March/April 2019 Issue 2 • Volume 13 international
Turbulent times Political instability hinders progress in Europe An open door policy US ethanol must capitalise on record 2018
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international 3 News Issue 2 Volume 13 March/April 2019 9 Incident report Woodcote Media Limited Marshall House 10 Plant update 124 Middleton Road, Morden, Surrey SM4 6RW, UK www.biofuels-news.com 12 Columns Biodiesel in Europe, EWABA MANAGING DIRECTOR Biodiesel in the US, National Biodiesel Board Peter Patterson Bioethanol in the US, Growth Energy Tel: +44 (0)208 648 7082 [email protected] 16 Seizing the opportunity MANAGING EDITOR Katie Woodward Reconciling the REDII and climate Tel: +44 (0)208 687 4126 ambition in EU Member States [email protected]
EDITOR 18 Lost demand Wael Elazab US biodiesel demand bleeds lower on exemptions Tel: +44 (0)208 687 4183 [email protected] 20 Uncertainty remains JUNIOR EDITOR US policy uncertainty continues to weigh on prices Joshua Heer Tel: +44 (0)208 687 4139 [email protected] 21 Biofuels progress in Europe Europe’s political turmoil invades REDII tranquillity INTERNATIONAL SALES MANAGER Edward McCauley 23 Finland’s bold biofuels targets Tel: +44 (0)203 551 5751 [email protected] Wood-based UPM BioVerno diesel reduces air polluting emissions US SALES MANAGER Matt Weidner Tel: +1 610 486 6525 26 How camel crickets may boost biofuels [email protected] Researchers have discovered new bacterial species associated with lignin bioconversion of industrial waste PRODUCTION Alison Balmer Tel: +44 (0)1673 876143 28 Unlocking the promise of [email protected] bioindustrial technology
SUBSCRIPTION Technologies that can hydrolyse cellulosic RATES biomass are crucial to delivering meaningful £170/€235/$270 for volumes of sustainable fuels 6 issues per year Contact: Lisa Lee Tel: +44 (0)208 687 4160 31 Keeping it local Fax: +44 (0)208 687 4130 [email protected] Biofuels International speaks with Neutral Fuels’ Karl W. Feilder about keeping biodiesel production
No part of this publication may local and making the most of smart technology be reproduced or stored in any form by any mechanical, electronic, photocopying, recording or other means without the prior written consent of the publisher. Whilst the information and articles in Biofuels International are published in good faith and every effort is made to check accuracy, readers should verify facts Biofuels International, ISSN 1754 - 2170, is published bi-monthly by Woodcote Media Ltd, 124 and statements direct with official Middleton Road, Morden, Surrey SM4 6RW, UK. sources before acting on them as the The US annual subscription price is USD270. Airfreight and mailing in the USA by agent named WN Shipping USA, 156-15, 146th Avenue, 2nd Floor, Jamaica, NY 11434, USA. publisher can accept no responsibility in this respect. Any opinions expressed Periodicals postage paid at Jamaica NY 11431. in this magazine should not be US Postmaster: Send address changes to Biofuels International, WN Shipping USA, 156-15, 146th Avenue, 2nd Floor, Jamaica, NY 11434, USA. construed as those of the publisher. Subscription records are maintained at Woodcote Media Ltd, 124 Middleton Road, Morden, Surrey SM4 6RW, UK. ISSN 1754-2170 Front cover image: ©Grisha Bruev. Air Business Ltd is acting as our mailing agent. Image from bigstockphoto.com biofuels international march/april 2019 1 Green CMYK c76 m0 y100 k0 Pantone 362 c rgb r61 h164 b42
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t the end of 2018, the biofuels around 2.6 billion gallons of biofuel demand from industry in the European Union (EU) the US market which, together with disruption was finally offered some legislative from flooding across the Midwest, has created stability, with the final revision of the what Growth Energy CEO Emily Skor has called RenewableA Energy Directive (REDII). Member a “man-made recession in rural America”. States must now put in place the necessary Ethanol exports from the US however national legislation in order to move forward in witnessed a record year in 2018, with the US the decarbonisation of the transport sector, with Department of Agriculture (USDA) announcing the next few years marking a critical period in 1.7 billion gallons in exports, marking the sixth the drive to achieve the Paris Agreement climate consecutive year of growth for the industry. As goals. Growth Energy’s Craig Willis observes in his For European waste biodiesel producers, column in this edition of Biofuels International, secretary general of the European Waste- this trend is “even more remarkable given several to-Advanced Biofuels Association (EWABA) new and ongoing trade barriers that limited Angel Alvarez Alberdi warns that the key issue American producers’ and farmers’ ability to for the years ahead is feedstock availability, take full advantage of global ethanol demand.” with used cooking oils (UCO) and animal fats As this and other recent developments limited at 1.7% energy content. Despite being show, it’s not all doom and gloom for the deemed unnecessary by both the European biofuels industry. In Finland, UPM’s BioVerno Parliament and Council, the limitation was renewable diesel has proven lower particulate included in REDII and could impact those and nitrogen oxide emissions in tailpipe testing, producers relying heavily on waste feedstocks. which will undoubtedly help the country meet Staying in the EU (at least for now), in the its ambitious climate targets. Innovations and UK the transport fuels sector lags behind its collaborations in the use of biofuels as marine neighbours on the Continent. Britain has fallen and aviation fuel also abound, with airplane behind on the implementation of E10, with most manufacturer Boeing and shipping giant of the blame directed towards the government Maersk both announcing recent initiatives. and its reluctance to give a positive lead. No It’s a challenging but exciting time for doubt minds have been elsewhere in the lead biofuels, with policy updates in both the US up to the Brexit deadline; at the time of writing, and Europe helping and hindering the industry Prime Minister Theresa May had just requested and producers in equal measure. Make sure an extension from the EU to 30 June 2019. you keep track of what’s happening on the Across the Atlantic, policy uncertainty Biofuels International website, with daily updates continues to weigh prices, as the US covering news, legislation and technology Environmental Protection Agency (EPA) granted developments online at www.biofuels-news.com. yet another small refinery waiver from 2017, bringing the total number of refineries exempt from US biofuel legislation to 35, as of the end Katie Woodward of March 2019. These waivers have slashed Managing Editor
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2 march/april 2019 biofuels international biodiesel news VTT develops new sustainable option for forest waste
VTT Technical Research plants. The intermediate Centre of Finland has products are then processed developed a new in oil refineries to make technique that offers renewable fuels or chemicals. VTT has developed and a sustainable way to piloted the new gasification turn forest industry process. The process is based byproducts, such on VTT’s low-pressure, low- as bark, sawdust temperature steam gasification and forestry waste, technology, simplified gas proven an insurmountable from the year 2030 onwards. purification and small-scale obstacle. The smaller scale The gasification technology into transport fuels industrial syntheses. of our solutions makes it development is set to continue and chemicals. Senior principal scientist easier to secure funding for through two EU Horizon 2020 Esa Kurkela said: “Not one building the first plant based projects coordinated by VTT. The new technique uses of the large gasification on the new technology.” The projects will focus on gas gasification to turn biomass plants of more than 300MW The new technology is set purification and increasing into intermediate products, that have been planned to become considerably more the efficiency of synthesis such as liquid hydrocarbons, for Europe has been built competitive as the costs of technology and aim to methanol or methane, in yet. The almost €1 billion the raw material of competing demonstrate the performance production units integrated investment needed together technologies increase, and of the entire biofuel chain with communal district heating with the risks associated the process is expected to at VTT’s Bioruukkii piloting plants or forest industry power with new technology has be highly competitive at least centre in Espoo, Finland. l
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biofuels international march/april 2019 3 biodiesel news Neste opens Letter calls for extension of commercial biodiesel tax incentive A letter has been sent build new economic opportunities.” renewable to US Congress about a The members of House of multi-year extension of the Representatives also wrote that the diesel fuel biodiesel tax incentive. expansion would “deliver economic and environmental benefits to The letter was written by 44 members drivers, consumers, farmers and station in of the House of Representatives and others all along the value chain.” stated that after letting the biodiesel Kurt Kovarik, vice-president of federal California tax incentive for 2017 expire for affairs for the National Biodiesel Board Renewable diesel producer 2018 and beyond, “the industry (NBB) said in the letter: “NBB and its Neste has opened its is once again facing prolonged members appreciate the leadership first cardlock in San uncertainty about this policy.” of Representatives Loebsack, The bipartisan coalition of House LaHood and others from across the Leandro, California that members was led by representatives, country who co-signed this letter.” will offer the company’s Dave Loebsack, D-Iowa and Darin Kovarik continued: “The letter MY Renewable Diesel. LaHood, R-III. They wrote: “Biodiesel demonstrates the strong, bipartisan has been and continues to be a great support for a multi-year extension of the The milestone marks the first American success story. Biodiesel biodiesel tax incentive now, in order to time that vehicles can fuel up production supports more than 60,000 provide biodiesel producers, blenders with Neste’s renewable diesel, good paying jobs in the US and helps and retailers the opportunity to plan made from sustainable biomass, rural communities across the country and expand the market for biodiesel. l directly at a station. Cardlocks are unstaffed fuelling stations designed to accommodate fleet vehicles, such as large trucks. “Since launching in California in 2017, we’ve had a lot of positive feedback from drivers and fleet managers using Neste MY Renewable Diesel,” said Jeremy Baines, vice- president of sales at Neste. “And those who haven’t tried it yet keep asking where they can get it. We’re proud to offer Neste MY Renewable Diesel at these cardlock locations to further expand its accessibility and lead the renewable fuel revolution.” The company plans to open three other sites across California, with each able to supply its renewable, low-carbon diesel fuel, produced from 100% renewable and sustainable biomass. According to Neste, the fuel reduces greenhouse gases by up to 80% compared to petroleum diesel. Baines added: “Demand for cleaner fuels is on the rise globally, and California is a leader in the movement toward an emission-free future. Neste MY Renewable Diesel helps meet environmental needs without compromising performance.” The renewable fuel is a direct replacement for petroleum diesel and does not require blending. It is compatible with all diesel engines, with no modifications required. l
4 march/april 2019 biofuels international bioethanol news Study finds biofuels contribute $5 billion to Iowa’s GDP A recent study commissioned economic opportunities for our state. continue to support the biofuels industry by the Iowa Renewable Fuels However, actions being taken on the with favourable policy decisions. Association (IRFA) has found federal level, such as the continued use “Iowa farmers and biofuel producers that biofuels contribute over $5 of small refinery exemptions (SREs) by are suffering from low prices, and the US Environmental Protection Agency we desperately need a strong RFS billion (€4.38 million) to Iowa’s (EPA) that undermine the Renewable Fuel and extended biodiesel tax credit,” GDP, equivalent to 3%. Standard (RFS), can jeopardise the future Shaw added. “The message to our of Iowa biofuel producers and the many representatives here in Iowa and The ‘Contribution of the renewable economic benefits they provide for Iowa.” Washington is if they turn their backs fuels industry to the economy of Iowa’ In addition to offering crucial support on the policies that have helped grow report, authored by John Urbanchuck, to agriculture and rural economies in biofuels, billions of dollars in economic managing partner at ABF Economics, the US state, the report warned that fair activity and tens of thousands of revealed that the biofuels industry and stable policy is needed to maximise jobs will be jeopardised.” l supports over 48,000 jobs in the state potential benefits from biofuels. and adds more than $2.5 billion “Uncertainty surrounding issues (€2.19 million) to household incomes. like SREs, tax credit extensions, trade “The results of this study serve with China, year-around E15 sales, as a great reminder to our state and and the RFS reset will impede the federal representatives that biofuels ability of the industry to provide these continue to be a smart and profitable societal benefits,” the report noted. investment for Iowa,” said IRFA IRFA members met with state legislators executive director Monte Shaw. on 20 March to promote the results of the “As this industry grows, so do the study and encourage representatives to
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biofuels international march/april 2019 5 bioethanol news Inquiry launched into E10 in the UK The All Party “While securing the future Parliamentary Group of the industry on which for British Bioethanol thousands of jobs depend, (APPG for British introducing E10 could also help the UK meet its carbon Bioethanol) announced reduction and air quality that it has launched an improvement targets, making inquiry into introducing it an issue urgently needing E10 into the UK. further investigation.” This inquiry follows “The British bioethanol announcements last year industry – which is worth from two of the UK’s largest a billion pounds to the UK bioethanol producers, Vivergo economy – is in a state of and Ensus, of their plans to collapse and the introduction cease and pause production. of E10 could help bring it back In September, Vivergo from the brink. This inquiry cited the lack of legislation will seek to better understand incentives as the reason for the issues and barriers around its plant closure. Only a 5% E10 which if introduced, greener than the current E5 introducing E10 in the UK blend of ethanol mix (E5) is could bring this one billion fuel, making it available at UK which is already available currently available in the UK. pound industry back from pumps is a no brainer, but we in many other developed “After years of delay the brink of collapse,” said hope this inquiry will identify nations,” said chair of the and false dawns, the Grant Pearon, commercial any remaining barriers to APPG for British Bioethanol bioethanol industry now director at Ensus Fuels. its introduction and ways to and Scunthorpe MP Nic Dakin. needs urgent progress on “As E10 is cleaner and quickly overcome them.” l
Toyota to launch yeast strains for US cellulosic ethanol Lallemand Biofuels & Distilled Spirits (LBDS), the renewables division of Canadian firm Lallemand, announced that it has signed an agreement with car manufacturer Toyota.
The agreement regards the production and marketing of Toyota’s XyloAce yeast strains for cellulosic ethanol production in the US. Lallemand describes XyloAce as ‘highly efficient’ at fermenting xylose and arabinose, while also being highly resistant to fermentation-inhibiting substances such as acetic acid. Lallemand continues to claim that the strains have achieved some of the XyloAce product line to strains available,” said LBDS look forward to driving highest ethanol fermentation our portfolio will allow our president Angus Ballard. increased profitability for density levels in the world. customers to choose from “We are proud to be cellulosic ethanol producers “Adding the Toyota the very best cellulosic yeast working with Toyota and throughout North America.” l
6 march/april 2019 biofuels international aviation news Boeing to launch biofuels Gulfstream initiative for return flights makes first sale
Airplane manufacturer guests, our communities and the of sustainable Boeing announced that environment around us – for the it will be offering airlines long term. That’s the definition of alternative jet fuel and operators the option sustainability,” said Diana Birkett Rakow, vice-president of external Gulfstream Aerospace has of powering their new relations at Alaska Airlines. made its first sale of sustainable commercial jets with “We congratulate our partners alternative jet fuel (SAJF) to a US- biofuel for return flights. at Boeing for operationalising a based Gulfstream operator. drop-in sustainable aviation jet Boeing claims that the initiative fuel option. We’re excited to not The customer bought 20,000 pounds (9.07 tonnes) supports the industry’s drive to only take advantage of the first of Gulfstream’s bio-jet fuel from its facility in Long protect the environment, lowering biofuel delivery, but to continue Beach, California for its Gulfstream G550 aircraft. emissions by up to 80%. working together to advance “This sale is a direct result of our efforts to “This is another step in our and scale mainstream adoption increase the visibility and availability of sustainable decade-long journey to encourage of sustainable fuel and other alternative jet fuel for our customers,” said Mark the adoption of sustainable practices to enhance the aviation Burns, president of Gulfstream Aerospace. fuels and help commercial industry’s ability to do good.” “We are committed to helping promote aviation earn its license to keep World Energy produces increased use of SAJF throughout the industry. growing,” said Sheila Remes, the biofuel at its refinery in We’ve been using the fuel since 2016 with our vice-president of strategy at Paramount, California, which corporate, demonstration and Flight Test fleets, Boeing Commercial Airplanes. Boeing claims is the world’s first and we’re now proud to offer it to operators “We have great customers facility designed to commercially as well. We look forward to the day this fuel is such as Alaska Airlines that have produce renewable jet fuel. commonplace in our industry and we are all made good progress in adopting “World Energy is here to serve doing our part to reduce emissions worldwide.” the use of biofuels. We hope this any organization committed to Since 2012, the company has been new option will make it easier for leading the shift toward a low- using a blend of 30/70 low-carbon, drop- them and others to demonstrate carbon future,” World Energy in SAJF and Jet-A fuel in operations at our industry’s commitment to CCO Bryan Sherbacow said. its headquarters in Savannah. The bio-jet reduce carbon emissions.” “Companies such as Boeing fuel is produced at World Energy’s refinery, Alaska Airlines will be utilising understand their obligation to the located near Long Beach Airport. a blend of biofuel from Boston- communities they serve and have The US Federal Aviation Administration has headquartered World Energy taken meaningful action to transition confirmed that SAJF is safe to use. Throughout and traditional aviation fuel to cleaner energy and reduce their its lifecycle, the fuel achieves more than a 50% when it accepts a delivery of carbon footprint. Our job is to reduction in greenhouse gas emissions per three Boeing 737 Max planes. manage the low-carbon fuel supply gallon, compared to petroleum-based jet fuel. “Alaska takes seriously the chain to provide the product these Gulfstream also announced that it will start responsibility to deliver for all those leaders need to efficiently operate using SAJF on large-cabin aircraft flights from who depend on us – employees, and drive positive change.” l Long Beach Airport in the near future. l
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biofuels international march/april 2019 7 8 march/april 2019 biofuels international maritime news
Maersk, Dutch partners launch world’s largest maritime biofuel pilot Members of the Dutch Sustainable important step. However, many more Growth Coalition (DSGC) have innovations are urgently needed. partnered with A. P. Moller – These can only be successfully Maersk on the world’s largest developed, tested and implemented in industry collaborations like this.” maritime biofuel project. Søren Toft, COO at A. P. Moller – Maersk, added: “To reach our net Dutch companies FrieslandCampina, zero CO2 target by 2050, in the next Heineken, Philips, DSM, Shell and 10 years we need big breakthroughs. Unilever will work with Maersk on Maersk cannot do this alone. That a pilot, which will use up to 20% is why this collaboration with DSGC sustainable second-generation biofuels and its members is such an important to power a triple-E ocean vessel. step in identifying and bringing According to the project partners, low carbon solutions to life.” the vessel will sail the 25,000-nautical (CO2) and 20,000 kilograms of sulphur. The DSCG members initiated mile roundtrip from Rotterdam to Speaking about the importance of and are sponsoring the pilot, while Shanghai solely on biofuel blends. decarbonising ocean shipping, Jan Shell will supply fuel and Maersk Using this sustainable fuel, produced Peter Balkenende, chair of the DSGC, will act as operating partner. from waste cooking oil, will save 1.5 said: “This pilot testing biofuel on a The roundtrip voyage will take place million kilograms of carbon dioxide cross ocean shipping lane marks an between March and June this year. l incident report A summary of the recent explosions, fires and leaks in the biofuels industry
Date Location Company Incident information
25/03/19 North Karachi, Madina CNG Two people died and four were injured when an explosion took Pakistan place at the Madina CNG fuel station. The deceased include the station owner and an employee. The incident was deemed an accident by a bomb disposal squad. Sui Southern Gas Company immediately suspended CNG supply to the station following the explosion, which occurred in a store room at the site. The cause of the explosion has yet to be confirmed.
21/03/19 Brevard County, N/A A tanker spilled more than 7,000 gallons of biodiesel on the Florida, US Interstate 95, after the driver became distracted and lost control of the tanker. The spill forced the closure of southbound lanes on the Interstate 95 at the Fiske Boulevard interchange. The driver received minor injuries, and no other vehicles were involved.
20/02/19 Fairbank, Iowa, US Flint Hills Resources A fire damaged a silo at an ethanol plant in rural Fayette County. Firefighters from Fairbank, Westgate, Independence and Waverly were called to the scene. According to the Buchanan County Sheriff’s Office there was no risk of an explosion. No injuries were reported. biofuels international march/april 2019 9 Green CMYK c76 m0 y100 k0 Pantone 362 c rgb r61 h164 b42
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Plant update: Europe
Vivergo Total
Location Hull, UK Location Châteauneuf-les-Martigues, France Date September 2018 Date October 2018 Development Closure Development Delay of launch Alternative fuel Bioethanol Alternative fuel Biodiesel Details Formed in 2007, Vivergo aimed to deliver Details French oil & gas firm Total has chosen to a substantial and significant portion of the delay its planned biodiesel refinery, named UK’s forecast biofuel demand. Originally La Mede, until the first quarter of 2019. The a joint venture between AB Sugar and Du refinery is estimated to have a capacity Pont, the company set out to become a of 500,000 tonnes of biodiesel. Originally biorefinery for the future. However, on the scheduled to start in the summer of 2018, 6th of September it announced its proposal the refinery has cost Total upwards of €200 to cease production. million. The planned refinery has been Comments “I am extremely disappointed at having met with opposition after France’s largest to announce the proposed cessation of union had called for a nationwide blockade production as of the 30th of September in response to the facility’s intended use 2018. We have created a highly skilled of imported palm oil. Despite this, the and world-class business that had project is set to be coupled with a plan for the opportunity to be part of a British continuous improvement of the company’s sustainable biofuels industry. But sadly, energy efficiency, with the objective of the Government’s lack of pace over the reducing energy consumption by 8% before past decade to introduce E10 has further 2020. undermined our ability to operate.” Greenergy
Location Amsterdam, the Netherlands Date July 2018 Development Acquisition Alternative fuel Biodiesel Details Greenergy has reached an agreement with Oiltanking, a tank terminal operator, to purchase an idle biodiesel manufacturing facility located at Oiltanking’s site in Amsterdam. The acquisition of a third biodiesel plant will allow Greenergy to meet growing demand for waste-based biofuel in the UK and Europe. The Amsterdam biodiesel manufacturing facility was built in 2010 to process vegetable oils but was CropEnergies never commissioned. Greenergy plans Location Wilton, UK to carry out works over the next year to Date February 2019 convert the facility to process waste oils Development Resuming production rather than vegetable oils and then to add Alternative fuel Bioethanol further production capacity. Details German ethanol producer CropEnergies Comments “Demand for waste-based biodiesel is revealed that in a board meeting the rising rapidly in the UK and Europe as a company decided to resume ethanol result of higher obligated biofuel inclusion production at its UK plant in Wilton at rates. Over the last few years we have the beginning of March 2019. However, scaled up our raw material supply chains CropEnergies noted that for there to be and invested in our UK manufacturing continuous operation at the Wilton facility, facilities, increasing output through a variety changes in UK legislation would need to be of incremental investments. We are now made, primarily the introduction of a 10% leveraging these skills and capabilities to ethanol blend (E10). develop a third plant.” Comments “Already today, climate friendly Premium E10 is the standard fuel for the certification *This list is based on information made available to Biofuels International at the time of printing. If you would like to update the list with any additional plant information for future issues, of new petrol engines in the EU.” please email [email protected]
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2019 KEYNOTE SPEAKERS
Improving Performance Re-thinking Risk Traits of Successful Leaders Melanie Little Jordy Hendrikx Walter Nusbaum Magellan Midstream Partners, L.P. Montana State University President, The Nusbaum Group Senior Vice President, Operations and Director of the Snow and Avalanche Lab, Author, Do You Have What It Takes? and The Sink: Environmental, Health, Safety & Security Associate Professor of Geography Radical Transformation with One Small Change
Industry leader Melanie During lunch on Monday, The conference concludes Little opens our confer- scientist Jordy Hendrikx with a presentation from ence with a presentation will ask us to re-think author Walter Nusbaum. on improving performance risk by looking at lessons Building on themes from his using strategy, outcomes learned in other hazard- books, Do You Have What It and goals. While most ous settings—namely Takes? and The Sink: Radical companies have a written avalanche-prone areas. Transformation with One strategy, team members Bridging his decades of Small Change, Nusbaum will often fail to understand research on avalanche examine the seven critical how the strategy ties into their jobs. Little fatalities with his knowledge of risk man- traits of successful leaders and teams and will share lessons and demonstrate how agement, Hendrikx will demonstrate how show how success can be accomplished by having a clear strategy can ensure alignment focusing on human-dimensions and decision anyone willing to do the work. Nusbaum will across all functional areas and bolster team making can help reduce fatalities and injuries challenge everyone to evaluate themselves, morale. Attendees will learn how a clear in any risky setting. Hendrikx has spent the and he will discuss how they can continue to strategy can provide a platform for senior last 20 years working on snow and avalanche develop each of the seven critical elements leaders to develop and communicate key projects in mountains around the world, from of success. Walter’s academic background in outcomes and ensure that resources are truly Antarctica to the Arctic. His work has been strategic management, leadership and philos- focused in areas that will provide the best featured by Nature, The Wall Street Journal, ophy, along with his ability to see the problem chance of achieving the company’s success. The New York Times and Powder Magazine. and provide proven solutions, has made him a highly sought-after speaker and coach.
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In between a senseless limitation and the aviation threat The post-REDII waste biodiesel
Angel Alvarez Alberdi conundrum By Angel Alvarez Alberdi, secretary general of EWABA
ith the entry into force of the animal fats) is limited at 1.7% energy content revision of the renewable energy (3.4% in Member States applying double directive (REDII) in December counting). This limitation was justified upon 2018, following months of the basis of a global limitation of waste “by intenseW negotiations, the European Union nature” and was deemed to be unnecessary (EU) biofuels industry at large entered a no by both the European Parliament and Council, less important phase in which Member States which eliminated it in their preparatory have to put in place the necessary national documents during REDII negotiations. The REDII implementing legislation ahead of the limitation eventually came back to the law- 31 June 2021 transposition deadline. The making table due to the reintroduction of the REDII gives plenty of margin for Member double counting mechanism for UCO and States to legislate on decarbonising the animal fats, a classic example of legislative transport sector, and given that biofuels rely horse-trading. Even so, EU legislators, on public support, producers and interested aware of its inherent harmfulness and lack stakeholders should closely follow the of justification, gave Member States the actions of their respective national officials. option to modify the limitation taking into A first indication of what lies ahead can consideration feedstock availability and with be found in the draft national energy and the consent of the European Commission. climate plans from Member States, recently National waste biodiesel producers will have published by the European Commission.1 the respite of not being forced to face the From the perspective of the European waste damages of market contractions in waste biodiesel producers, the key issue in the years markets relying heavily on waste feedstocks. to come is feedstock availability, a sensitive matter affecting different to-be-implemented Indiscriminate incentives for aviation REDII provisions, in particular the following two. are dangerous
Dealing with the flexible REDII The REDII allows Member States to implement limitation to certain waste feedstocks a x1.2 multiplier for aviation (x2.4 in Member States applying double counting). In addition, The use of waste feedstocks in Part B of Annex some Member States are considering IX of the REDII (used cooking oils (UCO) and introducing specific incorporation obligations
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Blue CMYK c100 m56 y0 k0 Pantone 293 c rgb r12 g71 b157 focus on European biodiesel biofuelsHelvetica Black and Helvetica Ultra light for renewable aviation fuels. oils and animal fats. In the future, the and animal fats from aviation incentives Out of the existing five accepted IEA promotes the concept of producing in the development fuels category. The technologies for alternative aviation synthetic fuels using renewable electricity, EU waste biodiesel industry advocates fuels,2 only one is being produced in carbon dioxide and water as a feedstock. for many other national authorities large commercial quantities: HEFA- Indiscriminate promotion of aviation to follow the British example. l SPK (hydro-processed esters and fatty fuels will not result in the much-needed BRUSSELS I acids–synthetic paraffinic kerosene). research and investment in these 22-23 OCTOBER 2019 Footnotes The possible feedstocks that this promising cutting-edge technologies; 1. National Energy and Climate Plans (NECPs), technology can use are pure vegetable instead it will harm the well-established https://ec.europa.eu/energy/en/topics/energy- oils, UCO and animal fats. The REDII waste biodiesel industry, destroying strategy-and-energy-union/governance- energy-union/national-energy-climate-plans excludes crop-based biofuels from employment and reducing global GHG 2. ASTM Certified Conversion Processes, aviation incentives, therefore only waste mitigation. One of the Member States https://www.icao.int/environmental-protection/ feedstocks from Part B of Annex IX (UCO relying heavily on waste biodiesel GFAAF/Pages/Facts-Figures.aspx 3. ‘How green and scalable are the aviation biofuels and animal fats) are left for aviation. from UCO and animal fats for the that United Airlines and Oslo Airport source from Waste biodiesel types such as used decarbonisation of the road transport world energy?’, https://www.biofuelwatch.org.uk/ cooking oil methyl ester (UCOME) sector, the UK, understood in advance wp-content/uploads/WorldEnergy-biofuels-briefing.pdf BRUSSELS I 22-23 OCTOBER4. ‘Commentary: 2019Are aviation biofuels ready for take and tallow methyl ester (TME) cannot the hidden risks associated with aviation off?’, https://www.iea.org/newsroom/news/2019/ be used as jet fuel due to their cold incentives and plainly excluded UCO march/are-aviation-biofuels-ready-for-take-off.html flow properties. For this reason, the indiscriminate promotion of alternative fuels in aviation breaks the principle of technology neutrality, as it promotes the hydro-treating technology against the transesterification of waste oils CONFERENCE & EXPO and animal fats. In other words, the promotion of aviation fuels would be BRUSSELS I 22-23 OCTOBER 2019 made at the expense of sustainable biofuels for the road transport sector. Indiscriminate aviation incentives would unlevel the playing field and give LIMITED a few large hydro-treated vegetable oil EXHIBITION (HVO) refineries an unfair advantage over STANDS a far more numerous network of waste AVAILABLE biodiesel producers. HVO refineries with deeper pockets and additional public support will be able to outbuy the same waste feedstock used by waste SPONSOR biodiesel producers and very quickly NOW drive them out of the market. This would not only have negative consequences for • Meet over 200 bio-related experts Hot topics covered will include: Member States wishing to decarbonise • Choose from 3 bio streams • International biofuels trading the road transport sector and waste • High-profile speakers • Sustainability biodiesel producers, but it would also • Delegates previously from over 30 • Solutions for first generation producers negatively affect greenhouse gas (GHG) countries • Progress in advanced biofuels • Organised by the world’s ONLY global • Information on feedstock pricing and trends reduction as a whole, given that, as Biofuels magazine • Interested in speaking, submit your abstract established in Annex V of the REDII, • Co-hosted with the International Biomass now to [email protected] UCOME and TME have higher GHG Congress & Expo and International Biogas For a tailor-made package that meets savings than any form of HVO or hydro- Congress & Expo • Excellent networking opportunities your needs please contact treated alternative fuels, the production • Free conference pass, lunches and access Edward McCauley, + 44 20 3551 5751 of which is energy-intensive and costly. to networking functions for all sponsors [email protected] These unintended consequences of and exhibitors the highly fashionable incentives for • Fantastic opportunity to highlight your company’s products and services at this alternative fuels in aviation are starting established event “The Biofuels Conference provided to be picked up by NGOs, which warn a great venue to hear about the latest developments in technology and the of the unsustainable consequences of progress made in legislation to increase diverting UCO and animal fats from road the application of biofuels in the transport biodiesel into aviation HVO,3 and notably sector. The presentations covered a large spectrum giving the right blend to create by the International Energy Agency (IEA) unforeseen networking opportunities 4 itself. In a recent analysis the IEA calls at the event” for increasing research and development Laszlo Domokos, in novel advanced aviation biofuels SHELL using agricultural residues and municipal solid wastes, which are more widely www.biofuels-news.com/conference available and less expensive than waste biofuels international march/april 2019 13 Green CMYK c76 m0 y100 k0 Pantone 362 c rgb r61 h164 b42
Blue CMYK c100 m56 y0 k0 Pantone 293 c rgb r12 g71 b157 Helvetica Black and Helvetica Ultra light biofuels focus on US biodiesel Biodiesel drives the US work truck industry Scott Fenwick
By Scott Fenwick, technical director at the National Biodiesel Board
s the future of the transportation and greenhouse gas emissions from industry continues to evolve, the transportation sector as positive there is one thing we know for indicators for future use of biodiesel. sure; work needs to be done. Because biodiesel blends can be MultipleA studies show that diesel engines used in any diesel engine without will continue to be the industry’s preferred modification, according to manufacturers’ workhorses for many years to come. recommendations, they offer fleets an And biodiesel, America’s Advanced easy and cost-effective way to reduce Biofuel, has an important role to play. their carbon footprint in existing diesel The future of the US biodiesel industry vehicle fleets. Customers from coast is bright, with new research by NTEA to coast have successfully used B20, a (the Association for the Work Truck blend of 20% biodiesel with 80% ultra- Industry) confirming that fleets across low sulphur diesel, in virtually every make North America increasingly rely on the and model diesel engine, and the vast power and performance of biodiesel majority of new diesel engines now have to get the job done. For the third time full OEM support for B20 meeting current in four years, surveyed fleets named ASTM specifications. Compared to fossil biodiesel as their top alternative fuell fuels like petrodiesel, B20 reduces carbon choice for current use and future interest. emissions by 16% on average, with B100 Each year, NTEA conducts a reducing carbon emissions by 80%. comprehensive Fleet Purchasing Proactive fleets like the Chicago Park Outlook Survey to better understand District in Illinois have realised significant the commercial vehicle landscape, benefits from using biodiesel blends in including interest levels for advanced their operations. With one of the highest truck technologies and alternative fuels. asthma rates in the country, Chicago was The 2019 survey revealed that the 76% looking for an effective and sustainable majority of fleet respondents anticipate way to reduce harmful vehicle emissions maintaining or increasing use of diesel as well as address its carbon reduction engine-powered trucks in their fleets, and goals. They found the answer in biodiesel. more than 33% of survey respondents The Park District began using biodiesel acknowledged currently operating blends in its 2013 fleet of more than 250 alternative fuelled trucks in their fleets. diesel vehicles and now successfully There was even more good news for uses blends between B10 and B50 year- the industry when survey participants round. By using biodiesel, their annual named biodiesel as their top alternative reductions in CO2 emissions are equivalent fuel choice, at 16%, and their top choice to planting over 1,500 trees per year. for future interest, at 14%. Additional This is just one of the many biodiesel anecdotal evidence from the NTEA success stories that we are sharing with suggests that though alternative fuel fleets, industry stakeholders, partners interest may ebb and flow along with and others, to demonstrate that biodiesel fluctuating oil prices, the trend will blends are here and now. We will continue likely turn upward in the long run. It is working to capitalise on the potential for highly likely that clean energy solutions biodiesel growth as predicted by the NTEA will remain relevant due to oil price survey, while simultaneously pursuing instability. We further credit the national our ongoing technical work on fuel growing interest in reducing carbon quality, OEM partnerships and more. l
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Blue CMYK c100 m56 y0 k0 Pantone 293 c rgb r12 g71 b157 focus on US bioethanol biofuelsHelvetica Black and Helvetica Ultra light Ethanol industry must continue to foster open markets following record 2018 An open door policy
by Craig Willis, senior vice-president of global markets at Growth Energy
arlier this year, the US Department of Energy. newly formed ethanol fuel US Department of The nation is also a major standards will, therefore, Agriculture’s (USDA) importer of ethanol fuel and continue to be a critical Foreign Agricultural was the largest destination issue for the US ethanol EService (FAS) released the for US ethanol in 2018, and agriculture industries in final 2018 ethanol export importing a record 513 million 2019. The Canadian market, numbers – bringing the gallons for the year. Brazil in particular, is the perfect year to a record 1.7 billion makes up nearly a third of example of how open markets gallons in exports. Last year our exports annually and is and cooperation can foster marked the sixth consecutive crucial to providing a stable growth in biofuels. We hope year of continuous growth export outlook for American to see continued progress in in ethanol exports, with ethanol producers, despite key markets like Canada – a 2018 seeing an impressive a 20% tariff on all imports of country which has maintained 23.7% increase in exports US ethanol over 39 million open and fair trade with the from 2017, which translates gallons per quarter. However, US – and carry that lesson to to an additional 326 million its unusually high blend new markets. We anticipate gallons shipped globally. This requirements, coupled with Craig Willis that Canada’s incremental growth trend is even more its domestic production, changes to its blending remarkable given several make Brazil the exception, requirements will continue to new and ongoing trade not the rule, in terms of the global ethanol outlook. grow the market year-over- barriers that limited American understanding and forecasting This is especially the case as year and ensure a smooth producers’ and farmers’ global ethanol markets. Due countries like China, India, transition to the adoption of ability to take full advantage to its own crop harvest and Columbia, and others begin higher blends of ethanol fuel of global ethanol demand. domestic production, the to consider adopting higher in the country’s fuel stream. Among global producers, volatility of ethanol demand blends of ethanol fuel. Continuous engagement and the US and Brazil are both the in the Brazilian market means Of particular interest to the work alongside Canadian world’s largest producers and that American producers ethanol industry is China. biofuels producers has consumers of fuel ethanol. will need to cultivate new As the second largest single fostered a move to higher While the US nearly doubles markets to ensure stable gasoline consumer globally, blends such as E10 and E15, the amount of finished ethanol growth in the long-run. the Chinese market represents at the national and provincial Brazil produces annually, Established markets – potentially hundreds of levels respectively, and Brazil only trails the US by such as Canada – as well millions of gallons in new demonstrated the value of 8 billion gallons, making up as some smaller, emerging ethanol demand annually. ethanol for both its economic 26% of total global exports markets are therefore In 2017, the Chinese and environmental benefits. in 2017, according to the increasingly prominent in government announced Growth Energy has worked a plan to implement their hard to establish strong own biofuels standard that trade ties internationally to would move them to a 10% ensure continued growth for nationwide blend by 2020. ethanol, submitting comments Since then, the government in support of biofuels to has successfully integrated government entities in biofuels into the country’s Canada, the European fuel stream at the provincial Union, the UK and Japan. As level. However, in 2018, countries attempt to reach trade tensions have limited higher nationwide blends of the opportunities for ethanol ethanol fuel, the value that exports to China and could US ethanol exports offer will hamper the speed at which become increasingly apparent, the country is able to achieve and if 2018 is any indication a 10% nationwide blend rate. for 2019, the opportunities US ethanol exports increased by 23% between 2017 and 2018 – Reducing trade barriers for growth around the ending the year at a record 1.7 billion gallons in countries with existing or globe are tremendous. l
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Blue CMYK c100 m56 y0 k0 Pantone 293 c rgb r12 g71 b157 Helvetica Black and Helvetica Ultra light biofuels focus on European biofuels
Seizing the opportunity
Reconciling the REDII and climate ambition in EU Member States
he EU is committed in 2030 versus the 2021 stipulating that 14% of the hardest and most expensive to carbon neutrality baseline. CO2 emissions from energy used in transport sector to abate, Member by the middle of the heavy-duty vehicles (e.g., must come from low-carbon, States may be tempted to century, but long-term buses and trucks) need to be renewable energy sources. use these multipliers when objectivesT require ambitious decreased by 15% in 2025 That said, we already know implementing the REDII. action today. The clean and 30% in 2030 versus the that this target is likely not However, that would be energy and climate package, July 2019–July 2020 baseline. to be met entirely because counterproductive and a including a set of legislations There are also incentives of the use of multipliers failure to comply, considering to ensure the EU is on track for electric powertrains, and limits to the use of the GHG emission reduction to reduce greenhouse gas which are considered zero conventional biofuels. they must achieve in the (GHG) emissions by at least emission vehicles. These The European Commission transport sector in line 40% by 2030, have now all two legislations on CO2 estimated that it needs with the ESR. To meet ESR been adopted. An important emissions from light and between 12% and 15.6% requirements, Member legislation is the Effort Sharing heavy-duty vehicles cover of renewables – in energy States will need more Regulation (ESR), which tailpipe emissions only content – in transport by biofuels than what is required obliges each Member State (‘tank to wheel’), regardless 2030 in order to achieve the or allowed within REDII. to reduce GHG emissions of whether they use fossil- EU 2030 climate targets. This must be understood in sectors that are not based or renewable fuel. Figure 1 shows that with the clearly when implementing covered by the EU Emissions The revised Renewable use of multipliers foreseen the REDII and all climate Trading Standard (ETS), i.e. Energy Directive (REDII) in the REDII, the gap could legislations at national level. transport, buildings, waste governs the fuel that propels be as high as 8.7%. As progress is being made and agriculture. The largest these vehicles (‘well to tank’), Since transport is the to decarbonise other sectors, emitter of all is the transport sector and it remains the Estimated RES in T needed in 2030 to achieve most difficult nut to crack Renewables in Transport in 2030 , Multiple the overall EU GHG emissions reduction target, % with multiple counting counting % energy content from a climate perspective. Indeed, GHG emissions in RED II 14% RES in T 14.0 14.0 12.0 15.6 transport are still increasing in most Member States. In Advanced biofuels1 3.5 2x 1.8 fact, GHG emissions across UCO and animal fats2 3.4 2x 1.7 the EU rose slightly in 2017, Renewable electricity mostly because of the 1.5 2.0 1.5x 1.0 1.3 In rail increase of oil consumption Renewable electricity 1 3.5 4x 1 from road transport. In EVs3 A fair question to ask 1x is whether all the new Gap to 14% 1.6 2.1 1.6 2.1 legislations adopted will be Missing RES in T to meet the overall EU GHG emissions reduction target in 2030 4.2 8.7 sufficient to address the transport challenge. Carbon 1 Minimum 2 Maximum, so could be less 3 Estimates based on EC assessment Source: Novozymes, RED II, SYSTEMIQ dioxide (CO2) emissions from cars need to be reduced Figure 1. The amount of missing renewable energy sources in tonnes needed to meet the overall by 15% in 2025 and 37.5% EU GHG emissions reduction target in 2030
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The following examples illustrate this reality: Germany: Must reduce GHG emissions transport, the shortfall by 2030 would ambition on renewables in transport by 14% in 2020 and 38% in 2030 in be 50.5 million tonnes (Mt) of CO2 should be a no brainer for Germany. the agriculture, buildings, transport equivalent (CO2e), according to the and waste sectors (compared to 2006 European Economic Area (EEA). This is Finland: The Finnish Parliament has levels). It is expected that the 2020 the equivalent of more than 30 million approved a mandate to gradually target will be missed because its cars, or two thirds of Germany’s total car increase biofuel to 30% by 2030. The agriculture and transport emissions fleet. Without crop-based biofuels, this law sets a world-leading advanced have increased in the past years. shortfall would increase by 4.3Mt CO2e. biofuel sub-mandate of 10% in Significant efforts will therefore be On the other hand, using 6.5% of crop- 2030. The rationale for adopting this required, especially in transport, which based biofuels before 2020 – as the ambitious target was based on a represented 36% of Germany’s 2016 national law allows in combination with comprehensive assessment where emissions. All assessments demonstrate 3.5% advanced biofuels (without double Finland needs to be to achieve its 2030 that Germany will need to use more counting) – could deliver up to 15Mt GHG emission reduction obligation renewables in transport than what the CO2e emissions savings in 2030, more in the non-EU-ETS sectors (40%), REDII prescribes to reduce adequately than one quarter of this estimated gap. assuming a percentage of EVs on GHG emissions in transport. Going beyond these percentages would the market by 2030 and closing the In a business as usual scenario for further help reduce the shortfall. More gap with sustainable biofuels. transport cannot afford to be significant role that biofuels also on account of its unique Challenge 3: There is a the weakest link anymore. can have in the clean energy synergies with other green need for negative emissions We already know today that transition. This ignores the technologies. For instance, to meet the international most EU countries are not on fact that risks associated with carbon-neutral electrification climate targets track to meet the 10% target biofuels in Europe have been of transport holds great Solution: The of renewables in transport in identified and managed by way promise as a solution, but it Intergovernmental Panel on 2020. At Member State level, of designing strict sustainability cannot succeed on its own in Climate Change highlights only two countries, Finland criteria. As measures are put the time we have to mitigate the need for negative carbon and Sweden, have already in place to ensure that the climate change. Biofuels are emissions as soon as possible achieved their 2020 targets. biomass used is sustainable, needed to achieve sufficient to keep the temperature The latest Commission the policy attention should carbon emission reductions rise below 2°C. Biorefining data2 show that more than therefore move on to ensure across all transport segments. offers one of the easiest and 94% of European transport the increased deployment Biorefineries also cheapest forms of achieving energy is still provided by fossil of sustainable biofuels, complement other types of negative emissions. The fuels, only a slight decrease such as renewable ethanol, renewable energy generation. fermentation process emits a from the 95.8% in 2009. We in each Member State. For example, co-products from CO2 stream that is relatively have basically lost an entire International Energy Agency biorefineries, such as lignin and clean and concentrated, decade. This cannot happen executive director Fatih biogas, can supply electricity thereby enabling its cost- again in the run-up to 2030, Birol has called bioenergy to balance intermittencies in efficient capture and storage. which is a critical milestone in “the overlooked giant of a renewable energy grid. Now that EU Member States terms of our ability to reach renewables” and highlighted have started to implement carbon neutrality by the mid- its critical role in reaching the Challenge 2: There is no the REDII and explore century. The next decade Paris Agreement. It is indeed crystal ball to determine the different pathways to meet will define Europe’s ability to urgent that we look at what extent and speed at which their 2030 and longer-term meet the Paris Agreement. biofuels and biorefineries at different technologies will climate obligations, it is an Anyone with an interest in large can provide and how succeed in the future opportunity – and instrumental climate policy is witness to the they can accelerate the clean Solution: Accurate prediction – to consider these benefits, great discrepancy between energy transition. Recently, is not needed as long as the and ensure that the full ambition and actions. The Novozymes outlined what the future energy system can potential of this transformative next generation realises this, biorefining platform offers, adapt to market needs. In vision can be achieved. l marching across Europe to namely how it can address this context, biorefining is point out this contradiction three key challenges routinely valuable because of its ability and asking for effective identified by observers to adapt its outputs over time short-term action that is in line of the climate debate. to meet future requirements with long-term objectives. for fuel and materials. Today, Footnotes 1. Source: https://www.eea. When scalable solutions Challenge 1: There is biorefineries primarily produce europa.eu/highlights/increase- exist, it would make sense no silver bullet to reach liquid fuel for passenger in-eu-greenhouse-gas to use them. In the case of net-zero emissions cars, but in the longer term 2. Source: https://ec.europa.eu/ eurostat/web/energy/data/shares biofuels, the discussion around Solution: The optimal solution they can be adapted to indirect land-use change is a mix of green energy cater to other segments, For more information: (ILUC)/food vs fuel has led technologies. Biorefining is key such as shipping, aviation This article was written by Nour Amrani, in charge of EU public affairs many politicians to become to this mix – not only because and other applications, for Novozymes (Brussels, Belgium). risk averse and ignore the its products are sustainable but including biochemicals. Visit: www.novozymes.com/en biofuels international march/april 2019 17 Green CMYK c76 m0 y100 k0 Pantone 362 c rgb r61 h164 b42
Blue CMYK c100 m56 y0 k0 Pantone 293 c rgb r12 g71 b157 Helvetica Black and Helvetica Ultra light biofuels market analysis US biodiesel demand bleeds lower on exemptions Lost demand by Brian Milne, editor and product manager at DTN
federal agency. There are 39 Spot biodiesel SRE petitions submitted for the 2018 compliance year. “The 2017 volumes for biomass-based diesel were set at 2 billion gallons, well below the industry’s proven ability to produce fuels. Now, the retroactive small refinery exemptions for 2017 have cut the obligation by more than 240 million gallons or Brian Milne 12%,” said Kurt Kovarik, vice- president of federal affairs for the National Biodiesel ULSD seasonal chart oy methyl ester Board. “Because they’re biodiesel at key hubs retroactive exemptions, the in New York Harbor, reduced demand for biomass- Chicago and Houston based diesel will hit our Straded at $0.70 to $0.95 gallon industry throughout 2019.” premiums to nearest delivered Mandated demand for ULSD futures on the New biomass-based diesel under York Mercantile Exchange in the RFS was 2.1 billion gallons February and March, down in 2018 and again this year, sharply from the $1.10 to increasing to 2.43 billion mid-$1.30 gallon premiums gallons in 2020. Biodiesel traded year prior, with the and renewable diesel can current weakness emerging also satisfy the advanced in the second quarter 2018. biofuel nested category It was about that time when under RFS, which is 4.92 the industry was becoming billion gallons in 2019, up aware of a raft of small refinery from 4.29 billion gallons in exemptions (SREs) issued 2018. Biomass-based diesel by the US Environmental is the marginal gallon that HOBO spread RINs Protection Agency (EPA) that can fill the “conventional biofuels advocates decry as gap,” or mandated ethanol undercutting the Renewable demand under the RFS Fuel Standard (RFS). above E10 providing Scott Irwin, an agricultural additional demand pull. economist at the University While ethanol adds an of Illinois, calculates the oxygenate to gasoline required liberal issuance of SREs has by environmental regulations led to demand destruction in federal reformulated of 2.5 billion gallons of gasoline zones in the US biomass-based diesel in an effort to reduce air during 2016 through 2018, pollution, in addition to being and is set to exceed 700 a cost-effective component million gallons this year. in boosting octane, there is On 28 March, EPA issued no compulsory reason to its 35th SRE for the 2017 use biomass-based diesel in EPA estimates SREs have The exemption in gasoline compliance year out of 37 transportation fuels outside exempted 17.05 billion volumes from the mandate petitions with one pending the RFS. As Irwin notes in his gallons of gasoline and diesel holds ethanol’s concentration compared with 19 exemptions farmdoc series, this makes volume from falling under in the gasoline pool below granted for 2016 out of 20 the biomass-based diesel the RFS in 2017, up from the 10% blend wall, closing petitions submitted to the mandate “highly binding.” 7.84 billion gallons in 2016. the conventional gap that
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Blue CMYK c100 m56 y0 k0 Pantone 293 c rgb r12 g71 b157 market analysis biofuelsHelvetica Black and Helvetica Ultra light further erases demand for shows January output up 19 Reduced feedstocks costs for International Maritime biomass-based diesel. million gallons or 15% from and a boost in diesel prices Organization’s regulations that Lost demand due to SREs January 2018 and 51 million have lessened the deleterious mandate a reduction in marine has pressured prices for both gallons or 55% above the effect of collapsing RIN values fuel sulphur requirements from biodiesel sold in the physical January 2017 production rate. experienced by producers. 3.5% to 0.5% in oceangoing market and especially for EIA indicates biodiesel The theoretical producer vessels globally. Marine Renewable Identification production in 2018 at 1.853 margin began the second vessels consume about Numbers (RINs), credits billion gallons, up 257 million quarter at a four-month high, 4.3 million barrels per day submitted to the EPA to show gallons or 16% from 2017, boosted by lower soybean oil according to the International compliance with the RFS. and against capacity of 2.5 futures under pressure from Energy Agency, about 4% RINs move with the biofuel billion gallons. EIA projects record high soybean stocks of global oil demand. in the supply chain, and can US biodiesel production at 2.2 in the US at 2.716 billion The mandated decline in also be sold separately in the billion gallons this year and bushels. Increased soybean marine fuel’s sulfur level will open market. EPA estimates 2.4 billion gallons in 2020. production in South America mean it will compete with the number of RINs exempt Another factor slowing and world record high supplies diesel fuel, with the market for for 2017 at 1.82 billion, more output growth in the US is an are capping the upside in compliant marine or bunker than double the 790 million expired tax credit that paid soybean and soybean oil fuel expected to be very tight exempted RINs in 2016. $1 per gallon for blending futures. A bilateral trade when the regulation takes Undoubtedly the diminished biodiesel or renewable agreement between the US effect. Middle of the barrel yield mandate has slowed the diesel into petroleum-based and China would likely trigger is also struggling with reduced growth rate in production, diesel. Congress retroactively a rally in soybean futures availability of heavy crude oil although US biodiesel output reinstated the credit for 2017 adding to biodiesel producer globally amid US sanctions continues to expand. A last year, but failed to agree to costs, but could be offset by on Iran and Venezuela, healthy production margin extend it for 2018 and beyond. increased demand for diesel while in the US, the surge in has helped in defraying A current proposal would if world trade flows expand. tight shale oil production is lost revenue from lower extend the $1 gallon blending Biodiesel remains a top a very light oil ill-suited for RINs and physical prices. credit through 2021, and begin choice for truck fleets, expanding diesel output. l The Energy Information phasing it out in 2022 when according to the National Administration (EIA), the the credit would pay $0.75 Truck Equipment Association statistical and analytical per gallon, reduced to $0.50 (NTEA). NTEA said its annual division within the US in 2023 and $0.33 in 2024. Fleet Purchasing Outlook For more information: Department of Energy, shows Processing soybean Survey found for the third Brian L. Milne is the energy editor with DTN, an independent, trusted US biodiesel production oil into biodiesel remains year out of the past four, source of actionable insights for declined to a nine-month profitable based on the fleets name biodiesel as 600,000 customers focused on low at 144 million gallons in spread between NYMEX their number one choice feeding, protecting, and fuelling the world. Customer-centric and January, although each year ULSD futures and Chicago for alternative fuel use. employee-driven, DTN focuses on output begins at its lowest Board of Trade soybean oil Biodiesel demand might empowering agriculture, oil and point and works higher, futures known as the HOBO pick up in the second half gas, trading, and weather-sensitive industries through continuous, leading- especially during the second spread, which has trended of 2019 in advance of the 1 edge innovation. DTN is based in half of the year. EIA data higher since early February. January 2020 effective date Minneapolis, with offices globally.
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Blue CMYK c100 m56 y0 k0 Pantone 293 c rgb r12 g71 b157 Helvetica Black and Helvetica Ultra light biofuels market analysis US policy uncertainty continues to weigh on prices Uncertainty remains
elative to a European biodiesel building demand into their own clean fuel unworkable, thanks to unspectacular EU market sedately transitioning standards. This will tip the balance in the FAME prices. China has continued to from winter to summer demand, US biofuel market further away from crops dominate the European wastes market US biofuels traders have had to and towards output growth in product meanwhile after seizing the crown Rnegotiate logistical turmoil due to flooding made from recycled oils, after signs of as top exporter in 2018, with buyers across much of the Midcontinent, which an accelerating shift in that direction at waiting for summer blending demand has disrupted product flows from the the start of this year. Once these plants to pick up amid a depressed prompt Midwest production hub to the main are up and running, the US appetite pricing environment under pressure demand centres in the Gulf and on the for waste oils and greases imported from cheap inflows of PME and SME. US West Coast. US biodiesel output has from overseas is likely to accelerate in Prices have been depressed thanks to otherwise been making slow progress, competition to Europe, as domestic a weak prompt FAME Zero market. with less than 2% growth in the first two supplies are rapidly overwhelmed by new Cheap palm oil has drawn more Chinese months of this year, as renewable diesel processing demand. Several developers biodiesel buyers into discretionary blends producers continue to grab market share, are currently progressing plans to build of PME as clean transport fuel demand a trend that is only set to accelerate new units around deep-water port access, continues to swell across Asia. The as developers continue to progress a worrying signal to the European market, Indian government is ploughing ahead construction plans on new units. which currently relies on the US and with efforts to build a sizeable domestic US policy uncertainty continues Asia to make up for its net short in waste mandate for ethanol, approving soft to weigh on prices, with the US fats and greases to meet double count loans and interest waivers for operators Environmental Protection Agency’s (EPA) and low carbon intensity fuel demand. looking to convert surplus sugar cane into slew of Renewable Identification Number European biodiesel imports are higher fuel. This in turn has left more room for (RIN) waivers for small refineries set to profile than in the US market, where US ethanol to enter India’s unprotected be joined by another list of exemptions overseas sellers are now restricted to industrial buying sector, a godsend for a by the end of March, destroying demand Canadian, European and other small US industry otherwise drowning in surplus across the Renewable Fuel Standard origins, since tariff walls locked out inventories in a market that keeps losing (RFS) 2 Federal mandate and leaving Argentina. A large chunk of Argentinian blending headroom to EPA waivers. l California to do more of the heavy lifting output has been fixed to ship to Europe For more information: in terms of regional demand stimulus. in the next quarter, although Argentinian This article was written by Matthew Stone, OtherBIOFUELS INTERNATIONAL MAGAZINE states are making quick strides to sellers complain that this arbitrage is now managing director at PRIMA.
PRIMA Markets Global Biofuels Prices assessed: 27 March 2019
Europe & N AfricaEurope & N Africa United StatesUnited States T2 UCO FOB ARA (EUR/mt)T2 UCO FOB ARA (EUR/mt) 629.50 629.50 UCO FOB California (cents/lb)UCO FOB California (cents/lb) 28.0028.00 T2 UCO FOB NWE (EUR/mt)T2 UCO FOB NWE (EUR/mt) 664.50 664.50 UCO FOB Houston (cents/lb)UCO FOB Houston (cents/lb) 28.5028.50 T1 UCO CIF ARA (USD/mt)T1 UCO CIF ARA (USD/mt) 627.50 627.50 Corn Oil FOB Midwest ethanolCorn Oil FOB Midwest ethanol 25.0025.00 UCOME FOB ARA 0 CFPP (EUR/mt)UCOME FOB ARA 0 CFPP (EUR/mt) 847.00 847.00 plant (cents/lb)plant (cents/lb) TME FOB ARA (EUR/mt) 830.00 UCOME FOB California (USD/gal) 3.30 TME FOB ARA (EUR/mt)T2 Animal Fat Cat 3 (EUR/mt) 535.00 830.00 UCOME FOB California (USD/gal)HVO FOB Los Angeles (USD/mt) 4.493.30 T2 Animal Fat Cat 3 (EUR/mt)UCO CIF Lisbon (EUR/mt) 580.00 535.00 HVO FOB Los Angeles (USD/mt) 4.49 UCO CIF Lisbon (EUR/mt)UCO FOB N Africa (USD/mt) 555.00 580.00 Emission Credits (USD/mt)Emission Credits (USD/mt) UCO FOB N Africa (USD/mt) 555.00 LCFS CreditsLCFS Credits 194.00194.00 AsiaAsia Oregon OCFPOregon OCFP 155.00155.00 UCO FOB China Bulk (USD/mt) 615.00 UCO FOB China Bulk (USD/mt)UCO FOB China Flexi (USD/mt) 580.00 615.00 South AmericaSouth America UCO FOB China Flexi (USD/mt)UCO FOB South Korea (USD/mt) 630.00 580.00 Anhydrous ethanol Anhydrous ethanol 535.00535.00 UCO FOB South Korea (USD/mt)Palm Olein FOB PKPG (USD/mt) 535.00 630.00 FOB Santos (USD/mFOB Santos (USD/m3)3) Palm Olein FOB PKPG (USD/mt)CPO FOB Dumai (USD/mt) 495.00 535.00 SBO FOB Argentina (USD/mt)SBO FOB Argentina (USD/mt) 633.20633.20 POME FOB Malaysia (USD/mt) 400.00 SME FOB Argentina (USD/mt) 771.70 CPO FOB Dumai (USD/mt) 495.00 SME FOB Argentina (USD/mt) 771.70 POME FOB Malaysia (USD/mt) 400.00 20 march/april 2019 biofuels international Green CMYK c76 m0 y100 k0 Pantone 362 c rgb r61 h164 b42
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by Colin Ley
unning any type of movement is about far more REDII stability the game were changed business in Europe is than adding an extra cent or every two to three years, challenging enough two to the cost of running the In truth, this should really be a pattern which inevitably at present, let alone family car, the fuel/environment a vintage time for European made the implementation of Rone loaded with the additional factor cannot be ignored. biofuels, if only the politicians a coherent biofuels policy pressures generated by the Add to all this, the and protestors would move at Member State level quite region’s slow march towards approaching departure from aside. We do, after all, have hectic, to say the least. the development of biofuels power of German Chancellor the revised Renewable Energy “While some countries as a major contributor to the Angela Merkel, and the Directive (REDII) in place, took their biofuels targets continent’s energy mix. fragile nature of European finally approved and settled, seriously, therefore, and Not only do we have politics and business has and slowly being worked made good progress as Brexit overhanging the clearly created a climate in through at a practical level a result, others were just EU, with all the doubt and which building and running by the industry. EU Member sitting and waiting for the indecision that includes, but a biofuels enterprise is not States have their 2020 targets discussions to be concluded also the need to negotiate for the faint-hearted. to hit and 2030 goals to follow and REDII put in place. a new round of European “I’m not saying the Parliamentary elections at a European Union has created time when so-called populist “Prior to REDII, we lived in a the perfect policy, by any movements across the EU27 means. Any such agreement are threatening to seriously business and political climate involving so many different disrupt the status quo in countries and interests is Brussels and Strasbourg. bound to require a degree With France’s gilet jaune where the rules of the game were of compromise to get a final United States (yellow vest) protests document over the line, a continuing to capture the changed every two to three years” fact which means just about UCO FOB California (cents/lb) 28.00 weekend headlines, a full everyone has something UCO FOB Houston (cents/lb) 28.50 five months after they began, to be unhappy about. At Corn Oil FOB Midwest ethanol 25.00 the prospect of the country’s When Biofuels International beyond that. In many ways, least, however, we now have plant (cents/lb) voters sending a significant asked Emmanuel Desplechin, the path forward for biofuels some clarity about where UCOME FOB California (USD/gal) 3.30 number of revolutionary secretary general of ePURE, in Europe is clearer now than we’re heading and what we representatives to Strasbourg therefore, if he remained it has been for several years. want to achieve, and that’s HVO FOB Los Angeles (USD/mt) 4.49 at the end of May has to be optimistic about the future of “The outlook for European a major step forward.” considered a real possibility. It European biofuels, it was easy biofuels is more positive In this context, Desplechin Emission Credits (USD/mt) also needs to be recognised to understand his response. today than it was, certainly said he was looking forward to LCFS Credits 194.00 by fuel sector producers and “If I wasn’t an optimist, I more positive than two years Member States now working Oregon OCFP 155.00 investors that it was rising fuel wouldn’t be in this business,” ago,” said Desplechin. “We to achieve their 2020 targets prices that sparked the initial he said, albeit delivering have achieved REDII, defining in relation to drawing at least South America gilet jaune road blockades his comment with a similar sector policy for the next 10 10% of their transport fuels and city demonstrations, with degree of humour attached years, and are finally starting from renewable sources, Anhydrous ethanol 535.00 the French government’s to the well-known notice to bring some stability to 3 while also ensuring that the FOB Santos (USD/m ) environmental policies being displayed on countless the industry in Europe. pathway is clear for the EU SBO FOB Argentina (USD/mt) 633.20 blamed by protestors for many office desks that you don’t “Prior to REDII, we lived to then progress towards SME FOB Argentina (USD/mt) 771.70 of the price hike problems. have to be mad to work in a business and political its even more ambitious Although the gilet jaune here, but it certainly helps. climate where the rules of 2030 fuels targets.
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“That will mean all Member States putting ethanol blends, such as E10, into their policies, with higher follow-on blending rates being embraced than we’ve seen so far,” he said. According to the latest figures, and somewhat ironically, gilet jaune France is the most advanced E10 user in the EU, with its motorists making the country’s 10% ethanol blend the top- selling French petrol. There has also been a marked increase in French sales of E85 petrol, which are reported to have increased by 55% in the last year.
UK lags behind on E10
Across the English Channel, meanwhile, the transport fuels sector remains stuck at E5, with most of the blame for this being directed towards the UK government and its reluctance move ahead and offer the approach to GHG reduction start to shift from theory to to give a positive lead blend. They just want to carrying on as it is, even reality. The view from the EU regarding E10 implementation. make sure they are all going though many of the policies side of the Channel, on the “The frustration over E10 in to do it at the same time.” were initially triggered by the same issue, is probably best the UK is that the government UK’s membership of the EU. described as ‘enlightening’. there has been thinking about ‘Seat of the pants’ There’s an assumption in the it and organising stakeholder solution UK that the changes coming UK exposed to US consultation on the issue through under REDII will ethanol imports but has so far failed to act With Brexit negotiations continue to be implemented. on it,” said Desplechin. and knock-on trade and “In short, I don’t see the big “While the British “In addition, what the UK tariff scenarios dominating picture on GHGs, renewables government’s no-deal plan government has been saying discussions in the UK at or biofuels suffering Brexit- applies the same tariffs to is that if stakeholders want present, however, there’s no related changes to the biodiesel and bioethanol to move to E10 then they’re current sign of the British targets to which the UK as in the EU, ethanol in perfectly free to do so. government finding time has already committed.” the UK still appears to be “We all know, of course, that or manpower to move The expectation at present, the most exposed sector nothing will happen regarding the E10 issue forward. of course, is that the UK to resumed imports from E10 in the UK without For UK businesses, anxious will mirror existing EU trade the US,” said Desplechin. government intervention, that separation from the EU remedies for bioethanol and “In such a situation the UK as no one stakeholder will will radically shift Britain’s biodiesel, in the immediate would be the ones to suffer. want to become the first stance on greenhouse gas aftermath of Brexit, with the “Given that the surplus mover, running the risk of (GHG) regulations, however, proviso that such remedies will of ethanol production from losing sales in the process.” the view from Hartnell is that be reviewed, as necessary, at the US is more than the A similar point was made there’s no evidence of such an early stage. It also appears equivalent of the entire by Gaynor Hartnell, head of major changes being likely. to be the UK’s ‘intention’ that European market, it’s easy to renewable transport fuels at “Although no one really all its mirrored EU measures imagine what would happen the UK’s Renewable Energy knows what knock-on effects will be reviewed when time and if American exports started to Association (REA), who was Brexit will have on business resources allow, regardless flow into the UK. The fate of also responding to questions developments over the short or of subsequent EU activity. Britain’s bioethanol refineries from Biofuels International. long term, all the signs are that Not surprisingly, there would certainly be at risk.” “No oil company will want the UK’s current decarbonising are some within the UK As always, mixing politics to take unilateral action on transport policies will remain industry who view all this and business rarely produces E10 in the UK,” she said. as they are at present as something of a ‘seat of a good blend, certainly “However, the industry at after Britain’s departure the pants’ solution, which not one which makes life large would welcome being from the EU,” she said. may not stand up to scrutiny any easier for Europe’s told by the government to “I think we’ll see the once the deals and no-deals biofuels community. l
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missions from road transport are considered more harmful than those Efrom other sources, as most emissions occur in urban areas where people live and work. Nitrogen oxides (NOx) and particulate matter (PM) are the worst pollutants in exhaust gases. NOx is being emitted when fuel is being burned, for instance in traffic, industrial processes and power generation. Burning fossil fuels is by far the main manmade source of NOx. In areas of high traffic, the NOx emitted can be a significant source of air pollution. Long-term exposure to nitrogen oxides can increase the risk of respiratory conditions and Lower particulate and nitrogen oxide emissions were noted in Vuosaari Harbour when VTT measured tailpipe sensitivity to allergens. emissions of renewable UPM BioVerno diesel in comparison to fossil diesel used in a Volvo wheel loader Particulate matter (PM) emissions affect human cars and fuels, and some known to significantly reduce tailpipe emissions of a Volvo health – small particles can of the latest diesel cars on greenhouse gas emissions, wheel loader construction penetrate deep into the sale today produce zero but it also ignites more quickly, vehicle. These were a lungs and cause respiratory or near-zero harmful NOx. burns more completely during continuation of similar bus problems. During rush hour Furthermore, in many cases, the combustion process, and vehicle emission tests in cities, PM concentration the new diesel vehicles tested and reduces harmful tailpipe carried out by the VTT can be up to 100 times higher emitted even less NOx than emissions compared to fossil Technical Research Centre in than during quieter periods. an equivalent petrol model. fuels. High quality sustainable Finland. Both NOx and PM However, technology is The same concerns fuels. biofuels are a cost-efficient emissions were around 10% developing fast, both in Renewable diesel today is alternative to help reduce less when compared to a traffic emissions and they fossil reference fuel. However, can be adopted without the average load of the wheel any changes to vehicles. loader during the test was low. A heavier load would Cleaner city traffic with have produced more particles, wood-based renewable and there would probably diesel have been greater reduction in particle emissions while Wood-based UPM BioVerno using the renewable diesel. diesel reduces carbon dioxide The results of emission tests (CO2) emissions by 80%, but also depend very much on the the latest results confirm that type and age of the engine. it also reduces air polluting UPM BioVerno diesel has emissions. The recent test in been trialled in engine and The recent test in Vuosaari Harbour focused on measuring the tailpipe Vuosaari Harbour in Helsinki vehicle tests on numerous emissions of a Volvo wheel loader construction vehicle focused on measuring the vehicle makes and models,
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means, from sustainable fossil fuels. In addition, local biofuels to electrification emissions can be reduced and engine efficiency through the targeted use of improvements, to be advanced biofuels. The air deployed. For heavy-duty polluting emissions, such vehicles there are fewer as PM and NOx, can be options than for passenger reduced significantly by using cars, thus diesel remains the renewable diesel, especially in dominant fuel. In fact, 70% older vehicles and machinery. of global diesel is consumed Therefore, sustainable biofuels in heavy-duty road transport play an important role not and demand is projected only in achieving the Paris to grow substantially. Agreement targets, but also in The advantage of high driving cleaner city traffic. l quality liquid biofuels lies UPM Lappeenranta Biorefinery in Finland produces residue-based in the fact that neither new advanced biofuels (renewable diesel and naphtha) vehicles nor a new distribution infrastructure is required. including Euro III and VI sustainable biofuels and At best, advanced biofuels class buses, and heavy-duty strengthen the position of reduce greenhouse gas For more information: engines in several acclaimed advanced low-ILUC (indirect emissions caused by the This article was written by Sari Finnish and international land-use change) fuels. production and use of fuel Mannonen, vice-president at UPM research facilities. In previous An increasing number by 80–90% compared to Biofuels. Visit: www.upmbiofuels.com engine tests, the tailpipe of countries are already emission reductions have identifying ways to reduce reached 30–40% with UPM transport emissions and BioVerno compared to fossil looking at boosting the uptake fuels. The fuel significantly of advanced biofuels. Finland reduces both PM and has been a frontrunner in NOx emissions, as well as setting ambitious targets carbon monoxide and other for renewable energy in hydrocarbon pollutants. the transport sector. While the EU has a 10% target Finland sets bold targets by 2020, Finland´s target is for biofuels 20%. The Finnish Parliament has recently approved At the end of 2018, European legislation that sets a gradually institutions finally agreed increasing 30% biofuels target on the Renewable Energy for 2030. Furthermore, the law Directive, REDII, which will sets a world-leading advanced increase the use of renewable biofuels target of 10% in 2030. energy to 32% in 2030 and This 10% objective is a requires 14% bioenergy to be sub-target included in the used in transport. All European 2030 30% target. In Finland, Union (EU) Member States advanced biofuels are those are obliged to implement a produced from sustainable binding advanced biofuel raw materials listed in the blending mandate starting in EU Renewable Energy 2022. Advanced biofuels are Directive’s Annex IX Part A. now recognised as a fast-track To reduce emissions further route to the decarbonisation beyond 2020, utilisation of of transport across the EU, the whole toolbox is required and this agreement will further – we need all financially boost interest in the most and technologically feasible “Finland has been a frontrunner in setting ambitious targets for renewable energy in the transport sector” Workers at the UPM Lappeenranta Biorefinery in Finland
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CynerSorb® THE PROOF Mineral adsorbent and feedstock flexibility CUSTOMER A Evolution of Filter Pressure with Time: INDUSTRY CHALLENGES CynerSorb® vs Silica Gel There are a number of challenges facing oleofuel producers today. Worldwide 3 renewable diesel (HVO) production is anticipated to triple in the next decade*
However, at the same time, refiners are looking to incorporate lower quality 2 (waste or novel crop-based) feedstocks into their process.
1 This has been a major focus for Imerys in These feedstocks generally have a higher level of
2018 – how can we assist oleofuel producers contaminants to be removed, so requiring higher (bar) Inlet Pressure Filter in incorporating these new feedstocks into their adsorbent application rates, more chemical dosing 0 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 existing process, so that they can produce more, and extended water washing; not good when water at a lower cost and with no negative effective on footprint is now becoming more topical. Also post Filtration Time (hr) refined product quality; what Imerys refers to water usage treatment costs can be significant. – Silica Gel – CynerSorb® as “Feedstock Flexibility”. This negative effect on operating costs is also associated with a potential reduction in refining Feedstock preparation prior to conversion is capacity, especially with the mineral dry wash; Soap Removal vs Dosing Rate: essential to downstream processes. Eliminating key CynerSorb® vs Silica Gel more contaminants means higher dosing rates contaminants improves conversion and separation, 5 so reducing filter cycle length. With this in mind, can extend catalyst life (HVO) and limits final Imerys has developed its CynerSorb® Filterable 4.9 product quality variations. Pretreatment is often Adsorbent range. 3.2 performed using either a mixture of acid/alkali 2.5 washing (“wet wash”) or via a mineral adsorbent “dry wash” – of often a mixture of the two. While 1 0.6 0 Silica Gel CynerSorb®
both these processes are functional for current ppm (soaps) or kg/mT (dosing rate)
higher quality feedstocks, lower quality feedstocks Soaps post treatment Adsorbent dosing Rate can be problematic. (ppm) (kg/mT) CynerSorb®– was used to replace a conventional silica gel in the chemical refining of soyabean oil for biodiesel production (ca. 100k mT refinery). The superior filtration characteristics of CynerSorb® CYNERSORB® FILTERABLE CynerSorb® meant that there was a significantly ADSORBENTS lower pressure increase on the filter; nearly doubling filter run length. The superior adsorption The main disadvantage of current mineral properties gave 35% improvement in soap removal, even using 40% less adsorbent. adsorbents such as bleaching earths and silica gels is their poor filtration characteristics. Often filtration is stopped due to high filter CUSTOMER B inlet pressure long before the filter is full, thus leading to much under-utilized filtration capacity. Phosphorous Removal Post Degumming: CynerSorb® vs Bleaching Earth Silica Gel The secret of CynerSorb® is that structurally it 8 resembles a diatomaceous earth filter aid (used as the mineral filter aid of choice for decades in 7 7.2 multiple industries). Imerys have succeeded in 6 Nearly 50% improvement surface engineering each particle so that they also in P removal even at 5 adsorb the very contaminants that need to be 60% lower dosing rate removed during the refining process – e.g. soaps, 4 ppm phospholipids, and trace metals. 3 Bleaching Earth This surface engineering means that all adsorption 2 sites are readily available – no need for a prolonged 1 1.9 hydration time. The result; superior adsorption 0.9 0 and filtration performance, even on lower quality Post Control: Trial Degumming 0.25% CynerSorb® feedstocks – allowing for lower dosing rates, Bleaching extended filtration times, less yield losses and Earth lower contaminant levels post treatment. CynerSorb®– potential to use as a replacement for bleaching earth adsorbent Microporous structure of CynerSorb® (top) providing improved filtration performance vs. Silica Gel (middle) Reference: *(source grenea; Market Watch Feb 2019) post acid degumming in the physical refining and Bleaching Earth (bottom). of rapeseed oil for biodiesel. biofuels international march/april 2019 25 Green CMYK c76 m0 y100 k0 Pantone 362 c rgb r61 h164 b42
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Researchers discover new bacterial species associated with lignin bioconversion of industrial waste How camel crickets may boost biofuels
hemical and solutions, alkaline solutions, variety of pH, and bacteria cricket (Diestrammena enzymatic physical, heat, steam and can provide these enzymes3. asynamora) and the hide degradation of wood enzymatic1. High chemical Previous approaches to find beetle (Dermestes maculatus). (lignocellulose) has and energy input results in these enzymes have isolated They were surface sterilised, Clong been the focus of the high cost. Limited chemical bacteria from lignocellulose, homogenised and then plated biofuel industry. The use of and energy input results in termites and paper mill on black liquor. The bacterial lignocellulose as a feedstock long pretreatment time2. sources4. This study looks colonies that grew were then for biofuel production Combined pretreatment at household arthropods screened on a variety of media prevents competition with strategies, especially those as new sources of bacterial with different components crops used for food. that use biological and lignin degrading enzymes.5 as the sole carbon source: One of the major hurdles chemical treatments, could milled hardwood and of lignocellulose biofuel result in more accessible Lignocellulose softwood, BioChoice Lignin, production is efficiency for cellulose, with less energy and breakdown carboxymethyl cellulose, large scale production. Many chemical input. This approach beechwood xylan and pre-treatment strategies means organisms and Two household insects xylose, as well as three have been proposed enzymes would be needed were used in this study5, different concentrations of which include use of acidic that are active at a wide the greenhouse camel black liquor. Many of these
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Blue CMYK c100 m56 y0 k0 Pantone 293 c rgb r12 g71 b157 cellulosic ethanol biofuelsHelvetica Black and Helvetica Ultra light bacterial isolates were able their enzymes may not be to grow on one or more of “Lignin is the elephant the best pretreatment when these compounds, however, used in isolation, but they those that were able to in the room – a complex may offer more than gaining grow on lignin as the sole access to sugars. Bacterial carbon source were selected and expensive one – for lignin degradation is more for further study. One of complicated than fungal greenhouse camel cricket lignocellulosic biofuels. We degradation, however their isolates Cedecea lapagei unique enzymes may result (C. lapagei) was able to grow have been trying to solve it but in novel metabolic products on lignin, milled hardwood, that can be combined with milled softwood, xylan and it may be that arthropods and chemical and physical cellulose. To determine the pretreatment. If so, biofuel enzymes allowing growth on production could take lignocellulose components, their bacteria already have” the petroleum biorefinery the genome of this bacterium approach, making it possible was sequenced and used to use lignin as a valuable to identify proteins being feedstock for chemicals. produced when C. lapagei Lignin valorisation for was grown on lignocellulose chemicals is not a new idea, components using LC/MS/MS are ideal candidates for were successful with just but one that should continue analysis. industrial lignocellulose two arthropods, and other to be investigated1. l degradation applications. arthropods that live on low- Resulting bacterial carbon diets should also strains Implications for biofuel be investigated. These new production sources may host bacteria From just three greenhouse that produce enzymes with camel crickets, a total of nine This work identifies a new similar action but different different bacterial strains bacterium able to degrade characteristics that could were isolated and identified lignocellulose: C. lapagei5. The ultimately benefit biofuel that were able to grow on study also identified several production. Through the lignocellulosic components5. enzymes from C. lapagei insight of citizen scientists From three hide beetles, five that are ideal candidates and ecologists, a new source different bacterial strains for enzymatic pretreatment. of lignocellulose degrading were isolated and identified Notably, the techniques enzymes was identified. that were able to grow on described do not rely on Microbiologists aided in For more information: This article was written by Stephanie lignocellulosic components. sequence similarity to fungal isolation, screening and L. Mathews, Department of Biological C. lapagei isolated from the lignin-degrading enzymes and growth of these bacteria from Sciences, Campbell University. greenhouse camel cricket was therefore may identify novel novel sources. Secretome Visit: https://cas.campbell.edu/ unique in its ability to grow in enzymes, mechanism of action analysis was used by Footnotes a wide range of pH, and grow or enzymatic characteristics, biochemists to find enzymes 1. De Bhowmick G, Sarmah AK, Sen on all carbon sources tested from household insects. produced as a result of growth R. 2018 Lignocellulose biorefinery as except for xylose. Liquid Lignocellulose degradation on lignocellulosic materials a model for sustainable development of biofuels and value added products. cultures of this bacterium was observed but rate was instead of looking for enzymes Bioresource Technology 247, 1144- when grown on BioChoice not measured, which will be similar to those already 1154. (10.106/j.biortech.2017.09.163) 2. Liu C, Xia Y, Xia, X, Zhao, Z, Peng L, Lignin demonstrated the addressed in future work. known. The collaboration Srinophakun P, Bai F. 2019 Cellulosic ability to oxidise ABTS, a While little is known about this led to novel findings, while ethanol production: Progress, substrate used to measure bacterium, it is also possible future collaborations will challenges and strategies for solutions. Biotechnology Advances (Accepted). laccase activity. Genome that genetic engineering continue to deliver new (10.1016/j.biotechadvac.2019.03.002) sequencing and the liquid could increase the potential insight into the problem of 3. Brown ME, Walker MC, Nakashige chromatography and mass to use this bacterium in a lignocellulose degradation TG, Iavarone AT, Chang MC. 2011 Discovery and characterization of spectrometry, LC/MS/MS, microbial consortium for to produce affordable heme enzymes from unsequenced analysis of growth cultures lignocellulosic pretreatment. lignocellulosic biofuels. bacteria: application to microbial using lignin, cellulose and In addition to finding novel lignin degradation. J. Am. Chem. Soc. 133(45), 18006- hemicellulose as the sole enzymes, this work outlines Further developments 18009. (10.1021/ja203972q) carbon source identified a different way to search 4. Xu Z, Lei P, Zhai R, Wen Z, Jin M. 2019 Recent advances in several enzymes that were for lignocellulose degrading Lignin is the elephant in lignin valorization with bacterial 5 specifically expressed in the enzymes . Ecology and the room – a complex cultures: microorganisms, metabolic presence of these carbon natural history provided and expensive one – for pathways, and bio-products. Biotechnology for Biofuels 12:32. sources. From the 4,287 insight as to which types of lignocellulosic biofuels. We 5. Mathews SL, Epps MJ, Blackburn genes in the C. lapagei organisms might require the have been trying to solve the RK, Goshe MB, Dunn RR, Grunden genome, this work has ability to digest recalcitrant problem, but it may be that AM. Public questions spur the discovery of new bacterial species highlighted 33 unique compounds. However, arthropods and their bacteria able to degrade lignin in industrial extracellular enzymes that the screening methods already have. Bacteria and waste. Royal Society. 6: 180748. biofuels international march/april 2019 27 Green CMYK c76 m0 y100 k0 Pantone 362 c rgb r61 h164 b42
Blue CMYK c100 m56 y0 k0 Pantone 293 c rgb r12 g71 b157 Helvetica Black and Helvetica Ultra light biofuels technology Technologies that can hydrolyse cellulosic biomass are crucial to delivering meaningful volumes of sustainable fuels, says Renmatix’s Fred Moesler Unlocking the promise of bioindustrial technology
continuing to fall behind. fuel usage, we still need cellulosic fuels and chemicals. Globally, from 2010 forward, to target the commercial Historically, companies growth in fossil resource usage fuel and chemical markets, have focused on using has outpaced renewable usage using sustainable methods a combination of acids, by nearly four to one: fossil- and materials to produce solvents, catalysts, and/ based energy (petroleum, massively scalable, cost- or enzymes to break down coal and natural gas) grew competitive fuels that can the feedstocks (to date, at 5.9 quads per year, while be dropped into existing mostly agricultural residuals). renewables (solar, wind and processes and formulations. Unfortunately, the benefits of biofuels) grew at 1.5 quads Despite challenging obstacles these methods are dwarfed (quadrillion BTU) per year. It currently holding the industry by significant drawbacks. is clear that although we have back, the technology exists For instance, processes made tremendous progress, to overcome them. that rely on chemicals renewable energy deployment such as solvents or acids is still falling behind fossil fuel Current industry are both environmentally usage. Furthermore, many of obstacles unfriendly and diminish value. the early players in the biofuel/ Concentrated acids and Fred Moesler, CTO at Renmatix biochemical space have fallen The largest industry obstacle solvents must be recovered due to bankruptcy, technology to date is simple economics. for environmental and failure and abdication from the High capital costs and low economic sustainability, which ver the past two space. Venture and strategic product value combined in turn requires additional decades, there has money has largely been left with poor quality feedstocks capital for the recovery and been tremendous for other related, but non-fuel and high operational remediation processes. Many progress in the pastures (pun intended). expenses have prevented processes require high alloy Obioindustrial space. Driven by If we want to make a even advanced players from construction in key areas, the need for fossil resource significant dent in fossil producing large amounts of further increasing capital alternatives, we have seen Ethanol price range per gallon vs year the massive growth of corn- and sugarcane-based
biofuels in the United States and Brazil. We have seen the establishment of large bioplastic plants in the United States, Europe, and Southeast Asia. And we’ve seen the convergence of big data, artificial intelligence, genetic engineering and robotics helping us to develop better biocatalysts faster than ever before. It’s been a very exciting time.
Now for the bad news. If we look at the Energy Information Agency’s database, we are
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approaches. For instance, the pressure, supercritical Renmatix’s proprietary water reverts to the liquid and Plantrose Process extracts steam phases, allowing for cellulosic sugars, Omno lignin easy recycling of energy and and crystalline cellulose from water. The recovered steam plant materials ranging from can be used to power the wood waste to agricultural plant and run unit operations residue using water and heat such as steam explosion, (supercritical water), rather reactors and evaporators. The than the enzymes, solvents, water streams can be cross- and acids traditionally used exchanged to recover heat for extraction. The cellulosic and recycled to other parts of sugars are building blocks for the process. With just water products ranging from fuels and biomass, the equipment and chemicals to industrial can be made with standard Feedstocks are separated into multiple products using only water additives. The Omno lignin can materials of construction. and heat be used in wood adhesives Putting energy and water into or other valuable industrial the system once and using demands. Other processes, the “currency” of the EPA’s applications, and the crystalline it multiple times isn’t quite a like enzymatic hydrolysis, (US Environmental Protection cellulose can be used for food closed loop system, but it’s a take place over days and Agency) renewable fuel ingredients and personal care very efficient and sustainable require very large tanks (often standard (RFS) programme. applications. As is the case use of those resources. vulnerable to contamination) Fuels made from this type in refining operations, finding The capital footprint to process the biomass. of woody biomass are not downstream product value is advantaged as well. Most cellulosic technologies eligible to receive RINs, for each fraction enhances Supercritical hydrolysis has deployed to date are limited which means bioproducers the overall economics and very fast reaction times, to producing fuels, primarily cannot get credit for returns of a biorefinery. on the order of single digit ethanol. As seen in the chart them under the RFS. Water becomes supercritical seconds (compared to below, ethanol prices have If you get through the when you heat it under high hours or days for other been in a record low range previous capital, product, enough pressure. Add enough technologies). This allows for since 2015. With a low-priced and coproduct hurdles, pressure and heat to liquid very small and inexpensive primary product, operational you’re often left with high water and steam, and the reactors. Scaleup risk can be costs and byproduct revenue operational costs. The costs two phases will eventually minimised by running multiple become critical factors. of feedstock, feedstock merge into a new supercritical reactors in parallel systems, A further obstacle is that storage, pretreatment, phase. Supercritical water with little impact on overall many pretreatments and enzymes and maintenance on takes on physical properties capital. The system works harsh chemical treatments a large capital footprint can of both steam and liquid, but on massively abundant but will impact the molecular be economically crippling. also changes at a chemical recalcitrant feedstocks, such weight, purity, and chemical Ash content in agricultural level imparting solvation and as hardwood and softwood. functionality of the lignin The system is designed component (a potential to produce separate, co-product, which can be concentrated, hemicellulose as much as 20–35% of “As is the case in refining sugar and cellulose sugar the feedstock mass). This streams, as well as a solid often relegates the lignin to operations, finding downstream lignin stream. Having use in thermal applications separated sugar streams (burning), which is another product value for each fraction allows for maximum flexibility relatively low value product. in downstream conversions, Poor quality or low- enhances the overall economics with some technologies only volume feedstocks, such capable of using one type of as corn stover, sugarcane and returns of a biorefinery” sugar. This allows for fuels bagasse and wheat straw, or chemicals to be produced are also problematic. The from cellulosic feedstock. most abundant biomass Also, the lignin stream, having with an industrial-proven residuals has played catalysis properties that are only seen water, retains its supply chain is former pulp particular havoc in eroding “tuneable” with pressure chemical functionality and is and paper assets, namely pretreatment equipment. and temperature. In many chemically clean. It is capable northern climate wood and ways, it acts like a solvent of being the higher-value mills. However, these scalable Look beyond enzymes and a catalyst, but when natural chemical substitute assets are largely unavailable and organisms you take off the pressure, that has been investigated for to bioindustrial producers it’s back to being water. years by paper companies because of restrictions on Technologies exist today that The use of supercritical and academia, but which was renewable identification avoid the drawbacks of the water creates many system limited by the quality of the numbers (RINs), which are solvent/acid and enzyme advantages. When you reduce lignin previously available. biofuels international march/april 2019 29 Green CMYK c76 m0 y100 k0 Pantone 362 c rgb r61 h164 b42
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The summary effect of all of these advantages is the reason Renmatix partnered with Gevo in December 2018 to develop sustainable aviation fuels. Gevo produces high-performing renewable fuels that it has tested with the US military and commercial carriers such as Alaska Airlines, but is looking to massively scale its production. Using Renmatix’s technology, Gevo can expand its feedstocks to include woody plants, Renmatix uses supercritical water to extract cellulosic sugars, Omno lignin and crystalline cellulose from which will allow it to produce plant materials cost-competitive sustainable fuels in quantities no one has our Earth well and provide feedstocks, including all types only technologies that can yet been able to achieve. truly global solutions that of forest feedstocks in the hydrolyse that biomass are impactful in the near- US, which should be RIN- can get us to meaningful 2019 and beyond and medium-term, we must eligible, into cost-competitive, volumes of sustainable fuels, develop and implement scalable, multi-functional chemicals and ingredients. l In the face of increasingly technologies that prioritise building blocks for chemicals dire reports about climate economics and volume. We and fuels. The US Department For more information: change, bioindustrial products need technologies that can of Energy’s 2016 billion-ton This article was written by Fred Moesler, chief technology will become more and more use efficient processes to turn report identified a billion office at Renmatix. important. In order to treat a wide variety of sustainable tons of excess biomass: Visit: www.renmatix.com
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Blue CMYK c100 m56 y0 k0 Pantone 293 c rgb r12 g71 b157 biodiesel from waste biofuelsHelvetica Black and Helvetica Ultra light Biofuels International speaks with Neutral Fuels’ Karl W. Feilder about keeping biodiesel production local and making the most of smart technology Keeping it local
ounded in 2009, and an environmentalist. at the Masdar Institute in Abu Have there been any Neutral Fuels, part of I’m happy to own up to Dhabi, and have worked as a challenges with the The Neutral Group, the first two but I’m not an Catalyst at Hult International model? If so, how did converts used cooking environmentalist – I’m just Business School in both you overcome them? Foil into biodiesel, a sustainable trying to save the planet. Dubai and San Francisco. On the contrary, our only replacement for fossil fuel- I’m also known as a Harley I have a BEng (Hons) in problem is having the based diesel. Taking the Davidson fan and a rock Industrial Engineering capacity to produce enough customer as a starting singer: my band, Sandstörm, and an executive MBA. biofuel to meet demand. point, the company has is well known in Dubai. Before Neutral Fuels I built We’re shortly to commission constructed clean, efficient I’m a British national who five companies to exit via more production lines. working systems to offer brought my family to Dubai trade sale, and have taken higher quality, higher yielding in 2009. This is where I two more to their Initial Public Last year, McDonald’s biodiesel, produced at a established the first licenced Offering (IPO) on London’s announced that it had hit profit and without subsidies. biorefinery in the Middle stock market. Now I’m the 10 million kilometre Here, Biofuels International East, Neutral Fuels. In the driven to inspire the business milestone using your speaks with founder, chairman last decade, my business leaders and entrepreneurs biodiesel. Have any and CEO Karl W. Feilder, actions have prevented of tomorrow to develop other brands chosen to about the importance of using over 10.5 million tonnes of scalable green technologies collaborate with Neutral local sources for biodiesel CO2 being emitted into the to save the planet. Fuels? production, and how smart atmosphere by our customers. Yes, many other brands, technologies can help to We use European processing The closed loop model among them DHL, Del create highly efficient systems. technology to convert waste seems to be a key Monte, and Anglo American. vegetable oils into EN14214 selling point for Neutral And corporate interest in Could you introduce compliant biodiesel to power Fuels. How does it differ biofuel is growing all the yourself to our readers? the transportation fleets from other systems in time, which is very rewarding People call me a serial of several corporations. the industry? because, according to the entrepreneur, a techie nerd, I’m the first adjunct lecturer It’s all about local, local, local. Carbon Majors Report, just I’m not sure many other 100 companies have been biodiesel producers have the source of 71% of the understood that the only world’s greenhouse gas sustainable – and moral – way emissions since 1988. By to make biofuel is to make working with businesses it from waste. Feedstock we can have the maximum from a farmer’s field almost effect on reducing CO2 in the certainly deprives people environment. Governments of food. On the other hand, are also increasing pressure any feedstock or biofuel that on companies to adopt has been shipped in from lower carbon fuels, and somewhere else contributes biofuel is simply the quickest to climate change. We make and easiest way to reduce our biodiesel in our local your carbon footprint. refinery from local waste for use by local customers. What are your thoughts That’s just one of our on Dubai’s Clean Energy differentiators. Another is Strategy? How has it that in the decade since benefitted the company? we started making biofuel Dubai is continually proving in the fossil fuel capital of to the world that it is led the world, we’ve done it by visionaries. The Dubai without subsidies, carbon Clean Energy Strategy aims credits, or tax incentives. to produce 75% of Dubai’s We are probably the energy requirements from cleanest, greenest business clean sources by 2050. With Karl W Feilder, founder, chairman and CEO of Neutral Fuels you’ve ever met! 20% of the United Arab
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Emirate’s carbon footprint We also install IoT sensors An obsessive focus on forming a complete audit trail. coming from transportation, in all the tanks we supply to technology creates a system This quantity and chemical we love the fact that we’re customers so that we can that is highly efficient for quality data is then used actively contributing to monitor fuel consumption in everyone. It also puts the to optimise our customer’s a sustainable future. It’s real time, prevent wastage provenance of our biofuel operations and helps them not yet clear whether the save on costs. At the end of strategy is benefitting us, each month our customers but I have no doubt it will “Governments are also get an analysis of their fuel be because we really have consumption per vehicle, paid our dues in becoming increasing pressure on driver, etc. They love it. such a viable alternative. companies to adopt lower Does Neutral Fuels have You’ve chosen a cloud- any plans for future based portal system carbon fuels, and biofuel development? to manage your model. Oh yes! Neutral Fuels What benefits can a is simply the quickest and achieved profitability in 2012, biodiesel model obtain and since then monthly from such a system? easiest way to reduce sales volumes have grown We always knew we would more than 10-fold (a 1,000% develop technology to increase). We are preparing make our fuel delivery your carbon footprint” for IPO in 2023. We plan to really smart. We use IoT franchise this year. There (Internet of Things) sensors are 50 cities close enough to track our feedstock, and and theft, and deliver the beyond doubt. Our cloud- to Dubai to justify a small- an iPhone app to track our next batch of fuel before based data portal tracks and scale refinery to produce EN customers’ fuel supplies. their supply runs out. traces every drop of waste oil, compliant fuel from waste. l
Feedstock flexibility without compromising capacity
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