
63 Ha ldor Topsoe (2010). Turning over a new leaf in renewable diesel hydrotreating.
ht t p://www.t opsoe .c om /bu si ne ss a r e a s/r e fi ni na /Hv dr ot r e a t i na /~/m e di a /PDF%20fi le s/Re fi ni na /t opsoe npr a 2010 t u r ni ng ov e r a ne w I
e a f.a shx
64 Ibid.
65 Ba m ba ng Ve r i a nsy a h, Ja e You ng Ha n, S e ok Ki Kim , S e u ng-Ah Hong, You ng Ju n Ki m , Jong S u ng Li m , You ng-Wong S hu , S e ong-Ge u n
Oh a nd Ja e hoon Ki m (2011 ). Production of renewable diesel by hydroprocessing of soybean oil: Effect of catalysts. Fu e l, in pr e ss,
e le c t r oni c v e r si on of c or r e c t e d pr oof a v a i la ble 7 Nov e m be r 2011.
66 Liu, Y., S ot e lo-Boy a s, R., Mu r a t a , K., Mi nowa , T. a nd S a ka ni shi , K. (2011). Hydrotreatment of Vegetable Oils to Produce Bio-
Hydrogenated Diesel and Liquefied Petroleum Gas Fuel over Catalysts Containing Sulfided Ni-Mo and Solid Acids. E ne r gy & Fu e ls,
25(10), 4675-4685.
As wa s m e nt i one d pr e v i ou sly , t he fr e e fa t t y acid c ont e nt of t he fe e dst oc k is an issu e for
t r a nse st r i fi c a t i on, bu t i t is not for hy dr oge na t i on. FFAs c an be e a si ly c onv e r t e d t o hy dr oc a r bons v i a
hy dr ot r e a t m e nt , whe r e a s t r a nse st e r fi c a t i on doe s not a lwa y s c onv e r t all FFAs and inde e d in som e c a se s
pr odu c e s FFAs, whi c h ne ga t i v e ly a ffe c t s se di m e nt for m a t i on in t he fi na l pr odu c t . As a r e su lt , a wi de r
r a nge of fe e dst oc ks c an be use d for hy dr ot r e a t m e nt , wi t hou t a ffe c t i ng fi na l pr odu c t qu a lit y . For e x a m ple ,
t hi s a llows for t he use of ta ll oil, a by -pr odu c t of t he pu lp and pa pe r indu st r y , whi c h c ont a i ns a lm ost
e x c lu si v e ly FFAs (and ot he r m ole c u le s) bu t no t r i gy lc e r i de s67. It shou ld be note d t ha t fe e dst oc ks wit h
v e r y high FFA c ont e nt (such as ta ll oi l) c a n c a u se ot he r i ssu e s in a hy dr ot r e a t e r su c h as acid c or r osi on,
t hu s in som e c a se s r e qu i r i ng pr e -t r e a t m e nt of t he fe e dst oc k t o r e du c e t he FFA c ont e nt .
It shou ld be note d t ha t a lt hou gh t he fe e dst oc k used in t he pr odu c t i on of FIDRD is r e ne wa ble , oft e n t he Fh
r e a ge nt is not. Flydrogen is t y pi c a lly pr odu c e d by st e a m r e for m a t i on of fossi l fu e ls su c h as na tu r a l ga s or
c oa l wi t h st e a m a t high t e m pe r a t u r e s. In a ddi t i on t o t he use of fossi l fu e ls as a fe e dst oc k for hy dr oge n
pr odu c t i on, t he pr odu c t i on of st e a m r e qu i r e s e ne r gy i npu t and high t e m pe r a t u r e s r e qu i r e d du r i ng the
r e a c t i on a lso r e qu i r i ng e ne r gy input. Ca r bon di ox i de is a lso a pr odu c t of st e a m r e for m a t i on r e a c t i ons,
whi c h a lso i nc r e a se s t he GFIG e m i ssi ons of t he pr oc e ss (u nle ss t he CO2 is c a pt u r e d and se qu e st e r e d).
Ne v e r t he le ss, t he r e are a nu m be r of wa y s in whi c h hy dr oge n c an be pr odu c e d su st a i na bly and wi t hou t
t he use of fossi l fu e ls (a lbe i t a t hi ghe r c ost s): e le c t r oly si s of wa t e r , whe r e t he e le c t r i c i t y use d for the
e le c t r oly si s is ge ne r a t e d by r e ne wa ble sou r c e s; t he u se of la ndfi ll ga s as t he fe e dst oc k for st e a m
r e for m a t i on; phot oc a t a ly t i c wa t e r spli t t i ng using sola r e ne r gy ; and fe r m e nt a t i v e and e nzy m a t i c hy dr oge n
ge ne r a t i on fr om or ga ni c m a t e r i a ls.
C atalytic de-w ax ing
The m e lt i ng poi nt of t he li qu i d pr odu c t of hy dr opr oc e ssi ng will de pe nd on t he or i gi na l fe e dst oc k
c om posi t i on, t he hy dr ot r e a t m e nt pa t hwa y and t he c a t a ly st s use d du r i ng hy dr opr oc e ssi ng. In m ost c ases,
som e long-c ha i n and br a nc he d pa r a ffi ns wi t h high m e lt i ng poi nt s a r e pr odu c e d, whi c h for m wa x soli ds on
c ooli ng. The m e lt i ng poi nt of t he FIDRD pr odu c t c an be lowe r e d in t hr e e wa y s: fr a c t i ona t i on/di st i lla t i on,
ble ndi ng wi t h a ddi t i v e s and c a t a ly t i c i som r i sa t i on (de -wa x i ng). Fr a c t i ona t i on and di st i lla t i on i nv olv e s
t he r e m ov a l of t he high m e lt i ng hy dr oc a r bons bu t r e su lt s in lowe r fi na l FIDRD y i e ld. Addi t i v e s su c h as
ke r ose ne or c lou d poi nt su ppr e ssa nt s m u st be ble nde d in high c onc e nt r a t i ons and a r e t he r e for e
e x pe nsi v e . Ca t a ly t i c de -wa x i ng i nv olv e s i som e r i si ng a nd/or hy dr oc r a c ki ng high m e lt i ng hy dr oc a r bons,
r e su lt i ng in a pr odu c t wi t h a m or e de si r a ble pou r point. The c a t a ly t i c and pr oc e ssi ng c ondi t i ons c an be
c ont r olle d in or de r t o pr odu c e FIDRD wi t h t he r e qu i r e d pou r poi nt (i.e. su m m e r vs. wi nt e r FIDRD). It
shou ld be note d t ha t due t o shor t e r c ha i n le ngt hs, li qui d pr odu c t y i e lds are sli ght ly lowe r for wi nt e r FIDRD
(a ppr ox i m a t e ly 10%), whi c h c ont r i bu t e s t o its hi ghe r c ost r e la t i v e t o su m m e r FIDRD68. S hor t -c ha i n
na pt ha m ole c u le s (5-12 c a r bons) a r e pr odu c e d as a c o-pr odu c t of isom r i sa t i on. The lowe r t he pou r
poi nt of t he li qu i d fu e l, t he hi ghe r t he na pt ha fr a c t i on (and c onse qu e nt ly lowe r li qu i d fr a c t i on), whi c h is
u nde si r a ble si nc e na pt ha is le ss v a lu a ble as a fu el tha n di esel.
Diesel.
All HDRD pr odu c t i on fa c i li t i e s c u r r e nt ly in c om m e r c i a l ope r a t i on m a ke use of a c a t a ly t i c de -wa x i ng u ni t to
c ont r ol t he c lou d point. Conv e r se ly , Ca nm e t E NE RGYs S UPE RCE TANE pr oc e ss m a ke s use of
fr a c t i ona t i on/di st i lla t i on69. Both c a t a ly t i c de -wa x i ng and fr a c t i ona t i on/di st i lla t i on pr oc e sse s a llow t he cloud
poi nt of the fi na l pr odu c t t o be c ont r olle d by m odi fy i ng t he ope r a t i ng c ondi t i ons. In both c a se s, t he lowe r
t he c lou d point, t he lowe r t he pr odu c t y i e ld (si nc e a gr e a t e r fr a c t i on of m ole c u le s m u st be re m ov e d),
he nc e t he hi ghe r pr ic e of low c lou d HDRD.
C o-processing vs. stand-alone units
As m e nt i one d pr e v i ou sly , one of t he a dv a nt a ge s of t he HDRD pr odu c t i on pr oc e ss is t ha t i t m a ke s use of
e x i st i ng r e fi ni ng t e c hnology . Hy dr ot r e a t m e nt uni t s a r e a lr e a dy used in c onv e nt i ona l r e fi ne r i e s in or de r to
de su lfu r i se fr a c t i ona l di st i lla t e s, i nc lu di ng di e se l oil. As su c h, t hi s sa m e t e c hnology c a n be a pplie d t o t he
hy dr ot r e a t m e nt of r e ne wa ble oi ls t o pr odu c e HDRD. Thi s c an be done e i t he r by c o-pr oc e ssi ng the
r e ne wa ble fe e d wi t h t he c onv e nt i ona l di e se l oi l fe e d or by c onst r u c t i ng a st a nd-a lone hy dr ot r e a t m e nt u nit
used e x c lu si v e ly for pr odu c i ng HDRD. The a dv a nt a ge of c o-pr oc e ssi ng is t he la r ge sa v i ngs in c a pit a l
c ost s, si nc e t he r e ne wa ble fe e d c an be pr oc e sse d in t he e x i st i ng hy dr ot r e a t e r . Howe v e r , t he ope r a t i ng
pa r a m e t e r s and t he c a t a ly st s used for di e se l oil and for r e ne wa ble oil c an be qu i t e di ffe r e nt and i t c an
t a ke t i m e t o swi t c h be t we e n m ode s of ope r a t i on due t o ne c e ssa r y c ha nge s in t he c a t a ly st bed and
ope r a t i ng c ondi t ions.
The hy dr ot r e a t m e nt of ox y ge n-c ont a i ni ng t r i gy lc e r i de s, e st e r s and fa t t y ac i ds, whe t he r by DCO or HDO,
is v e r y fa st and hi ghly e x ot he r m i c (i.e. i t gi v e s off si gni fi c a nt a m ou nt s of heat). In fa c t , onc e t he pr oc e ss
is i nit i a t e d, t he he a t gi v e n off by t he r e a c t i on c an be su ffi c i e nt t o su st a i n it, wi t h li t t le or no a ddit iona l
e ne r gy input. Thi s fa st and e x ot he r m i c r e a c t i on c r e a t e s gr e a t e r c om ple x i t y and non-u ni for m i t y of
t e m pe r a t u r e and pr e ssu r e in t he r e a c t or bed. If t he t e m pe r a t u r e r ise s t oo high t oo qu i c kly , t hi s c an lead
to c oke for m a t i on and c loggi ng in t he r e a c t or and c a t a ly st de a c t i v a t i on, lowe r H2 pa r t i a l pr e ssu r e a t the
c a t a ly st si t e (r e qu i r i ng hi ghe r H2 i npu t t o c om pe nsa t e ) and i nc r e a se d pr e ssu r e drop. Thi s e ffe c t c an be
c ont r olle d by using a gr a du a t e d c a t a ly st bed c om pr i si ng of m u lt i ple la y e r s of c a t a ly st s of di ffe r e nt
a c t i v i t i e s t ha t c an se r v e t o gu i de t he re a c t i on t hr ou gh t he r e a c t or bed, e nsu r i ng a m or e u ni for m
di st r i bu t i on of t e m pe r a t u r e and pr e ssu r e . The e ffe c t of ju st a fe w pe r c e nt of r e ne wa ble c o-fe e d on a
c onv e nt i ona l di e se l hy dr ot r e a t e r c a n be se e n c le a r ly in Fi gu r e 6, whi c h shows t he i nc r e a se in
t e m pe r a t u r e and H2 r e qu i r e m e nt s as a fu nc t i on of t he pe r c e nt a ge of r e ne wa ble c o-fe e d du r i ng di ffe r e nt
m ode s of ope r a t i on a t t he Pr e e m r e fi ne r y in Got he nbu r g, S we de n (u sing ta ll oil as t he r e ne wa ble
fe e dst oc k)70.
As c a n be se e n in Fi gu r e 6, t he hi ghly e x ot he r m i c na t u r e of hy dr opr oc e ssi ng ox y ge n-c ont a i ni ng
hy dr oc a r bons c an ha v e a si gni fi c a nt i m pa c t on r e a c t or c ondi t i ons. E x i st i ng hy dr ot r e a t e r s c a n u su a lly
ha ndle c o-pr oc e ssi ng low a m ou nt s of r e ne wa ble fe e d (5-10%) by opt i m i si ng t he c a t a ly st s loading,
whe r e a s hi ghe r a m ou nt s will r e qu i r e a r e v a m p of t he unit. A hy dr ot r e a t e r r e v a m p t o m a na ge high
69 Ca nm e t E NE RGY (2008). CanmetENERGY's SUPERCETANE technology. We bsi t e , la st m odi fi e d Nov e m be r 20, 2008.
ht t p://c a nm e t e ne r qv .nr c a n.qc .c a /i ndu st r i a l-pr oc e sse s/i ndu st r i a l-e ne r qv -sv st e m s/pu bli c a t i ons/342
70Ha ldor Topsoe (2010). Turning over a new leaf in renewable diesel hydrotreating.
ht t p://www.t opsoe .c om /bu si ne ss a r e a s/r e fi ni nq/Hv dr ot r e a t i nq/~/m e di a /PDF%20fi le s/Re fi ni nq/t opsoe npr a 2010 t u r ni ng ov e r a ne w I
e a f.a shx
70 200
To tal A T c
1 8 0
60
o
H2 (;o n su r t p t i o n
%
a
1 6 0
5 0
o U
E
o
D C
f
I B I
1 4 0 5

h-" 4 0
<3
E
P P
R a o c
r
120
M
o S-
e
w
3 0
E

jS ' I,
100
i -
u>
2 0
8 0
m
2
1 0
60
*
0 4 0
0 1 0 1 5 2 0 2 5 3 0 3 5 4 0 4 5
R en ew ab l e in feed , %
fr a c t i ons of c o-pr oc e ssi ng wi t h r e ne wa ble s wou ld i nv olv e m a t e r i a l se le c t i on (he a t st r e ss, c or r osi on
issu e s), t he gas loop sy st e m t o m a na ge CO and CO2, r e a c t or t e m pe r a t u r e s (hi ghe r e x ot he r m ), hy dr oge n
r e qu i r e m e nt s, hy dr a u li c li m i t a t i ons, r e a c t or si ze s and a ny ot he r m odi fi c a t i ons ne c e ssa r y t o ha ndle the
ne w r e a c t i ons in a sa fe and r e li a ble m a nne r .
One of t he a dv a nt a ge s of HDRD is t ha t i t c a n be ble nde d i nt o t he c onv e nt i ona l di e se l pool in v e r y hi gh
c onc e nt r a t i ons, up t o 100%, wi t h li t t le or no a dv e r se e ffe c t s (inde e d, wi t h som e posi t i v e e ffe c t s, as will be
se e n in S e c t i on 4). Alt hou gh i t is r e la t i v e ly st r a i ght for wa r d t o opt i m i ze r e a c t or c ondi t i ons for a gi v e n
pe r c e nt a ge of r e ne wa ble c o-fe e d, t he se c ondi t i ons c a n v a r y si gni fi c a nt ly de pe ndi ng on t he ble nd
pe r c e nt a ge . Bat c h pr odu c t i on of HDRD in a st a nd-a lone fa c i li t y gi v e s r e fi ne r s gr e a t e r fle x i bi li t y wi t h
r e ga r ds t o r e a l-t i m e m odi fi c a t i ons in t he ble nd pe r c e nt a ge 7172.
F i g u r e 6 - C h a n g e s in t e m p e r a t u r e a n d h y d r o g e n c o n s u m p t i o n in a h y d r o t r e a t e r c o - f e e d i n g w i t h
TALL OIL
S ou r c e : E ge be r g, R. a nd Knu dse n, K. (Ha ldor Topsoe ); Ny st r dm , S., Gr e nnfe lt , E. L. a nd E fr a i m sson, K. (Pr e e m ) (2011).
Industrial-scale Production o f Renewable Diesel. Pe t r ole u m Te c hnology Qu a r t e r ly , Q3.
As m e nt i one d e a r li e r in t hi s se c t i on, hy dr opr oc e ssi ng r e ne wa ble fe e dst oc ks r e qu i r e s la r ge a m ou nt s of
hy dr oge n - si gni fi c a nt ly hi ghe r t ha n is r e qu i r e d for hy dr opr oc e ssi ng c onv e nt i ona l di e se l oil.
Conse qu e nt ly , e x i st i ng c a pa c i t y for hy dr oge n ge ne r a t i on a t a pe t r ole u m r e fi ne r y m a y not be su ffi c i e nt to
Diesel.
c o-pr oc e ss r e ne wa ble fe e ds a t high pe r c e nt a ge s. It m a y not be c onsi de r e d e c onom i c t o i nst a ll a ddi t i ona l
hy dr oge n ge ne r a t i on c a pa c i t y in or de r t o be a ble t o c o-pr oc e ss wi t h r e ne wa ble fe e dst oc ks.
The r e is an a ddi t i ona l c onc e r n re la t e d t o c o-pr oc e ssi ng t ha t is spe c i fi c t o t he Unit e d S t a t e s m a r ke t: u nde r
t he US Re ne wa ble Fu e ls S t a nda r d (RFS 2)73, FIDRD t ha t is pr odu c e d as a ble nd wi t h c onv e nt i ona l diesel
v i a c o-pr oc e ssi ng is c u r r e nt ly not as v a lu a ble as FIDRD t ha t is pr oc e sse d i nde pe nde nt ly . Thi s is
di sc u sse d in m or e de t a i ls in se c t i on 7.1.
S t a nd-a lone u ni t s for hy dr opr oc e ssi ng r e ne wa ble fe e dst oc ks ha v e t he a dv a nt a ge of be ing t a i lor -m a de
and opt i m i se d for FIDRD pr odu c t i on. The y c a n be bu i lt as a dd-ons t o e x i st i ng r e fi ne r i e s in or de r t o m a ke
use of e x i st i ng hy dr oge n ge ne r a t i on c a pa c i t y and t o st r e a m li ne t he m a na ge m e nt of r e c y c le gases. Thi s
is i llu st r a t e d in Fi gu r e 7. The FIDRD c an a lso be ble nde d wi t h c onv e nt i ona l di e se l a ft e r pr oc e ssi ng on
si t e a t t he r e fi ne r y be for e di st r i bu t i on t o t he t e r m i na ls, or i t c a n be ke pt se pa r a t e for dist r i bu t i on and sa le
as a ne a t produ c t . The ble nd pe r c e nt a ge c an be de t e r m i ne d a t shor t not i c e a c c or di ng t o c ha ngi ng
m a r ke t c ondi t i ons wi t hou t c om ple x c ha nge s t o ope r a t i ng c ondi t i ons.
Floweve r, t he obv i ou s di sa dv a nt a ge of a st a nd-a lone pr odu c t i on fa c i li t y is t he high c a pi t a l c ost s for t he
c onst r u c t i on of t he r e qu i r e d a ddi t i ona l i nfr a st r u c t u r e . The r e for e , in or de r for t he c onst r u c t i on of su c h a
fa c i li t y t o be e c onom i c , t he ope r a t or m u st t a ke a dv a nt a ge of e c onom i e s of sc a le by pr odu c i ng r e ne wa ble
di e se l in la r ge v olu m e s. Co-pr oc e ssi ng a llows t he r e fi ne r t o ble nd sm a lle r v olu m e s of FIDRD wi t h less
c a pi t a l i nv e st m e nt (m ost ly re la t e d t o t he r e c e i pt, st or a ge and ha ndli ng of t he fe e dst oc k).
The c hoi c e of pr odu c i ng FIDRD v i a c o-pr oc e ssi ng or in a st a nd-a lone fa c i li t y will de pe nd gr e a t ly on loc al
c ondi t i ons. In t he Uni te d S t a t e s c ont e x t , howe v e r , c o-pr oc e ssi ng is u nli ke ly t o be t he m e t hod of c hoi c e in
the ne a r t o m e di u m t e r m due t o u nfa v ou r a ble RIN pr i c e s r e la t i v e t o FIDRD pr odu c e d in a st a nd-a lone u ni t
u nde r t he RFS 2 re gu la t i ons.
73 Co-pr oc e sse d HDRD is e li gi ble for D5 RINs in t he Ty pe A a dv a nc e d bi ofu e ls c a t e gor y , bu t t he se RINs a r e c u r r e nt ly t r a di ng a t a bou t ha lf
t he pr i c e of D4 RINs.
R en ew ab l e
feed sto r ag e
In ter c o n n ec ti o n s
Hy d r o g en
R en ew ab l e
C r u d e o i l
Fuel g as
feed
r efi n i n g
Steam /C o n d p r o c essi n g
So u r w ater
Am in e
R en ew ab l e
O i l p r o d u c t
p r o d u c t
sto r ag e
sto r ag e
A u xi l i ar i es
Waste w ater tr eatm en t
O i l y w ater rec o v er y
Sl o p oil
F i g u r e 7 - I n t e g r a t i o n o f a s t a n d - a l o n e HDRD p l a n t a t a p e t r o l e u m r e f i n e r y
S ou r c e : Ke y r lllne n, J. a nd Koski ne n, M. (Ne st e Ja c obs, 2011). Re ne wa ble Fu e ls a nd Bi ofu e ls in a Pe t r ole u m Re fi ne r y .
Pe t r ole u m Te c hnology Qu a r t e r ly , Q1.
3 .3 C ap i tal an d o p er ati n g HD R D p r o d u c ti o n c o sts
3.3.1 Stand-alone plants
Ta ble 3 pr e se nt s t he c a pi t a l c ost s and pr odu c t i on c a pa c i t i e s of e a c h of t he HDRD pla nt s in c om m e r c i a l
ope r a t i on toda y , as we ll as t he e st i m a t e d c ost s for hy pot he t i c a l plants.
Note t ha t in 2006, Ca nm e t E NE RGY c a r r i e d ou t an e c onom i c a na ly si s of a pot e nt i a l 8000 bpd pla nt t ha t
m a ke s u se of it s pa t e nt e d S UPE RCE TANE t e c hnology t o hy dr ot r e a t v e ge t a ble oi ls and a ni m a ls fa t s
into a pa r a ffi ni c lu br i c a nt wax. The c a pi t a l c ost s we r e e st i m a t e d t o be USD 12.7 m illion, bu t t hi s doe s not
inc lu de t he de -wa x i ng u nit t ha t wou ld be use d t o c onv e r t thi s ba se st oc k t o HDRD74.
Table 3 - Capita l costs of c ommerci al HDRD production facilities
fac i l i ty
C ap ac i ty C ap i tal c o sts
(U SD )
C ap i tal c o st p er
b ar r el p er d ay
c ap ac i ty
So u r c e
Fi nla nd
190,000 t onne s pe r y e a r
(tPY)
3,800 bpd
$130 m i lli on $34,000
[1]
Fi nla nd
190,000 t py
3,800 bpd
$130 m i lli on $34,000
[1]
Ne st e Oil Tu a s,
S i nga por e
800.000 t py
16.000 bpd
$725 m i lli on $45,000
[2]
Ne t he r la nds
800.000 t py
16.000 bpd
$1 bi lli on $63,000
[3]
Dy na m i c Fu e ls
(S y nt r ole u m
a nd Ty son
Foods joi nt
v e nt u r e )
Ge i sm a r ,
Lou i si a na
240.000 t py
5.000 bpd
$150 m i lli on $30,000
[4]
Va le r o and
Da r li ng joi nt
v e nt u r e
Nor c o,
Lou i si a na
440.000 t py
9.000 bpd
$330 m i lli on
(i nc lu di ng $241
m i lli on DOE loa n
gu a r a nt e e )
$36,000
[5]
Hy pot he t i c a l sm a ll-sc a le pla nt 500 bpd $36- $42 m i lli on $72,000-$84,000
[6]
Hy pot he t i c a l sm a ll-sc a le pla nt 2,500 bpd $75- $85 m i lli on $30,000-$34,000
[6]
Ju ne , 2008.
6Pe r sona l c om m u ni c a t i ons.
Fi gu r e 8 plot s t ot a l c a pi t a l c ost s as a fu nc t i on of pr odu c t i on c a pa c it y . Thi s da t a is ba se d on only si x
c om m e r c i a l pla nt s and t wo hy pot he t i c a l pla nt s so i t c a nnot be t a ke n as fu lly r e pr e se nt a t i v e . Also, c a pi t a l
c ost s c an be c a lc u la t e d in a nu m be r of di ffe r e nt wa y s and fi gu r e s c an v a r y de pe ndi ng on wha t is
inc lu de d, so t he se a r e r e a lly only r ough e st i m a t e s. Howe v e r , gi v e n t he a v a i la ble data , for t he m om e nt it
74 Ca nm e t E NE RGY (2008). CanmetENERGY's SUPERCETANE technology We bsi t e , la st m odi fi e d Nov e m be r 20, 2008.
ht t p://c a nm e t e ne r a v .nr c a n.a c .c a /i ndu st r i a l-pr oc e sse s/i ndu st r i a l-e ne r a v -sv st e m s/pu bli c a t i ons/342
1 2 0 0
a
_ 1 0 0 0
800
GOO
n 400
200
5000 100X' 15000 20000
C ap ac i ty (b ar r el s p er d ay )
a ppe a r s t ha t e c onom i e s of sc a le do not y e t a pply t o t he c a pi t a l c ost s for ne w HDRD pla nt c onst r u c t i on,
as t he r e la t i onshi p a ppe a r s t o be a ppr ox i m a t e ly li near.
Figure 8 - Capital costs as a function of capacity - s m a l l -, medium- and l a r ge -scale HDRD plants
Anot he r wa y t o i nt e r pr e t t he da t a is t o a na ly se t he u ni t c a pi t a l c ost (c a pit a l c ost bpd of c a pa c i t y , see
Ta ble 3). Thi s is plot t e d in Fi gu r e 9 as a fu nc t i on of pla nt c a pa c i t y . As c an be se e n in t he fi gu r e , t he u ni t
c a pi t a l c ost is hi gh for v e r y sm a ll and v e r y la r ge pla nt s $45,000 - $85,000 pe r bpd c a pa c i t y ), bu t
a ppr ox i m a t e ly t he sa m e for t he r e st ($30,000 - $40,000 pe r bpd c a pa c i t y ). In c ont r a st , t he a v e r a ge
c a pi t a l c ost s for a pe t r ole u m r e fi ne r y a r e $15,000 - $20,000 pe r bpd c a pa c i t y 75. Ty pi c a l pe t r ole u m
r e fi ne r i e s c an ha v e c a pa c i t i e s in t he t e ns t o hu ndr e ds of t hou sa nds of bpd. For a bi odi e se l pla nt t he y are
$20,000 - $30,000 pe r bpd c a pa c i t y for pla nt si ze s a r ou nd 2,000 bpd, whi c h is c onsi de r e d a la r ge (i.e.
114 m i lli on li t r e s/y e a r )76.
75 Uni t e d S t a t e s E ne r gy Infor m a t i on Adm i ni st r a t i on (E IA, 2006). Annual Energy Outlook 2006. DOE /E IA-0383, 57-58.
76 Uni t e d S t a t e s De pa r t m e nt of Agr i c u lt u r e (US DA) a nd Iowa S t a t e Uni v e r si t y (2012). Biodiesel Profitability. E x c e l m ode l, la st u pda t e d
Ja nu a r y 10, 2012.
90.000
80.000
70.000
60.000
50.000
40.000
30.000
20.000
10,000
0 5000 10000 15000 20000
Capa c it y (ba r r e ls pe r day)
-10%

F i g u r e 9 - U n i t c a p i t a l c o s t s as a f u n c t i o n o f HDRD p r o d u c t i o n c a p a c i t y
Ope r a t i ng c ost s a t an HDRD pr odu c t i on fa c i li t y i nc lu de : r e ne wa ble fe e dst oc k, hy dr oge n, e ne r gy
inpu t /u t i li t y , wa t e r , c a t a ly st s, c he m i c a ls, di r e c t and i ndi r e c t la bou r and a dm i ni st r a t i v e c ost s. Ope r a t i ng
c ost s are m u c h m or e di ffi c u lt to pr e di c t , be c a u se fe e dst oc k, hy dr oge n and u t i li t y pri c es, t he la r ge st
c om pone nt s of pr odu c t i on c osts, c an v a r y wi de ly de pe ndi ng on local, na t i ona l and i nt e r na t i ona l m a r ke t
c ondi t i ons. Fe e dst oc k c ost s m a ke up a ppr ox i m a t e ly 80% of ope r a t i ng e x pe nse s and hy dr oge n and
u t i li t i e s m a ke up a ppr ox i m a t e ly 15%77. Gi v e n t he i m por t a nt r ole t ha t fe e dst oc k pla y s in de t e r m i ni ng
pr odu c t i on c ost s, c ha nge s in fe e dst oc k pr i c e s c an m a ke or br e a k t he pr ofi t a bi li t y of an HDRD ope r a t ion.
Thi s is a lso why i t is a dv a nt a ge ou s t o di v e r si fy fe e dst oc k su pply in or de r t o be a ble t o a da pt t o c ha ngi ng
fe e dst oc k pri c es. Fi gu r e 10 i llu st r a t e s Ne st e s fe e dst oc k di v e r si fi c a t i on st r a t e gy :
Figure 10 - Neste oil feedstock diversification strategy
F eed sto c k p o o l i n 2 0 1 1
F eed sto c k str ateg y
C r u d e p al m oil
Waste an d si d e str eam s (w aste an i m al fat, PF A D , stear i n )
O th er (e.g . r ap eseed , jatr o p h a, c am el i n a)
E n su r e s u s ta i n a b i l i t y o f al l feed sto c k
u sed c u r r e n tl y
C er ti fi c ati o n sc h em es
A u d i t tr ai l
Pr o jec ts to fu r th er i m p r o v e
su stai n ab i l i ty
E xp an d fe e d s to c k r an g e
F o c u s o n w aste, si d estr eam s an d
r esi d u es
A n i m al fat sh ar e w i l l r i se to >2 0 %
d u r i n g 2 0 1 1
N ew feed sto c ks th r o u g h fo c u sed R &D
Eu ro pean Rapeseed oil vs. M alaysian c ru de pal m oil + fr ei g h t ($ 45/t)
$/t
5 5 0 n
5 0 0 -
4 5 0 -
4 0 0 -
3 5 0 -
3 0 0 -
2 5 0 -
200 -
1 5 0 -
1 0 0 -
5 0 -
0 1 /0 8 0 7/0 8 0 1 /0 9 0 7/0 9 0 1 /1 0 0 7/1 0 0 1 /1 1 0 7/1 1
S ou r c e : Le hm u s, Ma t t i (Ne st e Oil, 2011). Renewable Fuels - Driving Growth and Profitability. Pr e se nt a t i on a t Ne st e Oil
Ca pi t a l Ma r ke t s Da y , 21 S e pt e m be r 2011.
Fi gu r e 11 plot s t he di ffe r e nc e in pr i c e be t we e n r a pe se e d oil and pa lm oil fr om 2008 - 2011. The pr i c e
di ffe r e nt i a l v a r i e d fr om $50/t in su m m e r 2010 t o $550/t in su m m e r 2008. Thi s i llu st r a t e s t he im por t a nc e
of fe e dst oc k fle x i bi li t y .
Figure 11 - Price differenti al between European rapeseed oil and Malaysian palm oil ( including
freight to Euro pe)
S ou r c e : S ou r c e : Le hm u s, Ma t t i (Ne st e Oil, 2011). Renewable Fuels - Driving Growth and Profitability. Pr e se nt a t i on a t Ne st e
Oil Ca pi t a l Ma r ke t s Da y , 21 S e pt e m be r 2011.
Fi gu r e 12 plot s US bi ofu e l fe e dst oc k pr i c e s fr om 1995 - 2010, as c om pa r e d wi t h r e gu la r No. 2 die sel
whole sa le pr i c e s78. As c a n be se e n, fe e dst oc k pr i c e v ola t i li t y has i nc r e a se d dr a m a t i c a lly si nc e t he e a r ly
2000s, due pr i m a r i ly t o c r u de oi l pr i c e v ola t i li t y bu t also du e t o t he de v e lopm e nt of bi ofu e ls m ar ke t s.
Fi gu r e 13 plot s t he pr i c e di ffe r e nt i a l of v a r i ou s bi ofu e l fe e dst oc ks r e la t i v e t o r e gu la r No.2 die se l whole sa le
pric es.
78 It is i m por t a nt t o r e m e m be r t ha t t he e qu i v a le nt fossi l fe e dst oc k t o v e ge t a ble oi ls a nd r e nde r e d fa t s is r e gu la r (non-
de su lfu r i se d) di e se l oi l (not c r u de oi l). Cr u de oil is fi r st di st i lle d i nt o a nu m be r of fr a c t i ons of di ffe r e nt boi li ng poi nt r a nge s a nd
r e gu la r di e se l is pr odu c e d fr om t he di e se l oil fr a c t i on, whi c h is t he n fe d i nt o a hy dr ot r e a t e r for de -su lfu r i za t i on t o ULS D.
The r e for e t he hy dr ot r e a t e r fe e d for ULS D i s r e gu la r di e se l a nd t he hy dr ot r e a t e r fe e d for HDRD i s v e ge t a ble oil or r e nde r e d fa t s
(or ot he r su i t a ble r e ne wa ble fe e dst oc ks, su c h a s pr oc e sse d t a ll oil).
70
- soy oi l
60
- Cnol i oi l
t a l l o w
40
l a r d
30
b a k i n g a nd
f r y i n g f a t s
10
r e g u l a r
di e se l
1995 2000 2005 2010
40
30
20
soy oi l
10 c a n o l i a o i l
t a l l o w
l a r d
2000 2010
b a k i n g a n d f r y i n g f a t s
-10
-30
F i g u r e 12 - US b i o f u e l f e e d s t o c k an d r e g u l a r d i esel p r i c es
1, 2011.
F i g u r e 1 3 - P r i c e d i f f e r e n t i a l b etw een US b i o f u e l f e e d s t o c k s an d r e g u l a r d i esel
1, 2011.
As c an be se e n, a si de fr om ba ki ng and fr y i ng fat s, r e ne wa ble fe e dst oc k pr i c e s had a ge ne r a lly inv e r se
r e la t i onshi p r e la t i v e t o di e se l oil pr i c e s fr om 1995-2005. As of 2005, r e ne wa ble fe e dst oc k pr i c e s began
m or e or le ss t o follow oil pr i c e s, a lt hou gh t hi s t r e nd is not e x pe c t e d t o c ont i nu e i nde fi ni t e ly (see S e c t i on
7.3 for a di sc u ssi on of HDRD pr ic e s). Inst a lli ng or a da pt i ng r e fi ne r y i nfr a st r u c t u r e in or de r t o be able to
a c c om m oda t e t he pr odu c t i on or c o-fe e di ng of HDRD fr om a v a r i e t y of di ffe r e nt fe e dst oc ks c ou ld be seen
as a he dge for whe n r e gu la r die se l pr i c e s a r e high r e la t i v e t o r e ne wa ble fe e dst oc k pri c es. Of c ou r se ,
fe e dst oc k su pply m u st be su ffi c i e nt . Thi s wi ll be di sc u sse d in m or e de ta i l in S e c t i on 7.4.
In 2011, Ne st e Oil pu bli she d e st i m a t e d pr odu c t i on c ost s (not inc lu di ng fe e dst oc k c ost s) for t he i r NE x BTL
pr oc e ss, wi t h a c om pa r i son t o 2009 e st i m a t e s. The se a r e shown in Ta ble 4. As c an be se e n, i t is
e st i m a t e d t ha t pr odu c t i on c ost s a r e a ppr ox i m a t e ly 17 US c e nt s/L. Thi s is up fr om t he 2009 e st i m a t e of
14 US c e nt s/L, du e t o i nc r e a se s in u t i li t y costs.
T a b l e 4 - E sti m ated NExBTL p r o d u c t i o n m ar g i n f o r 2 0 0 9 an d 2 0 10
US c en ts/L N E xB TL 2 0 0 9 2 0 1 0
Fix e d Cost s 4 4
Hy dr oge n and u t i li t i e s 1 0 1 3
TOTAL 1 4 17
S ou r c e : S ou r c e : Le hm u s, Ma t t i (Ne st e Oil, 2011). Renewable Fuels - Driving Growth and Profitability. Pr e se nt a t i on a t Ne st e
Oil Ca pi t a l Ma r ke t s Da y , 21 S e pt e m be r 2011.
In 2009, Ne st e Oil a lso pu bli she d e st i m a t e d NE x BTL m a r gi ns for t he pe r iod Ju ly 2008 - Ju ne 2009.
The se are pr e se nt e d in Ta ble 5. As c an be se e n, t he ne t c a sh m a r gi n for t he pe r i od wa s e st i m a t e d t o be
a bou t 18 US c e nt s/L. The m a r gi n for 2010 wa s li ke ly som e wha t lower, du e t o t he hi ghe r u ti li t i e s c ost s
m e nt i one d e a r li e r . Fe e dst oc k pr i c e s do not ne c e ssa r i ly a ffe c t m a r gi ns be c a u se HDRD is t y pi c a lly pr i c e d
r e la t i v e t o bi odi e se l pri c es. Mor e i nfor m a t i on on HDRD and bi odi e se l pr i c e s will be gi v e n in S e c t i on 7.3.
T a b l e 5 - E sti m ated NExBTL p r o d u c t i o n m ar g i n J u l y 2 0 0 8 Ju n e 2009
U S c en ts/L N E xB TL
Gr oss m a r gi n 31
Ut i li t i e s a nd hy dr oge n 1 0
S a le s m a r gi n 21
Fix e d c ost s 4
Ne t c a sh m a r gi n 1 8
S ou r c e : Honka m a a , J., 2009. Delivering Future Growth. Pr e se nt a t i on a t Ne st e Oil Ca pi t a l Ma r ke t s Da y , 29 S e pt e m be r , 2009.
3.3.2 Co-processing
In t he c a se of c o-pr oc e ssi ng, t he r e ne wa ble fe e dst oc k is c o-pr oc e sse d wi t h t he pe t r ole u m fe e d using the
e x i st i ng r e fi ne r y i nfr a st r u c t u r e , so t he m a r gi na l c a pi t a l and ope r a t i ng e x pe nse s are m i ni m a l. Br it i sh
Pe t r ole u m (BP) and Pe t r obr a s ha v e both i nst a lle d c o-pr oc e ssi ng fa c i li t i e s in Au st r a li a and Brazil,
r e spe c t i v e ly , and t he y ha v e indi c a t e d t ha t t he m a r gi na l c a pit a l c ost s a r e m ini m a l. The BP pla nt c o
pr oc e sse s up t o 2,000 bpd HDRD (up 5% by v olu m e ) and Pe t r obr a s has a da pt e d fou r of its e x i st i ng
r e fi ne r i e s in Brazil so t ha t e a c h c an a llow for c o-pr oc e ssi ng of up t o 4,000 bpd HDRD. Pe t r obr a s has
indi c a t e d t ha t t he m a r gi na l c a pi t a l c ost s t o a c c om m oda t e c o-pr oc e ssi ng we r e of t he or de r of USD 5.6
m illion. Alt hou gh m a r gi na l c a pi t a l and ope r a t i ng c ost s are m ini m a l, of c ou r se t he pr ic e of t he r e ne wa ble
fe e dst oc k r e la t i v e t o t he pe t r ole u m fe e d will ha v e a si gni fi c a nt i m pa c t on t he r e fi ni ng m a r gi n. For
e x a m ple , Pe t r obr a s has not bee n c o-fe e di ng a t m a x i m u m c a pa c i t y be c a u se of t he c u r r e nt high pr ic e of
r e ne wa ble fe e ds r e la t i v e t o r e gu la r di e se l7980.
3.4 GHG impacts of HDRD production
The gr e e nhou se ga s (GHG) e m i ssi ons t ha t r e su lt fr om t he pr odu c t i on and use of HDRD c a n be
c a lc u la t e d using we ll-t o-whe e l fu ll li fe c y c le a na ly si s (LCA). S u c h an a na ly si s se e ks t o a c c ou nt for all
GHG e m i ssi ons r e la t e d t o t he pr odu c t i on and t r a nspor t a t i on of fe e dst oc k and t he produ c t i on,
t r a nspor t a t i on, di st r i bu t i on and c om bu st i on of t he r e su lt i ng fuel. Thi s inc lu de s fe e dst oc k gr owt h and
ha r v e st i ng, fe r t i li ze r use (i f a ppli c a ble ), di r e c t land use c ha nge s (c ha nge s in t he land use d for HDRD
pr odu c t i on) fe e dst oc k pr oc e ssi ng and oi l e x t r a c t i on and HDRD pr odu c t i on and di st r i bu t i on, a m ongst ot he r
fa c t or s. The c om bu st i on st a ge of t he LCA is an i m por t a nt pa r t of t he GHG r e du c t i ons a ssoc i a t e d wi t h the
use of bi ofu e ls be c a u se ty pi c a lly , t he non-fossi l ba se d CO2 e m i t t e d du r i ng c om bu st i on is c onsi de r e d to
be zero, si nc e t hi s c a r bon is c onsi de r e d as ha v ing been r e c e nt ly se qu e st e r e d fr om t he e nv i r onm e nt
du r i ng t he gr owt h of t he sou r c e or ga ni sm . Conv e r se ly , t he CO2 e m i t t e d du r i ng t he c om bu st i on of fossi l-
ba se d fu e ls is c onsi de r e d as ne wly -c r e a t e d and t he r e for e i t is a c c ou nt e d for in t he LCA. For t hi s reason,
t he r e c an be li fe c y c le GHG e m i ssi on r e du c t i ons a ssoc i a t e d wi t h t he use of c e r t a i n bi ofu e ls r e la t i v e t o
fossi l di e se l, e v e n i f t he e m i ssi ons du r i ng the fe e dst oc k and fu e l pr odu c t i on and t r a nspor t a t i on (we ll-t o-
t a nk or WTT) st a ge s are a c t u a lly hi ghe r t ha n t he y are for fossi l die sel. Thi s is i llu st r a t e d in Ta ble 6,
whi c h list s t he e ne r gy i nt e nsi t y (MJ e ne r gy i npu t v e r su s MJ e ne r gy pr odu c e d in t he fina l fu e l) of di ffe r e nt
st a ge s of t he WTT LCA for Ne st e s NE x BTL pr odu c t , r e la t i v e t o die sel, de pe ndi ng on t he fe e dst oc k. As
c a n be se e n, in t hi s one stu dy , for t he r a pe se e d and pa lm oil fe e dst oc ks, t he WTT e ne r gy i nt e nsi t y wa s
fou nd t o be highe r t ha n for di e se l81.
79Mu r phy , M. (2007). BP turns animal for renewable diesel production. The Age , pu bli she d onli ne Apr i l 16, 2007.
80 Kha li p, A. (Re u t e r s, 2008). Petrobras H-Bio output on hold due to price. Pu bli she d Ja nu a r y 16, 2008.
T a b l e 6 - W e l l - t o -t a n k e n e r g y i n t e n s i t y f o r N E xB TL a n d d i e s e l
B i o fu el
c h ai n
MJ/ MJnekbtl
p al m o i l
MJ/MJheibtl
r ap eseed o i l
MJ/MJne*btl
o i l fr o m
an i m al
w aste
F o ssi l fu el
c h ai n
M J/
MJfos fijel
fo ssi l fu el
r efer en c e
c h ai n
C u l ti v ati o n
an d
p r o c essi n g
o f r aw
m ater i al s
0 .0 2 0 .1 0 .0 0 1 C r u d e oil
p r o d u c ti o n
an d
c o n d i ti o n i n g
at so u r c e
0 .0 3
Tr an sp o r t
o f r aw
m ater i al s
0 .1 0 .0 1 0 .0 1 C r u d e oil
tr an sp o r t to
m ar kets
0 .0 1
Pr o d u c ti o n
o f N E xB TL
0 .0 7 0 .0 7 0 .0 7 C r u d e oil
r efi n i n g to
d i esel
0 .1 0
Tr an sp o r t
o f fi n al
p r o d u c t
0 .0 1 0 .0 1 0 .0 1 D i esel fu el
d i str i b u ti o n
0 .0 1
To tal 0 .2 0 .1 3 0 .0 9 0 .1 5
Ni ka nde r , S. (He lsi nki Uni v e r si t y of Te c hnology , 2008). Greenhouse gas and energy intensity o f product chain: Case transport
fuel. Ma st e r s t he si s, pu bli she d Ma y 2008.
One c ont r ov e r si a l c om pone nt of LCA is i ndi r e c t land use c ha nge s (ILUC), i.e. c ha nge s in land t ha t oc c u r
ou t si de of t he bi ofu e l su pply c ha i n in qu e st i on du e t o m a r ke t e ffe c t s. The qu e st i on of whe t he r or not to
inc lu de ILUC i nto t he LCA for bi ofu e ls c an ha v e a si gni fi c a nt i m pa c t on t he r e su lt s of t he a na ly si s82.
Fi gu r e 14 pr e se nt s t he c a r bon i nt e nsi t y (Cl, a lso known as t he GHG e m i ssi on fa c t or or globa l wa r m i ng
pot e nt i a l (GWP), gCC2-e qu i v a le nt pe r MJ of e ne r gy c ont e nt in t he fu e l) of bi odi e se l and r e ne wa ble diesel
fr om soy as c a lc u la t e d by a nu m be r of di ffe r e nt st u di e s, as a fu nc t i on of t he y e a r of t he st u dy . The da t a
poi nt s wi t h la r ge r a nge bar s in one di r e c t i on i ndi c a t e t he diffe r e nc e in t he Cl de pe ndi ng on whe t he r ILUC
ha v e been t a ke n i nt o a c c ou nt 83.
83 Hoe km a n, S. K., Br oc h, A., Robbi ns, C., Ce ni c e r os, E. (Coor di na t i ng Re se a r c h Cou nc i l - CRC, 2011). Investigation of Biodiesel
Chemistry, Carbon Footprint and Regional Fuel Quality. CRC Re por t No. AVFL-17a . Pu bli she d Fe br u a r y 2011.
180
USA Bi odi e se l
160 -- EU Bi odi e se l
Re st o f Wor ld Bi odi e se l
r
<
r
u
140 --
3
A N. Am e r i c a Re ne wa ble Di e se l
55
120
A EU Re ne wa ble Die se l
O Re fe r e nc e Di e se l
1091
cr
0)
100
rg
O
o ?
u O O
% o
OO O O
tuo 80
56
119
49
60
(1998) 74
102 136
l
81 *1
20
96 136
c 40
- 1 1 -
J
o
D
102
22
ra
83 g" *
3.7 a 100
U 20
40
63
J
1 9
63
113
37
120041
127
ERA
30
20
2005 2006 2007 2008 2009 2010
Year o f Pu b l i c ati o n
Figure 14 - Carbon intensity of biodiesel and renewable diesel from soybean oil
Not e : The nu m be r s ne x t t o e a c h da t a poi nt se r v e t o i de nt i fy t he st u dy t ha t t he da t a wa s t a ke n fr om . A fu ll li st of t he st u di e s
i nc lu de d in t he fi gu r e is gi v e n in t he sou r c e r e por t r e fe r e nc e d be low.
S ou r c e : Hoe km a n, S. K., Br oc h, A., Robbi ns, C., Ce ni c e r os, E. (Coor di na t i ng Re se a r c h Cou nc i l - CRC, 2011). Investigation
of Biodiesel Chemistry, Carbon Footprint and Regional Fuel Ouality. CRC Re por t No. AVFL-17a . Pu bli she d Fe br u a r y 2011.
Whe t he r or not t o t a ke ILUC i nt o a c c ou nt is a hot ly c ont e st e d qu e st i on pa r t i c u la r ly in t he c ont e x t of the
US RFS 2 t ha t r e qu i r e s a m i ni m u m of 20% GHG r e du c t i on r e la t i v e t o fossi l fu e ls for c onv e nt i ona l biofu e ls
and a m i ni m u m 50% r e du c t i on for so-c a lle d a dv a nc e d bi ofu e ls84 (see S e c t i on 7.1). The i nc lu si on or
e x c lu si on of ILUC int o t he LCA a na ly si s and t he ILUC c a lc u la t i on m e t hodology c an som e t i m e s be the
de c i di ng fa c t or s t ha t de t e r m i ne whe t he r a gi v e n bi ofu e l is c onsi de r e d a qu a li fy i ng fu e l u nde r t he RFS2.
The US E nv i r onm e nt a l Pr ot e c t i on Age nc y (ERA) doe s i nc lu de ILUC in its a na ly se s of di ffe r e nt fu e ls and
pa t hwa y s t o de t e r m i ne whe t he r t he y m e e t GWP be ne fi t t hr e sholds: E PA is m a ki ng t hr e shold
de t e r m i na t i ons ba se d on a m e t hodology t ha t i nc lu de s an a na ly si s of t he fu ll li fe c y c le of v a r i ou s fu els,
i nc lu di ng e m i ssi ons fr om i nt e r na t i ona l la nd-u se c ha nge s r e su lt i ng fr om i nc r e a se d bi ofu e l de m a nd.85 The
E PA has c a r r i e d ou t LCA a na ly se s for bi odi e se l and r e ne wa ble di e se l fr om soy be a n oil, bioge ni c wa st e
oi ls/fa t s/gr e a se s, a lga l oil, non-food gr a de c or n oi l and oil fr om a nnu a l ov e r c r ops and for bi odi e se l fr om
84 Mc Ma r t i n, C. a nd Noy e s, G. (2010). America Advances to Performance-Based Biofuels - The Advanced Renewable Fuels
Standard/RFS2. Whi t e Pa pe r , Pu bli she d by Cle a n Fu e ls Cle a r i nghou se , Fe br u a r y 2010.
85 Uni t e d S t a t e s E nv i r onm e nt a l Pr ot e c t i on Age nc y (E PA, 2010). EPA Lifecycle Analysis of Greenhouse Gas Emissions from Renewable
Fuels. Re gu la t or y Annou nc e m e nt , pu bli she d by t he Offi c e of Tr a nspor t a t i on a nd Ai r Qu a li t y , E PA-420-F-10-006, Fe br u a r y 2010.
c a nola oil and has fou nd all of t he se fe e dst oc ks and pr oc e sse s t o m e e t t he 50% and 20% GWP be ne fi t
t hr e sholds r e qu i r e d (t he se t hr e sholds a r e e x pla i ne d in m or e de t a il in S e c t i on 7.1)86. The E PA r e c e nt ly
r e le a se d a Not i c e of Da t a Av a i la bi li t y on it s LCA a na ly si s of bi odie se l and r e ne wa ble di e se l pr odu c e d
fr om pa lm oil, whi c h fi nds t ha t t he y do not m e e t t he m i ni m u m 20% t hr e shold, m ost ly du e t o t he im pa c t s of
ILUC87. Howe v e r , t hi s is not t he fina l ru ling and onc e i npu t is r e c e i v e d fr om e x pe r t s and indu st r y , t hi s
de t e r m i na t i on m a y c ha nge . At t hi s st a ge , t he E PA has not y e t r uled on HDRD fr om c a nola oil, r a pe se e d
oil, ja t r opha and ot he r fe e dst oc ks t ha t a r e not c om m only used in t he Uni t ed S t a t e s bu t t ha t are used
inte r na t i ona lly .
Anot he r i m por t a nt c om pone nt of t he LCA is t he a lloc a t i on of e ne r gy use and e m i ssi ons t o c o-pr odu c t s
fr om t he fe e dst oc k pr oc e ssi ng and HDRD pr odu c t i on st a ge s. The t hr e e m ost c om m on m e t hods a r e t he
phy si c a l/e ne r gy , m a r ke t and di spla c e m e nt a lloc a t i on m e t hods. The phy si c a l/e ne r gy m e t hod a lloc a t e s
e m i ssi ons ba se d on t he m a ss or e ne r gy ba la nc e of t he c o-pr odu c t s r e la t i v e t o t he pr odu c t s and is
t y pi c a lly use d whe n e ne r ge t i c c o-pr odu c t s a r e pr odu c e d (such as pr opa ne pr odu c e d dur i ng
hy dr ot r e a t m e nt of bi ofe e dst oc ks). The m a r ke t m e t hod a lloc a t e s e m i ssi ons a c c or di ng t o t he r e la t i v e
m a r ke t v a lu e of t he c o-pr odu c t s and t he pr odu c t s and i t is used for pr oc e sse s t ha t pr odu c e non-e ne r ge t i c
c o-pr odu c t s wi t h m a r ke t v a lu e (su c h as t he pr odu c t i on of soy m e a l du r i ng soy be a n pr oc e ssi ng). The
di spla c e m e nt m e t hod c onsi de r s t he a lt e r na t i v e pr odu c t (s) t ha t t he c o-pr odu c t r e pla c e s and su bt r a c t s the
e m i ssi ons a ssoc i a t e d wi t h t he di spla c e d pr odu c t s fr om t he ov e r a ll e m i ssi ons of t he pr oc e ss in qu e st ion.
The c hoi c e of t he a ppr opr i a t e c o-pr odu c t s a lloc a t i on m e t hod wi ll de pe nd on t he pr oc e ss in qu e st i on, the
t y pe s of c o-pr odu c t s pr odu c e d and t he r a t i o of pr odu c t s t o c o-pr odu c t s. No m e t hod is ide a l and the
c hoi c e of m e t hod c a n m a ke a di ffe r e nc e in t he ov e r a ll r e su lt s of up t o 25%-60%8889.
Fi gu r e 15 i llu st r a t e s t he di ffe r e nc e in LCA re su lt s, de pe ndi ng on t he c o-pr odu c t s a lloc a t i on m e thod, for
HDRD pr odu c t i on using soy be a n oil v i a t he S UPE RCE TANE and UOP E c ofi ni ng pr oc e sse s
(Re ne wa ble Di e se l I and II in t he di a gr a m , r e spe c t i v e ly ), using t he GRE E T and AS PE N m odels.
86 Uni t e d S t a t e s E nv i r onm e nt a l Pr ot e c t i on Age nc y (E PA, 2010). Supplemental Determination for Renewable Fuels Produced Under the
Final RFS2 Program From Canola Oil. Fi na l Ru le , 40 CFR Pa r t 80, [E PA-HQ-OAR-2010-133; FRL-9207-1], RIN 2060-AQ35.
Pu bli she d in t he Fe de r a l Re gi st e r , Vol. 75, No. 187, S e pt e m be r 28, 2010.
87 Uni t e d S t a t e s E nv i r onm e nt a l Pr ot e c t i on Age nc y (E PA, 2011). EPA Issues Notice of Data Availability Concerning Renewable Fuels
Produced from Palm Oil Under the RFS Program. Re gu la t or y Annou nc e m e nt , pu bli she d by t he Offi c e of Tr a nspor t a t i on a nd Ai r Qu a lit y ,
E PA-420-F-11-046, De c e m be r 2011.
88 Hoe km a n, S. K., Br oc h, A., Robbi ns, C., Ce ni c e r os, E. (Coor di na t i ng Re se a r c h Cou nc i l - CRC, 2011). Investigation of Biodiesel
Chemistry, Carbon Footprint and Regional Fuel Quality. CRC Re por t No. AVFL-17a . Pu bli she d Fe br u a r y 2011.
89 Ar gonne Na t i ona l La bor a t or y (2008). Life-Cycle Assessment of Energy and Greenhouse Gas Effects of Soybean-Derived Biodiesel and
Renewable Fuels. Pu bli she d Ma r c h 12, 2008.
0%
- 20 % - -
* -4 0 % - -
- 60 % --
- 57%
62 / -65 %____64 % -60 %
-74 %' - 66%
- 68 %
-74%
-100% - - -
- 9 4 % '
-94 %
- 1 3 0 %
1 4 0 % --
- 1 8 0 % - - -
-174%
Displacement 3 Energy Allocation 3 M ar ket Allocation 0 Hybrid
- 200%
Renewable Diesel I Renewable Diesel I I Renewable Gasoline
F i g u r e 1 5 - LC A o f HDRD fr o m so y u si n g d i f f e r e n t c o -p r o d u c t a l l o c a t i o n m eth o d s
S ou r c e : Ar gonne Na t i ona l La bor a t or y (2008). Life-Cycle Assessment o f Energy and Greenhouse Gas Effects o f Soybean-
Derived Biodiesel and Renewable Fuels. Pu bli she d Ma r c h 12, 2008.
The t y pe of pr oc e ss used t o pr odu c e HDRD is not the m ost i m por t a nt fa c t or in t he ov e r a ll e m i ssi ons.
Asi de fr om t he LCA m e t hodology use d (i.e. t he i nc lu si on or e x c lu si on of ILUC and t he m e t hod used for
c o-pr odu c t e m i ssi ons a lloc a t i on), t he t y pe of fe e dst oc k used t o pr odu c e HDRD has t he gr e a t e st i m pa c t in
t he ov e r a ll e m i ssi ons. For i nst a nc e , fe e dst oc ks li ke a ni m a l fa t and wa st e gr e a se s ha v e lowe r ov e r a ll
e m i ssi ons be c a u se t he r e are no e m i ssi ons a ssoc i a t e d wi t h c r op c u lt i v a t i on, fe r t i li za t i on use, etc.
Fi gu r e 16 pr e se nt s t he GWP of a v a r i e t y of di ffe r e nt biodi e se l and HDRD fe e dst oc ks. As c a n be se en,
HDRD fr om t a llow has t he gr e a t e st GWP be ne fi t of all fe e dst oc k t y pe s. It shou ld be note d t ha t t he r e are
v e r y fe w st u di e s on t he GHG im pa c t s of HDRD r e la t i v e t o t he nu m be r of st u di e s c a r r i e d ou t for biodie se l.
As t he use of HDRD gr ows and m or e st u di e s are c a r r i e d out, a m or e a c c u r a t e pi c t u r e of t he GHG
be ne fi t s (or di s-be ne fi t s) a ssoc i a t e d wi t h t he use of HDRD r e la t i v e t o di e se l (or bi odi e se l) will de v e lop.
Fi gu r e 17 pr e se nt s t he GWP be ne fi t, or t he pe r c e nt a ge r e du c t i on of GHG e m i ssi ons due t o t he use of a
gi v e n bi ofu e l (bi odi e se l or HDRD) i nst e a d of ULSD, for a v a r i e t y of di ffe r e nt fe e dst oc ks.
100%
B i o d i esel
R en ew ab l e D i esel
40%
20% -
So y b ean
11 S
R ap eseed
6 4
Pal m O i l
6 3
Su n fl o w er
5 2
Tal l o w Yel l o w Gr ease
125
100
75
5 0
25
0
-2 5
-5 0
1
<
&
u
0
E
1
&
2
x
%
f
3
0

b
c
)

-75
-100
17
15 IB
15
14
J - 1
1998 2004 2006
RD= Renewable Diesel from Hydro-treating
16
19
IE 1
l 18
30
22 30
W 36
38 40
M
.41__
41
24 27
X
;
40
41
25
26-
41
41
42
42
42
41
36
O Biodiesel Ren ew ab l e Diesel
Soybean R D -So y
-------------
Rapeseed
Palm Oil
- R D - Rapeseed
R D - Palm
Tall o w RD-Tall o w
Sunfl ower a SVO -C l o v e Stem Oil
R ape/Sun Mix
< Cano la
* Gasific ati o n-FTD/ DME
34
2007
Year o f Pu b l i c ati o n
2008 2009
F i g u r e 16 - GWP b en efi ts f o r b i o d i esel an d HDRD fr o m d i f f e r e n t feed sto c ks, r e l a t i v e t o d i esel
Not e : The nu m be r s u nde r e a c h ba r i ndi c a t e t he nu m be r of st u di e s whose r e su lt s we r e a v e r a ge d t o pr odu c e t he da t a ba r.
S ou r c e : Hoe km a n, S. K., Br oc h, A., Robbi ns, C., Ce ni c e r os, E. (Coor di na t i ng Re se a r c h Cou nc i l - CRC, 2011). Inv e st i ga t i on
of Bi odi e se l Che m i st r y , Ca r bon Foot pr i nt a nd Re gi ona l Fu e l Qu a li t y . CRC Re por t No. AVFL-17a . Pu bli she d Fe br u a r y 2011.
F i g u r e 17 - GWP b en efi t f o r HDRD an d b i o d i esel fr o m d i f f e r e n t feed sto c ks
Not e : The nu m be r s ne x t t o e a c h da t a poi nt se r v e t o i de nt i fy t he st u dy t ha t t he da t a wa s t a ke n fr om . A fu ll li st of t he st u di e s
i nc lu de d in t he fi gu r e is gi v e n in t he sou r c e r e por t r e fe r e nc e d be low.
Ta ble 7 be low pr e se nt s t he GHG e m i ssi on r e du c t i on fa c t or s for HDRD v e r su s a nu m be r of di ffe r e nt t y pe s
of bi odi e se l, as c a lc u la t e d usi ng t he GHGe ni u s LCA m ode l v 3.19.
T a b l e 7 - E m i ssi o n r e d u c t i o n f a c t o r s f o r HDRD an d b i o d i esel r e l a t i v e t o ULSD
Ca na da c a nola bi odi e se l (kg C02e /L) 3.012
Ca na da soy bi odi e se l (kg CC2e /L) 2.704
Ca na da t a llow bi odi e se l (kg CC2e /L) 3.228
US S oy bi odi e se l (kg CC2e /L) 2.463
Ne st e Ne x BTL pa lm oil HDRD (kgCC2e /L) 1.470
S ou r c e : The se e m i ssi on r e du c t i on fa c t or s, c a lc u la t e d u si ng GHGe ni u s 3.19, we r e pr ov i de d by NRCa n t o c oRe ssou r c e s in
2010 in t he c ont e x t of a st u dy for E nv i r onm e nt Ca na da e nt i t le d: Updating the Cost-Benefit Analysis o f the Proposed 2%
Renewable Fuels Regulation.
Cont r a r y t o t he da t a in Fi gu r e s 16 and 17, e m i ssi on r e du c t i ons as c a lc u la t e d by GHGe ni u s a ppe a r t o be
le ss for HDRD t ha n for bi odi e se l. Howe v e r , i t shou ld be not e d t ha t t he e m i ssi on r e du c t i on fi gu r e s
pr e se nt e d in t hi s se c t i on are c om pa r i ng di ffe r e nt fe e dst oc ks, di ffe r e nt pa t hwa y s, di ffe r e nt LCA
m e t hodologi e s, etc. Aga i n, as m e nt i one d abov e, t he wa y in whi c h c o-pr odu c t s are t r e a t e d in t he LCA
c a n also ha v e a si gni fi c a nt i m pa c t on t he r esult s. Most of t he m or e r e c e nt st u di e s pr e se nt e d in Figu r e s
16 and 17 ha v e fou nd t ha t biodie se l and HDRD fr om m ost of t he m or e c om m only -u se d fe e dst oc ks ha v e
a GWP be ne fi t of a t le a st 50%, whi c h qu a li fi e s t he m as Ty pe A and B fu e ls u nde r RFS2. Howe v e r , t he se
st u di e s di d not t a ke i nto a c c ou nt ILUC, whi c h is i nc lu de d in t he E PA LCA c a lc u la t i on for t he RFS2. In
Ca na da , r e ne wa ble fu e ls used t o m e e t t he r e qu i r e m e nt s of t he Renewable Fuels Regulations are not
c u r r e nt ly r e qu i r e d t o de m onst r a t e m i ni m u m GHG e m i ssi on benefi ts.
4. Fuel pr ope r t i e s
As wa s di sc u sse d in t he pr e v i ou s se c t i on, t he c he m i c a l pr ope r t i e s of HDRD di ffe r si gni fi c a nt ly fr om t hose
of bi odi e se l. HDRD is m a de up of sa t u r a t e d pa r a ffi ni c a lka ne s, whe r e a s bi odie se l is c om pr i se d of m e thy l
e st e r s. The m ost i m por t a nt di ffe r e nc e s are t ha t m e t hy l e st e r s c ont a i n ox y ge n and t ha t t he a li pha t i c c ha i n
on t he e st e r c an c ont a i n v a r i ou s de gr e e s of u nsa t u r a t i on (C=C dou ble bonds). Thi s has a si gni fi c a nt
i m pa c t on t he phy si c a l pr ope r t i e s of t he fuel.
Ta ble 8 pr ov i de s a c om pa r i son of som e of t he pr ope r t i e s of ULSD, bi odi e se l and HDRD. It shou ld be
note d t ha t t he fi gu r e s shown in t hi s t a ble a r e a v e r a ge s and m a y v a r y de pe ndi ng on t he fe e dst oc k and t he
pr oc e ssi ng pa t hwa y and c ondi t i ons. As e x pe c t e d, t he ox y ge n c ont e nt in ULS D and HDRD is zero,
whe r e a s i t is a bou t 11 we i ght % (wt %) for bi odi e se l. As se e n pr e v i ou sly , t hi s is t he r e a son for t he gr e a t e r
ox i da t i v e i nst a bi li t y of bi odie se l r e la t i v e t o ULS D and HDRD. The c a r bon c ont e nt by we i ght of bi odi e se l
is lowe r and c onse qu e nt ly , t he e ne r gy c ont e nt by we i ght is lower . As c an be se e n in t he ta ble , the
e ne r gy c ont e nt of bi odi e se l is a ppr ox i m a t e ly 39 MJ/kg, whi le i t is c lose r t o 43-44 MJ/kg for ULS D and
HDRD. Howe v e r , HDRD has a lowe r spe c i fi c gr a v i t y t ha n bi odi e se l and ULS D (in pa r t du e t o i ts la c k of
a r om a t i c s), whi c h m e a ns t ha t t he e ne r gy c ont e nt by v olu m e is only sli ght ly highe r t ha n t ha t of biodi e se l
(-121,000-122,000 BTU/ga l), whi c h is le ss t ha n t ha t of ULS D (-130,000 BTU/ga l). Thi s m e a ns t ha t
m or e bi odi e se l or HDRD m u st be used t o ge t t he sa m e e ne r gy ou t pu t as ULSD. It c an a lso be se e n in
the t a ble t ha t t he c e t a ne nu m be r of HDRD, whi c h is a m e a su r e of c om bu st i on qu a lit y , is si gni fi c a nt ly
hi ghe r t ha n t ha t of ULS D or bi odi e se l (70-90 v e r su s 40-55, r e spe c t i v e ly ). ULS D ble nde d wi t h HDRD will
t he r e for e be ne fi t fr om an i m pr ov e d c e t a ne num ber.
T a b l e 8 - P r o p e r t i e s o f ULSD, b i o d i esel an d HDRD ( r e n e w a b l e d i e se l )
Pr o p er ty N o . 2 Petr o l eu m
U L S D
B i o d i esel
(F A M E )
R e n e w a b l e D i esel
C ar b o n , w t% 8 6.8 76.2 8 4 .9
Hy d r o g en , w t% 1 3 .2 1 2 .6 1 5 .1
O xy g en , w t% 0 .0 1 1 .2 0 .0
Sp ec i fi c Gr av i ty 0 .8 5 0 .8 8 0 .78
C etan e N o 4 0 -4 5 4 5 -5 5 70 -90
Tg c .'C 3 0 0 -3 3 0 3 3 0 -3 60 2 90 -3 0 0
Vi sc o si ty , m m 2/sec . @ 4 0 <C 2 -3 4 -5 3 -4
E n er g y C o n ten t (LHV)
M ass b asi s, M J/kg 4 3 3 9 4 4
M ass b asi s, B TU /l b . 1 8 , 5 0 0 1 6, 60 0 1 8 , 90 0
Vo l . b asi s, 1 0 0 0 B TU /g al 1 3 0 1 2 1 1 2 2
It shou ld a lso be not e d t ha t du e t o t he lowe r c ont e nt of su lfu r and a r om a t i c s, t he lu br i c i t y of HDRD is
lowe r t ha n ULS D and a ddi t i v e s m u st be used in or de r t o e nsu r e t ha t t he fu e l m e e t s lu br i c i t y st a nda r ds.
Howe v e r , t hi s is not a si gni fi c a nt c onc e r n si nc e a ddi t i v e s m u st a lso be use d wi t h ULS D a ny wa y in or de r
for i t t o m e e t fu e l st a nda r ds for lu br i c i t y . Most HDRD pr odu c e r s wi ll c or r e c t t he lu br i c i t y be for e sa le t o
e nsu r e t ha t t he i r pr odu c t sold m e e t s e x i st i ng fu e l st a nda r ds.
For all di e se l fu e ls, inc lu di ng ULSD, bi odi e se l and HDRD, t he cold flow pr ope r t i e s of t he fu e l are an
e x t r e m e ly i m por t a nt pa r a m e t e r . S e di m e nt and wa x for m a t i on t ha t r e du c e t he flowa bi li t y of a fu e l c an
oc c u r for a nu m be r of r e a sons. Mole c u le s a t the high end of t he di e se l m e lt i ng poi nt r a nge for m e d dur ing
t he pr odu c t i on pr oc e ss will di c t a t e t he c lou d poi nt of t he r e su lt i ng pr odu c t . At low t e m pe r a t u r e s, t he se
high m e lt i ng poi nt m ole c u le s c r y st a lli ze and e v e nt u a lly a ggr e ga t e . The c lou d poi nt is t he t e m pe r a t u r e a t
whi c h t he c r y st a ls be c om e v i si ble (or gr e a t e r t ha n 0.5 pm), bu t t he fuel m a y sti ll flow. The pou r poi nt is
t he t e m pe r a t u r e a t whi c h t he fuel c an no longe r flow or be pu m pe d9091.
As di sc u sse d pr e v i ou sly , t he c lou d poi nt of HDRD (and ULS D) c a n be m a na ge d by i som r i sa t i on a nd/or
c r a c ki ng of high m e lt i ng a lka ne s. Howe v e r , t he se t e c hni qu e s do not wor k for bi odi e se l be c a u se the
c lou d poi nt is gov e r ne d by t he c onc e nt r a t i on of sa t u r a t e d m e t hy l est e r s, whi c h is de t e r m i ne d by the
fe e dst oc k t y pe . A nu m be r of t e c hni qu e s t o i m pr ov e t he c old flow pr ope r t i e s of bi odi e se l a r e c u r r e nt ly
being i nv e st i ga t e d, m ost of whi c h i nv olv e som e v a r i a t i on of fr a c t i ona t i on. Fr a c t iona t i on, whi le e ffe c t i v e , is
not ide a l as i t r e m ov e s hi gh-m e lt i ng sa t u r a t e d e st e r s fr om t he ble nd e nt i r e ly , lowe r i ng pr odu c t yie ld. For
t he m om e nt , t he c old flow pr ope r t i e s of bi odi e se l are m a na ge d by dilu t ion wi t h ke r ose ne or je t fu e l or by
t he use of a ddi t i v e s, both of whi c h a r e e x pe nsi v e and r e qu i r e m oni t or i ng and t e st i ng a t t he ble ndi ng
fa c i li t y in or de r t o e nsu r e t ha t t he ble nd m e e t s st a nda r ds spe c i fi c a t i ons. The fa c t t ha t t he c old flow
pr ope r t i e s of HDRD c an be c ont r olle d pr e di c t a bly dur i ng t he pr odu c t i on st a ge is an i m por t a nt a dv a nt a ge .
Anot he r i ssu e t ha t c an a ffe c t flowa bi li t y is t he ox i da t i v e st a bi li t y of t he fuel. De pe ndi ng on it s ox y ge n
c ont e nt and de gr e e of u nsa t u r a t i on, bi odie se l has a t e nde nc y t o ox i di ze du r ing st or a ge , t r a nspor t a t i on
a nd/or di st r i bu t i on. The ox i da t i on pr odu c t s c an lead t o se di m e nt for m a t i on, whi c h c a n clog fi lt e r s and
c a u se c or r osi on. Ox i da t i v e st a bi li t y is not an i ssu e wi t h ULS D and HDRD be c a u se t he y are c om pr i se d of
fu lly sa t u r a t e d hy dr oc a r bons92.
Finally, t he pr e se nc e of i m pu r i t i e s su c h as m onogly c e r i de s, st e r ol glu c osi de s and gly c e r i ne in biodie se l
a lso c ont r i bu t e t o flowa bi li t y pr oble m s as t he y pr e c i pi t a t e ou t of t he fu e l a t lowe r t e m pe r a t u r e s. Aga i n,
du e t o t he r e m ov a l of ox y ge n du r i ng t he hy dr ot r e a t m e nt pr oc e ss, t he se i m pu r i t i e s a r e not pr e se nt in
ULS D and HDRD.
The r e a r e a nu m be r of ot he r i m por t a nt pr ope r t i e s t ha t ha v e an i m pa c t on fu e l qu a li t y and t he se will be
di sc u sse d in t he c ont e x t of fu e l st a nda r ds in t he followi ng se c t ion.
90 Cha ndle r , John Sr. (2011). Flowability: A Complex Issue. Bi odi e se l m a ga zi ne . Pu bli she d Ja nu a r y 12, 2011.
91 Du nn, R. 0. (2011). Improving the Cold Flow Properties of Biodiesel by Fractionation. S oy be a n - Appli c a t i ons a nd Te c hnology . Apr i l,
2011, pa ge 211. ht t p://www.i nt e c hope n.c om /a r t i c le s/show/t i t le /i m pr ov i ng-t he -c old-flow-pr ope r t i e s-of-bi odi e se l-by -fr a c t i ona t i on
92 ULS D a lso c ont a i ns a r om a t i c hy dr oc a r bons, whi c h a r e c a r bon r i ngs t ha t a r e not fu lly sa t u r a t e d bu t a r e v e r y st a ble a nd t he r e for e ha v e
si m i la r ox i da t i v e st a bi li t y a s pa r a ffi ns.
5. Fuel st a nda r ds
In Nort h Am e r i c a , fu e l st a nda r ds are gov e r ne d by AS TM Int e r na t i ona l in t he Unit e d S t a t e s and t he
Ca na di a n Ge ne r a l S t a nda r ds Boa r d (CGS B) in Ca na da . In E u r ope, fu e l st a nda r ds are se t by the
E u r ope a n Com m i t t e e for S t a nda r di za t i on (CEN). In a ddi ti on, a c onsor t i u m of a u t om a ke r s and e ngi ne
m a ke r s fr om t he Uni te d S ta t e s, E u r ope and Ja pa n has also de v e lope d t he i r own Wor ldwi de Fuel Cha r t e r
(WWFC) t ha t a i m s t o pr ov i de a u nifor m st a nda r d a c r oss ju r i sdi c t i ons. Cu r r e nt ly , t he r e are no st a nda r ds
t ha t ha v e been de v e lope d u ni qu e ly for FIDRD, ne a t or ble nde d. FIDRD is c om pr i se d of t he sa m e t y pe s of
hy dr oc a r bons as c onv e nt i ona l di e se l and t he r e for e is su bje c t t o t he sa m e fu e l st a nda r ds as No. 2 die sel
or ULS D: CGS B 3.517 in Ca na da , AS TM D975 in t he Uni t e d S t a t e s and EN 590 in E u r ope 93.
The CGS B, AS TM, CE N and WWFC ha v e de v e lope d st a nda r ds spe c i fi c a lly for bi odie se l and bi odi e se l
ble nds be c a u se of t he fa c t t ha t i t is c he m i c a lly a di ffe r e nt t y pe of fu e l, being c om pr i se d of m e thy l e st e r s
inst e a d of hy dr oc a r bons, and be c a u se of t he t y pe s of i m pu r i t i e s t ha t a r e t y pi c a lly fou nd in bi odi e se l, but
not in ULS D or HDRD. The st a nda r ds for B100 a r e AS TM 6751 and CAN/CGS B 3.524-201194 for the
Uni t e d S t a t e s and Ca na da , r e spe c t i v e ly . In a ddi t i on t o t he usual t e st s for ULS D st a nda r ds, bi odi e se l
st a nda r ds a lso i nc lu de t e st s for gly c e r ine , m ono-, di- and t r i gly c e r i de s, Gr ou p I and II m eta ls,
phosphor ou s, poly u nsa t u r a t e d m e t hy l e st e r s, m e t ha nol and ox i da t i v e st a bi li t y , a m ongst ot he r s. The se
di ffe r e nc e s c a n be se e n in Ta ble 9, whi c h pr ov i de s a c om pa r i son of t he fu e l st a nda r ds t ha t gov e r n ULSD
(No. 2 die sel), HDRD and bi odi e se l95.
The r e a lso e x i st fu e l st a nda r ds in t he Unit e d S t a t e s and Ca na da for bi odie se l ble nds (CGS B 3.520 and
AS TM D975 for B0-B5, CGS B 3.522 and AS TM D7467 for B6-B20). In E u r ope t he r e is only t he EN
14214 for B1009697.
It shou ld be note d t ha t c lou d poi nt is not e x pli c i t ly de fi ne d in CGS B and AS TM st a nda r ds for ULS D and
bi odi e se l. The r e a r e st a nda r d t e st i ng m e t hods for m e a su r i ng a fu e ls c lou d poi nt and t he v e ndor is
r e qu i r e d t o r e por t t he c lou d poi nt of t he i r produ c t . For e x a m ple , CGS B 3.517-2007 st a t e s t hat:
Low-t e m pe r a t u r e flow pr ope r t i e s of t he fu e l sha ll be de si gne d t o giv e sa t i sfa c t or y pe r for m a nc e a t the
t e m pe r a t u r e s i ndi c a t e d by t he 2.5% low-e nd de si gn t e m pe r a t u r e da t a for t he pe r i od and loc a t i on of
i nt e nde d use. The followi ng sha ll be r e por t e d:
93 S ou r c e : Hoe km a n, S. K., Ge r t le r , A. W., Br oc h, A., a nd Robbi ns, C. (2009). Investigation of Biodistillates as Potential Blendstocks for
94 Thi s st a nda r d is spe c i fi c a lly for B100 t ha t is i nt e nde d t o be ble nde d wi t h m i ddle di st i lla t e fu e ls.
96 Cha ndle r , John Sr. (2011). Flowability: A Complex Issue. Bi odi e se l m a ga zi ne . Pu bli she d Ja nu a r y 12, 2011.
97 In 2009. CE N pu bli she d Wor kshop Agr e e m e nt CWA 15940, Wor kshop 38. Alt hou gh t he CWA is not a n offi c i a l st a nda r d, bu t a doc u m e nt
a gr e e d u pon by a Wor kshop, CWA 15940 c ov e r s pa r a ffi ni c di e se l fu e l ba se d on sy nt he si s ga s (i.e . FT fu e ls fr om na t u r a l ga s, c oa l, or
bi om a ss) a nd on hy dr ot r e a t m e nt of v e ge t a ble or a ni m a l oi ls, a nd is be i ng u se d on a v olu nt a r y ba si s a s a fu e l spe c i fi c a t i on.
a) The 2.5% low-e nd t e m pe r a t u r e t o whi c h t he fu e l is de si gne d;
b) The t e st m e t hod used t o de t e r m i ne t he ope r a bi li t y t e m pe r a t u r e :
i. Clou d poi nt (AS TM D 2500 or D 5773 ); or
ii. Wa x a ppe a r a nc e poi nt (AS TM D 3117); or
i i i . Low-t e m pe r a t u r e flow t e st (LTFT) for di e se l fu e ls (CAN/CGS B-3.0 No. 140.1 ).
c) The t e st m e t hod r e su lt .98
Alt hou gh t he r e are no se pa r a t e st a nda r ds for HDRD, in t he Uni t e d S t a t e s HDRD pr odu c e r s m u st r e gi st e r
t he i r pr odu c t wi t h t he ERA, whi c h c an t a ke fr om si x m ont hs t o a year:
The Cle a n Ai r Ac t pr ov i de s ERA wi t h t he a u t hor i t y t o r e gu la t e fu e ls and fu e l a ddi t i v e s in or de r t o re du c e
t he r i sk t o pu bli c health. The r e gu la t i ons a t 40 CFR Pa r t 79 r e qu i r e t ha t e a c h m a nu fa c t u r e r or i m por t e r of
ga soli ne , die se l fu e l, or a fu e l a ddi t i v e , ha v e it s pr odu c t r e gi st e r e d by E PA pr i or t o its i nt r odu c t i on i nt o
c om m e r c e . Re gi st r a t i on i nv olv e s pr ov i di ng a c he m i c a l de sc r i pt i on of t he pr odu c t and c e r t a i n t e c hni c a l,
m a r ke t i ng and he a lt h-e ffe c t s i nfor m a t i on. Thi s a llows E PA t o i de nt i fy t he li ke ly c om bu st i on and
e v a por a t i v e e m i ssi ons. In c e r t a i n c a se s, he a lt h-e ffe c t s t e st i ng is r e qu i r e d for a pr odu c t t o m a i nt a i n its
r e gi st r a t i on or be for e a ne w pr odu c t c a n be r e gi st e r e d. E PA use s t hi s i nfor m a t i on t o i de nt i fy pr odu c t s
whose e m i ssi ons m a y pose an u nr e a sona ble r i sk t o pu bli c health, wa r r a nt i ng fu r t he r i nv e st i ga t i on a nd/or
re gu la t i on. The r e gi st r a t i on r e qu i r e m e nt s are or ga ni ze d in a t hr e e -t i e r st r u c t u r e . In ge ne r a l, st a nda r d
m a nda t or y r e qu i r e m e nt s a r e c ont a i ne d in t he fi r st t wo ti e r s, whi le t he t hi r d t i e r pr ov i de s for a ddi t i ona l
t e st i ng on a c a se -by -c a se ba si s.99
98 Ca na di a n Ge ne r a l S t a nda r ds Boa r d (CGS B, 2007). CAN/CGSB 3.517-2007 - Automotive (on-road) diesel fuel. Pu bli she d Ju ly 2007.
99 Re ne wa ble Di e se l S u bc om m i t t e e of t he Wa shi ngt on S t a t e De pa r t m e nt of Agr i c u lt u r e Te c hni c a l Wor k Gr ou p (2007). Renewable Diesel
Technology. Pu bli she d Ju ly 25, 2007.
Tabl e 9 - CGSB, A STM a nd CBN s tandards for No . 2 diesel a nd B 100
No. 2 d iesel B i o d i esel (B 1 0 0 )
Pr o p er ty U n i t M ax/
Min
C GSB 3 .5 1 7 -
20 07
A STM 975 E N 5 90 C GSB 3 .5 2 4 -
2011
A STM 6751 EN 1 4 2 1 4
Wa t e r a nd se di m e nt % v ol m a x 0.05 0.05 0.02 w/w 400 ppm m a ss
wa t e r
0.05 0.05 w/w
Tot a l c ont a m i na t i on ppm m a x 24 20 m g/L
pa r t i c u la t e s
24
Ki ne m a t i c v i sc osi t y , 40C m m 2/s 1.7-4.1 1.9 - 4 . 1 2 . 0 - 4 . 5 1.9-6.0 1.9-6.0 3.5-5.0
Fla sh poi nt , c lose d c u p C m i n 40 52 55 93 93 120
Me t ha nol we i ght % m a x 0.20 0.20 0.2
Ce t a ne nu m be r m i n 40 40 51 Re por t 47 51
Ce t a ne i nde x m i n 40 46
S u lfa t e d a sh we i ght % m a x 0.01 0.02 0.02
Tot a l a sh we i ght % m a x 0.01 0.01 0.01
Gr ou p I m e t a ls m g/kg m a x 4 5 5
Gr ou p II m e t a ls m g/kg m a x 2 5 5
Tot a l su lfu r m g/kg m a x 15 15 10 Re por t 15 10
Phosphor ou s m g/kg m a x 4 10 10
Ac i d nu m be r m g KOH/g m a x 0.10 0.5 0.5 0.5
Ca r bon r e si du e we i ght % m a x 0.15 0.35 0.3 0.05 0.05 0.3
Fr e e gly c e r i n we i ght % m a x 0.02 0.02 0.02
Tot a l gly c e r i n we i ght % m a x 0.24 0.24 0.25
Monogly c e r i de s we i ght % 0.8
Di gly c e r i de s we i ght % 0.2
Tr i gly c e r i de s we i ght % 0.2
No. 2 d iesel B i o d i esel (B 1 0 0 )
Pr o p er ty U n i t M ax/
Min
C GSB 3 .5 1 7 -
2 0 07
A STM 975 E N 5 90 C GSB 3 .5 2 4 -
2011
A STM 6751 EN 1 4 2 1 4
Di st i lla t i on, 90% r e c ov e r e d C m a x 290 282-338 360 (95%
r e c ov e r y )
360
Coppe r st r i p c or r osi on 3 hr @ 50C m a x No. 1 No. 3 No. 1 No. 3 No. 1
Ox i da t i on st a bi li t y hr s @ 110C m i n 8 3 6
Li nole ni c a c i d m e t hy l e st e r we i ght % m a x 12
E st e r c ont e nt we i ght % 0 - 5 (m a x ) 96.5 (m i n)
Iodi ne nu m be r gb/IOOg m a x 120
De nsi t y kg/m 3 820 - 845 Re por t 860-900
Ar om a t i c s % v olu m e m a x 35
Lu br i c i t y a t 60C WS D,
m i c r ons
m a x 520 460
Poly c y c li c a r om a t i c hy dr oc a r bons we i ght % m a x 11
Clou d poi nt * C m a x wi nt e r : -5C;
su m m e r : 3C
Cold fi lt e r plu ggi ng poi nt C m a x wi nt e r : -15C;
su m m e r : -5C
c ou nt r y -
spe c i fi c
Cold soa k fi lt e r a bi li t y se c onds m a x 240 360
Cold soa k fi lt e r bloc ki ng t e nde nc y CS FBT
nu m be r
m a x 1.8
*Clou d poi nt i s not e x pli c i t ly spe c i fi e d in t he AS TM a nd CGS B fu e l st a nda r ds. S e e m a i n t e x t for m or e de t a i ls.
S ou r c e s: Hoe km a n, S. K., Ge r t le r , A. W., Br oc h, A., a nd Robbi ns, C. (2009). Investigation o f Biodistillates as Potential Blendstocks for Transportation Fuels. De se r t Re se a r c h
Inst i t u t e , CRC Pr oje c t nu m be r AVFL-17, pu bli she d Ju ne 2009.
Ca na di a n Ge ne r a l S t a nda r ds Boa r d (CGS B, 2007). CAN/CGSB 3.517-2007- Automotive (on-road) diesel fuel. Pu bli she d Ju ly 2007.
Ca na di a n Ge ne r a l S t a nda r ds Boa r d (CGS B, 2011). CAN/CGSB 3.524-2011 - Biodiesel (B100) for blending with middle distillate fuies. Pu bli she d De c e m be r 2011.
Bi ofu e ls S y st e m s Gr ou p Lt d (2011). Biodiesel Standards. We bsi t e c onsu lt e d Fe br u a r y 3rd, 2011. ht t p://www.bi ofu e lsv st e m s.c om /bi odi e se l/spe c i fi c a t i on.ht m
6. Infr a st r u c t u r e and e qu i pm e nt c om pa t i bi li t y
6.1 In fr astr u c tu r e c o m p ati b i l i ty
As has been di sc u sse d in t he pr e v i ou s se c t i on, HDRD is a fu e l t ha t is fu lly fu ngi ble wi t h ULS D du e t o its
pa r a ffi ni c phy si c a l pr ope r t i e s. As a r e su lt of it s fu lly fu ngi ble pr ope r t i e s, t he r e a r e no di st i nc t fu e l pr ope r t y
st a nda r ds for HDRD as t he r e are for bi odi e se l, si nc e HDRD is gov e r ne d by t he sa m e fu e l st a nda r ds as
t hose for ULSD. As di sc u sse d in t he pr e v i ou s se c t i on, t he r e are no known c om pa t i bi li t y , wa r r a nt y or
e m i ssi ons i ssu e s as long as t he fi na l HDRD pr odu c t or ble nd m e e t s ULS D st a nda r ds.
The c he m i c a l pr ope r t i e s of bi odie se l and t he pot e nt i a l c ont a m i na t i on by t r a c e a m ou nt s of gly c e r i ne can
pot e nt i a lly c a u se st or a ge and ope r a bi li t y issu e s. Re fi ne r s t ha t wi sh t o ble nd ULS D wi t h biodie se l are
re qu i r e d t o i nst all ne w st or a ge and ble ndi ng i nfr a st r u c t u r e wi t h t wo ma in pu r pose s: 1) ke e p bi odie se l
se pa r a t e fr om ot he r fu e l st oc ks, e spe c i a lly je t fu e l and high spe c fu e ls, t o pr e v e nt c ont a m i na t i on; 2) keep
bi odie se l wa r m t o pr e v e nt se di m e nt for m a t i on. A 2010 st u dy by c oRe ssou r c e s for NRCa n fou nd t ha t
t he ne c e ssa r y i nfr a st r u c t u r e r e qu i r e d t o ble nd su ffi c i e nt a m ou nt s of bi odi e se l t o m e e t t he 2% r e qu i r e m e nt
of t he Renewable Fuels Regulations a m ou nt e d t o a ppr ox i m a t e ly CAD 180 m i lli on (a sm a ll a m ou nt of
t he se c a pi t a l c ost s we r e for HDRD r e c e i pt and st or a ge ). Thi s st u dy a lso fou nd t ha t t he e st i m a t e d a nnu a l
c ost s of a ddi t i ona l ke r ose ne r e qu i r e d for ble nding wi t h bi odie se l (in or de r t o m e e t c lou d poi nt
spe c i fi c a t i ons) a m ou nt e d t o CAD 33 m i lli on. Whe n ble ndi ng wi t h HDRD, t he r e is no need for a ddit i on of
ke r ose ne t o m e e t c lou d poi nt spe c i fi c a t i ons (pr ov i de d wi nt e r gr a de HDRD is use d for c old we a t he r use).
The r e is no nee d for he a t e d t r a nspor t a t i on and st or a ge i nfr a st r u c t u r e for HDRD as t he r e is for biodie se l.
The r e is a lso no need t o c le a n t r u c k, rail and m a r i ne t a nks e a c h t i m e bi oi di e se l is t r a nspor t e d. HDRD
c ou ld pot e nt i a lly be t r a nspor t e d by pi pe li ne wi t hou t c onc e r ns a bou t t r a i lba c k c ont a m i na t i on100.
S om e i nfr a st r u c t u r e a ddi t i ons or m odi fi c a t i ons are ne c e ssa r y whe n ha ndli ng HDRD, bu t t he se a r e m ost ly
for i nv e nt or y pu r pose s, su c h as ne w r e c e i pt and st or a ge fa c i li t i e s. Conc e r ns for c r oss-pr odu c t
c ont a m i na t i on and c old-we a t he r se di m e nt for m a t i on du r ing pe r i ods of long-t e r m st or a ge are no m or e of
an i ssu e t ha n t he y are for c onv e nt i ona l fu e ls101.
Of c ou r se , i f HDRD pr odu c t i on is t o t a ke pla c e a t or ne a r t he re fi ne r y , t he r e wou ld be a need for
a ddi t i ona l i nfr a st r u c t u r e for t he HDRD pr odu c t i on, as we ll as fa c i li t i e s for t he t r a nspor t a t i on, r e c e i pt and
st or a ge of t he fe e dst oc k. As wa s se e n e a r li e r , t he a v a i la bi li t y of su ffi c i e nt fe e dst oc k is t he m ost i m por t a nt
de t e r m i ni ng fa c t or for an HDRD pr odu c t i on fa c i li t y , as is t he a bi li t y t o t r a nspor t i t e ffi c i e nt ly . Aga i n, as
wa s se e n, r e fi ne r y pa r t ne r shi ps wi t h fe e dst oc k pr ov i de r s are one solu t i on t ha t pr ov i de s a st a ble su pply of
fe e dst oc k (m i ni m i zi ng t he on-si t e fe e dst oc k st or a ge r e qu i r e m e nt s). Ty pi c a lly , i t is t he r e sponsi bi li t y of the
fe e dst oc k pr ov i de r t o a r r a nge for t r a nspor t a t i on of its pr odu c t - HDRD pr odu c e r s m u st e nsu r e t ha t
su ffi c i e nt road, rail or m a r i ne t r a nspor t a t i on i nfr a st r u c t u r e e x i st s and i f not t ha t i t be pu t in place.
100 c oRe ssou r c e s Consu lt a nt s (2010). National Renewable Diesel Initiative Infrastructure Project. Pr e pa r e d for Na t u r a l Re sou r c e s
Ca na da , Ma y 2010.
6.2 E qu i p m en t c o m p ati b i l i ty
In ge ne r a l, HDRD has bee n fou nd t o ha v e li t t le or no e qu i pm e nt ope r a bi li t y i ssu e s. In Ca na da , t he
fe de r a l gov e r nm e nt as we ll as t he pe t r ole u m and r e ne wa ble fu e ls i ndu st r i e s wor ke d t oge t he r on t wo
ini t i a t i v e s t ha t sou ght t o c ont r i bu t e t o e x i st i ng knowle dge on t he phy si c a l and ble nding c ha r a c t e r i st i c s of
r e ne wa ble fu e ls: t he Renewable Diesel Characterization Study102 and t he Alberta Renewable Diesel
Demonstration103. The fi r st i ni t i a t i v e foc u se d on t e st i ng t he phy si c a l pr ope r t i e s of a v a r i e t y of r e ne wa ble
a lt e r na t i v e s t o di e se l and t he se c ond foc u se d on t e st i ng t he on-t he -gr ou nd ope r a bi li t y of a v a r i e t y of
v e hi c le s using di ffe r e nt r e ne wa ble a lt e r na t i v e s t o diesel.
The Renewable Diesel Characterization Study t e st e d t hr e e ne a t HDRD sa m ple s and fou nd t he followi ng
r esu lt s: All t hr e e HDRD sa m ple s showe d qu a li t y c ha r a c t e r i st i c s si m i la r t o pe t r ole u m die se l. All t hr e e of
t he HDRD sa m ple s t e st e d fa v ou r a bly for all qu a li t y pa r a m e t e r s, wi t h t he e x c e pt i on of e le c t r ic a l
c ondu c t i v i t y and lu br i c i t y ... It shou ld be note d t ha t pe t r ole u m di e se l is nor m a lly t r e a t e d wi t h lu br i c i t y and
e le c t r i c a l c ondu c t i v i t y a ddi t i v e s pr i or t o sa le and t he r e for e t he low lu br i c i t y of t he HDRD fu e l doe s not
si gni fy a fa i lu r e t o m e e t CAN/CGS B spe c i fi c a t i ons... All we r e hi gh in Ce t a ne qu a li t y . Finally , the
i som e r i ze d hy dr oge na t i on de r i v e d r e ne wa ble di e se l sa m ple had t he m ost a t t r a c t i v e cold t e m pe r a t u r e
a t t r i bu t e s.104
For t he Alberta Renewable Diesel Demonstration, a t e m por a r y c om m e r c i a l ble ndi ng fa c i li t y wa s i nst a lle d
a t She ll Ca na da s S he r wood Ma r ke t i ng Te r m i na l in E dm ont on Albe r t a t ha t wou ld a llow r a c k loa di ng and
i n-li ne ble nding of bi odi e se l and HDRD a t 2% in t he wi nt e r m ont hs and 5% in t he su m m e r m onths.
Ble nde d fu e ls in t he a m ou nt of 1.6 m i lli on lit r e s we r e di spe nse d fr om a v a r i e t y of pa r t i c i pa t i ng c a r dloc ks.
A fle e t of 75 v e hi c le s we r e use d in t he t e st , in whi c h 29 ran on bi odi e se l, 30 on HDRD and 16 c ont r ol
v e hi c le s r an on ULSD. The fle e t v e hi c le s spa nne d Cla ss 8 t r a nspor t t r u c ks wi t h and wi t hou t e x ha u st
a ft e r -t r e a t m e nt t e c hnologi e s (pr e - and post 2007 mode l y e a r unit s), sc hool buses, a v a r i e t y of de li v e r y
t r u c ks and a gr ou p of he a v y -du t y oi lfi e ld se r v i c e s v e hi c le s. All pa r t i c i pa t i ng v e hi c le s we r e 2002 model
y e a r or la t e r . The r e su lt s of t he st u dy fou nd no v e hi c le ope r a bi li t y issu e s wi t h t he use of HDRD u nde r
t he c ondi t i ons t e st e d.105
In Ge r m a ny , Da i m le r AG, De u t sc he Post DHL, t he e ne r gy gr ou p OMV, t he S t u t t ga r t e r S t r a i le nba hne n
AG pu bli c t r a nspor t a t i on c om pa ny and Ne st e Oil c ondu c t e d a y e a r -long pi lot pr oje c t t o t e st t he ope r a bi li t y
of t he NE x BTL fu e l u nde r e v e r y da y c ondi t i ons in Ge r m a ny . The pr oje c t i nv olv e d fi v e m e di u m -du t y t r u c ks
a nd 5 he a v y -du t y t r u c ks ope r a t e d by De u t sc he Post DHL and fou r c i t y bu se s ope r a t e d by S t u t t ga r t e r
S t r a i le nba hne n AG pu bli c t r a nspor t a t i on c om pa ny , all Me r c e de z-Be nz v e hi c le s. The v e hi c le s we r e used
in urban, i nt e r -c i t y and long-di st a nc e a ppli c a t i ons and for one year, t he y we r e run e x c lu si v e ly on ne a t
NE x BTL. Aft e r one m i lli on kilom e t e r s t r a v e lle d, no v e hi c le ope r a bi li t y issu e s we r e e nc ou nt e r e d. The
r e su lt s fr om t he fi r st y e a r of t e st i ng show t ha t t he fu e l wor ks pe r fe c t ly in Me r c e de s-Be nz t r u c ks and bu se s
103 Cli m a t e Cha nge Ce nt r a l, 2009. Alberta Renewable Diesel Demonstration. Pu bli she d Fe br u a r y 2009.
105 Cli m a t e Cha nge Ce nt r a l (2009). Alberta Renewable Diesel Demonstration. Pu bli she d Fe br u a r y 2009.
and is t ole r a t e d v e r y we ll by t he e ngi ne s, sa y s Dr. Ma nfr e d S c hu c ke r t , c om pa ny st r a t e gi st a t Da i m le r
AG.106
It is possi ble t ha t t he lowe r c ont e nt of a r om a t i c s in HDRD r e la t i v e t o ULS D c ou ld ha v e an i m pa c t on
e la st om e r pa r t s on olde r e ngi ne s. S om e i ssu e s of e la st om e r shr i nki ng in e ngi ne s of olde r v e hi c le s we r e
obse r v e d in Ca li for ni a whe n LSD wa s r e pla c e d by ULS D in 2006, sinc e ULS D c ont a i ns le ss a r om a t i c s
t ha n LSD. The pi lot t e st de sc r i be d a bov e using ne a t HDRD i nv olv e d m ost ly ne we r v e hi c le s. Howe v e r ,
no issu e s ha v e y e t bee n r e por t e d r e ga r di ng e la st om e r shr i nka ge in olde r v e hi c le s due t o t he use of
HDRD.
6.3 R efi n er exp er i en c es w i th HD R D
In a r e c e nt pr e v i ou s st u dy by c oRe ssou r c e s107, r e fi ne r s t ha t had pr e v i ou s e x pe r i e nc e pu r c ha si ng,
st or i ng, ble ndi ng, di st r i bu t i ng and m a r ke t i ng ULS D ble nde d wi t h HDRD in ble nds up t o 20% i ndi c a t e d
t ha t t he y di d not e x pe r i e nc e a ny i ssu e s and t ha t t he i r c u st om e r s di d not r e por t a ny issu e s. As has been
se e n in pr e v i ou s se c t ions, HDRD c a n, in pr i nc i pa l, be used as a ne a t fu e l wi t h v i r t u a lly no t e c hni c a l
issu e s r e la t e d t o t he st or a ge and t r a nspor t a t i on of t he fu e l or of its use in v e hi c le e ngine s.
Howe v e r , in pr a c t i c e t he r e a r e a nu m be r of ot he r fa c t or s t ha t gov e r n t he ble nd le v e ls or li m i t s r e fi ne r s
m a y use wi t h HDRD. Ble ndi ng wi t h HDRD c an i m pr ov e t he c e t a ne nu m be r of ULSD, bu t onc e a c e r t a i n
c e t a ne is r e a c he d a t a gi v e n blend, r e fi ne r s m a y fi nd t ha t a ddi t i ona l HDRD is u nne c e ssa r y in or de r to
a c hi e v e m e a su r a ble i m pr ov e d e ngi ne pe r for m a nc e . In a ddit i on, t he lowe r e ne r gy c ont e nt of HDRD
r e qu i r e s hi ghe r fu e l c onsu m pt i on for c u st om e r s, whi c h m a y be a m ot i v a t i on t o se t ble ndi ng li mit s. Finally,
du e t o t he c u r r e nt ly low su pply of HDRD r e la t i v e t o globa l de m a nd, i t m a y not a lwa y s be possi ble to
se c u r e t he v olu m e s r e qu i r e d t o ble nd HDRD a t high c onc e nt r a t i ons. In c ont r a st , t he r e is c le a r ly a c ost
a dv a nt a ge r e la t e d t o ble ndi ng high pe r c e nt a ge s of HDRD in t he su m m e r m ont hs r a t he r t ha n t he wi nt e r
m ont hs t o m e e t a nnu a l r e gu la t or y r e qu i r e m e nt s u sing t he le ss e x pe nsi v e su m m e r -gr a de HDRD.
106 Ne st e Oi l (2009). Pilot test shows: Less C02 emissions with new diesel from renewable energy sources. Pr e ss r e le a se , pu bli she d Ju ne
9, 2009.
7. HDRD m a r ke t s
7.1 R eg u l ati o n s, p o l i c i es an d i n c en ti v es
Re pu bli c . Fou r US st a t e s and fou r Ca na di a n pr ov i nc e s ha v e i nde pe nde nt ly im ple m e nt e d m i ni m u m
r e qu i r e m e nt s for r e ne wa ble a lt e r na t i v e s t o di e se l108.
7.1.11nternational policies
In E u r ope , t he E u r ope a n Com m i ssi on Di r e c t or a t e Ge ne r a l for E ne r gy im ple m e nt e d t he Re ne wa ble
E ne r gy Di r e c t iv e , whi c h st i pu la t e s t ha t EU Me m be r S t a t e s m u st e nsu r e t ha t 10% of e ne r gy c onsu m pt i on
in t r a nspor t is fr om r e ne wa ble sou r c e s109. A nu m be r of E u r ope a n c ou nt r i e s ha v e i nt r odu c e d t he i r own
na t iona l poli c i e s m a nda t i ng t he use of r e ne wa ble a lt e r na t i v e s t o di esel. The se a r e list e d in Ta ble 10
below:
Table 10 - M andates in European countries for the use of renewable alternatives to diesel
C o u n tr y M an d ate
Be lgi u m 4% m i ni m u m r e ne wa ble c ont e nt
Cze c h Re pu bli c B3.5
Fi nla nd 5.75% m i ni m u m r e ne wa ble c ont e nt
Ge r m a ny B4.4
It a ly 4.5% m i ni m u m r e ne wa ble c ont e nt (5% in 2014)
Ne t he r la nds 4% m i ni m u m r e ne wa ble c ont e nt
Nor wa y B3.5
Por t u ga l B7
S pa in B7
Uni t e d Ki ngdom B3.5
S ou r c e : RE N21. (2011). Renewables 2011 - Global Status Report. Pu bli she d Au gu st 2011.
Ta ble 11 be low li st s na t i ona l m a nda t e s for r e ne wa ble a lt e r na t i v e s t o die se l in Asia , Ce nt r a l and S ou t h
Am e r i c a and t he Ca r i bbe a n.
108 REN21. (2011). Renewables 2011 - Global Status Report. Pu bli she d Au gu st 2011.
109 Ibid.
Table 11 - M andates in Asian, Central and South American and Caribbean countries for the use of
R E N E WA B LE A LTE R N A TIVE S TO D IE SE L
C o u n tr y M an d ate
A si a
Indi a B20 by 2017
Pa ki st a n B5 by 2015
Ma la y si a B5
Phi li ppi ne s B10
S ou t h Kor e a B2
Tha i la nd B3
C en tr al + So u th A m er i c a an d th e C ar i b b ean
Ar ge nt i na B5
Boli v i a B2.5
Br a zi l B5 by 2013
Colu m bi a B20
Cost a Ri c a B3.5
Dom i ni c a n Re pu bli c B2 by 2015
Pa r a gu a y B5
Pe r u B5
Ur u gu a y B5
S ou r c e : RE N21. (2011). Renewables 2011 - Global Status Report. Pu bli she d Au gu st 2011.
7.1.2 North American policies
Both t he Unit e d S t a t e s and Ca na da ha v e poli c i e s in pla c e t ha t su ppor t t he use of r e ne wa ble fu e ls. In
Ju ly 2011, t he gov e r nm e nt of Ca na da i m ple m e nt e d a por t i on of it s Renewable Fuels Regulations
r e qu i r i ng fu e l pr odu c e r s and i m por t e r s in Ca na da t o ble nd an a nnu a l a v e r a ge of 2% r e ne wa ble c ont e nt
i nto t he i r die se l and he a t i ng oil fu e l pool. The r e is no r e st r i c t i on on t he pr odu c t i on pr oc e ss so bi odi e se l,
HDRD and ot he r a dv a nc e d r e ne wa ble fu e ls c a n be used t o m e e t t he 2% r e qu i r e m e nt . Unlike t he Uni te d
S t ate s, Ca na da doe s not c u r r e nt ly r e qu i r e t he r e ne wa ble c ont e nt t o m e e t a ny c r i t e r i a r e la t e d t o the
li fe c y c le GHG e m i ssi ons r e du c t i ons r e la t i v e t o c onv e nt i ona l di esel.
A nu m be r of Ca na di a n pr ov i nc e s a lso ha v e t he i r own r e ne wa ble fu e ls r e qu i r e m e nt s. Ta ble 12 be low
su m m a r i ze s som e r e qu i r e m e nt s of t he fe de r a l and pr ov i nc i a l r e gu la t ions.
E ac h Nov e m be r , t he E PA se t s t he st a nda r ds for t he r e qu i r e d v olu m e s of di ffe r e nt t y pe s of bi ofu e ls for the
followi ng y ear , u nde r t he RFS2. In 2010, t he E PA e st a bli she d fou r se pa r a t e c a t e gor i e s of fu e ls, ea c h
wi t h t he i r own st a nda r ds: t he globa l r e ne wa ble fu e l c a t e gor y (Ty pe R) and t hr e e a ddi t i ona l su b
c a t e gor i e s: c e llu losi c bi ofu e l (Ty pe C) and bi om a ss-ba se d di e se l (Ty pe B) t ha t a r e su b-c a t e gor i e s of
a dv a nc e d biofu e l (Ty pe A). HDRD qu a li fi e s for t he RFS st a nda r d as Ty pe A and B bu t not e t ha t c o
pr oc e sse d HDRD doe s not qu a li fy as Ty pe B. In 2012, t he Ty pe A r e qu i r e m e nt is 7.6 bi lli on li t r e s (1.21%
of t he fu e l pool), of whi c h 3.8 bi lli on li t r e s is e a r m a r ke d for Ty pe B fu e ls (0.91% in t he fu e l pool) and 32.7
m i llion li t r e s is for Ty pe C fu e ls110. Unde r RFS2, di ffe r e nt t y pe s of fu e ls are gi v e n e ne r gy e qu i v a le nc e
v a lu e s ba se d on t he i r e ne r gy c ont e nt r e la t i v e t o fi r st ge ne r a t i on bi ofu e ls. HDRD has an e ne r gy
e qu i v a le nc e v a lu e of 1.7 (i.e. 1 li t r e of HDRD ge ne r a t e s RIN c r e di t s e qu i v a le nt t o 1.7 li t res), t he r e for e
only 4.5 bi lli on li t r e s of HDRD wou ld be ne e de d in or de r t o m e e t t he t ot a l (non-Ty pe C) r e qu i r e m e nt s for
7.6 bi lli on lit r e s in t he Ty pe A c a t e gor y 111.
Unde r RFS2, e a c h of the fou r ne w fu e l c a t e gor i e s m u st m e e t GHG e m i ssi on r e du c t i on c r i t e r ia , r e la t i v e to
2005 le v e ls for pe t r ole u m fu e ls: a m i ni m u m of 20% r e du c t i on for Ty pe R fu e ls in ge ne r a l, 50% re du c t i on
for Ty pe s A and B and 60% r e du c t i on for Ty pe C112.
111 It shou ld be not e d t ha t Unde r RFS 2, e a c h of t he fou r ne w fu e l c a t e gor i e s m u st m e e t GHG e m i ssi on r e du c t i on c r i t e r i a , r e la t i v e t o 2005
le v e ls for pe t r ole u m fu e ls: a m i ni m u m of 20% r e du c t i on for Ty pe R fu e ls in ge ne r a l, 50% r e du c t i on for Ty pe s A a nd B a nd 60% r e du c t i on
for Ty pe C.
112 Uni t e d S t a t e s E nv i r onm e nt a l Pr ot e c t i on Age nc y (US E PA, 2011). EPA Proposes New Regulations for the National Renewable Fuel
Standard Program for 2010 and Beyond. E PA-420-F-09-023, pu bli she d Ma y 2009.
Table 12 - Some Federal and Provincial Renewable Fuels Regulations
Ju r i sd i c ti o n R eg u l ati o n an d star t d ate E n ab l i n g l eg i sl ati o n R el ev an t
m an d ate
r equ i r em en t
HD R D al l o w ab l e?
Ca na da
Re ne wa ble Fu e ls
Re gu la t i ons (S CR/2010-
189)
Im ple m e nt e d in 2010 (2011
for t he 2% r e qu i r e m e nt in
di e se l a nd he a t i ng oi l)
Ca na di a n E nv i r onm e nt a l
Pr ot e c t i on Ac t , 1999 (S .C.
1999, c. 33)
2% r e ne wa ble
c ont e nt in
di e se l and
he a t i ng oil
Ye s
US A
Re ne wa ble Fu e ls S t a nda r d
2 (RFS 2, u nde r t he E IS A
P i . 110-140)*
RFS 2 i m ple m e nt e d in
2009.
Or i gi na lly e na c t e d in 2005
u nde r t he E ne r gy Poli c y
Ac t ( P i . 109-58), t he
RFS wa s e x pa nde d in
2007 u nde r t he E ne r gy
Inde pe nde nc e and
S e c u r i t y Ac t (E IS A, P i .
110-140).
In 2012:
9.23% for all
r e ne wa ble fu e ls
0.91% for su b
c a t e gor y
"bi om a ss-
ba se d di e se l
1.21% for su b
c a t e gor y
"a dv a nc e d
bi ofu e ls
Ye s, bu t c o
pr oc e sse d FIDRD
not a dm i ssi ble a s
"bi om a ss-ba se d
di e se l (Ty pe B)
Co-pr oc e sse d
FIDRD a dm i ssi ble
a s"a dv a nc e d
bi ofu e ls (Ty pe A)
Fu e ls m u st m e e t
m i ni m u m GFIG
e m i ssi on r e du c t i on
r e qu i r e m e nt s.
Br i t i sh
Colu m bi a
Re ne wa ble a nd Low
Ca r bon Fu e l Re qu i r e m e nt s
Re gu la t i on (B.C. Reg.
394/2008, i nc lu de s
a m e ndm e nt s u p to B.C.
Re g. 77/2011)
Im ple m e nt e d in 2008
Gr e e nhou se Ga s
Re du c t i on (Re ne wa ble
a nd Low Ca r bon Fuel
Re qu i r e m e nt s) Ac t (S BC
2008, Cha pt e r 16)
4% r e ne wa ble
c ont e nt in
di e se l
Ye s
Albe r t a
Re ne wa ble Fu e ls S t a nda r d
Re gu la t i on (AB Reg.
29/2010, i nc lu di ng
a m e ndm e nt s u p to AB
Re g. 179/2010)
Cli m a t e Cha nge and
E m i ssi ons Ma na ge m e nt
Ac t (Cha pt e r C-16.7
2003)
2% r e ne wa ble
c ont e nt in
di e se l
Ye s
Ma ni t oba
Bi odi e se l Ma nda t e for
Di e se l Fuel Re gu la t i on
(Re g. 147/2009, i nc lu di ng
a m e ndm e nt s u p t o Reg.
194/2011)
The Bi ofu e ls Ac t
(C.C.S .M. c. B40)
2% r e ne wa ble
c ont e nt in
di e se l
No
*Not e t ha t t he US RFS a ppli e s t o r e ne wa ble fu e ls for ble ndi ng in a ll t r a nspor t a t i on fu e ls, not ju st m i ddle di st i lla t e s.
From a m a r ke t pe r spe c t i v e in t he Unit ed S ta t e s, an i m por t a nt a spe c t of t he RF2 r e gu la t i ons is t he sy st e m
of a lloc a t i on, ge ne r a t i on and t r a de of Re ne wa ble Ide nt i fi c a t i on Nu m be r s (RINs). A RIN is a ssi gne d to
e a c h v olu m e of qu a li fy i ng r e ne wa ble fu e l pr odu c e d. RINs c an be pu r c ha se d a nd/or t r a de d in or de r for
re gu la t e d pa r t i e s t o m e e t t he i r r e qu i r e m e nt s u nde r t he m a nda t e . Di ffe r e nt t y pe s of RINs are ge ne r a t e d
de pe ndi ng on t he fu e l t y pe , e a c h wi t h t he i r own pr i c e on t he RIN m a r ke t. For i nst a nc e , D4 RINs for Ty pe
B fu e ls a r e c u r r e nt ly t r a di ng for a r ou nd $1.30, D5 RINs for Ty pe A fu e ls a r e t r a di ng a t a bou t 70 c e nt s
and D6 RINs for ge ne r a l Ty pe R fu e ls are t r a di ng a t ju st a fe w c e nt s113. Thi s fa c t a lone wi ll m a ke i t le ss
li ke ly t ha t ne w FIDRD pr odu c t i on fa c i li t i e s in t he Unit ed S t a t e s will e m ploy c o-pr oc e ssi ng t e c hnology (as
oppose d t o bu i lding a st a nd-a lone fa c i li t y ) be c a u se c o-pr oc e sse d FIDRD doe s not qu a li fy as a Ty pe B
fu e l and t he r e for e c an only ge ne r a t e D5 or D6 RINs and not the m u c h m or e v a lu a ble D4 RINs114.
In a ddi t i on, RINs are a lloc a t e d pe r ga llon of fu e l on t he ba si s of e ne r ge t i c c ont e nt r e la t i v e t o e tha nol.
The r e for e , a ga llon of bi odie se l ge ne r a t e s 1.5 RINs whe r e a s a ga llon of FIDRD ge ne r a t e s 1.7 RINs.
Thi s c ont r i bu t e s t o FIDRDs hi ghe r pr i c e r e la t i v e t o bi odi e se l in t he Uni t ed S t ate s.
Ca na da s fe de r a l Renewable Fuels Regulations a lso i nc lu de t he c r e a t i on of c om pli a nc e uni t s (CU),
whe r e 1 CU is e qu a l t o 1 L of r e ne wa ble fu e l. CUs c an only be t r a de d be t we e n pa r t i c i pa nt s in the
t r a di ng sy st e m . S e pa r a t e uni t s are c r e a t e d for ga soli ne or di st i lla t e s r e ne wa ble c ont e nt s. One CU is
ge ne r a t e d for e a c h lit r e of qu a li fy i ng r e ne wa ble fuel, r e ga r dle ss of t he fu e l t y pe or t he pr odu c t i on pr oc e ss.
The r e for e , in Ca na da , u nli ke in t he Uni te d S ta te s, t he v a lu e of a CU ge ne r a t e d by c o-pr oc e sse d FIDRD is
e qu a l t o t he v a lu e of a CU ge ne r a t e d in a st a nd-a lone FIDRD pr odu c t i on fa c i li t y . E qu a lly , t he v a lu e of a
CU is t he sa m e whe t he r i t is ge ne r a t e d for bi odi e se l or for FIDRD.
The r e a r e also som e poli c i e s and i nc e nt i v e s a t t he local le v e l t ha t c an i m pa c t the r e la t i v e c om pe t i t i v e ne ss
of FIDRD t o bi odie se l. For e x a m ple , as shown a bov e , t he 2% Bi odi e se l Ma nda t e in Ma ni t oba a ppli e s
only t o bi odi e se l - FIDRD is not a dm i ssi ble . In Ont a r i o, c onsu m e r s r e c e i v e an e x e m pt i on of t he 14.3
c e nt s/L fu e l t a x for biodie se l, bu t not for FIDRD. At t he fe de r a l le v e l in Ca na da , t he e c oE NE RGY for
Bi ofu e ls Pr ogr a m pr ov i de s a pe r -li t r e i nc e nt i v e for r e ne wa ble a lt e r na t i v e s t o di e se l pr odu c e d in Ca na da .
Thi s r a t e wi ll de c li ne a nnu a lly unt il t he i nc e nt i v e s e x pi r a t i on in Ma r c h 2017 (see Ta ble 13). The inc e nt i v e
is a ppli c a ble t o FIDRD bu t t he r e are no FIDRD pr odu c e r s in t he pr ogr a m .
Table 13 - ecoENERGY incentive rates* for renewable alternatives to diesel ($/L)
2008-
2009
2009-
2010
2010-
2011
2011-
2012
2012-
2013
2013-
2014
2014-
2015
2015-
2016
2016-
2017
0.26 0.24 0.20 0.18 0.14 0.10 0.08 0.06 0.04
*By fi sc a l y e a r , Apr i l 1st t o Ma r c h 31st.
S ou r c e : Na t u r a l Re sou r c e s Ca na da Offi c e of E ne r gy E ffi c i e nc y (2012). About the Incentive. We bsi t e c onsu lt e d Ja nu a r y 28th,
2012. ht t p://oe e .nr c a n.qc .c a /t r a nspor t a t i on/a lt e r na t i v e -fu e ls/pr oqr a m s/e c oe ne r qv -bi ofu e ls/2411
The fe de r a l Renewable Fuels Regulations and e c oE NE RGY Bi ofu e ls Pr ogr a m are t wo of fou r
c om pone nt s of t he Ca na di a n gov e r nm e nt s Re ne wa ble Fu e ls S t r a t e gy . The ot he r t wo c om pone nt s
inc lu de fi na nc i a l su ppor t t o a gr i c u lt u r a l pr odu c e r s se e ki ng t o build or e x pa nd bi ofuel pr odu c t i on fa c i li t i e s
(t he e c oAGRICULTURE Bi ofu e ls Ca pi t a l Ini t i a t i v e and t he Bi ofu e ls Oppor t u ni t i e s for Pr odu c e r s Ini ti a t i v e ),
a s we ll as a ddi t i ona l fu ndi ng t o S u st a i na ble De v e lopm e nt Te c hnology Ca na da for i nv e st m e nt in la r ge -
sc a le c om m e r c i a l pr oje c t s for t he pr odu c t i on of bi ofu e ls fr om non-food fe e dst oc ks115.
7.2 Po ten ti al HD R D m ar kets in N o r th A m er i c a d u e to r eg u l ati o n s
The pot e nt i a l m a r ke t for HDRD in North Am e r i c a is si gni fi c a nt . The r e qu i r e m e nt s of t he RFS 2 st i pu la t e a
m i ni m u m r e qu i r e m e nt of 1 bi lli on ga llons (3.8 bi lli on li tr e s) a nnu a lly of Ty pe B fu e l unt il 2023 and possi bly
be y ond. The Ty pe B v olu m e s c ou ld be si gni fi c a nt ly hi ghe r in fu t u r e r u lings. HDRD c a n a lso be use d to
m e e t Ty pe A and Ty pe R fu e l r e qu i r e m e nt s. The v olu m e s r e qu i r e d for t he se fu e ls are shown in Ta ble 14.
It shou ld be not e d t ha t t he se v olu m e s are r e v i e we d and st i pu la t e d a nnu a lly e v e r y Nov e m be r for the
followi ng c a le nda r year. For i nst a nc e , a t t he end of 2011 t he Ty pe C fu e l r e qu i r e m e nt wa s r e du c e d fr om
0.5 bi lli on ga llons (1.9 billi on li t r e s) t o 32.7 m i llion lit res.
115 The Gov e r nm e nt of Ca na da (2012). ecoENERGY Renewable Fuels Strategy. We bsi t e c onsu lt e d Ja nu a r y 28th, 2012.
ht t p://e c oa c t i on.qc .c a /e c oe ne r qv -e c oe ne r qi e /r e ne wa ble fu e ls-c a r bu r a nt sr e nou v e la ble s-e nq.c fm
Table 1 4 - Renewable Fuel V olume Requirements Under RFS2 (billion ga l l o n s )*
Type C Type B Type A Type R
Tot a l Renewable
Fuel Re qu ir e m e nt
2 0 0 9 n /a 0 .5 0 .6 11.1
2010 0.1 0 .65 0 .95 1 2 .95
2011 0 .2 5 0 .8 0 1 .3 5 1 3 .95
2012 0 .5 1 .0 2 , 0 1 5 .2
2 0 1 3 1 .0 a 2 .75 1 6.5 5
2 0 1 4 1 .75 a 3 .75 1 8 .1 5
2 0 1 5 3 .0 a 5 .5 2 0 .5
2 0 1 6 4 .2 5 a 7.2 5 2 2 .2 5
2 0 1 7 5 .5 a 9, 0 2 4 .0
2 0 1 3 7.0 a 1 1 .0 2 6.0
2 0 1 9 8 .5 a 1 3 .0 2 8 .0
2 0 2 0 1 0 .5 a 1 5 .0 3 0 .0
2 0 2 1 1 3 .5 a 1 8 .0 3 3 .0
2 0 2 2 1 6.0 a 2 1 .0 3 6.0
2 0 2 3 + b b b b
a To be determined by EPA through a future rulemaking, but no less than 1.0 billion gallons,
b To be determined by EPA through a future rulemaking.
*Not e : The se v olu m e s a r e r e v i e we d a nd st i pu la t e d a nnu a lly e v e r y Nov e m be r for t he followi ng c a le nda r y e a r . For i nst a nc e , a t
t he e nd of 2011 t he Ty pe C fu e l r e qu i r e m e nt wa s r e du c e d fr om 0.5 bi lli on ga llons (1.9 bi lli on li t r e s) t o 32.7 m i lli on li t r e s.
S ou r c e : Mc Ma r t i n, C. a nd Noy e s, G. (2010). America Advances to Performance-Based Biofuels - The Advanced Renewable
Fuels Standard/RFS2. Whi t e Pa pe r , Pu bli she d by Cle a n Fu e ls Cle a r i nghou se , Fe br u a r y 2010.
As c a n be se e n in Ta ble 14, in 2012 t he r e is a pot e nt i a l m a r ke t for 1 bi lli on ga llons (3.8 billion li tr e s) of
r e ne wa ble di e se l in t he Uni te d S t a t e s u nde r RFS2, whi c h c a n go up t o 2 bi lli on ga llons (7.6 bi lli on li tr e s) i f
the r e qu i r e m e nt s of t he Ty pe A fu e l c a t e gor y a r e a lso i nc lu de d (not i nc lu di ng t he v olu m e s e a r m a r ke d for
Ty pe C c e llu losi c fu e ls). The v olu m e r e qu i r e m e nt s i nc r e a se si gni fi c a nt ly e a c h ye a r , c li m bi ng by an or de r
of m a gni t u de in 10 y e a r s. In Ca na da u nde r t he Renewable Fuels Regulations, t he pot e nt i a l m a r ke t for
HDRD st a r t s a t 400 m i lli on lit r e s in 2012 (t a ki ng i nt o a c c ou nt t he e x e m pt i on for Qu e be c and Ma r i t i m e
pr ov i nc e s) and i nc r e a se s t o 900 m i llion by 2035116. It is i m por t a nt t o note t ha t in t he Unit e d S ta te s, the
v olu m e s of r e ne wa ble fu e ls r e qu i r e d u nde r t he RFS 2 are se t e a c h y e a r by a r u li ng by t he E PA t ha t t a ke s
int o a c c ou nt fe e dst oc k a v a i la bi li t y , t e c hnologi c a l fe a si bi li t y and ot he r fa c t or s. In Ca na da , t he v olu m e s
116 For a fu ll e x pla na t i on of how pr e di c t e d de m a nd v olu m e s ha v e be e n c a lc u la t e d, se e S e c t i on 3.3.1 of: c oRe ssou r c e s Consu lt a nt s (2010).
Updating the cost-benefit analysis of the proposed 2% renewable fuels regulation.
re qu i r e d a r e de t e r m i ne d as a 2% a nnu a l a v e r a ge of t he di e se l and he a t ing oil pools of r e fi ne r s and
im por t e r s.
Ta ble 15 be low shows t he pr oje c t e d r e qu i r e m e nt s for r e ne wa ble a lt e r na t i v e s t o di e se l u nde r the
Ca na di a n Renewable Fuels Regulations.
Table 15 - Projected diesel and heating oil demand volumes and requirements for renewable
A LTERNA TIVES TO DIESEL UN DER THE C A N A D IA N R E N E WA B LE F U ELS R E GU LA TION S (ML)*
M L 2 0 1 2 ** 2 0 1 5 2 0 2 0 2 0 2 5 2 0 3 0 2 0 3 5
D i esel an d h eatin g o i l d em an d
We st 13,026 13,802 15,212 16,783 18,536 20,493
Ont a r i o 7,600 8,008 8,737 9,532 10,400 11,347
E a st 0 9,851 10,329 10,837 11,376 11,950
Ca na da 20,626 31,661 34,278 37,152 40,312 43,790
R equ i r em en ts fo r r en ew ab l e al ter n ati v es to d i esel (2 %)
Ca na da 404 633 686 743 806 876
* Ne wfou ndla nd a nd La br a dor a nd t he Te r r i t or i e s a r e e x e m pt fr om t he Re gu la t i ons, t he r e for e t he de m a nd v olu m e s for t he se
r e gi ons ha v e not be e n i nc lu de d.
**A t e m por a r y e x e m pt i on of t he 2% r e qu i r e m e nt fr om Ju ly 1, 2011 t o De c e m be r 31, 2012 ha s be e n gr a nt e d t o Qu e be c a nd t he
At la nt i c pr ov i nc e s, so t he se v olu m e s ha v e be e n r e m ov e d fr om t he 2012 nu m be r s.
S ou r c e s:
c oRe ssou r c e s Consu lt a nt s (2010). Updating the cost-benefit analysis o f the proposed 2% renewable fuels regulation.
S t a t i st i c s Ca na da (2010). The Supply and Disposition o f Refined Petroleum Products in Canada. Ca t a logu e 45-004.
ht t p://www.st a t c a n.gc .c a /bsolc /olc -c e l/olc -c e l?c a t no=45-004-X&c hr opg=1&la ng=e ng
Na t u r a l Re sou r c e s Ca na da (NRCa n, 2006) Canadas Energy Outlook: The Reference Case.
ht t p://www.nr c a n.gc .c a /i nt e r /pu bli c a t i ons/pe o_e .ht m l
7.3 E xi sti n g an d p o ten ti al HD R D p r o d u c ti o n c ap ac i ty in N o r th A m er i c a
Ta ble s 16 and 17 be low su m m a r i ze e x i st i ng and pr opose d c a pa c i t y for pr odu c t i on of HDRD wor ldwi de in
both st a nd-a lone and c o-pr oc e ssi ng fa c i li t i e s. As c an be se e n in t he t a ble s, c u r r e nt globa l c a pa c i t y is a t
2.8 bi lli on lit r e s pe r y e a r (2525 ML/y r for st a nd-a lone fa c i li t i e s and 300 ML/y r for c o-pr oc e ssi ng), whi c h
will i nc r e a se t o 3.3 bi lli on li t r e s pe r y e a r whe n t he Va le r o/Da r li ng pla nt c om e s onli ne a t t he e nd of 2012.
The m a jor i t y of t hi s c a pa c i t y e x i st s ou t si de of North Am e r i c a . Inc lu di ng t he Va le r o/Da r li ng pla nt, by the
e nd of 2012 t ot a l Nort h Am e r i c a n c a pa c i t y will be 800 m i lli on li t r e s pe r year.
Cu r r e nt globa l c a pa c i t y of 2.8 bi lli on lit r e s pe r y e a r is e qu i v a le nt t o se v e n t i m e s the c u r r e nt r e qu i r e m e nt
for t he Ca na di a n fe de r a l r e gu la t i ons or 125% of t he c u r r e nt RFS 2 Ty pe B fu e l r e qu i r e m e nt s (or 62% of
t he Ty pe A r e qu i r e m e nt )117.
The v a st m a jor i t y of Ne st e Oi ls pr odu c t is c u r r e nt ly sold in E ur ope, a lt hou gh som e is a lso being sold in
Ca na da . The y a r e c u r r e nt ly a r e not se lli ng pr odu c t in t he Uni te d S ta t e s. Ne st e s Por v oo and S i nga por e
pla nt s are a ppr ov e d for e i gn RIN ge ne r a t or s for t he RFS2, bu t FIDRD fr om pa lm oi l has not y e t been
fou nd by t he E PA t o m e e t t he m i ni m u m GFIG r e du c t i on r e qu i r e m e nt s of 20%. Ju st one of Ne st e s 900
ML/y r pla nt s wou ld a c c ou nt for up t o 20% of t he Ty pe B fu e l r e qu i r e m e nt s118.
Ta ki ng i nt o a c c ou nt t he Dy na m i c Fu e ls pla nt, t he Va le r o pla nt and a ssu m i ng Ne st e c ont r i bu t e s 1 bi llion
li t r e s t o t he US m a r ke t , t hi s m a ke s a t ot a l of 1.8 bi lli on li t r e s be i ng pr odu c e d a nd/or m a r ke t e d in t he US
as of 2013, whi c h is e qu i v a le nt t o 3.1 billion li t re RINs whe n t he e ne r gy e qu i v a le nc e v a lu e of 1.7 for
FIDRD is t a ke n i nto a c c ou nt . Thi s c or r e sponds t o 52% of t he Ty pe B fu e l c a t e gor y r e qu i r e m e nt of 5.7
bi lli on li t r e s in 2013. Thi s m e a ns t ha t t he r e is t he pot e nt i a l for an a ddi t i ona l 2.6 bi lli on li tr e RINs for Ty pe
B fu e ls, whi c h c or r e sponds t o 1.5 bi lli on phy si c a l li t r e s of FIDRD, whi c h is e qu i v a le nt t o le ss t ha n t wo
Rot t e r da m -si ze d plants. The pot e nt i a l u nde r t he Ty pe A c a t e gor y is e v e n gr e a t e r ; si nc e t he t ot a l Ty pe A
r e qu i r e m e nt is 10.5 billion li tr e RINs in 2013, t hi s m e a ns t he r e is a pot e nt i a l for 7.4 bi lli on lit re RINs or
4.3 bi lli on phy si c a l li t r e s of FIDRD, e qu i v a le nt t o a lm ost fi v e Rot t e r da m -si ze d plants.
117 Ta ki ng i nt o a c c ou nt t he e ne r gy e qu i v a le nc e of 1.7 for HDRD u nde r RFS 2.
Table 16 - Summary existing and proposed commercial-scale HDRD stand-alone plants*
fac i l i ty
Statu s Star t d ate Pr i n c i p al
feed sto c ks
used
Pr i n c i p al
m ar kets
ser v ed
C ap ac i ty
(M L/y r )
So u r c e
Fi nla nd
Ope r a t i ona l 2007 Pa lm oil
Ani m a l fa t s
Ra pe se e d oil
E u r ope
Ca na da
215
[1]
Fi nla nd
Ani m a l fa t s
Ra pe se e d oil
E u r ope
Ca na da
215
[1]
Ne st e Oil Tu a s,
S i nga por e
E u r ope
Ca na da
906
[2]
Ne t he r la nds
Ani m a l fa t s
Ra pe se e d oil
E u r ope
Ca na da
906
[3]
Dy na m i c
Fu e ls
(S y nt r ole u m
a nd Ty son
Foods joi nt
v e nt u r e )
Ge i sm a r ,
Lou i si a na
Ope r a t i ona l 2010 Ani m a l fa t s
S oy be a n oil
US A
283
[4]
TO TA L E XISTIN G C A PA C ITY 2 , 5 2 5 ML/i
/r
Va le r o a nd
Da r li ng joi nt
v e nt u r e
Nor c o,
Lou i si a na
Unde r
c onst r u c t i on
E st i m a t e d
st a r t da t e :
Q4 2012
Ani m a l fa t s
S oy be a n oil
US A
Ca na da
509
[5]
TO TA L E XISTIN G + F U TU R E C A PA C ITY (F IR M ) 3 , 0 3 4 ML/ yr
UPM
bi ofu e ls
La ppe e nr a nt a ,
Fi nla nd
Const r u c t i on
be gi ns
su m m e r
2012
E st i m a t e d
st a r t da t e :
2014
Ta ll oil (pi ne ) E u r ope 117
[6]
TO TA L E XISTIN G + F U TU R E C A PA C ITY (PO SSIB LE ) 3, 1 51 M L/y r
Ju ne , 2008.
6UPM(2012). UPM to build the worlds first biorefinery producing wood-based biodiesel. Pr e ssr e le a se , 1 Fe br u a r y , 2012.
T a b l e 1 7 - E xi sti n g an d p r o p o sed HD R D c o -p r o c essi n g f a c i l i t i e s *
C o m p an y Lo c ati o n of
fac i l i ty
Statu s C o
p r o c essi n g
m ax%
Pr i n c i p al
feed sto c ks
used
Pr i n c i p al
m ar kets
ser v ed
C ap ac i ty
(M L/y r )
So u r c e
Conoc oPhi lli ps Cor k, Ir e la nd Ope r a t i ona l Unknown S oy be a n oil
Ani m a l fa t s
E u r ope 57
[1]
CE PS A Alge c i r a s,
S pa i n
Ope r a t i ona l 5% Ve ge t a ble
oil
E u r ope 90
[2]
Pr e e m
Pe t r ole u m
Gdt e bor g,
S we de n
Ope r a t i ona l 30% Ta ll oil E u r ope 153
[2]
TO TA L E XISTIN G C O -PR O C E SSIN G C A PA C ITY 3 0 0 M L/y r
E ni (UOP
li c e nse )
Li v or no, It a ly Te c hnology
li c e nse d,
c onst r u c t i on
not y e t
be gu n
Unknown S oy be a n oil E u r ope 368
[3]
Ga lp E ne r gi a S i ne s,
Por t u ga l
Te c hnology
li c e nse d,
c onst r u c t i on
not y e t
be gu n
Unknown S oy be a n oil E u r ope 368
[3]
Undi sc lose d
r e fi ne r
Au st r a li a Unknown 5% Ani m a l fa t Au st r a li a 25
[2]
Undi sc lose d
r e fi ne r
Ca li for ni a ,
US A
Unknown 10% Ta llow US A 23
[2]
Undi sc lose d
r e fi ne r
E u r ope Unknown 5% Ani m a l fa t E u r ope 62
[2]
Undi sc lose d
r e fi ne r
Te x a s, US A Unknown 5% Ve ge t a ble
oil
US A 180
[2]
TO TA L E XISTIN G A N D PR O PO SE D C O -PR O C E SSIN G C A PA C ITY 1 , 3 2 6 M L/y r
1Conoc oPhi lli ps (2006). ConocoPhillips Begins Production o f Renewable Diesel Fuel at Whitegate Refinery in Cork, Ireland.
Pr e ss r e le a se , pu bli she d De c e m be r 19, 2006.
3Ar gonne Na t i ona l La bor a t or y (2008). Li fe -Cy c le Asse ssm e nt of E ne r gy a nd Gr e e nhou se Ga s E ffe c t s of S oy be a n-De r i v e d
Bi odi e se l a nd Re ne wa ble Fu e ls. Pu bli she d Ma r c h 12, 2008.
It is i m por t a nt t o r e m e m be r t ha t t he RFS 2 has m i ni m u m GHG e m i ssi on r e du c t i on r e qu i r e m e nt s for ea c h
t y pe of a dm i ssi ble r e ne wa ble fu e l u nde r t he m a nda t e : 20% r e du c t i on for Ty pe R fu e ls and 50% r e du c t i on
for Ty pe B and A fu e ls119. Re c e nt ly , t he E PA pu bli she d a not i c e of da t a a v a i la bi li t y i ndi c a t i ng t ha t t he i r
a na ly si s of t he li fe c y c le GHG i m pa c t s of bi odi e se l and r e ne wa ble di e se l fr om pa lm oil did not m e e t the
m i ni m u m 20% GHG r e du c t i on r e qu i r e m e nt s120. A si m i la r e x pe r i e nc e oc c u r r e d in 2009 wi t h t he GHG
pr ofi le of soy be a n oil in whi c h t he E PAs dr a ft LCA fou nd t ha t soy -ba se d biodie se l only a c hi e v e d 22%
GHG r e du c t i on121. Aft e r fe e dba c k fr om t he i ndu st r y and ot he r LCA e x pe r t s, in 2010 GHG r e du c t i ons
we r e fou nd t o e x c e e d 50% and soy -ba se d bi odi e se l and r e ne wa ble di e se l we r e fi na lly a c c e pt e d as
a dm i ssi ble fu e ls122. S om e in t he i ndu st r y e x pe c t t he sa m e t o oc c u r for pa lm oi l123. E i t he r wa y , t he E PAs
pr oc e ss of a r r i v i ng on a fi na l ru li ng on t he LCA i m pa c t s of pa lm oil c ou ld de la y Ne st e s e nt r y i nto t he US
m a r ke t e i t he r in t he shor t -t e r m whi le a fina l ru li ng is de c i de d or in t he m e di u m - t o long-t e r m i f a ne ga t i v e
ru ling r e qu i r e s Ne st e t o a r r a nge ne w fe e dst oc k sou r c i ng t o a c c om m oda t e t he E PA GHG r e qu i r e m e nt s.
In t e r m s of t he Ca na di a n c ont e x t , ju st one Por v oo-si ze d pla nt (215 ML/y r ) wou ld be a ble t o a c c ou nt for
a bou t one -t hi r d of Ca na da s t ot a l r e qu i r e m e nt for r e ne wa ble a lt e r na t i v e s t o di e se l and he a ti ng oi l fr om
2013 onwa r ds. Addi ng a not he r pla nt of t he sa m e si ze wou ld a c c ou nt for 48% of t he pr oje c t e d
r e qu i r e m e nt s in 2035. As m e nt i one d in S e c t i on 3, a Por v oo-si ze d pla nt is c onsi de r e d a bou t the m i ni m u m
c a pa c i t y for whi c h a st a nd-a lone ne w HDRD pr odu c t i on fa c i li t y c ou ld be c onsi de r e d pr ofi t a ble 124.
Alt e r na t i v e ly , a Rot t e r da m -si ze d pla nt (906 ML/y r ) wou ld pr ov i de 30% m or e t ha n t he t ot a l Ca na di a n
fe de r a l r e qu i r e m e nt s in t he shor t t e r m , a llowi ng for pot e nt i a l e x por t s t o t he US, and in 2035 wou ld
a c c ou nt for 100% of t he pr oje c t e d r e qu i r e m e nt s.
It wou ld m a ke se nse for a st a nd-a lone pla nt t o be loc a t e d c lose t o e x i st i ng r e fi ne r y i nfr a st r u c t u r e , for
i nst a nc e in E dm ont on or S a r ni a . S e e Ta ble 18 for a li st of e x i st i ng r e fi ne r i e s in Ca na da and t he i r
c a pa c i t i e s.
120 Uni t e d S t a t e s E nv i r onm e nt a l Pr ot e c t i on Age nc y (E PA, 2011). EPA Issues Notice of Data Availability Concerning Renewable Fuels
Produced from Palm Oil Under the RFS Program. Re gu la t or y Annou nc e m e nt , pu bli she d by t he Offi c e of Tr a nspor t a t i on a nd Ai r Qu a lit y ,
E PA-420-F-11-046, De c e m be r 2011.
Fuels. Te c hni c a l Hi ghli ght s, pu bli she d by t he Offi c e of Tr a nspor t a t i on a nd Ai r Qu a li t y , E PA-420-F-09-024, Ma y 2009.
Fuels. Re gu la t or y Annou nc e m e nt , pu bli she d by t he Offi c e of Tr a nspor t a t i on a nd Ai r Qu a li t y , E PA-420-F-10-006, Fe br u a r y 2010.
Table 18 Refineries in Canada: Location, type and production capacities, 2008
Refinery Locati on R efin er y type Mil li on litres
/ day
M L/y r
Im pe r i a l Oil Da r t m ou t h, NS Cr a c ki ng 13.0 4628
Ir v ing Oil S a i nt -John, NB Cr a c ki ng 47.7 16,981
Nor t h At la nt i c
Re fi ni ng
Com e -by -Cha nc e ,
NF
Cr a c ki ng 18.3 6515
Total A tl an tic 79.0 2 8,1 24
S u nc or Mont r e a l, QC Cr a c ki ng 20.7 7369
Ult r a m a r S a i nt -Rom u a ld, QC Cr a c ki ng 42.1 14,988
Total Quebec 62.8 2 2,3 57
Im pe r i a l Oil Na nt i c oke , ON Cr a c ki ng 17.8 6337
Im pe r i a l Oil S a r ni a , ON Coki ng 19.1 6800
S he ll S a r ni a , ON Cr a c ki ng 11.9 4236
S u nc or S a r ni a , ON Hy dr oc r a c ki ng 13.5 4806
Nov a Che m i c a ls S a r ni a , ON Toppi ng 12.4 4414
Total Ontari o 74.7 2 6,5 93
Co-op Ne wgr a de Re gi na , SK Hy dr oc r a c ki ng/c oki ng 15.9 5660
Hu sky Lloy dm i nst e r , AB Toppi ng Aspha lt 4.5 1602
Im pe r i a l Oil E dm ont on, AB Cr a c ki ng 29.7 10,573
S u nc or E dm ont on, AB Coki ng 21.5 7654
S he ll S c ot for d, AB Hy dr oc r a c ki ng/c oki ng 15.9 5660
Total Pr ai ri es 87.5 3 1,1 50
Che v r on Bu r na by , BO Cr a c ki ng 8.7 3097
Hu sky Oil Pr i nc e Ge or ge , BO Cr a c ki ng 1.9 676
Total British
Colo mbia
10.6 3,774
Tot a l Ca na da 314.6 111,998
S ou r c e : Ca na di a n Pe t r ole u m Pr odu c t s Inst i t u t e (CPPI, 2012). About the Indus t r y - Refi ner y Operations - Refining Sites and
Capacities. We bsi t e c onsu lt e d Fe br u a r y 10, 2012. S ou r c e da t a fr om c om pa ny we bsi t e s.
ht t p://www.c ppi .c a /i nde x e .php?p=65
1 5 0 0 - - - 1 50 0
1000 - - - 1000

N E xB TL p r i c e B i o d i esel (F A M E )
7.4 HDRD prices
The de c i si on be t we e n st a nd-a lone pr odu c t i on and c o-pr oc e ssi ng HDRD de pe nds on a nu m be r of fa c t or s.
In both c a se s, i t m a ke s se nse t o m a ke use of e x i st i ng r e fi ne r y i nfr a st r u c t u r e for hy dr oge n, fu e l gas,
a m i ne wa sh, stor a ge , etc ., and t he r e for e for HDRD pr odu c t i on t o t a ke pla c e e i t he r sole ly by, or in
pa r t ne r shi p wi t h, e x i st i ng r e fi ne r s in Canada .
Cu r r e nt ly , HDRD is pr i c e d r e la t i v e t o bi odi e se l pr i c e s plu s a pr e m i u m for hi ghe r de nsi t y /e ne r gy c ont e nt ,
c e t a ne , cold flow pr ope r t i e s and br a ndi ng v a lu e . The a v e r a ge pr e m i u m of NE x BTL r e la t i v e t o bi odi e se l in
2007 wa s 17 US c e nt s/L for pr odu c t sold in E u r ope 125, in 2008-2009 i t wa s a bou t 21 US c e nt s/L for
pr odu c t sold in E u r ope 126 and in 2010 i t wa s a bou t 30 US c e nt s/L for pr odu c t sold in Ca na da 127. As
de m a nd for HDRD grows, pr odu c e r s c an c ha r ge a hi ghe r pr e m i u m . Fi gu r e 18 shows how NE x BTL
pr i c e s t r a c ke d bi odi e se l pr i c e s fr om Q1 2008 - Q2 2009.
Figure 18 - NE xBTL prices relative to biodiesel prices, 2 0 0 8 - 2009
A v er ag e p r em i u m i n Q1 /0 8 -
Q2 /0 9: $2 4 0 /t
N E xB TL v al u e d r i v er s
+ Tec h n i c al b l en d i n g v al u e
+ E n er g y c o n ten t
+ O th er p r o p er ti es an d
ease o f u se
S ou r c e : Honka m a a , J. (Ne st e Oil, 2009). Delivering Future Growth. Pr e se nt a t i on a t Ne st e Oil Ca pi t a l Ma r ke t s Da y ,
S e pt e m be r 29, 2009.
Fi gu r e 19 be low shows how t he v a lu e of HDRD is de t e r m i ne d for c u st om e r s t ha t are pu r c ha si ng the
pr odu c t t o c om ply wi t h gov e r nm e nt bi ofuel m a nda t e s. The r e is t he pr i c e of bi odi e se l as t he base
c om pone nt , as we ll as t he di ffe r e nc e in de nsi t y (e ne r gy c ont e nt ) be t we e n bi odie se l and HDRD. The r e is
also a c om pone nt re la t e d t o t he c ost sa v i ngs for not ha v i ng t o pu r c ha se biodie se l ble ndi ng i nfr a st r u c t u r e .
The fi na l c om pone nt is t he pr e m i u m for fa v ou r a ble pr ope r t i e s (c e ta ne , c lou d point ). The fa v ou r a ble c lou d
125 Honka m a a , J. (Ne st e Oi l, 2007). Biodiesel. Pr e se nt a t i on a t Ne st e Oi l Ana ly st Day , Nov e m be r 2, 2007.
126 Honka m a a , J. (Ne st e Oi l, 2009). Delivering Future Growth. Pr e se nt a t i on a t Ne st e Oi l Ca pi t a l Ma r ke t s Day , S e pt e m be r 29, 2009.
127 The v a lu e of US 30 c e nt s/L wa s c a lc u la t e d a s CAD 35 c e nt s/L m i nu s a CAD 5 c e nt s/L t r a nspor t a t i on c ost (CAD wa s a t pa r i t y wi t h US D in
2010) fr om : c oRe ssou r c e s Consu lt a nt s (2010). Updating the cost-benefit analysis of the proposed 2% renewable fuels regulation.
poi nt of HDRD c a n lead t o si gni fi c a nt sa v i ngs in ke r ose ne or fu e l a ddi t i v e e x pe ndi t u r e s whe n blendi ng
wi t h low-c lou d bi odi e se l. For som e c u st om e r s, t he c ost sa v i ngs wi t h r e ga r ds t o bi odi e se l infr a st r u c t u r e ,
ke r ose ne , a ddi t i v e s and t he fa v ou r a ble phy si c a l c ha r a c t e r i st i c s of t he pr odu c t m a ke i t wor t h t he e x t r a
c ost pr e m i u m . A r e c e nt 2012128 st u dy by c oRe ssou r c e s fou nd t ha t in t he shor t -t e r m (i.e. a t c u r r e nt
HDRD pr ic e s), 48% of t he fe de r a l r e qu i r e m e nt for r e ne wa ble a lt e r na t i v e s t o di e se l and he a t i ng oil wou ld
be m e t wi t h HDRD. Thi s i nc r e a se s t o a bou t 55% in t he m e di u m - t o long-t e r m and m ost r e fi ne r s i ndi c a t e d
t ha t t he pr opor t i on wou ld i nc r e a se i f t he pr i c e di ffe r e nt i a l be t we e n bi odi e se l and HDRD wa s re du c e d.
Howe v e r , gi v e n t ha t t he r e is c u r r e nt ly no shor t a ge of de m a nd for HDRD, t he pr ic e pr e m i u m r e la t i v e to
bi odie se l is not li ke ly t o de c r e a se in t he ne a r t erm .
Figure 19 - N E xBTL value for use under biofuel mandates
C u sto m er v al u e c r eati o n v i a N E xB TL
Biofuel cost (cost o f b io man date fulfill ment)
co m p en satio n
in b len d in g
co n ten t
c o mp ensatio n
In fr astr u ctu re
r equ ir em en ts
C o st o f F A M E
b io d iesel (m ar ket
N E xB TL v al u e
S ou r c e : Le hm u s, M. (Ne st e Oil, 2011). Renewable fuels - Driving growth and profitability. Pr e se nt a t i on a t Ne st e Oil Ca pi t a l
Ma r ke t s Da y , 21 S e pt e m be r , 2011.
The m a r gi ns for HDRD are de t e r m i ne d by fe e dst oc k pr i c e di ffe r e nt i a ls, t he bi odi e se l m a r gi n (r e la t i v e to
di e se l) and t he pr ic e pr e m i u m 129. Gi v e n t ha t biodi e se l and HDRD a r e pr odu c e d fr om si m i la r fe e dst oc ks
and t ha t t he i r pr odu c t i on c ost s are a bou t e qu a l (see S e c t i on 3.3), t he pr i c e pr e m i u m for HDRD is a st r ong
a dv a nt a ge .
For r e fi ne r s pr odu c i ng t he i r own HDRD, t he i nfr a st r u c t u r e , e ne r gy c ont e nt and c lou d poi nt a ddi t i v e
sa v i ngs are t he sa m e , bu t t he y a r e a ble t o sa v e on t he HDRD pr i c e pr e m i u m r e la t i v e t o bi odie se l, e i t he r
129 Le hm u s, M. (Ne st e Oi l, 2011). Renewable fuels - Driving growth and profitability. Pr e se nt a t i on a t Ne st e Oi l Ca pi t a l Ma r ke t s Day , 21
S e pt e m be r , 2011.
Cen ts per gallon
5 0 0 n
4 0 0
3 0 0
D iesel fuel (c ents per gallon)
200
So yb ean oil pr ice (cents p er gallon)

Sp r ead b etw een diesel pr ice
100
an d soyb ean oil price
-100
-2 0 0 -1 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0
in t he i r own use or in sa le s t o ot he r c u st om e r s. Thi s a dv a nt a ge c a n c om pe nsa t e for t he high c a pi t a l
e x pe ndi t u r e s.
It shou ld be note d t ha t in t he Uni t ed Sta te s, HDRD pr ic e s a r e gov e r ne d pr i m a r i ly by t he RIN m a r ke t.
S i nc e HDRD ge ne r a t e s 1.7 RINs pe r ga llon whi le bi odi e se l only ge ne r a t e s 1.5 RINs (du e t o e ne r gy
e qu i v a le nc e fa c t or s), i f bi odi e se l pr i c e s i nc r e a se , t he pr i c e di ffe r e nt i a l be t we e n HDRD and bi odi e se l will
a c t u a lly i nc r e a se r a t he r t ha n de c r e a se . Conv e r se ly , i f pr odu c t i on of bi odie se l a nd/or HDRD i nc r e a se s,
i nc r e a si ng t he ov e r a ll su pply of Ty pe B fu e ls, D4 RIN pr i c e s wi ll de c r e a se and t he pr ic e di ffe r e nt i a l
be t we e n bi odi e se l and HDRD will a lso de c r e a se 130.
Howe v e r , in t he long-t e r m , a r e fi ne r s i nt e r e st in ble nding wi t h HDRD m a y not only be in or de r t o m e e t
fe de r a l r e gu la t i ons. Whe n oil pr i c e s ri se, i t c an be c om e m or e e c onom i c a l t o pr odu c e di e se l fr om
r e ne wa ble fe e st oc ks t ha n fr om c r u de oil. Of c ou r se , t hi s a ssu m e s t ha t r e ne wa ble fe e dst oc k pr i c e s do
not i nc r e a se a t t he sa m e rate. Ac c or di ng t o pr oje c t i ons by t he US E IA and t he US DA, a v e r a ge r e gu la r
di e se l pr i c e s are e x pe c t e d t o r eac h pa r i t y wi t h a v e r a ge soy be a n oil pr i c e s in 2017, a ft e r whi c h di esel
pr i c e s a r e e x pe c t e d t o c ont i nu e t o gr ow r e la t i v e t o soy be a n oi l pr i c e s (see Fi gu r e 20).
Figure 20 - Projected US soybean oil and regular diesel prices, 2011 - 2020
S ou r c e : Mc Pha i l, L , We st c ot t , P. a nd Lu t m a n, H. (US DA, 2011). The Renewable Identification Number System and U.S.
Biofuel Mandates. Pu bli she d by t he US DA E c onom i c Re se a r c h S e r v i c e , Nov e m be r 2011. Or i gi na l da t a fr om E IA, 2011.
2010 Annual Energy Outlook a nd US DA, 2011. Agricultural Projections to 2020.
7.5 Feedstock avail abil ity
The e x t e nt t o whi c h i t wi ll be e c onom i c a l t o e x pa nd t he bi ofu e ls m a r ke t in Nor th Am e r i c a and globa lly wi ll
de pe nd di r e c t ly on t he a v a i la bi li t y of su i t a ble fe e dst oc ks. As wa s se e n in t he pr e v i ou s se c t i on, in 2012
t he r e is a pot e nt i a l m a r ke t for 2.2 bi lli on phy si c a l li t r e s of HDRD131 (3.8 billion li tr e RINs) in t he Unit ed
S t a t e s u nde r RFS2, whi c h c an go up t o 4.5 bi lli on phy si c a l li t r e s (7.6 bi lli on li tr e RINs) i f t he r e qu i r e m e nt s
of t he Ty pe A fu e l c a t e gor y a r e a lso i nc lu de d (not i nc lu di ng Ty pe C fu e l r e qu i r e m e nt s). The v olu m e
r e qu i r e m e nt s i nc r e a se si gni fi c a nt ly e a c h year, c li m bi ng by an or de r of m a gni t u de in 10 y e a r s. In Ca na da
u nde r t he Renewable Fuels Regulations, t he pot e nt i a l m a r ke t for HDRD st a r t s a t 400 m i lli on li t r e s and
i nc r e a se s t o 900 m i lli on by 2035. It is i m por t a nt t o not e t ha t in t he Unit e d S t a t e s, t he v olu m e s of
r e ne wa ble fu e ls r e qu ir e d u nde r t he RFS 2 a r e se t ea c h y e a r by a ru li ng by t he E PA t ha t t a ke s i nt o
a c c ou nt fe e dst oc k a v a i la bi li t y , t e c hnologi c a l fe a si bi li t y and ot he r fa c t or s. In Ca na da , t he v olu m e s
r e qu i r e d are de t e r m i ne d as a 2% a nnu a l a v e r a ge of t he di e se l and he a t i ng oi l pools of r e fi ne r s and
i m por t e r s.
Assu m i ng an a v e r a ge HDRD pr odu c t i on y i e ld of 80% by m a ss (75% for wi nt e r HDRD, 85% for su m m e r
HDRD)132, i t wou ld r e qu i r e a ppr ox i m a t e ly 390,000 t onne s of fe e dst oc k in or de r t o pr odu c e 400 m illion
li t r e s (312,000 t onne s) of HDRD t o m e e t t he Ca na di a n r e gu la t or y r e qu i r e m e nt s. The pr odu c t i on yi eld
doe s not v a r y si gni fi c a nt ly by fe e dst oc k t y pe 133. It wou ld r e qu i r e 2.3 m illion t onne s of fe e dst oc k t o m e e t
t he RFS 2 r e qu i r e m e nt for 2.2 bi lli on phy si c a l li t r e s of HDRD.
Ta ble 19 pr e se nt s t he su pply and di sposi t i on of c a nola oil and soy be a n oi l in Ca na da for t he c r op y e a r s
2009/2010 and 2010/2011. As c an be se e n in t he t a ble , t ot a l pr odu c t i on of c a nola and soy be a n oil in
2010/2011 wa s 2.7 m illion t onne s and 270,000 tonne s, r e spe c t i v e ly . 128,000 t onne s of c a nola oil wa s
i m por t e d and 2.4 m i lli on t onne s (81% of t ot a l su pply ) wa s e x por t e d. 58,000 t onne s of soy be a n oil wa s
i m por t e d and 72,000 t onne s (22% of t ot a l su pply ) wa s e x por t e d. Dom e st i c use of c a nola and soy be a n oil
wa s 453,000 t onne s and 252,000 t onne s, r e spe c t i v e ly . E x por t s and i m por t s of t he se oi ls a r e pr i m a r i ly
t o/fr om t he Unit ed S t a te s.
Cu r r e nt ly , dom e st i c use of soy be a n oil is a lm ost e x c lu si v e ly for food use. Indu st r i a l (pr i m a r i ly e ne r gy )
use of c a nola oil is pr e di c t e d by t he US DA t o i nc r e a se fr om 7% in 2009/2010 t o 16% in 20 10/2011134.
131 Ta ki ng i nt o a c c ou nt t he e ne r gy e qu i v a le nc e v a lu e of 1.7 for HDRD u nde r RFS 2.
134 Uni t e d S t a t e s De pa r t m e nt of Agr i c u lt u r e (2011). Canada: Oilseeds and products annual outlook 2011/2012. Pu bli she d by t he Globa l
Agr i c u lt u r a l Infor m a t i on Ne t wor k of t he US DA For e i gn Agr i c u lt u r a l S e r v i c e , Apr i l 2011.
________________
T a b l e 19 - S u p p l y a n d d i s p o s i t i o n o f c a n o l a o i l a n d s o y b e a n o i l in Ca n a d a
0 9/1 0 mn 1 1 /1 2 0 9 10 1 0 /1 1 1 1 /1 2
'O O O to n n es
SU PPLY
O p en i n g stocks
3 1 71 8 2 3 4 3
Pr o d u c ti o n
2 1 0 7 2 7(5 8 3 OOO 2 3 2 2 6 5 2 6 0
Im p o r ts
2 0 1 1 2 8 75 5 3
TO TA L
2 3 3 9 2 9 6 7 3 1 0 3 2 7
D I S P O S I T I O N
Exports
8 1 9 2 4 3 2 5 1 7 2
D o m esti c use
4 4 9 4 5 3 2 5 5 2 5 2
C l o si n g stocks
71 8 2 4 3
TO TA L
2 3 3 9 2 9 6 7 3 1 0 3 2 7
1Ca na di a n Oi lse e d Pr oc e ssor s Assoc i a t i on (COPA, 2012). CORA Monthly: December 2011/January 2012.
Abou t 400,000 t onne s of t a llow and y e llow gr e a se is pr odu c e d a nnu a lly in Ca na da , m ost ly for the
ole oc he m i c a l and a ni m a l fe e d i ndu st r ie s. The Ca na di a n Ca nola Gr owe r s Assoc i a t i on e st i m a t e d t ha t t he
c a pa c i t y for bi odie se l pr odu c t i on in Ca na da c ou ld i nc r e a se t o 500 m i lli on lit res: 160 m i lli on li t r e s fr om
t a llow, 80 m i lli on lit r e s fr om y e llow gr e a se , 220 m illion lit r e s fr om c a nola and 40 m illion lit r e s fr om soy.
The se sa m e e st i m a t e s c ou ld a lso a pply t o HDRD pr odu c t i on, as pr odu c t i on y i e lds are si m i la r 135.
In t he Unit ed S t ate s, the la r ge m a jor i t y of bi odie se l is m a de fr om soy. Appr ox i m a t e ly 70 m illion a c r e s of
land is use d for soy be a n c r ops, of whi c h 8% wa s used for bi odi e se l pr odu c t i on in 2006-2007. It is
e st i m a t e d t ha t in or de r t o pr odu c e 3 bi lli on ga llons of biodi e se l, 30 m i llion a c r e s of c r opla nd wou ld be
ne c e ssa r y for oi lse e d c r ops li ke soy 136. E x ist i ng and pla nne d HDRD pr odu c t i on in t he Uni t e d S t a t e s
m a ke s use of t a llow as t he fe e dst oc k. In 2010, 815,000 t onne s of r e nde r e d t a llow and 8.6 m illion t onne s
of soy be a n oil we r e pr odu c e d in t he US.
In or de r for t he bi ofu e ls pr odu c t i on i ndu st r i e s t o c ont i nu e t o gr ow in Nor th Am e r i c a whi le u si ng North
Am e r i c a n fe e dst oc ks, i t m a y be ne c e ssa r y t o i m pr ov e fe e dst oc k c r op y ie lds, e i t he r t hr ou gh a dv a nc e s in
ge ne t i c e ngi ne e r i ng or by swi t c hi ng t o m or e pr odu c t i v e c r ops. Ta ble 20 be low pr e se nt s t he y i e lds of a
v a r i e t y of di ffe r e nt fe e dst oc ks. The r e is i nc r e a si ng i nt e r e st in ja t r opha and algal fe e dst oc ks be c a u se of
t he i r v e r y high y i e lds and t he fa c t t ha t t he y do not c om pe t e wi t h food use. Palm oi l a lso has v e r y hi gh
pr odu c t i on y i e lds and i t is t he pr i m a r y fe e dst oc k for NE x BTL pr odu c t i on, a lt hou gh it s GHG e m i ssi ons
pe r for m a nc e is c ont r ov e r si a l due t o t he pot e nt i a lly high i m pa c t s of i ndi r e c t land u se c ha nge s on t he
ov e r a ll li fe c y c le e m issions.
135 Asi a -Pa c i fi c E c onom i c Co-ope r a t i on (APE C, 2012). APEC Biofuels - Canada Biofuels Activities. We bsi t e c onsu lt e d Fe br u a r y 12, 2012.
ht t p://www.bi ofu e ls.a pe c .or g/m e c a na da .ht m l
Int. J. Fu e ls Lu br ., 2(2):185
T a b l e 2 0 - B i o f u e l f e e d s t o c k y i e l d s
Fe e dst oc k
Pot snt i a l Yi e t d.
qa lE onsi'a c r e
Cor n i a
3;; y ln'i i 11 40-55
Ca nola IKa [le sa oU'i 110-145
S j nftw r 103
S a fflu wr 53
Cllr t 35
MjsLa i d 60-140
Ja lnjpli a 175-200
Ct ou nu t 290
P-aimOH 600-650
Alga e >5000
8. Ot he r ne x t -ge ne r a t i on r e ne wa ble a lt e r na t i v e s to di e se l
Fu t u r e r e ne wa ble a lt e r na t i v e s t o di e se l wi ll m a ke use of a lt e r na t i v e fe e dst oc ks and a lt e r na t i v e pr odu c t i on
pr oc e sse s. Asi de fr om hy dr ot r e a t m e nt t e c hnologi e s, t he ne x t -ge ne r a t i on t e c hnology t ha t is m ost li ke ly to
be c om m e r c i a li ze d in t he m e di u m -t e r m is bi om a ss-t o-li qu i ds (BTL). Thi s pr oc e ss i nv olv e s ga si fi c a t i on of
bi om a ss a t v e r y hi gh t e m pe r a t u r e s u nde r c ont r olle d le v e ls of ox y ge n t o pr odu c e sy nga s, whi c h is a
m i x t u r e of CO, hy dr oge n and som e CO2. Thi s sy nga s is t he n c onv e r t e d t o a li qu i d fu e l v i a t he Fi sc he r -
Tr opsc h pr oc e ss, in whi c h CO and FI2 a r e r e a c t e d in t he pr e se nc e of c a t a ly st s u nde r c ont r olle d
t e m pe r a t u r e and pr e ssu r e c ondi t i ons in or de r t o pr odu c e hy dr oc a r bon c ha i ns of v a r i ou s le ngt hs. The
pr oc e ss c ondi t i ons and c hoi c e of c a t a ly st will de t e r m i ne whi c h hy dr oc a r bon c ha i n le ngt hs will be
fa v ou r e d and t he r e for e whi c h pr odu c t s will r e su lt (from fu e l ga s t o pa r a ffi ni c wa x ). The a dv a nt a ge of thi s
pr oc e ss is t ha t a ny t y pe of or ga ni c fe e dst oc k c an be used, not a bly for e st and a gr i c u lt u r a l r e sidu e s, whi c h
ar e in la r ge su pply and c u r r e nt ly a t low c ost 137.
The r e a r e no BTL pla nt s c u r r e nt ly in c om m e r c i a l ope r a t i on. Chor e n Indu st r i e s has pr oba bly c om e the
c lose st t o c om m i ssi oni ng a c om m e r c i a l-sc a le pla nt in Fr e i be r g, Ge r m a ny , a lt hou gh t he sc a le -u p and
c om m i ssi oni ng pr oc e ss wa s m u c h longe r t ha n e x pe c t e d and si nc e t he pr oje c t wa s e nt i r e ly pr i v a t e ly
fu nde d, m a ny i nv e st or s ba c ke d ou t and t he c om pa ny is now fa c i ng ba nkr u pt c y . Chor e n su c c e ssfu lly ran
a 1 MWt h pi lot pla nt fr om 1998 t o 2004 and bega n c onst r u c t i on of a sc a le d-u p 45 MWt h pla nt in 2003.
Fr om 2005 t o 2007 S hell, Da i m le r and Volkswa ge n be c a m e i nv e st or s, a m ongst ot he r s. Const r u c t i on
t ook longe r t ha n e x pe c t e d and in 2009 t he ga si fi c a t i on u ni t wa s c om m i ssi one d and be ga n t e st i ng. S inc e
i t wa s t he fi r st of it s kind on t ha t sc a le , a nu m be r of t e c hni c a l i ssu e s had t o be ir one d out , not a bly t he
ide a l ga si fi c a t i on c ondi t i ons t o e nsu r e t ha t t he pr odu c t CO/H2 r a t io is su i t a ble for t he F-T st e p t ha t follows
and t ha t y i e lds are m a x i m i ze d (i.e. m i ni m i zi ng t he pr odu c t i on of CO2). E v e nt u a lly i t be c a m e c le a r t ha t
a lt hou gh none of t he t e c hni c a l i ssu e s we r e i r r e solv a ble , t he t i m e i t wou ld t a ke t o r e solv e t he m wou ld be
c ost ly and di ffi c u lt t o pr e di c t, and t he r e for e i nv e st or s pu lle d ou t 138. In Oc t obe r 2011 a ne w i nv e st or wa s
a nnou nc e d and ne w inv e st or s are being sou ght ou t to t a ke t he pr oje c t for wa r d139.
Ot he r BTL de m onst r a t i on or pi lot -pla nt s are pla nne d or in ope r a t i on140141:
- Bi oTfu e l de m onst r a t i on pr oje c t: Two de m onst r a t i on pla nt s are be i ng bu i lt in Fr a nc e t ha t
i nc or por a t e all st a ge s of t he BTL pr oc e ss, i nc lu di ng dr y i ng and c r u shi ng of t he biom a ss,
t or r fa c t i on, ga si fi c a t i on, sy nga s pu r i fi c a t i on and Fi sc he r -Tr opsc h fu e l sy nt he si s. The pr oje c t
bu dge t is 112.7 m i lli on e u r os and t he pla nt s are e x pe c t e d t o be gi n ope r a t i on a t t he e nd of 2012.
137 Ra pi e r , R. (2009). Renewable Diesel Primer. Ar t i c le pu bli she d on Consu m e r E ne r gy Re por t we bsi t e , Ja nu a r y 17, 2009.
138 Ra pi e r , R. (2011). What Happened At Chor e n? Ar t i c le pu bli she d on Consu m e r E ne r gy Re por t we bsi t e , Ju ly 8, 2011.
139 E u r ope a n Bi ofu e ls Te c hnology Pla t fom (da t e u nknown). Biomass to Liquids. We bsi t e c onsu lt e d Fe br u a r y 15, 2012.
ht t p://www.bi ofu e lst p.e u /bt l.ht m l
140 E u r ope a n Bi ofu e ls Te c hnology Pla t fom (da t e u nknown). Biomass to Liquids. We bsi t e c onsu lt e d Fe br u a r y 15, 2012.
ht t p://www.bi ofu e lst p.e u /bt l.ht m l
141 Gu st , S. (Ne st e Oi l, 2009). Neste O i l - S t o r a Enso BTL Joint Venture. Pr e se nt a t i on a t t he 2nd S t a ke holde r s Ple na r y Me e t i ng, Ja nu a r y
22, 2009.
- CE A pi lot pla nt : The At om i c and Alt e r na t i v e E ne r gy Com m i ssi on in Fr a nc e a nnou nc e d in 2009
t he c onst r u c t i on of a BTL pi lot pla nt in Bure S a u dr on, Fr a nc e using 75,000 t onne s of for e st and
a gr i c u lt u r a l r e si du e s t o pr odu c e 23,000 t onne s/y e a r of biofu els.
- Ne st e Oil and S t or a E nso BTL joi nt v e nt u r e : HDRD pr odu c e r Ne st e Oil and pape r , pa c ka gi ng and
for e st r y pr odu c t s c om pa ny S t or a E nso be ga n a joi nt v e nt u r e in 2006 t o build a de m onst r a t i on
pla nt e m ploy i ng BTL t e c hnology t o pr odu c e pa r a ffi n wa x fr om for e st bi om a ss, whi c h wou ld t he n
be u pgr a de d t o HDRD a t Ne st e s bi or e fi ne r y . The 12 MW pla nt has been su c c e ssfu lly
ope r a t i ona l si nc e 2009 and a se c ond de m onst r a t i on pha se t o e x pa nd pr odu c t i on c a pa c i t y is now
pla nne d. Com m e r c i a l-sc a le pr odu c t i on and globa l e x pa nsi on is t he goal of the t hi r d pha se of t he
pr oje c t , pr oje c t e d for 2015.
- Ka r lsr hu e pi lot pla nt: For sc hu ngsze nt r u m Ka r lsr u he Gm bH is bu i ldi ng a BTL pi lot pla nt in
pa r t ne r shi p wi t h LURGI Gm bHA for ope r a t i on in 2016.
- The Dutc h Bi or e fi ne r y Ini ti a ti v e : A 10 MWt h BTL de m onst r a t i on fa c i li t y will be bu i lt in t he Por t of
Rot t e r da m by WUR and ECN wi t h su ppor t fr om t he Dutc h gov e r nm e nt .
The se e x a m ple s i llu st r a t e t ha t t he t e c hnology is sti ll in its na sc e nt st a ge s of sc a le -u p fr om pi lot and
de m onst r a t i on pla nt s t o c om m e r c i a l ope r a bi li t y and i t will t a ke a t le a st fi v e y e a r s be for e c om m e r c i a l-sc a le
BTL pla nt s will be ope r a t i ng r e gu la r ly . As a r e su lt , c a pi t a l c ost s for BTL pla nt s are sti ll qu it e high, wit h
2006 e st i m a t e s ra ngi ng fr om US $120,000 - $140,000 pe r bpd pr odu c t i on (as c om pa r e d wi t h $15,000 -
$20,000 for a pe t r ole u m r e fi ne r y and $30,000 - $85,000 for HDRD pla nt s, as se e n in S e c t i on 3.3)142.
Asi de fr om a lt e r na t i v e t e c hnologi e s, a lt e r na t i v e fe e dst oc ks are a lso being a c t i v e ly pu r su e d, both to
i m pr ov e y i e lds pe r he c t a r e and t o a v oi d c onfli c t s wi t h food c r ops. As se e n in t he pr e v i ou s se c t ion,
ja t r opha , c oc onu t , pa lm and a lga e fe e dst oc ks pr odu c e v e r y high y i e lds pe r he c t a r e r e la t i v e t o v e ge t a ble
oil c r ops. Wa st e -ba se d m i c r obia l oil is a ne w r e ne wa ble fu e l fe e dst oc k t ha t m a ke s use of fu ngi t o br e a k
down i ndu st r i a l wa st e and a gr i c u lt u r a l r e si du e s i nt o su ga r s t ha t fe e d t he m i c r obe s and su bse qu e nt ly
pr odu c e oil. Thi s pr oc e ss c an be c a r r i e d ou t in bi or e a c t or s used by br e we r s and bi ot e c hnology
c om pa ni e s. A US $10.4 m illi on pi lot pla nt for m i c r obi a l oil pr odu c t i on is c u r r e nt ly being bu i lt by Ne st e Oil
and shou ld be onli ne by t he e nd of 2012143.
142 Ra pi e r , R. (2009). Renewable Diesel Primer. Ar t i c le pu bli she d on Consu m e r E ne r gy Re por t we bsi t e , Ja nu a r y 17, 2009.
143 Gr e e n Ca r Congr e ss (2011). Neste Oil building pilot plant to produce waste-based microbial oil for NExBTL renewable diesel fuel;
commercial production possible by 2015. Pu bli she d De c e m be r 15, 2011.
9. Conc lu si ons and fu t u r e pe r spe c t i v e s
In t hi s st u dy i t wa s shown t ha t HDRD is a r e ne wa ble a lt e r na t i v e t o die se l wi t h fa v or a ble phy si c a l
pr ope r t i e s t ha t a llow i t t o be ble nde d wi t h ULS D wi t h le ss of t he a ddi t i ona l st or a ge and blendi ng
i nfr a st r u c t u r e r e qu i r e d for bi odie se l and le ss ke r ose ne r e qu i r e m e nt s for c old-we a t he r ble ndi ng. It has a
high c e t a ne nu m be r and a highe r e ne r gy c ont e nt t ha n bi odi e se l. Due t o t he c he m i st r y of t he
hy dr ot r e a t m e nt pr oc e ss, HDRD c an be m a de fr om a wi de r v a r i e t y of fe e dst oc ks t ha n bi odie se l wi t hou t
c om pr om i si ng t he fi na l pr odu c t quali ty .
The c a pi t a l c ost s for bu i ldi ng a st a nd-a lone HDRD pr odu c t i on fa c i li t y wi t hi n an e x i st i ng r e fi ne r y are sti ll
qu i t e high. The u ni t c a pi t a l c ost is high for v e r y sm a ll and v e r y la r ge pla nt s $45,000 - $85,000 pe r bpd
c a pa c i t y , bu t a ppr ox i m a t e ly t he sa m e for t he r e st ($30,000 - $40,000 pe r bpd c a pa c i t y ). In c ont r a st , the
a v e r a ge c a pi t a l c ost s for a pe t r ole u m r e fi ne r y a r e $15,000 - $20,000 pe r bpd c a pa c i t y and $20,000 -
$30,000 pe r bpd c a pa c i t y la r ge bi odi e se l pla nt s (of c ou r se , be c a u se pe t r ole u m pla nt s t y pi c a lly ha v e v e r y
la r ge c a pa c i t i e s, t he t ot a l c a pi t a l c ost s of t he i r c onst r u c t i on a r e m u c h highe r t ha n for sm a lle r -c a pa c i t y
HDRD or biodi e se l plants).
Ope r a t i ng c ost s for HDRD pr odu c t i on are si m i la r t o t hose for bi odie se l, whe r e a ppr ox i m a t e ly 80% of
ope r a t i ng c ost s are fe e dst oc k costs.
Conv e r se ly , t he c a pi t a l c ost s for a da pt i ng an e x i st i ng r e fi ne r y hy dr ot r e a t m e nt u ni t for c o-pr oc e ssi ng are
m u c h sm a lle r , as a r e t he m a r gi na l ope r a t i ng costs.
Cu r r e nt ly t he r e e x i st si x ope r a t i ona l c om m e r c i a l-sc a le HDRD pr odu c t i on pla nt s wi t h a c om bi ne d c a pa c i t y
t ot a lli ng 2.5 bi lli on li t r e s pe r y ear . One of t he se pla nt s is loc a t e d in t he Uni t e d S t at es, fou r in E u r ope and
one in S ou t he a st Asi a . By t he e nd of 2012, a se c ond pla nt will be ope r a t i ona l in t he Unit e d S t a t e s t o giv e
a t ot a l c a pa c i t y in North Am e r i c a of 900 m i llion li t r e s pe r year.
The v olu m e of r e ne wa ble a lt e r na t i v e s t o di e se l r e qu i r e d for t he Ca na di a n and Am e r i c a n r e ne wa ble fu e ls
m a nda t e s a r e 400 m i llion li t r e s and 3.8 bi lli on li t r e s in 2012, r e spe c t i v e ly (7.6 billion li t r e s in t he US i f t ot al
non-c e llu losi c Ty pe A a dv a nc e d fu e l r e qu i r e m e nt s a r e c onsi de r e d). It wou ld r e qu i r e 400,000 t onne s and
2.3 m i lli on t onne s of fe e dst oc k t o m e e t Ca na di a n and US r e qu i r e m e nt s, r e spe c t i v e ly . Tot a l pr odu c t i on of
c a nola oi l in 2010/2011 in Ca na da wa s 2.7 m i lli on t onne s, 270,000 t onne s for soy oil and 400,000 t onne s
of t a llow. In t he US in 2010, 815,000 t onne s of r e nde r e d t a llow and 8.6 m i lli on t onne s of soy be a n oil
we r e pr odu c e d. Alt hou gh c u r r e nt fe e dst oc k pr odu c t i on c a pa c i t y is la r ge ly su ffi c i e nt t o m e e t t he Ca na di a n
an US fe de r a l r e qu i r e m e nt s, dy na m i c s r e la t e d t o e x i st i ng food u sa ge (and ot he r uses) and e x por t
r e v e nu e s m u st a lso be c onsi de r e d whe n e v a lu a t i ng t he a v a i la ble fe e dst oc k c a pa c i t y , whi c h wa s ou t of
the sc ope of t he c u r r e nt st udy.
In t he Ca na di a n c ont e x t , one 215 ML/y r pla nt wou ld be a ble t o a c c ou nt for 30% of Ca na da s c u r r e nt t ota l
r e qu i r e m e nt for r e ne wa ble a lt e r na t i v e s t o die se l and he a t i ng oil. Addi ng a not he r pla nt of t he sa m e size
wou ld a c c ou nt for 48% of t he pr oje c t e d r e qu i r e m e nt s in 2035. Alt e r na t i v e ly , a 906 ML/y r pla nt wou ld
pr ov i de 33% m or e t ha n t he t ot a l Ca na di a n fe de r a l r e qu i r e m e nt s in t he shor t t e r m , a llowi ng for pot e nt i a l
e x por t s t o t he US, and in 2035 wou ld a c c ou nt for 100% of t he pr oje c t e d r e qu i r e m e nt s.

HDRD Final Report Eng

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

HDRD Final Report Eng

Uploaded by

Copyright:

Available Formats

s t H S f e s a

Stu d y o f Hy d r o g en ati o n D er i v ed R en ew ab l e D i esel as

coRessources Consultants for Natural Resources Canada 24

You might also like