More on biofuels

This being yet another Friday, I suppose I may get a little grumpy again today. (But hopefully it won't turn into a tradition). The transient nature of public attention being what it is, we seem already to have reached a stage of acquiescence* to the idea of $70 oil. Though we don't have quite as many pundits this year appearing to reassure us that we will be back to $30 oil as there were last year, there is still some sense in the general public that this is a transient situation that will, in time, get better. Attention is switching over to other political storms and the Environment as the great concerns of the moment and, short a major disruption somewhere (which will happen in time, that being the nature of things) we may get a period of relatively benign neglect of the topic. Yes, it is making its way into political speeches more frequently, from both sides of the aisle but not to a great deal of media or public attention. And in our little corner of blogdom, things are, again for a short while, a little quiet.
But to add a small comment to the debate on ethanol, one thing struck me that has gone a little unrecognized. It has been the speed with which, in relative terms, the supply of ethanol from corn is beginning to increase. And before I start another debate on EROI let me first say that this is not my initial point today (though it comes in later). Nor is it to do with carbon, as discussed in Stuart's post. Rather I offer this consideration. As the debate over "what are we going to do" begins to desultorily swirl across the landscape, one of the concerns has been with the inertia of the system, because of the length of time (in years) that it is going to take to install new refineries and large production facilities. They also need huge levels of capital, that will only come forth where there is a significant chance of return, and the sources of the odd $10 billion to gain us an additional 200,000 bd or so of oil are not that common. But I think that it is worthy of note that there is a faster level of flexibility becoming evident in the generation of fuel from bio-sources.

The point is that as my recent post noted there is an ongoing rapid increase in the number of farmers that are getting on the ethanol bandwagon. Because the scale of each individual ethanol refinery is not that large, it can be funded locally, permitted apparently relatively quickly, and in production with a fairly high (from what I hear from sources) rate of return that is even greater than that in the conventional oil business. Thus there is a little evidence that, with the right alternatives, and provided they can operate at these scales, that the response time to a solution may not be as long as some folks fear. Particularly where the underlying technology has been around for a while.

So why am I grumpy? Well it is because I think that the emphasis is being given to the wrong biofuel. In energy content biodiesel contains some 138,000 Btu/gal, while ethanol only contains 76,000 Btu/gal. (Gasoline is 114,000 Btu/gal). Within the US production has risen from 500,000 gallons in 1999 to 75 million gallons of biodiesel last year. There are a number of different sources for the fuel. Though the currently popular source from the cooking vats of fast food restaurants is not going to be a huge supplier it points, again, to the fact that this fuel can be generated on a small scale, through multiple sources at lower levels of investment that are more readily available. Thus the possibility of an answer where we use, not one big refinery that could take 10 years to get permitted, if ever, but instead a myriad of little refineries over the country that can be installed in less than a couple of years. The Europeans seem to have caught on, and so is the rest of the world. So maybe I should drink my cup of tea, and grin, just a little, before I lift the black object by the stair and Head Out again.

*

Emerging from the meeting of House Republicans, GOP spokesman Sean Spicer said members were willing to come out and talk about oil drilling; not a single journalist accepted the offer.

As noted in Pollan's book "An Omnivore's Dilemma", America produces way more corn than needed.  so much in fact that corn syrup is for all intents and purposes free, and thus it's added into everything we eat.  The movie Supersize Me noted that only something like 5 items on McDonald's menu did not contain sugar in one form or another, again, bc/ it costs essentially nothing to add a few grams of corn syrup to say your hamburger bun to give it a little sweetness. The hamburger bun (not the big mac, the basic hamburger) contains 6 grams of sugar. Perhaps we are just seeing more of this unnecesary surplus corn used for ethanol rather than corn syrup.  America can stand to lose a lot of corn in our food chain without suffering any ill effects.  In fact, if corn syrup becomes a little more expensive, perhaps we'll be a little healthier.  Ethanol from corn is probably still a very bad idea for many reasons, but my point is there is excess corn on the market.

Another point based on this phrase:

The transient nature of public attention being what it is, we seem already to have reached a stage of acquiescence* to the idea of $70 oil. Though we don't have quite as many pundits this year appearing to reassure us that we will be back to $30 oil as there were last year

I remember Michael Lynch's prediction in 2004 that oil prices will average $25 or $30 in 2005, and they were of course about twice that much.  couldn't find a prediction from him for 2006 myself.  Has he made such a prediction?

I remember Michael Lynch's prediction in 2004 that oil prices will average $25 or $30 in 2005, and they were of course about twice that much.  couldn't find a prediction from him for 2006 myself.  Has he made such a prediction?

Energy Resources link

Take this link, and scroll down to the Questions & Answers link, hear Lynch say in Sept 2004 that in a year prices will be below $30 because "all the factors keeping prices high today are short term."

http://www.webcasting.com/houston/

I know the above isn't about 2006 (apart from his "short-term factors" comment suggesting he figured below 30 for an extended period), but it certainly shows how he views things. Maybe he realized that the more he makes predictions, the more his credibility suffers.
One of the constraints on biodiesel will be the low penetration rate of diesel passenger vehicles in the North American market. For example, VW sold just 29,000 diesel powered cars in the USA last year. Diesels took just 3.2% of the US market last year. Contrast that with the situation in Europe, where more than half the new cars sold are diesels.
Diesels
have been held back in North America by the high concentrations of sulfur in fuel. Sulfur poisons catalytic converters. Its oxides are corrosive and increase the concentrations of particulates (sooty smoke) in the exhaust. Diesel cars have been unable to meet the emissions standards in five states, including CA and NY.

The advent of low sulfur diesel this fall would have changed this situation, except that EPA continues to stack the deck against diesels in passenger cars. The upper limit of sulfur in diesel will be going from 500 ppm to 15 ppm, which would have opened the door to European engines and emissions control technology for the 2007 model year. However, EPA has mandated that diesel cars must meet the same emissions standards as passenger cars, beginning with the 2007 model year. Sounds fair, but it's a big technological problem.

Diesel engines typically return 25-40% better fuel economy than gasoline engines. One of the main reasons is the higher energy content of the fuel, mentioned by HO. The combustion process can normally be optimised to minimise NOx (oxides of nitrogen) or minimise unburned hydrocarbons, but it's inherently difficult to minimise them both

Ikivo SVG   
On Sun Aug 28, 2005, Mike Lynch provided a prediction for 2006 Michael Lynch - Disputing Peak Oil
I believe (note the verb) that the price of WTI will drop to $40 by Jan 1, but stay between $30 and $40.

To be fair, his predictions have still been slightly better than Simmons. I don't worry too much about predictions though, I pay more attention to the underlying model, and for prices,  I don't think anyone even has a model.

Having said that, if rock oil follows whale oil prices, there is a price hike before the peak (like what we have seen?), and then prices stay around the same high level through the peak and after. I guess that when price reaches a certain threshold demand drops off a cliff.

The key word in that scenario was "if" ;-)

Quick thing to note with our amazing amount of corn:

We make so much because we subsidize it heavily. Back in 2002, I remember hearing on NPR that you could buy a boxcar full of corn for less than the cost of transporting that boxcar full of corn (this is why our beef is almost completely "grain-fed" -- read "corn-fed").

If we did away with the subsidies, corn would suddenly become substantially more expensive -- and supplies would, accordingly, drop.

Thus, corn's not the most efficient source; it's just the most heavily subsidized. I'd personally rather go for efficiency, but that requires changing some very fundamental politics (and, at the end of the day, the politics do matter).

Yours,
Thomas Wicker


Thus, corn's not the most efficient source; it's just the most heavily subsidized. I'd personally rather go for efficiency, but that requires changing some very fundamental politics (and, at the end of the day, the politics do matter).

Have you thought about changing from command to market economy in the USA? (Only half joking...)

Seriously, it makes stupid inefficiencies obvious.
I have an understandig for short term subsidies to develop a technology or industrial base that can be expected to be needed in a few years but running a market manipulation for years on end probably creates enourmous inefficiencies.

A link to a Swedish manufacturer of small and medium scale processing equipment for estrification of oils:

http://www.ageratec.se/biodiesel_index.asp?lang=EN

Thank's for this link. My brother in law is investigating for potential market applications in France exactly for this material. He claims 1 ha of rapeseed oil needs 50 liters of diesel to be completly worked from seeding to harvest and yields 2000 l of rapeseed oil. Waste of the process can be used for various applications like cow feeding.

I still have concerns for global EROEI, since most studies don't include all energy requirements like construction and maintenance of all the engines (ever seen how a wheel on a tractor is changed ?), irrigation (in our countryside water has to be pumped for irrigation. Water volume required has been increasing in the past years). Volumes of fertilizer and pesticides vary enormously from one published study to the other as do the estimated BTU's for the manufacturing of these products (see links provided by robert rapier for an estimation of these spreads).

And for the long term I keep asking my brother in law to please consider soil depletion (a very real issue, since plants do need other elements than N,P,K and CO2 to grow), surface of arable land (in slight excess in France but already competing with agriculture for food). Also don't forget that EROEI of our whole transportation system is <<1. This means that energy taken from biomass is taken out and isn't put back into the system except for CO2. For now there is an excess biomass with regard to the whole ecosystem, otherwise oil wouldn't have formed. So we can sacrifice some of this ... but at what ecological cost and in what places ? Moreover, if we increase the area of arable land, will we really increase the total biomass (i.e. the carbon sink) ? I stay with stuart staniford on this point, increasing our total C02 emission is probably very deleterious.

I must say that these arguments don't hold for someone involved in agriculture. In Europe biodiesel will increase, regardless of what we say or may think, unless the consequences become disastrous or the economy breaks down.

The soil depletion issue is on my mind as well, and for the same reason. Using biomass for fuels removes more than nutrients from the system. The basic soil structure is at risk from the removal of carbon, which ends up in the atmosphere, where the feedback from warming contributes further to the loss of carbon from soils, as I posted here.
From what I've read, biomass left on the surface decays quickly and contributes relatively little to soil tilth.  Matter left inches to feet below the surface and undisturbed by tilling tends to remain.  That matter consists of plant roots, not stalks and stems.

This points toward using zero-till, leaving an optimum amount of organic matter on the surface and returning all nutrients either as liquid effluent or ash.  If some of the carbon can be returned as charcoal (inorganic) and tilled in every ten years or so, the nutrient-holding capacity of the soil could be substantially increased at the same time as carbon is sequestered for millennia.

EP,

You are absolutely right!
(I don't often find myself agrreeing with you so wholeheartedly ;-)
No-till, leave as much as possible in place or return everything you don't use.
These principles are the essence of the Masanobu Fukuoka philosophy of natural farming. I believe such principles can be applied in varying situations with positive long-term results.
i.e. lower external inputs (energy, materials) and healthy soil.
Mr. Fukuoka has been analysing energy inputs versus energy outputs of farming since the 1930s.
Blinded by the "Green Revolution", most people dismissed his valid concerns about the disaster being created by "modern" farming methods.

http://www.ufop.de/downloads/Biodieselstatus_engl_230605.pdf (english version)
http://www.ufop.de/downloads/RZ_Biodieselbericht_230605.pdf (german version)

Interesting brochure about the production of biodiesel in Germany and Europe. The rise in production during the last years is rather impressive (last year production was 1 mt, this it's expected to be 1.5 mt, out of 30 mt total yearly diesel consumption).

One of the constraints on biodiesel will be the low penetration rate of diesel passenger vehicles in the North American market. For example, VW sold just 29,000 diesel powered cars in the USA last year. Diesels took just 3.2% of the US market last year. Contrast that with the situation in Europe, where more than half the new cars sold are diesels.

Diesels have been held back in North America by the high concentrations of sulfur in fuel. Sulfur poisons catalytic converters. Its oxides are corrosive and increase the concentrations of particulates (sooty smoke) in the exhaust. Diesel cars have been unable to meet the emissions standards in five states, including CA and NY.

The advent of low sulfur diesel this fall would have changed this situation, except that EPA continues to stack the deck against diesels in passenger cars. The upper limit of sulfur in diesel will be going from 500 ppm to 15 ppm, which would have opened the door to European engines and emissions control technology for the 2007 model year. However, EPA has mandated that diesel cars must meet the same emissions standards as passenger cars, beginning with the 2007 model year. Sounds fair, but it's a big technological problem.

Diesel engines typically return 25-40% better fuel economy than gasoline engines. One of the main reasons is the higher energy content of the fuel, mentioned by HO. The combustion process can normally be optimised to minimise NOx (oxides of nitrogen) or minimise unburned hydrocarbons, but it's inherently difficult to minimise them both at the same time. So diesel engines have evolved with particulate traps and catalytic converters to convert CO and partially burned hydrocarbons to CO2 and water. To meet EPA's 2007 standards, some system for reducing NOx to nitrogen needs to be added to the exhaust train, and that's a problem.

One approach is to add a sequential catalytic converter. However, such a system requires ammonia (urea) to be injected to reduce the NOx. A supply of ammonia must be carried on-board the car and EPA is, of course, concerned that owners will neglect to fill it.  AFAIK, EPA has not signed off these systems, which raises a worry for me as to the availability of new diesel-powered light passenger vehicles next year. It will be interesting to see which manufacturers can produce an emissions-compliant system.
 

However, EPA has mandated that diesel cars must meet the same emissions standards as passenger cars

Sorry, that should have been "the same emissions as gasoline-powered passenger cars.  I didn't mention light trucks, but the same standards apply.

The rules for ULSD are complicated - right now there is a June 1 deadline for refineries to deliver 80% of the on-road diesel as ULSD.  Whether or not they make the deadline we won't know until June, but they don't have long left.

I will say this much though.  From here:

ttp://tonto.eia.doe.gov/oog/info/twip/twip_distillate.html


You can see ULSD production sharply increasing.  It is still only 10% of the LSD production however, but I would imagine that most refineries aren't going to switch to 100% until close to the deadline.

There are some complicated rules about who is supposed to have the ULSD when, and California is supposed to switch over at an accelerated pace:

http://www.clean-diesel.org/highway.html

and

http://www.clean-diesel.org/nonroad.html

You noted that diesels have a much higher percentage of the European market. I have little doubt about why. [Answer: the price of liquid fuels in Europe -- at some point in time markets & consumption patterns do respond to peristently higher prices.]

The problems with emissions may be real, but are probably going to be solved without a prohibitive cost in terms of either efficiency, up front vehicle cost or refining costs.

In my estimation, the issue with bio diesels will be whether the fuels can be produced at a reasonable cost without compromising the food supply.

In Europe, diesel used to be cheaper than gasoline, but now that gap is closing, now is just cents of euro cheaper. Also diesel cars tend to be a little bit more expensive, so traditionally diesel was the option for those who drive more than 20.000km a year. So now the options had been rebalancing a bit, because the number of diesel cars in the roads have increased enormously.
"One approach is to add a sequential catalytic converter. However, such a system requires ammonia (urea) to be injected to reduce the NOx. A supply of ammonia must be carried on-board the car and EPA is, of course, concerned that owners will neglect to fill it."

I think pissing on emissions equipment would appeal to a lot of people...

Much of this talk about biofuels assumes that they can make a significant and worthwhile dent in our liquid fuel needs. While I think it is clear that ethanol sucks both from a EROEI and a supply standpoint, the scary part is that even if it could manage to significantly increase supply, this would not result in a corresponding reduction in oil use.  This would just be added to the supply pie so that we can continue increasing, for the time being, our overall fuel use.  Biodiesel may be a slightly different story from a net return and supply perspective, but the problems will be the same if we just expand the pie.

The only way you make any progress on CO2 reduction is reduction of the use of oil and/or other fossil fuels. People will respond to price signals which will be driven by total supply of all fuels, including biofuels.

As long as we don't set a mandatory and enforceable limit on CO2 emissions, all this talk and investment in alternatives gets us nowhere.  My fear is that much of the praise of biofuels is driven by refusal of politicians to deliver to people what they perceive as bad news; we have to consume less, radically, at least 60% less.  So we offer the free lunch.  And, besides, before people figure out the scam, the politicians will be long gone.  

If we had a mandatory cap on CO2 emissions with an enforced cap and trade system, we could let the market for CO2 sort all this out.  Producers of ethanol would be subject to the same rules as everyone else with respect to their fossil fuel inputs.  The system would sort how these inputs should be utilized.  If the energy return from biofuels was large enough, it would be worth paying for the necessary credits. If the industry wasn't efficient enough in its use of energy, the cost of those inputs would reflect the cost of credits engendered by the cap and trade system.

My guess is that the ethanol industry would fold up in a heart beat if it were forced to account for its co2 contribution.  However, if the cap and trade system were implemented, we could quit arguing about the wisdom of ethanol and let the CO2 market and the economic market decide.

And btw, under a rigorous cap and trade system with very high co2 reduction goals, it might make sense to eliminate all subsidies and credits to all forms of energy -- oil, coal, solar, nuclear, biofuels, etc.  As it is, because we don't tax externalities, we have this increasingly complex mix of subsidies.  

Currently, we heavily subsidize biofuels, especially ethanol because of its corn content, which prevents the market from doing its job and engenders increasingly complex and ultimately fruitless debate.

Tstreet has brought up what I see as a very important point, that ethanol, both present production and future promised, is not actually displacing petroleum products, it is supplementing them.  In a sense, we are not "saving" anything with this scheme, merely adding to the available pool of energy liquids.
In short, the great promise of ethanol is that it makes gas cheaper, by reducing demand for it!
I suspect that much of congressional perspective and thus action on biofuels is driven primarily by the calculus of the vote for the next major election. If the pain of energy price  raises the energy issue to the top of the list for other large voting blocks, I'm betting that farmers will be dropped like a hot potato along with the ethanol import tariff.

Remember that the Iowa caucuses are among the 1st in the nation.   Anyone that wants to be president is going to be tempted to pander to the Iowa farmers, and ethanol is a good way to do it.
They grow soybeans in Iowa too. I expect candidates will be pushing biodiesel eventually.
If the GOM weather is bad enough this summer and the price of fuel rises significantly, both very possible, I think politicians might be willing to lose in Iowa for the right reasons. Not pandering will have political capital.
Candidates and parties will only say things that will lose Iowa (and perhaps other corn-growing battleground states like Minnesota and Wisconsin) if they think that they can replace those votes elsewhere by winning in a state that was leaning to the loss column.  The issue also affects strongly House and Senate seats.  Iowa has as many senate seats as Texas, Florida, New York or California.

With respect to hurricane damage, Democrats probably won't be looking to pick up votes, etc., in Mississippi, Alabama, Georgia or South Carolina.  Democrats will look to pick up in Florida and maintain their position in Louisiana.  The Republicans will be looking to pick up in Louisiana and maintain in Florida.  Of course, sugar cane grows in both Florida and Louisiana, although cane fields have been paved over and contaminated by salt in those states, respectively.

The picture is more complicated than just Iowa.

It seems maybe a bit too much like stating the obvious but...

When we are looking at Biofuels for transport in as much depth as we are here should we not be calibrating the analysis against the historical reference points of proved biofuel powered transport?

These are walking / bicycling and the horse, with the addition of wagons and buggies of various sorts.

Seems to me like the "engine" best suited to converting plant material to transportation of people and cargo over distance is the gut and muscles of an animal, not the internal (infernal) combustion process via a still or biodiesel  production facility.

As some have said here an EROEI of < 1on the biofuel cycle might make sense if we had another source of power (nukes, wind, PV etc) to add to the system as "top up" given that we  do need to move things around and if a mechanical engine was the only option to produce motion. But we know that's not the case and so it seems to me we should start from the muscle powered transport model as the base case against which to measure other biofuel uses...

Hope this is not too "neo-Amish" to be meaningful


Seems to me like the "engine" best suited to converting plant material to transportation of people and cargo over distance is the gut and muscles of an animal, not the internal (infernal) combustion process via a still or biodiesel  production facility.

Dont think so, animals use quite a lot of power when idling and are not good at providing electricity or hydraulics. It is also hard to use them in parallell to get adequate power for running combines etc.

So why am I grumpy? Well it is because I think that the emphasis is being given to the wrong biofuel. In energy content biodiesel contains some 138,000 Btu/gal, while ethanol only contains 76,000 Btu/gal. (Gasoline is 114,000 Btu/gal).

Believe me, I agree 100%. I made the same case for biodiesel over ethanol here:

http://i-r-squared.blogspot.com/2006/03/biodiesel-king-of-alternative-fuels.html

RR

That's a great article, Robert.  You've captured precisely my understanding of and reaction to algal biodiesel - it's the only biofuel worth getting hot and sweaty over.  As a further exploration of symbiotic processes using power plants and algae farms, here's my own noodling on the subject:

http://www.theoildrum.com/story/2006/1/27/45110/7810#88

algal biodiesel - it's the only biofuel worth getting hot and sweaty over.

When it can be grown w/o having to have a high CO2 concentration, and be able to withstand 'contamination' from outside algae sure.   Then it becomes a widly useable solution.

Otherwise its just re-arranging the deck chairs on the hinderburg.