Life-Cycle Assessment of Potential Algal Biodiesel Production in the United Kingdom
Biodiesel Potential in New Zealand
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Transcript of Biodiesel Potential in New Zealand
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Biodiesel Potential in New Zealand
Andrew SmithAdvisor Renewable Energy
EECA
26 July 2006
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Presentation outline
• Why Biodiesel?
• Production
• Feedstock Availability
• Costs of production
• Government involvment
• Biofuels Sales Obligation
• Future directions
• Summary
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Why Biodiesel?
• Colonial fuel self sufficiency
• Agricultural support
• Renewability/Sustainability
• Carbon emissions/Climate change
• Security of supply
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The real benefits
• Renewable
• Low net carbon emissions
• Numerous potential feedstock sources
• Reduced exhaust emissions
• Biodegradable and non toxic
• Better for engines
• Smells good
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The real issues
• Cost?• Low temperature properties• Vehicle compatibility with higher blends• Unusual vehicle fleet in New Zealand• New Zealand is a long way behind many other
countries
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Production
•Oils or fats + methanol = biodiesel + glycerol
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Feedstock
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Feedstock availability
• Waste cooking oil – 4000 tonnes p/a• Tallow
– NZ produces roughly 150,000 tonnes p/a – Of that 30,000 tonnes are used domestically– 120,000 tonnes are exported
• If 120,000 tonnes can be used to produce biodiesel this would be equivalent to 5% of current diesel use
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Costs of production
• Best estimates are a production cost of approximatley NZ$0.70 a litre
• This makes biodiesel economic at oil prices of between US$45 – 50 bbl
• As of yesterday crude oil was US$75 bbl• What will the price of oil be this time next year?
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Government Involvement
• Since 2001 there has been an indicitive target of the use of 2 PJ (<1%) of biofuels in NZ by 2012
• To date been in a classic ‘chicken & egg’ situation– Fuel users can’t buy biodiesel so there is very limited demand– Biodiesel manufacturers won’t invest without good demand
• Incentives aren’t really appropriate for something that is clearly economic currently
• Solution is to stimulate demand
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Biofuels Sales Obligation
• In 2008 the government is proposing to introduce a biofuels sales obligation
• All oil companies will be required to sell a small percentage of their annual fuel turnover as biofuels
• The percentage will ramp up till 2012• Volume required will be tied to feedstock availability and
‘lumpiness’ of supply
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Future directions
• Biodiesel from crops• Biodiesel or synthetic fuel from algal oil• Synthetic fuel from biomass
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Summary
• Biodiesel a good option for supplementing mineral diesel supplies
• Economic now when produced from waste and by-products
• Close to being indroduced in New Zealand• Good potential for increased production in the
future• Likely to be a subject of increasing R&D over the
next 5-10 years
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