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
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
Research investment made at WSU Initiated in August 2007. Initial state funding was $500,000 annually, now $300,000/yr. Rebranded in 2013: Washington Biofuels Cropping Systems WA Oilseed Cropping Systems 15-20 projects each year; interdisciplinary research & extension team. Goal: Increase oilseed acreage from <1% to 10% of crop acreage by 2020. Washington State Dept. of Agriculture January 2017 3
Acres Pounds WA canola production is significantly higher than it was prior to 2012 WA Canola Production 1987-2016 100,000 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 10,000,000-1987 1992 1997 2002 2007 2011 2012 2013 2014 2015 2016 Harvested Acres Production - Source: USDA, National Agricultural Statistics Service Washington State Dept. of Agriculture January 2017 4
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
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 415 641 Grant 1,629 1,506 Ferry Adams 3,926 3,159 Stevens 174 114 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 261 315 Yakima Benton 3 0 Franklin 30 31 Walla Walla 705 1,604 Columbia 261 320 Garfield 1,230 1,260 Asotin 66 86
WA now producing 25% of PNW canola 1,000 lbs 300,000 PNW Canola Production, 2012-16 250,000 61,200 200,000 150,000 26,100 56,400 37,400 58,900 100,000 50,000 0 2012 2013 2014 2015 2016 Montana Idaho Oregon Washington Source: USDA, National Agricultural Statistics Service Washington State Dept. of Agriculture January 2017 7
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
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 2015. Produces food grade oil that s available for biofuel production. Odessa 8 MGY capacity. Integrated oilseed crusher/biodiesel production facility. Idle since 2014. General Biodiesel, Seattle 5 MGY capacity; restarted production in fall 2016. 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 2017 9
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
Million Gallons U.S. biodiesel production primarily driven by federal mandate and regional markets 2200 2000 1800 1600 Biodiesel Production Federal Renewable Fuel Standard (RFS) 1400 1200 1000 800 600 400 200 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Source: U.S. Energy Information Administration Washington State Dept. of Agriculture January 2017 11
State agencies lead biodiesel use in WA State agency biodiesel purchases topped 1 million gallons for 4th time in 2016. 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 1,000,000 800,000 600,000 400,000 200,000 State Agency Biodiesel Purchases B100 Gallons - 2008 2009 2010 2011 2012 2013 2014 2015 2016 Washington State Dept. of Agriculture January 2017 12
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 2017 13