Wednesday, September 29, 2010

Q&A for Biodiesel

Q. What is Biodiesel? 

A. Biodiesel is a clean burning alternative fuel, produced from domestic, renewable resources. Biodiesel contains no petroleum, but it can be blended at any level with petroleum diesel to create a biodiesel blend. Biodiesel is simple to use, biodegradable, nontoxic, and essentially free of sulfur and aromatics.

Q. Can you only make biodiesel out of soy oil? 

A. No. Biodiesel can be produced from any vegetable oil including plants like sunflower, peanut, and rapeseed (canola). It can even be produced from previously used oils like restaurant waste grease and animal fats.  Currently, the biodiesel facility in N. Charleston (SE Biodiesel) is using waste grease and Farmers & Truckers Biodiesel may use chicken fat. Research is underway in South Carolina to develop more sustainable sources of oil including algae oil which could produce thousands of gallons of oil in a single acre of algae.

Q. Is Biodiesel the same thing as raw vegetable oil?

A. No. Biodiesel is produced from any fat or oil such as soybean oil, through a refinery process called transesterification. This process is a reaction of the oil with an alcohol to remove the glycerin, which is a by-product of biodiesel production. Fuel-grade biodiesel must be produced to strict industry specifications (ASTM D6751) in order to insure proper performance. Biodiesel is the only alternative fuel to have fully completed the health effects testing requirements of the 1990 Clean Air Act Amendments. Biodiesel that meets ASTM D6751 and is legally registered with the Environmental Protection Agency is a legal motor fuel for sale and distribution. Raw vegetable oil cannot meet biodiesel fuel specifications, it is not registered with the EPA, and it is not a legal motor fuel.

Q. Is biodiesel used as a pure fuel or is it blended with petroleum diesel?

A. Biodiesel can be used as a pure fuel or blended with petroleum in any percentage. B20 (a blend of 20 percent by volume biodiesel with 80 percent by volume petroleum diesel) has demonstrated significant environmental benefits with a minimum increase in cost for fleet operations and other consumers.

Q. How much biodiesel has been sold in South Carolina?

A. Since 2004, South Carolina has sold over 1.7 million gallons of biodiesel. With incentives in H.3649, that number is expected to increase to 6 million gallons in FY08.

Q. How do biodiesel emissions compare to petroleum diesel?

A. Biodiesel is the only alternative fuel to have fully completed the health effects testing requirements of the Clean Air Act. The use of biodiesel in a conventional diesel engine results in substantial reduction or elimination of:
  • unburned hydrocarbons
  • carbon monoxide
  • particulate matter
  • sulfur oxides and sulfates
Q. Does biodiesel cost more than other alternative fuels? (Answer pertinent to the B5 Requirement).

A. When reviewing the high costs associated with other alternative fuel systems, many fleet managers have determined biodiesel is their least-cost-strategy to comply with state and federal regulations. Use of biodiesel does not require major engine modifications. That means operators keep their fleets, their spare parts inventories, their refueling stations and their skilled mechanics. The only thing that changes is air quality.

Q. Does biodiesel require special storage facilities or distribution?

A. In general, the standard storage and handling procedures used for petroleum diesel can be used for biodiesel. The fuel should be stored in a clean, dry, dark environment. Acceptable storage tank materials include aluminum, steel, fluorinated polyethylene, fluorinated polypropylene and teflon. Copper, brass, lead, tin, and zinc should be avoided. Minimal cost is required to convert a conventional diesel tank to use small percentages of biodiesel.

Q. Can biodiesel be used in existing diesel engines?

A. Biodiesel can be operated in any diesel engine with little or no modification to the engine or the fuel system. Biodiesel has a solvent effect that may release deposits accumulated on tank walls and pipes from previous diesel fuel storage. The release of deposits may clog filters initially and precautions should be taken.

Q. Is biodiesel currently available in South Carolina?

A. Currently there are over 40 locations in South Carolina that offer biodiesel and with this legislation predict an additional 20 - 60 retailers will offer biodiesel.

Q. What are some of the federal tax incentives currently available?

A. There are several federal tax incentives currently available, including:
  • Section 1344 of the Energy Policy Act of 2005 - extended the tax credit for biodiesel producers through 2008.
    • $1.00 per gallon of agri-biodiesel
    • $0.50 per gallon of waste-grease biodiesel

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