2. Topics for Today:
• Introduction to Biodiesel
• Top 10 Reasons Smart Customers Are Using Biodiesel
• ASTM Specifications & Biodiesel Fuel Quality
• Legislative Updates Impacting Biodiesel Demand
• OEM Acceptance & Positions of Support for Biodiesel
• Biodiesel Resources & Future Training Opportunities
• Q&A
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3. What is Biodiesel?
A renewable fuel commercially refined
from a diverse array of fats and oils
by-products & used in normal diesel
engines
4. Biodiesel Defined
• Biodiesel, n. -- a fuel comprised of mono-alkyl
esters of long chain fatty acids derived from
vegetable oils or animal fats, meeting ASTM D
6751, designated B100.
• Biodiesel Blend, n. -- a blend of biodiesel fuel
with petroleum-based diesel fuel designated
BXX, where XX is the volume percent of
biodiesel.
5. Biodiesel Raw Materials
Oil or Fat Alcohol
Soybean Methanol
Corn Ethanol
Canola
Cottonseed Catalyst
Sunflower Sodium hydroxide
Beef tallow Potassium hydroxide
Pork lard
Used cooking oils
6. Future Feedstocks
Algae
Jatropha Halophytes
Brown Grease
Pennycress Photo by: Joel Rose Low Ricin Castor
7. Biodiesel Reaction
Reacting: In the presence of a catalyst Yields:
100 Lbs. 100 Lbs.
Vegetable
Biodiesel
Oil
or
Animal Fat
+
+
10 Lbs. 10 Lbs.
Alcohol Glycerine
Produces mono-alkyl esters –
chemically similar to diesel fuel
8. U.S. Biodiesel Production
by Calendar Year
Volume in RFS-2 Implemented
Gallons Biodiesel Tax Credit Extended
1.1
Billion
Economic Downturn
Economic Downturn
RFS2 Uncertainty
RFS2 Uncertainty
Lapse of Biodiesel Tax
Lapse of Biodiesel Tax
Credit
Credit
700
Million
545
Million
450
Million
315
250 Million
Million
112
Million
2005 2006 2007 2008 2009 2010 2011
9. Biodiesel: An “Advanced Biofuel”
Available Now
205 EPA-
Registered plants
nationwide with
over 3.08 Billion
GPY Capacity
10. Biodiesel Infrastructure
• Biodiesel and biodiesel blends are now
available nationwide from more than:
– 575 Distributors
– 850 Retailers
– 450 Truck Stops
– At least 1,875 Public Locations
• Visit the new NBB website at:
www.biodiesel.org/using-biodiesel/finding-
biodiesel/retail-locations to view biodiesel
retailers near you, by state, or along a route
11. Biodiesel in Pipelines
• B5 and lower blends are being transported on existing US
pipelines that do not carry jet fuel. Volumes relatively small.
• B5 and lower blends are being transported in Europe on lines
that carry jet fuel
– B100 level in jet fuel must be maintained <5 ppm
• Large project being executed to provide allowance of 100
ppm biodiesel in jet fuel
• This would enable biodiesel pipeline
shipment on all U.S. pipelines—
even those with jet fuel
12. Top 10 Reasons Why Smart
Customers Are Using Biodiesel
Why Biodiesel?
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13. #1 – America’s Advanced Biofuel
• Biodiesel is America’s first domestically produced,
commercially available Advanced Biofuel and meets
EPA requirements for inclusion and use under the
new Renewable Fuels Standard (RFS-2).
• RFS-2 mandates 36 billion gallons of renewable fuel
be used by obligated parties (i.e. refiners) by 2022
– 1 billion gallons biomass based diesel,
– 4 billion gallons un-differentiated advanced biofuel
• 2011 Volume Requirement = 800 Million Gallons
• 2012 = 1 Billion Gallons
• 2013 = 1.28 Billion Gallons 13
14. RFS-2 Advanced Biofuel
• EPA Definition 40 CFR 80.1401 - Advanced Biofuel
means renewable fuel, other than ethanol derived
from cornstarch, that has lifecycle greenhouse gas
emissions that are at least 50 percent less than
baseline lifecycle greenhouse gas emissions.
• Feedstock pathway MUST be EPA approved
• Biodiesel is the ONLY U.S. domestic fuel available in
commercial quantities that has been approved by the
U.S. EPA as an “Advanced Biofuel”
15. RFS-2 Approved Biodiesel Pathways
• Advanced Biofuel: Lifecycle GHG Emissions Must Be
At Least 50% Less Than Diesel Fuel - EPA Approved
Pathways:
• Vegetable Oils derived from Soybeans, Canola and
Camelina;
• Waste Oils / Yellow Grease;
• Animal fats;
• DDG Corn Oil derived from the ethanol production process;
• Algae, and
• Secondary annual crops planted on existing cropland
16. #2 – Lower Emissions
• U.S. biodiesel reduces lifecycle carbon emissions by
57% – 86% compared to petrodiesel, qualifying it as
an Advanced Biofuel under RFS-2 and making it the
best carbon reduction tool of any liquid fuel
commercially available.
– Biodiesel from Waste Oils, Waste Grease and Animal Fats
= 86% reduction in GHG Emissions
– Biodiesel from Soy based oils
= 57% reduction in GHG Emissions
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17. #3 – High Energy Balance
• Biodiesel has the highest energy balance (5.54
: 1) of any commercially available fuel,
returning 5.54 units of renewable energy for
every 1 unit of fossil energy needed to
produce it.
• Compression Ignition Platform (i.e. diesel
engine system) is 30-40% More Fuel Efficient
Than Spark Ignition (i.e. gasoline, CNG,
propane)
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18. #4 – Sustainability
• Biodiesel is produced from a variety of
renewable resources, such as plant oils, animal
fats, recycled grease, and even algae, making it
one of the most sustainable fuels on the planet.
• With biodiesel, you don’t sacrifice food for fuel.
Oils and fats for biodiesel are a minor by-
product of producing food for humans and
animals.
– Soybeans are 80% protein, 20% oil
– No one grows livestock for its fat content
– No one cooks more fried food to get used
oil for biodiesel
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19. #5 – Energy Security
• Biodiesel production reduces our
dependence on foreign oil from unstable
parts of the world, while expanding and
diversifying our domestic refinery
capacity.
• Biodiesel is the most economical option
for turning oils and fats into usable fuel
diesel applications:
– Low capital cost for facilities
– Low processing costs
• 80% of product cost is from oil/fat
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20. #6 – Better For Your Health
• Biodiesel is:
– Biodegradable
– Nontoxic:
• LD50 =17.4 g/Kg - less toxic than table salt
• Skin irritation less than that of 4% soap and water
solution
– Safer to handle: Flash point above 200 Degrees F,
Non-Reactive, Non-Corrosive
• Compared to petrodiesel, biodiesel reduces
black smoke (particulates), Carbon Monoxide,
and harmful unburned hydrocarbons that cause
smog.
21. #7 – Economic Benefits
• Biodiesel helps our U.S. economy and
improves our balance of trade.
• Using biodiesel creates added outlets for
farm based products and high paid
manufacturing jobs in rural parts of our
country.
• The 1.1 billion gallons of biodiesel
produced in the U.S. in 2011 also
supported over 39,000 U.S. jobs.
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22. #8 – Ease of Use
& Performance
• Using Biodiesel is easy!
• B20 and lower blends are a drop-in replacement for
diesel fuel; no vehicle modifications needed
• Can be used in any diesel engine / vehicle according to
OEM’s recommendations
– www.biodiesel.org/using-biodiesel/oem-information/oem-
statement-summary-chart for OEM positions
• No trade-offs in terms of engine performance, fuel
economy, horsepower, torque – essentially the
same as diesel
• Dispensed through existing fueling stations 22
23. # 9 – ASTM Specifications &
Technical Credibility
• Biodiesel production is guided by stringent ASTM fuel
specifications, developed through years of testing.
• The biodiesel industry works closely with OEMs and
Petroleum companies to identify needed technical
information
• Continued investment to answer technical questions that
arise is something that sets the biodiesel industry apart from
other fuels
• The ASTM D6751 specifications continue to improve and
evolve over time
– Especially as petrodiesel and engines change
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24. Biodiesel Standards:
ASTM D6751 is the approved standard for B100 for blending up to
B20, in effect since 2001
– Performance-based standard: Feedstock and Process Neutral
D975 – Covers petrodiesel and blends up to 5% biodiesel maximum
for on/off road engines; B5 is now fungible with diesel fuel
D396 – Covers heating oil and blends up to 5% biodiesel; B5 is now
fungible with petro-based heating oil
D7467 – Covers blends containing 6% to 20% biodiesel for on/off road
engines
– Designed so that if B100 meets D6751 and petro diesel meets
D975, then B6 to B20 blends will meet their specifications
– Important quality control is at B100 level
25. Additional Fuel Quality
Controls
• States’ Adoption of ASTM D6751 into law
2011: 48 states (AK, NJ remain)
• Active Enforcement
2011:
– 36 states have authority to
regulate fuel quality
– 20 states do proactive testing
26. #10 – BQ-9000 & Fuel Quality
• The biodiesel industry has an excellent fuel
quality program called BQ-9000 (www.bq-
9000.org).
• Helps ensure that only the highest quality
biodiesel meeting ASTM specifications gets
put into your fuel tanks.
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27. BQ-9000 Program
•Biodiesel Industry’s equivalent to an ISO 9000
program for biodiesel production & distribution
companies as well as testing labs
•BQ-9000 works hand-in-hand with the ASTM
specifications for biodiesel
•Quality Control System covers biodiesel
manufacturing, sampling, testing, blending, storage,
shipping, distribution
•ASTM Grade Fuel, BQ-9000 Companies
28. • NBB implemented BQ-9000 as a means to help instill
confidence in biodiesel with users and equipment
companies
• There are now three BQ-9000 designations:
– Producer (make it to spec)
– Marketer (buy spec, keep it in spec, blend it right)
– Certified Laboratories (test it to ensure it is in
spec)
• Many OEMs are now either requiring or strongly
encouraging BQ-9000
29. BQ Current Status
The latest numbers show that 81% of biodiesel
produced is by BQ-9000 accredited companies.
• 44 Producers
• 28 Marketer Terminals
• 7 Laboratories
32. Volume Standards as Set Forth
in EPA’s RFS-2
(
Total
Conventional Total
Renewable + Advanced =
Renewable
Fuel
Fuels
Non -Cellulosic
Advanced Biomass
Based Diesel + Advanced + Cellulosic =
Advanced
Total Advanced
33. Legislative Incentives
for Biodiesel
Other Federal Legislative Incentives for Biodiesel that
are Important to OEMs:
• EPACT Credits – (Energy Policy Act)
– Incentive for Fleets for B20+ Use; most economical option
for EPACT compliance
• CAFÉ Credits – (Corporate Avg. Fuel Economy)
– Incentive for Automakers for B20+ approval
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34. State Mandated &
Incentivized Markets
State Mandates
• In Effect: Consumption Incentives
• Minnesota (B5), rising to
B10 in May 2013; rising to • Illinois/Iowa/New York sales tax
B20 in May 2015 - 40 exemption: 70-120 MGPY
MGPY
• Washington (B2), 12 MGPY
• Oregon (B5), 14 MGPY Total
• Pennsylvania (B2), 26 mandated/incentivized
MGPY
• Misc. Fleets, 15 MGPY
volume: 180-230 MGPY in
• Total: 107 MGPY 2012
• Next to Implement:
• Massachusetts, Louisiana,
Connecticut, Vermont, • 430-490 MGPY in 2015
New Mexico (July 2012)
• B2 requirements: 34 MGPY
35. Illinois Tax Incentive
• All U.S. fuels are taxed by the federal government
• Most states also have an additional state tax
– Both are flat taxes, cents per gallon
• Illinois also has a state sales tax on fuel
– 6.25% of sales price, not a flat tax
• Sales tax removed on entire gallon if at least 10%
biodiesel is incorporated
• Incentive in place since 2003, just extended until 2018
• With removal of sales tax, B11 is cheaper than diesel
• IL Dept. of Revenue projects half of diesel market is
B11 35
37. OEM Warranty Statements
• All major OEMs selling diesel equipment in the U.S. support at least
B5 and lower blends, provided they are made with biodiesel
meeting ASTM D 6751
– Most OEMs are also recommending use of a BQ-9000 supplier
• 10 new OEM statements of B20 support so far in 2012, with more
expected soon!
• Now 77% of U.S. manufacturers (30 brands) support B20 or higher
blends in at least some of their equipment;
• More than 95% of the medium- and heavy-duty truck markets now
support B20
• For a complete listing of OEM position statements on biodiesel, as
well as the current U.S. Diesel Vehicles List, visit:
www.biodiesel.org/using-biodiesel/oem-information
40. OEM Support Summary
OEMs Supporting B100 OEMs Supporting B20 OEMs Supporting B5
Case IH Arctic Cat Audi *
Deutz AG Buhler BMW
Fairbanks Morse Caterpillar Mazda
New Holland Chrysler / Ram (in Ram for fleets) Mercedes Benz
Cummins Mitsubishi
Daimler Trucks - Including: PACCAR - Including:
- Detroit Diesel (upon - Kenworth
request)
- Freightliner / FCC - Peterbilt
- Thomas Built Buses UD Trucks *
- Western Star Volkswagen *
Ferris
Ford (2011+
models)
General Motors / Chevy (2011+
models)
HDT USA Motorcycles
Hino Trucks (2011+
models)
International / Navistar
Isuzu Commercial Trucks (2011+
models)
John Deere
Kubota
Mack
Perkins
Tomcar
Red type = New in 2012 Toro * = Currently completing B20 research
Volvo Trucks
Yanmar
41. New in 2012: Volvo Trucks &
Mack Support B20
Volvo & Mack B20 warranty statements:
• “Use of biodiesel up to a maximum of 20% (B20) in and of itself,
will not affect the manufacturer's mechanical warranty as to
engine and emissions system related components, provided the
bio fuel used in the blend conforms to ASTM D6751, B1 to B5
blends conform to ASTM D975, and B6 to B20 blends conform
to ASTM D7467.
• Engine and aftertreatment emissions system component
warranties are valid providing the B20 blend meets the
respective ASTM standard. Customers will need to utilize oil
sampling to establish appropriate drain interval(s) for their
specific application(s).”
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42. New in 2012:
Daimler Trucks NA
• All DTNA truck models
equipped with Cummins
engines are approved for use
with B20 biodiesel blends.
• DTNA truck models equipped
with Detroit Diesel
engines are currently
approved for B5, however B20
is allowed upon request. For
those customers wishing to
use B20 in Detroit Diesel
engines, please contact
jason.martin@daimler.com.
43. B20 Approved
Ford approves
B20 in all its
2011 MY and
beyond
Class 2 - 5 Super
Duty &
Class 6,7
Medium Duty
Trucks
2010 and prior models approved for use
with B5 under warranty.
44. B20 Approved
for Fleets
• Chrysler currently supports
the use of B20 in the 6.7L Ram
2500/3500 pickup for
government, military and
commercial fleets
• Chrysler plans to extend full
B20 support for all their diesel
vehicles equipped with
Cummins engines by January
2013
• New diesel Jeep Grand
Cherokee coming in 2013
(biodiesel blend TBA)
45. B20 Approved
All 2011 MY and beyond GM Heavy
Duty Products are approved for
B20:
Chevrolet
Silverado
GMC
Sierra
Chevrolet
Express
GMC
Savana
46. B20 Approved
New Chevy Cruze diesel passenger
car coming in 2013
• Biodiesel blend
approval TBA
• We are working with
GM to confirm B20
support for this vehicle
upon launch
47. Current B5 Positions
Approve B5:
– Audi **
– BMW
– Mazda
– Mercedes
– Mitsubishi **
– PACCAR:
– Peterbilt/Kenworth
– UD Trucks **
– Volkswagen **
** Actively researching B20
48. Why Support B20?
• ASTM specifications (ASTM D7467) are in place and being enforced
for B6-B20 blends, providing OEMs and consumers with greater
production controls and quality assurance
• BQ-9000 biodiesel quality program is robust and growing, currently
accounting for more than 81% of biodiesel in marketplace with goal
of 100%
• The Renewable Fuels Standard (RFS-2) calls for significantly
increased volumes of biodiesel to be used in U.S.
• State Mandates and Incentives are driving consumers toward use of
higher biodiesel blends
• CAFÉ Credits – Incentive for Automakers for B20+ approval
• Consumers and Fleets want the option to use B20 blends to reduce
their environmental impacts with optimal vehicle performance
• Differentiates your organization with a “green” competitive
advantage
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50. Using Biodiesel:
Biodiesel Use and Handling Guidelines:
• Ensure the biodiesel meets the ASTM specification for pure biodiesel
(ASTM D 6751) before blending with petro diesel.
• Purchase biodiesel and biodiesel blends from companies that have
been registered under the BQ-9000 fuel quality program when
possible.
• Ensure your biodiesel blend supplier provides a homogenous
product.
• Avoid long term storage of B20 and higher blends to prevent
degradation. Biodiesel should be used within six months.
• Prior to transitioning to B20, it is recommended that tanks be
cleaned and free from sediment and water. Check for water and
drain regularly if needed. Monitor for microbial growth and treat
with biocides as recommended by the biocide manufacturer.
50
51. Using Biodiesel:
• Biodiesel and biodiesel blends have excellent cleaning properties.
Fuel filters on the vehicles and in the delivery system may need to be
changed more frequently upon initial B20 use; after that, system
runs cleaner with no issues.
• Be aware of the biodiesel blend’s cold weather properties and take
appropriate precautions. When operating in winter climates, use
winter blended diesel fuel. Make sure the biodiesel blend cloud point
is adequate for the geographical region and time of year the fuel will
be used.
– New biodiesel grade #1-B ASTM specifications now available for winter-blend
biodiesel fuel
• Perform regularly scheduled maintenance as dictated by the engine
operation and maintenance manual.
51
52. Cold Weather Performance
B20 has been used Cold weather can cloud and even gel any
successfully in climates diesel fuel, including biodiesel.
below -20ºF
Users of a B20 with #2 diesel will usually
experience an increase of the cold flow
properties (cold filter plugging point, cloud
point, pour point) approximately 2 to 10°
Fahrenheit.
Similar precautions employed for petroleum
diesel are needed for fueling with 20 percent
blends.
• blending with #1 diesel / #1 biodiesel
• using fuel heaters and parking indoors
• and using a cold-flow improvement additive
53. B20 vs. Diesel: In the shop
• With in-spec B20 and lower, the issues you can
expect to see in your shop are the same as you will
see with petrodiesel
• Except:
– Expect to see fewer lubricity related issues
– Expect to see fewer problems with after-treatment
– Filter related issues may be related to cleaning effect upon
first use, or are likely normal diesel issues or out of spec or
imposter biodiesel
– Less black smoke from exhaust!
54. ASE Certified Training
• To see our curriculum of ASE-Certified
continuing education courses on Biodiesel for
Diesel Service Technicians, visit
www.BiodieselAutomotive.org
54
55. Biodiesel Training Webinar
Opportunities
August:
• Thurs. 8/9: Introduction to Biodiesel – An Overview for Dealers & Users
• Mon. 8/13: Key Biodiesel Industry Updates for Medium/Heavy Duty Truck
Dealers & Drivers
• Wed. 8/29: Biodiesel Selling Points & Service Advisories for Dealers
September:
• Wed. 9/12: Key Biodiesel Industry Updates for Light Duty Vehicle Dealers &
Drivers
• Tues. 9/25: Voice of the Customer – Fleet Experience with Biodiesel
Register Now at www.biodiesel.org/register or contact
Jennifer_Weaver@me.com to schedule a customized training session
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56. Biodiesel Resources
www.biodiesel.org
•Biodiesel Training Toolkit
•News Releases & Information Resources
•Technical Library, Spec Sheets & Videos
•OEM Warranty Positions on Biodiesel
• U.S. Diesel Vehicle List
www.nbb.org
•Official site of National Biodiesel Board
www.BQ-9000.org
•Listing of BQ-9000 Certified Companies
www.allthingsbiodiesel.com
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•Biodiesel merchandise, literature, pump labels and more!
58. Training & Promo Materials
Biodiesel Training Toolkit
flash drives are available upon
request for your dealership
staff and/or interested
customers.
Biodiesel Air Fresheners
have been a big hit among
OEM Dealers and customers.
They feature a QR code that
can be scanned to tell you
which biodiesel blend your
OEM supports.
To order, contact Jennifer_Weaver@me.com
Additional information has been documented on biodiesel’s use in cold weather. Of course, cold weather we know can cloud and gel any diesel fuel, including biodiesel, and users with B20 with No. 2 usually see a slight increase of the cold flow properties, about 2-10 degrees F colder than with normal diesel fuel. Similar precautions can be employed for petroleum diesel that are needed for biodiesel blends. Blends with No. 1 fuel use fuel heaters or parking indoors, or use a cold flow improvement additive.