SmallScale Biodiesel Production

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Small-Scale Biodiesel Production
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Energy Overview

• Where does our energy come from?
• 85 from fossil fuels
• coal, crude oil products, natural gas
• 7 renewable fuels
• hydro power, wind, solar, biomass, biofuels
• 8 nuclear

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Energy Use

• What do we use energy for?
• Heating Cooling
• Lights, appliances, cooking, household uses
• Manufacturing
• Transportation

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Transportation Fuels

• Two fuels dominate the transportation fuel
  market
• Diesel
• Biodiesel can be used to supplement or replace
  diesel fuel
• Gasoline

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Diesel Fuel Facts

• Diesel Fuel Facts
• Widely available
• Diesel engines are common
• Refining and transportation infrastructure is
  well developed
• Consumers know about diesel

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Diesel Fuel

• Recent Developments
• New diesel fuel standards (low sulfur diesel)
• New diesel burns cleaner (good)
• Lubricity is reduced (bad)
• Retail diesel prices have increased
• Why?
• Demand has been growing
• Refining capacity is strained
• Transportation capacity is strained
• Higher fuel quality standards

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Diesel Fuel
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Diesel Fuel
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Biodiesel Facts

• What is biodiesel?
• Fuel created from vegetable oil or animal fat
• Small-scale producers generally use vegetable oil
• Can be used in traditional diesel engines
• Biodiesel can be blended with diesel fuel
• Biodiesel be produced in small or large
  quantities

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Biodiesel Facts

• Lower energy content than Diesel
• Biodiesel 118,296 BTUs per gallon
• No. 2 Diesel 129,500 BTUs per gallon
• Source National Biodiesel Board
• Energy Lifecycle
• 3.2 units of energy are produced for each energy
  unit used
• Source NREL

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Biodiesel Facts

• What type of oil is most biodiesel made from?
• Soybean oil in the USA
• Rapeseed oil in Europe
• Is biodiesel the same as vegetable oil?
• No!

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Biodiesel

• Will biodiesel damage my engine?
• Noif the biodiesel meets the standards of ASTM
  6751
• One exception
• Biodiesel can damage certain natural rubber
  engine components over time
• Older engines may require the replacement of fuel
  lines and some gaskets
• These components are unlikely to fail immediately
  but may fail with increased biodiesel use

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Biodiesel
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Biodiesel Price

• Data from Clean Cities Alternative Fuel Price
  Report (DOE)

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SVO and WVO

• Straight Vegetable Oil is not biodiesel
• This includes Waste Vegetable Oil
• Diesel engines can be modified to run on
  vegetable oil
• Some users who have modified engines have
  reported long term problems using SVO

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SVO and WVO

• Main Problems
• These fuels are too thick.
• The must be thinned to function in a diesel
  engine
• How? By heating or a by chemical reaction (the
  chemical reaction is the biodiesel production)
• Problem is worse the lower the temperature
• Modified engines still typically use SVO in
  conjunction with diesel for start up and shut
  down
• No government incentives for SVO and WVO

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Oilseeds and Oilseed Processing
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Types of Oilseeds

• Major U.S. Oilseed Crops
• Soybean
• Cottonseed
• Sunflower

• Canola/Rapeseed
• Flaxseed
• Safflower

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Types of Oilseeds

• Other oil producing crops
• Corn
• Peanut
• Camelina

• Palm
• Olive
• Coconut

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Oilseed Crops 2007 Yields

• Crop Ave. Yield Ave. Oil Content
• Soybeans 41.7 bu/acre 22
• Canola 1,250 lbs/acre 40
• Flaxseed 16.9 bu/acre 38
• Safflower 1,215 lbs/acre 35
• Sunflower 1,436 lbs/acre 42
• Mustard 603 lbs/acre 36

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Oilseed Processing

• The Oilseed Processing Industry
• Separates the whole seed into 2 or more
  products
• The difference between the cost of the seed and
  the value of the products created is the
  crushing margin

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Processing Technology

• Two General Methods
• Solvent Extraction
• Standard technology for facilities with daily
  capacities of greater than 300 tons per day
• Commonly used in conjunction with some form of
  mechanical extraction
• Mechanical Extraction
• Typically used for facilities with daily
  capacities of less than 150 tons per day

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Solvent Extraction

• Nearly all commercial soybean processors use
  solvent extraction technology

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Solvent Extraction

• The basic process
• Seed Preparation
• Removal of foreign objects
• Removal of seed hulls or shells for some seeds
• Pre-Pressing
• Seed is crushed through a mechanical press
• Pre-Pressing removes some oil from high oil
  content seeds

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Solvent Extraction

• The basic process
• Solvent Application
• Solvent is applied to the pre-pressed material
• The solvent bonds to the oil in the material
• Solvent oil mixture is removed from the meal
• The oil is then separated from the solvent which
  is reused in the process

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Solvent Extraction

• Benefits
• Solvent Extraction is capable of recovering of
  99 of the oil contained in the seed
• Lowest cost per ton for commercial processing
• Challenges
• Large capital investment
• Not feasible for small-scale processing
• Environmental concerns

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Mechanical Extraction

• The basic process
• Seed Preparation
• Removal of foreign objects
• Removal of seed hulls or shells for some seeds
• Extraction
• Seed is processed by a mechanical press
• Removing 65-80 of oil contained in the seed

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Mechanical Extraction

• Required Equipment
• Mechanical Press
• Power source for the press
• Seed Bins
• Meal Bins
• Oil Tanks
• Pumps, Filters, Plumbing

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Example

• On-Farm Example
• If you plant 100 acres of canola,
• with an average yield of 1,100 lbs per acre,
• your production is approximately 55 tons

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Example

• The 55 tons of seed will yield approximately
• 4,200 gallons of oil
• 36 tons of meal
• Assuming The seed has 38 oil content and
  press recovers 75 of the oil content in the
  seed.

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Example

• On-Farm Example
• If you plant 100 acres of safflower,
• with an average yield of 800 lbs per acre,
• your production is approximately 40 tons

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Example

• The 40 tons of seed will yield approximately
• 2,800 gallons of oil
• 27 tons of meal
• Assuming The seed has 35 oil content and
  press recovers 75 of the oil content in the
  seed.

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Biodiesel Production Technology
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Biodiesel Process

• Basic Overview
• Inputs Oil, Alcohol Catalyst
• Outputs Biodiesel Crude Glycerin

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Biodiesel Process

• Sample Recipe
• Oil 100 Parts
• Alcohol 10 to 20 Parts
• Catalyst 0.5 to 3 Parts
• Manufacturers often provide a basic recipe
  to use as
• a starting point.

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Biodiesel Process

• Outputs
• Biodiesel 100 Parts
• Crude Glycerin 10-20 Parts

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Biodiesel Process

• Pre-Reaction Equipment
• Oil Storage Tank
• Alcohol Storage Tank
• Catalyst Storage
• Biodiesel Reactor
• Pumps, Filters, Plumbing

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Biodiesel Process

• Post-Reaction Equipment
• Settling tanks and/or Separating Equipment
• Washing Equipment
• Drying Equipment
• Biodiesel Storage Tank
• Glycerin Storage Tank
• Pumps, Filters, Plumbing

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Biodiesel Process

• Biodiesel Equipment
• Micro Scale Processors
• 100 gallons or less per batch
• Numerous Manufacturers
• Some sold as kits
• Others sold as ready to use
• Accessories included in the package varies

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Biodiesel Process

• Micro Scale Biodiesel Processor

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Biodiesel Process

• Biodiesel Equipment
• Small-Scale Processors
• 75 to 300 gallons per batch
• Fewer Manufacturers
• Usually not sold as kits
• Typically higher quality materials
• Accessories included in the package varies

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Biodiesel Process

• Small-Scale Biodiesel Processor

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Biodiesel Process

• Processing 4,200 Gallons
• 40 gallon processor 105 batches
• 60 gallon processor 70 batches
• 100 gallon processor 42 batches

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Final Products

• Biodiesel
• On-Farm Use
• Blended Fuels
• Fuel Quality Important
• Vehicle Modifications
• May need to replace natural rubber fuel lines and
  gaskets

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Final Products

• Crude Glycerin
• No Ready Market for Crude Glycerin
• Quantity produced is 10 to 20 of biodiesel
  production
• Contains Methanol Catalyst
• Possible Uses
• Compost
• Fuel Oil
• Refine to Pharmaceutical Grade Glycerin

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Government InvolvementRegulations, Incentives
Policies
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Federal Policy

• What agency is responsible for biofuel policy?
• A) Energy
• B) Agriculture
• C) Commerce
• D) Environmental Protection
• E) Transportation
• Answer All of the above

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Biofuels Policy

• Current federal policy for biofuels
• Most of the biofuels policy is
• Farm Energy
• Energy Policy
• Other agency are involved
• U.S. Dept. of Transportation
• Environmental Protection Agency
• Internal Revenue Service
• Department of Labor

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Key Federal Policies

• Biodiesel Incentives
• Biodiesel Blenders Tax Credit
• 1.00 per gallon for virgin oils
• 0.50 per gallon for recycled oils
• Small Producer Tax Credit
• 0.10 per gallon of Ethanol or Biodiesel

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State Programs Regulations

• Each state has different regulations and
  incentives for biodiesel.
• Check with your state officials for details
• You may need to check with Departments of
  Agriculture, Commerce, Environmental Protection,
  Transportation, and/or other departments

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Other Regulations

• Fire Safety Issues
• Methanol storage is subject to regulations of
  local fire marshals. Contact your local fire
  marshal
• Building Code Issues
• Production and storage of biodiesel, methanol and
  glycerin may violate building codes.

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Questions
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Economics of Biodiesel Production
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Oilseed Processing

• Oilseed Processing Assumptions
• Seed Cost 0.151 per pound
• Oil Content 40
• Recovery Rate 72
• Consistent with an average mechanical crush
• Labor Cost 10/hour
• Meal Revenue 120 per ton
• Net of transportation costs

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Oilseed Processing

• Assume 10 ton per day press
• Installed Cost of 11,485
• Financed for 10 years at 6
• Labor Cost 3,289 47
• Other Costs 3,704 53
• Total Cost 6,993
• Processing Cost per Ton 51

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Oilseed Processing

• Seed 274,110 lbs. _at_ 0.151 per lbs.
• Crushing 137 tons _at_ 51 per ton
• Meal 92.7 tons _at_ 120 per ton
• Oil 10,000 gallons
• Seed Cost 41,391
• Crushing Cost 6,993
• Total Cost 48,384
• Meal Revenue 11,124
• Net Cost 37,260
• Net Cost Per Gallon of Vegetable Oil 3.73

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Biodiesel Production

• Biodiesel Assumptions
• Based on 10,000 gallon per year
• With a 80-gallon batch processor
• Assumes 0 methanol recovery
• Labor at 10 per hour

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Biodiesel Production

• Cost/Unit /gallon
• Oil 3.73/gallon 3.73
• Methanol 2.32/gallon 0.44
• Catalyst 1.85/lbs. 0.07
• Labor 10/hour 0.37
• Capital Costs 10 years _at_ 6 0.14
• Fuel Quality Testing 0.10
• 1 ASTM/Year 5 test/batch
• All Other Operating Costs 0.01
• Total 4.86

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Biodiesel Production

• Producer
• Production Cost 4.86
• Producer Profit 0.00
• Small Producer Tax Credit -0.10
• State Production Incentive -0.10
• Transportation 0.00
• Price to Distributor 4.66
• Distributor/Blender
• Purchase Price 4.66
• Blenders Credit -1.00
• Federal Fuel Tax 0.25
• State Fuel Tax 0.28
• Distributor Profit 0.00
• Price to Retailer 4.19
• Retailer (on farm use avoids retail sales)
• Purchase Price 4.19
• Retailer Mark-up 0.00

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Sensitivity Analysis

• Price Change Biodiesel Change
• Seed Cost 0.01/lbs. 0.27/gallon
• Meal Revenue 10/ton 0.09/gallon
• Crushing Cost 10/ton 0.14/gallon
• Labor Cost 1/hour 0.07/gallon
• Biodiesel Labor only
• Labor cost change of 1/hour for oilseed
  processing 0.03/gallon
• Methanol Cost 0.50/gallon 0.10/gallon

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Questions?