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Biofuels: Ethanol, Diesel substitutes, Biomethane

Ethanol (E-85) and Flex Fuel Vehicles

Ethanol Benefits

Ethanol is an alcohol-based fuel made by fermenting and distilling purpose-grown starch crops, such as corn, sugar cane and wheat. It can also be made from cellulosic biomass such as agricultural residues, animal manures, food wastes, fats oils and greases and landfill gases and municipal solid waste. These latter feedstocks avoid the issue of using prime agricultural lands for fuel production and result in fuels that are considerably lower in greenhouse gas emissions.

  • The use of ethanol can reduce our dependence on petroleum
  • Next generation cellulosic ethanol, made from waste feedstocks, offers significant reductions in greenhouse gas (GHG) emissions
  • Lots of choices! Many OEMs offer flex fuel vehicles. Currently, more than 410,000 flex fuel vehicles are registered in California
  • May be the clearest path to compliance with federal and state fuel standards

Ethanol Challenges

  • Very modest GHG reductions for ethanol
  • Ethanol is costly to produce
  • Increases in production may result in higher prices for animal feed, and other products produced from these commodities
  • There are a limited number of stations selling higher blends such as E-85
  • Its lower energy content results in fewer miles per gallon but cost is equivalent on a cents per mile basis

How is the Energy Commission Helping?

Better access to E-85 will allow owners of flex-fuel vehicles to experience an immediate reduction in criteria and greenhouse gas emissions. As of 2010 there were 39 stations in California dispensing E-85 to the public and the Energy Commission has plans to fund 85 new E-85 locations by mid-2012. Drivers can locate the nearest E-85 dispensing station by searching at Department of Energy's Alterative Fuels and Advanced Vehicle Data Center.

Furthermore, the Energy Commission invested $6 million to encourage California Ethanol producers to leverage their efforts in new and retrofitted production technologies, feedstocks and facilities through the California Ethanol Producer Incentive Program. The program provided production incentives to reduce the carbon intensity of their operating facilities or through the use of cellulosic feedstock. Economic conditions have slowed the anticipated expansion of California ethanol production and the Energy Commission is studying the benefits of this investment before making recommendations on further funding.

Diesel Substitutes- Biodiesel

Biodiesel is a renewable alternative fuel produced from vegetable oils and animal fats and can be used in its pure form or blended with petroleum diesel. It is non-toxic, biodegradable and is a cleaner-burning alternative for diesel engines than petroleum diesels. Since more than 90% of all diesel in the country is consumed by heavy duty and off-road vehicles, this represents a promising market for biomass-based diesel fuels. Other diesel substitutes are still in the pre-commercial phase and are being made from agriculture, green and food wastes, forest residues and algae. All these feed-stocks result in high quality fuels that can easily be blended with conventional fuels and infrastructure.

Biodiesel Benefits

  • Available domestically, so reduces petroleum imports
  • Contains over 3x the amount of energy required to produce it
  • Can be utilized in existing diesel engines without costly conversions
  • Lower in harmful emissions than traditional diesel engines. Reduces carbon dioxide emissions 50-88% depending upon the feedstock
  • Since it’s non-toxic, it is safe to store, transport and handle.
  • Biodiesel energy crops can be grown on marginal lands.

Biodiesel Challenges

  • Higher per gallon cost than conventional diesel
  • Very modest GHG reduction for soy-based biodiesel, which is the predominant biodiesel blend currently available.
  • High feedstock costs
  • Bulk fuel storage and terminal blending facilities are few and far between, resulting in higher shipping costs than traditional diesel
  • Lack of significant fueling infrastructure availability
  • Has special handling, storage and use requirements
  • The fuel can cause problems with vehicle and engine durability and can solidify in cold weather.
  • Higher NOx emissions must be mitigated to increase market potential.

How is the Energy Commission Helping?

Nearly $7 million has been awarded or allocated for diesel substitute blending and storage terminal projects and to expand the number of terminal blending facilities, storage and blending equipment capable of handling biodiesel fuels.

Biomethane or Renewable Natural Gas

Biomethane, sometimes called biogas, is renewable natural gas produced from the decaying processes of organic matter. Municipal solid waste from landfills is one of the largest sources of feedstock for this technique and results in the added benefit of diverting waste from the landfill to produce energy.

Biomethane Benefits

  • Can reduce GHG emissions by up to 87% compared to conventional petroleum-based fuels.
  • It is the lowest carbon intensity alternative fuel readily available in California.
  • The feedstock is already being transported to the facility where it is processed into fuel.
  • Can be made from all types of organic wastes – wastewater treatment plants, municipal solid waste, agricultural waste, food processing waste, and woody biomass waste.
  • Can be used in the rapidly expanding fleet of medium-duty and heavy-duty natural gas trucks.

Biomethane Challenges

  • Few biomethane production projects in commercial operation
  • Natural gas pipeline connections can be prohibitively expensive
  • Extensive and costly gas cleaning must be done if the gas is to be transported via the natural gas pipeline.

How is the Energy Commission Helping?

To date, the Energy Commission has invested more than $33 million on 9 biomethane feasibility, demonstration and production projects throughout the state. Using a variety of feedstocks including waste water treatment sludge, food waste, animal manures, landfill gas, woody biomass residues and municipal solid waste, these projects, when fully commercialized, are expected to displace a total of 6.5 million diesel equivalent gallons. The 2011-12 Investment Plan will focus on projects that use pre-land-filled waste materials as feedstock and those producers needing gas quality testing on fuels they plan to inject into existing pipelines.

Biofuel Projects

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