Renewable Diesel & Biodiesel

Transcription

1 Renewable Diesel & Biodiesel Considerations for Sustainable Fleets

2 Fueled By Convenience! REG can make it easier to manage all your fuel needs!!! REG-9000 biodiesel REG-9000/Renewable Diesel #2 ULSD Heating oil Blended fuels ---B2-B20 & higher ---RD/B20 ---????? 2

3 What is Renewable Hydrocarbon Diesel?! RHD is hydrocarbons made from biological oils and fats (triglycerides) by hydrotreating! H 2! H 2! H 2! Propane! Paraffin! H 2! H 2! H 2! H 2! Triglyceride! Paraffin! Paraffin! Raw materials! Products! Hydrotreating reaction! 3

4 REG Geismar, LLC!! 75 million gallons per year nameplate capacity! Utilizes high and low FFA feedstocks! 4

5 Glycerin What is Biodiesel?! Biodiesel is methyl esters made from biological oils and fats (triglycerides) by transesterification! Methanol Methyl ester Methanol Triglyceride Methyl ester Methanol Methyl ester Raw materials Products Transesterification reaction!

6 Benefits of RHD!! Paraffinic fuel, which means:! Exceptional Cetane number! Greater than 65 (Federal diesel specification limit is 40)! Cetane number is an indicator of combustion quality! Reduced tailpipe emissions! In particular, NOx and carbon monoxide! Also particulate matter and total hydrocarbons! Virtually no sulfur! Pipeline approval as a blend component! Desirable Cloud Point! Cloud Point ranges from -10 C to -20 C! Winter pipeline specs for diesel are around -10 C! Can be blended at any level with diesel and biodiesel! 6

7 Benefits of Biodiesel! Oxygenated fuel, which means:! Reduced tailpipe emissions! Sulfur, carbon monoxide, hydrocarbons and particulates! Burn fuel instead of losing it out the exhaust! Emission reductions increase with amount of biodiesel in blend! Enhanced lubricity! Excellent for Ultra-Low Sulfur Diesel! No lubricity additives needed with B2 or higher blends! Biodegradable! On soil, B100 degrades as fast as sugar! Also accelerates the biodegradation of petroleum diesel! Comparable to vegetable oil for transport & handling requirements!

8 States with Notable Biomass-Based Diesel Policies New York City LEGEND Low Carbon Fuels Standard Mandate - Fuel use or Bioheat Tax Incentive - sales Tax Incentive - production Fleet Requirement Bioheat Mandate passed Awaiting Surrounding States Policy currently suspended No major policy Note: Current as of 01/08/2016 Source: DOE Alternative Fuels Data Center and Individual State Statues 8

9 Demand for Renewable Diesel and Biodiesel 2500 LCFS California Volume Projections! billion gallons of BMBD. Biodiesel/RD = 54% of diesel pool BMBD Volume Sources. NBB , CARB quarterly reports. CARB Biofuels Supply Module w/default input values.

10 Demand for Renewable Diesel and Biodiesel! Oregon Clean Fuels Program! 2015 volume was 25 million gallons.! 2016 volume was 43 million gallons.! Biodiesel: 33% of 2016 credit generation (no imports).! 2016 Credit Genera5on Source: NBB Ethanol Biodiesel Other

11 Renewable Diesel Availability! ~200 million gallons of domestic production capacity of renewable diesel in USA.! High demand! Premium markets! ~1.1 billion gallons of renewable diesel available globally.! Vast majority of US consumption of renewable diesel occurs in California.! 11

12 Biodiesel Product Availability! Source: NBB 12

13 Biomass-based diesel emissions! % ReducJon from ULSD Total Hydrocarbons (THC) 70% 60% 50% 40% 30% 20% 10% 0% % ReducJon from ULSD ParJculate MaUer (PM) 70% 60% 50% 40% 30% 20% 10% 0% R100 B20/R80 B50/R50 B100 % ReducJon from ULSD 30% 25% 20% 15% 10% 5% 0% Carbon Monoxide (CO) % ReducJon from ULSD Nitrogen Oxides (NOx) 20% 15% 10% 5% 0% -5% -10% -15% Note: All emissions data taken from 2006 Cummins ISM 370 on Federal Test Procedure driving cycle, as reported in Durbin, Thomas D., et al. "CARB Assessment of the Emissions from the Use of Biodiesel as a Motor Vehicle Fuel in California Biodiesel CharacterizaOon and NOx MiOgaOon Study." California Air Resources Board: Sacramento, CA (2011). Comparisons with Federal ULSD were conducted based on a linear comparison with CARB ULSD data. All biodiesel data shown is taken as an average of the means of high and low cloud point biodiesel emissions results, where available. B50/R50 results are predicted. 13

14 Biodiesel/Renewable Diesel Blending Economics (April 6, 2018) No. 2 ULSD NYMEX = $1.95/gal REG 80/20 Rack Price = $1.90/gal (California) = $3.25/gal (Washington) REG B99 Pricing = $1.35/gal (California) = $1.85/gal (Washington) Example only, based on approximate numbers from Q

15 New Product: 80% RHD 20% Biodiesel! REG has registered (CARB) and is currently selling an 80% Renewable Diesel, 20% Biodiesel product in California.! Favorable emissions profile.! Tremendous lubricity.! Better economics than neat renewable diesel.! Extends availability of Renewable Diesel.! 15

16 Next Product: 60% #2 ULSD---20% Renewable--- 20% Biodiesel! 0 20% 20% 60% #2 ULSD Biodiesel Renewable Diesel REG could provide 50/50 blend of REG-9000 RHD/Biodiesel to be used as blendstock mixed at different blends with #2 ULSD! 90/5/5! REG 80/10/10! 60/20/20! Biodiesel 50% 50% RHD 16

17 Biomass-based diesel review! Renewable Hydrocarbon Diesel and Biodiesel! Feedstock! Process! Product! Specification! Both processes can utilize any fat or oil.! Animal! fat! Renewable Hydrocarbon Diesel! React with hydrogen (hydrotreat & isomerize)! Convert 3-carbon backbone to renewable propane! Convert oxygen to H 2 O! Paraffin! Meets the diesel spec, ASTM D975! Molecules are familiar constituents of ULSD (petroleum diesel)! Paraffinic fuel! Vegetable! Oil! Biodiesel! React with methanol (transesterification)! Convert 3-carbon backbone to glycerol! FAME! Meets the biodiesel spec, ASTM D6751! Different molecules than those in petroleum diesel! Oxygen remains in 17 fuel molecule! Oxygenated fuel!

18 Broad Marketing & Logistics Capabilities REG STATS: 20+ YEARS REG has been producing biodiesel since MMGY Over 500 million gallons per year in nameplate capacity. Distribution Footprint at Plants, Terminals and to Customers 38 terminal locations (plus 12 plants) Delivered biodiesel and co-products to 47 states, 5 provinces in Canada 18

19 Thank You.! Jon Scharingson! Phone: !