APEC Biofuels Task Force: Initial Findings and Next Steps Forward
A Symposium on Biofuels: Measurements and Standards to Facilitate the Transition to a Global Commodity
U.S. National Institute of Standards and Technology (NIST) and Brazilian National Institute of Metrology, Standardization and Industrial Quality (INMETRO) June 28, 2007 Capital Hilton, Washington, DC Presented by Jeff Skeer Office of Policy and International Affairs, U.S. Department of Energy
APEC Biofuels Context
The 21 APEC economies account for roughly half the world’s energy use and environmental emissions. Indonesia and Malaysia have major biodiesel potential with planned expansion of palm and jatropha plantations. Substantial potential for both biodiesel and ethanol in places like Thailand and Vietnam. Lots of land in Australia and China as well. And of course the U.S. has overtaken Brazil as the world’s leading producer of ethanol.
APEC Biofuels Task Force Was Set Up after APEC Energy Ministers in 2005:
”agreed that effective responses to high and increasingly volatile oil prices require a broad range of supply and demand-side measures…including vehicle fuel efficiency and alternative transport fuels” directed APEC’s Energy Working Group to “develop practical measures to enhance cooperation supporting the development of alternative transport fuels, including the establishment of a Biofuels Task Force.”
APEC Biofuels Task Force Has Developed Consensus Messages on
Biofuel Economics (cost of ethanol vs. petrol and biodiesel vs. diesel) Biofuel Trade Opportunities (created by production cost differentials Biofuel Infrastructure (cost and time to build biofuel filling station network) Fuel-Flexible Vehicles (practical path of uptake into the automobile market) Biofuel Resources (current and potential availability of biofuel feedstocks)
Darwin Declaration by Eighth APEC Energy Ministers Meeting, Australia
“We welcomed the report of the APEC Biofuels Task Force. Among its key findings are that biofuels from several crops are costcompetitive at current oil prices, that biofuels can lower greenhouse gas emissions and that biofuels can displace a sizeable share of oil use over time.” “We encourage intensified efforts to develop and deploy techniques for the cost-effective use of non-food feedstocks, such as farm and forest residues and grasses, which hold the greatest potential for expanded biofuels production and greenhouse gas reductions.”
Strategic Interest to U.S. of Biofuels Development in the Asia Pacific Region
More oil available for export from region (Malaysia and perhaps Indonesia again) Allies can start to diversify transport sectors away from reliance on oil, reducing dependency on Middle East (Examples: Japan, Korea, Chinese Taipei) Very substantial resources are being devoted to biofuels development, with a very real economic and strategic potential at today’s oil prices.
Biodiesel from Palm in Malaysia
In Malaysia, biodiesel from palm oil can be produced for about US$0.38 per liter: 26 cents in feedstock cost, 6 cents in capital plant cost, and 6 cents for labor and O&M, with a <0.5 cent credit for glycerine co-product. Competes with $42/barrel crude. Some 16.3 billion liters or 13.9 million tons of biodiesel potential could displace 70% of Malaysia’s 2002 petroleum demand or 27% of its oil demand projected for 2030.
Biodiesel from Jatropha in Indonesia
Indonesia can produce biodiesel from jatropha for US$0.44 to US$0.48 per liter: 37 cents for feedstock 8 cents for capital plant cost assuming 10% cost of capital,10-year plant life (or 4 cents assuming a 5% capital cost and 20-year plant life for mature plants) 3 cents in labor and operating costs No credits for byproducts Competes with crude at $52-$58 per barrel Biodiesel from palm oil 39-41 cents/liter, competitive with crude at $44-$47/barrel.
Asian biodiesel more costly in longrun than lignocellulosic ethanol . . .
A U.S. study indicates the cost of ethanol from corn stover in an nth of a kind lignocellulosic production plant could decline to about $0.24 per liter
9 cents feedstock cost at $30 per ton 9 cents capital plant cost assuming 10% cost of cpaital and 20 year lifetime 9 cents O&M and labor costs 3 cents credit for electricity co-product
This would compete with $30/barrel crude. But technology will take a while to arrive.
But cheaper than ethanol from corn in U.S. at current corn prices
Ethanol can be produced from corn for about $0.37 per liter, including
32 cents feedstock cost at $132 per ton 3 cents capital plant costs assuming 5% cost of capital and 20-year lifetime 12 cents O&M and labor costs 10 cent credit for Dried Distillers Grains and Solubles (DDGC) as co-product
Can compete with crude at $68 per barrel without subsidy – close to Brent today.
And perhaps competitive even with ethanol from sugarcane.
Various studies indicate that Brazil (and other Caribbean Basin countries) can produce ethanol from sugarcane for $0.20 - $0.30 per liter. This would make ethanol from sugarcane competitive with gasoline at crude prices of $28-$50 per barrel. Compare biodiesel from palm at $42 to $47 in Malaysia and Indonesia.
So Biofuels Task Force will now focus on resource assessment and standards. Review of current biofuel resource assessments and resource assessment capabilities (2007-08). Study of biofuel resource potential on marginal lands in APEC (2008-09). Evaluation of elasticity of biomass supply with respect to price (2008-09). Guidelines for development of biodiesel standards (2007-08).
Notable Points on APEC Biodiesel
Biodiesel from palm and jatropha in APEC are much more economical and have much greater resource potential than “traditional” biodiesel from crops like soybeans and rapeseed in the US and Europe. Since technical characteristics of biodiesel from palm are far from ideal, especially in cold weather, performance-based standards (allowing palm blends) are essential if trade is to evolve: prescriptive standards (prohibiting biodiesel with palm characteristics) would kill trade.
2007 APEC Project on Guidelines for Development of Biodiesel Standards
By establishing guidelines for development of biodiesel standards in the APEC region, the project aims to enhance the potential for biodiesel trade among APEC member economies. Project is being led by Thailand while Australia, Chinese Taipei, New Zealand and US co-sponsor. Project was developed through APEC Expert Group on New and Renewable Energy Technologies, in cooperation with the APEC Biofuels Task Force.
Introductory Points on Asian Biodiesel
The quality of biodiesel produced depends on the natural characteristics of feedstocks, which include a variety of animal fats and vegetable oils. EN 14214:2003 and ASTM D 6751:2003 are the standards currently used. The feedstocks used in the EU and US are different from those used in much of the APEC region, so standards need to take them into account.
Fatty acids in Thailand Biodiesel
BDF from Fatty acid Crude palm oi l 0.35 0.92 44.11 4.36 0.09 49.83 38.97 11.21 50.18 Crude Coconut oil 7.42 5.78 49.75 18.75 8.60 2.65 0.18 93.13 5.53 1.26 0.07 6.86 Jatropha oil 14.85 7.43 0.08 22.36 47.65 29.80 0.19 77.64 Palm stearin 0.25 1.27 59.19 4.43 0.31 65.45 0.08 28.61 5.86 34.55 Palm Olein 0.37 0.91 38.53 0.08 0.13 40.02 58.13 1.78 0.07 59.98 Soybean oil 0.1 0.2 10.7 3.9 Other = 0.2 15.1 0.3 22.8 50.8 Other = 6.8 80.7 Sunflower oil 0.1 6.0 4.0 Other = 1.1 11.2 <1.0 16.5 72.4 Other = 0.6 90.5
Caproic acid, C8:0 Capric acid, C10:0 Lauric acid, C12:0 Myristic acid, C14:0 Palmitic acid, C16:0 Stearic acid, C18:0 Arachidic acid, C20:0 Sum of Saturated FA Palmitoleic acid, C16:1 Oleic acid, C18:1 Linoleic acid, C18:2 Linolenic acid, C18:3 Sum of Unsaturated FA
Biodiesel Standards in Thailand - FAME
Item 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Fuel properties Methyl Ester Density at 15° C Viscosity at 40°C Flash Point Sulphur Carbon Residue, on 10% distillation residue Cetane Number Sulfated Ash Water Total Contaminate Copper Strip Corrosion Oxidation Stability at 110°C hours % wt. % wt. % wt. Unit % wt. kg/m3 CSt °C % wt. % wt. Standard limit min min max min max min max max min max max max max min 96.5 860 900 3.5 5.0 120 0.0010 0.30 51 0.02 0.050 0.0024 No. 1 6
Biodiesel Standards in Thailand - FAME
Item 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. Fuel properties Acid Value Iodine Value Linolenic Acid Methyl Ester Methanol Monoglyceride Diglyceride Triglyceride Free glycerin Total glycerin Group I metals (Na+K) Group II metals (Ca+Mg) 23. 24. Phosphorus Additive Unit mg KOH/g g Iodine/100 g % wt. % wt. % wt. % wt. % wt. % wt. % wt. mg/kg mg/kg % wt. Standard limit max max max max max max max max max max max max 0.50 120 12.0 0.20 0.80 0.20 0.20 0.02 0.25 5.0 5.0 0.0010
Approved by DG of DOEB
APEC Biofuel Standards – Work Plan
Phase 1: Review the current biodiesel standards applied in both APEC and non-APEC economies. Review potential feedstocks and evaluate how their natural characteristics may affect the quality of biodiesel. Review applicability of lessons learned on effects of biodiesel on diesel engines and vehicles including their emissions. Review the opportunities, gaps, barriers and lessons learned from using biodiesel as fuels with engine and automobile manufacturers in order to adopt biodiesel specification and its blends. Investigate the additives and antioxidizers necessary for biodiesel. Organize the first workshop in Thailand 3 month
Phase 2:
7 month
APEC Biofuel Standards – Work Plan B
Phase 3: Phase 4: Integrate and synthesize the information from phases 1 and 2. Organize the second workshop in Chinese Taipei with representatives from energy sector among APEC economies. The recommendation and the lessons learned from stakeholders will be shared for future practice. Integrate and synthesize the information for final report. Develop the draft final report on the guidelines 10 months 13 months
Phase 5: Phase 6:
17 months 20 months
Contact Information for Project Leader
Ms. Peesamai Jenvanitpanjakul Thailand Institute of Scientific and Technological Research (TISTR) 35 M 3, Klong 5, Klong Luang, Patumthani 12120, Thailand Phone: +66-2577-9198 Fax: +66-2577-9197 E-mail: peesamai@tistr.or.th, peesamai@gmail.com
Thanks for listening!