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Oilseed Rape and Biofuel Production Raymond O’Malley Chairman – Biogreen.

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Presentation on theme: "Oilseed Rape and Biofuel Production Raymond O’Malley Chairman – Biogreen."— Presentation transcript:

1 Oilseed Rape and Biofuel Production Raymond O’Malley Chairman – Biogreen

2 Overview  Est. of Biogreen Energy Products (brief history)  Development  Future opportunity & obstacles

3 Biogreen  Founded 2002 by 5 farmers  Started small crushing plant in lean-to of hayshed  Assisted by Wexford Leader & subsequently received assistance & encouragement from S.E.I

4 Biogreen  Processed 60 ton O.S.R in first year of production  Processed 6,000 ton for 2005/6  Have capacity & will process 12,000 ton 2006/7  Aug 3rd 2005 received the first ever fuel excise derogation - 8,866,000 litres PPO valid to mid 2007.

5 Why?  We could see a future for biofuel  Total or partial excise derogation in other E.U. countries – bound to come to Ireland  Concerns for the environment & climate change – manifested itself in Kyoto Protocol adopted in 1997 & came into force Feb 2005  2003 E.U. Directive set indicative targets for biofuels market penetration of 2% by 2005 rising to 5.75% by 2010

6 Why?  Rocketing price of Oil would & could make biofuels competitive  Oil producing regions of world can be politically unstable – security of supply could be a future problem  Ireland’s dependency on imported energy should be a huge concern. We are 87% dependent on imported energy. Average for the rest of E.U. is 50%  Overproduction of food was becoming a major political & commercial problem. Future shortage of energy can give new opportunities to farming & rural communities.

7 Company Development  Germans are world leaders in Plant oil/Biodiesel Production. Made many visits to Germany to learn and adopt what they were doing. Imported crushers, filters and technology  Made plenty mistakes, but learned rapidly with minimal learning expenses !!!  Designed plant ourselves and did all the fabrication.

8 Company Development  Our core business is to produce rape oil and rape cake 1 Ton Oil Seed rape = 1/3 Ton Oil + 2/3 Ton rapecake Rape oil – Fuel for diesel engines Rape Cake – Livestock feed 32% protein 13.5% energy 10.5% Oil (Agriking) No waste – No industrial effluent.  Quality Control – Vital for an emerging industry a) Moisture content – < 0.075% water for fuel b) Acid value < 2mg KOH / g c) Suspended solids < 25mg / kg d) New cleaner / dryer installed especially for OSR. The presence of weed seeds can have detrimental effect on oil quality e) Automation of the plan will reduce seed damage. f) Have put huge effort into instructing our farmers on correct operation of harvesting machinery. g) EU standard for PPO is DIN 51605

9 Company Development  Difficulties arose We had hoped that local merchants & co-ops would organise growers, assemble the crop, dry it & supply Biogreen – Attitude problem arose !! We set about organising & supplying our own growers.  1st company to access & operate E.U. energy payment for our farmers (€45/ha)  Have built new store for 5,000 tons O.S.R & erected new dryer specially designed to handle clean & dry O.S.R.  The Plant in process of being completely automated.  Within the next month we plan to further process the rape oil to improve its viscosity by deguming (1.5% gums or waxes)

10 Company Development  June 2005 Golden Vale Mart bought into Biogreen. We needed the extra cash & business expertise to fuel & control our rapid expansion.  We are offering consultancy service to others who want to enter this industry. Most consultancy to date has been done in Britain & more recently in Denmark.  Have set up unit within our company to install conversions in diesel trucks. We favour fuel management system by Bioltec – a German company (idiot proof). Other German & British kits available.

11 Future Demand for rape oil is rapidly increasing. Customers are happy with our product. Large transport companies (up to 200 trucks) very interested. Have industrial customer's for rape oil other than fuel. At present 1/3 of our production is for non fuel use. At present – 3 crushers working. Deguming plant will be operational spring 2007 – Further improving oil quality.

12 Future Have capacity to produce 5 Million litres pa. However, Biofuel industry is a difficult one. Present and particularly future Government policy dictates future viability. This industry depends on political decisions as well as commercial – Not ideal. Prior to Christmas DCMNR informed us that they wanted “mass market” penetration with biofuels. Lab testing using blend of rape oil / diesel. Results are extremely encouraging.

13 Tests performed & methods: Report J-015/07  Samples Received in sealed containers:  Density IP160, Flash Point IP34, Suspended Water Content by modified Method ASTM D , Sulphur Content by Energy Dispersive X-RAY Fluorescence IP336, Kinematic Viscosity IP 71, Cold Filter Plugging Point. RESULTS:2.5%5% Density 15 deg C: Flash Point ( C) Suspended Water (ppm) Sulphur Content (ppm) Cold Water Plugging Point ( C) Kinematic Viscosity 40 deg C) Initial Boiling Point ( C) % (V/V) 250 ( C) % (V/V) 350 ( C) Final Boiling Point ( C) Comment: Both the 2.5% mixture and the 5% mixture of rapeseed oil and diesel are within the specifications of the British and Irish standards for diesel for the above tests i.e. EN590

14 Future  Further testing undertaken.  Our research & testing to date strongly indicates that expensive estrification of vegetable oil for biodiesel production could be redundant.  This could be THE BIODIESEL.  Biogreen system has potential to deliver enormous benefits to local Farmers & rural communities. Industry can remain in control of Farmers – not given away to big business.

15 How do WE drive this industry?  Do we want to produce rape oil in Ireland?  Excise exemption for Irish produced rape oil should be total and without any volume limits – Done immediately. This would enable the Biogreen experience to be replicated throughout the tillage regions of Ireland.  Teagasc has shown the excise derogations cost Government very little as most of lost revenue is recouped in extra vat and employment.

16 How do we drive this industry ?  Excise exemptions should be focused on Irish produced fuels – Not imported fuels.  Transport obligations should also focus on Irish produced fuels – Not imported fuels.  EU energy crop scheme €45 / ha a) Has been topped up to € 125 / ha by Dept of Ag – positive step. The area restriction on this top up should be removed. b)Margarine manufacturers are lobbying to keep vegetable oil prices low & are actively opposing increased E.U energy payments to Farmers.

17 How do WE drive this industry?  Farming organisations should be active in these area’s to help biofuels.  Buzz phrase “Cows v Cars” is a misleading myth - needs to be exploded.  East European agriculture can dramatically increase production.  Russia’s president Putin said 3 weeks ago that Russia has 20 m/ha of land not used or under utilised suitable for cereal production = massive future potential for increased food & energy production.

18 Conclusion  Climate change, environment & Oil shortage a)Do you believe what scientists say re climate change? b)Do you believe fossil fuels are affecting our environment? c)Do you believe that Oil production has peaked?  What is beyond question is that Ireland should be encouraging production of its own energy.  Biofuels & Bioenergy in general is still trapped in a political playpen & will remain stagnant until ONE senior cabinet minister is made responsible to drive this industry forward into the commercial world.

19 Conclusion  Ireland is World leader *Horse Breeding *Urban Renewal *Economic Recovery.  We can also be World Leader in Bioenergy.  Biogreen has shown how progress can be made - it’s not rocket science but it does take determination, guts, organisation & self belief.  Farmers, Processors, Civil Servants & Politicians can free Ireland from its dependence on imported energy & create huge National Wealth in the process.  CAN THIS BE OUR VISION? Thank You


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