Advantages of Low Sulfur and Biodiesel Fuel Oil

1. Advantages of Low Sulfur and Biodiesel Fuel Oil A Presentation at the RI GHG Stakeholder Meeting January 22, 2004 Presented by: John E. Batey, PE, President Energy Research Center, Inc. On Behalf of: Oil Heat Institute of RI

2. Topics for Presentation: • Overview of Home Oil Burner Air Emissions • Results of Low Sulfur Oil Studies • Results of Preliminary Biodiesel -heating oil blends.

3. Part I Air Emissions from Home Oil Burners

5. Key Points : Air Emission Rates • Oil burner emissions of PM, Carbon Monoxide, Hydrocarbons, NOx, and Sulfur Oxides are much lower than the average combustion source in the US. • Emission rates range from 1/2 (SOx) to 1/123rd (Hydrocarbons) of the average combustion source in the US. • Low sulfur (0.05%) fuel oil that is now available lowers SOx emissions by 80%. • Total Air Pollutant Emissions from #2 oil range from only 0.04% to 0.69% of the US total each year. • Home oil burner emissions are among the lowest of all combustion sources.

6. Ref: USEPA and BNL Report 52249

7. Key Points : Oil NOx Emissions

8. Part II Low Sulfur Home Heating Oil (0.05%)

10. Ref: USEPA Publication AP-42

11. Key Points: Oil SOx Emissions • Home heating oil and natural gas both emit low levels of sulfur oxides • Low sulfur fuel oil (0.05%) produces reduces sulfur oxides by 80% • Electric heat pumps emit 8 to 32 times more SOx than home oil burners • Electric heat emits 16 to 64 times more SOx than home oil burners • Ultralow S oil (15 ppm) emits the lowest levels of SO2.

12. Results of Low Sulfur Oil Studies: Advantages of Low Sulfur Oil • Brookhaven National Laboratory • NYSERDA - Buhrmaster Energy Group • Summary of Advantages

14. Effect of Fuel Sulfur on PM EmissionsRef: CETC

15. NYSERDA - Buhrmaster Energy Group Low Sulfur Demonstration • Demonstratethe advantages of reduced sulfur fuel oil through field testingin 1000 homes • Evaluate actual changes in heating equipment performancewith the lower sulfur fuel -measure differences in heating unit deposits, stack temperature, and other measures. • Investigate and evaluate reductions in service costs by using low sulfur oil – through increased service intervals • This field study program can help to overcome obstacles to widespread use of low sulfur heating oil by quantifying the benefitsincluding changes in servicerequirements.

16. NYSERDA - Buhrmaster Field Study

17. Cost Savings with Low S Oil

18. Emissions Reduction - NYS • SO2 emissions reduced by 33,800 tons per yearby using fuel oil with 0.05% sulfur oil. • “Environmental cost” savings for New York State by using low sulfur fuel oil are $5.6 million a year • Savings by improved heater efficiency for NYS is estimated to be $11.5 million a year • Homeowners can save approximately $65 million a year through lower service costs

20. Advantages of Low S Oil • Lower Service Costs - $200 MM/Yr (nationwide) • Service Savings > Added Fuel Cost • Lower SOx Emissions ~80% • Lower PM and NOx emissions • Extended vacuum cleaning intervals • Improved Environmental Impact for Oil (equivalent to Nat gas) • Emission Reduction Credit Potential • Enable a new generation of high efficiency oil equipment – eg. condensing furnaces

21. Summary • Home oil burners now produce low levels of air emissions: PM, NOx, SOx, CO, HC • Low sulfur oil lowers air emissions substantially: SOx, PM, NOx • Many Economic Advantages of Low Sulfur home heating oil • Biodiesel / Low S Blends reduce emissions even further • Lower sulfur oil permits new technologies: condensing furnaces

22. Part III Biodiesel / Low Sulfur Home Heating Oil Tests (20% Biodiesel)

23. Introduction • Prior tests show that Biodiesel lowers emissions of SOx, NOx, and GHG (CO2) • Past tests limited to single burner/boilers • Purpose: Test a range of burner-boilers/furnaces to evaluate combustion performance and emissions • All tests conducted at NEFI training facility with 20% soy-based biodiesel blended with low sulfur (~0.05%) diesel fuel

24. Executive Summary • Nitrogen Oxides lowered by ~20% • Combustion Stability: Very Good • Sulfur Oxides lowered by 83% • Greenhouse Gas Lowered by 16% • Smoke Numbers Lower for same burner air setting • Fuel Oil and Combustion Odors are improved - less intense and more pleasant smelling

25. Reduced Nitrogen Oxide Emissions

26. Carbon Monoxide Emissions

28. Reduced Smoke with 20% Biodiesel Blend

30. Conclusions & Recommendations • Significant reductions in air emissions using the 20% biodiesel / low sulfur diesel blend - SOx, NOx, GHG (16%) • Favorable Combustion Performance: CO profile vs. excess air, and lower smoke numbers • Improved Odor Characteristics - fuel and combustion products • Biodiesel is “homegrown” agricultural product and can help to change the perception of foreign dependence for oil.

31. Next Steps • Evaluate combustion performance for a range of biodiesel percent blends • Test cold flow characteristics • Test interactive effect of biodiesel and ultra-low (0.0015%) fuel oil • Long-term tests of reduced fouling rates • Field studies to demonstrate advantage and potential problemareas for biodiesel/fuel oil blends

32. RECOMMENDED ACTIONS BY RIGHG WORKING GROUP • Funding for testing and demonstration of the advantages and any problems associated with biodiesel use in homes • Tax Credits for support of Biodiesel blends in homes (Fed credits pending) • Education of heating industry and consumers of the advantages of fuel oil/biodiesel blends.