NBB Technical Update: Iowa Biodiesel Board Steve Howell, Senior Technical Advisor ASTM Fellow, AOCS Fellow

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September 13, 2018 NBB Technical Update: Iowa Biodiesel Board Steve Howell, Senior Technical Advisor ASTM Fellow, AOCS Fellow 1

NBB Technical Program Keep Biodiesel Legal Emissions ASTM Standards New Engines Eliminate Technical Barriers Quantify Technical Benefits Industry Wide Efforts Benefiting Everyone Do projects one entity couldn t do on their own Do projects for whole industry so they don t need to be repeated by each company Key Advantage to the Biodiesel Industry 2

Biodiesel Technical Workshop October 23-24, 2018; Kansas City Invitation only Best and brightest brainstorm/prioritize: Petroleum/Additive Companies Academia/Government Labs OEMs Biodiesel Producers and Test Labs Producers meet Thursday to give direction Road map: NBB technical efforts for members Marriott Plaza Kansas City 3

NBB Priority FY19 Technical Priority Area BTW Priority Core Feedstock development 1 2 B21-B100 in heating oil 2 1 New ultra-low NOx engines (metals) 3 4 Implement B20 heating oil 4 1 On/Off road B21-B100 (metals) 5 Lower On-Road Vehicle Emission Testing 6 Improve cold flow 7 Core B20 in locomotives 8 Core Long term stability 9 Core Fuel quality enforcement 10 1 Existing aftertreatment (metals) 11 5 Multiproduct pipelines 12 Biodiesel quality surveys 13 Lower Biodiesel in electricity generation 14 Lower Adjust timng to reduce Nox 3 Fuel Economy and Maintenance on NTDE Lower Marine ISO sulfur reduction 4

NBB Technical Program Technical Efforts for B1-B20: Maintain existing markets Build confidence Increase volumes Begin Research/Testing B21-B100 Market/application focused Heating oil already underway 5

Technical Efforts for B1-B20 California: Partnered with California Fueling on B20 NOx Additive for California This has encouraged others to complete testing B20 in Underground Storage Tanks UL listings for petrodiesel also cover B20 in USTs Technical Package Submitted California Water Board: Treat B20 the Same as Petrodiesel 2015 EPA ruling considers B20 the same

Technical Efforts for B1-B20 Planned efforts to more formally document fuel economy, maintenance on NTDEs Conduct emissions durability testing to determine appropriate lower metals specifications for NTDE aftertreatment Many companies already below 1 ppm Some companies may need process changes

Technical Efforts for B1-B20 Monitor CRC tank corrosion study Increase in diesel tank corrosion at filling stations ULSD? Water? Microbes? Lubricity Additives? Ethanol Contamination? Biodiesel? Glycerin? Monitor field issues/problems and take appropriate action Diesel continues to change Cold flow with more paraffinic diesel Potential new diesel for low sulfur marine fuel

Technical Efforts for B1-B20 Fully implement B20 in heating oil B20 shelf life increase to over 1 year Guidance for storage longer than 1 year Better equipment company support Railroads requesting minimum aromatic, maximum cetane specifications. BQ-9000 and Fuel Quality Enforcement Build consumer confidence

Efforts With Blends Over B20 10

Why B20? Mid 1990 s Cold Flow only 2-10 F increase in Cloud Point Cost---B20 was only 20 cents more per gallon 25% Opacity reduction for urban buses Plus: B20 has similar physical properties as petrodiesel EPACT---Gov. Fleets and Alt. Fuel Providers: Using 450 gallons of B100 in B20 or higher = purchase of one AFV Reduces dependence on foreign oil, helps farm economy, creates manufacturing jobs NOx was similar for B20 Other air toxics were lower Material compatibility (gaskets, elastomers) was OK

What Has Changed 2018 Carbon Footprint is major driving force now RFS and Blenders Credit allow B100 to sell at prices similar to diesel State Credits or Requirement Programs Diesel technology has changed dramatically Emissions are very low with ULDS or Biodiesel NOx after-treatment Diesel particulate filters

Planned Approach, Blends Over B20 Use driving forces to target markets and blend levels On/Off Road Diesel Home Heating Oil Electricity Generation? Marine Diesel? Use Technical Workshop input to guide efforts Get with equipment companies and users: What are the detailed technical needs and challenges? Mesh with existing technical projects and efforts Piggy back on users/fleets who are willing to be early adopters and guinea pigs for higher blends

Blends Over B20 On/Off Road Diesel Major Driving Force: Lowering Carbon to Combat Climate Change Secondary Driving Force: - Zero Petroleum Movements - Incentives Reduce Cost to Below Petroleum - Low cost option to meet mandatory regulation Other Driving Forces: - Environmental Spill Less Harardous - Early Adopter Mentality

Blends Over B20 On/Off Road Diesel Initial meetings completed with Case New Holland, Caterpillar, John Deere, Cummins, GM Injector Performance Deposits? After-treatment Confirm NOx OK Biodiesel metals values Positive Impacts on Diesel Particulate Filter? Material compatibility---seals/gaskets Lab Scale Durability Field Trials Document durability, fuel economy, maintenance

Blends Over B20 On/Off Road Diesel Piggybacking on Existing Projects NBB funded Case New Holland Off Road Confirm lower spec levels for metals for NOx aftertreatment for B20: NREL Add CARB, EPA diesel with B40/B50 and B100 emissions Cummins Engine On Road at Purdue University Run B40/B50 and B100 emissions Investigate Optimizing : Capitalize on lower B100 PM Do all this in such a way that it sets the metals specifications needed for B100 used as B20, or used as higher blend

Blends Over B20 Home Heating Oil Major Driving Force: Lowering Carbon to Combat Climate Change Secondary Driving Force: Oilheat Dealers Competing Against Natural Gas and Electricity to Save Their Business Incentives Reduce Cost to Below Petroleum Low cost option to meet mandatory regulation Other Driving Forces: Early Adopter Mentality

Blends Over B20 Home Heating Oil Bioheat Technical Steering Committee Flame Sensors Modifying Air/Fuel Ratio to account for ~10% oxygen in B100 Emissions Materials Compatibility Copper Gaskets/Seals

Blends Over B20 Home Heating Oil Bioheat Technical Steering Committee Documentation of field experience Get equipment makers on board ASTM standards for blends over B20 Stability Viscosity Acid Number Others?

Blends Over B20 Home Heating Oil Cooperation with NORA--National Oilheat Research Alliance Babington Burner, unique blow hole technology B0-B100 flexible burner Automatic adjustment of air/fuel ratio through O2 sensor in exhaust piping Dial up and dial down of fueling rate, which is not possible with conventional on/off type burner

Blends Over B20 Electrical Generation Two Technologies: diesel electrical generation Diesel engine generator sets Large (railroad size) and medium (UPS truck/semi size) On-ground gas turbines Low NOx and High NOx versions Main driving forces: Renewable, low carbon electricity (65% of electricity is from high carbon coal, natural gas) Resiliency and back-up power for peaking, and powe on cloudy, windless days! Low/zero capital cost use existing equipment

Blends Over B20 Electrical Generation Diesel engine generator sets On/Off road To-Do list for blends over B20 will address most questions in this application May need to do some additional emissions and stability work Cold flow probably easier to handle with stationary applications

Blends Over B20 Electrical Generation On-Ground Gas Turbines: Emissions, particularly NOx and CO Combustor deposits and/or coking Metals need to be below 0.5 ppm Material compatibility---seals/gaskets Lab Scale Durability Field Trials Document durability, fuel usage rate, maintenance

Blends Over B20: Heating Oil On/Off Road Diesel Electrical Generation COLD FLOW 24

Cold Flow Options: Blends Over B20 Use in warm weather Heat the vehicle tank and/or filter Use the right kind of biodiesel Let mother nature do the work Remove/modify the high freezing components

Cold Flow Options: Blends Over B20 Heating The Fuel: Optimus Heated Duel Tank System Illinois Soybean, MN Soybean with 2-5 trial units Washington DC Metro Other potential customers Piggyback to document fuel economy, durability, inuse experience w/ B100

Cold Flow Options: Blends Over B20 Use the Right Kind of Biodiesel Optimize Fatty Acid Profile Saturates: great cetane and stability, but BAD cold flow Poly-unsaturates: good cold flow, OK cetane, but BAD stability Mono-unsaturates: BEST trade off between cold flow, stability, and cetane HIGH OLEIC, LOW POLY, LOW SATURATE OIL WOULD BE IDEAL! Potential competitive advantage for these oils

Pathway to Higher Biodiesel Blends Do the initial technical work on blends from B21-B100 Not quite starting from scratch..but close Marry up the driving forces, economics, and customer desires with technical challenges/questions on B21-B100 What blend level, and why? Industry Leadership: How big in 2050? B100 in heating oil: 5 billion gallons B20 in on/off road engines: 8 billion B100 for electrical generation: 2 billion Put in place steps to develop feedstock for target volumes in 2050 28 CAMP BIODIESEL 2018

Parting Thoughts.. Some customers want higher blends Low carbon, zero petroleum, made in the USA Some policy makers want higher blends Jobs, global climate change, resiliency, sustainability Being able to do higher blends if and when the market dynamics play out is a great hedge for the future regardless of how much is actually used Being an 80% carbon reducer keeps biodiesel in the game 29 CAMP BIODIESEL 2018

Thank You! Questions? 30