Biodiesel – General DefinitionsBiodiesel is a domestic, renewable fuel for diesel engines derived from fats and oils such as soybeans and animal fats.

Biodiesel can be used in any concentration with petroleum-based diesel fuel in existing diesel engines with little or no modification.

Biodiesel is not raw vegetable oil!

Biodiesel must be produced by a chemical process that removes glycerin from the oil.

0 50 100

B2

B5

B10

B20

B100

Biodiesel Petroleum diesel

Biodiesel blend, n. -- a blend of biodiesel fuel meeting ASTM D 6751 with petroleum-based diesel fuel designated BXX, where XX is the volume percent of biodiesel.

Petroleum (Liquid Fuel) PictureWe currently import over 50% of our petroleum needs - 70% by 2025.

Once roughly half the oil has been extracted, it becomes harder – and more expensive – to get at the remainder.

The key date is not when the oil runs out, but when production peaks, meaning supplies decline. The peak may come by about 2020.

Proved Oil Reserves 2003

Biodiesel Properties & Attributes

B100 - Energy content of #1, 8% less than #2

High Cetane (avg. over 50)

Sulfur free

Cold flow - B2 the same as #2 petroleum diesel

Energy Balance (3.24 to 1)

Biodegradable and Non-Toxic

Emissions Reductions with Biodiesel Blends

Emission Type B100 B20 B2Total Unburned Hydrocarbons -67% -20% -

2.2%Carbon Monoxide -48% -12% -

1.3%Particulate Matter -47% -12% -

1.3%Oxides of Nitrogen (NOX) +10% + 2%***

+0.2%

“When considering the combined benefit of all these reductions, the small increase in nitrogen oxides (NOx) should not overshadow the net environmental gain with biodiesel use in North Carolina. Biodiesel is a viable part of the overall effort to improve our air quality.”B. Keith Overcash, PE, NC DE&NR, DAQ

Biodiesel Production100 lbs. of fat or oil

+10 lbs. methanol

catalyst

100 lbs. biodiesel (B100)+

10 lbs. of glycerin

Soybeans (90-95% of current market), Waste Greases, Edible & Inedible Tallow, Cottonseed, Sunflower, Canola/Rapeseed

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

1999 2000 2001 2002 2003 2004

B100 Fuel Survey Results

Distribution Outlets, June 2005

ASTM D 6751 – Biodiesel Fuel Specification

Fuel quality is of the utmost concern and importance to the biodiesel industry.

ASTM D 6751 is the specification for biodiesel fuels irrespective of the feedstock source and/or processing method.

Standard ensures safe operation in a compression ignition engine.

ASTM International Specification D6751: Standard Specification for Biodiesel Fuel

In 2002, ASTM International issued a standard specification for biodiesel fuel called D6751. This specification states that the only form of biodiesel that can be legally resold for commercial operations must meet ASTM specifications. TABLE 1: Detailed Requirements for Biodiesel (B100) Property Test Method Limits Units

Flash point (closed cup) D 93 130.0 min °C Water and sediment D 2709 0.050 max % volume Kinematic viscosity, 40°C D 445 1.9–6.0 mm2/s Sulfated ash D 874 0.020 max % mass Sulfur D 5453 0.05 max % mass Copper strip corrosion D 130 No. 3 max N/A Cetane number D 613 47 min N/A *Cloud point D 2500 Report to customer* °C Carbon residue D 4530 0.050 max % mass Acid number D 664 0.80 max mg KOH/g Free glycerin D 6584 0.020 % mass Total glycerin D 6584 0.240 % mass Phosphorus content D 4951 0.001 max % mass Distillation temperature, atmospheric equiv. temp

D 1160 360 max °C

Biodiesel & Original Equipment Manufacturers (OEMs)

Many Engine Manufacturers Support Biodiesel Blends:

John DeereCaterpillarCumminsDetroit DieselInternational

Testimonials for each of these companies available on the NBB website - www.biodiesel.org

B100 Must Meet ASTM D6751 !!!

Most OEM HQ’s have B20 experience:

Won’t void warranty, but remember OEM’s don’t make fuel and therefore they won’t warranty fuel.

Problems caused by the fuel are the responsibility of the fuel supplier.

Federal Biodiesel Tax Incentive American Jobs Creation Act 2004 (Biodiesel Tax Exemption)

Federal Excise Tax Credit through 12/31/2011

1¢ per percent of “agri-biodiesel” blended into diesel fuel

Applies to first-use vegetable oils and animal fats

½ ¢ per percent of other biodiesel blended into diesel fuel

Credit taken at the blender level

Biodiesel: Looking Forward

Current Potential: 1.7 Billion gal/year5.5% of national on-hwy. Demand

Near-Term Potential: (2015): 3.5 Billion6.8% of national on-hwy. demand in 2015

Long-Term Potential: (2030): 10 Billion

Educational Resources for Biodiesel

BEN: “Biodiesel Education Network”

Web-based resource specifically for petroleum marketers

Partnership between NBB/PMAA

www.pmaa.org

www.biodiesel.org