Understanding Renewable Fuels in Today's Marketplace - Mayo, Hall

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BIOFUELS 101 Stacy Mayo & Jancey Hall

Transcript of Understanding Renewable Fuels in Today's Marketplace - Mayo, Hall

BIOFUELS 101Stacy Mayo & Jancey Hall

RENEWABLE FUELS DEFINED

Wikipedia: Renewable fuels are fuels produced from renewable resources. Examples include: biofuels (e.g. Vegetable oil used for fuel, ethanol, methanol fromclean energy and carbon dioxide or biomass, and biodiesel) and Hydrogen fuel (when produced with renewable processes). This is in contrast to non-renewable fuels such as natural

gas, LPG (propane), petroleum and other fossil fuels and nuclear energy.

Renewable fuels can include fuels that are synthesized from renewable energy sources, such as wind and solar. Renewable fuels have gained in popularity due to their sustainability, low contributions to the carbon cycle, and in some cases lower amounts of greenhouse gases.

Reference.com: Renewable fuels are fuels made from renewable resources. Where fossil fuels are finite, renewable fuels are infinite and examples of renewable fuels include vegetable oil as fuel and methanol made from carbon dioxide.

BIOFUELS DEFINED

Ethanol: Ethanol is a renewable, earth-friendly biofuel made from plants. Most ethanol is currently made from corn, but new technologies allow ethanol to be created from other materials like wood chips and agricultural waste.

Biodiesel: A fuel comprised of mono-alkyl esters of long chain fatty acids derived from vegetable oils or animal fats, designated B100, and meeting the requirements of ASTM D6751

-a biofuel intended as a substitute for diesel

BIODIESEL: FUELED BY FARMERS

Rudolph Diesel created 1st diesel engine to run on peanut oil, not petroleum

Late 1980’s early 1990’s Excessive amounts of soybean oil on market

Diesel engines ran on canola

National Soy Diesel Development Board Founded in 1992 by soybean farmers

National Biodiesel Board Research

Marketing

Education

Policy work

ETHANOL: HOW IS IT MADE

HOW DOES IT COMPARE TO REGULAR GASOLINE

Ethanol replaces harmful carcinogens and toxic additives that can be found in petroleum-based fuels, while providing a naturally high octane

Ethanol is an earth-friendly biofuel that cuts carbon emissions from 34 to 100 percent or more, depending on the feedstock – and this percentage continues to increase with ongoing innovations in advanced biofuels.

Energy efficient to produce. For every 1 Btu of energy used to make ethanol, ethanol provides a 2.6 Btu return.

NASCAR driven more than 10 million miles on e15 with zero engine issues

BIODIESEL: HOW IS IT MADE

Transesterification: process produces mono-

alkyl esters – chemically similar to diesel fuel.

Reacting:

100 lbs. vegetable oil

+

10 lbs. alcohol

Yields:100 lbs. biodiesel

+

10 lbs. glycerine

HOW DOES IT COMPARE TO REGULAR DIESEL

Roughly 8% less energy in B100 than No. 2 diesel Higher Cetane

Higher Lubricity

Equals the same horsepower, fuel economy and torque in B20 as petro diesel.

ETHANOL PRODUCTION IN KANSAS

1. Arkalon Energy (Conestoga), Hayne, 110 MGY, 39 mill/bu

2. Bonanza Bioenergy (Conestoga), Garden City, 73 MGY, 24 mill/bu

3. Kansas Ethanol LLC, Lyons, 60 MGY, 20 mill/bu

4. East Kansas Agri Energy, Garnett, 50 MGY, 13.3 mill/bu

5. Western Plains Energy, Campus, 45 MGY, 16.1 mill/bu

6. Prairie Horizon Agri Energy, Phillipsburg, 40 MGY, 14.3 mill/bu

7. White Energy-Russell, Russell, 35 MGY, 16.1 mill/bu

8. NESIKA Energy LLC, Scandia, 21 MGY, 7 mil/bu

9. Pratt Ethanol, Pratt, 55 MGY, 18 mill/bu

10. Reeve Agri-Energy, Garden City, 15 MGY, 5.4 mill/bu

11. ESE Alcohol, Leoti, 1.5 MGY, .5 mill/bu

ETHANOL IN A GLOBAL MARKET

BIODIESEL PRODUCTION IN KANSAS

Emergent Green Energy – Minneola, KS Utilize glycerin byproduct

Kansas University

Kansas State University

North Central Technical College

Seward County Community College

ETHANOL AND LIVESTOCK

Distillers grains provides a nutritious feed choice

Kansas has many feedlots closely coordinating with ethanol plants for their distiller grain production 83 mil bu of distillers grains from ethanol is available for

livestock feed

BIODIESEL AND LIVESTOCK

Reduced Feed Costs Due to Lower SBM Values Increased

Revenue Due to Higher

Animal Fat Values

Glycerine Provides an Additional Energy Source for Feed Rations to Help Mitigate Risk

WHO CAN USE & WHERE TO BUY: ETHANOL

Vehicles: E10- 97% gasoline sold with 10% ethanol

Flex Fuel- E85

E15- 2001 and newer

Over the past year, consumers have driven over 300 million miles using E15 without a single reported negative effect. The facts are clear. There has never been an instance of a warranty being voided over the use of E15.

Apps & Website: GetEthanol.com More stations coming soon

WHO CAN USE & WHERE TO BUY: BIODIESEL

OPPORTUNITIES FOR KANSAS GRAIN

Today, Biodiesel is a 2.9 million gallon market & adds $.62/bushel to soybean prices.

Ethanol is estimated to add $.30 to $.50/bushel to corn prices.

OK GREAT- WHY SHOULD I USE IT?

American fuel

American jobs

Renewable

THANK YOU