Marine Biodiesel Use in the Puget Sound

Nikola Davidson

BC Marine Biodiesel Symposium

June 20, 2008

We represent

NW biodiesel and ethanol businesses

Idaho, Montana, Oregon, and Washington

www.nwbiofuels.org

• Overview

• Experiences

• Vessels

• Fuel docks

• Challenges

• Opportunities

• Resources

Marine Biodiesel Use in the Puget Sound

Overview – Why are Marine Vessels Using Biodiesel?

– Corporate “green” values– Government commitment to

air quality– Market differentiation– Improved emissions/reduced

exhaust– Concerns with water

quality/marine life– Superior fuel/engine

performance

Overview – Use and BlendsRecreational

Over 200 B99 boaters in San Francisco Bay

Smaller Commercial VesselsWhale watchingCharter boatsGovernment

Research vesselsSpill clean-up vessels

BlendsB5, B20, B99

Marine Biodiesel Use in the Puget Sound

• Vessels– North Shore Charters– Whale watching– Guemes Ferry

• Fuel Docks– Shilshole – Elliott Bay– Deer Harbor– Friday Harbor

North Shore Charters/Mead Biofuels

• Brought biodiesel to San Juan Island 6-7 years ago

• Running B99 for 2 years• GM Optimizer, 6.5 Turbo

Diesel• No operational issues• Adding new boat

– Twin Cummins QSD 4.2– 320 horsepower– Will run on B99

Mead Biofuels customer• Volvo Penta 250 horsepower• Running 4 years on B99• No operational issues

Whale Watching – San Juans• Western Prince Whale & Wildlife Tours

– First whale watching vessel on San Juan to use biodiesel– Uses B20

• Mix of Volvo, Cummins, and John Deere engines

• Mix of B20 and B5– Deer Harbor Charters– San Juan Excursions

• Integral part of market branding

Guemes Island Ferry

• 124’ long, 91 gross tons, 100 passengers

• 2, 2005 Cummins KTA 19M3, turbo charged diesel engines

• Two sets of fuel filters – 20 micron Racor – Fleet Guard

• Cleaned fuel tanks and lines before switching

Guemes Island Ferry• Biodiesel supplied by Whole

Energy

• 2 fuel tanks per engine, 1500 gallons each (no on-site fuel storage)

• 2200 gallons delivered at a time

• Raise blend level every 6 weeks– B5– B10– B15– B20 (Nov. 12th)

Guemes Island Ferry• Motivation

– Exhaust problem (when went from 2 stroke to 4 stroke engine)

– “Crew choked out”– Soot complaints from

Anacortes marina– Passenger

interest/familiarity

• Hope to be a model for others

Shilshole Bay Marina• Selling B20 for 5 years• Sales doubled each year, peaked 2006

Shilshole Bay Marina•New dispenser pump, in-ground storage

•Filter to 10 microns

•Mix of recreational, government vessels

•Decrease in fuel sales across the board due to high prices

Elliott Bay Marina• Selling B99 for 5

years• Sales peaked in 2006

(2500 gallons)• Above-ground storage

(250 gallon tank)• Only sells in the

summer• Boaters self-blend• Not profitable, offer as

service• Deterrents

– Price– Warranty– Parts compatibility

Elliott Bay Marina

Deer Harbor Marina

Deer Harbor Marina• Only one diesel tank, one diesel pump

• Currently offers B99 to whale watching boats– 55 gallon drum with hand crank pump– Reluctant to offer to recreational boaters

• Offered B99 in 2002-2003, then B20 for 2 years• Stopped 6 months ago• Warranty concerns (especially Volvo)• Concerns with compatibility, filters• Misperceptions with sustainability• Lack of education

• Limited land, can’t add another tank

Friday Harbor Marina

• Only sell B99 to commercial accounts (2 whale watchers)– B99 in 55 gallon drums, pumped

into re-usable 5 gallon buckets– Self-mixed into B10-B20– Not profitable but provided as

service, “do the right thing”– Described as “pain in the butt”

• Recently stopped selling B20, low sales due to lack of education & price

Challenges to Marine Use in the Puget Sound

• Price• Lack of education

– Warranty concerns– Technical misperceptions– Sustainability

• Lack of support – dealers, OEMs• Lack of availability• Limited space at fuel docks• Current lack of profitability for fuel docks

• “Recommended/approved” vs. engine warranty coverage

• Manufacturer warranties do not cover fuel

• Only cover workmanship and materials

• If an engine experiences a failure unrelated to the biodiesel use, it must be covered by the warranty. U.S. federal law prohibits the voiding of a warranty because biodiesel was used – it has to be the cause of the failure.

• Volvo and Yanmar – B5

• Cummins and John Deere – supportive as long as meets ASTM spec

• Wide variation with dealerships

(Magnuson-Moss Warranty Act)

Marine Engine Warranties

EPA Dive Boat• Want to use biodiesel, no

local fill station

• Local Pacific Pride (B20) can’t take GSA card

• Volvo threatened to withdraw warranty if used more than 5%, worried about self-blending

• Looked at fuel delivery options, but concerns with fuel spill risk

Opportunities/Lessons Learned

• Education– Original Engine Manufacturers– Individual dealerships– Fuel dock personnel– Boating community

• Importance of experienced biodiesel supplier

• Continue with quality assurance programs

Resources• Nikola Davidson

206.389.8660nikola@nwbiofuels.org

• NW Biofuels Association (station locator and downloadable PDF on marine biodiesel)www.nwbiofuels.org

• Whole Energywww.whole-energy.com

• National Biodiesel Boardwww.biodiesel.org