Oilseeds and Biofuels in Washington State, 2017
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1 Oilseeds and Biofuels in Washington State, 2017 Mary Beth Lang, Bioenergy Coordinator Bioenergy Goals Reduce dependence on foreign oil Improve environment / public health Support WA agriculture and rural economy
2 State Action Strategies Invest in cropping systems research Grow oilseed/biofuel crops Use in state Process at in-state crushers / refineries Incentivize investment in processing facilities Require biodiesel use; Ensure quality
3 Research investment made at WSU Initiated in August Initial state funding was $500,000 annually, now $300,000/yr. Rebranded in 2013: Washington Biofuels Cropping Systems WA Oilseed Cropping Systems projects each year; interdisciplinary research & extension team. Goal: Increase oilseed acreage from <1% to 10% of crop acreage by Washington State Dept. of Agriculture January
4 Acres Pounds WA canola production is significantly higher than it was prior to 2012 WA Canola Production ,000 90,000 5-year intervals Ag Census 1-year intervals 100,000,000 90,000,000 80,000 80,000,000 70,000 70,000,000 60,000 60,000,000 50,000 50,000,000 40,000 40,000,000 30,000 30,000,000 20,000 20,000,000 10,000 10,000, Harvested Acres Production - Source: USDA, National Agricultural Statistics Service Washington State Dept. of Agriculture January
5 Washington Canola Acreage, 2007 Planted Acres reported to USDA-FSA by County Washington 9,704 acres San Juan Whatcom Skagit Okanogan 22 Ferry Stevens Pend Oreille Island Clallam Grays Harbor 5 Jefferson Mason Kitsap Thurston Pierce Snohomish 29 King Chelan Kittitas Douglas 1,083 Grant 1,686 Lincoln 1,171 Adams 2,973 Spokane 590 Whitman 1,250 Pacific Wahkiakum Source: Acreage Reported to USDA s Farm Service Agency Prepared by Washington State Dept. of Agriculture Cowlitz Lewis Clark 16 Skamania Klickitat Yakima 16 Benton 22 Franklin 134 Walla Walla 442 Columbia 265 Garfield Asotin
6 Washington Canola Acreage, 2016 Showing planted acres by County for 2016 and 2015 Washington 28,311 acres 2015: 31,344 acres Clallam Grays Harbor Jefferson San Juan Mason Island Kitsap Thurston Whatcom Skagit Snohomish King Pierce Chelan Kittitas Okanogan Grant 1,629 1,506 Ferry Adams 3,926 3,159 Stevens Pend Oreille Douglas 4,249 Lincoln 6,651 Spokane 4,688 7,397 4,447 9,139 Whitman 3,279 2,078 Pacific Wahkiakum Source: Acreage Reported to USDA s Farm Service Agency, as of 1/4/17 Prepared by Washington State Dept. of Agriculture January 2017 Lewis Cowlitz Skamania Clark Klickitat Yakima Benton 3 0 Franklin Walla Walla 705 1,604 Columbia Garfield 1,230 1,260 Asotin 66 86
7 WA now producing 25% of PNW canola 1,000 lbs 300,000 PNW Canola Production, ,000 61, , ,000 26,100 56,400 37,400 58, ,000 50, Montana Idaho Oregon Washington Source: USDA, National Agricultural Statistics Service Washington State Dept. of Agriculture January
8 WA has oilseed/biodiesel processing facilities to handle 300,000+ acres of production Oilseed Crusher Biodiesel Processor REG PCC Crush capacity: 350,000 T/yr = 350,000 acres Refining capacity: 105 MGY = 1.5 mil acres If yield is 1 T/ac
9 WA Oilseed/Biodiesel Processors REG Grays Harbor 100 MGY capacity. Feedstock: canola oil, primarily from Canada. Receives some oil from Pacific Coast Canola. Pacific Coast Canola Crush Capacity: 1,000 MT per day. Crushes GMO, non-gmo and High Oleic canola. Operated by Viterra since Produces food grade oil that s available for biofuel production. Odessa 8 MGY capacity. Integrated oilseed crusher/biodiesel production facility. Idle since General Biodiesel, Seattle 5 MGY capacity; restarted production in fall Feedstock: used cooking oil. Primarily selling into Oregon. Sequential Pacific, Salem, OR 17 MGY capacity. Collects substantial amount of used cooking oil in Washington. Washington State Dept. of Agriculture January
10 Market for biodiesel is especially strong along the West Coast Renewable Fuel Standards (RFS) Federal RFS2 Requires 36 billion gallons of renewable transportation fuel by 2022 Our neighbors Oregon: 5% biodiesel in all diesel since 2011 British Columbia: 4% biodiesel California: Low Carbon Fuel Standard (LCFS) Washington s 2% biodiesel requirement is not functional Industry Renewable Fuel Initiatives Military Commercial Aviation State and federal policy continue to support biofuels Government Use Requirements
11 Million Gallons U.S. biodiesel production primarily driven by federal mandate and regional markets Biodiesel Production Federal Renewable Fuel Standard (RFS) Source: U.S. Energy Information Administration Washington State Dept. of Agriculture January
12 State agencies lead biodiesel use in WA State agency biodiesel purchases topped 1 million gallons for 4th time in State Ferries (top user) fuels with B5. State fleets average 14% biodiesel B20 in western WA B20 (summer) / B5-B10 (winter) in eastern WA Per contract, biodiesel must be at least 51% in-state produced or feedstock-sourced. Testing and use show no biodiesel-related fuel quality issues. 1,400,000 1,200,000 1,000, , , , ,000 State Agency Biodiesel Purchases B100 Gallons Washington State Dept. of Agriculture January
13 What s ahead in the near term? Market demand for WA oilseeds strong WA crushing and biodiesel facilities very interested in WA feedstocks Market demand for renewable fuels strong RFS Renewable Volume Obligation (RVO) increases already in place CA, OR and Canadian market demands continuing Alternative Jet Fuel demand strong WA consumption increase driven by state and local govt demand WOCS to continue and evolve in response to market and grower needs Washington State Dept. of Agriculture January
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