What is biodiesel?

Biodiesel is a clean burning fuel for diesel engines made from domestically produced, renewable fats and oils such as soybean oil. Biodiesel has no sulfur or aromatic compounds and already meets the new Environmental Protection Agency (EPA) ultra low sulfur diesel fuel mandated for introduction in 2006. Biodiesel can be used in existing diesel engines without modification. Biodiesel burns substantially cleaner than petroleum based diesel fuel. It is a powerful option for improving our environment while reducing dependence on foreign oil, stretching our fossil fuel reserves, and providing value-added markets for agricultural products.

Is biodiesel a legal fuel?

Yes. Biodiesel is registered with the EPA as a fuel and as a fuel additive. It has complied with Tier 1 and Tier 2 health effects testing required by Section 211(b) of the Clean Air Act Amendments of 1990. It is the only alternative fuel to have supplied this rigorous $2.2 million dollar testing regimen to the EPA.

What is the industry doing to ensure biodiesel quality?

The biodiesel industry considers quality of the utmost importance. It has fully embraced the setting in industry consensus standards through the premier fuel standards setting body in the US-the American Society of Testing and Materials (ASTM). ASTM PS 121, the biodiesel standard in use today, was approved in 1998. EPA has adopted the ASTM standard as many states have incorporated PS 121 into their local statues.

The National Biodiesel Board (NBB), the industry trade association, has also initiated a Biodiesel Quality Accreditation Program-a 'Good Housekeeping Seal of Approval' for biodiesel marketing companies. Look for the National Biodiesel Accreditation Program (NBAP) seal when purchasing biodiesel.

How is biodiesel used today?

In the United States, biodiesel is used as both a pure fuel (B100) and as a blend with conventional petroleum-based diesel fuel (petrodiesel). There are three primary biodiesel applications today, each of a differing concentration of biodiesel and for different purposes.

The most common use is as a 20% blend with petrodiesel (B20) in order to comply with the Energy Policy Act (EPACT). Another primary use is as a pure fuel (B100) in environmentally sensitive areas (wetlands, national parks) or enclosed areas (warehouses, underground mines). A third use is as a blending stock (levels are 5% or below) as a lubricity-enhancing component of a premium diesel formulation.

Biodiesel can be used anywhere conventional diesel fuel is used. As the word on biodiesel spreads, new applications are springing up every day.

Is biodiesel safe?

Yes. Biodiesel is the safest liquid fuel available on the market today. B100 is nontoxic and biodegrades as fast as sugar. It also has a flash point of more than 300 degrees Fahrenheit-that's nearly twice as high as conventional diesel, making biodiesel safer to store, handle and use.

What are the benefits of using biodiesel as a blending component in Minnesota?

Using biodiesel as a blending component for diesel fuel has environmental benefits, technical benefits and economic benefits to Minnesota agriculture and the nation as a whole. Incorporating just 2% biodiesel in 800 million gallons of on-road, off-road, farm and military diesel fuel used in Minnesota every year will have the benefits outlined below.

Environmental Benefits:

A 2% biodiesel blend in Minnesota diesel fuel each year will curtail harmful tailpipe emissions. Annually it will:

• Reduce poisonous carbon monoxide emissions by more than 800 thousand pounds.
• Reduce ozone forming hydrocarbon emissions by almost 91 thousand pounds.
• Reduce hazardous diesel particulate emissions by almost 70 thousand pounds.
• Reduce acid-rain causing sulfur dioxide emissions by more than 70 thousand pounds.

According to the EPA, diesel fuel exhaust contains harmful polycyclic organic matter (POM) that can affect the reproductive, developmental, immunological and endocrine (hormone) systems in humans and in wildlife. Burning just 2% biodiesel in Minnesota would:

• Reduce harmful and cancerous POM impacts to streams, wildlife and humans by more than 80% for the 16 million gallons of petroleum diesel that would be displaced.

Biodiesel is produced from renewable sources grown and harvested each year, such as soybeans, in what experts call a closed loop carbon cycle. Biodiesel has appropriately been called "solar power, only more feasible." Use of 2% biodiesel each year in Minnesota would:

• Reduce Life Cycle Carbon Dioxide emissions by more than 250 million pounds. That's enough to fill 5000 semi trailers.
• Extend the fossil diesel supply almost four-fold for every gallon of diesel replaced by biodiesel.

Performance Benefits:

Biodiesel provides superior fuel lubricity, even at very low blend levels. Sufficient fuel lubricity is necessary to reduce equipment wear and premature breakdown. Bench scale testing has shown that 1% biodiesel can improve the lubricity of diesel fuel 65%, which improves further as more biodiesel is added, although exact results will vary depending on the base diesel fuel stock. Based on this and other testing, Stanadyne--one of largest diesel fuel injection companies in the world--has stated:

• "Incorporation of 2% biodiesel into conventional fuel will eliminate the concerns we have with fuel lubricity."
• "Since biodiesel is a fuel, and not just an additive, incorporation of 2% biodiesel insures adequate fuel lubricity while eliminating over-dosing concerns present with other additives."

Pure biodiesel, B100, also has high natural cetane (above 50), similar BTU content and provides similar fuel economy to petroleum based diesel fuel, so incorporation at levels below 5% will be transparent to the driver of the vehicle.

Since biodiesel contains no sulfur or aromatic compounds, it can also be used to blend down these levels in petrodiesel, which may become extremely important over time.

Economic Benefits:

Inclusion of biodiesel in on-road diesel fuel at a level of 2% in Minnesota for lubricity purposes would do the following:

• Create demand for more than 16 million gallons of biodiesel.
• Utilize the oil from more than 11 million bushels of soybeans (more than 123 million pounds of soybean oil).
• Add 1.7 to 4.2 cents to the value of a bushel of US soybeans, based on economic analyses conducted by USDA-ERS and FAPRI.
• Increase gross farm income in Minnesota between $4 million and $11 million, and decrease federal outlays under the soybean marketing loan program in similar amounts.
• Potentially reduce fleet operating costs through increased equipment life.

Additional economic impacts, such as increased employment; increased level of economic activity and corresponding state and local tax revenue; and other indirect and induced economic impacts will also occur.

Where is biodiesel used today as a fuel lubricity additive?

A total of seven companies have released premium additive packages containing biodiesel, in which biodiesel is a major marketing aspect of the products. In the summer of 1999, Koch - the second largest privately owned company in the US behind Cargill - launched a new premium diesel fuel product called US SoyField Diesel. It is now sold in more than 20 terminals in the Midwest and is expanding. Also in 1999, Country Energy (the Farmland/Cenex petroleum joint venture) launched SoyMaster, its proprietary premium diesel containing biodiesel, in four terminals in the Midwest.

How will this concept fit in with EPA's recently passed regulation that limits sulfur content in diesel fuel?

EPA has finalized rules that will require a reduction in the sulfur content of highway diesel fuel of more than 95% from its current level of 500 ppm. Biodiesel already meets EPA's new low sulfur diesel requirements, and can play an important role as a blending stock for the entire US diesel motor pool. Biodiesel has no sulfur or aromatics and increases fuel lubricity significantly when blended with petroleum diesel fuel-even at very low levels. Future diesel fuel will require the addition of a lubricity additive. Biodiesel could be included as a low level blending component in diesel fuel as a means to improve fuel lubricity while providing environmental, economic, and energy security benefits to diesel users and the US public at the same time.

Will the biodiesel industry be able to produce enough fuel to meet the demand in Minnesota?

Yes. If 2% biodiesel were blended with the Minnesota on-road, off-road, farm and military diesel fuel market, approximately 16 million gallons of biodiesel would be required. There are presently 13 companies that have invested millions of private dollars into the development of the biodiesel manufacturing plants and are actively marketing biodiesel. Based on existing dedicated biodiesel processing capacity and long-term production agreements, more than 200 million gallons of biodiesel capacity currently exists and many dedicated biodiesel processing facilities are capable of doubling their production capacity within 18 months.

Can the lubricity benefits be gained through other sources?

Yes, replenishing the loss lubricity that will be apparent in future diesel fuel can be accomplished with conventional lubricity additives either on the market today or in the process of being formulated.

What is the cost of biodiesel compared to other petroleum based lubricity additives?

Economically, these products are the same or less expensive than biodiesel. Petroleum based additives, however, do not have the same conservation, energy security, environmental, and economic benefits. All of these factors need to be weighed fully.

Will 2% biodiesel affect the cold flow properties of the blend?

There are minimal differences between the 2% blend and pure petrodiesel.

For every one unit of energy needed to produce biodiesel, 3.24 units of energy are gained. This is the best energy balance of any liquid fuel available.

How do biodiesel emissions compare to petroleum diesel?

Biodiesel is the only alternative fuel to have fully completed the health effects testing requirements of the Clean Air Act. The use of biodiesel in a conventional diesel engine results in substantial reduction of unburned hydrocarbons, carbon monoxide, and particulate matter compared to emissions from diesel fuel. In addition, the exhaust emissions of sulfur oxides and sulfates (major components of acid rain) from biodiesel are essentially eliminated compared to diesel.

Of the major exhaust pollutants, both unburned hydrocarbons and nitrogen oxides are ozone or smog forming precursors. The use of biodiesel results in a substantial reduction of unburned hydrocarbons. Emissions of nitrogen oxides are either slightly reduced or slightly increased depending on the duty cycle of the engine and testing methods used. Based on engine testing, using the most stringent emissions testing protocols
required by EPA for certification of fuels or fuel additives in the US, the overall ozone forming potential of the speciated hydrocarbon emissions from biodiesel was nearly 50 percent less than that measured for diesel fuel.

Can biodiesel help mitigate “global warming”?

A 1998 biodiesel lifecycle study, jointly sponsored by the US Department of Energy and the US Department of Agriculture, concluded biodiesel reduces net CO² emissions by 78 percent compared to petroleum diesel. This is due to biodiesel’s closed carbon cycle. The CO² released into the atmosphere when biodiesel is burned is recycled by growing plants, which are later processed into fuel..Is biodiesel safer than petroleum diesel? Scientific research confirms that biodiesel exhaust has a less harmful impact on human health than petroleum diesel fuel. Biodiesel emissions have decreased levels of polycyclic aromatic hydrocarbons (PAH) and nitrited PAH compounds that have been identified as potential cancer causing compounds. Test results indicate PAH compounds were reduced by 75 to 85 percent, with the exception of benzo(a)anthracene, which was reduced by roughly 50 percent. Targeted nPAH compounds were also reduced dramatically with biodiesel fuel, with 2-nitrofluorene and 1-nitropyrene reduced by 90 percent, and the rest of the nPAH compounds reduced to only trace levels.

Does biodiesel cost more than other alternative fuels?

When reviewing the high costs associated with other alternative fuel systems, many fleet managers have determined biodiesel is their least-cost-strategy to comply with state and federal regulations. Use of biodiesel does not require major engine modifications. That means operators keep their fleets, their spare parts inventories, their refueling stations and their skilled mechanics. The only thing that changes is air quality.

Do I need special storage facilities?

In general, the standard storage and handling procedures used for petroleum diesel can be used for biodiesel. The fuel should be stored in a clean, dry, dark environment. Acceptable storage tank materials include aluminum, steel, fluorinated polyethylene, fluorinated polypropylene and teflon. Copper, brass, lead, tin, and zinc should be avoided.

Can I use biodiesel in my existing diesel engine?

Biodiesel can be operated in any diesel engine with little or no modification to the engine or the fuel system. Biodiesel has a solvent effect that may release deposits accumulated on tank walls and pipes from previous diesel fuel storage. The release of deposits may clog filters initially and precautions should be taken. Ensure that only fuel meeting the biodiesel specification is used.