Oregon Trucking Associations April 12, 2007 Pacific Northwest Truck Museum BioFuels and Their Impact...

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Oregon Trucking Associations April 12, 2007 Pacific Northwest Truck Museum BioFuels and Their Impact on Oregon Transportation Mark Fitz Slide 2 Presentation Overview Introduction A Short History of BioDiesel Why BioDiesel What is BioDiesel Frequently Asked Questions The BioDiesel Mandates Resources for Fleets Conclusion Slide 3 StarOilco has been in continuous business since 1936. Since 1936 as a company we have sold wood, coal, solar heat, petroleum, and biofuels. In the late 1970s and early 1980s StarOilco experimented with alcohol fuels and solar panels. In 2001 StarOilco began to actively develop a biofuels program seeking to deliver BioDiesel and Ethanol with the same convenience to customers as petroleum. No other company in Portland can claim as much experience and leadership with biofuels as StarOilco. StarOilco and BioDiesel Slide 4 Oregons Only Commercial Biodiesel Production Facility Slide 5 Patent awarded to Rudolph Diesel in 1893. Debuted at the 1900 Worlds Fair in Paris, France. Initially designed and shown as a vegetable oil (i.e. BioDiesel) powered engine. A Brief History of BioDiesel Slide 6 The use of vegetable oils for engine fuels may seem insignificant today. But such oils may become in the course of time as important as petroleum and the coal tar products of the present time. -- Rudolph Diesel, 1912 Rudolph Diesels Engine Slide 7 Pre-Diesel Transesterfication Commercially used in soap production. 1893 Rudolph Diesel invents compression ignition engine to run on vegetable oil 1930s use in South Africa as a commercial fuel WWII used by Germans as a fuel stock extender. East German agriculture continued to produce BioDiesel after the war. The EU instituted widespread use of BioDiesel in the 1990s as part of the renewable fuels initiative. In the US a movement of small home-brewers and small commercial producers begins to develop primarily around waste vegetable oil. These small producers built the initial awareness that created the industry. 1992 the Soy industry forms the National BioDiesel Board to coordinate research and development programs developing the American BioDiesel industry. 2005 The US creates a tax credit of $.99 a gallon for virgin oils and $.50 for reclaimed oils produced and sold as BioDiesel blended with diesel. 2005 Minnesota is the first state to require BioDiesel mandate of B2 blend for all on road use of diesel. A Brief History of BioDiesel Slide 8 1880s Henry Ford incorporated ethanol for power into earlier designs. 1908 Henry Ford incorporates adjustable carburetor into Model T specifically for rural ethanol. Henry Ford directly owned stakes in ethanol production to bolster his vehicles position in the agricultural belt of the US. Prohibition and low petroleum prices eliminated ethanol until the 1970s. A Similar History for Ethanol Slide 9 Sustainability/Cleaner Burning Renewable energy with little impact to the environment. Significant CO2 Reduction (nearly green house gas neutral). Reduces harmful diesel emissions such as particulate, carbon monoxide, and others. Economic Development Supports value added channels for American agriculture. Creates jobs particularly in high unemployment agriculturally dependent communities. Keeps money inside the United States growing our economy. Energy Independence American Made, American Grown, American Consumed. Reduces foreign oil dependence. Spurs further investments in other renewable energy technologies. Less money paid to oil producing nations who oppose our interests. Why BioDiesel? Slide 10 Markets for Crude Oil Crude Oil ~80 million ~6 million ~20 million MM of Barrels consumed GLOBALLY each day MM of Barrels consumed in the U.S. each day MM of Barrels consumed in China each day Slide 11 Markets for Diesel and Gasoline Diesel Gasoline ~57 billion ~110 billion ~2 million ~4 million ~720 million ~1.4 billion Gallons consumed in U.S. in 2002 Gallons consumed in Oregon each year Gallons consumed in Oregon each day $4 million $8 million $$$ Out of the Oregon economy each day Slide 12 BioDiesel: A diesel fuel refined from plant and animal oils and adhering to ASTM D 6751 specification. What is BioDiesel Slide 13 3 MeOH NaOH Catalyst O = OO O Triglyceride 1 triglyceride + 3 alcohol catalyst OOO Me O = HO Glycerol Biodiesel (Methyl Ester Alcohol) Courtesy Dr. Jeff Woldstad, Oregon State University 3 ester alcohol + 1 glycerin Chemistry of BioDiesel Slide 14 What are the different numbers? BioDiesel blend descriptions start with the letter B accompanied by the percentage of BioDiesel in the bled. B99 99% BioDiesel B20 20% BioDiesel 80% Petroleum ULSD B5 5% BioDiesel 95% Petroleum ULSD B2 2% BioDiesel 98% Petroleum ULSD BioDiesel Blend I.D. Slide 15 B20 Emissions Slide 16 B99 Emissions Slide 17 Cleaning Effect of BioDiesel Cleans out tanks and fueling systems. A good thing as long as your drivers and maintenance schedule are prepared. Be prepared to swap out fuel filters with next oil change after start. Compatibility of Components BioDiesel is a natural solvent which can degrade natural rubber parts. Vehicles newer than 1995 should be compatible with higher blends of BioDiesel. Not a concern in blends of B5 and below. Cold Weather Operation Similarly with ULSD only higher gelling temperatures. In blends of B5 and below treat exactly the same as ULSD operation. In higher blends consult your fuel supplier about the need for a more aggressive additive regiment. The 3 Cs of BioDiesel Slide 18 Higher Lubricity Increased Cetane Rating No Petrochemical Smell Reduced Emissions Renewably Made in Oregon Stable Price Supports Farmers/Domestic Economy More Loads for Oregon Trucks BioDiesels Positives Slide 19 Your drivers and mechanics are likely unfamiliar with it. It will clean out your systems in an unpredictable timeframe. The cost this summer may go up. The availability of supply this summer may be short. BioDiesels Negatives Slide 20 What do I need to change? B5 requires little consideration No change required other than routine maintenance considerations. B20 Be prepared. Unlikely, but potential that fuel system parts might see failure or premature wear. Schedule to change the fuel filter either before first tank of BioDiesel or with next oil change. B99 Train your fleet in preparation of B99 Be prepared for fuel system parts that might fail. Increase changing of the fuel filters in line with the preventive maintenance schedule for your fleet. BioDiesel F.A.Q. Slide 21 How much does BioDiesel cost? Typically more today Probably less tommorow Most stable fuel available Retail prices have stayed within pennies in the Portland metro area for 20 months at roughly $3.00 a gallon PUC. BioDiesel F.A.Q. Slide 22 What about the OEMs and Warranty? B5 and under is approved and has a long track record of safe and consistent use. B20 is approved with many newer engines and has millions of miles of use in many mixed fleets. All Portland garbage haulers since March 1 st, 2007. B99 is currently case by case Ask and youll be told maybe Several B99 fleets currently served by SeQuential BioDiesel: Organically Grown Company City of Portland Water Bureau C-Tran Neil Kelly and others BioDiesel F.A.Q. Slide 23 Vehicle and engine warranties cover Materials & Workmanship The Manufacturer warrants their product only The Manufacturer does not cover any fuel A Warranty CAN NOT be denied just because BioDiesel was used Watch for the Flat-Tire-Syndrome associated with BioDiesel Warranty Why Maybe? Slide 24 Flat tire huh. Golly! Must be that new BioDiesel fuel. BioDiesel F.A.Q. Slide 25 Oxidative Stability The inside of the new engines is a hot place. Stability of fuel left in engine over long periods of time Compatible Materials Long term wear and tear on parts coming into contact with BioDiesel. Specifying BioDiesel Get product from a reputable company willing to speak with your OEM about fuel quality. Ensure you are getting quality, consistent, fresh ASTM BioDiesel The OEMs Worries Slide 26 State of Minnesota B2 since 2006 State of Washington Volumetric, 2% usage Statewide passed in 2006 State of Oregon (in session) B2 expected this session City of Portland Renewable Fuel Standard passed in 2006 B5 starting July 1, 2007 United States (proposed) B2 jointly proposed by the National BioDiesel Board and the American Trucking Association to supersede all boutique BioDiesel mandates. BioDiesel Mandates Slide 27 Business Energy Tax Credit (BETC) Justin Klure, Oregon Dept. of Energy City of Portland Biofuel Grants Michele Crim, City of Portland Office of Sustainable Development Financial Programs Slide 28 Business Energy Tax Credit 35% Tax Credit Available Must be Pre-Approved Pass-Through option allows you to sell the tax credit for 25.5% of value Business Energy Tax Credit to those who invest in energy conservation, recycling, renewable energy resources and less-polluting transportation fuels. Justin Klure at the Oregon Department of Energy at 503-373-1581 or at justin.klure@state.or.us Slide 29 Retail and Fleet Biofuels Infrastructure Grant Up to $10,000 per project available Awarded on a first come first served basis Requires application and award Can be taken in conjunction with BETC Limited funds still available Contact Michele Crim with the City of Portland Office of Sustainable Development at 503-823-5311 Portland Biofuels Grants Slide 30 B5 and lower blends of BioDiesel should not alter your fleets operation at all. Conclusion Slide 31 National BioDiesel Board www.BioDiesel.orgwww.BioDiesel.org US DOE Alternative Fuels Data Center BioDiesel Information Page www.eere.energy.gov/afdc/afc/bio_vehicles.html BioDiesel Document List www.eere.energy.gov/afdc/progs/dsearch3.cg?BIOD 2006 BioDiesel Use and Handling Manual www.eere.energy.gov/afdc/progs/vwbs2.cgi?9521 Oregon Department of Energy (Justin Klure 503-378-4040) www.oregon.gov/ENERGY/index.shtmlwww.oregon.gov/ENERGY/index.shtml Business Ene