Biodiesel Use and Fuel Biodiesel Use and Fuel Conservation in FleetConservation in Fleet

Operations Operations

What is Biodiesel ?What is Biodiesel ? -Biodiesel, the trade name for methyl -Biodiesel, the trade name for methyl

esters, can run in any diesel engine with esters, can run in any diesel engine with little or no modification. Biodiesel burns little or no modification. Biodiesel burns much cleaner than petrol-diesel, it's much cleaner than petrol-diesel, it's biodegradable and non-toxic, made from biodegradable and non-toxic, made from vegetable crops, waste oil, and a growing vegetable crops, waste oil, and a growing list of sustainable sources. It is also list of sustainable sources. It is also "carbon-neutral," meaning that it puts no "carbon-neutral," meaning that it puts no more carbon dioxide into the atmosphere more carbon dioxide into the atmosphere than was absorbed by the plants from than was absorbed by the plants from which it is made. which it is made. Depends. Depends.

-Rudolf Diesel ran first diesel engine on -Rudolf Diesel ran first diesel engine on peanut oil. Cheaper petroleum ended peanut oil. Cheaper petroleum ended vegetable oil use.vegetable oil use.

What is Biodiesel What is Biodiesel Biodiesel offers economic, environmental, fuel Biodiesel offers economic, environmental, fuel

quality and energy security benefits vs. quality and energy security benefits vs. petroleum-based diesel. petroleum-based diesel.

• • Soybean oil is by far the leading feedstock for Soybean oil is by far the leading feedstock for biodiesel production in the US. Other sources biodiesel production in the US. Other sources include canola oil (rape seed), corn oil, and used include canola oil (rape seed), corn oil, and used cooking oils and fats. cooking oils and fats.

• • Natural oils are converted to biodiesel by a Natural oils are converted to biodiesel by a relatively simple refining process called relatively simple refining process called transesterification. transesterification.

B100, B20, B5 etc refers to percent of Biodiesel in B100, B20, B5 etc refers to percent of Biodiesel in Diesel FuelDiesel Fuel

Lubricity is “slipperiness of fuel or lubricantsLubricity is “slipperiness of fuel or lubricants

Biodiesel Rapid GrowthBiodiesel Rapid Growth According to the Biodiesel 2020 market study, the According to the Biodiesel 2020 market study, the

growth in the U.S. has been staggering "biodiesel growth in the U.S. has been staggering "biodiesel consumption in the U.S. grew from 25 million consumption in the U.S. grew from 25 million gallons per year in 2004 to 78 million gallons in gallons per year in 2004 to 78 million gallons in 2005," and the number of retail stations tripled 2005," and the number of retail stations tripled during that time.during that time.

To meet this spike in demand, 50 new biodiesel To meet this spike in demand, 50 new biodiesel plants are expected to come online in the U.S. plants are expected to come online in the U.S. alone between 2007 and 2008. With this growing alone between 2007 and 2008. With this growing demand and competition in the market, new demand and competition in the market, new manufacturing technologies are sprouting, and manufacturing technologies are sprouting, and we can expect to see more biodiesel being we can expect to see more biodiesel being brewed from algae cultures, more efficient crops, brewed from algae cultures, more efficient crops, animal fats, and all sorts of waste grease.animal fats, and all sorts of waste grease.

Biodiesel Growth Since 2000Biodiesel Growth Since 2000(2008 Projected Capacity)(2008 Projected Capacity)

Yr 2000 2

Yr 2001 4

Yr 2002 16

Yr 2003 20

Yr 2004 25

Yr 2005 75

Yr 2006 250

Yr 2007 450

Yr 2008 1700

Biodiesel Growth Since 2000

Series1 Series1 Series1 Series1 Series1Series1

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Series1

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600

800

1000

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Yr 2000 Yr 2001 Yr 2002 Yr 2003 Yr 2004 Yr 2005 Yr 2006 Yr 2007 Yr 2008

Year

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Oneonta Biodiesel HistoryOneonta Biodiesel History 20022002- - Concerns of smell and pollution of OPT Concerns of smell and pollution of OPT

trolley prompt my investigation into Biodiesel. trolley prompt my investigation into Biodiesel. (Vegetable/ plant based diesel fuel)(Vegetable/ plant based diesel fuel)

Contacted Jim Doi, sales engineer for Mirabito. Contacted Jim Doi, sales engineer for Mirabito. Jim is unaware of Biodiesel, investigates and Jim is unaware of Biodiesel, investigates and supplies us with 55 gallon drum of B100 (100% supplies us with 55 gallon drum of B100 (100% BiodieselBiodiesel))

B100 mixed at Central Garage with regular diesel B100 mixed at Central Garage with regular diesel fuel. Smell and smoke problem abate somewhat fuel. Smell and smoke problem abate somewhat with no performance problems.with no performance problems.

Oneonta Biodiesel HistoryOneonta Biodiesel History

2003- 2003- Continued research into Biofuels. Continued research into Biofuels.

When in San Francisco for Gillig bus When in San Francisco for Gillig bus purchase, visited San Francisco Fire purchase, visited San Francisco Fire Department maintenance section. San Department maintenance section. San Francisco Fire Department testing and Francisco Fire Department testing and hope to move to biodiesel for entire fleethope to move to biodiesel for entire fleet..

Oneonta Biodiesel HistoryOneonta Biodiesel History

2004- 2004- Research continues. Attend Research continues. Attend seminars. seminars.

Additional meetings with Mirabito. Additional meetings with Mirabito. Presentation to OSCD.Presentation to OSCD. Second round bus purchases. Revisit SFFD. Second round bus purchases. Revisit SFFD.

They have no operational biodiesel They have no operational biodiesel problems.problems.

Oneonta Biodiesel HistoryOneonta Biodiesel History 20052005- At budget discussion, spoke of using - At budget discussion, spoke of using

Biofuels-operational and financial impacts. Talks Biofuels-operational and financial impacts. Talks with Mirabito continue.with Mirabito continue.

Hurricane Katrina disables refineries causing Hurricane Katrina disables refineries causing diesel shortage. Cincinnati Area Transit uses diesel shortage. Cincinnati Area Transit uses B100 for entire fleet to get through crisis.B100 for entire fleet to get through crisis.

Research continues. National spec’s developed to Research continues. National spec’s developed to insure quality biodiesel fuel. ULSD fuel on horizon.insure quality biodiesel fuel. ULSD fuel on horizon.

Oneonta fleet surveyed for non-compliant rubber Oneonta fleet surveyed for non-compliant rubber fuel hosing, seals. Profile for acceptable use set fuel hosing, seals. Profile for acceptable use set for Oneonta. Only post 1998 vehicles and vehicle for Oneonta. Only post 1998 vehicles and vehicle that “turn” a tank every three months.that “turn” a tank every three months.

Oneonta Biodiesel HistoryOneonta Biodiesel History

– 20062006- Purchasing agent includes spec’s in - Purchasing agent includes spec’s in annual joint OSCD, County, City of Oneonta annual joint OSCD, County, City of Oneonta fuel bid with Biodiesel option for July 1, 2006. fuel bid with Biodiesel option for July 1, 2006. Mirabito installs Biodiesel tanks on Carbon Mirabito installs Biodiesel tanks on Carbon Street. Street.

– SFFD 100% BiodieselSFFD 100% Biodiesel– Fire Department first department 100% Fire Department first department 100%

Biodiesel in July 2006. No operational effects. Biodiesel in July 2006. No operational effects. Other departments come slowly online.Other departments come slowly online.

– Winter 2006 best ever in terms of fuel Winter 2006 best ever in terms of fuel problems. Zero. Why? Good spec’s. Close problems. Zero. Why? Good spec’s. Close monitoring.monitoring.

Oneonta Biodiesel HistoryOneonta Biodiesel History

2007- Continued growth in Biodiesel use 2007- Continued growth in Biodiesel use by departments. No operational issues.by departments. No operational issues.

Some nay-sayers: “ tree hugger” ideasSome nay-sayers: “ tree hugger” ideas March price of Bio less than regular diesel.March price of Bio less than regular diesel. OPT goes 100% Biodiesel in December OPT goes 100% Biodiesel in December

2007. On target for 100,000 gal/yr2007. On target for 100,000 gal/yr Winter 2007 no winter fuel problems.Winter 2007 no winter fuel problems. Premium price for biodiesel growsPremium price for biodiesel grows..

Current StatusCurrent Status

2008- Market crash leads to 2008- Market crash leads to speculation in futures marketsspeculation in futures markets

Biodiesel price soarsBiodiesel price soars Government impacts worse Government impacts worse (no taxes on (no taxes on

fuel versus private fleet that get tax credits for Biodiesel)fuel versus private fleet that get tax credits for Biodiesel)

Considering switch to B5Considering switch to B5

Biodiesel ConcernsBiodiesel Concerns StandardsStandards-- next slide next slide Fuel Gelling-Fuel Gelling- make sure winter mix is adequate make sure winter mix is adequate

(mixed with kerosene or anti-gels) All diesel is (mixed with kerosene or anti-gels) All diesel is subject to gelling at cold temperatures.subject to gelling at cold temperatures.

Fuel filter cloggingFuel filter clogging. Biodiesel cleans out lines . Biodiesel cleans out lines and tanks. You may have to change some filters. and tanks. You may have to change some filters. We did one out of regular routine.We did one out of regular routine.

Deteriorates rubber lines and seals. Deteriorates rubber lines and seals. We We found all post 1998 equipment ok.found all post 1998 equipment ok.

Lack of powerLack of power. Loss of 2-3% made up by better . Loss of 2-3% made up by better oxygenation and fuel density.oxygenation and fuel density.

Buy-inBuy-in. Many anecdotal myths. Ask what are the . Many anecdotal myths. Ask what are the big guys doing. Thruway didn’t tell employees big guys doing. Thruway didn’t tell employees and ran for a year without problems. “Lack of and ran for a year without problems. “Lack of power” stories surface after disclosure.power” stories surface after disclosure.

Biodiesel StandardsBiodiesel Standards The Biodiesel Standard (ASTM D 6751)The Biodiesel Standard (ASTM D 6751)

All engines are designed and manufactured for a fuel that All engines are designed and manufactured for a fuel that has certain characteristics. In the US, the industry has certain characteristics. In the US, the industry organizations’ consensus on fuels is the American Society organizations’ consensus on fuels is the American Society for Testing and Materials (ASTM). In the case of diesel fuel for Testing and Materials (ASTM). In the case of diesel fuel (and biodiesel), the responsibility lies within ASTM (and biodiesel), the responsibility lies within ASTM Committee D02 on Petroleum Products and Lubricants. To Committee D02 on Petroleum Products and Lubricants. To assure that the standards are rigorous and robust, ASTM assure that the standards are rigorous and robust, ASTM committee D02 is comprised of fuel producers, engine committee D02 is comprised of fuel producers, engine equipment manufacturers, and others. ASTM uses ballot equipment manufacturers, and others. ASTM uses ballot process in which process in which a single negative vote is enough to defeat a single negative vote is enough to defeat a ballot.a ballot.. Some standards can take over 10 years to gain . Some standards can take over 10 years to gain agreement. This rigorous, time-consuming process is why agreement. This rigorous, time-consuming process is why ASTM standards are recognized worldwide.ASTM standards are recognized worldwide.

For diesel fuel, the ASTM standard is ASTM D 975. All For diesel fuel, the ASTM standard is ASTM D 975. All engine and fuel injection manufacturers design their engine and fuel injection manufacturers design their engines around ASTM D 975. engines around ASTM D 975.

It is critical that fuel specification meet these standards and It is critical that fuel specification meet these standards and supplier is monitored for compliance. ISO 9000 companies supplier is monitored for compliance. ISO 9000 companies are preferred.are preferred.

The Biofuels factor in rising food The Biofuels factor in rising food

What's causing the global rise in food What's causing the global rise in food pricesprices??

Everything.Everything.

““Those who say it's all the fault of Biofuels are wrong and those Those who say it's all the fault of Biofuels are wrong and those that say that none of the fault belongs to Biofuels are wrong. that say that none of the fault belongs to Biofuels are wrong. There is no doubt Biofuels have added to the problem, but Biofuels There is no doubt Biofuels have added to the problem, but Biofuels are not causing the demand for meat and soybeans for feed in are not causing the demand for meat and soybeans for feed in China...There are a half a dozen things going on and it's hard to China...There are a half a dozen things going on and it's hard to sort out who gets the blame.”sort out who gets the blame.”

Walter Falcon, a professor emeritus of international agricultural policy at Stanford University and , a professor emeritus of international agricultural policy at Stanford University and co-director of Stanford's Center for Environmental Sciences and Policy.co-director of Stanford's Center for Environmental Sciences and Policy.

2007- Continued growth in Biodiesel 2007- Continued growth in Biodiesel use by departments. No operational use by departments. No operational issues.issues.

March price of Bio less than regular March price of Bio less than regular diesel.diesel.

OPT goes 100% Biodiesel in OPT goes 100% Biodiesel in December 2007.December 2007.

Winter 2007 no winter fuel problems.Winter 2007 no winter fuel problems. Premium price for biodiesel grows.Premium price for biodiesel grows.

Corn is probably the commodity most directly Corn is probably the commodity most directly impacted by Biofuels. An estimated 25 to 30 impacted by Biofuels. An estimated 25 to 30 percent of the U.S. corn crop goes to ethanol. percent of the U.S. corn crop goes to ethanol. “That amount of demand has come out of “That amount of demand has come out of nowhere. Three years ago, the amount of corn nowhere. Three years ago, the amount of corn used for ethanol was rather small and no one used for ethanol was rather small and no one predicted this." predicted this."

Ken Cassman, a professor of agronomy and horticulture at the University of , a professor of agronomy and horticulture at the University of

Nebraska-Lincoln.Nebraska-Lincoln. Worldwide, ethanol accounts for around 5 Worldwide, ethanol accounts for around 5

percent of grain production, according to percent of grain production, according to statistics from the statistics from the Earth Policy Institute. .

"The spike in corn prices began with the "The spike in corn prices began with the Energy Security Act of 2005, which increased Energy Security Act of 2005, which increased the goal for ethanol use in the U.S., and the goal for ethanol use in the U.S., and Hurricane Katrina. Replacing the gas additive Hurricane Katrina. Replacing the gas additive MTBE also contributed. MTBE also contributed.

Crop land usageCrop land usage This chart shows domestic This chart shows domestic

corn consumption and use. corn consumption and use. It's going up faster than It's going up faster than

available croplandavailable cropland..

OTHER FACTORS PUSHING HIGHER FOOD PRICES:

*Increasing meat consumption in China and India has driven up the price of feed.

*It takes 4 pounds or more of feed protein to produce one pound of animal protein

*Increased demand for milk and cheese - cows need feed to provide dairy.

*In 2007, farmers shifted millions of acres of soybeans over to corn production causing soy prices to rise which has contributed to the rise in meat prices because soy is a feedstock.

*Soy is major source of protein and vegetable oil in Asia and elsewhere. Diminished soy supplies increase both food and Biofuels costs.

*Oil at over $100 a barrel pushes cost of production in farming and fertilizers.

Alternatives for the futureAlternatives for the future

More productive seed oils-More productive seed oils- rapeseed, rapeseed, controlled Japura plantingscontrolled Japura plantings

More intensive waste oil conversionMore intensive waste oil conversionCellulosic ethanol, produced from , produced from

wood chips, waste, plant and crop wood chips, waste, plant and crop fiber, switchgrass and other biomassfiber, switchgrass and other biomass

Algae biodieselAlgae biodieselMethane and LNG biodieselsMethane and LNG biodiesels

Example of Positive Impact Example of Positive Impact of One Company’s of One Company’s

Implementation of Idle-Implementation of Idle-Reduction PolicyReduction Policy

Sample CompanySample CompanyEngine Idling of FleetEngine Idling of Fleet

What is the effect of What is the effect of engine idling on fuel engine idling on fuel

consumption?consumption?

Engine IdlingEngine Idling

One company truck on an annual One company truck on an annual basisbasis

The truck used 5,142 gallons of fuel The truck used 5,142 gallons of fuel in a yearin a year

It idled for 35% of the timeIt idled for 35% of the time Fuel mileage is reduced by 5%Fuel mileage is reduced by 5% 493 gallons of diesel fuel are being 493 gallons of diesel fuel are being

consumed during idling in a year.consumed during idling in a year.

Engine IdlingEngine Idling

Actual company truck one week in a Actual company truck one week in a given monthgiven month

The truck traveled 1,117 milesThe truck traveled 1,117 miles It idled for 18% of the timeIt idled for 18% of the time DailyDaily idling time was 1 hour 58 minutes idling time was 1 hour 58 minutes DailyDaily idling fuel consumed is one gallon idling fuel consumed is one gallon Fuel mileage is reduced by 2.4%Fuel mileage is reduced by 2.4%

Engine IdlingEngine IdlingWhere does idling occur?Where does idling occur? Pre-trip Pre-trip

– Idle only until the engine is at operating temperature.Idle only until the engine is at operating temperature.

While making deliveriesWhile making deliveries– The truck must be shut off at each stop. Many stores The truck must be shut off at each stop. Many stores

require that you do. require that you do.

Waiting in trafficWaiting in traffic– We have no control over this occurrence.We have no control over this occurrence.

WaitingWaiting in the truckin the truck– Each Driver should use their own judgment about how long Each Driver should use their own judgment about how long

to run the engine.to run the engine.

Engine IdlingEngine IdlingEighteen states have adopted Eighteen states have adopted

idle-reduction rulesidle-reduction rules

New York – Limit 5 minutes – fine of $375 to $15,000New York – Limit 5 minutes – fine of $375 to $15,000– Exemption – if motionless for two hours and temp is below Exemption – if motionless for two hours and temp is below

2525° F.° F. New Hampshire – Limit 5 minutes – fine TBDNew Hampshire – Limit 5 minutes – fine TBD

– Exemption – 15 minutes if temp between 32 and -10Exemption – 15 minutes if temp between 32 and -10° F° F Connecticut – Limit 3 minutes – fine up to $5,000Connecticut – Limit 3 minutes – fine up to $5,000

– Exemption – temp less than 20° FExemption – temp less than 20° F New Jersey – Limit 3 minutes – fine $10,000 to $50,000New Jersey – Limit 3 minutes – fine $10,000 to $50,000

Engine IdlingEngine Idling

Company Fleet Idling average for Company Fleet Idling average for one yearone year

22.71% per truck22.71% per truck

.45 gal per hour.45 gal per hour

455 hours per year / truck455 hours per year / truck

209.66 gallons consumed / truck209.66 gallons consumed / truck

Engine IdlingEngine Idling

5,154.21 gallons5,154.21 gallons– Fuel consumed by the fleet during idlingFuel consumed by the fleet during idling

115,371.84 lbs of CO115,371.84 lbs of CO22 producedproduced– Adding to company’s greenhouse gas Adding to company’s greenhouse gas

emissionsemissions

$ 14,689.50 ($ 14,689.50 (fuel @ $2.85/galfuel @ $2.85/gal) ) – To purchase fuel used for To purchase fuel used for idling aloneidling alone

Engine Idling Reduction Engine Idling Reduction ChallengeChallenge

The ChallengeThe Challenge– Reduce the amount of time that Reduce the amount of time that

our trucks idle by 20% - 2000 our trucks idle by 20% - 2000 hours.hours.

– Reduce fuel consumption – use Reduce fuel consumption – use 1000-2000 fewer gallons1000-2000 fewer gallons

– Save $3-8,000 or more by being Save $3-8,000 or more by being more efficientmore efficient

Engine Idling Reduction Engine Idling Reduction ChallengeChallenge

The OutcomeThe Outcome– Decreases Operating CostsDecreases Operating Costs– Reduces our impact on the Reduces our impact on the

environment by reducing greenhouse environment by reducing greenhouse gas emissionsgas emissions

– Enhances our City’s Social Enhances our City’s Social Responsibility reputationResponsibility reputation

– Taxpayers see City as proactive in Taxpayers see City as proactive in dealing the environmentdealing the environment

– A healthier work environmentA healthier work environment

What can influence fuel economy?What can influence fuel economy? Climate/Fuel-Climate/Fuel-not muchnot much AerodynamicsAerodynamics-utiity fleets - not much-utiity fleets - not much Gearing-Gearing- very low engine rpm while at very low engine rpm while at

cruise speedcruise speed Tires –Tires –Regular tire pressure checks -20% Regular tire pressure checks -20%

underinflated tires can cost 10% fuel underinflated tires can cost 10% fuel reductionreduction

Driving SpeedDriving Speed – 1/10 gal per each MPH – 1/10 gal per each MPH over 55over 55

Idle Time- ½ to Idle Time- ½ to – 1 ½ gal per hr– 1 ½ gal per hr

# 1 Component in Saving Fuel - # 1 Component in Saving Fuel - Driving TechniqueDriving Technique

The industry has found that the most significant variable to fuel The industry has found that the most significant variable to fuel economy is the driver. The driver controls vehicle speed, shifting economy is the driver. The driver controls vehicle speed, shifting techniques, idle time, acceleration, brake usage, safety practices techniques, idle time, acceleration, brake usage, safety practices and more. Studies have shown that identically spec’d trucks to see and more. Studies have shown that identically spec’d trucks to see as much as a 35 percent fuel economy difference between trucks-as much as a 35 percent fuel economy difference between trucks-a difference that is solely due to variances in skills, practices and a difference that is solely due to variances in skills, practices and attitudes of the drivers.attitudes of the drivers.

While engine electronics can provide some necessary tools to help While engine electronics can provide some necessary tools to help improve fuel mileage, the most important tool is driver training. improve fuel mileage, the most important tool is driver training. No matter how the truck is spec'd or how the customer No matter how the truck is spec'd or how the customer parameters are set, the one thing that is consistent in trucks parameters are set, the one thing that is consistent in trucks getting good fuel economy is a driver with a getting good fuel economy is a driver with a good attitudegood attitude and and good understanding of proper and safe driving techniques.good understanding of proper and safe driving techniques.

Safe Drivers are fuel efficient drivers Safe Drivers are fuel efficient drivers Jim Booth Jr., field service coordinator, Caterpillar Global On-Highway,Jim Booth Jr., field service coordinator, Caterpillar Global On-Highway,

Green RoadGreen RoadTMTM clients have clients have

Reduced overall accidents by 54% Reduced overall accidents by 54% Reduced at-fault accidents by 42% Reduced at-fault accidents by 42% Reduced high risk driving behavior Reduced high risk driving behavior

by 50% by 50% Decreased fleet fuel costs and CO² Decreased fleet fuel costs and CO²

emissions by 7%emissions by 7%