Energy 101: Biodiesel

What is biodiesel?

Biodiesel is produced by combining vegetable oil (or animal fat), alcohol, and a catalyst through transesterification.

Is vegetable oil the same as biodiesel?

Biodiesel is not the same as vegetable oil. Vegetable oil must undergo a chemical reaction with alcohol and a catalyst to become biodiesel.

What does B2, B5, B20 or B100 mean?

Biodiesel is often blended with petroleum diesel (e.g., B5, B20). Pure biodiesel is referred to as B100.

How much energy does biodiesel contain?

Biodiesel contains 118,296 BTUs per gallon, about 8% less than petroleum diesel.

Are engine modifications required to use biodiesel?

Older diesel engines (pre-1993) may require synthetic fuel lines if using high blends of biodiesel (B20 or above). Most newer vehicles do not need modifications.

Will biodiesel damage my engine?

Biodiesel meeting ASTM D6751 standards is unlikely to damage engines. Quality control is crucial for biodiesel produced for personal use.

Will using biodiesel void my engine manufacturer’s warranty?

Engine warranties typically cover defects in materials and workmanship, not fuel-related damage. Check manufacturer recommendations for biodiesel use.

Where can I buy biodiesel?

Biodiesel is not widely available at retail fuel stations. The National Biodiesel Board lists retailers.

Will biodiesel work in the winter?

Biodiesel has a higher cloud and pour point than petroleum diesel, making it more likely to gel in winter. Performance varies by feedstock.

Do fuel taxes apply to biodiesel?

Biodiesel is taxed like petroleum diesel. Producers must register with the state and pay applicable taxes.

Is biodiesel cheaper than diesel?

Commercial biodiesel is generally more expensive than diesel. Small-scale producers with access to low-cost feedstock can produce biodiesel more cheaply.

Biodiesel is generally environmentally friendly, but benefits vary by feedstock and measurement methods.

The amount of oil produced per acre depends on crop yield, oil content of the seed, and processing efficiency. For example, soybeans contain about 18% oil, while canola and sunflower have higher oil content levels, typically ranging from 30% to 42%. Mechanical extrusion can recover 65% to 80% of the oil, while solvent extraction can recover over 95%. To estimate the recoverable oil per acre of an oilseed crop follow this formula:

Yield (lbs.) x Oil Content (%) x Recovery Rate (%) = lbs. of oil per acre

Example: 1 acre of camelina yielding 698 pounds with 35% oil content processed with mechanical extraction technology with a 75% recovery rate would result in 183 pounds of oil (698 x 0.35 x 0.75 = 183). A gallon of vegetable oil weighs approximately 7.5 pounds (this varies depending on the type of vegetable oil). By dividing 183 by 7.5 we can estimate that 698 pounds of camelina seed will produce approximately 24 gallons of oil.

Oilseed Processing Methods

1. Mechanical Extrusion: This process involves mechanically pressing the seed to separate the oil from the meal. It typically recovers 65% to 80% of the oil.
2. Solvent Extraction: Often used in conjunction with mechanical extrusion, this process applies a solvent to pre-pressed material to extract oil, achieving over 95% recovery.

Mechanical Processing Technology

Oilseed processing equipment with a capacity of less than 50 tons per day typically uses mechanical extraction. This involves two main elements:

1. Seed Preparation: Methods vary depending on seed characteristics. For example, canola may only need cleaning, while other seeds may require de-hulling, cracking, rolling, or flaking.
2. Oil Removal: In a screw press operation, seed is fed into the press, which uses pressure to extract oil. Preheating the seed can increase oil recovery rates.

Capital Costs

When comparing offers from equipment retailers, it's important to consider what accessories are included with the basic processing equipment. Basic equipment for oilseed processing includes:

• Seed Preparation Equipment
• Mechanical Extractor
• Power Source for the Extractor
• Seed Storage Bin(s)
• Meal Storage Bin(s)
• Pumps, Filters, and Plumbing for Oil Storage
• Oil Storage Tank(s)

The required seed preparation equipment varies depending on the oilseed. For example, canola requires minimal preparation, while sunflower may need additional equipment to remove hulls. Equipment manufacturers and retailers can help determine the necessary equipment for specific oilseeds.

One of the largest capital expenditures for small-scale oilseed processors is the mechanical extraction press, which may be sold with or without a power source. Small-scale equipment often excludes storage bins and tanks, but some retailers offer complete systems. Installation, delivery, and setup costs should also be considered, as shipping can be substantial due to the size and weight of the equipment. Purchasing bins and tanks locally may reduce shipping costs. Additionally, oil storage and filtration require pipes, valves, tanks, pumps, and filters.

Most oilseed processing equipment is electrically powered, and installation may require electrical system modifications. These costs are sometimes overlooked but are important considerations.

Operating Costs

Operating costs vary widely among different sizes and brands of processing equipment. Labor costs are a significant factor. Some presses operate without direct supervision, while others require monitoring, which can increase labor costs. For example, a 2-ton press requires the same labor as a 5-ton press, making labor costs per ton higher for the smaller press.

Processor Capacity

Mechanical processors have daily capacities ranging from less than one ton to over 50 tons. The capacity and hours of operation determine the amount of seed processed. Commercial plants often operate 24 hours a day for over 300 days a year, while smaller processors may operate less frequently. It's important to evaluate the correct processing capacity for your operation.

Availability of Feed Stock

Small-scale processors may produce their feed stock, while larger facilities may need to purchase it. Estimating on-farm production and commercial availability of oilseeds in the region is crucial.

Product Markets

Oilseed processing produces oil and meal. Oilseed meal is typically used as livestock feed, while the oil has various uses, including human consumption, biodiesel, bio-lubricants, and cosmetics. Meal comprises over 60% of the processed seed, so identifying markets for the meal is important to avoid storage and disposal issues. Establishing local markets reduces transportation costs, and additional storage may be required if local markets are seasonal.

Oil has numerous potential uses. Human consumption markets offer high prices but for limited quantities, while the bio-fuel market demands higher quantities at lower prices. If the oil is for human consumption, processing equipment must meet Maryland health and safety standards. For industrial uses, such as bio-energy or bio-lubricants, these standards are not required.

For more information on oilseed processing in Maryland, consult local resources such as the Maryland Department of Agriculture and the University of Maryland Extension.

Oilseed processing produces oil and meal. Oilseed meal is typically used as livestock feed, while the oil has various uses, including human consumption, biodiesel, bio-lubricants, and cosmetics. Meal comprises over 60% of the processed seed, so identifying markets for the meal is important to avoid storage and disposal issues. Establishing local markets reduces transportation costs, and additional storage may be required if local markets are seasonal.

Oil has numerous potential uses. Human consumption markets offer high prices but for limited quantities, while the bio-fuel market demands higher quantities at lower prices. If the oil is for human consumption, processing equipment must meet Maryland health and safety standards. For industrial uses, such as bio-energy or bio-lubricants, these standards are not required.

For more information on oilseed processing in Maryland, consult local resources such as the Maryland Department of Agriculture and the University of Maryland Extension.

Biodiesel is produced through a chemical reaction between vegetable oil (or animal fat), alcohol, and a catalyst, resulting in biodiesel and glycerin as a byproduct. The process, known as transesterification, involves the following common proportions:

• Inputs:
  • 100 units of vegetable oil;
  • 10 to 15 units of alcohol;
  • 0.5 to 2 units of catalyst

• Outputs:
  • 100 units of biodiesel;
  • 10 to 15 units of glycerin

These proportions may be adjusted based on the chemical composition of the oils and fats, the type and purity of the alcohol, and the technology used. For more information on biodiesel production in Maryland, consult resources from the Maryland Energy Administration and the Maryland Department of the Environment [1,2,3].

Biodiesel production follows the same basic process regardless of the quantity produced, though differences in inputs, equipment, and desired quality attributes will determine the specific process used. While biodiesel production is relatively simple, it's important not to overlook critical process details.

Step 1: Pretreatment. The process begins with the pretreatment of virgin (new) oil or recycled oil. Recycled oil may need to be filtered to remove particles and dried to reduce water content, while virgin oil needs to be degummed to remove impurities. A titration test is then performed to adjust the amount of catalyst required for transesterification.

Step 2: Mixing. Next, a catalyst is mixed with alcohol. If sodium hydroxide and methanol are used, the mixture is called sodium methoxide. This mixture is combined with oil to facilitate transesterification. Heating the mixture can shorten processing time and increase the reaction rate.

Step 3: Separation. After transesterification, glycerin and biodiesel must be separated. Glycerin, being heavier, settles at the bottom and can be separated from biodiesel. Larger production units may use a centrifuge for more effective separation. Both glycerin and biodiesel are contaminated with catalyst, alcohol, and unreacted oil, which need to be removed.

Step 4: Purification. The final step involves removing contaminants. Excess alcohol is removed by heating, and commercial operations typically condense and reuse it. Contaminants can be removed by washing the biodiesel with water, which collects impurities as it descends through the fuel. Finally, biodiesel is dried and filtered.

Producers of biodiesel must decide what types of oil, catalyst, and alcohol they will use in their operation.

Oil Selection

The quality of oil affects the production process. Recycled oil needs additional steps like filtering and measuring free fatty acid and water content. Virgin oils, which are more consistent and have lower contamination levels, are ideal but more expensive. Reliable sources of oil, whether virgin or recycled, are crucial. Recycled oils can be obtained from local restaurants and food processors, often at low cost.

Alcohol Selection

Price and availability are key factors in choosing alcohol. Methanol is often cheaper and more readily available than ethanol and is used in most biodiesel operations. Methanol can be obtained from bulk fuel distributors and racing fuel distributors. Safety concerns must be addressed when handling methanol or ethanol, as both are highly flammable.

Catalyst Selection

A catalyst is required to facilitate the reaction between oil and alcohol. Common catalysts include sodium hydroxide (lye) and potassium hydroxide. Availability, compatibility with processing equipment, and price are the main factors in catalyst selection.

For more information on biodiesel production in Maryland, consult resources from the Maryland Energy Administration and the Maryland Department of the Environment[1,2,3].

Small-scale biodiesel production equipment can be purchased on a "ready-to-use" basis from various manufacturers. Key attributes to consider include price, capacity, and functionality. When comparing processors, consider the following:

• How many gallons can be processed per batch?
• How long does each batch take to process?
• Is the system capable of heating the oil and/or the alcohol-catalyst mixture?
• Does the system include methanol recovery equipment?
• Does the system have the capability to wash and dry the biodiesel?
• Does the system require extra plumbing, fittings, or pumps?
• Does the manufacturer provide technical support?
• Does the system require a specific catalyst?
• How much does the system cost?
• Does the quoted price include shipping costs?

The transesterification process produces two products: biodiesel and glycerin.

Biodiesel: The quality of biodiesel depends on the inputs and processing techniques used. The American Society for Testing and Materials (ASTM) has developed quality standards for biodiesel. However, the cost of testing a batch for ASTM standards may exceed the value of the fuel produced, limiting small-scale producers to personal use. Ensuring fuel quality involves proper filtering, accurate catalyst measurement, and fuel washing procedures.

Glycerin: Glycerin produced during the biodiesel process is crude and unrefined. While there are markets for refined glycerin, small producers often cannot access these due to refining costs. Crude glycerin typically contains unreacted oil, catalyst, methanol, and some biodiesel. Disposal options for crude glycerin include using it as fuel oil, composting, or as a dust suppressant or for soap making. Adequate planning is required for successful composting due to the large volumes produced.

Biodiesel production is influenced by regulatory policies and tax and subsidy programs. Local, state, and federal agencies may require permits, licenses, and registration for various aspects of the production process. Obtaining these permits and licenses is essential for successful production. Additionally, state and federal agencies tax biodiesel but also offer incentives for its production.

For more information on biodiesel production in Maryland, consult resources from the Maryland Energy Administration and the Maryland Department of the Environment [1][2][3].

The economics of an oilseed processing operation are influenced by oilseed prices, vegetable oil revenues, oilseed meal revenues, and labor costs.Costs for an oilseed processing facility can be grouped into three general areas:

1. Seed Costs

Seed costs typically account for 80-90% of the total operating cost. Oilseed processors have little control over commodity prices. They can use futures and options contracts to manage price risk or contract directly with growers to ensure a local supply and fixed price. Historical oilseed prices can be obtained from the USDA National Agricultural Statistics Service[1](https://bing.com/search?q=biodiesel+production+revenues+Maryland).

2. Labor Costs

Labor costs account for 5-10% of total costs. Labor costs for small to medium-scale oilseed processors involve two key issues:

• One employee can operate presses of varying capacities with minimal change in labor requirements.
• The cost of labor influences the financial attractiveness of larger capacity presses.

3. Other Costs

Other costs include equipment, maintenance, and minor costs, often account for less than 5% of total costs. Equipment and operating costs do not comprise a large portion of total costs but still need to be managed. Capital equipment purchases are a significant upfront expense. It's important to consider labor costs and oil recovery efficiency when purchasing equipment.

Oilseed processing produces two marketable products: oil and meal. Both are important revenue streams. For each 100 lbs. of oilseed feedstock (35% oil content), approximately 70-75 lbs. of meal and 20-25 lbs. of oil are produced. Recent prices for oilseed meal have ranged from $200 to $350 per metric ton, and oil prices have ranged from $3.75 to $6.00 per gallon[2](https://advancedbiofuelsusa.info/contact-us/).

Biodiesel Economics

Potential biodiesel producers should understand the economics of biodiesel, dominated by the cost of vegetable oil and biodiesel revenue.

Input & Operations Costs

• Vegetable Oil: Accounts for 65-90% of total costs.
• Labor: Accounts for 3-10% of total costs.
• Methanol: Accounts for 12-18% of total costs, with larger operations potentially reducing this to 7-12% through methanol recovery systems.
• Equipment: Varies substantially but rarely exceeds 15% of total costs.
• Other Costs: Including catalyst, electricity, and maintenance, are commonly less than 5-8% of total costs.

Revenues

Sales of biodiesel remain the main revenue stream in Maryland, with additional revenue generated from the sale of glycerin. In recent years, the average retail price per gallon premium for biodiesel over petroleum diesel in Maryland has varied. For instance, in some states within the Mid-Atlantic region, including Maryland, B20 biodiesel has retailed for $0.50 to $1.01 lower than diesel fuel [1]. This trend reflects the growing competitiveness and adoption of biodiesel as a cost-effective and environmentally friendly alternative to traditional diesel.

Potential oilseed processors or biodiesel producers should develop a business plan and financial projections. Software developed at the University of Maryland Extension can help create individualized financial projections, allowing users to enter specific costs and revenues to generate cash flow and financial information [4].

For more information on biodiesel production in Maryland, consult resources from the Maryland Energy Administration and the Maryland Department of the Environment [5,6,7].