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Current and Future Supply of RFS2 Qualifying and Non-Qualifying Oils and Fats for Biofuels Report for: National Biodiesel Board Washington, DC July 2013 Research and analysis to inform your business decisions LMC International Oxford New York 4th Floor, Clarendon House, 52 Cornmarket Street, 1841 Broadway, New York, NY 10023, USA Oxford OX1 3HJ t: +1 (212) 586-2427, f: +1 (212) 397-4756 t: +44 1865 791737, f: +44 1865 791739 [email protected] [email protected] Singapore Kuala Lumpur 16 Collyer Quay #21-00 B-03-19, Empire Soho, Empire Subang, Jalan SS16/1, SS16, Singapore 049318 47500 Subang Jaya, Selangor Darul Ehsan, Malaysia T: +65 6818 9231 t: +603 5611 9337 [email protected] [email protected] www.lmc.co.uk osb209n LMC International Develops Unique, Independent Research For over 30 years LMC has delivered in-depth, specialist analysis to leading international companies working in agricultural commodities, biofuels, foods and industrial materials, as well as their end-use markets. Our research covers thirteen major industry sectors: Bio-based Chemicals Feed Ingredients Biofuels & Biomass Coffee Oils & Oilseeds Cocoa Oleochemicals Food Ingredients Grains Rubber Sugar & Sweeteners Tyres Starch & Fermentation Recognised by many of the world’s major companies as experts in research, LMC provides the business world with strategic insights unavailable elsewhere. www.lmc.co.uk © LMC International Ltd, 2013. All rights are reserved in all countries. No material may be reproduced or transmitted, in whole or in part, in any manner, without written consent. While LMC International endeavours to ensure the accuracy of the data, estimates and forecasts contained in this study, any decisions based on them (including those involving investment and planning) are at the client's own risk. LMC International can accept no liability regarding information, analysis and forecasts contained in the study. Table of Contents Contents Part 1: The Supply of RFS-2 Qualifying Feedstocks .............................................................. 1 Conversion Factors and Units ................................................................................................................................ 1 Summary of the world supply of oils and fats and their use for biodiesel ............................................1 Forecasting oil supplies to 2018 ........................................................................................................................... 3 A methodology for forecasting vegetable oil supply to 2018 ......................................................3 Soybean oil ................................................................................................................................................................... 4 Methodology................................................................................................................................................... 4 Current and future supply .......................................................................................................................... 5 Canola oil ....................................................................................................................................................................... 6 Current and future supply .......................................................................................................................... 6 High and low oleic canola/rapeseed varieties .................................................................................... 8 Brassica juncea versus Brassica napus ................................................................................................... 8 Animal fats ................................................................................................................................................................. 10 Methodology................................................................................................................................................ 11 Current and future supply ....................................................................................................................... 11 Inedible corn oil from defatting distillers’ dried grains ............................................................................. 12 Methodology................................................................................................................................................ 12 Current and future supply ....................................................................................................................... 13 Waste greases ........................................................................................................................................................... 14 China................................................................................................................................................................ 14 EU ...................................................................................................................................................................... 15 US ...................................................................................................................................................................... 15 Yellow and brown grease ........................................................................................................................ 16 Camelina oil ............................................................................................................................................................... 17 Current production .................................................................................................................................... 17 The potential for camelina production in North America ........................................................... 18 The potential for camelina production outside North America ................................................ 19 Part 2: The Supply of RFS-2 Non-Qualifying Feedstocks ................................................... 21 Palm oil........................................................................................................................................................................ 21 Methodology................................................................................................................................................ 21 Current and future supply ....................................................................................................................... 22 Sunflowerseed oil .................................................................................................................................................... 23 Current and future supply ....................................................................................................................... 23 © LMC International, 2013 The contents of this study must remain confidential within the subscribing organisation Cottonseed oil .......................................................................................................................................................... 23 Methodology................................................................................................................................................ 23 Current and future supply ....................................................................................................................... 24 Edible corn oil ........................................................................................................................................................... 24 Methodology ................................................................................................................................................ 24 Current and future supply ....................................................................................................................... 25 Palm kernel oil .......................................................................................................................................................... 25 Current and future supply ....................................................................................................................... 25 Coconut oil................................................................................................................................................................. 25 Current and future supply ....................................................................................................................... 26 Jatropha oil ................................................................................................................................................................ 27 Methodology ................................................................................................................................................ 27 Current and Future Production ............................................................................................................. 28 Castor oil ..................................................................................................................................................................... 29 Current and Future Production ............................................................................................................. 29 Part 3: Summary 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