Biodiesel science and technology from soil to oil

Chemical sciences are crucial in increasing the efficiency of fossil fuels, addressing climate change and developing sustainable and renewable energy sources and a low-carbon economy.. W

Biodiesel science and technology

modelling and integration of the entire production chain, from feedstock pretreatment

on to hydrolysis, fermentation, and purification Primarily reviewing bioethanol production, coverage extends to the production of longer-chain bioalcohols which will

be elemental to the future of the industry.

Handbook of biofuels production: processes and technologies

(ISBN 978-1-84569-679-5)

This book provides a comprehensive and systematic reference on the range of biomass conversion processes and technology The initial section of the book covers the biofuels production chain and analysis of the environmental, social and economic issues surrounding biofuels production Sections then follow on the entire range of chemical, biochemical and thermochemical biofuels production routes, with chapters reviewing in detail the development of individual processes, from principles and feedstocks, to batch and continuous processes and technology, and also modelling and optimisation.

Handbook of waste management and co-product recovery in food processing, Volume 2

(ISBN 978-1-84569-391-6)

Food processors are under pressure, from both consumers and legislation, to reduce the amount of waste they produce and to consume water and energy more efficiently

Handbook of waste management and co-product recovery in food processing

provides essential information about the major issues and technologies involved

in waste co-product valorisation, methods to reduce raw material waste and water and energy consumption, waste reduction in particular industry sectors and end- waste management Chapters in Volume 2 focus on the transformation of food co-products using microorganisms and enzymes, advanced methods to optimise food manufacturing, such as closed-loop factories, non-food uses of food waste co-product and commercialisation issues.

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Woodhead Publishing Series in Energy: Number 7

Published by Woodhead Publishing Limited, Abington Hall, Granta Park, Great Abington, Cambridge CB21 6AH, UK

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About the authors xi Woodhead Publishing Series in Energy xiii

2 Development of non-food agricultural industries

3 Oleochemical sources: basic science, processing

Contents

3.6 Oil processing techniques 90

7 Transesterification processes for biodiesel production

8 Biodiesel catalysis 322

8.2 Homogeneous alkaline catalysis in biodiesel synthesis 327

9 Processes for biodiesel production from unrefined

11.3 Selected proprietary transesterification processing

12 Analytical methods and standards for quality

12.2 Quality control of biodiesel feedstocks 515

13.6 Renewable diesel synthesis without glycerol co-production 611

16.3 Challenges for the global biodiesel industry 789

About the authors

Jan C J Bart (PhD Structural Chemistry, University of Amsterdam) is a

senior scientist with a wide interest in materials characterisation, heterogeneous catalysis and product development who spent an industrial carrier in chemical R&D with Monsanto, Montedison and DSM Research in various countries Dr Bart has held several teaching assignments in universities in the Netherlands and Italy, researched extensively in both industrial and academic areas, and authored over 250 scientific papers and chapters in books; he is also author

of three recent monographs on polymer additive analytics Dr Bart has acted as a Ramsay Memorial Fellow at the Universities of Leeds (Colour Chemistry) and Oxford (Material Science), a visiting scientist at the Institut

de Recherches sur la Catalyse (CNRS, Villeurbanne), and a Meyerhoff Visiting Professor at the Weizmann Institute of Science (Rehovoth), and held an Invited Professorship at the University of Science and Technology

of China (Hefei) He is currently a Full Professor of Industrial Chemistry

at the University of Messina (Italy)

Natale Palmeri (PhD Industrial Chemistry, University of Messina) has

interest in heterogeneous catalysis and energy carriers He acted as a guest junior researcher at the Nicola Giordano CNR-TAE Institute of Advanced Technologies for Energy (Messina) and at the Boreskov Institute of Catalysis (BIC) of Novosibirsk (with Prof Vladimir Sobyanin) Dr Palmeri has authored several research papers and presently serves as a technologist at ISAB Srl’s Priolo refinery (Sicily)

Stefano Cavallaro graduated with an honours degree in Chemistry from

the University of Messina, where he now acts as an Associate Professor

of Industrial Chemistry in the Department of Industrial Chemistry and Materials Engineering His interests are applied industrial chemistry, in particular heterogeneous catalysis and transformation and storage of energy

Dr Cavallaro has a standing cooperation with the National Research Council Institute of Advanced Technologies for Energy (CNR-TAE) in Messina and

is author of over 110 research papers

Woodhead Publishing Series in Energy

1 Generating power at high efficiency: Combined cycle technology for sustainable energy production

Eric Jeffs

2 Advanced separation techniques for nuclear fuel reprocessing and radioactive waste treatment

Edited by Kenneth L Nash and Gregg J Lumetta

3 Bioalcohol production: Biochemical conversion of lignocellulosic biomass

Edited by K.W Waldron

4 Understanding and mitigating ageing in nuclear power plants: Materials and operational aspects of plant life management (PLiM)

Edited by Philip G Tipping

5 Advanced power plant materials, design and technology

Edited by Dermot Roddy

6 Stand-alone and hybrid wind energy systems: Technology, energy storage and applications

Edited by J.K Kaldellis

7 Biodiesel science and technology: From soil to oil

Jan C.J Bart, Natale Palmeri and Stefano Cavallaro

8 Developments and innovation in carbon dioxide (CO 2 ) capture and storage technology Volume 1: Carbon dioxide (CO 2 ) capture, transport and industrial applications

Edited by M Mercedes Maroto-Valer

9 Geologic repository systems for safe disposal of spent nuclear fuels and radioactive materials

Edited by Joonhong Ahn and Mick Apted

10 Wind energy systems: Optimising design and construction for safe and reliable operation

Edited by John Dalsgaard Sørensen and Jens Nørkær Sørensen

11 Solid oxide fuel cell technology: Principles, performance and

operations

Kevin Huang and John Bannister Goodenough

12 Handbook of advanced radioactive waste conditioning technologies

Edited by Michael I Ojovan

13 Nuclear reactor safety systems

Edited by Dan Gabriel Cacuci

14 Materials for energy efficiency and thermal comfort in buildings

Edited by Matthew R Hall

15 Handbook of biofuels production: Processes and technology

Edited by Rafael Luque, Juan Campelo and James Clark

16 Developments and innovation in carbon dioxide (CO 2 ) capture and storage technology Volume 2: Carbon dioxide (CO 2 ) storage and utilisation

Edited by M Mercedes Maroto-Valer

17 Oxy-fuel combustion for fossil-fuel power plants: Developments and applications for advanced CO 2 capture

Edited by Ligang Zheng

Energy, climate change and biofuels have recently become among the hot

‘buzzwords’ and with good reason Meeting future energy requirements with continued use of limited fossil fuels is now widely recognised as unsustainable because of depleting supplies and environmental degradation Ideally, energy demands should be reduced However, the world’s appetite for energy is expected to rise by another 60% in the next 25 years Prognoses of worldwide petroleum reserves are uncertain but generally predict maximum production in or before the period 2010–20 with a decline to the 1960 level by the year 2050 The world can no longer afford

to rely solely on fossil oil and oil-derived products Finding a cure for mankind’s oil (and carbon) addiction is urgently needed This requires energy efficiency awareness and changes in consumer behaviour The best way to maintain energy reliability is through diversity in sources of energy, suppliers and supply routes Sound public policy calls for measures

to gradually out-compete imported crude oil The world should prepare for a post-fossil oil future

The challenges of ensuring energy security and reducing carbon emissions are closely linked Global warming is accelerating The threat

of anthropogenic climate change knows no national boundaries and means that rapid action is required to reduce the CO2 output (concentration of 280

ppm before the industrial revolution vs 385 ppm in 2008) Alongside the

promotion of sustainability, it is time for alternative low-carbon emission energy sources However, there is no single low-carbon solution to cover all our energy needs Investment in technologies that improve energy efficiency for electricity, heating and transportation is vital A portfolio of different technologies is needed Society needs to reshape the global energy system in the coming decades Chemical sciences are crucial in increasing the efficiency of fossil fuels, addressing climate change and developing sustainable and renewable energy sources and a low-carbon economy Despite best efforts, liquid hydrocarbons, coal and gas will still dominate transport, heat and power for some considerable time to come It will take decades before we see a real shift away from oil as the predominant

fuel source The pace of changeover from oil will be driven by oil price, unpredictable geopolitical factors and investment in technological innovation and development with protection of the environment Alternative fuels, energy conservation and management, energy efficiency and environmental protection are becoming all important With concerns over rising petroleum prices, security of supply, climate change and needs for agricultural product diversity, the race is on to produce fuels from renewable sources Quite likely, however, fossil fuel prices need to rise even further before more substantial and effective political support is given to exploration of real alternative fuel sources.

Possible alternative transportation fuels are many: biogas, bioethanol, biomethanol, biobutanol, cellulosic ethanol, dimethylether, biodiesel, straight vegetable oils (SVO), hydrotreated vegetable oil (HVO), synthetic natural gas (SNG), FT-diesel and hydrogen Some alternatives to petrol and other fossil fuels are already being used in a variety of forms of transport Biodiesel derived from oil crops as a liquid energy carrier for transport is

a potential renewable and carbon neutral alternative to petroleum fuels In the medium to long term, switching to other forms of biomass as the raw material for biofuels (and materials) production is probably unavoidable, as fossil oil is a finite resource and food too precious for mankind The urgency

of responsible energy management and its timeframe are well illustrated by

a manifold of ambitious (supra)national and industrial targets up to the year

2050 However, current biofuel policies have already caused unforeseen social and environmental problems (rising food prices, deforestation and soil degradation) and therefore require rethinking in terms of criteria for sustainability Sustainable energy systems are achievable, but the problems are many and need urgent tackling At present, supply and demand of oils and fats are not in healthy balance

Although mankind is very inefficient in exploiting the photosynthetic process, the energy landscape continues to move rapidly The need to harness sustainable energy and reduce global warming has led to a search for alternative fuel sources In contrast with solar energy, biofuels are unique in their impact on agriculture, food, transportation, energy and chemistry and may therefore serve different interests EC president José Manuel Barroso has stated: ‘Biofuels figure prominently in the common energy policy of the European Union’ Although biofuels are not the most efficient way to harvest solar energy, being liquids they provide a most convenient method of distribution

As we run out of fossil fuels, the ‘green revolution’ may be just as radical as the previous industrial and digital revolutions The bio-economic revolution aims at responsible industrial development in bioenergy (biofuels) and bioproducts Biofuels mean a shift away from finite resources to almost infinite possibilities Traditionally, the agricultural industry has provided

food, feed and fabrics Now we need to add fuel Use of plant matter as a feedstock for both energy and chemical products includes the development

of fermentation-derived alcoholic biofuels, mainly bioethanol (from sugarcane in Brazil to wine in Europe) and more recently biobutanol (from corn grain, wheat, sugar beets, sugarcane and sorghum) Bioalcohols and biodiesel, made from sustainable agricultural crops, also produce valuable by-products in the process Although first-generation biofuels are in direct competition with food (sugar, maize, vegetable oils), future energy chemistry developments can be expected for the use of woody biomass wastes and residues that are rich in cellulose (rather than in starch) Cellulosic biofuels may be based on lignocellulosic resources such as switchgrass, straw, corn stalks and other agricultural waste

Use of sustainable energy systems is as diversified as the geographical context, as illustrated for some leading countries Germany already has produced over 2.9 Mt of biodiesel in 2007 The United States has installed

178 biodiesel plants with a total capacity of 10 Mt/yr (as of September 2008) but suffers from underdeveloped domestic use, in stark contrast

to Europe Sweden is a globally acknowledged world leader in biomass combustion (supplying 20% of its national energy needs) Iceland has successfully switched from a coal-based economy to one that uses renewable energy sources (hydroelectric and geothermal) for all heating and nearly all electricity; only transportation still depends on fossil fuels With the favourable agricultural conditions and flexible processing infrastructure, the majority of Brazil’s road transport is powered economically with a fuel mix made up of 85% (cane-derived) bioethanol Nevertheless, advanced biofuels based on adequate technological developments and edible energy crops cannot be expected to supply more than some 10–15% of global demand in an environmentally responsible manner without affecting food production Biodiesel demand creates a fundamental new demand for agricultural commodities that was non-existent several years ago Better prospects for farming biodiesel without undesirable side effects are based

on the use of the non-edible oil of Jatropha, now being cultivated in large

plantations around the globe, and on the development of biodiesel from algae, without competing for land area These feedstock sources will not make a significant impact before 2015

Biodiesel is increasingly being used commercially with a view to decrease dependence on fossil fuel, reduce greenhouse gas emissions from the transport sector and support agriculture Biodiesel stands as the only renewable energy source that is nowadays considered as a (partial) substitute for fossil diesel Biodiesel has similar combustion properties

as diesel and is considered a clean fuel The growth rate of the rapidly changing and maturing biodiesel industry is without comparison in the chemical industry The total installed capacity (mid 2008) has exceeded

some 30 Mt in a matter of only few years Commercial processes for manufacturing biodiesel from a great variety of feedstocks (including urban wastes) almost invariably employ different catalysts An analysis

of state-of-the-art biodiesel technology is timely

Messina

1

Biodiesel as a renewable energy source

Abstract: Renewable fuels are bound to gradually replace fossil fuels

Development of biorefineries will mark the historic transition into a

sustainable society in which biological feedstocks, processes and products constitute the main pillars of the economy Energy policy facilitating the introduction of biofuels, including biodiesel, avails itself of taxation, subsidies and mandates, which are not always unquestioned Transformation

of vegetable oils to liquid fuels is achieved industrially by catalytic

transesterification Biodiesel manufacturing, as yet based mainly on rapeseed oil (Europe), soybean oil (US, Argentina, Brazil) and palm oil (South- East Asia), requires further feedstock development Important actors in the biodiesel value chain are vegetable oil milling facilities and the crude oil industry

Key words: Renewable fuels, energy policy, transformation of biomass,

global biodiesel development, biodiesel value chain.

Our industrial civilisation greatly depends upon abundant, low-cost energy, which could be produced without political intervention and suppression Despite recent new oil discoveries in areas such as the Gulf of Mexico, the Tupi and Guará fields off South-East Brazil, Sudan, the Caspian Sea, Sakhalin, and in the Arctic, fossil resources are limited and nowadays no longer constitute cheap and reliable raw materials Moreover, many convenient industrial products and processes based on these resources seriously damage the environment The Petrochemical Age has resulted in massive pollution

of air, water and soil as well as in emissions of anthropogenic greenhouse gases (GHGs) thought to be at least partly responsible for the recent climate change [1] Warming of the climate system is unequivocal and there is a high probability that it has taken place during the last five decades or so as

a result of human actions In order to tackle climate change it is deemed necessary to stabilise the atmospheric level of CO2 at about 450 ppm by the end of the century This means an emission level of 2 t CO2/yr per person, corresponding to the present Indian average (the current European level is at 11–12 t) Meeting the target requires a variety of actions, including government regulation, energy efficiency in industry (in particular in chemical, cement and steel manufacturing) and elsewhere, production of biofuels in a zero-carbon cycle, development of GM crops, nuclear power and photovoltaics,

and capturing and storage of CO2 It is uncertain, however, that global warming can be limited by implementing low-carbon energy technologies This would anyhow require considerable R&D efforts (not foreseen by the Kyoto Protocol) There is also no unanimous short-term solution for reversing climate change Moreover, the harmful climatic effects (‘human-caused global warming’) due to increased hydrocarbon use and CO2 emissions have also been questioned [2, 3] About 40% of the heat trapped by GHGs is due to gases other than CO2, primarily methane [4] In any case, water, oxygen and CO2 enable life In a higher CO2 environment crop growth rates may

be expected to increase to the benefit of agriculture

The search for alternatives to fossil fuels dates back to the petrol crisis of the early 1970s, but just more recently the looming dangers of a global climate change are driving renewed interest in biofuels The world is awakening to the renewable fuels movement and the public clamours for alternatives to foreign petroleum The last 25 years have witnessed a gradual but growing shift towards greater use of plant matter as a feedstock for both energy and chemical products The combination of steeply increasing oil prices (in particular in the past few years), environmental awareness, relatively low cost

of plant material (until recently), and the development of biorefineries prepare mankind for a historic transition into a sustainable society in which biological feedstocks, processes and products become the main pillars of the economy This calls for further developing the necessary science and technology that enable this transition, while at the same time investing in infrastructure and defining economic and policy issues The various biomass-based resources used so far for fuel generation have mostly been (expensive) food crops, but biomass also consists of (cheap) agricultural and forest residues (e.g crop residues, rice husk, cotton stalk, pine sawdust, sugarcane, bagasse, etc.), urban and industrial residues Renewable and sustainable resources, which can be used as an extender or a complete substitute of diesel fuel may play

a significant role in agriculture, industrial and transport sectors in the energy crisis situation Agricultural and transport sectors are highly diesel dependent Various alternative fuel options for diesel are mainly biogas, producer gas, ethanol, methanol and vegetable oils

Development of new energy sources replacing fossil sources is the greatest challenge of the 21st century Renewable resources are more evenly distributed than fossil resources and energy flows from renewable resources are more than three orders of magnitude higher than current global energy use

The world economy depends on only two significant energy carriers, namely hydrocarbons (natural gas, gasoline and diesel fuel or heating oil) and electrical current Whereas the primary energy supply differs greatly from

nation to nation, hydrocarbons are our main means of storing energy At present, the consumption of primary energy is globally highly dependent

on fossil fuels, as shown in Table 1.1 US energy figures for 2006 are as follows: hydrocarbons, 84.9%; nuclear, 8.2%; hydropower, 2.9%; wood, 2.1%; biofuels, 0.8%; waste, 0.4%; geothermal, 0.3%; wind and solar, 0.3% (43% being used for electricity production) With France being the nuclear energy champion, Germany is a solar power leader (total PV capacity of

3063 MWp in 2006); by the end of 2007, the installed photovoltaic capacity

in the EU amounted to 4700 MWp (globally: 9200 MWp) USA and Spain are actively developing large-scale concentrating solar power (CSP) plants Large-scale hydropower provides virtually all of Norway’s electricity Wind power accounts for at most 5% of primary energy generation in Europe, but up to 21% in Denmark Important onshore wind farms are located also

in USA, Portugal and Egypt; focus is nowadays on large offshore power stations (e.g in Sweden, UK, Belgium and the Netherlands)

In global energy supply fossil fuels amount to over 80% Petroleum provides a significant fraction (~ 35%) of the world’s energy [5] Currently, global production and world consumption are approximately 85 Mbd of conventional oil and 11 Mbd of natural gas (totalling 5600 Mt/yr); the predicted output of oil would stall at about 100 Mbd Even the world’s largest oil fields (Ghawar, 80 billion barrels; offshore Safaniya, 25 billion barrels, and Cantavell, 20 billion barrels) are at the limits of their capacity and oil extraction is slowing down Actually, it is even not so much the quantity

of total reserves (which are still immense), which causes an impending oil shortage in the short term [6], but the flow and quality of the oil recovered There exists insufficient refining capacity for heavy oils with higher molecular mass hydrocarbon composition and higher sulphur content The era of cheap oil for our oiloholic society has definitely finished

According to some (Energy Watch Group), maximum petroleum production already occurred in 2006 More optimistic views foresee an irreversible decline in oil production by 2015–20 in the 20 oil-producing countries (rather concentrated areas of the globe) On the other hand, global demand for energy (and food) is predicted to double by 2050 [7, 8] The International

Table 1.1 Fuel shares of world total primary energy supply (%)

Energy source Developed countries Developing countries

Energy Agency (IEA) estimates an increase in energy consumption of 55% between 2005 and 2030 at an annual increase of 1.8% Safe global fossil reserves, estimated as 1.3 trillion barrels (2000), will be exhausted in less than 40 years While it is difficult to predict when the world is going to run out of petroleum, the reduction in the rate at which it can be extracted has set in before alternatives such as biofuels are cost effective The IEA thus warns of a forthcoming energy crisis: the gap in supply and demand for oil worldwide is expected to occur by 2015, when there will be a shortage of at least 12.5 Mbd (or about 15% of global needs) Energy changes take time Natural gas (NG) accounts today for over 20% of world primary energy production and represents the fastest growing primary energy source Proven gas reserves are located mainly in the Middle East (43%) and Russia (33%)

A peak in conventional gas production may occur between 2020 and 2050 Exploration of methane hydrates is still in its infancy [9] Among the fossil energy carriers, coal has the longest projected range (155 years worldwide) Supply security means for many countries (such as Poland) that coal remains the cheapest and most readily available form of energy

Fossil fuels will still dominate the scene for some time to come (> 80%

in 2030) Continuity of supply of fossil fuels, particularly crude oil, is increasingly being governed by geopolitical, economic and ecological factors Political developments have an impact on fuel prices, while environmental concerns require a reduction in greenhouse gases and toxic emissions There is an impelling need for energy diversification and containment

of the negative environmental impact of indiscriminate use of mineral fuels We clearly require an alternative fuel or strategy soon if we are to keep transportation going and the global economy running Hydrogen is an environmentally friendly energy carrier rather than a primary fuel source Moreover, the hydrogen era is still far over the horizon With the hydrogen fuel economy dream fading, time is running short Biofuels now account for over 1.5% of global transport fuels (around 34 Mtoe in 2007) In the future,

an increasingly larger share of global consumption of liquid energy carriers must be filled with renewable resources (vegetable oils, wood, straw, waste) Investments in a low-carbon energy infrastucture are needed

Although transport is globally not the main consumer of energy (accounting for about 30% of total EU energy needs), it is almost fully (98%) dependent

on oil-derived products and accounts for 67% of final oil demand in the EU Transportation represents a key GHG and CO2 generating sector (especially

in urban centres), responsible for 20% of total GHG and 26% of all CO2emissions in the EU Transport accounts for about 90% of the increase in CO2emissions in the period 1990–2010 and is the main reason for not meeting the Kyoto objectives

Renewable resources such as biomass can be used for the production

of chemicals and the supply of energy Renewables accounted for 8% of

the EU27’s energy consumption in 2006 Use of renewable resources can contribute towards the conservation of finite energy resources Despite an expected increase of about 1.8% per year, in the short term the contribution

of renewables to the global primary energy supply will remain at only approximately 14% [10] Biomass and biofuels constitute a big share of the renewable energy sources (RES) Production of first-generation biofuels (Fig 1.1) requires the use of 0.2 to 1.3 L fossil fuel per litre of biofuel [11] Apart from biomass and hydropower, the impact of other potentially important renewable sources such as geothermal, solar (PV, CSP), wind, tidal/wave/ocean is still negligible as primary energy sources (0.416%, 0.038%, 0.050% and 0.0005%, respectively) Hydroelectric energy (highly important

to countries such as Norway and Iceland) may be expected to grow, in particular in currently less developed areas The contribution of geothermal energy is expected to be limited (e.g Iceland) The impact of solar energy could increase significantly with organic solar collectors which reduce the effective cost of photovoltaic cells by an order of magnitude [12] The United Kingdom plans to hit its 2020 target of producing 15% of its energy from renewable resources by a 1000% increase over current renewable energy levels principally by vastly boosting wind power production The country also utilises impressive coal (accessible via underground gasification), wave and tidal power resources Oceanlinx Ltd (Sydney) is developing wave farms

in Rhode Island waters

1.1 First-generation biofuels.

Biodiesel FAME

or FAEE

Methanol or Ethanol

Bioethanol

Residue

Ethanol recovery

The success of biofuels is highly contingent on national governmental measures to encourage their use through positive contributions of agriculture, energy efficiency, environmental and energy security legislation and regulations, legal obligations and/or beneficial measures (mandates, production plant incentives, federal tax credits and forgiving sales tax), as well as petroleum prices The EU25 are heavily dependent upon energy imports The share of imports in their total energy consumption (47.1% in 2005) could easily reach 67.5% by 2030, which threatens the security of the EU oil supply Figure 1.2 shows the road fuel demand in the EU, which is steadily shifting from gasoline to diesel European refineries are characterised by a gasoline surplus and a diesel deficit The European refinery system will not

be able to meet the projected demand for diesel

Demand for diesel in the US is expected to increase by about 12% over the next 15 years while demand for petroleum-based gasoline is expected

to decline by 7% over the same period Before 2004 diesel was always less expensive than gasoline in the US In the past year, diesel prices in the US have greatly increased relative to gasoline (with increases of US$1.81 and US$1.12, respectively) as a result of high global demand and insufficient diesel refining capacity

Gasoline Diesel

Under the Kyoto Protocol to the United Nations Framework Convention

on Climate Change (UNFCCC) most industrialised countries have committed themselves to limit or reduce their emissions of greenhouse gases (CO2, CH4,

N2O, HFCs, PFCs, SF6) by 5.2% in relation to the base year 1990 or 1995 The contribution of H2O to global warming was not considered Reductions

in GHG emissions in the framework of the Kyoto Protocol (1997) are to

be achieved by a combination of energy efficiency, reforestation, use of renewable energy sources, carbon capture and storage (CCS), and application

of automatic meter reading (AMR technology) The Kyoto Protocol (141 signatories, US excluded) also provides for industrialised countries to implement project activities that reduce emissions in developing countries,

in return for certified emission reductions (CERs) Biodiesel projects are actually not actively participating under the Kyoto Clean Development Mechanism (CDM) [13] The EU is committed to cut its GHG emissions within 2008–12 by 8% from their 1990 level Ambitious self-imposed climate change objectives were defined by most EU member states The

UK domestic carbon emission reduction target is 20% below 1990 levels by

2010 (and 80% by 2050) However, the likelihood of such domestic targets being met in 2010 is highly doubtful In fact, both the Kyoto Protocol and (inter)national targets on climate change are very ambitious, high cost and environmentally limited Figure 1.3 illustrates the impact of CO2 in the case

of use of fossil and renewable resources Protocols are being developed to enable biodiesel producers to qualify for carbon credits

1.2.1 Biodiesel strategy

In 2001 the European Commission agreed on a strategy for sustainable development, including the use of biofuels The EU aims at increasing the share of renewable energy from 5.4% in 1997 to 12% in 2010 EU Directive 2001/77/EC aims at increasing renewable electrical energy (biopower) in

Fossil resources (petroleum, natural gas)

> 10 6 yrs

Production and refining

Fuels, power and products

CO 2 1–10 yrs

Biomass/

Bio-organics

Fuels, power and products

Biorefineries

Biomass/

Bio-organics

Net CO2gain

Net CO2reduction

1.3 Short- and long-term CO2 cycles.

the EU25 from 14% in 1997 to 21% in 2010 In May 2003, the EU outlined the Biofuels Directive (EU Directive 2003/30/EC) on the Promotion and Use of Biofuels and Other Renewable Fuels for Transport Biodiesel should substantially reduce petroleum used and GHG generated compared with their petroleum-derived alternatives The Biofuels Directive requires member states to increase the use of biofuels to a minimum of 2% of total liquid fuel consumption by 2005 (or 5.7 Mt) and to 5.75% by 2010 (or 16.5 Mt) If the target of 5.75% market share of biofuels in 2010 is met (current expectations: 4.2%), the EU27 will be short in feedstock to support the necessary biodiesel production (9.8 Mt/yr) (see Table 1.2) The EU requires 5.1 Mt/yr extra biodiesel capacity between 2006 and 2010 The agricultural surface needed for energy crops would then amount to 15–18 Mha (out of a total of 103.6 Mha EU cropland) or about 15–16% of the total agricultural area Satisfying these objectives is an enormous challenge for each member state, especially

if one considers that some 10% of total cultivated land dedicated to energy crops is generally considered to be the limit

Government policies are expressed through taxation, subsidies and mandates Government subsidies substantially affect the commercial viability of biodiesel Oilseed growers may benefit from subsidies Subsidies to blenders may lead

to increased demand for feedstocks Tax credits for capital investments may benefit farmers There is uncertainty about which producers or processors are able to take advantage of the particular programmes

In November 2003, the Energy Tax Directive 2003/96/EC was adopted concerning taxation of energy products, including detaxation of pure biodiesel (and blends containing up to 5% biodiesel) and biofuels to boost their production Tax exemption (initially for six years) is limited to the biomass portion of the biofuel This council directive is vital to achieve the targets in the Biofuels Directive Without tax relief (operated by various EU member states) biofuels are at present not competitive with conventional fuels Tax waivers have been responsible for the rapid growth of biodiesel

Table 1.2 EU biofuel targetsa

Year Target share b Biodiesel (Mt) c Gasoline (Mt) d Total (Mt)

a Directive 2003/30/EC (8 May 2003)

b Percentage of total demand

c Based on EU consumption (170 Mt, 2005)

d Based on EU consumption (117 Mt, 2005).

in Europe Also in November 2003, the EU agreed on a Biodiesel Standard (EN 14214 CEN) for fatty acid methyl esters (FAME) Another development was adoption of a revised standard for petroleum diesel (EN 590) which specifies that blends up to 5% FAME are considered as conventional diesel

in all respects This modification simplifies marketing of biodiesel/diesel blends

A number of government programmes encourage oilseed production for biodiesel These programmes alter the private profitability of oilseed production

in direct and indirect ways The main effect is to lower the costs for oilseed growers and biodiesel processors, while at the same time raising the costs borne by taxpayers Oilseed growers can benefit directly from subsidies or tax credits related to their production or investments They also can benefit indirectly by incentives paid to oilseed crushers or biofuel processors, because these incentives can alter the prices paid to producers in ways that effectively share the government subsidies among growers, processors and consumers

On 8 February 2006, the European Commission (EC) adopted an ambitious European Union (EU) Strategy for Biofuels to boost production from agricultural raw materials The main objectives are as follows:

∑ to promote biofuels in both the EU and emerging countries;

∑ to prepare for large-scale use of biofuels by improving their cost competitiveness and increasing research into second-generation fuels; and

∑ to support developing countries where biofuels production could stimulate economic growth

Unfortunately, the document assumed (erroneously) that biofuel production would have very little impact on feedstock prices and land use Second-generation biofuel feedstocks are expected to play an increasing role only after 2010 It was estimated that 27% of EU biofuel demand could be met domestically, but would also require increases in feedstock production and land use (up to 13% of available area) Rising demands for biofuels were considered to require accelerated imports of oilseeds (+ 19.9%) in the EU in the period 2006–12 A European strategy for the security of energy supply sets the objective of 25% substitution of conventional fuels by alternative fuels in the road transport sector by the year 2030 The EU claims it can meet the targets for bioenergy and biofuels for 2010, 2020 and 2030 with

no damage to biodiversity, soil or water resources [14]

Some EU measures aiming at promotion of increased use of renewable resources comprise the policy of use of set-aside land for non-food crop purposes, and industrial oilseed subsidies In fact, large tracts of land formerly used to cultivate annual crops had become barren The Mid-Term Review Reform of the Common Agricultural Policy (CAP), which defines set-aside

arrangements under which non-food crops for biodiesel production can be grown, has led to support for such energy crops in the form of a carbon credit of 745/ha Table 2.2 lists subsidised hectarage for energy crops in Europe In the US, farmers are being paid billions of dollars not to farm up

to 36 million acres

National biofuels legislation and targets vary widely among the EU27 member states Biofuels policies of the EU are (at least partly) aimed at GHG reduction (35% or more) There is some consensus about the GHG calculation methodology [15] Some EU member states intend to provide incentives for biofuels with higher GHG reduction

Even though fossil fuels will still be available for several decades, producing supplementary fuels from biomass addresses various important societal concerns without requiring substantial modification of existing vehicles or of the fuel distribution infrastructure Challenges to a nation’s energy security and diversity encompass:

∑ increasing the efficiency of all energy-intensive sectors through conservation and improved technologies;

∑ promoting diversity of energy supply;

∑ decreasing the dependence on foreign energy imports;

∑ improving national energy security;

∑ decreasing the environmental impact of energy-related activities (climate, GHG emissions, local pollution); and

∑ rural development (support for agriculture)

As the IEA claims, biofuel market developments are mainly influenced by agricultural policies, rather than security of energy supply issues [16] In fact, supply security should not be overemphasised since the percentage of

a country’s fuel supply that can be replaced with biofuels is small (some 10%), in particular taking into account the anticipated yearly growth of the global transport sector by 2.1%, with expected large national differences (cf car density/1000 pp: USA, 500; Germany, 710; UK, 523; France, 633; India, 14; P.R China, 13) An important biofuels policy goal is a sustainable production and use of bioenergy crops as part of a renewable energy mix in order to combat climate change

Drivers for increased use of biofuels are country specific, with emphasis

on securing the economy and diversifying energy sources (e.g in the US,

UK, P.R China, India, Taiwan, Indonesia), reducing reliance on imported energy products (EU, US, Thailand, Argentina, Brazil), readjustment of agricultural structure, regional development and improving farmers’ income (Brazil, Mexico, Philippines, P.R China), added value to national economy (Singapore, Philippines, Malaysia, Argentina) or health and environmental protection/sustainability (EU, UK, Japan, South Korea, Malaysia) Colombia intends substituting all imports of diesel for domestic biodiesel by 2020

EU policy toward utilising renewable energy aims at: (i) combating climate change; (ii) reducing local environmental stress; (iii) creating jobs (regional development); and (iv) securing energy supply Changing national energy systems requires much time and brings huge costs Consumer acceptance of the drive to substitute or blend some of the mineral-based fuel with biomass fuel in gasoline and diesel is receiving increasing support Climate change

is low on the list of global priorities (Copenhagen Consensus)

Several states have enacted legislation mandating the use of based products, such as South Korea, B0.5 (current) to B3 (2012); Taiwan, B1 (current) to B2 (2010); Thailand, B2 (Apr 2008); Philippines, B2 (2009);

biodiesel-EU, B7 (2011); Norway, B5 (2009); Romania, B2 (2008); Canada (federal), B2 (2012); Brazil, B3 and B4 (2009) to B5 (2010); Argentina, B5 (2010); Colombia, B5 (2008) to B10 (2010) and B20 (2012); Peru, B2 (2009) to B5 (2011); where B# denotes the percentage of biodiesel in a biodiesel/diesel blend Mandates set by many governments will probably not be achieved Biodiesel blends are now also mandated in some US states (LA, MA, MN,

NM, OR, PA and WA) The Minnesota Biodiesel Mandate (2002) requires that all diesel fuel for transportation use in Minnesota, among the top five soybean-producing states in the US, contains at least 2% biodiesel in 2005 (up to B5 by 2009 and B20 by 2015) [17]

Globally, public authorities promote the use of blends of biofuel and conventional fuel through directives and by setting ambitious goals (Table 1.3) EU targets comprise a 10% voluntary biodiesel inclusion by 2010, and 10% obligatory by 2020 The European Biodiesel Board (EBB) favours

a biodiesel share of 15% in the medium to long term A binding EU-wide target (RED), signed up in 2007, is to source 20% of the total EU energy needs from renewables by 2020 [18] Long-term goals in UK energy policy are securing clean energy at affordable prices and tackling climate change by reducing CO2 emissions [19] The UK’s Climate Change Bill (a world first) has set legally binding targets for cutting GHG emissions by 80% (based on

1990 levels) by 2050 Achieving this target requires de-carbonising electricity generation, by a combination of renewables, nuclear, and carbon capture and storage In the UK the current options for biofuels are bioethanol from the fermentation of sugars in sugarbeet or cereal crops and biodiesel from oilseed rape and (imported) soybean The UK Renewable Transport Fuels Obligation (RTFO) stipulates that from April 2008 biofuels must make up at least 2.5%

of the sales of transport fuel suppliers, increasing to 5% by 2010 and 10%

by 2015 To satisfy RTFO without significant biofuels imports, which would

be counterproductive, requires technological advances (second-generation technologies), including conversion of agricultural and forestry lignocellulosic waste materials to bioethanol and thermal conversion processes (conversion

of biomass into syngas) The UK government has also set a target that, by

2020, 20% of energy should be from renewable sources [20]

Table 1.3 Some long-term (national) goals in energy policy

Challenger Target(s)

World Reduction in GHG emissions by 5.2% on 1990 levels throughout the

2008–12 period a ; halving CO 2 emissions by 2050

EU25 10% market share for biomass-derived transport fuels by 2020 b

Obligatory non-food set-aside rate of 10% for period 2000–06 c

Reduction of energy consumption of 20% by 2020

Source 12% of total domestic energy consumption from renewables

by 2010 (20% by 2020, 33% by 2030)

Reduction by 20% of imported gas/petrol by 2030

25% of transport fuel from biofuels by 2030

Reduction of GHG emissions below 1990 level (20% by 2020, 50% by 2050)

UK Renewable transport fuels accounting for 5% in 2010 and 10% in 2015 d

Renewable energy sources (including biofuels) accounting for 20% by 2020

Reduction in CO 2 emissions by 26–32% (2020) to 80% (by 2050) against 1990 baseline e

Germany Biodiesel target of 10% by 2015

Reduction of GHG emissions by 40% by 2020 against 1990 levels Portugal Generation of 30% of power by new technologies by 2020

Iceland Propulsion of fishing fleet and all vehicles with hydrogen produced

with geothermal and hydropower by 2050

USA Tripling use of bio-based products and bioenergy over 2001–10 period

Increasing use of bioethanol fuel up to 5% of gasoline consumption

by 2010

Reduction by 30% of imported petroleum by the year 2010 f

Minimum renewable diesel of 0.5 Bgy (2009) to 1 Bgy (as from 2012) g Cost-competitive plant-derived ethanol by 2012

25% increase in energy efficiency by 2012 h

Renewable fuels (largely bioethanol) industry volume of 7.5 Bgy by

2012 h

Soy biodiesel share of 4% in 2016

Replacement of 15% of current gasoline consumption by 2017 i Minimum of 36 Bgy of alternative fuels by 2022 g ; 60 Bgy by 2030 Replacement of more than 75% of oil imports from Middle East by 2025

Biomass supplies 5% of nation’s power by 2030 (5.0 quad) j

Replacement of 12–18–25% of industrial organic chemicals with biomass-derived chemicals by 2010–20–30 j

Biomass share of 20% (9.5 quad) for transportation fuels by 2030 j Subsidised agricultural commodities for bioenergy production k

Germany’s Renewable Energy Act is a support programme offering attractive feed-in tariffs to renewable energy suppliers The production capacity of biodiesel requires at least doubling in order to meet the country’s biodiesel target of 10% by 2015 B10 is being rejected by German car companies who believe the higher blends lead to a dilution of the engine oil due to the different boiling point of biodiesel Accelerated biofuel targets in France are

as follows: 2% in 2007, 5.75% in 2008, 7% in 2010 (or 2.65 Mt biodiesel; requiring imports in view of limited acreage), and 10% in 2015

The United States relied on imported oil to meet 58.4% of its crude oil needs

in 2004 (47% in 1990) at a cost of US$200 billion The total consumption of petroleum in the US corresponds to about 7.5 billion barrels of oil equivalent each year (43 ¥ 1015 BTU), and almost 70% of this petroleum is consumed

by the transportation sector Low-carbon fuel standards (LCFS) are being developed at the state, federal and international levels Less than 5% of America’s energy is renewable In the US, biofuels are being driven by a variety of regulations, including the US Department of Agriculture’s Federal Biobased Products Preferred Procurement Program (FB4P) The primary objective of the US Energy Policy Act (EPAct, 1992), administered by the Department of Energy (DOE), is to reduce US reliance on foreign oil by the promotion of alternative fuels While EPAct 1992 sets a replacement of 10% of petroleum-based transportation fuels with domestically produced alternative fuels by 2000 and 30% by 2010 (goals far-off), US Energy Policy Act 2003 requires the use of 3.15 Bgy of biofuel by 2005 The Renewable Fuels Standard (RFS) under EPAct 2005 mandates that a minimum of 4 Bgy of renewable fuel (largely bioethanol) must be used in the US in 2006,

Table 1.3 Continued

Challenger Target(s)

Australia 1 Mgy biofuel target by 2012

Reduction of GHG emissions by 25% below 2000 level by 2020 and by 60% by 2050

P.R China Share of 10% renewable energy by 2010, 15% by 2020

India Share of 10% renewable energy by 2012

a Kyoto Protocol (1997).

b EU Fuel Quality Directive (17 Dec 2008).

c MacSharry Common Agricultural Policy (CAP) Reforms (1992, 2000).

d Renewable Transport Fuels Obligation (RTFO).

e Climate Change Bill (26 Nov 2008).

f US Energy Policy Act (EPAct, 1992).

g Energy Independence and Security Act 2007.

h US Energy Policy Act 2005.

i State of the Union 2007.

j Biomass R&D Technical Advisory Committee (BTAC).

k US Department of Agriculture’s Commodity Credit Corporation (CCC) program.

increasing to 7.5 Bgy in 2012 out of total gasoline use of 130 Bgy (2007:

143 Bgy) There is no compelling evidence that RFS (2005) has been a factor in the impact that high commodity prices have had on the economy EPAct 2005 also demanded a 25% increase in energy efficiency by 2012 The Biofuels Initiative has called for an enhanced RFS of 35 Bgy by 2017 The US Energy Independence and Security Act (EISA) of 2007 includes

a second stage of the renewable fuels standard (RFS2) that requires the domestic use of at least 500 Mgy of biomass-based diesel in the US in

2009 increasing to 1 Bgy as from 2012, and expands the minimum amount

of biofuels that will be used in the US to 36 Bgy by 2022 The required total volume of renewables to be blended into the US fuel supply is 9 Bgy (2008) up to 11.1 Bgy (2009) Many questions remain as to how these volume mandates will materialise Industry needs to expand beyond corn, which means using cellulosic biomass RFS2 has also established three new renewable fuels categories: advanced biofuels, biomass-based diesel and cellulosic biofuels In RFS2 terminology ‘biomass-based diesel’ is a specific title under ‘advanced biofuels’ and includes biodiesel, biomass-to-liquid diesel and renewable diesel, provided that oils and fats are not co-processed with petroleum diesel (see also Chapter 15) Up to now, and including 2009, the only commercially available biomass-based diesel available in the US in significant quantities is biodiesel Expectations are that 500 Mgy of biodiesel for 2009 can easily be reached even if the current high volume of exports

to Europe is cut back The EPA has delayed RFS2 ruling until mid-2009 The current target set by the National Biodiesel Board (NBB) is 5% of the country’s on-road diesel fuel market by 2015, corresponding to about

9 Mt/yr of biodiesel Analysts’ forecasts estimate a production of 15 Bgy bioethanol and 2 Bgy biodiesel in the US by 2015 (cf 2007 figures of 6.9 Bgy and 0.45 Bgy, respectively) [21] Bioethanol should be competitive by

2012 A US DOE goal is also to reduce the production cost of lignocellulosic ethanol from the present US$2.25/gal to US$0.82/gal by 2012 and to reduce feedstock logistics costs (harvesting, storage, preprocessing and transportation)

to US$0.35/gal The agency aims at making the fuel cost competitive to petroleum at a modelled cost of US$1.33/gal (2007 US$), thus dramatically increasing ethanol’s feedstock capacity The DOE has also set the long-term goals of producing at least 10% of basic chemical building blocks from biomass by the year 2020 and to increase this share to 50% by 2050 [22] The US Air Force aims at covering 50% of its fuel needs from domestic alternatives by 2016

Policy proposals for a viable US biodiesel industry comprise a tax credit

as well as feedstock cost support through the Commodity Credit Corporation (CCC) Bioenergy Program; CCC is a US government entity created to stabilise farm income (Farm Bill 2002) and provides support for biodiesel and ethanol producers The tax credit system being operated in the US is

primarily geared to support US farmers Despite enormous tax subsidies over the past 30 years, green sources still provide only a very small fraction of

US energy

The US Food, Conservation and Energy Act of 2008 promotes advanced biofuels (cellulosic ethanol, biobutanol and biobased hydrocarbons) made from non-food crops and offers incentives to move away from corn ethanol production The act institutes a production tax credit of up to US$1.01 per gallon of second-generation biofuels The law encourages farmers to grow biomass crops in areas around biomass facilities, such as biorefineries, to reduce the environmental impacts of transporting fuel feedstocks Subsidies for corn ethanol were trimmed from US$0.51 to US$0.45/gal

The US biodiesel-blender tax incentive (enacted in 2004) is presently in the form of a US$0.01 per FAME-% per gallon; this provision was to expire

in 2008 For B99 biodiesel the agri-subsidy is equivalent to US$0.99/gal This blenders’ credit makes biodiesel blends very cost competitive with conventional diesel The US biodiesel tax credit, aimed at the producer, has not stimulated growth in consumer demand Among the provisions of the recent Energy and Tax Extenders Act of 2008 (H.R 6049) US House has extended the biodiesel tax credits through 31 Dec 2009, qualifying all biodiesel produced in the US for a tax credit of US$1/gal, regardless of feedstock A significant change to the biodiesel tax incentive is therefore the complete credit eligibility of producers using non-virgin feedstocks such

as yellow grease Previously, waste-grease biodiesel only qualified for a 50 cent per gallon tax credit The law also shuts down the abusive ‘splash-and-dash’ loophole that previously allowed foreign-produced fuel to enter the

US, claim the biodiesel tax incentive, only to be shipped to a third country for end use Fuel produced outside the US now no longer qualifies for the biodiesel tax incentive The act also eliminates the requirement that renewable diesel be produced using a thermal depolymerisation process, and reduces the credit for biomass co-processed with a petroleum feedstock to 50 cents The EPA established the RIN (Renewable Identification Number) system to track renewable fuel batches from the producer through various downstream entities

According to an ACS Public Policy Statement (9 Dec 2007) the US should significantly raise its public and private sector investments in technologies to mitigate climate change through economically viable energy conservation, biomass fuel substitution for fossil fuels, carbon sequestrations and non-fossil fuel based energy sources The Obama administration is expected to dramatically reduce the country’s carbon emissions

National biofuel programmes are operative in several other countries (e.g Brazil, France, Sweden) The Netherlands is the only European country without

a biofuels programme Even developing countries nowadays have energy policies which include the use of locally available biofuels For example,

the regulatory framework for biodiesel production in Brazil is coordinated

by Probiodiesel (Programa Brasileiro de Desenvolvimento Tecnológico de Biodiesel) Costa Rica intends to displace 25% of oil imports with renewable sources by 2010 According to the Philippine Energy Plan 2002–11, bioenergy

is expected to supply roughly 25% of the nation’s energy needs (domestic and industrial heat generation, liquid biofuels for transport) by 2011 [23] Asian energy policy is summarised in Table 1.4

It is important to notice that biodiesel has met all due regulatory and technical requirements, including health effect testing and creation of standards (ASTM, EN, national) Without these essential provisions in place

it would not have been possible to commercialise the fuel In this context, it

is only to be remembered that circumventing the regulatory process was one

of the reasons that has led to the fallout regarding methyl tert-butyl ether

(MTBE)

1.2.2 Gain and pain

Without initial governmental subsidies industrial production of biodiesel

is not profitable because of heavy start-up costs However, biodiesel has become more attractive recently because of its environmental benefits The cost of biodiesel, however, is the main obstacle to its commercialisation In

Table 1.4 Asian energy policy (after ref [24])

P.R China Renewable Energy No RE share 15% (2020)

Legislation 2006

India Diversify energy sources No 11.2 Mha jatropha (2012)

Japan Kyoto Protocol, energy No 6% CO 2 reduction (2010)

efficiency

South Korea Environmental B0.5 B3 (2012)

Taiwan Diversify energy sources B1 B2 (2010); import

Thailand Reduce imported energy No B2 (2008)

products

Philippines Increase farmers’ income B2 B3 (2010)

Singapore National economy No 3 Mt/yr (2015); develop

into major renewable diesel producer/exporter Indonesia Diversify energy sources No 9.2 Mt/yr (2025)

Malaysia Environmental No Develop into major

biodiesel producer/ exporter

the present, production and utilisation of biodiesel are generally facilitated through the agricultural policy of subsidising the cultivation of non-food crops and by tax exemptions In the long term, however, policy decisions should just ensure a free market for biodiesel, without farm subsidies, regulations and other interventions.

Several recent changes in governmental priorities should not go unnoticed The European Union is moving towards sustainable energy and not renewable energy Under the Bush Administration, the US has upgraded the 7.5 Bgy renewable fuels standard in 2012 to 36 Bgy by 2022 (mandatory requirement), whereas more recently, under the Obama Administration, the biofuels policy has changed focus from energy security to critical environmental issues China changed from using food feedstocks to not using any food Brazil started biodiesel production in 2005

In Europe, tax credits are in the form of reductions in the excise tax paid

at fuel pumps, benefiting consumers rather than producers This arrangement builds demand for biodiesel In contrast, the US producer tax credit assists mainly in building up unnecessary production capacity The introduction of graduated taxation of biodiesel in Germany has slumped biodiesel sales at public filling stations by a third in comparison to 2007 It would appear that

a viable industry may only be so because of tax credit policy Tax credits may have the best intentions, though the effects appear to be anything but

An energy policy is only as good as its execution Realistic legislative targets have to be mandatory and governments need to ensure that they are met Only Germany met the 2% 2005 target set by EU Directive 2003/30/

EC Moreover, usage mandates do not guarantee sustainability or remedy for the feedstock crisis Recently, the EU biofuels policy has been challenged (in particular the 10% target for the market share of transport fuels from biomass

by 2020) as it had not foreseen causing social and environmental problems Consequently, there might be a regulations rethink It would also appear that other political intervention elsewhere has not altogether been based on entirely sound considerations Replacing all the transport fuel consumed in the US with biodiesel will require 0.53 billion m3 of biodiesel annually at the current rate of consumption As shown in Section 1.4.2, oil crops, waste cooking oil and animal fat cannot realistically satisfy this demand Even the minimum renewable requirement in the US diesel pool from 0.5 Bgy in 2009 to 1 Bgy

as from 2012 (according to EISA 2007) ignores the fact that acquisition of additional feedstocks beyond a biodiesel production level at 0.2–0.3 Bgy is very difficult and upsets regional markets [25] A 0.5 Bgy US biodiesel industry, which would satisfy only 1.5% of US on-highway petrodiesel or < 1% of total fuel oil and kerosene use, would require all of the surplus vegetable oil (0.13 Bgy), half of the used oil (0.17 Bgy), and all of the oil that could be produced

on 13.8 Mha of idle cropland (~ 0.3 Bgy), or the equivalent by displacing current crops This is clearly unrealistic The political requirement may then

only be met by imports, which is not precisely in the best interest of a sound energy balance (see Section 14.2) Oil crops cannot significantly contribute

to replacing petroleum-derived liquid fuels in the foreseeable future, unless microalgae are used to produce biodiesel Between 1 and 3% of the total US cropping area would be sufficient for producing algal biomass that satisfies 50% of the transport fuel needs (see Section 5.7.2)

An OECD recommendation [26] urges countries to end mandates for biofuel production and replace them with technologically neutral policies, such as carbon taxes that stimulate energy efficiency and a broad range of approaches

to reduce GHG emissions (certification requirement) Indiscriminately increasing the amount of biofuels may not automatically lead to the best reductions in emissions Recently, concerns have been expressed on large biofuel mandates on account of previously ignored increased greenhouse gases through emissions from land-use change [27] Many governments are now revising biofuels policies Ireland has lowered the 2010 biofuels target from 5.75% to 3%, citing price and emissions concerns Also the UK’s Renewable Fuels Agency has recently recommended that the EU slows its advancement

of biofuels and re-evaluates its policies, in particular taking into account the detrimental effect caused by an increase in food prices Not surprisingly, food and consumer goods group Unilever backs recommendations to scrap mandatory biofuel targets and subsidies

Key non-technical issues that need to be addressed are creation of public awareness, biomass availability, ethical issues (use of food material for non-food; not relevant for waste oils), evaluation of environmental impacts through life cycle analysis (LCA), regulations, harmonisation of standards,

taxation, etc Biodiesel and bioethanol have already reached commercial

markets, especially as blends with petrofuels Biofuels may develop into a more locally available resource than fossil fuels, although economy of scale makes stringent requirements [28] There is a need for long-term supply and consistency of the raw material(s) involved The most remarkable feature of the biodiesel production market is its rapid growth (until 2007), probably unequalled in the chemicals sector This has been driven largely by increasingly detailed political directives to achieve biodiesel substitution in petrodiesel fuel blends More recently, however, the biodiesel industry has been victim of its own success as steep increases in feedstock prices have forced many operations (temporarily or permanently) out of the market In March 2008 at least 20 US operations (totalling 220 MMgy capacity) were idle; in March 2009 the corresponding figures had increased to 32 operations with a total capacity of 507 MMgy At least 15 past US biodiesel facilities (with a total capacity of exceeding 200 MMgy) are now defunct

At present, the biodiesel market is confronted with high uncertainty and volatility Growth prospects are negatively influenced by the ongoing fuel vs food debate, the public’s disillusion regarding biofuels, rising raw material

prices, constantly changing regulatory environments, a slowing economy and the financial crisis restricting financing future projects According to USDA high energy prices, increasing global demand, drought and other factors – not biofuels – are the primary drivers to higher food costs Severe floods in the US Midwest in mid-June 2008, damaging crops, have caused a sharp rise in corn prices to a record high of more than US$7 per bushel In the present market conditions (high vegetable oil prices) the 2010 biodiesel targets appear elusive The end of the period of rapid growth in the biodiesel industry is creating both uncertainty and opportunities.

1.2.3 Biofuel research and development

Bioproduct R&D is currently a hot topic worldwide [29], albeit with strong economic and political conditioning Biofuel R&D has been driven by recent regulations to reduce dependence on mineral oil (US FB4P and EU Directive 2003/30/EC) The biofuels industry faces a more than 60 year R&D delay with respect to the petrochemical industry with its advanced standards of performance However, synergies between the bioprocessing and petroleum industry might be realised Since the end of 2003 mineral oil companies have been allowed to mix up to 5% of biodiesel with their conventional diesel The present ratio is 2.7% (or 3.75% in Germany, 2005) Several major oil and chemical companies (e.g BP [30], DuPont [31], Fina [32], IFP [33–38], Mizusawa [39], Petrobras [40], Petronas [41, 42], Petronic [43], Royal Dutch Shell [28, 44], Neste Oy [45–47], and others such as Chevron, ConocoPhillips, ExxonMobil, GRACE Davison, Gulf Oil, HPLC, IOC, Mitsubishi, Petropar, Petroplus, PetroSun, PTT, Statoil, TotalFinaElf, UOP) are committed to alternative fuels (see Section 15.5) Whereas Total claims to be the world market leader for rape biodiesel, GRACE Davison focuses on catalysts and adsorbents for purification to enhance biodiesel and bioethanol quality and

is developing chromatography-based analytical and QC tools for the quality

of the renewable fuels DuPont advances biobutanol and cellulosic ethanol (corn-stover-derived) Chevron is committed to conversion of cellulosic biomass (forestry and agricultural waste) – rather than corn – into ethanol and renewable diesel and to bio-oil reforming (conversion into hydrogen) Statoil has a keen interest in marine biomass

Not surprisingly, the chemical and petrochemical industry is well aware

of the concept of mineral oil as a limited resource and has taken action After a variety of energy efficiency measures resulting in a 22% energy reduction in the past decade, Dow Chemical plans to reduce its global energy consumption by another 25% over the period 2005–15 DuPont intends to produce 25% of its products from renewable sources by the year 2010 The Dutch chemical industry aims at halving its dependence on fossil raw materials within the next 25 years (Nederlandse Regiegroep Chemie) Shell

Oil intends providing 30% of the world’s chemical and energy needs by use

of biomass by 2050

The term biomass means any (biodegradable) organic matter, available on

a renewable or recurring basis (excluding old-growth timber), including dedicated energy crops and trees, agricultural food residues, aquatic plants, wood and wood residues, animal wastes and other (industrial and municipal) waste materials that can be used in place of fossil-fuel sources to develop value-added products such as power, heat, industrial chemicals and consumer goods [48] Biomass, which has a complex composition, may be harvested for food, feed, energy or as a chemical feedstock (Fig 1.4) Biomass reflects the synthesis performance of nature and has a different C:H:O:N ratio from (equally complex) petroleum Biomass denotes a great variety of biomass types, arbitrarily divided into wet (>50%) and dry (<50%) biomass, roughly corresponding to agricultural and forestry crops Elimination of water

by evaporation greatly determines the processing costs and total energy balance Biomass-based energy use differs greatly in various parts of the world Zimbabwe covers 75% of its energy use with biomass (producing

40 ML bioethanol), followed by Finland, Sweden and Austria with 20, 19 and 11%, respectively In Western countries, where land and labour are relatively expensive, the energy-crop harvest will not be as rapidly profitable

Conversion Pyrolysis Gasification Combustion Fermentation Bio-gasification Transesterification Hydrotreatment GTL Steam/water cyclus Gas turbine

1.4 Benefits of an integrated system for conversion of combustible

renewables.

as elsewhere in the world In any case, improved combustion, or preferably advanced gasification techniques should accompany the wider use of biomass Processing of biomass is CO2 neutral [49].

The primary conversion processes of biomass are summarised in Table 1.5 Heating biomass (mainly wood) in the absence of oxygen at temperatures of 723–1073 K (thermolysis) up to 1773 K (pyrolysis) yields char and charcoal (at lower temperatures), an acid fuel oil, and a gas mixture, containing H2,

CO, acetylene (mainly at higher temperatures) Gasification differs from thermal conversion processes in that air and steam are used to give a product richer in oxygen (CO, CO2, H2, CH4) The product can be used for the generation of electricity or syngas Interesting perspectives are offered by

‘biomass-to-liquid’ or BTL technology, which permits the transformation

of biomass (cellulosics, wood, organic waste, etc.) into biofuels by temperature gasification followed by Fischer-Tropsch (see Section 15.5) Fuel production from the lignocellulosic component of biomass will be very important Hydrothermolysis (Royal Dutch Shell) produces a low-oxygen content oil-like material (bio-crude) Anaerobic digestion evolves methane

high-Fermentation of glucose-based crops such as sugarcane (Saccharinum

officinarum) and corn starch using Saccharomyces yeasts leads to ethanol

Most biomass technologies have not yet become competitive

A great variety of products are considered ‘biofuels’ (i.e a liquid or gaseous fuel for transport produced from biomass), including bioethanol, biodiesel, pure vegetable oils, and others (see Section 2.2) Ethanol is by far the largest volume chemical made by bioprocessing Biofuels often present an important advantage as compared to other alternative fuels such

as LPG (liquefied petroleum gas) as no specific distribution system is needed Direct use of unmodified vegetable oils and fats of renewable feedstocks, consisting of long-chain (mainly C12–C22) fatty acid triglycerides, as biofuel

in existing engines has some disadvantages even in tropical climates (see Chapter 4) The greatest drawback of using pure vegetable oils as fuels is high viscosity, although this can be reduced by techniques such as dilution, micro-emulsification, pyrolysis and transesterification

Table 1.5 Biomass conversion processes

Thermolysis (723–1073 K) Char, oil, gases

Pyrolysis (1773 K) Gases (C 2 H 2 ), char

Gasification (923–1473 K) CO, H 2 , CO 2 , CH 4

Hydrothermolysis (523–873 K) Oil, char, gases (CO 2 )

Anaerobic digestion CH 4 , H 2 O

Aerobic digestion CO 2 , H 2 O, heat