BIODIESEL: THE FUEL FOR THE FUTURE

By IEYDA M

History of Biodiesel

Biofuel was used since the early days of the car industry. Nikolaus August Otto, the German inventor of the combustion engine, conceived his invention to run on ethanol. while Rudolf Diesel, the German inventor of the Diesel engine, conceived it to run on peanut oil. The Ford Model T, a car produced between 1903 and 1926 used ethanol.

However, when crude oil began being cheaply extracted from deeper in the soil (thanks to drilling starting in the middle of the 19th century), cars began using fuels from oil.

Nevertheless, before World War II, biofuels were seen as providing an alternative to imported oil in countries such as Germany, which sold a blend of gasoline with alcohol fermented from potatoes under the name Reichskraftsprit.

In Britain, grain alcohol was blended with petrol by the Distillers Company Ltd under the name Discol and marketed through Esso's affiliate Cleveland.

After the War cheap Middle Eastern Oil lessened interest in biofuels. Then with the oil shocks of 1973 and 1979, there was an increase interests from governments and academics in biofuels.

However, interest decreased with the countershock of 1986 that made oil prices cheaper again. But since about 2000 with rising oil prices, concerns over the potential oil peak, greenhouse gas emissions (Global Warming), and stability in the Middle East are pushing renewed interest in biofuels.

Government officials have made statements and given aid in favour of biofuels. For example, U.S. president George Bush said in his 2006 State of Union speech, that he wants for the United States, by 2025, to replace 75% of the oil coming from the Middle East.

What is biodiesel?

Biodiesel is the name of a clean burning alternative fuel, produced from domestic, renewable resources.

Biodiesel contains no petroleum, but it can be blended at any level with petroleum diesel to create a biodiesel blend. It can be used in compression-ignition (diesel) engines with little or no modifications. Biodiesel is simple to use, biodegradable, nontoxic, and essentially free of sulfur and aromatics.

illustration of 5 methyl esters

Molecular structures of the five methyl esters that typically comprise soy biodiesel.

How is biodiesel made?

Biodiesel is made through a chemical process called transesterification whereby the glycerin is separated from the fat or vegetable oil. The process leaves behind two products -- methyl esters (the chemical name for biodiesel) and glycerin (a valuable byproduct usually sold to be used in soaps and other products).

Transesterification

In organic chemistry transesterification is the process of exchanging the alkoxy group of an ester compound by another alcohol. These reactions are often catalyzed by addition of an acid or base.

\\

        C - CH₃  +  ROH

CH₃CH₂O

$\leftrightarrow$

\\

   C - CH₃  + CH₃CH₂OH

RO

(ester + alcohol)

(different ester + different alcohol)

Acids can catalyse the reaction by donating a proton to the carbonyl group, thus making it more reactive, while bases can catalyse the reaction by removing a proton from the alcohol, thus make it more reactive.

The name “biodiesel” has been given to transesterified vegetable oil to describe its use as a diesel fuel.

Biofuel vs Biodiesel

What is the different between biofuel and biodiesel? Both sound similar, but the reality is not. Many people thought that biofuel is the biodiesel itself. As biofuel is the fuel which directly derived from biomass, biodiesel needs a special process to transform its source from the biomass to a fuel. Let see what the definition of both that I excerpt from various sources from the internet:

Biodiesel

1. Palm Biodiesel is an alternative fuel derived from palm oil and can be used in compression ignition engines i.e. diesel engines without any modifications. It refers to methyl esters derived from palm oil through a process known as ‘transesterification’. Source: Carotino

2. Biodiesel, however, is an alternative fuel to petroleum-based diesel, which can be manufactured from vegetable oils such as palm, rapeseed (canola), soy, linseed, jatropha and coconut oil. Biodiesel can also be manufactured from animal fats (including tallow) and used cooking oils.

The use of Biodiesel does not require any major changes in the fuel distribution system, avoiding the need for expensive additional infrastructure.

In many instances, Biodiesel is mixed with petroleum-based diesel to create a Biodiesel blend, which can then be sold into the general diesel market. Source: Mission Biofuels

Biofuel:

1.Biofuel is any fuel that derives from biomass — recently living organisms or their metabolic byproducts, such as manure from cows. It is a renewable energy source, unlike other natural resources such as petroleum, coal and nuclear fuels. A better definition of Biofuel is any fuel with an 80% minimum content by volume of materials derived from living organisms harvested within the ten years preceding its manufacture.[citation needed] Agricultural products specifically grown for use as biofuels include corn and soybeans, primarily in the United States, as well as flaxseed and rapeseed, primarily in Europe.

Much research is currently in progress into the utilization of microalgae as an energy source, with applications being developed for biodiesel, ethanol, methanol, methane, and even hydrogen. On the rise is use of hemp, although current politics currently restrains it. Waste from industry, agriculture, forestry, and households can also be used to produce bioenergy; examples include straw, lumber, manure, sewage, garbage and food leftovers.

Most biofuel is burned to release its stored chemical energy. The largest advantage of biofuel in comparison to most other fuel types is that the energy within the biomass can be stored for an indefinite time-period and without any danger.

Source: Wikipedia

CROPS FOR MAKING BIODIESEL

Oil-producing crops are found all over the world. Below are oil yields from crops that can be used to produce biodiesel.

Oil Crop	Yield per Acre
Oil Palm	635 gallons
Coconut	287 gallons
Jatropha	202 gallons
Rapeseed (canola)	127 gallons
Peanut	113 gallons
Sunflower	102 gallons
Safflower	83 gallons
Mustard	61 gallons
Soybean	48 gallons
Corn	18 gallons

Safer and Cleaner Fuel

Biodiesel offers fleet operators a safer, cleaner alternative to petroleum diesel. Biodiesel is made from renewable fats and oils, such as vegetable oils, through a simple refining process. Pacific Biodiesel produces biodiesel from used restaurant fryer oil. One of the main components for fryer oil are soybeans, a major crop produced by almost 400,000 farmers in 29 states.

Biodiesel is recognized as an alternative fuel. In its neat form and in blends of 20% or more with petroleum diesel, the US Department of Energy has acknowledged biodiesel as an alternative fuel. Biodiesel can be used for vehicle credits under the Energy Policy Act.

Biodiesel operates in conventional compression-ignition engines, from light to heavy-duty, just like petroleum diesel. No engine modifications are required, and biodiesel maintains the payload capacity and range of diesel. Since engine modifications are not required, there's no need to change vehicles, spare parts inventories, refueling stations or specially skilled mechanics. Vehicle hoses need to be checked after the first 6 months of operation on biodiesel. Replacement of non-compatible hoses may be necessary, but is not usually difficult or expensive. Blends of 20% or less tend to have little effect on even non-compatible hoses.

Biodiesel cuts down on targeted emissions. Biodiesel used in a 20 percent blend with petroleum diesel and a catalytic converter will cut air pollution. Particulate matter is reduced 31 percent, carbon monoxide by 21 percent and total hydrocarbons by 47 percent. Biodiesel used in a blend will also reduce sulfur emissions and aromatics. Using 100% biodiesel further reduces emissions and carcinogenic compounds.

The Role of Biodiesel

The goal of the biodiesel industry is not to replace petroleum diesel, but to extend its usefulness. Biodiesel is one of several alternative fuels that have a place in the development of a balanced energy policy. The role of biodiesel is to contribute to the longevity and cleanliness of diesel engines. The most likely use of biodiesel will be in certain niche markets that require a cleaner-burning, biodegradable fuel.

Emissions: The Clean Air Act allows the Environmental Protection Agency (EPA) to assess the contribution of non-road emissions to air pollution. EPA proposes to include marine diesel compression-ignition engines in the same regulatory framework as land-based, non-road compression-ignition engines.

Regulatory Liability: The Oil Pollution Act of 1990 increases the civil and criminal penalties for causing spills and for violating marine safety and environmental protection laws. The law applies to all vessels, and fines up to $10,000 per day can be levied against serious offenders.

Clean Water Act: The Clean Water Act requires states to establish standards for pollutants like grease and oil, in an effort to restore and maintain the chemical, physical and biological condition of U.S. waters.

PROS AND CONS OF BIODIESEL

ADVANTAGES

Can replace petroleum-based diesel in any modern diesel engine.
Is an excellent lubricant that can increase engine life.
Is free of lead, contains almost no sulfur or aromatics (toxic compounds such as benzene, toluene and xylene), and substantially reduces emissions of unburned hydrocarbons, carbon monoxide and particulate matter (soot), which have been linked to respiratory disease, cancer and other adverse health conditions. The production and use of biodiesel results in a 78 percent reduction in carbon dioxide emissions, according to a 1998 study from the U.S. Department of Energy and Department of Agriculture.
Has a positive fossil-energy ratio, meaning the energy stored in biodiesel is greater than the fossil fuel energy required to replace it. Although one recent study found a negative fossil-energy ratio for soy- and sunflower oil-based biodiesel, at least 10 other studies have found positive ratios for biodiesel, including the 1998 study mentioned above.
Is safer to store and transport than petrodiesel fuel and actually can be shipped via courier (FedEx or UPS, for example) in small quantities because it is not considered a hazardous material.
Can be used as a substitute or additive for home heating fuel, normally without any major modifications to a standard oil-fired furnace or boiler.
Production of crops for biodiesel supports local economies.

DISADVANTAGES

Sometimes more expensive than petrodiesel, but the difference in cost is disappearing because of recent federal tax legislation and the rising cost of petroleum.
Emissions of nitrogen oxides (a contributing factor in the formation of smog and ozone) are sometimes slightly greater with biodiesel when used as a vehicle fuel, but these emissions are lower when it is used as a heating fuel due to the different combustion process.
“Clouds” at extremely cold temperatures, causing some cold weather challenges. Biodiesel is more susceptible to this problem than petrodiesel.
Used in high concentrations, biodiesel will eventually soften rubber hoses and gaskets in older diesel engines (those made prior to 1994), resulting in leaks. Using biodiesel in these vehicles requires replacing these rubber parts.
Will dissolve the petrodiesel deposits that coat the sides of old fuel tanks and fuel lines, possibly clogging the fuel filter (usually a one-time problem).
In warm weather, biodiesel is more susceptible than petrodiesel to the growth of bacteria and mold. Keeping water out of the fuel will help to eliminate this problem.

Malaysia advances switch to bio-diesel

Malaysia will switch to bio-diesel next year, a year ahead of schedule, with government vehicles set to start using the palm oil-laced fuel to cushion the impact of rising fuel prices, a news report said.

Diesel-powered vehicles belonging to the ministries of transport and plantations, industries and commodities, will begin using bio-diesel next year before the alternative fuel is introduced to the public, the Star on Wednesday cited Minister Peter Chin as saying.

The government had planned to start using bio-diesel only in 2007; "but because our plans are going very well, it seems that we can start way ahead of schedule," Chin, the plantations, industries and commodities minister, told the daily.

Chin said the government expected to save "hundreds of millions of ringgit" through cutbacks in oil subsidies by convincing Malaysians to switch to bio-diesel, a mixture of 5% palm oil and 95% diesel. Chin said eventually bio-diesel will have 20% palm oil and 80% diesel.

Malaysia imports most of its diesel fuel, but it's the world's biggest producer of palm oil. The government says that adding palm oil to diesel fuel would reduce consumption by about 418,000 liters (110,427 gallons) a year

Subsidised fuel

Industries used 2.8 billion liters (0.74 billion gallons) of diesel last year, while others who qualified for subsidised diesel, such as public transport operators, consumed 5.56 billion liters (1.47 billion gallons).

The government has said that it cannot maintain the subsidies, which keep gasoline prices in Malaysia among the lowest in the region.

Palm oil is used mostly for cooking, but plantation owners sometimes use a mix of palm oil and diesel fuel to power tractors and trucks, and many say it does not affect the performance of the vehicles.

Malaysia to build first palm diesel factories

Malaysia will soon build its first bio-diesel fuel production plants, to process palm oil, mostly for export to the European Union, the government said.

The Malaysian Palm Oil Board will invest 60 million ringgit (US$16 million; Ђ13.2 million) to set up the plants, each with a 50,000-ton-a-year capacity, said Peter Chin, the plantations, industries and commodities minister.

All the plants will use processed palm oil to produce methyl esther, popularly known as palm diesel, which can be directly used in automobiles without further blending with conventional diesel or gasoline.

Malaysia started considering a palm diesel program several years ago when palm oil prices fell sharply. But with the recent surge in crude oil prices, industry experts say the plan is commercially viable even without much government support.

The government originally planned to build one plant but has decided on three because of strong interest from local plantation companies, Chin said. Two plants will be located in Port Klang in central Malaysia and one in southern Pasir Gudang. Commercial production will commence within a year after the start of construction, which will begin soon, Chin said, without giving a specific date, reports the AP.

Malaysia, Indonesia set aside 40% CPO for biodiesel.

The world’s top palm oil producers, Malaysia and Indonesia, have decided to set aside nearly 40% of their crude palm oil output for biodiesel production, the Plantation Industries and Commodities ministry said yesterday. “Both countries agreed to commit a targeted amount of six million tonnes of crude palm oil each annually as feedstock for the production of biofuels and biodiesel,” the ministry said in a statement.

The announcement, which came on top of Malaysia’s strong palm oil exports, helped the benchmark third month October contract on the Bursa Malaysia Derivatives to close up 3.3% to RM1,591 (US$432) a tonne.

The volumes more than doubled to 26,936 lots of 25 tonnes each from 12,887 lots traded on Wednesday. Other contracts were up between RM29 and RM54.

The statement said the decision was part of an agreement signed between the two nations, which together produce the bulk of the world’s palm oil.

Industry analysts said the move could further boost edible oil prices, making it expensive for both food and energy users to buy vegetable oils.

“Palm oil is going to become expensive and out of reach for consumers in developing nations like India, China and Pakistan,” said M.R. Chandran, an independent commodity consultant. “Palm oil will lose its attractiveness as a cheaper form of edible oil.”

Traders said companies setting up biodiesel plants had worked out the cost of palm oil at RM1,500 to RM1,600 a tonne to be viable for making biofuel. “The whole economics of palm as raw material for biofuel will change,” said an official at a leading trading company. – Reuters

Malaysia has advantage as big producer of palm oil

Carotech Bhd managing director David Ho, whose biodiesel company has successfully penetrated the global market, talks to StarBiz on how to be successful in the industry.

StarBiz: Does Malaysia have a comparative advantage in the biodiesel industry?

David Ho: Yes. Malaysia is the largest producer of palm oil (Indonesia might have crept past us) in the world. Palm oil is also cheaper as raw material for biodiesel compared with soybean and rapeseed and is the most bundantly produced vegetable oil in the world.

StarBiz: Will biodiesel be the future source of alternative energy transport?

David Ho: Definitely. We see the future transport mode to be based on biodiesel hybrid vehicles (biodiesel/batteries or biodiesel/hydrogen) depending on whether such technologies can be made available to the masses at economical prices.

Also, diesel and biodiesel are cheaper, providing 30% more mileage per litre compared with gasoline. Diesel and biodiesel cannot be replaced, based on current technologies, as many heavy-duty vehicles like trucks, buses and tractors require the “pulling power/ torque” to haul such heavy loads and petrol/ ethanol cannot provide such power as cheap as diesel/biodiesel.

Ultra low sulphur diesels (ULSD) is more environmentally friendly than petrol and works better blended with biodiesel.

Currently biodiesel and ULSD blend are the most favoured fuel in Europe. Today, over 70% of new vehicles registered in Europe are diesel powered.

StarBiz: Carotech has expanded successfully abroad. Is it easy for local players to emulate Carotech's success?

The key to success in this industry is technology and quality. We have the first integrated biodiesel plant in the world able to produce biodiesel and phytonutrients from crude palm oil (CPO). Our patented technology allows us to achieve stronger revenue from the two divisions and at lower operating cost.

Biodiesel is a risky business as the selling price is not correlated to prices of CPO or refined, bleached, deodorised palm olein - the raw material used. If the selling price, which is at present pegged to crude petroleum prices, falls and CPO prices continue to rise, then typical biodiesel plants would find it hard to stay afloat as the margins are squeezed.

Based on current petroleum prices and rising trend in CPO prices, many biodiesel players would be re-evaluating their plans to enter the industry.

Carotech's technology allows us to be more resilient and able to cope with higher prices of CPO or lower prices of petroleum.

A successful biodiesel producer must not only adopt good technology to maximise revenue and reduce costs. He must also produce high quality products consistently.

StarBiz: What are the current benefits given by the Government to the industry? David Ho: The Government has announced it will accord the pioneer status or high technology status to biodiesel companies, which provides a 70% and 100% tax waiver for five years. I am not aware of any company that has obtained these incentives. Besides the normal existing incentives, the Government has not given any special incentives for biodiesel producers.

StarBiz: What additional policies or Government support are required for local players to go global?

David Ho: To compete globally, local players need to produce high quality cost-competitive products. To have cost competitiveness a producer must achieve economies of scale in operations and this can only be achieved with a large market.

Ironically, the authorities are not promoting the use of biodiesel, as defined internationally with a chemical name of methyl ester, in Malaysia. Without a local market, our local players would have less demand for their products and need to rely heavily on the European market, which favours its local rapeseed biodiesel.

The Malaysian Envo oil is not the equivalent of the internationally accepted biodiesel (methyl ester). Envo oil is a blend of 95% fossil diesel and 5% palm olein.

Many markets like South Korea, the United States and European Union (EU) do not allow the use of direct vegetable oil into diesel engines. For instance, the EU standard on biodiesel (EN 14214) requires a minimum content of 96.5% methyl ester and no more than 0.2% triglycerides.

As such, we are adding 5% oil into diesel to call it biodiesel. This brings a new definition of biodiesel only seen in Malaysia!

If diesel engines can consume vegetable oil directly, why would the existing world standards on biodiesel require at least 96.5% methyl ester for it to be deemed biodiesel? We need to critically re-look at the existing policies.

Also, diesel is now being subsidised by the Government. But there is no such subsidy for biodiesel, which mean local producers will have difficulty selling their products in the local market.

StarBiz: What can local players do to help themselves?

David Ho: The local players coming into the industry will need to be extremely careful in choosing their technology and critically look into the quality of their products. In the long run, only the high quality, cost-competitive products will survive in the global arena.