Biodiesel Presentation - MED/MMCD Fall 2006 Seminar & Annual General Meeting

Presented by Ken Fryer City of Coquitlam November 24, 2006

Key Biodiesel Questions

What is biodiesel? Whats it made from? What does it look, feel and smell like? Benefits from using biodiesel?

Who is using it now, who makes it, where can you buy it?
How do you use it, which engines, fuel management, operational issues, cold weather issues, warranties, etc
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Biodiesel Not A New Fuel

1895
Rudolf Diesel designed the "diesel-cycle" engine

First fuel?
Biodiesel - Peanut oil

Supplanted by Petro-diesel
Due to availability, distribution, consistent quality, pricing
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Biodiesel Why Now?

Three Powerful Reasons
Emission Reductions $ Pricing Diversity/Security of Supply

Biodiesel Why Now?

#1 Emission Reductions

Price, cpl

10

20

30

40

50

60

70

80

90

Canola Oil

#2 Price Competitive

Animal Fat Diesel Fuel

Ja n9 M 8 ay -9 Se 8 p9 Ja 8 n9 M 9 ay -9 Se 9 p9 Ja 9 n0 M 0 ay -0 Se 0 p0 Ja 0 n0 M 1 ay -0 Se 1 p0 Ja 1 n0 M 2 ay -0 Se 2 p0 Ja 2 n0 M 3 ay -0 Se 3 p0 Ja 3 n0 M 4 ay -0 Se 4 p04

#3 Supply Deficit
Energy Security
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Millions of Barrels per Day
Highway Carbon Emissions (million metric tons) 1990 2000 2010 2020 325 384 455 507

Domestic Oil Production

10 8 6 4 2 0 1970 1980 1990 2000

Heavy Trucks
Passenger Vehicles

GAP

Light Trucks

Automobiles

2010

2020

Source: Transportation Energy Data Book: Edition 19, DOE/ORNL-6958, September 1999, and EIA Annual Energy Outlook 2000, DOE/EIA0383(2000), December 1999 4

What is Biodiesel?
Biodiesel: An low-emissions, high lubricating alternative diesel fuel produced from renewable sources, Non-toxic, Biodegradable Can be combined at any level with petroleum diesel to fuel diesel engines. Biodiesel is not: Raw or refined vegetable oils, or recycled greases that have not undergone chemical processing.

Biodiesel Feedstocks
Vegetable oils
Soy, canola

Other oils
Palm, coconut, fish

Animal fats
beef tallow, sheep tallow, pork lard, poultry fats

Recycled waste grease

yellow grease (used cooking oil) trap greases

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Biodiesel Manufacturing
Triglyceride: Fat or Oil molecule

Biodiesel molecules

Glycerin molecule 10% Oxygen by Wt.

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Biodiesel Users Canada

Toronto Hydro City of Brampton Kingston Transit City of Victoria BC Transit (Victoria) City of Calgary Saskatoon Transit Ont. Private Fleets BC Lower Mainland Municipalities BC Lower Mainland Private Fleets- Van Port Authority, Rempel Concrete

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BC Tax Information
"The biodiesel portion of a blend of biodiesel and diesel

is exempt from tax if the biodiesel portion is not less than 5% or more than 50% of the volume of the blend
Source: Government of British Columbia, Ministry of Provincial Revenue

IN BC LOWER MAINLAND, THE MOTOR FUEL TAX IS 21 CENTS/LITRE

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BC Distribution
Distribution
Available now at 2 retail stations (Burnaby), (Delta) Vancouver racks for regional distribution BC Municipal Buying Group (BCPPBG)

Delivery Options
B100 delivered Bulk and Tote (1000L) B5 - B50 blends delivered (pre-blended)

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Where to Buy
Suppliers in BC
4 Refuel (Mini-Tankers) Canada Ltd. Agri-Green Biodiesel Inc. Canadian Bioenergy Corporation Cascadia Biofuels Inc. Ecofuels Canada Inc. ProQuip Onsite Refuelling Ltd. Recycling Alternatives West Coast Biodiesel Inc.
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Biodiesel Before you Buy

Quality Control
Supplier must deliver ASTM D6751 Standard fuel Quality control (BQ9000) Producer/Distributor Supplier/Distributor to provide:
Guarantee in writing that fuel meets ASTM Certificate of Analysis for each batch delivered

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BC Biodiesel Pilot Project

BC Municipalities Group Pilot Project (2004)
Richmond, North Van, Vancouver, Delta, Whistler, Burnaby 6 Municipalities used a B20 blend (12,000 L B100) Used in a number of conventional diesel engines
Cat, Cummins, Detroit, Kubota, Ford, International, GM, Peugeot, John Deere, New Holland

Blended and distributed the biodiesel on site Conducted extensive emission testing Funding FCM, GVRD and individual Cities.

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BC Municipalities Pilot
Project Goals
Would biodiesel really work in BC environment?
Confirm EPA reductions in real life operations Use a variety of equipment types & applications

Share information and results

First hand knowledge of how it would function Educate staff

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Methodology & Results

Talked to other users Worked with fuel suppliers & reviewed delivery methods Tested emissions & performance (Westport Innovations/Finning) Pilot was very successful BC Municipal pooled purchasing group has option to purchase of up to 2 million L of B100 delivered as blended fuel Largest single biodiesel supply contract in Canada
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Project Learnings - Overall

VEHICLE MODIFICATIONS: None PERFORMANCE: Minimal impact on torque, power and fuel economy LUBRICITY: Increased lubricity can improve vehicle life IGNITION: Higher Cetane values improves ignition quality NOISE: Vehicle runs more quietly EXHAUST: Tailpipe emissions are cleaner and smell better SEALS & GASKETS: May need upgrade if >B20 & <1994 FILTERS: Change filter 2X for transition period

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Warranties
B5 is acceptable to all engine and fuel injector OEMs
OEM Warranty Statements at www.BCBiofleet.ca B20 has not triggered warranty issues Engine Manufacturers Association- B20 Talk to experienced users

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Winter Operations
Biodiesel blending must be carefully managed at cold temps

Fuel Handling
Treat as a fuel (WHMIS, safety, etc) Cleaning / solvent effect (filters, tanks, hoses) Storage - Moisture - the enemy Desiccant filters on tank vents Long Term Storage - 9 months max, or use biocides with monthly examination

Tank Preparation
Properly cleaned, tested and vents are capped.
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Pumps
Biodiesel improves lubricity
Should increase service life of sensitive injection pump models Blends of B20 or greater not recommended for 1994 and older injection pumps due to deterioration of natural rubber components

Fuel Filters
- Use OEM recommended filters with correct micron rating - Change at OEM recommended intervals after initial cleanout period - Only use pre-filtered fuel in vehicles - More frequent changes recommended in first 100 hours of operation

Hoses

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Purchasing
Purchasing Considerations
Establish purchase criteria/educate staff
Further education (understand cost/benefits) Determine/manage logistics (transport, blending) Term and products (B5 B20 ?) Agreed upon price change mechanism (eg. indexing) Cost neutral target: biodiesel + ULS diesel
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Biodiesel Action Plan

Be Clear - What do you want to achieve?
Environmental benefits GHG emissions reduction Public image

Select Biodiesel Blend - B2, B5, B20?

All or some part of your fleet? Timeline?

Assess Suppliers
Will current fuel supplier provide a biodiesel blend? Get BC Biodiesel suppliers list.- BQ9000 certified.

Assess Costs
Per Litre, fuel economy, other capital investments.

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Biodiesel Action Plan

Confirm Technical Specs

Ensure biodiesel meets ASTM D6751 Standard

Obtain biodiesel supplier fuel quality guarantees Cross-check engine warranty issues

Plan Fleet Use

Are any vehicles using a biodiesel blend travelling to areas where cold temperatures will be a factor?
Refuelling outside biodiesel supply area

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Biodiesel Action Plan

Decide on Operational Issues
Where will biodiesel be stored? (B5 treat just like diesel; other blends depend on CP of biodiesel and diesel) How will biodiesel be blended with diesel? Temperatures? Preparation of tanks and vehicles? Filter replacement scheduling? Staff training and education? Performance and maintenance Change or expand biodiesel program as needed

Monitor Use

Review Overall Program

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Biodiesel Calculator
Purpose Calculate emissions reductions from using biodiesel for a particular vehicle
Simple to use Developed in consultation with fleet managers, emissions specialists, industry Available at www.bcbiofleet.ca

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Green Fleet Accreditation

Fleet Rating System to assist progressive fleets that want to increase fuel efficiency, reduce emissions, implement Green Standards, incorporate new technologies and use alternative fuels

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THANK YOU FOR YOUR TIME.

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