July 2008, Work Truck - Feature
Industry Groups Address Expanding Biodiesel Use
By Richard Nelson
Accredited Producer Program Monitors Production
The Accredited Producer program focuses on outlining a system to monitor production of biodiesel according to the ASTM D6751 specification through proper sampling, testing, storage, sample retention, and shipping off-site. At each biodiesel production facility, a set of documented quality system procedures (QSPs), targeting operational elements/issues associated with the testing of individual production lots, must be prepared and rigorously adhered to for each biodiesel production lot. Within this QSP, internal audits must be performed at least once each year for operation verification to determine the effectiveness of the plant or production facility quality program.
A certificate of analysis (COA) must be generated for each production lot with a unique identification code and the actual test results (ASTM D6751 parameter limits). Lastly, the on-site quality program must address cleanliness specifications for truck, rail, and/or ship vessels used to distribute biodiesel. These measures take into account material and chemical compatibility issues for each transport vehicle.
Certified Marketer Focuses on Handling & Distribution
The Certified Marketer outlines a system for handling and distributing biodiesel. This system maintains the fuel properties at ASTM D6751 specifications through proper sampling, testing, storage, sample retention, blending, and shipping for those entities that blend and distribute the product. Each Certified Marketer must also have a QSP in place that addresses these issues, specifying where the biodiesel was produced, the production facility’s BQ-9000 status, COA verification if the producer was not a BQ-9000 producer, and quantity of fuel received.
In a recent biodiesel fuel quality survey conducted by the National Renewable Energy Laboratory, all samples obtained from BQ-9000 companies met or exceeded ASTM D6751 specifications. Samples taken from non-BQ-9000 certified production companies only met the ASTM specification 28-67 percent of the time, depending upon the capacity of their production facilities.
Feedstock Cost Largest Factor in Biodiesel Pricing
Feedstock cost is the largest single component associated with producing biodiesel. While official statistics do not exist concerning the quantity of individual feedstocks actually used, it is believed a majority of the feedstock used for biodiesel production in the United States is soybean oil. Other minor feedstocks include canola/rapeseed, inedible beef tallow, and waste grease (yellow grease). The extent to which these minor feedstocks are utilized depends primarily on price relative to soybean oil, availability, and markets. (See Figure 2.)
Feedstock cost is the largest single component associated with producing biodiesel. While official statistics are not available concerning the quantity of individual feedstocks actually used, it is believed a majority of the feedstock used for biodiesel production in the U.S. is soybean oil. / Source: www.jacobsen.com
At some price points, certain feedstocks are too expensive in conjunction with the price of petroleum/diesel fuel for biodiesel production, and the market for other biodiesel feedstocks becomes competitive. This pricing issue began to occur the latter half of 2007 with the price of soybean oil. Figure 3 presents a general view of both biodiesel and regular #2 diesel prices on a national scale.
At some price points, certain feedstocks are too expensive in conjunction with the price of petroleum/diesel fuel for biodiesel production, and the market for other biodiesel feedstocks becomes competitive. This pricing issue began to occur in late 2007 with the price of soybean oil. The chart represents a general national view of both biodiesel and regular #2 diesel prices. / Source: Energy Information Administration; The Jacobsen