Kim Lyons WSU Energy Program All Extension Conference March 7, 2007 Biofuels in Washington

What are they? What is happening now? Where is the market going?

Liquid Fuels from Biomass Near term- biodiesel (from imported oils) ethanol (from imported corn) Longer term- biodiesel from instate oilseed crops ethanol from lignocellulosics Other liquid fuels- renewable diesel, butanol

Why is there interest in biofuels Increasing fuel prices Environmental concerns with petroleum fuels National security issues-US imports near 60% Economic opportunity- open new, higher value markets for agricultural products Keep fuel dollars in the state- roughly $9.5 billion in 2005

What is Biodiesel Biodiesel is a clean-burning, oxygenated fuel (methyl-ester) made from vegetable oils or animal fats which can be burned in existing diesel engines. 100 lbs oil + 10 lb methanol + (catalyst NaOH) ---> 100 lb biodiesel + 10 lb glycerin Biodiesel must meet the specifications of ASTM D6751 Biodiesel blends are a mixture of biodiesel with petroleum diesel, commonly referred to as B2, B5, B20.

Biodiesel Advantages Biodegradable, non-toxic Domestically grown- reduces imported oils Renewable- closed carbon cycle, minimal climate change impacts (78% lower GHG emissions) Positive net energy gain- provides 3.2 times more energy than is used to produce it No engine modifications needed-(may need to replace rubber fuel lines, gaskets on pre 1993 engines) High flashpoint (> F) Improves lubricity in low sulfur fuels Lower tailpipe emissions

Disadvantages of biodiesel Biodiesel is less stable than petroleum diesel. Old fuel can form sediments and varnish. Additives can be used to prevent this. Biodiesel can cause filter plugging due to fuel tank deposits or out of spec fuel. Inspect (change) filters during initial use. Use ASTM D6751 fuel. Follow good fuel handling practices. Biodiesel has 8% lower energy content. B20 users will see fuel economy and max power drop by about 1%-2%. Biodiesel can gel at lower temperatures (like petroleum diesel). Blending and additives can control this. Higher price than petroleum diesel. Warranty concerns

What is ethanol? Ethanol is an alcohol-based alternative fuel produced by fermenting and distilling starch crops, or cellulosic materials that have been converted into simple sugars 1 bushel (56 lbs) of corn yields about 2.7 gallons of ethanol and 18 lbs of DDGS In 2005, about 14% of the corn crop (1.6 billion bushels) went into ethanol By 2007, 25% of corn production used for ethanol Ethanol is a mature transportation fuel and can be readily blended with gasoline- low blends of 10% (E10) or less can be used in existing engines without modification higher blend of 85% (E85) can be used in modified engines

Advantages of Ethanol It is a renewable fuel- reduces GHG emissions by as much as 29% for corn based ethanol and up to 85% for cellulosic ethanol Positive lifecycle energy balance over gasoline- 26% net energy gain for corn based ethanol and up to 90% net energy gain for cellulosic ethanol It is biodegradable It can reduce engine emissions It can be produced domestically and provides a high value market for farmers It provides high octane at a competitive cost Can be used in low blends without engine modifications Has vehicle industry support- over 6 million E85 compatible vehicles in US; over 100,000 in WA. Can be readily adapted to new vehicle platforms

Disadvantages of Ethanol Lower BTU content than gasoline- 76,000 btus/gal ethanol vs 114,000 Btus/gal gasoline. Higher blends require engine modifications Limited fueling infrastructure May increase aldehyde emissions Higher cost Currently relies on corn as feedstock

U.S. Biofuels Supply Biodiesel- 75 MGY in 2005 Nearly 250 MGY 2006 Proposed plant capacity billion gallons Ethanol- 4.8 BGY in BGY in billion gallons year by 2012

WA Biofuels Activities Biodiesel 16 plants in various stages of development- 260 MGY total production capacity > 36 biodiesel refueling outlets 1 million gallon in-state seed oil approximately 5 million gallons consumed in WA Ethanol 8 plants proposed- 447 MGY total production capacity 5 E85 outlets Mainly midwest corn railed in million gallons consumed in WA Crushers 8 oilseed crushers in various stages of development

Biodiesel Production Potential “If all of the vegetable oil (23.6 billion lbs) and animal fat (11.6 billion lbs) were used to produce biodiesel, we could only replace about 14% (approx 4.62 billion gallons/yr) of current demand for on- highway diesel.” (Dr. J Van Gerpen, University of Idaho) Biomass oils could displace up to 10 billion gallons of petroleum by Requires incentives, mandates, R&D. (NREL) Washington State: 2%- 20 million gallons; 5%- 50 million gallons. Production potential: 4 yr rotation dryland wheat - 5 million gallons/100,000 acres. Estimated production million gallons Bottomline- biodiesel is part of the answer but will not eliminate the need for petroleum diesel fuel.

Factors Influencing Growth of Biodiesel Industry Oilseed economics cannot make it on raw-oil sales alone. At $0.15/lb for oilseed, the price of raw oil is nearly $3.75/gal, dropping to about $2.45/gal given current value of meal. Co-products - Development of co-products and higher value markets is essential. Potential markets include Omega-3 fatty acids from glycerin wastes, biofumigants or high value foodstuffs from seedmeal. Cropping research- improved oil yields, disease resistance, best practices Competition from out of state fuel providers- Midwest, South East Asia Incentives/mandates-state and federal- What happens if the incentives disappear? Successful integration into existing fueling infrastructure Energy prices. Farmers and fuel producers need to make money on their investments if the industry is to succeed. The opportunity is there, the economics are being worked out.

Ethanol Potential in WA Some use of in-state corn and barley- current activity designed around importing midwest grains Move towards cellulosic ethanol (butanol) – lots of biomass resources (ag wastes, timber residues, MSW, energy crops- switchgrass) but technology still to costly Need to develop roadmap to identify opportunities, research needs so able to position future activities.

Cellulosic Ethanol Two primary conversion routes Sugar Platform- convert biomass to sugar as intermediate step- enzymatic hydrolysis, dilute acid hydrolysis, concentrated acid hydrolysis Thermochemical Platform- convert biomass to syngas as intermediate step Alternative route- Biobutanol

Challenges with Biomass Bulky- high transportation costs Inconsistent quality characteristics Contamination, impurities Higher conversion costs Agronomic issues- how much residue to leave in fields

Cellulosic Ethanol Potential in WA WSU, in cooperation with Ecology, completed a preliminary inventory of biomass resources in Washington State. The statewide inventory included estimates of available field residues, animal wastes, forestry, municipal wastes and food packaging and processing wastes on a county-by-county basis. The inventory does not include the potential resource value of crops grown specifically for energy production. The total biomass identified by the inventory is 15.7 million dry tons/yr. If all of the 15.7 million tons of biomass was converted to ethanol, approximately 942 million gallons of fuel could be produced. This is equivalent to about 35% of the total gasoline consumed in WA in Energy crops- switchgrass, hybrid poplars Bioethanol potential is large- how to get there still to be determined.