Challenges Facing Small and Medium Scale Biodiesel Production ...
Challenges Facing Small and Medium Scale Biodiesel Production ...
Challenges Facing Small and Medium Scale Biodiesel Production ...
- No tags were found...
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
<strong>Challenges</strong> <strong>Facing</strong> <strong>Small</strong> <strong>and</strong> <strong>Medium</strong><strong>Scale</strong> <strong>Biodiesel</strong><strong>Production</strong> Facilities in WesternCanadaEshetu Beshada, , Doug <strong>Small</strong> <strong>and</strong> DennisHodgkinsonDGH Engineering Ltd., 12 Aviation BLVD., StAndrews, Manitoba, R1A 3N5
What is <strong>Biodiesel</strong>?• A mono-alkyl ester produced from vegetable oil or animalfat.• Produced by a process called transesterfication.• A substitute for diesel fuel – (must meet ASTM D 6751)TransesterficationEnergyRaw MaterialsOilMethanolCatalystReactorGlycerin<strong>Biodiesel</strong>
Why <strong>Biodiesel</strong>?• Reduce greenhouse emission• Search for alternative to petroleum – fuel security• Value-added added to animal fat, yellow grease <strong>and</strong>off-grade (heated) oil seeds.• Income diversification for farmers
<strong>Biodiesel</strong> Feed Quality• Free Fatty Acid (FFA) content is the mostimportant criteria for selecting feedstock.FeedstockRefined Vegetable oilSoy oil – crudeCanola Oil – crudeRestaurant oilAnimal fatTrap grease% FFA Content< 0.050.3 – 0.70.1 – 0.52 – 75 - 3040 - 100
Feedstock Availability• Canola area <strong>and</strong> production in western Canada. 10% of thisresource produces 280 – 350 million L/year of biodiesel.Canola <strong>Production</strong>,million tonnes1210864201996 1998 2000 2002 2004 2006 2008YearTonnesAcre s1614121086420Canola Area, millionacresSource: Field Crop Reporting Series – Statistics Canada
Feedstock AvailabilityThe table below outlines the approximate availability of lowgrade (high FFA) feedstock in western Canada.FeedstocktonnesYellow Grease >25,000Animal Fat >150,000Off-grade Canola>400,000 (5% damaged)
<strong>Challenges</strong> in <strong>Biodiesel</strong><strong>Production</strong>• High cost of production compared to petroleum.– 70 – 80% of cost is feedstock• Lack of technology ready for small <strong>and</strong> mediumsize plant installation.
Reducing <strong>Biodiesel</strong><strong>Production</strong> Cost• The production cost can be reduced by utilizinglow grade (high FFA) feedstock.
Canola Price• The price of canola fluctuates as shown below. The averageprice was about $350/tonne over the past 10 years. Theprice in Winnipeg on 07 March, 2008 was $585/tonne.#1 Canola Price. $/tonne70060050040030020010 years trend100March 07-200801996 1998 2000 2002 2004 2006 2008 2010Year
Low Grade Feedstock PricesThe table below outlines the approximate cost of high FFAFeedstock.FeedstockPrice $/tonneYellow Grease $ 380 - 470Animal Fat $ 380 - 480Off-grade CanolaDepends % damaged
Low grade canola discountThe table below outlines the approximate discounts givenfor heated canola% Heat Damage *Discount, $/tonne0.6 – 2.0 $ 90.002.1 – 5.0 $100.005.1 – 10.0 $130.0010.1 – 15.0 $150.00Sources oil industry in Winnipeg.* The discount varies from 20 to 50% of the actual price of #1 Canola.During high canola price the discount will be lower <strong>and</strong> negotiable.
FFA of Heated Canola
Petroleum diesel PriceDiesel fuel price in Winnipeg during the last six years.Data obtained from Stats Canada. Price on march 07, 2008was 112.9 cents/L.120Price, Cents/L1008060402002000/01 2001/09 2003/05 2005/01 2006/09Date
Process Technology• It is difficult to find technology providers• dealing with small scale production (< 10 million Litresper year)• No readily available expertise that deals with high FFAfeedstock for small scale plants.• DGH Engineering identified an experiencedsupplier• Process feedstock with a FFA content of 15%.• Efficient methanol recovery without distillation tower.• Integration of oil seed crushing.
Process Technology• Advantage of integrating oil seed crushing:• Necessary to crush off-grade canola• Generate extra revenue through sales of feed meal• Provide market for glycerin in feed meal.
Required Capital CostEstimated capital cost to construct 10 million L/year plant.ItemsTypical AmericanEstimate*DGH -EngineeringInfrastructure $ 390,000 $ 330,000Process Equipment &$ 1,600,000InstallationStorage Tanks & accessories $ 500,000InstalledElectrical <strong>and</strong> Plumbing $ 475,000Engineering <strong>and</strong> Project$ 125,000Mang’tLab <strong>and</strong> ancillary equipment $ 290,000$ 1,300,000$ 500,000$ 210,000$ 125,000$ 125,000Total $ 3,380,000$ 2,590,000* Without crushing, feed pretreatment <strong>and</strong> methanol recovery system
Process Technology• DGH Engineering provides• Full scale feasibility study,• Environmental Assessment,• Business plan preparation <strong>and</strong>• All engineering services required to install abiodiesel Plant.• Currently DGH Engineering <strong>and</strong> its partner areinstalling a 10 million litres per year capacity biodieselplant for Eastman Bio-Fuels Ltd. in Manitoba.
Change language