“The latest on BIODIESEL”Peter Reimers, Archer Daniels Midland

Canola Council of Canada2004 Annual Convention

Capacities

Subsidies

Feed stocks

Glycerin

Basics

Synthesis of Fatty Acid Methyl Esters (FAME)

HC

H2C

H2C

O

O

O C

C

C

O

O

R

R''

O

R'+catalyst

H2C

HC OH

OH

H2C OH

+3 CH3OH

H3CO C

O

R

H3CO C

O

R'

H3CO C

O

R"

1 Triglyceride(vegetable Oil)

1 Glycerol3 Fatty Acid

Methyl Esters(Biodiesel)

3 Methanol

Basics

Which blend makes sense?

B 100: biodegradability

B 20: emission reduction

B 2: lubricity

..significant biodegradability at 100%…

Source: Chuck Peterson, U of IdahoSource: Chuck Peterson, U of Idaho

..significant biodegradability at 100%…

0

20

40

60

80

100 C

O2

evol

utio

n (%

)

0 5 10 15 20 25 30 Time (days)

REE

RME

SEE

SME

NR

NS

2-D

dex

Source: Chuck Peterson, U of Idaho

..significant biodegradability at 100%…

0

2

4

6

8

10

Su

bst

an

ce c

on

c.

(mg

/L)

0 0.5 1 1.5 2 Time (days)

REE

2-D

Source: Chuck Peterson, U of Idaho

..significant biodegradability at 100%…

0

20

40

60

80

100 C

O2

ev

olu

tio

n (

%)

0 5 10 15 20 25 30 Time (days)

REE

R80/D20

R50/D50

R20/D80

2-D

Source: Chuck Peterson, U of Idaho

..significant emission reduction at 20%…

Source: Chuck Peterson, U of Idaho

Comprehensive EPA Study

-80%

-60%

-40%

-20%

0%

20%

0% 20% 40% 60% 80% 100%

Biodiesel Blend

Ch

an

ge in

Em

issi

on

s

NOx PM CO HC

Source: National Biodiesel Board

Cleaner Emissions

Emission Type B100 B20 B2

Total Unburned Hydrocarbons -67% -20% -2.2%

Carbon Monoxide -48% -12% -1.3%

Particulate Matter -47% -12% -1.3%

Oxides of Nitrogen (NOX) +10% +2% +.2%

Source: National Biodiesel Board

281

584

181

169195

294

0

100

200

300

400

500

600

700

0 2 4 6 8 10 12Vol.% FAME

Scar Av./µm (HFRR-Test)

..significant lubricity enhancement at 2%…

Canadian #2 Winter Diesel

0

100

200

300

400

500

600

0 1 2 3 4 5 6

Biodiesel Blend (%)

HFR

R W

SD

(m

icro

n)

#1 Low Sulfur Diesel

0

100

200

300

400

500

600

700

800

0 1 2 3 4 5 6

Biodiesel Blend (%)

HFR

R W

SD

(m

icro

n)

JP-8

0

100

200

300

400

500

600

700

800

0 1 2 3 4 5 6

Biodiesel Blend (%)

HF

RR

WS

D (

mic

ron

)

Source: National Biodiesel Board

#2 Low Sulfur Diesel

0

100

200

300

400

500

0 1 2 3 4 5 6

Biodiesel Blend (%)

HFR

R W

SD

(m

icro

n

Canola vs. Soybean

ACID Canola Soy

Palmitic C-16 4.5 10

Stearic C-18 2 4

Oleic C-18:1 60 22

Linoleic C-18:2 20 54

Linolenic C-18:3 9 8

Cold flowPolymerization

RELATIVE OXIDATION RATES

Fatty Acid Oxidation RateStearic Acid (C18:0) 1

Oleic Acid (C18:1) 10

Linoleic Acid (C18:2) 100

Linolenic Acid (C18:3) 150

Cold Filter Plug PointIP 309

0

5

10

15

20

25

30

0% 20% 30% 50% 70% 100%

Percent Biodiesel

Deg

rees

F

Soy biodiesel

Canola biodiesel

with additive

Source: National Biodiesel Board

2000 2001 2002 2003 2004*0

250

500

750

1000

1250

1500

1750

GermanyFranceItalyEUNew member states (Czech Republic/Slovakia/Poland)

EU and New Member States in mio. Mt/year

Biodiesel capacities in Europe

EU 15capacities 2002

mt/ycapacities 2003

mt/ycapacities 2004

mt/yAustria 40.000 90.000 120.000Belgium (60.000) (60.000) (60.000)Denmark 35.000 35.000 35.000UK 2.000 7.000 57.000Finland 0 0 0France 502.000 502.000 502.000Germany 945.500 1.016.000 1.156.000Greece 0 0 0Ireland 2.000 2.000 2.000Italy 419.000 419.000 419.000Luxembourg 0 0 0Netherlands 0 0 0Portugal 0 0 0Spain 0 11.000 11.000Sweden 8.000 8.000 8.000Sum 2.013.500 2.150.000 2.370.000

Non EU 15Czech Republic 90.000 70.000 70.000Hungary 0 25.000 25.000Poland 2.000 15.000 15.000Slovakia 120.000 120.000 120.000Sum 212.000 230.000 230.000total 2.225.500 2.380.000 2.600.000

Biodiesel production in Europe

EU 15production 2001

mt/yproduction 2002

mt/yproduction 2003

mt/yproduction 2004

mt/yAustria 25.000 30.000 40.000 50.000Belgium 0 0 0 0Denmark 8.000 15.000 25.000 30.000UK 0 2.000 7.000 25.000Finland 0 0 0 0France 374.000 366.000 370.000 455.000Germany 277.000 450.000 750.000 850.000Greece 0 0 0 0Ireland 0 0 2.000 2.000Italy 150.000 230.000 300.000 300.000Luxembourg 0 0 0 0Netherlands 0 0 0 0Portugal 0 0 0 0Spain 0 0 0 0Sweden 840 825 1.000 1.000Sum 834.840 1.093.825 1.495.000 1.713.000

Non EU 15Czech Republic 71.000 70.000 70.000 70.000Hungary 0 0 0 0Poland 0 0 10.000 15.000Slovakia 120.000 0 75.000 75.000Sum 191.000 70.000 155.000 160.000total 1.025.840 1.163.825 1.650.000 1.873.000

Cent/l Cent/l Cent/galAustria 29.01 0.00 110France 39.19 4.19 149Germany 47.04 0.00 178Italy 40.32 0.00 153Sweden 34.32 0.00 130

United Kingdom1 47,1 Pence 27,1 PenceNorway 3,26 NOK/l 0.00

Taxes and Subsidies

Distribution of Sources (source: HBI International)

1992

Other0%

Alcohol12%

Soap 32%

Acids43%

Biodiesel1%

Synthetic12%

1995

Other2%

Alcohol14%

Soap 29%

Acids39%

Biodiesel5%Synthetic

11%

Distribution of Sources (source: HBI International)

2001

Other4%

Alcohol14%

Soap21%

Acids41%

Synthetic9%

Biodiesel11%

Distribution of Sources (source: HBI International)