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Soy Beans in Biofuels

Soy Beans in Biofuels. Purpose Provide An Overview Of The Current Soybean Oil and Biodiesel Markets Advantages and Disadvantages in using soybeans in the production of biofuels. History.

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Soy Beans in Biofuels

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  1. Soy Beans in Biofuels • Purpose • Provide An Overview Of The Current Soybean Oil and Biodiesel Markets • Advantages and Disadvantages in using soybeans in the production of biofuels

  2. History • The concept of using vegetal oil as an engine fuel likely dates when Rudolf Diesel (1858-1913) developed the first engine to run on peanut oil, as he demonstrated at the World Exhibition in Paris in 1900. Unfortunately, R. Diesel died 1913 before his vision of a vegetable oil powered engine was fully realized. • "The use of vegetable oils for engine fuels may seem insignificant today. But such oils may become in the course of time as important as the petroleum and coal tar products of the present time"Rudolf Diesel, 1912

  3. What is Biodiesel fuel? • Biodiesel is a fuel that is made from soy beans, or waste vegetable oil (cooking oil). It can be used in place of petroleum diesel fuel for vehicles or heating oil for buildings. Unlike petroleum diesel, biodiesel is a renewable resource, and it creates less pollution than petroleum diesel. It can be used alone or in combination with petroleum diesel, or with heating oil. Generally, no expensive modifications to the engines are required. This makes it easier to integrate biodiesel into current systems than other alternative energy sources, which often require new equipment.

  4. How is Biodiesel made? • Biodiesel fuel is made from oils or fats, which are both hydrocarbons, most commonly soybean oil. These hydrocarbons are filtered, then mixed with an alcohol, which is usually methanol, and a catalyst (sodium or potassium hydroxide). The major products of this reaction are the biodiesel fuel, which is an ester, and glycerol, which has commercial uses, such as in cosmetics.

  5. How is Biodiesel labeled? • Biodiesel is designated by the letter B and a number representing the percent of the fuel that is biodiesel. The rest of the fuel is petroleum diesel. For example, a mixture of 20% biodiesel and 80% petroleum diesel would be labeled B20. This ratio of biodiesel to petroleum diesel is commonly used.

  6. BQ-9000 Quality Program OIL FEEDSTOCK BULK STORAGE FROM SUPPLIER BIODIESEL BULK STORAGE MANUFACTURING PROCESSES BIODIESEL TO CUSTOMER

  7. How Is Biodiesel Made? Catalyst Methanol Vegetable Oils Animal Fats ASTM D6751 Methyl Ester Biodiesel Reactor Waste Stream Crude Glycerin Recovered Methanol

  8. Production is flat, expect < 2% increase thru '07/'08Crush output, ~ 53% of Production, is also expected to remain flat thru '07/'08

  9. The "Oil Can" capacity is fixed and demand is near 100%* Only 3% of 2.4 Billion gpy oil available for industrial useVery stiff competition from food industryCrush capacity limited by volume & soy meal markets * Includes oilseed crops, tallow, lard, & poultry fats

  10. NBB predicts modest BD sales growth for '06 to 130 MgalHowever, '05 BD production (75 Mgal) exceeded domestic industrial soy oil supply (72 Mgal)

  11. Biodiesel capacity is estimated to be 377 Mgal in '06,1009 Mgal capacity in '07, and a projected 1716 Mgal capacity in '07/'08.The majority of this BD capacity increase is based on soybean oil as the primary feedstock. Forecasts for domestic oil available for industrial use are flat at < 80 Mgal/yr through '07/'08.

  12. Why Should We Use Biodiesel? • Reduces Greenhouse Gases – 78% less CO2 Emissions • Highest Lifecyle Energy Balance – 3.2:1 • Reduces Harmful Exhaust Compounds & Particulates • Nontoxic and Biodegradable • Restores Lubricity & Cleaner Burning • Reduces Dependence on Foreign Oil • Renewable Fuel – Feedstocks Grown in Arkansas • Price Comparable to Petroleum Diesel • Adaptable to Existing Infrastructure

  13. What are the advantages of Biodiesel fuel? • Biodiesel fuel is a renewable energy source that can be made from soy beans grown for fuel, or from cooking oils recycled from restaurants. This means it is a renewable resource unlike petroleum-based diesel. • There is an excess production of soybeans in the United States, therefore biodiesel is an economic way to utilize this surplus. • Biodiesel is less polluting than petroleum diesel. Compared to petroleum diesel, biodiesel produces less soot (particulate matter), carbon monoxide, unburned hydrocarbons, and sulfur dioxide.

  14. Advantages (continued) • The absence of sulfur in 100% biodiesel should extend the life of catalytic converters. • Biodiesel fuel can also be used in combination with heating oil to heat residential and industrial buildings. This can reduce dependence on non-renewable and increasingly expensive heating oil. • Biodiesel fuel can generally be used in existing oil heating systems and diesel engines without modification, and it can be distributed through existing diesel fuel pumps. This is an advantage over other alternative fuels, which can be expensive to use initially due to high cost of equipment modifications or new purchases. Biodiesel provides almost the same energy per gallon as petroleum diesel. • The lubricating effects of the biodiesel may extend the lifetime of engines.

  15. What are the disadvantages of Biodiesel fuel? • Biodiesel is currently about one and a half times more expensive than petroleum diesel fuel. Part of this cost is because the most common source of oil is the soybean, which only is only 20% oil. However, the costs of biodiesel can be reduced by making biodiesel from recycled cooking oils rather than from new soy beans, or by making it from plant matter with higher oil content. • It takes energy to produce biodiesel fuel from soy crops, including the energy of sowing, fertilizing and harvesting. • Biodiesel fuel can damage rubber hoses in some engines, particularly in cars built before 1994. You should check with the manufacturer before using biodiesel to see if you need to replace any hoses or rubber seals.

  16. Disadvantages (continued) • Biodiesel cleans the dirt from the engine. This dirt then collects in the fuel filter, which can clog it. Clogging occurs most often when biodiesel is first used after a period of operation with petroleum diesel, so filters should be changed after the first several hours of biodiesel use. • Biodiesel is not distributed as widely as traditional, petroleum diesel, but distribution infrastructure is improving. • Soybean oil-based biodiesel will start to crystallize at around 0 degrees C.

  17. Biodiesel ProductionNBB Predicts Significant Capacity Growth Through 2008 (over 450% increase).Production Capacity Using (or Projecting) Soybean Oil as Primary Feedstock: 965 MgalProduction Capacity Using (or Projecting) Multi-Feedstock Capability: 552 MgalSoy Oil Demand Approaching 1 Billion Gallons per Year While Soy Oil Supply Potentially Limited to Less than 100 Mgpy Due to Crush Capacity and Meal Outlets** Some Crush Plants also produce biodiesel

  18. Soybean Meal Use(78,600 Mlbs Produced, 15% Exported)

  19. Soybean Production TrendsUSDA Predicts Slight Growth (<1%) in Poultry and Swine Domestic Markets Through 2008.USB Predicts Decrease in Soybean Meal Exports Due to Increase in S.A. ExportsA Significant Number of Major Crush Facilities Have Entered the Biodiesel BusinessSoybean Oil Prices are Predicted to Climb Steadily due to Stiff Competition Between Biodiesel and Food Industries

  20. Soybean Oil Prices(Crude Degummed – Gulf Coast) 2003 2004 2005 2006

  21. SourcesUnited Stated Department of AgricultureUnited Soybean BoardNational Biodiesel BoardNational Oilseed Producer's AssociationChicago Board of TradeIowa State University Extension OfficeUniversity of Illinois at Urbana-ChampaignJacobsen Report

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