Biodiesel A renewable fuel to meet todays and

Biodiesel A renewable fuel to meet todays and tomorrows energy needs in a clean and sustainable manner presentation to: American Seed Trade Association Chicago, Illinois December 7, 2005 presentation by: Richard Nelson Kansas State University/National Biodiesel Board This presentation is funded in part by the Cooperative State Research, Education and Extension Service, USDA Biodiesel General Definitions Biodiesel is a domestic, renewable fuel for diesel engines derived from fats and oils such as soybeans and animal fats. Biodiesel can be used in any concentration with petroleumbased diesel fuel in existing diesel engines with little or no modification. Biodiesel is not

raw vegetable oil! Biodiesel must be produced by a chemical process that removes glycerin from the oil. Biodiesel Petroleum diesel B100 B20 B10 B5 B2 0 50 100 Biodiesel blend, n. -- a blend of biodiesel fuel meeting ASTM D 6751 with petroleum-based diesel fuel designated BXX, where XX is the volume percent of

biodiesel. Petroleum (Liquid Fuel) Picture We currently import over 50% of our petroleum needs - 70% by 2025. Once roughly half the oil has been extracted, it becomes harder and more expensive to get at the remainder. The key date is not when the oil runs out, but when production peaks, meaning supplies decline. The peak may come by about 2020. Proved Oil Reserves 2003 Biodiesel Properties & Attributes B100 - Energy content of #1, 8% less than #2 High Cetane (avg. over 50) Sulfur free Cold flow - B2 the same as #2 petroleum diesel Energy Balance (3.24 to 1)

Biodegradable and NonToxic Emissions Reductions with Biodiesel Blends Emission Type B2 B100 B20 Total Unburned Hydrocarbons -67% -20% -2.2% Carbon Monoxide -48% -12% -1.3% Particulate Matter -47% -12% -1.3% When considering the combined benefit of all these reductions, Oxides of increase Nitrogen (NO

+ 2%*** X) the small in nitrogen oxides +10% (NOx) should not +0.2% overshadow the net environmental gain with biodiesel use in North Carolina. Biodiesel is a viable part of the overall effort to improve our air quality. B. Keith Overcash, PE, NC DE&NR, DAQ Biodiesel Production 100 lbs. of fat or oil + 10 lbs. methanol catalyst 100 lbs. biodiesel (B100) + 10 lbs. of glycerin 30,000,000 Soybeans (90-95% of current market), Waste Greases, Edible &

Inedible Tallow, Cottonseed, Sunflower, Canola/Rapeseed 25,000,000 20,000,000 15,000,000 B100 Fuel Survey Results 10,000,000 5,000,000 0 1999 2000 2001 2002

2003 2004 Distribution Outlets, June 2005 ASTM D 6751 Biodiesel Fuel Specification Fuel quality is of the utmost concern and importance to the biodiesel industry. ASTM D 6751 is the specification for biodiesel fuels irrespective of the feedstock source and/or processing method. Standard ensures safe operation in a compression ignition engine. ASTM International Specification D6751: Standard Specification for Biodiesel Fuel In 2002, ASTM International issued a standard specification for biodiesel fuel called D6751. This specification states that the only form of biodiesel that can be legally resold

for commercial operations must meet ASTM specifications. TABLE 1: Detailed Requirements for Biodiesel (B100) Property Test Method Limits Units Flash point (closed cup) Water and sediment Kinematic viscosity, 40C Sulfated ash Sulfur Copper strip corrosion Cetane number *Cloud point Carbon residue Acid number Free glycerin Total glycerin Phosphorus content Distillation temperature, atmospheric equiv. temp D 93

D 2709 D 445 D 874 D 5453 D 130 D 613 D 2500 D 4530 D 664 D 6584 D 6584 D 4951 D 1160 130.0 min 0.050 max 1.96.0 0.020 max 0.05 max No. 3 max 47 min Report to customer* 0.050 max 0.80 max 0.020 0.240 0.001 max

360 max C % volume mm2/s % mass % mass N/A N/A C % mass mg KOH/g % mass % mass % mass C Biodiesel & Original Equipment Manufacturers (OEMs) Many Engine Manufacturers Support Biodiesel Blends: John Deere Caterpillar Cummins Detroit Diesel International Testimonials for each of

these companies available on the NBB website - www.biodiesel.org B100 Must Meet ASTM D6751 !!! Most OEM HQs have B20 experience: Wont void warranty, but remember OEMs dont make fuel and therefore they wont warranty fuel. Problems caused by the fuel are the responsibility of the fuel supplier. Federal Biodiesel Tax Incentive American Jobs Creation Act 2004 (Biodiesel Tax Exemption) Federal Excise Tax Credit through 12/31/2008 1 per percent of agribiodiesel blended into diesel fuel Applies to first-use vegetable oils and animal fats per percent of other

biodiesel blended into diesel fuel Credit taken at the blender level Biodiesel: Looking Forward Current Potential: 1.7 Billion gal/year 5.5% of national on-hwy. Demand Near-Term Potential: (2015): 3.5 Billion 6.8% of national on-hwy. demand in 2015 Long-Term Potential: (2030): 10 Billion Educational Resources for Biodiesel BEN: Biodiesel Education Network Web-based resource specifically for petroleum marketers Partnership between NBB/PMAA www.pmaa.org www.biodiesel.org