2. Objective and Topics
โข Upon completion of this session, you will gain a better
understanding of: what biodiesel is, the latest biodiesel
industry technical developments, which biodiesel blends the
various OEMs support, and how biodiesel can be promoted
and used successfully in the diesel vehicles you sell, operate,
or service.
โข Brief Introduction to Biodiesel
โข Top Five Reasons Smart Customers Are Using Biodiesel
โข ASTM Fuel Specifications and Fuel Quality
โข Legislative Updates Impacting Demand
โข OEM Acceptance and Positions of Support
โข Biodiesel Use and Handling Guidelines
โข Sales and Service Tips for Dealers
โข Information Resources / Q and A
2
3. What is Biodiesel?
A renewable Advanced Biofuel commercially
derived from a diverse array of fats and oil
by-products and used in normal diesel
engines.
3
4. Biodiesel Defined
โข 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.
โข Biodiesel Blend, n. -- a blend of biodiesel
fuel with petroleum-based diesel fuel
designated BXX, where XX is the volume
percent of biodiesel.
โข EPA Definition 40 CFR 80.1401 - Advanced
Biofuel means renewable fuel, other than
ethanol derived from cornstarch, that has
lifecycle greenhouse gas emissions that are
at least 50 percent less than baseline
lifecycle greenhouse gas emissions (i.e.,
diesel fuel) 4
6. 2013 Feedstock Use
Soybean Oil
53%
Canola Oil
7%
Distillers Corn Oil
10%
Animal Fats
11%
Recycled Oils
13%
Palm Oil
6%
2013 Feedstock Utilization (Jan to Dec)
Oils and fats for biodiesel
production are minor by-products
of producing food for human and
animal consumption
7. Where do we expect additional
gallons in the future?
โข Non-traditional
Agricultural
Land
โข Algae
Winter Annuals
Yield Growth
Algae
โข Virtual Acres
Halophytes
8. Other Lipid Sources
โข Yield Technology
โข Increased Recovery of Yellow
Grease
โข Brown Grease
โข Camelina
โข Brassica Juncea
โข Jatropha Photo by: Joel Rose
9. Biodiesel Reaction
100 Lbs.
Vegetable Oil
or
Animal Fat
+
10 Lbs.
Alcohol
Methanol
or Ethanol
100 Lbs.
Biodiesel
+
10 Lbs.
Glycerine
In the Presence of a CatalystReacting: Yields:
Transesterification process produces mono-alkyl esters โ
chemically similar to diesel fuel 9
Sodium Hydroxide or
Potassium Hydroxide
12. Biodiesel Infrastructure
โข Biodiesel and biodiesel blends are now
available nationwide from more than:
630 Distributors
859 Retailers
506 Truck Stops
At least 1,995 Public Locations
โข 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
โข NBB Mobile App โBiodiesel Nowโ identifies locations en-route
12
13. โข B5 and lower blends are being transported on existing U.S.
pipelines that do not carry jet fuel. Volume is relatively small,
but current research is expected to allow more.13
Pipelining Biodiesel
15. #1 โ Itโs Here and Now
โข Biodiesel is Americaโs first domestically produced, commercially
available Advanced Biofuel and meets EPA requirements for
inclusion and use under the new Renewable Fuels Standard (RFS-2).
โข RFS-2 mandates 36 billion gallons of renewable fuel be used by
obligated parties (i.e. refiners) by 2022
Biomass-Based Diesel Volume Requirement
2011 800 Million Gallons
2012 1 Billion Gallons
2013 1.28 Billion Gallons
2014 ??? (1.28 BG Proposed)
15
16. #2 โ Biodiesel Is Cleaner
โข U.S. biodiesel
reduces lifecycle
carbon
emissions by
over 50 percent
compared to
petro diesel
โข Best carbon
reduction tool of
any liquid fuel
commercially
available
16
17. #2 โ Biodiesel is Cleaner
โข Other tailpipe emissions are also reduced by running on biodiesel, especially
in pre-2010 diesel engines without aftertreatment systems
โข NOx issue eliminated in todayโs new technology diesel engines
Emission Type B20 B2
Total Unburned
Hydrocarbons
-20% -2.2%
Carbon Monoxide -12% -1.3%
Particulate Matter -12% -1.3%
Oxides of Nitrogen (NOX) +/-2% +/-.2%
17
18. #3 โ Sustainability
โข Not sacrificing food for fuel
โข Biodiesel is produced from a variety of
renewable resources and by-products of
producing food for humans and animals
โข From the soybeans used to produce biodiesel,
81% of the soybeanโs yield is protein that
enters the market for either human
consumption or animal feed.
18
19. #4 โ Energy Security & Economy
โข Reduces our dependence on foreign oil
โข Expands and diversifies our domestic
refinery capacity
โข Most economical option for turning oils
and fats into usable fuel diesel
applications
โข Creates added outlets for farm-based
products
โข Creates U.S. manufacturing jobs
19
20. #4 โ Energy Security & Economy
โข The nearly 1.8 billion gallons of biodiesel
produced in 2013 supported more than
62,000 jobs across the U.S. and generated
nearly $17 billion in economic activity.
โข The 6.45 billion gallons of biodiesel
produced in the U.S. since 2005 have:
โ Displaced 6.45 billion gallons of diesel
fuel
โ Decreased lifecycle GHG emissions by
64 million tons
20
21. Myth: 5 Percent of the Diesel
Market Is Not Significant
โข REALITY โ 5 percent displacement would have
significant impacts.
โ 5 year average of on-highway diesel fuel demand in the
U.S. is 37.8 billion gallons
โ Replacing 5 percent with biodiesel = 1.88 billion gallons
of biodiesel
โข The growth in domestic production has contributed
to a significant decline in petroleum imports. The
share of total U.S. liquid fuels consumption met by
net imports peaked at more than 60% in 2005 and
fell to an average of 33% in 2013. EIA expects the net
import share for liquid fuels to decline to 25% in
2015, which would be the lowest level since 1971.
โข Source: Energy Information Administration
http://www.eia.gov/forecasts/steo/report/us_oil.cfm
U.S. BIODIESEL INDUSTRY VISION:
Replace 5 percent of petroleum
diesel use with Biodiesel by 2015
Replace 10 percent of petroleum
diesel use with Biodiesel by 2022
21
22. 0
0.5
1
1.5
2
2.5
3
2012 2013 2014 2015 2016 2017
NBB VolumeRecommendationsto EPA, Gallons per Year
NBB members set a 10 year vision for volume levels of
4 billion gallons per year by 2022
Vision For Future Volumes
22
23. #5 โ Ease of Use and Performance
Using Biodiesel Blends is Easy! Up to B20:
โข Biodiesel blends can be used in any diesel engine/vehicle per
manufacturerโs recommendations
โข B5 โ B20 use covered under OEM warranty
โข Drop-in replacement for diesel fuel
โข No vehicle modifications needed
โข Similar, seamless performance compared to diesel
โข Dispensed through existing fueling stations
โข Comparable fuel prices to diesel
โข Low overall cost of ownership
โข High biodiesel energy balance โ 5.54 : 1 (B100)
โข 30-40 percent fuel efficiency gains with diesel engine
23
24. #5 โ Ease of Use and Performance
Biodiesel Delivers Important Diesel Properties:
โข Auto-ignition = Cetane Number over 50
โข BTU Content = Similar to #1, less than #2
โข Viscosity = Values in diesel fuel range (1.9 to 6.0)
โข Cloud Point = Current biodiesel higher than #2
โข Lubricity = Naturally high in lubricity
โข Sulfur = Naturally less than 15 ppm
โข Cleanliness = ASTM specs same as petrodiesel
โข Stability = Spec currently set for six-month minimum
shelf life; promising new research could increase time
โข Emissions = Significantly less for PM, HC, CO
24
26. Biodiesel Standards:
ASTM D6751 is the approved standard for B100 for blending up to B20, in
effect since 2001
โ Performance-based standard: feedstock and process neutral
D975 โ Covers petrodiesel and blends up to five percent biodiesel maximum
for on/off road engines; B5 is now fungible with diesel fuel
D396 โ Covers heating oil and blends up to five percent biodiesel; B5 is now
fungible with petro-based heating oil
D7467 โ Covers blends containing six to twenty percent biodiesel (B6-B20) for
on/off road engines
โ Designed so that if B100 meets D6751 and petro diesel meets D975,
then B6 to B20 blends will meet their specifications
โ Important quality control is at B100 level
26
27. Additional Fuel Quality Controls
โข States that have
adopted ASTM D6751
โ 2007: 27
โ 2013: 48
(AK and NJ remain)
โข States with proactive
enforcement
โ 2007: 7
โ 2013: 23
Fuel Quality
Proactive Testing
Proactive
Testing
No
Proactive
Testing
27
28. BQ-9000 and Fuel Quality
โข The biodiesel industry has an excellent fuel
quality program called BQ-9000 (www.bq-
9000.org)
โข Helps ensure that only the highest-quality
biodiesel meeting ASTM specifications gets put
into your fuel tanks
โข ASTM Grade Fuel, BQ-9000 Companies
28
29. The latest numbers show that over 87% of biodiesel
produced is by BQ-9000 accredited companies.
29
BQ-9000 Certified
47%
58%
66%
65%
63%
79%
81%
85%
87%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13
%Volume
Fiscal Year
Percentage of BQ9000 Producer Biodiesel
30. BQ-9000 Companies
โข As of March 31, 2014, there are currently 51
accredited Producers approved within the program
โข There are also 27 accredited Marketers / Blenders
โข Additionally, we have 13 accredited Labs
The NBAC is currently working on a new Program for
BQ-9000 Retailers. Additional information may be
found at www.bq9000.org
30
31. 2013 NREL Fuel Quality
Survey
โข Over 87% of biodiesel in the market produced by
BQ-9000 approved companies
โข Samples from 53 producers and 14 terminals
were collected
โข Critical properties were tested (free/total
glycerin, metals, oxidation stability, acid value,
etc.)
โข More than 95% of all the samples collected met
the specification limits
34. Federal Legislation
Other federal legislative incentives that are
important to OEMs and fleets:
โข Biodiesel Tax Incentive
โ $1.00 per gallon blenders tax credit
โ Incentive expired as of 12/31/13; industry
seeking retroactive reinstatement
โข EPACT Credits (Energy Policy Act)
โ Incentive for fleets for B20+ use; most
economical option for EPACT compliance
โข CAFร Credits (Corporate Average Fuel Economy)
โ Incentive for automakers for B20+ approval; set
to expire after model year 2015
34
39. Volumes Driven by State Policy
0
0.5
1
1.5
2
2.5
3
2012 2015 2020
RFS-2
State Polices
39
40. Illinois Tax Incentive
โข All U.S. fuels are taxed by the federal government
โข Most states also have an additional state tax
โ Both are flat taxes, cents per gallon
โข Illinois also has a state sales tax on fuel
โ 6.25 percent of sales price, not a flat tax
โข Sales tax removed on entire gallon if at least 10 percent
biodiesel is incorporated
โข Incentive in place since 2003, extended until 2018
โข With removal of sales tax, B11 is cheaper than diesel
โข Illinois Department of Revenue projects half of diesel market is
B11
40
41. Iowa Incentives
โ Retailer Credit
โข Increased to 4.5 cents for B5 blends
โ Renewable Fuels Infrastructure
โข $3 million per year
โ Producer Credit
Established at:
โข 2012 โ 3 cents per gallon
โข 2013 โ 2.5 cents per gallon
โข 2014 โ 2 cents per gallon
41
42. California LCFS - Summary
โข Low Carbon Fuel Standard signed into law in 2006 (AB 32)
โข Implemented in 2010
โข Worldโs first performance-based LCFS
โข Requires 10% carbon intensity reduction by 2020
โข Phases in over 10 years
โข Includes broad โsustainabilityโ requirements
โข Being implemented, but litigation is pending & pressure is
being applied to reduce targets
42
46. 46
Diesel to be No. 1 transport fuel by 2020
โข ExxonMobil: Diesel will surpass gasoline as the No. 1 global transportation fuel
by 2020. Diesel demand will account for 70% of the growth in demand for all
transportation fuels through the forecast period to 2040. Although natural gas
will play a greater role as a transportation fuel by 2040, it will remain only a
small share of the global transportation fuel mix, at 4% by 2040, up from todayโs
1%, according to ExxonMobilโs forecast.
โข The World Energy Outlook: Diesel fuel will remain the โdominantโ growth fuel
between now and 2035, according to the International Energy Agency. Globally, the
report suggests the possibility of only a 2% share of natural gas in the heavy-duty
transport market by 2035.
โข The National Petroleum Council: 2012 report: โAdvancing Technology for Americaโs
Transportation Future,โ for the U.S. DOE: โDiesel engines will remain the powertrain
of choice for HD (heavy-duty) vehicles for decades to come because of their power
and efficiency."
47. 2014 Brings More Clean Diesels to U.S. Market
โข 44 new clean diesel car, truck and SUV models
available now or launching soon in MY 2014
โข Auto industry experts predict more than 60
clean diesel models in North America by 2017
โข Additionally, more than 27 other OEMs
supplying over 150 different diesel models for
Medium- and Heavy-Duty truck, bus and RV
markets, as well as off-road equipment
48. OEM Warranty Statements
โข 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
โ Most OEMs are also recommending use of a BQ-9000 supplier
โข 10 new OEM statements of B20 support in 2012, 7 in 2013;
more in the worksโฆ
โข Over 78 percent of U.S. manufacturers (39 brands) support B20 or
higher blends in at least some of their equipment;
โข Nearly 90 percent of the medium- and heavy-duty truck markets
support B20
โข 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
48
49. โข Vehicle performance and emissions benefits
โข ASTM specifications
โข BQ-9000 biodiesel quality
โข Renewable Fuels Standard (RFS-2)
โข State Mandates and Incentives
โข EPACT Credits
โข โGreenโ competitive advantage
โข Consumers and fleets want the option
Why Are the Majority of
OEMs Supporting B20?
49
52. OEMs Supporting B20+
New OEM B20 Support Statements in 2013
52
* * *
* Currently allow up to B20 in Illinois only
53. Ford approves
B20 in all its
2011 MY and
beyond
Class 2 - 5
Super Duty &
Class 6,7
Medium Duty
Trucks
And in the
2014 Ford
Transit Van
B20 Approved โ New Updates
53
54. B20 Approved โ New Updates
โข Chrysler supports the
use of B20 in the 6.7L
Ram 2500/3500 pickup
and in its all new 2014
Ram 1500 light duty
diesel pickup
โข New 2014 diesel
Jeep Grand Cherokee
Approved for B20
54
55. All 2011 MY and beyond GM Heavy Duty
Products continue to be approved for B20, andโฆ
Chevrolet
Silverado
GMC
Sierra
Chevrolet
Express
GMC
Savana
55
56. New in 2013:
56
2014
Chevrolet Cruze
Approved for use with
B20
โข First light-duty
diesel passenger
car approved for
use with B20
nationwide in U.S.
57. New in 2013: VW & Audi
โข Allowance for up to B20 in 2009-2013 MY Volkswagen and
Audi TDI models registered in the state of Illinois; currently
allow B5 in all other states
โข โYour vehicle was originally designed to run on โULSDโ - Ultra Low Sulfur Diesel No. 2 โ
fuel that complies with ASTM D-975 specifications and permits up to a maximum blend
of 5% biodiesel (B5).
โข Due to Illinois state tax incentives for biofuels, biodiesel blends of B5 or less may not be
available in Illinois. However, we want to assure you that Volkswagen and Audi will
continue to honor the terms and conditions of the Volkswagen / Audi Limited
Warranties that came with your vehicle.
โข Biodiesel blends (up to B20) may be used in your Illinois-registered TDIยฎ Clean Diesel
vehicleโฆ โ
ยป Letter from VW / Audi to all TDI customers in IL, Feb. 2013
57
58. New in 2013: Mercedes
โข Resuming sales of Mercedes diesel vehicles in the state of
Illinois where B11 blends are common; currently allow B5 in
all other states
โข Both customers and dealers alike in Illinois have expressed
growing demand for Mercedesโ diesel products and now MBUSA
feels confident that it can again offer the BlueTec diesel
technology in Illinois.
โข The fuel quality and customer experiences will be tracked quite
closely to ensure customer satisfaction and maintain the trend of
increased diesel acceptance.
โข Mercedes recently delivered a brochure to Mercedes dealers and
diesel customers in Illinois, educating them on fueling and service
considerations associated with blends of biodiesel higher than B5.
58
59. Current B5 Positions
Approve B5:
โ Audi** (Allow B20 in IL)
โ BMW
โ Hustler Turf Equipment
โ Mercedes ** (Allow B20 in IL)
โ Mitsubishi Fuso
โ PACCAR:
โ Peterbilt / Kenworth **
โ Volkswagen ** (Allow B20 in IL)
** Actively researching B20
59
60. Biodiesel Position TBA:
โข JCB
โข Mahindra
โข Mazda
โข Porsche
โข Nissan
โข NBB is working with these OEMs to clarify their
biodiesel position
60
62. Biodiesel Use and
Handling Guidelines
โข Perform regularly scheduled maintenance per OEM
โข Use only fuel that meets ASTM D6751 / D7467 specifications
โข Purchase from BQ-9000-certified suppliers when possible
โข Ensure fuel supplier conducts proper fuel blending
โข Current recommendation is that biodiesel blends should be used
within six months; promising research could increase shelf life
โข Storage tanks should be free from sediment and water, and
cleaning is advisable
โข Cleaning properties of biodiesel may call for fuel filter change
upon first switching to biodiesel
โข Be aware of cold weather properties and take appropriate
precautions
62
63. Cold weather can cloud and even gel any
diesel fuel, including biodiesel.
Users of a B20 with #2 diesel will usually
experience an increase of the cold-flow
properties (cold filter plugging point, cloud
point, pour point) at approximately 2 to 10ยฐ
Fahrenheit.
Similar precautions employed for petroleum
diesel are needed for fueling with 20 percent
blends.
โข Blending with #1 diesel / #1 biodiesel
โข Using fuel heaters and parking indoors
โข Using a cold-flow improvement
additive
Cold-Weather Performance
B20 has been used
successfully in climates
below -20ยบF
63
64. B20 Versus Diesel:
In the Shop
โข With in-spec B20 and lower, the issues you can expect to
see in your shop are the same as you will see with petro
diesel
โข Except:
โ Expect to see fewer lubricity-related issues
โ Filter-related issues may be related to cleaning effect
upon first use, or are likely normal diesel issues,
imposter biodiesel or raw vegetable oil
โ Less black smoke from exhaust!
โข NBB offers ASE-Certified Diesel Technician training to help
distinguish and diagnose fuel issues
64
65. ASE Certified Training
โข To see our curriculum of ASE-Certified
continuing education courses on
Biodiesel for Diesel Service Technicians,
visit www.BiodieselAutomotive.org
65
66. Sell Green To Make Green โ Tips:
1. Know your OEMโs warranty position on biodiesel and
be honest in sharing it with your customers
2. Promote the increased cetane, lubricity and
environmental benefits of using biodiesel blends in
diesel vehicles
3. Advise your customers to use ASTM spec fuel,
sourced from BQ-9000 suppliers
4. Be proactive with fuel filter checks as part of your
regular service checklist
5. Continue your education with our ASE certified
courses on Biodiesel for Diesel Service Technicians
and other online biodiesel resources
66
67. Biodiesel Resources
๏www.biodiesel.org
โขBiodiesel Training Toolkit
โขNews Releases & Information Resources
โขTechnical Library, Spec Sheets & Videos
โขOEM Warranty Positions on Biodiesel
โข U.S. Diesel Vehicle List
๏www.nbb.org
โขOfficial site of National Biodiesel Board
๏www.BQ-9000.org
โขListing of BQ-9000 Certified Companies
๏www.allthingsbiodiesel.com
โขBiodiesel merchandise, literature, pump labels and more!
67
68. Thank You!
Questionsโฆ?
Jennifer Weaver
OEM Outreach and Education
Program Specialist
For the National Biodiesel Board
Ann Arbor, MI
734-904-3822
Jennifer_Weaver@me.com
68
Steve Howell
Senior Technical Advisor
For the National Biodiesel Board
Kearney, MO
816-903-6272
showell@marciv.com
