June 20, 2008 1

FUEL MANAGEMENT AT WASHINGTON STATE

FERRIES

Paul Brodeur, Director of Vessel Maintenance, Preservation and EngineeringJonathan Olds, Environmental Program Manager

BC Marine Biodiesel

SymposiumJune 20, 2008

June 20, 2008 2

• Background Information on WSF Vessels and Routes Fuel Facts and Prices

• WSF Clean Fuel & Fuel Conservation Initiatives• ULSD and WSF’s First Biodiesel Pilot Project• Washington State Biodiesel Legislation• Biodiesel Research and Demonstration Project

Presentation Outline

June 20, 2008 3

• The largest ferry system in the United States 28 vessels, 10 vessel classes

• Operating on 10 routes through 20 terminals

• Each year, WSF carries on average 24+ million passengers 11+ million vehicles

Washington State Ferries

June 20, 2008 4

WSF Routes

Vary by: Transit time Passengers & vehicles carried Navigational challenges Proximity to population centers Emergency response capabilities

June 20, 2008 5

Vessel Class

Mark II

IssaquahSuper

Mark I or Jumbo

June 20, 2008 6

Vessel Class

Evergreen State

Rhododendron

Steel Electric

June 20, 2008 7

WSF Fuel Facts

• 2007 Fuel Consumption • 2007 Fuel Costs• FY’07 – FY ’09 Fuel Budget • Use of Low-Sulfur Diesel• Use of Ultra-low Sulfur Diesel• Use of Biodiesel

June 20, 2008 8

Current Diesel Fuel Prices

Price per US gallon *

• Low Sulfur $3.76 Low Sulfur $2.09 (6/1/07) Low Sulfur $2.41 (5/16/06) Low Sulfur $1.72 (5/16/05)

• Ultra Low Sulfur $3.78 Ultra Low Sulfur $2.10 (6/1/07) Ultra Low Sulfur $2.46 (5/16/06) Low Sulfur $1.75 (5/16/05)

* As of June 4, 2008 Prices are before all taxes

June 20, 2008 9

WSF Fuel & Emissions Management Initiatives

• Exhaust Emissions Study• Clean Fuel Initiative• Machinery Upgrades• Fuel Conservation Initiative• Biodiesel Testing

M. V. Rhododendron

June 20, 2008 10

• High sulfur diesel fuel (HSD• Low sulfur diesel fuel (LSD)• Ultra-low sulfur diesel fuel

(ULSD)• Blend of low sulfur diesel fuel

with 20% biodiesel (B20 – LSD)

WSF Exhaust Emission StudyTest Fuels

June 20, 2008 11

Clean Fuel Initiatives

• New engine installations • Conversion of fleet to Low

Sulfur Diesel• Pilot test of Ultra-low Sulfur

Diesel• Pilot test of Biodiesel• Diesel fuel conservation

June 20, 2008 12

Machinery Upgrades

• Engine Modifications• Fuel Injector Upgrades• Main Propulsion Engine

Replacements• Ships Service Generator

Prime Mover Engine Replacements

June 20, 2008 13

Fuel Conservation Initiatives in Progress

• Run vessels on fewer engines• Reduce fuel margin carried• Positive restraint system

• Waste heat recovery

June 20, 2008 14

Why Biodiesel at WSF?

• Governor’s executive order

• WSF fuel initiatives

• Experience

June 20, 2008 15

2004-05 Biodiesel Pilot Tests

Usage / Costs

• 100% Virgin Soy was specified• 843,157 gallons B-20• Costs• Seattle City Light Partnership

June 20, 2008 16

2004-05 Biodiesel Pilot Test

Issues

Purifier disk stack with B-20 Purifier disk stack with LSD

MV Issaquah

Fuel Oil Purifier disk stack

June 20, 2008 17

MV IssaquahFuel Oil Purifier bowlThe mysterious “Butterscotch Mousse”

Issues

2004-05 Biodiesel Pilot Test

June 20, 2008 18

Biodiesel Legislation

• 2006 Legislation - ESSB 6508 Renewable Fuel Standard

• 2% of annual diesel fuel sales will be biodiesel sales 2% requirement must be met with

feedstocks grown in WA On or before November 30, 2008

• Increases to 5% In-state oil seed crushing capacity and

feedstock grown in WA can satisfy 3% of total annual diesel fuel sales

June 20, 2008 19

Biodiesel Legislation

2007 Legislation ESS HB 1303• June 1, 2009 – State agencies

required to use a minimum 20% biodiesel in diesel powered vessels and vehicles

• June 1, 2015 – State agencies must satisfy 100% of their fuel usage in vessels and vehicles from bio-fuel or electricity if practical

June 20, 2008 20

Statewide Biodiesel Working Groups

• Department of Agriculture lead Agency• Two groups working in parallel Bio-fuels Advisory Committee which is

charged with advising the Director or Agriculture on implementing the minimum renewable fuel content requirements

Bio-fuels Technical Working Group which is developing statewide labeling, sampling and testing standards

June 20, 2008 21

Biodiesel Research and Demonstration Project

Partnership Opportunity

• Senator Cantwell’s Office• Department of Energy• Puget Sound Clean Air

Agency• Seattle City Light• Washington State Ferries

June 20, 2008 22

Biodiesel Research and Demonstration Project

Project Steering Committee Members

June 20, 2008 23

Project Steering Committee Responsibilities

• Drafting of RFPs• RFP evaluations• Contract award

recommendations• Project management• Committee oversight and

input

Biodiesel Research and Demonstration Project

June 20, 2008 24

Biodiesel Research and Demonstration Project

Project Team Members

June 20, 2008 25

Biodiesel Research and Demonstration Project

OBJECTIVES• Controlled, scientific research

study• Identify sources of quality problems• Marine and land based consumers• Develop fuel quality assurance

testing system• Develop a product handling

guidance document

June 20, 2008 26

Biodiesel Research and Demonstration Project

Project Organization• Phase I developed research sampling

and test procedures. • Phase II implemented the new quality

assurance test procedures derived from research in phase I.

• Phase III involves controlled research tests under actual ferry operating conditions.

June 20, 2008 27

Biodiesel Research and Demonstration Project

Contracting• Phases 1 and 2: PSCAA has let a

contract for the research effortsWashington State University University of Idaho Imperium Renewables

• Phase 3: PSCAA has cpontracted with The Glosten Associates

Assist the project team in the implementation and demonstration phase of the project

June 20, 2008 28

Biodiesel Research and Demonstration Project

Phase 1

Washington State University

• Assess previous WSF experience• Develop fuel specifications for

various feedstocks• Design test procedures and

sampling protocols for fuel quality

June 20, 2008 29

Biodiesel Research and Demonstration Project

Phase 1 Cont.

Fuel quality looked at throughout the supply chain

• Production• B-100 transport• Storage• Blending• Blended transport • On board storage tanks

June 20, 2008 30

Biodiesel Research and Demonstration Project

Phase 2• Trial of Phase 1 sampling protocols

and test procedures and fuel specifications

• Use existing “real world” biodiesel transport, fuel storage, fuel blending and blended fuel transport systems

• Parallel controlled laboratory experiments simulating marine environment

June 20, 2008 31

Biodiesel Research and Demonstration Project

Phase 3

• Implement phase 2 testing procedures and sampling protocols

• Controlled demonstration project on WSF vessels

• Incorporating research results including use of recommended biodiesel blended fuels

• Bio-fuels from different feedstocks and different blend ratios

June 20, 2008 32

Biodiesel Research and Demonstration Project

Final Report

• Identify the sources / conditions that contribute to biodiesel blended fuel contamination and filter clogging

• Document best practices to protect fuel quality

• Address environmental conditions for biodiesel application in the marine industry

June 20, 2008 33

Biodiesel Research and Demonstration Project

Final Report Cont.

Document all research with a focus onmarine and land based applications:

• Recommended fuel quality specifications

• Fuel test procedures• Sampling protocols

June 20, 2008 34

Biodiesel Pilot Test Implementation Schedule

DATE VESSEL FUEL TYPE PERCENTAGES

March 2008MV

Issaquah Soy

B5 first 30 daysB10 next 30 daysB20 there after

April 2008 MV Tillikum Canola

B5 first 30 daysB10 next 30 daysB20 there after

July 2008MV

Klahowya

High Cloud Point -Tallow

B5 first 30 daysB10 next 30 daysB20 there after

June 20, 2008 35

Testing to date• Issaquah is burning B20 Soy• Tillikum is burning B5

Canola• Klahowya has not begun

biodiesel test

Biodiesel Research and Demonstration Project

June 20, 2008 36

ULSD / US Gallon $3.78Soy Biodiesel / US Gallon $5.75

80% ULSD $3.0320 % Biodiesel +$1.15B20 Blend $4.18ULSD - $3.78Premium $0.40

Fuel CostsAs of June 4, 2008

* Before all taxes

June 20, 2008 37

B100 Biodiesel vs. ULSD Diesel FuelPrice per US Gallon on State

Contract

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

$5.00

May

-06

Jun-

06

Jul-0

6

Aug

-06

Sep

-06

Oct

-06

Nov

-06

Dec

-06

Jan-

07

Feb-

07

Mar

-07

Apr

-07

May

-07

Jun-

07

Jul-0

7

Aug

-07

Sep

-07

Oct

-07

Nov

-07

Dec

-07

Jan-

08

Feb-

08

Mar

-08

Apr

-08

May

-08

Jun-

08

B100 Biodiesel - Price/GallonULSD Diesel - Price/Gallon

June 20, 2008 38

Fuel System Modifications

June 20, 2008 39

Fuel System Modifications

June 20, 2008 40

Fuel System Modifications

June 20, 2008 41

Vessel Tank CleaningMV Issaquah

Prior to

tank cleaning

June 20, 2008 42

Vessel Tank CleaningMV Issaquah

During

tank cleaning

June 20, 2008 43

Vessel Tank CleaningMV Issaquah

After tank

cleaning with

biodiesel wipe

down

June 20, 2008 44

Fuel Purifier Lid Removed

Fuel Purifier

Fuel Purifier CleaningMV Issaquah burning B5 Soy

June 20, 2008 45

Fuel Purifier Spindle

Fuel Purifier CleaningMV Issaquah burning B5 Soy

Fuel Purifier Disk Stack

June 20, 2008 46

Fuel Purifier CleaningMV Issaquah burning B5 Soy

Fuel Purifier Bowl

Fuel Purifier Spindle

June 20, 2008 47

Fuel Purifier SludgingMV Tillikum burning B5 Canola

June 20, 2008 48

Fuel Purifier SludgingMV Tillikum burning B5 Canola

June 20, 2008 49

Fuel Purifier SludgingMV Tillikum burning B5 Canola

June 20, 2008 50

Questions