Distribution Applications for Ethanol and Biodiesel

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Distribution Applications for Ethanol and
Biodiesel

• Nikki Parrish
• Alternative Fuels Specialist
• United Energy Distributors, Inc.

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Advantages of Ethanol

• Better for the environment
• Over the past 6 months, costs for E85 steadily
  decreasing, prior to this time competitive w/RUL.
• Eligible for a .51 cent tax credit on the ethanol
  part of the blend with gas.

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Infrastructure Cost

• Retrofitting existing gasoline/diesel tanks to
  hold ethanol
• Can not use fiberglass tanks manufactured prior
  to 1992
• Retrofit costs vary 3,500 to 25,000
• Installing new underground tanks usually run
  around 45,000 to 70,000
• Above ground tanks can be installed depending on
  local fire codes and cost around 25,000

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Types of Biodiesel

• Recycled Vegetable Oil commonly referred to as
  yellow grease
• Agri-diesel
• Soy Bean Oil
• Beef Tallow

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Popular Blends of Biodiesel

• B2 and B5 are commonly used by farmers
• B20 common uses
• Fleets
• Tractor Trailers
• Off road heavy equipment
• On road light duty fleets

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Federal Tax Credits for Biodiesel

• Yellow grease gets a .50 cent credit per gallon
  of pure product portion of blend or ½ penny per
  percent
• Ex. B20 gets a .10 cent credit
• Agri-Biodiesel gets a dollar credit per gallon or
  a penny per percent
• Ex. B20 gets a .20 cent credit
• Is not applicable unless blended with petroleum
  diesel

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Converting to Biodiesel

• Wholesale/Retail Distributor 2500 gal tank
• Start with a low blend like B2 or B5 B20
  preferable for air quality improvements
• Install new tank (same costs as related to those
  of petroleum)
• Use tank cleaning company to clean older tanks
  for the initial load to avoid filter problems

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Converting to Biodiesel

• End-User
• Start with a low blend like B2 or B5 or use a
  cleaning kit in the initial load delivered to a
  storage tank to avoid a filter plugging
• For fuel tanks on equipment or trucks, it is as
  simple as changing the fuel filter after first
  tank

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Cold Weather Issues

• Bio-diesel will gel like conventional diesel in
  extreme cold without an anti gel additive
• Temperature at gel point
• Type Degrees Fahrenheit
• Pure diesel 3
• B-2 and B-5 3
• B-10 5
• B-20 7
• B-100 (soy) 32
• B-100 (yellow grease) 36
• B-100 (beef tallow) 40
• Information from the National Biodiesel Board

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Advantages to Biodiesel over Petroleum Diesel

• In 2006 diesel will be required to contain 15
  parts per million of sulfur
• Diesel loses lubricity
• - Loses cranking power
• Biodiesel has better lubricity than petroleum
  diesel
• Burns cleaner
• No retrofit will be needed to diesel engines as
  compared with straight ultra low sulfur

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• Any Questions?
• Thank you for your time