Biodiesel - Fat to Fuel An Opportunity for University Sustainability

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1 Biodiesel - Fat to Fuel An Opportunity for University Sustainability Olof Hansen, EPA R9 UCSB Turning the Tide Sustainability Conference Santa Barbara, CA June 2006

2 Benefits of Biodiesel Protects your environment (air, water, waste) Saves costs Protects your workers Promotes renewable energy Creates a sustainable market

3 U.S. EPA Pacific Southwest (Region 9) Main Office in San Francisco w/ 800 employees Field Offices in L.A., San Diego, & Honolulu Offices: Regional Administrator, Public Affairs, Regional Counsel, Air, Superfund, Waste Management, Water, Communities and Ecosystems, Policy and Management

4 Region 9 covers these 4 States Ar iz o n a, Ca lifor n ia, Hawai'i, and Nevada, a n d...

5 and works with Tribes as well (Over 150 Federally Recognized Tribes)

6 and has responsibilities in Pacific Islands Hawai'i

7 Why Biodiesel? Biodiesel is one of our nation's most promising alternative fuel sources. And by developing biodiesel, you're making this country less dependent on foreign sources of oil. President George W. Bush Remarks at Virginia Biodiesel Refinery May, 2005

8 Why EPA and Biodiesel? Advanced Energy Initiative: national goal of replacing more than 75% of our oil imports by 2025 Biodiesel will help our nation end dependency on foreign oil Foreign oil will go the way of the typewriter and the walkman Biodiesel adds to our nation s energy & environmental security... Restaurant grease which would normally be thrown away, will be turned into fuel Biodiesel is making the black puff of diesel smoke a thing of the past. Administrator Steve Johnson Remarks at National Biodiesel Conference San Diego, February 2006

9 Why Region 9 - West Coast?

10 Resource Conservation Challenge (RCC) Prevent pollution and promote recycling and reuse Reduce priority chemicals at all product life cycle stages Conserve energy and materials.

11 How do you Make Biodiesel? Transesterification Waste oil + Alcohol + Catalyst 87% 12% 1% Biodiesel + Glycerol 90% 10% Biodiesel can be splash-blended with petroleum diesel B2 vs. B20 vs. B100 (2% to 100%)

12 Little Known Fact Rudolph Diesel designed the diesel engine in 1894 to run on peanut oil The use of vegetable oils for engine fuels may seem insignificant today. But such oils may become in the course of time as important as petroleum and the coal tar products of the present time.

13 Environmental Benefits of Biodiesel Resource conservation: waste to fuel conversion Only alternative fuel which passed Clean Air Act Tier I and II health effects testing Reduction of virtually all regulated air emissions Over 75% reduction of green house gases Non-toxic, contains no sulfur causing acid rain Bio-degradable, no oil spill contamination

14 Emission of Biodiesel vs. Petrodiesel Percentage B100 Carbon Monoxide Hydrocarbons Particulates Air Toxics Mutagenicity Carbon Dioxide Nitrogen Oxides

15 Economic Benefits of Waste Cooking Oil as Feedstock for Biodiesel 1% 3% 2% 7% Cost Breakdown for Biodiesel Production 12% 75% Oil Feedstock Energy General Overhead Chemical Feedstocks Direct Labor Depreciation

16 Why Focus on Waste Cooking Oil? Resource Conservation Challenge (RCC) Reduce waste, and reuse and recycle more products Recover energy lost in waste going to landfills U.S. alone: Restaurants and hotels generate over a billion gallons of waste cooking oil annually Traditionally grease went into rendering industry 1 billion gallons waste grease = 400,000 tanker trucks

17 How much Biodiesel from Waste Oil? Could produce enough biodiesel to displace all diesel consumption in Nevada and Arizona combined. Assume over 1 billion gallons of biodiesel from nation-wide waste oil AZ consumes 912 million gallons of distillate fuels NV consumes 511 million gallons of distillate fuels Source: 2001 data from EIA website

18 How can Biodiesel Solve Waste and Water Pollution Problems? By converting waste grease to a higher value commodity. Diverts large waste stream from: Landfills or illegal dumping Publicly-owned treatment works (POTWs) Prevents spills and sewer blockages: Raw sewage and grease onto land and water In 2001, EPA sued Los Angels for 2,000 sewer spills, 40% due to FOG (fat-oil-grease)

19 Obstacles to Biodiesel Acceptance Limited supply Due to both demand and supply reasons Potential increase of NOx emissions Depends on engine type and test settings Lack of familiarity Quality of fuel

20 Biodiesel Activities of Region 9 Waste Management Division Innovation Workgroup grant to Univ. of Nevada, Reno Lower NOx emissions in pre-production (w/o additives) Decrease costs by continuous process IWG grant to Ecology Action in Santa Cruz Demonstrate cradle-to-cradle community-based model Gila River Indian Community Grant From Frybread to the Fuel Tank Internet Biodiesel Guide (Government leading by Example)

21 More R9 WMD Biodiesel Partnerships Working with West Coast Collaborative to promote biodiesel Emphasize waste cooking oil-generated biodiesel WCC sectors: Trucking, Marine, Construction, Locomotive, Agriculture, and Cleaner Fuels Waste cooking oil based biodiesel pilot with U.S. Navy at Port Hueneme, CA Partnership with Casinos, Universities, and Wastewater Treatment Plants

22 Web-based Biodiesel Guide Federal Network for Sustainability (FNS) EPA, DOD, NPS, U.S. Postal Service, GSA Enormous purchasing power $300 billion spent through contracts for goods and services 1.7 million employees Regulatory mandates EPACT: 450 gallons of B100 = one AFV credit = $2.5-20K FY02 DoD use of Biodiesel: 1.8 Million gallons

23

24 Federal environmental and energy conservation requirements/incentives IRS, Fuel tax credits and refunds of 50 cents/gallon of Biodiesel EPAct (Energy Policy Act of 2005) For every 450 gallons of biodiesel fuel used on vehicles weighing more that 8,500 pounds, one AFV credit is earned. Each credit has a value between $2,500 and $20,000. RCRA 6002, Agencies that generate heat, mechanical, or electrical energy from fossil fuel in systems that have the technical capability of using energy or fuels derived from solid waste E.O , Greening the government through waste prevention, recycling, and federal acquisition E.O , Developing and promoting bio-based products and bioenergy E.O , Greening the government through federal fleet and transportation efficiency

25 Casinos and Biodiesel MGM Grand in Las Vegas Used grease from casino kitchen to fuel fleet of Las Vegas Valley Water District, Clark County School District Eldorado Hotel Casino in Reno Used vegetable oil to heat buildings and generate domestic hot water Other casinos involved: Circus Circus, Club CalNeva, Silver Legacy Resort, Sands Regency, Fitzgerald s in Reno, Silver Club in Sparks, Tamarack Junction south of Reno Gila River Indian Community, Arizona From Frybread to the Fuel Tank

26 EPA University Biodiesel Projects: P3 People, Prosperity, and the Planet P3 competition will provide grants to teams of college student to research, develop, and design sustainable solutions to environmental challenges Oregon State University: From Field to Fuel Tank: Exploring Biodiesel as a Sustainable Alternative to Petroleum Diesel in Oregon s Willamette Valley Middlebury College: Demonstrating the Feasibility of a Biofuel: Production and Use of Biodiesel from Waste Oil Feedstock and Biobased Methanol Oberlin College: Community-Scale Biodiesel: An Affordable, Renewable Resource Building a Community-scale, off-the-grid Biodiesel Processing Facility Pennsylvania State University: Reduction of Use of Petroleum Energy Resources by Conversion of Waste Cooking Oils into Diesel Fuel (Phase 1), Engine Performance and Emission Reduction (Phase 2), and Commercialization (Phase 3) for 200 Pieces of Campus Equipment

27 EPA Region 9 UC System Partnership Opportunities Supply and Demand at same Locale Even more Supply for Urban Campuses West Coast Collaborative Grant Proposals UCOP Sustainable Transport Policy UCI, UCLA, UCD, UCR, UCSD BioDiesel Users already Potential for FOG at Wastewater Treatment Plant as Feedstock for Campuses UC ITS Large Scale Business Model

28 Benefits of Biodiesel Environmental (Air, Water, Waste) Energy Independence (Domestic, Renewable) Economic/Cost (Waste to Fuel) Quality/Standards Energy Policy Compliance Safety/Emergency Response EPA Region 9 Earth Day 2006 Awardee Willie Nelson BioWillie

29 Thank you Olof Hansen Laurel Hricik (415) (415)

Fryer to Fuel Biodiesel Business Models Olof Hansen

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