Fryer to Fuel Biodiesel Business Models Olof Hansen

Transcription

1 Fryer to Fuel Biodiesel Business Models Olof Hansen U.S. EPA Region 9 San Francisco, CA

2 Contents Benefits of Waste-derived Biodiesel Flexible Biodiesel Models from 3 West Coast Communities Commercial: Santa Cruz Fryer to Fuel Public: San Francisco Greasecycle Legal:Portland, OR City Ordinance Resources (Web, Documents, Grants, BMPs, etc.) 2

3 Benefits Waste-derived Biodiesel: Beyond Fossil Fuels and Soybeans

4 EPA s Support for Biodiesel Provides energy security: domestic, renewable energy/fuel source Reduction of virtually all regulated air emissions: 60% reduction of asthma-causing PM Up to 80% reduction of green house gases 100% reduction of sulfur oxides causing acid rain Great potential for resource conservation and energy recovery: used frying oil (UFO) as feedstock for biodiesel 4

5 Emission Change between Biodiesel and Petrodiesel 20? Percentage Greenhouse Gases Sulphur Oxides Particulates Air Toxics Nitrogen Oxides -100 B100

6 EPA s Support for Biodiesel (cont.) Lifecycle analysis shows great fossil energy ratio benefits: Petroleum Diesel 0.8 Soybean Biodiesel 3.2 Yellow Grease Biodiesel 4.6 Only alternative non-fossil fuel that passed the Clean Air Act Tier I and II health effects testing Less toxic and biodegradable - no need for Exxon-Valdez type spill cleanup 6

7 Why is it important in the Pacific Southwest? To reduce particulates in our air! 7

8 Benefits of Waste-derived Biodiesel Conserves Resources Up to 3 billion gallons of waste grease in the US Recovers Energy Diverts resources and energy away from landfills Saves Costs Waste grease costs a lot less than virgin soy oil Protects Water Quality and Infrastructure 80% of US sewage overflows from Fats, Oils and Grease (FOG) Provides cradle-to-cradle economic model: Harvest urban crop for the local fleet 8

9 Why Focus on Waste Cooking Oil? EPA s Resource Conservation Challenge (RCC) Reduce waste, and reuse and recycle Recover energy lost in waste going to landfills U.S. Restaurants generate up to 3 billion gallons of waste cooking oil annually (U.S. EPA OSWER) San Francisco 3 billion gallons = 5,700 miles of tanker trucks end-to-end New York 9

10 Biodiesel Production versus Grease Generation in the US US Biodiesel Production Grease (both in Million Gallons)

11 High Energy Yield in Fats-Oil-Grease Residual Fats Rape Seed Cake Flotated Fats Food Waste Corn Silage Grass Silage Brewers' Grain Biosolids Green Waste Grass 1.Cut Sugar Beet Silage Whey Poultry Pig Manure Cattle Manure (Courtesy of M-Con Bio and Farmatic Biotech Energie AG, Yields in m3 gas/ton)

12 How can Biodiesel Solve Waste and Water Pollution Problems? By converting waste grease to a fuel commodity Diverts large waste stream from: Landfills or illegal dumping Publicly-owned treatment works (POTWs) Prevents spills and sewer blockages: 80% of sewer spills in the USA are caused by FOG (US EPA Office of Water) In a year, Los Angeles had about 800 sewer spills, due to pipes clogged by FOG 12

13 Flexible Biodiesel Models from West Coast Communities

14 Santa Cruz Project Urban Biofuels Initiative Final Report: A Guide for Coordinating a Fryer to Fuel Collection Program in Combined Urban/Suburban Areas 14

15 Commercial Biodiesel Business Model Recipe Dish: Locally-produced, sustainable biodiesel Serves: B5, B20 or B50 for local public fleets for a population of 150,000 people Ingredients: At least 100,000 gallons of waste grease/year generated by local restaurants/food preparing places. Commercial biodiesel plant within 200 miles. Liquid waste hauler(s) servicing local restaurants with truck(s) and containers. Public or commercial fleet(s) using diesel. Champion: Environmental or sustainability professionals within the public domain to motivate. Local environmental compliance inspectors regulating fats, oil, and grease from restaurants. 15

16 Santa Cruz Model for other Communities Fryer to bin to grease hauler for rendering to manufacturer for processing into biodiesel to distributor for blending and distribution to public fleets 16

17 Fryer to Fuel Found Solutions for these Challenges Tallow Collection Bad Specs Storage Consolidated Collection Grease Quality

18 Improved Storage Areas Before and after

19 Program Partners in Santa Cruz Fryer to Fuel Partners at Earth Day Event From left to right: Mary Arman, Public Works Operations Manager for the City of Santa Cruz, Bill Ottone, owner of Salinas Tallow, Phil Ottone, Manager of Salinas Tallow, Kevin Larson, Southern Territory Mngr. for Coast Oil, Vinicio Vides and Richard Gillis, Owners of Energy Alternative Solutions, Inc. (EASi), Olof Hansen, Grant Manager for the U.S. EPA and Tom Huetteman, Associate Director, US EPA.

20 Closed Loop

21 San Francisco Public Utility Commission (Brown Grease, Yellow Grease, Food Waste)

22 Big City versus Mid-size Current Status (Oct08) SFGreasecycle (San Francisco) Fryer to Fuel (Santa Cruz) Budget $1.2 million $75,000 Number of Participating Restaurants Total Number of Restaurants in Area ( highest volume restaurants) 2600 Approximately 1000 Geography Dense urban Suburban/urban/ rural combination Staff 3 Full-time employees 1 full-time employee for the duration of the grant, work absorbed by existing public works staff, Environmental Compliance Inspectors Number of liquid waste haulers picking up fryer oil in region More than 10. Less than 3 licensed haulers, one main hauler. QA/QC requirements Same requirements as private enterprise (below) None for government, borne by private entities (below). 22

23 Economic and Ecological Benefits of San Francisco Project Green Collar Job Creation in Tough Economic Times Project will generate at least 70 direct jobyears and 39 indirect job-years Fuel Cost Savings San Francisco will save $225,000/ year in fueling costs for fleet Green House Gas Reductions Full scale project will reduce 39,000 tonnes of CO2e/yr

24 Legal Model (Portland, OR) Ordinance with mandatory goals Biofuel Requirements. (Amended by Ordinance No , effective January 12, 2007.) Goals: Summer 2007 B5 for all retailers By July 1, 2010 B10 throughout Portland 50% of the biodiesel sold in Portland needs to come from either: Recycled feedstock: used cooking oil, or Local agriculture: Canola, Flax, Sunflower or Safflower Biodiesel produced from a imported palm oil may not be used to satisfy the requirements of this Chapter. Portland_Biodiesel_Ordinance.pdf

25 Resources for Sustainable Biodiesel 25

26 Resources for Restaurants from Santa Cruz Project 26

27 EPA s Roadmap for Biodiesel Facilities Environmental Laws Applicable to Construction and Operation of Biodiesel Production Facilities Document #: EPA-001EPA-907-B _manual.pdf

28 EPA s Food Waste Management Cost Calculator This calculator estimates the cost savings of alternatives to throwing food waste into landfills, including: source reduction, donation, composting, and recycling of yellow grease. Calculator can be downloaded from: e/conserve/materials/organic s/food/tools/foodcost.xls

29 EPA Sustainable Transport Grants National Clean Diesel Campaign Aims at reducing the pollution emitted from diesel engines across the country Clean School Bus USA Reduces children's exposure to diesel exhaust and other air pollution created by diesel school buses Smartway Transport Increase energy efficiency while significantly reducing air pollution and greenhouse gases U.S. EPA s Voluntary Diesel Retrofit Program Reduces pollution from existing diesel vehicles and equipment by encouraging cleaner burning fuel and pollution-reducing devices. 29

30 EPA Clean Diesel Funding HELP Technical support available at: NCDC-FACTS ( ) Answers about clean diesel funding and technologies typically provided within one business day Especially for 3 RFPs (all due Dec-09): National Clean Diesel Funding Assistance Program - $32 Million Emerging Technologies - $4 Million Smartway Finance - $6 Million

31 More Federal Sustainable Transport Funding Resources Clean Cities A U.S. Department of Energy program contributing to reduced petroleum consumption in the transportation sector U.S. Department of Agriculture/Natural Resource Conservation Services Environmental Quality Incentives Program (EQIP) Voluntary conservation program for farmers and ranchers that promotes agricultural production of fuel crops and environmental quality U.S, Department of Transportation's Congestion Mitigation Air Quality CMAQ funds Improve air quality and reduce congestion 31

32 The Mother Lode of Government Grants This is a comprehensive web site with information about finding and applying for all federal grant programs and it is possible to search for stimulus money here For grant opportunities related to the American Recovery and Reinvestment Act, use the Find Recovery Act Opportunities option. 32

33 The Basic Grant Proposal Who? Where? Why? What? Partners! Introduce your organization Location of your organization, partners and project What are the environmental issues that the project will solve Specify the activities of the project, outline the outcomes and outputs (measurable) Include strong letters of support and commitment from partners and supporters 33

34 Biodiesel Funding and Grants Resources (Summary) A centralized site for all Federal Grants Federal Sustainable Transport Program State of California Grants California Integrated Waste Management Board's Grant Writing Tips EPA Grant Writing Tips 34

35 Doggy Bag aka Take home message: Biodiesel from used fryer grease has great potential as clean, alternative fuel! You can serve as catalyst to help local waste-derived biodiesel production! It takes only a few elements to make it happen! 35

36 Thank you Olof Hansen U.S. EPA Pacific Southwest Region (415)